x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 16-0442930 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |
7950 Jones Branch Drive, McLean, Virginia | 22107-0910 | |
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Name of Each Exchange on Which Registered | |
Common Stock, par value $1.00 per share | The New York Stock Exchange |
Large accelerated filer | x | Accelerated filer | ¨ | Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
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• | Enhance local core news and marketing operations to make local franchises stronger and ties with the communities even deeper, thereby growing Publishing and the higher growth, higher margin Broadcasting and Digital businesses; |
• | Leverage hometown and brand advantages to accelerate growth by entering into or expanding high potential businesses; and |
• | Optimize assets on an ongoing basis to maintain a strong financial profile to improve efficiency and effectiveness, and drive increased shareholder value. |
• | Significant growth of “For The Win,” our social media sports news and entertainment site, growing page views by 24% year-over-year. |
• | Development of the College Football Fan Index, the only digital index that combines social media activity and fan voting to determine the ultimate college football fanbase. |
• | Launch of a new Fantasy section that includes information related to managing fantasy teams as well as opportunities to play in contests through Fantasy Score, a Weekly and Daily Fantasy League. |
• | Launch of the new USA TODAY Sports App in February 2015. The app includes trending sports news, scores, notifications and a quick and entertaining take on sports stories. The app is available for free of charge in the iOS App Store and Google Play for Android phones. |
• | Clipper Magazine, a direct mail advertising magazine that publishes hundreds of local market editions under the brands Local Flavor, Clipper Magazine, Savvy Shopper and Mint Magazine in 29 states to more than 27 million consumers. |
• | Gannett Government Media, a worldwide multimedia business with digital, print and broadcast media properties focused on government, military and defense technology audiences. |
2014 | 2013 | ||||
Broadcast | 5,100 | 4,800 | |||
Publishing | 20,950 | 23,000 | |||
Digital | 4,400 | 3,000 | |||
Corporate and unallocated | 800 | 800 | |||
Total company | 31,250 | 31,600 |
State/District of Columbia | City | Station/web site | Channel/Network | Affiliation Agreement Expires in | Weekly Audience (5) | Founded | |
Arizona | Flagstaff | KNAZ-TV: azcentral.com/12news | Ch. 2/NBC | 2017 | (6 | ) | 1970 |
Phoenix | KPNX-TV: azcentral.com/12news | Ch. 12/NBC | 2017 | 1,187,000 | 1953 | ||
Tucson | KMSB-TV(1): tucsonnewsnow.com | Ch. 11/FOX | 2016 | 212,000 | 1967 | ||
KTTU-TV(1): tucsonnewsnow.com | Ch. 18/MNTV | 2016 | 81,000 | 1984 | |||
Arkansas | Little Rock | KTHV-TV: todaysthv.com | Ch. 11/CBS | 2015 | 416,000 | 1955 | |
California | Sacramento | KXTV-TV: news10.net | Ch. 10/ABC | 2018 | 832,000 | 1955 | |
Colorado | Denver | KTVD-TV: ktvd.com | Ch. 20/MNTV | 2016 | 562,000 | 1988 | |
KUSA-TV: 9news.com | Ch. 9/NBC | 2017 | 1,114,000 | 1952 | |||
District of Columbia | Washington | WUSA-TV: wusa9.com | Ch. 9/CBS | 2015 | 1,682,000 | 1949 | |
Florida | Jacksonville | WJXX-TV: firstcoastnews.com | Ch. 25/ABC | 2018 | 390,000 | 1989 | |
WTLV-TV: firstcoastnews.com | Ch. 12/NBC | 2017 | 450,000 | 1957 | |||
Tampa-St. Petersburg | WTSP-TV: wtsp.com | Ch. 10/CBS | 2015 | 1,238,000 | 1965 | ||
Georgia | Atlanta | WATL-TV: myatltv.com | Ch. 36/MNTV | 2016 | 737,000 | 1954 | |
WXIA-TV: 11alive.com | Ch. 11/NBC | 2017 | 1,512,000 | 1948 | |||
Macon | WMAZ-TV: 13wmaz.com | Ch. 13/CBS | 2015 | 199,000 | 1953 | ||
Idaho | Boise | KTVB-TV(3): ktvb.com | Ch. 7/NBC | 2015 | 191,000 | 1953 | |
Kentucky | Louisville | WHAS-TV(1): whas11.com | Ch. 11/ABC | 2018 | 456,000 | 1950 | |
Louisiana | New Orleans | WWL-TV: wwltv.com | Ch. 4/CBS | 2017 | 556,000 | 1957 | |
WUPL-TV(4): wupltv.com | Ch. 54/MNTV | 2016 | 154,000 | 1955 | |||
Maine | Bangor | WLBZ-TV: wlbz2.com | Ch. 2/NBC | 2017 | 106,000 | 1954 | |
Portland | WCSH-TV: wcsh6.com | Ch. 6/NBC | 2017 | 283,000 | 1953 | ||
Michigan | Grand Rapids | WZZM-TV: wzzm13.com | Ch. 13/ABC | 2018 | 350,000 | 1962 | |
Minnesota | Minneapolis-St. Paul | KARE-TV: kare11.com | Ch. 11/NBC | 2017 | 1,269,000 | 1953 | |
Missouri | St. Louis | KSDK-TV: ksdk.com | Ch. 5/NBC | 2017 | 964,000 | 1947 | |
New York | Buffalo | WGRZ-TV: wgrz.com | Ch. 2/NBC | 2017 | 499,000 | 1954 | |
North Carolina | Charlotte | WCNC-TV: wcnc.com | Ch. 36/NBC | 2015 | 734,000 | 1967 | |
Greensboro | WFMY-TV: digtriad.com | Ch. 2/CBS | 2015 | 549,000 | 1949 | ||
Ohio | Cleveland | WKYC-TV: wkyc.com | Ch. 3/NBC | 2017 | 1,107,000 | 1948 | |
Oregon | Portland | KGW-TV(1)(2): kgw.com | Ch. 8/NBC | 2015 | 809,000 | 1956 | |
South Carolina | Columbia | WLTX-TV: wltx.com | Ch. 19/CBS | 2015 | 278,000 | 1953 | |
Tennessee | Knoxville | WBIR-TV: wbir.com | Ch. 10/NBC | 2017 | 449,000 | 1956 | |
Texas | Abilene-Sweetwater | KXVA-TV: myfoxzone.com | Ch. 15/FOX | 2017 | 54,200 | 2001 | |
Austin | KVUE-TV: kvue.com | Ch. 24/ABC | 2018 | 448,000 | 1971 | ||
Beaumont-Port Arthur | KBMT-TV: 12newsnow.com | Ch. 12/ABC | 2018 | 137,000 | 1961 | ||
Corpus Christi | KIII-TV: kiiitv.com | Ch. 3/ABC | 2018 | 146,000 | 1964 | ||
Dallas/Ft. Worth | WFAA-TV: wfaa.com | Ch. 8/ABC | 2018 | 1,656,000 | 1949 | ||
Houston | KHOU-TV: khou.com | Ch. 11/CBS | 2017 | 1,548,000 | 1953 | ||
San Angelo | KIDY-TV: myfoxzone.com | Ch. 6/FOX | 2017 | 21,700 | 1984 | ||
San Antonio | KENS-TV: kens5.com | Ch. 5/CBS | 2017 | 641,000 | 1950 | ||
Tyler-Longview | KYTX-TV: cbs19.tv | Ch. 19/CBS | 2019 | 142,000 | 2008 | ||
Waco-Temple-College Station | KCEN-TV: kcentv.com | Ch. 9/NBC | 2016 | 202,000 | 1953 | ||
Virginia | Hampton/Norfolk | WVEC-TV: 13newsnow.com | Ch. 13/ABC | 2018 | 512,000 | 1953 | |
Washington | Seattle/Tacoma | KING-TV: king5.com | Ch. 5/NBC | 2015 | 1,259,000 | 1948 | |
KONG-TV: king5.com | Ch. 16/IND | 563,000 | 1997 | ||||
Spokane | KREM-TV: krem.com | Ch. 2/CBS | 2016 | 274,000 | 1954 | ||
KSKN-TV: spokanescw22.com | Ch. 22/CW | 2016 | 94,000 | 1983 |
(1) | We service these stations under shared services and similar arrangements. |
(2) | We also own KGWZ-LD, a low power television station in Portland, OR. |
(3) | We also own KTFT-LD (NBC), a low power television station in Twin Falls, ID. |
(4) | We also own WBXN-CA, a Class A television station in New Orleans, LA. |
(5) | Weekly audience is number of television households reached, according to the November 2014 Nielsen book. |
(6) | Audience numbers fall below minimum reporting standards. |
DAILY LOCAL MEDIA ORGANIZATIONS AND AFFILIATED DIGITAL PLATFORMS | ||||||||||||||
State Territory | Average 2014 Circulation - Print and Digital Replica and Non-Replica | |||||||||||||
City | Local media organization/web site | Morning | Afternoon | Sunday | Founded | |||||||||
Alabama | Montgomery | Montgomery Advertiser www.montgomeryadvertiser.com | 25,555 | 30,918 | 1829 | |||||||||
Arizona | Phoenix | The Arizona Republic www.azcentral.com | 232,502 | 487,441 | 1890 | |||||||||
Arkansas | Mountain Home | The Baxter Bulletin www.baxterbulletin.com | 8,423 | 1901 | ||||||||||
California | Palm Springs | The Desert Sun www.mydesert.com | 33,080 | 37,248 | 1927 | |||||||||
Salinas | The Salinas Californian www.thecalifornian.com | 7,368 | 1871 | |||||||||||
Visalia | Visalia Times-Delta/Tulare Advance-Register www.visaliatimesdelta.com www.tulareadvanceregister.com | 15,492 | 1859 | |||||||||||
Colorado | Fort Collins | Fort Collins Coloradoan www.coloradoan.com | 19,952 | 25,118 | 1873 | |||||||||
Delaware | Wilmington | The News Journal www.delawareonline.com | 71,934 | 104,550 | 1871 | |||||||||
Florida | Brevard County | FLORIDA TODAY www.floridatoday.com | 47,656 | 81,283 | 1966 | |||||||||
Fort Myers | The News-Press www.news-press.com | 50,130 | 71,310 | 1884 | ||||||||||
Pensacola | Pensacola News Journal www.pnj.com | 31,687 | 44,720 | 1889 | ||||||||||
Tallahassee | Tallahassee Democrat www.tallahassee.com | 29,652 | 42,100 | 1905 | ||||||||||
Guam | Hagatna | Pacific Daily News www.guampdn.com | 13,281 | 12,286 | 1944 | |||||||||
Indiana | Indianapolis | The Indianapolis Star www.indystar.com | 137,129 | 265,112 | 1903 | |||||||||
Lafayette | Journal and Courier www.jconline.com | 22,541 | 30,253 | 1829 | ||||||||||
Muncie | The Star Press www.thestarpress.com | 20,422 | 26,051 | 1899 | ||||||||||
Richmond | Palladium-Item www.pal-item.com | 9,616 | 14,194 | 1831 | ||||||||||
Iowa | Des Moines | The Des Moines Register www.desmoinesregister.com | 86,773 | 173,001 | 1849 | |||||||||
Iowa City | Iowa City Press-Citizen www.press-citizen.com | 10,079 | 1860 | |||||||||||
Kentucky | Louisville | The Courier-Journal www.courier-journal.com | 114,719 | 205,216 | 1868 | |||||||||
Louisiana | Alexandria | Alexandria Daily Town Talk www.thetowntalk.com | 15,350 | 20,517 | 1883 | |||||||||
Lafayette | The Daily Advertiser www.theadvertiser.com | 21,936 | 29,609 | 1865 | ||||||||||
Monroe | The News-Star www.thenewsstar.com | 21,540 | 25,937 | 1890 | ||||||||||
Opelousas | Daily World www.dailyworld.com | 4,409 | 5,556 | 1939 | ||||||||||
Shreveport | The Times www.shreveporttimes.com | 32,736 | 49,304 | 1871 | ||||||||||
Maryland | Salisbury | The Daily Times www.delmarvanow.com | 13,752 | 18,180 | 1900 |
DAILY LOCAL MEDIA ORGANIZATIONS AND AFFILIATED DIGITAL PLATFORMS | ||||||||||||||
State Territory | Average 2014 Circulation - Print and Digital Replica and Non-Replica | |||||||||||||
City | Local media organization/web site | Morning | Afternoon | Sunday | Founded | |||||||||
Michigan | Battle Creek | Battle Creek Enquirer www.battlecreekenquirer.com | 11,663 | 16,675 | 1900 | |||||||||
Detroit | Detroit Free Press www.freep.com | 173,215 | 867,821 | 1832 | ||||||||||
Lansing | Lansing State Journal www.lansingstatejournal.com | 35,254 | 47,815 | 1855 | ||||||||||
Livingston County | Daily Press & Argus www.livingstondaily.com | 9,222 | 13,181 | 1843 | ||||||||||
Port Huron | Times Herald www.thetimesherald.com | 15,050 | 22,568 | 1900 | ||||||||||
Minnesota | St. Cloud | St. Cloud Times www.sctimes.com | 20,392 | 25,637 | 1861 | |||||||||
Mississippi | Hattiesburg | Hattiesburg American www.hattiesburgamerican.com | 7,886 | 10,663 | 1897 | |||||||||
Jackson | The Clarion-Ledger www.clarionledger.com | 46,090 | 53,774 | 1837 | ||||||||||
Missouri | Springfield | Springfield News-Leader www.news-leader.com | 29,206 | 46,607 | 1893 | |||||||||
Montana | Great Falls | Great Falls Tribune www.greatfallstribune.com | 22,195 | 24,838 | 1885 | |||||||||
Nevada | Reno | Reno Gazette-Journal www.rgj.com | 35,133 | 55,978 | 1870 | |||||||||
New Jersey | Asbury Park | Asbury Park Press www.app.com | 80,722 | 119,495 | 1879 | |||||||||
Bridgewater | Courier News www.mycentraljersey.com | 10,244 | 13,376 | 1884 | ||||||||||
Cherry Hill | Courier-Post www.courierpostonline.com | 35,860 | 47,618 | 1875 | ||||||||||
East Brunswick | Home News Tribune www.mycentraljersey.com | 20,261 | 24,360 | 1879 | ||||||||||
Morristown | Daily Record www.dailyrecord.com | 14,021 | 16,962 | 1900 | ||||||||||
Vineland | The Daily Journal www.thedailyjournal.com | 10,834 | 1864 | |||||||||||
New York | Binghamton | Press & Sun-Bulletin www.pressconnects.com | 28,896 | 38,687 | 1904 | |||||||||
Elmira | Star-Gazette www.stargazette.com | 12,862 | 19,960 | 1828 | ||||||||||
Ithaca | The Ithaca Journal www.theithacajournal.com | 9,405 | 1815 | |||||||||||
Poughkeepsie | Poughkeepsie Journal www.poughkeepsiejournal.com | 21,479 | 28,847 | 1785 | ||||||||||
Rochester | Rochester Democrat and Chronicle www.democratandchronicle.com | 96,444 | 138,159 | 1833 | ||||||||||
Westchester County | The Journal News www.lohud.com | 57,865 | 74,137 | 1829 | ||||||||||
North Carolina | Asheville | Asheville Citizen-Times www.citizen-times.com | 28,415 | 40,236 | 1870 |
DAILY LOCAL MEDIA ORGANIZATIONS AND AFFILIATED DIGITAL PLATFORMS | ||||||||||||||
State Territory | Average 2014 Circulation - Print and Digital Replica and Non-Replica | |||||||||||||
City | Local media organization/web site | Morning | Afternoon | Sunday | Founded | |||||||||
Ohio | Bucyrus | Telegraph-Forum www.bucyrustelegraphforum.com | 3,508 | 1923 | ||||||||||
Chillicothe | Chillicothe Gazette www.chillicothegazette.com | 7,607 | 9,311 | 1800 | ||||||||||
Cincinnati | The Cincinnati Enquirer www.cincinnati.com | 114,021 | 215,203 | 1841 | ||||||||||
Coshocton | Coshocton Tribune www.coshoctontribune.com | 3,528 | 4,375 | 1842 | ||||||||||
Fremont | The News-Messenger www.thenews-messenger.com | 5,179 | 1856 | |||||||||||
Lancaster | Lancaster Eagle-Gazette www.lancastereaglegazette.com | 7,462 | 9,114 | 1807 | ||||||||||
Mansfield | News Journal www.mansfieldnewsjournal.com | 16,561 | 22,969 | 1885 | ||||||||||
Marion | The Marion Star www.marionstar.com | 5,855 | 7,180 | 1880 | ||||||||||
Newark | The Advocate www.newarkadvocate.com | 11,405 | 13,533 | 1820 | ||||||||||
Port Clinton | News Herald www.portclintonnewsherald.com | 2,218 | 1864 | |||||||||||
Zanesville | Times Recorder www.zanesvilletimesrecorder.com | 10,888 | 12,684 | 1852 | ||||||||||
Oregon | Salem | Statesman Journal www.statesmanjournal.com | 30,110 | 36,280 | 1851 | |||||||||
South Carolina | Greenville | The Greenville News www.greenvilleonline.com | 44,365 | 93,369 | 1874 | |||||||||
South Dakota | Sioux Falls | Argus Leader www.argusleader.com | 29,300 | 56,061 | 1881 | |||||||||
Tennessee | Clarksville | The Leaf-Chronicle www.theleafchronicle.com | 10,716 | 20,092 | 1808 | |||||||||
Jackson | The Jackson Sun www.jacksonsun.com | 14,025 | 21,460 | 1848 | ||||||||||
Murfreesboro | The Daily News Journal www.dnj.com | 10,264 | 13,246 | 1848 | ||||||||||
Nashville | The Tennessean www.tennessean.com | 93,531 | 208,357 | 1812 | ||||||||||
Utah | St. George | The Spectrum www.thespectrum.com | 13,370 | 15,424 | 1963 | |||||||||
Vermont | Burlington | The Burlington Free Press www.burlingtonfreepress.com | 23,477 | 27,707 | 1827 | |||||||||
Virginia | McLean | USA TODAY* www.usatoday.com | 4,139,380 | 3,686,797 | 1982 | |||||||||
Staunton | The Daily News Leader www.newsleader.com | 12,217 | 15,043 | 1904 | ||||||||||
Wisconsin | Appleton | The Post-Crescent www.postcrescent.com | 34,610 | 47,236 | 1853 | |||||||||
Fond du Lac | The Reporter www.fdlreporter.com | 9,206 | 11,963 | 1870 | ||||||||||
Green Bay | Green Bay Press-Gazette www.greenbaypressgazette.com | 38,977 | 56,968 | 1915 | ||||||||||
Manitowoc | Herald Times Reporter www.htrnews.com | 9,007 | 10,633 | 1898 | ||||||||||
Marshfield | Marshfield News-Herald www.marshfieldnewsherald.com | 7,086 | 1927 | |||||||||||
Oshkosh | Oshkosh Northwestern www.thenorthwestern.com | 11,634 | 16,199 | 1868 | ||||||||||
Sheboygan | The Sheboygan Press www.sheboyganpress.com | 13,162 | 16,251 | 1907 | ||||||||||
Stevens Point | Stevens Point Journal www.stevenspointjournal.com | 6,963 | 1873 | |||||||||||
Central Wisconsin Sunday | 14,325 | |||||||||||||
Wausau | Wausau Daily Herald www.wausaudailyherald.com | 13,678 | 18,230 | 1903 | ||||||||||
Wisconsin Rapids | The Daily Tribune www.wisconsinrapidstribune.com | 7,168 | 1914 |
* | USA TODAY morning and Sunday figure is the average print, digital replica, digital non-replica and branded editions according to the Alliance for Audited Media’s September 2014 Publisher’s Statement. |
DAILY PAID-FOR LOCAL MEDIA ORGANIZATIONS AND AFFILIATED DIGITAL PLATFORMS/NEWSQUEST PLC | ||||||
Circulation* | ||||||
City | Local media organization/web site | Monday-Saturday | Founded | |||
Basildon | Echo**: www.echo-news.co.uk | 22,961 | 1969 | |||
Blackburn | Lancashire Telegraph: www.lancashiretelegraph.co.uk | 13,092 | 1886 | |||
Bolton | The Bolton News: www.theboltonnews.co.uk | 12,351 | 1867 | |||
Bournemouth | Daily Echo: www.bournemouthecho.co.uk | 18,049 | 1900 | |||
Bradford | Telegraph & Argus: www.thetelegraphandargus.co.uk | 18,906 | 1868 | |||
Brighton | The Argus: www.theargus.co.uk | 14,370 | 1880 | |||
Colchester | The Gazette**: www.gazette-news.co.uk | 11,706 | 1970 | |||
Darlington | The Northern Echo: www.thenorthernecho.co.uk | 30,735 | 1870 | |||
Glasgow | Evening Times: www.eveningtimes.co.uk | 33,397 | 1876 | |||
Glasgow | The Herald: www.heraldscotland.com | 37,728 | 1783 | |||
Glasgow | The National: www.thenational.scot | *** | 2014 | |||
Newport | South Wales Argus: www.southwalesargus.co.uk | 13,197 | 1892 | |||
Oxford | Oxford Mail: www.oxfordmail.co.uk | 12,773 | 1928 | |||
Southampton | Southern Daily Echo: www.dailyecho.co.uk | 22,397 | 1888 | |||
Swindon | Swindon Advertiser: www.swindonadvertiser.co.uk | 11,987 | 1854 | |||
Weymouth | Dorset Echo: www.dorsetecho.co.uk | 13,267 | 1921 | |||
Worcester | Worcester News: www.worcesternews.co.uk | 8,885 | 1937 | |||
York | The Press: www.yorkpress.co.uk | 19,643 | 1882 | |||
* Circulation figures are according to ABC results for the period January - June 2014 ** Publishes Monday-Friday *** Founded in 2014. No certified circulation reported to date. |
DIGITAL |
Cars.com: www.cars.com Headquarters: Chicago, IL Sales offices: Abilene, TX; Albany, NY; Albuquerque, NM; Asheboro, NC; Atlanta, GA; Augusta, GA; Austin, TX; Bakersfield, CA; Baton Rouge, LA; Bay Area, CA; Beaumont, TX; Billings, MT; Birmingham, AL; Boston, MA; Buffalo, NY; Carbondale, IL; Cedar Rapids, IA; Champaign, IL; Charleston, SC; Chattanooga, TN; Columbus, OH; Corpus Christi, TX; Dayton, OH; Denver, CO; El Paso, TX; Erie, PA; Eugene, OR; Evansville, IN; Fairfield, IL; Flint, MI; Ft. Wayne, IN; Greensboro, NC; Harrisburg, PA; Honolulu, HI; Houston, TX; Huntington, WV; Huntsville, AL; Idaho Falls, ID; Jacksonville, FL; Jefferson City, MO; Knoxville, TN; La Crosse, WI; Las Vegas, NV; Little Rock, AR; Long Island, NY; Longview, WA; Lubbock, TX; Lufkin, TX; Madison, WI |
CareerBuilder: www.careerbuilder.com Headquarters: Chicago, IL Sales offices: Atlanta, GA; Boston, MA; Chicago, IL; Cincinnati, OH; Dallas, TX; Denver, CO; Detroit, MI; Edison, NJ; Houston, TX; Irvine, CA; Kansas City, KS; Los Angeles, CA; Minneapolis, MN; Moscow, ID; Nashville, TN; New York, NY; Orlando, FL; Philadelphia, PA; San Bruno, CA; Scottsdale, AZ; Washington, DC International offices: Australia, Brazil, Canada, China, France, Germany, Greece, India, Indonesia, Italy, Malaysia, Netherlands, Singapore, Spain, Sweden, United Kingdom, Vietnam |
PointRoll, Inc.: www.pointroll.com Headquarters: King of Prussia, PA Sales offices: Atlanta, GA; Boston, MA; Chicago, IL; Detroit, MI; Los Angeles, CA; New York, NY; San Francisco, CA |
Shoplocal: www.shoplocal.com; www.aboutshoplocal.com Headquarters: Chicago, IL Sales office: Chicago, IL |
Mobile and Tablet: We power more than 500 mobile and tablet products and partner with service providers to deliver push news alerts and mobile marketing campaigns. We have also developed and deployed leading applications for iPad, iPhone, Kindle, Android, Windows and BlackBerry. | ||
USA TODAY/USATODAY.com Headquarters and editorial offices: McLean, VA Print sites: Albuquerque, NM; Atlanta, GA; Boston, MA; Cleveland, OH; Columbia, SC; Columbus, OH; Dallas, TX; Denver, CO; Des Moines, IA; Detroit, MI; Eugene, OR; Fort Lauderdale, FL; Houston, TX; Indianapolis, IN; Kansas City, MO; Las Vegas, NV; Los Angeles, CA; Louisville, KY; Milwaukee, WI; Minneapolis, MN; Mobile, AL; Nashville, TN; Oklahoma City, OK; Orlando, FL; Phoenix, AZ; Rochester, NY; Rockaway, NJ; St. Louis, MO; St. Petersburg, FL; Salt Lake City, UT; San Jose, CA; Seattle, WA; Springfield, MO; Springfield, VA; Wilmington, DE; Winston-Salem, NC Advertising offices: Atlanta, GA; Chicago, IL; Dallas, TX; Detroit, MI; Los Angeles, CA; McLean, VA; New York, NY; San Francisco, CA |
USA TODAY Sports Media Group: www.Thebiglead.com; www.Thehuddle.com; www.Hoopshype.com; www.Mmajunkie.com; www.Bnqt.com; www.Baseballhq.com; www.Quickish.com; www.Usatodayhss.com; ftw.usatoday.com; q.usatoday.com; www.fantasyscore.com; www.spanningthesec.com; www.usatodaysportsimages.com Headquarters: Los Angeles Advertising offices: Los Angeles, CA; McLean, VA; New York, NY |
USA TODAY Travel Media Group Headquarters: McLean, VA Advertising offices: McLean, VA |
Reviewed.com: www.reviewed.com Headquarters: Cambridge, MA |
G/O Digital: G/O Digital: www.godigitalmarketing.com; BLiNQ Media: www.blinqmedia.com; Local Flavor: www.localflavor.com; Clipper Digital: www.clippermagazine.com; Mobestream Media (Key Ring): www.keyringapp.com Headquarters: Chicago, IL Sales offices: Atlanta, GA; Chicago, IL; Dallas, TX; New York, NY; Phoenix, AZ |
BLiNQ Media: www.blinqmedia.com Headquarters: Atlanta, GA Advertising offices: Atlanta, GA; Chicago, IL; New York, NY |
Mobestream Media: www.keyringapp.com Headquarters: Dallas, TX |
Clipper Magazine: www.clippermagazine.com; www.localflavor.com; www.mintmagazine.com; www.totalloyalty.com Headquarters: Mountville, PA |
Gannett Government Media Headquarters: Springfield, VA Brands: Army Times: www.armytimes.com, Navy Times: www.navytimes.com, Marine Corps Times: www.marinecorpstimes.com, Air Force Times: www.airforcetimes.com, Military Times: www.militarytimes.com, Federal Times: www.federaltimes.com, Defense News: www.defensenews.com, Defense News with Vago Muradian: www.defensenewstv.com, C4ISR & Networks: www.c4isrnet.com, Military Times Best for Vets: www.militarytimes.com/best-for-vets |
Gannett Media Technologies International: www.gmti.com Headquarters: Chesapeake, VA Regional office: Cincinnati, OH |
Non-daily publications: Weekly, semi-weekly, monthly or bimonthly publications in Alabama, Arizona, Arkansas, California, Colorado, Delaware, Florida, Guam, Indiana, Iowa, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Jersey, New York, North Carolina, Ohio, Oregon, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, Wisconsin |
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Year | Quarter | Low | High | Year | Quarter | Low | High | |||||||||||
2010 | First | $ | 12.77 | $ | 17.33 | 2013 | First | $ | 17.58 | $ | 22.11 | |||||||
Second | $ | 13.48 | $ | 19.69 | Second | $ | 19.53 | $ | 26.75 | |||||||||
Third | $ | 11.66 | $ | 15.28 | Third | $ | 23.98 | $ | 26.90 | |||||||||
Fourth | $ | 11.65 | $ | 16.17 | Fourth | $ | 23.75 | $ | 29.48 | |||||||||
2011 | First | $ | 14.26 | $ | 18.93 | 2014 | First | $ | 25.96 | $ | 30.43 | |||||||
Second | $ | 13.26 | $ | 15.80 | Second | $ | 25.53 | $ | 30.98 | |||||||||
Third | $ | 8.28 | $ | 14.70 | Third | $ | 29.88 | $ | 35.70 | |||||||||
Fourth | $ | 8.90 | $ | 14.47 | Fourth | $ | 25.95 | $ | 33.70 | |||||||||
2012 | First | $ | 13.16 | $ | 16.26 | 2015 | First* | $ | 29.30 | $ | 35.20 | |||||||
Second | $ | 12.17 | $ | 15.90 | * Through Feb. 24, 2015 | |||||||||||||
Third | $ | 13.16 | $ | 19.09 | ||||||||||||||
Fourth | $ | 16.35 | $ | 19.99 |
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | |||||||||||||
Gannett Co., Inc. | $ | 100 | $ | 102.77 | $ | 92.87 | $ | 131.35 | $ | 222.61 | $ | 246.76 | ||||||
S&P 500 Index | $ | 100 | $ | 115.06 | $ | 117.49 | $ | 136.30 | $ | 180.44 | $ | 205.14 | ||||||
Peer Group | $ | 100 | $ | 109.94 | $ | 97.86 | $ | 133.27 | $ | 228.48 | $ | 235.72 |
• | Depreciation expense is expected to be in the range of $210 million to $215 million in 2015. Capital expenditures are expected to be approximately $135 million to $140 million. |
• | Amortization expense is expected to be in the range of $125 million to $140 million in 2015, a significant increase over 2014 primarily due to the Cars.com acquisition. |
• | We project our interest expense will increase slightly in 2015, reflecting the full year impact of debt issued in the second half of 2014 in connection with the Cars.com acquisition. |
In millions of dollars | |||
Segment | Goodwill Balance | ||
Broadcasting | $ | 2,580 | |
Publishing | $ | 542 | |
Digital | $ | 1,313 |
In millions of dollars, except per share amounts | |||||||||||
2014 | Change | 2013 | Change | 2012 | |||||||
Operating revenue: | |||||||||||
Broadcasting | $ | 1,692 | 103% | $ | 835 | (8%) | $ | 906 | |||
Publishing advertising | 2,070 | (6%) | 2,199 | (7%) | 2,356 | ||||||
Publishing circulation | 1,119 | (1%) | 1,129 | 1% | 1,117 | ||||||
All other Publishing | 233 | (7%) | 250 | (2%) | 255 | ||||||
Digital | 919 | 23% | 748 | 4% | 719 | ||||||
Intersegment Elimination | (25 | ) | *** | — | *** | — | |||||
Total operating revenues | $ | 6,008 | 16% | $ | 5,161 | (4%) | $ | 5,353 | |||
Operating expenses | $ | 4,950 | 12% | $ | 4,422 | (3%) | $ | 4,563 | |||
Operating income | $ | 1,058 | 43% | $ | 739 | (6%) | $ | 790 | |||
Non-operating (income) expense, net | $ | (298 | ) | *** | $ | 180 | 51% | $ | 119 | ||
Net income: | |||||||||||
Per share – basic | $ | 4.69 | *** | $ | 1.70 | (7%) | $ | 1.83 | |||
Per share – diluted | $ | 4.58 | *** | $ | 1.66 | (7%) | $ | 1.79 |
In millions of dollars | |||||||||||
2014 | Change | 2013 | Change | 2012 | |||||||
Revenues | $ | 1,692 | *** | $ | 835 | (8%) | $ | 906 | |||
Expenses | 947 | *** | 473 | 2% | 462 | ||||||
Operating income | $ | 745 | *** | $ | 362 | (18%) | $ | 444 |
In millions | |||||||
2014 | Percentage Change From 2013 | ||||||
Reported(a) | Reported | Pro Forma (b) | |||||
Core (Local & National) | $ | 1,046 | 74% | (2%) | |||
Political | 159 | *** | *** | ||||
Retransmission (c) | 362 | 145% | 62% | ||||
Digital | 98 | 156% | 19% | ||||
Other | 28 | (24%) | (1%) | ||||
Total | $ | 1,692 | 103% | 19% | |||
(a) Numbers do not sum due to rounding. | |||||||
(b) The pro forma figures are presented as if the acquisition of Belo Corp. and the six acquired London Broadcasting Company television stations as well as the Captivate disposition had occurred at the beginning of 2013. See "Presentation of Pro Forma Information" on page 39. | |||||||
(c) Reverse compensation to network affiliates is included as part of programming costs and therefore is excluded from this line. |
Publishing operating results, in millions of dollars | |||||||||||
2014(a) | Change | 2013 | Change | 2012(a) | |||||||
Revenues | $ | 3,422 | (4%) | $ | 3,578 | (4%) | $ | 3,728 | |||
Expenses | 3,193 | (2%) | 3,264 | (3%) | 3,360 | ||||||
Operating income | $ | 228 | (27%) | $ | 314 | (15%) | $ | 369 | |||
(a) Numbers do not sum due to rounding. |
Publishing operating revenues, in millions of dollars | |||||||||||
2014 | Change | 2013 | Change | 2012 | |||||||
Advertising | $ | 2,070 | (6%) | $ | 2,199 | (7%) | $ | 2,356 | |||
Circulation | 1,119 | (1%) | 1,129 | 1% | 1,117 | ||||||
Commercial printing and other | 233 | (7%) | 250 | (2%) | 255 | ||||||
Total | $ | 3,422 | (4%) | $ | 3,578 | (4%) | $ | 3,728 |
Advertising revenues, in millions of dollars | |||||||||||
2014 | Change | 2013 | Change | 2012 | |||||||
Retail | $ | 1,095 | (5%) | $ | 1,157 | (6%) | $ | 1,230 | |||
National | 321 | (12%) | 365 | (8%) | 396 | ||||||
Classified | 654 | (3%) | 677 | (7%) | 730 | ||||||
Total advertising revenue | $ | 2,070 | (6%) | $ | 2,199 | (7%) | $ | 2,356 |
Advertising Revenue Year Over Year Comparisons | |||
U.S. Publishing | Newsquest (in pounds) | Total Publishing Segment | |
Retail | (6%) | (2%) | (5%) |
National | (14%) | (4%) | (12%) |
Classified | (4%) | (3%) | (2%) |
Total | (7%) | (3%) | (6%) |
Classified Revenue Year Over Year Comparisons | |||
U.S. Publishing | Newsquest (in pounds) | Total Publishing Segment | |
Automotive | (2%) | (6%) | (2%) |
Employment | (4%) | 7% | 1% |
Real Estate | (4%) | (9%) | (4%) |
Legal | (4%) | —% | (4%) |
Other | (8%) | (6%) | (6%) |
Total | (4%) | (3%) | (2%) |
Total average circulation volume, print and digital, replica and non-replica in thousands | ||||||||
2014 | Change | 2013 | Change | 2012 | ||||
Local Publications | ||||||||
Morning | 2,715 | (8%) | 2,967 | (8%) | 3,240 | |||
Evening | 145 | (10%) | 161 | (9%) | 177 | |||
Total daily | 2,860 | (9%) | 3,128 | (8%) | 3,417 | |||
Sunday | 4,569 | (3%) | 4,729 | (5%) | 5,003 |
• | Lower operating results in the U.S. as advertising revenue categories were affected by the impact of the secular pressure on print advertising demand; |
• | Significant increase in digital revenue; |
• | Special charges for transformation costs and asset impairments as well as workforce restructuring costs totaled $123 million in 2014 and $89 million in 2013; |
• | A decrease in newsprint expense. |
• | Lower operating results in the U.S. and U.K. as advertising revenue categories were affected by the impact of the soft economy on advertising demand, partially offset by an increase in circulation revenue at our USCP and U.K. operations; |
• | Strategic initiative spending in 2013 of $36 million; |
• | Special charges for transformation costs and asset impairments as well as workforce restructuring totaled $89 million in 2013 and $74 million in 2012; |
• | Significant increase in digital revenue; |
• | Negative impact of the extra week in 2012; and |
• | A decrease in newsprint expense. |
In millions of dollars | |||||||||||
2014 | Change | 2013 | Change | 2012 | |||||||
Revenues | $ | 919 | 23% | $ | 748 | 4% | $ | 719 | |||
Expenses | 764 | 23% | 620 | (8%) | 677 | ||||||
Operating income | $ | 155 | 21% | $ | 128 | *** | $ | 42 |
Consolidated operating expenses, in millions of dollars | |||||||||||
2014 | Change | 2013(a) | Change | 2012 | |||||||
Cost of sales | $ | 3,049 | 6% | $ | 2,882 | (2%) | $ | 2,944 | |||
Selling, general and admin. expenses | 1,539 | 19% | 1,292 | (1%) | 1,303 | ||||||
Depreciation | 186 | 21% | 153 | (5%) | 161 | ||||||
Amortization of intangible assets | 80 | *** | 36 | 9% | 33 | ||||||
Facility consolidation and asset impairment charges | 96 | 65% | 58 | (52%) | 122 | ||||||
Total | $ | 4,950 | 12% | $ | 4,422 | (3%) | $ | 4,563 | |||
(a) Numbers do not sum due to rounding. |
2014 | 2013 | 2012 | |
Payroll and employee benefits | 46.0% | 47.6% | 45.9% |
Newsprint and other production material | 8.6% | 10.1% | 11.2% |
In millions of dollars, except per share amounts | |||||||||||
2014 | Change | 2013 | Change | 2012 | |||||||
Net income | $ | 1,062 | *** | $ | 389 | (8%) | $ | 424 | |||
Per basic share | $ | 4.69 | *** | $ | 1.70 | (7%) | $ | 1.83 | |||
Per diluted share | $ | 4.58 | *** | $ | 1.66 | (7%) | $ | 1.79 |
• | Workforce restructuring charges; |
• | Transformation costs; |
• | Non-cash asset impairment charges; |
• | A non-cash charge related to a change in control and sale of interests in a business; |
• | Non-cash charges related to certain investments accounted for under the equity method; |
• | Equity income gain on the sale of Apartments.com by Classified Ventures; |
• | Non-operating income from the write-up of our prior equity investment in Cars.com to fair value post acquisition; |
• | Other non-operating expenses related to acquisition costs, donations to our foundation and expenses incurred for our previously announced spin-off of our publishing operation; and |
• | Special tax gains and charges, as well as the tax effect of the above special items. |
In millions of dollars | |||||||||||
2014(a) | Change | 2013 | Change | 2012(a) | |||||||
Operating expense (GAAP basis) | $ | 4,950 | 12% | $ | 4,422 | (3%) | $ | 4,563 | |||
Remove special items: | |||||||||||
Workforce restructuring | (40 | ) | (30%) | (58 | ) | 19% | (49 | ) | |||
Transformation costs | (79 | ) | *** | (25 | ) | (21%) | (32 | ) | |||
Asset impairment charges | (51 | ) | 56% | (33 | ) | (63%) | (90 | ) | |||
As adjusted (non-GAAP basis) | $ | 4,779 | 11% | $ | 4,306 | (2%) | $ | 4,393 | |||
(a) Numbers do not sum due to rounding. |
In millions of dollars | |||||||||||
2014(a) | Change | 2013 | Change | 2012(a) | |||||||
Operating income (GAAP basis) | $ | 1,058 | 43% | $ | 739 | (6%) | $ | 790 | |||
Remove special items: | |||||||||||
Workforce restructuring | 40 | (30%) | 58 | 19% | 49 | ||||||
Transformation costs | 79 | *** | 25 | (21%) | 32 | ||||||
Asset impairment charges | 51 | 56% | 33 | (63%) | 90 | ||||||
As adjusted (non-GAAP basis) | $ | 1,229 | 44% | $ | 855 | (11%) | $ | 960 | |||
(a) Numbers do not sum due to rounding. |
In millions of dollars | |||||||||||
2014 | Change | 2013 | Change | 2012 | |||||||
Total non-operating (expense) income (GAAP basis) | $ | 298 | *** | $ | (180 | ) | 51% | $ | (119 | ) | |
Remove special items: | |||||||||||
Other non-operating items | (542 | ) | *** | 55 | *** | 7 | |||||
As adjusted (non-GAAP basis) | $ | (244 | ) | 95% | $ | (125 | ) | 11% | $ | (112 | ) |
In millions of dollars | |||||||||
2014 | 2013 | 2012(a) | |||||||
Provision for income taxes as reported (GAAP basis) | $ | 226 | $ | 113 | $ | 195 | |||
Remove special items: | |||||||||
Workforce restructuring | 15 | 21 | 19 | ||||||
Transformation costs | 36 | 10 | 13 | ||||||
Asset impairment charges | 5 | 13 | 4 | ||||||
Other non-operating items | (217 | ) | 15 | 3 | |||||
Special tax benefits | 218 | 28 | 13 | ||||||
As adjusted (non-GAAP basis) | $ | 283 | $ | 200 | $ | 246 | |||
As adjusted effective tax rate (non-GAAP basis) | 30.9 | % | 29.7 | % | 30.9 | % | |||
(a) Numbers do not sum due to rounding. |
In millions of dollars, except per share amounts | |||||||||||
2014(a) | Change | 2013(a) | Change | 2012(a) | |||||||
Net income attributable to Gannett Co., Inc. (GAAP basis) | $ | 1,062 | *** | $ | 389 | (8%) | $ | 424 | |||
Remove special items (net of tax): | |||||||||||
Workforce restructuring | 26 | (30%) | 37 | 26% | 29 | ||||||
Transformation costs | 44 | *** | 15 | (23%) | 20 | ||||||
Asset impairment charges | 46 | *** | 20 | — | 87 | ||||||
Other non-operating items | (325 | ) | *** | 41 | *** | 4 | |||||
Special tax benefits | (218 | ) | *** | (28 | ) | *** | (13 | ) | |||
As adjusted (non-GAAP basis) | $ | 634 | 34% | $ | 473 | (14%) | $ | 551 | |||
Diluted earnings per share (GAAP basis) | $ | 4.58 | *** | $ | 1.66 | (7%) | $ | 1.79 | |||
Remove special items (net of tax): | |||||||||||
Workforce restructuring | 0.11 | (31%) | 0.16 | 33% | 0.12 | ||||||
Transformation costs | 0.19 | *** | 0.06 | (25%) | 0.08 | ||||||
Asset impairment charges | 0.20 | *** | 0.08 | (78%) | 0.37 | ||||||
Other non-operating items | (1.40 | ) | *** | 0.17 | *** | 0.02 | |||||
Special tax benefits | (0.94 | ) | *** | (0.12 | ) | *** | (0.06 | ) | |||
As adjusted (non-GAAP basis) | $ | 2.73 | 35% | $ | 2.02 | (13%) | $ | 2.33 | |||
(a) Numbers do not sum due to rounding. |
In millions of dollars | |||||||||||
2014(a) | Change | 2013(a) | Change | 2012(a) | |||||||
Net income attributable to Gannett Co., Inc. (GAAP basis) | $ | 1,062 | *** | $ | 389 | (8%) | $ | 424 | |||
Net income attributable to noncontrolling interests | 68 | 19% | 57 | 13% | 51 | ||||||
Provision for income taxes | 226 | 99% | 113 | (42%) | 195 | ||||||
Interest expense | 273 | 55% | 176 | 17% | 150 | ||||||
Equity income in unconsolidated investees, net | (167 | ) | *** | (44 | ) | 96% | (22 | ) | |||
Other non-operating items | (404 | ) | *** | 48 | *** | (9 | ) | ||||
Operating income (GAAP basis) | $ | 1,058 | 43% | $ | 739 | (6%) | $ | 790 | |||
Remove special items: | |||||||||||
Workforce restructuring | 40 | (30%) | 58 | 19% | 49 | ||||||
Transformation costs | 79 | *** | 25 | (21%) | 32 | ||||||
Asset impairment charges | 51 | 56% | 33 | (63%) | 90 | ||||||
Adjusted operating income (non-GAAP basis) | $ | 1,229 | 44% | $ | 855 | (11%) | $ | 960 | |||
Depreciation | 186 | 21% | 153 | (5%) | 161 | ||||||
Adjusted amortization (non-GAAP basis) | 75 | *** | 36 | 9% | 33 | ||||||
Adjusted EBITDA (non-GAAP basis) | $ | 1,491 | 43% | $ | 1,045 | (9%) | $ | 1,154 | |||
(a) Numbers do not sum due to rounding. |
In millions of dollars | |||||||||||
2014 | Change | 2013 | Change | 2012 | |||||||
Broadcasting Segment operating expenses (GAAP basis) | $ | 947 | 100% | $ | 473 | 2% | $ | 462 | |||
Remove special items: | |||||||||||
Workforce restructuring | (4 | ) | (74%) | (14 | ) | *** | — | ||||
Transformation costs | (18 | ) | *** | (1 | ) | *** | — | ||||
As adjusted (non-GAAP basis) | $ | 925 | 102% | $ | 458 | (1%) | $ | 462 | |||
Broadcasting Segment operating income (GAAP basis) | $ | 745 | 106% | $ | 362 | (18%) | $ | 444 | |||
Remove special items: | |||||||||||
Workforce restructuring | 4 | (74%) | 14 | *** | — | ||||||
Transformation costs | 18 | *** | 1 | *** | — | ||||||
As adjusted (non-GAAP basis) | $ | 767 | 103% | $ | 377 | (15%) | $ | 444 |
In millions of dollars | |||||||||||
2014(a) | Change | 2013(a) | Change | 2012(a) | |||||||
Publishing Segment operating expenses (GAAP basis) | $ | 3,193 | (2%) | $ | 3,264 | (3%) | $ | 3,360 | |||
Remove special items: | |||||||||||
Workforce restructuring | (34 | ) | (22%) | (43 | ) | 2% | (42 | ) | |||
Transformation costs | (61 | ) | *** | (24 | ) | (25%) | (32 | ) | |||
Asset impairment charges | (28 | ) | 29% | (21 | ) | *** | — | ||||
As adjusted (non-GAAP basis) | $ | 3,071 | (3%) | $ | 3,175 | (3%) | $ | 3,285 | |||
Publishing Segment operating income (GAAP basis) | $ | 228 | (27%) | $ | 314 | (15%) | $ | 369 | |||
Remove special items: | |||||||||||
Workforce restructuring | 34 | (22%) | 43 | 2% | 42 | ||||||
Transformation costs | 61 | *** | 24 | (25%) | 32 | ||||||
Asset impairment charges | 28 | 29% | 21 | *** | — | ||||||
As adjusted (non-GAAP basis) | $ | 351 | (13%) | $ | 402 | (9%) | $ | 443 | |||
(a) Numbers do not sum due to rounding. |
In millions of dollars | |||||||||||
2014 | Change | 2013(a) | Change | 2012 | |||||||
Digital Segment operating expenses (GAAP basis) | $ | 764 | 23% | $ | 620 | (8%) | $ | 677 | |||
Remove special items: | |||||||||||
Workforce restructuring | (3 | ) | *** | — | *** | — | |||||
Asset impairment charges | (24 | ) | *** | (12 | ) | (87%) | (90 | ) | |||
As adjusted (non-GAAP basis) | $ | 737 | 21% | $ | 609 | 4% | $ | 587 | |||
Digital Segment operating income (GAAP basis) | $ | 155 | 21% | $ | 128 | *** | $ | 42 | |||
Remove special items: | |||||||||||
Workforce restructuring | 3 | *** | — | *** | — | ||||||
Asset impairment charges | 24 | *** | 12 | (87%) | 90 | ||||||
As adjusted (non-GAAP basis) | $ | 182 | 30% | $ | 140 | 6% | $ | 132 | |||
(a) Numbers do not sum due to rounding. |
In millions of dollars | |||||||||||
2014 | Change | 2013(a) | Change | 2012 | |||||||
Corporate Segment operating expenses (GAAP basis) | $ | 71 | 10% | $ | 65 | —% | $ | 64 | |||
Remove special items: | |||||||||||
Workforce restructuring | — | *** | — | *** | (6 | ) | |||||
As adjusted (non-GAAP basis) | $ | 71 | 11% | $ | 64 | 11% | $ | 58 | |||
(a) Numbers do not sum due to rounding. |
In millions of dollars | ||||||||||||
2014(a) | ||||||||||||
Gannett (as reported) | Special Items(b) | Pro Forma Adjustments(c) | Gannett Pro Forma Combined | |||||||||
Broadcasting revenue: | ||||||||||||
Core | $ | 1,046 | $ | — | $ | 20 | $ | 1,066 | ||||
Political | 159 | — | 1 | 160 | ||||||||
Retransmission | 362 | — | 4 | 366 | ||||||||
Digital | 98 | — | 1 | 98 | ||||||||
Other | 28 | — | 2 | 30 | ||||||||
Total broadcasting revenue | 1,692 | — | 27 | 1,719 | ||||||||
Broadcasting expenses | 947 | (22 | ) | 23 | 948 | |||||||
Broadcasting operating income | $ | 745 | $ | 22 | $ | 4 | $ | 771 | ||||
(a) Numbers may not sum due to rounding. (b) See reconciliation of special items beginning on page 34. (c) We acquired six television stations from London Broadcasting Company on July 8, 2014. Results from these television stations from that date and forward are included in the as reported numbers above. The pro forma combined numbers above present results as if the acquisition had taken place on the first day of 2014. |
In millions of dollars | ||||||||||||
2013(a) | ||||||||||||
Gannett (as reported) | Special Items(b) | Pro Forma Adjustments(c) | Gannett Pro Forma Combined | |||||||||
Broadcasting revenue: | ||||||||||||
Core | $ | 600 | $ | — | $ | 483 | $ | 1,083 | ||||
Political | 13 | — | 9 | 22 | ||||||||
Retransmission | 148 | — | 78 | 226 | ||||||||
Digital | 38 | — | 44 | 82 | ||||||||
Other | 36 | — | (6 | ) | 30 | |||||||
Total broadcasting revenue | 835 | — | 607 | 1,442 | ||||||||
Broadcasting expenses | 473 | (15 | ) | 456 | 914 | |||||||
Broadcasting operating income | $ | 362 | $ | 15 | $ | 151 | $ | 529 | ||||
(a) Numbers may not sum due to rounding. (b) See reconciliation of special items beginning on page 34. (c) The pro forma adjustments include additions to revenue and expenses for the former Belo stations. They exclude revenues and expenses for the sale of stations in Phoenix, AZ and St. Louis, MO. Subsidiaries of Gannett and Sander Media, a holding company that has shared services agreement with Gannett, agreed to sell these stations upon receiving government approval. KMOV-TV, the television station in St. Louis, was sold in February 2014 and the two television stations in Phoenix were sold in June 2014. Revenue and expense adjustments were added for the acquisition of six London Broadcasting Company television stations. The pro forma adjustments for broadcasting expense reflect the addition of amortization for definite-lived intangible assets as if the acquisition of Belo and London Broadcasting Company television stations had occurred on the first day of 2013. Pro Forma adjustments also include the reductions to revenue and expenses for Captivate, as Gannett sold its controlling interest in Captivate in the third quarter of 2013. |
In millions of dollars | ||||||||||||
2014 | ||||||||||||
Gannett (as reported) | Special Items(a) | Pro Forma Adjustments(b) | Gannett Pro Forma Combined | |||||||||
Digital operating revenue | $ | 919 | $ | — | $ | 378 | $ | 1,297 | ||||
Digital operating expense | 764 | (27 | ) | 354 | 1,091 | |||||||
Digital operating income | $ | 155 | $ | 27 | $ | 24 | $ | 206 | ||||
(a) See reconciliation of special items beginning on page 34. (b) The pro forma adjustments include additions to revenue and expenses for the acquisition of Cars.com. The pro forma adjustment reflects the addition of revenue amortization for certain unfavorable contracts and amortization for definite-lived intangible assets as if the acquisition of Cars.com had occurred on the first day of 2014. |
In millions of dollars | ||||||||||||
2013(a) | ||||||||||||
Gannett (as reported) | Special Items(b) | Pro Forma Adjustments(c) | Gannett Pro Forma Combined | |||||||||
Digital operating revenue | $ | 748 | $ | — | $ | 452 | $ | 1,201 | ||||
Digital operating expense | 620 | (12 | ) | 435 | 1,044 | |||||||
Digital operating income | $ | 128 | $ | 12 | $ | 17 | $ | 157 | ||||
(a) Numbers may not sum due to rounding. (b) See reconciliation of special items beginning on page 34. (c) The pro forma adjustments include additions to revenue and expenses for the acquisition of Cars.com. The pro forma adjustment reflects the addition of revenue amortization for certain unfavorable contracts and amortization for definite-lived intangible assets as if the acquisition of Cars.com had occurred on the first day of 2013. In 2014, a small online business was moved from the Digital Segment to the Publishing Segment as a result of continued integration with other Publishing businesses. |
In millions of dollars | ||||||||||||
2014 | ||||||||||||
Gannett (as reported) | Special Items(a) | Pro Forma Adjustments(b) | Gannett Pro Forma Combined | |||||||||
Company-wide operating revenue | $ | 6,008 | $ | — | $ | 347 | $ | 6,355 | ||||
Company-wide operating expenses | 4,950 | (171 | ) | 317 | 5,096 | |||||||
Company-wide operating income | $ | 1,058 | $ | 171 | $ | 30 | $ | 1,259 | ||||
(a) See reconciliation of special items beginning on page 34. (b) The pro forma adjustments include all the pro forma adjustments discussed above. |
In millions of dollars | ||||||||||||
2013 | ||||||||||||
Gannett (as reported) | Special Items(a) | Pro Forma Adjustments(b) | Gannett Pro Forma Combined | |||||||||
Company-wide operating revenue | $ | 5,161 | $ | — | $ | 969 | $ | 6,130 | ||||
Company-wide operating expenses | 4,422 | (116 | ) | 803 | 5,109 | |||||||
Company-wide operating income | $ | 739 | $ | 116 | $ | 166 | $ | 1,021 | ||||
(a) See reconciliation of special items beginning on page 34. (b) The pro forma adjustments include all the pro forma adjustments discussed above. |
Working capital measurements | |||
2014 | 2013 | 2012 | |
Current ratio | 1.3-to-1 | 1.9-to-1 | 1.1-to-1 |
Accounts receivable turnover | 6.9 | 6.8 | 7.8 |
Newsprint inventory turnover | 6.3 | 5.5 | 6.1 |
In thousands of dollars | ||||||
Dec. 28, 2014 | Dec. 29, 2013 | |||||
Unsecured floating rate term loan due quarterly through August 2018 | $ | 123,200 | $ | 154,800 | ||
VIE unsecured floating rate term loans due quarterly through December 2018 | 33,379 | 39,270 | ||||
Unsecured notes bearing fixed rate interest at 8.75% due November 2014 | — | 250,000 | ||||
Unsecured notes bearing fixed rate interest at 10% due June 2015 | 66,568 | 66,568 | ||||
Unsecured notes bearing fixed rate interest at 6.375% due September 2015 | 250,000 | 250,000 | ||||
Unsecured notes bearing fixed rate interest at 10% due April 2016 | 193,429 | 193,429 | ||||
Unsecured notes bearing fixed rate interest at 9.375% due November 2017 | — | 250,000 | ||||
Borrowings under revolving credit agreement expiring August 2018 | 640,000 | — | ||||
Unsecured notes bearing fixed rate interest at 7.125% due September 2018 | 250,000 | 250,000 | ||||
Unsecured notes bearing fixed rate interest at 5.125% due October 2019 | 600,000 | 600,000 | ||||
Unsecured notes bearing fixed rate interest at 5.125% due July 2020 | 600,000 | 600,000 | ||||
Unsecured notes bearing fixed rate interest at 4.875% due September 2021 | 350,000 | — | ||||
Unsecured notes bearing fixed rate interest at 6.375% due October 2023 | 650,000 | 650,000 | ||||
Unsecured notes bearing fixed rate interest at 5.50% due September 2024 | 325,000 | — | ||||
Unsecured notes bearing fixed rate interest at 7.75% due June 2027 | 200,000 | 200,000 | ||||
Unsecured notes bearing fixed rate interest at 7.25% due September 2027 | 240,000 | 240,000 | ||||
Total principal long-term debt | 4,521,576 | 3,744,067 | ||||
Other (fair market value adjustments and discounts) | (25,694 | ) | (31,167 | ) | ||
Total long-term debt | 4,495,882 | 3,712,900 | ||||
Less current portion of long-term debt maturities of VIE loans | 7,854 | 5,890 | ||||
Long-term debt, net of current portion | $ | 4,488,028 | $ | 3,707,010 |
In thousands of dollars | |||
2015 (1) | $ | 7,854 | |
2016 | 232,883 | ||
2017 | 39,454 | ||
2018 | 1,276,385 | ||
2019 | 600,000 | ||
Thereafter | 2,365,000 | ||
Total | $ | 4,521,576 |
Contractual obligations | Payments due by period | ||||||||||||||
In millions of dollars | Total | 2015 | 2016-17 | 2018-19 | Thereafter | ||||||||||
Long-term debt (1) | $ | 4,522 | $ | 8 | $ | 272 | $ | 1,877 | $ | 2,365 | |||||
Operating leases (2) | 331 | 64 | 104 | 67 | 96 | ||||||||||
Purchase obligations (3) | 241 | 142 | 67 | 32 | — | ||||||||||
Programming contracts (4) | 214 | 95 | 107 | 12 | — | ||||||||||
Other noncurrent liabilities (5) | 287 | 56 | 58 | 54 | 119 | ||||||||||
Total | $ | 5,595 | $ | 365 | $ | 608 | $ | 2,042 | $ | 2,580 |
(1) | See Note 6 to the Consolidated Financial Statements. The amounts included above include periodic interest payments. Interest payments are based on interest rates in effect at year-end. |
(2) | See Note 11 to the Consolidated Financial Statements. |
(3) | Includes purchase obligations related to printing contracts, capital projects, interactive marketing agreements, wire services and other legally binding commitments. Amounts which we are liable for under purchase orders outstanding at Dec. 28, 2014, are reflected in the Consolidated Balance Sheets as accounts payable and accrued liabilities and are excluded from the table above. |
(4) | Programming contracts include television station commitments to purchase programming to be produced in future years. This also includes amounts fixed or currently accrued under network affiliation agreements. |
(5) | Other long-term liabilities consist of both unfunded and under-funded postretirement benefit plans. Unfunded plans include the Gannett Supplemental Executive Retirement Plan and the Gannett Retiree Welfare Plan. Employer contributions, which equal the expected benefit payments, are reflected in the table above over the next ten-year period. Our under-funded plans include the Gannett Retirement Plan, the G.B. Dealey Retirement Plan, the Newsquest Pension Scheme, and the Detroit Free Press, Inc. Newspaper Guild of Detroit Pension Plan. Expected employer contributions for these plans are included for the following fiscal year. Contributions beyond the next fiscal year are excluded 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. |
Stock repurchases | Repurchases made in fiscal year | ||||||||
In millions | 2014 | 2013 | 2012 | ||||||
Number of shares purchased | 2.7 | 4.9 | 10.3 | ||||||
Dollar amount purchased | $ | 76 | $ | 117 | $ | 154 |
Cash dividends | Payment date | Per share | |||
2014 | 4th Quarter | Jan. 2, 2015 | $ | 0.20 | |
3rd Quarter | Oct. 1, 2014 | $ | 0.20 | ||
2nd Quarter | Jul. 1, 2014 | $ | 0.20 | ||
1st Quarter | Apr. 1, 2014 | $ | 0.20 | ||
2013 | 4th Quarter | Jan. 2, 2014 | $ | 0.20 | |
3rd Quarter | Oct. 1, 2013 | $ | 0.20 | ||
2nd Quarter | Jul. 1, 2013 | $ | 0.20 | ||
1st Quarter | Apr. 1, 2013 | $ | 0.20 |
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
Page | |
FINANCIAL STATEMENTS | |
OTHER INFORMATION | |
SUPPLEMENTARY DATA | |
FINANCIAL STATEMENT SCHEDULE | |
* | All other schedules prescribed under Regulation S-X are omitted because they are not applicable or not required. |
GANNETT CO., INC. CONSOLIDATED BALANCE SHEETS | ||||||
In thousands of dollars | ||||||
Assets | Dec. 28, 2014 | Dec. 29, 2013 | ||||
Current assets | ||||||
Cash and cash equivalents | $ | 118,484 | $ | 469,203 | ||
Trade receivables, less allowance for doubtful receivables of $16,498 and $15,275, respectively | 912,004 | 834,052 | ||||
Other receivables | 72,763 | 28,592 | ||||
Inventories | 38,861 | 49,950 | ||||
Deferred income taxes | 158,648 | 21,245 | ||||
Assets held for sale | 69,998 | 395,851 | ||||
Prepaid expenses and other current assets | 109,707 | 124,592 | ||||
Total current assets | 1,480,465 | 1,923,485 | ||||
Property, plant and equipment | ||||||
Land | 191,530 | 237,554 | ||||
Buildings and improvements | 1,270,401 | 1,239,719 | ||||
Machinery, equipment and fixtures | 2,411,821 | 2,506,121 | ||||
Construction in progress | 28,117 | 24,485 | ||||
Total | 3,901,869 | 4,007,879 | ||||
Less accumulated depreciation | (2,292,654 | ) | (2,338,247 | ) | ||
Net property, plant and equipment | 1,609,215 | 1,669,632 | ||||
Intangible and other assets | ||||||
Goodwill | 4,499,927 | 3,790,472 | ||||
Indefinite-lived and amortizable intangible assets, less accumulated amortization of $265,727 and $201,178, respectively | 3,239,593 | 1,477,231 | ||||
Deferred income taxes | 63,647 | — | ||||
Investments and other assets | 312,608 | 379,886 | ||||
Total intangible and other assets | 8,115,775 | 5,647,589 | ||||
Total assets(a) | $ | 11,205,455 | $ | 9,240,706 | ||
GANNETT CO., INC. CONSOLIDATED BALANCE SHEETS | ||||||
In thousands of dollars | ||||||
Liabilities and equity | Dec. 28, 2014 | Dec. 29, 2013 | ||||
Current liabilities | ||||||
Accounts payable | ||||||
Trade | $ | 246,860 | $ | 176,055 | ||
Other | 34,924 | 39,245 | ||||
Accrued liabilities | ||||||
Compensation | 225,704 | 214,434 | ||||
Interest | 64,929 | 58,575 | ||||
Other | 273,995 | 226,153 | ||||
Dividends payable | 45,309 | 45,645 | ||||
Income taxes | 11,267 | 17,791 | ||||
Deferred income | 217,094 | 223,404 | ||||
Current portion of long-term debt | 7,854 | 5,890 | ||||
Total current liabilities | 1,127,936 | 1,007,192 | ||||
Income taxes | 56,578 | 49,748 | ||||
Deferred income taxes | 650,372 | 587,904 | ||||
Long-term debt | 4,488,028 | 3,707,010 | ||||
Postretirement medical and life insurance liabilities | 97,648 | 129,078 | ||||
Pension liabilities | 941,715 | 632,195 | ||||
Other noncurrent liabilities | 333,435 | 218,168 | ||||
Total noncurrent liabilities | 6,567,776 | 5,324,103 | ||||
Total liabilities(a) | 7,695,712 | 6,331,295 | ||||
Redeemable noncontrolling interest | 20,470 | 14,618 | ||||
Commitments and contingent liabilities (see Note 11) | ||||||
Equity | ||||||
Gannett Co., Inc. shareholders’ equity | ||||||
Preferred stock, par value $1: Authorized, 2,000,000 shares: Issued, none | — | — | ||||
Common stock, par value $1: Authorized, 800,000,000 shares: Issued, 324,418,632 shares | 324,419 | 324,419 | ||||
Additional paid-in capital | 546,406 | 552,368 | ||||
Retained earnings | 8,602,369 | 7,720,903 | ||||
Accumulated other comprehensive loss | (778,769 | ) | (494,055 | ) | ||
8,694,425 | 8,103,635 | |||||
Less Treasury stock, 97,679,541 shares and 96,849,744 shares, respectively, at cost | (5,439,511 | ) | (5,410,537 | ) | ||
Total Gannett Co., Inc. shareholders’ equity | 3,254,914 | 2,693,098 | ||||
Noncontrolling interests | 234,359 | 201,695 | ||||
Total equity | 3,489,273 | 2,894,793 | ||||
Total liabilities, redeemable noncontrolling interest and equity | $ | 11,205,455 | $ | 9,240,706 |
GANNETT CO., INC. CONSOLIDATED STATEMENTS OF INCOME | ||||||||||
In thousands of dollars, except per share amounts | ||||||||||
Fiscal year ended | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |||||||
Operating revenues | $ | 6,008,174 | $ | 5,161,362 | $ | 5,353,197 | ||||
Operating expenses | ||||||||||
Cost of sales and operating expenses, exclusive of depreciation | 3,048,579 | 2,882,449 | 2,943,847 | |||||||
Selling, general and administrative expenses, exclusive of depreciation | 1,539,476 | 1,291,858 | 1,303,427 | |||||||
Depreciation | 185,868 | 153,203 | 160,746 | |||||||
Amortization of intangible assets | 79,856 | 36,369 | 33,293 | |||||||
Facility consolidation and asset impairment charges (see Notes 3 and 4) | 96,364 | 58,240 | 122,129 | |||||||
Total operating expenses | 4,950,143 | 4,422,119 | 4,563,442 | |||||||
Operating income | 1,058,031 | 739,243 | 789,755 | |||||||
Non-operating (expense) income | ||||||||||
Equity income in unconsolidated investees, net (see Notes 3 and 5) | 167,319 | 43,824 | 22,387 | |||||||
Interest expense | (273,244 | ) | (176,064 | ) | (150,469 | ) | ||||
Other non-operating items | 403,954 | (47,890 | ) | 8,734 | ||||||
Total | 298,029 | (180,130 | ) | (119,348 | ) | |||||
Income before income taxes | 1,356,060 | 559,113 | 670,407 | |||||||
Provision for income taxes | 225,600 | 113,200 | 195,400 | |||||||
Net income | 1,130,460 | 445,913 | 475,007 | |||||||
Net income attributable to noncontrolling interests | (68,289 | ) | (57,233 | ) | (50,727 | ) | ||||
Net income attributable to Gannett Co., Inc. | $ | 1,062,171 | $ | 388,680 | $ | 424,280 | ||||
Net income per share—basic | $ | 4.69 | $ | 1.70 | $ | 1.83 | ||||
Net income per share—diluted | $ | 4.58 | $ | 1.66 | $ | 1.79 |
GANNETT CO., INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||
In thousands of dollars | ||||||||||
Fiscal year ended | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |||||||
Net income | $ | 1,130,460 | $ | 445,913 | $ | 475,007 | ||||
Redeemable noncontrolling interest (income not available to shareholders) | (3,420 | ) | (1,997 | ) | (254 | ) | ||||
Other comprehensive income (loss), before tax: | ||||||||||
Foreign currency translation adjustments | (43,766 | ) | 9,055 | 18,107 | ||||||
Pension and other postretirement benefit items: | ||||||||||
Actuarial gain (loss): | ||||||||||
Actuarial gain (loss) arising during the period | (500,389 | ) | 286,778 | (230,799 | ) | |||||
Amortization of actuarial loss | 46,489 | 64,381 | 55,372 | |||||||
Prior service cost: | ||||||||||
Change in prior service credit | 37,986 | 319 | — | |||||||
Amortization of prior service credit | (4,082 | ) | (1,599 | ) | (11,501 | ) | ||||
Settlement charge | — | 3,077 | 7,946 | |||||||
Other | 23,628 | (10,158 | ) | (11,375 | ) | |||||
Pension and other postretirement benefit items | (396,368 | ) | 342,798 | (190,357 | ) | |||||
Other | — | 2,363 | 1,791 | |||||||
Other comprehensive income (loss) before tax | (440,134 | ) | 354,216 | (170,459 | ) | |||||
Income tax effect related to components of other comprehensive income (loss) | 147,718 | (145,478 | ) | 66,948 | ||||||
Other comprehensive income (loss), net of tax | (292,416 | ) | 208,738 | (103,511 | ) | |||||
Comprehensive income | 834,624 | 652,654 | 371,242 | |||||||
Comprehensive income attributable to noncontrolling interests, net of tax | 57,167 | 56,888 | 52,264 | |||||||
Comprehensive income attributable to Gannett Co., Inc. | $ | 777,457 | $ | 595,766 | $ | 318,978 |
GANNETT CO., INC. CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
In thousands of dollars | ||||||||||
Fiscal year ended | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |||||||
Cash flows from operating activities | ||||||||||
Net income | $ | 1,130,460 | $ | 445,913 | $ | 475,007 | ||||
Adjustments to reconcile net income to operating cash flows: | ||||||||||
Gain on Cars.com acquisition, net of tax | (285,860 | ) | — | — | ||||||
Depreciation | 185,868 | 153,203 | 160,746 | |||||||
Amortization of intangible assets | 79,856 | 36,369 | 33,293 | |||||||
Facility consolidation and asset impairment charges (see Notes 3 and 4) | 112,472 | 61,014 | 122,129 | |||||||
Stock-based compensation — equity awards | 33,882 | 33,437 | 26,608 | |||||||
Provision for deferred income taxes | 1,200 | 53,900 | 122,700 | |||||||
Pension expense, net of pension contributions | (111,194 | ) | (82,878 | ) | (95,377 | ) | ||||
Equity income in unconsolidated investees, net (see Notes 3 and 5) | (167,319 | ) | (43,824 | ) | (22,387 | ) | ||||
Other, net, including gains on asset sales | (12,313 | ) | (4,673 | ) | (36,056 | ) | ||||
Decrease (increase) in trade receivables | (1,514 | ) | (17,884 | ) | 35,799 | |||||
Decrease in other receivables | 7,504 | 9,329 | 6,200 | |||||||
Decrease (increase) in inventories | 10,032 | 4,489 | (7,167 | ) | ||||||
Increase (decrease) in accounts payable | 66,740 | (29,310 | ) | (3,284 | ) | |||||
Increase (decrease) in interest and taxes payable | (193,274 | ) | (53,101 | ) | 853 | |||||
Decrease in deferred income | (5,353 | ) | (12,233 | ) | (5,294 | ) | ||||
Change in other assets and liabilities, net | (29,988 | ) | (42,263 | ) | (57,030 | ) | ||||
Net cash flows from operating activities | 821,199 | 511,488 | 756,740 | |||||||
Cash flows from investing activities | ||||||||||
Purchase of property, plant and equipment | (150,354 | ) | (110,407 | ) | (91,874 | ) | ||||
Payments for acquisitions, net of cash acquired | (1,990,877 | ) | (1,451,006 | ) | (67,244 | ) | ||||
Payments for investments | (7,026 | ) | (3,380 | ) | (2,501 | ) | ||||
Proceeds from investments | 180,809 | 63,408 | 35,629 | |||||||
Proceeds from sale of certain assets | 305,347 | 113,895 | 39,009 | |||||||
Net cash used for investing activities | (1,662,101 | ) | (1,387,490 | ) | (86,981 | ) | ||||
Cash flows from financing activities | ||||||||||
Proceeds from (payments of) borrowings under revolving credit facilities, net | 640,000 | (205,000 | ) | (30,000 | ) | |||||
Proceeds from unsecured fixed rate loans | 666,732 | 1,827,799 | — | |||||||
Proceeds from (payments of) unsecured floating rate term loans | (37,490 | ) | 194,070 | — | ||||||
Payments of unsecured fixed rate notes | (500,000 | ) | (287,719 | ) | (306,571 | ) | ||||
Payments of debt issuance and financing costs | (10,548 | ) | (41,960 | ) | — | |||||
Dividends paid | (181,328 | ) | (183,233 | ) | (158,822 | ) | ||||
Cost of common shares repurchased | (75,815 | ) | (116,639 | ) | (153,948 | ) | ||||
Proceeds from issuance of common stock upon settlement of stock awards | 26,672 | 31,435 | 33,748 | |||||||
Distributions to noncontrolling membership interests | (22,072 | ) | (42,608 | ) | (47,100 | ) | ||||
Deferred payments for acquisitions | (15,687 | ) | (6,132 | ) | (1,027 | ) | ||||
Net cash provided by (used for) financing activities | 490,464 | 1,170,013 | (663,720 | ) | ||||||
Effect of currency exchange rate change | (281 | ) | 162 | 2,065 | ||||||
Increase (decrease) in cash and cash equivalents | (350,719 | ) | 294,173 | 8,104 | ||||||
Balance of cash and cash equivalents at beginning of year | 469,203 | 175,030 | 166,926 | |||||||
Balance of cash and cash equivalents at end of year | $ | 118,484 | $ | 469,203 | $ | 175,030 | ||||
Supplemental cash flow information: | ||||||||||
Cash paid for taxes, net of refunds | $ | 207,038 | $ | 124,378 | $ | 64,838 | ||||
Cash paid for interest | $ | 242,190 | $ | 126,180 | $ | 138,906 | ||||
Non-cash investing and financing activities | ||||||||||
Assets-held-for-sale proceeds | $ | 146,428 | $ | — | $ | — | ||||
Escrow deposit disbursement related to London Broadcasting Company television stations acquisition | $ | (134,908 | ) | $ | — | $ | — | |||
Capital expenditures | $ | (11,520 | ) | $ | — | $ | — |
GANNETT CO., INC. CONSOLIDATED STATEMENTS OF EQUITY | ||||||||||||||||||||||
In thousands of dollars | Gannett Co., Inc. Shareholders’ Equity | |||||||||||||||||||||
Fiscal years ended Dec. 30, 2012, Dec. 29, 2013, and Dec. 28, 2014 | Common stock $1 par value | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock | Noncontrolling Interests | Total | |||||||||||||||
Balance: Dec. 25, 2011 | $ | 324,419 | $ | 617,727 | $ | 7,276,200 | $ | (595,839 | ) | $ | (5,294,616 | ) | $ | 184,134 | $ | 2,512,025 | ||||||
Net income, 2012 | 424,280 | 50,727 | 475,007 | |||||||||||||||||||
Redeemable noncontrolling interest | (254 | ) | (254 | ) | ||||||||||||||||||
Other comprehensive income (loss), net of tax | (105,302 | ) | 1,791 | (103,511 | ) | |||||||||||||||||
Total comprehensive income | 371,242 | |||||||||||||||||||||
Dividends declared, 2012: $0.80 per share | (185,622 | ) | (185,622 | ) | ||||||||||||||||||
Distributions to noncontrolling membership shareholders | (47,100 | ) | (47,100 | ) | ||||||||||||||||||
Treasury stock acquired | (153,948 | ) | (153,948 | ) | ||||||||||||||||||
Stock options exercised | (42,282 | ) | 66,787 | 24,505 | ||||||||||||||||||
Restricted stock awards settled | (32,860 | ) | 25,890 | (6,970 | ) | |||||||||||||||||
Stock-based compensation | 26,608 | 26,608 | ||||||||||||||||||||
Tax benefit derived from stock awards settled | 9,243 | 9,243 | ||||||||||||||||||||
Other activity | (10,921 | ) | 850 | (10,071 | ) | |||||||||||||||||
Balance: Dec. 30, 2012 | $ | 324,419 | $ | 567,515 | $ | 7,514,858 | $ | (701,141 | ) | $ | (5,355,037 | ) | $ | 189,298 | $ | 2,539,912 | ||||||
Net income, 2013 | 388,680 | 57,233 | 445,913 | |||||||||||||||||||
Redeemable noncontrolling interest | (1,997 | ) | (1,997 | ) | ||||||||||||||||||
Other comprehensive income, net of tax | 207,086 | 1,652 | 208,738 | |||||||||||||||||||
Total comprehensive income | 652,654 | |||||||||||||||||||||
Dividends declared, 2013: $0.80 per share | (182,635 | ) | (182,635 | ) | ||||||||||||||||||
Distributions to noncontrolling membership shareholders | (42,390 | ) | (42,390 | ) | ||||||||||||||||||
Treasury stock acquired | (116,639 | ) | (116,639 | ) | ||||||||||||||||||
Stock options exercised | (18,518 | ) | 40,189 | 21,671 | ||||||||||||||||||
Restricted stock awards settled | (31,707 | ) | 21,227 | (10,480 | ) | |||||||||||||||||
Stock-based compensation | 33,437 | 33,437 | ||||||||||||||||||||
Tax benefit derived from stock awards settled | 9,764 | 9,764 | ||||||||||||||||||||
Other activity | (8,123 | ) | (277 | ) | (2,101 | ) | (10,501 | ) | ||||||||||||||
Balance: Dec. 29, 2013 | $ | 324,419 | $ | 552,368 | $ | 7,720,903 | $ | (494,055 | ) | $ | (5,410,537 | ) | $ | 201,695 | $ | 2,894,793 | ||||||
Net income, 2014 | 1,062,171 | 68,289 | 1,130,460 | |||||||||||||||||||
Redeemable noncontrolling interest | (3,420 | ) | (3,420 | ) | ||||||||||||||||||
Other comprehensive loss, net of tax | (284,714 | ) | (7,702 | ) | (292,416 | ) | ||||||||||||||||
Total comprehensive income | 834,624 | |||||||||||||||||||||
Dividends declared, 2014: $0.80 per share | (180,705 | ) | (180,705 | ) | ||||||||||||||||||
Distributions to noncontrolling membership shareholders | (22,072 | ) | (22,072 | ) | ||||||||||||||||||
Treasury stock acquired | (75,815 | ) | (75,815 | ) | ||||||||||||||||||
Stock options exercised | (10,399 | ) | 24,634 | 14,235 | ||||||||||||||||||
Restricted stock awards settled | (36,397 | ) | 22,493 | (13,904 | ) | |||||||||||||||||
Stock-based compensation | 33,882 | 33,882 | ||||||||||||||||||||
Tax benefit derived from stock awards settled | 12,437 | 12,437 | ||||||||||||||||||||
Other activity | (5,485 | ) | (286 | ) | (2,431 | ) | (8,202 | ) | ||||||||||||||
Balance: Dec. 28, 2014 | $ | 324,419 | $ | 546,406 | $ | 8,602,369 | $ | (778,769 | ) | $ | (5,439,511 | ) | $ | 234,359 | $ | 3,489,273 |
In thousands of dollars | ||||||
Dec. 28, 2014 | Dec. 29, 2013 | |||||
Current assets | $ | 20,541 | $ | 4,677 | ||
Plant, property and equipment, net | 10,084 | 8,061 | ||||
Intangible and other assets | 29,412 | 32,008 | ||||
Total assets | 60,037 | 44,746 | ||||
Current liabilities | 11,635 | 7,827 | ||||
Noncurrent liabilities | 26,028 | 34,173 | ||||
Total liabilities | $ | 37,663 | $ | 42,000 |
In thousands of dollars | |||
Cash and cash equivalents | $ | 43,767 | |
Receivables and other current assets | 108,577 | ||
Plant, property and equipment | 17,399 | ||
Indefinite-lived intangible assets | 872,320 | ||
Definite-lived intangible assets: | |||
Customer relationships | 789,540 | ||
Internally developed technology | 69,500 | ||
Other | 2,860 | ||
Investments and other noncurrent assets | 14,598 | ||
Goodwill | 715,970 | ||
Total assets acquired | 2,634,531 | ||
Current liabilities | 106,970 | ||
Other noncurrent liabilities | 132,606 | ||
Total liabilities assumed | 239,576 | ||
Net assets acquired | 2,394,955 | ||
Less: acquisition date fair value of 26.9% equity interest | 563,757 | ||
Acquisition purchase price | $ | 1,831,198 |
Unaudited | ||||||
In thousands of dollars | 2014 | 2013 | ||||
Total revenues | $ | 6,340,703 | $ | 5,563,472 | ||
Net income attributable to Gannett Co., Inc. | $ | 754,851 | $ | 356,354 |
In thousands of dollars | |||
Cash and cash equivalents | $ | 38,107 | |
Receivables and other current assets | 163,326 | ||
Assets held for sale | 431,513 | ||
Plant, property and equipment | 254,267 | ||
Indefinite-lived FCC licenses | 835,900 | ||
Definite-lived intangible assets: | |||
Retransmission agreements | 99,803 | ||
Network affiliation agreements | 33,978 | ||
Other | 52,782 | ||
Investments and other noncurrent assets | 52,902 | ||
Goodwill | 928,739 | ||
Total assets acquired | 2,891,317 | ||
Current liabilities | 87,073 | ||
Deferred income taxes | 514,450 | ||
Other noncurrent liabilities | 76,500 | ||
Long-term debt | 741,708 | ||
Total liabilities assumed | 1,419,731 | ||
Net assets acquired | $ | 1,471,586 |
In thousands, except per share amounts | |||||||||
2014 | Pre-Tax Amount | After-Tax Amount | Per Share Amount | ||||||
Facility consolidation and asset impairment charges: | |||||||||
Goodwill: | |||||||||
Publishing | $ | 21,881 | $ | 18,881 | $ | 0.08 | |||
Digital | 23,700 | 23,700 | 0.10 | ||||||
Total goodwill | 45,581 | 42,581 | 0.18 | ||||||
Other intangible assets - Publishing | 3,548 | 2,148 | 0.01 | ||||||
Property, plant and equipment - Publishing | 19,467 | 13,467 | 0.06 | ||||||
Other: | |||||||||
Broadcasting | 13,720 | 8,219 | 0.04 | ||||||
Publishing | 14,048 | 8,049 | 0.03 | ||||||
Total other | 27,768 | 16,268 | 0.07 | ||||||
Total facility consolidation and asset impairment charges against operations | 96,364 | 74,464 | 0.32 | ||||||
Non-operating charges: | |||||||||
Equity method investments | 3,063 | 2,163 | 0.01 | ||||||
Other - Broadcasting | 16,108 | 6,508 | 0.03 | ||||||
Total charges | $ | 115,535 | $ | 83,135 | $ | 0.36 |
In thousands, except per share amounts | |||||||||
2013 | Pre-Tax Amount (a) | After-Tax Amount(a) | Per Share Amount(a) | ||||||
Facility consolidation and asset impairment charges: | |||||||||
Goodwill: | |||||||||
Publishing | $ | 8,430 | $ | 4,930 | $ | 0.02 | |||
Digital | 11,614 | 6,914 | 0.03 | ||||||
Total goodwill | 20,044 | 11,844 | 0.05 | ||||||
Other intangible assets - Publishing | 12,952 | 7,852 | 0.03 | ||||||
Property, plant and equipment - Publishing | 14,756 | 8,856 | 0.04 | ||||||
Other: | |||||||||
Broadcasting | 1,033 | 533 | — | ||||||
Publishing | 9,454 | 5,754 | 0.02 | ||||||
Total other | 10,487 | 6,287 | 0.03 | ||||||
Total facility consolidation and asset impairment charges against operations | 58,240 | 34,840 | 0.15 | ||||||
Non-operating charges: | |||||||||
Equity method investments | 731 | 431 | — | ||||||
Other - Publishing | 2,774 | 1,774 | 0.01 | ||||||
Total charges | $ | 61,745 | $ | 37,045 | $ | 0.16 |
In thousands, except per share amounts | |||||||||
2012 | Pre-Tax Amount | After-Tax Amount | Per Share Amount(a) | ||||||
Facility consolidation and asset impairment charges: | |||||||||
Goodwill - Digital | $ | 90,053 | $ | 86,553 | $ | 0.37 | |||
Property, plant and equipment - Publishing | 29,520 | 17,920 | 0.08 | ||||||
Other - Publishing | 2,556 | 1,656 | 0.01 | ||||||
Total facility consolidation and asset impairment charges against operations | 122,129 | 106,129 | 0.45 | ||||||
Non-operating charges: | |||||||||
Equity method investments | 7,036 | 4,336 | 0.02 | ||||||
Total charges | $ | 129,165 | $ | 110,465 | $ | 0.47 |
In thousands of dollars | |||||||||
Gross | Accumulated Amortization | Net | |||||||
Dec. 28, 2014 | |||||||||
Goodwill | $ | 4,499,927 | $ | — | $ | 4,499,927 | |||
Indefinite-lived intangibles: | |||||||||
Television station FCC licenses | 1,191,950 | — | 1,191,950 | ||||||
Mastheads and trade names | 951,776 | — | 951,776 | ||||||
Amortizable intangible assets: | |||||||||
Customer relationships | 1,078,738 | (212,438 | ) | 866,300 | |||||
Other | 282,856 | (53,289 | ) | 229,567 | |||||
Total | $ | 8,005,247 | $ | (265,727 | ) | $ | 7,739,520 | ||
Dec. 29, 2013 | |||||||||
Goodwill | $ | 3,790,472 | $ | — | $ | 3,790,472 | |||
Indefinite-lived intangibles: | |||||||||
Television station FCC licenses | 1,091,204 | — | 1,091,204 | ||||||
Mastheads and trade names | 82,570 | — | 82,570 | ||||||
Amortizable intangible assets: | |||||||||
Customer relationships | 290,845 | (177,515 | ) | 113,330 | |||||
Other | 213,790 | (23,663 | ) | 190,127 | |||||
Total | $ | 5,468,881 | $ | (201,178 | ) | $ | 5,267,703 |
In thousands of dollars | |||
2015 | $ | 124,536 | |
2016 | $ | 116,495 | |
2017 | $ | 109,641 | |
2018 | $ | 106,772 | |
2019 | $ | 102,737 |
In thousands of dollars | ||||||||||||
Broadcasting | Publishing | Digital | Total | |||||||||
Goodwill | ||||||||||||
Gross balance at Dec. 30, 2012 | $ | 1,618,602 | $ | 7,754,959 | $ | 722,781 | $ | 10,096,342 | ||||
Accumulated impairment losses | — | (7,132,817 | ) | (116,656 | ) | (7,249,473 | ) | |||||
Net balance at Dec. 30, 2012 | $ | 1,618,602 | $ | 622,142 | $ | 606,125 | $ | 2,846,869 | ||||
Acquisitions & adjustments | 943,841 | 2,266 | 28,115 | 974,222 | ||||||||
Impairment | — | (8,430 | ) | (11,614 | ) | (20,044 | ) | |||||
Dispositions | (19,000 | ) | — | — | (19,000 | ) | ||||||
Foreign currency exchange rate changes | (110 | ) | 3,903 | 4,632 | 8,425 | |||||||
Balance at Dec. 29, 2013 | $ | 2,543,333 | $ | 619,881 | $ | 627,258 | $ | 3,790,472 | ||||
Gross balance at Dec. 29, 2013 | 2,543,333 | 7,807,416 | 755,528 | 11,106,277 | ||||||||
Accumulated impairment losses | — | (7,187,535 | ) | (128,270 | ) | (7,315,805 | ) | |||||
Net balance at Dec. 29, 2013 | $ | 2,543,333 | $ | 619,881 | $ | 627,258 | $ | 3,790,472 | ||||
Acquisitions & adjustments | 35,268 | 4,579 | 749,250 | 789,097 | ||||||||
Assets held for sale | — | (6,288 | ) | — | (6,288 | ) | ||||||
Impairment | — | (21,881 | ) | (23,700 | ) | (45,581 | ) | |||||
Foreign currency exchange rate changes | — | (11,134 | ) | (16,639 | ) | (27,773 | ) | |||||
Balance at Dec. 28, 2014 | $ | 2,578,601 | $ | 585,157 | $ | 1,336,169 | $ | 4,499,927 | ||||
Gross balance at Dec. 28, 2014 | 2,578,601 | 7,662,543 | 1,488,139 | 11,729,283 | ||||||||
Accumulated impairment losses | — | (7,077,386 | ) | (151,970 | ) | (7,229,356 | ) | |||||
Net balance at Dec. 28, 2014 | $ | 2,578,601 | $ | 585,157 | $ | 1,336,169 | $ | 4,499,927 |
% Owned Dec. 28, 2014 | |
Ponderay Newsprint Company | 13.50% |
Captivate Holdings, LLC | 16.74% |
California Newspapers Partnership | 19.49% |
Wanderful Media, LLC | 19.50% |
4Info | 24.53% |
Livestream | 27.73% |
Pearl, LLC | 32.10% |
Homefinder.com | 33.33% |
Topix | 33.71% |
Garnet Media | 34.00% |
Texas-New Mexico Newspapers Partnership | 40.64% |
TNI Partners | 50.00% |
In thousands of dollars | ||||||
Dec. 28, 2014 | Dec. 29, 2013 | |||||
Unsecured floating rate term loan due quarterly through August 2018 | $ | 123,200 | $ | 154,800 | ||
VIE unsecured floating rate term loans due quarterly through December 2018 | 33,379 | 39,270 | ||||
Unsecured notes bearing fixed rate interest at 8.75% due November 2014 | — | 250,000 | ||||
Unsecured notes bearing fixed rate interest at 10% due June 2015 | 66,568 | 66,568 | ||||
Unsecured notes bearing fixed rate interest at 6.375% due September 2015 | 250,000 | 250,000 | ||||
Unsecured notes bearing fixed rate interest at 10% due April 2016 | 193,429 | 193,429 | ||||
Unsecured notes bearing fixed rate interest at 9.375% due November 2017 | — | 250,000 | ||||
Borrowings under revolving credit agreement expiring August 2018 | 640,000 | — | ||||
Unsecured notes bearing fixed rate interest at 7.125% due September 2018 | 250,000 | 250,000 | ||||
Unsecured notes bearing fixed rate interest at 5.125% due October 2019 | 600,000 | 600,000 | ||||
Unsecured notes bearing fixed rate interest at 5.125% due July 2020 | 600,000 | 600,000 | ||||
Unsecured notes bearing fixed rate interest at 4.875% due September 2021 | 350,000 | — | ||||
Unsecured notes bearing fixed rate interest at 6.375% due October 2023 | 650,000 | 650,000 | ||||
Unsecured notes bearing fixed rate interest at 5.50% due September 2024 | 325,000 | — | ||||
Unsecured notes bearing fixed rate interest at 7.75% due June 2027 | 200,000 | 200,000 | ||||
Unsecured notes bearing fixed rate interest at 7.25% due September 2027 | 240,000 | 240,000 | ||||
Total principal long-term debt | 4,521,576 | 3,744,067 | ||||
Other (fair market value adjustments and discounts) | (25,694 | ) | (31,167 | ) | ||
Total long-term debt | 4,495,882 | 3,712,900 | ||||
Less current portion of long-term debt maturities of VIE loans | 7,854 | 5,890 | ||||
Long-term debt, net of current portion | $ | 4,488,028 | $ | 3,707,010 |
In thousands of dollars | |||
2015 (1) | $ | 7,854 | |
2016 | 232,883 | ||
2017 | 39,454 | ||
2018 | 1,276,385 | ||
2019 | 600,000 | ||
Thereafter | 2,365,000 | ||
Total | $ | 4,521,576 |
In thousands of dollars | |||||||||
2014 | 2013 | 2012 | |||||||
Service cost—benefits earned during the period | $ | 5,311 | $ | 7,538 | $ | 7,545 | |||
Interest cost on benefit obligation | 168,991 | 141,030 | 155,376 | ||||||
Expected return on plan assets | (234,862 | ) | (198,216 | ) | (189,863 | ) | |||
Amortization of prior service costs | 7,566 | 7,566 | 7,689 | ||||||
Amortization of actuarial loss | 45,731 | 63,212 | 53,429 | ||||||
Pension expense (benefit) for company-sponsored retirement plans | (7,263 | ) | 21,130 | 34,176 | |||||
Settlement charge | — | 3,077 | 7,946 | ||||||
Total pension cost (benefit) | $ | (7,263 | ) | $ | 24,207 | $ | 42,122 |
In thousands of dollars | ||||||
Dec. 28, 2014 | Dec. 29, 2013 | |||||
Change in benefit obligations | ||||||
Benefit obligations at beginning of year | $ | 3,672,249 | $ | 3,573,085 | ||
Service cost | 5,311 | 7,538 | ||||
Interest cost | 168,991 | 141,030 | ||||
Plan amendments | — | 177 | ||||
Plan participants’ contributions | 5 | 4 | ||||
Actuarial loss (gain) | 438,296 | (104,131 | ) | |||
Foreign currency translation | (57,779 | ) | 21,758 | |||
Gross benefits paid | (227,269 | ) | (230,979 | ) | ||
Acquisitions | — | 274,510 | ||||
Settlements | — | (10,743 | ) | |||
Benefit obligations at end of year | $ | 3,999,804 | $ | 3,672,249 | ||
Change in plan assets | ||||||
Fair value of plan assets at beginning of year | $ | 3,028,467 | $ | 2,552,316 | ||
Actual return on plan assets | 180,033 | 364,652 | ||||
Plan participants’ contributions | 5 | 4 | ||||
Employer contributions | 103,933 | 107,086 | ||||
Gross benefits paid | (227,269 | ) | (230,979 | ) | ||
Acquisitions | — | 229,774 | ||||
Settlements | — | (10,743 | ) | |||
Foreign currency translation | (42,655 | ) | 16,357 | |||
Fair value of plan assets at end of year | $ | 3,042,514 | $ | 3,028,467 | ||
Funded status at end of year | $ | (957,290 | ) | $ | (643,782 | ) |
Amounts recognized in Consolidated Balance Sheets | ||||||
Noncurrent assets | $ | — | $ | 3,684 | ||
Accrued benefit cost—current | $ | (15,575 | ) | $ | (15,271 | ) |
Accrued benefit cost—noncurrent | $ | (941,715 | ) | $ | (632,195 | ) |
In thousands of dollars | |||||||||
Fair Value of Plan Assets | Benefit Obligation | Funded Status | |||||||
GRP | $ | 1,973,928 | $ | 2,392,208 | $ | (418,280 | ) | ||
SERP (a) | — | 216,049 | (216,049 | ) | |||||
Newsquest | 716,519 | 970,674 | (254,155 | ) | |||||
Dealey | 259,320 | 314,755 | (55,435 | ) | |||||
All other | 92,747 | 106,118 | (13,371 | ) | |||||
Total | $ | 3,042,514 | $ | 3,999,804 | $ | (957,290 | ) | ||
(a) The SERP is an unfunded, unsecured liability |
In thousands of dollars | ||||||
Dec. 28, 2014 | Dec. 29, 2013 | |||||
Accumulated benefit obligation | $ | 3,979,493 | $ | 3,568,021 | ||
Fair value of plan assets | $ | 3,042,514 | $ | 2,938,480 |
In thousands of dollars | ||||||
Dec. 28, 2014 | Dec. 29, 2013 | |||||
Projected benefit obligation | $ | 3,999,804 | $ | 3,585,947 | ||
Fair value of plan assets | $ | 3,042,514 | $ | 2,938,480 |
In thousands of dollars | ||||||
Dec. 28, 2014 | Dec. 29, 2013 | |||||
Net actuarial losses | $ | (1,811,857 | ) | $ | (1,390,975 | ) |
Prior service cost | (46,383 | ) | (53,949 | ) | ||
Amounts in accumulated other comprehensive income (loss) | $ | (1,858,240 | ) | $ | (1,444,924 | ) |
In thousands of dollars | |||
2014 | |||
Current year actuarial gain (loss) | $ | (493,124 | ) |
Amortization of actuarial loss | 45,731 | ||
Amortization of prior service costs | 7,566 | ||
Foreign currency gain | 26,511 | ||
Total | $ | (413,316 | ) |
2014 | 2013 | 2012 | |
Discount rate | 4.75% | 4.08% | 4.83% |
Expected return on plan assets | 7.93% | 7.94% | 7.95% |
Rate of compensation increase | 2.97% | 2.97% | 2.96% |
Dec. 28, 2014 | Dec. 29, 2013 | |
Discount rate | 3.96% | 4.75% |
Rate of compensation increase | 2.96% | 2.97% |
Target Allocation | Allocation of Plan Assets | |||||
2015 | 2014 | 2013 | ||||
Equity securities | 65 | % | 65 | % | 64 | % |
Debt securities | 20 | 20 | 22 | |||
Other | 15 | 15 | 14 | |||
Total | 100 | % | 100 | % | 100 | % |
In thousands of dollars | |||
2015 | $ | 222,327 | |
2016 | $ | 225,846 | |
2017 | $ | 230,012 | |
2018 | $ | 229,063 | |
2019 | $ | 232,081 | |
2020-2024 | $ | 1,146,800 |
• | We play no part in the management of plan investments or any other aspect of plan administration. |
• | Assets contributed to the multi-employer 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. |
• | If we choose to stop participating in some of our multi-employer plans, we may be required to pay those plans an amount based on the unfunded status of the plan, referred to as withdrawal liability. |
Multi-employer Pension Plans | |||||||||||||||
EIN Number/ | Zone Status Dec. 31, | FIP/RP Status Pending/Implemented | Contributions(in thousands) | Surcharge Imposed | Expiration Dates of CBAs | ||||||||||
Pension Plan Name | Plan Number | 2014 | 2013 | 2014 | 2013 | 2012 | |||||||||
AFTRA Retirement Plan (a) | 13-6414972/001 | Green as of Nov. 30, 2013 | Green as of Nov. 30, 2012 | NA | $ | 973 | $ | 988 | $ | 965 | NA | 5/31/2015 9/11/2015 4/18/2017 | |||
CWA/ITU Negotiated Pension Plan | 13-6212879/001 | Red | Red | Implemented | 433 | 242 | 572 | No | 2/1/2015 11/8/2015 2/23/2016 | ||||||
GCIU—Employer Retirement Benefit Plan (a), (b) | 91-6024903/001 | Red | Red | Implemented | 71 | 216 | 380 | No | N/A | ||||||
The Newspaper Guild International Pension Plan (a) | 52-1082662/001 | Red | Red | Implemented | 244 | 279 | 415 | No | 2/23/2016 | ||||||
IAM National Pension Plan (a) | 51-6031295/002 | Green | Green | NA | 403 | 736 | 341 | NA | 4/30/2016 | ||||||
Teamsters Pension Trust Fund of Philadelphia and Vicinity (a) | 23-1511735/001 | Yellow | Yellow | Implemented | 1,298 | 1,355 | 876 | NA | 7/29/2015 2/23/2016 | ||||||
Central Pension Fund of the International Union of Operating Engineers and Participating Employers (a) | 36-6052390/001 | Green as of Jan. 31, 2014 | Green as of Jan. 31, 2013 | NA | 153 | 160 | 158 | NA | 4/30/2016 | ||||||
Central States Southeast and Southwest Areas Pension Fund (b) | 36-6044243/001 | Red | Red | Implemented | — | 40 | 260 | No | N/A | ||||||
Total | $ | 3,575 | $ | 4,016 | $ | 3,967 | |||||||||
(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) We have no ongoing participation in these plans. |
In thousands of dollars | |||||||||
2014 | 2013 | 2012 | |||||||
Service cost – benefits earned during the period | $ | 369 | $ | 529 | $ | 545 | |||
Interest cost on net benefit obligation | 4,711 | 5,656 | 7,744 | ||||||
Amortization of prior service credit | (11,648 | ) | (9,165 | ) | (19,190 | ) | |||
Amortization of actuarial loss | 758 | 1,169 | 1,943 | ||||||
Net periodic postretirement benefit credit | $ | (5,810 | ) | $ | (1,811 | ) | $ | (8,958 | ) |
In thousands of dollars | ||||||
Dec. 28, 2014 | Dec. 29, 2013 | |||||
Change in benefit obligations | ||||||
Net benefit obligations at beginning of year | $ | 146,809 | $ | 169,592 | ||
Service cost | 369 | 529 | ||||
Interest cost | 4,711 | 5,656 | ||||
Plan participants’ contributions | 5,133 | 9,629 | ||||
Plan amendments | (37,986 | ) | (496 | ) | ||
Actuarial loss (gain) | 6,954 | (16,476 | ) | |||
Gross benefits paid | (18,739 | ) | (28,022 | ) | ||
Federal subsidy on benefits paid | 683 | 4,169 | ||||
Acquisitions | — | 2,228 | ||||
Net benefit obligations at end of year | $ | 107,934 | $ | 146,809 | ||
Change in plan assets | ||||||
Fair value of plan assets at beginning of year | $ | — | $ | — | ||
Employer contributions | 13,606 | 18,393 | ||||
Plan participants’ contributions | 5,133 | 9,629 | ||||
Gross benefits paid | (18,739 | ) | (28,022 | ) | ||
Fair value of plan assets at end of year | $ | — | $ | — | ||
Benefit obligation at end of year | $ | (107,934 | ) | $ | (146,809 | ) |
Amounts recognized in Consolidated Balance Sheets | ||||||
Accrued benefit cost—current | $ | (10,286 | ) | $ | (17,731 | ) |
Accrued benefit cost—noncurrent | $ | (97,648 | ) | $ | (129,078 | ) |
In thousands of dollars | ||||||
Dec. 28, 2014 | Dec. 29, 2013 | |||||
Net actuarial losses | $ | (12,594 | ) | $ | (6,087 | ) |
Prior service credit | 42,542 | 16,204 | ||||
Amounts in accumulated other comprehensive income (loss) | $ | 29,948 | $ | 10,117 |
In thousands of dollars | |||
2014 | |||
Current year actuarial loss | $ | (7,265 | ) |
Change in prior service cost | 37,986 | ||
Amortization of actuarial loss | 758 | ||
Amortization of prior service credit | (11,648 | ) | |
Total | $ | 19,831 |
2014 | 2013 | 2012 | ||||
Discount rate | 4.50 | % | 3.80 | % | 4.75 | % |
Health care cost trend rate assumed for next year | 6.26 | % | 7.17 | % | 6.50 | % |
Ultimate trend rate | 5.00 | % | 5.00 | % | 5.00 | % |
Year that ultimate trend rate is reached | 2018 | 2017 | 2016 |
Dec. 28, 2014 | Dec. 29, 2013 | |||
Discount rate | 4.00 | % | 4.75 | % |
Health care cost trend rate assumed for next year | 6.26 | % | 7.17 | % |
Ultimate trend rate | 5.00 | % | 5.00 | % |
Year that ultimate trend rate is reached | 2018 | 2017 |
In thousands of dollars | Benefit Payments | ||
2015 | $ | 10,287 | |
2016 | $ | 9,109 | |
2017 | $ | 8,502 | |
2018 | $ | 8,578 | |
2019 | $ | 7,970 | |
2020-2023 | $ | 32,087 |
In thousands of dollars | |||||||||
2014 | Current | Deferred | Total | ||||||
Federal | $ | 217,500 | $ | (38,000 | ) | $ | 179,500 | ||
State and other | 5,800 | 37,200 | 43,000 | ||||||
Foreign | 1,100 | 2,000 | 3,100 | ||||||
Total | $ | 224,400 | $ | 1,200 | $ | 225,600 |
In thousands of dollars | |||||||||
2013 | Current | Deferred | Total | ||||||
Federal | $ | 95,000 | $ | 39,400 | $ | 134,400 | |||
State and other | (36,700 | ) | 8,000 | (28,700 | ) | ||||
Foreign | 1,000 | 6,500 | 7,500 | ||||||
Total | $ | 59,300 | $ | 53,900 | $ | 113,200 |
In thousands of dollars | |||||||||
2012 | Current | Deferred | Total | ||||||
Federal | $ | 82,200 | $ | 106,000 | $ | 188,200 | |||
State and other | (2,600 | ) | 17,100 | 14,500 | |||||
Foreign | (6,900 | ) | (400 | ) | (7,300 | ) | |||
Total | $ | 72,700 | $ | 122,700 | $ | 195,400 |
In thousands of dollars | |||||||||
2014 | 2013 | 2012 | |||||||
Domestic | $ | 1,207,669 | $ | 426,162 | $ | 538,988 | |||
Foreign | 80,102 | 75,718 | 80,692 | ||||||
Total | $ | 1,287,771 | $ | 501,880 | $ | 619,680 |
2014 | 2013 | 2012 | ||||
U.S. statutory tax rate | 35.0 | % | 35.0 | % | 35.0 | % |
Increase (decrease) in taxes resulting from: | ||||||
Non-deductible goodwill impairment | 1.2 | — | 5.2 | |||
State/other income taxes net of federal income tax | 3.6 | 2.7 | 2.2 | |||
Statutory rate differential and permanent differences in earnings in foreign jurisdictions | (2.0 | ) | (5.7 | ) | (5.6 | ) |
Audit resolutions | (0.1 | ) | (7.9 | ) | (4.6 | ) |
Loss on sale of subsidiary | (19.0 | ) | — | — | ||
Lapse of statutes of limitations net of federal income tax | (0.5 | ) | (2.6 | ) | (1.8 | ) |
Domestic manufacturing deduction | (1.7 | ) | (2.1 | ) | (1.7 | ) |
Other, net | 1.0 | 3.2 | 2.8 | |||
Effective tax rate | 17.5 | % | 22.6 | % | 31.5 | % |
In thousands of dollars | ||||||
Dec. 28, 2014 | Dec. 29, 2013 | |||||
Liabilities | ||||||
Accelerated depreciation | $ | 262,657 | $ | 302,650 | ||
Accelerated amortization of deductible intangibles | 589,014 | 678,744 | ||||
Partnership investments including impairments | 244,582 | — | ||||
Other | 18,961 | 24,882 | ||||
Total deferred tax liabilities | 1,115,214 | 1,006,276 | ||||
Assets | ||||||
Accrued compensation costs | 64,255 | 75,492 | ||||
Pension | 343,566 | 219,413 | ||||
Postretirement medical and life | 37,794 | 55,921 | ||||
Federal tax benefits of uncertain state tax positions | 12,135 | 12,474 | ||||
Partnership investments including impairments | — | 1,140 | ||||
Loss carryforwards | 361,133 | 74,018 | ||||
Other | 77,977 | 84,738 | ||||
Total deferred tax assets | 896,860 | 523,196 | ||||
Valuation allowance | 200,123 | 83,579 | ||||
Total net deferred tax assets (liabilities) | $ | (418,477 | ) | $ | (566,659 | ) |
Amounts recognized in Consolidated Balance Sheets | ||||||
Current deferred tax assets | $ | 158,648 | $ | 21,245 | ||
Assets held for sale | $ | 9,600 | $ | — | ||
Noncurrent deferred tax assets | $ | 63,647 | $ | — | ||
Noncurrent deferred tax liabilities | $ | (650,372 | ) | $ | (587,904 | ) |
In thousands of dollars | ||||||
Dec. 28, 2014 | Dec. 29, 2013 | |||||
Change in unrecognized tax benefits | ||||||
Balance at beginning of year | $ | 57,324 | $ | 86,180 | ||
Additions based on tax positions related to the current year | 12,426 | 29,470 | ||||
Additions for tax positions of prior years | 868 | 4,710 | ||||
Reductions for tax positions of prior years | (4,563 | ) | (33,109 | ) | ||
Settlements | (129 | ) | (1,246 | ) | ||
Reductions due to lapse of statutes of limitations | (7,040 | ) | (28,681 | ) | ||
Balance at end of year | $ | 58,886 | $ | 57,324 |
In thousands, except per share amounts | |||||||||
2014 | 2013 | 2012 | |||||||
Net income attributable to Gannett Co., Inc. | $ | 1,062,171 | $ | 388,680 | $ | 424,280 | |||
Weighted average number of common shares outstanding (basic) | 226,292 | 228,541 | 232,327 | ||||||
Effect of dilutive securities | |||||||||
Restricted stock | 2,624 | 2,839 | 2,552 | ||||||
Performance shares | 1,999 | 1,649 | 944 | ||||||
Stock options | 992 | 1,160 | 867 | ||||||
Weighted average number of common shares outstanding (diluted) | 231,907 | 234,189 | 236,690 | ||||||
Earnings per share (basic) | $ | 4.69 | $ | 1.70 | $ | 1.83 | |||
Earnings per share (diluted) | $ | 4.58 | $ | 1.66 | $ | 1.79 |
Performance Shares Granted During | 2014 | 2013 | 2012 |
Expected term | 3 yrs. | 3 yrs. | 3 yrs. |
Expected volatility | 39.32% | 40.80% | 69.47% |
Risk-free interest rate | 0.78% | 0.36% | 0.41% |
Expected dividend yield | 2.70% | 4.44% | 2.39% |
Stock Options Granted During(a) | 2013 | 2012 | |
Average expected term | 4.5 yrs. | 4.5 yrs. | |
Expected volatility | 61.94% | 65.74 - 66.95% | |
Weighted average volatility | 61.94% | 66.56% | |
Risk-free interest rates | 0.75% | 0.84% | |
Expected dividend yield | 3.00% | 5.00% | |
Weighted average expected dividend | 3.00% | 5.00% | |
(a) No stock options were granted after 2013 |
In thousands, except per share amounts | |||||||||
2014 | 2013 | 2012 | |||||||
Restricted stock and RSUs | $ | 17,754 | $ | 18,105 | $ | 14,362 | |||
Performance shares | 14,850 | 12,331 | 7,991 | ||||||
Stock options and other | 1,278 | 3,001 | 4,255 | ||||||
Total stock-based compensation | 33,882 | 33,437 | 26,608 | ||||||
Income tax benefit | 12,875 | 12,706 | 10,111 | ||||||
Stock-based compensation, net of tax | $ | 21,007 | $ | 20,731 | $ | 16,497 | |||
Per diluted share impact | $ | 0.09 | $ | 0.09 | $ | 0.07 |
2014 Restricted Stock and RSU Activity | Shares | Weighted average fair value | |||
Outstanding and unvested at beginning of year | 4,193,985 | $ | 13.92 | ||
Granted | 1,048,516 | $ | 27.26 | ||
Settled | (1,263,702 | ) | $ | 15.92 | |
Canceled | (401,201 | ) | $ | 16.13 | |
Outstanding and unvested at end of year | 3,577,598 | $ | 16.97 |
2013 Restricted Stock and RSU Activity | Shares | Weighted average fair value | |||
Outstanding and unvested at beginning of year | 4,069,509 | $ | 12.98 | ||
Granted | 1,588,628 | $ | 15.80 | ||
Settled | (1,035,256 | ) | $ | 13.95 | |
Canceled | (428,896 | ) | $ | 13.40 | |
Outstanding and unvested at end of year | 4,193,985 | $ | 13.92 |
2012 Restricted Stock and RSU Activity | Shares | Weighted average fair value | |||
Outstanding and unvested at beginning of year | 3,731,033 | $ | 10.73 | ||
Granted | 1,937,512 | $ | 12.33 | ||
Settled | (997,584 | ) | $ | 3.29 | |
Canceled | (601,452 | ) | $ | 11.95 | |
Outstanding and unvested at end of year | 4,069,509 | $ | 12.98 |
2014 Performance Shares Activity | Target number of shares | Weighted average fair value | |||
Outstanding and unvested at beginning of year | 1,760,488 | $ | 16.92 | ||
Granted | 436,340 | $ | 37.31 | ||
Canceled | (96,713 | ) | $ | 21.41 | |
Outstanding and unvested at end of year | 2,100,115 | $ | 20.95 |
2013 Performance Shares Activity | Target number of shares | Weighted average fair value | |||
Outstanding and unvested at beginning of year | 982,452 | $ | 14.23 | ||
Granted | 813,783 | $ | 20.12 | ||
Canceled | (35,747 | ) | $ | 15.86 | |
Outstanding and unvested at end of year | 1,760,488 | $ | 16.92 |
2012 Performance Shares Activity | Target number of shares | Weighted average fair value | |||
Outstanding and unvested at beginning of year | — | $ | — | ||
Granted | 1,109,873 | $ | 14.21 | ||
Canceled | (127,421 | ) | $ | 14.12 | |
Outstanding and unvested at end of year | 982,452 | $ | 14.23 |
2014 Stock Option Activity | Shares | Weighted average exercise price | Weighted average remaining contractual term (in years) | Aggregate intrinsic value | |||||
Outstanding at beginning of year | 5,575,401 | $ | 29.76 | 3.2 | $ | 46,988,804 | |||
Exercised | (968,891 | ) | $ | 14.47 | |||||
Canceled/expired | (1,599,852 | ) | $ | 53.89 | |||||
Outstanding at end of year | 3,006,658 | $ | 21.84 | 2.8 | $ | 37,497,113 | |||
Options exercisable at year end | 2,818,658 | $ | 22.23 | 2.7 | $ | 34,543,513 |
2013 Stock Option Activity | Shares | Weighted average exercise price | Weighted average remaining contractual term (in years) | Aggregate intrinsic value | ||||||
Outstanding at beginning of year | 11,344,018 | $ | 43.50 | 3.2 | $ | 16,902,892 | ||||
Granted | 22,558 | $ | 20.48 | |||||||
Exercised | (1,598,902 | ) | $ | 13.44 | ||||||
Canceled/expired | (4,192,273 | ) | $ | 73.11 | ||||||
Outstanding at end of year | 5,575,401 | $ | 29.76 | 3.2 | $ | 46,988,804 | ||||
Options exercisable at year end | 4,574,619 | $ | 32.85 | 2.8 | $ | 33,348,296 | ||||
Weighted average grant date fair value of options granted during the year | $ | 8.20 |
2012 Stock Option Activity | Shares | Weighted average exercise price | Weighted average remaining contractual term (in years) | Aggregate intrinsic value | ||||||
Outstanding at beginning of year | 20,340,291 | $ | 47.66 | 3.5 | $ | 17,184,761 | ||||
Granted | 109,699 | $ | 14.33 | |||||||
Exercised | (2,716,637 | ) | $ | 9.38 | ||||||
Canceled/expired | (6,389,335 | ) | $ | 70.76 | ||||||
Outstanding at end of year | 11,344,018 | $ | 43.50 | 3.2 | $ | 16,902,892 | ||||
Options exercisable at year end | 8,942,897 | $ | 51.35 | 2.6 | $ | 8,845,944 | ||||
Weighted average grant date fair value of options granted during the year | $ | 5.43 |
In thousands of dollars | |||||||||
2014 | Retirement Plans | Foreign Currency Translation | Total | ||||||
Balance at beginning of year | $ | (921,232 | ) | $ | 427,177 | $ | (494,055 | ) | |
Other comprehensive income before reclassifications | (276,219 | ) | (36,064 | ) | (312,283 | ) | |||
Amounts reclassified from accumulated other comprehensive income | 27,569 | — | 27,569 | ||||||
Balance at end of year | $ | (1,169,882 | ) | $ | 391,113 | $ | (778,769 | ) |
In thousands of dollars | |||||||||
2013 | Retirement Plans | Foreign Currency Translation | Total | ||||||
Balance at beginning of year | $ | (1,119,263 | ) | $ | 418,122 | $ | (701,141 | ) | |
Other comprehensive income (loss) | 156,974 | 9,055 | 166,029 | ||||||
Amounts reclassified from accumulated other comprehensive income | 41,057 | — | 41,057 | ||||||
Balance at end of year | $ | (921,232 | ) | $ | 427,177 | $ | (494,055 | ) |
In thousands of dollars | |||||||||
2012 | Retirement Plans | Foreign Currency Translation | Total | ||||||
Balance at beginning of year | $ | (995,854 | ) | $ | 400,015 | $ | (595,839 | ) | |
Other comprehensive income (loss) | (123,409 | ) | 18,107 | (105,302 | ) | ||||
Balance at end of year | $ | (1,119,263 | ) | $ | 418,122 | $ | (701,141 | ) |
In thousands of dollars | ||||||
2014 | 2013 | |||||
Amortization of prior service credit | $ | (4,082 | ) | $ | (1,599 | ) |
Amortization of actuarial loss | 46,489 | 64,381 | ||||
Settlement charge | — | 3,077 | ||||
Total reclassifications, before tax | 42,407 | 65,859 | ||||
Income tax effect | (14,838 | ) | (24,802 | ) | ||
Total reclassifications, net of tax | $ | 27,569 | $ | 41,057 |
In thousands of dollars | |||
2015 | $ | 64,309 | |
2016 | 55,292 | ||
2017 | 49,209 | ||
2018 | 36,550 | ||
2019 | 30,057 | ||
Later years | 96,036 | ||
Total | $ | 331,453 |
Company Owned Assets | ||||||||||||
In thousands of dollars | ||||||||||||
Fair value measurement as of Dec. 28, 2014 | ||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||
Assets: | ||||||||||||
Employee compensation related investments | $ | 41,017 | $ | — | $ | — | $ | 41,017 | ||||
Sundry investments | 36,641 | — | — | 36,641 | ||||||||
Total Assets | $ | 77,658 | $ | — | $ | — | $ | 77,658 | ||||
Liabilities: | ||||||||||||
Contingent consideration payable | $ | — | $ | — | $ | 9,912 | $ | 9,912 | ||||
Total Liabilities | $ | — | $ | — | $ | 9,912 | $ | 9,912 |
In thousands of dollars | ||||||||||||
Fair value measurement as of Dec. 29, 2013 | ||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||
Assets: | ||||||||||||
Employee compensation related investments | $ | 28,117 | $ | — | $ | — | $ | 28,117 | ||||
Sundry investments | 34,227 | — | — | 34,227 | ||||||||
Total Assets | $ | 62,344 | $ | — | $ | — | $ | 62,344 | ||||
Liabilities: | ||||||||||||
Contingent consideration payable | $ | — | $ | — | $ | 32,267 | $ | 32,267 | ||||
Total Liabilities | $ | — | $ | — | $ | 32,267 | $ | 32,267 |
Pension Plan Assets/Liabilities | ||||||||||||
In thousands of dollars | ||||||||||||
Fair value measurement as of Dec. 28, 2014(a) | ||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||
Assets: | ||||||||||||
Fixed income: | ||||||||||||
U.S. government-related securities | $ | — | $ | 4,005 | $ | — | $ | 4,005 | ||||
Mortgage backed securities | — | 3,995 | 95 | 4,090 | ||||||||
Other government bonds | — | 4,562 | — | 4,562 | ||||||||
Corporate bonds | — | 24,628 | 382 | 25,010 | ||||||||
Corporate stock | 924,294 | — | — | 924,294 | ||||||||
Real estate | — | — | 109,102 | 109,102 | ||||||||
Interest in common/collective trusts: | ||||||||||||
Equities | — | 890,201 | — | 890,201 | ||||||||
Fixed income | 6,592 | 310,128 | — | 316,720 | ||||||||
Interest in reg. invest. companies | 152,359 | 44,406 | — | 196,765 | ||||||||
Interest in 103-12 investments | — | 24,359 | — | 24,359 | ||||||||
Partnership/joint venture interests | — | 36,517 | 145,764 | 182,281 | ||||||||
Hedge funds | — | 20,166 | 325,673 | 345,839 | ||||||||
Derivative contracts | 8 | 3,003 | 124 | 3,135 | ||||||||
Total | $ | 1,083,253 | $ | 1,365,970 | $ | 581,140 | $ | 3,030,363 | ||||
Liabilities: | ||||||||||||
Derivative liabilities | $ | (13 | ) | $ | (2,529 | ) | $ | (2,008 | ) | $ | (4,550 | ) |
Total | $ | (13 | ) | $ | (2,529 | ) | $ | (2,008 | ) | $ | (4,550 | ) |
Cash and other | 14,039 | 2,662 | — | 16,701 | ||||||||
Total net fair value of plan assets | $ | 1,097,279 | $ | 1,366,103 | $ | 579,132 | $ | 3,042,514 |
(a) | We use a Dec. 31 measurement date for our retirement plans. |
In thousands of dollars | ||||||||||||
Fair value measurement as of Dec. 29, 2013(a) | ||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||
Assets: | ||||||||||||
Fixed income: | ||||||||||||
U.S. government-related securities | $ | — | $ | 3,313 | $ | — | $ | 3,313 | ||||
Mortgage backed securities | — | 4,210 | 397 | 4,607 | ||||||||
Other government bonds | — | 4,947 | — | 4,947 | ||||||||
Corporate bonds | — | 29,599 | 856 | 30,455 | ||||||||
Corporate stock | 892,883 | — | — | 892,883 | ||||||||
Real estate | — | — | 98,909 | 98,909 | ||||||||
Interest in common/collective trusts: | ||||||||||||
Equities | — | 908,673 | — | 908,673 | ||||||||
Fixed income | — | 213,698 | — | 213,698 | ||||||||
Interest in reg. invest. companies | 281,029 | 42,610 | — | 323,639 | ||||||||
Interest in 103-12 investments | — | 28,691 | — | 28,691 | ||||||||
Partnership/joint venture interests | — | 36,402 | 148,550 | 184,952 | ||||||||
Hedge funds | — | 22,685 | 249,991 | 272,676 | ||||||||
Derivative contracts | 22 | 10,956 | 163 | 11,141 | ||||||||
Total | $ | 1,173,934 | $ | 1,305,784 | $ | 498,866 | $ | 2,978,584 | ||||
Liabilities: | ||||||||||||
Derivative liabilities | $ | (8 | ) | $ | (9,486 | ) | $ | (2,008 | ) | $ | (11,502 | ) |
Total | $ | (8 | ) | $ | (9,486 | ) | $ | (2,008 | ) | $ | (11,502 | ) |
Cash and other | 60,271 | 1,114 | — | 61,385 | ||||||||
Total net fair value of plan assets | $ | 1,234,197 | $ | 1,297,412 | $ | 496,858 | $ | 3,028,467 |
(a) | We use a Dec. 31 measurement date for our retirement plans. |
Pension Plan Assets/Liabilities | ||||||||||||||||||
In thousands of dollars | ||||||||||||||||||
For the year ended Dec. 28, 2014 | ||||||||||||||||||
Actual Return on Plan Assets | ||||||||||||||||||
Balance at beginning of year | Relating to assets still held at report date | Relating to assets sold during the period | Purchases, sales, and settlements | Transfers in and/or out of Level 3(1) | Balance at end of year | |||||||||||||
Assets: | ||||||||||||||||||
Fixed income: | ||||||||||||||||||
Mortgage-backed securities | $ | 397 | $ | — | $ | 2 | $ | (304 | ) | $ | — | $ | 95 | |||||
Corporate bonds | 856 | 116 | (125 | ) | (465 | ) | — | 382 | ||||||||||
Real estate | 98,909 | 279 | — | 9,914 | — | 109,102 | ||||||||||||
Partnership/joint venture interests | 148,550 | 586 | 21,785 | (25,157 | ) | — | 145,764 | |||||||||||
Hedge funds | 249,991 | 10,469 | 899 | 64,314 | — | 325,673 | ||||||||||||
Derivative contracts | 163 | — | 17 | (56 | ) | — | 124 | |||||||||||
Total | $ | 498,866 | $ | 11,450 | $ | 22,578 | $ | 48,246 | $ | — | $ | 581,140 | ||||||
Liabilities: | ||||||||||||||||||
Derivative liabilities | $ | (2,008 | ) | $ | — | $ | — | $ | — | $ | — | $ | (2,008 | ) |
(1) | Our policy is to recognize transfers in and transfers out as of the beginning of the reporting period. |
Pension Plan Assets/Liabilities (continued) | ||||||||||||||||||
In thousands of dollars | ||||||||||||||||||
For the year ended Dec. 29, 2013 | ||||||||||||||||||
Actual Return on Plan Assets | ||||||||||||||||||
Balance at beginning of year | Relating to assets still held at report date | Relating to assets sold during the period | Purchases, sales, and settlements | Transfers in and/or out of Level 3(1) | Balance at end of year | |||||||||||||
Assets: | ||||||||||||||||||
Fixed income: | ||||||||||||||||||
Mortgage backed securities | $ | — | $ | — | $ | (3 | ) | $ | 400 | $ | — | $ | 397 | |||||
Corporate bonds | 797 | 199 | (4 | ) | (136 | ) | — | 856 | ||||||||||
Real estate | 97,385 | 1,865 | — | (341 | ) | — | 98,909 | |||||||||||
Partnership/joint venture interests | 130,995 | 11,972 | 13,327 | (9,576 | ) | 1,832 | 148,550 | |||||||||||
Hedge funds | 158,924 | 17,613 | 803 | 74,483 | (1,832 | ) | 249,991 | |||||||||||
Derivative contracts | 500 | (376 | ) | — | 39 | — | 163 | |||||||||||
Total | $ | 388,601 | $ | 31,273 | $ | 14,123 | $ | 64,869 | $ | — | $ | 498,866 | ||||||
Liabilities: | ||||||||||||||||||
Derivative liabilities | $ | (2,008 | ) | $ | — | $ | — | $ | — | $ | — | $ | (2,008 | ) |
(1) | Our policy is to recognize transfers in and transfers out as of the beginning of the reporting period. |
Non-Financial Assets | ||||||||||||
In thousands of dollars | ||||||||||||
Fair value measurement as of Dec. 28, 2014 | ||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||
Asset held for sale - Quarter 4 | $ | — | $ | — | $ | 69,998 | $ | 69,998 | ||||
Goodwill - Quarter 4 | $ | — | $ | — | $ | 8,250 | $ | 8,250 |
Non-Financial Assets | ||||||||||||
In thousands of dollars | ||||||||||||
Fair value measurement as of Dec. 29, 2013 | ||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||
Asset held for sale - Quarter 4 | $ | — | $ | — | $ | 395,851 | $ | 395,851 | ||||
Goodwill - Quarter 4 | $ | — | $ | — | $ | 21,790 | $ | 21,790 |
In thousands of dollars Business segment financial information | |||||||||
2014 | 2013 | 2012 | |||||||
Operating revenues | |||||||||
Broadcasting | $ | 1,692,304 | $ | 835,113 | $ | 906,104 | |||
Publishing | 3,421,729 | 3,577,804 | 3,728,144 | ||||||
Digital | 919,270 | 748,445 | 718,949 | ||||||
Intersegment eliminations (3) | (25,129 | ) | — | — | |||||
Total | $ | 6,008,174 | $ | 5,161,362 | $ | 5,353,197 | |||
Operating income | |||||||||
Broadcasting (2) | $ | 745,383 | $ | 361,915 | $ | 443,808 | |||
Publishing (2) | 228,307 | 313,697 | 368,644 | ||||||
Digital (2) | 155,482 | 128,264 | 41,700 | ||||||
Corporate (1) (2) | (71,141 | ) | (64,633 | ) | (64,397 | ) | |||
Total | $ | 1,058,031 | $ | 739,243 | $ | 789,755 | |||
Depreciation, amortization and facility consolidation and asset impairment charges | |||||||||
Broadcasting (2) | $ | 94,125 | $ | 29,625 | $ | 28,007 | |||
Publishing (2) | 167,134 | 153,380 | 147,750 | ||||||
Digital (2) | 81,974 | 46,415 | 123,990 | ||||||
Corporate (1) (2) | 18,855 | 18,392 | 16,421 | ||||||
Total | $ | 362,088 | $ | 247,812 | $ | 316,168 | |||
Equity income (losses) in unconsolidated investees, net | |||||||||
Broadcasting | $ | (1,667 | ) | $ | (94 | ) | $ | (597 | ) |
Publishing (4) | 10,646 | 18,724 | 2,855 | ||||||
Digital (4) | 158,340 | 25,194 | 20,129 | ||||||
Total | $ | 167,319 | $ | 43,824 | $ | 22,387 | |||
Identifiable assets | |||||||||
Broadcasting | $ | 4,773,481 | $ | 5,077,114 | $ | 2,001,979 | |||
Publishing (4) | 2,154,368 | 2,573,384 | 2,830,083 | ||||||
Digital (4) | 3,602,494 | 1,041,622 | 1,030,653 | ||||||
Corporate (1) | 675,112 | 548,586 | 517,171 | ||||||
Total | $ | 11,205,455 | $ | 9,240,706 | $ | 6,379,886 | |||
Capital expenditures | |||||||||
Broadcasting | $ | 42,147 | $ | 18,394 | $ | 17,473 | |||
Publishing | 81,776 | 62,480 | 56,597 | ||||||
Digital | 36,395 | 27,800 | 17,220 | ||||||
Corporate (1) | 1,556 | 1,733 | 584 | ||||||
Total | $ | 161,874 | $ | 110,407 | $ | 91,874 |
(1) | Corporate amounts represent those not directly related to our three business segments. |
(2) | Results for 2014 include pre-tax facility consolidation and asset impairment charges of $14 million for Broadcasting, $59 million for Publishing, and $24 million for Digital. Results for 2013 include pre-tax facility consolidation and asset impairment charges of $1 million for Broadcasting, $46 million for Publishing, and $12 million for Digital. Results for 2012 include pre-tax facility consolidation and asset impairment charges of $32 million for Publishing and $90 million for Digital. Refer to Notes 3 and 4 of the Consolidated Financial Statements for more information. |
(3) | Includes intersegment eliminations of $5 million for Publishing and $20 million for Digital. |
(4) | Publishing and Digital amounts for 2013 and 2012 have been reclassified to reflect the acquisition of Cars.com. |
In thousands of dollars, except per share amounts | 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||
Operating revenue | $ | 6,008,174 | $ | 5,161,362 | $ | 5,353,197 | $ | 5,239,989 | $ | 5,438,678 | |||||
Operating expenses | |||||||||||||||
Costs and expenses | 4,588,055 | 4,174,307 | 4,247,274 | 4,184,582 | 4,168,098 | ||||||||||
Depreciation | 185,868 | 153,203 | 160,746 | 165,739 | 182,514 | ||||||||||
Amortization of intangible assets | 79,856 | 36,369 | 33,293 | 31,634 | 31,362 | ||||||||||
Facility consolidation and asset impairment charges | 96,364 | 58,240 | 122,129 | 27,243 | 57,009 | ||||||||||
Total | 4,950,143 | 4,422,119 | 4,563,442 | 4,409,198 | 4,438,983 | ||||||||||
Operating income | 1,058,031 | 739,243 | 789,755 | 830,791 | 999,695 | ||||||||||
Non-operating (expense) income | |||||||||||||||
Equity income in unconsolidated investees, net | 167,319 | 43,824 | 22,387 | 8,197 | 19,140 | ||||||||||
Interest expense | (273,244 | ) | (176,064 | ) | (150,469 | ) | (173,140 | ) | (172,986 | ) | |||||
Other non-operating items | 403,954 | (47,890 | ) | 8,734 | (12,921 | ) | 111 | ||||||||
Total | 298,029 | (180,130 | ) | (119,348 | ) | (177,864 | ) | (153,735 | ) | ||||||
Income before income taxes | 1,356,060 | 559,113 | 670,407 | 652,927 | 845,960 | ||||||||||
Provision for income taxes | 225,600 | 113,200 | 195,400 | 152,800 | 244,013 | ||||||||||
Income from continuing operations | 1,130,460 | 445,913 | 475,007 | 500,127 | 601,947 | ||||||||||
Income from continuing operations attributable to noncontrolling interests | (68,289 | ) | (57,233 | ) | (50,727 | ) | (41,379 | ) | (34,619 | ) | |||||
Income from continuing operations attributable to Gannett Co., Inc. | $ | 1,062,171 | $ | 388,680 | $ | 424,280 | $ | 458,748 | $ | 567,328 | |||||
Income from continuing operations per share: | |||||||||||||||
basic | $ | 4.69 | $ | 1.70 | $ | 1.83 | $ | 1.92 | $ | 2.38 | |||||
diluted | $ | 4.58 | $ | 1.66 | $ | 1.79 | $ | 1.89 | $ | 2.35 | |||||
Other selected financial data | |||||||||||||||
Dividends declared per share | $ | 0.80 | $ | 0.80 | $ | 0.80 | $ | 0.24 | $ | 0.16 | |||||
Non-GAAP income from continuing operations per diluted share (1) | $ | 2.73 | $ | 2.02 | $ | 2.33 | $ | 2.13 | $ | 2.44 | |||||
Weighted average number of common shares outstanding in thousands: | |||||||||||||||
basic | 226,292 | 228,541 | 232,327 | 239,228 | 238,230 | ||||||||||
diluted | 231,907 | 234,189 | 236,690 | 242,768 | 241,605 | ||||||||||
Financial position and cash flow | |||||||||||||||
Long-term debt, excluding current maturities | $ | 4,488,028 | $ | 3,707,010 | $ | 1,432,100 | $ | 1,760,363 | $ | 2,352,242 | |||||
Redeemable noncontrolling interest | $ | 20,470 | $ | 14,618 | $ | 10,654 | $ | — | $ | 84,176 | |||||
Shareholders’ equity | $ | 3,254,914 | $ | 2,693,098 | $ | 2,350,614 | $ | 2,327,891 | $ | 2,163,754 | |||||
Total assets | $ | 11,205,455 | $ | 9,240,706 | $ | 6,379,886 | $ | 6,616,450 | $ | 6,816,844 | |||||
Free cash flow (2) | $ | 844,628 | $ | 470,491 | $ | 697,994 | $ | 775,261 | $ | 816,308 | |||||
Return on equity (3) | 35.7% | 15.4 | % | 18.1 | % | 20.4 | % | 30.1 | % | ||||||
Percentage increase (decrease) | |||||||||||||||
As reported, earnings from continuing operations per share: | |||||||||||||||
basic | 175.9 | % | (7.1 | %) | (4.7 | %) | (19.3 | %) | 58.7 | % | |||||
diluted | 175.9 | % | (7.3 | %) | (5.3 | %) | (19.6 | %) | 57.7 | % | |||||
Dividends declared per share | — | % | — | % | 233.3 | % | 50.0 | % | — | % | |||||
Credit ratios | |||||||||||||||
Leverage ratio (4) | 2.96x | 3.24x | 1.41x | 1.67x | 1.97x | ||||||||||
Times interest expense earned (5) | 4.5x | 4.9x | 6.4x | 5.5x | 6.2x |
(1) | See page 34 for a reconciliation of income from continuing operations per share presented in accordance with GAAP. |
(2) | See page 79 for a reconciliation of free cash flow to net cash flow from operating activities, which we believe is the most directly comparable measure calculated and presented in accordance with GAAP. |
(3) | Calculated using income from continuing operations attributable to Gannett Co., Inc. plus earnings from discontinued operations (but excluding the gain in 2010 on the disposal of publishing businesses). |
(4) | The leverage ratio is calculated in accordance with our revolving credit agreement and term loan agreement. Currently, we are required to maintain a leverage ratio of less than 4.0x. These agreements are described more fully on page 41 in Management’s Discussion and Analysis of Financial Condition and Results of Operations. More information regarding the computation can be found in Exhibit 10.3 to the Form 10-Q for the quarterly period ended Sept. 29, 2013, filed on Nov. 6, 2013. |
(5) | Calculated using operating income adjusted to remove the effect of certain special items. These special items are described more fully beginning on page 34 in Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Year | Name | Location | Publication times or business |
2010 | CareerSite.biz Limited | U.K. | Online recruitment niche sites focusing on nursing and rail workers. |
2011 | Reviewed.com | Cambridge, MA | A technology product review web site |
JobsCentral | Singapore | Job search, employment and career web site | |
Nutrition Dimension | Falls Church, VA | A continuing nutrition education, certification and review program | |
US PRESSWIRE | Atlanta, GA | A digital sports photography business | |
JobScout24 | Germany | Job search, employment and career web site | |
MMA Junkie | St. Petersburg, FL | Independent sports information web site | |
2012 | Fantasy Sports Ventures/Big Lead Sports | New York, NY | Independent digital sports property |
Ceviu | Brazil | Information technology job board | |
Top Language Jobs | Europe | Global online jobsite for multi-language jobs and candidates | |
Quickish | Bethesda, MD | Aggregator that offers a summary and a link for sports stories | |
BLiNQ Media, LLC | New York City, NY | Social engagement advertising solutions for agencies and brands | |
Mobestream Media | Dallas, TX | Developer of the Key Ring consumer rewards mobile platform | |
Economic Modeling Specialist Intl. | Moscow, ID | Economic software firm specializing in employment data/analysis | |
Rovion | Boston, MA | Self-service technology platform for rich media | |
2013 | 10Best, Inc. | Greenville, SC | Travel advice services for travelers in the U.S. and internationally |
Vietnam Online Network | Vietnam | Recruitment services and human resource solutions for employers | |
Oil and Gas Job Search | Manchester, England | Online recruitment catering to the oil and gas industry | |
Tripology | McLean, VA | Offers an interactive travel referral service | |
Belo Corp. | Arizona, Idaho, Kentucky, Louisiana, Missouri, North Carolina, Oregon, Texas, Virginia, Washington | Owner and operator of 20 television stations in 15 markets across the U.S. | |
2014 | Broadbean | London, United Kingdom | Global recruitment technology company |
London Broadcasting Company | Abilene, Beaumont, Bryan, Corpus Christi, Longview, Port Arthur, San Angelo, Sweetwater, Temple, Tyler, Waco all in Texas | Six Texas based television stations | |
Classified Ventures LLC (d/b/a Cars.com) | Chicago, IL | Independent search site for car shoppers | |
SocialReferral B.V. | Netherlands | Software to power employee referral programs utilizing social media |
Year | Name | Location | Publication times or business |
2010 | The Honolulu Advertiser | Honolulu, HI | Daily newspaper |
Michigan Directory Company | Pigeon, MI | Directory publishing operation | |
2013 | Captivate Network, Inc. | Chelmsford, MA | News and entertainment network |
2014 | KMOV-TV | St. Louis, MO | Broadcast station |
KTVK/KASW-TV | Phoenix, AZ | Broadcast stations | |
Schedule Star | Wheeling , WV | High School athletic management and scheduling software |
In thousands of dollars | 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||
Net cash flow from operating activities | $ | 821,199 | $ | 511,488 | $ | 756,740 | $ | 814,136 | $ | 772,884 | |||||
Purchase of property, plant and equipment | (150,354 | ) | (110,407 | ) | (91,874 | ) | (72,451 | ) | (69,070 | ) | |||||
Voluntary pension employer contributions | — | 15,507 | — | — | 130,000 | ||||||||||
Tax benefit for voluntary pension employer contributions | — | (6,125 | ) | — | — | (52,000 | ) | ||||||||
Payments for investments | (7,026 | ) | (3,380 | ) | (2,501 | ) | (19,406 | ) | (10,984 | ) | |||||
Proceeds from investments | 180,809 | 63,408 | 35,629 | 52,982 | 45,478 | ||||||||||
Free cash flow | $ | 844,628 | $ | 470,491 | $ | 697,994 | $ | 775,261 | $ | 816,308 |
QUARTERLY STATEMENTS OF INCOME (Unaudited) | |||||||||||||||
In thousands of dollars, except per share amounts | |||||||||||||||
Fiscal year ended Dec. 28, 2014 | 1st Quarter(1) | 2nd Quarter(2) | 3rd Quarter(3) | 4th Quarter(4) | Total | ||||||||||
Operating revenues | $ | 1,404,066 | $ | 1,460,004 | $ | 1,443,137 | $ | 1,700,967 | $ | 6,008,174 | |||||
Operating expenses | |||||||||||||||
Cost of sales and operating expenses, exclusive of depreciation | 767,532 | 775,627 | 757,301 | 748,119 | 3,048,579 | ||||||||||
Selling, general and administrative expenses, exclusive of depreciation | 355,213 | 353,779 | 347,123 | 483,361 | 1,539,476 | ||||||||||
Depreciation | 44,764 | 44,850 | 46,681 | 49,573 | 185,868 | ||||||||||
Amortization of intangible assets | 17,743 | 14,471 | 14,894 | 32,748 | 79,856 | ||||||||||
Facility consolidation and asset impairment charges | 14,820 | 28,775 | 6,621 | 46,148 | 96,364 | ||||||||||
Total | 1,200,072 | 1,217,502 | 1,172,620 | 1,359,949 | 4,950,143 | ||||||||||
Operating income | 203,994 | 242,502 | 270,517 | 341,018 | 1,058,031 | ||||||||||
Non-operating (expense) income | |||||||||||||||
Equity income in unconsolidated investees, net | 8,491 | 156,540 | 1,756 | 532 | 167,319 | ||||||||||
Interest expense | (69,648 | ) | (64,148 | ) | (65,931 | ) | (73,517 | ) | (273,244 | ) | |||||
Other non-operating items | (20,748 | ) | (2,982 | ) | (17,450 | ) | 445,134 | 403,954 | |||||||
Total | (81,905 | ) | 89,410 | (81,625 | ) | 372,149 | 298,029 | ||||||||
Income before income taxes | 122,089 | 331,912 | 188,892 | 713,167 | 1,356,060 | ||||||||||
Provision for income taxes | 52,500 | 106,000 | 48,900 | 18,200 | 225,600 | ||||||||||
Net income | 69,589 | 225,912 | 139,992 | 694,967 | 1,130,460 | ||||||||||
Net income attributable to noncontrolling interests | (10,430 | ) | (17,445 | ) | (21,476 | ) | (18,938 | ) | (68,289 | ) | |||||
Net income attributable to Gannett Co., Inc. | $ | 59,159 | $ | 208,467 | $ | 118,516 | $ | 676,029 | $ | 1,062,171 | |||||
Per share computations | |||||||||||||||
Net income per share—basic | $ | 0.26 | $ | 0.92 | $ | 0.52 | $ | 2.99 | $ | 4.69 | |||||
Net income per share—diluted | $ | 0.25 | $ | 0.90 | $ | 0.51 | $ | 2.92 | $ | 4.58 | |||||
Dividends per share | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.80 |
(1) | Results for the first quarter of 2014 include special charges affecting operating income. Workforce restructuring and transformation costs totaled $22.8 million ($13.4 million after-tax or $.06 per share). Non-operating items include $20.4 million ($12.1 million after-tax or $.05 per share) primarily related to the redemption of our 2017 notes. Offsetting these was a $23.8 million special tax charge ($.10 per share) related to the sale of the KMOV-TV station in St. Louis, MO. Refer to the discussion beginning on page 34 and Notes 3 and 4 to the Consolidated Financial Statements for more information on special items. |
(2) | Results for the second quarter of 2014 include special charges affecting operating income. Workforce restructuring charges, transformation costs and non-cash asset impairments totaled $51.7 million ($37.4 million after-tax or $.02 per share). Non-operating items include $143.5 million ($91.2 million after-tax or $.39 per share) primarily related to the pre-tax gain from the sale of Apartments.com. Refer to the discussion beginning on page 34 and Notes 3 and 4 to the Consolidated Financial Statements for more information on special items. |
(3) | Results for the third quarter of 2014 include special charges affecting operating income. Workforce restructuring charges and transformation costs totaled $9.6 million ($7.2 million after-tax or $.03 per share). Non-operating items include $20.5 million ($16.2 million after-tax or $.07 per share) primarily related to transaction costs. Special tax items include a tax benefit of $5.6 million ($.02 per share). Refer to the discussion beginning on page 34 and Notes 3 and 4 to the Consolidated Financial Statements for more information on special items. |
(4) | Results for the fourth quarter of 2014 include special charges affecting operating income. Workforce restructuring charges, transformation costs and non-cash asset impairments totaled $87.2 million ($57.7 million after tax or $.03 per share). Non-operating items include $439.2 million ($262.3 million after-tax or $1.13 per share) primarily related to the write-up of our equity investment in Cars.com offset partially by transaction related costs. Special tax items include a tax benefit of $236.6 million ($1.02 per share) related to the sale of an investment. Refer to the discussion beginning on page 34 and Notes 3 and 4 to the Consolidated Financial Statements for more information on special items. |
QUARTERLY STATEMENTS OF INCOME (Unaudited) | |||||||||||||||
In thousands of dollars, except per share amounts | |||||||||||||||
Fiscal year ended Dec. 29, 2013 | 1st Quarter(1) | 2nd Quarter(2) | 3rd Quarter(3) | 4th Quarter(4) | Total | ||||||||||
Operating revenues | $ | 1,237,735 | $ | 1,302,699 | $ | 1,252,890 | $ | 1,368,038 | $ | 5,161,362 | |||||
Operating expenses | |||||||||||||||
Cost of sales and operating expenses, exclusive of depreciation | 719,724 | 726,869 | 713,369 | 722,487 | 2,882,449 | ||||||||||
Selling, general and administrative expenses, exclusive of depreciation | 314,115 | 320,615 | 315,677 | 341,451 | 1,291,858 | ||||||||||
Depreciation | 38,926 | 38,467 | 38,195 | 37,615 | 153,203 | ||||||||||
Amortization of intangible assets | 9,128 | 9,368 | 8,071 | 9,802 | 36,369 | ||||||||||
Facility consolidation and asset impairment charges | 4,785 | 4,498 | 5,880 | 43,077 | 58,240 | ||||||||||
Total | 1,086,678 | 1,099,817 | 1,081,192 | 1,154,432 | 4,422,119 | ||||||||||
Operating income | 151,057 | 202,882 | 171,698 | 213,606 | 739,243 | ||||||||||
Non-operating (expense) income | |||||||||||||||
Equity income in unconsolidated investees, net | 7,794 | 9,424 | 11,711 | 14,895 | 43,824 | ||||||||||
Interest expense | (35,405 | ) | (36,174 | ) | (41,628 | ) | (62,857 | ) | (176,064 | ) | |||||
Other non-operating items | (1,583 | ) | (9,791 | ) | (17,580 | ) | (18,936 | ) | (47,890 | ) | |||||
Total | (29,194 | ) | (36,541 | ) | (47,497 | ) | (66,898 | ) | (180,130 | ) | |||||
Income before income taxes | 121,863 | 166,341 | 124,201 | 146,708 | 559,113 | ||||||||||
Provision for income taxes | 5,400 | 39,600 | 26,700 | 41,500 | 113,200 | ||||||||||
Net income | 116,463 | 126,741 | 97,501 | 105,208 | 445,913 | ||||||||||
Net income attributable to noncontrolling interests | (11,898 | ) | (13,121 | ) | (17,753 | ) | (14,461 | ) | (57,233 | ) | |||||
Net income attributable to Gannett Co., Inc. | $ | 104,565 | $ | 113,620 | $ | 79,748 | $ | 90,747 | $ | 388,680 | |||||
Per share computations(5) | |||||||||||||||
Net income per share—basic | $ | 0.46 | $ | 0.50 | $ | 0.35 | $ | 0.40 | $ | 1.70 | |||||
Net income per share—diluted | $ | 0.44 | $ | 0.48 | $ | 0.34 | $ | 0.39 | $ | 1.66 | |||||
Dividends per share | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.80 |
(1) | Results for the first quarter of 2013 include special charges affecting operating income. Workforce restructuring and transformation costs totaled $10.2 million ($6.2 million after-tax or $.03 per share). Non-operating items include $3.7 million ($3.1 million after-tax or $.01 per share) primarily related to a currency related loss and a non-cash impairment charge relating to an investment accounted for under the equity method. Offsetting these was tax benefits of $27.8 million ($.12 per share) related to the reserve releases as a result of federal exam resolution and the lapse of a statute of limitations. Refer to the discussion beginning on page 34 and Notes 3 and 4 to the Consolidated Financial Statements for more information on special items. |
(2) | Results for the second quarter of 2013 include special charges affecting operating income. Workforce restructuring charges and transformation costs totaled $26.2 million ($15.8 million after-tax or $.07 per share). Non-operating items include $9.5 million ($5.7 million after-tax or $.02 per share) of transformation costs related to our acquisition of Belo. Refer to the discussion beginning on page 34 and Notes 3 and 4 to the Consolidated Financial Statements for more information on special items. |
(3) | Results for the third quarter of 2013 include special charges affecting operating income. Workforce restructuring charges and transformation costs totaled $15.1 million ($9.2 million after-tax or $.04 per share). Non-operating items include $21.0 million ($10.8 million after-tax or $.05 per share) related to the loss from the change in control and sale of interests in a business as well transformation costs related to our acquisition of Belo. Refer to the discussion beginning on page 34 and Notes 3 and 4 to the Consolidated Financial Statements for more information on special items. |
(4) | Results for the fourth quarter of 2013 include special charges affecting operating income. Workforce restructuring charges, transformation costs and non-cash asset impairments totaled $64.6 million ($40.8 million after tax or $.18 per share). Non-operating items include $21.0 million ($20.9 million after-tax or $.09 per share) of charges primarily related to our acquisition of Belo. Refer to the discussion beginning on page 34 and Notes 3 and 4 to the Consolidated Financial Statements for more information on special items. |
(5) | As a result of rounding and the required method of computing shares in interim periods, the total of the quarterly earnings per share amounts may not equal the earnings per share amount of the year. |
In thousands of dollars | |||||||||||||||
Allowance for doubtful receivables | Balance at beginning of period | Additions charged to cost and expenses | Additions/(reductions) for acquisitions/ dispositions (1) | Deductions from reserves (2) | Balance at end of period | ||||||||||
Fiscal year ended Dec. 28, 2014 | $ | 15,275 | $ | 13,029 | $ | 2,031 | $ | (13,837 | ) | $ | 16,498 | ||||
Fiscal year ended Dec. 29, 2013 | $ | 22,006 | $ | 11,519 | $ | (385 | ) | $ | (17,865 | ) | $ | 15,275 | |||
Fiscal year ended Dec. 30, 2012 | $ | 34,646 | $ | 9,736 | $ | 24 | $ | (22,400 | ) | $ | 22,006 |
(1) | Includes foreign currency translation adjustments in each year. |
(2) | Consists of write-offs, net of recoveries in each year. |
(a) | Financial Statements, Financial Statement Schedules and Exhibits. |
Dated: February 25, 2015 | GANNETT CO., INC. (Registrant) | ||
By: | /s/ Victoria D. Harker | ||
Victoria D. Harker, | |||
Chief Financial Officer | |||
(principal financial officer) |
Dated: February 25, 2015 | /s/ Gracia C. Martore | |
Gracia C. Martore, | ||
President and Chief Executive | ||
Officer (principal executive officer) | ||
Dated: February 25, 2015 | /s/ Victoria D. Harker | |
Victoria D. Harker, | ||
Chief Financial Officer | ||
(principal financial officer) | ||
(principal accounting officer) |
Dated: February 25, 2015 | /s/ John E. Cody |
John E. Cody, Director | |
Dated: February 25, 2015 | /s/ Howard D. Elias |
Howard D. Elias, Director | |
Dated: February 25, 2015 | /s/ Lidia Fonseca |
Lidia Fonseca, Director | |
Dated: February 25, 2015 | /s/ John Jeffry Louis |
John Jeffry Louis, Director | |
Dated: February 25, 2015 | /s/ Marjorie Magner |
Marjorie Magner, | |
Director, Chairman | |
Dated: February 25, 2015 | /s/ Gracia C. Martore |
Gracia C. Martore, Director | |
Dated: February 25, 2015 | /s/ Scott K. McCune |
Scott K. McCune, Director | |
Dated: February 25, 2015 | /s/ Susan Ness |
Susan Ness, Director | |
Dated: February 25, 2015 | /s/ Tony A. Prophet |
Tony A. Prophet, Director | |
Dated: February 25, 2015 | /s/ Neal Shapiro |
Neal Shapiro, Director |
Exhibit Number | Exhibit | Location | ||
2-1 | Agreement and Plan of Merger, dated as of June 12, 2013, by and among Gannett Co., Inc., Belo Corp. and Delta Acquisition Corp. | Incorporated by reference to Exhibit 2.1 to Gannett Co., Inc.’s Form 8-K filed on June 18, 2013. | ||
3-1 | Third Restated Certificate of Incorporation of Gannett Co., Inc. | Incorporated by reference to Exhibit 3-1 to Gannett Co., Inc.’s Form 10-Q for the fiscal quarter ended April 1, 2007. | ||
3-2 | Amended by-laws of Gannett Co., Inc. | Incorporated by reference to Exhibit 3-2 to Gannett Co., Inc.’s Form 8-K dated July 29, 2014 and filed on August 1, 2014. | ||
4-1 | Indenture dated as of March 1, 1983, between Gannett Co., Inc. and Citibank, N.A., as Trustee. | Incorporated by reference to Exhibit 4-2 to Gannett Co., Inc.’s Form 10-K for the fiscal year ended December 29, 1985. | ||
4-2 | First Supplemental Indenture dated as of November 5, 1986, among Gannett Co., Inc., Citibank, N.A., as Trustee, and Sovran Bank, N.A., as Successor Trustee. | Incorporated by reference to Exhibit 4 to Gannett Co., Inc.’s Form 8-K filed on November 9, 1986. | ||
4-3 | Second Supplemental Indenture dated as of June 1, 1995, among Gannett Co., Inc., NationsBank, N.A., as Trustee, and Crestar Bank, as Trustee. | Incorporated by reference to Exhibit 4 to Gannett Co., Inc.’s Form 8-K filed on June 15, 1995. | ||
4-4 | Third Supplemental Indenture, dated as of March 14, 2002, between Gannett Co., Inc. and Wells Fargo Bank Minnesota, N.A., as Trustee. | Incorporated by reference to Exhibit 4.16 to Gannett Co., Inc.’s Form 8-K filed on March 14, 2002. | ||
4-5 | Fourth Supplemental Indenture, dated as of June 16, 2005, between Gannett Co., Inc. and Wells Fargo Bank Minnesota, N.A., as Trustee. | Incorporated by reference to same numbered exhibit to Gannett Co., Inc.’s Form 10-Q for the fiscal quarter ended June 26, 2005. | ||
4-6 | Fifth Supplemental Indenture, dated as of May 26, 2006, between Gannett Co., Inc. and Wells Fargo Bank, N.A., as Trustee. | Incorporated by reference to Exhibit 4-5 to Gannett Co. Inc.’s Form 10-Q for the fiscal quarter ended June 25, 2006. | ||
4-7 | Sixth Supplemental Indenture, dated as of June 29, 2007, between Gannett Co., Inc. and Wells Fargo Bank, N.A., as Successor Trustee. | Incorporated by reference to Exhibit 4.5 to Gannett Co., Inc.’s Form 10-Q for the fiscal quarter ended July 1, 2007. | ||
4-8 | Eleventh Supplemental Indenture, dated as of October 3, 2013, between Gannett Co., Inc. and U.S. Bank National Association as Trustee. | Incorporated by reference to Exhibit 4.8 to Gannett Co., Inc.’s Form 10-K for the fiscal year ended December 29, 2013. | ||
4-9 | Specimen Certificate for Gannett Co., Inc.’s common stock, par value $1.00 per share. | Incorporated by reference to Exhibit 2 to Gannett Co., Inc.’s Form 8-B filed on June 14, 1972. | ||
10-1 | Supplemental Executive Medical Plan Amended and Restated as of January 1, 2011.* | Incorporated by reference to Exhibit 10-2 to Gannett Co., Inc.’s Form 10-K for the fiscal year ended December 26, 2010. | ||
10-1-1 | Amendment No. 1 to the Supplemental Executive Medical Plan Amended and Restated as of January 1, 2012.* | Incorporated by reference to Exhibit 10-1-1 to Gannett Co., Inc.’s Form 10-K for the fiscal year ended December 30, 2012. | ||
10-2 | Supplemental Executive Medical Plan for Retired Executives dated December 22, 2010 and effective January 1, 2011.* | Incorporated by reference to Exhibit 10-2-1 to Gannett Co., Inc.’s Form 10-K for the fiscal year ended December 26, 2010. | ||
10-3 | Gannett Supplemental Retirement Plan Restatement.* | Incorporated by reference to Exhibit 10-2 to Gannett Co., Inc.’s Form 10-Q for the fiscal quarter ended September 30, 2007. | ||
10-3-1 | Amendment No. 1 to the Gannett Co., Inc. Supplemental Retirement Plan dated July 31, 2008 and effective August 1, 2008.* | Incorporated by reference to Exhibit 10-1 to Gannett Co., Inc.’s Form 10-Q for the fiscal quarter ended September 28, 2008. | ||
10-3-2 | Amendment No. 2 to the Gannett Co., Inc. Supplemental Retirement Plan dated December 22, 2010.* | Incorporated by reference to Exhibit 10-3-2 to Gannett Co., Inc.’s Form 10-K for the fiscal year ended December 26, 2010. | ||
10-4 | Gannett Co., Inc. Deferred Compensation Plan Restatement dated February 1, 2003 (reflects all amendments through July 25, 2006).* | Incorporated by reference to Exhibit 10-4 to Gannett Co., Inc.’s Form 10-K for the fiscal year ended December 31, 2006. | ||
10-4-1 | Gannett Co., Inc. Deferred Compensation Plan Rules for Post-2004 Deferrals.* | Incorporated by reference to Exhibit 10-3 to Gannett Co., Inc.’s Form 10-Q for the fiscal quarter ended July 1, 2007. | ||
10-4-2 | Amendment No. 1 to the Gannett Co., Inc. Deferred Compensation Plan Rules for Post-2004 Deferrals dated July 31, 2008 and effective August 1, 2008.* | Incorporated by reference to Exhibit 10-2 to Gannett Co., Inc.’s Form 10-Q for the fiscal quarter ended September 28, 2008. | ||
10-4-3 | Amendment No. 2 to the Gannett Co., Inc. Deferred Compensation Plan Rules for Post-2004 Deferrals dated December 9, 2008.* | Incorporated by reference to Exhibit 10-4-3 to Gannett Co., Inc.’s Form 10-K for the fiscal year ended December 28, 2008. | ||
10-4-4 | Amendment No. 3 to the Gannett Co., Inc. Deferred Compensation Plan Rules for Post-2004 Deferrals dated October 27, 2009.* | Incorporated by reference to Exhibit 10-4-4 to Gannett Co., Inc.’s Form 10-K for the fiscal year ended December 27, 2009. | ||
10-4-5 | Amendment No. 4 to the Gannett Co., Inc. Deferred Compensation Plan Rules for Post-2004 Deferrals dated December 22, 2010.* | Incorporated by reference to Exhibit 10-4-5 to Gannett Co., Inc.’s Form 10-K for the fiscal year ended December 26, 2010. | ||
10-5 | Gannett Co., Inc. Transitional Compensation Plan Restatement.* | Incorporated by reference to Exhibit 10-1 to Gannett Co., Inc.’s Form 10-Q for the fiscal quarter ended September 30, 2007. | ||
10-5-1 | Amendment No. 1 to Gannett Co., Inc. Transitional Compensation Plan Restatement dated as of May 4, 2010.* | Incorporated by reference to Exhibit 10-3 to Gannett Co., Inc.’s Form 10-Q for the fiscal quarter ended March 28, 2010. | ||
10-5-2 | Amendment No. 2 to Gannett Co., Inc. Transitional Compensation Plan Restatement dated as of December 22, 2010.* | Incorporated by reference to Exhibit 10-5-2 to Gannett Co., Inc.’s Form 10-K for the fiscal year ended December 26, 2010. | ||
10-6 | Gannett Co., Inc. Omnibus Incentive Compensation Plan, as amended and restated as of May 4, 2010.* | Incorporated by reference to Exhibit 10-2 to Gannett Co., Inc.’s Form 10-Q for the fiscal quarter ended March 28, 2010. | ||
10-6-1 | Gannett Co., Inc. 2001 Inland Revenue Approved Sub-Plan for the United Kingdom.* | Incorporated by reference to Exhibit 10-1 to Gannett Co., Inc.’s Form 10-Q for the fiscal quarter ended September 26, 2004. | ||
10-6-2 | Form of Director Stock Option Award Agreement.* | Incorporated by reference to Exhibit 10-7-3 to Gannett Co., Inc.’s Form 10-K for the fiscal year ended December 30, 2007. | ||
10-6-3 | Form of Director Restricted Stock Award Agreement.* | Incorporated by reference to Exhibit 10-6-4 to Gannett Co., Inc.’s Form 10-K for the fiscal year ended December 28, 2008. | ||
10-6-4 | Form of Executive Officer Stock Option Award Agreement.* | Incorporated by reference to Exhibit 10-6-5 to Gannett Co., Inc.’s Form 10-K for the fiscal year ended December 28, 2008. | ||
10-6-5 | Form of Executive Officer Restricted Stock Unit Award Agreement.* | Incorporated by reference to Exhibit 10-6-6 to Gannett Co., Inc.’s Form 10-K for the fiscal year ended December 28, 2008. | ||
10-6-6 | Form of Executive Officer Performance Share Award Agreement.* | Incorporated by reference to Exhibit 99-1 to Gannett Co., Inc.’s Form 8-K/A filed on December 9, 2011. | ||
10-6-7 | Form of Executive Officer Restricted Stock Unit Award Agreement.* | Incorporated by reference to Exhibit 10-2 to Gannett Co., Inc.’s Form 10-Q for the fiscal quarter ended March 31, 2013. | ||
10-6-8 | Form of Executive Officer Performance Share Award Agreement.* | Incorporated by reference to Exhibit 10-6-8 to Gannett Co., Inc.’s Form 10-K for the fiscal year ended December 29, 2013. | ||
10-6-9 | Form of Director Restricted Stock Unit Award Agreement.* | Attached. | ||
10-6-10 | Form of Executive Officer Restricted Stock Unit Award Agreement. * | Attached. | ||
10-6-11 | Form of Executive Officer Performance Share Award Agreement. * | Attached. | ||
10-7 | Gannett U.K. Limited Share Incentive Plan, as amended effective June 25, 2004.* | Incorporated by reference to Exhibit 10-2 to Gannett Co., Inc.’s Form 10-Q for the fiscal quarter ended June 27, 2004. | ||
10-8 | Amendment and Restatement Agreement, dated as of August 5, 2013, to each of (i) the Amended and Restated Competitive Advance and Revolving Credit Agreement, dated as of March 11, 2002 and effective as of March 18, 2002, as amended and restated as of December 13, 2004 and effective as of January 5, 2005, as amended by the First Amendment thereto, dated as of February 28, 2007 and effective as of March 15, 2007, as further amended by the Second Amendment thereto, dated as of October 23, 2008 and effective as of October 31, 2008, as further amended by the Third Amendment thereto, dated as of September 28, 2009, as further amended by the Fourth Amendment thereto, dated as of August 25, 2010 and as further amended by the Fifth Amendment and Waiver, dated as of September 30, 2010 (the “2002 Credit Agreement”), among Gannett Co., Inc., a Delaware corporation (“Gannett”), the several banks and other financial institutions from time to time parties to the Credit Agreement (the “2002 Lenders”), JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “2002 Administrative Agent”), JPMorgan Chase Bank, N.A. and Citibank, N.A., as syndication agents, and Barclays Bank PLC, as documentation agent, (ii) the Competitive Advance and Revolving Credit Agreement, dated as of February 27, 2004 and effective as of March 15, 2004, as amended by the First Amendment thereto, dated as of February 28, 2007 and effective as of March 15, 2007, as further amended by the Second Amendment thereto, dated as of October 23, 2008 and effective as of October 31, 2008, as further amended by the Third Amendment thereto, dated as of September 28, 2009, as further amended by the Fourth Amendment thereto, dated as of August 25, 2010, and as further amended by the Fifth Amendment and Waiver, dated as of September 30, 2010 (the “2004 Credit Agreement”), among Gannett, the several banks and other financial institutions from time to time parties to the Credit Agreement (the “2004 Lenders”), JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”), JPMorgan Chase Bank, N.A. and Citibank, N.A., as syndication agents, and Barclays Bank PLC and SunTrust Bank, as documentation agents and (iii) the Competitive Advance and Revolving Credit Agreement, dated as of December 13, 2004 and effective as of January 5, 2005, as amended by the First Amendment thereto, dated as of February 28, 2007 and effective as of March 15, 2007, as further amended by the Second Amendment thereto, dated as of October 23, 2008 and effective as of October 31, 2008, as further amended by the Third Amendment thereto, dated as of September 28, 2009, as further amended by the Fourth Amendment thereto, dated as of August 25, 2010 and as further amended by the Fifth Amendment and Waiver, dated as of September 30, 2010 (the “2005 Credit Agreement” and, together with the 2002 Credit Agreement and the 2004 Credit Agreement, the “Credit Agreements”), among Gannett, the several banks and other financial institutions from time to time parties to the Credit Agreement (the “2005 Lenders” and, together with the 2002 Lenders and the 2004 Lenders, the “Lenders”), JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “2005 Administrative Agent” and, together with the 2002 Administrative Agent and the 2004 Administrative Agent, the “Administrative Agent”), JPMorgan Chase Bank, N.A. and Citibank, N.A., as syndication agents, and Barclays Bank PLC, as documentation agent, by and between Gannett, the Guarantors under the Credit Agreements as of the date hereof, the Administrative Agent, JPMorgan Chase Bank, N.A. and Bank of America, N.A., as issuing lenders and the Lenders party thereto. | Incorporated by reference to Exhibit 10-1 to Gannett Co., Inc.’s Form 10-Q for the fiscal quarter ended September 29, 2013. | ||
10-9 | Master Assignment and Assumption, dated as of August 5, 2013, by and between each of the lenders listed thereon as assignors and/or assignees. | Incorporated by reference to Exhibit 10-2 to Gannett Co., Inc.’s Form 10-Q for the fiscal quarter ended September 29, 2013. | ||
10-10 | Amended and Restated Competitive Advance and Revolving Credit Agreement, dated as of August 5, 2013, by and among Gannett, the several banks and other financial institutions from time to time parties thereto, JPMorgan Chase Bank, N.A., as administrative agent, and JPMorgan Chase Bank, N.A. and Citibank, N.A. as syndication agents | Incorporated by reference to Exhibit 10-3 to Gannett Co., Inc.’s Form 10-Q for the fiscal quarter ended September 29, 2013. | ||
10-11 | Sixth Amendment, dated as of September 24, 2013, to the Competitive Advance and Revolving Credit Agreement, dated as of December 13, 2004 and effective as of January 5, 2005, as amended by the First Amendment thereto, dated as of February 28, 2007 and effective as of March 15, 2007, as further amended by the Second Amendment thereto, dated as of October 23, 2008 and effective as of October 31, 2008, as further amended by the Third Amendment thereto, dated as of September 28, 2009, as further amended by the Fourth Amendment thereto, dated as of August 25, 2010, as further amended by the Fifth Amendment and Waiver, dated as of September 30, 2010, and as further amended and restated pursuant to the Amended and Restated Competitive Advance and Revolving Credit Agreement, dated as of August 5, 2013, by and among Gannett Co., Inc., JPMorgan Chase Bank, N.A., as administrative agent, and the several banks and other financial institutions from time to time parties thereto. | Incorporated by reference to Exhibit 10-4 to Gannett Co., Inc.’s Form 10-Q for the fiscal quarter ended September 29, 2013. | ||
10-12 | Increased Facility Activation Notice, dated September 25, 2013, pursuant to the Amended and Restated Competitive Advance and Revolving Credit Agreement, dated as of August 5, 2013, by and among Gannett Co., Inc., JPMorgan Chase Bank N.A., as administrative agent, and the several banks and other financial institutions from time to time parties thereto. | Incorporated by reference to Exhibit 10-5 to Gannett Co., Inc.’s Form 10-Q for the fiscal quarter ended September 29, 2013. | ||
10-12-1 | Increased Facility Activation Notice, dated May 5, 2014, pursuant to the Amended and Restated Competitive Advance and Revolving Credit Agreement, dated as of August 5, 2013, by and among Gannett Co., Inc., JP Morgan Chase Bank, N.A., as administrative agent, and the several banks and other financial institutions from time to time parties thereto. | Incorporated by reference to Exhibit 10-1 to Gannett Co., Inc.’s Form 10-Q for the fiscal quarter ended June 29, 2014. | ||
10-13 | Description of Gannett Co., Inc.’s Non-Employee Director Compensation.* | Incorporated by reference to Exhibit 10-1 to Gannett Co., Inc.’s Form 10-Q for the fiscal quarter ended March 31, 2013. | ||
10-14 | Employment Agreement dated February 27, 2007, between Gannett Co., Inc. and Gracia C. Martore.* | Incorporated by reference to Exhibit 10-15 to Gannett Co., Inc.’s Form 10-K for the fiscal year ended December 31, 2006. | ||
10-14-1 | Amendment, dated as of August 7, 2007, to Employment Agreement dated February 27, 2007.* | Incorporated by reference to Exhibit 10-5 to Gannett Co., Inc.’s Form 10-Q for the fiscal quarter ended July 1, 2007. | ||
10-14-2 | Amendment, dated as of December 24, 2010, to Employment Agreement dated February 27, 2007.* | Incorporated by reference to Exhibit 10-14-2 to Gannett Co., Inc.’s Form 10-K for the year ended December 26, 2010. | ||
10-15 | Termination Benefits Agreement dated as of March 16, 2011 between Gannett Co., Inc. and David A. Payne.* | Incorporated by reference to Exhibit 10-15 to Gannett Co., Inc.’s Form 10-K for the year ended December 25, 2011. | ||
10-16 | Termination Benefits Agreement dated as of July 23, 2012 between Gannett Co., Inc. and Victoria D. Harker.* | Incorporated by reference to Exhibit 99-2 to Gannett Co., Inc.’s Form 8-K filed on June 22, 2012. | ||
10-17 | Amendment for section 409A Plans dated December 31, 2008.* | Incorporated by reference to Exhibit 10-14 to Gannett Co., Inc.’s Form 10-K for the fiscal year ended December 28, 2008. | ||
10-18 | Executive Life Insurance Plan document dated December 31, 2008.* | Incorporated by reference to Exhibit 10-15 to Gannett Co., Inc.’s Form 10-K for the fiscal year ended December 28, 2008. | ||
10-19 | Key Executive Life Insurance Plan dated October 29, 2010.* | Incorporated by reference to Exhibit 10-1 to Gannett Co., Inc.’s Form 10-Q for the fiscal quarter ended September 26, 2010. | ||
10-20 | Form of Participation Agreement under Key Executive Life Insurance Plan.* | Incorporated by reference to Exhibit 10-2 to Gannett Co., Inc.’s Form 10-Q for the fiscal quarter ended September 26, 2010. | ||
10-21 | Omnibus Amendment to Terms and Conditions of Restricted Stock Awards dated as of December 31, 2008.* | Incorporated by reference to Exhibit 10-17 to Gannett Co., Inc.’s Form 10-K for the fiscal year ended December 28, 2008. | ||
10-22 | Omnibus Amendment to Terms and Conditions of Stock Unit Awards dated as of December 31, 2008.* | Incorporated by reference to Exhibit 10-18 to Gannett Co., Inc.’s Form 10-K for the fiscal year ended December 28, 2008. | ||
10-23 | Omnibus Amendment to Terms and Conditions of Stock Option Awards dated as of December 31, 2008.* | Incorporated by reference to Exhibit 10-19 to Gannett Co., Inc.’s Form 10-K for the fiscal year ended December 28, 2008. | ||
10-24 | Gannett Leadership Team Transitional Severance Plan* | Incorporated by reference to Exhibit 10-1 to Gannett Co., Inc. Form 10-Q for the fiscal quarter ended September 28, 2014. | ||
10-25 | Unit Purchase Agreement, dated as of August 5, 2014, by and among Gannett Co., Inc., Classified Ventures, LLC, the unit holders of Classified Ventures, LLC (the “sellers”), certain subsidiaries of the Sellers, Gannett Satellite Information Network, Inc., and Belo Ventures, Inc. | Incorporated by reference to Exhibit 2-1 to Gannett Co., Inc. Form 8-K filed on August 5, 2014. | ||
21 | Subsidiaries of Gannett Co., Inc. | Attached. | ||
23 | Consent of Independent Registered Public Accounting Firm. | Attached. | ||
31-1 | Certification Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. | Attached. | ||
31-2 | Certification Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. | Attached. | ||
32-1 | Section 1350 Certification. | Attached. | ||
32-2 | Section 1350 Certification. | Attached. | ||
101 | The following financial information from Gannett Co., Inc. Annual Report on Form 10-K for the year ended December 28, 2014, formatted in XBRL includes: (i) Consolidated Balance Sheets at December 28, 2014 and December 29, 2013, (ii) Consolidated Statements of Income for the 2014, 2013 and 2012 fiscal years, (iii) Consolidated Statements of Comprehensive Income for the 2014, 2013 and 2012 fiscal years, (iv) Consolidated Cash Flow Statements for the 2014, 2013 and 2012 fiscal years; (v) Consolidated Statements of Equity for the 2014, 2013 and 2012 fiscal years; and (vi) the Notes to Consolidated Financial Statements. | Attached. |
* | Asterisks identify management contracts and compensatory plans or arrangements. |
Stock Unit Vesting Schedule: | 25% of the Stock Units shall vest on August 1, 20__ [year of Grant Date] |
By: | |||
Director's Signature | Kevin E. Lord | ||
Senior Vice President/Human Resources |
• | The number of Unvested Stock Units under this Award Agreement will be adjusted by multiplying such number by the “RemainCo Stock Conversion Ratio”. The RemainCo Stock Conversion Ratio is equal to (i) divided by (ii) where: (i) is the value of one share of the Company’s Common Stock immediately before the Spin-Off; and (ii) is the value of one share of the Company’s Common Stock immediately after the Spin-Off. Such conversion shall be effected in a manner intended generally to prevent the dilution or enlargement of rights under this Award Agreement, provided that all determinations in connection therewith (including the methodology for determining the value of a share for the RemainCo Stock Conversion Ratio) shall be made by the Committee in its sole discretion. |
• | Except as set forth above, the terms of the Award Agreement shall remain in effect. |
• | As of the date of the Spin-Off, the Unvested Stock Units under this Award Agreement will be converted into an award agreement to receive stock units denominated in common shares of SpinCo. The number of stock units under the SpinCo award agreement will be calculated by multiplying the number of Unvested Stock Units under this Award Agreement by the “SpinCo Stock Conversion Ratio”. The SpinCo Stock Conversion Ratio is equal to (i) divided by (ii) where: (i) is the value of one share of the Company’s Common Stock immediately before the Spin-Off; and (ii) is the value of one share of SpinCo’s common stock immediately after the Spin-Off. Such conversion shall be effected in a manner intended generally to prevent the dilution or enlargement of rights under this Award Agreement, provided that all determinations in connection therewith (including the methodology for determining the value of a share for the SpinCo Stock Conversion Ratio) shall be made by the Committee in its sole discretion. |
• | The Director’s termination as a director of the Company and commencement as a director of SpinCo in conjunction with the Spin-Off shall not be treated as an event that cancels the Director’s rights under Section 5 or a termination of employment under Section 6. For all Stock Units granted under this Award Agreement, a Change in Control under Section 13 shall refer to a Change in Control of SpinCo. |
• | Except as set forth above and for appropriate conforming changes (e.g., references to the Company shall instead refer to SpinCo, references to Common Shares shall refer to common stock of SpinCo, references to the Committee shall refer to the committee appointed by SpinCo, a Change in Control under Section 13 shall refer to a Change in Control of SpinCo, etc.), the SpinCo award agreement shall have terms and conditions that are substantially the same as the terms and conditions set forth herein. |
Stock Unit Vesting Schedule: | 25% of the Stock Units shall vest on 12/31/__* |
By: | |||
Employee's Signature | Kevin E. Lord | ||
Senior Vice President/Human Resources |
• | The Number of Stock Units under this Award Agreement will be adjusted by multiplying such number by the “RemainCo Stock Conversion Ratio”. The RemainCo Stock Conversion Ratio is equal to (i) divided by (ii) where: (i) is the value of one share of the Company’s Common Stock immediately before the Spin-Off; and (ii) is the value of one share of the Company’s Common Stock immediately after the Spin-Off. Such conversion shall be effected in a manner intended generally to prevent the dilution or enlargement of rights under this Award Agreement, provided that all determinations in connection therewith (including the methodology for determining the value of a share for the RemainCo Stock Conversion Ratio) shall be made by the Committee in its sole discretion. |
• | Except as set forth above, the terms of the Award Agreement shall remain in effect. |
• | As of the date of the Spin-Off, this Award Agreement will be converted into an award agreement to receive stock units denominated in common shares of SpinCo. The number of stock units under the SpinCo award agreement will be calculated by multiplying the Number of Stock Units under this Award Agreement by the “SpinCo Stock Conversion Ratio”. The SpinCo Stock Conversion Ratio is equal to (i) divided by (ii) where: (i) is the value of one share of the Company’s Common Stock immediately before the Spin-Off; and (ii) is the value of one share of SpinCo’s common stock immediately after the Spin-Off. Such conversion shall be effected in a manner intended generally to prevent the dilution or enlargement of |
• | The Employee’s employment with SpinCo in conjunction with the Spin-Off shall not be treated as an event that cancels Employee’s rights under Section 6 or a termination of employment under Sections 1, 3, or 5. |
• | Except as set forth above and for appropriate conforming changes (e.g., references to the Company shall instead refer to SpinCo, references to Common Shares shall refer to common stock of SpinCo, references to the Committee shall refer to the committee appointed by SpinCo, a Change in Control under Section 14 shall refer to a Change in Control of SpinCo, etc.), the SpinCo award agreement shall have terms and conditions that are substantially the same as the terms and conditions set forth herein. |
Performance Share Payment Date: | On a date specified by the Committee that is within the first 90 days of ____ |
By: | |||
Employee's Signature | Kevin E. Lord | ||
Senior Vice President/Human Resources |
(i) | the fraud or intentional misconduct of the Employee contributed (either directly or indirectly) to the noncompliance that resulted in the obligation to restate the Company’s financial statements; and |
(ii) | a lower award of Performance Shares would have been made to the Employee had it been based upon the restated financial results; |
• | The Target Number of Performance Shares under this Award Agreement will be adjusted by multiplying such number by the “RemainCo Stock Conversion Ratio”. The RemainCo Stock Conversion Ratio is equal to (i) divided by (ii) where: (i) is the value of one share of the Company’s Common Stock immediately before the Spin-Off; and (ii) is the value of one share of the Company’s Common Stock immediately after the Spin-Off. Such conversion shall be effected in a manner intended generally to prevent the dilution or enlargement of rights under this Award Agreement, provided that all determinations in connection therewith (including the methodology for determining the value of a share for the RemainCo Stock Conversion Ratio) shall be made by the Committee in its sole discretion. |
• | Except as set forth above, the terms of the Award Agreement shall remain in effect. |
• | As of the date of the Spin-Off, this Award Agreement will be converted into an award agreement to receive a target number of performance shares denominated in common shares of SpinCo. The target number of performance shares under the SpinCo award agreement will be calculated by multiplying Target Number of Performance Shares under this Award Agreement by the “SpinCo Stock Conversion Ratio”. The SpinCo Stock Conversion Ratio is equal to (i) divided by (ii) where: (i) is the value of one share of the Company’s Common Stock immediately before the Spin-Off; and (ii) is the value of one share of SpinCo’s common stock immediately after the Spin-Off. Such conversion shall be effected in a manner intended generally to prevent the dilution or enlargement of rights under this Award Agreement, provided that all determinations in connection therewith (including the methodology for |
• | The Employee’s employment with SpinCo in conjunction with the Spin-Off shall not be treated as an event that cancels Employee’s rights under Section 5 or a termination of employment under Section 6. |
• | Except as set forth above and for appropriate conforming changes (e.g., references to the Company shall instead refer to SpinCo, references to Common Shares shall refer to common stock of SpinCo, references to the Committee shall refer to the committee appointed by SpinCo, a Change in Control under Section 13 shall refer to a Change in Control of SpinCo, etc.), the SpinCo award agreement shall have terms and conditions that are substantially the same as the terms and conditions set forth herein. |
Company’s Percentile in 3-Year TSR vs. Comparator Companies | Resulting Shares Earned (% of Target) | Value of Each Share Earned |
90th or above | 200% | Each share earned is also impacted by share price change during the cycle |
70th | 150% | |
50th | 100% | |
30th | 50% | |
<30th | 0% | |
Straight-line interpolation between points |
A.H. Belo Corp. (AHC) | Angie’s List, Inc. (ANGI) | AOL, Inc. (AOL) |
Constant Contact, Inc. (CTCT) | Dex Media,Inc. (DXM) | Discovery Communications Inc. (DISCA) |
E.W. Scripps (SSP) | Gray Television, Inc. (GTN) | Groupon, Inc. (GRPN) |
Harte Hanks, Inc. (HHS) | IAC/InteractiveCorp. (IACI) | Journal Communications Inc. (JRN) |
Lee Enterprises, Inc. (LEE) | LinkedIn Corporation (LNKD) | McClatchy Co. (MNI) |
Media General, Inc. (MEG) | Meredith Corp. (MDP) | Monster Worldwide Inc. (MWW) |
New Media Investment Group (NEWM) | New York Times Co. (NYT) | News Corp. (NWSA) |
NexStar Broadcasting Group, Inc. (NXST) | ReachLocal, Inc. (RLOC) | Sinclair Broadcast Group, Inc. (SBGI) |
Time, Inc. (TIME) | Tribune Media, Co. (TRBAA) | Tribune Publishing Co. (TPUB) |
Truecar, Inc. (TRUE) | Yahoo Inc. (YHOO) |
1. | The denominator for calculating Total Shareholder Return shall be adjusted by dividing the value of a share of the Company’s Common Stock on the Performance Period Commencement Date by the RemainCo Conversion Ratio (“Adjusted RemainCo Grant Date Price”). |
2. | The value of any cash dividends on the Company’s Common Stock (which, in accordance with the definition of “Total Shareholder Return” above, are deemed reinvested in the Company’s Common Stock) that are paid prior to the date of the Spin-Off (and consequently the assumed reinvestment returns on such dividends) will be adjusted in the same manner as the denominator for Total Shareholder Return (the “Adjusted RemainCo Pre-Spin Dividend”). |
3. | In accordance with the definition of “Total Shareholder Return” above, following the Spin-Off, the numerator for calculating Total Shareholder Return will be calculated as the difference between (A) and (B) where (A) is the sum of (i) the price of Company Stock on the relevant measurement dates, plus (ii) dividends paid on such stock between the date of the Spin-Off and the relevant measurement date (which dividends are assumed to be reinvested in the stock), plus (iii) the Adjusted RemainCo Pre-Spin Dividend; and (B) is the Adjusted RemainCo Grant Date Price. |
4. | For purposes of the application of Item 1 under the heading “Other Rules” above, the price of a share of the Company’s Common Stock on the Performance Period Commencement Date shall be treated as equaling the Adjusted RemainCo Grant Date Price. |
5. | The Comparator Companies set forth under “Definitions” above shall be superseded and replaced by the following for the full performance period: |
Angie’s List, Inc. (ANGI) | AOL, Inc. (AOL) | Constant Contact, Inc. (CTCT) |
Discovery Communications Inc. (DISCA) | E.W. Scripps (SSP) | Gray Television, Inc. (GTN) |
Groupon, Inc. (GRPN) | Harte Hanks, Inc. (HHS) | IAC/InteractiveCorp. (IACI) |
LinkedIn Corporation (LNKD) | Media General, Inc. (MEG) | Meredith Corp. (MDP) |
Monster Worldwide Inc. (MWW) | NexStar Broadcasting Group, Inc. (NXST) | ReachLocal, Inc. (RLOC) |
Sinclair Broadcast Group, Inc. (SBGI) | Tribune Media Co. (TRBAA) | Truecar, Inc. (TRUE) |
Yahoo Inc. (YHOO) |
1. | The denominator for calculating Total Shareholder Return shall be adjusted by dividing the value of a share of the Company’s Common Stock on the Performance Period Commencement Date by the SpinCo Conversion Ratio (“Adjusted SpinCo Grant Date Price”). |
2. | The value of any cash dividends on the Company’s Common Stock (which, in accordance with the definition of “Total Shareholder Return” above, are deemed reinvested in the Company’s Common Stock) that are paid prior to the date of the Spin-Off (and consequently the assumed reinvestment returns on such dividends) will be adjusted in the same manner as the denominator for Total Shareholder Return (the “Adjusted SpinCo Pre-Spin Dividend”). |
3. | In accordance with the definition of “Total Shareholder Return” above, following the Spin-Off, the numerator for calculating Total Shareholder Return will be calculated as the difference between (A) and (B) where: (A) is the sum of (i) the price of SpinCo common stock on the relevant measurement dates, plus (ii) dividends paid on such stock between the date of the Spin-Off and the relevant measurement date (which dividends are assumed to be reinvested in the stock), plus (iii) the Adjusted SpinCo Pre-Spin Dividend; and (B) is the Adjusted SpinCo Grant Date Price. |
4. | For purposes of the application of Item 1 under the heading “Other Rules” above, the price of a share of the Company’s Common Stock on the Performance Period Commencement Date shall be treated as equaling the Adjusted SpinCo Grant Date Price. |
5. | The Comparator Companies set forth under “Definitions” above shall be superseded and replaced by the following for the full performance period: |
A.H. Belo Corp. (AHC) | Angie’s List, Inc. (ANGI) | Constant Contact, Inc. (CTCT) |
Dex Media,Inc. (DXM) | Harte Hanks, Inc. (HHS) | Journal Communications Inc. (JRN) |
Lee Enterprises, Inc. (LEE) | McClatchy Co. (MNI) | Meredith Corp. (MDP) |
New Media Investment Group (NEWM) | New York Times Co. (NYT) | News Corp. (NWSA) |
ReachLocal, Inc. (RLOC) | Time, Inc. (TIME) | Tribune Publishing Co. (TPUB) |
(a) | To the extent permitted by Code Section 162(m) and the Plan, the Committee shall have the authority to adjust the number of Performance Shares that are payable under the Award Agreement, adjust the Total Shareholder Return calculations or alter the methodology for calculating the number of Performance Shares to take into account the effects of a stock split, reverse stock split, stock dividend, spin-off, reorganization, recapitalization or similar transaction. |
(b) | The aggregate grant with respect to awards of Performance Shares or Restricted Stock Units made in any one fiscal year to any one participant under the Plan may not exceed the value of five hundred thousand (500,000) Shares. |
(c) | Before any Performance Shares are paid to the Employee, the Committee will certify, in writing, the Company’s satisfaction of the pre-established performance target and the number of Performance Shares payable to the Employee. |
UNIT | STATE OF INCORPORATION |
6600 BROADVIEW, LLC | OHIO |
ACTION ADVERTISING, INC. | WISCONSIN |
THE ADVERTISER COMPANY | ALABAMA |
ALEXANDRIA NEWSPAPERS, INC. | LOUISIANA |
ARIZONA NEWS CHANNEL, LLC | DELAWARE |
ARKANSAS TELEVISION COMPANY | ARKANSAS |
BAXTER COUNTY NEWSPAPERS, INC. | ARKANSAS |
BELO ADVERTISING CUSTOMER SERVICES | DELAWARE |
BELO CAPITAL BUREAU, INC. | DELAWARE |
BELO CORP. | DELAWARE |
BELO HOLDINGS, INC. | DELAWARE |
BELO INVESTMENT, LLC | DELAWARE |
BELO KENTUCKY, INC. | KENTUCKY |
BELO LEAD MANAGEMENT, LLC | DELAWARE |
BELO LIVE VIDEO SOLUTIONS, LLC | DELAWARE |
BELO MANAGEMENT SERVICES, INC. | DELAWARE |
BELO SAN ANTONIO, INC. | DELAWARE |
BELO SEARCH SOLUTIONS, LLC | DELAWARE |
BELO TECHNOLOGY ASSETS II, INC. | DELAWARE |
BELO TV, INC. | DELAWARE |
BELO VENTURES, INC. | DELAWARE |
BLINQ MEDIA, LLC | GEORGIA |
CAPE PUBLICATIONS, INC. | DELAWARE |
CAREERBUILDER, LLC | DELAWARE |
CARS.COM, LLC | DELAWARE |
CARS.COM HOLDINGS, INC. | DELAWARE |
CARS.COM HOLDINGS, LLC | DELAWARE |
CITIZEN PUBLISHING COMPANY | ARIZONA |
CLIPPER MAGAZINE, LLC | DELAWARE |
CNF CORP. | ARIZONA |
COMBINED COMMUNICATIONS CORPORATION OF OKLAHOMA, INC. | OKLAHOMA |
CORPORATE ARENA ASSOCIATES, INC. | TEXAS |
THE COURIER-JOURNAL, INC. | DELAWARE |
DALLAS BELO HQ HOLDINGS, LLC | DELAWARE |
DEMOCRAT AND CHRONICLE, LLC | DELAWARE |
DES MOINES PRESS CITIZEN LLC | DELAWARE |
DES MOINES REGISTER AND TRIBUNE COMPANY | IOWA |
THE DESERT SUN PUBLISHING COMPANY | CALIFORNIA |
DESERT SUN PUBLISHING, LLC | DELAWARE |
DETROIT FREE PRESS, INC. | MICHIGAN |
DETROIT NEWSPAPER PARTNERSHIP, L.P. | DELAWARE |
UNIT | STATE OF INCORPORATION |
DIGICOL, INC. | DELAWARE |
FEDERATED PUBLICATIONS, INC. | DELAWARE |
FIRST COAST TOWER GROUP | FLORIDA |
FLORIDA OFFSET HOLDINGS, LLC | DELAWARE |
FORT COLLINS HOLDINGS, LLC | DELAWARE |
FRANKLINS HOLDINGS, LLC | DELAWARE |
GCCC, LLC | DELAWARE |
GCOE, LLC | DELAWARE |
GFHC, LLC | DELAWARE |
GNSS, LLC | DELAWARE |
GANNETT BROADCAST SERVICE CENTER, LLC | DELAWARE |
GANNETT DIRECT MARKETING SERVICES, INC. | KENTUCKY |
GANNETT GEORGIA, LLC | DELAWARE |
GANNETT GOVERNMENT MEDIA, LLC | DELAWARE |
GANNETT GP MEDIA, INC | DELAWARE |
GANNETT INTERNATIONAL COMMUNICATIONS, INC. | DELAWARE |
GANNETT MEDIA SERVICES, LLC | DELAWARE |
GANNETT MHC MEDIA, INC. | DELAWARE |
GANNETT MISSOURI PUBLISHING, INC. | KANSAS |
GANNETT PACIFIC CORPORATION | HAWAII |
GANNETT PUBLISHING SERVICES, LLC | DELAWARE |
GANNETT RETAIL ADVERTISING GROUP, INC. | DELAWARE |
GANNETT RIVER STATES PUBLISHING CORPORATION | ARKANSAS |
GANNETT SATELLITE INFORMATION NETWORK, INC. | DELAWARE |
GANNETT SPINCO, INC. | DELAWARE |
GANNETT SUPPLY CORPORATION | DELAWARE |
GANNETT U.K. LIMITED | UNITED KINGDOM |
GANNETT VERMONT INSURANCE, INC. | VERMONT |
GANNETT VERMONT PUBLISHING, INC. | DELAWARE |
GANSAT ACQUISITION SUBSIDIARY, INC. | DELAWARE |
GUAM PUBLICATIONS, INCORPORATED | HAWAII |
INDIANA NEWSPAPERS, LLC | INDIANA |
KENS-TV, INC. | DELAWARE |
KHOU-TV, INC. | DELAWARE |
KING BROADCASTING COMPANY | WASHINGTON |
KING NEWS CORPORATION | WASHINGTON |
KMSB-TV, INC. | ARIZONA |
KONG-TV, INC. | DELAWARE |
KSKN TELEVISION, INC. | DELAWARE |
KTTU-TV, INC. | DELAWARE |
KTVK, INC. | DELAWARE |
KVUE TELEVISION, INC. | DELAWARE |
KXTV, INC. | MICHIGAN |
LAKE CEDAR GROUP LLC | DELAWARE |
LOUISVILLE HOLDINGS, LLC | DELAWARE |
UNIT | STATE OF INCORPORATION |
LSB BROADCASTING, INC. | DELAWARE |
MARION, LLC | DELAWARE |
MEDIA SALES ACADEMY, LLC | TEXAS |
MMS HOLDINGS, INC. | DELAWARE |
MOBESTREAM MEDIA, INC. | DELAWARE |
MULTIMEDIA, INC. | SOUTH CAROLINA |
MULTIMEDIA ENTERTAINMENT, INC. | SOUTH CAROLINA |
MULTIMEDIA HOLDINGS CORPORATION | SOUTH CAROLINA |
MULTIMEDIA KSDK, INC. | SOUTH CAROLINA |
MUSKOGEE PHOENIX, LLC | DELAWARE |
NEWSQUEST MEDIA GROUP LTD | UNITED KINGDOM |
NEWSQUEST MEDIA (SOUTHERN) LTD. | UNITED KINGDOM |
NEWSQUEST PLC | UNITED KINGDOM |
NORTHWEST CABLE NEWS, INC. | DELAWARE |
NTV, INC. | DELAWARE |
PACIFIC MEDIA, INC. | DELAWARE |
PACIFIC AND SOUTHERN COMPANY, INC. | DELAWARE |
PARMA HOLDINGS, LLC | OHIO |
PERSONIFIED, LLC | DELAWARE |
PHOENIX NEWSPAPERS, INC. | ARIZONA |
PHOENIX OFFSET HOLDINGS, LLC | DELAWARE |
POINT ROLL, INC. | DELAWARE |
PRESS-CITIZEN COMPANY INC. | IOWA |
RENO NEWSPAPERS, INC. | NEVADA |
ROVION, LLC | DELAWARE |
SALINAS NEWSPAPERS LLC | CALIFORNIA |
SCHEDULE STAR, LLC | DELAWARE |
SCREENSHOT DIGITAL, INC. | DELAWARE |
SEDONA PUBLISHING COMPANY, INC. | ARIZONA |
SHOPLOCAL, LLC | DELAWARE |
THE SUN COMPANY OF SAN BERNARDINO, CALIFORNIA, LLC | CALIFORNIA |
TELEFARM, INC. | DELAWARE |
TEXAS CABLE NEWS, INC. | DELAWARE |
TEXAS-NEW MEXICO NEWSPAPERS PARTNERSHIP | DELAWARE |
THE TIMES HERALD COMPANY | MICHIGAN |
UNIT | STATE OF INCORPORATION |
TNI PARTNERS | ARIZONA |
TUCSON PROPERTY HOLDINGS, LLC | DELAWARE |
US PRESSWIRE, LLC | FLORIDA |
USA TODAY INTERNATIONAL CORPORATION | DELAWARE |
USA TODAY SPORTS MEDIA GROUP, LLC | DELAWARE |
VISALIA NEWSPAPERS LLC | CALIFORNIA |
WCNC-TV, INC. | NORTH CAROLINA |
WFAA-TV, INC. | DELAWARE |
WFMY TELEVISION CORP. | NORTH CAROLINA |
WJXX SPINCO, INC. | DELAWARE |
WKYC HOLDINGS, INC. | DELAWARE |
WKYC-TV, INC. | DELAWARE |
WUSA-TV, INC. | DELAWARE |
WVEC TELEVISION, INC. | DELAWARE |
WWL-TV, INC. | DELAWARE |
X.COM, INC. | DELAWARE |
1. | I have reviewed this annual report on Form 10-K of Gannett Co., Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Gracia C. Martore | |
Gracia C. Martore President and Chief Executive Officer (principal executive officer) |
1. | I have reviewed this annual report on Form 10-K of Gannett Co., Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Victoria D. Harker | |
Victoria D. Harker Chief Financial Officer (principal financial officer) |
/s/ Gracia C. Martore | |
Gracia C. Martore President and Chief Executive Officer (principal executive officer) |
/s/ Victoria D. Harker | |
Victoria D. Harker Chief Financial Officer (principal financial officer) |
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