Retirement plans

We, along with our subsidiaries, have various defined benefit retirement plans, including plans established under collective bargaining agreements. Our principal retirement plan is the Gannett Retirement Plan (GRP). The disclosure tables below include the assets and obligations of the GRP, the Gannett Supplemental Retirement Plan (SERP), the Newsquest Pension Scheme in the U.K. (Newsquest Plan), the Newspaper Guild of Detroit Pension Plan, and The G. B. Dealey Retirement Pension Plan (Dealey Plan). We use a Dec. 31 measurement date convention for our retirement plans.

Substantially all participants in the GRP, Dealey Plan and SERP had their benefits frozen before 2009. Participants of the Newsquest Plan had their benefits frozen effective March 31, 2011.

Our pension costs, which include costs for our qualified and non-qualified plans, are presented in the following table:



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

The following table provides a reconciliation of pension benefit obligations (on a projected benefit obligation measurement basis), plan assets and funded status of company-sponsored retirement plans, along with the related amounts that are recognized in the Consolidated Balance Sheets.



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	)

The funded status (on a projected benefit obligation basis) of our principal retirement plans at Dec. 28, 2014, is as follows:



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

The accumulated benefit obligation for all defined benefit pension plans was $3.98 billion at Dec. 28, 2014, and $3.65 billion at Dec. 29, 2013.

The following table presents information for our retirement plans for which accumulated benefits exceed assets:



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

The following table presents information for our retirement plans for which projected benefit obligations exceed assets:



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

The following table summarizes the amounts recorded in accumulated other comprehensive income (loss) that have not yet been recognized as a component of pension expense as of the dates presented (pre-tax):



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	)

The actuarial loss amounts expected to be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in 2015 are $60.5 million. The prior service cost amounts expected to be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in 2015 are $7.6 million.

The increased reduction to accumulated other comprehensive income was driven by lower rates used to discount our pension obligations as well as updates to assumed life expectancies of the plan’s participants.

Other changes in plan assets and benefit obligations recognized in other comprehensive loss consist of the following:



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	)

Pension costs: The following assumptions were used to determine net pension costs:



	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%

The expected return on plan assets assumption was determined based on plan asset allocations, a review of historic capital market performance, historical plan asset performance and a forecast of expected future plan asset returns.

Benefit obligations and funded status: The following assumptions were used to determine the year-end benefit obligations:



	Dec. 28, 2014	Dec. 29, 2013
Discount rate	3.96%	4.75%
Rate of compensation increase	2.96%	2.97%

During 2014, we made the following contributions to our principal retirement plans: $56.1 million to the GRP, $20.1 million to the Dealey Plan and $14.7 million to the Newsquest Plan. In 2015, we expect to contribute $12.0 million to the GRP and $12.8 million to the Newsquest Plan.

Plan assets: The asset allocation for the GRP at the end of 2014 and 2013, and target allocations for 2015, by asset category, are presented in the table below:



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	%

The primary objective of company-sponsored retirement plans is to provide eligible employees with scheduled pension benefits; the “prudent man” guideline is followed with regard to the investment management of retirement plan assets. Consistent with prudent standards for preservation of capital and maintenance of liquidity, the goal is to earn the highest possible total rate of return while minimizing risk. The principal means of reducing volatility and exercising prudent investment judgment is diversification by asset class and by investment manager; consequently, portfolios are constructed to attain prudent diversification in the total portfolio, each asset class, and within each individual investment manager’s portfolio. Investment diversification is consistent with the intent to minimize the risk of large losses. All objectives are based upon an investment horizon spanning five years so that interim market fluctuations can be viewed with the appropriate perspective. The target asset allocation represents the long-term perspective. Retirement plan assets will be rebalanced periodically to align them with the target asset allocations. Risk characteristics are measured and compared with an appropriate benchmark quarterly; periodic reviews are made of the investment objectives and the investment managers. Our actual investment return on our Gannett Retirement Plan assets was 5.2% for 2014, 16.4% for 2013 and 12.6% for 2012.

Retirement plan assets include approximately 1.2 million shares of our common stock valued at approximately $39.7 million at the end of 2014 and $36.7 million at the end of 2013. The plan received dividends of approximately $1.0 million on these shares in 2014 and 2013.

Cash flows: We estimate we will make the following benefit payments (from either retirement plan assets or directly from our funds), which reflect expected future service, as appropriate:



In thousands of dollars
2015	$	222,327
2016	$	225,846
2017	$	230,012
2018	$	229,063
2019	$	232,081
2020-2024	$	1,146,800

401(k) savings plan

Substantially all our employees (other than those covered by a collective bargaining agreement) who are scheduled to work at least 1,000 hours during each year of employment are eligible to participate in our principal defined contribution plan, The Gannett Co., Inc. 401(k) Savings Plan. Employees can elect to save up to 50% of compensation on a pre-tax basis subject to certain limits.

For most participants, the plan’s matching formula is 100% of the first 5% of employee contributions. We also make additional employer contributions on behalf of certain long-term employees. Compensation expense related to 401(k) contributions was $48.1 million in 2014, $47.5 million in 2013, and $51.3 million in 2012. We settled the 401(k) employee match obligation by buying our stock in the open market and depositing it in the participants’ accounts.

Multi-employer plans that provide pension benefits: We contribute to a number of multi-employer defined benefit pension plans under the terms of collective-bargaining agreements (CBA) that cover our union-represented employees. The risks of participating in these multi-employer plans are different from single-employer plans in the following aspects:


•	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.

Our participation in these plans for the annual period ended Dec. 28, 2014, is outlined in the table below. The “EIN/Pension Plan Number” column provides the Employee Identification Number (EIN) and the three-digit plan number. Unless otherwise noted, the two most recent Pension Protection Act (PPA) zone statuses available are for the plan’s year-end at Dec. 31, 2013 and Dec. 31, 2012. The zone status is based on information that we received from the plan and is certified by the plan’s actuary. Among other factors, plans in the red zone are generally less than 65% funded; plans in the orange zone are both a) less than 80% funded and b) have an accumulated/expected funding deficiency in any of the next six plan years, net of any amortization extensions; plans in the yellow zone meet either one of the criteria mentioned in the orange zone; and plans in the green zone are at least 80% funded. The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented. The last column lists the expiration date(s) of the collective-bargaining agreement(s) to which the plans are subject.

We make all required contributions to these plans as determined under the respective CBAs. For each of the plans listed below, our contribution represented less than 5% of total contributions to the plan except for one plan where we contributed approximately 13% of the total contributions to the Newspaper Guild International Pension Plan. This calculation is based on the plan financial statements issued at the end of December 31, 2013. At the date we issue our financial statements, Forms 5500 were unavailable for the plan years ending after December 31, 2013.

We incurred expenses for multi-employer withdrawal liabilities of $8.2 million in 2014 and $3.8 million in 2012. Other noncurrent liabilities on the Consolidated Balance Sheet include $41.2 million as of Dec. 28, 2014, and $34.1 million as of Dec. 29, 2013, for such withdrawal liabilities.

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

973

988

965

5/31/2015

9/11/2015

4/18/2017

CWA/ITU Negotiated Pension Plan

13-6212879/001

Red

Implemented

433

242

572

2/1/2015

11/8/2015

2/23/2016

GCIU—Employer Retirement Benefit Plan (a), (b)

91-6024903/001

Red

Implemented

216

380

N/A

The Newspaper Guild International Pension Plan (a)

52-1082662/001

Red

Implemented

244

279

415

2/23/2016

IAM National Pension Plan (a)

51-6031295/002

Green

403

736

341

4/30/2016

Teamsters Pension Trust Fund of Philadelphia and Vicinity (a)

23-1511735/001

Yellow

Implemented

1,298

1,355

876

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

153

160

158

4/30/2016

Central States Southeast and Southwest Areas Pension Fund (b)

36-6044243/001

Red

Implemented

—

260

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.