Income taxes (Tables)

12 Months Ended

Dec. 28, 2014

Provision (Benefit) for Income Taxes on Income from Continuing Operations

The provision (benefit) for income taxes consists of the following:



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

Components of Income (Loss) from Continuing Operations Attributable to Gannett Co., Inc. Before Income Taxes

The components of net income attributable to Gannett Co., Inc. before income taxes consist of the following:



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

Reconciliation of Effective Tax Rate

The provision for income taxes on varies from the U.S. federal statutory tax rate as a result of the following differences:



	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	%

Deferred Tax Liabilities and Assets

Deferred tax liabilities and assets were composed of the following at the end of 2014 and 2013:



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	)

Summary of Activity Related to Unrecognized Tax Benefits, Excluding Federal Tax Benefit of State Tax Deductions

The following table summarizes the activity related to unrecognized tax benefits, excluding the federal tax benefit of state tax deductions:



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

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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