Retirement plans and postretirement benefits other than pension

6 Months Ended

Jun. 26, 2011

Pension Plans, Defined Benefit

Retirement plans and postretirement benefits other than pension

NOTE 6 – Retirement plans

The Company and its subsidiaries have various retirement plans, including plans established under collective bargaining agreements. The Gannett Retirement Plan is the Company’s principal retirement plan. The Company’s pension costs, which include costs for qualified, nonqualified and union plans are presented in the following table:

(in thousands of dollars)

		September 30,			September 30,			September 30,			September 30,
	Thirteen Weeks Ended						Twenty-six Weeks Ended
	Jun. 26, 2011			Jun. 27, 2010			Jun. 26, 2011			Jun. 27, 2010
Service cost-benefits earned during the period	$	1,841		$	3,554		$	3,946		$	7,606
Interest cost on benefit obligation		41,635			48,362			84,507			91,487
Expected return on plan assets		(51,424	)		(51,696	)		(104,523	)		(99,423	)
Amortization of prior service cost		1,859			1,875			3,734			3,499
Amortization of actuarial loss		9,508			13,582			18,789			24,716
Pension expense for Company-sponsored retirement plans		3,419			15,677			6,453			27,885
Curtailment gain		—			(582	)		—			(582	)
Union and other pension cost		998			1,287			1,995			2,573
Pension cost	$	4,417		$	16,382		$	8,448		$	29,876

In the second quarter of 2011, the Company made a contribution of $14 million to the Gannett Retirement Plan. During the third quarter of 2011, the Company made an additional contribution of $10 million.

Other Postretirement Benefit Plans, Defined Benefit

Retirement plans and postretirement benefits other than pension

NOTE 7 – Postretirement benefits other than pension

The Company provides health care and life insurance benefits to certain retired employees who meet age and service requirements. Most of the Company’s retirees contribute to the cost of these benefits and retiree contributions are increased as actual benefit costs increase. The Company’s policy is to fund benefits as claims and premiums are paid. Postretirement benefit costs for health care and life insurance are presented in the following table:

(in thousands of dollars)

		September 30,			September 30,			September 30,			September 30,
	Thirteen Weeks Ended						Twenty-six Weeks Ended
	Jun. 26, 2011			Jun. 27, 2010			Jun. 26, 2011			Jun. 27, 2010
Service cost-benefits earned during the period	$	130		$	(32	)	$	305		$	357
Interest cost on net benefit obligation		2,227			2,488			4,602			5,302
Amortization of prior service credit		(4,880	)		(4,844	)		(9,755	)		(9,688	)
Amortization of actuarial loss		1,522			1,247			2,722			2,474
Net periodic postretirement benefit credit	$	(1,001	)	$	(1,141	)	$	(2,126	)	$	(1,555	)