Retirement plans and postretirement benefits other than pension

9 Months Ended

Sep. 25, 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)
	Thirteen Weeks Ended						Thirty-nine Weeks Ended
	Sept. 25, 2011			Sept. 26, 2010			Sept. 25, 2011			Sept. 26, 2010
Service cost-benefits earned during the period	$	1,973		$	3,383		$	5,919		$	10,989
Interest cost on benefit obligation		42,253			41,426			126,760			132,913
Expected return on plan assets		(52,262	)		(44,787	)		(156,785	)		(144,210	)
Amortization of prior service cost		1,867			1,577			5,601			5,076
Amortization of actuarial loss		9,394			11,567			28,183			36,283
Pension expense for Company-sponsored retirement plans		3,225			13,166			9,678			41,051
Curtailment gain		—			—			—			(582	)
Union and other pension cost		998			1,287			2,993			3,860
Pension cost	$	4,223		$	14,453		$	12,671		$	44,329

In the second and third quarters of 2011, the Company made contributions of $14 million and $10 million, respectively, to the Gannett Retirement Plan. Early in the fourth quarter of 2011, the Company made an additional contribution of $9 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)
	Thirteen Weeks Ended						Thirty-nine Weeks Ended
	Sept. 25, 2011			Sept. 26, 2010			Sept. 25, 2011			Sept. 26, 2010
Service cost-benefits earned during the period	$	153		$	178		$	458		$	535
Interest cost on net benefit obligation		2,301			2,651			6,903			7,953
Amortization of prior service credit		(4,878	)		(4,844	)		(14,633	)		(14,532	)
Amortization of actuarial loss		1,361			1,237			4,083			3,711
Net periodic postretirement benefit credit	$	(1,063	)	$	(778	)	$	(3,189	)	$	(2,333	)