|
ý
|
QUARTERLY 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)
|
Large Accelerated Filer
|
ý
|
Accelerated Filer
|
¨
|
|
|
|
|
Non-Accelerated Filer
|
¨
|
Smaller Reporting Company
|
¨
|
|
|
Jun. 29, 2014
|
|
Dec. 29, 2013
|
||||
|
(Unaudited)
|
|
|
||||
ASSETS
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
430,666
|
|
|
$
|
469,203
|
|
Trade receivables, less allowance for doubtful accounts (2014 - $17,666; 2013 - $15,275)
|
773,099
|
|
|
834,052
|
|
||
Other receivables
|
26,832
|
|
|
28,592
|
|
||
Inventories
|
55,050
|
|
|
49,950
|
|
||
Deferred income taxes
|
18,639
|
|
|
21,245
|
|
||
Assets held for sale
|
54,458
|
|
|
395,851
|
|
||
Prepaid expenses and other current assets
|
103,883
|
|
|
124,592
|
|
||
Total current assets
|
1,462,627
|
|
|
1,923,485
|
|
||
Property, plant and equipment
|
|
|
|
||||
Cost
|
3,956,247
|
|
|
4,007,879
|
|
||
Less accumulated depreciation
|
(2,357,190
|
)
|
|
(2,338,247
|
)
|
||
Net property, plant and equipment
|
1,599,057
|
|
|
1,669,632
|
|
||
Intangible and other assets
|
|
|
|
||||
Goodwill
|
3,804,551
|
|
|
3,790,472
|
|
||
Indefinite-lived and amortizable intangible assets, less accumulated amortization
|
1,466,718
|
|
|
1,477,231
|
|
||
Deferred income taxes
|
59,722
|
|
|
—
|
|
||
Investments and other assets
|
754,890
|
|
|
379,886
|
|
||
Total intangible and other assets
|
6,085,881
|
|
|
5,647,589
|
|
||
Total assets
(a)
|
$
|
9,147,565
|
|
|
$
|
9,240,706
|
|
|
Jun. 29, 2014
|
|
Dec. 29, 2013
|
||||
|
(Unaudited)
|
|
|
||||
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Accounts payable and current portion of film contracts payable
|
$
|
173,388
|
|
|
$
|
215,300
|
|
Accrued expenses
|
437,161
|
|
|
499,162
|
|
||
Dividends payable
|
45,433
|
|
|
45,645
|
|
||
Income taxes
|
101,754
|
|
|
17,791
|
|
||
Deferred income
|
241,428
|
|
|
223,404
|
|
||
Current portion of long-term debt
|
5,890
|
|
|
5,890
|
|
||
Total current liabilities
|
1,005,054
|
|
|
1,007,192
|
|
||
Noncurrent liabilities
|
|
|
|
||||
Income taxes
|
47,985
|
|
|
49,748
|
|
||
Deferred income taxes
|
695,250
|
|
|
587,904
|
|
||
Long-term debt
|
3,446,737
|
|
|
3,707,010
|
|
||
Post-retirement medical and life insurance liabilities
|
88,173
|
|
|
129,078
|
|
||
Pension liabilities
|
548,932
|
|
|
632,195
|
|
||
Other noncurrent liabilities
|
212,949
|
|
|
218,168
|
|
||
Total noncurrent liabilities
|
5,040,026
|
|
|
5,324,103
|
|
||
Total liabilities
(a)
|
6,045,080
|
|
|
6,331,295
|
|
||
|
|
|
|
||||
Redeemable noncontrolling interests
|
17,904
|
|
|
14,618
|
|
||
|
|
|
|
||||
Commitments and contingent liabilities (See Note 13)
|
|
|
|
|
|
||
|
|
|
|
||||
Equity
|
|
|
|
||||
Gannett Co., Inc. shareholders’ equity
|
|
|
|
||||
Preferred stock of $1 par value per share, 2,000,000 shares authorized, none issued
|
—
|
|
|
—
|
|
||
Common stock of $1 par value per share, 800,000,000 shares authorized, 324,418,632 shares issued
|
324,419
|
|
|
324,419
|
|
||
Additional paid-in capital
|
561,288
|
|
|
552,368
|
|
||
Retained earnings
|
7,898,034
|
|
|
7,720,903
|
|
||
Accumulated other comprehensive loss
|
(458,542
|
)
|
|
(494,055
|
)
|
||
|
8,325,199
|
|
|
8,103,635
|
|
||
Less treasury stock, at cost (2014 - 98,771,456 shares; 2013 - 96,849,744 shares)
|
(5,467,088
|
)
|
|
(5,410,537
|
)
|
||
Total Gannett Co., Inc. shareholders’ equity
|
2,858,111
|
|
|
2,693,098
|
|
||
Noncontrolling interests
|
226,470
|
|
|
201,695
|
|
||
Total equity
|
3,084,581
|
|
|
2,894,793
|
|
||
Total liabilities and equity
|
$
|
9,147,565
|
|
|
$
|
9,240,706
|
|
|
Thirteen Weeks Ended
|
|
Twenty-six Weeks Ended
|
||||||||||||
|
Jun. 29, 2014
|
|
Jun. 30, 2013
|
|
Jun. 29, 2014
|
|
Jun. 30, 2013
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net Operating Revenues:
|
|
|
|
|
|
|
|
||||||||
Broadcasting
|
$
|
398,258
|
|
|
$
|
211,962
|
|
|
$
|
780,526
|
|
|
$
|
403,542
|
|
Publishing advertising
|
530,183
|
|
|
562,476
|
|
|
1,031,483
|
|
|
1,088,975
|
|
||||
Publishing circulation
|
277,851
|
|
|
279,655
|
|
|
559,927
|
|
|
565,627
|
|
||||
All other Publishing
|
59,331
|
|
|
62,100
|
|
|
118,018
|
|
|
120,862
|
|
||||
Digital
|
194,381
|
|
|
186,506
|
|
|
374,116
|
|
|
361,428
|
|
||||
Total
|
1,460,004
|
|
|
1,302,699
|
|
|
2,864,070
|
|
|
2,540,434
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating Expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of sales and operating expenses, exclusive of depreciation
|
775,627
|
|
|
726,869
|
|
|
1,543,159
|
|
|
1,446,593
|
|
||||
Selling, general and administrative expenses, exclusive of depreciation
|
353,779
|
|
|
320,615
|
|
|
708,992
|
|
|
634,730
|
|
||||
Depreciation
|
44,850
|
|
|
38,467
|
|
|
89,614
|
|
|
77,393
|
|
||||
Amortization of intangible assets
|
14,471
|
|
|
9,368
|
|
|
32,214
|
|
|
18,496
|
|
||||
Facility consolidation and asset impairment charges
|
28,775
|
|
|
4,498
|
|
|
43,595
|
|
|
9,283
|
|
||||
Total
|
1,217,502
|
|
|
1,099,817
|
|
|
2,417,574
|
|
|
2,186,495
|
|
||||
Operating income
|
242,502
|
|
|
202,882
|
|
|
446,496
|
|
|
353,939
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Non-operating (expense) income:
|
|
|
|
|
|
|
|
||||||||
Equity income in unconsolidated investees, net
|
156,540
|
|
|
9,424
|
|
|
165,031
|
|
|
17,218
|
|
||||
Interest expense
|
(64,148
|
)
|
|
(36,174
|
)
|
|
(133,796
|
)
|
|
(71,579
|
)
|
||||
Other non-operating items
|
(2,982
|
)
|
|
(9,791
|
)
|
|
(23,730
|
)
|
|
(11,374
|
)
|
||||
Total
|
89,410
|
|
|
(36,541
|
)
|
|
7,505
|
|
|
(65,735
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Income before income taxes
|
331,912
|
|
|
166,341
|
|
|
454,001
|
|
|
288,204
|
|
||||
Provision for income taxes
|
106,000
|
|
|
39,600
|
|
|
158,500
|
|
|
45,000
|
|
||||
Net income
|
225,912
|
|
|
126,741
|
|
|
295,501
|
|
|
243,204
|
|
||||
Net income attributable to noncontrolling interests
|
(17,445
|
)
|
|
(13,121
|
)
|
|
(27,875
|
)
|
|
(25,019
|
)
|
||||
Net income attributable to Gannett Co., Inc.
|
$
|
208,467
|
|
|
$
|
113,620
|
|
|
$
|
267,626
|
|
|
$
|
218,185
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per share – basic
|
$
|
0.92
|
|
|
$
|
0.50
|
|
|
$
|
1.18
|
|
|
$
|
0.95
|
|
Net income per share – diluted
|
$
|
0.90
|
|
|
$
|
0.48
|
|
|
$
|
1.15
|
|
|
$
|
0.93
|
|
Dividends declared per share
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.40
|
|
|
$
|
0.40
|
|
|
Thirteen Weeks Ended
|
|
Twenty-six Weeks Ended
|
||||||||||||
|
Jun. 29, 2014
|
|
Jun. 30, 2013
|
|
Jun. 29, 2014
|
|
Jun. 30, 2013
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
225,912
|
|
|
$
|
126,741
|
|
|
$
|
295,501
|
|
|
$
|
243,204
|
|
Redeemable noncontrolling interests (income not available to shareholders)
|
(1,395
|
)
|
|
28
|
|
|
(1,850
|
)
|
|
(246
|
)
|
||||
Other comprehensive income, before tax:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
12,809
|
|
|
(287
|
)
|
|
17,462
|
|
|
(32,873
|
)
|
||||
Pension and other post-retirement benefit items:
|
|
|
|
|
|
|
|
||||||||
Amortization of prior service credit, net
|
(1,215
|
)
|
|
(384
|
)
|
|
(1,700
|
)
|
|
(806
|
)
|
||||
Amortization of actuarial loss
|
11,798
|
|
|
16,275
|
|
|
23,233
|
|
|
32,135
|
|
||||
Remeasurement of post-retirement benefits liability
|
—
|
|
|
—
|
|
|
33,907
|
|
|
—
|
|
||||
Other
|
(9,297
|
)
|
|
(155
|
)
|
|
(15,413
|
)
|
|
18,931
|
|
||||
Pension and other post-retirement benefit items
|
1,286
|
|
|
15,736
|
|
|
40,027
|
|
|
50,260
|
|
||||
Other
|
819
|
|
|
(77
|
)
|
|
1,061
|
|
|
(1,863
|
)
|
||||
Other comprehensive income, before tax
|
14,914
|
|
|
15,372
|
|
|
58,550
|
|
|
15,524
|
|
||||
Income tax effect related to components of other comprehensive income
|
(5,441
|
)
|
|
(5,886
|
)
|
|
(21,976
|
)
|
|
(16,017
|
)
|
||||
Other comprehensive income, net of tax
|
9,473
|
|
|
9,486
|
|
|
36,574
|
|
|
(493
|
)
|
||||
Comprehensive income
|
233,990
|
|
|
136,255
|
|
|
330,225
|
|
|
242,465
|
|
||||
Comprehensive income attributable to noncontrolling interests, net of tax
|
(16,869
|
)
|
|
(13,072
|
)
|
|
(27,086
|
)
|
|
(22,910
|
)
|
||||
Comprehensive income attributable to Gannett Co., Inc.
|
$
|
217,121
|
|
|
$
|
123,183
|
|
|
$
|
303,139
|
|
|
$
|
219,555
|
|
|
Twenty-six Weeks Ended
|
||||||
|
Jun. 29, 2014
|
|
Jun. 30, 2013
|
||||
|
|
|
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
295,501
|
|
|
$
|
243,204
|
|
Adjustments to reconcile net income to net cash flow from operating activities:
|
|
|
|
||||
Depreciation and amortization
|
121,828
|
|
|
95,889
|
|
||
Facility consolidation and asset impairment charges
|
43,595
|
|
|
10,202
|
|
||
Pension contributions, net of pension expense
|
(64,179
|
)
|
|
(75,751
|
)
|
||
Equity income in unconsolidated investees, net
|
(165,031
|
)
|
|
(17,218
|
)
|
||
Stock-based compensation – equity awards
|
17,208
|
|
|
15,877
|
|
||
Change in other assets and liabilities, net
|
106,017
|
|
|
(48,262
|
)
|
||
Net cash flow from operating activities
|
354,939
|
|
|
223,941
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Purchase of property, plant and equipment
|
(56,905
|
)
|
|
(48,898
|
)
|
||
Payments for acquisitions, net of cash acquired
|
(121,956
|
)
|
|
(18,134
|
)
|
||
Payments for investments
|
(5,318
|
)
|
|
(2,379
|
)
|
||
Proceeds from investments
|
163,315
|
|
|
29,365
|
|
||
Proceeds from sale of certain assets
|
66,617
|
|
|
6,586
|
|
||
Net cash flow from (used for) investing activities
|
45,753
|
|
|
(33,460
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Payments of borrowings under revolving credit agreements, net
|
—
|
|
|
(79,000
|
)
|
||
Payments of unsecured fixed rate notes
|
(250,000
|
)
|
|
—
|
|
||
Payments of unsecured floating rate term loans
|
(17,925
|
)
|
|
—
|
|
||
Dividends paid
|
(90,848
|
)
|
|
(91,695
|
)
|
||
Cost of common shares repurchased
|
(75,815
|
)
|
|
(41,385
|
)
|
||
Proceeds from issuance of common stock upon exercise of stock options
|
10,362
|
|
|
13,132
|
|
||
Distribution to noncontrolling interests
|
(877
|
)
|
|
(218
|
)
|
||
Deferred payments for acquisitions
|
(14,481
|
)
|
|
(3,693
|
)
|
||
Net cash used for financing activities
|
(439,584
|
)
|
|
(202,859
|
)
|
||
Effect of currency exchange rate change on cash
|
355
|
|
|
(1,155
|
)
|
||
Decrease in cash and cash equivalents
|
(38,537
|
)
|
|
(13,533
|
)
|
||
Balance of cash and cash equivalents at beginning of period
|
469,203
|
|
|
175,030
|
|
||
Balance of cash and cash equivalents at end of period
|
$
|
430,666
|
|
|
$
|
161,497
|
|
|
|
|
|
||||
Supplemental cash flow information:
|
|
|
|
||||
Cash paid for taxes, net of refunds
|
$
|
45,284
|
|
|
$
|
73,683
|
|
Cash paid for interest
|
$
|
122,989
|
|
|
$
|
63,055
|
|
Non-cash investing and financing activities:
|
|
|
|
||||
Assets-held-for-sale proceeds
|
$
|
381,882
|
|
|
$
|
—
|
|
Capital expenditures
|
$
|
6,565
|
|
|
$
|
—
|
|
In thousands
|
Jun. 29, 2014
|
|
Dec. 29, 2013
|
||||
|
|
|
|
||||
Current assets
|
$
|
19,144
|
|
|
$
|
4,677
|
|
Plant, property and equipment, net
|
7,375
|
|
|
8,061
|
|
||
Intangible and other assets
|
30,955
|
|
|
32,008
|
|
||
Total assets
|
$
|
57,474
|
|
|
$
|
44,746
|
|
|
|
|
|
||||
Current liabilities
|
$
|
9,590
|
|
|
$
|
7,827
|
|
Noncurrent liabilities
|
32,204
|
|
|
34,173
|
|
||
Total liabilities
|
$
|
41,794
|
|
|
$
|
42,000
|
|
•
|
An NOL carryforward, a similar tax loss, or a tax credit carryforward is unavailable as of the reporting date under the tax law of the jurisdiction.
|
•
|
The entity does not intend to use the DTA for this purpose (provided that the tax law permits a choice).
|
In thousands
|
Jun. 29, 2014
|
|
Dec. 29, 2013
|
||||||||||||
|
Gross
|
|
Accumulated Amortization
|
|
Gross
|
|
Accumulated Amortization
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
$
|
3,804,551
|
|
|
$
|
—
|
|
|
$
|
3,790,472
|
|
|
$
|
—
|
|
Indefinite-lived intangibles:
|
|
|
|
|
|
|
|
||||||||
Television station FCC licenses
|
1,091,204
|
|
|
—
|
|
|
1,091,204
|
|
|
—
|
|
||||
Mastheads and trade names
|
82,903
|
|
|
—
|
|
|
82,570
|
|
|
—
|
|
||||
Amortizable intangible assets:
|
|
|
|
|
|
|
|
||||||||
Customer relationships
|
302,817
|
|
|
194,852
|
|
|
290,845
|
|
|
177,515
|
|
||||
Other
|
223,650
|
|
|
39,004
|
|
|
213,790
|
|
|
23,663
|
|
In thousands
|
Broadcasting
|
|
Publishing
|
|
Digital
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Balance at Dec. 29, 2013:
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
$
|
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
|
|
||||
Activity during the period:
|
|
|
|
|
|
|
|
||||||||
Acquisitions and adjustments
|
(16,430
|
)
|
|
4,578
|
|
|
33,233
|
|
|
21,381
|
|
||||
Impairment
|
—
|
|
|
(15,310
|
)
|
|
—
|
|
|
(15,310
|
)
|
||||
Foreign currency exchange rate changes
|
—
|
|
|
6,666
|
|
|
1,342
|
|
|
8,008
|
|
||||
Total
|
(16,430
|
)
|
|
(4,066
|
)
|
|
34,575
|
|
|
14,079
|
|
||||
Balance at Jun. 29, 2014:
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
2,526,903
|
|
|
7,897,708
|
|
|
790,103
|
|
|
11,214,714
|
|
||||
Accumulated impairment losses
|
—
|
|
|
(7,281,893
|
)
|
|
(128,270
|
)
|
|
(7,410,163
|
)
|
||||
Net balance at Jun. 29, 2014
|
$
|
2,526,903
|
|
|
$
|
615,815
|
|
|
$
|
661,833
|
|
|
$
|
3,804,551
|
|
In thousands
|
Jun. 29, 2014
|
|
Dec. 29, 2013
|
||||
|
|
|
|
||||
Unsecured floating rate term loan due quarterly through August 2018
|
$
|
139,000
|
|
|
$
|
154,800
|
|
VIE unsecured floating rate term loans due quarterly through December 2018
|
37,145
|
|
|
39,270
|
|
||
Unsecured notes bearing fixed rate interest at 8.75% due November 2014
|
250,000
|
|
|
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
|
|
||
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 6.375% due October 2023
|
650,000
|
|
|
650,000
|
|
||
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
|
3,476,142
|
|
|
3,744,067
|
|
||
Other (fair market value adjustments and discounts)
|
(23,515
|
)
|
|
(31,167
|
)
|
||
Total long-term debt
|
3,452,627
|
|
|
3,712,900
|
|
||
Less current portion of long-term debt maturities of VIE loans
|
5,890
|
|
|
5,890
|
|
||
Long-term debt, net of current portion
|
$
|
3,446,737
|
|
|
$
|
3,707,010
|
|
In thousands
|
Thirteen Weeks Ended
|
|
Twenty-six Weeks Ended
|
||||||||||||
|
Jun. 29, 2014
|
|
Jun. 30, 2013
|
|
Jun. 29, 2014
|
|
Jun. 30, 2013
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Service cost-benefits earned during the period
|
$
|
877
|
|
|
$
|
1,756
|
|
|
$
|
2,708
|
|
|
$
|
3,881
|
|
Interest cost on benefit obligation
|
42,372
|
|
|
35,071
|
|
|
84,738
|
|
|
70,254
|
|
||||
Expected return on plan assets
|
(59,174
|
)
|
|
(49,299
|
)
|
|
(117,748
|
)
|
|
(98,842
|
)
|
||||
Amortization of prior service cost
|
1,901
|
|
|
1,898
|
|
|
3,783
|
|
|
3,776
|
|
||||
Amortization of actuarial loss
|
11,674
|
|
|
16,190
|
|
|
22,901
|
|
|
31,550
|
|
||||
Expense (credit) for company-sponsored retirement plans
|
$
|
(2,350
|
)
|
|
$
|
5,616
|
|
|
$
|
(3,618
|
)
|
|
$
|
10,619
|
|
In thousands
|
Thirteen Weeks Ended
|
|
Twenty-six Weeks Ended
|
||||||||||||
|
Jun. 29, 2014
|
|
Jun. 30, 2013
|
|
Jun. 29, 2014
|
|
Jun. 30, 2013
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Service cost-benefits earned during the period
|
$
|
68
|
|
|
$
|
89
|
|
|
$
|
186
|
|
|
$
|
264
|
|
Interest cost on net benefit obligation
|
1,030
|
|
|
1,303
|
|
|
2,515
|
|
|
2,828
|
|
||||
Amortization of prior service credit
|
(3,116
|
)
|
|
(2,282
|
)
|
|
(5,483
|
)
|
|
(4,582
|
)
|
||||
Amortization of actuarial loss
|
124
|
|
|
85
|
|
|
332
|
|
|
585
|
|
||||
Net periodic post-retirement benefit credit
|
$
|
(1,894
|
)
|
|
$
|
(805
|
)
|
|
$
|
(2,450
|
)
|
|
$
|
(905
|
)
|
In thousands
|
Unrecognized Tax Benefits
|
||
|
|
||
Balance at Dec. 29, 2013
|
$
|
57,324
|
|
Changes in unrecognized tax benefits:
|
|
||
Additions based on tax positions related to the current year
|
3,744
|
|
|
Additions for tax positions of prior years
|
75
|
|
|
Reductions for tax positions of prior years
|
(4,315
|
)
|
|
Reductions due to lapse of statutes of limitations
|
(574
|
)
|
|
Balance at Jun. 29, 2014
|
$
|
56,254
|
|
In thousands
|
Gannett Co., Inc. Shareholders’ Equity
|
|
Noncontrolling Interests
|
|
Total Equity
|
||||||
|
|
|
|
|
|
||||||
Balance at Dec. 29, 2013
|
$
|
2,693,098
|
|
|
$
|
201,695
|
|
|
$
|
2,894,793
|
|
Comprehensive income:
|
|
|
|
|
|
||||||
Net income
|
267,626
|
|
|
27,875
|
|
|
295,501
|
|
|||
Redeemable noncontrolling interests (income not available to shareholders)
|
—
|
|
|
(1,850
|
)
|
|
(1,850
|
)
|
|||
Other comprehensive income
|
35,513
|
|
|
1,061
|
|
|
36,574
|
|
|||
Total comprehensive income
|
303,139
|
|
|
27,086
|
|
|
330,225
|
|
|||
Dividends declared
|
(90,495
|
)
|
|
—
|
|
|
(90,495
|
)
|
|||
Stock-based compensation
|
17,208
|
|
|
—
|
|
|
17,208
|
|
|||
Treasury shares acquired
|
(75,815
|
)
|
|
—
|
|
|
(75,815
|
)
|
|||
Other activity
|
10,976
|
|
|
(2,311
|
)
|
|
8,665
|
|
|||
Balance at Jun. 29, 2014
|
$
|
2,858,111
|
|
|
$
|
226,470
|
|
|
$
|
3,084,581
|
|
|
|
|
|
|
|
||||||
Balance at Dec. 30, 2012
|
$
|
2,350,614
|
|
|
$
|
189,298
|
|
|
$
|
2,539,912
|
|
Comprehensive income:
|
|
|
|
|
|
||||||
Net income
|
218,185
|
|
|
25,019
|
|
|
243,204
|
|
|||
Redeemable noncontrolling interests (income not available to shareholders)
|
—
|
|
|
(246
|
)
|
|
(246
|
)
|
|||
Other comprehensive income (loss)
|
1,370
|
|
|
(1,863
|
)
|
|
(493
|
)
|
|||
Total comprehensive income
|
219,555
|
|
|
22,910
|
|
|
242,465
|
|
|||
Dividends declared
|
(91,485
|
)
|
|
—
|
|
|
(91,485
|
)
|
|||
Stock-based compensation
|
15,877
|
|
|
—
|
|
|
15,877
|
|
|||
Treasury shares acquired
|
(41,385
|
)
|
|
—
|
|
|
(41,385
|
)
|
|||
Other activity
|
11,728
|
|
|
(744
|
)
|
|
10,984
|
|
|||
Balance at Jun. 30, 2013
|
$
|
2,464,904
|
|
|
$
|
211,464
|
|
|
$
|
2,676,368
|
|
In thousands
|
Retirement Plans
|
|
Foreign Currency Translation
|
|
Total
|
||||||
|
|
|
|
|
|
||||||
Thirteen Weeks:
|
|
|
|
|
|
||||||
Balance at Mar. 30, 2014
|
$
|
(899,026
|
)
|
|
$
|
431,830
|
|
|
$
|
(467,196
|
)
|
Other comprehensive income (loss) before reclassifications
|
(11,042
|
)
|
|
12,808
|
|
|
1,766
|
|
|||
Amounts reclassified from accumulated other comprehensive income (loss)
|
6,888
|
|
|
—
|
|
|
6,888
|
|
|||
Other comprehensive income (loss)
|
(4,154
|
)
|
|
12,808
|
|
|
8,654
|
|
|||
Balance at Jun. 29, 2014
|
$
|
(903,180
|
)
|
|
$
|
444,638
|
|
|
$
|
(458,542
|
)
|
|
|
|
|
|
|
||||||
Balance at Mar. 31, 2013
|
$
|
(1,094,870
|
)
|
|
$
|
385,536
|
|
|
$
|
(709,334
|
)
|
Other comprehensive income (loss) before reclassifications
|
(120
|
)
|
|
(287
|
)
|
|
(407
|
)
|
|||
Amounts reclassified from accumulated other comprehensive income (loss)
|
9,970
|
|
|
—
|
|
|
9,970
|
|
|||
Other comprehensive income (loss)
|
9,850
|
|
|
(287
|
)
|
|
9,563
|
|
|||
Balance at Jun. 30, 2013
|
$
|
(1,085,020
|
)
|
|
$
|
385,249
|
|
|
$
|
(699,771
|
)
|
|
|
|
|
|
|
||||||
Twenty-six Weeks:
|
|
|
|
|
|
||||||
Balance at Dec. 29, 2013
|
$
|
(921,232
|
)
|
|
$
|
427,177
|
|
|
$
|
(494,055
|
)
|
Other comprehensive income (loss) before reclassifications
|
4,062
|
|
|
17,461
|
|
|
21,523
|
|
|||
Amounts reclassified from accumulated other comprehensive income (loss)
|
13,990
|
|
|
—
|
|
|
13,990
|
|
|||
Other comprehensive income (loss)
|
18,052
|
|
|
17,461
|
|
|
35,513
|
|
|||
Balance at Jun. 29, 2014
|
$
|
(903,180
|
)
|
|
$
|
444,638
|
|
|
$
|
(458,542
|
)
|
|
|
|
|
|
|
||||||
Balance at Dec. 30, 2012
|
$
|
(1,119,263
|
)
|
|
$
|
418,122
|
|
|
$
|
(701,141
|
)
|
Other comprehensive income (loss) before reclassifications
|
14,577
|
|
|
(32,873
|
)
|
|
(18,296
|
)
|
|||
Amounts reclassified from accumulated other comprehensive income (loss)
|
19,666
|
|
|
—
|
|
|
19,666
|
|
|||
Other comprehensive income (loss)
|
34,243
|
|
|
(32,873
|
)
|
|
1,370
|
|
|||
Balance at Jun. 30, 2013
|
$
|
(1,085,020
|
)
|
|
$
|
385,249
|
|
|
$
|
(699,771
|
)
|
In thousands
|
Thirteen Weeks Ended
|
|
Twenty-six Weeks Ended
|
||||||||||||
|
Jun. 29, 2014
|
|
Jun. 30, 2013
|
|
Jun. 29, 2014
|
|
Jun. 30, 2013
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Amortization of prior service credit
|
$
|
(1,215
|
)
|
|
$
|
(384
|
)
|
|
$
|
(1,700
|
)
|
|
$
|
(806
|
)
|
Amortization of actuarial loss
|
11,798
|
|
|
16,275
|
|
|
23,233
|
|
|
32,135
|
|
||||
Total reclassifications, before tax
|
10,583
|
|
|
15,891
|
|
|
21,533
|
|
|
31,329
|
|
||||
Income tax effect
|
(3,695
|
)
|
|
(5,921
|
)
|
|
(7,543
|
)
|
|
(11,663
|
)
|
||||
Total reclassifications, net of tax
|
$
|
6,888
|
|
|
$
|
9,970
|
|
|
$
|
13,990
|
|
|
$
|
19,666
|
|
In thousands
|
Fair Value Measurements as of Jun. 29, 2014
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Employee compensation related investments
|
$
|
30,950
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
30,950
|
|
Sundry investments
|
36,024
|
|
|
—
|
|
|
—
|
|
|
36,024
|
|
||||
Total assets
|
$
|
66,974
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
66,974
|
|
|
|
|
|
|
|
|
|
||||||||
Contingent consideration payable
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,882
|
|
|
$
|
15,882
|
|
Total liabilities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,882
|
|
|
$
|
15,882
|
|
In thousands
|
Fair Value Measurements as of Dec. 29, 2013
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Employee compensation related investments
|
$
|
28,117
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28,117
|
|
Sundry investments
|
34,227
|
|
|
—
|
|
|
—
|
|
|
34,227
|
|
||||
Total assets
|
$
|
62,344
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
62,344
|
|
|
|
|
|
|
|
|
|
||||||||
Contingent consideration payable
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
32,267
|
|
|
$
|
32,267
|
|
Total liabilities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
32,267
|
|
|
$
|
32,267
|
|
In thousands
|
Thirteen Weeks Ended
|
|
Twenty-six Weeks Ended
|
||||||||||||
|
Jun. 29, 2014
|
|
Jun. 30, 2013
|
|
Jun. 29, 2014
|
|
Jun. 30, 2013
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net Operating Revenues:
|
|
|
|
|
|
|
|
||||||||
Broadcasting
|
$
|
398,258
|
|
|
$
|
211,962
|
|
|
$
|
780,526
|
|
|
$
|
403,542
|
|
Publishing
|
867,365
|
|
|
904,231
|
|
|
1,709,428
|
|
|
1,775,464
|
|
||||
Digital
|
194,381
|
|
|
186,506
|
|
|
374,116
|
|
|
361,428
|
|
||||
Total
|
$
|
1,460,004
|
|
|
$
|
1,302,699
|
|
|
$
|
2,864,070
|
|
|
$
|
2,540,434
|
|
|
|
|
|
|
|
|
|
||||||||
Operating Income (net of depreciation, amortization and facility consolidation charges and asset impairment charges):
|
|
|
|
|
|
|
|
||||||||
Broadcasting
|
$
|
171,322
|
|
|
$
|
98,092
|
|
|
$
|
325,871
|
|
|
$
|
181,768
|
|
Publishing
|
53,239
|
|
|
85,192
|
|
|
96,227
|
|
|
145,329
|
|
||||
Digital
|
35,695
|
|
|
35,277
|
|
|
59,519
|
|
|
58,881
|
|
||||
Corporate
|
(17,754
|
)
|
|
(15,679
|
)
|
|
(35,121
|
)
|
|
(32,039
|
)
|
||||
Total
|
$
|
242,502
|
|
|
$
|
202,882
|
|
|
$
|
446,496
|
|
|
$
|
353,939
|
|
|
|
|
|
|
|
|
|
||||||||
Depreciation, amortization and facility consolidation charges and asset impairment charges:
|
|
|
|
|
|
|
|
||||||||
Broadcasting
|
$
|
20,621
|
|
|
$
|
6,974
|
|
|
$
|
47,815
|
|
|
$
|
13,909
|
|
Publishing
|
53,123
|
|
|
31,415
|
|
|
89,714
|
|
|
63,651
|
|
||||
Digital
|
9,603
|
|
|
9,383
|
|
|
17,891
|
|
|
18,490
|
|
||||
Corporate
|
4,749
|
|
|
4,561
|
|
|
10,003
|
|
|
9,122
|
|
||||
Total
|
$
|
88,096
|
|
|
$
|
52,333
|
|
|
$
|
165,423
|
|
|
$
|
105,172
|
|
In thousands, except per share data
|
Thirteen Weeks Ended
|
|
Twenty-six Weeks Ended
|
||||||||||||
|
Jun. 29, 2014
|
|
Jun. 30, 2013
|
|
Jun. 29, 2014
|
|
Jun. 30, 2013
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Gannett Co., Inc.
|
$
|
208,467
|
|
|
$
|
113,620
|
|
|
$
|
267,626
|
|
|
$
|
218,185
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of common shares outstanding - basic
|
226,132
|
|
|
228,837
|
|
|
226,681
|
|
|
229,116
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
||||||||
Restricted stock
|
2,814
|
|
|
2,971
|
|
|
2,763
|
|
|
2,897
|
|
||||
Performance share units
|
2,212
|
|
|
1,734
|
|
|
1,725
|
|
|
1,797
|
|
||||
Stock options
|
948
|
|
|
1,094
|
|
|
1,018
|
|
|
1,056
|
|
||||
Weighted average number of common shares outstanding - diluted
|
232,106
|
|
|
234,636
|
|
|
232,187
|
|
|
234,866
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income per share - basic
|
$
|
0.92
|
|
|
$
|
0.50
|
|
|
$
|
1.18
|
|
|
$
|
0.95
|
|
Net income per share - diluted
|
$
|
0.90
|
|
|
$
|
0.48
|
|
|
$
|
1.15
|
|
|
$
|
0.93
|
|
In thousands
|
Second Quarter
|
|
Year-to-Date
|
||||||||||||||||||
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating revenues
|
$
|
398,258
|
|
|
$
|
211,962
|
|
|
88
|
%
|
|
$
|
780,526
|
|
|
$
|
403,542
|
|
|
93
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating expenses, exclusive of depreciation
|
206,315
|
|
|
106,896
|
|
|
93
|
%
|
|
406,840
|
|
|
207,865
|
|
|
96
|
%
|
||||
Depreciation
|
11,627
|
|
|
6,793
|
|
|
71
|
%
|
|
23,324
|
|
|
13,547
|
|
|
72
|
%
|
||||
Amortization
|
5,885
|
|
|
181
|
|
|
***
|
|
|
16,106
|
|
|
362
|
|
|
***
|
|
||||
Transformation costs
|
3,109
|
|
|
—
|
|
|
***
|
|
|
8,385
|
|
|
—
|
|
|
***
|
|
||||
Total operating expenses
|
226,936
|
|
|
113,870
|
|
|
99
|
%
|
|
454,655
|
|
|
221,774
|
|
|
***
|
|
||||
Operating income
|
$
|
171,322
|
|
|
$
|
98,092
|
|
|
75
|
%
|
|
$
|
325,871
|
|
|
$
|
181,768
|
|
|
79
|
%
|
In thousands
|
Second Quarter
|
|
Year-to-Date
|
||||||||||||||||||
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating revenues
|
$
|
867,365
|
|
|
$
|
904,231
|
|
|
(4
|
%)
|
|
$
|
1,709,428
|
|
|
$
|
1,775,464
|
|
|
(4
|
%)
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating expenses, exclusive of depreciation
|
761,003
|
|
|
787,624
|
|
|
(3
|
%)
|
|
1,523,487
|
|
|
1,566,484
|
|
|
(3
|
%)
|
||||
Depreciation
|
23,476
|
|
|
22,776
|
|
|
3
|
%
|
|
46,736
|
|
|
46,001
|
|
|
2
|
%
|
||||
Amortization
|
3,981
|
|
|
4,141
|
|
|
(4
|
%)
|
|
7,768
|
|
|
8,367
|
|
|
(7
|
%)
|
||||
Facility consolidation and asset impairment charges
|
25,666
|
|
|
4,498
|
|
|
***
|
|
|
35,210
|
|
|
9,283
|
|
|
***
|
|
||||
Total operating expenses
|
814,126
|
|
|
819,039
|
|
|
(1
|
%)
|
|
1,613,201
|
|
|
1,630,135
|
|
|
(1
|
%)
|
||||
Operating income
|
$
|
53,239
|
|
|
$
|
85,192
|
|
|
(38
|
%)
|
|
$
|
96,227
|
|
|
$
|
145,329
|
|
|
(34
|
%)
|
In thousands
|
Second Quarter
|
|
Year-to-Date
|
||||||||||||||||||
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Advertising
|
$
|
530,183
|
|
|
$
|
562,476
|
|
|
(6
|
%)
|
|
$
|
1,031,483
|
|
|
$
|
1,088,975
|
|
|
(5
|
%)
|
Circulation
|
277,851
|
|
|
279,655
|
|
|
(1
|
%)
|
|
559,927
|
|
|
565,627
|
|
|
(1
|
%)
|
||||
All other
|
59,331
|
|
|
62,100
|
|
|
(4
|
%)
|
|
118,018
|
|
|
120,862
|
|
|
(2
|
%)
|
||||
Total Publishing Segment revenues
|
$
|
867,365
|
|
|
$
|
904,231
|
|
|
(4
|
%)
|
|
$
|
1,709,428
|
|
|
$
|
1,775,464
|
|
|
(4
|
%)
|
In thousands
|
Second Quarter
|
|
Year-to-Date
|
||||||||||||||||||
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail
|
$
|
282,566
|
|
|
$
|
292,418
|
|
|
(3
|
%)
|
|
$
|
535,552
|
|
|
$
|
562,036
|
|
|
(5
|
%)
|
National
|
78,894
|
|
|
94,309
|
|
|
(16
|
%)
|
|
162,596
|
|
|
179,827
|
|
|
(10
|
%)
|
||||
Classified
|
168,723
|
|
|
175,749
|
|
|
(4
|
%)
|
|
333,335
|
|
|
347,112
|
|
|
(4
|
%)
|
||||
Total Publishing Segment advertising revenues
|
$
|
530,183
|
|
|
$
|
562,476
|
|
|
(6
|
%)
|
|
$
|
1,031,483
|
|
|
$
|
1,088,975
|
|
|
(5
|
%)
|
|
Second Quarter
|
|
Year-to-Date
|
||||||||||||||
|
U.S. Publishing
|
|
Newsquest (in pounds)
|
|
Total Publishing Segment
|
|
U.S. Publishing
|
|
Newsquest (in pounds)
|
|
Total Publishing Segment
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Retail
|
(5
|
%)
|
|
—
|
%
|
|
(3
|
%)
|
|
(6
|
%)
|
|
(2
|
%)
|
|
(5
|
%)
|
National
|
(19
|
%)
|
|
9
|
%
|
|
(16
|
%)
|
|
(11
|
%)
|
|
(4
|
%)
|
|
(10
|
%)
|
Classified
|
(5
|
%)
|
|
(2
|
%)
|
|
(2
|
%)
|
|
(6
|
%)
|
|
(3
|
%)
|
|
(3
|
%)
|
Total Publishing Segment advertising revenues
|
(7
|
%)
|
|
—
|
%
|
|
(5
|
%)
|
|
(7
|
%)
|
|
(3
|
%)
|
|
(5
|
%)
|
|
Second Quarter
|
|
Year-to-Date
|
||||||||||||||
|
U.S. Publishing
|
|
Newsquest (in pounds)
|
|
Total Publishing Segment
|
|
U.S. Publishing
|
|
Newsquest (in pounds)
|
|
Total Publishing Segment
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Automotive
|
(4
|
%)
|
|
(6
|
%)
|
|
(3
|
%)
|
|
(3
|
%)
|
|
(5
|
%)
|
|
(2
|
%)
|
Employment
|
(6
|
%)
|
|
9
|
%
|
|
1
|
%
|
|
(7
|
%)
|
|
7
|
%
|
|
0
|
%
|
Real Estate
|
(5
|
%)
|
|
(9
|
%)
|
|
(3
|
%)
|
|
(5
|
%)
|
|
(10
|
%)
|
|
(4
|
%)
|
Legal
|
(4
|
%)
|
|
—
|
%
|
|
(4
|
%)
|
|
(5
|
%)
|
|
—
|
%
|
|
(5
|
%)
|
Other
|
(8
|
%)
|
|
(4
|
%)
|
|
(4
|
%)
|
|
(9
|
%)
|
|
(6
|
%)
|
|
(6
|
%)
|
Total Publishing Segment classified revenue
|
(5
|
%)
|
|
(2
|
%)
|
|
(2
|
%)
|
|
(6
|
%)
|
|
(3
|
%)
|
|
(3
|
%)
|
In thousands
|
Second Quarter
|
|
Year-to-Date
|
||||||||||||||||||
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating revenues
|
$
|
194,381
|
|
|
$
|
186,506
|
|
|
4
|
%
|
|
$
|
374,116
|
|
|
$
|
361,428
|
|
|
4
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating expenses, exclusive of depreciation
|
149,083
|
|
|
141,846
|
|
|
5
|
%
|
|
296,706
|
|
|
284,057
|
|
|
4
|
%
|
||||
Depreciation
|
4,998
|
|
|
4,337
|
|
|
15
|
%
|
|
9,551
|
|
|
8,723
|
|
|
9
|
%
|
||||
Amortization
|
4,605
|
|
|
5,046
|
|
|
(9
|
%)
|
|
8,340
|
|
|
9,767
|
|
|
(15
|
%)
|
||||
Total operating expenses
|
158,686
|
|
|
151,229
|
|
|
5
|
%
|
|
314,597
|
|
|
302,547
|
|
|
4
|
%
|
||||
Operating income
|
$
|
35,695
|
|
|
$
|
35,277
|
|
|
1
|
%
|
|
$
|
59,519
|
|
|
$
|
58,881
|
|
|
1
|
%
|
•
|
Costs associated with workforce restructuring;
|
•
|
Transformation costs;
|
•
|
Non-cash asset impairment charges;
|
•
|
Equity income gain on the sale of Apartments.com by Classified Ventures;
|
•
|
Other non-operating item charges; and
|
•
|
Special tax charge.
|
•
|
Costs due to workforce restructuring;
|
•
|
Transformation costs;
|
•
|
Other non-operating item charges; and
|
•
|
Special tax benefit.
|
In thousands, except share data
|
Second Quarter
|
|
Year-to-Date
|
||||||||||||||||||
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating revenues
|
$
|
1,460,004
|
|
|
$
|
1,302,699
|
|
|
12
|
%
|
|
$
|
2,864,070
|
|
|
$
|
2,540,434
|
|
|
13
|
%
|
Adjusted operating expenses
|
1,165,810
|
|
|
1,073,592
|
|
|
9
|
%
|
|
2,343,117
|
|
|
2,150,119
|
|
|
9
|
%
|
||||
Adjusted operating income
|
$
|
294,194
|
|
|
$
|
229,107
|
|
|
28
|
%
|
|
$
|
520,953
|
|
|
$
|
390,315
|
|
|
33
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted net income attributable to Gannett Co., Inc.
|
$
|
154,649
|
|
|
$
|
135,124
|
|
|
14
|
%
|
|
$
|
263,073
|
|
|
$
|
221,168
|
|
|
19
|
%
|
Adjusted diluted earnings per share
|
$
|
0.67
|
|
|
$
|
0.58
|
|
|
16
|
%
|
|
$
|
1.13
|
|
|
$
|
0.94
|
|
|
20
|
%
|
In thousands
|
Second Quarter
|
|
Year-to-Date
|
||||||||||||||||||
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating expenses (GAAP basis)
|
$
|
1,217,502
|
|
|
$
|
1,099,817
|
|
|
11
|
%
|
|
$
|
2,417,574
|
|
|
$
|
2,186,495
|
|
|
11
|
%
|
Remove special items:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Workforce restructuring
|
(22,917
|
)
|
|
(21,727
|
)
|
|
5
|
%
|
|
(26,382
|
)
|
|
(27,093
|
)
|
|
(3
|
%)
|
||||
Transformation costs
|
(12,588
|
)
|
|
(4,498
|
)
|
|
***
|
|
|
(31,888
|
)
|
|
(9,283
|
)
|
|
***
|
|
||||
Asset impairment charges
|
(16,187
|
)
|
|
—
|
|
|
***
|
|
|
(16,187
|
)
|
|
—
|
|
|
***
|
|
||||
As adjusted (non-GAAP basis)
|
$
|
1,165,810
|
|
|
$
|
1,073,592
|
|
|
9
|
%
|
|
$
|
2,343,117
|
|
|
$
|
2,150,119
|
|
|
9
|
%
|
In thousands
|
Second Quarter
|
|
Year-to-Date
|
||||||||||||||||||
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income (GAAP basis)
|
$
|
242,502
|
|
|
$
|
202,882
|
|
|
20
|
%
|
|
$
|
446,496
|
|
|
$
|
353,939
|
|
|
26
|
%
|
Remove special items:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Workforce restructuring
|
22,917
|
|
|
21,727
|
|
|
5
|
%
|
|
26,382
|
|
|
27,093
|
|
|
(3
|
%)
|
||||
Transformation costs
|
12,588
|
|
|
4,498
|
|
|
***
|
|
|
31,888
|
|
|
9,283
|
|
|
***
|
|
||||
Asset impairment charges
|
16,187
|
|
|
—
|
|
|
***
|
|
|
16,187
|
|
|
—
|
|
|
***
|
|
||||
As adjusted (non-GAAP basis)
|
$
|
294,194
|
|
|
$
|
229,107
|
|
|
28
|
%
|
|
$
|
520,953
|
|
|
$
|
390,315
|
|
|
33
|
%
|
In thousands
|
Second Quarter
|
|
Year-to-Date
|
||||||||||||||||||
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to Gannett Co., Inc. (GAAP basis)
|
$
|
208,467
|
|
|
$
|
113,620
|
|
|
83
|
%
|
|
$
|
267,626
|
|
|
$
|
218,185
|
|
|
23
|
%
|
Net income attributable to noncontrolling interests
|
17,445
|
|
|
13,121
|
|
|
33
|
%
|
|
27,875
|
|
|
25,019
|
|
|
11
|
%
|
||||
Provision for income taxes
|
106,000
|
|
|
39,600
|
|
|
***
|
|
|
158,500
|
|
|
45,000
|
|
|
***
|
|
||||
Interest expense
|
64,148
|
|
|
36,174
|
|
|
77
|
%
|
|
133,796
|
|
|
71,579
|
|
|
87
|
%
|
||||
Equity income in unconsolidated investees, net
|
(156,540
|
)
|
|
(9,424
|
)
|
|
***
|
|
|
(165,031
|
)
|
|
(17,218
|
)
|
|
***
|
|
||||
Other non-operating items
|
2,982
|
|
|
9,791
|
|
|
(70
|
%)
|
|
23,730
|
|
|
11,374
|
|
|
***
|
|
||||
Operating income (GAAP basis)
|
242,502
|
|
|
202,882
|
|
|
20
|
%
|
|
446,496
|
|
|
353,939
|
|
|
26
|
%
|
||||
Workforce restructuring
|
22,917
|
|
|
21,727
|
|
|
5
|
%
|
|
26,382
|
|
|
27,093
|
|
|
(3
|
%)
|
||||
Transformation costs
|
12,588
|
|
|
4,498
|
|
|
***
|
|
|
31,888
|
|
|
9,283
|
|
|
***
|
|
||||
Asset impairment charges
|
16,187
|
|
|
—
|
|
|
***
|
|
|
16,187
|
|
|
—
|
|
|
***
|
|
||||
Adjusted operating income (non-GAAP basis)
|
294,194
|
|
|
229,107
|
|
|
28
|
%
|
|
520,953
|
|
|
390,315
|
|
|
33
|
%
|
||||
Depreciation
|
44,850
|
|
|
38,467
|
|
|
17
|
%
|
|
89,614
|
|
|
77,393
|
|
|
16
|
%
|
||||
Adjusted amortization (non-GAAP basis)
|
14,471
|
|
|
9,368
|
|
|
54
|
%
|
|
27,734
|
|
|
18,496
|
|
|
50
|
%
|
||||
Adjusted EBITDA (non-GAAP basis)
|
$
|
353,515
|
|
|
$
|
276,942
|
|
|
28
|
%
|
|
$
|
638,301
|
|
|
$
|
486,204
|
|
|
31
|
%
|
In thousands
|
Second Quarter
|
|
Year-to-Date
|
||||||||||||||||||
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Broadcasting Segment operating expenses (GAAP basis)
|
$
|
226,936
|
|
|
$
|
113,870
|
|
|
99
|
%
|
|
$
|
454,655
|
|
|
$
|
221,774
|
|
|
***
|
|
Remove special items:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Workforce Restructuring
|
(2,220
|
)
|
|
—
|
|
|
***
|
|
|
(2,220
|
)
|
|
—
|
|
|
***
|
|
||||
Transformation costs
|
(3,109
|
)
|
|
—
|
|
|
***
|
|
|
(12,865
|
)
|
|
—
|
|
|
***
|
|
||||
As adjusted (non-GAAP basis)
|
$
|
221,607
|
|
|
$
|
113,870
|
|
|
95
|
%
|
|
$
|
439,570
|
|
|
$
|
221,774
|
|
|
98
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Broadcasting Segment operating income (GAAP basis)
|
$
|
171,322
|
|
|
$
|
98,092
|
|
|
75
|
%
|
|
$
|
325,871
|
|
|
$
|
181,768
|
|
|
79
|
%
|
Remove special items:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Workforce Restructuring
|
2,220
|
|
|
—
|
|
|
***
|
|
|
2,220
|
|
|
—
|
|
|
***
|
|
||||
Transformation costs
|
3,109
|
|
|
—
|
|
|
***
|
|
|
12,865
|
|
|
—
|
|
|
***
|
|
||||
As adjusted (non-GAAP basis)
|
$
|
176,651
|
|
|
$
|
98,092
|
|
|
80
|
%
|
|
$
|
340,956
|
|
|
$
|
181,768
|
|
|
88
|
%
|
In thousands
|
Second Quarter
|
|
Year-to-Date
|
||||||||||||||||||
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Publishing Segment operating expenses (GAAP basis)
|
$
|
814,126
|
|
|
$
|
819,039
|
|
|
(1
|
%)
|
|
$
|
1,613,201
|
|
|
$
|
1,630,135
|
|
|
(1
|
%)
|
Remove special items:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Workforce restructuring
|
(20,697
|
)
|
|
(21,727
|
)
|
|
(5
|
%)
|
|
(24,162
|
)
|
|
(27,093
|
)
|
|
(11
|
%)
|
||||
Transformation costs
|
(9,479
|
)
|
|
(4,498
|
)
|
|
***
|
|
|
(19,023
|
)
|
|
(9,283
|
)
|
|
***
|
|
||||
Asset impairment charges
|
(16,187
|
)
|
|
—
|
|
|
***
|
|
|
(16,187
|
)
|
|
—
|
|
|
***
|
|
||||
As adjusted (non-GAAP basis)
|
$
|
767,763
|
|
|
$
|
792,814
|
|
|
(3
|
%)
|
|
$
|
1,553,829
|
|
|
$
|
1,593,759
|
|
|
(3
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Publishing Segment operating income (GAAP basis)
|
$
|
53,239
|
|
|
$
|
85,192
|
|
|
(38
|
%)
|
|
$
|
96,227
|
|
|
$
|
145,329
|
|
|
(34
|
%)
|
Remove special items:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Workforce restructuring
|
20,697
|
|
|
21,727
|
|
|
(5
|
%)
|
|
24,162
|
|
|
27,093
|
|
|
(11
|
%)
|
||||
Transformation costs
|
9,479
|
|
|
4,498
|
|
|
***
|
|
|
19,023
|
|
|
9,283
|
|
|
***
|
|
||||
Asset impairment charges
|
16,187
|
|
|
—
|
|
|
***
|
|
|
16,187
|
|
|
—
|
|
|
***
|
|
||||
As adjusted (non-GAAP basis)
|
$
|
99,602
|
|
|
$
|
111,417
|
|
|
(11
|
%)
|
|
$
|
155,599
|
|
|
$
|
181,705
|
|
|
(14
|
%)
|
In thousands
|
Second Quarter
|
|
Year-to-Date
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Income before income taxes as reported
|
$
|
331,912
|
|
|
$
|
166,341
|
|
|
$
|
454,001
|
|
|
$
|
288,204
|
|
Net income attributable to noncontrolling interests
|
(17,445
|
)
|
|
(13,121
|
)
|
|
(27,875
|
)
|
|
(25,019
|
)
|
||||
Gannett pretax income (GAAP basis)
|
314,467
|
|
|
153,220
|
|
|
426,126
|
|
|
263,185
|
|
||||
Remove special items:
|
|
|
|
|
|
|
|
||||||||
Workforce restructuring
|
22,917
|
|
|
21,727
|
|
|
26,382
|
|
|
27,093
|
|
||||
Transformation costs
|
12,588
|
|
|
4,498
|
|
|
31,888
|
|
|
9,283
|
|
||||
Asset impairment
|
16,187
|
|
|
—
|
|
|
16,187
|
|
|
—
|
|
||||
Non-operating items
|
(143,510
|
)
|
|
9,479
|
|
|
(123,110
|
)
|
|
13,207
|
|
||||
As adjusted (non-GAAP basis)
|
$
|
222,649
|
|
|
$
|
188,924
|
|
|
$
|
377,473
|
|
|
$
|
312,768
|
|
|
|
|
|
|
|
|
|
||||||||
Provision for income taxes as reported (GAAP basis)
|
$
|
106,000
|
|
|
$
|
39,600
|
|
|
$
|
158,500
|
|
|
$
|
45,000
|
|
Remove special items:
|
|
|
|
|
|
|
|
||||||||
Workforce restructuring
|
8,600
|
|
|
8,600
|
|
|
9,800
|
|
|
10,700
|
|
||||
Transformation costs
|
4,900
|
|
|
1,800
|
|
|
13,100
|
|
|
3,700
|
|
||||
Asset impairment
|
800
|
|
|
—
|
|
|
800
|
|
|
—
|
|
||||
Non-operating items
|
(52,300
|
)
|
|
3,800
|
|
|
(44,000
|
)
|
|
4,400
|
|
||||
Special tax (charge)/benefit
|
—
|
|
|
—
|
|
|
(23,800
|
)
|
|
27,800
|
|
||||
As adjusted (non-GAAP basis)
|
$
|
68,000
|
|
|
$
|
53,800
|
|
|
$
|
114,400
|
|
|
$
|
91,600
|
|
|
|
|
|
|
|
|
|
||||||||
Effective tax rate (GAAP basis)
|
33.7
|
%
|
|
25.8
|
%
|
|
37.2
|
%
|
|
17.1
|
%
|
||||
As adjusted effective tax rate (non-GAAP basis)
|
30.5
|
%
|
|
28.5
|
%
|
|
30.3
|
%
|
|
29.3
|
%
|
•
|
Broadcasting Segment Revenues and Expenses
- Broadcasting Segment revenues will increase substantially throughout 2014 due to the expanded broadcasting portfolio, a substantial increase in political advertising, higher retransmission revenue and digital revenue growth. Broadcasting Segment expenses will increase with the expanded portfolio as well as from increases in reverse network compensation and investments in digital initiatives. Based on current trends and including results for the former Belo stations, we expect the increase in total television revenues for the third quarter of 2014 on a percentage basis to be in the high nineties compared to the third quarter of 2013. On a pro forma basis, the percentage increase in total television revenues in the third quarter of 2014 is projected to be up in the high teens compared to the third quarter of 2013.
|
•
|
Classified Ventures Apartments.com Sale
- On April, 1, 2014, Classified Ventures, LLC completed the sale of Apartments.com for $585 million to CoStar Group Inc. Our portion of the purchase price of Apartments.com was approximately $155 million reflecting our 26.9% ownership interest in Classified Ventures. Taxes associated with the sale will be approximately $43 million. The sale of Apartments.com will have a slight impact on our Publishing Segment going forward. We expect revenues to be reduced by $8 million and operating income to be lower by $6 million through the last six months of 2014, with expected third quarter operating income to be lower by $3 million. Our equity income will be reduced by approximately $4 million for the last six months of 2014 as a result of the sale of Apartments.com.
|
•
|
Interest Expense
- We expect our interest expense to be up significantly in the third quarter 2014, reflecting the full year impact of debt issued in the second half of 2013 to acquire Belo. This increase will be partially offset by the early redemption of our 9.375% notes due in 2017 in March of 2014. The early redemption of these notes will save us approximately $12 million in interest expense for the last six months of 2014.
|
•
|
Income Taxes
- For the full year 2014, we are expecting our non-GAAP tax rate to be 31%-32%.
|
•
|
Foreign Currency
- Our U.K. publishing operations are conducted through its Newsquest subsidiary. Newsquest earnings are translated at the average British pound-to-U.S. dollar exchange rate. Therefore, a strengthening in the exchange rate will improve Newsquest revenue and earnings contributions to consolidated results. A weakening of the rate will have a negative impact. Newsquest results for 2013 were translated from the British pound sterling to U.S. dollars at an average rate of 1.55. By comparison, Newsquest results for the first six months of 2014 were translated into U.S. dollars at an average rate of 1.67.
|
In thousands
|
Second Quarter
|
|
Year-to-Date
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net cash flow from operating activities
|
$
|
188,937
|
|
|
$
|
187,658
|
|
|
$
|
354,939
|
|
|
$
|
223,941
|
|
Purchase of property, plant and equipment
|
(35,054
|
)
|
|
(32,801
|
)
|
|
(56,905
|
)
|
|
(48,898
|
)
|
||||
Voluntary pension employer contributions
|
—
|
|
|
—
|
|
|
—
|
|
|
15,507
|
|
||||
Tax benefit for voluntary pension employer contributions
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,125
|
)
|
||||
Payments for investments
|
(4,318
|
)
|
|
(1,378
|
)
|
|
(5,318
|
)
|
|
(2,379
|
)
|
||||
Proceeds from investments
|
157,556
|
|
|
19,305
|
|
|
163,315
|
|
|
29,365
|
|
||||
Free cash flow
|
$
|
307,121
|
|
|
$
|
172,784
|
|
|
$
|
456,031
|
|
|
$
|
211,411
|
|
Period
|
|
(a) Total Number of Shares Purchased
|
|
(b) Average Price Paid per Share
|
|
(c) Total Number of Shares Purchased as Part of Publicly Announced Program
|
|
(d) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program
|
||||||
|
|
|
|
|
|
|
|
|
||||||
3/31/14 – 5/4/14
|
|
455,384
|
|
|
$
|
27.17
|
|
|
455,384
|
|
|
$
|
174,435,650
|
|
5/5/14 – 6/1/14
|
|
589,555
|
|
|
$
|
27.37
|
|
|
589,555
|
|
|
$
|
158,300,403
|
|
6/2/14 – 6/29/14
|
|
327,000
|
|
|
$
|
28.65
|
|
|
327,000
|
|
|
$
|
148,931,803
|
|
Total 2nd Quarter 2014
|
|
1,371,939
|
|
|
$
|
27.61
|
|
|
1,371,939
|
|
|
$
|
148,931,803
|
|
Date: July 30, 2014
|
GANNETT CO., INC.
|
|
|
|
/s/ Teresa S. Gendron
|
|
Teresa S. Gendron
|
|
Vice President and Controller
|
|
(on behalf of Registrant and as Chief Accounting Officer)
|
Exhibit
Number
|
|
Exhibit
|
|
Location
|
|
|
|
|
|
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 10-Q for the fiscal quarter ended March 31, 2013.
|
|
|
|
|
|
4-1
|
|
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
|
|
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., JPMorgan Chase Bank N.A., as administrative agent, and the several banks and other financial institutions from time to time parties thereto.
|
|
Attached.
|
|
|
|
|
|
31-1
|
|
Rule 13a-14(a) Certification of CEO.
|
|
Attached.
|
|
|
|
|
|
31-2
|
|
Rule 13a-14(a) Certification of CFO.
|
|
Attached.
|
|
|
|
|
|
32-1
|
|
Section 1350 Certification of CEO.
|
|
Attached.
|
|
|
|
|
|
32-2
|
|
Section 1350 Certification of CFO.
|
|
Attached.
|
|
|
|
|
|
101
|
|
The following financial information from Gannett Co., Inc. Quarterly Report on Form 10-Q for the quarter ended June 29, 2014, formatted in XBRL includes: (i) Condensed Consolidated Balance Sheets at June 29, 2014 and December 29, 2013, (ii) Condensed Consolidated Statements of Income for the fiscal quarter and year-to-date periods ended June 29, 2014 and June 30, 2013, (iii) Condensed Consolidated Statements of Comprehensive Income for the fiscal quarter and year-to-date periods ended June 29, 2014 and June 30, 2013, (iv) Condensed Consolidated Cash Flow Statements for the fiscal year-to-date periods ended June 29, 2014 and June 30, 2013, and (v) the Notes to Condensed Consolidated Financial Statements.
|
|
Attached.
|
1.
|
The Lender party hereto agrees to provide commitments in the form of an increase in the existing Five-Year Facility in the amount set forth under such Lender’s name on the signature page hereof under the caption “Increase in Five-Year Commitments”.
|
2.
|
The Facility to be increased is the Five-Year Facility.
|
3.
|
The Incremental Facility Closing Date is May 5, 2014.
|
4.
|
The aggregate principal amount of the Incremental Facility contemplated hereby is $108,500,000.
|
5.
|
The Incremental Facility Maturity Date for the Incremental Facility contemplated hereby is the 2018 Extended Termination Date.
|
6.
|
The Applicable Margin for the Incremental Facility shall be the same as the Applicable Margin for the Five-Year Facility. The Commitment Fees shall be paid in respect of the increased Five-Year Facility in the same manner as the existing Five-Year Facility.
|
7.
|
The agreement of the Lender party hereto to make available an Incremental Facility on the Increased Facility Closing Date is subject to the satisfaction of the following conditions precedent:
|
(a)
|
The Administrative Agent shall have received this notice, executed and delivered by Gannett and the Lender party hereto.
|
(b)
|
In the case of Incremental Loans that are an increase of an existing Facility, such Incremental Loans shall have the same terms as the existing Loans under such Facility in all respects.
|
(c)
|
After giving effect to the making of the Incremental Facility contemplated hereby on the Increased Facility Closing Date, (i) each of the representations and warranties made by any Loan Party in or pursuant to the Loan Documents shall be true and correct in all material respects on and as of such date as if made on and as of such date, except for representations and warranties made as of a specific earlier date that shall be true and correct in all material respects as of such date, and (ii) no Default or Event of Default shall have occurred and be continuing.
|
I,
|
Gracia C. Martore, certify that:
|
1.
|
I have reviewed this quarterly report on Form 10-Q 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.
|
Date: July 30, 2014
|
|
/s/ Gracia C. Martore
|
Gracia C. Martore
|
President and Chief Executive Officer
|
(principal executive officer)
|
I,
|
Victoria D. Harker, certify that:
|
1.
|
I have reviewed this quarterly report on Form 10-Q 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.
|
Date: July 30, 2014
|
|
/s/ Victoria D. Harker
|
Victoria D. Harker
|
Chief Financial Officer (principal financial officer)
|
(1)
|
the Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Gannett.
|
/s/ Gracia C. Martore
|
Gracia C. Martore
|
President and Chief Executive Officer
|
(principal executive officer)
|
July 30, 2014
|
(1)
|
the Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Gannett.
|
/s/ Victoria D. Harker
|
Victoria D. Harker
|
Chief Financial Officer (principal financial officer)
|
July 30, 2014
|