☒ | ANNUAL 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 | 38-3910250 | |||||||||||||
(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) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||
Common Stock, par value $0.01 per share | GCI | The New York Stock Exchange | ||||||
Preferred Stock Purchase Rights | N/A | The New York Stock Exchange |
Large accelerated filer |
☐
|
Accelerated filer |
☒
|
Non-accelerated filer |
☐
|
Smaller reporting company |
☐
|
||||||||||||||||
Emerging growth company |
☐
|
Page | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 1B. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Item 7. | ||||||||
Item 7A. | ||||||||
Item 8. | ||||||||
Item 9. | ||||||||
Item 9A. | ||||||||
Item 9B. | ||||||||
Item 10. | ||||||||
Item 11. | ||||||||
Item 12. | ||||||||
Item 13. | ||||||||
Item 14. | ||||||||
Item 15. | ||||||||
Item 16. |
Daily Newspapers | Weekly Newspapers | Shoppers | Niche Publications | |||||||||||||||||||||||
Cost: | Paid | Paid and free | Paid and free | Paid and free | ||||||||||||||||||||||
Distribution: | Distributed four to seven days per week | Distributed one to three days per week | Distributed weekly | Distributed on a weekly, bi-weekly, monthly, quarterly, or annual basis | ||||||||||||||||||||||
Format: | Printed on newsprint, folded | Printed on newsprint, folded | Printed on newsprint, folded, or booklet | Printed on newsprint or glossy, folded, booklet, magazine, or book | ||||||||||||||||||||||
Content: | Editorial (local news and coverage of community events, some national headlines) and ads (including classifieds) | Editorial (local news and coverage of community events, some national headlines for smaller markets which cannot support a daily newspaper) and ads (including classifieds) | Almost 100% ads, primarily classifieds, display, and inserts | Niche content and targeted ads (e.g., city guides, tourism guides, directories, and calendars) | ||||||||||||||||||||||
Income: | Revenue from advertisers, subscribers, rack/box sales |
Paid: Revenue from advertising, subscribers, rack/box sales
Free: Advertising revenue only, provide 100% market coverage |
Paid: Revenue from advertising, rack/box sales
Free: Advertising revenue only, provide 100% market coverage |
Paid: Revenue from advertising, rack/box sales
Free: Advertising revenue only |
||||||||||||||||||||||
Internet Availability: | Maintain locally oriented websites, mobile sites, and mobile apps for most locations | Major publications maintain locally oriented websites and mobile sites for select locations | Major publications maintain locally oriented websites | Selectively available online |
LOCAL PROPERTY NETWORK MEDIA ORGANIZATIONS | ||||||||||||||||||||
Publications | Production Facilities | |||||||||||||||||||
State / Territory | Dailies | Weeklies | ||||||||||||||||||
Alabama | 3 | 1 | 1 | |||||||||||||||||
Arizona | 1 | — | 1 | |||||||||||||||||
Arkansas | 2 | 5 | — | |||||||||||||||||
California | 8 | 9 | 1 | |||||||||||||||||
Colorado | 3 | 5 | 1 | |||||||||||||||||
Connecticut | 1 | — | — | |||||||||||||||||
Delaware | 1 | 4 | 1 | |||||||||||||||||
Florida | 19 | 10 | 5 | |||||||||||||||||
Georgia | 3 | 7 | 1 | |||||||||||||||||
Guam | 1 | — | 1 | |||||||||||||||||
Illinois | 11 | 12 | 1 | |||||||||||||||||
Indiana | 10 | 7 | 2 | |||||||||||||||||
Iowa | 5 | 9 | 1 | |||||||||||||||||
Kansas | 10 | 10 | 1 | |||||||||||||||||
Kentucky | 2 | — | 1 | |||||||||||||||||
Louisiana | 7 | 5 | — | |||||||||||||||||
Maine | — | 2 | — | |||||||||||||||||
Maryland | 2 | 1 | — | |||||||||||||||||
Massachusetts | 10 | 77 | 1 | |||||||||||||||||
Michigan | 15 | 13 | 1 | |||||||||||||||||
Minnesota | 2 | 7 | — | |||||||||||||||||
Mississippi | 2 | 1 | 1 | |||||||||||||||||
Missouri | 7 | 10 | 1 | |||||||||||||||||
Montana | 1 | — | — | |||||||||||||||||
Nebraska | — | 2 | — | |||||||||||||||||
Nevada | 1 | 1 | — | |||||||||||||||||
New Hampshire | 2 | 3 | 1 | |||||||||||||||||
New Jersey | 9 | 11 | 2 | |||||||||||||||||
New Mexico | 6 | — | 1 | |||||||||||||||||
New York | 12 | 13 | 1 | |||||||||||||||||
North Carolina | 12 | 4 | 2 | |||||||||||||||||
North Dakota | 1 | — | 1 | |||||||||||||||||
Ohio | 21 | 35 | 2 | |||||||||||||||||
Oklahoma | 5 | 3 | 2 | |||||||||||||||||
Oregon | 2 | 2 | 1 | |||||||||||||||||
Pennsylvania | 13 | 2 | — | |||||||||||||||||
Rhode Island | 2 | — | 1 | |||||||||||||||||
South Carolina | 3 | 4 | — | |||||||||||||||||
South Dakota | 3 | 3 | 1 | |||||||||||||||||
Tennessee | 8 | 6 | 2 | |||||||||||||||||
Texas | 9 | 18 | 4 | |||||||||||||||||
Utah | 1 | — | — | |||||||||||||||||
Vermont | 1 | — | — | |||||||||||||||||
Virginia | 2 | — | — | |||||||||||||||||
Washington | 1 | — | — | |||||||||||||||||
West Virginia | 1 | 2 | — | |||||||||||||||||
Wisconsin | 11 | 4 | 2 | |||||||||||||||||
Total | 252 | 308 | 45 |
Combined Average Circulation | ||||||||||||||||||||||||||
Title | Related Website(s) | Location |
Daily(1)
|
Sunday(1)
|
||||||||||||||||||||||
USA TODAY | www.usatoday.com | McLean, Virginia | 1,064,666 | 802,678 | ||||||||||||||||||||||
Detroit Free Press | www.freep.com | Detroit, Michigan | 113,233 | 908,802 | ||||||||||||||||||||||
The Columbus Dispatch | www.dispatch.com | Columbus, Ohio | 112,739 | 114,954 | ||||||||||||||||||||||
The Arizona Republic | www.azcentral.com | Phoenix, Arizona | 116,665 | 337,863 | ||||||||||||||||||||||
Milwaukee Journal Sentinel | www.jsonline.com | Milwaukee, Wisconsin | 83,628 | 129,887 | ||||||||||||||||||||||
The Oklahoman | www.oklahoman.com | Oklahoma City, Oklahoma | 56,256 | 60,857 | ||||||||||||||||||||||
The Indianapolis Star | www.indystar.com | Indianapolis, Indiana | 63,328 | 160,031 | ||||||||||||||||||||||
The Cincinnati Enquirer | www.cincinnati.com | Cincinnati, Ohio | 57,396 | 107,537 | ||||||||||||||||||||||
The Courier-Journal | www.courier-journal.com | Louisville, Kentucky | 52,299 | 127,833 | ||||||||||||||||||||||
The Austin American-Statesman | www.statesman.com | Austin, Texas | 52,863 | 78,039 | ||||||||||||||||||||||
The Record | www.northjersey.com | Bergen, New Jersey | 47,004 | 62,057 | ||||||||||||||||||||||
The Des Moines Register | www.desmoinesregister.com | Des Moines, Iowa | 45,206 | 98,676 | ||||||||||||||||||||||
Democrat and Chronicle | www.democratandchronicle.com | Rochester, New York | 46,213 | 81,574 | ||||||||||||||||||||||
The Akron Beacon Journal | www.beaconjournal.com | Akron, Ohio | 43,068 | 54,210 | ||||||||||||||||||||||
The Providence Journal | www.providencejournal.com | Providence, Rhode Island | 40,755 | 49,190 | ||||||||||||||||||||||
The Tennessean | www.tennessean.com | Nashville, Tennessee | 38,738 | 112,382 |
DAILY PAID-FOR LOCAL MEDIA ORGANIZATIONS AND AFFILIATED DIGITAL PLATFORMS / NEWSQUEST | ||||||||||||||||||||
Title | Related Website(s) | Location |
Circulation
Monday - Saturday |
|||||||||||||||||
Basildon & Southend Echo | www.echo-news.co.uk | Basildon, Southend on Sea | 14,392 | |||||||||||||||||
Bolton News | www.theboltonnews.co.uk | Bolton | 6,517 | |||||||||||||||||
Bournemouth - The Daily Echo | www.bournemouthecho.co.uk | Bournemouth | 9,589 | |||||||||||||||||
Bradford Telegraph & Argus | www.thetelegraphandargus.co.uk | Bradford | 8,944 | |||||||||||||||||
Colchester Daily Gazette | www.gazette-news.co.uk | Colchester | 6,715 | |||||||||||||||||
Dorset Echo | www.dorsetecho.co.uk | Dorset | 6,983 | |||||||||||||||||
Glasgow - Evening Times(1)
|
www.eveningtimes.co.uk | Glasgow | 15,672 | |||||||||||||||||
Greenock Telegraph(1)
|
www.greenocktelegraph.co.uk | Greenock | 7,644 | |||||||||||||||||
Lancashire Telegraph | www.lancashiretelegraph.co.uk | Blackburn, Burnley | 5,733 | |||||||||||||||||
Oxford Mail | www.oxfordmail.co.uk | Oxford | 7,465 | |||||||||||||||||
South Wales Argus - Newport | www.southwalesargus.co.uk | Newport | 7,312 | |||||||||||||||||
Southampton - Southern Daily Echo | www.dailyecho.co.uk | Southampton | 11,206 | |||||||||||||||||
Swindon Advertiser | www.swindonadvertiser.co.uk | Swindon | 6,859 | |||||||||||||||||
The Argus Brighton | www.theargus.co.uk | Brighton | 8,948 | |||||||||||||||||
The Herald, Scotland(1)
|
www.heraldscotland.co.uk | Glasgow, Edinburgh | 22,415 | |||||||||||||||||
The National, Scotland(1)
|
www.thenational.scot | Glasgow, Edinburgh | 9,983 | |||||||||||||||||
The Northern Echo | www.thisisthenortheast.co.uk | Darlington | 16,212 | |||||||||||||||||
The Press - York | www.yorkpress.co.uk | York | 9,792 | |||||||||||||||||
Worcester News | www.worcesternews.co.uk | Worcester | 5,090 | |||||||||||||||||
The Leader | www.leaderlive.co.uk | Wrexham | 5,584 | |||||||||||||||||
The Mail | www.nwemail.co.uk | Cumbria | 4,254 | |||||||||||||||||
News & Star | www.newsandstar.co.uk | Carlisle | 5,131 |
Year ended December 31, | |||||||||||||||||||||||
In thousands, except per share amounts | 2020 | 2019 | Change | % Change | |||||||||||||||||||
Operating revenues: | |||||||||||||||||||||||
Publishing | $ | 3,080,447 | $ | 1,792,652 | $ | 1,287,795 | 72 | % | |||||||||||||||
Digital Marketing Solutions | 428,605 | 149,242 | 279,363 | *** | |||||||||||||||||||
Corporate and other | 10,960 | 4,554 | 6,406 | *** | |||||||||||||||||||
Intersegment eliminations | (114,342) | (78,539) | (35,803) | 46 | % | ||||||||||||||||||
Total operating revenues | 3,405,670 | 1,867,909 | 1,537,761 | 82 | % | ||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Publishing | 3,268,911 | 1,772,323 | 1,496,588 | 84 | % | ||||||||||||||||||
Digital Marketing Solutions | 481,177 | 164,023 | 317,154 | *** | |||||||||||||||||||
Corporate and other | 217,812 | 157,079 | 60,733 | 39 | % | ||||||||||||||||||
Intersegment eliminations | (114,342) | (78,539) | (35,803) | 46 | % | ||||||||||||||||||
Total operating expenses | 3,853,558 | 2,014,886 | 1,838,672 | 91 | % | ||||||||||||||||||
Operating income (loss) | (447,888) | (146,977) | (300,911) | *** | |||||||||||||||||||
Non-operating (income) expense | 257,959 | 60,207 | 197,752 | *** | |||||||||||||||||||
Income (loss) before income taxes | (705,847) | (207,184) | (498,663) | *** | |||||||||||||||||||
Provision (benefit) for income taxes | (33,450) | (85,994) | 52,544 | (61 | %) | ||||||||||||||||||
Net income (loss) | $ | (672,397) | $ | (121,190) | $ | (551,207) | *** | ||||||||||||||||
Net loss attributable to redeemable noncontrolling interests | (1,918) | (1,348) | (570) | 42 | % | ||||||||||||||||||
Net income (loss) attributable to Gannett | $ | (670,479) | $ | (119,842) | $ | (550,637) | *** | ||||||||||||||||
Earnings (loss) per share attributable to Gannett - basic | $ | (5.09) | $ | (1.77) | $ | (3.32) | *** | ||||||||||||||||
Earnings (loss) per share attributable to Gannett - diluted | $ | (5.09) | $ | (1.77) | $ | (3.32) | *** |
Year ended December 31, | |||||||||||
In thousands | 2020 | 2019 | |||||||||
Income (loss) before income taxes | $ | (705,847) | $ | (207,184) | |||||||
Provision (benefit) for income taxes | (33,450) | (85,994) | |||||||||
Effective tax rate | 4.7 | % | 41.5 | % |
Year ended December 31, | |||||||||||||||||||||||
In thousands | 2020 | 2019 | Change | % Change | |||||||||||||||||||
Operating revenues: | |||||||||||||||||||||||
Advertising and marketing services | $ | 1,409,500 | $ | 897,585 | $ | 511,915 | 57 | % | |||||||||||||||
Circulation | 1,391,983 | 704,811 | 687,172 | 97 | % | ||||||||||||||||||
Other | 278,964 | 190,256 | 88,708 | 47 | % | ||||||||||||||||||
Total operating revenues | 3,080,447 | 1,792,652 | 1,287,795 | 72 | % | ||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Operating costs | 1,842,825 | 1,045,807 | 797,018 | 76 | % | ||||||||||||||||||
Selling, general and administrative expenses | 787,770 | 493,360 | 294,410 | 60 | % | ||||||||||||||||||
Depreciation and amortization | 221,746 | 101,881 | 119,865 | *** | |||||||||||||||||||
Integration and reorganization costs | 60,852 | 23,487 | 37,365 | *** | |||||||||||||||||||
Asset impairments | 10,312 | 3,009 | 7,303 | *** | |||||||||||||||||||
Goodwill and intangible impairments | 352,947 | 100,743 | 252,204 | *** | |||||||||||||||||||
Net (gain) loss on sale or disposal of assets | (7,541) | 4,036 | (11,577) | *** | |||||||||||||||||||
Total operating expenses | 3,268,911 | 1,772,323 | 1,496,588 | 84 | % | ||||||||||||||||||
Operating income (loss) | $ | (188,464) | $ | 20,329 | $ | (208,793) | *** |
Year ended December 31, | |||||||||||||||||||||||
In thousands | 2020 | 2019 | Change | % Change | |||||||||||||||||||
Local and national print advertising | $ | 584,929 | $ | 477,707 | $ | 107,222 | 22 | % | |||||||||||||||
Classified print advertising | 316,392 | 211,099 | 105,293 | 50 | % | ||||||||||||||||||
Print advertising | 901,321 | 688,806 | 212,515 | 31 | % | ||||||||||||||||||
Digital media | 341,259 | 125,756 | 215,503 | *** | |||||||||||||||||||
Digital classified | 57,990 | 30,717 | 27,273 | 89 | % | ||||||||||||||||||
Digital marketing services | 108,930 | 52,306 | 56,624 | *** | |||||||||||||||||||
Digital advertising and marketing services | 508,179 | 208,779 | 299,400 | *** | |||||||||||||||||||
Advertising and marketing services | 1,409,500 | 897,585 | 511,915 | 57 | % | ||||||||||||||||||
Print circulation | 1,316,695 | 683,529 | 633,166 | 93 | % | ||||||||||||||||||
Digital-only circulation | 75,288 | 21,282 | 54,006 | *** | |||||||||||||||||||
Circulation | 1,391,983 | 704,811 | 687,172 | 97 | % | ||||||||||||||||||
Other | 278,964 | 190,256 | 88,708 | 47 | % | ||||||||||||||||||
Total operating revenues | $ | 3,080,447 | $ | 1,792,652 | $ | 1,287,795 | 72 | % |
Year ended December 31, | |||||||||||||||||||||||
In thousands | 2020 | 2019 | Change | % Change | |||||||||||||||||||
Newsprint and ink | $ | 130,912 | $ | 100,911 | $ | 30,001 | 30 | % | |||||||||||||||
Distribution | 406,784 | 185,256 | 221,528 | *** | |||||||||||||||||||
Compensation and benefits | 629,643 | 348,744 | 280,899 | 81 | % | ||||||||||||||||||
Outside services | 333,435 | 149,020 | 184,415 | *** | |||||||||||||||||||
Other | 342,051 | 261,876 | 80,175 | 31 | % | ||||||||||||||||||
Total operating costs | $ | 1,842,825 | $ | 1,045,807 | $ | 797,018 | 76 | % |
Year ended December 31, | |||||||||||||||||||||||
In thousands | 2020 | 2019 | Change | % Change | |||||||||||||||||||
Compensation and benefits | $ | 396,017 | $ | 269,825 | $ | 126,192 | 47 | % | |||||||||||||||
Outside services | 45,972 | 35,780 | 10,192 | 28 | % | ||||||||||||||||||
Other | 345,781 | 187,755 | 158,026 | 84 | % | ||||||||||||||||||
Total selling, general and administrative expenses | $ | 787,770 | $ | 493,360 | $ | 294,410 | 60 | % |
Year ended December 31, | |||||||||||||||||||||||
In thousands | 2020 | 2019 | Change | % Change | |||||||||||||||||||
Net income (loss) attributable to Gannett | $ | (108,606) | $ | 22,523 | $ | (131,129) | *** | ||||||||||||||||
Interest expense | 142 | 123 | 19 | 15 | % | ||||||||||||||||||
Non-operating pension income | (71,858) | (2,486) | (69,372) | *** | |||||||||||||||||||
Gain on sale of investments | (195) | — | (195) | *** | |||||||||||||||||||
Other non-operating (income) expense, net | (6,029) | 1,517 | (7,546) | *** | |||||||||||||||||||
Depreciation and amortization | 221,746 | 101,881 | 119,865 | *** | |||||||||||||||||||
Integration and reorganization costs | 60,852 | 23,487 | 37,365 | *** | |||||||||||||||||||
Asset impairments | 10,312 | 3,009 | 7,303 | *** | |||||||||||||||||||
Goodwill and intangible impairments | 352,947 | 100,743 | 252,204 | *** | |||||||||||||||||||
Net (gain) loss on sale or disposal of assets | (7,541) | 4,036 | (11,577) | *** | |||||||||||||||||||
Other items | 7,425 | 14,083 | (6,658) | (47 | %) | ||||||||||||||||||
Adjusted EBITDA (non-GAAP basis) | $ | 459,195 | $ | 268,916 | $ | 190,279 | 71 | % |
Year ended December 31, | |||||||||||||||||||||||
In thousands | 2020 | 2019 | Change | % Change | |||||||||||||||||||
Operating revenues: | |||||||||||||||||||||||
Advertising and marketing services | $ | 411,940 | $ | 131,003 | $ | 280,937 | *** | ||||||||||||||||
Other | 16,665 | 18,239 | (1,574) | (9 | %) | ||||||||||||||||||
Total operating revenues | 428,605 | 149,242 | 279,363 | *** | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Operating costs | 276,859 | 99,272 | 177,587 | *** | |||||||||||||||||||
Selling, general and administrative expenses | 128,834 | 56,058 | 72,776 | *** | |||||||||||||||||||
Depreciation and amortization | 25,878 | 6,534 | 19,344 | *** | |||||||||||||||||||
Integration and reorganization costs | 6,663 | 2,202 | 4,461 | *** | |||||||||||||||||||
Acquisition costs | — | (38) | 38 | (100 | %) | ||||||||||||||||||
Asset impairments | 717 | — | 717 | *** | |||||||||||||||||||
Goodwill and intangible impairments | 40,499 | — | 40,499 | *** | |||||||||||||||||||
Net (gain) loss on sale or disposal of assets | 1,727 | (5) | 1,732 | *** | |||||||||||||||||||
Total operating expenses | 481,177 | 164,023 | 317,154 | *** | |||||||||||||||||||
Operating loss | $ | (52,572) | $ | (14,781) | $ | (37,791) | *** |
Year ended December 31, | |||||||||||||||||||||||
In thousands | 2020 | 2019 | Change | % Change | |||||||||||||||||||
Compensation and benefits | $ | 44,441 | $ | 27,162 | $ | 17,279 | 64 | % | |||||||||||||||
Outside services | 216,847 | 66,753 | 150,094 | *** | |||||||||||||||||||
Other | 15,571 | 5,357 | 10,214 | *** | |||||||||||||||||||
Total operating costs | $ | 276,859 | $ | 99,272 | $ | 177,587 | *** |
Year ended December 31, | |||||||||||||||||||||||
In thousands | 2020 | 2019 | Change | % Change | |||||||||||||||||||
Compensation and benefits | $ | 113,314 | $ | 42,880 | $ | 70,434 | *** | ||||||||||||||||
Outside services | 11,629 | 5,929 | 5,700 | 96 | % | ||||||||||||||||||
Other | 3,891 | 7,249 | (3,358) | (46 | %) | ||||||||||||||||||
Total selling, general and administrative expenses | $ | 128,834 | $ | 56,058 | $ | 72,776 | *** |
Year ended December 31, | |||||||||||||||||||||||
In thousands | 2020 | 2019 | Change | % Change | |||||||||||||||||||
Net income (loss) attributable to Gannett | $ | (42,494) | $ | (14,006) | $ | (28,488) | *** | ||||||||||||||||
Gain on sale of investments | (7,800) | — | (7,800) | *** | |||||||||||||||||||
Other non-operating (income) expense, net | (2,278) | (775) | (1,503) | *** | |||||||||||||||||||
Depreciation and amortization | 25,878 | 6,534 | 19,344 | *** | |||||||||||||||||||
Integration and reorganization costs | 6,663 | 2,202 | 4,461 | *** | |||||||||||||||||||
Acquisition costs | — | (38) | 38 | (100 | %) | ||||||||||||||||||
Asset impairments | 717 | — | 717 | *** | |||||||||||||||||||
Goodwill and intangible impairments | 40,499 | — | 40,499 | *** | |||||||||||||||||||
Net (gain) loss on sale or disposal of assets | 1,727 | (5) | 1,732 | *** | |||||||||||||||||||
Other items | 1,449 | 2,809 | (1,360) | (48 | %) | ||||||||||||||||||
Adjusted EBITDA (non-GAAP basis) | $ | 24,361 | $ | (3,279) | $ | 27,640 | *** |
Year Ended | |||||||||||
In thousands | December 31, 2020 | December 31, 2019 | |||||||||
Net cash provided by operating activities | $ | 57,770 | $ | 25,535 | |||||||
Net cash provided by (used for) investing activities | 160,136 | (785,060) | |||||||||
Net cash provided by (used for) financing activities | (201,342) | 898,913 | |||||||||
Effect of currency exchange rate change
|
1,498 | (3,494) | |||||||||
Net increase in cash | $ | 18,062 | $ | 135,894 |
In thousands | Payments Due by Period | ||||||||||||||||||||||||||||
Total | 2021 | 2022-2023 | 2024-2025 | Thereafter | |||||||||||||||||||||||||
Debt and interest obligations(a)
|
$ | 2,145,859 | $ | 272,856 | $ | 329,323 | $ | 1,046,586 | $ | 497,094 | |||||||||||||||||||
Operating lease obligations(b)
|
520,460 | 77,351 | 138,187 | 103,707 | 201,215 | ||||||||||||||||||||||||
Purchase obligations(c)
|
548,005 | 224,762 | 213,490 | 109,553 | 200 | ||||||||||||||||||||||||
Pension and other postretirement benefits(d)
|
79,593 | 64,593 | 15,000 | — | — | ||||||||||||||||||||||||
Other noncurrent liabilities(e)
|
21,665 | 5,677 | 7,969 | 5,026 | 2,993 | ||||||||||||||||||||||||
Total | $ | 3,315,582 | $ | 645,239 | $ | 703,969 | $ | 1,264,872 | $ | 701,502 |
Year ended December 31, | |||||||||||
In thousands | 2020 | 2019 | |||||||||
Net income (loss) attributable to Gannett | $ | (670,479) | $ | (119,842) | |||||||
Provision (benefit) for income taxes | (33,450) | (85,994) | |||||||||
Interest expense | 228,513 | 63,660 | |||||||||
Loss on early extinguishment of debt | 43,760 | 6,058 | |||||||||
Non-operating pension income | (72,149) | (9,085) | |||||||||
Unrealized loss on Convertible notes derivative | 74,329 | — | |||||||||
Gain on sale of investments | (7,995) | — | |||||||||
Other non-operating (income) expense, net | (8,499) | (426) | |||||||||
Depreciation and amortization | 263,819 | 111,882 | |||||||||
Integration and reorganization costs | 145,731 | 52,212 | |||||||||
Acquisition costs | 11,152 | 60,618 | |||||||||
Asset impairments | 11,029 | 3,009 | |||||||||
Goodwill and intangible impairments | 393,446 | 100,743 | |||||||||
Net (gain) loss on sale or disposal of assets | (5,680) | 4,723 | |||||||||
Share-based compensation expense | 26,350 | 11,324 | |||||||||
Other items | 14,018 | 24,989 | |||||||||
Adjusted EBITDA (non-GAAP basis) | $ | 413,895 |
|
$ | 223,871 |
Page | |||||
FINANCIAL STATEMENTS | |||||
Goodwill and Intangible Assets with Indefinite Lives Impairment Assessment | |||||
Description of the Matter |
At December 31, 2020, the Company’s goodwill and intangible assets with indefinite lives, which consist of newspaper mastheads, were $534.1 million and $171.4 million, respectively. As discussed in Note 1 of the consolidated financial statements, goodwill and intangible assets with indefinite lives are tested for impairment at least annually or when events occur that indicate impairment could exist. As a result of these assessments, the Company recognized impairments of $393.4 million during the year ended December 31, 2020.
Auditing management’s impairment tests of goodwill and newspaper masthead intangible assets was complex and judgmental and required the involvement of specialists due to the estimation required in determining the fair value of the reporting units and newspaper mastheads. In particular, the estimates of the fair value of the reporting units are sensitive to significant assumptions such as the revenue growth rates, discount rates and projected EBITDA margins. The estimates of fair value of the newspaper masthead intangible assets are sensitive to significant assumptions including the royalty rates, discount rates and revenue growth rates. These assumptions are affected by expectations about future economic and industry factors. |
||||
How We Addressed the Matter in Our Audit |
We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s goodwill and intangible assets with indefinite lives impairment review process. For example, we tested controls over management’s review of the significant assumptions described above as well as management’s review of the reasonableness of the underlying data used in the valuation analyses.
To test the estimated fair value of the Company’s reporting units and newspaper masthead intangible assets, we performed audit procedures that included, among others, assessing the valuation methodologies used, testing the significant assumptions described above and testing the completeness and accuracy of the underlying data the Company used in its analyses. For example, we compared the revenue growth rates and projected EBITDA margins used in the valuations to current industry and economic trends and assessed the historical accuracy of management’s estimates. With the assistance of our internal valuation specialists, we also developed an independent range of the discount rate and royalty rate assumptions and compared them to the rates determined by management. We performed sensitivity analyses of the significant assumptions to evaluate the changes in the fair value of the reporting units and the newspaper masthead intangible assets that would result from changes in the assumptions. In addition, we tested management’s reconciliation of the fair value of the reporting units to the market capitalization of the Company. |
||||
Defined Benefit Pension Obligation | |||||
Description of the Matter |
At December 31, 2020, the Company’s aggregate obligation for its defined benefit pension plans was $3.2 billion, with related pension assets of $3.2 billion, resulting in a net pension asset of $64.2 million as of December 31, 2020. The Company recorded a net periodic pension benefit of $71.8 million for the year-ended December 31, 2020. As described in Note 9 of the consolidated financial statements, the Company updates the estimates used to measure the defined benefit pension assets and obligations annually or upon a remeasurement event to reflect the actual return on plan assets and updated actuarial assumptions.
Auditing the defined benefit pension obligations and net periodic pension benefit was complex and required the involvement of specialists due to the judgmental nature of the actuarial assumptions such as the discount rate and expected return on plan assets used in the measurement process. These assumptions have a significant effect on the projected defined benefit pension obligation and net periodic pension benefit. |
How We Addressed the Matter in Our Audit |
We obtained an understanding, evaluated the design and tested the operating effectiveness of the controls over management’s measurement and valuation of the defined benefit pension obligations and net periodic pension benefit. For example, we tested controls over management’s review of the defined benefit pension obligation calculations, the significant actuarial assumptions, and the data inputs used in the actuarial models.
To test the defined benefit pension obligation and net periodic pension benefit, our audit procedures included, among others, evaluating the methodology used, the significant actuarial assumptions described above, and the underlying data used by the Company. We compared the actuarial assumptions used by management to historical trends. We involved actuarial specialists in the evaluation of management’s methodology for determining the discount rate that reflects the maturity and duration of the benefit payments and is used to measure the defined benefit pension obligation. To perform this evaluation, we compared the discount rate to an independent range of discount rates developed using the projected benefit cash outlays. As part of this assessment, we compared the projected cash flows to the historical cash flows and compared the current year benefits paid to the plans’ prior year projected cash flows. We also tested the completeness and accuracy of the underlying data, including the participant data provided to the Company’s actuarial specialists. To evaluate the expected return on plan assets, we assessed whether management’s assumption is consistent with a range of returns for a portfolio of comparative investments. |
In thousands, except share amounts | December 31, 2020 | December 31, 2019 | ||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 170,725 | $ | 156,042 | ||||||||||
Accounts receivable, net of allowance for doubtful accounts of $20,843 and $19,923, respectively
|
314,305 | 438,523 | ||||||||||||
Inventories | 35,075 | 55,090 | ||||||||||||
Prepaid expense and other current assets | 116,581 | 129,460 | ||||||||||||
Total current assets | 636,686 | 779,115 | ||||||||||||
Property, plant and equipment, net | 590,272 | 815,807 | ||||||||||||
Operating lease assets | 289,504 | 309,112 | ||||||||||||
Goodwill | 534,088 | 914,331 | ||||||||||||
Intangible assets, net | 824,650 | 1,012,564 | ||||||||||||
Deferred tax assets | 90,240 | 76,297 | ||||||||||||
Other assets | 143,474 | 112,876 | ||||||||||||
Total assets | $ | 3,108,914 | $ | 4,020,102 | ||||||||||
Liabilities and equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable and accrued liabilities | $ | 378,246 | $ | 453,628 | ||||||||||
Deferred revenue | 186,007 | 218,823 | ||||||||||||
Current portion of long-term debt | 128,445 | 3,300 | ||||||||||||
Other current liabilities | 48,602 | 42,702 | ||||||||||||
Total current liabilities | 741,300 | 718,453 | ||||||||||||
Long-term debt | 890,323 | 1,636,335 | ||||||||||||
Convertible debt | 581,405 | 3,300 | ||||||||||||
Deferred tax liabilities | 6,855 | 9,052 | ||||||||||||
Pension and other postretirement benefit obligations | 99,765 | 235,906 | ||||||||||||
Long-term operating lease liabilities | 274,460 | 297,662 | ||||||||||||
Other long-term liabilities | 151,847 | 136,188 | ||||||||||||
Total noncurrent liabilities | 2,004,655 | 2,318,443 | ||||||||||||
Total liabilities | 2,745,955 | 3,036,896 | ||||||||||||
Redeemable noncontrolling interests | (1,150) | 1,850 | ||||||||||||
Commitments and contingent liabilities (see Note 13)
|
||||||||||||||
Equity | ||||||||||||||
Preferred stock, $0.01 par value, 300,000 shares authorized, of which 150,000 shares are designated as Series A Junior Participating Preferred Stock, none of which were outstanding at December 31, 2020 and December 31, 2019
|
— | — | ||||||||||||
Common stock, $0.01 par value, 2,000,000,000 shares authorized; 139,494,741 shares issued and 138,102,993 shares outstanding at December 31, 2020; 129,386,258 shares issued and 128,991,544 shares outstanding at December 31, 2019
|
1,395 | 1,294 | ||||||||||||
Treasury stock, at cost, 1,391,748 and 394,714 shares at December 31, 2020 and December 31, 2019, respectively
|
(4,903) | (2,876) | ||||||||||||
Additional paid-in capital | 1,103,881 | 1,090,694 | ||||||||||||
Accumulated deficit | (786,437) | (115,958) | ||||||||||||
Accumulated other comprehensive income | 50,173 | 8,202 | ||||||||||||
Total equity | 364,109 | 981,356 | ||||||||||||
Total liabilities and equity | $ | 3,108,914 | $ | 4,020,102 |
In thousands, except per share amounts | December 31, 2020 | December 31, 2019 | December 30, 2018 | ||||||||||||||
Advertising and marketing services | $ | 1,710,244 | $ | 952,644 | $ | 786,577 | |||||||||||
Circulation | 1,391,996 | 704,842 | 574,963 | ||||||||||||||
Other | 303,430 | 210,423 | 164,484 | ||||||||||||||
Total operating revenues | 3,405,670 | 1,867,909 | 1,526,024 | ||||||||||||||
Operating costs | 2,034,272 | 1,079,593 | 865,234 | ||||||||||||||
Selling, general and administrative expenses | 999,789 | 602,106 | 502,631 | ||||||||||||||
Depreciation and amortization | 263,819 | 111,882 | 84,791 | ||||||||||||||
Integration and reorganization costs | 145,731 | 52,212 | 15,011 | ||||||||||||||
Acquisition costs | 11,152 | 60,618 | 2,651 | ||||||||||||||
Asset impairments | 11,029 | 3,009 | 1,538 | ||||||||||||||
Goodwill and intangible impairments | 393,446 | 100,743 | — | ||||||||||||||
Net (gain) loss on sale or disposal of assets | (5,680) | 4,723 | (3,971) | ||||||||||||||
Total operating expenses | 3,853,558 | 2,014,886 | 1,467,885 | ||||||||||||||
Operating income (loss) | (447,888) | (146,977) | 58,139 | ||||||||||||||
Interest expense | 228,513 | 63,660 | 36,072 | ||||||||||||||
Loss on early extinguishment of debt | 43,760 | 6,058 | 2,886 | ||||||||||||||
Non-operating pension income | (72,149) | (9,085) | (1,435) | ||||||||||||||
Unrealized loss on Convertible notes derivative | 74,329 | — | — | ||||||||||||||
Gain on sale of investments | (7,995) | — | — | ||||||||||||||
Other (income) expense, net | (8,499) | (426) | 597 | ||||||||||||||
Non-operating expense | 257,959 | 60,207 | 38,120 | ||||||||||||||
Income (loss) before income taxes | (705,847) | (207,184) | 20,019 | ||||||||||||||
Provision (benefit) for income taxes | (33,450) | (85,994) | 1,912 | ||||||||||||||
Net income (loss) | $ | (672,397) | $ | (121,190) | $ | 18,107 | |||||||||||
Net loss attributable to redeemable noncontrolling interests | (1,918) | (1,348) | (89) | ||||||||||||||
Net income (loss) attributable to Gannett | $ | (670,479) | $ | (119,842) | $ | 18,196 | |||||||||||
Earnings (loss) per share attributable to Gannett - basic | $ | (5.09) | $ | (1.77) | $ | 0.31 | |||||||||||
Earnings (loss) per share attributable to Gannett - diluted | $ | (5.09) | $ | (1.77) | $ | 0.31 | |||||||||||
Dividends declared per share | $ | — | $ | 1.52 | $ | 1.49 | |||||||||||
Other comprehensive income (loss): | |||||||||||||||||
Foreign currency translation adjustments | $ | 2,466 | $ | 7,266 | $ | — | |||||||||||
Pension and other postretirement benefit items: | |||||||||||||||||
Net actuarial gain (loss) | 60,471 | 12,534 | (1,509) | ||||||||||||||
Amortization of net actuarial loss (gain) | 37 | 86 | 89 | ||||||||||||||
Change in prior service cost | (1,905) | — | — | ||||||||||||||
Other | (2,108) | 305 | — | ||||||||||||||
Total pension and other postretirement benefit items | 56,495 | 12,925 | (1,420) | ||||||||||||||
Other comprehensive income (loss) before tax | 58,961 | 20,191 | (1,420) | ||||||||||||||
Income tax provision related to components of other comprehensive income (loss) | 16,990 | 5,108 | — | ||||||||||||||
Other comprehensive income (loss), net of tax | 41,971 | 15,083 | (1,420) | ||||||||||||||
Comprehensive income (loss) | (630,426) | (106,107) | 16,687 | ||||||||||||||
Comprehensive income (loss) attributable to redeemable noncontrolling interests | (1,918) | (1,348) | (89) | ||||||||||||||
Comprehensive income (loss) attributable to Gannett | $ | (628,508) | $ | (104,759) | $ | 16,776 |
In thousands | December 31, 2020 | December 31, 2019 | December 30, 2018 | ||||||||||||||
Operating activities | |||||||||||||||||
Net income (loss) | $ | (672,397) | $ | (121,190) | $ | 18,107 | |||||||||||
Adjustments to reconcile net income (loss) to operating cash flows: | |||||||||||||||||
Depreciation and amortization | 263,819 | 111,882 | 84,791 | ||||||||||||||
Facility consolidation costs | 3,629 | 148 | — | ||||||||||||||
Share-based compensation | 26,350 | 11,324 | 3,156 | ||||||||||||||
Non-cash interest expense | 24,086 | 3,851 | 1,996 | ||||||||||||||
Non-cash acquisition related costs | — | 26,411 | — | ||||||||||||||
Provision (benefit) for deferred income taxes | (30,175) | (87,765) | 202 | ||||||||||||||
Net (gain) loss on sale or disposal of assets | (5,680) | 4,723 | (3,971) | ||||||||||||||
Unrealized loss on Convertible notes derivative | 74,329 | — | — | ||||||||||||||
Non-cash charge to investments | — | — | 505 | ||||||||||||||
Non-cash loss on early extinguishment of debt | 43,760 | 6,058 | 2,886 | ||||||||||||||
Asset impairments | 11,029 | 3,009 | 1,538 | ||||||||||||||
Goodwill and intangible impairments | 393,446 | 100,743 | — | ||||||||||||||
Pension and other postretirement benefit obligations | (117,522) | (100,452) | (2,575) | ||||||||||||||
Change in assets and liabilities: | |||||||||||||||||
Accounts receivables, net | 111,506 | 12,608 | 15 | ||||||||||||||
Inventory | 19,965 | 5,150 | (4,336) | ||||||||||||||
Prepaid expenses | 4,078 | 7,016 | 3,338 | ||||||||||||||
Accounts payable and accrued liabilities | (66,377) | 44,311 | 5,489 | ||||||||||||||
Deferred revenue | (19,348) | (8,326) | (7,642) | ||||||||||||||
Other assets and liabilities | (6,728) | 6,034 | 6,060 | ||||||||||||||
Net cash provided by operating activities | 57,770 | 25,535 | 109,559 | ||||||||||||||
Investing activities | |||||||||||||||||
Acquisitions, net of cash acquired | — | (796,502) | (204,877) | ||||||||||||||
Purchases of property, plant, and equipment | (36,975) | (13,978) | (11,639) | ||||||||||||||
Proceeds from sale of publications, real estate and other assets | 196,344 | 27,486 | 15,040 | ||||||||||||||
Insurance proceeds received for damaged of property | 1,643 | — | — | ||||||||||||||
Change in other investing activities | (876) | (2,066) | — | ||||||||||||||
Net cash provided by (used for) investing activities | 160,136 | (785,060) | (201,476) | ||||||||||||||
Financing activities | |||||||||||||||||
Payments of debt issuance costs | (2,307) | (121,223) | (800) | ||||||||||||||
Borrowings under term loans | — | 1,792,000 | 79,675 | ||||||||||||||
Borrowings under revolving credit facility | — | 153,900 | 20,000 | ||||||||||||||
Repayments under term loans | (681,050) | (481,058) | (3,093) | ||||||||||||||
Repayments under revolving credit facility | — | (153,900) | (20,000) | ||||||||||||||
Repayments of convertible debt | — | (197,950) | — | ||||||||||||||
Proceeds from convertible debt | 497,094 | — | — | ||||||||||||||
Issuance of common stock, net of underwriters' discount | 4 | — | 111,099 | ||||||||||||||
Payments of dividends | — | (91,936) | (87,195) | ||||||||||||||
Changes in other financing activities | (15,083) | (920) | (1,161) | ||||||||||||||
Net cash provided by (used for) financing activities | (201,342) | 898,913 | 98,525 | ||||||||||||||
Effect of currency exchange rate change | 1,498 | (3,494) | — | ||||||||||||||
Increase in cash, cash equivalents and restricted cash | 18,062 | 135,894 | 6,608 | ||||||||||||||
Balance of cash, cash equivalents and restricted cash at beginning of year | 188,664 | 52,770 | 46,162 | ||||||||||||||
Cash, cash equivalents and restricted cash at end of year | $ | 206,726 | $ | 188,664 | $ | 52,770 |
Common stock |
Additional
Paid-in Capital |
Accumulated Other Comprehensive Income (Loss) |
Retained
Earnings (Accumulated Deficit) |
Treasury stock | |||||||||||||||||||||||||||||||||||||||||||
In thousands, except share data | Shares | Amount | Shares | Amount | Total | ||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | 53,367,853 | $ | 534 | $ | 683,168 | $ | (5,461) | $ | (2,767) | 140,972 | $ | (1,081) | $ | 674,393 | |||||||||||||||||||||||||||||||||
Net income attributable to Gannett | — | — | — | — | 18,196 | — | — | 18,196 | |||||||||||||||||||||||||||||||||||||||
Restricted share grants | 240,396 | 2 | 223 | — | — | — | — | 225 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of income taxes of $0
|
— | — | — | (1,420) | — | — | — | (1,420) | |||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | 3,156 | — | — | — | — | 3,156 | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of underwriters' discount | 6,900,000 | 69 | 110,650 | — | — | — | — | 110,719 | |||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | — | — | — | 46,237 | (792) | (792) | |||||||||||||||||||||||||||||||||||||||
Restricted share forfeiture | — | — | — | — | — | 14,754 | — | — | |||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | (75,592) | — | (11,662) | — | — | (87,254) | |||||||||||||||||||||||||||||||||||||||
Balance at December 30, 2018 | 60,508,249 | $ | 605 | $ | 721,605 | $ | (6,881) | $ | 3,767 | 201,963 | $ | (1,873) | $ | 717,223 | |||||||||||||||||||||||||||||||||
Net loss attributable to Gannett | — | — | — | — | (119,842) | — | — | (119,842) | |||||||||||||||||||||||||||||||||||||||
Restricted share grants | 300,952 | 3 | (3) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Restricted stock awards settled, net of withholdings | 1,981,556 | 20 | (462) | — | — | — | — | (442) | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of income taxes of $5,108
|
— | — | — | 15,083 | — | — | — | 15,083 | |||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | 11,324 | — | — | — | — | 11,324 | |||||||||||||||||||||||||||||||||||||||
Impact of adoption of ASC 842 - Leases
|
— | — | — | — | 117 | — | — | 117 | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock to former Legacy Gannett stockholders | 62,389,894 | 624 | 423,232 | — | — | — | — | 423,856 | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock to Fortress | 4,205,607 | 42 | 26,369 | — | — | — | — | 26,411 | |||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | — | — | — | 68,150 | (1,002) | (1,002) | |||||||||||||||||||||||||||||||||||||||
Restricted share forfeiture | — | — | 51 | — | — | 124,601 | (1) | 50 | |||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | (91,838) | — | — | — | — | (91,838) | |||||||||||||||||||||||||||||||||||||||
Other activity | — | — | 416 | — | — | — | — | 416 | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 129,386,258 | $ | 1,294 | $ | 1,090,694 | $ | 8,202 | $ | (115,958) | 394,714 | $ | (2,876) | $ | 981,356 | |||||||||||||||||||||||||||||||||
Net loss attributable to Gannett | — | — | — | — | (670,479) | — | — | (670,479) | |||||||||||||||||||||||||||||||||||||||
Restricted share grants | 5,846,313 | 58 | (60) | — | — | — | — | (2) | |||||||||||||||||||||||||||||||||||||||
Restricted stock awards settled, net of withholdings | 3,585,190 | 36 | (11,037) | — | — | — | (11,001) | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of income taxes of $16,990
|
— | — | — | 41,971 | — | — | — | 41,971 | |||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | 26,350 | — | — | — | — | 26,350 | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock | 676,980 | 7 | 1,614 | — | — | — | — | 1,621 | |||||||||||||||||||||||||||||||||||||||
Remeasurement of redeemable noncontrolling interests | — | — | (3,878) | — | — | — | — | (3,878) | |||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | — | — | — | 349,338 | (2,020) | (2,020) | |||||||||||||||||||||||||||||||||||||||
Restricted share forfeiture | — | — | — | — | — | 647,696 | (7) | (7) | |||||||||||||||||||||||||||||||||||||||
Other activity | — | — | 198 | — | — | — | — | 198 | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 139,494,741 | $ | 1,395 | $ | 1,103,881 | $ | 50,173 | $ | (786,437) | 1,391,748 | $ | (4,903) | $ | 364,109 |
Year ended December 31, | |||||||||||||||||
In thousands | 2020 | 2019 | 2018 | ||||||||||||||
Cash and cash equivalents | $ | 170,725 | $ | 156,042 | $ | 48,651 | |||||||||||
Restricted cash included in prepaid expenses and other current assets | 11,356 | 10,800 | 4,119 | ||||||||||||||
Restricted cash included in other assets | 24,645 | 21,822 | — | ||||||||||||||
Total cash, cash equivalents and restricted cash | $ | 206,726 | $ | 188,664 | $ | 52,770 |
Year ended December 31, | ||||||||||||||
In thousands | 2020 | 2019 |
Useful Life
(Up to)
|
|||||||||||
Land | $ | 74,549 | $ | 105,805 | ||||||||||
Buildings and improvements | 348,591 | 416,537 | 40 years | |||||||||||
Machinery and equipment | 426,348 | 474,418 | 30 years | |||||||||||
Furniture, fixtures and computer software(a)
|
96,739 | 82,651 | 10 years | |||||||||||
Construction in progress | 6,074 | 13,687 | ||||||||||||
Total | 952,301 | 1,093,098 | ||||||||||||
Less: accumulated depreciation | (362,029) | (277,291) | ||||||||||||
Property, plant and equipment, net | $ | 590,272 | $ | 815,807 |
Year ended December 31, | |||||||||||
In thousands | 2020 | 2019 | |||||||||
Accounts payable | $ | 131,797 | $ | 146,995 | |||||||
Compensation | 115,061 | 131,006 | |||||||||
Taxes (primarily property and sales taxes) | 30,834 | 18,073 | |||||||||
Benefits | 22,821 | 33,070 | |||||||||
Interest | 3,676 | 23,602 | |||||||||
Other | 74,057 | 100,882 | |||||||||
Accounts payable and accrued liabilities | $ | 378,246 | $ | 453,628 |
Year Ended | |||||||||||||||||
In thousands | December 31, 2020 | December 31, 2019 | December 30, 2018 | ||||||||||||||
Net cash (refund) paid for taxes | $ | (3,964) | $ | 1,192 | $ | 1,272 | |||||||||||
Cash paid for interest | 218,110 | 40,208 | 31,178 | ||||||||||||||
Accrued capital expenditures | 544 | 2,227 | 69 | ||||||||||||||
Common stock issued in exchange for Legacy Gannett shares | — | 391,809 | — |
Year Ended | |||||||||||||||||
In thousands | December 31, 2020 | December 31, 2019 | December 30, 2018 | ||||||||||||||
Print advertising | $ | 901,805 | $ | 689,595 | $ | 625,065 | |||||||||||
Digital advertising and marketing services | 808,439 | 263,049 | 161,512 | ||||||||||||||
Total advertising and marketing services | 1,710,244 | 952,644 | 786,577 | ||||||||||||||
Circulation | 1,391,996 | 704,842 | 574,963 | ||||||||||||||
Other | 303,430 | 210,423 | 164,484 | ||||||||||||||
Total revenues | $ | 3,405,670 | $ | 1,867,909 | $ | 1,526,024 |
Year ended December 31, 2020 | Year ended December 31, 2019 | ||||||||||||||||||||||||||||||||||
In thousands | Advertising, Marketing Services and Other | Circulation | Total | Advertising, Marketing Services and Other | Circulation | Total | |||||||||||||||||||||||||||||
Beginning balance | $ | 67,444 | $ | 151,379 | $ | 218,823 | $ | 22,542 | $ | 82,645 | $ | 105,187 | |||||||||||||||||||||||
Acquired deferred revenue | — | — | — | 42,369 | 95,341 | 137,710 | |||||||||||||||||||||||||||||
Cash receipts | 278,131 | 1,159,831 | 1,437,962 | 128,504 | 529,004 | 657,508 | |||||||||||||||||||||||||||||
Revenue recognized | (287,903) | (1,170,300) | (1,458,203) | (125,971) | (555,611) | (681,582) | |||||||||||||||||||||||||||||
Reduction due to dispositions | $ | (5,986) | $ | (6,589) | (12,575) | $ | — | $ | — | — | |||||||||||||||||||||||||
Ending balance | $ | 51,686 | $ | 134,321 | $ | 186,007 | $ | 67,444 | $ | 151,379 | $ | 218,823 |
Year ended December 31, | |||||||||||
In thousands | 2020 | 2019 | |||||||||
Operating lease cost (a)
|
$ | 96,218 | $ | 38,985 | |||||||
Short-term lease cost (b)
|
5,663 | 5,086 | |||||||||
Total lease expense | $ | 101,881 | $ | 44,071 |
Year ended December 31, | |||||||||||
In thousands, except lease term and discount rate | 2020 | 2019 | |||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 86,999 | $ | 35,837 | |||||||
Right-of-use assets obtained in exchange for operating lease obligations | 36,247 | 28,545 | |||||||||
Loss on sale and leaseback transactions, net | 3,821 | — | |||||||||
Weighted-average remaining lease term (in years) | 7.7 | 8.3 | |||||||||
Weighted-average discount rate | 12.9 | % | 12.4 | % |
In thousands | Year ended December 31, | ||||
2021 | $ | 77,351 | |||
2022 | 75,560 | ||||
2023 | 62,627 | ||||
2024 | 56,021 | ||||
2025 | 47,686 | ||||
Thereafter | 201,215 | ||||
Total future minimum lease payments | 520,460 | ||||
Less: Imputed interest | 203,090 | ||||
Total | $ | 317,370 |
In thousands |
Year ended December 31, 2020 | ||||
Beginning balance | $ | 19,923 | |||
Current period provision | 28,654 | ||||
Write-offs charged against the allowance | (29,532) | ||||
Recoveries of amounts previously written-off | 2,824 | ||||
Disposition | (1,011) | ||||
Foreign currency | (15) | ||||
Ending balance | $ | 20,843 |
In thousands |
Estimated fair value as previously reported (a)
|
Measurement period adjustments (b)
|
Final fair value as adjusted | ||||||||
Cash and restricted cash acquired | $ | 149,452 | $ | — | $ | 149,452 | |||||
Current assets | 383,965 | — | 383,965 | ||||||||
Other assets | 97,459 | — | 97,459 | ||||||||
Property, plant and equipment | 536,511 | — | 536,511 | ||||||||
Operating lease assets | 200,550 | — | 200,550 | ||||||||
Developed technology | 47,770 | (11,670) | 36,100 | ||||||||
Advertiser relationships | 272,740 | (16,580) | 256,160 | ||||||||
Subscriber relationships | 104,490 | 6,100 | 110,590 | ||||||||
Other customer relationships | 63,820 | 3,540 | 67,360 | ||||||||
Trade names | 16,470 | (630) | 15,840 | ||||||||
Mastheads | 97,340 | 8,420 | 105,760 | ||||||||
Goodwill | 644,766 | 13,018 | 657,784 | ||||||||
Total assets | 2,615,333 | 2,198 | 2,617,531 | ||||||||
Current liabilities | 513,752 | 95 | 513,847 | ||||||||
Long-term liabilities | 787,019 | 2,103 | 789,122 | ||||||||
Total liabilities | 1,300,771 | 2,198 | 1,302,969 | ||||||||
Net assets | $ | 1,314,562 | $ | — | $ | 1,314,562 |
In thousands |
Estimated fair value as previously reported (a)
|
Measurement period adjustments (b)
|
Final fair value as adjusted | ||||||||
Cash and restricted cash acquired | $ | 323 | $ | — | $ | 323 | |||||
Current assets | 9,320 | (112) | 9,208 | ||||||||
Other assets | 950 | — | 950 | ||||||||
Property, plant and equipment | 20,492 | 730 | 21,222 | ||||||||
Non-compete agreements | 280 | — | 280 | ||||||||
Advertiser relationships | 2,357 | 279 | 2,636 | ||||||||
Subscriber relationships | 1,457 | — | 1,457 | ||||||||
Other customer relationships | 1,323 | 2,942 | 4,265 | ||||||||
Software | 140 | 2,130 | 2,270 | ||||||||
Trade names | 299 | 2,105 | 2,404 | ||||||||
Mastheads | 2,896 | — | 2,896 | ||||||||
Goodwill | 20,850 | (1,248) | 19,602 | ||||||||
Total assets | 60,687 | 6,826 | 67,513 | ||||||||
Current liabilities | 11,961 | — | 11,961 | ||||||||
Long-term liabilities | 463 | 50 | 513 | ||||||||
Total liabilities | 12,424 | 50 | 12,474 | ||||||||
Minority interest | 1,651 | — | 1,651 | ||||||||
Net assets | $ | 46,612 | $ | 6,776 | $ | 53,388 |
Year Ended | |||||||||||
Unaudited; In thousands (except per share amounts) | December 31, 2019 | December 30, 2018 | |||||||||
Total revenues | $ | 4,177,583 | $ | 4,440,491 | |||||||
Net loss | (292,395) | (169,617) | |||||||||
Loss per share - diluted | (2.27) | (1.31) |
Year ended December 31, 2020 | Year ended December 31, 2019 | ||||||||||||||||||||||||||||||||||
In thousands |
Gross
Carrying Amount |
Accumulated
Amortization |
Net
Carrying Amount |
Gross
Carrying Amount |
Accumulated
Amortization |
Net
Carrying Amount |
|||||||||||||||||||||||||||||
Finite-lived intangible assets: | |||||||||||||||||||||||||||||||||||
Advertiser relationships | $ | 460,331 | $ | 112,468 | $ | 347,863 | $ | 534,161 | $ | 75,363 | $ | 458,798 | |||||||||||||||||||||||
Customer relationships | 102,925 | 23,682 | 79,243 | 109,674 | 14,303 | 95,371 | |||||||||||||||||||||||||||||
Subscriber relationships | 255,702 | 71,271 | 184,431 | 259,391 | 44,878 | 214,513 | |||||||||||||||||||||||||||||
Other intangible assets | 68,687 | 26,982 | 41,705 | 76,552 | 11,229 | 65,323 | |||||||||||||||||||||||||||||
Sub-total | $ | 887,645 | $ | 234,403 | $ | 653,242 | $ | 979,778 | $ | 145,773 | $ | 834,005 | |||||||||||||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||||||||||||||
Mastheads | 171,408 | 178,559 | |||||||||||||||||||||||||||||||||
Total Intangible assets | $ | 824,650 | $ | 1,012,564 | |||||||||||||||||||||||||||||||
Goodwill | $ | 534,088 | $ | 914,331 |
In thousands | |||||
2021 | $ | 103,298 | |||
2022 | 96,997 | ||||
2023 | 91,875 | ||||
2024 | 90,548 | ||||
2025 | 82,082 | ||||
Thereafter | 188,442 | ||||
Total | $ | 653,242 |
In thousands | Publishing | Digital Marketing Solutions | Total | ||||||||||||||
Balance at December 30, 2018, net of accumulated impairment losses of $25,641:
|
$ | 280,295 | $ | 30,442 | $ | 310,737 | |||||||||||
Goodwill acquired in business combinations | 498,061 | 167,555 | 665,616 | ||||||||||||||
Goodwill impairment | (62,280) | — | (62,280) | ||||||||||||||
Goodwill related to divestitures | (42) | — | (42) | ||||||||||||||
Measurement period adjustments | (852) | — | (852) | ||||||||||||||
Foreign currency exchange rate changes | 1,152 | — | 1,152 | ||||||||||||||
Balance at December 31, 2019, net of accumulated impairment losses of $87,921:
|
$ | 716,334 | $ | 197,997 | $ | 914,331 | |||||||||||
Goodwill impairment | (321,851) | (40,499) | (362,350) | ||||||||||||||
Goodwill related to divestitures | (20,328) | (6,592) | (26,920) | ||||||||||||||
Measurement period adjustments | 45,205 | (33,435) | 11,770 | ||||||||||||||
Foreign currency exchange rate changes | (2,743) | — | (2,743) | ||||||||||||||
Balance at December 31, 2020, net of accumulated impairment losses of $455,844:
|
$ | 416,617 | $ | 117,471 | $ | 534,088 |
Year Ended | |||||||||||||||||
In thousands | December 31, 2020 | December 31, 2019 | December 30, 2018 | ||||||||||||||
Publishing | $ | 55,655 | $ | 19,556 | $ | 11,678 | |||||||||||
Digital Marketing Solutions | 6,320 | 1,916 | — | ||||||||||||||
Corporate and other | 24,322 | 19,080 | 262 | ||||||||||||||
Total | $ | 86,297 | $ | 40,552 | $ | 11,940 |
In thousands |
Severance and
Related Costs |
||||
Balance at December 30, 2018
|
$ | 2,554 | |||
Acquired restructuring provision balances | 692 | ||||
Restructuring provision included in Integration and reorganization costs | 40,552 | ||||
Cash payments | (13,013) | ||||
Balance at December 31, 2019
|
30,785 | ||||
Restructuring provision included in Integration and reorganization costs | 86,297 | ||||
Cash payments | (86,139) | ||||
Balance at December 31, 2020
|
$ | 30,943 |
Year Ended | |||||||||||||||||
In thousands | December 31, 2020 | December 31, 2019 | December 30, 2018 | ||||||||||||||
Publishing | $ | 5,197 | $ | 3,931 | $ | 2,809 | |||||||||||
Digital Marketing Solutions | 343 | 286 | — | ||||||||||||||
Corporate and other(a)
|
53,894 | 7,443 | 262 | ||||||||||||||
Total | $ | 59,434 | $ | 11,660 | $ | 3,071 |
Year Ended | |||||||||||||||||
In thousands | December 31, 2020 | December 31, 2019 | December 30, 2018 | ||||||||||||||
Publishing | $ | 10,312 | $ | 3,009 | $ | 1,538 | |||||||||||
Digital Marketing Solutions | 717 | — | — | ||||||||||||||
Total | $ | 11,029 | $ | 3,009 | $ | 1,538 |
December 31, 2020 | |||||
Annual volatility | 70.0 | % | |||
Discount rate | 9.3 | % |
In thousands | Year ended December 31, | ||||
2021 | $ | 128,065 | |||
2022 | 27,340 | ||||
2023 | 27,340 | ||||
2024 | 895,705 | ||||
2025 | — | ||||
Thereafter | 497,094 | ||||
Total debt obligations | $ | 1,575,544 |
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||
In thousands | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Projected benefit obligation at beginning of period | $ | 2,973,182 | $ | 74,190 | $ | 73,667 | $ | 4,330 | |||||||||||||||
Service cost | 2,618 | 999 | 105 | 17 | |||||||||||||||||||
Interest cost | 82,581 | 12,408 | 2,315 | 419 | |||||||||||||||||||
Change in prior service cost | 1,905 | — | — | — | |||||||||||||||||||
Actuarial (gain) loss | 257,110 | 3,701 | 6,648 | (484) | |||||||||||||||||||
Foreign currency translation | 38,003 | 11,812 | — | — | |||||||||||||||||||
Benefits and expenses paid | (187,014) | (111,842) | (7,149) | (1,117) | |||||||||||||||||||
Acquisitions | — | 2,981,914 | — | 70,325 | |||||||||||||||||||
Settlements | (6,336) | — | — | — | |||||||||||||||||||
Participant contributions | — | — | — | 200 | |||||||||||||||||||
Administrative expenses | (903) | — | — | — | |||||||||||||||||||
Employer implicit subsidy fulfilled | — | — | — | (23) | |||||||||||||||||||
Projected benefit obligation at end of period | $ | 3,161,146 | $ | 2,973,182 | $ | 75,586 | $ | 73,667 |
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||
In thousands | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Fair value of plan assets at beginning of period | $ | 2,856,296 | $ | 54,035 | $ | — | $ | — | |||||||||||||||
Actual return on plan assets | 481,311 | 38,054 | — | — | |||||||||||||||||||
Employer contributions | 41,018 | 91,466 | 7,078 | 844 | |||||||||||||||||||
Participant contributions | — | — | — | 164 | |||||||||||||||||||
Acquisitions | — | 2,771,796 | — | — | |||||||||||||||||||
Settlements | (6,322) | — | — | — | |||||||||||||||||||
Benefits paid | (187,014) | (111,022) | (7,078) | (1,008) | |||||||||||||||||||
Administrative expenses | (903) | — | — | — | |||||||||||||||||||
Foreign currency translation | 40,986 | 12,787 | — | — | |||||||||||||||||||
Expenses paid | — | (820) | — | — | |||||||||||||||||||
Fair value of plan assets at end of period | $ | 3,225,372 | $ | 2,856,296 | $ | — | $ | — | |||||||||||||||
Funded status at end of period | 64,226 | (116,886) | (75,586) | (73,667) | |||||||||||||||||||
Unrecognized actuarial (gain) loss | (69,640) | (4,527) | 5,195 | (1,518) | |||||||||||||||||||
Unrecognized prior service cost | 1,905 | — | — | — | |||||||||||||||||||
Net accrued benefit cost | (3,509) | (121,413) | (70,391) | (75,185) |
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||
In thousands | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Other assets | $ | 95,180 | $ | 58,818 | $ | — | $ | — | |||||||||||||||
Accounts payable and accrued liabilities | 332 | 6,771 | 6,443 | 6,694 | |||||||||||||||||||
Pension and other postretirement benefit obligations | 30,622 | 168,933 | 69,143 | 66,973 | |||||||||||||||||||
Accumulated other comprehensive (loss) income | 67,735 | 4,527 | (5,195) | 1,518 | |||||||||||||||||||
Net accrued benefit cost | $ | (3,509) | $ | (121,413) | $ | (70,391) | $ | (75,185) |
Funded plans | Underfunded plans | ||||||||||||||||||||||
In thousands | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Projected benefit obligation | $ | 2,957,432 | $ | 932,357 | $ | 203,714 | $ | 2,040,825 | |||||||||||||||
Accumulated benefit obligation | 2,956,973 | 932,357 | 201,755 | 2,039,075 | |||||||||||||||||||
Fair value of plan assets | 3,052,612 | 991,173 | 172,760 | 1,865,123 |
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||||||||||||
In thousands | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Service cost | $ | 2,618 | $ | 999 | $ | 606 | $ | 105 | $ | 17 | $ | 7 | |||||||||||||||||||||||
Non-operating expenses: | |||||||||||||||||||||||||||||||||||
Interest cost | 82,581 | 12,408 | 2,775 | 2,315 | 419 | 153 | |||||||||||||||||||||||||||||
Expected return on plan assets | (157,082) | (22,303) | (4,452) | — | — | — | |||||||||||||||||||||||||||||
Amortization of unrecognized loss (gain) | 102 | 158 | 113 | (65) | (72) | (24) | |||||||||||||||||||||||||||||
Other adjustment | — | 305 | — | — | — | — | |||||||||||||||||||||||||||||
Non-operating (income) expense included in Other (income) expense | (74,399) | (9,432) | (1,564) | 2,250 | 347 | 129 | |||||||||||||||||||||||||||||
Net periodic expense (benefit) | $ | (71,781) | $ | (8,433) | $ | (958) | $ | 2,355 | $ | 364 | $ | 136 | |||||||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in Other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | (67,119) | $ | (12,050) | $ | 1,872 | $ | 6,648 | $ | (484) | $ | (363) | |||||||||||||||||||||||
Change in prior service cost | 1,905 | — | — | — | — | — | |||||||||||||||||||||||||||||
Amortization of net actuarial gain (loss) | (102) | (158) | (113) | 65 | 72 | 24 | |||||||||||||||||||||||||||||
Other adjustment | 2,108 | (305) | — | — | — | — | |||||||||||||||||||||||||||||
Amount recognized in Other comprehensive income (loss) | $ | (63,208) | $ | (12,513) | $ | 1,759 | $ | 6,713 | $ | (412) | $ | (339) |
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Weighted average discount rate | 2.2 | % | 2.9 | % | 2.6 | % | 3.3 | % | |||||||||||||||
Rate of increase in future compensation levels (a)
|
2.0 | % | 2.0 | % | N/A | N/A | |||||||||||||||||
Current year medical trend | N/A | N/A | 5.5 | % | 5.9 | % | |||||||||||||||||
Ultimate year medical trend | N/A | N/A | 4.5 | % | 4.5 | % | |||||||||||||||||
Year of ultimate trend | N/A | N/A | 2025 | 2034 |
Target Allocation | Allocation of Plan Assets | ||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Equity securities | 30% | 36% | 39% | ||||||||||||||
Debt securities | 52% | 50% | 46% | ||||||||||||||
Alternative investments(a)
|
18% | 14% | 15% | ||||||||||||||
Total | 100% | 100% | 100% |
In thousands | Pension Benefits | Postretirement Benefits | |||||||||
2021 | $ | 196,340 | $ | 6,415 | |||||||
2022 | 192,772 | 6,130 | |||||||||
2023 | 188,865 | 5,840 | |||||||||
2024 | 187,303 | 5,543 | |||||||||
2025 | 184,634 | 5,238 | |||||||||
Thereafter | 818,771 | 22,044 |
EIN Number/Plan Number |
Zone Status
Year Ended
|
FIP/RP Status
Pending/Implemented |
Contributions (In thousands)
|
Surcharge Imposed | Expiration Dates of CBAs | ||||||||||||||||||||||||
Pension Plan Name | December 31, 2020 | December 31, 2019 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||
CWA/ITU Negotiated Pension Plan | 13-6212879/001 | Red | Red | Implemented | $ | 393 | $ | 51 | $ | 9 | No | Under negotiation | |||||||||||||||||
GCIU—Employer Retirement Benefit Plan(a)
|
91-6024903/001 | Red | Red | Implemented | 89 | 75 | 78 | No | 1/5/2022 | ||||||||||||||||||||
The Newspaper Guild International Pension Plan(a)
|
52-1082662/001 | Red | Red | Implemented | 92 | 31 | 19 | No | Under negotiation and June 8, 2019 | ||||||||||||||||||||
IAM National Pension Plan(a) (b)
|
51-6031295/002 | Red | Red | Implemented | 173 | 11 | — | Yes | 1/7/2022 | ||||||||||||||||||||
Teamsters Pension Trust Fund of Philadelphia and Vicinity(a)
|
23-1511735/001 | Yellow | Yellow | Implemented | 1,218 | 139 | — | N/A | (c) | ||||||||||||||||||||
Central Pension Fund of the International Union of Operating Engineers and Participating Employers(a)
|
36-6052390/001 | Green as of Jan. 31, 2020 | Green as of Jan. 31, 2019 | N/A | 59 | 6 | — | N/A | 1/10/2022 | ||||||||||||||||||||
Total | $ | 2,024 | $ | 313 | $ | 106 |
Actual Return on Plan
Assets |
|||||||||||||||||||||||||||||||||||||||||||||||||||||
In thousands |
Balance at
Beginning of Year |
Relating to Assets Still Held at Report Date | Relating to Assets Sold During the Period | Purchases | Sales | Settlements |
Balance at
End of Year |
||||||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate
|
$ | 99,223 | $ | 2,556 | $ | — | $ | 24,150 | $ | — | $ | — | $ | 125,929 | |||||||||||||||||||||||||||||||||||||||
Partnership/joint venture interests
|
149,018 | 2,845 | — | 54,543 | (31,617) | — | 174,789 | ||||||||||||||||||||||||||||||||||||||||||||||
Hedge funds
|
123,126 | 5,724 | — | — | — | (15,000) | 113,850 | ||||||||||||||||||||||||||||||||||||||||||||||
Derivative contracts
|
5 | (3) | — | — | — | — | 2 | ||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 371,372 | $ | 11,122 | $ | — | $ | 78,693 | $ | (31,617) | $ | (15,000) | $ | 414,570 | |||||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities | $ | 2,008 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 2,008 |
Actual Return on Plan
Assets |
|||||||||||||||||||||||||||||||||||||||||||||||||||||
In thousands |
Balance at
Beginning of Year |
Level 3 Assets Acquired | Relating to Assets Still Held at Report Date | Relating to Assets Sold During the Period | Purchases | Sales | Settlements |
Balance at
End of Year |
|||||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate
|
$ | — | $ | 109,047 | $ | (1,324) | $ | 2,911 | $ | — | $ | (11,411) | $ | — | $ | 99,223 | |||||||||||||||||||||||||||||||||||||
Partnership/joint venture interests
|
— | 147,225 | 3,185 | — | 133 | — | (1,525) | 149,018 | |||||||||||||||||||||||||||||||||||||||||||||
Hedge funds
|
— | 121,588 | 1,538 | — | — | — | — | 123,126 | |||||||||||||||||||||||||||||||||||||||||||||
Derivative contracts
|
— | 4 | 1 | — | — | — | — | 5 | |||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | — | $ | 377,864 | $ | 3,400 | $ | 2,911 | $ | 133 | $ | (11,411) | $ | (1,525) | $ | 371,372 | |||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities | $ | — | $ | 2,008 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 2,008 |
Year Ended | |||||||||||||||||
In thousands | December 31, 2020 | December 31, 2019 | December 30, 2018 | ||||||||||||||
Domestic | $ | (646,795) | $ | (206,270) | $ | 20,019 | |||||||||||
Foreign | (59,052) | (914) | — | ||||||||||||||
Total | $ | (705,847) | $ | (207,184) | $ | 20,019 |
Year Ended | |||||||||||||||||
In thousands | December 31, 2020 | December 31, 2019 | December 30, 2018 | ||||||||||||||
Current: | |||||||||||||||||
Federal | $ | (6,896) | $ | 113 | $ | — | |||||||||||
State and local | 1,877 | 1,725 | 1,679 | ||||||||||||||
Foreign | 1,744 | (68) | — | ||||||||||||||
Total current | (3,275) | 1,770 | 1,679 | ||||||||||||||
Deferred: | |||||||||||||||||
Federal | (20,832) | (85,144) | (2,690) | ||||||||||||||
State and local | (12,064) | (2,833) | 2,923 | ||||||||||||||
Foreign | 2,721 | 213 | — | ||||||||||||||
Total deferred | (30,175) | (87,764) | 233 | ||||||||||||||
Provision (benefit) for income taxes | $ | (33,450) | $ | (85,994) | $ | 1,912 |
Year Ended | |||||||||||||||||
December 31, 2020 | December 31, 2019 | December 30, 2018 | |||||||||||||||
Federal statutory tax rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||||||||
Increase (decrease) in taxes resulting from: | |||||||||||||||||
State and local income taxes, net of federal benefit | 1.4 | 0.7 | 21.1 | ||||||||||||||
Debt refinancing | (2.5) | — | — | ||||||||||||||
Change in valuation allowance | (9.2) | 22.6 | (13.4) | ||||||||||||||
Non-deductible meals, entertainment, and other expenses | (0.4) | (0.8) | 5.0 | ||||||||||||||
Transaction costs | (0.1) | (2.0) | — | ||||||||||||||
Goodwill Impairment | (5.5) | — | (24.1) | ||||||||||||||
Effective tax rate | 4.7 | % | 41.5 | % | 9.6 | % |
Year Ended | |||||||||||||||||
In thousands | December 31, 2020 | December 31, 2019 | |||||||||||||||
Deferred tax liabilities: | |||||||||||||||||
Fixed Assets | $ | (31,439) | $ | (30,246) | |||||||||||||
Right of use asset | (82,275) | (83,588) | |||||||||||||||
Convertible debt | (27,674) | — | |||||||||||||||
Definite and indefinite lived intangible assets | (62,666) | (85,528) | |||||||||||||||
Total deferred tax liabilities | $ | (204,054) | $ | (199,362) | |||||||||||||
Deferred tax assets: | |||||||||||||||||
Accrued compensation costs | 33,325 | 32,719 | |||||||||||||||
Accrued liabilities | 18,341 | 16,717 | |||||||||||||||
Disallowed interest | 56,527 | 11,247 | |||||||||||||||
Goodwill | 27,182 | — | |||||||||||||||
Pension and other postretirement benefit obligations | 21,525 | 56,611 | |||||||||||||||
Partnership investments including impairments | 3,837 | 7,971 | |||||||||||||||
Loss carryforwards | 233,049 | 189,912 | |||||||||||||||
Lease liabilities | 82,369 | 85,177 | |||||||||||||||
Derivative liability | 32,534 | — | |||||||||||||||
Other | 29,286 | 25,073 | |||||||||||||||
Total deferred tax assets | $ | 537,975 | $ | 425,427 | |||||||||||||
Less: Valuation allowance | (250,536) | (158,820) | |||||||||||||||
Total net deferred tax assets | $ | 287,439 | $ | 266,607 | |||||||||||||
Noncurrent net deferred tax assets (liabilities) | $ | 83,385 | $ | 67,245 |
Balance at Beginning of Period | Additions/(Reductions) Charged to Expenses | Additions/(Reductions) for Acquisitions/Dispositions | Other Additions to (Deductions from) Reserves | Foreign Currency Translation | Balance at End of Period | |||||||||||||||||||||||||||
$ | 158,820 | $ | 90,444 | $ | — | $ | — | $ | 1,272 | $ | 250,536 |
Year Ended | |||||||||||||||||
In thousands | December 31, 2020 | December 31, 2019 | December 30, 2018 | ||||||||||||||
Change in unrecognized tax benefits | |||||||||||||||||
Balance at beginning of year | $ | 34,074 | $ | 1,190 | $ | 1,160 | |||||||||||
Additions based on tax positions related to the current year | 6,617 | 658 | — | ||||||||||||||
Additions for tax positions of prior years | 1,611 | — | 30 | ||||||||||||||
Reductions for tax positions of prior years | (1,417) | (352) | — | ||||||||||||||
Increase due to current year business acquisitions | — | 32,578 | — | ||||||||||||||
Balance at end of year | $ | 40,885 | $ | 34,074 | $ | 1,190 |
Year Ended | |||||||||||||||||
In thousands | December 31, 2020 | December 31, 2019 | December 30, 2018 | ||||||||||||||
Net income (loss) attributable to Gannett | $ | (670,479) | $ | (119,842) | $ | 18,196 | |||||||||||
Basic weighted average shares outstanding | 131,742 | 67,671 | 58,014 | ||||||||||||||
Effect of dilutive securities: Stock options and restricted stock grants | — | — | 385 | ||||||||||||||
Diluted weighted average shares outstanding | 131,742 | 67,671 | 58,399 |
Year Ended | |||||||||||||||||
In thousands | December 31, 2020 | December 31, 2019 | December 30, 2018 | ||||||||||||||
Warrants | 845 | 1,362 | 1,362 | ||||||||||||||
Stock options | 6,068 | 2,905 | 700 | ||||||||||||||
Restricted stock grants (a)
|
7,694 | 9,494 | — | ||||||||||||||
2027 Notes (b)
|
27,482 | — | — |
Number of Options
(In thousands)
|
Weighted-Average Grant Date Fair Value | Weighted-Average Exercise Price |
Weighted-Average Remaining Contractual Term (Years)
|
||||||||||||||||||||||||||
Outstanding at December 30, 2018
|
2,905 | $ | 3.59 | $ | 15.31 | 7.3 | |||||||||||||||||||||||
Granted | 3,163 | $ | 0.11 | $ | 15.50 | ||||||||||||||||||||||||
Outstanding at December 31, 2019
|
6,068 | $ | 1.78 | $ | 14.70 | 8.2 | |||||||||||||||||||||||
Granted | — | $ | — | $ | — | ||||||||||||||||||||||||
Outstanding at December 31, 2020
|
6,068 | $ | 1.78 | $ | 13.97 | 7.2 | |||||||||||||||||||||||
Exercisable at December 31, 2020
|
4,276 | $ | 1.78 | $ | 13.33 | 6.4 |
Year Ended | |||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||
Number
of RSUs & PSUs
(In thousands)
|
Weighted-
Average Grant Date Fair Value |
Number
of RSUs & PSUs
(In thousands)
|
Weighted-
Average Grant Date Fair Value |
||||||||||||||||||||
Unvested at beginning of year | 7,368 | $ | 6.28 | — | $ | — | |||||||||||||||||
Granted | 282 | 0.90 | 10,466 | 6.28 | |||||||||||||||||||
Vested | (4,713) | 6.27 | (3,081) | 6.28 | |||||||||||||||||||
Forfeited | (424) | 2.81 | (17) | 6.28 | |||||||||||||||||||
Unvested at end of year | 2,513 | $ | 6.28 | 7,368 | $ | 6.28 |
Year Ended | |||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | December 30, 2018 | |||||||||||||||||||||||||||||||||
Number
of RSAs
(In thousands)
|
Weighted-
Average Grant Date Fair Value |
Number
of RSAs
(In thousands)
|
Weighted-
Average Grant Date Fair Value |
Number
of RSAs
(In thousands)
|
Weighted-
Average Grant Date Fair Value |
||||||||||||||||||||||||||||||
Unvested at beginning of year | 317 | $ | 14.61 | 384 | $ | 16.11 | 342 | $ | 16.86 | ||||||||||||||||||||||||||
Granted | 6,781 | 3.35 | 301 | 13.62 | 227 | 16.43 | |||||||||||||||||||||||||||||
Vested | (1,280) | 5.72 | (274) | 15.45 | (170) | 18.01 | |||||||||||||||||||||||||||||
Forfeited | (637) | 3.90 | (94) | 15.12 | (15) | 16.55 | |||||||||||||||||||||||||||||
Unvested at end of year | 5,181 | $ | 3.39 | 317 | $ | 14.61 | 384 | $ | 16.11 |
In thousands | Pension and Postretirement Benefit Plans | Foreign Currency Translation | Total | ||||||||||||||
Balance at December 31, 2017 | $ | (5,461) | $ | — | $ | (5,461) | |||||||||||
Other comprehensive loss before reclassifications | (1,509) | — | (1,509) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive loss (a)
|
89 | — | 89 | ||||||||||||||
Net current period other comprehensive loss, net of taxes | (1,420) | — | (1,420) | ||||||||||||||
Balance at December 30, 2018 | $ | (6,881) | $ | — | $ | (6,881) | |||||||||||
Other comprehensive income before reclassifications | 7,731 | 7,266 | 14,997 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (a)
|
86 | — | 86 | ||||||||||||||
Net current period other comprehensive income, net of taxes | 7,817 | 7,266 | 15,083 | ||||||||||||||
Balance at December 31, 2019 | $ | 936 | $ | 7,266 | $ | 8,202 | |||||||||||
Other comprehensive income before reclassifications | 39,479 | 2,466 | 41,945 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (a) (b)
|
26 | — | 26 | ||||||||||||||
Net current period other comprehensive income, net of taxes | 39,505 | 2,466 | 41,971 | ||||||||||||||
Balance at December 31, 2020 | $ | 40,441 | $ | 9,732 | $ | 50,173 |
In thousands | Publishing | Digital Marketing Solutions | Corporate and Other | Intersegment Eliminations | Consolidated | ||||||||||||||||||||||||
Year ended December 31, 2020 | |||||||||||||||||||||||||||||
Advertising and marketing services - external sales | $ | 1,295,158 | $ | 411,940 | $ | 3,146 | $ | — | $ | 1,710,244 | |||||||||||||||||||
Advertising and marketing services - intersegment sales | 114,342 | — | — | (114,342) | — | ||||||||||||||||||||||||
Circulation | 1,391,983 | — | 13 | — | 1,391,996 | ||||||||||||||||||||||||
Other | 278,964 | 16,665 | 7,801 | — | 303,430 | ||||||||||||||||||||||||
Total operating revenues | $ | 3,080,447 | $ | 428,605 | $ | 10,960 | $ | (114,342) | $ | 3,405,670 | |||||||||||||||||||
Adjusted EBITDA (non-GAAP basis) | $ | 459,195 | $ | 24,361 | $ | (69,661) | $ | — | $ | 413,895 | |||||||||||||||||||
Year ended December 31, 2019 | |||||||||||||||||||||||||||||
Advertising and marketing services - external sales | $ | 819,046 | $ | 131,003 | $ | 2,595 | $ | — | $ | 952,644 | |||||||||||||||||||
Advertising and marketing services - intersegment sales | 78,539 | — | — | (78,539) | — | ||||||||||||||||||||||||
Circulation | 704,811 | — | 31 | — | 704,842 | ||||||||||||||||||||||||
Other | 190,256 | 18,239 | 1,928 | — | 210,423 | ||||||||||||||||||||||||
Total operating revenues | $ | 1,792,652 | $ | 149,242 | $ | 4,554 | $ | (78,539) | $ | 1,867,909 | |||||||||||||||||||
Adjusted EBITDA (non-GAAP basis) | $ | 268,916 | $ | (3,279) | $ | (41,766) | $ | — | $ | 223,871 | |||||||||||||||||||
Year ended December 30, 2018 | |||||||||||||||||||||||||||||
Advertising and marketing services - external sales | $ | 704,945 | $ | 80,086 | $ | 1,546 | $ | — | $ | 786,577 | |||||||||||||||||||
Advertising and marketing services - intersegment sales | 68,089 | — | — | (68,089) | — | ||||||||||||||||||||||||
Circulation | 574,961 | — | 2 | — | 574,963 | ||||||||||||||||||||||||
Other | 147,129 | 15,785 | 1,570 | — | 164,484 | ||||||||||||||||||||||||
Total operating revenues | $ | 1,495,124 | $ | 95,871 | $ | 3,118 | $ | (68,089) | $ | 1,526,024 | |||||||||||||||||||
Adjusted EBITDA (non-GAAP basis) | $ | 220,415 | $ | (6,404) | $ | (33,718) | $ | — | $ | 180,293 |
Year Ended | |||||||||||||||||
In thousands | December 31, 2020 | December 31, 2019 | December 30, 2018 | ||||||||||||||
Net income (loss) attributable to Gannett | $ | (670,479) | $ | (119,842) | $ | 18,196 | |||||||||||
Provision (benefit) for income taxes | (33,450) | (85,994) | 1,912 | ||||||||||||||
Interest expense | 228,513 | 63,660 | 36,072 | ||||||||||||||
Loss on early extinguishment of debt | 43,760 | 6,058 | 2,886 | ||||||||||||||
Non-operating pension income | (72,149) | (9,085) | (1,435) | ||||||||||||||
Unrealized loss on Convertible notes derivative | 74,329 | — | — | ||||||||||||||
Gain on sale of investments | (7,995) | — | — | ||||||||||||||
Other non-operating (income) expense, net | (8,499) | (426) | 597 | ||||||||||||||
Depreciation and amortization | 263,819 | 111,882 | 84,791 | ||||||||||||||
Integration and reorganization costs | 145,731 | 52,212 | 15,011 | ||||||||||||||
Acquisition costs | 11,152 | 60,618 | 2,651 | ||||||||||||||
Asset impairments | 11,029 | 3,009 | 1,538 | ||||||||||||||
Goodwill and intangible impairments | 393,446 | 100,743 | — | ||||||||||||||
Net (gain) loss on sale or disposal of assets | (5,680) | 4,723 | (3,971) | ||||||||||||||
Share-based compensation expense | 26,350 | 11,324 | 3,156 | ||||||||||||||
Other items | 14,018 | 24,989 | 18,889 | ||||||||||||||
Adjusted EBITDA (non-GAAP basis) | $ | 413,895 | $ | 223,871 | $ | 180,293 |
Year Ended | |||||||||||||||||
In thousands | December 31, 2020 | December 31, 2019 | December 30, 2018 | ||||||||||||||
Management fee expense | $ | 16,972 | $ | 10,992 | $ | 10,674 | |||||||||||
Incentive fee expense | — | 4,067 | 11,143 | ||||||||||||||
Management fees paid | 16,327 | 11,078 | 9,619 | ||||||||||||||
Incentive fees paid | 2,602 | 6,675 | 14,129 | ||||||||||||||
Reimbursement for expenses | 2,628 | 2,905 | 2,501 |
Exhibit
Number |
Exhibit | Location | ||||||||||||
2.1 | Agreement and Plan of Merger, dated as of August 5, 2019, by and among New Media Investment Group Inc., Gannett Co., Inc., Arctic Holdings LLC and Arctic Acquisition Corp. | |||||||||||||
2.2 | First Amendment to Agreement and Plan of Merger, dated as of October 29, 2019, by and among New Media Investment Group Inc., Gannett Co., Inc., Arctic Holdings LLC and Arctic Acquisition Corp. | |||||||||||||
3.1 | Amended and Restated Certificate of Incorporation of the Company. | |||||||||||||
3.2 | Certificate of Amendment to the Amended and Restated Certificate of Incorporation of the Company. | |||||||||||||
3.3 |
Certificate of Designation of Series A Junior Participating Preferred Stock of Gannett Co., Inc.
|
|||||||||||||
3.4 |
Amended and Restated Bylaws of the Company.
|
|||||||||||||
4.1 | Indenture (including Form of Note) with respect to 4.750% Convertible Senior Notes due 2024, dated as of April 9, 2018, between Gannett Co., Inc. and U.S. Bank National Association, as trustee. | |||||||||||||
4.2 | First Supplemental Indenture, dated as of November 19, 2019, by and among Gannett Co., Inc., New Media Investment Group Inc., and U.S. Bank National Association. | |||||||||||||
4.3 |
Indenture with respect to 6.000% Convertible Senior Secured Notes due 2027, dated as of November 17, 2020, by and between Gannett Co., Inc., the Subsidiary Guarantors and U.S. Bank National Association, as trustee.
|
|||||||||||||
4.4 | First Supplemental Indenture, dated as of December 21, 2020, by and between Gannett Co., Inc., the Subsidiary Guarantors from time to time party thereto and U.S. Bank National Association, as trustee. | |||||||||||||
4.5 | Second Supplemental Indenture, dated as of February 9, 2021, by and between the Company, the Subsidiary Guarantors from time to time party thereto and U.S. Bank National Associations, as trustee. | |||||||||||||
4.6 | Global Warrant Certificate of New Media Investment Group Inc. (amended). | Included in Exhibit 10.45. | ||||||||||||
4.7 | Description of Securities Registered under Section 12 of the Securities Exchange Act of 1934. | |||||||||||||
4.8 |
Section 382 Rights Agreement, dated as of April 6, 2020, by and between Gannett Co., Inc. and American Stock Transfer & Trust Company LLC, as Rights Agent.
|
10.1 |
Credit Agreement, dated as of November 19, 2019, by and among Gannett Co., Inc., Gannett Holdings LLC, each person listed as a guarantor on the signature pages thereto, the lenders from time to time party thereto and Cortland Capital Market Services LLC, as collateral agent and administrative agent.
|
|||||||||||||
10.2 | Amendment No. 1, dated as of December 9, 2019, to the Credit Agreement, by and among Gannett Co., Inc., Gannett Holdings LLC, each person listed as a guarantor on the signature pages thereto, the lenders from time to time party thereto and Cortland Capital Market Services LLC, as collateral agent and administrative agent. | |||||||||||||
10.3 | Amendment No. 2, dated as of April 6, 2020, to the Credit Agreement, by and among Gannett Co., Inc., Gannett Holdings LLC, each person listed as a guarantor on the signature pages thereto, the lenders from time to time party thereto and Cortland Capital Market Services LLC, as collateral agent and administrative agent. |
|
||||||||||||
10.4 | Amendment No. 3, dated as of October 30, 2020, to the Credit Agreement, by and among Gannett Co., Inc., Gannett Holdings LLC, each Guarantor party thereto, the lenders from time to time party thereto and Alter Domus Products Corp. as collateral and administrative agent. | |||||||||||||
10.5 |
Amendment No. 4, dated as of November 17, 2020, to the Credit Agreement, by and among Gannett Co., Inc., Gannett Holdings LLC, each Guarantor party thereto, the Lenders from time to time party thereto and Alter Domus Products Corp. as collateral and administrative agent.
|
|||||||||||||
10.6 |
Amendment No. 5, dated as of December 21, 2020, to the Credit Agreement, by and among Gannett Co., Inc., Gannett Holdings LLC, the lenders party thereto and Alter Domus Products Corp., as administrative agent and collateral agent.
|
|||||||||||||
10.7 | Form of Registration Rights Agreement between New Media Investment Group Inc. and Omega Advisors, Inc. | |||||||||||||
10.8 | Registration Rights Agreement, dated as of November 19, 2019, by and among Gannett Co., Inc., FIG LLC and such other persons from time to time party thereto. | |||||||||||||
10.9 |
Amendment No. 1, dated as of November 17, 2020, to the Registration Rights Agreement, by and among Gannett Co., Inc. and FIG LLC and such other persons from time to time party thereto.
|
|||||||||||||
10.10 | Amended and Restated Management and Advisory Agreement, dated August 5, 2019, between New Media Investment Group Inc. and FIG LLC. | |||||||||||||
10.11 | Termination Agreement dated as of December 21, 2020, by and between Gannett Co., Inc. and FIG LLC. | |||||||||||||
10.12 | 2020 Omnibus Incentive Compensation Plan, adopted as of February 26, 2020.* | |||||||||||||
10.13 |
Amendment No. 1 to 2020 Omnibus Incentive Compensation Plan.*
|
|
||||||||||||
10.14 | Form of Nonqualified Stock Option Agreement between New Media Investment Group Inc. and Fortress Operating Entity I LP.* | |||||||||||||
10.15 | Form of Nonqualified Stock Option Agreement between New Media Investment Group Inc. and Fortress Operating Entity I LP. | Included in Exhibit 10.10. | ||||||||||||
10.16 |
Form of Gannett Co., Inc. Director Award Agreement (2020 Omnibus Incentive Compensation Plan).*
|
|||||||||||||
10.17 |
Gannett Co., Inc. Form of Employee Restricted Stock Grant Agreement.*
|
|||||||||||||
10.18 | 2015 Omnibus Incentive Compensation Plan.* |
10.19 | Amendment No. 1 to 2015 Omnibus Incentive Compensation Plan.* | |||||||||||||
10.20 | Amendment No. 2 to 2015 Omnibus Incentive Compensation Plan.* | |||||||||||||
10.21 |
Form of Gannett Co., Inc. Director Award Agreement (2015 Omnibus Incentive Compensation Plan).*
|
|||||||||||||
10.22 | Form of Executive Officer Restricted Stock Unit Award Agreement (2019).* | |||||||||||||
10.23 | Form of Executive Officer Performance Shares Award Agreement (2019).* | |||||||||||||
10.24 | Form of Executive Officer Performance Units Award Agreement (2019).* | |||||||||||||
10.25 | 2015 Change in Control Severance Plan, as amended and restated as of December 23, 2020.* | |||||||||||||
10.26 |
Key Employee Severance Plan, as amended and restated as of December 23, 2020.*
|
|||||||||||||
10.27 | Offer Letter of Employment, dated August 4, 2019, by and between Gannett Co., Inc. and Paul J. Bascobert.* | |||||||||||||
10.28 | Transition Services Agreement, dated as of January 6, 2020, by and between Gannett Co., Inc. and Alison K. Engel.* | |||||||||||||
10.29 | Employment Retention Agreement, dated as of January 15, 2019, by and between Gannett Co., Inc. and Alison K. Engel.* | |||||||||||||
10.30 | Amended and Restated 401(k) Savings Plan of Gannett Co., Inc. as of January 1, 2019.* | |||||||||||||
10.31 | Amendment No. 1 to 401(k) Savings Plan of Gannett Co., Inc. as of January 1, 2019.* | |||||||||||||
10.32 | 2015 Deferred Compensation Plan Rules for Pre-2005 Deferrals.* | |||||||||||||
10.33 | Amendment No. 1 to 2015 Deferred Compensation Plan Rules for Pre-2005 Deferrals.* | |||||||||||||
10.34 | Amendment No. 2 to 2015 Deferred Compensation Plan Rules for Pre-2005 Deferrals.* | |||||||||||||
10.35 | Amendment No. 3 to 2015 Deferred Compensation Plan Rules for Pre-2005 Deferrals.* | |||||||||||||
10.36 | 2015 Deferred Compensation Plan Rules for Post-2004 Deferrals.* | |||||||||||||
10.37 | Amendment No. 1 to 2015 Deferred Compensation Plan Rules for Post-2004 Deferrals.* | |||||||||||||
10.38 | Amendment No. 2 to 2015 Deferred Compensation Plan Rules for Post-2004 Deferrals.* | |||||||||||||
10.39 | Amendment No. 3 to 2015 Deferred Compensation Plan Rules for Post-2004 Deferrals.* | |||||||||||||
10.40 | Amendment No. 4 to 2015 Deferred Compensation Plan Rules for Post-2004 Deferrals.* | |||||||||||||
10.41 | Amendment No. 5 to 2015 Deferred Compensation Plan Rules for Post-2004 Deferrals.* |
10.42 | Amendment No. 6 to 2015 Deferred Compensation Plan Rules for Post-2004 Deferrals.* | |||||||||||||
10.43 | Amendment No. 7 to 2015 Deferred Compensation Plan Rules for Post-2004 Deferrals.* | |||||||||||||
10.44 | Form of Indemnification Agreement to be entered into by New Media Investment Group Inc. with each of its executive officers and directors. | |||||||||||||
10.45 | Amended and Restated Warrant Agreement dated January 15, 2014, by and between New Media Investment Group Inc. and American Stock & Transfer Company, LLC. | |||||||||||||
10.46 | Offer Letter Agreement, dated March 25, 2020, by and between Gannett Co., Inc. and Douglas E. Horne.* | |||||||||||||
10.47 |
Exchange Agreement, dated as of November 17, 2020, by and among Gannett Co., Inc. and the other Persons party thereto.
|
|||||||||||||
10.48 |
Investor Agreement, dated as of November 17, 2020, by and among Gannett Co., Inc., the other Persons signatory thereto and such other Persons, if any, that from time to time become party thereto as Holders.
|
|||||||||||||
10.49 |
Gannett Co., Inc. Performance Restricted Stock Unit Grant Agreement, dated as of January 8, 2021.*
|
|||||||||||||
10.50 |
Offer Letter Agreement, dated December 21, 2020, by and between Gannett Co., Inc. and Michael E. Reed.*
|
|||||||||||||
10.51 |
Credit Agreement dated as of February 9, 2021, among the Company, Gannett Holdings LLC, each Guarantor party thereto, the Lenders from time to time party thereto and Citibank, N.A., as collateral and administrative agent.
|
|||||||||||||
21.1 | List of subsidiaries. | |||||||||||||
23.1 | Consent of Ernst & Young LLP. | |||||||||||||
31.1 | Rule 13a-14(a)/15d-14(d) Certification of Principal Executive Officer under the Securities Exchange Act of 1934. | |||||||||||||
31.2 | Rule 13a-14(a)/15d-14(d) Certification of Principal Financial Officer under the Securities Exchange Act of 1934. | |||||||||||||
32.1 | Section 1350 Certification of Principal Executive Officer. | |||||||||||||
32.2 | Section 1350 Certification of Principal Financial Officer. | |||||||||||||
101 |
The following financial information from Gannett Co., Inc. Annual Report on Form 10-K for the year ended December 31, 2020, formatted in Inline XBRL includes: (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Operations and Comprehensive Income (Loss); (iii) Consolidated Statements of Cash Flows; (iv) Consolidated Statements of Equity; and (v) the Notes to Consolidated Financial Statements.
|
Filed herewith. | ||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | Filed herewith. |
* | Asterisks identify management contracts and compensatory plans or arrangements. |
Dated: February 26, 2021
|
GANNETT CO., INC. (Registrant) | ||||||||||
By: | /s/ Douglas E. Horne | ||||||||||
Douglas E. Horne | |||||||||||
Chief Financial Officer and Chief Accounting Officer (principal financial and principal accounting officer) |
Dated: February 26, 2021 | /s/ Michael E. Reed | |||||||
Michael E. Reed | ||||||||
Chief Executive Officer and | ||||||||
President (principal executive officer) | ||||||||
Dated: February 26, 2021 | /s/ Douglas E. Horne | |||||||
Douglas E. Horne | ||||||||
Chief Financial Officer and | ||||||||
Chief Accounting Officer (principal financial and principal accounting officer) |
Dated: February 26, 2021 | /s/ Theodore Janulis | |||||||
Theodore Janulis, Director | ||||||||
Dated: February 26, 2021 | /s/ John Jeffry Louis | |||||||
John Jeffry Louis, Director | ||||||||
Dated: February 26, 2021 | /s/ Maria Miller | |||||||
Maria Miller, Director | ||||||||
Dated: February 26, 2021 | /s/ Michael E. Reed | |||||||
Michael E. Reed | ||||||||
Director, Chairman | ||||||||
Dated: February 26, 2021 | /s/ Debra Sandler | |||||||
Debra Sandler, Director | ||||||||
Dated: February 26, 2021 | /s/ Kevin Sheehan | |||||||
Kevin Sheehan, Director | ||||||||
Dated: February 26, 2021 | /s/ Laurence Tarica | |||||||
Laurence Tarica, Director | ||||||||
Dated: February 26, 2021 | /s/ Barbara Wall | |||||||
Barbara Wall, Director |
GANNETT HOLDINGS LLC | |||||
By | |||||
Name: Michael E. Reed | |||||
Title: Chief Executive Officer |
GANNETT CO., INC. | |||||
By | |||||
Name: Ivy Hernandez | |||||
Title: Secretary |
ALTER DOMUS PRODUCTS CORP., as Administrative Agent and Collateral Agent,
|
|||||
By | |||||
Name: Matthew Trybula
|
|||||
Title: Associate Counsel
|
Please sign both copies of this Award Agreement to evidence your agreement with the terms hereof. Keep one copy and return the other to the undersigned. Please keep the enclosed Terms and Conditions for future reference. |
Please sign both copies of this Award Agreement to evidence your agreement with the terms hereof. Keep one copy and return the other to the undersigned. Please keep the enclosed Terms and Conditions for future reference. |
Gannett Co., Inc.
List of Subsidiaries
|
Name of Subsidiary | Jurisdiction of Incorporation or Organization | ||||
Gannett Holdings LLC | Delaware | ||||
Gannett Media Corp. | Delaware | ||||
Action Advertising, Inc. | Wisconsin | ||||
AfterCollege, Inc. | California | ||||
Albuquerque Publishing Company | New Mexico | ||||
Alexandria Newspapers, Inc. | Louisiana | ||||
American Influencer Awards, LLC | Delaware | ||||
Arizona News Service, LLC | Delaware | ||||
Baxter County Newspapers, Inc. | Arkansas | ||||
Bizzy, Inc. | Delaware | ||||
Blue Dot Seats, LLC | Wisconsin | ||||
Boat Spinco, Inc. | Wisconsin | ||||
BridgeTower Media DLN, LLC | Delaware | ||||
BridgeTower Media Holding Company | Delaware | ||||
BridgeTower Media, LLC | Delaware | ||||
CA Alabama Holdings, Inc. | Delaware | ||||
CA Florida Holdings, LLC | Delaware | ||||
CA Louisiana Holdings, Inc. | Delaware | ||||
CA Massachusetts Holdings, Inc. | Delaware | ||||
CA North Carolina Holdings, Inc. | Delaware | ||||
CA South Carolina Holdings, Inc. | Delaware | ||||
Circle Centre Partners Limited Partnership | Delaware |
Citizen Publishing Company | Arizona | ||||
CMGI (Moduslink) | Delaware | ||||
CN Group Limited | Delaware | ||||
CN Group Property Limited | United Kingdom | ||||
Copley Ohio Newspapers, Inc. | Illinois | ||||
Cumbrian Newspapers Limited | United Kingdom | ||||
Cummings Acquisition, LLC | Delaware | ||||
CyberInk, LLC | Pennsylvania | ||||
Daily Journal of Commerce, Inc. | Delaware | ||||
Daily Reporter Publishing Company | Delaware | ||||
DB Acquisition, Inc. | Delaware | ||||
DB Arkansas Holdings, Inc. | Delaware | ||||
DB Iowa Holdings, Inc. | Delaware | ||||
DB North Carolina Holdings, Inc. | Delaware | ||||
DB Oklahoma Holdings, Inc. | Delaware | ||||
DB Tennessee Holdings, Inc. | Delaware | ||||
DB Texas Holdings, Inc. | Delaware | ||||
DB Washington Holdings, Inc. | Delaware | ||||
DealOn, LLC | Delaware | ||||
Des Moines Press Citizen LLC | Delaware | ||||
Des Moines Register and Tribune Company | Iowa | ||||
Desert Sun Publishing LLC | Delaware | ||||
Desk Spinco, Inc. | Wisconsin | ||||
Detroit Free Press, Inc. | Michigan | ||||
Detroit Newspaper Partnership, L.P. | Delaware | ||||
DiGiCol, Inc. | Delaware |
Dolco Acquisition, LLC | Delaware | ||||
ENHE Acquisition, LLC | Delaware | ||||
EnMotive Company LLC | Delaware | ||||
Enterprise NewsMedia Holding, LLC | Delaware | ||||
Enterprise NewsMedia, LLC | Delaware | ||||
Enterprise Publishing Company, LLC | Delaware | ||||
Evansville Courier Company, Inc. | Indiana | ||||
Federated Publications, Inc. | Delaware | ||||
Finance and Commerce, Inc. | Minnesota | ||||
FoodBlogs, LLC | Arizona | ||||
Forest Machine Journal Limited | United Kingdom | ||||
Gannett GP Media, Inc. | Delaware | ||||
Gannett International Communications, Inc. | Delaware | ||||
Gannett International Finance LLC | Delaware | ||||
Gannett International Finance LLP | Delaware | ||||
Gannett International Holdings LLP | United Kingdom | ||||
Gannett Media Services, LLC | Delaware | ||||
Gannett MHC Media, Inc. | Delaware | ||||
Gannett Missouri Publishing, Inc. | Kansas | ||||
Gannett Publishing Services, LLC | Delaware | ||||
Gannett Retail Advertising Group, Inc. | Delaware | ||||
Gannett River States Publishing Corporation | Arkansas | ||||
Gannett Satellite Information Network, LLC | Delaware | ||||
Gannett Supply Corporation | Delaware | ||||
Gannett U.K. Limited | Delaware | ||||
Gannett UK Media, LLC | Delaware |
Gannett Ventures LLC | Delaware | ||||
Gannett Vermont Publishing, Inc. | Delaware | ||||
GateHouse Media Alaska Holdings, Inc. | Delaware | ||||
GateHouse Media Arkansas Holdings, Inc. | Delaware | ||||
GateHouse Media California Holdings, Inc. | Delaware | ||||
GateHouse Media Colorado Holdings, Inc. | Delaware | ||||
GateHouse Media Connecticut Holdings, Inc. | Delaware | ||||
GateHouse Media Corning Holdings, Inc. | Nevada | ||||
GateHouse Media Delaware Holdings, Inc. | Delaware | ||||
GateHouse Media Directories Holdings, Inc. | Delaware | ||||
GateHouse Media Freeport Holdings, Inc. | Delaware | ||||
GateHouse Media Georgia Holdings, Inc. | Delaware | ||||
GateHouse Media Holdco, LLC | Delaware | ||||
GateHouse Media Illinois Holdings II, Inc. | Delaware | ||||
GateHouse Media Illinois Holdings, Inc. | Delaware | ||||
GateHouse Media Indiana Holdings, Inc. | Delaware | ||||
GateHouse Media Intermediate Holdco, LLC | Delaware | ||||
GateHouse Media Iowa Holdings, Inc. | Delaware | ||||
GateHouse Media Kansas Holdings II, Inc. | Delaware | ||||
GateHouse Media Kansas Holdings, Inc. | Delaware | ||||
GateHouse Media Lansing Printing, Inc. | Delaware | ||||
GateHouse Media Louisiana Holdings, Inc. | Delaware | ||||
GateHouse Media Macomb Holdings, Inc. | Delaware | ||||
GateHouse Media Management Services, Inc. | Delaware | ||||
GateHouse Media Maryland Holdings, Inc. | Delaware | ||||
GateHouse Media Massachusetts I, Inc. | Delaware |
GateHouse Media Massachusetts II, Inc. | Delaware | ||||
GateHouse Media Michigan Holdings II, Inc. | Delaware | ||||
GateHouse Media Michigan Holdings, Inc. | Delaware | ||||
GateHouse Media Minnesota Holdings, Inc. | Delaware | ||||
GateHouse Media Missouri Holdings II, Inc. | Delaware | ||||
GateHouse Media Missouri Holdings, Inc. | Delaware | ||||
GateHouse Media Nebraska Holdings, Inc. | Delaware | ||||
GateHouse Media New York Holdings, Inc. | Delaware | ||||
GateHouse Media North Dakota Holdings, Inc. | Delaware | ||||
GateHouse Media Ohio Holdings II, Inc. | Delaware | ||||
GateHouse Media Ohio Holdings, Inc. | Delaware | ||||
GateHouse Media Oklahoma Holdings, Inc. | Delaware | ||||
GateHouse Media Operating, LLC | Delaware | ||||
GateHouse Media Oregon Holdings, Inc. | Delaware | ||||
GateHouse Media Pennsylvania Holdings, Inc. | Delaware | ||||
GateHouse Media South Dakota Holdings, Inc. | Delaware | ||||
GateHouse Media Suburban Newspapers, Inc. | Delaware | ||||
GateHouse Media Tennessee Holdings, Inc. | Delaware | ||||
GateHouse Media Texas Holdings II, Inc. | Delaware | ||||
GateHouse Media Texas Holdings, Inc. | Delaware | ||||
GateHouse Media Virginia Holdings, Inc. | Delaware | ||||
GateHouse Media, LLC | Delaware | ||||
GCCC, LLC | Delaware | ||||
GCOE, LLC | Delaware | ||||
George W. Prescott Publishing Company, LLC | Delaware | ||||
GFHC, LLC | Delaware |
GiddyUp Events LLC | Maine | ||||
GNSS LLC | Delaware | ||||
Good Worldwide, Inc. | Delaware | ||||
Grateful Media, LLC | Delaware | ||||
Guam Publications, Incorporated | Hawaii | ||||
Idaho Business Review, LLC | Idaho | ||||
Imagn Content Services, LLC | Florida | ||||
J. Catherall & Co. (Printers) Limited | United Kingdom | ||||
Journal Community Publishing Group, Inc. | Wisconsin | ||||
Journal Media Group, Inc. | Wisconsin | ||||
Journal Sentinel Inc. | Wisconsin | ||||
Kickserv, Inc. | Delaware | ||||
Lawyer's Weekly, LLC | Delaware | ||||
Liberty SMC, L.L.C. | Delaware | ||||
LMG Maine Holdings, Inc. | Delaware | ||||
LMG Massachusetts, Inc. | Massachusetts | ||||
LMG Nantucket, Inc. | Massachusetts | ||||
LMG National Publishing, Inc. | Delaware | ||||
LMG Rhode Island Holdings, Inc. | Delaware | ||||
LMG Stockton, Inc. | Delaware | ||||
Local Media Group Holdings LLC | Delaware | ||||
Local Media Group, Inc. | Delaware | ||||
LocaliQ Limited | United Kingdom | ||||
LocalIQ LLC | Delaware | ||||
Loco Sports, LLC | Massachusetts | ||||
Long Island Business News, LLC | Delaware |
Low Realty, LLC | Delaware | ||||
LRT Four Hundred, LLC | Delaware | ||||
Media Consortium, LLC | Delaware | ||||
Memphis Publishing Company | Delaware | ||||
Milwaukee Marathon LLC | Wisconsin | ||||
Mineral Daily News Tribune, Inc. | West Virginia | ||||
Missouri Lawyers Media, LLC | Delaware | ||||
Moonlighting, Inc. | Delaware | ||||
Multimedia, Inc. | South Carolina | ||||
New Media Holdings I LLC | Delaware | ||||
New Media Holdings II LLC | Delaware | ||||
New Media Ventures Group LLC | Delaware | ||||
New Orleans Publishing Group, L.L.C. | Louisiana | ||||
News Leader, Inc. | Louisiana | ||||
News.me Inc. | Delaware | ||||
Newsquest (Berkshire) Limited | United Kingdom | ||||
Newsquest (Clyde & Forth Press) Limited | United Kingdom | ||||
Newsquest (Essex) Limited | United Kingdom | ||||
Newsquest (Herald & Times) Limited | United Kingdom | ||||
Newsquest (Herts and Bucks) Limited | United Kingdom | ||||
Newsquest (London & Essex) Limited | United Kingdom | ||||
Newsquest (Midlands South) Limited | United Kingdom | ||||
Newsquest (Oxfordshire & Wiltshire) Limited | United Kingdom | ||||
Newsquest (York) Limited | United Kingdom | ||||
Newsquest Capital Limited | United Kingdom | ||||
Newsquest Limited | United Kingdom |
Newsquest Media (Southern) Limited | United Kingdom | ||||
Newsquest Media Group Limited | United Kingdom | ||||
Newsquest Pension Trustee Limited | United Kingdom | ||||
Newsquest Printing (Glasgow) Limited | United Kingdom | ||||
Newsquest Specialist Media Limited | United Kingdom | ||||
NOPG, L.L.C. | Louisiana | ||||
PA Group Ltd. | Republic of Malta | ||||
Pacific Media, Inc. | Delaware | ||||
Partridge Printers Limited | United Kingdom | ||||
Phoenix Newspapers, Inc. | Arizona | ||||
Placester, Inc. | Delaware | ||||
Press-Citizen Company, Inc. | Iowa | ||||
Reach plc | United Kingdom | ||||
ReachLocal Australia Pty Ltd | Australia | ||||
ReachLocal Canada, Inc. | Delaware | ||||
ReachLocal DP, Inc. | Delaware | ||||
ReachLocal Europe B.V. | The Netherlands | ||||
ReachLocal GmbH | Germany | ||||
ReachLocal International GP LLC | Delaware | ||||
ReachLocal International, Inc. | Delaware | ||||
ReachLocal Mexico S. De R.L. de C.V. | Mexico | ||||
Reachlocal New Zealand Ltd. | New Zealand | ||||
ReachLocal Services Private Limited | India | ||||
ReachLocal, Inc. | Delaware | ||||
Reno Newspapers, Inc. | Nevada | ||||
RL International Investment C.V. | The Netherlands |
Rugged Events Canada LTD | British Columbia | ||||
Salinas Newspapers LLC | California | ||||
Scripps NP Operating, LLC | Wisconsin | ||||
Scroll Labs Inc. | Delaware | ||||
Seacoast Newspapers, Inc. | New Hampshire | ||||
Sedona Publishing Company, Inc. | Arizona | ||||
Serviz, Inc. | Delaware | ||||
Sopress Investments Limited | United Kingdom | ||||
Spirited Media, Inc. | Delaware | ||||
Starline Printing Company, LLLP | New Mexico | ||||
State-Kilbourn Holdings LLC | Delaware | ||||
SureWest Directories | California | ||||
Tap-on-it, LLC | Delaware | ||||
Terry Newspapers, Inc. | Iowa | ||||
Texas-New Mexico Newspapers, LLC | Delaware | ||||
Thanksgiving Ventures, LLC | Arizona | ||||
The Advertiser Company | Alabama | ||||
The Courier-Journal, Inc. | Delaware | ||||
The Daily Record Company, LLC | Delaware | ||||
The Desert Sun Publishing Co. | California | ||||
The Journal Record Publishing Co., LLC | Delaware | ||||
The Mail Tribune, Inc. | Delaware | ||||
The Nickel of Medford, Inc. | Oregon | ||||
The NWS Company, LLC | Delaware | ||||
The Peoria Journal Star, Inc. | Illinois | ||||
The Sun Company of San Bernardino, California LLC | California |
The Times Herald Company | Michigan | ||||
This is Essex Limited | United Kingdom | ||||
ThriveHive, Inc. | Delaware | ||||
timeRAZOR, Inc. (d/b/a Gravy) | Virginia | ||||
TNI Partners | Arizona | ||||
Ultra Parcel Logistics, LLC | Delaware | ||||
UpCurve Cloud LLC | Delaware | ||||
UpCurve, Inc. | Delaware | ||||
USA Today Sports Media Group, LLC | Delaware | ||||
Ventures Endurance Events, LLC | Massachusetts | ||||
Ventures Endurance, LLC | Delaware | ||||
Visalia Newspapers LLC | California | ||||
Weymouth Football Club | United Kingdom | ||||
William Trimble Limited | United Kingdom | ||||
Wordstream, Inc. | Delaware | ||||
WP Publishing | United Kingdom | ||||
W-Systems Corp. | Nevada | ||||
x.com, Inc. | Delaware | ||||
York Daily Record-York Sunday News LLC | Delaware | ||||
York Dispatch LLC | Delaware | ||||
York Newspaper Company | Pennsylvania | ||||
York Newspapers Holdings, L.P. | Delaware | ||||
York Newspapers Holdings, LLC | Delaware | ||||
York Partnership Holdings, LLC | Delaware |
/s/ Michael E. Reed
|
|||||
Michael E. Reed
President and Chief Executive Officer (principal executive officer) |
/s/ Douglas E. Horne
|
|||||
Douglas E. Horne
Chief Financial Officer and Chief Accounting Officer (principal financial and principal accounting officer)
|
/s/ Michael E. Reed
|
|||||
Michael E. Reed
President and Chief Executive Officer (principal executive officer) |
/s/ Douglas E. Horne
|
|||||
Douglas E. Horne
Chief Financial Officer and Chief Accounting Officer (principal financial and principal accounting officer)
|