TEGNA (TGNA) 10-Q 4 May 10 2010 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information (USD $)
	3 Months Ended Mar. 28, 2010	Jun. 26, 2009
Document and Entity Information [Abstract]
Entity Registrant Name	GANNETT CO INC /DE/
Entity Central Index Key	0000039899
Document Type	10-Q
Document Period End Date	2010-03-28
Amendment Flag	false
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-26
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float		$874,868,691
Entity Common Stock, Shares Outstanding	238,171,891

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (USD $)
In Thousands	3 Months Ended Mar. 28, 2010	12 Months Ended Dec. 27, 2009
Current assets
Cash and cash equivalents	$104,148	$98,795
Trade receivables, less allowance for doubtful receivables (2010-$49,343; 2009-$46,255)	653,065	759,934
Other receivables	16,334	20,557
Inventories	64,685	63,752
Deferred income taxes	19,378	19,577
Prepaid expenses and other current assets	88,927	86,427
Assets held for sale	65,646	0
Total current assets	1,012,183	1,049,042
Property, plant and equipment
Cost	4,272,996	4,428,859
Less accumulated depreciation	(2,416,357)	(2,457,041)
Net property, plant and equipment	1,856,639	1,971,818
Intangible and other assets
Goodwill	2,841,888	2,854,247
Indefinite-lived and amortizable intangible assets, less accumulated amortization	556,659	565,610
Deferred income taxes	294,255	302,360
Investments and other assets	395,097	405,355
Total intangible and other assets	4,087,899	4,127,572
Total assets	6,956,721	7,148,432
Current liabilities
Accounts payable and current portion of film contracts payable	200,116	252,585
Compensation, interest and other accruals	382,175	370,174
Dividends payable	9,745	9,703
Income taxes	56,815	45,085
Deferred income	251,599	222,556
Total current liabilities	900,450	900,103
Income taxes	203,315	206,115
Long-term debt	2,801,459	3,061,951
Postretirement medical and life insurance liabilities	179,753	185,433
Pension liabilities	695,783	708,133
Other long-term liabilities	252,152	260,918
Total liabilities	5,032,912	5,322,653
Redeemable noncontrolling interest	79,684	78,304
Commitments and contingent liabilities (see Note 13)
Gannett Co., Inc. shareholders' equity
Preferred stock of $1 par value per share Authorized: 2,000,000 shares; Issued: none	0	0
Common stock of $1 par value per share Authorized: 800,000,000 shares; Issued: 324,418,632 shares	324,419	324,419
Additional paid-in capital	623,932	629,714
Retained earnings	6,432,241	6,324,586
Accumulated other comprehensive loss	(345,130)	(316,832)
Shareholders' Equity before treasury stock	7,035,462	6,961,887
Less treasury stock, 82,246,741 shares and 87,261,969 shares, respectively, at cost	(5,333,072)	(5,357,962)
Total Gannett Co., Inc. shareholders' equity	1,702,390	1,603,925
Noncontrolling interests	141,735	143,550
Total equity	1,844,125	1,747,475
Total liabilities, redeemable noncontrolling interest and equity	$6,956,721	$7,148,432

1_Condensed Consolidated Balanc

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data	Mar. 28, 2010	Dec. 27, 2009
Current assets
Allowance for doubtful receivables	$49,343	$46,255
Gannett Co., Inc. shareholders' equity
Preferred stock, par value	1	1
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Common stock, par value	1	1
Common stock, shares authorized	800,000,000	800,000,000
Common stock, shares issued	324,418,632	324,418,632
Treasury stock, shares	82,246,741	87,261,969

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) (USD $)
In Thousands, unless otherwise specified	3 Months Ended Mar. 28, 2010	3 Months Ended Mar. 29, 2009
Net Operating Revenues:
Publishing advertising	$665,909	$722,755
Publishing circulation	284,533	299,683
Digital	140,638	143,160
Broadcasting	167,488	143,490
All other	63,837	69,390
Total	1,322,405	1,378,478
Operating Expenses:
Cost of sales and operating expenses, exclusive of depreciation	748,559	839,004
Selling, general and administrative expenses, exclusive of depreciation	299,759	309,380
Depreciation	47,941	55,736
Amortization of intangible assets	7,962	8,165
Total	1,104,221	1,212,285
Operating income	218,184	166,193
Non-operating (expense) income:
Equity income (loss) in unconsolidated investees, net	533	(2,689)
Interest expense	(43,480)	(48,912)
Other non-operating items	(523)	2,457
Total	(43,470)	(49,144)
Income before income taxes	174,714	117,049
Provision for income taxes	55,400	39,300
Net income	119,314	77,749
Net income attributable to noncontrolling interests	(2,135)	(314)
Net income attributable to Gannett Co., Inc.	$117,179	$77,435
Earnings per share-basic	0.49	0.34
Earnings per share-diluted	0.49	0.34
Dividends per share	0.04	0.04

2_Condensed Consolidated Statem

Condensed Consolidated Statements of Income Percentage Increase (Decrease) (Unaudited)
	3 Months Ended Mar. 28, 2010
Net Operating Revenues:
Publishing advertising	-0.079
Publishing circulation	-0.051
Digital	-0.018
Broadcasting	0.167
All other	-0.08
Total	-0.041
Operating Expenses:
Cost of sales and operating expenses, exclusive of depreciation	-0.108
Selling, general and administrative expenses, exclusive of depreciation	-0.031
Depreciation	-0.14
Amortization of intangible assets	-0.025
Total	-0.089
Operating income	0.313
Non-operating (expense) income:
Equity income (loss) in unconsolidated investees, net	-1.198
Interest expense	-0.111
Other non-operating items	-1.213
Total	-0.115
Income before income taxes	0.493
Provision for income taxes	0.41
Net income	0.535
Net income attributable to noncontrolling interest	5.799
Net income attributable to Gannett Co., Inc.	0.513
Earnings per share-basic	0.441
Earnings per share-diluted	0.441
Dividends per share	0

3_Condensed Consolidated Statem

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands	3 Months Ended Mar. 28, 2010	3 Months Ended Mar. 29, 2009
Cash flows from operating activities:
Net income	$119,314	$77,749
Adjustments to reconcile net income to operating cash flows:
Depreciation and amortization	55,903	63,901
Pension (benefit) expense, net of pension contributions	(3,575)	(29,851)
Equity (income) loss in unconsolidated investees, net	(533)	2,689
Stock-based compensation - equity awards	12,943	6,092
Change in other assets and liabilities, net	108,135	55,468
Net cash flow from operating activities	292,187	176,048
Cash flows from investing activities:
Purchase of property, plant and equipment	(8,879)	(18,878)
Payments for acquisitions, net of cash acquired	(15,164)	(5,079)
Payments for investments	(2,716)	(2,827)
Proceeds from investments	5,834	6,861
Proceeds from sale of assets	5,194	5,259
Net cash used for investing activities	(15,731)	(14,664)
Cash flows from financing activities
(Payments of) proceeds from borrowings under revolving credit agreements	(262,000)	547,000
Payments of unsecured floating rate notes	0	(66,897)
Dividends paid	(9,493)	(91,224)
Proceeds from issuance of common stock upon exercise of stock options	638	0
Net cash (used for) provided by financing activities	(270,855)	388,879
Effect of currency exchange rate change	(248)	(157)
Net increase in cash and cash equivalents	5,353	550,106
Balance of cash and cash equivalents at beginning of period	98,795	98,949
Balance of cash and cash equivalents at end of period	$104,148	$649,055

Basis of Presentation

Basis of Presentation
	3 Months Ended Mar. 28, 2010
Basis of Presentation [Abstract]
Basis of presentation	NOTE 1 Basis of presentation The accompanying unaudited Condensed Consolidated Financial Statements of Gannett Co., Inc. (the Company) have been prepared in accordance with the instructions for Form 10-Q and, therefore, do not include all information and footnotes, which are normally included in the Form 10-K and annual report to shareholders. The financial statements covering the thirteen week period ended March28, 2010, and the comparable periods of 2009, reflect all adjustments which, in the opinion of the Company, are necessary for a fair statement of results for the interim periods and reflect all normal and recurring adjustments which are necessary for a fair presentation of the Companys financial position, results of operations and cash flows as of the dates and for the periods presented.

Recently Issued Accounting Stan

Recently Issued Accounting Standards
	3 Months Ended Mar. 28, 2010
Recently Issued Accounting Standards [Abstract]
Recently issued accounting standards	NOTE 2 Recently issued accounting standards In January2010, the FASB issued Accounting Standards Update (ASU)2010-06, Improving Disclosures about Fair Value Measurements. ASU 2010-06 amends ASC Topic 820, Fair Value Measurements and Disclosures, to require a number of additional disclosures regarding fair value measurements. ASU 2010-06 is effective for the first reporting period beginning after December15, 2009. The Companys disclosures on fair value can be found in Note 9.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets
	3 Months Ended Mar. 28, 2010
Goodwill and Other Intangible Assets [Abstract]
Goodwill and other intangible assets	NOTE 3 Goodwill and other intangible assets The following table displays goodwill, indefinite-lived intangible assets, and amortizable intangible assets at March28, 2010 and December27, 2009. March 28, 2010 December 27, 2009 Accumulated Accumulated (in thousands of dollars) Gross Amortization Gross Amortization Goodwill $ 2,841,888 $ 2,854,247 Indefinite-lived intangibles: Mastheads and trade names 108,444 110,319 Television station FCC licenses 255,304 255,304 Amortizable intangible assets: Customer relationships 311,426 148,662 311,840 141,902 Other 59,553 29,406 58,329 28,280 Amortization expense was $8.0million in the quarter ended March28, 2010. For the first quarter of 2009, amortization expense was $8.2million. Customer relationships, which include subscriber lists and advertiser relationships, are amortized on a straight-line basis over three to 25years. Other intangibles primarily include commercial printing relationships, internally developed technology, patents and amortizable trade names. These assets were assigned lives of between three and 21years and are amortized on a straight-line basis. The following table summarizes the changes in the Companys net goodwill balance through March28, 2010. (in thousands of dollars) Publishing Digital Broadcasting Total Balance at December27, 2009 Goodwill $ 7,677,800 $ 670,976 $ 1,618,429 $ 9,967,205 Accumulated impairment losses (7,086,958 ) (26,000 ) (7,112,958 ) Net balance at December27, 2009 590,842 644,976 1,618,429 2,854,247 Activity during the period Acquisitions and adjustments 1,476 8,744 10,220 Assets held for sale (4,211 ) (4,211 ) Foreign currency exchange rate changes (13,405 ) (5,035 ) 72 (18,368 ) Total activity during the period (16,140 ) 3,709 72 (12,359 ) Balance end of period Goodwill 7,502,711 674,685 1,618,501 9,795,897 Accumulated impairment losses (6,928,009 ) (26,000 ) (6,954,009 ) Net balance at March28, 2010 $ 574,702 $ 648,685 $ 1,618,501 $ 2,841,888

Long-Term Debt

Long-Term Debt
	3 Months Ended Mar. 28, 2010
Long-Term Debt [Abstract]
Long-term debt	NOTE 4 Long-term debt The long-term debt of the Company is summarized below: Mar. 28, Dec. 27, In thousands of dollars 2010 2009 Unsecured notes bearing fixed rate interest at 5.75% due June2011 $ 432,785 $ 432,648 Unsecured floating rate term loan due July2011 230,000 230,000 Borrowings under revolving credit agreements expiring March2012 1,119,000 1,381,000 Unsecured notes bearing fixed rate interest at 6.375% due April2012 306,293 306,260 Unsecured notes bearing fixed rate interest at 8.75% due November2014 246,454 246,304 Unsecured notes bearing fixed rate interest at 10% due June2015 57,000 56,684 Unsecured notes bearing fixed rate interest at 10% due April2016 163,329 162,531 Unsecured notes bearing fixed rate interest at 9.375% due November2017 246,598 246,524 Total long-term debt $ 2,801,459 $ 3,061,951 For the first three months of 2010, the Companys long-term debt was reduced by $260million reflecting repayments of borrowings under the revolving credit agreements using cash flow from operations.

Retirement Plans

Retirement Plans
	3 Months Ended Mar. 28, 2010
Retirement Plans [Abstract]
Retirement plans	NOTE 5 Retirement plans The Company and its subsidiaries have various retirement plans, including plans established under collective bargaining agreements, under which most full-time employees are covered. The Gannett Retirement Plan (GRP)is the Companys principal retirement plan and covers most U.S. employees of the Company and its subsidiaries. The Companys pension costs, which include costs for qualified, nonqualified and union plans are presented in the following table: Thirteen Weeks Ended Mar. 28, Mar. 29, (in millions of dollars) 2010 2009 Service cost-benefits earned during the period $ 4.1 $ 4.3 Interest cost on benefit obligation 43.1 45.7 Expected return on plan assets (47.7 ) (43.5 ) Amortization of prior service cost 1.6 0.6 Amortization of actuarial loss 11.1 12.3 Pension expense for Company-sponsored retirement plans 12.2 19.4 Settlement gain (39.8 ) Union and other pension cost 1.3 1.3 Pension cost (credit) $ 13.5 $ (19.1 ) During the first quarter of 2009, the Company reached an agreement with one of its unions for a complete withdrawal from the unions underfunded pension plan and release from any future obligations with respect thereto. Under the agreement, the Company made a settlement payment of $7.3million in May2009 and will make a payment of $7.7million in May2010. As a result of this agreement, the Company recognized a pre-tax pension settlement gain of $39.8million in the first quarter of 2009.

Postretirement Benefits Other T

Postretirement Benefits Other Than Pensions
	3 Months Ended Mar. 28, 2010
Postretirement Benefits Other Than Pensions [Abstract]
Postretirement benefits other than pensions	NOTE 6 Postretirement benefits other than pension The Company provides health care and life insurance benefits to certain retired employees who meet age and service requirements. Most of the Companys retirees contribute to the cost of these benefits and retiree contributions are increased as actual benefit costs increase. The Companys policy is to fund benefits as claims and premiums are paid. Postretirement benefit costs for health care and life insurance are presented in the following table: Thirteen Weeks Ended Mar. 28, Mar. 29, (in millions of dollars) 2010 2009 Service cost-benefits earned during the period $ 0.4 $ 0.4 Interest cost on net benefit obligation 2.8 3.5 Amortization of prior service credit (4.8 ) (3.9 ) Amortization of actuarial loss 1.2 1.4 Net periodic postretirement benefit (credit) cost $ (0.4 ) $ 1.4

Income Taxes

Income Taxes
	3 Months Ended Mar. 28, 2010
Income Taxes [Abstract]
Income taxes	NOTE 7 Income taxes The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate was approximately $125.7million as of December27, 2009 and $123.6million as of the end of the first quarter of 2010. This amount reflects the federal tax benefit of state tax deductions. Excluding the federal tax benefit of state tax deductions, the total amount of unrecognized tax benefits as of December27, 2009 was $191.7million and as of March28, 2010 was $186.5million. The $5.2million decrease reflects a reduction for prior year tax positions, and a reduction for lapses of statutes of limitations, partially offset by additions in the current year prorated for the first quarter. The reduction for prior year tax positions was primarily related to favorable settlements with tax authorities and currency exchange rate fluctuations. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. The Company also recognizes interest income attributable to overpayment of income taxes as a component of income tax expense. The Company recognized interest and penalty expense (income)of $0.1million and $(2.0) million during the first quarter of 2010 and 2009, respectively. The amount of net accrued interest and penalties related to uncertain tax benefits as of December27, 2009 was approximately $73.7million and as of March28, 2010, was approximately $75.8million. The Company files income tax returns in the U.S. and various state and foreign jurisdictions. The 2005 through 2009 tax years remain subject to examination by the IRS. The 2005 through 2009 tax years generally remain subject to examination by state authorities, and the years 2003-2009 are subject to examination in the UK. In addition, tax years prior to 2005 remain subject to examination by certain states primarily due to the filing of amended tax returns upon settlement of the IRS examination for these years and due to ongoing audits. It is reasonably possible that the amount of unrecognized benefits with respect to certain of the Companys unrecognized tax positions will significantly increase or decrease within the next 12 months. These changes may be the result of settlement of ongoing audits, lapses of statutes of limitations or other regulatory developments. At this time, the Company estimates that the amount of its gross unrecognized tax positions may decrease by up to approximately $51million within the next 12months, including $32million in the second quarter of 2010.

Supplemental Shareholders' Equi

Supplemental Shareholders' Equity Information
	3 Months Ended Mar. 28, 2010
Supplemental Shareholders' Equity Information [Abstract]
Supplemental shareholders' equity information	NOTE 8 Supplemental shareholders equity information The following table summarizes the shareholders equity for the 13weeks ended March28, 2010 and March29, 2009. The redeemable noncontrolling interest accretion relates to redeemable stock held by a noncontrolling owner of CareerBuilder that provides a fixed return on the noncontrolling owners investment. Gannett Co., Inc. Shareholders Noncontrolling (in thousands of dollars) Equity Interest Total Equity Balance at Dec. 27, 2009 $ 1,603,925 $ 143,550 $ 1,747,475 Comprehensive income: Net income 117,179 2,135 119,314 Less: Redeemable noncontrolling interest accretion (income not available to shareholders) (1,380 ) (1,380 ) Other comprehensive loss (28,298 ) (2,570 ) (30,868 ) Dividends declared (9,524 ) (9,524 ) Stock option and restricted stock compensation 12,943 12,943 401(k) match 5,132 5,132 Other activity 1,033 1,033 Balance at March28, 2010 $ 1,702,390 $ 141,735 $ 1,844,125 Gannett Co., Inc. Shareholders Noncontrolling (in thousands of dollars) Equity Interest Total Equity Balance at Dec. 28, 2008 $ 1,055,882 $ 118,806 $ 1,174,688 Comprehensive income: Net income 77,435 314 77,749 Less: Redeemable noncontrolling interest accretion (income not available to shareholders) (1,285 ) (1,285 ) Other comprehensive income (loss) 6,512 (3,018 ) 3,494 Dividends declared (9,221 ) (9,221 ) Stock option and restricted stock compensation 6,092 6,092 401(k) match 12,895 12,895 Other activity 2,603 2,603 Balance at March29, 2009 $ 1,152,198 $ 114,817 $ 1,267,015 The table below presents the components of comprehensive income (loss)for the first quarter of 2010 and 2009. Other comprehensive income (loss)consists primarily of foreign currency translation, pension liability adjustments and interest rate swap mark-to-market adjustments. Thirteen Weeks Ended Mar. 28, Mar. 29, (in thousands of dollars) 2010 2009 Net income $ 119,314 $ 77,749 Less: Redeemable noncontrolling interest accretion (income not available to shareholders) (1,380 ) (1,285 ) Other comprehensive income (loss) Foreign currency translation adjustment (43,591 ) (14,291 ) Other 12,723 17,785 Total other comprehensive income (loss) (30,868 ) 3,494 Total comprehensive income 87,066 79,958 Comprehensive loss attributable to the noncontrolling interest (1,815 ) (3,989 ) Comprehensive income attributable to Gannett C

Fair Value Measurement

Fair Value Measurement
	3 Months Ended Mar. 28, 2010
Fair Value Measurement [Abstract]
Fair value measurement	NOTE 9 Fair value measurement The Company measures and records in the accompanying condensed consolidated financial statements certain assets at fair value. ASC Topic 820, Fair Value Measurements and Disclosures, establishes a fair value hierarchy for those instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the companys own assumptions (unobservable inputs). The hierarchy consists of three levels: Level 1 Quoted market prices in active markets for identical assets or liabilities; Level 2 Inputs other than Level 1 inputs that are either directly or indirectly observable; and Level 3 Unobservable inputs developed using estimates and assumptions developed by the company, which reflect those that a market participant would use. The following table summarizes the financial instruments measured at fair value in the accompanying condensed consolidated balance sheet as of March28, 2010 (in thousands): Fair Value Measurements as of March 28, 2010 Level 1 Level 2 Level 3 Total Employee compensation related investments $ 22,181 $ $ $ 22,181 Rabbi trust investments $ 25,837 $ $ $ 25,837 Auction rate securities $ $ $ 23,457 $ 23,457 The level 3 securities are auction rate securities held by CareerBuilder. During the period ending March28, 2010, the Company sold some of these securities receiving proceeds of $4.2million and recording a gain of $0.4million. The Company utilized a probability-weighted discounted cash flow technique to determine the fair value of its level 3 securities. The main assumptions used in the fair value calculation were the estimated coupon rate associated with the securities and the discount rate (determined based on market yields of similar taxable obligations). The fair value of the Companys total long-term debt, determined based on quoted market prices for the individual tranches of debt, totaled $2.8billion at March28, 2010. In addition, the Company holds investments in non-public businesses in which the Company does not have control and does not exert significant influence. Such investments are carried at cost and reduced for any impairment losses resulting from periodic evaluations of the carrying value of the investment. At March28, 2010 and December27, 2009, the aggregate carrying amount of such investments was $15million and $16 million, respectively. No events or changes in circumstances have occurred since December27, 2009 that suggests a significant and adverse effect on the fair value of such investments. Accordingly, the Company did not evaluate such investments for impairment in 2010.

Business Segment Information

Business Segment Information
	3 Months Ended Mar. 28, 2010
Business Segment Information [Abstract]
Business segment information	NOTE 10 Business segment information The Company has determined that its reportable segments based on its management and internal reporting structures are publishing, digital, and broadcasting. Publishing is the largest component of the Companys business and includes U.S. Community Publishing, Newsquest operations in the UK and the USA TODAY group. The digital segment includes CareerBuilder, ShopLocal, Schedule Star, Planet Discover, PointRoll and Ripple6. Broadcasting includes the Companys 23 television stations and Captivate. Thirteen weeks ended March 28, March 29, % Inc (unaudited, in thousands of dollars) 2010 2009 (Dec) Net Operating Revenues: Publishing $ 1,014,279 $ 1,091,828 (7.1 ) Digital 140,638 143,160 (1.8 ) Broadcasting 167,488 143,490 16.7 Total $ 1,322,405 $ 1,378,478 (4.1 ) Operating Income (net of depreciation and amortization): Publishing $ 165,587 $ 137,163 20.7 Digital 3,350 (1,200 ) *** Broadcasting 68,495 44,146 55.2 Corporate (19,248 ) (13,916 ) 38.3 Total $ 218,184 $ 166,193 31.3 Depreciation and Amortization: Publishing $ 35,618 $ 42,155 (15.5 ) Digital 8,077 9,091 (11.2 ) Broadcasting 8,193 8,603 (4.8 ) Corporate 4,015 4,052 (0.9 ) Total $ 55,903 $ 63,901 (12.5 )

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities
	3 Months Ended Mar. 28, 2010
Derivative Instruments and Hedging Activities [Abstract]
Derivative instruments and hedging activities	NOTE 11 Derivative instruments and hedging activities In August2007, the Company entered into three interest rate swap agreements totaling a notional amount of $750million in order to mitigate the volatility of interest rates. These agreements, which expired in May2009, effectively fixed the interest rate on the $750million in floating rate notes due May2009 at 5.0125%. These instruments were designated as cash flow hedges in accordance with ASC Topic 815, Derivatives and Hedging, and changes in fair value were recorded through accumulated other comprehensive loss with a corresponding adjustment to other long-term liabilities. As a result of a tender offer and strategic redemptions of part of the floating rate notes during the fourth quarter of 2008 and first quarter of 2009, the cash flow hedging treatment was discontinued for interest rate swaps associated with approximately $186.6 million of notional value on the retired floating rate notes. Amounts recorded in accumulated other comprehensive income (loss)related to the discontinued cash flow hedges were reclassified into earnings and subsequent changes to the fair value of the interest rate swaps were recorded through earnings. First quarter 2009 expense associated with the derivatives designated as hedges under ASC Topic 815, which is classified as Interest expense on the Companys Condensed Consolidated Income Statement, was $4.5million. First quarter 2009 expense associated with the derivatives not designated as hedges under ASC Topic 815, which is classified as Other non-operating items on the Companys Condensed Consolidated Income Statement, was $0.6million.

Earnings Per Share

Earnings Per Share
	3 Months Ended Mar. 28, 2010
Earnings Per Share [Abstract]
Earnings per share	NOTE 12 Earnings per share The Companys earnings per share (basic and diluted) are presented below: Thirteen Weeks Ended Mar. 28, Mar. 29, (in thousands except per share amounts) 2010 2009 Net income attributable to Gannett Co., Inc. $ 117,179 $ 77,435 Weighted average number of common shares outstanding basic 237,447 229,570 Effect of dilutive securities Stock options 1,606 486 Restricted stock 1,560 895 Weighted average number of common shares outstanding diluted 240,613 230,951 Earnings per share Basic $ 0.49 $ 0.34 Earnings per share Diluted $ 0.49 $ 0.34

Litigation

Litigation
	3 Months Ended Mar. 28, 2010
Litigation [Abstract]
Litigation	NOTE 13 Litigation The Company and a number of its subsidiaries are defendants in judicial and administrative proceedings involving matters incidental to their business. The Companys management does not believe that any material liability will be imposed as a result of these matters.