XML 97 R16.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Income taxes | 12 Months Ended
--- | ---
Dec. 25, 2011
Income taxes | NOTE 10 Income taxes The provision (benefit) for income taxes on income from continuing operations consists of the following:
|  |  | September 30, |  |  |  | September 30, |  |  |  | September 30, |
In thousands of dollars 2011 |  | Current |  |  | Deferred |  |  | Total |
Federal |  | $ | 81,500 |  |  | $ | 74,600 |  |  | $ | 156,100 |
State and other |  |  | (800 | ) |  |  | 30,100 |  |  |  | 29,300 |
Foreign |  |  | (25,400 | ) |  |  | (7,200 | ) |  |  | (32,600 | )
Total |  | $ | 55,300 |  |  | $ | 97,500 |  |  | $ | 152,800 |
In thousands of dollars 2010 |  | Current |  |  | Deferred |  |  | Total |
Federal |  | $ | 135,442 |  |  | $ | 129,829 |  |  | $ | 265,271 |
State and other |  |  | (51,252 | ) |  |  | 19,150 |  |  |  | (32,102 | )
Foreign |  |  | 9,460 |  |  |  | 1,384 |  |  |  | 10,844 |
Total |  | $ | 93,650 |  |  | $ | 150,363 |  |  | $ | 244,013 |
In thousands of dollars 2009 |  | Current |  |  | Deferred |  |  | Total |
Federal |  | $ | 90,374 |  |  | $ | 53,153 |  |  | $ | 143,527 |
State and other |  |  | 23,846 |  |  |  | 9,920 |  |  |  | 33,766 |
Foreign |  |  | 22,895 |  |  |  | (8,860 | ) |  |  | 14,035 |
Total |  | $ | 137,115 |  |  | $ | 54,213 |  |  | $ | 191,328 |
The components of income from continuing operations attributable to Gannett Co., Inc. before income taxes consist of the following:
|  |  | September 30, |  |  |  | September 30, |  |  |  | September 30, |
In thousands of dollars |  | 2011 |  |  | 2010 |  |  | 2009 |
Domestic |  | $ | 530,660 |  |  | $ | 729,485 |  |  | $ | 484,316 |
Foreign |  |  | 80,888 |  |  |  | 81,856 |  |  |  | 58,492 |
Total |  | $ | 611,548 |  |  | $ | 811,341 |  |  | $ | 542,808 |
The provision for income taxes on continuing operations varies from the U.S. federal statutory tax rate as a result of the following differences:
|  |  | September 30, |  |  |  | September 30, |  |  |  | September 30, |
Fiscal year |  | 2011 |  |  | 2010 |  |  | 2009 |
U.S. statutory tax rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
Increase (decrease) in taxes resulting from: |  |  |  |  |  |  |  |  |  |  |  |
Asset impairments |  |  | — |  |  |  | 0.6 |  |  |  | 1.4 |
State/other income taxes net of federal income tax |  |  | 3.0 |  |  |  | 3.5 |  |  |  | 3.5 |
Statutory rate differential and permanent differences in earnings in foreign jurisdictions |  |  | (5.4 | ) |  |  | (2.7 | ) |  |  | (3.3 | )
Foreign audit settlements |  |  | (4.2 | ) |  |  | — |  |  |  | — |
Permanent stock basis deductions |  |  | (1.8 | ) |  |  | — |  |  |  | — |
Lapse of state statutes of limitations net of federal income tax |  |  | (1.6 | ) |  |  | (7.2 | ) |  |  | (0.7 | )
Other, net |  |  | — |  |  |  | 0.9 |  |  |  | (0.7 | )
Effective tax rate |  |  | 25.0 | % |  |  | 30.1 | % |  |  | 35.2 | %
The permanent stock basis deduction is primarily related to the disposal of certain business assets in 2011. An impairment charge for these assets had been recorded in previous years, however no related tax benefit had been taken as the formal disposal of the assets did not occur until 2011. Absent the effect of facility consolidation, asset impairment and workforce restructuring charges in 2011, 2010 and 2009, certain gains in 2009, the special net tax benefit from the release of certain tax reserves due to audit settlements and the lapse of statutes of limitations for 2011 and 2010, and the special net tax benefit from the permanent stock basis deduction for 2011, the company’s effective tax rate would have been 31.6% for 2011, 33.1% for 2010 and 33.6% for 2009. In addition to the income tax provision presented above for continuing operations, the company also recorded federal and state income taxes payable on discontinued operations in 2010. Taxes provided on the earnings from discontinued operations include amounts reclassified from previously reported income tax provisions and totaled $11.7 million for 2010, covering U.S. federal and state income taxes and representing an effective rate of 36%. Also included in discontinued operations for 2010 is a recognized gain of $21.2 million, which is net of tax. Taxes provided on the gains from the disposals totaled approximately $12.2 million for 2010, covering U.S. federal and state income taxes and represent an effective rate of 36%. Deferred income taxes reflect temporary differences in the recognition of revenue and expense for tax reporting and financial statement purposes. Amortization of intangibles represents the largest component of the deferred provision. Deferred tax liabilities and assets are adjusted for enacted changes in tax laws or tax rates of the various tax jurisdictions. The amounts of such adjustments for 2011, 2010 and 2009 are not significant. Deferred tax liabilities and assets were composed of the following at the end of 2011 and 2010:
|  |  | September 30, |  |  |  | September 30, |
In thousands of dollars |  | Dec. 25, 2011 |  |  | Dec. 26, 2010 |
Liabilities |  |  |  |  |  |  |  |
Accelerated depreciation |  | $ | 295,391 |  |  | $ | 309,477 |
Accelerated amortization of deductible intangibles |  |  | 121,679 |  |  |  | 59,709 |
Other |  |  | 29,890 |  |  |  | 27,600 |
Total deferred tax liabilities |  |  | 446,960 |  |  |  | 396,786 |
Assets |  |  |  |  |  |  |  |
Accrued compensation costs |  |  | 97,532 |  |  |  | 98,005 |
Pension |  |  | 346,000 |  |  |  | 239,120 |
Postretirement medical and life |  |  | 71,674 |  |  |  | 75,607 |
Federal tax benefits of uncertain state tax positions |  |  | 43,631 |  |  |  | 46,856 |
Partnership investments including impairments |  |  | 52,344 |  |  |  | 65,874 |
Other |  |  | 67,200 |  |  |  | 62,963 |
Total deferred tax assets |  |  | 678,381 |  |  |  | 588,425 |
Total net deferred tax assets |  |  | 231,421 |  |  |  | 191,639 |
Net current deferred tax assets |  |  | 22,771 |  |  |  | 21,254 |
Net long-term deferred tax assets |  | $ | 208,650 |  |  | $ | 170,385 |
Included in total deferred tax assets are valuation allowances of approximately $54 million and $44 million in 2011 and 2010, respectively, primarily related to foreign tax credits available for carry forward to future years and to certain foreign losses. Realization of deferred tax assets for which valuation allowances have not been established is dependent upon generating sufficient future taxable income. The company expects to realize the benefit of these deferred tax assets through future reversals of its deferred tax liabilities, through the recognition of taxable income in the allowable carryback and carryforward periods, and through implementation of future tax planning strategies. Although realization is not assured, the company believes it is more likely than not that all deferred tax assets for which valuation allowances have not been established will be realized. The company’s legal and tax structure reflects acquisitions that have occurred over the years as well as the multi-jurisdictional nature of the company’s businesses. The following table summarizes the activity related to unrecognized tax benefits, excluding the federal tax benefit of state tax deductions:
|  |  | September 30, |  |  |  | September 30, |
In thousands of dollars Change in unrecognized tax benefits |  | Dec. 25, 2011 |  |  | Dec. 26, 2010 |
Balance at beginning of year |  | $ | 153,531 |  |  | $ | 191,715 |
Additions based on tax positions related to the current year |  |  | 10,958 |  |  |  | 20,234 |
Additions for tax positions of prior years |  |  | 17,009 |  |  |  | 24,015 |
Reductions for tax positions of prior years |  |  | (44,155 | ) |  |  | (37,869 | )
Settlements |  |  | (15,618 | ) |  |  | (3,307 | )
Reductions due to lapse of statutes of limitations |  |  | (11,443 | ) |  |  | (41,257 | )
Balance at end of year |  | $ | 110,282 |  |  | $ | 153,531 |
The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate was $78 million as of Dec. 25, 2011, and $109 million as of Dec. 26, 2010. This amount includes the federal tax benefit of state tax deductions. Included in the unrecognized tax benefit balance at Dec. 26, 2010 are $11 million of tax positions for which the ultimate deductibility is highly certain but for which there was uncertainty about the timing of such deductibility. 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, and it recognizes interest credits for the reversal of interest expense previously recorded for uncertain tax positions which are subsequently released. During 2011, the company recognized income from interest and the release of penalty reserves of $4 million. During 2010, the company recognized income from interest and the release of penalty reserves of $40 million. During 2009, the company recognized interest expense of $3 million. The amount of accrued interest and penalties payable related to unrecognized tax benefits was $35 million and $37 million as of Dec. 25, 2011 and Dec. 26, 2010, respectively. The company files income tax returns in the U.S. and various state and foreign jurisdictions. The 2009 and 2010 tax years remain subject to examination by the IRS. The 2005 through 2010 tax years generally remain subject to examination by state authorities, and the years 2009 and 2010 are subject to examination in the U.K. In addition, tax years prior to 2005 remain subject to examination by certain states primarily due to the filing of amended tax returns as a result of the settlement of the IRS examination for these years and due to ongoing audits. It is reasonably possible that the amount of unrecognized benefit with respect to certain of the company’s 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 $46 million within the next 12 months primarily due to lapses of statutes of limitations and settlement of ongoing audits in various jurisdictions.

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration