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Business operations and segment information
 12 Months Ended
Dec. 25, 2011
Business operations and segment information

NOTE 14

Business operations and segment information

The company has determined that its reportable segments based on its management and internal reporting structure are publishing, which is the largest segment of its operations, digital and broadcasting.

The publishing segment at the end of 2011 consisted of 82 U.S. daily publications with affiliated online sites in 30 states and one U.S. territory, including USA TODAY, a national, general-interest daily publication; USATODAY.com; USA WEEKEND, a magazine supplement for publishing companies; Clipper; Gannett Healthcare Group; and Gannett Government Media. The publishing segment also includes Newsquest, which is a regional publisher in the United Kingdom that includes 17 paid-for daily publications and more than 200 weekly publications, magazines and trade publications. The publishing segment in the U.S. also includes about 500 non-daily publications, a network of offset presses for commercial printing and several smaller businesses.

The digital segment includes results from CareerBuilder, PointRoll, ShopLocal, Reviewed.com and Planet Discover. The digital segment and the digital revenues line do not include online/digital revenues generated by web sites that are associated with the company’s publishing and broadcasting operating properties. Such amounts are reflected within those segments and are included as part of publishing revenues and broadcasting revenues in the Consolidated Statements of Income.

At the end of 2011, the company’s broadcasting division included 23 television stations and affiliated online sites in markets with more than 21 million households covering 18.1% of the U.S. population. Captivate Network is also part of the broadcasting division.

The company’s foreign revenues, principally from publishing businesses in the United Kingdom and CareerBuilder subsidiaries in Europe, totaled approximately $568 million in 2011, $564 million in 2010 and $621 million in 2009. The company’s long-lived assets in foreign countries, principally in the United Kingdom, totaled approximately $543 million at Dec. 25, 2011, $556 million at Dec. 26, 2010, and $535 million at Dec. 27, 2009.

Separate financial data for each of the company’s business segments is presented in the table that follows. The accounting policies of the segments are those described in Note 1. The company evaluates the performance of its segments based on operating income. Operating income represents total revenue less operating expenses, including depreciation, amortization of intangibles and facility consolidation and asset impairment charges. In determining operating income by industry segment, general corporate expenses, interest expense, interest income, and other income and expense items of a non-operating nature are not considered, as such items are not allocated to the company’s segments.

Corporate assets include cash and cash equivalents, property, plant and equipment used for corporate purposes and certain other financial investments.

In thousands of dollars

Business segment financial information

 

September 30, September 30, September 30,
       2011      2010      2009  

Operating revenues

           

Publishing

      $ 3,831,108       $ 4,050,839       $ 4,292,344   

Digital

        686,471         618,259         586,174   

Broadcasting

        722,410         769,580         631,085   
    

 

 

     

 

 

     

 

 

  

Total

      $ 5,239,989       $ 5,438,678       $ 5,509,603   
    

 

 

     

 

 

     

 

 

  

Operating income

           

Publishing (2)

      $ 477,583       $ 647,741       $ 516,328   

Digital (2)

        125,340         83,355         43,295   

Broadcasting (2)

        302,140         329,245         216,101   

Corporate (1) (2)

        (74,272 )       (60,646 )       (56,806 ) 
    

 

 

     

 

 

     

 

 

  

Total

      $ 830,791       $ 999,695       $ 718,918   
    

 

 

     

 

 

     

 

 

  

Depreciation, amortization and facility consolidation and asset impairment charges

           

Publishing (2)

      $ 148,537       $ 170,073       $ 255,733   

Digital (2)

        30,693         43,313         59,489   

Broadcasting (2)

        28,926         40,460         42,640   

Corporate (1) (2)

        16,460         17,039         15,677   
    

 

 

     

 

 

     

 

 

  

Total

      $ 224,616       $ 270,885       $ 373,539   
    

 

 

     

 

 

     

 

 

  

Equity income (losses) in unconsolidated investees, net

           

Publishing

      $ 8,543       $ 19,337       $ 4,010   

Digital

        (184 )       (197 )       (83 ) 

Broadcasting

        (162 )       —           —     
    

 

 

     

 

 

     

 

 

  

Total

      $ 8,197       $ 19,140       $ 3,927   
    

 

 

     

 

 

     

 

 

  

Identifiable assets

           

Publishing

      $ 3,032,605       $ 3,162,655       $ 3,417,026   

Digital

        1,014,805         1,057,898         1,139,266   

Broadcasting

        1,994,051         2,003,929         2,058,415   

Corporate (1)

        574,989         592,362         533,725   
    

 

 

     

 

 

     

 

 

  

Total

      $ 6,616,450       $ 6,816,844       $ 7,148,432   
    

 

 

     

 

 

     

 

 

  

Capital expenditures

           

Publishing

      $ 40,175       $ 36,776       $ 44,935   

Digital

        15,673         11,883         8,232   

Broadcasting

        15,263         19,694         13,656   

Corporate (1)

        1,340         717         914   
    

 

 

     

 

 

     

 

 

  

Total

      $ 72,451       $ 69,070       $ 67,737   
    

 

 

     

 

 

     

 

 

  

 

(1) Corporate amounts represent those not directly related to the company’s three business segments.

 

(2) Results for 2011 include pre-tax facility consolidation charges of $27 million for publishing. Results for 2010 include pre-tax facility consolidation and asset impairment charges of $36 million for publishing, $13 million for digital and $8 million for broadcasting. Results for 2009 include pre-tax facility consolidation and asset impairment charges of $99 million for publishing, $25 million for digital and $9 million for broadcasting. The asset impairment charges did not affect the company’s operations or cash flow. Refer to Notes 3 and 4 of the Consolidated Financial Statements for more information.