XML 85 R18.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Income taxes | 12 Months Ended
--- | ---
Dec. 29, 2013
Income Tax Disclosure [Abstract] |
Income taxes | Income taxes The provision (benefit) for income taxes consists of the following:
In thousands of dollars
2013 | Current | Deferred | Total
Federal | $ | 95,000 |  | $ | 39,400 |  | $ | 134,400 |
State and other | (36,700 | ) | 8,000 |  | (28,700 | )
Foreign | 1,000 |  | 6,500 |  | 7,500 |
Total | $ | 59,300 |  | $ | 53,900 |  | $ | 113,200 |
In thousands of dollars
2012 | Current | Deferred | Total
Federal | $ | 82,200 |  | $ | 106,000 |  | $ | 188,200 |
State and other | (2,600 | ) | 17,100 |  | 14,500 |
Foreign | (6,900 | ) | (400 | ) | (7,300 | )
Total | $ | 72,700 |  | $ | 122,700 |  | $ | 195,400 |
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 |
The components of net income attributable to Gannett Co., Inc. before income taxes consist of the following:
In thousands of dollars
| 2013 | 2012 | 2011
Domestic | $ | 426,162 |  | $ | 538,988 |  | $ | 530,660 |
Foreign | 75,718 |  | 80,692 |  | 80,888 |
Total | $ | 501,880 |  | $ | 619,680 |  | $ | 611,548 |
The provision for income taxes on varies from the U.S. federal statutory tax rate as a result of the following differences:
| 2013 | 2012 | 2011
U.S. statutory tax rate | 35.0 | % | 35.0 | % | 35.0 | %
Increase (decrease) in taxes resulting from: |  |  |
Non-deductible goodwill impairment | — |  | 5.2 |  | — |
State/other income taxes net of federal income tax | 2.7 |  | 2.2 |  | 3.0 |
Statutory rate differential and permanent differences in earnings in foreign jurisdictions | (5.7 | ) | (5.6 | ) | (5.4 | )
Audit resolutions | (7.9 | ) | (4.6 | ) | (4.2 | )
Permanent stock basis deductions | — |  | — |  | (1.8 | )
Lapse of statutes of limitations net of federal income tax | (2.6 | ) | (1.8 | ) | (1.6 | )
Other, net | 1.1 |  | 1.1 |  | — |
Effective tax rate | 22.6 | % | 31.5 | % | 25.0 | %
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 the years 2011-2013, the special net tax benefit from the release of certain tax reserves due to audit settlements and the lapse of statutes of limitations for the years from 2011 to 2013, and the special net tax benefit from the permanent stock basis deduction for 2011, the company’s effective tax rate would have been 29.7% for 2013, 30.9% for 2012, and 31.6% for 2011. 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 2013, 2012 and 2011 are not significant. Deferred tax liabilities and assets were composed of the following at the end of 2013 and 2012:
In thousands of dollars
| Dec. 29, 2013 | Dec. 30, 2012
Liabilities |  |
Accelerated depreciation | $ | 302,650 |  | $ | 255,612 |
Accelerated amortization of deductible intangibles | 678,744 |  | 174,229 |
Other | 24,882 |  | 26,989 |
Total deferred tax liabilities | 1,006,276 |  | 456,830 |
Assets |  |
Accrued compensation costs | 75,492 |  | 77,684 |
Pension | 219,413 |  | 368,803 |
Postretirement medical and life | 55,921 |  | 65,573 |
Federal tax benefits of uncertain state tax positions | 12,474 |  | 31,002 |
Partnership investments including impairments | 1,140 |  | 39,542 |
Loss carryforwards | 74,018 |  | 58,596 |
Other | 84,738 |  | 66,164 |
Total deferred tax assets | 523,196 |  | 707,364 |
Valuation allowance | 83,579 |  | 76,419 |
Total net deferred tax assets (liabilities) | $ | (566,659 | ) | $ | 174,115 |
Amounts recognized in Consolidated Balance Sheets
Net current deferred tax assets | $ | 21,245 |  | $ | 15,840 |
Net noncurrent deferred tax assets (liabilities) | $ | (587,904 | ) | $ | 158,275 |
Included in total deferred tax assets are valuation allowances of approximately $83.6 million and $76.4 million in 2013 and 2012, respectively, primarily related to foreign tax credits, foreign losses, and state net operating losses available for carry forward to future years. The increase in the valuation allowance from 2012 to 2013 is related primarily to additional foreign losses, partially offset by the releases of valuation allowances on state operating losses in jurisdictions where future income projections and other positive evidence support the company’s ability to utilize the net operating 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:
In thousands of dollars
| Dec. 29, 2013 | Dec. 30, 2012
Change in unrecognized tax benefits |  |
Balance at beginning of year | $ | 86,180 |  | $ | 110,282 |
Additions based on tax positions related to the current year | 29,470 |  | 9,093 |
Additions for tax positions of prior years | 4,710 |  | 11,929 |
Reductions for tax positions of prior years | (33,109 | ) | (30,110 | )
Settlements | (1,246 | ) | (7,857 | )
Reductions due to lapse of statutes of limitations | (28,681 | ) | (7,157 | )
Balance at end of year | $ | 57,324 |  | $ | 86,180 |
The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate was $46.5 million as of Dec. 29, 2013, and $63.2 million as of Dec. 30, 2012. This amount includes the federal tax benefit of state tax deductions. 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. The company recognized income from interest and the release of penalty reserves of $17.2 million, $7.8 million and $4.5 million in 2013, 2012 and 2011, respectively. The amount of accrued interest and penalties payable related to unrecognized tax benefits was $11.5 million and $29.1 million as of Dec. 29, 2013 and Dec. 30, 2012, respectively. The company files income tax returns in the U.S. and various state and foreign jurisdictions. The 2010 through 2012 tax years remain subject to examination by the IRS. The 2009 through 2012 tax years generally remain subject to examination by state authorities, and the tax year 2012 is subject to examination in the U.K. In addition, tax years prior to 2009 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 $8 million within the next 12 months primarily due to lapses of statutes of limitations and settlement of ongoing audits in various jurisdictions.

X
- Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

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 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: 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=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: 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 5: 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 6: 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 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration