Retirement plans

The company and its subsidiaries have various retirement plans, including plans established under collective bargaining agreements. The company’s principal retirement plan is the Gannett Retirement Plan (GRP). The disclosure tables below also include the assets and obligations of the Gannett Supplemental Retirement Plan (SERP), the Newsquest Pension Scheme in the U.K., the Newspaper Guild of Detroit Pension Plan, and The G.B. Dealey Retirement Pension Plan (Belo Plan). The company uses a Dec. 31 measurement date for its retirement plans.

Substantially all participants in the GRP, Belo Plan and SERP had their benefits frozen prior to 2009. Participants of the Newsquest plan had their benefits frozen effective March 31, 2011.

The company’s pension costs, which include costs for its qualified and non-qualified plans, are presented in the following table:



In thousands of dollars
	2013			2012			2011
Service cost—benefits earned during the period	$	7,538		$	7,545		$	7,833
Interest cost on benefit obligation	141,030			155,376			171,339
Expected return on plan assets	(198,216		)	(189,863		)	(211,659		)
Amortization of prior service costs	7,566			7,689			7,580
Amortization of actuarial loss	63,212			53,429			37,901
Pension expense for company-sponsored retirement plans	21,130			34,176			12,994
Settlement and special termination benefit charge	3,077			7,946			1,068
Total pension cost	$	24,207		$	42,122		$	14,062

The following table provides a reconciliation of pension benefit obligations (on a projected benefit obligation measurement basis), plan assets and funded status of company-sponsored retirement plans, along with the related amounts that are recognized in the Consolidated Balance Sheets.



In thousands of dollars
	Dec. 29, 2013			Dec. 30, 2012
Change in benefit obligations
Benefit obligations at beginning of year	$	3,573,085		$	3,351,494
Service cost	7,538			7,545
Interest cost	141,030			155,376
Plan amendments	177			—
Plan participants’ contributions	4			7
Actuarial (gain) loss	(104,131		)	300,525
Foreign currency translation	21,758			27,526
Gross benefits paid	(230,979		)	(245,899		)
Acquisitions	274,510			—
Settlements	(10,743		)	(23,489		)
Benefit obligations at end of year	$	3,672,249		$	3,573,085
Change in plan assets
Fair value of plan assets at beginning of year	$	2,552,316		$	2,408,768
Actual return on plan assets	364,652			254,225
Plan participants’ contributions	4			7
Employer contributions	107,086			137,499
Gross benefits paid	(230,979		)	(245,899		)
Acquisitions	229,774			—
Settlements	(10,743		)	(23,489		)
Foreign currency translation	16,357			21,205
Fair value of plan assets at end of year	$	3,028,467		$	2,552,316
Funded status at end of year	$	(643,782	)	$	(1,020,769	)
Amounts recognized in Consolidated Balance Sheets
Noncurrent assets	$	3,684		$	—
Accrued benefit cost—current	$	(15,271	)	$	(13,444	)
Accrued benefit cost—noncurrent	$	(632,195	)	$	(1,007,325	)

The funded status (on a projected benefit obligation basis) of the company’s principal retirement plans at Dec. 29, 2013, is as follows:



In thousands of dollars
	Fair Value of Plan Assets		Benefit Obligation		Funded Status
GRP	$	2,009,228	$	2,194,517	$	(185,289	)
SERP ^(a)	—		190,791		(190,791		)
Newsquest	699,478		925,280		(225,802		)
Belo	229,774		274,510		(44,736		)
All other	89,987		87,151		2,836
Total	$	3,028,467	$	3,672,249	$	(643,782	)
^(a) the SERP is an unfunded, unsecured liability

The accumulated benefit obligation for all defined benefit pension plans was $3.65 billion and $3.55 billion at Dec. 29, 2013 and Dec. 30, 2012, respectively.

The following table presents information for those company retirement plans for which accumulated benefits exceed assets:



In thousands of dollars
	Dec. 29, 2013		Dec. 30, 2012
Accumulated benefit obligation	$	3,568,021	$	3,546,819
Fair value of plan assets	$	2,938,480	$	2,552,316

The following table presents information for those company retirement plans for which projected benefit obligations exceed assets:



In thousands of dollars
	Dec. 29, 2013		Dec. 30, 2012
Projected benefit obligation	$	3,585,947	$	3,573,085
Fair value of plan assets	$	2,938,480	$	2,552,316

The following table summarizes the amounts recorded in accumulated other comprehensive income (loss) that have not yet been recognized as a component of pension expense as of the dates presented (pre-tax):



In thousands of dollars
	Dec. 29, 2013			Dec. 30, 2012
Net actuarial losses	$	(1,390,975	)	$	(1,717,674	)
Prior service cost	(53,949		)	(61,338		)
Amounts in accumulated other comprehensive income (loss)	$	(1,444,924	)	$	(1,779,012	)

The actuarial loss and prior service cost amounts expected to be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in 2014 are $44.1 million and $7.6 million, respectively.

Other changes in plan assets and benefit obligations recognized in other comprehensive loss consist of the following:



In thousands of dollars
	2013
Current year actuarial gain	$	270,568
Change in prior service cost	(177		)
Amortization of actuarial loss	63,212
Amortization of prior service costs	7,566
Recognition of settlement	3,077
Currency loss	(10,158		)
Total	$	334,088

Pension costs: The following assumptions were used to determine net pension costs:



	2013	2012	2011
Discount rate	4.08%	4.83%	5.49%
Expected return on plan assets	7.94%	7.95%	8.46%
Rate of compensation increase	2.97%	2.96%	2.95%

The expected return on plan assets assumption was determined based on plan asset allocations, a review of historic capital market performance, historical plan asset performance and a forecast of expected future plan asset returns.

Benefit obligations and funded status: The following assumptions were used to determine the year-end benefit obligations:



	Dec. 29, 2013	Dec. 30, 2012
Discount rate	4.75%	4.08%
Rate of compensation increase	2.97%	2.97%

During 2013, the company made contributions of $50.0 million to the GRP. The company contributed $35.2 million to the U.K. retirement plan in 2013. In 2014, the company expects to contribute $69.0 million to the GRP, $15.9 million to the U.K retirement plan and $15.5 million to the Belo Plan.

Plan assets: The fair value of plan assets was approximately $3.0 billion and $2.6 billion at the end of 2013 and 2012, respectively. The expected long-term rate of return on these assets was 7.94% for 2013, 7.95% for 2012, and 8.46% for 2011. The asset allocation for the GRP at the end of 2013 and 2012, and target allocations for 2014, by asset category, are presented in the table below:



Target Allocation			Allocation of Plan Assets
	2014		2013		2012
Equity securities	65	%	64	%	51	%
Debt securities	20		22		35
Other	15		14		14
Total	100	%	100	%	100	%

The primary objective of company-sponsored retirement plans is to provide eligible employees with scheduled pension benefits; the “prudent man” guideline is followed with regard to the investment management of retirement plan assets. Consistent with prudent standards for preservation of capital and maintenance of liquidity, the goal is to earn the highest possible total rate of return while minimizing risk. The principal means of reducing volatility and exercising prudent investment judgment is diversification by asset class and by investment manager; consequently, portfolios are constructed to attain prudent diversification in the total portfolio, each asset class, and within each individual investment manager’s portfolio. Investment diversification is consistent with the intent to minimize the risk of large losses. All objectives are based upon an investment horizon spanning five years so that interim market fluctuations can be viewed with the appropriate perspective. The target asset allocation represents the long-term perspective. Retirement plan assets will be rebalanced periodically to align them with the target asset allocations. Risk characteristics are measured and compared with an appropriate benchmark quarterly; periodic reviews are made of the investment objectives and the investment managers. The company’s actual investment return on its Gannett Retirement Plan assets was 16.4% for 2013, 12.6% for 2012 and 0.4% for 2011.

Retirement plan assets include approximately 1.2 million shares of the company’s common stock valued at approximately $36.7 million and $22.4 million at the end of 2013 and 2012, respectively. The plan received dividends of approximately $1.0 million on these shares in 2013.

Cash flows: The company estimates it will make the following benefit payments (from either retirement plan assets or directly from company funds), which reflect expected future service, as appropriate:



In thousands of dollars
2014	$	225,471
2015	$	226,259
2016	$	228,646
2017	$	234,066
2018	$	232,890
2019-2023	$	1,168,924

Multi-employer plans that provide pension benefits: The company contributes to a number of multi-employer defined benefit pension plans under the terms of collective-bargaining agreements (CBA) that cover its union-represented employees. The risks of participating in these multi-employer plans are different from single-employer plans in the following aspects:


•	The company plays no part in the management of plan investments or any other aspect of plan administration.


•	Assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers.


•	If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers.


•	If the company chooses to stop participating in some of its multi-employer plans, the company may be required to pay those plans an amount based on the unfunded status of the plan, referred to as withdrawal liability.

The company’s participation in these plans for the annual period ended Dec. 29, 2013, is outlined in the table below. The “EIN/Pension Plan Number” column provides the Employee Identification Number (EIN) and the three-digit plan number. Unless otherwise noted, the two most recent Pension Protection Act (PPA) zone statuses available are for the plan’s year-end at Dec. 31, 2013 and Dec. 31, 2012, respectively. The zone status is based on information that the company received from the plan and is certified by the

plan’s actuary. Among other factors, plans in the red zone are generally less than 65% funded; plans in the orange zone are both a) less than 80% funded and b) have an accumulated/expected funding deficiency in any of the next six plan years, net of any amortization extensions; plans in the yellow zone meet either one of the criteria mentioned in the orange zone; and plans in the green zone are at least 80% funded. The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented. The last column lists the expiration date(s) of the collective-bargaining agreement(s) to which the plans are subject.

The company makes all required contributions to these plans as determined under the respective CBAs. For each of the plans listed below, Gannett’s contribution represented less than 5% of total contributions to the plan.

The company incurred expenses for multi-employer withdrawal liabilities of $0.3 million, $3.8 million and $30.0 million in 2013, 2012, and 2011, respectively. Other noncurrent liabilities on the Consolidated Balance Sheet as of Dec. 29, 2013 and Dec. 30, 2012 include $34.1 million and $37.9 million, respectively, for such withdrawal liabilities. The actual withdrawal liabilities will not be known until at least 2014 and no material payments will be required until such determinations are made. Expenses and liabilities recorded by the company for the plans in 2011 were substantially higher than in other years. The costs and liabilities recorded in 2011 primarily relate to withdrawal liabilities triggered upon the company’s decision in December 2011 to cease production activities at its Cincinnati publishing operations and transition them to a non-Gannett publisher in Columbus, OH.

Multi-employer Pension Plans

EIN Number/

Zone Status
Dec. 31,

FIP/RP Status
Pending/Implemented

Contributions(in thousands)

Surcharge Imposed

Expiration Dates of CBAs

Pension Plan Name

Plan Number

2013

2012

2013

2012

2011

AFTRA Retirement Plan (a)

13-6414972/001

Green
as of
Nov.
30,
2012

Green
as of
Nov.
30,
2011

988

965

896

5/31/2015

9/11/2015

CWA/ITU Negotiated Pension Plan

13-6212879/001

Red

Implemented

242

572

146

8/17/2013

2/1/2014 10/15/2014 11/8/2014 12/31/2015

GCIU—Employer Retirement Benefit Plan (a)

91-6024903/001

Red

Implemented

216

380

280

1/31/2015

The Newspaper Guild International Pension Plan (a)

52-1082662/001

Red

Implemented

279

415

385

11/13/2015

IAM National Pension Plan (a)

51-6031295/002

Green

736

341

308

4/30/2016

Teamsters Pension Trust Fund of Philadelphia and Vicinity (a)

23-1511735/001

Yellow

Implemented

1,355

876

1,054

3/13/2013

Central Pension Fund of the International Union of Operating Engineers and Participating Employers (a)

36-6052390/001

Green
as of
Jan.
31,
2013

Green
as of
Jan.
31,
2012

160

158

163

4/30/2016

Central States Southeast and Southwest Areas Pension Fund

36-6044243/001

Red
as of
Dec.
31,
2012

Red
as of
Dec.
31,
2011

Implemented

260

372

6/30/2013

Total

4,016

3,967

3,604

(a) This plan has elected to utilize special amortization provisions provided under the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010.