Integration and reorganization costs, and asset impairments

6 Months Ended

Jun. 30, 2024

Restructuring and Related Activities [Abstract]

Integration and reorganization costs, and asset impairments

NOTE 5 — Integration and reorganization costs, and asset impairments

Integration and reorganization costs

Integration and reorganization costs include severance costs as well as other reorganization costs associated with individual restructuring programs, designed primarily to right-size the Company's employee base, consolidate facilities and improve operations. These initiatives impact all the Company's operations and can be influenced by the terms of union contracts. Costs related to these programs, which primarily include severance and other reorganization-related expenses, are accrued when probable and reasonably estimable or at the time of program announcement.

Severance-related expenses

The Company recorded severance-related expenses by segment as follows:


	Three months ended June 30,				Six months ended June 30,
In thousands	2024		2023		2024		2023
Domestic Gannett Media	$	4,116	$	1,332	$	8,193	$	6,844
Newsquest	243		376		412		976
Digital Marketing Solutions	84		(48)		109		(28)
Corporate and other	(14)		891		969		5,012
Total	$	4,429	$	2,551	$	9,683	$	12,804

A roll-forward of the accrued severance and related expenses included in Accounts payable and accrued liabilities on the condensed consolidated balance sheets for the six months ended June 30, 2024 is as follows:


In thousands	Severance and related expenses
Beginning balance	$	6,928
Restructuring provision included in integration and reorganization costs	9,683
Cash payments	(8,041)
Ending balance	$	8,570

Other reorganization-related expenses

Other reorganization-related costs represent individual restructuring programs, designed primarily to right-size the Company's employee base, consolidate facilities and improve operations. The Company recorded Other reorganization-related costs as follows:


	Three months ended June 30,				Six months ended June 30,
In thousands	2024		2023		2024		2023
Domestic Gannett Media(a)	$	10,577	$	602	$	21,389	$	(861)

Digital Marketing Solutions	803		—		803		—
Corporate and other	3,966		4,134		5,781		7,471
Total	$	15,346	$	4,736	$	27,973	$	6,610

(a) For the three and six months ended June 30, 2024, Other reorganization-related costs at the Domestic Gannett Media segment primarily reflected a $9.9 million withdrawal liability which was expensed as a result of ceasing contributions to a multiemployer pension plan. In addition, for the six months ended June 30, 2024, Other reorganization-related costs at the Domestic Gannett Media segment also reflected $9.7 million expensed as of the cease-use date related to certain licensed content. For the six months ended June 30, 2023, Other reorganization-related costs at the Domestic Gannett Media segment primarily reflected the reversal of a withdrawal liability related to a multiemployer pension plan of $2.0 million based on the settlement of the withdrawal liability.

Asset impairments

Corporate office relocation

On March 1, 2024, we exited and ceased use of our leased facility in McLean, Virginia and moved our corporate headquarters to our existing office space in New York. We will continue to seek subleases for the leased facility in McLean. As a result of the headquarters relocation, we recorded an impairment charge of approximately $46.0 million during the six months ended June 30, 2024 related to the McLean operating lease right-of-use asset and the associated leasehold improvements. The fair value was measured using a discounted cash flow model based on market rents projected over the remaining lease term.