☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 38-3910250 | |||||||||||||
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |||||||||||||
7950 Jones Branch Drive, | McLean, | Virginia | 22107-0910 | |||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||
Common Stock, par value $0.01 per share | GCI | The New York Stock Exchange | ||||||
Preferred Stock Purchase Rights | N/A | The New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||||||||||
Emerging growth company | ☐ |
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Daily Newspapers | Weekly Newspapers | Shoppers | Niche Publications | Digital Media Sites | |||||||||||||
Cost: | Paid | Paid and free | Paid and free | Paid and free | Paid and free | ||||||||||||
Distribution: | Distributed four to seven days per week | Distributed one to three days per week | Distributed weekly | Distributed on a weekly, bi-weekly, monthly, quarterly, or annual basis | Digital, updated daily | ||||||||||||
Format: | Printed on newsprint, folded | Printed on newsprint, folded | Printed on newsprint, folded, or booklet | Printed on newsprint or glossy, folded, booklet, magazine, or book | Websites and mobile apps | ||||||||||||
Content: | Editorial (local news and coverage of community events, some national headlines) and ads (including classifieds) | Editorial (local news and coverage of community events, some national headlines for smaller markets which cannot support a daily newspaper) and ads (including classifieds) | Almost 100% ads, primarily classifieds, display, and inserts | Niche content and targeted ads (e.g., city guides, tourism guides, directories, and calendars) | Editorial, gaming, and ads | ||||||||||||
Income: | Revenue from advertisers, subscribers, rack/box sales | Paid: Revenue from advertising, subscribers, rack/box sales Free: Advertising revenue only, provide 100% market coverage | Paid: Revenue from advertising, rack/box sales Free: Advertising revenue only, provide 100% market coverage | Paid: Revenue from advertising, rack/box sales Free: Advertising revenue only | Revenue from advertisers and subscribers | ||||||||||||
Internet Availability: | Maintain locally oriented websites, mobile sites, and mobile apps for most locations | Major publications maintain locally oriented websites and mobile sites for select locations | Major publications maintain locally oriented websites | Selectively available online | Online only |
LOCAL PROPERTY NETWORK MEDIA ORGANIZATIONS | ||||||||||||||||||||
Publications | Production Facilities | |||||||||||||||||||
State / Territory | Dailies | Weeklies | ||||||||||||||||||
Alabama | 3 | 2 | 1 | |||||||||||||||||
Arizona | 1 | — | 1 | |||||||||||||||||
Arkansas | 1 | 4 | — | |||||||||||||||||
California | 7 | 8 | 1 | |||||||||||||||||
Colorado | 2 | 5 | 1 | |||||||||||||||||
Connecticut | 1 | — | — | |||||||||||||||||
Delaware | 1 | 4 | 1 | |||||||||||||||||
Florida | 18 | 6 | 4 | |||||||||||||||||
Georgia | 3 | 6 | 1 | |||||||||||||||||
Illinois | 11 | 11 | 1 | |||||||||||||||||
Indiana | 9 | 5 | 2 | |||||||||||||||||
Iowa | 4 | 9 | 1 | |||||||||||||||||
Kansas | 3 | — | 1 | |||||||||||||||||
Kentucky | 2 | — | — | |||||||||||||||||
Louisiana | 7 | 2 | — | |||||||||||||||||
Maine | — | 2 | — | |||||||||||||||||
Maryland | 2 | 1 | — | |||||||||||||||||
Massachusetts | 10 | 65 | 1 | |||||||||||||||||
Michigan | 14 | 14 | 1 | |||||||||||||||||
Minnesota | 1 | 6 | — | |||||||||||||||||
Mississippi | 2 | 1 | 1 | |||||||||||||||||
Missouri | 2 | — | 1 | |||||||||||||||||
Montana | 1 | — | — | |||||||||||||||||
Nevada | 1 | — | — | |||||||||||||||||
New Hampshire | 2 | 3 | 1 | |||||||||||||||||
New Jersey | 9 | 14 | 2 | |||||||||||||||||
New Mexico | 6 | — | 1 | |||||||||||||||||
New York | 12 | 8 | 1 | |||||||||||||||||
North Carolina | 12 | 4 | 2 | |||||||||||||||||
North Dakota | 1 | — | — | |||||||||||||||||
Ohio | 21 | 28 | 2 | |||||||||||||||||
Oklahoma | 4 | 1 | — | |||||||||||||||||
Oregon | 2 | 1 | — | |||||||||||||||||
Pennsylvania | 12 | 3 | — | |||||||||||||||||
Rhode Island | 2 | — | 1 | |||||||||||||||||
South Carolina | 3 | 4 | — | |||||||||||||||||
South Dakota | 3 | 1 | — | |||||||||||||||||
Tennessee | 8 | 6 | 1 | |||||||||||||||||
Texas | 9 | 18 | 3 | |||||||||||||||||
Utah | 1 | 1 | — | |||||||||||||||||
Vermont | 1 | — | — | |||||||||||||||||
Virginia | 2 | — | — | |||||||||||||||||
Washington | 1 | — | — | |||||||||||||||||
West Virginia | 1 | 2 | — | |||||||||||||||||
Wisconsin | 11 | 4 | 2 | |||||||||||||||||
Total | 229 | 249 | 35 |
Combined Average Circulation | ||||||||||||||||||||||||||
Title | Related Website(s) | Location | Daily(1) | Sunday(1) | ||||||||||||||||||||||
USA TODAY | www.usatoday.com | McLean, Virginia | 781,193 | 534,592 | ||||||||||||||||||||||
Detroit Free Press | www.freep.com | Detroit, Michigan | 83,733 | 896,634 | ||||||||||||||||||||||
The Columbus Dispatch | www.dispatch.com | Columbus, Ohio | 137,374 | 134,754 | ||||||||||||||||||||||
The Arizona Republic | www.azcentral.com | Phoenix, Arizona | 109,034 | 320,249 | ||||||||||||||||||||||
Milwaukee Journal Sentinel | www.jsonline.com | Milwaukee, Wisconsin | 75,676 | 115,026 | ||||||||||||||||||||||
The Oklahoman | www.oklahoman.com | Oklahoma City, Oklahoma | 39,639 | 50,521 | ||||||||||||||||||||||
The Indianapolis Star | www.indystar.com | Indianapolis, Indiana | 58,501 | 150,852 | ||||||||||||||||||||||
The Cincinnati Enquirer | www.cincinnati.com | Cincinnati, Ohio | 50,165 | 95,239 | ||||||||||||||||||||||
The Courier-Journal | www.courier-journal.com | Louisville, Kentucky | 45,250 | 115,546 | ||||||||||||||||||||||
The Austin American-Statesman | www.statesman.com | Austin, Texas | 47,217 | 67,639 | ||||||||||||||||||||||
The Record | www.northjersey.com | Bergen, New Jersey | 39,683 | 48,684 | ||||||||||||||||||||||
The Des Moines Register | www.desmoinesregister.com | Des Moines, Iowa | 40,768 | 91,427 | ||||||||||||||||||||||
Democrat and Chronicle | www.democratandchronicle.com | Rochester, New York | 43,101 | 73,569 | ||||||||||||||||||||||
The Akron Beacon Journal | www.beaconjournal.com | Akron, Ohio | 40,804 | 50,824 | ||||||||||||||||||||||
The Providence Journal | www.providencejournal.com | Providence, Rhode Island | 41,289 | 48,057 | ||||||||||||||||||||||
The Tennessean | www.tennessean.com | Nashville, Tennessee | 33,693 | 103,420 |
DAILY PAID-FOR LOCAL MEDIA ORGANIZATIONS AND AFFILIATED DIGITAL PLATFORMS / NEWSQUEST | ||||||||||||||||||||
Title | Related Website(s) | Location | Circulation Monday - Saturday(1) | |||||||||||||||||
Basildon & Southend Echo | www.echo-news.co.uk | Basildon, Southend on Sea | 11,107 | |||||||||||||||||
Bolton News | www.theboltonnews.co.uk | Bolton | 5,562 | |||||||||||||||||
Bournemouth - The Daily Echo | www.bournemouthecho.co.uk | Bournemouth | 7,989 | |||||||||||||||||
Bradford Telegraph & Argus | www.thetelegraphandargus.co.uk | Bradford | 6,852 | |||||||||||||||||
Colchester Daily Gazette | www.gazette-news.co.uk | Colchester | 5,628 | |||||||||||||||||
Dorset Echo | www.dorsetecho.co.uk | Dorset | 5,963 | |||||||||||||||||
Glasgow - Evening Times | www.eveningtimes.co.uk | Glasgow | 10,996(2) | |||||||||||||||||
Greenock Telegraph | www.greenocktelegraph.co.uk | Greenock | 6,130(2) | |||||||||||||||||
Lancashire Telegraph | www.lancashiretelegraph.co.uk | Blackburn, Burnley | 4,641 | |||||||||||||||||
Oxford Mail | www.oxfordmail.co.uk | Oxford | 6,337 | |||||||||||||||||
South Wales Argus - Newport | www.southwalesargus.co.uk | Newport | 5,749 | |||||||||||||||||
Southampton - Southern Daily Echo | www.dailyecho.co.uk | Southampton | 9,026 | |||||||||||||||||
Swindon Advertiser | www.swindonadvertiser.co.uk | Swindon | 5,474 | |||||||||||||||||
The Argus Brighton | www.theargus.co.uk | Brighton | 7,886 | |||||||||||||||||
The Herald, Scotland | www.heraldscotland.co.uk | Glasgow, Edinburgh | 19,301(2) | |||||||||||||||||
The National, Scotland | www.thenational.scot | Glasgow, Edinburgh | 9,395(2) | |||||||||||||||||
The Northern Echo | www.thisisthenortheast.co.uk | Darlington | 13,106 | |||||||||||||||||
The Press - York | www.yorkpress.co.uk | York | 7,773 | |||||||||||||||||
Worcester News | www.worcesternews.co.uk | Worcester | 3,960 | |||||||||||||||||
The Leader | www.leaderlive.co.uk | Wrexham | 4,404 | |||||||||||||||||
The Mail | www.nwemail.co.uk | Cumbria | 3,469 | |||||||||||||||||
News & Star | www.newsandstar.co.uk | Carlisle | 3,879 | |||||||||||||||||
Oldham Times | www.theoldhamtimes.co.uk | Oldham | 1,004 |
Year ended December 31, | |||||||||||||||||||||||
In thousands, except per share amounts | 2021 | 2020 | Change | % Change | |||||||||||||||||||
Operating revenues: | |||||||||||||||||||||||
Publishing | $ | 2,886,735 | $ | 3,080,447 | $ | (193,712) | (6 | %) | |||||||||||||||
Digital Marketing Solutions | 442,299 | 428,605 | 13,694 | 3 | % | ||||||||||||||||||
Corporate and other | 8,371 | 10,960 | (2,589) | (24 | %) | ||||||||||||||||||
Intersegment eliminations | (129,322) | (114,342) | (14,980) | 13 | % | ||||||||||||||||||
Total operating revenues | 3,208,083 | 3,405,670 | (197,587) | (6 | %) | ||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Publishing | 2,653,855 | 3,268,911 | (615,056) | (19 | %) | ||||||||||||||||||
Digital Marketing Solutions | 422,506 | 481,177 | (58,671) | (12 | %) | ||||||||||||||||||
Corporate and other | 151,967 | 217,812 | (65,845) | (30 | %) | ||||||||||||||||||
Intersegment eliminations | (129,322) | (114,342) | (14,980) | 13 | % | ||||||||||||||||||
Total operating expenses | 3,099,006 | 3,853,558 | (754,552) | (20 | %) | ||||||||||||||||||
Operating income (loss) | 109,077 | (447,888) | 556,965 | *** | |||||||||||||||||||
Non-operating expense | 196,998 | 257,959 | (60,961) | (24 | %) | ||||||||||||||||||
Loss before income taxes | (87,921) | (705,847) | 617,926 | (88 | %) | ||||||||||||||||||
Provision (benefit) for income taxes | 48,250 | (33,450) | 81,700 | *** | |||||||||||||||||||
Net loss | $ | (136,171) | $ | (672,397) | $ | 536,226 | (80 | %) | |||||||||||||||
Net loss attributable to noncontrolling interests | (1,209) | (1,918) | 709 | (37 | %) | ||||||||||||||||||
Net loss attributable to Gannett | $ | (134,962) | $ | (670,479) | $ | 535,517 | (80 | %) | |||||||||||||||
Loss per share attributable to Gannett - basic | $ | (1.00) | $ | (5.09) | $ | 4.09 | (80 | %) | |||||||||||||||
Loss per share attributable to Gannett - diluted | $ | (1.00) | $ | (5.09) | $ | 4.09 | (80 | %) |
Year ended December 31, | |||||||||||
In thousands | 2021 | 2020 | |||||||||
Loss before income taxes | $ | (87,921) | $ | (705,847) | |||||||
Provision (benefit) for income taxes | 48,250 | (33,450) | |||||||||
Effective tax rate | NM | 4.7 | % |
Year ended December 31, | |||||||||||||||||||||||
In thousands | 2021 | 2020 | Change | % Change | |||||||||||||||||||
Operating revenues: | |||||||||||||||||||||||
Advertising and marketing services | $ | 1,337,203 | $ | 1,409,500 | $ | (72,297) | (5 | %) | |||||||||||||||
Circulation | 1,249,669 | 1,391,983 | (142,314) | (10 | %) | ||||||||||||||||||
Other | 299,863 | 278,964 | 20,899 | 7 | % | ||||||||||||||||||
Total operating revenues | 2,886,735 | 3,080,447 | (193,712) | (6 | %) | ||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Operating costs | 1,722,473 | 1,842,825 | (120,352) | (7 | %) | ||||||||||||||||||
Selling, general and administrative expenses | 736,766 | 787,770 | (51,004) | (6 | %) | ||||||||||||||||||
Depreciation and amortization | 157,212 | 221,746 | (64,534) | (29 | %) | ||||||||||||||||||
Integration and reorganization costs | 15,960 | 60,852 | (44,892) | (74 | %) | ||||||||||||||||||
Asset impairments | 3,976 | 10,312 | (6,336) | (61 | %) | ||||||||||||||||||
Goodwill and intangible impairments | — | 352,947 | (352,947) | (100 | %) | ||||||||||||||||||
Loss (gain) on sale or disposal of assets, net | 17,468 | (7,541) | 25,009 | *** | |||||||||||||||||||
Total operating expenses | 2,653,855 | 3,268,911 | (615,056) | (19 | %) | ||||||||||||||||||
Operating income (loss) | $ | 232,880 | $ | (188,464) | $ | 421,344 | *** |
Year ended December 31, | |||||||||||||||||||||||
In thousands | 2021 | 2020 | Change | % Change | |||||||||||||||||||
Local and national print | $ | 502,014 | $ | 584,929 | $ | (82,915) | (14 | %) | |||||||||||||||
Classified print | 290,272 | 316,392 | (26,120) | (8 | %) | ||||||||||||||||||
Print advertising | 792,286 | 901,321 | (109,035) | (12 | %) | ||||||||||||||||||
Digital media | 361,288 | 341,259 | 20,029 | 6 | % | ||||||||||||||||||
Digital marketing services | 131,733 | 108,930 | 22,803 | 21 | % | ||||||||||||||||||
Digital classified | 51,896 | 57,990 | (6,094) | (11 | %) | ||||||||||||||||||
Digital advertising and marketing services | 544,917 | 508,179 | 36,738 | 7 | % | ||||||||||||||||||
Advertising and marketing services | 1,337,203 | 1,409,500 | (72,297) | (5 | %) | ||||||||||||||||||
Print circulation | 1,149,181 | 1,316,695 | (167,514) | (13 | %) | ||||||||||||||||||
Digital-only circulation | 100,488 | 75,288 | 25,200 | 33 | % | ||||||||||||||||||
Circulation | 1,249,669 | 1,391,983 | (142,314) | (10 | %) | ||||||||||||||||||
Other | 299,863 | 278,964 | 20,899 | 7 | % | ||||||||||||||||||
Total operating revenues | $ | 2,886,735 | $ | 3,080,447 | $ | (193,712) | (6 | %) |
Year ended December 31, | |||||||||||||||||||||||
In thousands | 2021 | 2020 | Change | % Change | |||||||||||||||||||
Newsprint and ink | $ | 105,557 | $ | 130,912 | $ | (25,355) | (19 | %) | |||||||||||||||
Distribution | 431,412 | 406,784 | 24,628 | 6 | % | ||||||||||||||||||
Compensation and benefits | 553,807 | 629,643 | (75,836) | (12 | %) | ||||||||||||||||||
Outside services | 338,292 | 333,435 | 4,857 | 1 | % | ||||||||||||||||||
Other | 293,405 | 342,051 | (48,646) | (14 | %) | ||||||||||||||||||
Total operating costs | $ | 1,722,473 | $ | 1,842,825 | $ | (120,352) | (7 | %) |
Year ended December 31, | |||||||||||||||||||||||
In thousands | 2021 | 2020 | Change | % Change | |||||||||||||||||||
Compensation and benefits | $ | 381,437 | $ | 396,017 | $ | (14,580) | (4 | %) | |||||||||||||||
Outside services and other | 355,329 | 391,753 | (36,424) | (9 | %) | ||||||||||||||||||
Total selling, general and administrative expenses | $ | 736,766 | $ | 787,770 | $ | (51,004) | (6 | %) |
Year ended December 31, | |||||||||||||||||||||||
In thousands | 2021 | 2020 | Change | % Change | |||||||||||||||||||
Net income (loss) attributable to Gannett | $ | 336,099 | $ | (108,606) | $ | 444,705 | *** | ||||||||||||||||
Interest expense | — | 142 | (142) | (100 | %) | ||||||||||||||||||
Non-operating pension income | (95,357) | (71,858) | (23,499) | 33 | % | ||||||||||||||||||
Depreciation and amortization | 157,212 | 221,746 | (64,534) | (29 | %) | ||||||||||||||||||
Integration and reorganization costs | 15,960 | 60,852 | (44,892) | (74 | %) | ||||||||||||||||||
Asset impairments | 3,976 | 10,312 | (6,336) | (61 | %) | ||||||||||||||||||
Goodwill and intangible impairments | — | 352,947 | (352,947) | (100 | %) | ||||||||||||||||||
Loss (gain) on sale or disposal of assets, net | 17,468 | (7,541) | 25,009 | *** | |||||||||||||||||||
Other items | (1,385) | 1,201 | (2,586) | *** | |||||||||||||||||||
Adjusted EBITDA (non-GAAP basis)(a) | $ | 433,973 | $ | 459,195 | $ | (25,222) | (5 | %) | |||||||||||||||
Net income (loss) attributable to Gannett margin | 11.6 | % | (3.5) | % | |||||||||||||||||||
Adjusted EBITDA margin (non-GAAP basis)(a)(b) | 15.0 | % | 14.9 | % |
Year ended December 31, | |||||||||||||||||||||||
In thousands | 2021 | 2020 | Change | % Change | |||||||||||||||||||
Operating revenues: | |||||||||||||||||||||||
Advertising and marketing services | $ | 441,394 | $ | 411,940 | $ | 29,454 | 7 | % | |||||||||||||||
Other | 905 | 16,665 | (15,760) | (95 | %) | ||||||||||||||||||
Total operating revenues | 442,299 | 428,605 | 13,694 | 3 | % | ||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Operating costs | 299,014 | 276,859 | 22,155 | 8 | % | ||||||||||||||||||
Selling, general and administrative expenses | 92,325 | 128,834 | (36,509) | (28 | %) | ||||||||||||||||||
Depreciation and amortization | 30,061 | 25,878 | 4,183 | 16 | % | ||||||||||||||||||
Integration and reorganization costs | 1,710 | 6,663 | (4,953) | (74 | %) | ||||||||||||||||||
Asset impairments | — | 717 | (717) | (100 | %) | ||||||||||||||||||
Goodwill and intangible impairments | — | 40,499 | (40,499) | (100 | %) | ||||||||||||||||||
(Gain) loss on sale or disposal of assets, net | (604) | 1,727 | (2,331) | *** | |||||||||||||||||||
Total operating expenses | 422,506 | 481,177 | (58,671) | (12 | %) | ||||||||||||||||||
Operating income (loss) | $ | 19,793 | $ | (52,572) | $ | 72,365 | *** |
Year ended December 31, | |||||||||||||||||||||||
In thousands | 2021 | 2020 | Change | % Change | |||||||||||||||||||
Outside services | $ | 260,504 | $ | 216,847 | $ | 43,657 | 20 | % | |||||||||||||||
Compensation and benefits | 31,136 | 44,441 | (13,305) | (30 | %) | ||||||||||||||||||
Other | 7,374 | 15,571 | (8,197) | (53 | %) | ||||||||||||||||||
Total operating costs | $ | 299,014 | $ | 276,859 | $ | 22,155 | 8 | % |
Year ended December 31, | |||||||||||||||||||||||
In thousands | 2021 | 2020 | Change | % Change | |||||||||||||||||||
Compensation and benefits | $ | 69,749 | $ | 113,314 | $ | (43,565) | (38 | %) | |||||||||||||||
Outside services and other | 22,576 | 15,520 | 7,056 | 45 | % | ||||||||||||||||||
Total selling, general and administrative expenses | $ | 92,325 | $ | 128,834 | $ | (36,509) | (28 | %) |
Year ended December 31, | |||||||||||||||||||||||
In thousands | 2021 | 2020 | Change | % Change | |||||||||||||||||||
Net income (loss) attributable to Gannett | $ | 18,442 | $ | (42,494) | $ | 60,936 | *** | ||||||||||||||||
Depreciation and amortization | 30,061 | 25,878 | 4,183 | 16 | % | ||||||||||||||||||
Integration and reorganization costs | 1,710 | 6,663 | (4,953) | (74 | %) | ||||||||||||||||||
Asset impairments | — | 717 | (717) | (100 | %) | ||||||||||||||||||
Goodwill and intangible impairments | — | 40,499 | (40,499) | (100 | %) | ||||||||||||||||||
(Gain) loss on sale or disposal of assets, net | (604) | 1,727 | (2,331) | *** | |||||||||||||||||||
Other items | 1,351 | (8,629) | 9,980 | *** | |||||||||||||||||||
Adjusted EBITDA (non-GAAP basis)(a) | $ | 50,960 | $ | 24,361 | $ | 26,599 | *** | ||||||||||||||||
Net income (loss) attributable to Gannett margin | 4.2 | % | (9.9) | % | |||||||||||||||||||
Adjusted EBITDA margin (non-GAAP basis)(a)(b) | 11.5 | % | 5.7 | % |
Year ended December 31, | |||||||||||||||||||||||
In thousands | 2021 | 2020 | Change | % Change | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Operating costs | 8,780 | 23,013 | (14,233) | (62 | %) | ||||||||||||||||||
Selling, general and administrative expenses | 73,592 | 89,102 | (15,510) | (17 | %) | ||||||||||||||||||
Depreciation and amortization | 16,685 | 16,195 | 490 | 3 | % | ||||||||||||||||||
Integration and reorganization costs | 31,614 | 78,216 | (46,602) | (60 | %) | ||||||||||||||||||
Other operating expenses | 20,952 | 11,152 | 9,800 | 88 | % | ||||||||||||||||||
Loss on sale or disposal of assets, net | 344 | 134 | 210 | *** | |||||||||||||||||||
Total operating expenses | $ | 151,967 | $ | 217,812 | $ | (65,845) | (30 | %) |
Year Ended | |||||||||||
In thousands | December 31, 2021 | December 31, 2020 | |||||||||
Cash provided by operating activities | $ | 127,453 | $ | 57,770 | |||||||
Cash provided by investing activities | 70,647 | 160,136 | |||||||||
Cash used for financing activities | (261,172) | (201,342) | |||||||||
Effect of currency exchange rate change | (35) | 1,498 | |||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | $ | (63,107) | $ | 18,062 |
Year ended December 31, | |||||||||||
In thousands | 2021 | 2020 | |||||||||
Net loss attributable to Gannett | $ | (134,962) | $ | (670,479) | |||||||
Provision (benefit) for income taxes | 48,250 | (33,450) | |||||||||
Interest expense | 135,748 | 228,513 | |||||||||
Loss on early extinguishment of debt | 48,708 | 43,760 | |||||||||
Non-operating pension income | (95,357) | (72,149) | |||||||||
Loss on convertible notes derivative | 126,600 | 74,329 | |||||||||
Depreciation and amortization | 203,958 | 263,819 | |||||||||
Integration and reorganization costs | 49,284 | 145,731 | |||||||||
Other operating expenses | 20,952 | 11,152 | |||||||||
Asset impairments | 3,976 | 11,029 | |||||||||
Goodwill and intangible impairments | — | 393,446 | |||||||||
Loss (gain) on sale or disposal of assets, net | 17,208 | (5,680) | |||||||||
Share-based compensation expense | 18,439 | 26,350 | |||||||||
Other items | (9,092) | (2,476) | |||||||||
Adjusted EBITDA (non-GAAP basis) | $ | 433,712 | $ | 413,895 | |||||||
Net loss attributable to Gannett margin | (4.2) | % | (19.7) | % | |||||||
Adjusted EBITDA margin (non-GAAP basis) | 13.5 | % | 12.2 | % |
Page | |||||
FINANCIAL STATEMENTS | |||||
Goodwill and Intangible Assets with Indefinite Lives Impairment Assessment | |||||
Description of the Matter | At December 31, 2021, the Company’s goodwill and intangible assets with indefinite lives, which consist of newspaper mastheads, were $533.7 million and $168.2 million, respectively. As discussed in Note 2 of the consolidated financial statements, goodwill and intangible assets with indefinite lives are tested for impairment at least annually or when events occur that indicate impairment could exist. The Company did not identify impairment of goodwill and indefinite lived-intangible assets as a result of the annual impairment assessment performed as of June 30, 2021. Auditing management’s impairment tests of goodwill and newspaper masthead intangible assets was complex and judgmental and required the involvement of specialists due to the estimation required in determining the fair value of the reporting units and newspaper mastheads. In particular, the estimates of the fair value of the reporting units are sensitive to significant assumptions such as projected revenue growth rates, discount rates and projected EBITDA margins. The estimates of fair value of the newspaper masthead intangible assets are sensitive to significant assumptions including the royalty rates, discount rates and projected revenue growth rates. These assumptions are affected by expectations about future economic and industry factors. |
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s goodwill and intangible assets with indefinite lives impairment review process. For example, we tested controls over management’s review of the significant assumptions described above as well as management’s review of the reasonableness of the underlying data used in the valuation analyses. To test the estimated fair value of the Company’s reporting units and newspaper masthead intangible assets, we performed audit procedures that included, among others, assessing the valuation methodologies used, testing the significant assumptions described above and testing the completeness and accuracy of the underlying data the Company used in its analyses. For example, we compared the projected revenue growth rates and EBITDA margins used in the valuations to current industry and economic trends and assessed the historical accuracy of management’s estimates. With the assistance of our internal valuation specialists, we also developed an independent range of the discount rate and royalty rate assumptions and compared them to the rates determined by management. We performed sensitivity analyses of the significant assumptions to evaluate the changes in the fair value of the reporting units and the newspaper masthead intangible assets that would result from changes in the assumptions. In addition, we tested management’s reconciliation of the fair value of the reporting units to the market capitalization of the Company. | ||||
Defined Benefit Pension Obligation | |||||
Description of the Matter | At December 31, 2021, the Company’s aggregate obligation for its defined benefit pension plans was $3.0 billion, with related pension assets of $3.2 billion, resulting in a net pension asset of $215.6 million as of December 31, 2021. The Company recorded a net periodic pension benefit of $95.4 million for the year-ended December 31, 2021. As described in Note 10 of the consolidated financial statements, the Company updates the estimates used to measure the defined benefit pension assets and obligations annually or upon a remeasurement event to reflect the actual return on plan assets and updated actuarial assumptions. Auditing the defined benefit pension obligations and net periodic pension benefit was complex and required the involvement of specialists due to the judgmental nature of the actuarial assumptions such as the discount rate and expected return on plan assets used in the measurement process. These assumptions have a significant effect on the projected defined benefit pension obligation and net periodic pension benefit. | ||||
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of the controls over management’s measurement and valuation of the defined benefit pension obligations and net periodic pension benefit. For example, we tested controls over management’s review of the defined benefit pension obligation calculations, the significant actuarial assumptions, and the data inputs used in the actuarial models. To test the defined benefit pension obligation and net periodic pension benefit, our audit procedures included, among others, evaluating the methodology used, the significant actuarial assumptions described above, and the underlying data used by the Company. We compared the actuarial assumptions used by management to historical trends. We involved actuarial specialists in the evaluation of management’s methodology for determining the discount rate that reflects the maturity and duration of the benefit payments and is used to measure the defined benefit pension obligation. To perform this evaluation, we compared the discount rate to an independent range of discount rates developed using the projected benefit cash outlays. As part of this assessment, we compared the projected cash flows to the historical cash flows and compared the current year benefits paid to the plans’ prior year projected cash flows. We also tested the completeness and accuracy of the underlying data, including the participant data provided to the Company’s actuarial specialists. To evaluate the expected return on plan assets, we assessed whether management’s assumption is consistent with a range of returns for a portfolio of comparative investments. |
In thousands, except share amounts | December 31, 2021 | December 31, 2020 | |||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 130,756 | $ | 170,725 | |||||||
Accounts receivable, net of allowance for doubtful accounts of $16,470 and $20,843, respectively | 328,733 | 314,305 | |||||||||
Inventories | 37,662 | 35,075 | |||||||||
Prepaid expense and other current assets | 80,110 | 116,581 | |||||||||
Total current assets | 577,261 | 636,686 | |||||||||
Property, plant and equipment, net | 415,384 | 590,272 | |||||||||
Operating lease assets | 271,935 | 289,504 | |||||||||
Goodwill | 533,709 | 534,088 | |||||||||
Intangible assets, net | 713,153 | 824,650 | |||||||||
Deferred tax assets | 32,399 | 90,240 | |||||||||
Pension plan and other assets | 284,228 | 143,474 | |||||||||
Total assets | $ | 2,828,069 | $ | 3,108,914 | |||||||
Liabilities and equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued liabilities | $ | 357,014 | $ | 378,246 | |||||||
Deferred revenue | 184,838 | 186,007 | |||||||||
Current portion of long-term debt | 69,456 | 128,445 | |||||||||
Other current liabilities | 51,218 | 48,602 | |||||||||
Total current liabilities | 662,526 | 741,300 | |||||||||
Long-term debt | 769,446 | 890,323 | |||||||||
Convertible debt | 393,354 | 581,405 | |||||||||
Deferred tax liabilities | 28,812 | 6,855 | |||||||||
Pension and other postretirement benefit obligations | 71,937 | 99,765 | |||||||||
Long-term operating lease liabilities | 254,969 | 274,460 | |||||||||
Other long-term liabilities | 117,410 | 151,847 | |||||||||
Total noncurrent liabilities | 1,635,928 | 2,004,655 | |||||||||
Total liabilities | 2,298,454 | 2,745,955 | |||||||||
Redeemable noncontrolling interests | — | (1,150) | |||||||||
Commitments and contingent liabilities (see Note 14) | |||||||||||
Equity | |||||||||||
Preferred stock, $0.01 par value, 300,000 shares authorized, of which 150,000 shares are designated as Series A Junior Participating Preferred Stock, none of which were outstanding at December 31, 2021 and December 31, 2020 | — | — | |||||||||
Common stock, $0.01 par value, 2,000,000,000 shares authorized; 144,667,389 shares issued and 142,299,399 shares outstanding at December 31, 2021; 139,494,741 shares issued and 138,102,993 shares outstanding at December 31, 2020 | 1,446 | 1,395 | |||||||||
Treasury stock, at cost, 2,367,990 and 1,391,748 shares at December 31, 2021 and December 31, 2020, respectively | (8,151) | (4,903) | |||||||||
Additional paid-in capital | 1,400,206 | 1,103,881 | |||||||||
Accumulated deficit | (921,399) | (786,437) | |||||||||
Accumulated other comprehensive income | 59,998 | 50,173 | |||||||||
Total Gannett stockholders equity | 532,100 | 364,109 | |||||||||
Noncontrolling interests | (2,485) | — | |||||||||
Total equity | 529,615 | 364,109 | |||||||||
Total liabilities and equity | $ | 2,828,069 | $ | 3,108,914 |
Year ended December 31, | |||||||||||||||||
In thousands, except per share amounts | 2021 | 2020 | 2019 | ||||||||||||||
Advertising and marketing services | $ | 1,651,161 | $ | 1,710,244 | $ | 952,644 | |||||||||||
Circulation | 1,249,674 | 1,391,996 | 704,842 | ||||||||||||||
Other | 307,248 | 303,430 | 210,423 | ||||||||||||||
Total operating revenues | 3,208,083 | 3,405,670 | 1,867,909 | ||||||||||||||
Operating costs | 1,901,564 | 2,034,272 | 1,079,593 | ||||||||||||||
Selling, general and administrative expenses | 902,064 | 999,789 | 602,106 | ||||||||||||||
Depreciation and amortization | 203,958 | 263,819 | 111,882 | ||||||||||||||
Integration and reorganization costs | 49,284 | 145,731 | 52,212 | ||||||||||||||
Asset impairments | 3,976 | 11,029 | 3,009 | ||||||||||||||
Goodwill and intangible impairments | — | 393,446 | 100,743 | ||||||||||||||
Loss (gain) on sale or disposal of assets, net | 17,208 | (5,680) | 4,723 | ||||||||||||||
Other operating expenses | 20,952 | 11,152 | 60,618 | ||||||||||||||
Total operating expenses | 3,099,006 | 3,853,558 | 2,014,886 | ||||||||||||||
Operating income (loss) | 109,077 | (447,888) | (146,977) | ||||||||||||||
Interest expense | 135,748 | 228,513 | 63,660 | ||||||||||||||
Loss on early extinguishment of debt | 48,708 | 43,760 | 6,058 | ||||||||||||||
Non-operating pension income | (95,357) | (72,149) | (9,085) | ||||||||||||||
Loss on convertible notes derivative | 126,600 | 74,329 | — | ||||||||||||||
Other non-operating income, net | (18,701) | (16,494) | (426) | ||||||||||||||
Non-operating expense | 196,998 | 257,959 | 60,207 | ||||||||||||||
Loss before income taxes | (87,921) | (705,847) | (207,184) | ||||||||||||||
Provision (benefit) for income taxes | 48,250 | (33,450) | (85,994) | ||||||||||||||
Net loss | $ | (136,171) | $ | (672,397) | $ | (121,190) | |||||||||||
Net loss attributable to noncontrolling interests | (1,209) | (1,918) | (1,348) | ||||||||||||||
Net loss attributable to Gannett | $ | (134,962) | $ | (670,479) | $ | (119,842) | |||||||||||
Loss per share attributable to Gannett - basic | $ | (1.00) | $ | (5.09) | $ | (1.77) | |||||||||||
Loss per share attributable to Gannett - diluted | $ | (1.00) | $ | (5.09) | $ | (1.77) | |||||||||||
Dividends declared per share | $ | — | $ | — | $ | 1.52 | |||||||||||
Other comprehensive income: | |||||||||||||||||
Foreign currency translation adjustments | $ | (604) | $ | 2,466 | $ | 7,266 | |||||||||||
Pension and other postretirement benefit items: | |||||||||||||||||
Net actuarial gain | 13,811 | 60,471 | 12,534 | ||||||||||||||
Amortization of net actuarial loss | 64 | 37 | 86 | ||||||||||||||
Change in prior service cost | — | (1,905) | — | ||||||||||||||
Other | (387) | (2,108) | 305 | ||||||||||||||
Total pension and other postretirement benefit items | 13,488 | 56,495 | 12,925 | ||||||||||||||
Other comprehensive income before tax | 12,884 | 58,961 | 20,191 | ||||||||||||||
Income tax provision related to components of other comprehensive income | 3,059 | 16,990 | 5,108 | ||||||||||||||
Other comprehensive income, net of tax | 9,825 | 41,971 | 15,083 | ||||||||||||||
Comprehensive loss | (126,346) | (630,426) | (106,107) | ||||||||||||||
Comprehensive loss attributable to noncontrolling interests(a) | (1,209) | (1,918) | (1,348) | ||||||||||||||
Comprehensive loss attributable to Gannett | $ | (125,137) | $ | (628,508) | $ | (104,759) |
Year ended December 31, | |||||||||||||||||
In thousands | 2021 | 2020 | 2019 | ||||||||||||||
Operating activities | |||||||||||||||||
Net loss | $ | (136,171) | $ | (672,397) | $ | (121,190) | |||||||||||
Adjustments to reconcile net loss to operating cash flows: | |||||||||||||||||
Depreciation and amortization | 203,958 | 263,819 | 111,882 | ||||||||||||||
Share-based compensation expense | 18,439 | 26,350 | 11,324 | ||||||||||||||
Non-cash interest expense | 25,507 | 24,086 | 3,851 | ||||||||||||||
Non-cash acquisition related costs | — | — | 26,411 | ||||||||||||||
Provision (benefit) for deferred income taxes | 44,970 | (30,175) | (87,765) | ||||||||||||||
Loss (gain) on sale or disposal of assets, net | 17,208 | (5,680) | 4,723 | ||||||||||||||
Loss on convertible notes derivative | 126,600 | 74,329 | — | ||||||||||||||
Loss on early extinguishment of debt | 48,708 | 43,760 | 6,058 | ||||||||||||||
Asset impairments | 3,976 | 11,029 | 3,009 | ||||||||||||||
Goodwill and intangible impairments | — | 393,446 | 100,743 | ||||||||||||||
Pension and other postretirement benefit obligations | (150,824) | (117,522) | (100,452) | ||||||||||||||
Change in assets and liabilities: | |||||||||||||||||
Accounts receivables, net | (33,246) | 111,506 | 12,608 | ||||||||||||||
Inventory | (2,824) | 19,965 | 5,150 | ||||||||||||||
Prepaid expenses | 5,576 | 4,078 | 7,016 | ||||||||||||||
Accounts payable and accrued liabilities | (33,457) | (66,377) | 44,311 | ||||||||||||||
Deferred revenue | 931 | (19,348) | (8,326) | ||||||||||||||
Other assets and liabilities | (11,898) | (3,099) | 6,182 | ||||||||||||||
Cash provided by operating activities | 127,453 | 57,770 | 25,535 | ||||||||||||||
Investing activities | |||||||||||||||||
Acquisitions, net of cash acquired | (125) | — | (796,502) | ||||||||||||||
Purchases of property, plant, and equipment | (39,560) | (36,975) | (13,978) | ||||||||||||||
Proceeds from sale of publications, real estate and other assets | 111,765 | 196,344 | 27,486 | ||||||||||||||
Insurance proceeds received for damage to property | — | 1,643 | — | ||||||||||||||
Change in other investing activities | (1,433) | (876) | (2,066) | ||||||||||||||
Cash provided by (used for) investing activities | 70,647 | 160,136 | (785,060) | ||||||||||||||
Financing activities | |||||||||||||||||
Payments of debt issuance costs | (21,071) | (2,307) | (121,223) | ||||||||||||||
Borrowings of long-term debt | 1,934,940 | — | 1,792,000 | ||||||||||||||
Borrowings under revolving credit facility | — | — | 153,900 | ||||||||||||||
Repayments of long-term debt | (2,156,046) | (681,050) | (481,058) | ||||||||||||||
Repayments under revolving credit facility | — | — | (153,900) | ||||||||||||||
Repurchase of convertible debt | (15,012) | — | (197,950) | ||||||||||||||
Proceeds from convertible debt | — | 497,094 | — | ||||||||||||||
Payments of dividends | — | — | (91,936) | ||||||||||||||
Changes in other financing activities | (3,983) | (15,079) | (920) | ||||||||||||||
Cash provided by (used for) financing activities | (261,172) | (201,342) | 898,913 | ||||||||||||||
Effect of currency exchange rate change | (35) | 1,498 | (3,494) | ||||||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | (63,107) | 18,062 | 135,894 | ||||||||||||||
Balance of cash, cash equivalents and restricted cash at beginning of year | 206,726 | 188,664 | 52,770 | ||||||||||||||
Cash, cash equivalents and restricted cash at end of year | $ | 143,619 | $ | 206,726 | $ | 188,664 |
Common stock | Additional paid-in capital | Accumulated Other Comprehensive income (loss) | Retained earnings (accumulated deficit) | Treasury stock | Non-controlling interests(a) | Total equity | |||||||||||||||||||||||||||||||||||||||||||||||
In thousands | Shares | $ | Shares | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 30, 2018 | 60,508 | $ | 605 | $ | 721,605 | $ | (6,881) | $ | 3,767 | 202 | $ | (1,873) | $ | — | $ | 717,223 | |||||||||||||||||||||||||||||||||||||
Net loss attributable to Gannett | — | — | — | — | (119,842) | — | — | — | (119,842) | ||||||||||||||||||||||||||||||||||||||||||||
Restricted share grants | 301 | 3 | (3) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Restricted stock awards settled, net of withholdings | 1,982 | 20 | (462) | — | — | — | — | — | (442) | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net(b) | — | — | — | 15,083 | — | — | — | — | 15,083 | ||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | 11,324 | — | — | — | — | — | 11,324 | ||||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | 117 | — | — | — | 117 | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock to former stockholders | 62,390 | 624 | 423,232 | — | — | — | — | — | 423,856 | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock to the Former Manager | 4,206 | 42 | 26,369 | — | — | — | — | — | 26,411 | ||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | — | — | — | 68 | (1,002) | — | (1,002) | ||||||||||||||||||||||||||||||||||||||||||||
Restricted share forfeiture | — | — | 51 | — | — | 125 | (1) | — | 50 | ||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | (91,838) | — | — | — | — | — | (91,838) | ||||||||||||||||||||||||||||||||||||||||||||
Other activity | — | — | 416 | — | — | — | — | — | 416 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 129,387 | $ | 1,294 | $ | 1,090,694 | $ | 8,202 | $ | (115,958) | 395 | $ | (2,876) | $ | — | $ | 981,356 | |||||||||||||||||||||||||||||||||||||
Net loss attributable to Gannett | — | — | — | — | (670,479) | — | — | — | (670,479) | ||||||||||||||||||||||||||||||||||||||||||||
Restricted share grants | 5,846 | 58 | (60) | — | — | — | — | — | (2) | ||||||||||||||||||||||||||||||||||||||||||||
Restricted stock awards settled, net of withholdings | 3,585 | 36 | (11,037) | — | — | — | — | — | (11,001) | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net(b) | — | — | — | 41,971 | — | — | — | — | 41,971 | ||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | 26,350 | — | — | — | — | — | 26,350 | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock | 677 | 7 | 1,614 | — | — | — | — | — | 1,621 | ||||||||||||||||||||||||||||||||||||||||||||
Remeasurement of redeemable noncontrolling interests | — | — | (3,878) | — | — | — | — | — | (3,878) | ||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | — | — | — | 349 | (2,020) | — | (2,020) | ||||||||||||||||||||||||||||||||||||||||||||
Restricted share forfeiture | — | — | — | — | — | 648 | (7) | — | (7) | ||||||||||||||||||||||||||||||||||||||||||||
Other activity | — | — | 198 | — | — | — | — | — | 198 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 139,495 | $ | 1,395 | $ | 1,103,881 | $ | 50,173 | $ | (786,437) | 1,392 | $ | (4,903) | $ | — | $ | 364,109 | |||||||||||||||||||||||||||||||||||||
Net loss attributable to Gannett | — | — | — | — | (134,962) | — | — | (66) | (135,028) | ||||||||||||||||||||||||||||||||||||||||||||
Restricted share grants | 3,883 | 39 | (39) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Restricted stock awards settled, net of withholdings | 1,072 | 10 | (1,912) | — | — | — | — | (1,902) | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net(b) | — | — | — | 9,825 | — | — | — | — | 9,825 | ||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | 18,439 | — | — | — | — | — | 18,439 | ||||||||||||||||||||||||||||||||||||||||||||
Equity component - 2027 Notes | — | — | 279,557 | — | — | — | — | — | 279,557 | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock | 217 | 2 | 136 | — | — | — | — | — | 138 | ||||||||||||||||||||||||||||||||||||||||||||
Remeasurement of redeemable noncontrolling interests | — | — | 126 | — | — | — | — | — | 126 | ||||||||||||||||||||||||||||||||||||||||||||
Treasury stock | — | — | — | — | — | 597 | (3,244) | (3,244) | |||||||||||||||||||||||||||||||||||||||||||||
Restricted share forfeiture | — | — | — | — | — | 379 | (4) | — | (4) | ||||||||||||||||||||||||||||||||||||||||||||
Other activity | — | — | 18 | — | — | — | — | (2,419) | (2,401) | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 144,667 | $ | 1,446 | $ | 1,400,206 | $ | 59,998 | $ | (921,399) | 2,368 | $ | (8,151) | $ | (2,485) | $ | 529,615 |
December 31, | |||||||||||||||||
In thousands | 2021 | 2020 | 2019 | ||||||||||||||
Cash and cash equivalents | $ | 130,756 | $ | 170,725 | $ | 156,042 | |||||||||||
Restricted cash, included in prepaid expenses and other current assets | 4,606 | 11,356 | 10,800 | ||||||||||||||
Restricted cash, included in other assets | 8,257 | 24,645 | 21,822 | ||||||||||||||
Total cash, cash equivalents and restricted cash | $ | 143,619 | $ | 206,726 | $ | 188,664 |
Year ended December 31, | |||||||||||||||||
In thousands | 2021 | 2020 | 2019 | ||||||||||||||
Net cash (refund) paid for taxes | $ | (8,324) | $ | (3,964) | $ | 1,192 | |||||||||||
Cash paid for interest | 103,879 | 218,110 | 40,208 | ||||||||||||||
Non-cash investing and financing activities: | |||||||||||||||||
Accrued capital expenditures | 1,682 | 544 | 2,227 | ||||||||||||||
Common stock issued in exchange for Legacy Gannett shares | — | — | 391,809 |
December 31, | ||||||||||||||||||||
In thousands | 2021 | 2020 | Useful Lives (range) | |||||||||||||||||
Land | $ | 48,389 | $ | 74,549 | ||||||||||||||||
Buildings and improvements | 239,414 | 348,591 | 10 years | - | 30 years | |||||||||||||||
Machinery and equipment | 352,372 | 426,348 | 3 years | - | 20 years | |||||||||||||||
Furniture, fixtures and computer software(a) | 101,571 | 96,739 | 3 years | - | 10 years | |||||||||||||||
Construction in progress | 10,138 | 6,074 | ||||||||||||||||||
Total | 751,884 | 952,301 | ||||||||||||||||||
Less: accumulated depreciation | (336,500) | (362,029) | ||||||||||||||||||
Property, plant and equipment, net | $ | 415,384 | $ | 590,272 |
December 31, | |||||||||||
In thousands | 2021 | 2020 | |||||||||
Accounts payable | $ | 157,257 | $ | 131,797 | |||||||
Compensation | 107,585 | 115,061 | |||||||||
Taxes (primarily property and sales taxes) | 26,042 | 30,834 | |||||||||
Benefits | 21,056 | 22,821 | |||||||||
Interest | 7,577 | 3,676 | |||||||||
Other | 37,497 | 74,057 | |||||||||
Accounts payable and accrued liabilities | $ | 357,014 | $ | 378,246 |
Year ended December 31, | |||||||||||||||||
In thousands | 2021 | 2020 | 2019 | ||||||||||||||
Print advertising | $ | 792,286 | $ | 901,805 | $ | 689,595 | |||||||||||
Digital advertising and marketing services | 858,875 | 808,439 | 263,049 | ||||||||||||||
Total advertising and marketing services | 1,651,161 | 1,710,244 | 952,644 | ||||||||||||||
Circulation | 1,249,674 | 1,391,996 | 704,842 | ||||||||||||||
Other | 307,248 | 303,430 | 210,423 | ||||||||||||||
Total revenues | $ | 3,208,083 | $ | 3,405,670 | $ | 1,867,909 |
Year ended December 31, 2021 | Year ended December 31, 2020 | ||||||||||||||||||||||||||||||||||
In thousands | Advertising, marketing services and other | Circulation | Total | Advertising, marketing services and other | Circulation | Total | |||||||||||||||||||||||||||||
Beginning balance | $ | 51,686 | $ | 134,321 | $ | 186,007 | $ | 67,444 | $ | 151,379 | $ | 218,823 | |||||||||||||||||||||||
Cash receipts | 289,806 | 990,042 | 1,279,848 | 272,145 | 1,153,242 | 1,425,387 | |||||||||||||||||||||||||||||
Revenue recognized | (280,827) | (1,000,190) | (1,281,017) | (287,903) | (1,170,300) | (1,458,203) | |||||||||||||||||||||||||||||
Ending balance | $ | 60,665 | $ | 124,173 | $ | 184,838 | $ | 51,686 | $ | 134,321 | $ | 186,007 |
Year ended December 31, | |||||||||||||||||
In thousands | 2021 | 2020 | 2019 | ||||||||||||||
Operating lease cost (a) | $ | 80,213 | $ | 83,410 | $ | 30,573 | |||||||||||
Short-term lease cost (b) | 886 | 5,663 | 5,086 | ||||||||||||||
Variable lease cost | 11,464 | 12,808 | 8,412 | ||||||||||||||
Net lease cost | $ | 92,563 | $ | 101,881 | $ | 44,071 |
Year ended December 31, | |||||||||||||||||
In thousands, except lease term and discount rate | 2021 | 2020 | 2019 | ||||||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 81,380 | $ | 86,999 | $ | 35,837 | |||||||||||
Right-of-use assets obtained in exchange for operating lease obligations | 38,137 | 36,247 | 28,545 | ||||||||||||||
Loss on sale and leaseback transactions, net | 1,938 | 3,821 | — | ||||||||||||||
Weighted-average remaining lease term (in years) | 7.3 | 7.7 | 8.3 | ||||||||||||||
Weighted-average discount rate | 12.8 | % | 12.9 | % | 12.4 | % |
In thousands | Year ended December 31, | ||||
2022 | $ | 79,231 | |||
2023 | 69,531 | ||||
2024 | 61,219 | ||||
2025 | 51,969 | ||||
2026 | 43,824 | ||||
Thereafter | 173,513 | ||||
Total future minimum lease payments | 479,287 | ||||
Less: Imputed interest | 176,714 | ||||
Total | $ | 302,573 |
Year ended December 31, | |||||||||||
In thousands | 2021 | 2020 | |||||||||
Beginning balance | $ | 20,843 | $ | 19,923 | |||||||
Current period provision | 6,399 | 28,654 | |||||||||
Write-offs charged against the allowance | (14,897) | (29,532) | |||||||||
Recoveries of amounts previously written-off | 4,109 | 2,824 | |||||||||
Disposition | — | (1,011) | |||||||||
Foreign currency | 16 | (15) | |||||||||
Ending balance | $ | 16,470 | $ | 20,843 |
In thousands | Estimated fair value as previously reported (a) | Measurement period adjustments (b) | Final fair value as adjusted | ||||||||
Cash and restricted cash acquired | $ | 149,452 | $ | — | $ | 149,452 | |||||
Current assets | 383,965 | — | 383,965 | ||||||||
Other assets | 97,459 | — | 97,459 | ||||||||
Property, plant and equipment | 536,511 | — | 536,511 | ||||||||
Operating lease assets | 200,550 | — | 200,550 | ||||||||
Developed technology | 47,770 | (11,670) | 36,100 | ||||||||
Advertiser relationships | 272,740 | (16,580) | 256,160 | ||||||||
Subscriber relationships | 104,490 | 6,100 | 110,590 | ||||||||
Other customer relationships | 63,820 | 3,540 | 67,360 | ||||||||
Trade names | 16,470 | (630) | 15,840 | ||||||||
Mastheads | 97,340 | 8,420 | 105,760 | ||||||||
Goodwill | 644,766 | 13,018 | 657,784 | ||||||||
Total assets | 2,615,333 | 2,198 | 2,617,531 | ||||||||
Current liabilities | 513,752 | 95 | 513,847 | ||||||||
Long-term liabilities | 787,019 | 2,103 | 789,122 | ||||||||
Total liabilities | 1,300,771 | 2,198 | 1,302,969 | ||||||||
Net assets | $ | 1,314,562 | $ | — | $ | 1,314,562 |
In thousands | Estimated fair value as previously reported (a) | Measurement period adjustments (b) | Final fair value as adjusted | ||||||||
Cash and restricted cash acquired | $ | 323 | $ | — | $ | 323 | |||||
Current assets | 9,320 | (112) | 9,208 | ||||||||
Other assets | 950 | — | 950 | ||||||||
Property, plant and equipment | 20,492 | 730 | 21,222 | ||||||||
Non-compete agreements | 280 | — | 280 | ||||||||
Advertiser relationships | 2,357 | 279 | 2,636 | ||||||||
Subscriber relationships | 1,457 | — | 1,457 | ||||||||
Other customer relationships | 1,323 | 2,942 | 4,265 | ||||||||
Software | 140 | 2,130 | 2,270 | ||||||||
Trade names | 299 | 2,105 | 2,404 | ||||||||
Mastheads | 2,896 | — | 2,896 | ||||||||
Goodwill | 20,850 | (1,248) | 19,602 | ||||||||
Total assets | 60,687 | 6,826 | 67,513 | ||||||||
Current liabilities | 11,961 | — | 11,961 | ||||||||
Long-term liabilities | 463 | 50 | 513 | ||||||||
Total liabilities | 12,424 | 50 | 12,474 | ||||||||
Minority interest | 1,651 | — | 1,651 | ||||||||
Net assets | $ | 46,612 | $ | 6,776 | $ | 53,388 |
Unaudited; In thousands (except per share amounts) | |||||
Total revenues | $ | 4,177,583 | |||
Net loss | (292,395) | ||||
Loss per share - diluted | (2.27) |
December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||
In thousands | Gross carrying amount | Accumulated amortization | Net carrying amount | Gross carrying amount | Accumulated amortization | Net carrying amount | |||||||||||||||||||||||||||||
Finite-lived intangible assets: | |||||||||||||||||||||||||||||||||||
Advertiser relationships | $ | 453,038 | $ | 153,988 | $ | 299,050 | $ | 460,331 | $ | 112,468 | $ | 347,863 | |||||||||||||||||||||||
Other customer relationships | 102,486 | 35,237 | 67,249 | 102,925 | 23,682 | 79,243 | |||||||||||||||||||||||||||||
Subscriber relationships | 254,162 | 99,905 | 154,257 | 255,702 | 71,271 | 184,431 | |||||||||||||||||||||||||||||
Other intangible assets | 68,690 | 44,291 | 24,399 | 68,687 | 26,982 | 41,705 | |||||||||||||||||||||||||||||
Sub-total | $ | 878,376 | $ | 333,421 | $ | 544,955 | $ | 887,645 | $ | 234,403 | $ | 653,242 | |||||||||||||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||||||||||||||
Mastheads | 168,198 | 171,408 | |||||||||||||||||||||||||||||||||
Total intangible assets | $ | 713,153 | $ | 824,650 | |||||||||||||||||||||||||||||||
Goodwill | $ | 533,709 | $ | 534,088 |
In thousands | |||||
2022 | $ | 96,474 | |||
2023 | 91,294 | ||||
2024 | 89,962 | ||||
2025 | 81,501 | ||||
2026 | 64,615 | ||||
Thereafter | 121,109 | ||||
Total | $ | 544,955 |
In thousands | Publishing | Digital Marketing Solutions | Total | ||||||||||||||
Balance at December 31, 2019, net of accumulated impairment losses of $87,921: | $ | 716,334 | $ | 197,997 | $ | 914,331 | |||||||||||
Goodwill impairment | (321,851) | (40,499) | (362,350) | ||||||||||||||
Goodwill related to divestitures | (20,328) | (6,592) | (26,920) | ||||||||||||||
Measurement period adjustments | 45,205 | (33,435) | 11,770 | ||||||||||||||
Foreign currency exchange rate changes | (2,743) | — | (2,743) | ||||||||||||||
Balance at December 31, 2020, net of accumulated impairment losses of $455,844: | $ | 416,617 | $ | 117,471 | $ | 534,088 | |||||||||||
Goodwill acquired in business combinations | 95 | — | 95 | ||||||||||||||
Goodwill related to divestitures | (341) | — | (341) | ||||||||||||||
Foreign currency exchange rate changes | (133) | — | (133) | ||||||||||||||
Balance at December 31, 2021, net of accumulated impairment losses of $455,385: | $ | 416,238 | $ | 117,471 | $ | 533,709 |
Year ended December 31, | |||||||||||||||||
In thousands | 2021 | 2020 | 2019 | ||||||||||||||
Publishing | $ | 14,529 | $ | 55,655 | $ | 19,556 | |||||||||||
Digital Marketing Solutions | 321 | 6,320 | 1,916 | ||||||||||||||
Corporate and other | 1,621 | 24,322 | 19,080 | ||||||||||||||
Total | $ | 16,471 | $ | 86,297 | $ | 40,552 |
In thousands | Severance and Related Costs | ||||
Balance at December 31, 2019 | $ | 30,785 | |||
Restructuring provision included in integration and reorganization costs | 86,297 | ||||
Cash payments | (86,139) | ||||
Balance at December 31, 2020 | 30,943 | ||||
Restructuring provision included in integration and reorganization costs | 16,471 | ||||
Cash payments | (34,856) | ||||
Balance at December 31, 2021 | $ | 12,558 |
Year ended December 31, | |||||||||||||||||
In thousands | 2021 | 2020 | 2019 | ||||||||||||||
Publishing | $ | 1,431 | $ | 5,197 | $ | 3,931 | |||||||||||
Digital Marketing Solutions | 1,389 | 343 | 286 | ||||||||||||||
Corporate and other (a) | 29,993 | 53,894 | 7,443 | ||||||||||||||
Total | $ | 32,813 | $ | 59,434 | $ | 11,660 |
Year ended December 31, | |||||||||||||||||
In thousands | 2021 | 2020 | 2019 | ||||||||||||||
Publishing | $ | 3,976 | $ | 10,312 | $ | 3,009 | |||||||||||
Digital Marketing Solutions | — | 717 | — | ||||||||||||||
Total | $ | 3,976 | $ | 11,029 | $ | 3,009 |
December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||
(in millions) | Principal balance | Unamortized original issue discount | Unamortized deferred financing costs | Carrying value | Principal balance | Unamortized original issue discount | Unamortized deferred financing costs | Carrying value | ||||||||||||||||||
New Senior Secured Term Loan | $ | 480.1 | $ | (14.1) | $ | (2.7) | $ | 463.3 | n/a | n/a | n/a | n/a | ||||||||||||||
Acquisition Term Loan | n/a | n/a | n/a | n/a | 1,075.2 | (54.0) | (2.4) | 1,018.8 | ||||||||||||||||||
2026 Senior Notes | 400.0 | (13.7) | (10.7) | 375.6 | n/a | n/a | n/a | n/a | ||||||||||||||||||
2027 Notes (a) | 485.3 | (93.2) | (2.0) | 390.1 | 497.1 | (106.3) | (2.3) | 578.1 | ||||||||||||||||||
2024 Notes | 3.3 | — | — | 3.3 | 3.3 | — | — | 3.3 | ||||||||||||||||||
Total debt | $ | 1,368.7 | $ | (121.0) | $ | (15.4) | $ | 1,232.3 | $ | 1,575.6 | $ | (160.3) | $ | (4.7) | $ | 1,600.2 | ||||||||||
Less: Current portion of long-term debt | $ | (69.5) | $ | — | $ | — | $ | (69.5) | $ | (128.4) | $ | — | $ | — | $ | (128.4) | ||||||||||
Non-current portion of long-term debt | $ | 1,299.2 | $ | (121.0) | $ | (15.4) | $ | 1,162.8 | $ | 1,447.2 | $ | (160.3) | $ | (4.7) | $ | 1,471.8 |
February 26, 2021 | December 31, 2020 | |||||||
Annual volatility | 70.0 | % | 70.0 | % | ||||
Discount rate | 12.2 | % | 9.3 | % | ||||
Stock price | $ | 4.95 | $ | 3.36 |
In thousands | Principal payments | ||||
2022 | $ | 69,500 | |||
2023 | 51,600 | ||||
2024 | 54,900 | ||||
2025 | 51,600 | ||||
2026 | 655,805 | ||||
Thereafter | 485,286 | ||||
Total debt obligations | $ | 1,368,691 |
Pension benefits | Postretirement benefits | ||||||||||||||||||||||
In thousands | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Projected benefit obligation at beginning of period | $ | 3,161,146 | $ | 2,973,182 | $ | 75,586 | $ | 73,667 | |||||||||||||||
Service cost | 2,064 | 2,618 | 89 | 105 | |||||||||||||||||||
Interest cost | 68,139 | 82,581 | 1,758 | 2,315 | |||||||||||||||||||
Change in prior service cost | — | 1,905 | — | — | |||||||||||||||||||
Actuarial (gain) loss | (41,239) | 257,110 | (7,936) | 6,648 | |||||||||||||||||||
Foreign currency translation | (7,182) | 38,003 | — | — | |||||||||||||||||||
Benefits and expenses paid | (179,604) | (187,014) | (5,459) | (7,149) | |||||||||||||||||||
Settlements | — | (6,336) | — | — | |||||||||||||||||||
Administrative expenses | — | (903) | — | — | |||||||||||||||||||
Projected benefit obligation at end of period | $ | 3,003,324 | $ | 3,161,146 | $ | 64,038 | $ | 75,586 |
Pension benefits | Postretirement benefits | ||||||||||||||||||||||
In thousands | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Fair value of plan assets at beginning of period | $ | 3,225,372 | $ | 2,856,296 | $ | — | $ | — | |||||||||||||||
Actual return on plan assets | 130,026 | 481,311 | — | — | |||||||||||||||||||
Employer contributions | 52,161 | 41,018 | 5,459 | 7,078 | |||||||||||||||||||
Settlements | — | (6,322) | — | — | |||||||||||||||||||
Benefits paid | (179,604) | (187,014) | (5,459) | (7,078) | |||||||||||||||||||
Administrative expenses | — | (903) | — | — | |||||||||||||||||||
Foreign currency translation | (9,002) | 40,986 | — | — | |||||||||||||||||||
Fair value of plan assets at end of period | $ | 3,218,953 | $ | 3,225,372 | $ | — | $ | — | |||||||||||||||
Funded status at end of period | 215,629 | 64,226 | (64,038) | (75,586) | |||||||||||||||||||
Unrecognized actuarial (gain) loss | (75,280) | (69,640) | (2,652) | 5,195 | |||||||||||||||||||
Unrecognized prior service cost | 1,894 | 1,905 | — | — | |||||||||||||||||||
Net prepaid (accrued) benefit cost | 142,243 | (3,509) | (66,690) | (70,391) |
Pension benefits | Postretirement benefits | ||||||||||||||||||||||
In thousands | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Other assets | $ | 229,585 | $ | 95,180 | $ | — | $ | — | |||||||||||||||
Accounts payable and accrued liabilities | 332 | 332 | 5,725 | 6,443 | |||||||||||||||||||
Pension and other postretirement benefit obligations | 13,624 | 30,622 | 58,313 | 69,143 | |||||||||||||||||||
Accumulated other comprehensive (loss) income | 73,386 | 67,735 | 2,652 | (5,195) | |||||||||||||||||||
Net prepaid (accrued) benefit cost | $ | 142,243 | $ | (3,509) | $ | (66,690) | $ | (70,391) |
Funded plans | Underfunded plans | ||||||||||||||||||||||
In thousands | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Projected benefit obligation | $ | 2,927,968 | $ | 2,957,432 | $ | 75,356 | $ | 203,714 | |||||||||||||||
Accumulated benefit obligation | 2,925,870 | 2,956,973 | 75,356 | 201,755 | |||||||||||||||||||
Fair value of plan assets | 3,157,553 | 3,052,612 | 61,400 | 172,760 |
Pension benefits | Postretirement benefits | ||||||||||||||||||||||||||||||||||
In thousands | 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Service cost - benefits earned during the period | $ | 2,064 | $ | 2,618 | $ | 999 | $ | 89 | $ | 105 | $ | 17 | |||||||||||||||||||||||
Non-operating expenses: | |||||||||||||||||||||||||||||||||||
Interest cost on benefit obligations | 68,139 | 82,581 | 12,408 | 1,758 | 2,315 | 419 | |||||||||||||||||||||||||||||
Expected return on plan assets | (165,390) | (157,082) | (22,303) | — | — | — | |||||||||||||||||||||||||||||
Amortization of actuarial loss (gain) | 152 | 102 | 158 | (88) | (65) | (72) | |||||||||||||||||||||||||||||
Other adjustment | 72 | — | 305 | — | — | — | |||||||||||||||||||||||||||||
Total non-operating (benefit) expense | (97,027) | (74,399) | (9,432) | 1,670 | 2,250 | 347 | |||||||||||||||||||||||||||||
Total (benefit) expense for retirement plans | $ | (94,963) | $ | (71,781) | $ | (8,433) | $ | 1,759 | $ | 2,355 | $ | 364 | |||||||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in Other comprehensive income: | |||||||||||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | (5,875) | $ | (67,119) | $ | (12,050) | $ | (7,936) | $ | 6,648 | $ | (484) | |||||||||||||||||||||||
Amortization of net actuarial gain (loss) | (152) | (102) | (158) | 88 | 65 | 72 | |||||||||||||||||||||||||||||
Change in prior service cost | — | 1,905 | — | — | — | — | |||||||||||||||||||||||||||||
Other adjustment | 387 | 2,108 | (305) | — | — | — | |||||||||||||||||||||||||||||
(Gain) loss recognized in Other comprehensive income | $ | (5,640) | $ | (63,208) | $ | (12,513) | $ | (7,848) | $ | 6,713 | $ | (412) |
Pension benefits | Postretirement benefits | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Weighted average discount rate | 2.6 | % | 2.2 | % | 3.0 | % | 2.6 | % | |||||||||||||||
Rate of increase in future compensation levels (a) | 2.0 | % | 2.0 | % | N/A | N/A | |||||||||||||||||
Current year medical trend | N/A | N/A | 6.0 | % | 5.5 | % | |||||||||||||||||
Ultimate year medical trend | N/A | N/A | 4.5 | % | 4.5 | % | |||||||||||||||||
Year of ultimate trend | N/A | N/A | 2028 | 2025 |
Target allocation | Allocation of plan assets | ||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Equity securities | 20% | 21% | 36% | ||||||||||||||
Debt securities | 65% | 65% | 50% | ||||||||||||||
Alternative investments(a) | 15% | 14% | 14% | ||||||||||||||
Total | 100% | 100% | 100% |
In thousands | Pension benefits | Postretirement benefits | |||||||||
2022 | $ | 195,014 | $ | 5,809 | |||||||
2023 | 190,610 | 5,538 | |||||||||
2024 | 188,805 | 5,286 | |||||||||
2025 | 187,365 | 5,016 | |||||||||
2026 | 183,336 | 4,736 | |||||||||
Thereafter | 806,672 | 20,016 |
EIN/Plan number | Zone status Year Ended | FIP/RP status pending/implemented | Contributions (In thousands) | Surcharge imposed | Expiration dates of CBAs | ||||||||||||||||||||||||
Pension Plan Name | December 31, 2021 | December 31, 2020 | 2021 | 2020 | 2019 | ||||||||||||||||||||||||
CWA/ITU Negotiated Pension Plan | 13-6212879/001 | Red | Red | Implemented | $ | 369 | $ | 393 | $ | 51 | No | 1/24/2021 | |||||||||||||||||
GCIU—Employer Retirement Benefit Plan(a) | 91-6024903/001 | Red | Red | Implemented | 63 | 89 | 75 | No | 1/5/2022 | ||||||||||||||||||||
The Newspaper Guild International Pension Plan(a) | 52-1082662/001 | Red | Red | Implemented | 12 | 92 | 31 | No | 10/6/2021 | ||||||||||||||||||||
IAM National Pension Plan(a) (b) | 51-6031295/002 | Red | Red | Implemented | 188 | 173 | 11 | No | January 8, 2022 and December 28, 2023 | ||||||||||||||||||||
Teamsters Pension Trust Fund of Philadelphia and Vicinity(a) | 23-1511735/001 | Yellow | Yellow | Implemented | 1,098 | 1,218 | 139 | N/A | (c) | ||||||||||||||||||||
Central Pension Fund of the International Union of Operating Engineers and Participating Employers(a) | 36-6052390/001 | Green as of Jan. 31, 2021 | Green as of Jan. 31, 2020 | N/A | 59 | 59 | 6 | N/A | 1/9/2022 | ||||||||||||||||||||
Total | $ | 1,789 | $ | 2,024 | $ | 313 |
Actual return on plan assets | |||||||||||||||||||||||||||||||||||||||||
In thousands | Balance at beginning of year | Relating to assets still held at report date | Relating to assets sold during the period | Purchases | Sales | Settlements | Balance at end of year | ||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||
Real estate | $ | 125,929 | $ | 17,874 | $ | — | $ | 9,082 | $ | (2,296) | $ | — | $ | 150,589 | |||||||||||||||||||||||||||
Partnership/joint venture interests | 174,789 | 7,607 | — | 35,964 | (26,339) | (5,204) | 186,817 | ||||||||||||||||||||||||||||||||||
Hedge funds | 113,850 | 6,978 | — | — | — | (20,000) | 100,828 | ||||||||||||||||||||||||||||||||||
Other assets | 2 | — | — | — | — | — | 2 | ||||||||||||||||||||||||||||||||||
Total assets | $ | 414,570 | $ | 32,459 | $ | — | $ | 45,046 | $ | (28,635) | $ | (25,204) | $ | 438,236 | |||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||
Other liabilities | $ | 2,008 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 2,008 |
Actual return on plan assets | |||||||||||||||||||||||||||||||||||||||||
In thousands | Balance at beginning of year | Relating to assets still held at report date | Relating to assets sold during the period | Purchases | Sales | Settlements | Balance at end of year | ||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||
Real estate | $ | 99,223 | $ | 2,556 | $ | — | $ | 24,150 | $ | — | $ | — | $ | 125,929 | |||||||||||||||||||||||||||
Partnership/joint venture interests | 149,018 | 2,845 | — | 54,543 | (31,617) | — | 174,789 | ||||||||||||||||||||||||||||||||||
Hedge funds | 123,126 | 5,724 | — | — | — | (15,000) | 113,850 | ||||||||||||||||||||||||||||||||||
Derivative contracts | 5 | (3) | — | — | — | — | 2 | ||||||||||||||||||||||||||||||||||
Total assets | $ | 371,372 | $ | 11,122 | $ | — | $ | 78,693 | $ | (31,617) | $ | (15,000) | $ | 414,570 | |||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||
Derivative liabilities | $ | 2,008 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 2,008 |
Year ended December 31, | |||||||||||||||||
In thousands | 2021 | 2020 | 2019 | ||||||||||||||
Domestic | $ | (152,796) | $ | (646,795) | $ | (206,270) | |||||||||||
Foreign | 64,875 | (59,052) | (914) | ||||||||||||||
Total | $ | (87,921) | $ | (705,847) | $ | (207,184) |
Year ended December 31, | |||||||||||||||||
In thousands | 2021 | 2020 | 2019 | ||||||||||||||
Current: | |||||||||||||||||
Federal | $ | 579 | $ | (6,896) | $ | 113 | |||||||||||
State and local | 1,180 | 1,877 | 1,725 | ||||||||||||||
Foreign | 1,521 | 1,744 | (68) | ||||||||||||||
Total current | 3,280 | (3,275) | 1,770 | ||||||||||||||
Deferred: | |||||||||||||||||
Federal | 27,842 | (20,832) | (85,144) | ||||||||||||||
State and local | 1,663 | (12,064) | (2,833) | ||||||||||||||
Foreign | 15,465 | 2,721 | 213 | ||||||||||||||
Total deferred | 44,970 | (30,175) | (87,764) | ||||||||||||||
Provision (benefit) for income taxes | $ | 48,250 | $ | (33,450) | $ | (85,994) |
Year ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Federal statutory tax rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||||||||
(Increase) decrease in taxes resulting from: | |||||||||||||||||
State and local income taxes, net of federal benefit | (3.0) | 1.4 | 0.7 | ||||||||||||||
Debt refinancing | (30.2) | (2.5) | — | ||||||||||||||
Change in valuation allowance | (40.6) | (9.2) | 22.6 | ||||||||||||||
Non-deductible meals, entertainment, and other expenses | (2.3) | (0.3) | (0.8) | ||||||||||||||
Capital loss carryforward | (1.6) | — | — | ||||||||||||||
PPP Loan forgiveness | 3.8 | — | — | ||||||||||||||
Global intangible low-taxed income | (5.8) | — | — | ||||||||||||||
Branch income | 1.6 | 0.1 | — | ||||||||||||||
Profit on non-qualifying land and buildings | 2.4 | (0.1) | — | ||||||||||||||
Uncertain tax positions | (8.6) | (1.0) | (0.4) | ||||||||||||||
Deduction for interest expense | 8.4 | 0.9 | 0.4 | ||||||||||||||
Transaction costs | — | (0.1) | (2.0) | ||||||||||||||
Goodwill Impairment | — | (5.5) | — | ||||||||||||||
Effective tax rate | NM | 4.7 | % | 41.5 | % |
December 31, | |||||||||||
In thousands | 2021 | 2020 | |||||||||
Deferred tax liabilities: | |||||||||||
Fixed Assets | $ | (16,350) | $ | (31,439) | |||||||
Right of use asset | (80,033) | (82,275) | |||||||||
Convertible debt | (27,567) | (27,674) | |||||||||
Pension and other postretirement benefit obligations | (24,900) | — | |||||||||
Definite and indefinite lived intangible assets | (50,738) | (62,666) | |||||||||
Total deferred tax liabilities | $ | (199,588) | $ | (204,054) | |||||||
Deferred tax assets: | |||||||||||
Accrued compensation costs | 12,796 | 33,325 | |||||||||
Accrued liabilities | 15,760 | 18,341 | |||||||||
Disallowed interest | 83,370 | 56,527 | |||||||||
Goodwill | 12,624 | 27,182 | |||||||||
Pension and other postretirement benefit obligations | — | 21,525 | |||||||||
Partnership investments including impairments | 301 | 3,837 | |||||||||
Loss carryforwards | 255,874 | 233,049 | |||||||||
Lease liabilities | 72,728 | 82,369 | |||||||||
Derivative liability | — | 32,534 | |||||||||
Other | 24,065 | 29,286 | |||||||||
Total deferred tax assets | $ | 477,518 | $ | 537,975 | |||||||
Less: Valuation allowance | (274,343) | (250,536) | |||||||||
Total net deferred tax assets | $ | 203,175 | $ | 287,439 | |||||||
Noncurrent net deferred tax assets (liabilities) | $ | 3,587 | $ | 83,385 |
Balance at beginning of period | Additions/(reductions) charged to expenses | Additions/(reductions) for acquisitions/dispositions | Other additions to (deductions from) reserves | Foreign currency translation | Balance at end of period | |||||||||||||||||||||||||||
$ | 250,536 | $ | 23,438 | $ | — | $ | — | $ | 369 | $ | 274,343 |
Year ended December 31, | |||||||||||||||||
In thousands | 2021 | 2020 | 2019 | ||||||||||||||
Change in unrecognized tax benefits: | |||||||||||||||||
Balance at beginning of year | $ | 40,885 | $ | 34,074 | $ | 1,190 | |||||||||||
Additions based on tax positions related to the current year | 6,574 | 6,617 | 658 | ||||||||||||||
Additions for tax positions of prior years | 607 | 1,611 | — | ||||||||||||||
Reductions for tax positions of prior years | (1,984) | (1,417) | (352) | ||||||||||||||
Increase due to current year business acquisitions | — | — | 32,578 | ||||||||||||||
Balance at end of year | $ | 46,082 | $ | 40,885 | $ | 34,074 |
Year ended December 31, | |||||||||||||||||
In thousands, except per share data | 2021 | 2020 | 2019 | ||||||||||||||
Net loss attributable to Gannett | $ | (134,962) | $ | (670,479) | $ | (119,842) | |||||||||||
Basic weighted average shares outstanding | 134,783 | 131,742 | 67,671 | ||||||||||||||
Diluted weighted average shares outstanding | 134,783 | 131,742 | 67,671 | ||||||||||||||
Year ended December 31, | |||||||||||||||||
In thousands | 2021 | 2020 | 2019 | ||||||||||||||
Warrants | 845 | 845 | 1,362 | ||||||||||||||
Stock options | 6,068 | 6,068 | 2,905 | ||||||||||||||
Restricted stock grants (a) | 9,854 | 7,694 | 9,494 | ||||||||||||||
2027 Notes (b) | 98,168 | 27,482 | — |
Year ended December 31, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Number of RSAs (In thousands) | Weighted- average grant date fair value | Number of RSAs (In thousands) | Weighted- average grant date fair value | Number of RSAs (In thousands) | Weighted- average grant date fair value | ||||||||||||||||||||||||||||||
Unvested at beginning of year | 5,181 | $ | 3.39 | 317 | $ | 14.61 | 384 | $ | 16.11 | ||||||||||||||||||||||||||
Granted | 4,100 | 5.29 | 6,781 | 3.35 | 301 | 13.62 | |||||||||||||||||||||||||||||
Vested | (1,956) | 3.80 | (1,280) | 5.72 | (274) | 15.45 | |||||||||||||||||||||||||||||
Forfeited | (376) | 4.76 | (637) | 3.90 | (94) | 15.12 | |||||||||||||||||||||||||||||
Unvested at end of year | 6,949 | $ | 4.32 | 5,181 | $ | 3.39 | 317 | $ | 14.61 |
Year ended December 31, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Number of RSUs & PSUs (In thousands) | Weighted- average grant date fair value | Number of RSUs & PSUs (In thousands) | Weighted- average grant date fair value | Number of RSUs & PSUs (In thousands) | Weighted- average grant date fair value | ||||||||||||||||||||||||||||||
Unvested at beginning of year | 2,513 | $ | 6.28 | 7,368 | $ | 6.28 | — | $ | — | ||||||||||||||||||||||||||
Granted | 2,000 | 3.04 | 282 | 0.90 | 10,466 | 6.28 | |||||||||||||||||||||||||||||
Vested | (1,576) | 6.28 | (4,713) | 6.27 | (3,081) | 6.28 | |||||||||||||||||||||||||||||
Forfeited | (32) | 6.28 | (424) | 2.81 | (17) | 6.28 | |||||||||||||||||||||||||||||
Unvested at end of year | 2,905 | $ | 4.05 | 2,513 | $ | 6.28 | 7,368 | $ | 6.28 |
In thousands | Pension and postretirement benefit plans | Foreign currency translation | Total | ||||||||||||||
Balance at December 30, 2018 | $ | (6,881) | $ | — | $ | (6,881) | |||||||||||
Other comprehensive income before reclassifications | 7,731 | 7,266 | 14,997 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (a) (b) | 86 | — | 86 | ||||||||||||||
Net current period other comprehensive income, net of taxes | 7,817 | 7,266 | 15,083 | ||||||||||||||
Balance at December 31, 2019 | $ | 936 | $ | 7,266 | $ | 8,202 | |||||||||||
Other comprehensive income before reclassifications | 39,479 | 2,466 | 41,945 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (a) (b) | 26 | — | 26 | ||||||||||||||
Net current period other comprehensive income, net of taxes | 39,505 | 2,466 | 41,971 | ||||||||||||||
Balance at December 31, 2020 | $ | 40,441 | $ | 9,732 | $ | 50,173 | |||||||||||
Other comprehensive income (loss) before reclassifications | 10,382 | (604) | 9,778 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (a) (b) | 47 | — | 47 | ||||||||||||||
Net current period other comprehensive income (loss), net of taxes | 10,429 | (604) | 9,825 | ||||||||||||||
Balance at December 31, 2021 | $ | 50,870 | $ | 9,128 | $ | 59,998 |
In thousands | Publishing | Digital Marketing Solutions | Corporate and Other | Intersegment Eliminations | Consolidated | ||||||||||||||||||||||||
Year ended December 31, 2021 | |||||||||||||||||||||||||||||
Advertising and marketing services - external sales | $ | 1,207,881 | $ | 441,394 | $ | 1,886 | $ | — | $ | 1,651,161 | |||||||||||||||||||
Advertising and marketing services - intersegment sales | 129,322 | — | — | (129,322) | — | ||||||||||||||||||||||||
Circulation | 1,249,669 | — | 5 | — | 1,249,674 | ||||||||||||||||||||||||
Other | 299,863 | 905 | 6,480 | — | 307,248 | ||||||||||||||||||||||||
Total operating revenues | $ | 2,886,735 | $ | 442,299 | $ | 8,371 | $ | (129,322) | $ | 3,208,083 | |||||||||||||||||||
Adjusted EBITDA (non-GAAP basis) | $ | 433,973 | $ | 50,960 | $ | (51,221) | $ | — | $ | 433,712 | |||||||||||||||||||
Adjusted EBITDA margin (non-GAAP basis) | 15.0 | % | 11.5 | % | NM | NM | 13.5 | % | |||||||||||||||||||||
Year ended December 31, 2020 | |||||||||||||||||||||||||||||
Advertising and marketing services - external sales | $ | 1,295,158 | $ | 411,940 | $ | 3,146 | $ | — | $ | 1,710,244 | |||||||||||||||||||
Advertising and marketing services - intersegment sales | 114,342 | — | — | (114,342) | — | ||||||||||||||||||||||||
Circulation | 1,391,983 | — | 13 | — | 1,391,996 | ||||||||||||||||||||||||
Other | 278,964 | 16,665 | 7,801 | — | 303,430 | ||||||||||||||||||||||||
Total operating revenues | $ | 3,080,447 | $ | 428,605 | $ | 10,960 | $ | (114,342) | $ | 3,405,670 | |||||||||||||||||||
Adjusted EBITDA (non-GAAP basis) | $ | 459,195 | $ | 24,361 | $ | (69,661) | $ | — | $ | 413,895 | |||||||||||||||||||
Adjusted EBITDA margin (non-GAAP basis) | 14.9 | % | 5.7 | % | NM | NM | 12.2 | % | |||||||||||||||||||||
Year ended December 31, 2019 | |||||||||||||||||||||||||||||
Advertising and marketing services - external sales | $ | 819,046 | $ | 131,003 | $ | 2,595 | $ | — | $ | 952,644 | |||||||||||||||||||
Advertising and marketing services - intersegment sales | 78,539 | — | — | (78,539) | — | ||||||||||||||||||||||||
Circulation | 704,811 | — | 31 | — | 704,842 | ||||||||||||||||||||||||
Other | 190,256 | 18,239 | 1,928 | — | 210,423 | ||||||||||||||||||||||||
Total operating revenues | $ | 1,792,652 | $ | 149,242 | $ | 4,554 | $ | (78,539) | $ | 1,867,909 | |||||||||||||||||||
Adjusted EBITDA (non-GAAP basis) | $ | 268,916 | $ | (3,279) | $ | (41,766) | $ | — | $ | 223,871 | |||||||||||||||||||
Adjusted EBITDA margin (non-GAAP basis) | 15.0 | % | NM | NM | NM | 12.0 | % |
Year ended December 31, | |||||||||||||||||
In thousands | 2021 | 2020 | 2019 | ||||||||||||||
Net loss attributable to Gannett | (134,962) | (670,479) | (119,842) | ||||||||||||||
Provision (benefit) for income taxes | 48,250 | (33,450) | (85,994) | ||||||||||||||
Interest expense | 135,748 | 228,513 | 63,660 | ||||||||||||||
Loss on early extinguishment of debt | 48,708 | 43,760 | 6,058 | ||||||||||||||
Non-operating pension income | (95,357) | (72,149) | (9,085) | ||||||||||||||
Loss on convertible notes derivative | 126,600 | 74,329 | — | ||||||||||||||
Depreciation and amortization | 203,958 | 263,819 | 111,882 | ||||||||||||||
Integration and reorganization costs | 49,284 | 145,731 | 52,212 | ||||||||||||||
Other operating expenses | 20,952 | 11,152 | 60,618 | ||||||||||||||
Asset impairments | 3,976 | 11,029 | 3,009 | ||||||||||||||
Goodwill and intangible impairments | — | 393,446 | 100,743 | ||||||||||||||
Loss (gain) on sale or disposal of assets, net | 17,208 | (5,680) | 4,723 | ||||||||||||||
Share-based compensation expense | 18,439 | 26,350 | 11,324 | ||||||||||||||
Other items | (9,092) | (2,476) | 24,563 | ||||||||||||||
Adjusted EBITDA (non-GAAP basis) | $ | 433,712 | $ | 413,895 | $ | 223,871 | |||||||||||
Net loss attributable to Gannett margin | (4.2) | % | (19.7) | % | (6.4) | % | |||||||||||
Adjusted EBITDA margin (non-GAAP basis) | 13.5 | % | 12.2 | % | 12.0 | % |
Exhibit Number | Exhibit | Location | ||||||||||||
2.1 | Agreement and Plan of Merger, dated as of August 5, 2019, by and among New Media Investment Group Inc., Gannett Co., Inc., Arctic Holdings LLC and Arctic Acquisition Corp. | |||||||||||||
2.2 | Amendment No. 1 to Agreement and Plan of Merger, dated as of October 29, 2019, by and among New Media Investment Group Inc., Gannett Co., Inc., Arctic Holdings LLC and Arctic Acquisition Corp. | |||||||||||||
3.1 | Amended and Restated Certificate of Incorporation of the Company. | |||||||||||||
3.2 | Certificate of Amendment to the Amended and Restated Certificate of Incorporation of the Company. | |||||||||||||
3.3 | Certificate of Designation of Series A Junior Participating Preferred Stock of Gannett Co., Inc. | |||||||||||||
3.4 | Amended and Restated Bylaws of the Company. | |||||||||||||
4.1 | Indenture (including Form of Note) with respect to 4.750% Convertible Senior Notes due 2024, dated as of April 9, 2018, between Gannett Co., Inc. and U.S. Bank National Association, as trustee. | |||||||||||||
4.2 | First Supplemental Indenture, dated as of November 19, 2019, by and among Gannett Co., Inc., New Media Investment Group Inc., and U.S. Bank National Association. | |||||||||||||
4.3 | Indenture with respect to 6.000% Convertible Senior Secured Notes due 2027, dated as of November 17, 2020, by and between Gannett Co., Inc., the Subsidiary Guarantors from time to time party thereto and U.S. Bank National Association, as a Trustee. | |||||||||||||
4.4 | First Supplemental Indenture, dated as of December 21, 2020, by and between Gannett Co., Inc., the Subsidiary Guarantors from time to time party thereto and U.S. Bank National Association, as trustee. | |||||||||||||
4.5 | Second Supplemental Indenture, dated as of February 9, 2021, by and between Gannett Co., Inc., the Subsidiary Guarantors from time to time party thereto and U.S. Bank National Associations, as trustee. | |||||||||||||
4.6 | Fourth Supplemental Indenture, dated as of January 31, 2022, by and among Gannett Co., Inc., the Subsidiary Guarantors from time to time party thereto and U.S. Bank National Association, as trustee. |
4.7 | Indenture with respect to 6.000% First Lien Notes due 2026, dated as of October 15, 2021, by and among Gannett Co., Inc., Gannett Holdings LLC, the Guarantors from time to time party thereto, U.S. Bank National Association, as trustee, and U.S. Bank National Association, as collateral agent, registrar, paying agent and authenticating agent. | |||||||||||||
4.8 | Global Warrant Certificate of New Media Investment Group Inc. (amended). | Included in Exhibit 10.38 hereto. | ||||||||||||
4.9 | Description of Securities Registered under Section 12 of the Securities Exchange Act of 1934, as amended. | |||||||||||||
4.10 | Section 382 Rights Agreement, dated as of April 6, 2020, by and between Gannett Co., Inc. and American Stock Transfer & Trust Company LLC, as Rights Agent. | |||||||||||||
10.1 | Credit Agreement, dated as of November 19, 2019, by and among Gannett Co., Inc., Gannett Holdings LLC, each person listed as a guarantor on the signature pages thereto, the lenders from time to time party thereto and Cortland Capital Market Services LLC, as collateral agent and administrative agent. | |||||||||||||
10.2 | Amendment No. 1, dated as of December 9, 2019, to the Credit Agreement, by and among Gannett Co., Inc., Gannett Holdings LLC, each person listed as a guarantor on the signature pages thereto, the lenders from time to time party thereto and Cortland Capital Market Services LLC, as collateral agent and administrative agent. | |||||||||||||
10.3 | Amendment No. 2, dated as of April 6, 2020, to the Credit Agreement, by and among Gannett Co., Inc., Gannett Holdings LLC, each person listed as a guarantor on the signature pages thereto, the lenders from time to time party thereto and Cortland Capital Market Services LLC, as collateral agent and administrative agent. | |||||||||||||
10.4 | Amendment No. 3, dated as of October 30, 2020, to the Credit Agreement, by and among Gannett Co., Inc., Gannett Holdings LLC, each Guarantor party thereto, the lenders from time to time party thereto and Alter Domus Products Corp., as collateral and administrative agent. | |||||||||||||
10.5 | Amendment No. 4, dated as of November 17, 2020, to the Credit Agreement, by and among Gannett Co., Inc., Gannett Holdings LLC, each Guarantor party thereto, the Lenders from time to time party thereto and Alter Domus Products Corp., as collateral and administrative agent. | |||||||||||||
10.6 | Amendment No. 5, dated as of December 21, 2020, to the Credit Agreement, by and among Gannett Co., Inc., Gannett Holdings LLC, each Guarantor party thereto, the lenders party thereto and Alter Domus Products Corp., as administrative agent and collateral agent. | |||||||||||||
10.7 | Form of Registration Rights Agreement between New Media Investment Group Inc. and Omega Advisors, Inc. and its affiliates | |||||||||||||
10.8 | Registration Rights Agreement, dated as of November 19, 2019, by and among Gannett Co., Inc., FIG LLC and such other persons from time to time party thereto. |
10.9 | Amendment No. 1 to Registration Rights Agreement, dated as of November 17, 2020, by and among Gannett Co., Inc. and FIG LLC. | |||||||||||||
10.10 | Amended and Restated Management and Advisory Agreement, dated August 5, 2019, between New Media Investment Group Inc. and FIG LLC. | |||||||||||||
10.11 | Termination Agreement, dated as of December 21, 2020, by and between Gannett Co., Inc. and FIG LLC. | |||||||||||||
10.12 | 2020 Omnibus Incentive Compensation Plan, adopted as of February 26, 2020.* | |||||||||||||
10.13 | Amendment No. 1 to 2020 Omnibus Incentive Compensation Plan.* | |||||||||||||
10.14 | Form of Nonqualified Stock Option Agreement between New Media Investment Group Inc. and Fortress Operating Entity I LP.* | |||||||||||||
10.15 | Form of Nonqualified Stock Option Agreement between New Media Investment Group Inc. and Fortress Operating Entity I LP. | Included in Exhibit 10.10 hereto. | ||||||||||||
10.16 | Form of Gannett Co., Inc. Director Restricted Stock Award Agreement (2020 Omnibus Incentive Compensation Plan, as amended).* | |||||||||||||
10.17 | Gannett Co., Inc. Form of Employee Restricted Stock Grant Agreement.* | |||||||||||||
10.18 | 2015 Omnibus Incentive Compensation Plan.* | |||||||||||||
10.19 | Amendment No. 1 to 2015 Omnibus Incentive Compensation Plan.* | |||||||||||||
10.20 | Amendment No. 2 to 2015 Omnibus Incentive Compensation Plan.* | |||||||||||||
10.21 | Form of Gannett Co., Inc. Director Restricted Stock Award Agreement (2015 Omnibus Incentive Compensation Plan, as amended).* | |||||||||||||
10.22 | Form of Executive Officer Restricted Stock Unit Award Agreement (2015 Omnibus Incentive Compensation Plan, as amended).* | |||||||||||||
10.23 | Form of Executive Officer Performance Shares Award Agreement (2015 Omnibus Incentive Compensation Plan, as amended).* | |||||||||||||
10.24 | Form of Executive Officer Performance Units Award Agreement (2015 Omnibus Incentive Compensation Plan, as amended).* | |||||||||||||
10.25 | 2015 Change in Control Severance Plan, as amended and restated as of December 23, 2020.* | |||||||||||||
10.26 | Key Employee Severance Plan, as amended and restated as of December 23, 2020.* | |||||||||||||
10.27 | Amended and Restated 401(k) Savings Plan of Gannett Co., Inc. as of January 1, 2019.* |
10.28 | Amendment No. 1 to 401(k) Savings Plan of Gannett Co., Inc. as of January 1, 2019.* | |||||||||||||
10.29 | 2015 Deferred Compensation Plan Rules for Post-2004 Deferrals.* | |||||||||||||
10.30 | Amendment No. 1 to 2015 Deferred Compensation Plan Rules for Post-2004 Deferrals.* | |||||||||||||
10.31 | Amendment No. 2 to 2015 Deferred Compensation Plan Rules for Post-2004 Deferrals.* | |||||||||||||
10.32 | Amendment No. 3 to 2015 Deferred Compensation Plan Rules for Post-2004 Deferrals.* | |||||||||||||
10.33 | Amendment No. 4 to 2015 Deferred Compensation Plan Rules for Post-2004 Deferrals.* | |||||||||||||
10.34 | Amendment No. 5 to 2015 Deferred Compensation Plan Rules for Post-2004 Deferrals.* | |||||||||||||
10.35 | Amendment No. 6 to 2015 Deferred Compensation Plan Rules for Post-2004 Deferrals.* | |||||||||||||
10.36 | Amendment No. 7 to 2015 Deferred Compensation Plan Rules for Post-2004 Deferrals.* | |||||||||||||
10.37 | Form of Indemnification Agreement to be entered into by New Media Investment Group Inc. with each of its executive officers and directors. | |||||||||||||
10.38 | Amended and Restated Warrant Agreement dated January 15, 2014, by and between New Media Investment Group Inc. and American Stock & Transfer Company, LLC. | |||||||||||||
10.39 | Offer Letter Agreement, dated March 25, 2020, by and between Gannett Co., Inc. and Douglas E. Horne.* | |||||||||||||
10.40 | Investor Agreement, dated as of November 17, 2020, by and among Gannett Co., Inc., the other Persons signatory thereto and such other Persons, if any, that from time to time become party thereto as Holders. | |||||||||||||
10.41 | Gannett Co., Inc. Performance Restricted Stock Unit Grant Agreement, dated as of January 8, 2021.* | |||||||||||||
10.42 | Amended and Restated Performance Restricted Stock Unit Grant Agreement between Gannett Co., Inc. and Michael Reed, effective as of January 8, 2021.* | |||||||||||||
10.43 | Employee Performance Restricted Stock Unit Grant Agreement between Gannett Co., Inc. and Michael Reed, effective as of January 8, 2021.* | |||||||||||||
10.44 | Gannett Co., Inc. 2021 Annual Bonus Plan.* | |||||||||||||
10.45 | Offer Letter Agreement, dated December 21, 2020, by and between Gannett Co., Inc. and Michael E. Reed.* |
10.46 | Credit Agreement, dated as of February 9, 2021, among Gannett Co., Inc., Gannett Holdings LLC, each Guarantor party thereto, the Lenders from time to time party thereto and Citibank, N.A., as collateral and administrative agent. | |||||||||||||
10.47 | First Lien Credit Agreement, dated as of October 15, 2021, by and among Gannett Co., Inc., Gannett Holdings LLC, each Guarantor party thereto, the Lenders from time to time party thereto, Citibank, N.A., as collateral agent and administrative agent for the Lenders. | |||||||||||||
10.48 | Amendment No. 1, dated as of January 31, 2022, to the First Lien Credit Agreement dated as of October 15, 2021, by and among Gannett Co., Inc., Gannett Holdings LLC, the Guarantors from time to time party thereto, the Lenders from time to time party thereto, and Citibank N.A., as administrative agent and collateral agent. | |||||||||||||
10.49 | Strategic Alliance Agreement, dated as of July 26, 2021, by and between Tipico USA Technology, Inc. and Gannett Media Corp.** | |||||||||||||
21.1 | List of subsidiaries. | |||||||||||||
23.1 | Consent of Ernst & Young LLP. | |||||||||||||
31.1 | Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d-14(d) of the Securities Exchange Act of 1934. | |||||||||||||
31.2 | Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(d) of the Securities Exchange Act of 1934. | |||||||||||||
32.1 | Section 1350 Certification of Principal Executive Officer. | |||||||||||||
32.2 | Section 1350 Certification of Principal Financial Officer. | |||||||||||||
101 | The following financial information from Gannett Co., Inc. Annual Report on Form 10-K for the year ended December 31, 2021, formatted in Inline XBRL includes: (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Operations and Comprehensive Income (Loss); (iii) Consolidated Statements of Cash Flows; (iv) Consolidated Statements of Equity; and (v) the Notes to Consolidated Financial Statements. | Filed herewith. | ||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | Filed herewith. |
* | Management contract or compensatory plan or arrangement. | ||||
** | Schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The registrant agrees to furnish supplementally a copy of any omitted schedule or exhibit to the U.S. Securities and Exchange Commission upon request. |
Dated: February 24, 2022 | GANNETT CO., INC. (Registrant) | ||||||||||
By: | /s/ Douglas E. Horne | ||||||||||
Douglas E. Horne | |||||||||||
Chief Financial Officer and Chief Accounting Officer (principal financial and principal accounting officer) |
Dated: February 24, 2022 | /s/ Michael E. Reed | |||||||
Michael E. Reed | ||||||||
Chief Executive Officer and | ||||||||
President (principal executive officer) | ||||||||
Dated: February 24, 2022 | /s/ Douglas E. Horne | |||||||
Douglas E. Horne | ||||||||
Chief Financial Officer and | ||||||||
Chief Accounting Officer (principal financial and principal accounting officer) |
Dated: February 24, 2022 | /s/ Vinayak R. Hegde | |||||||
Vinayak R. Hegde, Director | ||||||||
Dated: February 24, 2022 | /s/ Theodore Janulis | |||||||
Theodore Janulis, Director | ||||||||
Dated: February 24, 2022 | /s/ John Jeffry Louis | |||||||
John Jeffry Louis, Director | ||||||||
Dated: February 24, 2022 | /s/ Maria Miller | |||||||
Maria Miller, Director | ||||||||
Dated: February 24, 2022 | /s/ Michael E. Reed | |||||||
Michael E. Reed | ||||||||
Director, Chairman | ||||||||
Dated: February 24, 2022 | /s/ Debra Sandler | |||||||
Debra Sandler, Director | ||||||||
Dated: February 24, 2022 | /s/ Kevin Sheehan | |||||||
Kevin Sheehan, Director | ||||||||
Dated: February 24, 2022 | /s/ Laurence Tarica | |||||||
Laurence Tarica, Director | ||||||||
Dated: February 24, 2022 | /s/ Barbara Wall | |||||||
Barbara Wall, Director |
Entity | State of Incorporation (Corporations) State of Organization (Limited Liability Company) | ||||
Gannett Co., Inc. | Delaware | ||||
Gannett Holdings LLC | Delaware | ||||
Gannett Media Corp. | Delaware | ||||
Action Advertising, Inc. | Wisconsin | ||||
AfterCollege, Inc. | California | ||||
Albuquerque Publishing Company | New Mexico | ||||
Alexandria Newspapers, Inc. | Louisiana | ||||
American Influencer Awards, LLC | Delaware | ||||
Arizona News Service, LLC | Delaware | ||||
Baxter County Newspapers, Inc. | Arkansas | ||||
Bizzy, Inc. | Delaware | ||||
Blue Dot Seats, LLC | Delaware | ||||
Boat Spinco, Inc. | Wisconsin | ||||
BridgeTower Media DLN, LLC | Delaware | ||||
BridgeTower Media Holding Company | Delaware | ||||
BridgeTower Media, LLC | Delaware | ||||
CA Alabama Holdings, Inc. | Delaware | ||||
CA Florida Holdings, LLC | Delaware | ||||
CA Louisiana Holdings, Inc. | Delaware | ||||
CA Massachusetts Holdings, Inc. | Delaware | ||||
CA North Carolina Holdings, Inc. | Delaware | ||||
CA South Carolina Holdings, Inc. | Delaware | ||||
Circle Centre Partners Limited Partnership | Delaware | ||||
Citizen Publishing Company | Arizona | ||||
CMGI (Moduslink) | Delaware | ||||
Copley Ohio Newspapers, Inc. | Illinois | ||||
Cummings Acquisition, LLC | Delaware | ||||
CyberInk, LLC | Pennsylvania | ||||
Daily Journal of Commerce, Inc. | Delaware | ||||
Daily Reporter Publishing Company | Delaware | ||||
DB Acquisition, Inc. | Delaware | ||||
DB Arkansas Holdings, Inc. | Delaware | ||||
DB Iowa Holdings, Inc. | Delaware | ||||
DB North Carolina Holdings, Inc. | Delaware | ||||
DB Oklahoma Holdings, Inc. | Delaware | ||||
DB Tennessee Holdings, Inc. | Delaware | ||||
DB Texas Holdings, Inc. | Delaware | ||||
DB Washington Holdings, Inc. | Delaware | ||||
DealOn, LLC | Delaware | ||||
Des Moines Press Citizen LLC | Delaware | ||||
Des Moines Register and Tribune Company | Iowa | ||||
Desert Sun Publishing, LLC | Delaware | ||||
Desk Spinco, Inc. | Wisconsin |
Detroit Free Press, Inc. | Michigan | ||||
Detroit Newspaper Partnership, L.P. | Delaware | ||||
DiGiCol, Inc. | Delaware | ||||
Dolco Acquisition, LLC | Delaware | ||||
ENHE Acquisition, LLC | Delaware | ||||
EnMotive Company LLC | Delaware | ||||
Enterprise NewsMedia Holding, LLC | Delaware | ||||
Enterprise NewsMedia, LLC | Delaware | ||||
Enterprise Publishing Company, LLC | Delaware | ||||
Evansville Courier Company, Inc. | Indiana | ||||
Federated Publications, Inc. | Delaware | ||||
Finance and Commerce, Inc. | Minnesota | ||||
FoodBlogs, LLC | Arizona | ||||
Gannett GP Media, Inc. | Delaware | ||||
Gannett International Communications, Inc. | Delaware | ||||
Gannett International Finance LLC | Delaware | ||||
Gannett International Finance LLP | Delaware | ||||
Gannett International Holdings LLP | United Kingdom | ||||
Gannett Media Services, LLC | Delaware | ||||
Gannett MHC Media, Inc. | Delaware | ||||
Gannett Missouri Publishing, Inc. | Kansas | ||||
Gannett Publishing Services, LLC | Delaware | ||||
Gannett Retail Advertising Group, Inc. | Delaware | ||||
Gannett River States Publishing Corporation | Arkansas | ||||
Gannett Satellite Information Network, LLC | Delaware | ||||
Gannett SB, Inc. | Delaware | ||||
Gannett Supply Corporation | Delaware | ||||
Gannett U.K. Limited | Delaware | ||||
Gannett UK Media, LLC | Delaware | ||||
Gannett Ventures LLC | Delaware | ||||
Gannett Vermont Publishing, Inc. | Delaware | ||||
GateHouse Media Alaska Holdings, Inc. | Delaware | ||||
GateHouse Media Arkansas Holdings, Inc. | Delaware | ||||
GateHouse Media California Holdings, Inc. | Delaware | ||||
GateHouse Media Colorado Holdings, Inc. | Delaware | ||||
GateHouse Media Connecticut Holdings, Inc. | Delaware | ||||
GateHouse Media Corning Holdings, Inc. | Nevada | ||||
GateHouse Media Delaware Holdings, Inc. | Delaware | ||||
GateHouse Media Directories Holdings, Inc. | Delaware | ||||
GateHouse Media Freeport Holdings, Inc. | Delaware | ||||
GateHouse Media Georgia Holdings, Inc. | Delaware | ||||
GateHouse Media Holdco, LLC | Delaware | ||||
GateHouse Media Illinois Holdings II, Inc. | Delaware | ||||
GateHouse Media Illinois Holdings, Inc. | Delaware | ||||
GateHouse Media Indiana Holdings, Inc. | Delaware | ||||
GateHouse Media Intermediate Holdco, LLC | Delaware | ||||
GateHouse Media Iowa Holdings, Inc. | Delaware |
GateHouse Media Kansas Holdings II, Inc. | Delaware | ||||
GateHouse Media Kansas Holdings, Inc. | Delaware | ||||
GateHouse Media Lansing Printing, Inc. | Delaware | ||||
GateHouse Media Louisiana Holdings, Inc. | Delaware | ||||
GateHouse Media Macomb Holdings, Inc. | Delaware | ||||
GateHouse Media Management Services, Inc. | Delaware | ||||
GateHouse Media Maryland Holdings, Inc. | Delaware | ||||
GateHouse Media Massachusetts I, Inc. | Delaware | ||||
GateHouse Media Massachusetts II, Inc. | Delaware | ||||
GateHouse Media Michigan Holdings II, Inc. | Delaware | ||||
GateHouse Media Michigan Holdings, Inc. | Delaware | ||||
GateHouse Media Minnesota Holdings, Inc. | Delaware | ||||
GateHouse Media Missouri Holdings II, Inc. | Delaware | ||||
GateHouse Media Missouri Holdings, Inc. | Delaware | ||||
GateHouse Media Nebraska Holdings, Inc. | Delaware | ||||
GateHouse Media New York Holdings, Inc. | Delaware | ||||
GateHouse Media North Dakota Holdings, Inc. | Delaware | ||||
GateHouse Media Ohio Holdings II, Inc. | Delaware | ||||
GateHouse Media Ohio Holdings, Inc. | Delaware | ||||
GateHouse Media Oklahoma Holdings, Inc. | Delaware | ||||
GateHouse Media Operating, LLC | Delaware | ||||
GateHouse Media Oregon Holdings, Inc. | Delaware | ||||
GateHouse Media Pennsylvania Holdings, Inc. | Delaware | ||||
GateHouse Media South Dakota Holdings, Inc. | Delaware | ||||
GateHouse Media Suburban Newspapers, Inc. | Delaware | ||||
GateHouse Media Tennessee Holdings, Inc. | Delaware | ||||
GateHouse Media Texas Holdings II, Inc. | Delaware | ||||
GateHouse Media Texas Holdings, Inc. | Delaware | ||||
GateHouse Media Virginia Holdings, Inc. | Delaware | ||||
GateHouse Media, LLC | Delaware | ||||
GCCC, LLC | Delaware | ||||
GCOE, LLC | Delaware | ||||
George W. Prescott Publishing Company, LLC | Delaware | ||||
GFHC, LLC | Delaware | ||||
GiddyUp Events LLC | Maine | ||||
GNSS LLC | Delaware | ||||
Good Worldwide, Inc. | Delaware | ||||
Grateful Media, LLC | Delaware | ||||
Guam Publications, Incorporated | Hawaii | ||||
Idaho Business Review, LLC | Idaho | ||||
Imagn Content Services, LLC | Florida | ||||
Journal Community Publishing Group, Inc. | Wisconsin | ||||
Journal Media Group, Inc. | Wisconsin | ||||
Journal Sentinel Inc. | Wisconsin | ||||
Kickserv, LLC | Delaware | ||||
Lawyer's Weekly, LLC | Delaware | ||||
Liberty SMC, L.L.C. | Delaware |
LMG Maine Holdings, Inc. | Delaware | ||||
LMG Massachusetts, Inc. | Massachusetts | ||||
LMG Nantucket, Inc. | Massachusetts | ||||
LMG National Publishing, Inc. | Delaware | ||||
LMG Rhode Island Holdings, Inc. | Delaware | ||||
LMG Stockton, Inc. | Delaware | ||||
Local Media Group Holdings LLC | Delaware | ||||
Local Media Group, Inc. | Delaware | ||||
LocaliQ Limited | United Kingdom | ||||
LOCALiQ LLC | Delaware | ||||
Loco Sports, LLC | Massachusetts | ||||
Long Island Business News, LLC | Delaware | ||||
Low Realty, LLC | Delaware | ||||
LRT Four Hundred, LLC | Delaware | ||||
Media Consortium, LLC | Delaware | ||||
Memphis Publishing Company | Delaware | ||||
Milwaukee Marathon LLC | Wisconsin | ||||
Mineral Daily News Tribune, Inc. | West Virginia | ||||
Missouri Lawyers Media, LLC | Delaware | ||||
Moonlighting, Inc. | Delaware | ||||
Multimedia, Inc. | South Carolina | ||||
New Media Holdings I LLC | Delaware | ||||
New Media Holdings II LLC | Delaware | ||||
New Media Ventures Group LLC | Delaware | ||||
New Orleans Publishing Group, L.L.C. | Louisiana | ||||
News Leader, Inc. | Louisiana | ||||
News.me Inc. | Delaware | ||||
Newsquest (Clyde & Forth Press) Limited | United Kingdom | ||||
Newsquest (Essex) Limited | United Kingdom | ||||
Newsquest (Herald & Times) Limited | United Kingdom | ||||
Newsquest (Herts and Bucks) Limited | United Kingdom | ||||
Newsquest (London & Essex) Limited | United Kingdom | ||||
Newsquest (Midlands South) Limited | United Kingdom | ||||
Newsquest Capital Limited | United Kingdom | ||||
Newsquest Limited | United Kingdom | ||||
Newsquest Media (Southern) Limited | United Kingdom | ||||
Newsquest Media Group Limited | United Kingdom | ||||
Newsquest Pension Trustee Limited | United Kingdom | ||||
Newsquest Printing (Glasgow) Limited | United Kingdom | ||||
Newsquest Specialist Media Limited | United Kingdom | ||||
NOPG, L.L.C. | Louisiana | ||||
PA Group Ltd. | Republic of Malta | ||||
Pacific Media, Inc. | Delaware | ||||
Phoenix Newspapers, Inc. | Arizona | ||||
Placester, Inc. | Delaware | ||||
Press-Citizen Company, Inc. | Iowa | ||||
Reach plc | United Kingdom |
ReachLocal Australia Pty Ltd | Austalia | ||||
ReachLocal Canada, Inc. | Delaware | ||||
ReachLocal DP, Inc. | Delaware | ||||
ReachLocal Europe B.V. | The Netherlands | ||||
ReachLocal GmbH | Germany | ||||
ReachLocal International GP LLC | Delaware | ||||
ReachLocal International, Inc. | Delaware | ||||
ReachLocal Mexico S. De R.L. de C.V. | Mexico | ||||
Reachlocal New Zealand Ltd. | New Zealand | ||||
ReachLocal Services Private Limited | India | ||||
ReachLocal, Inc. | Delaware | ||||
Reno Newspapers, Inc. | Nevada | ||||
RL International Investment C.V. | The Netherlands | ||||
Rugged Events Canada LTD | British Columbia | ||||
Salinas Newspapers LLC | California | ||||
Scripps NP Operating, LLC | Wisconsin | ||||
Scroll Labs Inc. | Delaware | ||||
Seacoast Newspapers, Inc. | New Hampshire | ||||
Sedona Publishing Company, Inc. | Arizona | ||||
Sopress Investments Limited | United Kingdom | ||||
Starline Printing Company, LLLP | New Mexico | ||||
SureWest Directories | California | ||||
Tap-on-it, LLC | Delaware | ||||
Terry Newspapers, Inc. | Iowa | ||||
Texas-New Mexico Newspapers, LLC | Delaware | ||||
Thanksgiving Ventures, LLC | Arizona | ||||
The Advertiser Company | Alabama | ||||
The Courier-Journal, Inc. | Delaware | ||||
The Daily Record Company, LLC | Delaware | ||||
The Desert Sun Publishing Co. | California | ||||
The Journal Record Publishing Co., LLC | Delaware | ||||
The Mail Tribune, Inc. | Delaware | ||||
The Nickel of Medford, Inc. | Oregon | ||||
The NWS Company, LLC | Delaware | ||||
The Peoria Journal Star, Inc. | Illinois | ||||
The Sun Company of San Bernardino, California LLC | California | ||||
The Times Herald Company | Michigan | ||||
ThriveHive, Inc. | Delaware | ||||
timeRAZOR, Inc. (d/b/a Gravy) | Virginia | ||||
TNI Partners | Arizona | ||||
UpCurve Cloud LLC | Delaware | ||||
UpCurve, Inc. | Delaware | ||||
USA Today Sports Media Group, LLC | Delaware | ||||
Ventures Endurance Events, LLC | Massachusetts | ||||
Ventures Endurance, LLC | Delaware | ||||
Visalia Newspapers LLC | California | ||||
Weymouth Football Club | United Kingdom |
William Trimble Limited | United Kingdom | ||||
Wordstream, Inc. | Delaware | ||||
WP Publishing | United Kingdom | ||||
W-Systems Corp. | Nevada | ||||
x.com, Inc. | Delaware | ||||
York Daily Record-York Sunday News LLC | Delaware | ||||
York Dispatch LLC | Delaware | ||||
York Newspaper Company | Pennsylvania | ||||
York Newspapers Holdings, L.P. | Delaware | ||||
York Newspapers Holdings, LLC | Delaware | ||||
York Partnership Holdings, LLC | Delaware |
/s/ Michael E. Reed | |||||
Michael E. Reed President and Chief Executive Officer (principal executive officer) |
/s/ Douglas E. Horne | |||||
Douglas E. Horne Chief Financial Officer and Chief Accounting Officer (principal financial and principal accounting officer) |
/s/ Michael E. Reed | |||||
Michael E. Reed President and Chief Executive Officer (principal executive officer) |
/s/ Douglas E. Horne | |||||
Douglas E. Horne Chief Financial Officer and Chief Accounting Officer (principal financial and principal accounting officer) |