0000039899
2007-12-30 0000039899
2008-12-28 0000039899
2008-03-31 2008-06-29
0000039899
2007-12-31 2008-06-29
0000039899
2009-03-30 2009-06-28
0000039899
2008-06-29 0000039899
2009-06-28 0000039899
2008-12-29 2009-06-28
iso4217:USD xbrli:shares
xbrli:pure
xbrli:shares iso4217:USD
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<!-- xbrl,ns --> <div align="left" style="font-size: 10pt; margin-top:
0pt"><b></b> </div> <div align="left" style="font-size:
10pt; margin-top: 0pt"><b></b> </div> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>NOTE 1 — Basis
of presentation</b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     The
accompanying unaudited Condensed Consolidated Financial Statements of Gannett
Co., Inc. (the Company) have been prepared in accordance with the instructions
for Form 10-Q and, therefore, do not include all information and footnotes,
which are normally included in the Form 10-K and annual report to shareholders.
The financial statements covering the thirteen week and year-to-date periods
ended June 28, 2009, and the comparable periods of 2008, reflect
all adjustments which, in the opinion of the Company, are necessary for a
fair statement of results for the interim periods and reflect all normal and
recurring adjustments which are necessary for a fair presentation of the Company’s
financial position, results of operations and cash flows as of the dates and
for the periods presented. The Company has evaluated subsequent events through
the time of filing this Form 10-Q on July 30, 2009, which is the
date that these financial statements have been filed with the Securities and
Exchange Commission (“SEC”). No material subsequent events
have occurred since June 28, 2009 that required recognition or disclosure
in these financial statements. </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     In
the third quarter of 2008, the Company began reporting a new digital segment
and a separate digital revenues line in its Statements of Income. The digital
segment includes CareerBuilder, ShopLocal, Schedule Star, Planet
Discover, PointRoll and Ripple6. Results for CareerBuilder and ShopLocal were
initially consolidated in the third quarter of 2008 when the Company acquired
ShopLocal and a controlling interest in CareerBuilder. Ripple6 was acquired
in November 2008. Results for Schedule Star, Planet Discover
and PointRoll, which had been previously included in the publishing segment,
have been reclassified to the digital segment for prior periods. The digital
segment and the digital revenues line do not include online/digital revenues
generated by Web sites that are associated with the Company’s publishing
and broadcasting operating properties. Such amounts are reflected within these
segments and are included as part of publishing advertising revenues and broadcasting
revenues in the Statements of Income. </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     The
Company adopted Financial Accounting Standards Board (FASB) Statement
of Financial Accounting Standards No. 160, “Noncontrolling
Interests in Consolidated Financial Statements, an amendment of ARB No. 51”
(SFAS No. 160) at the beginning of its 2009 fiscal year. SFAS No. 160
changed the accounting and reporting for minority interest, which was renamed
noncontrolling interests and generally classified as a component of equity
on the Condensed Consolidated Balance Sheet. Gannett’s SFAS No. 160
adoption resulted in the presentation of a new line “Redeemable
noncontrolling interest” in the mezzanine section of the balance
sheet. The balance in this line represents redeemable stock held by a noncontrolling
owner in CareerBuilder, LLC (CareerBuilder). The redeemable stock is generally
exercisable within 30 days after January 1, 2014. On the
Condensed Consolidated Statement of Income, SFAS No. 160 affected
primarily the Company’s reporting of the 49.2 percent noncontrolling
interest in CareerBuilder. Previously, the Company presented this minority
interest in “Other non-operating items” in the Condensed
Consolidated Statements of Income. Under SFAS No. 160, “Net
income” in the Condensed Consolidated Statements of Income reflects
100 percent of CareerBuilder results as the Company holds the controlling
interest. “Net income (loss)” is subsequently adjusted
to remove the noncontrolling (minority) interest to arrive at “Net
income (loss) attributable to Gannett Co., Inc.” While
this presentation is different than previously required by GAAP, the final
net income results attributable to the Company are the same under SFAS No. 160
and the previous reporting method. Reclassifications were made to prior periods
to conform to the new SFAS No. 160 presentation requirements. </div>
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<div style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>NOTE 2 — Recently
issued accounting standards</b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     In
June 2009, the FASB issued SFAS No. 168, The “FASB
Accounting Standards Codification and the Hierarchy of Generally Accepted
Accounting Principles—a replacement of FASB Statement No. 162”.
This standard establishes only two levels of U.S. generally accepted accounting
principles (“GAAP”), authoritative and nonauthoritative.
The FASB Accounting Standards Codification (the “Codification”)
will become the source of authoritative, nongovernmental GAAP, except for
rules and interpretive releases of the SEC, which are sources of authoritative
GAAP for SEC registrants. All other nongrandfathered, non-SEC accounting literature
not included in the Codification will become nonauthoritative. This standard
is effective for financial statements for interim or annual reporting periods
ending after September 15, 2009. The Company will begin to use the
new guidelines and numbering system prescribed by the Codification when referring
to GAAP in the third quarter of 2009. As the Codification was not intended
to change or alter existing GAAP, it will not have any impact on the Company’s
consolidated financial statements. </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     In
May 2009, the FASB issued Statement of Financial Accounting Standards
No. 165, “Subsequent Events” (SFAS No. 165).
This standard is intended to establish general standards of accounting for
and disclosure of events that occur after the balance sheet date but before
financial statements are issued or are available to be issued. Specifically,
this standard sets forth the period after the balance sheet date during which
management of a reporting entity should evaluate events or transactions that
may occur for potential recognition or disclosure in the financial statements,
the circumstances under which an entity should recognize events or transactions
occurring after the balance sheet date in its financial statements, and the
disclosures that an entity should make about events or transactions that occurred
after the balance sheet date. The Company began applying the provisions of
SFAS No. 165 in the second quarter of 2009 and its adoption did not
affect the Company’s financial statements, other than the disclosures
required by it, which can be found in Note 1. </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">      In
April 2009, the FASB issued FASB Staff Position FAS 107-1 and APB
28-1, “Interim Disclosures about Fair Value of Financial Instruments”
(FSP FAS 107-1 and APB 28-1), which amends the interim disclosure requirements
in scope for SFAS No. 107, “Disclosures about Fair Value
of Financial Instruments.” This FASB Staff Position is effective
for interim and annual periods ending after June 15, 2009. The Company
began applying the provisions of FSP FAS 107-1 and APB 28-1 in the second
quarter of 2009 and its adoption did not affect the Company’s financial
statements, other than the disclosures required by it, which can be found
in Note 10. </div> <div align="left" style="font-size: 10pt; margin-top:
6pt">     In April 2009,
the FASB issued FSP FAS No. 115-2 and 124-2, “Recognition
and Presentation of Other-Than-Temporary Impairments” (FSP FAS 115-2
and 124-2). This FASB staff position provides additional guidance related
to the disclosure of impairment losses on securities and the accounting for
impairment losses on debt securities. FSP FAS 115-2 and 124-2 does not amend
existing guidance related to other-than-temporary impairments of equity securities.
The Company began applying the provisions of FSP FAS 115-2 and 124-2 in the
second quarter of 2009 and its adoption did not affect the Company’s
financial statements, other than the disclosures required by it, which can
be found in Note 10. </div> <div align="left" style="font-size: 10pt;
margin-top: 6pt">     In December 2007
the FASB issued SFAS No. 141 (revised 2007), “Business
Combinations” (SFAS No. 141(R)). SFAS No. 141(R)
became effective for the beginning of fiscal year 2009. SFAS No. 141(R) changes
how business acquisitions are accounted for and will impact financial statements
both on the acquisition date and in subsequent periods. The adoption of SFAS
No. 141(R) did not affect the Company’s financial statements
in the first or second quarter of 2009. </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">     The
Company adopted FASB Statement of Financial Accounting Standards No. 157,
“Fair Value Measurements” (SFAS No. 157) at the
beginning of 2008. SFAS No. 157 defines fair value, establishes a
framework for measuring fair value in GAAP, and expands disclosures about
fair value measurements. In November 2007, the FASB agreed to a one-year
deferral of the effective date of SFAS No. 157 for nonfinancial assets
and liabilities that are recognized or disclosed at fair value on a nonrecurring
basis. Accordingly, for nonfinancial assets and liabilities SFAS No. 157
became effective for the Company at the beginning of 2009. Note 10 contains
information regarding the Company’s fair value measurements. </div>
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<div style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>NOTE 3 — Asset
impairment and other charges</b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     Very
difficult business conditions required the Company to perform impairment tests
on certain assets including goodwill, other intangible assets, other long
lived assets and investments accounted for under the equity method during
the 2009 and 2008 fiscal second quarters. As a result, the Company has recorded
non-cash impairment charges to reduce the book value of certain of those assets.
In addition, an impairment charge was taken to reduce the value of certain
publishing assets held for sale to fair value less costs to sell. </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     A
summary of these charges is presented below: </div> <div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0"
cellpadding="0" width="100%"> <!-- Begin Table Head --> <tr valign="bottom">
<td width="28%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Per
Diluted Share</b></td> <td> </td> </tr>
<tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="6"
style="border-bottom: 1px solid #000000"><b>Pre Tax Amount (a)</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>After
Tax Amount</b></td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px
solid #000000"><b>Amount (a)</b></td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="6"
style="border-bottom: 1px solid #000000"><b>Thirteen Weeks Ended</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Thirteen
Weeks Ended</b></td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px
solid #000000"><b>Thirteen Weeks Ended</b></td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June
28,</b></td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 29,</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"><b>June 28,</b></td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June
29,</b></td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 28,</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"><b>June 29,</b></td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap"
align="left" style="border-bottom: 0px solid #000000">(in millions, except
per share amounts)</td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td> </tr> <!-- End Table Head -->
<!-- Begin Table Body --> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><i>Asset
impairment and other charges</i> </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Goodwill:
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Publishing
</div></td> <td> </td> <td align="left">$</td>
<td align="right">17</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">2,138</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">10</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">2,138</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">0.04</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">9.36</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:45px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:60px; text-indent:-15px">Total Goodwill </div></td>
<td> </td> <td> </td> <td align="right">17</td>
<td> </td> <td> </td> <td> </td>
<td align="right">2,138</td> <td> </td> <td> </td>
<td> </td> <td align="right">10</td> <td> </td>
<td> </td> <td> </td> <td align="right">2,138</td>
<td> </td> <td> </td> <td> </td>
<td align="right">0.04</td> <td> </td> <td> </td>
<td> </td> <td align="right">9.36</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:30px; text-indent:-15px">Other intangible assets: </div></td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:45px;
text-indent:-15px">Publishing </div></td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">176</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">113</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">0.50</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:45px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:60px; text-indent:-15px">Total other intangible assets
</div></td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">176</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">113</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">0.50</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Property, plant and
equipment: </div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Publishing
</div></td> <td> </td> <td> </td>
<td align="right">25</td> <td> </td> <td> </td>
<td> </td> <td align="right">185</td> <td> </td>
<td> </td> <td> </td> <td align="right">16</td>
<td> </td> <td> </td> <td> </td>
<td align="right">115</td> <td> </td> <td> </td>
<td> </td> <td align="right">0.07</td> <td> </td>
<td> </td> <td> </td> <td align="right">0.50</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:45px; text-indent:-15px">Broadcasting </div></td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">2</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">1</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:45px; text-indent:-15px">Corporate </div></td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">1</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">1</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:45px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:60px; text-indent:-15px">Total
property, plant and equipment </div></td> <td> </td>
<td> </td> <td align="right">25</td> <td> </td>
<td> </td> <td> </td> <td align="right">188</td>
<td> </td> <td> </td> <td> </td>
<td align="right">16</td> <td> </td> <td> </td>
<td> </td> <td align="right">117</td> <td> </td>
<td> </td> <td> </td> <td align="right">0.07</td>
<td> </td> <td> </td> <td> </td>
<td align="right">0.51</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:30px; text-indent:-15px">Other: </div></td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:45px;
text-indent:-15px">Publishing </div></td> <td> </td>
<td> </td> <td align="right">5</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">3</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">0.01</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Broadcasting
</div></td> <td> </td> <td> </td>
<td align="right">1</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">1</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:45px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:60px; text-indent:-15px">Total other </div></td>
<td> </td> <td> </td> <td align="right">6</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">4</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">0.02</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:45px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom"><!-- Blank Space --> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px"><b>Total asset impairment
and other charges</b> </div></td> <td> </td>
<td> </td> <td align="right">47</td> <td> </td>
<td> </td> <td> </td> <td align="right">2,502</td>
<td> </td> <td> </td> <td> </td>
<td align="right">30</td> <td> </td> <td> </td>
<td> </td> <td align="right">2,368</td> <td> </td>
<td> </td> <td> </td> <td align="right">0.13</td>
<td> </td> <td> </td> <td> </td>
<td align="right">10.37</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:45px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Impairment
of publishing assets held for sale </div></td> <td> </td>
<td> </td> <td align="right">28</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">24</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">0.10</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> </tr> <tr valign="bottom"><!--
Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td nowrap="nowrap"> <div style="margin-left:30px; text-indent:-15px">Newspaper
publishing partnerships<br> and other equity method investments </div></td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">261</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">162</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">0.71</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:45px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Total
charges</b> </div></td> <td> </td>
<td align="left">$</td> <td align="right">75</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">2,763</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">54</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">2,530</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">0.23</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">11.08</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:45px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<!-- End Table Body --> </table> </div> <div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px
solid #000000">  </div> </div> <table width="100%"
border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align:
left"> <tr> <td width="3%"></td> <td width="1%"></td>
<td width="96"></td> </tr> <tr valign="top"> <td
nowrap="nowrap" align="left">(a)</td> <td> </td>
<td>Total amounts may not sum due to rounding.</td> </tr>
</table> <div align="left" style="font-size: 10pt; margin-top: 6pt"><u><b>2009</b></u>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The
goodwill impairment charge results from the application of the impairment
testing provisions of Statement of Financial Accounting Standards No. 142
“Goodwill and Other Intangible Assets” (SFAS No. 142).
Because of difficult business conditions, testing for certain reporting units
was updated during the second quarter of 2009. For one of the reporting units
in the publishing segment, an impairment was indicated. The fair value of
the reporting unit was determined using a multiple of earnings technique.
The Company then undertook the next step in the impairment testing process
by determining the fair value of assets and liabilities within this reporting
unit. The implied value of goodwill for this reporting unit was less than
the carrying amount by $17 million, and therefore an impairment charge
in this amount was taken. Deferred tax benefits were recognized for this charge
and therefore the after-tax effect of the goodwill impairment was $10 million
or $0.04 per share. </div> <div align="left" style="font-size: 10pt;
margin-top: 6pt">     The
carrying values of property, plant and equipment at certain publishing businesses
were evaluated in the second quarter of 2009 due to softening business conditions.
The recoverability of these assets was measured in accordance with Statement
of Financial Accounting Standard No. 144 “Accounting for
the Impairment or Disposal of Long-Lived Assets” (SFAS No. 144).
This process indicated that the carrying values of certain assets were not
recoverable, as the expected undiscounted future cash flows to be generated
by them is less than their carrying values. The related impairment loss was
measured based on the amount by which the asset carrying value exceeded fair
value. Asset group fair values were determined using discounted cash flow
technique. Certain asset fair values were based on estimates of prices for
similar assets. As a result of the application of the requirements of SFAS
No. 144, the Company recorded charges of $25 million. Deferred
tax benefits were recognized for these charges and therefore the after-tax
impact was $16 million or $0.07 per share. </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">     The
charges in the second quarter of 2009 of $6 million pre-tax included
in the “Other” category include shut down costs as well
as the impairment of certain broadcast programming assets. </div> <div
align="left" style="font-size: 10pt; margin-top: 6pt">     In
the second quarter of 2009, in accordance with SFAS No. 144, the
Company recorded an impairment charge to reduce the value of certain publishing
assets held for sale to fair value less costs to sell. Fair value was determined
using a discounted cash flow technique that included the cash flows associated
with the expected disposition. This impairment charge was $28 million
pre-tax and $24 million after-tax, or $0.10 per share. The charge
is reflected in “Other non-operating items” in the Condensed
Consolidated Statements of Income (Loss). </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt"><u><b>2008</b></u>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Because
of softening business conditions within the Company’s publishing
segment and the decline in the Company’s stock price and market
capitalization experienced at that time, SFAS No. 142 testing was updated
during the second quarter of 2008. For one of the reporting units in its publishing
segment, an impairment was indicated. The fair value of the reporting unit
was determined using discounted cash flow and multiple of earnings techniques.
The Company then undertook the next step in the impairment testing process
by determining the fair value of assets and liabilities within this reporting
unit. The implied value of goodwill for this reporting unit was less than
the carrying amount by $2.1 billion, and therefore an impairment
charge in this amount was taken. There was no tax benefit recognized related
to the impairment charge since the recorded goodwill was non-deductible as
it arose from stock purchase transactions. Therefore, the after tax effect
of the impairment was $2.1 billion or $9.36 per share. </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The
impairment charge in the second quarter of 2008 of $176 million for
other publishing intangible assets was required because revenue results from
the underlying businesses had softened from what was expected at the time
they were purchased and the assets were initially valued. In accordance with
SFAS No. 142, the carrying values of impaired indefinite lived intangible
assets, principally mastheads, were reduced to fair value. Fair value was
determined using a relief-from-royalty method. The carrying values of certain
definite lived intangible assets, principally customer relationships, were
reduced to fair value in accordance with SFAS No. 144. Deferred tax
benefits were recognized for these intangible asset impairment charges and
therefore the after-tax impact was $113 million or $0.50 per share.
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The
carrying values of property, plant and equipment at certain publishing businesses
were evaluated in the second quarter of 2008 due to softening business conditions
and, in some cases, changes in expected useful lives. The recoverability of
these assets was measured in accordance with SFAS No. 144. This process
indicated that the carrying values of certain assets were not recoverable,
as the expected undiscounted future cash flows to be generated by them was
less than their carrying values. The related impairment loss was measured
based on the amount by which the asset carrying value exceeded fair value.
Asset group fair values were determined using discounted cash flow or multiple
of earnings techniques. Certain asset fair values were based on estimates
of prices for similar assets. In addition, as required by SFAS No. 144,
the Company revised the useful lives of certain assets, which were abandoned
during the year or for which management has committed to a plan to abandon
in the near future, in order to reflect the use of those assets over their
shortened useful life. As a result of the application of the requirements
of SFAS No. 144, the Company recorded charges of $188 million
in the second quarter of 2008. Deferred tax benefits were recognized for these
charges and therefore the after-tax impact was $117 million or $0.51
per share. </div> <div align="left" style="font-size: 10pt; margin-top:
6pt">     In the second quarter
of 2008, for certain of the Company’s newspaper publishing partnership
investments, and for certain other investments in which the Company owns a
noncontrolling interest, carrying values were written down to fair value because
the businesses underlying the investments had experienced significant and
sustained declines in operating performance, leading the Company to conclude
that they were other than temporarily impaired. The adjustment of newspaper
publishing partnership carrying values comprise the majority of these investment
charges, and these were driven by many of the same factors affecting the Company’s
wholly owned publishing businesses. Fair values were determined using a multiple
of earnings or a multiple of revenues technique. These investment carrying
value adjustments were $261 million pre-tax and $162 million
on an after-tax basis, or $0.71 per share. </div> <!-- Folio -->
<!-- /Folio --> </div> <!-- PAGEBREAK --> <div style="font-family:
'Times New Roman',Times,serif"> </div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 4 - us-gaap:GoodwillAndIntangibleAssetsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>NOTE 4 — Goodwill
and other intangible assets</b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     The
following table displays goodwill, indefinite-lived intangible assets, and
amortizable intangible assets at June 28, 2009 and December 28,
2008. </div> <div align="center"> <table style="font-size:
10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --> <tr valign="bottom"> <td width="52%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7"
style="border-bottom: 1px solid #000000"><b>June 28, 2009</b></td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7"
style="border-bottom: 1px solid #000000"><b>December 28, 2008</b></td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="3"><b>Accumulated</b></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Accumulated</b></td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap"
align="left" style="border-bottom: 0px solid #000000"><i>(in thousands
of dollars)</i></td> <td> </td> <td nowrap="nowrap"
align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Gross</b></td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3"
style="border-bottom: 1px solid #000000"><b>Amortization</b></td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3"
style="border-bottom: 1px solid #000000"><b>Gross</b></td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3"
style="border-bottom: 1px solid #000000"><b>Amortization</b></td>
</tr> <!-- End Table Head --> <!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Goodwill </div></td>
<td> </td> <td align="right">$</td> <td
align="right">2,871,733</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">2,872,888</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Indefinite-lived intangibles:
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:30px; text-indent:-15px"><i>Mastheads and trade
names</i> </div></td> <td> </td> <td> </td>
<td align="right">114,454</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">104,512</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px"><i>Television
station FCC licenses</i> </div></td> <td> </td>
<td> </td> <td align="right">255,304</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">255,304</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Amortizable intangible
assets: </div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px"><i>Customer
relationships</i> </div></td> <td> </td>
<td> </td> <td align="right">317,656</td>
<td> </td> <td> </td> <td> </td>
<td align="right">129,991</td> <td> </td>
<td> </td> <td> </td> <td align="right">298,566</td>
<td> </td> <td> </td> <td> </td>
<td align="right">116,803</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px"><i>Other</i>
</div></td> <td> </td> <td> </td>
<td align="right">57,562</td> <td> </td>
<td> </td> <td> </td> <td align="right">21,879</td>
<td> </td> <td> </td> <td> </td>
<td align="right">59,777</td> <td> </td>
<td> </td> <td> </td> <td align="right">18,665</td>
<td> </td> </tr> <!-- End Table Body -->
</table> </div> <div align="left" style="font-size: 10pt; margin-top:
6pt">     Amortization expense
was $8.2 million in the quarter ended June 28, 2009 and
$16.4 million year-to-date. For the second quarter and year-to-date
of 2008, amortization expense was $6.5 and $14.7 million respectively.
Customer relationships, which include subscriber lists and advertiser relationships,
are amortized on a straight-line basis over eight to 25 years. Other
intangibles primarily include commercial printing relationships, internally
developed technology, partner relationships, patents and amortizable trade
names. These assets were assigned lives of between one and 21 years
and are amortized on a straight-line basis. </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt"><i>(in thousands of dollars)</i>
</div> <div align="center"> <table style="font-size: 10pt;
text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --> <tr valign="bottom"> <td width="52%"></td>
<td width="5%"></td> <td width="1%"></td> <td width="5%"></td>
<td width="1%"></td> <td width="5%"></td> <td width="1%"></td>
<td width="5%"></td> <td width="1%"></td> <td width="5%"></td>
<td width="1%"></td> <td width="5%"></td> <td width="1%"></td>
<td width="5%"></td> <td width="1%"></td> <td width="5%"></td>
<td width="1%"></td> </tr> <tr style="font-size: 8pt"
valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom:
0px solid #000000"><b>Goodwill</b></td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000"><b>Publishing</b></td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"><b>Digital</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Broadcasting</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Total</b></td>
<td> </td> </tr> <!-- End Table Head -->
<!-- Begin Table Body --> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><i>Balance
at Dec. 28, 2008</i> </div></td> <td> </td>
<td align="left">$</td> <td align="right">594,328</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">660,593</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">1,617,967</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">2,872,888</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Acquisitions and adjustments
</div></td> <td> </td> <td> </td>
<td align="right">1,582</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(4,503</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(2,921</td> <td nowrap="nowrap">)</td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">Dispositions </div></td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(6,039</td> <td nowrap="nowrap">)</td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(6,039</td> <td nowrap="nowrap">)</td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">Impairment </div></td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(17,000</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(17,000</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:30px;
text-indent:-15px">Foreign currency exchange rate changes </div></td>
<td> </td> <td> </td> <td align="right">24,636</td>
<td> </td> <td> </td> <td> </td>
<td align="right">1</td> <td> </td> <td> </td>
<td> </td> <td align="right">168</td> <td> </td>
<td> </td> <td> </td> <td align="right">24,805</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px"><i>Balance at
June 28, 2009</i> </div></td> <td> </td>
<td align="left">$</td> <td align="right">597,507</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">656,091</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">1,618,135</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">2,871,733</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> </tr> <!-- End Table Body -->
</table> </div> <!-- Folio --> <!-- /Folio --> </div>
<!-- PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif">
</div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 5 - us-gaap:LongTermDebtTextBlock--> <div style="font-family:
'Times New Roman',Times,serif"> <div align="left" style="font-size:
10pt; margin-top: 12pt"><b>NOTE 5 — Long-term debt</b>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The
long-term debt of the Company is summarized below: </div> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><i>In thousands of dollars</i>
</div> <div align="center"> <table style="font-size: 10pt;
text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --> <tr valign="bottom"> <td width="76%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"><b>June 28, 2009</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Dec.
28, 2008</b></td> <td> </td> </tr>
<!-- End Table Head --> <!-- Begin Table Body --> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px">Unsecured floating rate notes paid May 2009
</div></td> <td> </td> <td align="left">$</td>
<td align="right">—</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">632,205</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Unsecured
notes bearing fixed rate interest at 5.75% due June 2011 </div></td>
<td> </td> <td> </td> <td align="right">432,375</td>
<td> </td> <td> </td> <td> </td>
<td align="right">498,464</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Unsecured floating
rate term loan due July 2011 </div></td> <td> </td>
<td> </td> <td align="right">280,000</td>
<td> </td> <td> </td> <td> </td>
<td align="right">280,000</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Borrowings under revolving credit agreements expiring
March 2012 </div></td> <td> </td>
<td> </td> <td align="right">2,273,000</td>
<td> </td> <td> </td> <td> </td>
<td align="right">1,907,000</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Unsecured notes bearing
fixed rate interest at 6.375% due April 2012 </div></td> <td> </td>
<td> </td> <td align="right">306,191</td>
<td> </td> <td> </td> <td> </td>
<td align="right">499,269</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Unsecured notes bearing fixed rate interest at 10% due
June 2015 </div></td> <td> </td>
<td> </td> <td align="right">56,086</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Unsecured notes bearing
fixed rate interest at 10% due April 2016 </div></td>
<td> </td> <td> </td> <td align="right">160,978</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Other indebtedness </div></td> <td> </td>
<td> </td> <td align="right">4</td> <td> </td>
<td> </td> <td> </td> <td align="right">4</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total
long-term debt </div></td> <td> </td> <td
align="left">$</td> <td align="right">3,508,634</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">3,816,942</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<!-- End Table Body --> </table> </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">     In
connection with each of its three revolving credit agreements and its term
loan agreement, the Company agreed to provide guarantees from its domestic
wholly-owned subsidiaries in the event that the Company’s credit
ratings from either Moody’s or S&P fell below investment
grade. In the first quarter of 2009, the Company’s credit rating
was downgraded below investment grade by both S&P and Moody’s.
Accordingly, the guarantees were triggered and the existing notes and other
unsecured debt of the Company became structurally subordinated to the revolving
credit agreements and the term loan. </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     During
the first quarter of 2009, the Company repurchased $68.8 million
in principal amount of the floating rate notes in privately negotiated transactions.
In connection with these transactions, the Company recorded a gain of approximately
$1.1 million which is classified in “Other non-operating
items” in the Statement of Income for the first quarter. This gain
is net of $0.6 million reclassified from accumulated other comprehensive
loss for related interest swap agreements in the first quarter. </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">          On
May 5, 2009, the Company completed a private exchange offer relating
to its 5.75% fixed rate notes due June 2011 and its 6.375% fixed
rate notes due April 2012. The Company exchanged approximately $67 million
in principal amount of new 10% senior notes due 2015 for approximately $67 million
principal amount of the 2011 notes, and approximately $193 million
in principal amount of new 10% senior notes due 2016 for approximately $193 million
principal amount of the 2012 notes. </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">          The
new 2015 notes and the new 2016 notes (together, the New Notes) are senior
unsecured obligations and are guaranteed by those Company subsidiaries providing
guarantees under the revolving credit agreements and the term loan agreement.
The New Notes and the subsidiary guarantees have not been and will not be
registered under the Securities Act of 1933, as amended, or any state securities
laws and may not be offered or sold in the United States absent registration
or an applicable exemption from registration requirements. </div> <div
align="left" style="font-size: 10pt; margin-top: 6pt">     In
connection with the exchange transactions and in accordance with Emerging
Issues Task Force Issue No. 96-19 “Debtor’s Accounting
for a Modification or Exchange of Debt Instruments,” (EITF No. 96-19)
the Company recorded a gain of approximately $42.7 million which
is classified in “Other non-operating items” in the Statement
of Income for the second quarter. This gain resulted from recording the New
Notes at fair value as of the time of the exchange and extinguishing the old
notes at their historical book values. Fair value of the New Notes was based
on their trading prices on and shortly after the exchange date. The discount
created by recording the New Notes at fair value instead of face value is
being amortized over the term of the loans to interest expense. </div>
<!-- Folio --> <!-- /Folio --> </div> <!-- PAGEBREAK
--> <div style="font-family: 'Times New Roman',Times,serif"> </div>
</body> </html>
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XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 6 - us-gaap:PensionAndOtherPostretirementBenefitsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>NOTE 6 — Retirement
plans</b> </div> <div align="left" style="font-size: 10pt;
margin-top: 6pt">     The
Company and its subsidiaries have various retirement plans, including plans
established under collective bargaining agreements, under which most full-time
employees are covered. The Gannett Retirement Plan (GRP) is the Company’s
principal retirement plan and covers most U.S. employees of the Company and
its subsidiaries. </div> <div align="left" style="font-size: 10pt;
margin-top: 6pt">     The
Company’s pension costs, which include costs for qualified, nonqualified
and union plans are presented in the following table: </div> <div
align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0"
border="0" cellpadding="0" width="100%"> <!-- Begin Table Head -->
<tr valign="bottom"> <td width="52%"> </td> <td
width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="6"
style="border-bottom: 1px solid #000000"><b>Thirteen Weeks Ended</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Twenty-six
Weeks Ended</b></td> <td> </td> </tr>
<tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June
28,</b></td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 29,</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"><b>June 28,</b></td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June
29,</b></td> <td> </td> </tr> <tr
style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"
style="border-bottom: 0px solid #000000"><i>(in millions of dollars)</i></td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td> </tr> <!-- End Table Head -->
<!-- Begin Table Body --> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Service
cost-benefits earned during the period </div></td> <td> </td>
<td align="left">$</td> <td align="right">3.8</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">19.4</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">8.1</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">43.2</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Interest
cost on benefit obligation </div></td> <td> </td>
<td> </td> <td align="right">44.0</td> <td> </td>
<td> </td> <td> </td> <td align="right">53.1</td>
<td> </td> <td> </td> <td> </td>
<td align="right">89.7</td> <td> </td> <td> </td>
<td> </td> <td align="right">106.7</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Expected return on
plan assets </div></td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(42.8</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(68.4</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(86.3</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(139.0</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom">
<td> <div style="margin-left:15px; text-indent:-15px">Amortization
of prior service cost (credit) </div></td> <td> </td>
<td> </td> <td align="right">0.6</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(3.8</td> <td nowrap="nowrap">)</td>
<td> </td> <td> </td> <td align="right">1.2</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(9.0</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px">Amortization of actuarial loss </div></td>
<td> </td> <td> </td> <td align="right">12.0</td>
<td> </td> <td> </td> <td> </td>
<td align="right">7.6</td> <td> </td> <td> </td>
<td> </td> <td align="right">24.2</td> <td> </td>
<td> </td> <td> </td> <td align="right">15.5</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Pension expense for
Company-sponsored retirement plans </div></td> <td> </td>
<td> </td> <td align="right">17.6</td> <td> </td>
<td> </td> <td> </td> <td align="right">7.9</td>
<td> </td> <td> </td> <td> </td>
<td align="right">36.9</td> <td> </td> <td> </td>
<td> </td> <td align="right">17.4</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Curtailment gain </div></td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(46.5</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(46.5</td> <td nowrap="nowrap">)</td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Settlement gain </div></td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(39.8</td> <td nowrap="nowrap">)</td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Union
and other pension cost </div></td> <td> </td>
<td> </td> <td align="right">1.3</td> <td> </td>
<td> </td> <td> </td> <td align="right">1.8</td>
<td> </td> <td> </td> <td> </td>
<td align="right">2.6</td> <td> </td> <td> </td>
<td> </td> <td align="right">3.6</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom"><!-- Blank Space --> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Pension (benefit) cost </div></td>
<td> </td> <td align="left">$</td> <td
align="right">18.9</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left">$</td> <td align="right">(36.8</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left">$</td> <td align="right">(0.3</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left">$</td> <td align="right">(25.5</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> </tr> <!-- End Table Body -->
</table> </div> <div align="left" style="font-size: 10pt; margin-top:
6pt">     During the first
quarter of 2009, the Company reached an agreement with one of its unions for
a complete withdrawal from the union’s underfunded pension plan
and release from any future obligations with respect thereto. Under the agreement,
the Company made a settlement payment of $7.3 million in May 2009
and will make a payment of $7.7 million in May 2010. As
a result of this agreement, the Company recognized a pre-tax pension settlement
gain of $39.8 million in the first quarter of 2009. </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As
a result of amendments in June 2008 to freeze most benefit accruals
in the GRP and the Gannett Supplemental Retirement Plan, the Company recognized
a net pre tax pension curtailment gain of $46.5 million in the second
quarter of 2008 in accordance with Statement of Financial Accounting Standards
No. 88, “Employers’ Accounting for Settlements
and Curtailments of Defined Benefit Pension Plans and for Termination Benefits.”
</div> </div> </body> </html>
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--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 7 - gci:PostretirementBenefitsOtherThanPensionTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>NOTE 7 — Postretirement
benefits other than pension</b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     The
Company provides health care and life insurance benefits to certain retired
employees who meet age and service requirements. Most of the Company’s
retirees contribute to the cost of these benefits and retiree contributions
are increased as actual benefit costs increase. The Company’s policy
is to fund benefits as claims and premiums are paid. Postretirement benefit
costs for health care and life insurance are presented in the following table:
</div> <div align="center"> <table style="font-size: 10pt;
text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --> <tr valign="bottom"> <td width="52%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="6"
style="border-bottom: 1px solid #000000"><b>Thirteen Weeks Ended</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Twenty-six
Weeks Ended</b></td> <td> </td> </tr>
<tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June
28,</b></td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 29,</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"><b>June 28,</b></td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June
29,</b></td> <td> </td> </tr> <tr
style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"
style="border-bottom: 0px solid #000000"><i>(in millions of dollars)</i></td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td> </tr> <!-- End Table Head -->
<!-- Begin Table Body --> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Service
cost-benefits earned during the period </div></td> <td> </td>
<td align="left">$</td> <td align="right">0.4</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">0.5</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">0.8</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">1.0</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Interest
cost on net benefit obligation </div></td> <td> </td>
<td> </td> <td align="right">3.5</td> <td> </td>
<td> </td> <td> </td> <td align="right">3.5</td>
<td> </td> <td> </td> <td> </td>
<td align="right">7.0</td> <td> </td> <td> </td>
<td> </td> <td align="right">7.0</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Amortization of prior
service credit </div></td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(3.9</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(3.9</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(7.8</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(7.8</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom">
<td> <div style="margin-left:15px; text-indent:-15px">Amortization
of actuarial loss </div></td> <td> </td>
<td> </td> <td align="right">1.4</td> <td> </td>
<td> </td> <td> </td> <td align="right">1.2</td>
<td> </td> <td> </td> <td> </td>
<td align="right">2.8</td> <td> </td> <td> </td>
<td> </td> <td align="right">2.4</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Net periodic postretirement
benefit cost </div></td> <td> </td> <td
align="left">$</td> <td align="right">1.4</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">1.3</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">2.8</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">2.6</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<!-- End Table Body --> </table> </div> <!-- Folio -->
<!-- /Folio --> </div> <!-- PAGEBREAK --> <div style="font-family:
'Times New Roman',Times,serif"> </div> </body> </html>
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Tagged Note 8 - us-gaap:IncomeTaxDisclosureTextBlock--> <div style="font-family:
'Times New Roman',Times,serif"> <div align="left" style="font-size:
10pt; margin-top: 12pt"><b>NOTE 8 — Income taxes</b>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The
total amount of unrecognized tax benefits that, if recognized, would impact
the effective tax rate was approximately $116.3 million as of December 28,
2008 and $106.2 million as of the end of the second quarter of 2009.
This amount reflects the federal tax benefit of state tax deductions. Excluding
the federal tax benefit of state tax deductions, the total amount of unrecognized
tax benefits as of December 28, 2008 was $182 million and
as of June 28, 2009 was $170.4 million. The $11.6 million
decrease reflects a net reduction for prior year tax positions of $14.3 million,
a reduction for lapses of statutes of limitations of $1.1 million,
and additions in the current year of $3.8 million. The reduction
for prior year tax positions was primarily related to favorable settlements
with tax authorities and to currency exchange rate fluctuation. </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The
Company recognizes interest and penalties related to unrecognized tax benefits
as a component of income tax expense. The Company also recognizes interest
income attributable to overpayment of income taxes as a component of income
tax expense. The Company recognized interest and penalty expense (income) of
$(0.3) million and $9 million during the second quarter of 2009 and
2008, respectively, and $(2.3) million and $12.0 million for the
year-to-date 2009 and 2008 periods, respectively. The amount of net accrued
interest and penalties related to uncertain tax benefits as of December 28,
2008 was approximately $72.6 million and as of June 28,
2009, was approximately $70.7 million. </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">     The
Company files income tax returns in the U.S. and various state and foreign
jurisdictions. The 2005 through 2008 tax years remain subject to examination
by the IRS. The 2005 through 2008 tax years generally remain subject to examination
by state authorities, and the years 2003-2008 are subject to examination in
the UK. In addition, tax years prior to 2005 remain subject to examination
by certain states primarily due to the filing of amended tax returns upon
settlement of the IRS examination for these years and due to ongoing audits.
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     It
is reasonably possible that the amount of unrecognized benefits with respect
to certain of the Company’s unrecognized tax positions will significantly
increase or decrease within the next 12 months. These changes may be the result
of settlement of ongoing audits, lapses of statutes of limitations or other
regulatory developments. At this time, the Company estimates that the amount
of its gross unrecognized tax positions may decrease by up to approximately
$42 million within the next 12 months, primarily due to
lapses of statutes of limitations in various jurisdictions and potential settlements
of ongoing audits and negotiations. </div> </div> </body>
</html>
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--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 9 - us-gaap:StockholdersEquityNoteDisclosureTextBlock--> <div
style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>NOTE 9 — Supplemental
shareholders’ equity information</b> </div> <div
align="left" style="font-size: 10pt; margin-top: 6pt">     The
following table summarizes the shareholders’ equity for the 26 weeks
ended June 28, 2009 and June 29, 2008. The redeemable noncontrolling
interest accretion relates to redeemable stock held by a noncontrolling owner
of CareerBuilder that provides a fixed return on the noncontrolling owner’s
investment. </div> <div align="center"> <table style="font-size:
10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --> <tr valign="bottom"> <td width="64%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Gannett
Co., Inc.</b></td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"> </td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Shareholders’</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"><b>Noncontrolling</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"> </td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap"
align="left" style="border-bottom: 0px solid #000000"><i>(in thousands
of dollars)</i></td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Equity</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Interest</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Total
Equity</b></td> <td> </td> </tr> <!--
End Table Head --> <!-- Begin Table Body --> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px"><i>Balance at Dec. 28, 2008</i> </div></td>
<td> </td> <td align="left">$</td> <td
align="right">1,055,882</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">118,806</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">1,174,688</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">Comprehensive income: </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:45px; text-indent:-15px">Net income </div></td>
<td> </td> <td> </td> <td align="right">147,916</td>
<td> </td> <td> </td> <td> </td>
<td align="right">8,140</td> <td> </td> <td> </td>
<td> </td> <td align="right">156,056</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:45px; text-indent:-15px">Less: Redeemable noncontrolling
interest accretion (income not available to shareholders) </div></td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(2,641</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(2,641</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:45px;
text-indent:-15px">Other comprehensive income </div></td> <td> </td>
<td> </td> <td align="right">79,137</td>
<td> </td> <td> </td> <td> </td>
<td align="right">396</td> <td> </td> <td> </td>
<td> </td> <td align="right">79,533</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Dividends declared
</div></td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(18,532</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(18,532</td> <td nowrap="nowrap">)</td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">Stock-based compensation
</div></td> <td> </td> <td> </td>
<td align="right">37,226</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">37,226</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">Acquisitions </div></td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">1,978</td> <td> </td> <td> </td>
<td> </td> <td align="right">1,978</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">Other activity </div></td>
<td> </td> <td> </td> <td align="right">6,312</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">6,312</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px"><i>Balance at
June 28, 2009</i> </div></td> <td> </td>
<td align="left">$</td> <td align="right">1,307,941</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">126,679</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">1,434,620</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<!-- End Table Body --> </table> </div> <!-- Folio -->
<!-- /Folio --> </div> <!-- PAGEBREAK --> <div style="font-family:
'Times New Roman',Times,serif"> <div align="center"> <table style="font-size:
10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --> <tr valign="bottom"> <td width="64%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Gannett
Co., Inc.</b></td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"> </td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Shareholders’</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"><b>Noncontrolling</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"> </td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap"
align="left" style="border-bottom: 0px solid #000000"><i>(in thousands
of dollars)</i></td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Equity</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Interest</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Total
Equity</b></td> <td> </td> </tr> <!--
End Table Head --> <!-- Begin Table Body --> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px"><i>Balance at Dec. 30, 2007</i> </div></td>
<td> </td> <td align="left">$</td> <td
align="right">9,017,159</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">340</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">9,017,499</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">Comprehensive income: </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:45px; text-indent:-15px">Net income (loss) </div></td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(2,098,978</td> <td nowrap="nowrap">)</td>
<td> </td> <td> </td> <td align="right">43</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(2,098,935</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom">
<td> <div style="margin-left:45px; text-indent:-15px">Other comprehensive
loss </div></td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(32,480</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(32,480</td> <td nowrap="nowrap">)</td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">Dividends declared
</div></td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(182,509</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(182,509</td> <td nowrap="nowrap">)</td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">Treasury stock acquired </div></td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(72,764</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(72,764</td> <td nowrap="nowrap">)</td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">Stock-based compensation
</div></td> <td> </td> <td> </td>
<td align="right">13,404</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">13,404</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">Other activity </div></td> <td> </td>
<td> </td> <td align="right">338</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(585</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(247</td> <td nowrap="nowrap">)</td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px"><i>Balance at June 29,
2008</i> </div></td> <td> </td> <td
align="left">$</td> <td align="right">6,644,170</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left">$</td> <td align="right">(202</td> <td
nowrap="nowrap">)</td> <td> </td> <td align="left">$</td>
<td align="right">6,643,968</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<!-- End Table Body --> </table> </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">     The
table below presents the components of comprehensive income for the second
quarter and year-to-date periods of 2009 and 2008. Other comprehensive income
consists primarily of foreign currency translation, pension liability adjustment
and interest rate swap mark-to-market adjustments. </div> <div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0"
cellpadding="0" width="100%"> <!-- Begin Table Head --> <tr valign="bottom">
<td width="52%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px
solid #000000"><b>Thirteen Weeks Ended</b></td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="6"
style="border-bottom: 1px solid #000000"><b>Twenty-six Weeks Ended</b></td>
<td> </td> </tr> <tr style="font-size: 8pt"
valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 28,</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"><b>June 29,</b></td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June
28,</b></td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 29,</b></td>
<td> </td> </tr> <tr style="font-size: 8pt"
valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom:
0px solid #000000"><i>(in thousands of dollars)</i></td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td> </tr> <!-- End Table Head -->
<!-- Begin Table Body --> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net
income (loss) </div></td> <td> </td> <td
align="left">$</td> <td align="right">78,307</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left">$</td>
<td align="right">(2,290,734</td> <td nowrap="nowrap">)</td>
<td> </td> <td align="left">$</td> <td
align="right">156,056</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left">$</td> <td align="right">(2,098,935</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom">
<td> <div style="margin-left:30px; text-indent:-15px">Less: Redeemable
noncontrolling interest accretion<br> (income not available to shareholders)
</div></td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(1,356</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(2,641</td> <td nowrap="nowrap">)</td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Other
comprehensive income (loss) </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">Foreign currency translation adjustment </div></td>
<td> </td> <td> </td> <td align="right">89,402</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(28,681</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">75,111</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(32,698</td> <td nowrap="nowrap">)</td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">Other </div></td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(13,363</td> <td nowrap="nowrap">)</td>
<td> </td> <td> </td> <td align="right">5,260</td>
<td> </td> <td> </td> <td> </td>
<td align="right">4,422</td> <td> </td> <td> </td>
<td> </td> <td align="right">218</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total
other comprehensive income (loss) </div></td> <td> </td>
<td> </td> <td align="right">76,039</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(23,421</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">79,533</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(32,480</td> <td nowrap="nowrap">)</td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Total comprehensive income
(loss) </div></td> <td> </td> <td> </td>
<td align="right">152,990</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(2,314,155</td> <td nowrap="nowrap">)</td>
<td> </td> <td> </td> <td align="right">232,948</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(2,131,415</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Comprehensive income
attributable to the noncontrolling interest </div></td> <td> </td>
<td> </td> <td align="right">9,884</td> <td> </td>
<td> </td> <td> </td> <td align="right">22</td>
<td> </td> <td> </td> <td> </td>
<td align="right">5,895</td> <td> </td> <td> </td>
<td> </td> <td align="right">43</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Comprehensive income (loss) attributable
to Gannett Co., Inc. </div></td> <td> </td>
<td align="left">$</td> <td align="right">143,106</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left">$</td> <td align="right">(2,314,177</td>
<td nowrap="nowrap">)</td> <td> </td> <td
align="left">$</td> <td align="right">227,053</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left">$</td>
<td align="right">(2,131,458</td> <td nowrap="nowrap">)</td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<!-- End Table Body --> </table> </div> </div> </body>
</html>
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XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 10 - us-gaap:FairValueMeasurementInputsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>NOTE 10 —
Fair value measurement</b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     The
Company measures and records in the accompanying condensed consolidated financial
statements certain assets at fair value. SFAS No. 157 establishes
a fair value hierarchy for those instruments measured at fair value that distinguishes
between assumptions based on market data (observable inputs) and the company’s
own assumptions (unobservable inputs). The hierarchy consists of three levels:
</div> <div align="left" style="margin-top: 12pt"> <table width="100%"
border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background:
transparent; color: #000000; text-align: left"> <tr> <td width="3%"></td>
<td width="1%"></td> <td></td> </tr> <tr
valign="top"> <td nowrap="nowrap" align="left">          Level
1 -</td> <td> </td> <td>Quoted market prices
in active markets for identical assets or liabilities;</td> </tr>
</table> </div> <div align="left" style="margin-top: 12pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size:
10pt; background: transparent; color: #000000; text-align: left"> <tr>
<td width="3%"></td> <td width="1%"></td> <td></td>
</tr> <tr valign="top"> <td nowrap="nowrap" align="left">          Level
2 -</td> <td> </td> <td>Inputs other than
Level 1 inputs that are either directly or indirectly observable; and</td>
</tr> </table> </div> <div align="left" style="margin-top:
12pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0"
style="font-size: 10pt; background: transparent; color: #000000; text-align:
left"> <tr> <td width="3%"></td> <td width="1%"></td>
<td></td> </tr> <tr valign="top"> <td nowrap="nowrap"
align="left">          Level
3 -</td> <td> </td> <td>Unobservable inputs
developed using estimates and assumptions developed by the company, which
reflect those that a market participant would use.</td> </tr>
</table> </div> <!-- Folio --> <!-- /Folio --> </div>
<!-- PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The
following table summarizes the financial instruments measured at fair value
in the accompanying condensed consolidated balance sheet as of June 28,
2009 (in thousands): </div> <div align="center"> <table style="font-size:
10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --> <tr valign="bottom"> <td width="52%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="15"><b>Fair
Value Measurements as of</b></td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="15" style="border-bottom: 1px
solid #000000"><b>June 28, 2009</b></td> </tr>
<tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3"
style="border-bottom: 1px solid #000000"><b>Level 1</b></td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3"
style="border-bottom: 1px solid #000000"><b>Level 2</b></td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3"
style="border-bottom: 1px solid #000000"><b>Level 3</b></td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3"
style="border-bottom: 1px solid #000000"><b>Total</b></td>
</tr> <!-- End Table Head --> <!-- Begin Table Body -->
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Employee
compensation related investments </div></td> <td> </td>
<td align="right">$</td> <td colspan="2" align="right">30,226</td>
<td> </td> <td align="right">$</td> <td
colspan="2" align="right">—</td> <td> </td>
<td align="right">$</td> <td colspan="2" align="right">—</td>
<td> </td> <td align="right">$</td> <td
colspan="2" align="right">30,226</td> </tr> <tr valign="bottom">
<td> <div style="margin-left:30px; text-indent:-15px">Sundry investments
</div></td> <td> </td> <td> </td>
<td colspan="2" align="right">21,190</td> <td> </td>
<td> </td> <td colspan="2" align="right">—</td>
<td> </td> <td> </td> <td colspan="2"
align="right">27,350</td> <td> </td> <td> </td>
<td colspan="2" align="right">48,540</td> </tr> <!--
End Table Body --> </table> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     The
level 3 sundry investments are financial instruments held by CareerBuilder.
As discussed in Note 1 above, the Company began consolidating the financial
statements of CareerBuilder in September 2008. No gain or loss was
recognized in the Company’s condensed consolidated statement of
income with respect to these investments since the date of consolidation.
The Company utilized a probability-weighted discounted cash flow technique
to determine the fair value of its level 3 financial instruments. The main
assumptions used in the fair value calculation were the estimated coupon rate
associated with the securities and the discount rate (determined based on
market yields of similar taxable obligations). </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">     The
fair value of the Company’s total long-term debt, determined based
on estimated market prices for similar debt with the same remaining maturities
and similar terms, totaled $2.7 billion at June 28, 2009.
As described in Note 5, the Company recognized the new debt resulting from
the May 2009 private exchange offer at fair value in accordance with
EITF No. 96-19. </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     Certain
assets are measured at fair value on a nonrecurring basis; that is, the instruments
are not measured at fair value on an ongoing basis but are subject to fair
value adjustments only in certain circumstances (for example, when there is
evidence of impairment). During the thirteen weeks ended June 28,
2009, certain publishing goodwill was written down to implied fair value and
long-lived assets held and used were written down to fair value. The valuation
techniques utilized to measure fair value are discussed in Note 3 above. </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The
following table summarizes the nonfinancial assets measured at fair value
on a nonrecurring basis in the accompanying condensed consolidated balance
sheet as of June 28, 2009 (in thousands): </div> <div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0"
cellpadding="0" width="100%"> <!-- Begin Table Head --> <tr valign="bottom">
<td width="52%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="15"><b>Fair Value
Measurements as of</b></td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="15" style="border-bottom: 1px
solid #000000"><b>June 28, 2009</b></td> </tr>
<tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3"
style="border-bottom: 1px solid #000000"><b>Level 1</b></td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3"
style="border-bottom: 1px solid #000000"><b>Level 2</b></td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3"
style="border-bottom: 1px solid #000000"><b>Level 3</b></td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3"
style="border-bottom: 1px solid #000000"><b>Total</b></td>
</tr> <!-- End Table Head --> <!-- Begin Table Body -->
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Goodwill
</div></td> <td> </td> <td align="right">$</td>
<td colspan="2" align="right">—</td> <td> </td>
<td align="right">$</td> <td colspan="2" align="right">—</td>
<td> </td> <td align="right">$</td> <td
colspan="2" align="right">5,719</td> <td> </td>
<td align="right">$</td> <td colspan="2" align="right">5,719</td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">Long-lived assets held and used </div></td>
<td> </td> <td> </td> <td colspan="2"
align="right">—</td> <td> </td> <td> </td>
<td colspan="2" align="right">—</td> <td> </td>
<td> </td> <td colspan="2" align="right">36,929</td>
<td> </td> <td> </td> <td colspan="2"
align="right">36,929</td> </tr> <!-- End Table Body -->
</table> </div> <div align="left" style="font-size: 10pt; margin-top:
6pt">     In addition the
Company holds investments in non-public businesses in which the Company does
not have control and does not exert significant influence. Such investments
are carried at cost and reduced for any impairment losses resulting from periodic
evaluations of the carrying value of the investment. At June 28,
2009 and December 28, 2008, the aggregate carrying amount of such
investments was $16 million. No events or changes in circumstances
have occurred since December 28, 2008 that suggests a significant and adverse
effect on the fair value of such investments. Accordingly, the Company did
not evaluate such investments for impairment in 2009. </div> </div>
</body> </html>
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XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 11 - us-gaap:SegmentReportingDisclosureTextBlock--> <div
style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>NOTE 11 —
Business segment information</b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     The
Company has determined that its reportable segments based on its management
and internal reporting structures are publishing, digital, and broadcasting.
Publishing is the largest component of the Company’s business and
includes U.S. Community Publishing, Newsquest operations in the UK and the
USA TODAY group. The digital segment was established beginning with the third
quarter of 2008 and includes CareerBuilder, ShopLocal, Schedule Star,
Planet Discover, PointRoll and Ripple6 (See Note 1). Results for PointRoll,
Planet Discover and Schedule Star for periods prior to the third
quarter of 2008 have been reclassified from the publishing segment to the
digital segment. Broadcasting includes the Company’s 23 television
stations and Captivate. </div> <!-- Folio --> <!-- /Folio -->
</div> <!-- PAGEBREAK --> <div style="font-family: 'Times New
Roman',Times,serif"> <div align="center"> <table style="font-size:
10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --> <tr valign="bottom"> <td width="64%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="6"
style="border-bottom: 1px solid #000000"><b>Thirteen Weeks Ended</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"> </td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June
28,</b></td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 29,</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"><b>% Inc</b></td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap"
align="left" style="border-bottom: 0px solid #000000"><i>(unaudited,
in thousands of dollars)</i></td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000"><b>2009</b></td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Dec)</b></td>
<td> </td> </tr> <!-- End Table Head -->
<!-- Begin Table Body --> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Net
Operating Revenues:</b> </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Publishing
</div></td> <td> </td> <td align="left">$</td>
<td align="right">1,117,273</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">1,505,413</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(25.8</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px">Digital </div></td> <td> </td>
<td> </td> <td align="right">142,354</td>
<td> </td> <td> </td> <td> </td>
<td align="right">20,008</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">***</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Broadcasting
</div></td> <td> </td> <td> </td>
<td align="right">152,966</td> <td> </td>
<td> </td> <td> </td> <td align="right">192,568</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(20.6</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b><i>Total</i></b>
</div></td> <td> </td> <td align="left">$</td>
<td align="right">1,412,593</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">1,717,989</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(17.8</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> </tr> <tr valign="bottom"><!--
Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px"><b>Operating
Income (Loss) (net of depreciation, amortization and asset impairment and
other charges — See Note 3):</b> </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Publishing </div></td>
<td> </td> <td align="left">$</td> <td
align="right">88,449</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left">$</td> <td align="right">(2,207,296</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">***</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Digital </div></td>
<td> </td> <td> </td> <td align="right">18,406</td>
<td> </td> <td> </td> <td> </td>
<td align="right">4,510</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">***</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Broadcasting
</div></td> <td> </td> <td> </td>
<td align="right">50,233</td> <td> </td>
<td> </td> <td> </td> <td align="right">79,234</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(36.6</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom">
<td> <div style="margin-left:15px; text-indent:-15px">Corporate
</div></td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(14,330</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(9,994</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">43.4</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px"><b><i>Total</i></b>
</div></td> <td> </td> <td align="left">$</td>
<td align="right">142,758</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left">$</td>
<td align="right">(2,133,546</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">***</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<tr valign="bottom"><!-- Blank Space --> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Depreciation,
amortization and asset impairment and other charges:</b> </div></td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Publishing </div></td>
<td> </td> <td align="left">$</td> <td
align="right">86,864</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">2,546,717</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(96.6</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom">
<td> <div style="margin-left:15px; text-indent:-15px">Digital
</div></td> <td> </td> <td> </td>
<td align="right">8,839</td> <td> </td> <td> </td>
<td> </td> <td align="right">1,405</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">***</td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Broadcasting </div></td>
<td> </td> <td> </td> <td align="right">9,667</td>
<td> </td> <td> </td> <td> </td>
<td align="right">10,160</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(4.9</td> <td nowrap="nowrap">)</td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Corporate </div></td> <td> </td>
<td> </td> <td align="right">4,051</td> <td> </td>
<td> </td> <td> </td> <td align="right">5,176</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(21.7</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b><i>Total</i></b>
</div></td> <td> </td> <td align="left">$</td>
<td align="right">109,421</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">2,563,458</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(95.7</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> </tr> <!-- End Table Body -->
</table> </div> <div align="center"> <table style="font-size:
10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --> <tr valign="bottom"> <td width="64%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="6"
style="border-bottom: 1px solid #000000"><b>Twenty-six Weeks Ended</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"> </td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June
28,</b></td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 29,</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"><b>% Inc</b></td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Dec)</b></td>
<td> </td> </tr> <!-- End Table Head -->
<!-- Begin Table Body --> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Net
Operating Revenues:</b> </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Publishing
</div></td> <td> </td> <td align="left">$</td>
<td align="right">2,209,101</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">2,998,209</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(26.3</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px">Digital </div></td> <td> </td>
<td> </td> <td align="right">285,514</td>
<td> </td> <td> </td> <td> </td>
<td align="right">33,901</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">***</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Broadcasting
</div></td> <td> </td> <td> </td>
<td align="right">296,456</td> <td> </td>
<td> </td> <td> </td> <td align="right">362,748</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(18.3</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b><i>Total</i></b>
</div></td> <td> </td> <td align="left">$</td>
<td align="right">2,791,071</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">3,394,858</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(17.8</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> </tr> <tr valign="bottom"><!--
Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px"><b>Operating
Income (Loss) (net of depreciation, amortization and asset impairment and
other charges — See Note 3):</b> </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Publishing </div></td>
<td> </td> <td align="left">$</td> <td
align="right">225,612</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left">$</td> <td align="right">(1,920,902</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">***</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Digital </div></td>
<td> </td> <td> </td> <td align="right">17,206</td>
<td> </td> <td> </td> <td> </td>
<td align="right">3,648</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">***</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Broadcasting
</div></td> <td> </td> <td> </td>
<td align="right">94,379</td> <td> </td>
<td> </td> <td> </td> <td align="right">137,039</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(31.1</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom">
<td> <div style="margin-left:15px; text-indent:-15px">Corporate
</div></td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(28,246</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(25,700</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">9.9</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px"><b><i>Total</i></b>
</div></td> <td> </td> <td align="left">$</td>
<td align="right">308,951</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left">$</td>
<td align="right">(1,805,915</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">***</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Depreciation,
amortization and asset impairment and other charges:</b> </div></td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Publishing </div></td>
<td> </td> <td align="left">$</td> <td
align="right">129,019</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">2,600,719</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(95.0</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom">
<td> <div style="margin-left:15px; text-indent:-15px">Digital
</div></td> <td> </td> <td> </td>
<td align="right">17,930</td> <td> </td>
<td> </td> <td> </td> <td align="right">2,782</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">***</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Broadcasting
</div></td> <td> </td> <td> </td>
<td align="right">18,270</td> <td> </td>
<td> </td> <td> </td> <td align="right">18,655</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(2.1</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom">
<td> <div style="margin-left:15px; text-indent:-15px">Corporate
</div></td> <td> </td> <td> </td>
<td align="right">8,103</td> <td> </td> <td> </td>
<td> </td> <td align="right">9,144</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(11.4</td> <td nowrap="nowrap">)</td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px"><b><i>Total</i></b>
</div></td> <td> </td> <td align="left">$</td>
<td align="right">173,322</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">2,631,300</td> <td> </td> <td> </td>
<td> </td> <td align="right">93.4</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<!-- End Table Body --> </table> </div> <!-- Folio -->
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'Times New Roman',Times,serif"> </div> </body> </html>
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XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 12 - us-gaap:DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>NOTE 12 —
Derivative Instruments and Hedging Activities</b> </div> <div
align="left" style="font-size: 10pt; margin-top: 6pt">     In
August 2007, the Company entered into three interest rate swap agreements
totaling a notional amount of $750 million in order to mitigate the
volatility of interest rates. These agreements effectively fixed the interest
rate on the $750 million in floating rate notes due May 2009 at 5.0125%.
These instruments were designated as cash flow hedges in accordance with SFAS
No. 133, “Accounting for Derivative Instruments and Hedging Activities,”
and changes in fair value are recorded through accumulated other comprehensive
loss with a corresponding adjustment to liabilities. As a result of the strategic
redemptions of part of the floating rate notes during the fourth quarter of
2008 and first quarter of 2009, the cash flow hedging treatment was discontinued
for interest rate swaps associated with approximately $186.6 million
of notional value on the retired floating rate notes. Amounts recorded in
accumulated other comprehensive loss related to the discontinued cash flow
hedges were reclassified into earnings and subsequent changes were recorded
through earnings. The interest rate swap agreements expired concurrent with
the maturity of the floating rate notes in May 2009. Second quarter
and year-to-date 2009 expense associated with the derivatives designated as
hedges under SFAS No. 133, which is classified as “Interest
expense” on the Company’s Condensed Consolidated Income
Statement, was $3.2 million and $7.7 million, respectively. Second
quarter and year-to-date 2009 expense associated with the derivatives not
designated as hedges under SFAS No. 133, which is classified as “Other
non-operating items” on the Company’s Condensed Consolidated
Income Statement, was $0.6 million. </div> </div> </body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 13 - us-gaap:EarningsPerShareTextBlock--> <div style="font-family:
'Times New Roman',Times,serif"> <div align="left" style="font-size:
10pt; margin-top: 12pt"><b>NOTE 13 — Earnings (loss) per
share</b> </div> <div align="left" style="font-size: 10pt;
margin-top: 6pt">     The
Company’s earnings (loss) per share (basic and diluted)
are presented below: </div> <div align="center"> <table style="font-size:
10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --> <tr valign="bottom"> <td width="52%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap"
align="left" style="border-bottom: 0px solid #000000"> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="6"
style="border-bottom: 1px solid #000000"><b>Thirteen Weeks Ended</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Twenty-six
Weeks Ended</b></td> <td> </td> </tr>
<tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June
28,</b></td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 29,</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"><b>June 28,</b></td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June
29,</b></td> <td> </td> </tr> <tr
style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"
style="border-bottom: 0px solid #000000">(in thousands except per share
amounts)</td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td> </tr> <!-- End Table Head -->
<!-- Begin Table Body --> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net
income (loss) attributable to Gannett Co., Inc. </div></td>
<td> </td> <td align="left">$</td> <td
align="right">70,481</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left">$</td> <td align="right">(2,290,756</td>
<td nowrap="nowrap">)</td> <td> </td> <td
align="left">$</td> <td align="right">147,916</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left">$</td>
<td align="right">(2,098,978</td> <td nowrap="nowrap">)</td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<tr valign="bottom"><!-- Blank Space --> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px"><b>Weighted average number of common shares outstanding
— basic</b> </div></td> <td> </td>
<td> </td> <td align="right">233,359</td>
<td> </td> <td> </td> <td> </td>
<td align="right">228,325</td> <td> </td>
<td> </td> <td> </td> <td align="right">231,464</td>
<td> </td> <td> </td> <td> </td>
<td align="right">228,772</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px"><i>Effect of
dilutive securities</i> </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Stock options </div></td> <td> </td>
<td> </td> <td align="right">344</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">415</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Restricted
stock </div></td> <td> </td> <td> </td>
<td align="right">1,042</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">969</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Weighted average number of common shares outstanding
— diluted </div></td> <td> </td>
<td> </td> <td align="right">234,745</td>
<td> </td> <td> </td> <td> </td>
<td align="right">228,325</td> <td> </td>
<td> </td> <td> </td> <td align="right">232,848</td>
<td> </td> <td> </td> <td> </td>
<td align="right">228,772</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<tr valign="bottom"><!-- Blank Space --> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Earnings (loss) per
share — Basic </div></td> <td> </td>
<td align="left">$</td> <td align="right">0.30</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left">$</td> <td align="right">(10.03</td> <td
nowrap="nowrap">)</td> <td> </td> <td align="left">$</td>
<td align="right">0.64</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left">$</td> <td align="right">(9.17</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> </tr> <tr valign="bottom"><!--
Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Earnings
(loss) per share — Diluted </div></td> <td> </td>
<td align="left">$</td> <td align="right">0.30</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left">$</td> <td align="right">(10.03</td> <td
nowrap="nowrap">)</td> <td> </td> <td align="left">$</td>
<td align="right">0.64</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left">$</td> <td align="right">(9.17</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> </tr> <!-- End Table Body -->
</table> </div> </div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 14 - us-gaap:CommitmentsAndContingenciesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>NOTE 14 </b>—
<b>Litigation</b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     The
Company and a number of its subsidiaries are defendants in judicial and administrative
proceedings involving matters incidental to their business. The Company’s
management does not believe that any material liability will be imposed as
a result of these matters. </div> </div> </body> </html>
N/A
false
--12-27
2009-06-28
10-Q
0000039899
234751324
Yes
Large
Accelerated Filer 5020320713
GANNETT
CO., INC. No
Yes
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