false--12-31Q320200001579684trueP3YP1MP3Mus-gaap:AccountingStandardsUpdate201602Member27729100037707200019923000237490000.010.01200000000020000000001293862581374786961289915441363057200.070.08245724000000P5Yus-gaap:OtherLiabilitiesCurrentus-gaap:OtherLiabilitiesCurrent03947141172976 0001579684 2020-01-01 2020-09-30 0001579684 2020-11-02 0001579684 gci:PreferredStockPurchaseRightsMember 2020-01-01 2020-09-30 0001579684 us-gaap:CommonStockMember 2020-01-01 2020-09-30 0001579684 2019-12-31 0001579684 2020-09-30 0001579684 2019-07-01 2019-09-29 0001579684 2020-07-01 2020-09-30 0001579684 2018-12-31 2019-09-29 0001579684 gci:CirculationMember 2020-01-01 2020-09-30 0001579684 gci:AdvertisingandMarketingMember 2019-07-01 2019-09-29 0001579684 gci:AdvertisingandMarketingMember 2018-12-31 2019-09-29 0001579684 gci:AdvertisingandMarketingMember 2020-01-01 2020-09-30 0001579684 gci:OtherRevenueMember 2018-12-31 2019-09-29 0001579684 gci:CirculationMember 2019-07-01 2019-09-29 0001579684 gci:OtherRevenueMember 2019-07-01 2019-09-29 0001579684 gci:OtherRevenueMember 2020-01-01 2020-09-30 0001579684 gci:AdvertisingandMarketingMember 2020-07-01 2020-09-30 0001579684 gci:CirculationMember 2020-07-01 2020-09-30 0001579684 gci:OtherRevenueMember 2020-07-01 2020-09-30 0001579684 gci:CirculationMember 2018-12-31 2019-09-29 0001579684 us-gaap:TreasuryStockMember 2020-06-30 0001579684 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0001579684 us-gaap:TreasuryStockMember 2019-06-30 0001579684 us-gaap:AdditionalPaidInCapitalMember 2019-07-01 2019-09-29 0001579684 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-07-01 2019-09-29 0001579684 us-gaap:CommonStockMember 2020-06-30 0001579684 us-gaap:AdditionalPaidInCapitalMember 2020-07-01 2020-09-30 0001579684 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-30 0001579684 us-gaap:TreasuryStockMember 2019-09-29 0001579684 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-29 0001579684 us-gaap:TreasuryStockMember 2020-09-30 0001579684 us-gaap:CommonStockMember 2020-09-30 0001579684 2019-06-30 0001579684 us-gaap:CommonStockMember 2020-07-01 2020-09-30 0001579684 us-gaap:RetainedEarningsMember 2019-09-29 0001579684 us-gaap:CommonStockMember 2019-09-29 0001579684 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0001579684 us-gaap:RetainedEarningsMember 2020-09-30 0001579684 us-gaap:CommonStockMember 2019-06-30 0001579684 us-gaap:RetainedEarningsMember 2020-07-01 2020-09-30 0001579684 us-gaap:CommonStockMember 2019-07-01 2019-09-29 0001579684 us-gaap:RetainedEarningsMember 2019-06-30 0001579684 us-gaap:AdditionalPaidInCapitalMember 2020-09-30 0001579684 us-gaap:TreasuryStockMember 2019-07-01 2019-09-29 0001579684 us-gaap:TreasuryStockMember 2020-07-01 2020-09-30 0001579684 2020-06-30 0001579684 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001579684 us-gaap:AdditionalPaidInCapitalMember 2019-09-29 0001579684 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-09-30 0001579684 2019-09-29 0001579684 us-gaap:RetainedEarningsMember 2019-07-01 2019-09-29 0001579684 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-07-01 2020-09-30 0001579684 us-gaap:RetainedEarningsMember 2020-06-30 0001579684 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember us-gaap:RetainedEarningsMember 2018-12-30 0001579684 us-gaap:TreasuryStockMember 2018-12-31 2019-09-29 0001579684 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-09-30 0001579684 us-gaap:TreasuryStockMember 2019-12-31 0001579684 us-gaap:RetainedEarningsMember 2018-12-31 2019-09-29 0001579684 us-gaap:CommonStockMember 2018-12-30 0001579684 us-gaap:CommonStockMember 2020-01-01 2020-09-30 0001579684 us-gaap:TreasuryStockMember 2020-01-01 2020-09-30 0001579684 2018-12-30 0001579684 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001579684 us-gaap:CommonStockMember 2019-12-31 0001579684 us-gaap:RetainedEarningsMember 2019-12-31 0001579684 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-30 0001579684 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001579684 us-gaap:CommonStockMember 2018-12-31 2019-09-29 0001579684 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember 2018-12-30 0001579684 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 2019-09-29 0001579684 us-gaap:AdditionalPaidInCapitalMember 2018-12-30 0001579684 us-gaap:TreasuryStockMember 2018-12-30 0001579684 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 2019-09-29 0001579684 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-09-30 0001579684 us-gaap:RetainedEarningsMember 2018-12-30 0001579684 us-gaap:RetainedEarningsMember 2020-01-01 2020-09-30 0001579684 2018-01-01 2018-09-30 0001579684 country:GB 2020-09-30 0001579684 gci:AdvertisingandMarketingMember srt:RestatementAdjustmentMember 2019-07-01 2019-09-29 0001579684 gci:AdvertisingandMarketingMember srt:RestatementAdjustmentMember 2018-12-31 2019-09-29 0001579684 gci:AdvertisingandOtherMember 2020-01-01 2020-09-30 0001579684 gci:AdvertisingandOtherMember 2020-09-30 0001579684 gci:CirculationMember 2019-12-31 0001579684 gci:CirculationMember 2020-09-30 0001579684 gci:AdvertisingandOtherMember 2019-12-31 0001579684 gci:PrintMember 2018-12-31 2019-09-29 0001579684 gci:DigitalAdvertisingandMarketingServicesMember 2020-01-01 2020-09-30 0001579684 gci:PrintMember 2019-07-01 2019-09-29 0001579684 gci:DigitalAdvertisingandMarketingServicesMember 2020-07-01 2020-09-30 0001579684 gci:PrintMember 2020-07-01 2020-09-30 0001579684 gci:PrintMember 2020-01-01 2020-09-30 0001579684 us-gaap:AdvertisingMember 2018-12-31 2019-09-29 0001579684 us-gaap:AdvertisingMember 2020-07-01 2020-09-30 0001579684 gci:DigitalAdvertisingandMarketingServicesMember 2019-07-01 2019-09-29 0001579684 gci:DigitalAdvertisingandMarketingServicesMember 2018-12-31 2019-09-29 0001579684 us-gaap:AdvertisingMember 2020-01-01 2020-09-30 0001579684 us-gaap:AdvertisingMember 2019-07-01 2019-09-29 0001579684 srt:MaximumMember 2020-01-01 2020-09-30 0001579684 us-gaap:NonUsMember 2020-07-01 2020-09-30 0001579684 srt:MinimumMember 2020-01-01 2020-09-30 0001579684 us-gaap:NonUsMember 2020-01-01 2020-09-30 0001579684 srt:MinimumMember 2020-09-30 0001579684 srt:MaximumMember 2020-09-30 0001579684 gci:PandemicMember 2020-07-01 2020-09-30 0001579684 gci:GannettCo.IncMember 2019-07-01 2019-09-29 0001579684 gci:GannettCo.IncMember 2018-12-31 2019-09-29 0001579684 gci:ThirdPartyMember gci:CertainPublicationsandBusinessesMember 2019-12-31 0001579684 gci:CertainPublicationsandBusinessesMember 2018-12-31 2019-12-31 0001579684 country:US 2020-09-30 0001579684 gci:GannettCo.IncMember 2019-11-19 2019-11-19 0001579684 gci:GannettCo.IncMember 2019-11-19 0001579684 gci:CertainPublicationsandBusinessesMember 2019-12-31 0001579684 gci:AdvertisingandMarketingMember 2019-12-31 0001579684 gci:PublishingSegmentMember 2019-12-31 0001579684 gci:PublishingSegmentMember 2020-09-30 0001579684 gci:PublishingSegmentMember 2020-01-01 2020-09-30 0001579684 gci:AdvertisingandMarketingMember 2020-01-01 2020-09-30 0001579684 gci:AdvertisingandMarketingMember 2020-09-30 0001579684 2020-04-01 2020-06-30 0001579684 srt:MaximumMember us-gaap:MeasurementInputLongTermRevenueGrowthRateMember 2020-09-30 0001579684 srt:MinimumMember us-gaap:MeasurementInputDiscountRateMember 2020-09-30 0001579684 gci:DomesticPublishingMember 2020-04-01 2020-06-30 0001579684 srt:MaximumMember us-gaap:MeasurementInputDiscountRateMember 2020-09-30 0001579684 gci:NewspaperReportingUnitMember 2020-01-01 2020-09-30 0001579684 gci:NewspaperReportingUnitMember 2020-04-01 2020-06-30 0001579684 srt:MinimumMember us-gaap:MeasurementInputLongTermRevenueGrowthRateMember 2020-09-30 0001579684 gci:MarketingSolutionsMember 2020-04-01 2020-06-30 0001579684 gci:SubscriberRelationshipsMember 2019-12-31 0001579684 gci:SubscriberRelationshipsMember 2020-09-30 0001579684 us-gaap:CustomerRelationshipsMember 2019-12-31 0001579684 us-gaap:OtherIntangibleAssetsMember 2020-09-30 0001579684 gci:MastheadsMember 2019-12-31 0001579684 gci:MastheadsMember 2020-09-30 0001579684 gci:AdviserRelationshipsMember 2019-12-31 0001579684 us-gaap:CustomerRelationshipsMember 2020-09-30 0001579684 us-gaap:OtherIntangibleAssetsMember 2019-12-31 0001579684 gci:AdviserRelationshipsMember 2020-09-30 0001579684 gci:DomesticPublishingMember 2020-01-01 2020-09-30 0001579684 gci:PublishingSegmentMember 2018-12-31 2019-09-29 0001579684 us-gaap:CorporateNonSegmentMember 2018-12-31 2019-09-29 0001579684 gci:PublishingSegmentMember 2019-07-01 2019-09-29 0001579684 gci:PublishingSegmentMember 2020-07-01 2020-09-30 0001579684 us-gaap:EmployeeSeveranceMember 2020-09-30 0001579684 us-gaap:EmployeeSeveranceMember 2020-01-01 2020-09-30 0001579684 us-gaap:EmployeeSeveranceMember 2019-12-31 0001579684 us-gaap:CorporateNonSegmentMember us-gaap:FacilityClosingMember 2020-07-01 2020-09-30 0001579684 us-gaap:FacilityClosingMember 2018-12-31 2019-09-29 0001579684 us-gaap:OperatingSegmentsMember us-gaap:FacilityClosingMember gci:MarketingSolutionsMember 2020-01-01 2020-09-30 0001579684 us-gaap:OperatingSegmentsMember us-gaap:FacilityClosingMember gci:PublishingSegmentMember 2020-01-01 2020-09-30 0001579684 us-gaap:OperatingSegmentsMember us-gaap:FacilityClosingMember gci:MarketingSolutionsMember 2018-12-31 2019-09-29 0001579684 us-gaap:OperatingSegmentsMember us-gaap:FacilityClosingMember gci:PublishingSegmentMember 2019-07-01 2019-09-29 0001579684 us-gaap:OperatingSegmentsMember us-gaap:FacilityClosingMember gci:MarketingSolutionsMember 2020-07-01 2020-09-30 0001579684 us-gaap:CorporateNonSegmentMember us-gaap:FacilityClosingMember 2019-07-01 2019-09-29 0001579684 us-gaap:OperatingSegmentsMember us-gaap:FacilityClosingMember gci:MarketingSolutionsMember 2019-07-01 2019-09-29 0001579684 us-gaap:FacilityClosingMember 2019-07-01 2019-09-29 0001579684 us-gaap:OperatingSegmentsMember us-gaap:FacilityClosingMember gci:PublishingSegmentMember 2018-12-31 2019-09-29 0001579684 us-gaap:CorporateNonSegmentMember us-gaap:FacilityClosingMember 2018-12-31 2019-09-29 0001579684 us-gaap:CorporateNonSegmentMember us-gaap:FacilityClosingMember 2020-01-01 2020-09-30 0001579684 us-gaap:FacilityClosingMember 2020-07-01 2020-09-30 0001579684 us-gaap:OperatingSegmentsMember us-gaap:FacilityClosingMember gci:PublishingSegmentMember 2020-07-01 2020-09-30 0001579684 us-gaap:FacilityClosingMember 2020-01-01 2020-09-30 0001579684 us-gaap:OperatingSegmentsMember us-gaap:EmployeeSeveranceMember gci:PublishingSegmentMember 2019-07-01 2019-09-29 0001579684 us-gaap:OperatingSegmentsMember us-gaap:EmployeeSeveranceMember gci:MarketingSolutionsMember 2019-07-01 2019-09-29 0001579684 us-gaap:CorporateNonSegmentMember us-gaap:EmployeeSeveranceMember 2020-07-01 2020-09-30 0001579684 us-gaap:OperatingSegmentsMember us-gaap:EmployeeSeveranceMember gci:MarketingSolutionsMember 2020-01-01 2020-09-30 0001579684 us-gaap:OperatingSegmentsMember us-gaap:EmployeeSeveranceMember gci:PublishingSegmentMember 2020-01-01 2020-09-30 0001579684 us-gaap:OperatingSegmentsMember us-gaap:EmployeeSeveranceMember gci:PublishingSegmentMember 2018-12-31 2019-09-29 0001579684 us-gaap:OperatingSegmentsMember us-gaap:EmployeeSeveranceMember gci:MarketingSolutionsMember 2020-07-01 2020-09-30 0001579684 us-gaap:CorporateNonSegmentMember us-gaap:EmployeeSeveranceMember 2018-12-31 2019-09-29 0001579684 us-gaap:OperatingSegmentsMember us-gaap:EmployeeSeveranceMember gci:PublishingSegmentMember 2020-07-01 2020-09-30 0001579684 us-gaap:OperatingSegmentsMember us-gaap:EmployeeSeveranceMember gci:MarketingSolutionsMember 2018-12-31 2019-09-29 0001579684 us-gaap:EmployeeSeveranceMember 2020-07-01 2020-09-30 0001579684 us-gaap:EmployeeSeveranceMember 2019-07-01 2019-09-29 0001579684 us-gaap:CorporateNonSegmentMember us-gaap:EmployeeSeveranceMember 2019-07-01 2019-09-29 0001579684 us-gaap:CorporateNonSegmentMember us-gaap:EmployeeSeveranceMember 2020-01-01 2020-09-30 0001579684 us-gaap:EmployeeSeveranceMember 2018-12-31 2019-09-29 0001579684 gci:ConvertibleSeniorNotesMember us-gaap:ConvertibleDebtMember 2018-04-09 0001579684 gci:ApolloTermLoanMember us-gaap:SecuredDebtMember 2020-09-30 0001579684 gci:ConvertibleSeniorNotesMember us-gaap:ConvertibleDebtMember 2018-12-31 2019-12-31 0001579684 gci:ApolloTermLoanMember us-gaap:SecuredDebtMember 2020-07-01 2020-09-30 0001579684 gci:ApolloTermLoanMember us-gaap:SecuredDebtMember 2018-12-31 2019-09-30 0001579684 gci:ApolloTermLoanMember us-gaap:SecuredDebtMember 2020-01-01 2020-09-30 0001579684 gci:Period2Member gci:ApolloTermLoanMember us-gaap:SecuredDebtMember 2020-01-01 2020-09-30 0001579684 gci:Period1Member gci:ApolloTermLoanMember us-gaap:SecuredDebtMember 2020-01-01 2020-09-30 0001579684 gci:ApolloTermLoanMember us-gaap:SecuredDebtMember 2019-11-30 0001579684 srt:MaximumMember gci:ApolloTermLoanMember us-gaap:SecuredDebtMember 2019-11-30 0001579684 gci:ApolloTermLoanMember us-gaap:SecuredDebtMember 2019-11-01 2019-11-30 0001579684 gci:ConvertibleSeniorNotesMember us-gaap:ConvertibleDebtMember 2020-09-30 0001579684 gci:ConvertibleSeniorNotesMember us-gaap:ConvertibleDebtMember 2018-04-09 2018-04-09 0001579684 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2020-01-01 2020-09-30 0001579684 us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 2019-09-29 0001579684 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2018-12-31 2019-09-29 0001579684 us-gaap:PensionPlansDefinedBenefitMember 2020-01-01 2020-09-30 0001579684 us-gaap:PensionPlansDefinedBenefitMember 2020-07-01 2020-09-30 0001579684 us-gaap:PensionPlansDefinedBenefitMember 2019-07-01 2019-09-29 0001579684 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2019-07-01 2019-09-29 0001579684 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2020-07-01 2020-09-30 0001579684 srt:ScenarioForecastMember country:US us-gaap:PensionPlansDefinedBenefitMember us-gaap:SubsequentEventMember 2021-01-01 2021-12-31 0001579684 gci:RestrictedStockGrantsMember 2020-01-01 2020-09-30 0001579684 gci:RestrictedStockGrantsMember 2020-09-30 0001579684 gci:RestrictedStockGrantsMember 2019-09-29 0001579684 gci:RestrictedStockGrantsMember 2018-12-31 2019-09-29 0001579684 gci:RestrictedStockGrantsMember 2018-12-30 0001579684 gci:RestrictedStockGrantsMember 2019-12-31 0001579684 gci:RestrictedStockUnitsAndPerformanceStockUnitsMember gci:LegacyGannettMember 2020-01-01 2020-09-30 0001579684 gci:RestrictedStockUnitsAndPerformanceStockUnitsMember gci:LegacyGannettMember 2020-09-30 0001579684 gci:RestrictedStockUnitsAndPerformanceStockUnitsMember gci:LegacyGannettMember 2019-12-31 0001579684 2018-12-31 2019-12-31 0001579684 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-12-30 0001579684 us-gaap:AccumulatedTranslationAdjustmentMember 2018-12-30 0001579684 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-09-29 0001579684 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-12-31 2019-09-29 0001579684 us-gaap:AccumulatedTranslationAdjustmentMember 2019-09-29 0001579684 us-gaap:AccumulatedTranslationAdjustmentMember 2018-12-31 2019-09-29 0001579684 us-gaap:StockOptionMember 2020-01-01 2020-09-30 0001579684 us-gaap:WarrantMember 2020-01-01 2020-09-30 0001579684 us-gaap:RestrictedStockMember 2020-07-01 2020-09-30 0001579684 us-gaap:StockOptionMember 2018-12-31 2019-09-29 0001579684 us-gaap:RestrictedStockMember 2018-12-31 2019-09-29 0001579684 us-gaap:WarrantMember 2019-07-01 2019-09-29 0001579684 us-gaap:WarrantMember 2020-07-01 2020-09-30 0001579684 us-gaap:WarrantMember 2018-12-31 2019-09-29 0001579684 us-gaap:RestrictedStockMember 2019-07-01 2019-09-29 0001579684 us-gaap:StockOptionMember 2019-07-01 2019-09-29 0001579684 us-gaap:StockOptionMember 2020-07-01 2020-09-30 0001579684 us-gaap:RestrictedStockMember 2020-01-01 2020-09-30 0001579684 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-09-30 0001579684 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-01-01 2020-09-30 0001579684 us-gaap:AccumulatedTranslationAdjustmentMember 2020-09-30 0001579684 us-gaap:AccumulatedTranslationAdjustmentMember 2020-01-01 2020-09-30 0001579684 us-gaap:AccumulatedTranslationAdjustmentMember 2019-12-31 0001579684 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-12-31 0001579684 srt:ScenarioPreviouslyReportedMember srt:ManagementMember gci:A2018OptionsMember 2019-09-29 0001579684 srt:ManagementMember gci:A2014OptionsMember 2020-09-30 0001579684 srt:ManagementMember gci:A2018OptionsMember 2020-09-30 0001579684 srt:ScenarioPreviouslyReportedMember srt:ManagementMember gci:A2014OptionsMember 2020-09-30 0001579684 2020-04-06 0001579684 srt:ManagementMember gci:A2015OptionsMember 2020-01-01 2020-09-30 0001579684 srt:ScenarioPreviouslyReportedMember srt:ManagementMember gci:A2016OptionsMember 2020-09-30 0001579684 srt:ManagementMember gci:A2014OptionsMember 2019-06-30 0001579684 gci:ShareRepurchaseProgramMember 2017-05-17 0001579684 srt:ManagementMember gci:A2016OptionsMember 2020-01-01 2020-09-30 0001579684 srt:ManagementMember gci:A2018OptionsMember 2019-09-29 0001579684 srt:ScenarioPreviouslyReportedMember srt:ManagementMember gci:A2015OptionsMember 2019-09-29 0001579684 srt:ManagementMember gci:A2018OptionsMember 2020-01-01 2020-09-30 0001579684 srt:ScenarioPreviouslyReportedMember srt:ManagementMember gci:A2014OptionsMember 2019-06-30 0001579684 srt:ManagementMember gci:A2014OptionsMember 2020-01-01 2020-09-30 0001579684 srt:ScenarioPreviouslyReportedMember srt:ManagementMember gci:A2016OptionsMember 2019-09-29 0001579684 srt:ManagementMember gci:A2016OptionsMember 2020-09-30 0001579684 srt:ManagementMember gci:A2015OptionsMember 2019-09-29 0001579684 srt:ScenarioPreviouslyReportedMember srt:ManagementMember gci:A2018OptionsMember 2020-09-30 0001579684 srt:ScenarioPreviouslyReportedMember srt:ManagementMember gci:A2015OptionsMember 2020-09-30 0001579684 srt:ManagementMember gci:A2016OptionsMember 2019-09-29 0001579684 srt:ManagementMember gci:A2015OptionsMember 2020-09-30 0001579684 us-gaap:FairValueMeasurementsNonrecurringMember 2020-09-30 0001579684 us-gaap:FairValueMeasurementsNonrecurringMember 2019-12-31 0001579684 us-gaap:CorporateNonSegmentMember gci:OtherRevenueMember 2018-12-31 2019-09-29 0001579684 us-gaap:OperatingSegmentsMember gci:PublishingSegmentMember 2018-12-31 2019-09-29 0001579684 us-gaap:OperatingSegmentsMember gci:AdvertisingandMarketingMember gci:PublishingSegmentMember 2018-12-31 2019-09-29 0001579684 us-gaap:OperatingSegmentsMember gci:OtherRevenueMember gci:PublishingSegmentMember 2018-12-31 2019-09-29 0001579684 us-gaap:IntersegmentEliminationMember gci:AdvertisingandMarketingMember 2018-12-31 2019-09-29 0001579684 us-gaap:OperatingSegmentsMember gci:CirculationMember gci:MarketingSolutionsMember 2018-12-31 2019-09-29 0001579684 us-gaap:IntersegmentEliminationMember gci:AdvertisingandMarketingMember gci:MarketingSolutionsMember 2018-12-31 2019-09-29 0001579684 us-gaap:OperatingSegmentsMember gci:MarketingSolutionsMember 2018-12-31 2019-09-29 0001579684 us-gaap:IntersegmentEliminationMember 2018-12-31 2019-09-29 0001579684 us-gaap:OperatingSegmentsMember gci:CirculationMember gci:PublishingSegmentMember 2018-12-31 2019-09-29 0001579684 us-gaap:OperatingSegmentsMember gci:AdvertisingandMarketingMember gci:MarketingSolutionsMember 2018-12-31 2019-09-29 0001579684 us-gaap:CorporateNonSegmentMember gci:AdvertisingandMarketingMember 2018-12-31 2019-09-29 0001579684 us-gaap:CorporateNonSegmentMember gci:CirculationMember 2018-12-31 2019-09-29 0001579684 us-gaap:IntersegmentEliminationMember gci:AdvertisingandMarketingMember gci:PublishingSegmentMember 2018-12-31 2019-09-29 0001579684 us-gaap:OperatingSegmentsMember gci:OtherRevenueMember gci:MarketingSolutionsMember 2018-12-31 2019-09-29 0001579684 us-gaap:IntersegmentEliminationMember gci:AdvertisingandMarketingMember gci:PublishingSegmentMember 2019-07-01 2019-09-29 0001579684 us-gaap:OperatingSegmentsMember gci:OtherRevenueMember gci:MarketingSolutionsMember 2019-07-01 2019-09-29 0001579684 us-gaap:OperatingSegmentsMember gci:PublishingSegmentMember 2019-07-01 2019-09-29 0001579684 us-gaap:CorporateNonSegmentMember gci:CirculationMember 2019-07-01 2019-09-29 0001579684 us-gaap:CorporateNonSegmentMember 2019-07-01 2019-09-29 0001579684 us-gaap:IntersegmentEliminationMember gci:AdvertisingandMarketingMember 2019-07-01 2019-09-29 0001579684 us-gaap:IntersegmentEliminationMember gci:AdvertisingandMarketingMember gci:MarketingSolutionsMember 2019-07-01 2019-09-29 0001579684 us-gaap:OperatingSegmentsMember gci:OtherRevenueMember gci:PublishingSegmentMember 2019-07-01 2019-09-29 0001579684 us-gaap:OperatingSegmentsMember gci:CirculationMember gci:PublishingSegmentMember 2019-07-01 2019-09-29 0001579684 us-gaap:OperatingSegmentsMember gci:AdvertisingandMarketingMember gci:MarketingSolutionsMember 2019-07-01 2019-09-29 0001579684 us-gaap:OperatingSegmentsMember gci:CirculationMember gci:MarketingSolutionsMember 2019-07-01 2019-09-29 0001579684 us-gaap:CorporateNonSegmentMember gci:OtherRevenueMember 2019-07-01 2019-09-29 0001579684 us-gaap:IntersegmentEliminationMember 2019-07-01 2019-09-29 0001579684 us-gaap:OperatingSegmentsMember gci:AdvertisingandMarketingMember gci:PublishingSegmentMember 2019-07-01 2019-09-29 0001579684 us-gaap:CorporateNonSegmentMember gci:AdvertisingandMarketingMember 2019-07-01 2019-09-29 0001579684 us-gaap:OperatingSegmentsMember gci:MarketingSolutionsMember 2019-07-01 2019-09-29 0001579684 us-gaap:CorporateNonSegmentMember 2020-07-01 2020-09-30 0001579684 us-gaap:OperatingSegmentsMember gci:AdvertisingandMarketingMember gci:PublishingSegmentMember 2020-07-01 2020-09-30 0001579684 us-gaap:CorporateNonSegmentMember gci:AdvertisingandMarketingMember 2020-07-01 2020-09-30 0001579684 us-gaap:OperatingSegmentsMember gci:CirculationMember gci:MarketingSolutionsMember 2020-07-01 2020-09-30 0001579684 us-gaap:OperatingSegmentsMember gci:PublishingSegmentMember 2020-07-01 2020-09-30 0001579684 us-gaap:IntersegmentEliminationMember gci:AdvertisingandMarketingMember gci:MarketingSolutionsMember 2020-07-01 2020-09-30 0001579684 us-gaap:IntersegmentEliminationMember gci:AdvertisingandMarketingMember gci:PublishingSegmentMember 2020-07-01 2020-09-30 0001579684 us-gaap:OperatingSegmentsMember gci:MarketingSolutionsMember 2020-07-01 2020-09-30 0001579684 us-gaap:OperatingSegmentsMember gci:AdvertisingandMarketingMember gci:MarketingSolutionsMember 2020-07-01 2020-09-30 0001579684 us-gaap:OperatingSegmentsMember gci:OtherRevenueMember gci:MarketingSolutionsMember 2020-07-01 2020-09-30 0001579684 us-gaap:IntersegmentEliminationMember 2020-07-01 2020-09-30 0001579684 us-gaap:OperatingSegmentsMember gci:CirculationMember gci:PublishingSegmentMember 2020-07-01 2020-09-30 0001579684 us-gaap:IntersegmentEliminationMember gci:AdvertisingandMarketingMember 2020-07-01 2020-09-30 0001579684 us-gaap:CorporateNonSegmentMember gci:CirculationMember 2020-07-01 2020-09-30 0001579684 us-gaap:CorporateNonSegmentMember gci:OtherRevenueMember 2020-07-01 2020-09-30 0001579684 us-gaap:OperatingSegmentsMember gci:OtherRevenueMember gci:PublishingSegmentMember 2020-07-01 2020-09-30 0001579684 us-gaap:CorporateNonSegmentMember 2020-01-01 2020-09-30 0001579684 us-gaap:OperatingSegmentsMember gci:CirculationMember gci:PublishingSegmentMember 2020-01-01 2020-09-30 0001579684 us-gaap:CorporateNonSegmentMember gci:CirculationMember 2020-01-01 2020-09-30 0001579684 us-gaap:IntersegmentEliminationMember 2020-01-01 2020-09-30 0001579684 us-gaap:OperatingSegmentsMember gci:MarketingSolutionsMember 2020-01-01 2020-09-30 0001579684 us-gaap:OperatingSegmentsMember gci:OtherRevenueMember gci:PublishingSegmentMember 2020-01-01 2020-09-30 0001579684 us-gaap:IntersegmentEliminationMember gci:AdvertisingandMarketingMember 2020-01-01 2020-09-30 0001579684 us-gaap:OperatingSegmentsMember gci:CirculationMember gci:MarketingSolutionsMember 2020-01-01 2020-09-30 0001579684 us-gaap:OperatingSegmentsMember gci:PublishingSegmentMember 2020-01-01 2020-09-30 0001579684 us-gaap:OperatingSegmentsMember gci:OtherRevenueMember gci:MarketingSolutionsMember 2020-01-01 2020-09-30 0001579684 us-gaap:IntersegmentEliminationMember gci:AdvertisingandMarketingMember gci:PublishingSegmentMember 2020-01-01 2020-09-30 0001579684 us-gaap:OperatingSegmentsMember gci:AdvertisingandMarketingMember gci:MarketingSolutionsMember 2020-01-01 2020-09-30 0001579684 us-gaap:CorporateNonSegmentMember gci:AdvertisingandMarketingMember 2020-01-01 2020-09-30 0001579684 us-gaap:CorporateNonSegmentMember gci:OtherRevenueMember 2020-01-01 2020-09-30 0001579684 us-gaap:IntersegmentEliminationMember gci:AdvertisingandMarketingMember gci:MarketingSolutionsMember 2020-01-01 2020-09-30 0001579684 us-gaap:OperatingSegmentsMember gci:AdvertisingandMarketingMember gci:PublishingSegmentMember 2020-01-01 2020-09-30 0001579684 gci:NewMediaMember gci:FIGLLCMember gci:ManagementFeeMember 2020-07-01 2020-09-30 0001579684 gci:NewMediaMember gci:FIGLLCMember gci:IncentiveFeeMember 2020-07-01 2020-09-30 0001579684 gci:NewMediaMember gci:FIGLLCMember gci:IncentiveFeeMember 2018-12-31 2019-09-29 0001579684 gci:NewMediaMember gci:FIGLLCMember gci:ManagementFeeMember 2019-07-01 2019-09-29 0001579684 gci:NewMediaMember gci:FIGLLCMember gci:ManagementFeeMember 2018-12-31 2019-09-29 0001579684 gci:NewMediaMember gci:FIGLLCMember gci:ManagementFeeMember 2020-01-01 2020-09-30 0001579684 gci:NewMediaMember gci:FIGLLCMember 2020-01-01 2020-09-30 0001579684 gci:NewMediaMember gci:FIGLLCMember gci:IncentiveFeeMember 2020-01-01 2020-09-30 0001579684 gci:NewMediaMember gci:FIGLLCMember gci:IncentiveFeeMember 2019-07-01 2019-09-29 0001579684 gci:NewMediaMember gci:FIGLLCMember 2020-07-01 2020-09-30 0001579684 gci:NewMediaMember gci:FIGLLCMember 2019-07-01 2019-09-29 0001579684 gci:NewMediaMember gci:FIGLLCMember 2018-12-31 2019-09-29 0001579684 gci:NewMediaMember gci:FIGLLCMember srt:ManagementMember us-gaap:EmployeeStockOptionMember 2019-11-19 2019-11-19 0001579684 us-gaap:BeneficialOwnerMember 2018-12-31 2019-09-29 0001579684 us-gaap:BeneficialOwnerMember 2020-09-30 0001579684 gci:NewMediaMember gci:FIGLLCMember srt:ManagementMember 2019-11-19 2019-11-19 0001579684 gci:NewMediaMember gci:FIGLLCMember 2019-11-18 2019-11-18 0001579684 gci:NewMediaMember gci:FIGLLCMember 2019-11-19 2019-11-19 0001579684 us-gaap:BeneficialOwnerMember 2020-01-01 2020-09-30 0001579684 us-gaap:BeneficialOwnerMember 2019-07-01 2019-09-29 0001579684 gci:NewMediaMember gci:FIGLLCMember 2013-11-26 2013-11-26 0001579684 us-gaap:BeneficialOwnerMember 2020-07-01 2020-09-30 0001579684 us-gaap:SubsequentEventMember 2020-10-01 2020-11-03 xbrli:pure gci:director gci:publication gci:brand gci:individual gci:segment gci:business gci:agency iso4217:USD xbrli:shares xbrli:shares gci:organization gci:newspaper iso4217:USD gci:state


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________
FORM 10-Q
_______________________

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2020

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 001-36097
___________________________
GANNETT CO., INC.
(Exact name of registrant as specified in its charter)
___________________________
Delaware
 
38-3910250
(State or Other Jurisdiction of Incorporation or Organization)
 
(I.R.S. Employer Identification No.)
 
 
 
 
 
7950 Jones Branch Drive,
McLean,
Virginia
 
22107-0910
(Address of principal executive offices)
 
(Zip Code)
Registrant's telephone number, including area code: (703854-6000.
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
 
Trading Symbol
 
Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per share
 
GCI
 
The New York Stock Exchange
Preferred Stock Purchase Rights

N/A

The New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer
Accelerated Filer
 
 
 
 
Non-Accelerated Filer
Smaller Reporting Company
 
 
 
 
 
Emerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes No
As of November 2, 2020, the total number of shares of the registrant's Common Stock, $0.01 par value, outstanding was 137,959,262.




 




CAUTIONARY NOTE REGARDING FORWARD LOOKING INFORMATION

Certain statements in this report on Form 10-Q may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect our current views regarding, among other things, our future growth, results of operations, performance, and business prospects and opportunities as well as other statements that are other than historical fact. Words such as “anticipate(s),” “expect(s),” “intend(s),” “plan(s),” “target(s),” “project(s),” “believe(s),” “will,” “aim,” “would,” “seek(s),” “estimate(s)” and similar expressions are intended to identify such forward-looking statements.

Forward-looking statements are based on management’s current expectations and beliefs and are subject to a number of known and unknown risks, uncertainties, and other factors that could lead to actual results materially different from those described in the forward-looking statements. We can give no assurance our expectations will be attained. Our actual results, liquidity, and financial condition may differ from the anticipated results, liquidity, and financial condition indicated in these forward-looking statements. These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and there are certain important factors that could cause our actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements, including, among others:

Risks and uncertainties associated with the ongoing COVID-19 pandemic;

General economic and market conditions;

Economic conditions in the various regions of the United States;

The growing shift within the publishing industry from traditional print media to digital forms of publication;

Risks and uncertainties associated with our Marketing Solutions segment, including its significant reliance on Google for media purchases, its international operations, and its ability to develop and gain market acceptance for new products or services;

Declining print advertising revenue and circulation subscribers;

Our ability to grow our digital marketing services initiatives, digital audience, and advertiser base;

Our ability to grow our business organically;

Variability in the exchange rate relative to the U.S. dollar of currencies in foreign jurisdictions in which we operate;

The risk that we may not realize the anticipated benefits of our acquisitions;

The availability and cost of capital for future investments;

Our indebtedness may restrict our operations and/or require us to dedicate a portion of cash flow from operations to payments associated with our debt;

Our ability to pay dividends consistent with prior practice or at all;

Our ability to reduce costs and expenses;

The impact of any material transactions with the Manager (as defined below) or one of its affiliates, including the impact of any actual, potential, or perceived conflicts of interest;

The competitive environment in which we operate; and

Our ability to recruit and retain key personnel.

Additional risk factors that could cause actual results to differ materially from our expectations include, but are not limited to, the risks identified by us under the heading “Risk Factors” in Item 1A of this report and the statements made in subsequent




filings. Such forward-looking statements speak only as of the date they are made. Except to the extent required by law, we expressly disclaim any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or change in events, conditions, or circumstances on which any statement is based.





INDEX TO GANNETT CO., INC.
Q3 2020 FORM 10-Q
 
Item No.
 
Page
 
Part I. Financial Information
 
 
 
 
1
 
 
 
2
 
 
 
3
 
 
 
4
 
 
 
 
Part II. Other Information
 
 
 
 
1
 
 
 
1A
 
 
 
2
 
 
 
3
 
 
 
4
 
 
 
5
 
 
 
6
 
 
 
 






PART I. FINANCIAL INFORMATION
Item 1. Financial Statements

CONDENSED CONSOLIDATED BALANCE SHEETS
Gannett Co., Inc. and Subsidiaries
in thousands, except share data
September 30, 2020
 
December 31, 2019
ASSETS
(Unaudited)
 
 
Current assets
 
 
 
Cash and cash equivalents
$
188,960

 
$
156,042

Accounts receivable, net of allowance for doubtful accounts of $23,749 and $19,923
288,400

 
438,523

Inventories
33,776

 
55,090

Prepaid expenses and other current assets
115,137

 
129,460

Total current assets
626,273

 
779,115

Property, plant and equipment, at cost net of accumulated depreciation of $377,072 and $277,291
704,931

 
815,807

Operating lease assets
295,775

 
309,112

Goodwill
560,215

 
914,331

Intangible assets, net
893,721

 
1,012,564

Deferred income tax assets
97,369

 
76,297

Other assets
136,019

 
112,876

Total assets
$
3,314,303

 
$
4,020,102

 
 
 
 
LIABILITIES AND EQUITY
 
 
 
Current liabilities
 
 
 
Accounts payable and accrued liabilities
$
340,840

 
$
453,628

Deferred revenue
207,597

 
218,823

Current portion of long-term debt
15,179

 
3,300

Other current liabilities
46,558

 
42,702

Total current liabilities
610,174

 
718,453

Long-term debt
1,615,984

 
1,636,335

Convertible debt
3,300

 
3,300

Deferred tax liabilities
6,256

 
9,052

Pension and other postretirement benefit obligations
198,220

 
235,906

Long-term operating lease liabilities
280,556

 
297,662

Other long-term liabilities
169,536

 
136,188

Total noncurrent liabilities
2,273,852

 
2,318,443

Total liabilities
2,884,026

 
3,036,896

Redeemable noncontrolling interests
4,148

 
1,850

Commitments and contingent liabilities (See Note 13)


 


 
 
 
 
Equity
 
 
 
Common stock of $0.01 par value per share, 2,000,000,000 shares authorized, 137,478,696 issued and 136,305,720 shares outstanding at September 30, 2020; 129,386,258 issued and 128,991,544 shares outstanding at December 31, 2019
1,375

 
1,294

Treasury stock at cost, 1,172,976 and 394,714 shares at September 30, 2020 and December 31, 2019, respectively
(4,841
)
 
(2,876
)
Additional paid-in capital
1,100,269

 
1,090,694

Accumulated deficit
(664,263
)
 
(115,958
)
Accumulated other comprehensive income (loss)
(6,411
)
 
8,202

Total equity
426,129

 
981,356

Total liabilities and equity
$
3,314,303

 
$
4,020,102


The accompanying notes are an integral part of these condensed consolidated financial statements.

2



CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
Gannett Co., Inc. and Subsidiaries
Unaudited; in thousands, except share data
 
Three months ended
 
Nine months ended
 
September 30, 2020
 
September 29, 2019
 
September 30, 2020
 
September 29, 2019
Operating revenues:
 
 
 
 
 
 
 
Advertising and marketing services
$
405,227

 
$
184,078

 
$
1,249,156

 
$
582,320

Circulation
336,158

 
146,254

 
1,053,528

 
449,269

Other
73,154

 
46,317

 
227,539

 
137,047

Total operating revenues
814,539

 
376,649

 
2,530,223

 
1,168,636

Operating expenses:
 
 
 
 
 
 
 
Operating costs
492,342

 
218,369

 
1,535,539

 
681,271

Selling, general and administrative expenses
241,652

 
119,821

 
767,275

 
375,497

Depreciation and amortization
61,355

 
24,482

 
205,706

 
68,733

Integration and reorganization costs
13,417

 
3,136

 
73,978

 
13,213

Acquisition costs
1,913

 
12,181

 
10,261

 
15,318

Asset impairments
1,585

 

 
8,444

 
2,469

Goodwill and intangible impairments

 

 
393,446

 

Loss on sale or disposal of assets
795

 
602

 
1,540

 
3,339

Total operating expenses
813,059

 
378,591

 
2,996,189

 
1,159,840

Operating income (loss)
1,480

 
(1,942
)
 
(465,966
)
 
8,796

Non-operating (income) expenses:
 
 
 
 
 
 
 
Interest expense
58,063

 
10,030

 
173,890

 
30,376

Loss on early extinguishment of debt
476

 

 
1,650

 

Non-operating pension income
(18,334
)
 
(208
)
 
(54,433
)
 
(625
)
Gain on sale of investments
(7,800
)
 

 
(7,995
)
 

Other income, net
(2,575
)
 
(22
)
 
(6,993
)
 
(176
)
Non-operating expenses
29,830

 
9,800

 
106,119

 
29,575

Net loss before income taxes
(28,350
)
 
(11,742
)
 
(572,085
)
 
(20,779
)
Income tax expense (benefit)
3,098

 
7,226

 
(22,200
)
 
4,929

Net loss
(31,448
)
 
(18,968
)
 
(549,885
)
 
(25,708
)
Net loss attributable to redeemable noncontrolling interests
(188
)
 
(505
)
 
(1,580
)
 
(954
)
Net loss attributable to Gannett
$
(31,260
)
 
$
(18,463
)
 
$
(548,305
)
 
$
(24,754
)
Loss per share attributable to Gannett - basic
$
(0.24
)
 
$
(0.31
)
 
$
(4.17
)
 
$
(0.41
)
Loss per share attributable to Gannett - diluted
$
(0.24
)
 
$
(0.31
)
 
$
(4.17
)
 
$
(0.41
)
Dividends declared per share
$
0.00

 
$
0.38

 
$
0.00

 
$
1.14

 
 
 
 
 
 
 
 
Other comprehensive loss:
 
 
 
 
 
 
 
Foreign currency translation adjustments
$
7,677

 
(3
)
 
$
(8,908
)
 

Pension and other postretirement benefit items:
 
 
 
 
 
 
 
Net actuarial loss

 

 
(8,078
)
 

Amortization of net actuarial gain
(11
)
 
(30
)
 
(36
)
 
(90
)
Other
(714
)
 

 
347

 

Total pension and other postretirement benefit items
(725
)
 
(30
)
 
(7,767
)
 
(90
)
Other comprehensive income (loss) before tax
6,952

 
(33
)
 
(16,675
)
 
(90
)
Income tax expense (benefit) related to components of other comprehensive income
1

 

 
(2,062
)
 

Other comprehensive income (loss), net of tax
6,951

 
(33
)
 
(14,613
)
 
(90
)
Comprehensive loss
(24,497
)
 
(19,001
)
 
(564,498
)
 
(25,798
)
Comprehensive loss attributable to redeemable noncontrolling interests
(188
)
 
(505
)
 
(1,580
)
 
(954
)
Comprehensive loss attributable to Gannett
$
(24,309
)
 
$
(18,496
)
 
$
(562,918
)
 
$
(24,844
)
The accompanying notes are an integral part of these condensed consolidated financial statements.

3




CONDENSED CONSOLIDATED STATEMENTS OF EQUITY 
GANNETT CO., INC.
Unaudited; in thousands, except share data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock
 
Additional
Paid-in
Capital
 
Accumulated other comprehensive income (loss)
 
Retained
Earnings (Accumulated Deficit)
 
Treasury stock
 
 
 
Shares
 
Amount
Shares
 
Amount
 
Total
Three months ended September 30, 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance as of June 30, 2020
136,885,320

 
$
1,369

 
$
1,101,899

 
$
(13,362
)
 
$
(633,003
)
 
770,973

 
$
(4,818
)
 
$
452,085

Net loss

 

 

 

 
(31,260
)
 

 

 
(31,260
)
Restricted stock awards settled, net of withholdings
564,406

 
6

 
(866
)
 

 

 

 

 
(860
)
Other comprehensive income, net of income taxes of $1

 

 

 
6,951

 


 

 

 
6,951

Equity-based compensation expense

 

 
3,844

 

 

 

 

 
3,844

Issuance of common stock
28,970

 

 
(961
)
 

 

 

 

 
(961
)
Remeasurement of redeemable noncontrolling interests

 

 
(3,878
)
 

 

 

 

 
(3,878
)
Purchase of treasury stock

 

 

 

 

 
4,837

 
(19
)
 
(19
)
Restricted share forfeiture

 

 

 

 

 
397,166

 
(4
)
 
(4
)
Other activity

 

 
231

 

 

 

 

 
231

Balance as of September 30, 2020
137,478,696

 
1,375

 
1,100,269

 
(6,411
)
 
(664,263
)
 
1,172,976

 
(4,841
)
 
426,129

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended September 29, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance as of June 30, 2019
60,806,451

 
$
608

 
$
677,574

 
$
(6,938
)
 
$
(2,409
)
 
324,777

 
$
(2,573
)
 
$
666,262

Net loss

 

 

 

 
(18,463
)
 

 

 
(18,463
)
Restricted share grants
1,408

 

 

 

 

 

 

 

Other comprehensive loss, net of income taxes of $0

 

 

 
(33
)
 

 

 

 
(33
)
Equity-based compensation expense

 

 
691

 

 

 

 

 
691

Purchase of treasury stock

 

 

 

 

 
1,599

 
(16
)
 
(16
)
Restricted share forfeiture

 

 

 

 

 
366

 

 

Dividends declared

 

 
(22,983
)
 

 

 

 

 
(22,983
)
Balance at September 29, 2019
60,807,859

 
$
608

 
$
655,282

 
$
(6,971
)
 
$
(20,872
)
 
326,742

 
$
(2,589
)
 
$
625,458

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

The accompanying notes are an integral part of these consolidated financial statements.


4



Unaudited; in thousands, except share data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock
 
Additional
Paid-in
Capital
 
Accumulated other comprehensive income (loss)
 
Retained
Earnings (Accumulated Deficit)
 
Treasury stock
 
 
 
Shares
 
Amount
Shares
 
Amount
 
Total
Nine months ended September 30, 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance as of December 30, 2019
129,386,258

 
$
1,294

 
$
1,090,694

 
$
8,202

 
$
(115,958
)
 
394,714

 
$
(2,876
)
 
$
981,356

Net loss

 

 

 

 
(548,305
)
 

 

 
(548,305
)
Restricted share grants
4,346,313

 
44

 
(44
)
 

 

 

 

 

Restricted stock awards settled, net of withholdings
3,072,991

 
31

 
(10,819
)
 

 

 

 

 
(10,788
)
Other comprehensive loss, net of income tax benefit of $2,062

 

 

 
(14,613
)
 

 

 

 
(14,613
)
Equity-based compensation expense

 

 
22,812

 

 

 

 

 
22,812

Issuance of common stock
673,134

 
6

 
1,609

 

 

 

 

 
1,615

Remeasurement of redeemable noncontrolling interests

 

 
(3,878
)
 

 

 

 

 
(3,878
)
Purchase of treasury stock

 

 

 

 

 
322,524

 
(1,960
)
 
(1,960
)
Restricted share forfeiture

 

 

 

 

 
455,738

 
(5
)
 
(5
)
Other activity

 

 
(105
)
 

 

 

 

 
(105
)
Balance as of September 30, 2020
137,478,696

 
1,375

 
1,100,269

 
(6,411
)
 
(664,263
)
 
1,172,976

 
(4,841
)
 
426,129

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 29, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance as of December 30, 2018
60,508,249

 
$
605

 
$
721,605

 
$
(6,881
)
 
$
3,767

 
201,963

 
$
(1,873
)
 
$
717,223

Net loss

 

 

 

 
(24,754
)
 

 

 
(24,754
)
Restricted share grants
299,610

 
3

 
(3
)
 

 

 

 

 

Other comprehensive loss, net of income taxes of $0

 

 

 
(90
)
 

 

 

 
(90
)
Equity-based compensation expense

 

 
2,534

 

 

 

 

 
2,534

Impact of adoption of ASC 842 - Leases

 

 

 

 
115

 

 

 
115

Purchase of treasury stock

 

 

 

 

 
54,320

 
(716
)
 
(716
)
Restricted share forfeiture

 

 

 

 

 
70,459

 

 

Dividends declared

 

 
(68,854
)
 

 

 

 

 
(68,854
)
Balance at September 29, 2019
60,807,859

 
608

 
655,282

 
(6,971
)
 
(20,872
)
 
326,742

 
(2,589
)
 
625,458

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

The accompanying notes are an integral part of these consolidated financial statements.


5



CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Gannett Co., Inc. and Subsidiaries
Unaudited; in thousands
 
Nine months ended
 
September 30, 2020
 
September 29, 2019
 
 
 
 
Cash flows from operating activities:
 
 
 
Net loss
$
(549,885
)
 
$
(25,708
)
Adjustments to reconcile net income to operating cash flows:
 
 
 
Depreciation and amortization
205,706

 
68,733

Equity-based compensation expense
22,812

 
2,534

Non-cash interest expense
17,813

 
1,034

Loss on sale or disposal of assets
1,540

 
3,339

Loss on early extinguishment of debt
1,650

 

Goodwill and intangible impairments
393,446

 

Asset impairments
8,444

 
2,469

Pension and other postretirement benefit obligations, net of contributions
(77,274
)
 
(1,116
)
Change in other assets and liabilities, net
50,028

 
47,245

Net cash provided by operating activities
74,280

 
98,530

Cash flows from investing activities:
 
 
 
Acquisitions, net of cash acquired

 
(49,666
)
Purchase of property, plant and equipment
(28,944
)
 
(7,281
)
Proceeds from sale of real estate and other assets
26,186

 
10,314

Insurance proceeds received for damage to property
1,643

 

Change in other investing activities
(864
)
 

Net cash used for investing activities
(1,979
)
 
(46,633
)
Cash flows from financing activities:
 
 
 
Repayments under term loans
(27,619
)
 
(11,296
)
Borrowings under revolving credit facility

 
136,400

Repayments under revolving credit facility

 
(128,400
)
Deferred payments for acquisitions
(7,544
)
 

Payments for employee taxes withheld from stock awards
(1,960
)
 
(716
)
Issuance of common stock
4

 

Payment of dividends

 
(68,886
)
Changes in other financing activities
(352
)
 

Net cash used for financing activities
(37,471
)
 
(72,898
)
Effect of currency exchange rate change on cash
439

 

Increase (decrease) in cash, cash equivalents and restricted cash
35,269

 
(21,001
)
Balance of cash, cash equivalents and restricted cash at beginning of period
188,664

 
52,770

Balance of cash, cash equivalents and restricted cash at end of period
$
223,933

 
$
31,769

 
 
 
 
Supplemental cash flow information:
 
 
 
Cash paid for taxes, net of refunds
$
(4,510
)
 
$
1,046

Cash paid for interest
$
176,402

 
$
22,902

Non-cash investing and financing activities:
 
 
 
Accrued capital expenditures
$
758

 
$
105

The accompanying notes are an integral part of these condensed consolidated financial statements.

6



NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 — Basis of presentation and summary of significant accounting policies

Description of business: Gannett Co., Inc. ("Gannett", "we", "us", "our", or the "Company") is an innovative, digitally focused media and marketing solutions company committed to fostering the communities in our network and helping them build relationships with their local businesses. On November 19, 2019, New Media Investment Group Inc. ("Legacy New Media") completed its acquisition of Gannett Co., Inc. (which was renamed Gannett Media Corp. and is referred herein as "Legacy Gannett"), which retained the name Gannett Co., Inc. and trades on the New York Stock Exchange under the ticker symbol "GCI".

Our current portfolio of media assets includes USA TODAY, local media organizations in 46 states in the U.S. and Guam, and Newsquest (a wholly owned subsidiary operating in the United Kingdom (the "U.K.") with more than 140 local media brands). Gannett also owns the digital marketing services companies ReachLocal, Inc. ("ReachLocal"), UpCurve, Inc. ("UpCurve"), and WordStream, Inc. ("WordStream") and runs the largest media-owned events business in the U.S., GateHouse Live.

Through USA TODAY, our local property network, and Newsquest, Gannett delivers high-quality, trusted content where and when consumers want to engage on virtually any device or platform. Additionally, the Company has strong relationships with hundreds of thousands of local and national businesses in both our U.S. and U.K. markets due to our large local and national sales forces and a robust advertising and marketing solutions product suite. The Company reports in two segments: Publishing and Marketing Solutions. A full description of our segments is included in Note 14 — Segment reporting of the notes to the consolidated financial statements.

COVID-19 Pandemic: The newspaper industry and the Company have experienced declining same-store revenue and profitability over the past several years, and these industry trends are expected to continue in the future. Additionally, during the nine months ended September 30, 2020, the Company experienced additional revenue and profitability declines in connection with the COVID-19 global pandemic. More specifically, during March 2020, the Company began to experience decreased demand for its advertising and digital marketing services, commercial print and distribution services, as well as reductions in the single copy and commercial distribution of its newspapers. At this point, the Company’s newspaper production operations have not been significantly impacted and the vast majority of the Company’s non-production employees are currently working remotely. However, the COVID-19 global pandemic had a significant negative impact on the Company’s business and results of operations during the nine months ended September 30, 2020, and we expect it to continue to have an impact in future periods. Longer-term, the impact of the COVID-19 pandemic on the Company’s business and results of operations will depend on the severity and length of the pandemic, the duration and extent of the mitigation measures and governmental actions designed to combat the pandemic, as well as the changes in customer behavior as a result of the pandemic, all of which are highly uncertain. As a result, the Company has implemented, and continues to implement, measures to reduce costs and preserve cash flow. These measures include suspension of the quarterly dividend, employee furloughs and decreases in employee compensation through the third quarter, as well as reductions in discretionary spending. In addition, the Company has deferred certain payroll tax remittance as permitted under the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") and negotiated the deferral of pension contributions, as well as continuing with its previously disclosed plan to monetize non-core assets. The Company believes these initiatives, along with cash on hand and cash provided by operating activities, will provide sufficient cash flow to enable the Company to meet its commitments. However, these measures are not expected to fully offset the negative impact of the COVID-19 pandemic on the Company's business and results of operations.

Basis of presentation: Our condensed consolidated financial statements are unaudited; however, in the opinion of management, they contain all of the adjustments (consisting of those of a normal, recurring nature) considered necessary to present fairly the financial position, results of operations, and cash flows for the periods presented in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") applicable to interim periods. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company consolidates entities that it controls due to ownership of a majority voting interest. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019.

Use of estimates: The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and footnotes thereto. Actual results could differ from those estimates. The COVID-19 pandemic has caused increased uncertainty in estimates and assumptions affecting the reported amounts of assets and liabilities as of the date of the condensed consolidated financial statements.

7




Examples of significant estimates include pension and postretirement benefit obligation assumptions, income taxes, leases, self-insurance liabilities, impairment analysis, stock-based compensation, business combinations and valuation of property, plant and equipment and intangible assets. Actual results could differ from those estimates.
 
Fiscal period: Starting in 2019 and subsequent to our acquisition of Legacy Gannett, our fiscal period end coincides with the Gregorian calendar. In periods prior to the acquisition, our fiscal periods ended on the last Sunday of the calendar month. Our fiscal period end for the third quarter of 2019 was September 29, 2019.

Advertising and marketing services revenues: Pursuant to our acquisition of Legacy Gannett, we realigned the presentation of marketing services revenues generated by our UpCurve subsidiary from other revenues to advertising and marketing services revenue on the Condensed consolidated statements of operations and comprehensive income (loss). As a result of this updated presentation, Advertising and marketing services revenues increased and Other revenues decreased $16.6 million and $51.4 million for the three and nine months ended September 29, 2019, respectively. Operating revenues, Net income (loss), Retained earnings, and Earnings per share remained unchanged.

Segment presentation: In connection with our Legacy Gannett acquisition and as noted above, we reorganized our reportable segments to include (1) Publishing, which consists of our portfolio of regional, national, and international newspaper publishers and (2) Marketing Solutions, which is comprised of our marketing solutions subsidiaries ReachLocal, UpCurve and WordStream. In addition to these operating segments, we have a Corporate and other category that includes activities not directly attributable to a specific segment. This category primarily consists of broad corporate functions and includes legal, human resources, accounting, analytics, finance, and marketing as well as activities and costs not directly attributable to a particular segment and other general business costs.

Cash and cash equivalents, including restricted cash: Cash equivalents represent highly liquid certificates of deposit which have original maturities of three months or less. Restricted cash is held as cash collateral for certain business operations. Restricted cash primarily consists of funding for letters of credit and cash held in an irrevocable grantor trust for our deferred compensation plans. The restrictions will lapse when benefits are paid to plan participants and their beneficiaries as specified in the plans.
The following table presents a reconciliation of cash, cash equivalents, and restricted cash:
In thousands
September 30, 2020
 
September 29, 2019
Cash and cash equivalents
$
188,960

 
$
28,641

Restricted cash included in other current assets
10,796

 
3,128

Restricted cash included in investments and other assets
24,177

 

Total cash, cash equivalents and restricted cash
$
223,933

 
$
31,769



New accounting pronouncements adopted: The following are new accounting pronouncements that we adopted in the first nine months of 2020:

Financial Instruments—Credit Losses: In June 2016, the Financial Accounting Standards Board ("FASB") issued new guidance which amends the principles around the recognition of credit losses by mandating entities incorporate an estimate of current expected credit losses when determining the value of certain assets. The guidance also amends reporting around allowances for credit losses on available-for-sale marketable securities. This guidance is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. Adopting this guidance did not have a material impact on our consolidated financial statements, refer to Note 4 — Accounts receivable, net for further details.

Intangibles—Internal Use Software: In August 2018, the FASB issued new guidance which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software and hosting arrangements that include an internal-use software license. This guidance is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted, including adoption in any interim period. The guidance can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. This guidance was adopted prospectively and did not have a material impact on our consolidated financial statements. Capitalized costs are recognized within prepaid expenses and other current assets or other assets within the consolidated balance sheet.


8



Fair Value Measurement—Disclosure Framework: In August 2018, the FASB issued new guidance that changes disclosure requirements related to fair value measurements as part of the disclosure framework project. The disclosure framework project aims to improve the effectiveness of disclosures in the notes to the financial statements by focusing on requirements that clearly communicate the most important information to users of the financial statements. This guidance is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. Adopting this guidance did not have a material impact on our consolidated financial statements.

New accounting pronouncements not yet adopted: The following are new accounting pronouncements that we are evaluating for future impacts on our financial statements:

Compensation—Retirement Plans: In August 2018, the FASB issued new guidance that changes disclosures related to defined benefit pension and other postretirement benefit plans as part of the disclosure framework project. This guidance is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. We are evaluating the provisions of the updated guidance and assessing the impact on our consolidated financial statements.

Simplifying the Accounting for Income Taxes: In December 2019, the FASB issued new guidance that simplifies the accounting for income taxes. The guidance amends the rules for recognizing deferred taxes for investments, performing intraperiod tax allocations and calculating income taxes in interim periods. It also reduces complexity in certain areas, including accounting for transactions that result in a step-up in the tax basis of goodwill and allocating taxes to members of a consolidated group. This guidance is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. We are evaluating the provisions of the updated guidance and assessing the impact on our consolidated financial statements.

NOTE 2 — Revenues

Revenue Recognition

Revenues are recognized when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Revenues recognized as performance obligations are satisfied either at a point in time, such as when an advertisement is published, or over time, such as customer subscriptions.

The Company’s Condensed consolidated statements of operations and comprehensive income (loss) presents revenues disaggregated by revenue type. Sales taxes and other usage-based taxes are excluded from revenues. The following table presents our revenues disaggregated by source:
 
Three months ended
 
Nine months ended
In thousands
September 30, 2020

September 29, 2019
 
September 30, 2020
 
September 29, 2019
Print advertising
$
208,047

 
$
139,243

 
$
664,047

 
$
448,348

Digital advertising and marketing services
197,180

 
44,835

 
585,109

 
133,972

Total advertising and marketing services
405,227

 
184,078

 
1,249,156

 
582,320

Circulation
336,158

 
146,254

 
1,053,528

 
449,269

Other
73,154

 
46,317

 
227,539

 
137,047

Total revenues
$
814,539

 
$
376,649

 
$
2,530,223

 
$
1,168,636


For the three and nine months ended September 30, 2020, approximately 7% of our revenues were generated from international locations.

Deferred revenues: The Company records deferred revenues when cash payments are received in advance of the Company’s performance obligation. The most significant unsatisfied performance obligation is the delivery of publications to subscription customers. The Company expects to recognize the revenue related to unsatisfied performance obligations over the next three to twelve months in accordance with the terms of the subscriptions.

The Company's payment terms vary by the type and location of the customer and the products or services offered. The period between invoicing and when payment is due is not significant. For certain products or services and customer types, the Company requires payment before the products or services are delivered to the customer.


9



The following table presents changes in the deferred revenues balance for the nine months ended September 30, 2020 by type of revenues:
In thousands
Advertising, Marketing Services, and Other
 
Circulation
 
Total
Beginning balance
$
67,543

 
$
151,280

 
$
218,823

Cash receipts
215,050

 
878,856

 
1,093,906

Revenue recognized
(221,052
)
 
(884,080
)
 
(1,105,132
)
Ending balance
$