Income taxes (Tables)

12 Months Ended

Dec. 30, 2012

Provision (Benefit) for Income Taxes on Income from Continuing Operations

The provision (benefit) for income taxes on income from continuing operations consists of the following:



In thousands of dollars
2012	Current			Deferred			Total
Federal	$	82,200		$	106,000		$	188,200
State and other	(2,600		)	17,100			14,500
Foreign	(6,900		)	(400		)	(7,300		)
Total	$	72,700		$	122,700		$	195,400



In thousands of dollars
2011	Current			Deferred			Total
Federal	$	81,500		$	74,600		$	156,100
State and other	(800		)	30,100			29,300
Foreign	(25,400		)	(7,200		)	(32,600		)
Total	$	55,300		$	97,500		$	152,800



In thousands of dollars
2010	Current			Deferred		Total
Federal	$	135,442		$	129,829	$	265,271
State and other	(51,252		)	19,150		(32,102		)
Foreign	9,460			1,384		10,844
Total	$	93,650		$	150,363	$	244,013

Components of Income (Loss) from Continuing Operations Attributable to Gannett Co., Inc. Before Income Taxes

The components of income from continuing operations attributable to Gannett Co., Inc. before income taxes consist of the following:



In thousands of dollars
	2012		2011		2010
Domestic	$	538,988	$	530,660	$	729,485
Foreign	80,692		80,888		81,856
Total	$	619,680	$	611,548	$	811,341

Reconciliation of Effective Tax Rate

The provision for income taxes on continuing operations varies from the U.S. federal statutory tax rate as a result of the following differences:



	2012		2011		2010
U.S. statutory tax rate	35.0	%	35.0	%	35.0	%
Increase (decrease) in taxes resulting from:
Non-deductible goodwill impairment	5.2		—		0.6
State/other income taxes net of federal income tax	2.2		3.0		3.5
Statutory rate differential and permanent differences in earnings in foreign jurisdictions	(5.6	)	(5.4	)	(2.7	)
Audit resolutions	(4.6	)	(4.2	)	—
Permanent stock basis deductions	—		(1.8	)	—
Lapse of statutes of limitations net of federal income tax	(1.8	)	(1.6	)	(7.2	)
Other, net	1.1		—		0.9
Effective tax rate	31.5	%	25.0	%	30.1	%

Deferred Tax Liabilities and Assets

Deferred tax liabilities and assets were composed of the following at the end of 2012 and 2011:



In thousands of dollars
	Dec. 30, 2012		Dec. 25, 2011
Liabilities
Accelerated depreciation	$	255,612	$	295,391
Accelerated amortization of deductible intangibles	174,229		121,679
Other	26,989		29,890
Total deferred tax liabilities	456,830		446,960
Assets
Accrued compensation costs	77,684		97,532
Pension	368,803		346,000
Postretirement medical and life	65,573		71,674
Federal tax benefits of uncertain state tax positions	31,002		43,631
Partnership investments including impairments	39,542		52,344
Loss carryforwards	58,596		44,452
Other	66,164		77,035
Total deferred tax assets	707,364		732,668
Valuation allowance	76,419		54,287
Total net deferred tax assets	$	174,115	$	231,421
Amounts recognized in Consolidated Balance Sheet
Net current deferred tax assets	$	15,840	$	22,771
Net long-term deferred tax assets	$	158,275	$	208,650

Summary of Activity Related to Unrecognized Tax Benefits, Excluding Federal Tax Benefit of State Tax Deductions

The following table summarizes the activity related to unrecognized tax benefits, excluding the federal tax benefit of state tax deductions:



In thousands of dollars
	Dec. 30, 2012			Dec. 25, 2011
Change in unrecognized tax benefits
Balance at beginning of year	$	110,282		$	153,531
Additions based on tax positions related to the current year	9,093			10,958
Additions for tax positions of prior years	11,929			17,009
Reductions for tax positions of prior years	(30,110		)	(44,155		)
Settlements	(7,857		)	(15,618		)
Reductions due to lapse of statutes of limitations	(7,157		)	(11,443		)
Balance at end of year	$	86,180		$	110,282

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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