SHAREHOLDERS' EQUITY (Tables)

12 Months Ended

Dec. 30, 2012

The company’s earnings per share (basic and diluted) for 2012, 2011 and 2010 are presented below:



In thousands, except per share amounts
	2012		2011		2010
Net income attributable to Gannett Co., Inc.	$	424,280	$	458,748	$	588,201
Weighted average number of common shares outstanding (basic)	232,327		239,228		238,230
Effect of dilutive securities
Stock options	867		1,189		1,354
Restricted stock	2,552		2,147		1,720
Performance Shares	944		—		—
401(k) employer match	—		204		301
Weighted average number of common shares outstanding (diluted)	236,690		242,768		241,605
Earnings per share (basic)	$	1.83	$	1.92	$	2.47
Earnings per share (diluted)	$	1.79	$	1.89	$	2.43

The following assumptions were used to estimate the fair value of stock option and performance share awards:



Stock Options Granted During	2012	2011	2010
Average expected term	4.5 yrs.	4.5 yrs.	4.5 yrs.
Expected volatility	65.74 - 66.95%	62.46 - 64.39%	59.41 - 62.24%
Weighted average volatility	66.56%	62.54%	61.01%
Risk-free interest rates	0.84%	0.87 - 2.21%	1.51 - 2.65%
Expected dividend yield	5.00%	1.00 - 2.00%	1.00%
Weighted average expected dividend	5.00%	1.06%	1.00%

The following table shows the stock-based compensation related amounts recognized in the Consolidated Statements of Income for equity awards:



In thousands, except per share amounts
	2012		2011		2010
Restricted stock and RSUs	$	14,362	$	12,868	$	13,897
Performance shares	7,991		—		—
Stock options and other	4,255		15,135		18,810
Total stock-based compensation	26,608		28,003		32,707
Income tax benefit	10,111		10,641		12,429
Stock-based compensation, net of tax	$	16,497	$	17,362	$	20,278
Per diluted share impact	$	0.07	$	0.07	$	0.08

A summary of the company’s stock-option awards is presented below:



2012 Stock Option Activity	Shares			Weighted average exercise price		Weighted average remaining contractual term (in years)	Aggregate intrinsic value
Outstanding at beginning of year	20,340,291			$	47.66	3.5	$	17,184,761
Granted	109,699			$	14.33
Exercised	(2,716,637		)	$	9.38
Canceled/Expired	(6,389,335		)	$	70.76
Outstanding at end of year	11,344,018			$	43.50	3.2	$	16,902,892
Options exercisable at year end	8,942,897			$	51.35	2.6	$	8,845,944
Weighted average grant date fair value of options granted during the year	$	5.43



2011 Stock Option Activity	Shares			Weighted average exercise price		Weighted average remaining contractual term (in years)	Aggregate intrinsic value
Outstanding at beginning of year	23,649,290			$	52.08	3.9	$	28,819,223
Granted	1,333,597			$	15.79
Exercised	(496,749		)	$	5.71
Canceled/Expired	(4,145,847		)	$	67.61
Outstanding at end of year	20,340,291			$	47.66	3.5	$	17,184,761
Options exercisable at year end	15,857,692			$	57.26	2.7	$	10,644,474
Weighted average grant date fair value of options granted during the year	$	7.63



2010 Stock Option Activity	Shares			Weighted average exercise price		Weighted average remaining contractual term (in years)	Aggregate intrinsic value
Outstanding at beginning of year	25,243,251			$	58.68	4.1	$	33,560,103
Granted	3,451,481			$	15.23
Exercised	(332,060		)	$	6.00
Canceled/Expired	(4,713,382		)	$	63.70
Outstanding at end of year	23,649,290			$	52.08	3.9	$	28,819,223
Options exercisable at year end	17,075,622			$	66.48	2.8	$	8,698,148
Weighted average grant date fair value of options granted during the year	$	7.22

A summary of restricted stock and RSU awards is presented below:



2012 Restricted Stock and RSU Activity	Shares		Weighted average fair value
Outstanding and unvested at beginning of year	3,731,033		$	10.73
Granted	1,937,512		$	12.33
Settled	(997,584	)	$	3.29
Canceled	(601,452	)	$	11.95
Outstanding and unvested at end of year	4,069,509		$	12.98



2011 Restricted Stock and RSU Activity	Shares		Weighted average fair value
Outstanding and unvested at beginning of year	4,421,437		$	12.19
Granted	175,023		$	13.21
Settled	(469,634	)	$	33.51
Canceled	(395,793	)	$	11.94
Outstanding and unvested at end of year	3,731,033		$	10.73



2010 Restricted Stock and RSU Activity	Shares		Weighted average fair value
Outstanding and unvested at beginning of year	3,293,293		$	13.62
Granted	1,934,351		$	14.91
Settled	(490,716	)	$	31.94
Canceled	(315,491	)	$	12.97
Outstanding and unvested at end of year	4,421,437		$	12.19

The following table summarizes the activity for non-vested performance share units during the year ended Dec. 30, 2012:



Performance Shares Activity	Target number of shares		Weighted average fair value
Outstanding and unvested at beginning of year	—		$	—
Granted	1,109,873		$	14.21
Canceled	(127,421	)	$	14.12
Outstanding and unvested at end of year	982,452		$	14.23

Performance Shares



Performance Shares Granted During	2012	2011	2010
Expected term	3 yrs.	—	—
Expected volatility	69.47%	—	—
Risk-free interest rate	0.41%	—	—
Expected dividend yield	2.39%	—	—