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Form 10-Q Gannett Co., Inc. For: Jun 30

August 4, 2022 10:54 AM EDT

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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 June 30, 2022

    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)
___________________________
Delaware38-3910250
(State or Other Jurisdiction of Incorporation or Organization)(I.R.S. Employer Identification No.)
7950 Jones Branch Drive,McLean,Virginia22107-0910
(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 ClassTrading SymbolName of Each Exchange on Which Registered
Common Stock, par value $0.01 per shareGCIThe New York Stock Exchange
Preferred Stock Purchase RightsN/AThe 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 (§232.405 of this chapter) 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 the 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 August 1, 2022, 146,677,527 shares of the registrant's Common Stock were outstanding.



CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this Quarterly Report on Form 10-Q may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect our current views regarding, among other things, our future growth, results of operations, performance, business prospects and opportunities, and our environmental, social and governance goals, and are not statements of historical fact. Words such as "anticipate(s)," "expect(s)," "intend(s)," "plan(s)," "project(s)," "believe(s)," "forecast," "will," "aim," "would," "may," "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 the forward-looking statements. 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:

General economic and market conditions, including inflation and interest rates;
Global hostilities and any resulting effects and uncertainties;
The competitive environment in which we operate;
Risks and uncertainties associated with the COVID-19 pandemic;
Economic conditions in the various regions of the United States, the United Kingdom, and other regions in which we operate our business;
The shift within the publishing industry from traditional print media to digital forms of publication;
Risks and uncertainties associated with our Digital 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;
Our ability to 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 current intention not to pay dividends and our ability to pay dividends in the future, if at all;
Our ability to reduce costs and expenses;
Our ability to maintain proper and effective internal control over financial reporting;
Our ability to recruit and retain key personnel; and
Any shortage of skilled or experienced employees with the capabilities necessary to support our business strategies, or our inability to retain such employees.

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 this Quarterly Report on Form 10-Q, under the heading "Risk Factors" in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, filed with the Securities and Exchange Commission (the "SEC") on February 24, 2022, 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.
Q2 2022 FORM 10-Q
 



PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS

GANNETT CO., INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
In thousands, except share dataJune 30, 2022December 31, 2021
Assets(Unaudited)
Current assets:
Cash and cash equivalents$87,331 $130,756 
Accounts receivable, net of allowance for doubtful accounts of $11,967 and $16,470 as of June 30, 2022 and December 31, 2021, respectively
289,813 328,733 
Inventories34,981 37,662 
Prepaid expenses and other current assets75,392 80,110 
Total current assets487,517 577,261 
Property, plant and equipment, net of accumulated depreciation of $359,248 and $336,500 as of June 30, 2022 and December 31, 2021, respectively
372,375 415,384 
Operating lease assets257,361 271,935 
Goodwill540,491 533,709 
Intangible assets, net666,678 713,153 
Deferred tax assets 32,399 
Pension and other assets329,228 284,228 
Total assets $2,653,650 $2,828,069 
Liabilities and equity
Current liabilities:
Accounts payable and accrued liabilities$320,699 $357,014 
Deferred revenue174,112 184,838 
Current portion of long-term debt60,846 69,456 
Other current liabilities49,699 51,218 
Total current liabilities605,356 662,526 
Long-term debt760,954 769,446 
Convertible debt399,319 393,354 
Deferred tax liabilities10,702 28,812 
Pension and other postretirement benefit obligations67,554 71,937 
Long-term operating lease liabilities242,262 254,969 
Other long-term liabilities109,595 117,410 
Total noncurrent liabilities1,590,386 1,635,928 
Total liabilities 2,195,742 2,298,454 
Commitments and contingent liabilities (See Note 11)
Equity
Preferred stock, $0.01 par value per share, 300,000 shares authorized, of which 150,000 shares are designated as Series A Junior Participating Preferred Stock, none of which were issued and outstanding at June 30, 2022 and December 31, 2021
  
Common stock, $0.01 par value per share, 2,000,000,000 shares authorized, 152,597,534 shares issued and 146,787,563 shares outstanding at June 30, 2022; 144,667,389 shares issued and 142,299,399 shares outstanding at December 31, 2021
1,526 1,446 
Treasury stock, at cost, 5,809,971 shares and 2,367,990 shares at June 30, 2022 and December 31, 2021, respectively
(14,700)(8,151)
Additional paid-in capital1,402,652 1,400,206 
Accumulated deficit(978,054)(921,399)
Accumulated other comprehensive income46,747 59,998 
Total Gannett stockholders equity458,171 532,100 
Noncontrolling interests(263)(2,485)
Total equity457,908 529,615 
Total liabilities and equity$2,653,650 $2,828,069 
The accompanying notes are an integral part of these condensed consolidated financial statements.
2

GANNETT CO., INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Unaudited)
Three months ended June 30,Six months ended June 30,
In thousands, except per share amounts2022202120222021
Advertising and marketing services$383,609 $420,110 $758,723 $808,467 
Circulation274,624 310,259 563,226 635,696 
Other90,427 73,906 174,788 137,196 
Total operating revenues748,660 804,275 1,496,737 1,581,359 
Operating costs476,002 473,172 945,887 950,970 
Selling, general and administrative expenses227,836 222,904 449,673 426,588 
Depreciation and amortization49,530 48,242 97,313 106,345 
Integration and reorganization costs15,745 8,444 27,143 21,848 
Asset impairments85  939 833 
Loss (gain) on sale or disposal of assets, net372 5,294 (2,432)10,039 
Other operating expenses314 774 1,416 11,350 
Total operating expenses769,884 758,830 1,519,939 1,527,973 
Operating income (loss)(21,224)45,445 (23,202)53,386 
Interest expense26,084 35,264 52,090 74,767 
Loss on early extinguishment of debt749 2,834 3,492 22,235 
Non-operating pension income(18,160)(23,906)(36,373)(47,784)
Loss on convertible notes derivative   126,600 
Other non-operating expense (income), net1,645 (1,148)(160)(3,023)
Non-operating expenses10,318 13,044 19,049 172,795 
Income (loss) before income taxes(31,542)32,401 (42,251)(119,409)
Provision for income taxes22,158 17,692 14,551 8,583 
Net income (loss)(53,700)14,709 (56,802)(127,992)
Net loss attributable to noncontrolling interests(a)
(12)(406)(147)(791)
Net income (loss) attributable to Gannett$(53,688)$15,115 $(56,655)$(127,201)
Income (loss) per share attributable to Gannett - basic$(0.39)$0.11 $(0.41)$(0.95)
Income (loss) per share attributable to Gannett - diluted$(0.39)$0.10 $(0.41)$(0.95)
Other comprehensive income (loss):
Foreign currency translation adjustments$(15,648)$1,750 $(23,204)$4,787 
Pension and other postretirement benefit items:
Net actuarial gain (loss)12,786 (1,426)10,990 (300)
Amortization of net actuarial (gain) loss (217)(5)(249)15 
Other1,469 (292)2,005 (846)
Total pension and other postretirement benefit items14,038 (1,723)12,746 (1,131)
Other comprehensive income (loss) before tax(1,610)27 (10,458)3,656 
Income tax expense (benefit) related to components of other comprehensive income (loss)3,250 (390)2,793 (184)
Other comprehensive income (loss), net of tax(4,860)417 (13,251)3,840 
Comprehensive income (loss)(58,560)15,126 (70,053)(124,152)
Comprehensive loss attributable to noncontrolling interests(a)
(12)(406)(147)(791)
Comprehensive income (loss) attributable to Gannett$(58,548)$15,532 $(69,906)$(123,361)
(a)     For the three and six months ended June 30, 2022, there were no redeemable noncontrolling interests included in Net loss attributable to noncontrolling interests. For the three and six months ended June 30, 2021, Net loss attributable to noncontrolling interests included $0.4 million and $0.8 million, respectively, relating to redeemable noncontrolling interests.

The accompanying notes are an integral part of these condensed consolidated financial statements.
3

GANNETT CO., INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six months ended June 30,
In thousands20222021
Operating activities
Net loss$(56,802)$(127,992)
Adjustments to reconcile net loss to operating cash flows:
Depreciation and amortization97,313 106,345 
Share-based compensation expense8,778 9,202 
Non-cash interest expense10,641 11,531 
Loss (gain) on sale or disposal of assets, net(2,432)10,039 
Loss on convertible notes derivative 126,600 
Loss on early extinguishment of debt3,492 22,235 
Asset impairments939 833 
Pension and other postretirement benefit obligations(51,353)(78,038)
Change in other assets and liabilities, net(8,888)11,832 
Cash provided by operating activities1,688 92,587 
Investing activities
Acquisitions, net of cash acquired(15,432) 
Purchase of property, plant and equipment(23,292)(15,821)
Proceeds from sale of real estate and other assets29,623 23,341 
Change in other investing activities(548)(335)
Cash provided by (used for) investing activities(9,649)7,185 
Financing activities
Payments of deferred financing costs(957)(33,921)
Borrowings under term loans80,000 1,045,000 
Repayments under term loans(74,879)(1,129,605)
Repayments of long-term debt(30,000) 
Acquisition of noncontrolling interests(2,050) 
Treasury stock(6,529)(2,030)
Changes in other financing activities(632)(423)
Cash used for financing activities(35,047)(120,979)
Effect of currency exchange rate change on cash(1,140)625 
Decrease in cash, cash equivalents and restricted cash(44,148)(20,582)
Cash, cash equivalents and restricted cash at beginning of period143,619 206,726 
Cash, cash equivalents and restricted cash at end of period$99,471 $186,144 
The accompanying notes are an integral part of these condensed consolidated financial statements.
4

GANNETT CO., INC.
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(Unaudited)
Three months ended June 30, 2022
Common stockAdditional
paid-in
capital
Accumulated other comprehensive income (loss)Accumulated deficitTreasury stock
Non-controlling interest(a)
In thousandsSharesAmountSharesAmountTotal
Balance at March 31, 2022151,017 $1,510 $1,397,516 $51,607 $(924,366)3,188 $(11,290)$(251)$514,726 
Net loss attributable to Gannett— — — — (53,688)— — (12)(53,700)
Restricted stock awards settled, net of withholdings— — (18)— — — — — (18)
Restricted share grants1,303 13 (13)— — — — —  
Other comprehensive loss, net(b)
— — — (4,860)— — — — (4,860)
Share-based compensation expense— — 5,385 — — — — — 5,385 
Issuance of common stock278 3 23 — — — — — 26 
Treasury stock— — — — — 863 (3,391)— (3,391)
Restricted share forfeiture— — — — — 1,759 (19)— (19)
Other activity— — (241)— — — — — (241)
Balance at June 30, 2022152,598 $1,526 $1,402,652 $46,747 $(978,054)5,810 $(14,700)$(263)$457,908 
Three months ended June 30, 2021
Common stockAdditional
paid-in
capital
Accumulated other comprehensive income (loss)Accumulated deficitTreasury stock
Non-controlling interest(a)
In thousandsSharesAmountSharesAmountTotal
Balance at March 31, 2021144,444 $1,444 $1,421,977 $53,596 $(928,753)1,902 $(6,612)$ $541,652 
Net income attributable to Gannett— — — — 15,115 — — — 15,115 
Restricted stock awards settled, net of withholdings5 — (11)— — — — — (11)
Equity component - 2027 Notes— — (32,534)— — — — — (32,534)
Other comprehensive income, net(b)
— — — 417 — — — — 417 
Share-based compensation expense— — 5,779 — — — — — 5,779 
Issuance of common stock190 2 — — — — — — 2 
Treasury stock— — — — — 63 (323)— (323)
Restricted share forfeiture— — — — — 50 — — — 
Other activity— — (20)— — — — — (20)
Balance at June 30, 2021144,639 $1,446 $1,395,191 $54,013 $(913,638)2,015 $(6,935)$ $530,077 
(a) Excludes Redeemable noncontrolling interests which are reflected in temporary equity.
(b) For the three months ended June 30, 2022 and 2021, Other comprehensive income is net of income tax provision of $3.3 million and income tax benefit of $0.4 million, respectively.
5

GANNETT CO., INC.
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - CONTINUED
(Unaudited)
Six months ended June 30, 2022
Common stockAdditional
paid-in
capital
Accumulated other comprehensive income (loss)Accumulated deficitTreasury stock
Non-controlling interest(a)
In thousandsSharesAmountSharesAmountTotal
Balance at December 31, 2021144,667 $1,446 $1,400,206 $59,998 $(921,399)2,368 $(8,151)$(2,485)$529,615 
Net loss attributable to Gannett— — — — (56,655)— — (147)(56,802)
Acquisition of noncontrolling interests— — (4,419)— — — — 2,369 (2,050)
Restricted stock awards settled, net of withholdings615 7 (1,559)— — — — — (1,552)
Restricted share grants7,031 70 (70)— — — — —  
Other comprehensive loss, net(c)
— — — (13,251)— — — — (13,251)
Share-based compensation expense— — 8,778 — — — — — 8,778 
Issuance of common stock285 3 85 — — — — — 88 
Treasury stock— — — — — 1,555 (6,529)— (6,529)
Restricted share forfeiture— — — — — 1,887 (20)— (20)
Other activity— — (369)— — — — — (369)
Balance at June 30, 2022152,598 $1,526 $1,402,652 $46,747 $(978,054)5,810 $(14,700)$(263)$457,908 
Six months ended June 30, 2021
Common stockAdditional
paid-in
capital
Accumulated other comprehensive income (loss)Accumulated deficitTreasury stock
Non-controlling interest(a)
In thousandsSharesAmountSharesAmountTotal
Balance at December 30, 2020139,495 $1,395 $1,103,881 $50,173 $(786,437)1,392 $(4,903)$ $364,109 
Net loss attributable to Gannett— — — — (127,201)— — — (127,201)
Restricted stock awards settled, net of withholdings1,062 10 (1,906)— — — — — (1,896)
Restricted share grants3,878 39 (39)— — — — —  
Equity component - 2027 Notes— — 283,718 — — — — — 283,718 
Other comprehensive income, net(c)
— — — 3,840 — — — — 3,840 
Share-based compensation expense— — 9,202 — — — — — 9,202 
Issuance of common stock204 2 61 — — — — — 63 
Remeasurement of redeemable noncontrolling interests— — 126 — — — — — 126 
Treasury stock— — — — — 393 (2,030)— (2,030)
Restricted share forfeiture— — — — — 230 (2)— (2)
Other activity— — 148 — — — — — 148 
Balance at June 30, 2021144,639 $1,446 $1,395,191 $54,013 $(913,638)2,015 $(6,935)$ $530,077 
(a) Excludes Redeemable noncontrolling interests which are reflected in temporary equity.
(c) For the six months ended June 30, 2022 and 2021, Other comprehensive income is net of income tax provision of $2.8 million and income tax benefit of $0.2 million, respectively.

The accompanying notes are an integral part of these condensed consolidated financial statements.
6

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 — Description of business and basis of presentation

Description of business
Gannett Co., Inc. ("Gannett", "we", "us", "our", or the "Company") is a subscription-led and digitally-focused media and marketing solutions company committed to empowering communities to thrive. Gannett operates a scalable, data-driven media platform that aligns with consumer and digital marketing trends. We aim to be the premier source for clarity, connections and solutions within our communities. Our strategy is focused on driving audience growth and engagement by delivering deeper content experiences to our consumers, while offering the products and marketing expertise our advertisers desire. We expect the execution of this strategy to enable us to continue our evolution from a more traditional print media business to a digitally-focused content platform.

On June 1, 2022, the Company announced a strategic organizational restructuring, which centralized the operations within each of its U.S. operating business units, Gannett Media and Digital Marketing Solutions ("DMS"). This change did not have any impact on segment reporting. However, the Company's historical Publishing segment will be referred to as Gannett Media moving forward. The Gannett Media reportable segment is an aggregation of two operating segments: Domestic Gannett Media (formerly referred to as Domestic Publishing) and Newsquest (formerly referred to as U.K. Publishing).

Our current portfolio of media assets includes USA TODAY, local media organizations in 45 states in the U.S., and Newsquest, a wholly-owned subsidiary operating in the United Kingdom (the "U.K.") with more than 150 local media brands. We also operate a digital marketing solutions company, branded LOCALiQ, which provides a cloud-based platform of products to enable small and medium-sized businesses to accomplish their marketing goals. In addition, we run what we believe is the largest media-owned events business in the U.S., USA TODAY NETWORK Ventures.

Through USA TODAY, our local property network, and Newsquest, we deliver high-quality, trusted content with a commitment to balanced, unbiased journalism, where and when consumers want to engage with it 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, Gannett Media and DMS. We also have a Corporate and other category that includes activities not directly attributable to a specific reportable segment and includes broad corporate functions such as legal, human resources, accounting, analytics, finance, and marketing. A full description of our reportable segments is included in Note 12 — Segment reporting in the notes to the condensed consolidated financial statements.

Impacts of the COVID-19 pandemic

As a result of the COVID-19 pandemic, we initially experienced a significant decline in Advertising and marketing services revenues, which accelerated the secular declines that we continue to experience. We continue to experience constraints on the sales of single copy newspapers, largely tied to reduced business travel. While COVID-19 related operating trends have improved since the second quarter of 2020, which represents the quarter that was most significantly impacted by the pandemic, we expect that the COVID-19 pandemic, and the resulting changes in consumer behavior, will continue to have a negative impact on our business and results of operations in the near-term, including lower revenues and attendance associated with events as compared to pre-COVID-19 pandemic levels and lower sales of single copy newspapers. If the COVID-19 pandemic were to revert to conditions that existed during 2020, including measures to help mitigate and control the spread of the virus, we would expect to experience further negative impacts in Advertising and marketing services revenues and Circulation revenues.

Basis of presentation

The condensed consolidated financial statements included in this report 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, 2021.

7

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 materially from those estimates.

Significant estimates inherent in the preparation of the condensed consolidated financial statements include pension and postretirement benefit obligation assumptions, income taxes, goodwill and intangible asset impairment analysis, valuation of property, plant and equipment and intangible assets.

Recent accounting pronouncements adopted

Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity

In August 2020, the Financial Accounting Standards Board (the "FASB") issued new guidance, ASU 2020-06, that simplifies the accounting for convertible instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock. In addition to eliminating certain accounting models, the guidance amends the disclosures for convertible instruments and earnings-per-share guidance. It also amends the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions. This guidance is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. The adoption of this guidance did not have a material impact on the accounting for the Company's $497.1 million in aggregate principal amount of 6.0% Senior Secured Convertible Notes due 2027 issued by the Company on November 17, 2020 (the "2027 Notes"), or the condensed consolidated financial statements.

Reference Rate Reform

In March 2020, the FASB issued guidance, ASU 2020-04, that provides optional expedients and exceptions for contracts, hedging relationships, and other transactions that reference the London Inter-bank Offered Rate ("LIBOR"). ASU 2020-04 is effective prospectively for all entities through December 31, 2022, when the reference rate replacement activity is expected to have been completed. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. During Q1 2022, the Company applied the optional expedient for contract modifications to the amendment of its five-year senior secured term loan facility in an aggregate principal amount of $516.0 million (the "New Senior Secured Term Loan") with Citibank N.A., as collateral agent and administrative agent for the lenders. The adoption of this guidance did not have a material impact on the condensed consolidated financial statements.

Disclosures by Business Entities about Government Assistance

In November 2021, the FASB issued new guidance, ASU 2021-10, that requires annual disclosures for transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy, including: (i) information about the nature of the transactions and related accounting policy used to account for the transactions; (ii) the line items on the condensed consolidated balance sheets and condensed consolidated statements of operations and comprehensive income (loss) affected by these transactions, including amounts applicable to each line; and (iii) significant terms and conditions of the transactions, including commitments and contingencies. The adoption of this guidance did not have a material impact on the condensed consolidated financial statements.

Accounting for Contract Assets and Contract Liabilities from Contracts with Customers in a Business Combination

In October 2021, the FASB issued new guidance, ASU 2021-08, that requires an acquirer to recognize and measure certain contract assets and contract liabilities in a business combination in accordance with ASC 606, "Revenue from Contracts with Customers", rather than at fair value on the acquisition date as required under current U.S. GAAP. This guidance is effective for fiscal years beginning after December 15, 2022, with early adoption permitted, including interim periods within those fiscal years. The early adoption of this guidance effective January 1, 2022 did not have a material impact on the condensed consolidated financial statements.

NOTE 2 — Revenues

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.

8

The Company’s condensed consolidated statements of operations and comprehensive income (loss) present 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 June 30,Six months ended June 30,
In thousands2022202120222021
Print advertising$173,453 $200,925 $346,971 $394,121 
Digital advertising and marketing services210,156 219,185 411,752 414,346 
Total advertising and marketing services383,609 420,110 758,723 808,467 
Circulation274,624 310,259 563,226 635,696 
Other90,427 73,906 174,788 137,196