3 and education worked together to leverage expertise. Special joint projects such as the “Dying to Work” series on illegal immigration multiplied the impact.  The move to our new headquarters in McLean, Va., was  completed. USA TODAY now has the facilities it needs and the company has a new home. markets for late news during a key ratings period for that age group. WGRZ-TV in Buffalo, N.Y., went from third to first place in late news for the first time in the station’s history. The three top stations for late news in the nation among  25-54 year olds in the November 2001 ratings were Gannett’s KARE-TV in Minneapolis, KSDK-TV in St. Louis and KUSA-TV in Denver.  The Division also smoothly completed the transition to a new leader with the retirement of Cecil Walker and the installation of Craig Dubow as president and CEO. Broadcast and our newspapers pulled out all the stops for coverage of the terrorist attacks in September and their after- math. Circulation spiked at USA TODAY and our community newspapers just after 9/11. Records were set.  The lesson was clear: People who said our industry was dying were simply wrong. People crave news in times of crisis and Gannett is ready to deliver it in a multitude of ways – in print, on the air and online. We have virtually 100% name recognition in our markets and the credibility to back it up.  Gannett’s community newspapers moved forward on all fronts during 2001. Major press projects were approved and money was committed to upgrading facilities at The Courier- Journal in Louisville, Ky., The Honolulu Advertiser and the Detroit Newspapers. On the editorial side, the Newspaper Division continued its pursuit of the critically important young reader. The 300-page “X Manual” was compiled to help the papers share ideas such as redesigned and repurposed classified sections and enhanced entertainment or business coverage.  USA TODAY’s association with Gannett Broadcasting grew during the year as USA TODAY LIVE brought more USA TODAY content to our television stations every day. An agree- ment with The Weather Channel to share content with USA TODAY – in print, online and on the air – was announced.  Another example of convergence is the cross-divisional  cooperation among The Arizona Republic, KPNX-TV and  their joint Web site, azcentral.com. Stories on business, sports Gannett’s financial discipline and good sense have gotten us through a tough year. And those principles make the good years all the better.  So, we have a number of positives to contemplate as we  move into 2002, not the least of which is the hope for a recovery in the latter half of the year. There is also the return of the Olympics and some hot political races. And, the Federal Communications Commission is finally in the midst of reviewing the antiquated cross-ownership rules that have dampened progress in our industry.  And the easing of interest rates by the Federal Reserve Board has benefited Gannett greatly. We ended the year with about  $5.1 billion of debt.  A change in the accounting rules for goodwill and intangible assets was announced in 2001, allowing us to improve the way  we will report EPS in 2002. As a result, our amortization expense for these assets will be reduced by approximately $234 million. The uneven newsprint market, which began the year with an announced increase of $50 per metric ton, turned in our favor. Supply and demand would not support the higher prices and,  in fact, resulted in significant downward pressure on prices. Gannett now is buying newsprint at some of the lowest prices in 10 years. FROM DOUGLAS H. MCCORKINDALE, CHAIRMAN, PRESIDENT AND CEO