diff --git a/examples/ansible.cfg b/examples/ansible.cfg
index 1a592d3e355..4312ec9d824 100644
--- a/examples/ansible.cfg
+++ b/examples/ansible.cfg
@@ -24,9 +24,11 @@ transport      = smart
 remote_port    = 22
 module_lang    = C
 
-# controls implicit fact gathering (always, never or smart).
-# smart gathers only if not currently in memory.
-# does NOT affect explicit 'gather_facts' entries.
+# This setting controls implicit fact gathering, valid values are
+# implicit, explicit or smart (default).
+# smart gathers only if facts for that host are not currently in memory.
+# implicit set the default of gather_facts to True, explicit sets it
+# to False. This does NOT affect explicit 'gather_facts' entries.
 gathering = smart
 
 # additional paths to search for roles in, colon separated
diff --git a/lib/ansible/playbook/__init__.py b/lib/ansible/playbook/__init__.py
index 88e054c3c8f..88dd0f5f4bc 100644
--- a/lib/ansible/playbook/__init__.py
+++ b/lib/ansible/playbook/__init__.py
@@ -485,7 +485,7 @@ class PlayBook(object):
             host_list = [h for h in host_list if h not in self.SETUP_CACHE or 'module_setup' not in self.SETUP_CACHE[h]]
             if len(host_list) == 0:
                 return {}
-        elif play.gather_facts is False or (play.gather_facts is None and C.DEFAULT_GATHERING == 'never'):
+        elif play.gather_facts is False or (play.gather_facts is None and C.DEFAULT_GATHERING == 'explicit'):
             return {}
 
         self.callbacks.on_setup()