THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1. BASIS OF PRESENTATION

In the opinion of management of The New York Times Company (the “Company”), the Condensed Consolidated Financial Statements present fairly the financial position of the Company as of ~~September 24, 2017~~March 27, 2022, and December ~~25, 2016,~~26, 2021, and the results of operations, changes in stockholders’ equity and cash flows of the Company for the periods ended ~~September 24, 2017~~March 27, 2022, and ~~September 25, 2016.~~March 28, 2021. The Company and its consolidated subsidiaries are referred to collectively as “we,” “us” or “our.” All adjustments necessary for a fair presentation have been included and are of a normal and recurring nature. All significant intercompany accounts and transactions have been eliminated in consolidation. The financial statements were prepared in accordance with the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain notes or other financial information that are normally required by accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted from these interim financial statements. These financial statements, therefore, should be read in conjunction with the Consolidated Financial Statements and related Notes included in our Annual Report on Form 10-K for the year ended December ~~25, 2016.~~26, 2021. Due to the seasonal nature of our business, operating results for the interim periods are not necessarily indicative of a full year’s operations. The fiscal periods included herein comprise 13 weeks for the ~~third~~first quarter.

In December 2021, the Board of Directors approved a resolution to change the Company’s fiscal year from a 52/53 week fiscal year ending the last Sunday of December to a calendar year. Accordingly, the Company’s 2022 fiscal year, which commenced December 27, 2021, will be extended from December 25, 2022, to December 31,2022, and subsequent fiscal years will begin on January 1 and end on December 31 of each year.

On February 1, 2022, we acquired The Athletic Media Company (“The Athletic”), a global digital subscription-based sports media business that provides national and local coverage of more than 200 clubs and teams in the U.S. and around the world. For the first quarter of 2022, the results of The Athletic have been included in our Condensed Consolidated Financial Statements beginning February 1, 2022. The Athletic is a separate reportable segment of the Company. As a result, beginning in the first quarter of 2022, we have two reportable segments: The New York Times Group and The Athletic. Management, including the Company’s President and Chief Executive Officer (who is the Company’s Chief Operating Decision Maker), uses adjusted operating profit by segment (as defined below) in assessing performance and allocating resources. The Company includes in its presentation revenues and adjusted operating costs (as defined below) to arrive at adjusted operating profit by segment.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in our Condensed Consolidated Financial Statements. Actual results could differ from these estimates.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Except as described herein, as of ~~September 24, 2017,~~March 27, 2022, our significant accounting policies, which are detailed in our Annual Report on Form 10-K for the year ended December ~~25, 2016,~~26, 2021, have not ~~changed:~~

~~Marketable Securities~~

We have investments in marketable debt securities. We determine the appropriate classification of our investments at the date of purchase and reevaluate the classifications at the balance sheet date. Marketable debt securities with maturities of 12 months or less are classified as short-term. Marketable debt securities with maturities greater than 12 months are classified as long-term. Historically, we have accounted for all marketable securities as held-to-maturity (“HTM”) and stated at amortized cost as we had the intent and ability to hold our marketable debt securities until maturity. However, on June 29, 2017, our Board of Directors approved a change to the Company’s cash reserve investment policy to allow the Company to sell marketable securities prior to maturity. Beginning in the third quarter of 2017, the Company reclassified all marketable securities from HTM to available-for-sale (“AFS”).

Securities that we might not hold until maturity are classified as AFS securities and reported at fair value. Unrealized gains and losses, after applicable income taxes, are reported in accumulated other comprehensive income/(loss).

We conduct an other-than-temporary impairment (“OTTI”) analysis on a quarterly basis or more often if a potential loss-triggering event occurs. We consider factors such as the duration, severity and the reason for the decline in value, the potential recovery period and whether we intend to sell. For AFS securities, we also consider whether (i) it is more likely than not that we will be required to sell the debt securities before recovery of their amortized cost basis and (ii) the amortized cost basis cannot be recovered as a result of credit losses.

~~Other~~

As of the second quarter of 2017, the Company has renamed “circulation revenues” as “subscription revenues.” Subscription revenues consist of revenues from subscriptions to our print and digital products (including our news product, as well as Crossword and Cooking products), as well as single-copy sales of our print products (which comprise approximately 10% of these revenues). These revenues are based on both the number of copies of the printed newspaper sold and digital-only subscriptions, and the rates charged to the respective customers.changed materially.

Recently Adopted Accounting Pronouncements

In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, “Compensation-Stock Compensation,” which provides guidance on accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This guidance became effective for the Company for fiscal years beginning after December 25, 2016.

~~As a result of the adoption of ASU 2016-09 in the first quarter of 2017, we recognized excess tax windfalls in income tax expense rather than additional paid-in capital of~~ ~~$0.1 million~~ ~~and $0.2 million for the quarter and nine months ended~~

~~THE NEW YORK TIMES COMPANY~~

~~NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

September 24, 2017, respectively. Excess tax shortfalls and/or windfalls for share-based payments are now included in net cash from operating activities rather than net cash from financing activities. The changes have been applied prospectively in accordance with the ASU and prior periods have not been adjusted. Additionally, the presentation of employee taxes paid to taxing authorities for share-based transactions are now included in net cash from financing activities rather than net cash from operating activities. This change was applied retrospectively and as a result, we reclassified $9.6 million for the nine months ended September 25, 2016 in our Condensed Statement of Cash Flows from operating activities to financing activities. No other material changes resulted from the adoption of this standard.


Accounting Standard Update(s)	Topic	Effective Period	Summary
2021-08	Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers	Fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is permitted.	Requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 2014-09, Revenue from Contracts with Customers (Topic 606). The update will generally result in an entity recognizing contract assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date rather than at fair value. The Company adopted this guidance on December 27, 2021. As a result of The Athletic acquisition, the Company assumed unexpired subscriptions revenue of $28.1 million.

Recently Issued Accounting Pronouncements

In March 2017, the FASB issued ASU 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The new guidance requires the service cost component to be presented separately from the other components of net benefit costs. Service cost will be presented with other employee compensation cost within operations. The other components of net benefit cost, such as interest cost, amortization of prior service cost and gains or losses are required to be presented outside of operations. The new guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The guidance should be applied retrospectively for the presentation of the service cost component in the income statement and allows a practical expedient for the estimation basis for applying the retrospective presentation requirements.

Since the changes required in ASU 2017-07 only change the Condensed Consolidated Statements of Operations classification of the components of net periodic benefit cost, no changes are expected to net income. Upon adoption of the ASU during the first quarter of 2018, the Company will separately present the components of net periodic benefit cost or income, excluding the service cost component, in non-operating expenses on a retrospective basis. The historical components of net periodic benefit cost are disclosed in the Company’s previously filed Quarterly Reports on Form 10-Q and its 2016 Annual Report on Form 10-K.

In June 2016, FASB issued ASU 2016-13, “Financial Instruments - Credit Losses.” The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale (AFS) debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The new guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. We are currently in the process of evaluating the impact of this guidance on our consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases,” which provides guidance on accounting for leases and disclosure of key information about leasing arrangements. The guidance requires lessees to recognize the following for all operating and finance leases at the commencement date: (1) a lease liability, which is the obligation to make lease payments arising from a lease, measured on a discounted basis and (2) a right-of-use asset representing the lessee’s right to use, or control the use of, the underlying asset for the lease term. A lessee is permitted to make an accounting policy election not to recognize lease assets and lease liabilities for short-term leases with a term of 12 months or less. The guidance does not fundamentally change lessor accounting; however, some changes have been made to align that guidance with the lessee guidance and other areas within GAAP. This guidance becomes effective for the Company for fiscal years beginning after December 30, 2018. Early application is permitted. This guidance will be applied on a modified retrospective basis for leases existing at, or entered into after, the earliest period presented in the financial statements. We are currently in the process of evaluating the impact of the new leasing guidance and expect that most of our operating lease commitments will be subject to the new standard. The adoption of the standard will require us to add right-of-use assets and lease liabilities onto our balance sheet. Based upon our initial evaluation, we do not expect the adoption of the standard to have a material effect on our results of operations and liquidity.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities” which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments including requirements to measure most equity investments at fair value with changes in fair value recognized in net income, to perform a qualitative assessment of equity investments without readily determinable fair values, and to separately present financial assets and liabilities by measurement category and by type of financial asset on the balance sheet or the accompanying notes to the financial statements. The new guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. We are currently in the process of evaluating the impact of this guidance on our consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which prescribes a single comprehensive model for entities to use in the accounting for revenue arising from contracts with customers. The new guidance

~~THE NEW YORK TIMES COMPANY~~

~~NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

will supersede virtually all existing revenue guidance under GAAP and International Financial Reporting Standards and is effective for fiscal years beginning after December 31, 2017. There are two transition options available to entities: the full retrospective approach or the modified retrospective approach. Under the full retrospective approach, the Company would restate prior periods in compliance with Accounting Standards Codification 250, “Accounting Changes and Error Corrections.” Alternatively, the Company may elect the modified retrospective approach, which allows for the new revenue standard to be applied to existing contracts as of the effective date with a cumulative catch-up adjustment recorded to retained earnings. We currently anticipate adopting the new standard using the modified retrospective method beginning January 1, 2018.

Subsequently, in March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” which clarifies the implementation guidance on principal versus agent considerations in ASU 2014-09. In April 2016, the FASB also issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing,” to reduce the cost and complexity of applying the guidance on identifying promised goods or services when identifying a performance obligation and improve the operability and understandability of the licensing implementation guidance. In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow Scope Improvements and Practical Expedients,” to reduce the cost and complexity of applying the guidance to address certain issues on assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. The amendments in ASU 2014-09, 2016-10, and 2016-12 do not change the core principle of ASU 2014-09.

Based upon our initial evaluation, we do not expect the adoption of ASU 2014-09 to have a material effect on our financial condition or results of operations. While we continue to evaluate the impact of the new revenue guidance, we currently believe that the most significant changes will be primarily related to how we account for certain licensing arrangements in the other revenue category.

The Company considers the applicability and impact of all recently issued accounting pronouncements. Recent accounting pronouncements not specifically identified in our disclosures are either not applicable to the Company or are not expected to have a material effect on our financial condition or results of operations.

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 3. REVENUE

We generate revenues principally from subscriptions and advertising. Subscription revenues consist of revenues from subscriptions to our digital and print products (which include our news product, as well as The Athletic and our Games, Cooking, Audm and Wirecutter products), and single-copy and bulk sales of our print products. Subscription revenues are based on both the number of copies of the printed newspaper sold and digital-only subscriptions, and the rates charged to the respective customers.

Advertising revenue is principally from advertisers (such as technology, financial and luxury goods companies) promoting products, services or brands on digital platforms in the form of display ads, audio and video, and in print in the form of column-inch ads. Advertising revenue is primarily derived from offerings sold directly to marketers by our advertising sales teams. A smaller proportion of our total advertising revenues is generated through programmatic auctions run by third-party ad exchanges. Advertising revenue is primarily determined by the volume (e.g., impressions), rate and mix of advertisements. Digital advertising includes our core digital advertising business and other digital advertising. Our core digital advertising business includes direct-sold website, mobile application, podcast, email and video advertisements. Advertising revenue from The Athletic is primarily podcast revenue and therefore is reflected in this category. Direct-sold display advertising, a component of core digital advertising, includes offerings on websites and mobile applications sold directly to marketers by our advertising sales teams. Other digital advertising includes open-market programmatic advertising and creative services fees. Print advertising includes revenue from column-inch ads and classified advertising as well as preprinted advertising, also known as freestanding inserts.

Other revenues primarily consist of revenues from licensing, Wirecutter affiliate referrals, commercial printing, the leasing of floors in the New York headquarters building located at 620 Eighth Avenue, New York, New York (the “Company Headquarters”), retail commerce, our student subscription sponsorship program, our live events business and television and film.

Subscription, advertising and other revenues were as follows:


	For the Quarters Ended
(In thousands)	March 27, 2022		As % of total		March 28, 2021		As % of total
Subscription	$	371,979	69.2	%	$	329,084	69.6	%
Advertising	116,270		21.5	%	97,116		20.5	%
Other (1)	49,176		9.3	%	46,845		9.9	%
Total	$	537,425	100.0	%	$	473,045	100.0	%

(1) Other revenues include building rental revenue, which is not under the scope of Revenue from Contracts with Customers (Topic 606). Building rental revenue was approximately $7 million and $6 million for the firstquarters of 2022 and 2021, respectively.

The following table summarizes digital and print subscription revenues, which are components of subscription revenues above, for the quarters ended March 27, 2022, and March 28, 2021:


	For the Quarters Ended
(In thousands)	March 27, 2022		As % of total		March 28, 2021		As % of total
Digital-only subscription revenues (1)	$	226,763	61.0	%	$	179,599	54.6	%
Print subscription revenues:
Domestic home delivery subscription revenues (2)	131,391		35.3	%	134,395		40.8	%
Single-copy, NYT International and Other subscription revenues (3)	13,825		3.7	%	15,090		4.6	%
Subtotal print subscription revenues	145,216		39.0	%	149,485		45.4	%
Total subscription revenues	$	371,979	100.0	%	$	329,084	100.0	%
(1) Includes revenue from digital-only bundled and standalone subscriptions to the Company’s news product, as well as The Athletic and our Games, Cooking, Audm and Wirecutter products.
(2) Domestic home delivery subscriptions include access to digital news, Games, Cooking and Wirecutter products.
(3) NYT International is the international edition of our print newspaper.

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table summarizes digital and print advertising revenues, which are components of advertising revenues above, for the quarters ended March 27, 2022, and March 28, 2021:


	For the Quarters Ended
(In thousands)	March 27, 2022		As % of total		March 28, 2021		As % of total
Advertising revenues:
Digital	$	67,014	57.6	%	$	59,496	61.3	%
Print	49,256		42.4	%	37,620		38.7	%
Total advertising	$	116,270	100.0	%	$	97,116	100.0	%

Performance Obligations

We have remaining performance obligations related to digital archive and other licensing and certain advertising contracts. As of March 27, 2022, the aggregate amount of the transaction price allocated to the remaining performance obligations for contracts with a duration greater than one year was approximately $128 million. The Company will recognize this revenue as performance obligations are satisfied. We expect that approximately $35 million, $25 million and $68 million will be recognized in the remainder of 2022, 2023 and thereafter through 2028, respectively.

Contract Assets

As of March 27, 2022, and December 26, 2021, the Company had $3.6 million and $3.4 million, respectively, in contract assets recorded in the Condensed Consolidated Balance Sheets related to digital archiving licensing revenue. The contract asset is reclassified to Accounts receivable when the customer is invoiced based on the contractual billing schedule.

NOTE 3.4. MARKETABLE SECURITIES

~~As noted in Note 2, the~~The Company ~~reclassified all~~accounts for its marketable securities ~~from HTM to AFS in the third quarter~~as available for sale (“AFS”). The Company recorded $9.7 million and $1.7 million of 2017, following a change to the Company’s cash reserve investment policy that allows the Company to sell marketable securities prior to maturity. This change resulted in the recording of a $1.1 million net unrealized ~~loss~~losses inAccumulated other comprehensive ~~income. The reclassification~~income (“AOCI”) as of ~~the investment portfolio to AFS was made to provide increased flexibility in the use of our investments to support current operations.~~March 27, 2022, and December 26, 2021, respectively.

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following ~~table presents~~tables present the amortized cost, gross unrealized gains and losses, and fair market value of our AFS securities as of ~~September 24, 2017:~~March 27, 2022, and December 26, 2021:


	March 27, 2022
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value

Short-term AFS securities
U.S. Treasury securities	$	28,481	$	4	$	(217)	$	28,268

Corporate debt securities	22,681		12		(157)		22,536


Municipal securities	2,000		—		(16)		1,984
Total short-term AFS securities	$	53,162	$	16	$	(390)	$	52,788
Long-term AFS securities
Corporate debt securities	$	167,793	$	—	$	(6,365)	$	161,428
U.S. Treasury securities	56,576		—		(1,892)		54,684
U.S. governmental agency securities	28,804		—		(850)		27,954
Municipal securities	8,932		—		(183)		8,749
Total long-term AFS securities	$	262,105	$	—	$	(9,290)	$	252,815


	December 26, 2021
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value

Short-term AFS securities
U.S. Treasury securities	$	148,899	$	692	$	(43)	$	149,548
Corporate debt securities	107,158		245		(69)		107,334
Certificates of deposit	55,551		—		—		55,551
Commercial paper	21,145		—		—		21,145
Municipal securities	3,999		—		(2)		3,997
U.S. governmental agency securities	3,500		—		—		3,500
Total short-term AFS securities	$	340,252	$	937	$	(114)	$	341,075
Long-term AFS securities
Corporate debt securities	$	242,764	$	149	$	(1,858)	$	241,055
U.S. Treasury securities	119,695		—		(549)		119,146
U.S. governmental agency securities	39,498		—		(252)		39,246
Municipal securities	13,994		—		(61)		13,933
Total long-term AFS securities	$	415,951	$	149	$	(2,720)	$	413,380

September 24, 2017
(In thousands) Amortized Cost Gross unrealized gains Gross unrealized losses Fair Value
Short-term AFS securities
U.S Treasury securities $ 73,220
$ —
$ (45 ) $ 73,175
Corporate debt securities 156,683
35
(79 ) 156,639
U.S. governmental agency securities 53,842
1
(89 ) 53,754
Certificates of deposit 20,403
—
—
20,403
Commercial paper 32,471
—
—
32,471
Total short-term AFS securities $ 336,619
$ 36
$ (213 ) $ 336,442
Long-term AFS securities
U.S. governmental agency securities $ 97,431
$ 2
$ (616 ) 96,817
Corporate debt securities 97,583
21
(259 ) 97,345
U.S Treasury securities 47,672
—
(52 ) 47,620
Total long-term AFS securities $ 242,686
$ 23
$ (927 ) $ 241,782

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following ~~table represents~~tables represent the AFS securities as of ~~September 24, 2017~~March 27, 2022, and December 26, 2021, that were in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position:


	March 27, 2022
	Less than 12 Months				12 Months or Greater				Total
(In thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses

Short-term AFS securities
U.S. Treasury securities	$	24,589	$	(217)	$	—	$	—	$	24,589	$	(217)
Corporate debt securities	13,887		(157)		—		—		13,887		(157)


Municipal securities	1,984		(16)		—		—		1,984		(16)
Total short-term AFS securities	$	40,460	$	(390)	$	—	$	—	$	40,460	$	(390)
Long-term AFS securities
Corporate debt securities	$	154,995	$	(6,253)	$	6,433	$	(112)	$	161,428	$	(6,365)
U.S. Treasury securities	51,923		(1,805)		2,761		(87)		54,684		(1,892)
U.S. governmental agency securities	27,954		(850)		—		—		27,954		(850)
Municipal securities	8,749		(183)		—		—		8,749		(183)
Total long-term AFS securities	$	243,621	$	(9,091)	$	9,194	$	(199)	$	252,815	$	(9,290)


	September 24, 2017																December 26, 2021
	Less than 12 Months					12 Months or Greater					Total						Less than 12 Months				12 Months or Greater				Total
(In thousands)	Fair Value		Gross unrealized losses			Fair Value		Gross unrealized losses			Fair Value		Gross unrealized losses			(In thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses

Short-term AFS securities																Short-term AFS securities
U.S Treasury securities	$	73,175	$	(45	)	$	—	$	—		$	73,175	$	(45	)
U.S. Treasury securities																U.S. Treasury securities	$	61,018	$	(43)	$	—	$	—	$	61,018	$	(43)
Corporate debt securities	101,648		(77		)	2,500		(2		)	104,148		(79		)	Corporate debt securities	53,148		(69)		—		—		53,148		(69)
U.S. governmental agency securities	42,490		(53		)	8,964		(36		)	51,454		(89		)
Municipal securities																Municipal securities	1,998		(2)		—		—		1,998		(2)

Total short-term AFS securities	$	217,313	$	(175	)	$	11,464	$	(38	)	$	228,777	$	(213	)	Total short-term AFS securities	$	116,164	$	(114)	$	—	$	—	$	116,164	$	(114)
Long-term AFS securities																Long-term AFS securities
Corporate debt securities																Corporate debt securities	$	224,022	$	(1,858)	$	—	$	—	$	224,022	$	(1,858)
U.S. Treasury securities																U.S. Treasury securities	119,146		(549)		—		—		119,146		(549)
U.S. governmental agency securities	$	47,620	$	(312	)	$	—	(304		)	$	47,620	$	(616	)	U.S. governmental agency securities	39,246		(252)		—		—		39,246		(252)
Corporate debt securities	66,428		(196		)	8,918		(63		)	75,346		(259		)
U.S Treasury securities	53,142		(52		)	39,697		—			92,839		(52		)
Municipal securities																Municipal securities	13,933		(61)		—		—		13,933		(61)
Total long-term AFS securities	$	167,190	$	(560	)	$	48,615	$	(367	)	$	215,805	$	(927	)	Total long-term AFS securities	$	396,347	$	(2,720)	$	—	$	—	$	396,347	$	(2,720)

We ~~periodically review our~~assess AFS securities ~~for OTTI. See Note 2 for factors we consider when assessing AFS securities for OTTI.~~ on a quarterly basis or more often if a potential loss-triggering event occurs.

As of ~~September 24, 2017,~~March 27, 2022, and December 26, 2021, we did not intend to sell and it was not likely that we would be required to sell these investments before recovery of their amortized cost basis, which may be at maturity. Unrealized losses related to these investments are primarily due to interest rate fluctuations as opposed to changes in credit quality. Therefore, as of ~~September 24, 2017,~~March 27, 2022, and December 26, 2021, we have recognized no ~~OTTI loss.~~

~~The following table presents the amortized cost of our HTM securities as of December 25, 2016:~~

December 25, 2016
(In thousands)

Amortized Cost
Short-term HTM securities (1)

U.S Treasury securities $ 150,623
Corporate debt securities 150,599
U.S. governmental agency securities 64,135
Commercial paper 84,178
Total short-term HTM securities $ 449,535
Long-term HTM securities (1)

U.S. governmental agency securities $ 110,732
Corporate debt securities 61,775
U.S Treasury securities 14,792
Total long-term HTM securities $ 187,299

⁽¹⁾ ~~All HTM securities were recorded at amortized cost and not adjusted~~losses or allowance for credit losses related to fair value in accordance with the HTM accounting treatment. As of December 25, 2016, the amortized cost approximated fair value because of the short-term maturity and highly liquid nature of these investments.

As of September 24, 2017, our short-term and long-term marketable securities had remaining maturities of less than 1 month to 12 months and 13 months to 34 months, respectively. See Note 8 for additional information regarding the fair value of our marketableAFS securities.

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

As of March 27, 2022, our short-term and long-term marketable securities had remaining maturities of less than one month to 12 months and 13 months to 32 months, respectively. See Note 8 for more information regarding the fair value of our marketable securities.

NOTE ~~4. GOODWILL AND INTANGIBLES~~5. BUSINESS COMBINATION

In 2016, the Company acquired two digital marketing agencies, HelloSociety, LLC and Fake Love, LLC for an aggregate of $15.4 million in separate all-cash transactions. Also in 2016, the Company acquired Submarine Leisure Club, Inc., which owned the product review and recommendation websites The Wirecutter and The Sweethome, in an all-cash transaction. We paid $25.0 million, including a payment made for a non-compete agreement, and also entered into a consulting agreement and retention agreements that will likely require payments over the three years following the acquisition.Athletic Acquisition

The Company accounts for business combinations using the acquisition method of accounting. The purchase price is allocated to the ~~purchase prices for these acquisitions based on the final valuation of~~ assets acquired and liabilities assumed ~~resulting~~using the fair values determined by management as of the acquisition date. The excess of the purchase price over the estimated fair value of the net assets acquired is recorded as goodwill. The results of businesses acquired in ~~allocations~~a business combination are included in the Company’s consolidated financial statements from the date of acquisition.

On February 1, 2022, the Company acquired The Athletic in an all-cash transaction. The consideration paid of approximately $550 million was funded from cash on hand and included $523.5 million which we determined to ~~goodwill, intangibles, property, plant~~be the purchase price for assets acquired and ~~equipment~~liabilities assumed, and ~~other miscellaneous assets.~~$26.7 million paid in connection with the acceleration of The Athletic stock options. The stock options acceleration is included in Acquisition-related costs in our Condensed Consolidated Statements of Operations as of March 27, 2022.

The ~~aggregate carrying amount of intangible assets of $8.6 million related to these acquisitions~~purchase price allocation has been ~~included~~prepared on a preliminary basis. As additional information becomes available, the Company may revise the allocation to certain assets and liabilities, including tax estimates. The Company will finalize the acquisition accounting within the required measurement period of one year.

The following table summarizes the preliminary allocation of the purchase price (at fair value) to the assets acquired and liabilities assumed of The Athletic as of February 1, 2022 (the date of acquisition):


(In thousands)	Preliminary Purchase Price Allocation		Estimated Useful Life (in years)
Total current assets	$	18,495
Property, plant and equipment	281		3- 5
Right of use asset (1)	2,612
Trademark (2)	160,000		20
Existing subscriber base (2)	135,000		12
Developed technology (2)	35,000		5
Content archive (2)	2,000		2
Goodwill	249,792		Indefinite
Total current liabilities (3)	(41,107)
Other liabilities — Other	(3,491)
Deferred tax liability, net (4)	(35,116)

Total purchase price	$	523,466

(1) Included in ~~“Miscellaneous Assets”~~Miscellaneous assets in our Condensed Consolidated Balance Sheets.

(2) Included in Intangible assets, net in our Condensed Consolidated Balance Sheets.

(3) Includes Unexpired subscriptions revenue of $28.1 million.

(4) Included in Deferred income taxes in our Condensed Consolidated Balance Sheets.

Goodwill is primarily attributable to future subscribers expected to be acquired both organically and through synergies from adding The Athletic to the Company’s products as well as the acquired assembled workforce. Goodwill is not expected to be deductible for tax purposes. The fair value of trademarks is estimated ~~useful lives~~using a relief from royalty valuation method, the fair

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

value of subscriber relationships is estimated using a multi-period excess earnings valuation method, and the fair value of developed technology and content archive is estimated using a replacement cost method.

The following unaudited pro forma summary presents consolidated information of the Company, including The Athletic, as if the business combination had occurred on December 27, 2021, the earliest period presented herein:


	For the Quarters Ended
(In thousands)	March 27, 2022		March 28, 2021
Revenue	$	544,572	$	487,167
Net income/(loss)	28,045		(8,215)

The pro forma adjustments include (1) transaction costs and other one-time non-recurring costs which reduced expenses by $47.8 million for ~~these~~the quarter ended March 27, 2022 and increased expenses by $47.8 million for the quarter ended March 28, 2021, (2) recognition of additional amortization related to the intangible assets ~~range~~acquired (3) alignment of accounting policies (4) recognition of the estimated income tax impact of the pro forma adjustments. The pro forma does not reflect cost savings or operating synergies expected to result from ~~3 to 7 years~~the acquisition. These pro forma results are illustrative only and not indicative of the actual results of operations that would have been achieved nor are ~~amortized on a straight-line basis.~~they indicative of future results of operations.

Goodwill and Intangibles

The changes in the carrying amount of goodwill as of ~~September 24, 2017,~~March 27, 2022, and since December ~~25, 2016,~~26, 2021, were as follows:

(In thousands) Total Company
Balance as of December 25, 2016 $ 134,517
Measurement period adjustment ⁽¹⁾
(198 )
Foreign currency translation 8,852
Balance as of September 24, 2017 $ 143,171

~~(1)Includes measurement period adjustment in connection with the Submarine Leisure Club, Inc. acquisition.~~


(In thousands)	The New York Times Group		The Athletic		Total
Balance as of December 27, 2020	$	171,657	$	—	$	171,657
Foreign currency translation	(5,297)		0		(5,297)
Balance as of December 26, 2021	166,360		—		166,360
Foreign currency translation	(1,952)		—		(1,952)
Acquisition of The Athletic	—		249,792		249,792
Balance as of March 27, 2022	$	164,408	$	249,792	$	414,200

The foreign currency translation line item reflects changes in goodwill resulting from fluctuating exchange rates related to the consolidation of certain international subsidiaries.

~~NOTE 5. INVESTMENTS~~

~~Equity Method Investments~~

As of ~~September 24, 2017, our investments in joint ventures totaled $20.5 million~~March 27, 2022, the gross book value and ~~we had equity ownership interests in~~accumulated amortization of acquired intangible assets from the ~~following entities:~~acquisition of The Athletic were as follows:


(In thousands)	Gross book value		Accumulated amortization		Net book value
Trademark	$	160,000	$	(1,333)	$	158,667
Existing subscriber base	135,000		(1,875)		133,125
Developed technology	35,000		(1,167)		33,833
Content archive	2,000		(167)		1,833
Total	$	332,000	$	(4,542)	$	327,458



~~Company~~	~~Approximate %~~ ~~Ownership~~
~~Donohue Malbaie Inc.~~	49	%
~~Madison Paper Industries~~	40	%

We have investments in Donohue Malbaie Inc. (“Malbaie”), a Canadian newsprint company, and Madison Paper Industries (“Madison”), a partnership that previously operated a supercalendered paper mill in Maine. In the third quarter of 2017, we sold our 30% ownership in Women in the World Media, LLC, a live event conference business, for a nominal amount.

The Company and UPM-Kymmene Corporation (“UPM”), a Finnish paper manufacturing company, are partners through subsidiary companies in Madison. The Company’s 40% ownership of Madison is through an 80%-owned consolidated subsidiary which owns 50% of Madison. UPM owns 60% of Madison, including a 10% interest through a 20% noncontrolling interest in the consolidated subsidiary of the Company. The paper mill was closed in May 2016. During the first quarter of 2016, we recognized a $41.4 million loss from joint ventures related to the closure. The Company’s proportionate share of the loss was $20.1 million after tax and net of noncontrolling interest. As a result of the mill closure, we wrote our investment down to zero.

The Company’s joint venture in Madison is currently being liquidated. In the fourth quarter of 2016, Madison sold certain assets at the mill site and we recognized a gain of $3.9 million related to the sale. In the third quarter of 2017, Madison sold the remaining assets at the mill site (which primarily consisted of hydro power assets), and the Company recognized a gain of $30.1 million related to this sale. The Company’s proportionate share of the gain was $16.1 million after tax and net of noncontrolling interest.

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Amortization expense for intangible assets from the acquisition of The ~~following table presents summarized income statement information for Madison, which follows a calendar year:~~

For the Quarters Ended For the Nine Months Ended
(In thousands) September 30, 2017
September 30, 2016
September 30, 2017
September 30, 2016
Revenues $ —
$ —
$ —
$ 40,523
Expenses:
Cost of sales (105 ) (1,450 ) (1,277 ) (68,039 )
General and administrative income/(expense) and other 60,216
(566 ) 59,662
(66,056 )
Total costs and expenses 60,111
(2,016 ) 58,385
(134,095 )
Operating income/(loss) 60,111
(2,016 ) 58,385
(93,572 )
Other (expense)/income (1 ) 2
(7 ) 4
Net income/(loss) $ 60,110
$ (2,014 ) $ 58,378
$ (93,568 )

~~We received no distributions from~~Athletic included in Depreciation and amortization in our ~~equity method investments during the quarters and nine months ended September 24, 2017 and September 25, 2016.~~

~~We purchase newsprint from Malbaie, and previously purchased supercalendered paper from Madison, at competitive prices. These purchases totaled $2.3~~Condensed Consolidated Statements of Operations was $4.5 million ~~and $3.7 million~~as of March 27, 2022. The estimated aggregate amortization expense for the ~~third quarters ended September 24, 2017,~~remainder of 2022 and ~~September 25, 2016, respectively, and $7.7 million and $10.3 million for~~each of the ~~nine-month periods ended September 24, 2017, and September 25, 2016, respectively.~~following fiscal years ending December 31 is presented below:

~~Cost Method Investments~~


(In thousands)
Remainder of 2022	$	20,438
2023	27,500
2024	27,500
2025	27,500
2026	27,500
Thereafter	197,020
Total amortization expense	$	327,458

The aggregate carrying ~~amounts~~amount of ~~cost method investments~~intangible assets of $343.4 million, which includes an indefinite-lived intangible of $9.0 million, is included in ~~“Miscellaneous assets’’~~Intangible assets, net in our Condensed Consolidated Balance Sheets ~~were $14.0 million and $13.6 million for September 24, 2017 and December 25, 2016, respectively.~~as of March 27, 2022.

NOTE 6. ~~DEBT OBLIGATIONS~~INVESTMENTS

Non-Marketable Equity Securities

Our ~~indebtedness consisted~~non-marketable equity securities are investments in privately held companies/funds without readily determinable market values. Gains and losses on non-marketable securities revalued, sold or impaired are recognized in Interest income and other, net in our Condensed Consolidated Statements of ~~the repurchase option related to~~Operations.

As of March 27, 2022, and December 26, 2021, non-marketable equity securities included in Miscellaneous assets in our Condensed Consolidated Balance Sheets had a ~~sale-leaseback of a portion of our New York headquarters. Our total debt and capital lease obligations consisted of the following:~~

(In thousands) September 24, 2017
December 25, 2016
Option to repurchase ownership interest in headquarters building in 2019:
Principal amount $ 250,000
$ 250,000
Less unamortized discount based on imputed interest rate of 13.0% 7,423
9,801
Total option to repurchase ownership interest in headquarters building in 2019 242,577
240,199
Capital lease obligations 6,798
6,779
Total long-term debt and capital lease obligations $ 249,375
$ 246,978

~~See Note 8 for additional information regarding the fair~~carrying value of $28.8 million and $27.9 million, respectively.

NOTE 7. OTHER

Capitalized Computer Software Costs

Amortization of capitalized computer software costs included in Depreciation and amortization in our ~~long-term debt.~~Condensed Consolidated Statements of Operations was $1.9 million and $2.6 million in the first quarters of 2022 and 2021, respectively.

“Interest ~~expense,~~income and other, net”

Interest income and other, net, as shown in the accompanying Condensed Consolidated Statements of Operations, was as follows:


	For the Quarters Ended
(In thousands)	March 27, 2022		March 28, 2021
Interest income and other expense, net	$	1,222	$	1,689

Interest expense	(147)		(178)


Total interest income and other, net	$	1,075	$	1,511

For the Quarters Ended For the Nine Months Ended
(In thousands) September 24, 2017
September 25, 2016
September 24, 2017
September 25, 2016
Interest expense $ 6,956
$ 10,022
$ 20,775
$ 29,964
Amortization of debt costs and discount on debt 801
1,226
2,379
3,670
Capitalized interest (345 ) (131 ) (852 ) (412 )
Interest income (2,752 ) (2,085 ) (7,184 ) (6,267 )
Total interest expense, net $ 4,660
$ 9,032
$ 15,118
$ 26,955

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Restricted Cash

~~NOTE 7. OTHER~~A reconciliation of cash, cash equivalents and restricted cash as of March 27, 2022, and December 26, 2021, from the Condensed Consolidated Balance Sheets to the Condensed Consolidated Statements of Cash Flows is as follows:

~~Advertising Expenses~~


(In thousands)	March 27, 2022		December 26, 2021
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents	$	169,171	$	319,973

Restricted cash included within miscellaneous assets	14,381		14,333
Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows	$	183,552	$	334,306

~~Advertising expenses incurred~~Substantially all of the amount included in restricted cash is set aside to ~~promote~~collateralize workers’ compensation obligations.

Revolving Credit Facility

In September 2019, the Company entered into a $250.0 million five-year unsecured revolving credit facility (the “Credit Facility”). Certain of the Company’s domestic subsidiaries have guaranteed the Company’s obligations under the Credit Facility. Borrowings under the Credit Facility bear interest at specified rates based on our ~~brand, subscription products~~utilization and ~~marketing services~~consolidated leverage ratio. The Credit Facility contains various customary affirmative and negative covenants. In addition, the Company is obligated to pay a quarterly unused commitment fee at an annual rate of 0.20%.

As of March 27, 2022, there were ~~$26.6 million~~no outstanding borrowings under the Credit Facility and ~~$22.3 million~~the Company was in compliance with the financial covenants contained in the ~~third quarters of 2017 and 2016, respectively, and $86.0 million and $63.6 million~~documents governing the Credit Facility.

Severance Costs

We recognized no severance costs in the first ~~nine months~~quarter of ~~2017~~2022 and ~~2016,~~$0.4 severance costs in the first quarter of 2021, respectively.

~~Capitalized Computer Software Costs~~

~~Amortization of capitalized computer software~~ These costs ~~included~~are recorded in ~~“Depreciation~~General and ~~amortization”~~administrative costs in our Condensed Consolidated Statements of ~~Operations were $4.0 million and $2.8 million in the third quarters of 2017 and 2016, respectively, and $9.7 million and $8.5 million in the first nine months of 2017 and 2016, respectively.~~Operations.

~~Headquarters Redesign and Consolidation~~

In December 2016, we announced plans to redesign our headquarters building, consolidate our space within a smaller number of floors and lease the additional floors to third parties. These changes are expected to generate additional rental income and result in a more collaborative workspace. We incurred $2.5 million and $6.9 million of total costs related to these measures in the third quarter and first nine months of 2017, respectively. The capital expenditures related to these measures were approximately $26 million and $37 million in the third quarter and the first nine months of 2017, respectively.

~~Severance Costs~~

On May 31, 2017, we announced certain measures in our newsroom designed to streamline our editing process and allow us to make further investments in the newsroom. These measures resulted in a workforce reduction primarily affecting our newsroom. We recognized severance costs of $2.1 million in the third quarter of 2017 and $23.0 million in the first nine months of 2017, substantially all of which were related to this workforce reduction. We recognized severance costs of $13.0 million in the third quarter of 2016 and $18.3 million in the first nine months of 2016. These costs are recorded in “Selling, general and administrative costs” in our Condensed Consolidated Statements of Operations.

Additionally, during the second quarter of 2016, we announced certain measures to streamline our international print operations and support future growth efforts. These measures included a redesign of our international print newspaper and the relocation of certain editing and production operations conducted in Paris to our locations in Hong Kong and New York. During the third and second quarters of 2016, we incurred $2.9 million and $11.9 million, respectively, of total costs related to the measures, primarily related to relocation and severance charges. These costs were recorded in “Restructuring charge” in our Condensed Consolidated Statements of Operations.

We had a severance liability of ~~$25.2~~$1.9 million and ~~$23.2~~$2.1 million included in ~~“Accrued~~Accrued expenses and ~~other”~~other in our Condensed Consolidated Balance Sheets as of ~~September 24, 2017,~~March 27, 2022, and December ~~25, 2016,~~26, 2021, respectively. ~~We anticipate most~~

Acquisition-Related Costs

The Company incurred $34.7 million of acquisition-related costs during the ~~expenditures will be recognized within~~quarter ended March 27, 2022. Acquisition-related costs primarily include expenses paid in connection with the ~~next twelve months.~~acceleration of The Athletic stock options, and legal, accounting, financial advisory and integration planning expenses.

NOTE 8. FAIR VALUE MEASUREMENTS

Fair value is the price that would be received upon the sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date. The transaction would be in the principal or most advantageous market for the asset or liability, based on assumptions that a market participant would use in pricing the asset or liability. The fair value hierarchy consists of three levels:

Level 1–quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date;

Level 2–inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and

Level 3–unobservable inputs for the asset or liability.

1315

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Assets/Liabilities Measured and Recorded at Fair Value on a Recurring Basis

The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of ~~September 24, 2017,~~March 27, 2022, and December ~~25, 2016:~~26, 2021:


(In thousands)	March 27, 2022								December 26, 2021
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:
Short-term AFS securities (1)
U.S. Treasury securities	$	28,268	$	—	$	28,268	$	—	$	149,548	$	—	$	149,548	$	—
Corporate debt securities	22,536		—		22,536		—		107,334		—		107,334		—
Certificates of deposit	—		—		—		—		55,551		—		55,551		—
Municipal securities	1,984		—		1,984		—		3,997		—		3,997		—
U.S. governmental agency securities	—		—		—		—		3,500		—		3,500		—
Commercial paper	—		—		—		—		21,145		—		21,145		—
Total short-term AFS securities	$	52,788	$	—	$	52,788	$	—	$	341,075	$	—	$	341,075	$	—
Long-term AFS securities (1)
Corporate debt securities	$	161,428	$	—	$	161,428	$	—	$	241,055	$	—	$	241,055	$	—
U.S. Treasury securities	54,684		—		54,684		—		119,146		—		119,146		—
U.S. governmental agency securities	27,954		—		27,954		—		39,246		—		39,246		—
Municipal securities	8,749		—		8,749		—		13,933		—		13,933		—
Total long-term AFS securities	$	252,815	$	—	$	252,815	$	—	$	413,380	$	—	$	413,380	$	—
Liabilities:
Deferred compensation (2)(3)	$	16,467	$	16,467	$	—	$	—	$	21,101	$	21,101	$	—	$	—
Contingent consideration	$	5,858	$	—	$	—	$	5,858	$	7,450	$	—	$	—	$	7,450

(In thousands) September 24, 2017
December 25, 2016 ⁽³⁾
Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3
Assets:
Short-term AFS securities ⁽¹⁾

U.S Treasury securities $ 73,175
$ —
$ 73,175
$ —
$ —
$ —
$ —
$ —
Corporate debt securities 156,639
—
156,639
—
—
—
—
—
U.S. governmental agency securities 53,754
—
53,754
—
—
—
—
—
Certificates of deposit 20,403
—
20,403
—
—
—
—
—
Commercial paper 32,471
—
32,471
—
—
—
—
—
Total short-term AFS securities $ 336,442
$ —
$ 336,442
$ —
$ —
$ —
$ —
$ —
Long-term AFS securities ⁽¹⁾

U.S. governmental agency securities $ 96,817
$ —
$ 96,817
$ —
$ —
$ —
$ —
$ —
Corporate debt securities 97,345
—
97,345
—
—
—
—
—
U.S Treasury securities 47,620
—
47,620
—
—
—
—
—
Total long-term AFS securities $ 241,782
$ —
$ 241,782
$ —
$ —
$ —
$ —
$ —
Liabilities:
Deferred compensation ⁽²⁾
$ 28,354
$ 28,354
$ —
$ —
$ 31,006
$ 31,006
$ —
$ —

⁽¹⁾Our marketable securities, which include U.S. Treasury securities, corporate debt securities, U.S. government agency securities, municipal securities, certificates of deposit and commercial paper, are recorded at fair value (see Note 3). We classified these investments as Level 2 since the fair value is based on market observable inputs for investments with similar terms and maturities.

⁽²⁾The deferred compensation liability, included in ~~“Other~~Other liabilities—~~Other”~~other in our Condensed Consolidated Balance Sheets, consists of deferrals under The New York Times Company Deferred Executive Compensation Plan (the “DEC”), which ~~enables~~previously enabled certain eligible executives to elect to defer a portion of their compensation on a pre-tax basis. The deferred amounts are invested at the executives’ option in various mutual funds. The fair value of deferred compensation is based on the mutual fund investments elected by the executives and on quoted prices in active markets for identical assets. Participation in the DEC was frozen effective December 31, 2015.

⁽³⁾~~As noted in Note 2, in~~The Company invests the third quarter of 2017, we reclassified our marketable securities from HTM to AFS. Prior to being classified as AFS, the securities were recorded at amortized cost and not adjusted to fair value in accordanceassets associated with the ~~HTM accounting treatment.~~

~~Financial Instruments Disclosed, But Not Reported, at Fair Value~~

~~The carrying value of~~deferred compensation liability in life insurance products. Our investments in life insurance products are included in Miscellaneous assets in our ~~long-term debt was approximately $243~~Condensed Consolidated Balance Sheets, and were $50.8 million as of ~~September 24, 2017~~March 27, 2022, and ~~approximately $240~~$52.5 million as of December ~~25, 2016.~~26, 2021. The fair value of ~~our long-term debt was approximately $281 million~~these assets is measured using the net asset value per share (or its equivalent) and ~~$298 million~~has not been classified in the fair value hierarchy.

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Level 3 Liabilities

The contingent consideration liability is related to the 2020 acquisition of substantially all the assets and certain liabilities of Serial Productions, LLC (the “Serial acquisition”) and represents contingent payments based on the achievement of certain operational targets, as defined in the acquisition agreement, over the five years following the acquisition. The Company estimated the fair value using a probability-weighted discounted cash flow model. The estimate of ~~September 24, 2017 and December 25, 2016, respectively. We estimate~~ the fair value of ~~our debt utilizing market quotations for debt that have quoted prices in active markets. Since our debt does not trade on a daily basis in an active market,~~contingent consideration requires subjective assumptions to be made regarding probabilities assigned to operational targets and the discount rate. As the fair value ~~estimates are~~is based on ~~market observable~~significant unobservable inputs, ~~based on borrowing rates currently available~~this is a Level 3 liability.

The following table presents changes in the contingent consideration balances for ~~debt with similar terms~~the quarters ended March 27, 2022 and ~~average maturities (Level 2).~~March 28, 2021:


	For the Quarters Ended
(In thousands)	March 27, 2022		March 28, 2021
Balance at the beginning of the period	$	7,450	$	8,431

Payments	(1,724)		—
Fair value adjustments (1)	132		(703)
Contingent consideration at the end of the period	$	5,858	$	7,728

(1) Fair value adjustments are included in General and administrative expenses in our Condensed Consolidated Statements of Operations.

The remaining contingent consideration balances as of March 27, 2022, and December 26, 2021, of $5.9 million and $7.5 million, respectively, are included in Accrued expenses and other, for the current portion of the liability, and Other non-current liabilities, for the long-term portion of the liability, in our Condensed Consolidated Balance Sheets.

NOTE 9. PENSION AND OTHER POSTRETIREMENT BENEFITS

Pension

Single-Employer Plans

We ~~sponsor several~~maintain The New York Times Companies Pension Plan, a frozen single-employer defined benefit pension ~~plans,~~plan. The Company also jointly sponsors a defined benefit plan with The NewsGuild of New York known as the ~~majority of which have been frozen.~~ Guild-Times Adjustable Pension Plan (the “APP”) that continues to accrue active benefits.

We also ~~participate~~have a foreign-based pension plan for certain employees (the “foreign plan”). The information for the foreign plan is combined with the information for U.S. non-qualified plans. The benefit obligation of the foreign plan is immaterial to our total benefit obligation.

The components of net periodic pension cost were as follows:


	For the Quarters Ended
	March 27, 2022						March 28, 2021
(In thousands)	Qualified Plans		Non- Qualified Plans		All Plans		Qualified Plans		Non- Qualified Plans		All Plans
Service cost	$	2,882	$	—	$	2,882	$	2,276	$	—	$	2,276
Interest cost	8,837		1,284		10,121		7,629		1,088		8,717
Expected return on plan assets	(13,807)		—		(13,807)		(12,677)		—		(12,677)
Amortization of actuarial loss	3,266		1,643		4,909		5,055		1,821		6,876
Amortization of prior service credit	(486)		—		(486)		(486)		—		(486)

Net periodic pension cost (1)	$	692	$	2,927	$	3,619	$	1,797	$	2,909	$	4,706

(1) The service cost component of net periodic pension cost is recognized in ~~two joint Company~~Total operating costs, while the other components are included in Other components of net periodic benefit costs in our Condensed Consolidated Statements of Operations, below Operating profit.

During the first quarters of 2022 and ~~Guild-sponsored defined benefit~~2021, we made pension ~~plans covering employees who are members~~contributions of

$2.3 million and $1.5 million, respectively, to the APP. We expect to make contractual contributions in 2022 of approximately $10 million, which more than satisfy minimum funding requirements.

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The NewsGuild of New York, including The Newspaper Guild of New York - The New York Times Pension Fund, which was frozen in 2012 and replaced by a successor plan, The Guild-Times Adjustable Pension Plan.

~~The components of net periodic pension cost were as follows:~~

For the Quarters Ended
September 24, 2017 September 25, 2016
(In thousands) Qualified
Plans Non-
Qualified
Plans All
Plans Qualified
Plans Non-
Qualified
Plans All
Plans
Service cost $ 2,423
$ —
$ 2,423
$ 2,248
$ —
$ 2,248
Interest cost 15,596
1,956
17,552
16,573
2,034
18,607
Expected return on plan assets (26,136 ) —
(26,136 ) (27,790 ) —
(27,790 )
Amortization of actuarial loss 7,351
1,088
8,439
7,069
1,054
8,123
Amortization of prior service credit (486 ) —
(486 ) (487 ) —
(487 )
Net periodic pension (income)/cost $ (1,252 ) $ 3,044
$ 1,792
$ (2,387 ) $ 3,088
$ 701

For the Nine Months Ended
September 24, 2017 September 25, 2016
(In thousands) Qualified
Plans Non-
Qualified
Plans All
Plans Qualified
Plans Non-
Qualified
Plans All
Plans
Service cost $ 7,269
$ —
$ 7,269
$ 6,743
$ —
$ 6,743
Interest cost 46,784
5,868
52,652
49,720
6,102
55,822
Expected return on plan assets (78,408 ) —
(78,408 ) (83,369 ) —
(83,369 )
Amortization of actuarial loss 22,057
3,264
25,321
21,206
3,160
24,366
Amortization of prior service credit (1,458 ) —
(1,458 ) (1,459 ) —
(1,459 )
Net periodic pension (income)/cost $ (3,756 ) $ 9,132
$ 5,376
$ (7,159 ) $ 9,262
$ 2,103

~~During the first nine months of 2017 and 2016, we made pension contributions of $5.9 million and $6.0 million, respectively, to certain qualified pension plans.~~

As part of our continued effort to reduce the size and volatility of our pension obligations, in October 2017, the Company entered into agreements with an insurance company to transfer future benefit obligations and annuity administration for certain retirees (or their beneficiaries) in two of the Company’s qualified pension plans. Additionally, as part of our management of the funded status of our qualified pension plans, in October 2017, the Company made a $100 million aggregate contribution to these pension plans, which was funded by cash on hand. See Note 15 for additional information.

~~Multiemployer Plans~~

During the third quarter of 2016, we received $5.0 million in connection with an arbitration matter related to a multiemployer pension plan. In the second quarter of 2016, we recorded a charge of $11.7 million related to partial withdrawal obligation under a multiemployer pension plan in connection with the same arbitration matter. See Note 14 for additional information with respect to the arbitration.

~~THE NEW YORK TIMES COMPANY~~

~~NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

Other Postretirement Benefits

The components of net periodic postretirement benefit ~~income~~cost/(income) were as follows:


	For the Quarters Ended
(In thousands)	March 27, 2022		March 28, 2021
Service cost	$	12	$	13
Interest cost	183		141
Amortization of actuarial loss	823		852
Amortization of prior service credit	(236)		(836)
Net periodic postretirement benefit cost (1)	$	782	$	170

For the Quarters Ended For the Nine Months Ended
(In thousands) September 24, 2017
September 25, 2016
September 24, 2017
September 25, 2016
Service cost $ 92
$ 104
$ 276
$ 313
Interest cost 470
495
1,410
1,485
Amortization of actuarial loss 905
1,026
2,715
3,078
Amortization of prior service credit (1,939 ) (2,110 ) (5,816 ) (6,330 )
Net periodic postretirement benefit income $ (472 ) $ (485 ) $ (1,415 ) $ (1,454 )
(1) The service cost component of net periodic postretirement benefit cost/(income) is recognized in Total operating costs, while the other components are included in Other components of net periodic benefit costs in our Condensed Consolidated Statements of Operations, below Operating profit.

NOTE 10. INCOME TAXES

The Company had income tax expense of ~~$23.4~~$1.1 million and ~~$40.9 million in the third quarter and first nine months of 2017, respectively. The Company had income tax expense of $0.1 million in the third quarter of 2016 and an income tax benefit of $9.0~~$9.5 million in the first ~~nine months~~quarters of ~~2016. The increase in income tax expense was primarily due to higher income from continuing operations in the third quarter~~2022 and ~~first nine months of 2017.~~

~~The Company’s effective tax rates from continuing operations were 39.1% and 38.5% for the third quarter and first nine months of 2017,~~2021, respectively. The Company’s effective tax rates from continuing operations were ~~30.0%~~19.1% and ~~39.4%~~18.7% for the ~~third quarter~~first quarters of 2022 and ~~first nine months of 2016,~~2021, respectively. The ~~higher~~decrease in income tax expense and increase in effective tax rate in the ~~third~~first quarter of ~~2017 was~~2022 were primarily due to ~~higher~~lower income from continuing operations resulting from costs related to The Athletic acquisition. Excluding the tax benefit resulting from the special item related to the acquisition of The Athletic, tax expense in the first quarter of 2022 exceeded tax expense in the first quarter of 2021 primarily due to a lower benefit in the first quarter of 2022 from stock appreciation on stock-based awards that settled in the quarters.

Beginning in 2022, the Tax Cuts and Jobs Act of 2017 eliminates the option to deduct research and development expenditures immediately in the year incurred and instead requires taxpayers to capitalize and amortize such expenditures over five years. If Congress does not repeal or defer the effective date of this provision, we expect our 2022 cash tax payments will increase significantly as compared ~~with the same period prior year.~~to 2021. We would also expect significant increases to our deferred tax assets as we begin to capitalize our research and development expenditures.

NOTE 11. ~~EARNINGS/(LOSS)~~EARNINGS PER SHARE

We compute ~~earnings/(loss)~~earnings per share ~~using a~~based upon the lower of the two-class method or the treasury stock method. The two-class method is an earnings allocation method used when a company’s capital structure includes either two or more classes of common stock or common stock and participating securities. This method determines ~~earnings/(loss)~~earnings per share based on dividends declared on common stock and participating securities (i.e., distributed earnings), as well as participation rights of participating securities in any undistributed earnings.

~~Earnings/(loss)~~Earnings per share is computed using both basic shares and diluted shares. The difference between basic and diluted shares is that diluted shares include the dilutive effect of the assumed exercise of outstanding securities. Our stock options, stock-settled long-term performance awards and restricted stock units could have a significant impact on diluted shares. The difference between basic and diluted shares of approximately 0.4 million and 0.5 million in the first quarters of 2022 and 2021, respectively. In 2022, dilution resulted primarily from the dilutive effect of certain restricted stock units, performance awards and stock options. In 2021, dilution resulted primarily from the dilutive effect of certain performance awards, restricted stock units and stock options.

Securities that could potentially be dilutive are excluded from the computation of diluted earnings per share when a loss from continuing operations exists or when the exercise price exceeds the market value of our Class A Common Stock because their inclusion would result in an anti-dilutive effect on per share amounts.

~~The number of stock options excluded from the computation of diluted earnings per share because they~~There were ~~anti-dilutive was~~ approximately ~~2 million in the third quarter and first nine months of 2017, respectively, and approximately 5~~0.2 million and 60.1 million ~~in the third quarter and first nine months of 2016, respectively.~~

~~There were no anti-dilutive stock-settled long-term performance awards and~~ restricted stock units excluded from the computation of diluted earnings per share in the ~~third quarter~~first quarters of ~~2017~~2022 and 2021, respectively, because they were anti-dilutive. There were no anti-dilutive stock options or ~~first nine months of 2017 and 2016. The number of~~ stock-settled long-term performance awards ~~and restricted stock units~~ excluded from the computation of diluted earnings per share ~~because they were anti-dilutive was approximately 2 million~~ in the ~~third quarter~~first quarters of ~~2016.~~2022 and 2021.

~~THE NEW YORK TIMES COMPANY~~

~~NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

NOTE 12. SUPPLEMENTAL STOCKHOLDERS’ EQUITY INFORMATION

~~Stockholders’ equity is summarized as follows:~~

(In thousands) Total New York Times Company Stockholders’ Equity Noncontrolling Interest Total Stockholders’ Equity
Balance as of December 25, 2016 $ 847,815
$ (3,571 ) $ 844,244
Net income 61,109
3,567
64,676
Other comprehensive income, net of tax 19,294
—
19,294
Effect of issuance of shares 158
—
158
Dividends declared (19,543 ) —
(19,543 )
Stock-based compensation 9,845
—
9,845
Balance as of September 24, 2017 $ 918,678
$ (4 ) $ 918,674

(In thousands) Total New York Times Company Stockholders’ Equity Noncontrolling Interest Total Stockholders’ Equity
Balance as of December 27, 2015 $ 826,751
$ 1,704
$ 828,455
Net loss (8,076 ) (5,719 ) (13,795 )
Other comprehensive income, net of tax 13,273
—
13,273
Effect of issuance of shares (9,298 ) —
(9,298 )
Share repurchases (15,056 ) —
(15,056 )
Dividends declared (19,414 ) —
(19,414 )
Stock-based compensation 9,006
—
9,006
Balance as of September 25, 2016 $ 797,186
$ (4,015 ) $ 793,171

~~On January 14, 2015,~~In February 2022, the Board of Directors approved ~~an authorization of $101.1~~a $150 million ~~to repurchase shares of the Company’s~~ Class A ~~Common Stock.~~stock repurchase program. The ~~Company did not repurchase any shares during the third quarter of 2017. As of September 24, 2017, the Company had repurchased 6,690,905~~authorization provides that Class A shares under this authorization for a cost of $84.9 million (excluding commissions) and $16.2 million remained. All purchases were made pursuant to our publicly announced share repurchase program. Our Board of Directors has authorized us to purchase shares under this authorizationmay be purchased from time to time ~~subject to~~as market conditions ~~and other factors. There is no expiration date with respect to this authorization.~~

~~The following table summarizes the changes in accumulated other comprehensive income (“AOCI”) by component as of September 24, 2017:~~warrant, through open market purchases,

(In thousands) Foreign Currency Translation Adjustments Funded Status of Benefit Plans Net unrealized Loss on available-for-sale Securities Total Accumulated Other Comprehensive Loss
Balance as of December 25, 2016 $ (1,822 ) $ (477,994 ) —
$ (479,816 )
Other comprehensive income (loss) before reclassifications, before tax⁽¹⁾
11,170
—
(1,081 ) 10,089
Amounts reclassified from accumulated other comprehensive loss, before tax⁽¹⁾
—
20,762
—
20,762
Income tax expense (benefit) ⁽¹⁾
3,777
8,208
(428 ) 11,557
Net current-period other comprehensive income, net of tax 7,393
12,554
(653 ) 19,294
Balance as of September 24, 2017 $ 5,571
$ (465,440 ) (653 ) $ (460,522 )


~~(1)~~	~~All amounts are shown net of noncontrolling interest.~~

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

privately negotiated transactions or other means, including Rule 10b5-1 trading plans. There is no expiration date with respect to this authorization.

As of March 27, 2022, repurchases under this authorization totaled approximately $29.0 million (excluding commissions) and approximately $121.0 million remained.

The following table summarizes the changes in AOCI by component as of March 27, 2022:


(In thousands)	Foreign Currency Translation Adjustments		Funded Status of Benefit Plans		Net Unrealized Loss on Available-For-Sale Securities		Total Accumulated Other Comprehensive Loss
Balance as of December 26, 2021	$	3,754	$	(385,680)	$	(1,276)	$	(383,202)
Other comprehensive loss before reclassifications, before tax	(2,209)		—		(7,916)		(10,125)
Amounts reclassified from accumulated other comprehensive loss, before tax	—		5,010		—		5,010
Income tax (benefit)/expense	(601)		1,344		(2,123)		(1,380)
Net current-period other comprehensive (loss)/ income, net of tax	(1,608)		3,666		(5,793)		(3,735)

Balance as of March 27, 2022	$	2,146	$	(382,014)	$	(7,069)	$	(386,937)

The following table summarizes the reclassifications from AOCI for the ~~nine months~~quarter ended ~~September 24, 2017:~~March 27, 2022:

(In thousands)
Detail about accumulated other comprehensive loss components Amounts reclassified from accumulated other comprehensive loss Affects line item in the statement where net income is presented
Funded status of benefit plans:
Amortization of prior service credit⁽¹⁾
$ (7,274 ) Selling, general & administrative costs
Amortization of actuarial loss⁽¹⁾
28,036
Selling, general & administrative costs
Total reclassification, before tax⁽²⁾
20,762

Income tax expense 8,208
Income tax expense
Total reclassification, net of tax $ 12,554

~~(1)~~

~~These~~

(In thousands)

Detail about accumulated other comprehensive ~~income~~loss components ~~are included~~

Amounts reclassified from accumulated other comprehensive loss

Affects line item in the ~~computation~~statement where net income is presented

Funded status of benefit plans:

Amortization of prior service credit(1)

(722)

Other components of net periodic benefit ~~cost for pension and other retirement benefits. See Note 9 for additional information.~~costs

Amortization of actuarial loss(1)		5,732		Other components of net periodic benefit costs

Total reclassification, before tax(2)	~~There were no reclassifications relating to noncontrolling interest for the nine months ended September 24, 2017.~~	5,010
Income tax expense		1,344		Income tax expense
Total reclassification, net of tax		$	3,666

(1) These AOCI components are included in the computation of net periodic benefit cost for pension and other postretirement benefits. See Note 9 for more information.

(2) There were no reclassifications relating to noncontrolling interest for thequarterended March 27, 2022.

Total stock-based compensation expense included in the Condensed Consolidated Statements of Operations is as follows:


	For the Quarters Ended
(In thousands)	March 27, 2022		March 28, 2021
Cost of revenue	$	1,589	$	1,129
Sales and marketing	365		347
Product development	1,751		677
General and administrative	3,349		2,032
Total stock-based compensation expense	$	7,054	$	4,185

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 13. SEGMENT INFORMATION

WeThe Company identifies a business as an operating segment if: (i) it engages in business activities from which it may earn revenues and incur expenses; (ii) its operating results are regularly reviewed by the Company’s President and Chief Executive Officer (who is the Company’s Chief Operating Decision Maker) to make decisions about resources to be allocated to the segment and assess its performance; and (iii) it has available discrete financial information.

On February 1, 2022, the Company acquired The Athletic (see Note 5). For the first quarter of 2022, the results of The Athletic have ~~one~~been included in the Company's Condensed Consolidated Financial Statements beginning February 1, 2022. The Athletic is a separate reportable segment ~~that includes~~of the Company. As a result, beginning in the first quarter of 2022, we have 2 reportable segments: The New York Times ~~NYTimes.com~~Group and ~~related businesses. Therefore, all required~~The Athletic. These segments are evaluated regularly by the Company’s Chief Operating Decision Maker in assessing performance and allocating resources. Management uses adjusted operating profit by segment ~~information can be found~~ in ~~the Condensed Consolidated Financial Statements.~~assessing performance and allocating resources. The Company includes in its presentation revenues and adjusted operating costs to arrive at adjusted operating profit by segment. Adjusted operating costs are defined as operating costs before depreciation and amortization, severance and multiemployer pension plan withdrawal costs. Adjusted operating profit is defined as operating profit before depreciation and amortization, severance, multiemployer pension plan withdrawal costs and special items.

~~Our operating~~

The following tables present segment generated revenues principally from subscriptions and advertising. Other revenues consist primarily of revenues from news services/syndication, digital archives, building rental income, NYT Live (our live events business), e-commerce and affiliate referrals.information:


	For the Quarters Ended
(In thousands)	March 27, 2022		March 28, 2021		% Change
Revenues
The New York Times Group	$	525,268	$	473,045	11.0	%
The Athletic	12,157		—		*
Total revenues	$	537,425	$	473,045	13.6	%
Adjusted operating costs
The New York Times Group	$	457,543	$	404,938	13.0	%
The Athletic	18,979		—		*
Total adjusted operating costs	$	476,522	$	404,938	17.7	%
Adjusted operating profit
The New York Times Group	$	67,725	$	68,107	(0.6)	%
The Athletic	(6,822)		—		*
Total adjusted operating profit	$	60,903	$	68,107	(10.6)	%
* Represents a change equal to or in excess of 100% or not meaningful.

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)


Revenues detail by segment
	For the Quarters Ended
(In thousands)	March 27, 2022		March 28, 2021		% Change
The New York Times Group
Subscription	$	361,602	$	329,084	9.9	%
Advertising	114,490		97,116		17.9	%
Other	49,176		46,845		5.0	%
Total	$	525,268	$	473,045	11.0	%
The Athletic
Subscription	$	10,377	$	—	*
Advertising	1,780		—		*

Total	$	12,157	$	—	*
The New York Times Company
Subscription	$	371,979	$	329,084	13.0	%
Advertising	116,270		97,116		19.7	%
Other	49,176		46,845		5.0	%
Total	$	537,425	$	473,045	13.6	%
* Represents a change equal to or in excess of 100% or not meaningful.


Adjusted operating costs (operating costs before depreciation and amortization, severance and multiemployer pension plan withdrawal costs) detail by segment
	For the Quarters Ended
(In thousands)	March 27, 2022		March 28, 2021		% Change
The New York Times Group
Cost of revenue (excluding depreciation and amortization)	$	269,476	$	250,997	7.4	%
Sales and marketing	74,460		60,153		23.8	%
Product development	45,179		38,943		16.0	%
Adjusted general and administrative (1)	68,428		54,845		24.8	%
Total	$	457,543	$	404,938	13.0	%
The Athletic
Cost of revenue (excluding depreciation and amortization)	$	11,889	$	—	*
Sales and marketing	3,128		—		*
Product development	2,254		—		*
Adjusted general and administrative	1,708		—		*
Total	$	18,979	$	—	*
The New York Times Company
Cost of revenue (excluding depreciation and amortization)	$	281,365	$	250,997	12.1	%
Sales and marketing	77,588		60,153		29.0	%
Product development	47,433		38,943		21.8	%
Adjusted general and administrative (1)	70,136		54,845		27.9	%
Total	$	476,522	$	404,938	17.7	%
(1) Excludes multiemployer pension withdrawal costs of $1.2 million for the quarter ended March 27, 2022 and severance and multiemployer pension withdrawal costs of $0.4 million and $1.3 million, respectively, for the quarter ended March 28,2021.
* Represents a change equal to or in excess of 100% or not meaningful.

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)


Reconciliation of operating costs before depreciation and amortization, severance and multiemployer pension plan withdrawal costs (or adjusted operating costs)

	For the Quarters Ended
(In thousands)	March 27, 2022		March 28, 2021		% Change
Operating costs	$	496,429	$	421,387	17.8	%
Less:
Depreciation and amortization	18,686		14,717		27.0	%
Severance	—		406		*
Multiemployer pension plan withdrawal costs	1,221		1,326		(7.9)	%
Adjusted operating costs	$	476,522	$	404,938	17.7	%
* Represents a change equal to or in excess of 100% or not meaningful.


Reconciliation of operating profit before depreciation and amortization, severance, multiemployer pension plan withdrawal costs and special items (or adjusted operating profit)

	For the Quarters Ended
(In thousands)	March 27, 2022		March 28, 2021		% Change
Operating profit	$	6,284	$	51,658	(87.8)	%
Add:
Depreciation and amortization	18,686		14,717		27.0	%
Severance	—		406		*
Multiemployer pension plan withdrawal costs	1,221		1,326		(7.9)	%
Special items:


Acquisition-related costs	34,712		—		*
Adjusted operating profit	$	60,903	$	68,107	(10.6)	%
* Represents a change equal to or in excess of 100% or not meaningful.

NOTE 14. CONTINGENT LIABILITIES

~~Restricted Cash~~

We were required to maintain $17.9 million and $24.9 million of restricted cash as of September 24, 2017 and December 25, 2016, respectively, the majority of which is set aside to collateralize workers’ compensation obligations. The decrease reflects the settlement of certain litigation described below.

~~Newspaper and Mail Deliverers–Publishers’ Pension Fund~~

In September 2013, the Newspaper and Mail Deliverers-Publishers’ Pension Fund (the “NMDU Fund”) assessed a partial withdrawal liability against the Company in the amount of approximately $26 million for the plan years ending May 31, 2012 and 2013 (the “Initial Assessment”), an amount that was increased to approximately $34 million in December 2014, when the NMDU Fund issued a revised partial withdrawal liability assessment for the plan year ending May 31, 2013 (the “Revised Assessment”). The NMDU Fund claimed that when City & Suburban Delivery Systems, Inc., a retail and newsstand distribution subsidiary of the Company and the largest contributor to the NMDU Fund, ceased operations in 2009, it triggered a decline of more than 70% in contribution base units in each of these two plan years.

The Company disagreed with both the NMDU Fund’s determination that a partial withdrawal occurred and the methodology by which it calculated the withdrawal liability, and the parties engaged in arbitration proceedings to resolve the matter. In June 2016, the arbitrator issued an interim award and opinion that supported the NMDU Fund’s determination that a partial withdrawal had occurred, and concluded that the methodology used to calculate the Initial Assessment was correct. However, the arbitrator also concluded that the NMDU Fund’s calculation of the Revised Assessment was incorrect. In July 2017, the arbitrator issued a final award and opinion reflecting the same conclusions, which the Company has appealed.

Due to requirements of the Employee Retirement Income Security Act of 1974 that sponsors make payments demanded by plans during arbitration and any resultant appeals, the Company had been making payments to the NMDU fund since September 2013 relating to the Initial Assessment and February 2015 relating to the Revised Assessment based on the NMDU Fund’s demand. As a result, as of September 24, 2017, we have paid $14.4 million relating to the Initial Assessment since the receipt of the initial demand letter. We also paid $5.0 million related to the Revised Assessment, which was refunded in July 2016 based on the arbitrator’s ruling. The Company recognized $0.1 million and $0.3 million of expense for the third quarter and nine months ended September 24, 2017, respectively. The Company recognized $4.5 million income (inclusive of a special item of $5.0 million) and $10.6 million of expense (inclusive of a special item of $6.7 million) for the third quarter and nine months ended September 25, 2016, respectively.

~~THE NEW YORK TIMES COMPANY~~

~~NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

The Company had a liability of $7.3 million as of September 24, 2017, related to this matter. Management believes it is reasonably possible that the total loss in this matter could exceed the liability established by a range of zero to approximately $10 million.

~~NEMG T&G, Inc.~~

The Company was involved in class action litigation brought on behalf of individuals who, from 2006 to 2011, delivered newspapers at NEMG T&G, Inc., a subsidiary of the Company (“T&G”). T&G was a part of the New England Media Group, which the Company sold in 2013. The plaintiffs asserted several claims against T&G, including a challenge to their classification as independent contractors, and sought unspecified damages. In December 2016, the Company reached a settlement with respect to the claims, which was approved by the court in May 2017. As a result of the settlement, the Company recorded charges of $3.7 million ($2.3 million after tax) in the fourth quarter of 2016 and $0.8 million ($0.5 million after tax) in the third quarter of 2017 within discontinued operations.

~~Other~~Legal Proceedings

We are involved in various legal actions incidental to our business that are now pending against us. These actions ~~are~~ generally ~~for amounts~~have damage claims that are greatly in excess of the payments, if any, that ~~may~~we would be required to ~~be made.~~pay if we lost or settled the cases. Although the Company cannot predict the outcome of these matters, it is possible that an unfavorable outcome in one or more matters could be material to the Company’s consolidated results of operations or cash flows for an individual reporting period. However, based on currently available information, management does not believe that the ultimate resolution of these matters, individually or in the aggregate, is likely to have a material effect on the Company’s financial position.

NOTE 15. SUBSEQUENT EVENTS

~~Transfer of Certain Pension Obligations~~

On ~~October 18, 2017, the Company~~December 9, 2020, we entered into ~~agreements with Massachusetts Mutual Life Insurance Company (“MassMutual”) relating~~an agreement to lease and subsequently sell approximately 4 acres of land at our printing and distribution facility in College Point, N.Y., subject to certain conditions. The ~~New York Times Companies Pension Plan and The Retirement Annuity Plan for Craft Employees~~lease commenced on April 11, 2022. At the time of ~~The New York Times Company (collectively,~~ the ~~“Pension Plans”). Under~~lease expiration in February 2025, we will sell the ~~agreements, the Company will purchase from MassMutual group annuity contracts with respect~~parcel to the ~~Pension Plans and transfer to MassMutual the future benefit obligations and annuity administration~~lessee for approximately ~~3,800 retirees (or their beneficiaries). The pension benefit obligations and annuity administration for these transferredparticipants will be transferred to MassMutual and MassMutual will irrevocably guarantee the pension benefits for these participants.~~

This arrangement is part of the Company’s continued effort to reduce the overall size and volatility of our pension plan obligations, as well as the premiums and other administrative costs related thereto. By transferring these obligations to MassMutual, the Company expects to reduce its qualified pension plan obligations by approximately $225$36 million. The ~~purchase of the group annuity contracts~~transaction is ~~being funded through existing assets of the Pension Plans’ respective trusts. As~~accounted for as a sales-type lease and as a result, ~~of this arrangement, the Company expects to recognize~~we recognized a ~~pension settlement charge~~gain of approximately ~~$95~~$34 million~~before tax in~~ (net of commissions) at the ~~fourth quarter~~time of ~~2017. This charge represents the acceleration of deferred charges currently accrued in AOCI.~~

~~Discretionary Pension Contribution~~

~~On October 20, 2017, the Company made a $100 million aggregate discretionary contribution to the Pension Plans as part of the Company’s management of the funded status of these plans.~~

lease commencement.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

EXECUTIVE OVERVIEW

We are a global media organization that includes ~~print~~digital and ~~digital~~print products and ~~investments. We~~related businesses. On February 1, 2022, we acquired The Athletic Media Company (“The Athletic”), a global digital subscription-based sports media business that provides national and local coverage of more than 200 clubs and teams in the U.S. and around the world. For the first quarter of 2022, the results of The Athletic have ~~one~~been included in our Condensed Consolidated Financial Statements beginning February 1, 2022. The Athletic is a separate reportable segment ~~with businesses that include our newspaper, websites, mobile applications~~of the Company. As a result, beginning in the first quarter of 2022, we have two reportable segments: The New York Times Group and ~~related businesses.~~The Athletic.

We generate revenues principally from subscriptions and advertising. ~~Other~~In addition, we generate other revenues primarily ~~consist~~consisting of revenues from ~~news services/syndication, digital archives, building rental income, NYT Live (our~~licensing, Wirecutter affiliate referrals, commercial printing, the leasing of floors in our headquarters (the “Company Headquarters”), retail commerce, our student subscription sponsorship program, our live events ~~business), e-commerce~~business, and ~~affiliate referrals.~~ television and film.

Our main operating costs are employee-related costs.

In the accompanying analysis of financial information, we present certain information derived from consolidated financial information but not presented in our financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). ~~These~~We are presenting in this report supplemental non-GAAP financial performance measures that exclude depreciation, amortization, severance, non-operating retirement costs or multiemployer pension plan withdrawal costs, and certain identified special items, as applicable. These non-GAAP financial measures should not be considered in isolation from or as a substitute for the related GAAP measures, and should be read in conjunction with financial information presented on a GAAP basis. For further information and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures, see ~~“—Results of Operations—Non-GAAP~~“Non-GAAP Financial Measures.”

Financial Highlights

~~For the third quarter of 2017, diluted~~•On February 1, 2022, we acquired The Athletic and have included its results in our Condensed Consolidated Financial Statements beginning February 1, 2022.

•Diluted earnings per share from continuing operations were ~~$0.20, compared with $0.00~~$0.03 and $0.24 for the ~~third quarter~~first quarters of ~~2016.~~2022 and 2021, respectively. Diluted earnings per share from continuing operations excluding severance, non-operating retirement costs and special items discussed below under “ Non-GAAP Financial Measures” (or “adjusted diluted earnings per share,” a non-GAAP measure) were ~~$0.13~~$0.19 and ~~$0.06~~$0.26 for the ~~third~~first quarters of ~~2017~~2022 and ~~2016,~~2021, respectively.

~~The Company had an operating~~•Operating profit ~~of $33.0~~decreased 87.8% to $6.3 million in the ~~third~~first quarter of ~~2017,~~2022, compared with ~~$9.0~~$51.7 million in the ~~third~~first quarter of ~~2016. The increase was largely due to higher digital subscription revenues and lower severance costs, which more than offset lower print advertising revenues.~~2021. Operating profit before depreciation, amortization, severance, ~~non-operating retirement~~multiemployer pension plan withdrawal costs and special items discussed below under “Non-GAAP Financial Measures” (or “adjusted operating profit,” a non-GAAP measure) ~~was $56.5~~decreased 10.6% to $60.9 million ~~and $39.2~~in the first quarter of 2022 compared with $68.1 million ~~for~~in the ~~third quarters~~first quarter of ~~2017 and 2016, respectively.~~2021.

•Total revenues increased ~~6.1%~~13.6% to ~~$385.6~~$537.4 million in the ~~third~~first quarter of ~~2017~~2022 from ~~$363.5~~$473.0 million in the ~~third~~first quarter of ~~2016, primarily driven by increases in digital and print~~2021.

•Total subscription ~~revenue, as well as digital advertising revenue, partially offset by a decrease in print advertising revenue.~~

~~Subscription~~ revenues increased ~~13.6%~~13.0% to $372.0 million in the ~~third~~first quarter of ~~2017 compared with~~2022 from $329.1 million in the ~~third~~first quarter of 2016, primarily due to significant growth in recent quarters in the number of subscriptions to the Company’s digital subscription products, as well as the 2017 increase in home-delivery prices for The New York Times newspaper, which more than offset a decline in print copies sold. Revenue from our digital-only subscription products (which include our news product, as well as our Crossword and Cooking products) increased 46.3% in the third quarter of 2017 compared with the third quarter of 2016. Our Cooking product first launched as a paid digital product earlier in the third quarter of 2017.

2021. Paid digital-only ~~subscriptions~~subscribers totaled approximately ~~2,487,000~~8,328,000 with 9,620,000 paid digital-only subscriptions at the end of the ~~third~~first quarter of ~~2017,~~2022, a ~~59.1%~~net increase of 387,000 digital-only subscribers and 382,000 digital-only subscriptions compared with the end of the ~~third~~fourth quarter of ~~2016. News product~~2021 and a net increase of 1,354,000 digital-only subscriptions ~~totaled approximately 2,132,000 at the end of the third quarter of 2017, a 59.3% increase~~ compared with the end of the ~~third~~first quarter of ~~2016. Other product subscriptions totaled approximately 355,000 at the end of the third quarter of 2017, a 57.8% increase compared with the end of the third quarter of 2016.~~2021.

•Total advertising revenues ~~decreased 9.0%~~increased 19.7% to $116.3 in the ~~third~~first quarter of ~~2017 compared with~~2022 from $97.1 in the ~~third~~first quarter of ~~2016, reflecting a 20.1% decrease in print advertising revenues, partially offset by~~2021, due to an ~~11.0%~~ increase in digital advertising revenues. The decrease in print advertising revenues resulted from a decline in display advertising, primarily in the luxury, travel, real estate, media, technology, and telecommunications categories. The increaseof 12.6% in digital advertising revenues ~~primarily reflected increases~~and an increase of 30.9% in ~~revenue from our smartphone platform, programmatic channels and branded content, partially offset by a continued decrease in traditional website display advertising. We expect~~print advertising ~~revenues to remain under pressure in the fourth quarter of 2017, with digital advertising revenues expected to be flat or slightly lower compared with the same prior year period.~~revenues.

Other revenues increased 17.7% in the third quarter of 2017 compared with the third quarter of 2016, largely due to affiliate referral revenue associated with the product review and recommendation websites, The Wirecutter and The Sweethome, which the Company acquired in October 2016. The two websites were subsequently combined and re-branded as “Wirecutter.”

•Operating costs ~~decreased in the third quarter of 2017~~increased 17.8% to ~~$350.1 million from $356.6~~$496.4 million in the ~~third~~first quarter of ~~2016, largely due to lower severance, print production and distribution costs, and savings~~2022 from $421.4 million in ~~international operations, which were partially offset by higher costs following~~ the ~~acquisitions~~first quarter of ~~Wirecutter and digital marketing agency, Fake Love, and higher marketing costs.~~2021. Operating costs before depreciation, amortization, severance and ~~non-operating retirement~~multiemployer pension plan withdrawal costs (or “adjusted operating costs,” a non-GAAP measure) increased 17.7% in the ~~third~~first quarter of ~~2017~~2022 to ~~$329.2~~$476.5 million from ~~$324.4~~$404.9 million in the ~~third~~first quarter of ~~2016.~~2021.

~~Non-operating retirement~~•Operating costs ~~decreased~~that we refer to ~~$3.1~~as “technology costs,” consisting of product development costs as well as components of costs of revenues and general and administrative costs as described below, increased 22.0% to $87.9 million ~~during the third quarter of 2017 from $3.8~~compared with $72.1 million in the ~~third~~first quarter of ~~2016 primarily due~~2021.

Impact of Covid-19 Pandemic

The global Covid-19 pandemic, efforts to ~~lower multiemployer pension plan withdrawal expense.~~contain it and the resulting disruptions continue to have widespread, rapidly evolving, and unpredictable impacts on global society, economies, financial markets and business practices. See “Item 1A — Risk Factors” in our Annual Report on Form 10-K for the year ended December 26, 2021, for more information. The full impact that the pandemic will have on our business, operations and financial results is uncertain and will depend on numerous evolving factors and future developments, including the extent of variants and resurgences; the effect of ongoing vaccination and mitigation efforts; the impact of the pandemic on economic conditions and the companies with which we do business, including our advertisers; the status of travel restrictions; and changes in consumer behavior in response to the pandemic, among many other factors. We will continue to actively monitor the situation and may take further actions that alter our business operations as may be required by federal, state, local or foreign authorities, or that we determine are appropriate.

As a result of the global Covid-19 pandemic, the vast majority of our employees have worked remotely since March 2020. As we transition to hybrid work with employees working both from the office and remotely, we have invested and expect to continue to invest in our Company Headquarters and other offices as well as in technological improvements.

RESULTS OF OPERATIONS

The following table presents our consolidated financial results:


	For the Quarters Ended
(In thousands)	March 27, 2022		March 28, 2021		% Change
Revenues
Subscription	$	371,979	$	329,084	13.0	%
Advertising	116,270		97,116		19.7	%
Other	49,176		46,845		5.0	%
Total revenues	537,425		473,045		13.6	%
Operating costs
Cost of revenue (excluding depreciation and amortization)	281,365		250,997		12.1	%
Sales and marketing	77,588		60,153		29.0	%
Product development	47,433		38,943		21.8	%
General and administrative	71,357		56,577		26.1	%
Depreciation and amortization	18,686		14,717		27.0	%
Total operating costs	496,429		421,387		17.8	%
Acquisition-related costs	34,712		—		*



Operating profit	6,284		51,658		(87.8)	%
Other components of net periodic benefit costs	1,522		2,599		(41.4)	%

Interest income and other, net	1,075		1,511		(28.9)	%
Income from continuing operations before income taxes	5,837		50,570		(88.5)	%
Income tax expense	1,112		9,461		(88.2)	%


Net income	4,725		41,109		(88.5)	%

Net income attributable to The New York Times Company common stockholders	$	4,725	$	41,109	(88.5)	%

For the Quarters Ended For the Nine Months Ended
(In thousands) September 24, 2017
September 25, 2016
% Change
September 24, 2017
September 25, 2016
% Change
Revenues

Subscription $ 246,638
$ 217,099
13.6 % $ 739,050
$ 654,573
12.9 %
Advertising 113,633
124,898
(9.0 )% 375,895
395,733
(5.0 )%
Other 25,364
21,550
17.7 % 76,568
65,386
17.1 %
Total revenues 385,635
363,547
6.1 % 1,191,513
1,115,692
6.8 %
Operating costs
Production costs:

Wages and benefits 89,866
91,041
(1.3 )% 269,209
274,142
(1.8 )%
Raw materials 15,718
18,228
(13.8 )% 48,461
53,115
(8.8 )%
Other 44,336
47,347
(6.4 )% 134,771
139,938
(3.7 )%
Total production costs 149,920
156,616
(4.3 )% 452,441
467,195
(3.2 )%
Selling, general and administrative costs 184,483
184,596
(0.1 )% 595,491
534,911
11.3 %
Depreciation and amortization 15,677
15,384
1.9 % 46,961
46,003
2.1 %
Total operating costs 350,080
356,596
(1.8 )% 1,094,893
1,048,109
4.5 %
Headquarters redesign and consolidation 2,542
—
*
6,929
—
*
Restructuring charge —
2,949
*
—
14,804
*
Multiemployer pension plan withdrawal expense —
(4,971 ) *
—
6,730
*
Operating profit 33,013
8,973
*
89,691
46,049
94.8 %
Gain/(loss) from joint ventures 31,557
463
*
31,464
(41,845 ) *
Interest expense, net 4,660
9,032
(48.4 )% 15,118
26,955
(43.9 )%
Income/(loss) from continuing operations before income taxes 59,910
404
*
106,037
(22,751 ) *
Income tax expense/(benefit) 23,420
121
*
40,873
(8,956 ) *
Income/(loss) from continuing operations 36,490
283
*
65,164
(13,795 ) *
Loss from discontinued operations, net of income taxes 488
—
*
488
—
*
Net income/(loss) 36,002
283
*
64,676
(13,795 ) *
Net (income)/loss attributable to the noncontrolling interest (3,673 ) 123
*
(3,567 ) 5,719
*
Net income/(loss) attributable to The New York Times Company common stockholders $ 32,329
$ 406
*
$ 61,109
$ (8,076 ) *
* Represents a change equal to or in excess of 100% or not meaningful.


*	~~Represents a change equal to or in excess of 100% or not meaningful.~~

Revenues

Subscription Revenues

~~As of the second quarter of 2017, the Company has renamed “circulation revenues” as “subscription revenues.”~~ Subscription revenues consist of revenues from subscriptions to our ~~print~~digital and ~~digital~~print products (which include our news product, as well as The Athletic and our ~~Crossword~~Games, Cooking, Audm and ~~Cooking~~Wirecutter products), ~~as well as~~and single-copy and bulk sales of our print products (which ~~comprise approximately 10%~~represent less than 5% of these revenues). ~~Our Cooking product first launched as a paid digital product earlier in the third quarter of 2017. These~~Subscription revenues are based on both the number of copies of the printed newspaper sold and digital-only subscriptions, and the rates charged to the respective customers.

2022 Compared with 2021

Subscription revenues increased ~~13.6% in the third quarter and 12.9%~~13.0% in the first ~~nine months~~quarter of ~~2017~~2022 compared with the same prior-year ~~periods,~~period, primarily due to ~~significant~~ growth ~~in recent quarters~~ in the number of ~~subscriptions~~subscribers to the Company’s ~~digital subscription~~digital-only products and a benefit from subscriptions graduating to higher prices from introductory promotional pricing, as well as the ~~2017 increase~~inclusion of subscription revenue from The Athletic. The increases in ~~home-delivery prices for The New York Times newspaper, which more than~~subscription revenue were slightly offset by a ~~decline~~decrease in print ~~copies sold. Revenues~~subscription revenue primarily attributable to lower domestic home delivery revenue, which declined 2.2%, as well as lower single-copy revenue. There is no print subscription revenue generated from ~~our~~The Athletic.

The Company ended the first quarter of 2022 with approximately 9,108,000 paid subscribers with approximately 10,390,000 paid subscriptions across its print and digital products. Of the 9,108,000 subscribers, 8,328,000 were paid digital-only ~~news~~subscribers with 9,620,000 paid digital-only subscriptions. As a result of the acquisition of The Athletic during the quarter, the Company added The Athletic’s approximately 1,101,000 subscribers and 1,233,000 subscriptions ~~(including e-readers~~as of the date of acquisition.

There was a net increase of 387,000 digital-only subscribers and ~~replica editions) were $82.1 million~~382,000 digital-only subscriptions compared with the end of the fourth quarter of 2021 and a net increase of 1,354,000 digital-only subscriptions compared with the end of the first quarter of 2021. These net increases included approximately 16,000 net subscriber and 24,000 net subscription additions to The Athletic since the acquisition. In addition, during the quarter, the Company expanded the terms of domestic home delivery print subscriptions to include access to its Games product and canceled approximately 67,000 standalone Games subscriptions held by home delivery subscribers. This change reduced digital-only subscriptions by 67,000 in the ~~third~~quarter, but had no impact on subscriber numbers.

Print domestic home delivery subscribers totaled approximately 780,000 with 770,000 print subscriptions at the end of the first quarter of ~~2017~~2022, a net decrease of 15,000 subscribers and ~~$234.2 million in~~14,000 subscriptions compared with the end of the fourth quarter of 2021 and a net decrease of 57,000 subscribers and 55,000 subscriptions compared with the end of the first ~~nine months~~quarter of ~~2017, an increase of 46.2% and 44.3% from the third quarter and first nine months of 2016, respectively.~~2021.

The following table summarizes ~~digital-only~~digital and print subscription revenues for the ~~third~~first quarters of 2022 and ~~first nine months of 2017 and 2016:~~2021:


	For the Quarters Ended
(In thousands)	March 27, 2022		March 28, 2021		% Change
Digital-only subscription revenues (1)	$	226,763	$	179,599	26.3	%
Print subscription revenues:
Domestic home delivery subscription revenues (2)	131,391		134,395		(2.2)	%
Single-copy, NYT International and Other subscription revenues (3)	13,825		15,090		(8.4)	%
Subtotal print subscription revenues	145,216		149,485		(2.9)	%
Total subscription revenues	$	371,979	$	329,084	13.0	%
(1) Includes revenue from digital-only bundled and standalone subscriptions to the Company’s news product, as well as The Athletic and our Games, Cooking, Audm and Wirecutter products.
(2) Domestic home delivery subscriptions include access to digital news, Games, Cooking and Wirecutter products.
(3) NYT International is the international edition of our print newspaper.

For the Quarters Ended For the Nine Months Ended
(In thousands) September 24, 2017
September 25, 2016
% Change September 24, 2017
September 25, 2016
% Change
Digital-only subscription revenues:
News product subscription revenues⁽¹⁾
$ 82,073
$ 56,144
46.2 % $ 234,234
$ 162,344
44.3 %
Other product subscription revenues⁽²⁾
3,610
2,408
49.9 % 9,810
6,778
44.7 %
Total digital-only subscription revenues $ 85,683
$ 58,552
46.3 % $ 244,044
$ 169,122
44.3 %
⁽¹⁾Includes revenues from subscriptions to the Company’s news product. News product subscription packages that include access to the Company’s Crossword and Cooking products are also included in this category.
⁽²⁾Includes revenues from standalone subscriptions to the Company’s Crossword and Cooking products.
We offer a digital subscription package (or “bundle”) that includes access to our digital news, Games, Cooking and Wirecutter products. We also offer standalone digital subscriptions to our digital news product, as well as to The Athletic, and our Games, Cooking, Audm and Wirecutter products. The Company has set out below the number of digital-only, print and total subscribers to the Company’s products as well as certain additional metrics, including average revenue per subscriber. A digital-only subscriber is defined as a subscriber who has subscribed (and provided a valid method of payment) for the right to access one or more of the Company’s digital products.

The following table summarizes ~~digital-only subscriptions~~digital and print subscribers as of the end of the ~~third~~first quarters of ~~2017~~2022 and ~~2016:~~

2021, and fourth quarter of 2021:

For the Quarters Ended
(In thousands) September 24, 2017
September 25, 2016
% Change
Digital-only subscriptions⁽¹⁾:

News product subscriptions⁽²⁾
2,132
1,338
59.3 %
Other product subscriptions⁽³⁾
355
225
57.8 %
Total digital-only subscriptions 2,487
1,563
59.1 %
⁽¹⁾ Reflects certain immaterial prior-period corrections.

⁽²⁾Includes subscriptions to the Company’s news product. News product subscription packages that include access to the Company’s Crossword and Cooking products are also included in this category.
⁽³⁾Includes standalone subscriptions to the Company’s Crossword and Cooking products.


	For the Quarters Ended
	March 27, 2022	March 28, 2021	% Change		December 26, 2021	% Change
Digital-only subscribers(1)	8,328	6,101	36.5	%	6,840	21.8	%
Print subscribers(2)	780	837	(6.8)	%	795	(1.9)	%
Total subscribers	9,108	6,938	31.3	%	7,635	19.3	%
(1) Subscribers with paid digital-only subscriptions to one or more of the Company’s news, The Athletic, Games, Cooking and Wirecutter products. Subscribers with a paid domestic home-delivery print subscription to The New York Times are excluded. The number of paid digital-only subscribers from group education and group corporate subscriptions (which collectively represented approximately 5% of paid digital-only subscribers as of December 26, 2021) is derived using the value of the relevant contract and a discounted subscription rate.
(2) Subscribers with a paid domestic home delivery or mail print subscription to The New York Times, which also includes access to digital news, Games, Cooking and Wirecutter products, or a paid print subscription to our Book Review or Large Type Weekly products. Book Review, Mail and Large Type Weekly subscribers are included in the count of subscribers but not subscriptions.

The following table summarizes digital and print subscriptions(1) as of the end of the first quarters of 2022 and 2021, and the fourth quarter of 2021:


	For the Quarters Ended
(In thousands)	March 27, 2022	March 28, 2021	% Change		December 26, 2021	% Change
Digital-only subscriptions (2)(3)	9,620	7,033	36.8	%	8,005	20.2	%
Print subscriptions (4)	770	825	(6.7)	%	784	(1.8)	%
Total subscriptions	10,390	7,858	32.2	%	8,789	18.2	%
(1) While the Company is moving toward an emphasis on individual subscriber growth rather than growth of total subscriptions, we expect to continue to report on the number of subscriptions at least through the fourth quarter of 2022.
(2) Paid digital-only subscriptions to the Company’s news, The Athletic, Games, Cooking, Audm and Wirecutter products. Standalone subscriptions to these products are counted separately and bundle subscriptions are counted as one subscription.
(3) The number of paid digital-only subscriptions includes estimated group corporate and group education subscriptions (which collectively represent approximately 5% of paid digital-only subscriptions as of December 26, 2021). We calculate this estimate using the value of the relevant contract and a discounted subscription rate. The actual number of users who have access to our products through group subscriptions is substantially higher. In the fourth quarter of 2021, we updated the discounted subscription rate used as part of this calculation in order to bring it in line with our current digital subscription pricing model. For comparison purposes, we recast digital-only subscriptions in prior periods using the updated methodology, and this resulted in approximately 42,000 additional group corporate and group education subscriptions in the first quarter of 2021. There is no impact to subscription revenue as a result of this change.
(4) Paid domestic home-delivery print subscriptions to The New York Times, which also include access to digital news, Games, Cooking and Wirecutter products. Excludes subscriptions to our Book Review or Large Type Weekly products and subscriptions to The New York Times that are delivered by mail.

The following table summarizes supplementary subscriber metrics as of the end of the first quarters of 2022 and 2021, and fourth quarter of 2021:


	For the Quarters Ended
(In thousands except for ARPU)	March 27, 2022		March 28, 2021		% Change		December 26, 2021		% Change
Digital-only subscriber ARPU(1)	$	9.04	$	9.15	(1.2)	%	$	9.55	(5.3)	%
Total multiproduct subscribers(2)	2,569		2,100		22.3	%	2,351		9.3	%
Digital-only subscribers with News(3)	6,150		5,290		16.3	%	5,880		4.6	%
Subscribers with The Athletic(4)	1,257		N/A		N/A		N/A		N/A
(1) “Digital-only subscriber Average Revenue per User” or “Digital-only subscriber ARPU” is calculated by dividing the average monthly digital subscription revenue (calculated by dividing digital subscription revenue in the quarter by 3.25 to reflect a 28-day billing cycle) in the measurement period by the average number of digital subscribers during the period.
(2) Subscribers with paid subscriptions that include access to two or more of the Company’s products, including through separate standalone subscriptions; a digital bundle; or a print home-delivery subscription (which includes access to our digital news, Games, Cooking and Wirecutter products).
(3) Subscribers with a paid digital-only subscription that includes access to the Company’s digital news product.
(4) Subscribers with a paid subscription that includes access to The Athletic.

We believe that the significant growth over the last several years in subscriptions to our products demonstrates the success of our “subscription-first” strategy and the willingness of our readers to pay for high-quality journalism. The Company is increasing its emphasis on subscriber growth rather than growth of total subscriptions. The following charts illustrate the growth in net digital-only subscribers and corresponding subscription revenues as well as the relative stability of our print domestic home delivery subscription products.

(1) Amounts may not add due to rounding.

(2) Includes access to some of our digital products.

(3) Includes Book Review, Mail and Large Type Weekly subscribers.

(4) Print Other includes single-copy, NYT International and other subscription revenues

Advertising Revenues

Advertising revenues are derived from the sale of our advertising products and services on our print, web and mobile platforms. These revenues are primarily determined by the volume, rate and mix of advertisements. Display advertising revenue is principally from advertisers (such as technology, financial and luxury goods companies) promoting products, services or brands on digital platforms in the form of display ads, audio and video, and in print, in the form of column-inch ads. Advertising revenue is primarily derived from offerings sold directly to marketers by our advertising sales teams. A smaller proportion of our total advertising revenues is generated through programmatic auctions run by third-party ad exchanges. Advertising revenue is primarily determined by the volume (e.g., impressions or column inches), rate and mix of advertisements. Digital advertising includes our core digital advertising business and other digital advertising. Our core digital advertising business includes direct-sold website, mobile application, podcast, email and video advertisements. Advertising revenue from The Athletic is primarily podcast revenue and therefore is reflected in this category. Direct-sold display advertising, a component of core digital advertising, includes offerings on websites and mobile applications sold directly to marketers by our advertising sales teams. Other digital advertising includes open-market programmatic advertising and creative services fees. Print advertising includes revenue from column-inch ads and ~~on our web and mobile platforms in the form of banners, video, rich media and other interactive ads. Display~~classified advertising, also includes branded content on The Times’s platforms. Classified advertising revenue includes line-ads sold in the major categories of real estate, help wanted, automotive and other. Other advertising revenue primarily includes creative services fees associated with, among other things, our branded content studio; revenue fromas well as preprinted advertising, also known as ~~free-standing inserts;~~freestanding inserts.

The following table summarizes digital and print advertising revenues for the first quarters of 2022 and 2021:


	For the Quarters Ended
(In thousands)	March 27, 2022		March 28, 2021		% Change
Advertising revenues:
Digital	$	67,014	$	59,496	12.6	%
Print	49,256		37,620		30.9	%
Total advertising	$	116,270	$	97,116	19.7	%

2022 Compared with 2021

Digital advertising revenues, which represented 57.6% of total advertising revenues in the first quarter of 2022, increased $7.5 million, or 12.6%, to $67.0 million compared with $59.5 million in the same prior-year period, of which $1.8 million, or 23.7%, was contributed by The Athletic following the acquisition. The increase was primarily driven by higher direct-sold advertising, including traditional display and podcasts. Core digital advertising revenue ~~generated~~increased $10.3 million, which includes $1.8 million from ~~branded bags~~The Athletic, due to growth in ~~which our newspapers are delivered.~~

~~Advertising revenues (print~~direct-sold display advertising and ~~digital)~~podcast advertising revenues. Direct-sold display impressions increased 7%, while the average rate grew 19%. Other digital advertising revenue decreased $2.8 million, primarily due to a 16% decrease in creative services fees, as well as a 14.3% decrease in open-market programmatic advertising revenue. Programmatic impressions decreased by ~~category were as follows:~~

For the Quarters Ended
September 24, 2017 September 25, 2016 % Change
(In thousands) Print Digital Total Print Digital Total Print Digital Total
Display $ 56,710
$ 41,547
$ 98,257
$ 72,442
$ 38,447
$ 110,889
(21.7 )% 8.1 % (11.4 )%
Classified and Other 7,679
7,697
15,376
8,102
5,907
14,009
(5.2 )% 30.3 % 9.8 %
Total advertising $ 64,389
$ 49,244
$ 113,633
$ 80,544
$ 44,354
$ 124,898
(20.1 )% 11.0 % (9.0 )%

For the Nine Months Ended
September 24, 2017 September 25, 2016 % Change
(In thousands) Print Digital Total Print Digital Total Print Digital Total
Display $ 196,836
$ 129,008
$ 325,844
$ 238,399
$ 114,957
$ 353,356
(17.4 )% 12.2 % (7.8 )%
Classified and Other 24,966
25,085
50,051
26,156
16,221
42,377
(4.5 )% 54.6 % 18.1 %
Total advertising $ 221,802
$ 154,093
$ 375,895
$ 264,555
$ 131,178
$ 395,733
(16.2 )% 17.5 % (5.0 )%
36%, while the average rate increased 32%.

Print advertising revenues, which represented ~~56.7%~~42.4% of total advertising revenues ~~for the third quarter of 2017 and 59.0% of total advertising revenues for the first nine months of 2017, declined 20.1% to $64.4 million in the third quarter of 2017 and 16.2% to $221.8 million~~ in the first ~~nine months~~quarter of ~~2017,~~2022, increased $11.6 million, or 30.9%, to $49.3 million compared with ~~$80.5~~$37.6 million ~~and $264.6 million, respectively,~~ in the same prior-year ~~periods.~~period. There is no print advertising revenue generated from The ~~decrease~~Athletic. The increase in ~~both periods~~the first quarter of 2022 was ~~driven by a decline in display advertising,~~ primarily in the entertainment and luxury ~~travel, real estate, media, technology and telecommunications categories.~~

~~Digital advertising revenues,~~categories, which ~~represented 43.3% of total advertising revenues for~~were more severely impacted by the ~~third quarter of 2017 and 41.0% of total advertising revenues for the first nine months of 2017, increased 11.0% to $49.2 million in the third quarter of 2017 and 17.5% to $154.1 million~~Covid-19 pandemic in the first nine months of 2017, respectively, compared with $44.4 million and $131.2 million, respectively, in the same prior-year periods. The increase in both periods primarily reflected increases in revenue from our smartphone platform, programmatic channels and branded content, partially offset by a continued decrease in traditional website display advertising.

~~Classified and Other advertising revenues increased 9.8% in the third~~ quarter of ~~2017 and 18.1% in the first nine months of 2017, compared with the same prior-year periods, due to an increase in digital creative services fees.~~2021.

Other Revenues

Other revenues primarily consist of revenues from ~~news services/syndication, digital archives, building rental income,~~licensing, Wirecutter affiliate referrals, commercial printing, the leasing of floors in the Company Headquarters, retail commerce, our ~~NYT Live~~student subscription sponsorship program, our live events business, ~~e-commerce~~ and ~~affiliate referrals.~~television and film.

2022 Compared with 2021

Other revenues increased ~~17.7% in the third quarter of 2017 and 17.1%~~5.0% in the first ~~nine months of 2017, compared with the same prior-year periods, largely due to affiliate referral revenue associated with Wirecutter, which the Company acquired in October 2016.~~

~~Operating Costs~~

~~Operating costs were as follows:~~

For the Quarters Ended For the Nine Months Ended
(In thousands) September 24, 2017
September 25, 2016
% Change
September 24, 2017
September 25, 2016
% Change
Production costs:
Wages and benefits $ 89,866
$ 91,041
(1.3 )% $ 269,209
$ 274,142
(1.8 )%
Raw materials 15,718
18,228
(13.8 )% 48,461
53,115
(8.8 )%
Other 44,336
47,347
(6.4 )% 134,771
139,938
(3.7 )%
Total production costs 149,920
156,616
(4.3 )% 452,441
467,195
(3.2 )%
Selling, general and administrative costs 184,483
184,596
(0.1 )% 595,491
534,911
11.3 %
Depreciation and amortization 15,677
15,384
1.9 % 46,961
46,003
2.1 %
Total operating costs $ 350,080
$ 356,596
(1.8 )% $ 1,094,893
$ 1,048,109
4.5 %

~~Production Costs~~

Production costs include items such as labor costs, raw materials, and machinery and equipment expenses related to news-gathering and production activity, as well as costs related to producing branded content.

~~Production costs decreased in the third~~ quarter of 2017 compared with the third quarter of 2016, driven by a decrease in other expenses ($3.0 million), raw materials ($2.5 million) and wage and benefits ($1.2 million). Other expenses decreased primarily as a result of lower outside printing expenses and costs related to coverage of the 2016 presidential election that did not recur in 2017. Raw materials expense decreased due to lower newsprint and magazine consumption. Wage and benefits expense decreased due to the streamlining of our international operations in 2016.

Production costs decreased in the first nine months of 2017 compared with the first nine months of 2016, driven by a decrease in other expenses ($5.2 million), wage and benefits ($4.9 million), and raw materials ($4.7 million). Other expenses decreased primarily as a result of lower outside printing expenses. Wage and benefits expense decreased primarily due to the streamlining of our international operations in 2016. Raw materials expense decreased due to lower newsprint and magazine paper consumption, partially offset by higher newsprint pricing.

~~Selling, General and Administrative Costs~~

~~Selling, general and administrative costs include costs associated with the selling, marketing and distribution of products as well as administrative expenses.~~

Selling, general and administrative costs in the third quarter of 2017 were flat compared with the third quarter of 2016 as lower severance costs ($10.9 million) were primarily offset by an increase in compensation costs ($4.8 million), promotion and marketing costs ($3.4 million) and other operating costs ($3.4 million).

Selling, general and administrative costs increased in the first nine months of 2017 compared with the first nine months of 2016, primarily due to an increase in compensation costs ($25.6 million), promotion and marketing costs ($22.2 million) and severance costs ($4.7 million). Compensation costs increased primarily as a result of an increase in variable compensation expenses and increased hiring to support digital growth initiatives. Promotion and marketing costs increased due to increased spending to promote our brand and subscription business. Severance costs increased due to a workforce reduction announced in the second quarter of 2017 primarily affecting our newsroom.

~~Depreciation and Amortization~~

~~Depreciation and amortization costs increased in the third quarter and the first nine months of 2017~~2022, compared with the same prior-year period, primarily as a result of higher commercial printing revenue as we began printing several News Corporation publications in our College Point, N.Y., printing and distribution facility in mid-2021, and higher Wirecutter affiliate referral revenues mainly due to Wirecutter’s presence on our core news website (NYTimes.com) homepage resulting in increased views. These increases were partially offset by lower television series revenues as no new episodes aired in 2022 compared to 2021.

Building rental revenue from the leasing of floors in the Company Headquarters totaled $7.1 million and $6.2 million in the first quarters of 2022 and 2021, respectively.

Operating Costs

Operating costs were as follows:


	For the Quarters Ended
(In thousands)	March 27, 2022		March 28, 2021		% Change
Operating costs:
Cost of revenue (excluding depreciation and amortization) (1)	$	281,365	$	250,997	12.1	%
Sales and marketing	77,588		60,153		29.0	%
Product development (1)	47,433		38,943		21.8	%
General and administrative (1)	71,357		56,577		26.1	%
Depreciation and amortization	18,686		14,717		27.0	%
Total operating costs	$	496,429	$	421,387	17.8	%
(1)Technology costs, which include product development costs and certain components of cost of revenue and general and administrative costs as described below, increased 22.0% to $87.9 million compared with $72.1 million the first quarter of 2021.

Cost of Revenue (excluding depreciation and amortization)

Cost of revenue includes all costs related to content creation, subscriber and advertiser servicing, and print production and distribution as well as infrastructure costs related to delivering digital content, which include all cloud and cloud-related costs as well as compensation for employees that enhance and maintain that infrastructure.

2022 Compared with 2021

Cost of revenue increased in the first quarter of 2022 by $30.4 million, or 12.1%, compared with the first quarter of 2021. The increase is largely due to higher journalism costs of $22.1 million, higher subscriber servicing costs of $5.0 million, and higher print production and distribution costs of $2.5 million. The increase in journalism costs was largely driven by growth in the number of employees who work in the newsroom and on our Games, Cooking, Audm and Wirecutter products, as well as the inclusion of $10.8 million in journalism costs from The Athletic. The increase in subscriber servicing costs was primarily due to higher credit card processing fees and third-party commissions due to increased subscriptions. The increase in print production and distribution costs was largely due to an increase in newsprint pricing and higher compensation and benefits. Technology costs in Cost of revenue, which include costs related to content delivery and subscriber technology, increased 12.3%to $24.5 million compared with $21.8 million in the first quarter of 2021.

Sales and Marketing

Sales and marketing includes costs related to the Company’s marketing efforts as well as advertising sales costs. Media expenses is a component of sales and marketing costs that represents the cost to promote our subscription business.

2022 Compared with 2021

Sales and marketing costs in the first quarter of 2022 increased by $17.4 million, or 29.0%, compared with the first quarter of 2021. The increase is primarily due to higher media expenses and the inclusion of $3.1 million in sales and marketing costs from The Athletic.

Media expenses increased to $46.3 million in the first quarter of 2022 from $35.9 million in the first quarter of 2021 largely as a result of higher brand marketing expenses.

Product Development

Product development includes costs associated with the Company’s investment in developing and enhancing new and existing product technology, including engineering, product development and data insights.

2022 Compared with 2021

Product development costs in the first quarter of 2022 increased by $8.5 million, or 21.8%, compared with the first quarter of 2021. The increase was largely due to growth in the number of digital product development employees in connection with digital subscription strategic initiatives as well as the inclusion of $2.3 million in product development costs from The Athletic. All product development costs are technology costs.

General and Administrative Costs

General and administrative costs include general management, corporate enterprise technology, building operations, unallocated overhead costs, severance and multiemployer pension plan withdrawal costs.

2022 Compared with 2021

General and administrative costs in the first quarter of 2022 increased by $14.8 million, or 26.1%, compared with the first quarter of 2021. The increase is primarily due to growth in the number of employees as well as the inclusion of $1.7 million in general and administrative costs from The Athletic. Technology costs in General and administrative, which include costs related to enterprise technology and information security, increased 41.0% million to $16.0 million compared with $11.3 million in the first quarter of 2021.

Depreciation and Amortization

2022 Compared with 2021

Depreciation and amortization costs in the first quarter of 2022 increased $4.0 million, or 27.0%, compared to the first quarter of 2021. The increase is due to the ~~Company’s~~ acquisition of The ~~Wirecutter.~~

~~Other Items~~Athletic, partially offset by lower depreciation of software assets.

See Note 7 of the Notes to the Condensed Consolidated Financial Statements for additional information regarding other ~~items,~~items.

Segment Information

On February 1, 2022, we acquired The Athletic. For the first quarter of 2022, the results of The Athletic have been included in our Condensed Consolidated Financial Statements beginning February 1, 2022. Beginning in the first quarter of 2022, we have two reportable segments: The New York Times Group and The Athletic. Management, including our President and Chief Executive Officer (who is our Chief Operating Decision Maker), uses adjusted operating profit by segment (as defined below) in assessing performance and allocating resources. We include in our presentation revenues and adjusted operating costs (as defined below) to arrive at adjusted operating profit by segment. See “Non-GAAP Financial Measures” below for more information on adjusted operating costs and adjusted operating profit.


	For the Quarters Ended
(In thousands)	March 27, 2022		March 28, 2021		% Change
Revenues
The New York Times Group	$	525,268	$	473,045	11.0	%
The Athletic	12,157		—		*
Total revenues	$	537,425	$	473,045	13.6	%
Adjusted operating costs
The New York Times Group	$	457,543	$	404,938	13.0	%
The Athletic	18,979		—		*
Total adjusted operating costs	$	476,522	$	404,938	17.7	%
Adjusted operating profit
The New York Times Group	$	67,725	$	68,107	(0.6)	%
The Athletic	(6,822)		—		*
Total adjusted operating profit	$	60,903	$	68,107	(10.6)	%
* Represents a change equal to or in excess of 100% or not meaningful.


Revenues detail by segment
	For the Quarters Ended
(In thousands)	March 27, 2022		March 28, 2021		% Change
The New York Times Group
Subscription	$	361,602	$	329,084	9.9	%
Advertising	114,490		97,116		17.9	%
Other	49,176		46,845		5.0	%
Total	$	525,268	$	473,045	11.0	%
The Athletic
Subscription	$	10,377	$	—	*
Advertising	1,780		—		*

Total	$	12,157	$	—	*
The New York Times Company
Subscription	$	371,979	$	329,084	13.0	%
Advertising	116,270		97,116		19.7	%
Other	49,176		46,845		5.0	%
Total	$	537,425	$	473,045	13.6	%
* Represents a change equal to or in excess of 100% or not meaningful.


Adjusted operating costs (operating costs before depreciation and amortization, severance and multiemployer pension plan withdrawal costs) details by segment
	For the Quarters Ended
(In thousands)	March 27, 2022		March 28, 2021		% Change
The New York Times Group
Cost of revenue (excluding depreciation and amortization)	$	269,476	$	250,997	7.4	%
Sales and marketing	74,460		60,153		23.8	%
Product development	45,179		38,943		16.0	%
Adjusted general and administrative (1)	68,428		54,845		24.8	%
Total	$	457,543	$	404,938	13.0	%
The Athletic
Cost of revenue (excluding depreciation and amortization)	$	11,889	$	—	*
Sales and marketing	3,128		—		*
Product development	2,254		—		*
Adjusted general and administrative	1,708		—		*
Total	$	18,979	$	—	*
The New York Times Company
Cost of revenue (excluding depreciation and amortization)	$	281,365	$	250,997	12.1	%
Sales and marketing	77,588		60,153		29.0	%
Product development	47,433		38,943		21.8	%
Adjusted general and administrative (1)	70,136		54,845		27.9	%
Total	$	476,522	$	404,938	17.7	%
(1) Excludes multiemployer pension withdrawal costs of $1.2 million for the quarter ended March 27, 2022 and severance and multiemployer pension withdrawal costs of $0.4 million and $1.3 million, respectively, for the quarter ended March 28,2021.
* Represents a change equal to or in excess of 100% or not meaningful.

The New York Times Group

New York Times Group revenues grew 11.0% in the first quarter of 2022 to $525.3 million from $473.0 million in the first quarter of 2021. Subscription revenues increased 9.9% to $361.6 million from $329.1 million in the first quarter of 2021, primarily due to growth in subscription revenues from digital-only products. Advertising revenues increased 17.9% to $114.5 million from $97.1 million in the first quarter of 2021 due to growth in print and digital advertising revenues.

New York Times Group operating costs grew 13.0% in the first quarter of 2022 to $457.5 million from $404.9 million in the first quarter of 2021. The increase in costs were primarily related to growth in the ~~redesign~~number of ~~our headquarters building.~~employees and higher media expenses.

Adjusted operating profit decreased 0.6% to $67.7 million from $68.1 million in the prior year as higher revenues were more than offset by higher costs.

The Athletic

For the approximately two months in the first quarter of 2022 that the Company owned The Athletic, revenues totaled $12.2 million, primarily from subscription revenues.

The Athletic adjusted operating costs totaled $19.0 million for the period of the first quarter from February 1, 2022, largely from cost of revenue, which was primarily related to journalism costs.

The Athletic adjusted operating loss totaled $6.8 million for the period of the first quarter from February 1, 2022.

NON-OPERATING ITEMS

~~Joint Ventures~~Other Components of Net Periodic Benefit Costs

See Note 59 of the Notes to the Condensed Consolidated Financial Statements for information regarding ~~our joint venture investments.~~other components of net periodic benefit costs.

Interest ~~Expense, Net~~Income and other, net

See Note 67 of the Notes to the Condensed Consolidated Financial Statements for information regarding interest ~~expense.~~income and other, net.

Income Taxes

See Note 10 of the Notes to the Condensed Consolidated Financial Statements for information regarding income taxes.

~~Non-GAAP Financial Measures~~NON-GAAP FINANCIAL MEASURES

We have included in this report certain supplemental financial information derived from consolidated financial information but not presented in our financial statements prepared in accordance with GAAP. Specifically, we have referred to the following non-GAAP financial measures in this report:

•diluted earnings per share from continuing operations excluding severance, non-operating retirement costs and the impact of special items (or adjusted diluted earnings per share from continuing operations);

•operating profit before depreciation, amortization, severance, ~~non-operating retirement~~multiemployer pension plan withdrawal costs and special items (or adjusted operating profit);, and expressed as a percentage of revenues, adjusted operating profit margin; and

•operating costs before depreciation, amortization, severance and ~~non-operating retirement~~multiemployer pension plan withdrawal costs (or adjusted operating costs).

The special ~~items~~item in ~~2017~~the first quarter of 2022 consisted of:

•a ~~$30.1~~$34.7 million ~~gain~~of pre-tax costs ($~~16.1~~25.4 million or $0.15 per share after tax and net of noncontrolling interest or $.10 per share) from the sale of the remaining assets at a paper mill previously operated by Madison Paper Industries (“Madison”), in which the Company has an investment through a subsidiary, in the third quarter; and

~~expenses of $2.5 million ($1.5 million after tax or $.01 per share), $2.0 million ($1.2 million after tax or $.01 per share) and $2.4 million ($1.4 million after tax or $.01 per share)~~tax) related to the ~~ongoing redesign and consolidation~~acquisition of ~~space in our headquarters building in the third, second and first quarters, respectively.~~

The ~~special items in 2016 consisted of:~~

~~charges of $2.9 million ($1.8 million after tax or $.01 per share) and $11.9 million ($7.1 million after tax or $.04 per share)~~Athletic. Acquisition-related costs primarily include expenses paid in connection with the ~~streamlining~~acceleration of ~~the Company’s international print operations (primarily consisting of severance costs) in the third~~The Athletic stock options, and ~~second quarters, respectively;~~legal, accounting, financial advisory and integration planning expenses.

an $11.7 million charge ($7.0 million after tax or $.04 per share) for a partial withdrawal obligation under a multiemployer pension plan following an unfavorable arbitration decision in the second quarter, $5.0 million ($3.0 million after tax or $.02 per share) of which was reimbursed to the Company in the third quarter; and

~~a $41.4 million loss ($20.1 million after tax and net of the noncontrolling interest or $0.13 per share) from joint ventures~~There were no special items in the first quarter ~~related to the announced closure~~ of ~~a paper mill operated by Madison.~~2021.

We have included these non-GAAP financial measures because management reviews them on a regular basis and uses them to evaluate and manage the performance of our operations. We believe that, for the reasons outlined below, these non-GAAP financial measures provide useful information to investors as a supplement to reported diluted earnings/(loss) per share from continuing operations, operating profit/(loss) and operating costs. However, these measures should be evaluated only in

conjunction with the comparable GAAP financial measures and should not be viewed as alternative or superior measures of GAAP results.

Adjusted diluted earnings per share provides useful information in evaluating ~~our~~the Company’s period-to-period performance because it eliminates items that ~~we do~~the Company does not consider to be indicative of earnings from ongoing operating activities. Adjusted operating profit (and adjusted operating profit margin) is useful in evaluating the ongoing performance of ~~our~~the Company’s businesses as it excludes the significant non-cash impact of depreciation and amortization as well as items not indicative of ongoing operating activities. Total operating costs include depreciation, amortization, severance and ~~non-operating retirement~~multiemployer pension plan withdrawal costs. ~~Adjusted~~Total operating costs, ~~which exclude~~excluding these items, provide investors with helpful supplemental information on ~~our~~the Company’s underlying operating costs that is used by management in its financial and operational decision-making.

Management considers special items, which may include impairment charges, pension settlement charges, acquisition-related costs and other items that arise from time to time, to be outside the ordinary course of our operations. Management believes that excluding these items provides a better understanding of the underlying trends in the Company’s operating performance and allows more accurate comparisons of the Company’s operating results to historical performance. In addition, management excludes severance costs, which may fluctuate significantly from quarter to quarter, because it believes these costs do not necessarily reflect expected future operating costs and do not contribute to a meaningful comparison of the Company’s operating results to historical performance.

~~Non-operating~~Included in our non-GAAP financial measures are non-operating retirement costs ~~include:~~

~~interest cost, expected return on plan assets and amortization of actuarial gain and loss components of pension expense;~~

~~interest cost and amortization of actuarial gain and loss components of retiree medical expense; and~~

~~all expenses associated with multiemployer pension plan withdrawal obligations, not otherwise included as special items.~~

~~These non-operating retirement costs~~which are primarily tied to financial market performance and changes in market interest rates and investment performance. Non-operating retirement costs do not include service costs and amortization of prior service costs for pension and retiree medical benefits, which we believe reflect the ongoing operating costs of providing pension and retiree medical benefits to our employees. We considerManagement considers non-operating retirement costs to be outside the performance of ~~our ongoing core~~the business ~~operations~~ and ~~believe~~believes that presenting ~~operating results~~adjusted diluted earnings per share from continuing operations excluding non-operating retirement costs and presenting adjusted operating results excluding multiemployer pension plan withdrawal costs, in addition to ~~our~~the Company’s GAAP diluted earnings per share from continuing operations and GAAP operating results, ~~provides~~provide increased transparency and a better understanding of the underlying trends in ~~our~~the Company’s operating business performance.

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are set out in the tables below.

Reconciliation of diluted earnings per share from continuing operations excluding severance, non-operating retirement costs and special items (or adjusted diluted earnings per share from continuing operations)
For the Quarters Ended For the Nine Months Ended
September 24, 2017
September 25, 2016
% Change September 24, 2017
September 25, 2016
% Change
Diluted earnings/(loss) per share from continuing operations $ 0.20
$ —
*
$ 0.37
$ (0.05 ) *
Add:
Severance 0.01
0.08
(87.5 )% 0.14
0.11
27.3 %
Non-operating retirement costs 0.02
0.02
*
0.06
0.08
(25.0 )%
Special items:
Headquarters redesign and consolidation 0.02
—
*
0.04
—
*
Restructuring charge —
0.02
*
—
0.09
*
Multiemployer pension plan withdrawal (income)/expense —
(0.03 ) *
—
0.04
*
(Gain)/loss from joint ventures, net of noncontrolling interest (0.16 ) —
*
(0.16 ) 0.21
*
Income tax expense/(benefit) of adjustments 0.04
(0.04 ) *
(0.03 ) (0.21 ) (85.7 )%
Adjusted diluted earnings per share from continuing operations ⁽¹⁾
$ 0.13
$ 0.06
*
$ 0.42
$ 0.27
55.6 %


Reconciliation of diluted earnings per share from continuing operations excluding severance, non-operating retirement costs and special items (or adjusted diluted earnings per share from continuing operations)
	For the Quarters Ended
	March 27, 2022		March 28, 2021		% Change
Diluted earnings per share from continuing operations	$	0.03	$	0.24	(87.5)	%
Add:

Non-operating retirement costs:
Multiemployer pension plan withdrawal costs	0.01		0.01		—
Other components of net periodic benefit costs	0.01		0.02		(50.0)	%
Special items:
Acquisition-related costs	0.21		—		*





Income tax expense of adjustments	(0.06)		(0.01)		*
Adjusted diluted earnings per share from continuing operations(1)	$	0.19	$	0.26	(26.9)	%

(1)Amounts may not add due to rounding.


*	~~Represents a change equal to or in excess of 100% or not meaningful~~

* Represents a change equal to or in excess of 100% or not meaningful.


Reconciliation of operating profit before depreciation and amortization, severance, multiemployer pension plan withdrawal costs and special items (or adjusted operating profit)

	For the Quarters Ended
	March 27, 2022			March 28, 2021			% Change
Operating profit	$	6,284		$	51,658		(87.8)	%
Add:
Depreciation and amortization	18,686			14,717			27.0	%
Severance	—			406			*
Multiemployer pension plan withdrawal costs	1,221			1,326			(7.9)	%
Special items:


Acquisition-related costs	34,712			—			*
Adjusted operating profit	$	60,903		$	68,107		(10.6)	%
Divided by:
Revenue	537,425			473,045			13.6	%
Adjusted operating profit margin	11.3		%	14.4		%	(310) bps

* Represents a change equal to or in excess of 100% or not meaningful.


Reconciliation of operating costs before depreciation and amortization, severance and multiemployer pension plan withdrawal costs (or adjusted operating costs)

	For the Quarters Ended
	March 27, 2022		March 28, 2021		% Change
Operating costs	$	496,429	$	421,387	17.8	%
Less:
Depreciation and amortization	18,686		14,717		27.0	%
Severance	—		406		*
Multiemployer pension plan withdrawal costs	1,221		1,326		(7.9)	%
Adjusted operating costs	$	476,522	$	404,938	17.7	%

* Represents a change equal to or in excess of 100% or not meaningful.

Reconciliation of operating profit before depreciation & amortization, severance, non-operating retirement costs and special items (or adjusted operating profit)
For the Quarters Ended For the Nine Months Ended
(In thousands) September 24, 2017
September 25, 2016
% Change
September 24, 2017
September 25, 2016
% Change
Operating profit $ 33,013
$ 8,973
*
$ 89,691
$ 46,049
94.8 %
Add:
Depreciation & amortization 15,677
15,384
1.9 % 46,961
46,003
2.1 %
Severance 2,123
13,006
(83.7 )% 22,977
18,262
25.8 %
Non-operating retirement costs 3,100
3,845
(19.4 )% 9,642
13,349
(27.8 )%
Special items:
Headquarters redesign and consolidation 2,542
—
*
6,929
—
*
Restructuring charge —
2,949
*
—
14,804
*
Multiemployer pension plan withdrawal (income)/expense —
(4,971 ) *
—
6,730
*
Adjusted operating profit $ 56,455
$ 39,186
44.1 % $ 176,200
$ 145,197
21.4 %


*	~~Represents a change equal to or in excess of 100% or not meaningful~~

Reconciliation of operating costs before depreciation & amortization, severance and non-operating retirement costs (or adjusted operating costs)
For the Quarters Ended For the Nine Months Ended
(In thousands) September 24, 2017
September 25, 2016
% Change
September 24, 2017
September 25, 2016
% Change
Operating costs $ 350,080
$ 356,596
(1.8 )% $ 1,094,893
$ 1,048,109
4.5 %
Less:
Depreciation & amortization 15,677
15,384
1.9 % 46,961
46,003
2.1 %
Severance 2,123
13,006
(83.7 )% 22,977
18,262
25.8 %
Non-operating retirement costs 3,100
3,845
(19.4 )% 9,642
13,349
(27.8 )%
Adjusted operating costs $ 329,180
$ 324,361
1.5 % $ 1,015,313
$ 970,495
4.6 %


*	~~Represents a change equal to or in excess of 100% or not meaningful~~

LIQUIDITY AND CAPITAL RESOURCES

We believe our cash balance and cash provided by operations, in combination with other sources of cash, will be sufficient to meet our financing needs over the next twelve months. As of ~~September 24, 2017,~~March 27, 2022, we had cash, cash equivalents and short- and long-term marketable securities of $822.9 million and total debt and capital lease obligations of $249.4 million. Accordingly, our cash, cash equivalents and marketable securities exceeded total debt and capital lease obligations by $573.5$474.8 million. Our cash and ~~investment~~marketable securities balances ~~have increased since the end of 2016,~~between December 26, 2021, and March 27, 2022, decreased primarily due to ~~higher cash from operating activities partially offset by cash capital expenditures~~consideration paid for the acquisition of ~~$47.8 million.~~The Athletic and the annual incentive compensation payments.

We have paid quarterly dividends ~~of $.04 per share~~ on the Class A and Class B Common Stock each quarter since late 2013. In February 2022, the Board of Directors approved an increase in the quarterly dividend to $0.09 per share, which was paid in April 2022. We currently expect to continue to pay comparable cash dividends in the future, although changes in our ~~dividend program~~dividends will be considered by our Board of Directors in light of our earnings, capital requirements, financial condition and other factors considered relevant.

In February 2022, the Board of Directors approved a $150.0 million Class A stock repurchase program. The ~~Company~~authorization provides that Class A shares may be purchased from time to time as market conditions warrant, through open market purchases, privately negotiated transactions or other means, including Rule 10b5-1 trading plans. We expect to repurchase shares primarily to offset the impact of dilution from our equity compensation program, but subject to market conditions and UPM-Kymmene Corporation (“UPM”), a Finnish paper manufacturing company, are partners through subsidiary companies in Madison, which previously operated a supercalendered paper mill in Maine. The Company’s 40% ownership of Madison is through an 80%-owned consolidated subsidiary that owns 50% of Madison. UPM owns 60% of Madison, including a 10% interest through a 20% noncontrolling interest in the consolidated subsidiary of the Company. The paper mill was closed in May 2016. The Company’s joint venture in Madison is currently being liquidated. In the fourth quarter of 2016, Madison sold certain assets at the mill site andother factors, we recognized a gain of $3.9 million related to the sale. During the third quarter of 2017, the Company recognized a $30.1 million gain related to the sale of the remaining assets (which primarily consisted of hydro power assets). The Company’s proportionate share of the gain was $16.1 million after tax and net of noncontrolling interest. See Note 5 of the Notes to the Condensed Consolidated Financial Statements for more information on the Company’s investment in Madison.

~~As part of our continued effort~~may also make opportunistic repurchases to reduce ~~the size and volatility~~share count. There is no expiration date with respect to this authorization. As of our pension obligations, in October 2017, the Company entered into agreements with an insurance company to transfer future benefit obligations and annuity administration of certain retirees in two of the Company’s qualified pension plans. Additionally, as part of our management of the funded status of our qualified pension plans, in October 2017, the Company made a $100March 27, 2022, we repurchased 692,800 shares for approximately $29.0 million ~~aggregate contribution to these pension plans, which was funded by cash on hand. See Note 15 of the Notes to the Condensed Consolidated Financial Statements for additional information.~~under this authorization.

Capital Resources

Sources and Uses of Cash

Cash flows (used in)/provided ~~by/(used in)~~ by category were as follows:

For the Nine Months Ended
(In thousands) September 24, 2017
September 25, 2016
% Change
Operating activities $ 147,895
$ 85,643
72.7 %
Investing activities $ 15,607
$ 10,212
52.8 %
Financing activities $ (19,739 ) $ (44,859 ) (56.0 )%

* Represents a change equal to or in excess of 100% or not meaningful


	For the Quarters Ended
(In thousands)	March 27, 2022		March 28, 2021		% Change
Operating activities	$	(14,659)	$	32,929	(144.5)	%
Investing activities	$	(84,009)	$	(26,208)	220.5	%
Financing activities	$	(51,922)	$	(18,108)	186.7	%

Operating Activities

Cash from operating activities is generated by cash receipts from subscriptions, advertising sales and other ~~revenue transactions.~~revenue. Operating cash outflows include payments for employee compensation, pension and other benefits, raw materials, ~~interest~~marketing expenses and income taxes.

Net cash provided by operating activities ~~increased~~decreased in the first ~~nine months~~quarter of ~~2017~~2022 compared with the same prior-year period primarily due to lower net income, higher ~~subscription revenue, lower income tax~~cash payments ~~higher~~made to settle accounts payable, accrued payroll and aother liabilities, an increase in other assets and lower cash payments received from prepaid subscriptions, partially offset by higher ~~balance of unexpired subscriptions (or subscription revenue that has not yet been recognized).~~cash collections from accounts receivable.

Investing Activities

Cash from investing activities generally includes proceeds from marketable securities that have matured and the sale of assets, investments or a business. Cash used in investing activities generally includes purchases of marketable securities, payments for capital projects ~~restricted cash,~~and acquisitions of new businesses and investments.

Net cash ~~provided by~~used in investing activities in the first ~~nine months~~quarter of ~~2017~~2022 was primarily related to $515.3 million in consideration paid for acquisitions, net of cash acquired, and $8.6 million in capital expenditures payments, partially offset by $440.4 million net maturities of marketable ~~securities, partially offset by purchases of marketable securities and capital expenditures.~~securities.

Financing Activities

Cash from financing activities generally includes borrowings under third-party financing arrangements, the issuance of long-term debt and funds from stock option exercises. Cash used in financing activities generally includes the repayment of amounts outstanding under third-party financing arrangements, the payment of dividends, the payment of long-term debt and ~~capital~~finance lease obligations and share-based compensation tax withholding.

Net cash used in financing activities in the first ~~nine months~~quarter of ~~2017~~2022 was primarily related to share repurchases of $29.0 million, dividend payments of ~~$19.5~~$11.8 million and share-based compensation tax withholding payments of $9.3 million.

Restricted Cash

We were required to maintain ~~$17.9~~$14.4 million of restricted cash as of ~~September 24, 2017~~March 27, 2022, and ~~$24.9~~$14.3 million as of December ~~25, 2016, the majority~~26, 2021, substantially all of which is set aside to collateralize workers’ compensation obligations.

Capital Expenditures

Capital expenditures totaled approximately ~~$67~~$10 million and ~~$17~~$7 million in the first ~~nine months~~quarter of ~~2017~~2022 and ~~2016,~~2021, respectively. The increase in capital expenditures in 2022 was primarily driven by improvements in the Company Headquarters which are intended to address growth in the number of employees and to enhance technologies that support our transition to hybrid work with employees working both from the office and remotely. The cash payments related to ~~the~~ capital expenditures totaled approximately ~~$48~~$9 million and ~~$22~~$6 million in the first ~~nine months~~quarters of ~~2017~~2022 and ~~2016,~~2021, respectively. The increase in both periods was primarily driven by the ongoing redesign and consolidation of space in our headquarters building and certain improvements at our printing and distribution facility in College Point, New York.

Third-Party Financing

In September 2019, we entered into a $250 million five-year unsecured credit facility (the “Credit Facility”). Certain of our domestic subsidiaries have guaranteed our obligations under the Credit Facility. As of ~~September 24, 2017, our current indebtedness consisted of~~March 27, 2022, there were no outstanding borrowings under the ~~repurchase option related to a sale-leaseback of a portion of our New York headquarters. See Note 6 of~~Credit Facility and the ~~Notes to~~Company was in compliance with the ~~Condensed Consolidated Financial Statements for information regarding our total debt and capital lease obligations. See Note 8 of~~financial covenants contained in the ~~Notes to the Condensed Consolidated Financial Statements for information regarding the fair value of our long-term debt.~~Credit Facility.

CRITICAL ACCOUNTING ESTIMATES AND POLICIES

Our critical accounting policies are detailed in our Annual Report on Form 10-K for the year ended December ~~25, 2016.~~26, 2021. Other than as described in Note 2 of the Notes to the Condensed Consolidated Financial Statements, as of ~~September 24, 2017,~~March 27, 2022, our critical accounting policies have not changed from December ~~25, 2016.~~26, 2021.

~~CONTRACTUAL OBLIGATIONS & OFF-BALANCE SHEET ARRANGEMENTS~~

Our contractual obligations and off-balance sheet arrangements are detailed in our Annual Report on Form 10-K for the year ended December 25, 2016. As of September 24, 2017, our contractual obligations and off-balance sheet arrangements have not changed materially from December 25, 2016.

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q, including the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” contains forward-looking statements ~~that relate~~within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Terms such as “aim,” “anticipate,” “believe,” “confidence,” “contemplate,” “continue,” “conviction,” “could,” “drive,” “estimate,” “expect,” “forecast,” “future,” “goal,” “guidance,” “intend,” “likely,” “may,” “might,” “objective,” “opportunity,” “optimistic,” “outlook,” “plan,” “position,” “potential,” “predict,” “project,” “seek,” “should,” “strategy,” “target,” “will,” “would” or similar statements or variations of such words and other similar expressions are intended to ~~future events or our future financial performance. We may also make written and oral~~identify forward-looking statements, in our Securities and Exchange Commission (“SEC”) filings and otherwise. We have tried, where possible, to identify such statements by using words such as “believe,” “expect,” “intend,” “estimate,” “anticipate,” “will,” “could,” “project,” “plan” and similar expressions in connection with any discussion of future operating or financial performance. Anyalthough not all forward-looking statements contain such terms. Forward-looking statements are ~~and will be~~ based upon our ~~then-current~~current expectations, estimates and assumptions ~~regarding future events~~ and involve risks and uncertainties that change over time; actual results could differ materially from those predicted by such forward-looking statements. These risks and uncertainties include, but are ~~applicable only as~~not limited to: significant competition in all aspects of our business; our ability to grow the size and profitability of our subscriber base; our dependence on metrics that are subject to inherent challenges in measurement; our ability to improve and scale our technical and data infrastructure and respond and adapt to changes in technology and consumer behavior; numerous factors that affect our advertising revenues, including economic conditions, market dynamics, evolving digital advertising trends and the evolution of our strategy; damage to our brand or reputation; the impact of the ~~dates~~Covid-19 pandemic; economic, geopolitical and other risks associated with the international scope of ~~such statements. We undertake no obligation~~our business and foreign operations; our ability to ~~update~~attract and maintain a talented and diverse workforce; the impact of labor negotiations and agreements; adverse results from litigation or ~~revise any forward-looking statements, whether~~governmental investigations; risks associated with the recent acquisition of The Athletic, including, among others, those related to our ability to realize the anticipated benefits of the acquisition, our ability to meet our publicly announced guidance about the impact of the acquisition, and the risks associated with its business and operations; the risks and challenges associated with investments we make in new and existing products and services, including The Athletic; risks associated with other acquisitions, divestitures, investments and other transactions; potential effects on our operating flexibility as a result of ~~new~~the nature of significant portions of our expenses; the effects of the size and volatility of our pension plan obligations; liabilities that may result from our participation in multiemployer pension plans; significant disruptions in our newsprint supply chain or newspaper printing and distribution channels or a significant increase in the costs to print and distribute our newspaper; security breaches and other network and information systems disruptions; our ability to comply with laws and regulations, including with respect to privacy, data protection and consumer marketing practices; payment processing risk; defects, delays or interruptions in the cloud-based hosting services we utilize; our ability to protect our intellectual property; claims of intellectual property infringement that we have been, and may be in the future, ~~events or otherwise.~~be subject to; the effects of restrictions on our operations as a result of the terms of our credit facility; our future access to capital markets and other financing options; and the concentration of control of our company due to our dual-class capital structure.

~~By their nature, forward-looking statements are subject to~~More information regarding these risks and uncertainties and other important factors that could cause actual results to differ materially from those ~~anticipated in any such statements. You should bear this in mind as you consider forward-looking statements. Factors that we think could, individually or~~ in the ~~aggregate, cause our actual results to differ materially from expected and historical results include those described~~forward-looking statements is set forth in “Item 1A — Risk Factors” in our Annual Report on Form 10-K for the year ended December ~~25, 2016,~~26, 2021, and “Item 2. Management’s Discussion and Analysis of Financial

Condition and Results of Operations” of this Form 10-Q. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as ~~well~~of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as ~~other risks and factors identified from time to time in our SEC filings.~~a result of new information, future events or otherwise.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Our Annual Report on Form 10-K for the year ended December ~~25, 2016,~~26, 2021, details our disclosures about market risk. As of ~~September 24, 2017,~~March 27, 2022, there were no material changes in our market risks from December ~~25, 2016.~~

26, 2021.

Item 4. Controls and Procedures

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

Our management, with the participation of our principal executive officer and our principal financial officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934) as of ~~September 24, 2017.~~March 27, 2022. Based upon such evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective to ensure that the information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There were no changes in our internal control over financial reporting during the quarter ended ~~September 24, 2017,~~March 27, 2022, other than as described in following paragraph, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

On February 1, 2022, we acquired The Athletic. We are currently planning the integration of The Athletic into our operations and internal control processes and, pursuant to the SEC’s guidance that an assessment of a recently acquired business may be omitted from the scope of an assessment in the year of acquisition, the scope of our assessment of the effectiveness of our internal controls over financial reporting at December 31, 2022, will not include The Athletic.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

We are involved in various legal actions incidental to our business that are now pending against us. These actions ~~are~~ generally ~~for amounts~~have damage claims that are greatly in excess of the payments, if any, that ~~may~~we would be required to ~~be made. See Note 14 of~~pay if we lost or settled the ~~Notes to the Consolidated Financial Statements for a description of certain matters, which is incorporated herein by reference.~~cases. Although the Company cannot predict the outcome of these matters, it is possible that an unfavorable outcome in one or more matters could be material to the Company’s consolidated results of operations or cash flows for an individual reporting period. However, based on currently available information, management does not believe that the ultimate resolution of these matters, individually or in the aggregate, is likely to have a material effect on the Company’s financial position.

Item 1A. Risk Factors

There have been no material changes to our risk factors as set forth in “Item 1A—Risk Factors” in our Annual Report on Form 10-K for the year ended December ~~25, 2016.~~26, 2021.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

~~(a) Unregistered Sales of Equity Securities~~

On July 28, 2017, we issued 24 shares of Class A Common Stock to holders of Class B Common Stock upon the conversion of such Class B shares into Class A shares. The conversion, which was in accordance with our Certificate of Incorporation, did not involve a public offering and was exempt from registration pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended.

~~On January 14, 2015,~~In February 2022, the Board of Directors approved ana $150.0 million Class A stock repurchase program. The authorization ~~of $101.1 million~~provides that Class A shares may be purchased from time to time as market conditions warrant, through open market purchases, privately negotiated transactions or other means, including Rule 10b5-1 trading plans. We expect to repurchase shares primarily to offset the impact of the Company’s Class A Common Stock. The Company did not repurchase any shares during the third quarter of 2017. As of September 24, 2017, the Company had repurchased 6,690,905 Class A shares under this authorization for a cost of $84.9 million (excluding commissions) and $16.2 million remained under this authorization. All purchases were made pursuant todilution from our ~~publicly announced share repurchase program. Our Board of Directors has authorized us to purchase shares from time to time,~~equity compensation program, but subject to market conditions and other ~~factors.~~factors, we may also make opportunistic repurchases to reduce share count. There is no expiration date with respect to this authorization. As of March 27, 2022, repurchases under this authorization totaled approximately $29.0 million (excluding commissions) and approximately $121.0 million remained.


Period	Total numbers of shares of Class A Common Stock purchased	Average price paid per share of Class A Common Stock		Total number of shares of Class A Common Stock purchased as part of publicly announced plans or programs	Maximum number (or approximate dollar value) of shares of Class A Common Stock that may yet be purchased under the plans or programs
January 31, 2022 - February 27, 2022 (1)	600,000	$	41.77	600,000	$	124,938,000
February 28, 2022 - March 27, 2022	92,800	$	42.70	92,800	$	120,979,000
Total for the first quarter of 2022	692,800	$	41.89	692,800	$	120,979,000
(1) Reflects repurchases under the authorization approved on February 1, 2022.

Item 6. Exhibits


Exhibit No.

~~Exhibit No.~~2.1*

~~10.1~~	~~Amendment No. 4 to~~Agreement and Plan of Merger, dated as of January 6, 2022 , by and among The Athletic Media Company, The New York Times ~~Companies Supplemental Retirement~~Company, Subscription Holding Co. and ~~Investment Plan, amended August 11, 2017,~~Shareholder Representative Services LLC (filed as an Exhibit to the Company’s Form 8-K dated January 7, 2022, and ~~effective January 1, 2015.~~incorporated by reference herein).

1231.1		~~Ratio of Earnings to Fixed Charges.~~

~~31.1~~	Rule 13a-14(a)/15d-14(a) Certification.

31.2		Rule 13a-14(a)/15d-14(a) Certification.

32.1		Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2		Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

~~32.2~~101.INS		~~Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of~~XBRL Instance Document - the ~~Sarbanes-Oxley Act of 2002.~~ instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

~~101.INS~~101.SCH		~~XBRL Instance Document.~~

~~101.SCH~~	Inline XBRL Taxonomy Extension Schema Document.

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

Certain identified information has been excluded from this exhibit (indicated by an asterisk above) because it is both (i) not material and (ii) is the type of information that the registrant treats as private or confidential. Information that was omitted has been noted in the exhibit with a placeholder identified by the mark “[**]”.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


				THE NEW YORK TIMES COMPANY
				(Registrant)

Date:			May 4, 2022	~~THE NEW YORK TIMES COMPANY~~/s/ Roland A. Caputo
				~~(Registrant)~~

~~Date:~~	~~November 1, 2017~~	~~/s/ JAMES M. FOLLO~~
		~~James M. Follo~~ Roland A. Caputo Executive Vice President and Chief Financial Officer (Principal Financial Officer)



~~NEW YORK~~New York						13-1102020
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


	September 24, 2017		December 25, 2016			March 27, 2022		December 26, 2021
	(Unaudited)					(Unaudited)
Assets					Assets
Current assets					Current assets
Cash and cash equivalents	$	244,667	$	100,692	Cash and cash equivalents	$	169,171	$	319,973
Short-term marketable securities	336,442		449,535		Short-term marketable securities	52,788		341,075
Accounts receivable (net of allowances of $13,838 in 2017 and $16,815 in 2016)	142,323		197,355
Accounts receivable (net of allowances of $12,234 in 2022 and $12,374 in 2021)					Accounts receivable (net of allowances of $12,234 in 2022 and $12,374 in 2021)	197,492		232,908
Prepaid expenses	17,869		15,948		Prepaid expenses	41,766		33,199
Other current assets	26,462		32,648		Other current assets	25,798		25,553
Total current assets	767,763		796,178		Total current assets	487,015		952,708
Other assets					Other assets
Long-term marketable securities	241,782		187,299		Long-term marketable securities	252,815		413,380
Investments in joint ventures	20,472		15,614
Property, plant and equipment (less accumulated depreciation and amortization of $945,416 in 2017 and $903,736 in 2016)	618,835		596,743
Property, plant and equipment (less accumulated depreciation and amortization of $790,884 in 2022 and $777,637 in 2021)					Property, plant and equipment (less accumulated depreciation and amortization of $790,884 in 2022 and $777,637 in 2021)	570,803		574,952
Goodwill	143,171		134,517		Goodwill	414,200		166,360
Intangible assets, net					Intangible assets, net	343,351		14,246
Deferred income taxes	290,473		301,342		Deferred income taxes	110,628		95,800
Miscellaneous assets	156,462		153,702		Miscellaneous assets	350,454		346,662
Total assets	$	2,238,958	$	2,185,395	Total assets	$	2,529,266	$	2,564,108


	September 24, 2017			December 25, 2016				March 27, 2022		December 26, 2021
	(Unaudited)							(Unaudited)
Liabilities and stockholders’ equity							Liabilities and stockholders’ equity
Current liabilities							Current liabilities
Accounts payable	$	116,724		$	104,463		Accounts payable	$	146,152	$	127,073
Accrued payroll and other related liabilities	90,651			96,463			Accrued payroll and other related liabilities	111,568		166,464
Unexpired subscriptions	76,886			66,686
Unexpired subscriptions revenue							Unexpired subscriptions revenue	154,360		119,296

Accrued expenses and other	134,411			131,125			Accrued expenses and other	180,933		146,319
Total current liabilities	418,672			398,737			Total current liabilities	593,013		559,152
Other liabilities							Other liabilities
Long-term debt and capital lease obligations	249,375			246,978

Pension benefits obligation	518,395			558,790			Pension benefits obligation	291,035		295,104
Postretirement benefits obligation	55,107			57,999			Postretirement benefits obligation	35,413		36,086
Other	78,735			78,647			Other	114,729		133,041
Total other liabilities	901,612			942,414			Total other liabilities	441,177		464,231
Stockholders’ equity							Stockholders’ equity
Common stock of $.10 par value:							Common stock of $.10 par value:
Class A – authorized: 300,000,000 shares; issued: 2017 – 170,220,136; 2016 – 169,206,879 (including treasury shares: 2017 – 8,870,801; 2016 – 8,870,801)	17,022			16,921
Class B – convertible – authorized and issued shares: 2017 – 810,933; 2016 – 816,632 (including treasury shares: 2017 – none; 2016 – none)	81			82
Class A – authorized: 300,000,000 shares; issued: 2022 – 176,263,169; 2021 – 175,971,801 (including treasury shares: 2022 – 9,563,601; 2021 – 8,870,801)							Class A – authorized: 300,000,000 shares; issued: 2022 – 176,263,169; 2021 – 175,971,801 (including treasury shares: 2022 – 9,563,601; 2021 – 8,870,801)	17,626		17,597
Class B – convertible – authorized and issued shares: 2022 – 781,724; 2021 – 781,724							Class B – convertible – authorized and issued shares: 2022 – 781,724; 2021 – 781,724	78		78
Additional paid-in capital	159,830			149,928			Additional paid-in capital	227,815		230,115
Retained earnings	1,373,478			1,331,911			Retained earnings	1,834,734		1,845,343
Common stock held in treasury, at cost	(171,211		)	(171,211		)	Common stock held in treasury, at cost	(200,245)		(171,211)
Accumulated other comprehensive loss, net of income taxes:							Accumulated other comprehensive loss, net of income taxes:
Foreign currency translation adjustments	5,571			(1,822		)	Foreign currency translation adjustments	2,146		3,754
Funded status of benefit plans	(465,440		)	(477,994		)	Funded status of benefit plans	(382,014)		(385,680)
Net unrealized loss on available-for-sale securities	(653		)	—			Net unrealized loss on available-for-sale securities	(7,069)		(1,276)
Total accumulated other comprehensive loss, net of income taxes	(460,522		)	(479,816		)	Total accumulated other comprehensive loss, net of income taxes	(386,937)		(383,202)
Total New York Times Company stockholders’ equity	918,678			847,815			Total New York Times Company stockholders’ equity	1,493,071		1,538,720
Noncontrolling interest	(4		)	(3,571		)	Noncontrolling interest	2,005		2,005
Total stockholders’ equity	918,674			844,244			Total stockholders’ equity	1,495,076		1,540,725
Total liabilities and stockholders’ equity	$	2,238,958		$	2,185,395		Total liabilities and stockholders’ equity	$	2,529,266	$	2,564,108


	For the Quarters Ended
	March 27, 2022		March 28, 2021
	(13 weeks)
Net income	$	4,725	$	41,109
Other comprehensive (loss)/income, before tax:
Loss on foreign currency translation adjustments	(2,209)		(2,702)
Pension and postretirement benefits obligation	5,010		6,406
Net unrealized loss on available-for-sale securities	(7,916)		(1,067)
Other comprehensive (loss)/income, before tax	(5,115)		2,637
Income tax (benefit)/expense	(1,380)		709
Other comprehensive (loss)/income, net of tax	(3,735)		1,928


Comprehensive income attributable to The New York Times Company common stockholders	$	990	$	43,037


	For the Nine Months Ended							For the Three Months Ended
	September 24, 2017			September 25, 2016				March 27, 2022		March 28, 2021
	(39 weeks)							(13 weeks)
Cash flows from operating activities							Cash flows from operating activities
Net income/(loss)	$	64,676		$	(13,795	)
Net income							Net income	$	4,725	$	41,109
Adjustments to reconcile net income to net cash provided by operating activities:							Adjustments to reconcile net income to net cash provided by operating activities:
Restructuring charge	—			14,804
Multiemployer pension plan charges	—			11,701

Depreciation and amortization	46,961			46,003			Depreciation and amortization	18,685		14,717

Amortization of right of use asset							Amortization of right of use asset	5,400		2,166
Stock-based compensation expense	10,927			8,561			Stock-based compensation expense	7,054		4,185
Undistributed (gain)/loss of joint ventures	(31,464		)	41,845
Long-term retirement benefit obligations	(21,897		)	(22,366		)
Uncertain tax positions	139			53
Other-net	2,609			8,257
Changes in operating assets and liabilities:
Accounts receivable-net	55,032			54,591

Change in long-term retirement benefit obligations							Change in long-term retirement benefit obligations	(4,555)		(4,004)

Fair market value adjustment on life insurance products							Fair market value adjustment on life insurance products	514		208
Other – net							Other – net	(12,198)		(1,277)
Changes in operating assets and liabilities, net of business acquisitions:							Changes in operating assets and liabilities, net of business acquisitions:
Accounts receivable – net							Accounts receivable – net	40,930		38,522
Other assets	(1,761		)	(21,926		)	Other assets	(6,646)		(3,768)
Accounts payable, accrued payroll and other liabilities	12,473			(45,546		)	Accounts payable, accrued payroll and other liabilities	(75,571)		(68,428)
Unexpired subscriptions	10,200			3,461			Unexpired subscriptions	7,003		9,499
Net cash provided by operating activities	147,895			85,643			Net cash provided by operating activities	(14,659)		32,929
Cash flows from investing activities							Cash flows from investing activities
Purchases of marketable securities	(398,246		)	(514,809		)	Purchases of marketable securities	(2,492)		(177,543)
Maturities of marketable securities	454,022			522,655			Maturities of marketable securities	442,895		155,782
Cash distribution from corporate-owned life insurance	—			38,000
Business acquisitions	—			(15,410		)
Purchase of investments – net of proceeds	(422		)	(1,840		)
Change in restricted cash	7,014			3,816

Business acquisitions, net of cash acquired							Business acquisitions, net of cash acquired	(515,299)		—
Sales of investments – net							Sales of investments – net	(958)		(70)
Capital expenditures	(47,831		)	(21,820		)	Capital expenditures	(8,580)		(6,394)
Other-net	1,070			(380		)	Other-net	425		2,017
Net cash provided by investing activities	15,607			10,212
Net cash used in investing activities							Net cash used in investing activities	(84,009)		(26,208)
Cash flows from financing activities							Cash flows from financing activities
Long-term obligations:							Long-term obligations:
Repayment of debt and capital lease obligations	(414		)	(460		)

Dividends paid	(19,483		)	(19,416		)	Dividends paid	(11,839)		(10,072)
Payment of contingent consideration							Payment of contingent consideration	(1,724)		—
Capital shares:							Capital shares:
Stock issuances	4,142			273
Proceeds from stock option exercises							Proceeds from stock option exercises	3		2,447
Repurchases	—			(15,684		)	Repurchases	(29,034)		—
Share-based compensation tax withholding	(3,984		)	(9,572		)	Share-based compensation tax withholding	(9,328)		(10,483)
Net cash used in financing activities	(19,739		)	(44,859		)	Net cash used in financing activities	(51,922)		(18,108)
Net increase in cash and cash equivalents	143,763			50,996
Net decrease in cash, cash equivalents and restricted cash							Net decrease in cash, cash equivalents and restricted cash	(150,590)		(11,387)
Effect of exchange rate changes on cash	212			166			Effect of exchange rate changes on cash	(164)		(341)
Cash and cash equivalents at the beginning of the period	100,692			105,776
Cash and cash equivalents at the end of the period	$	244,667		$	156,938
Cash, cash equivalents and restricted cash at the beginning of the period							Cash, cash equivalents and restricted cash at the beginning of the period	334,306		301,964
Cash, cash equivalents and restricted cash at the end of the period							Cash, cash equivalents and restricted cash at the end of the period	$	183,552	$	290,236



Class A Common Stock	~~161,394,059~~166,699,568	shares
Class B Common Stock	~~808,763~~781,724	shares



PART I		Financial Information	1
Item	1	Financial Statements	1
		Condensed Consolidated Balance Sheets as of March 27, 2022 (unaudited) and December 26, 2021	1
		Condensed Consolidated Statements of Operations (unaudited) for the quarters ended March 27, 2022 and March 28, 2021	3
		Condensed Consolidated Statements of Comprehensive Income (unaudited) for the quarters ended March 27, 2022 and March 28, 2021	4
		Condensed Consolidated Statements of Changes In Stockholders’ Equity (unaudited) for the quarters ended March 27, 2022 and March 28, 2021	5
		Condensed Consolidated Statements of Cash Flows (unaudited) for the quarters ended March 27, 2022 and March 28, 2021	6
		Notes to the Condensed Consolidated Financial Statements	7
Item	2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item	3	Quantitative and Qualitative Disclosures About Market Risk	39
Item	4	Controls and Procedures	40

PART II		Other Information	41
Item	1	Legal Proceedings	41
Item	1A	Risk Factors	41
Item	2	Unregistered Sales of Equity Securities and Use of Proceeds	41
Item	6	Exhibits	42



	ITEM NO.
PART I		Financial Information	1
Item	1	Financial Statements	1
		Condensed Consolidated Balance Sheets as September 24, 2017 (unaudited) and December 25, 2016	1
		Condensed Consolidated Statements of Operations (unaudited) for the quarters and nine months ended September 24, 2017 and September 25, 2016	3
		Condensed Consolidated Statements of Comprehensive Income (unaudited) for the quarters and nine months ended September 24, 2017 and September 25, 2016	5
		Condensed Consolidated Statements of Cash Flows (unaudited) for the nine months ended September 24, 2017 and September 25, 2016	6
		Notes to the Condensed Consolidated Financial Statements	7
Item	2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item	3	Quantitative and Qualitative Disclosures about Market Risk	30
Item	4	Controls and Procedures	31

PART II		Other Information	32
Item	1	Legal Proceedings	32
Item	1A	Risk Factors	32
Item	2	Unregistered Sales of Equity Securities and Use of Proceeds	32
Item	6	Exhibits	33


	Capital Stock - Class A and Class B Common		Additional Paid-in Capital		Retained Earnings		Common Stock Held in Treasury, at Cost		Accumulated Other Comprehensive Loss, Net of Income Taxes		Total New York Times Company Stockholders’ Equity		Non- controlling Interest		Total Stock- holders’ Equity

Balance, December 27, 2020	$	17,609	$	216,714	$	1,672,586	$	(171,211)	$	(410,181)	$	1,325,517	$	2,594	$	1,328,111

Net income	—		—		41,109		—		—		41,109		—		41,109
Dividends	—		—		(11,835)		—		—		(11,835)		—		(11,835)
Other comprehensive income	—		—		—		—		1,928		1,928		—		1,928
Issuance of shares:
Stock options – 323,360 Class A shares	33		2,414		—		—		—		2,447		—		2,447
Restricted stock units vested – 142,707 Class A shares	14		(4,564)		—		—		—		(4,550)		—		(4,550)
Performance-based awards – 142,253 Class A shares	14		(5,947)		—		—		—		(5,933)		—		(5,933)
Stock-based compensation	—		4,185		—		—		—		4,185		—		4,185

Balance, March 28, 2021	$	17,670	$	212,802	$	1,701,860	$	(171,211)	$	(408,253)	$	1,352,868	$	2,594	$	1,355,462

Balance, December 26, 2021	$	17,675	$	230,115	$	1,845,343	$	(171,211)	$	(383,202)	$	1,538,720	$	2,005	$	1,540,725

Net income	—		—		4,725		—		—		4,725		—		4,725
Dividends	—		—		(15,334)		—		—		(15,334)		—		(15,334)
Other comprehensive loss	—		—		—		—		(3,735)		(3,735)		—		(3,735)
Issuance of shares:
Stock options – 400 Class A shares	—		3		—		—		—		3		—		3
Restricted stock units vested – 127,450 Class A shares	13		(3,784)		—		—		—		(3,771)		—		(3,771)
Performance-based awards – 163,518 Class A shares	16		(5,573)		—		—		—		(5,557)		—		(5,557)
Share Repurchases - 692,800 Class A shares	—		—		—		(29,034)		—		(29,034)		—		(29,034)
Stock-based compensation	—		7,054		—		—		—		7,054		—		7,054


Balance, March 27, 2022	$	17,704	$	227,815	$	1,834,734	$	(200,245)	$	(386,937)	$	1,493,071	$	2,005	$	1,495,076



(In thousands)	Total Company
Balance as of December 25, 2016	$	134,517
Measurement period adjustment ⁽¹⁾	(198		)
Foreign currency translation	8,852
Balance as of September 24, 2017	$	143,171



(In thousands)	September 24, 2017								December 25, 2016 ⁽³⁾
(In thousands)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:
Short-term AFS securities ⁽¹⁾
U.S Treasury securities	$	73,175	$	—	$	73,175	$	—	$	—	$	—	$	—	$	—
Corporate debt securities	156,639		—		156,639		—		—		—		—		—
U.S. governmental agency securities	53,754		—		53,754		—		—		—		—		—
Certificates of deposit	20,403		—		20,403		—		—		—		—		—
Commercial paper	32,471		—		32,471		—		—		—		—		—
Total short-term AFS securities	$	336,442	$	—	$	336,442	$	—	$	—	$	—	$	—	$	—
Long-term AFS securities ⁽¹⁾
U.S. governmental agency securities	$	96,817	$	—	$	96,817	$	—	$	—	$	—	$	—	$	—
Corporate debt securities	97,345		—		97,345		—		—		—		—		—
U.S Treasury securities	47,620		—		47,620		—		—		—		—		—
Total long-term AFS securities	$	241,782	$	—	$	241,782	$	—	$	—	$	—	$	—	$	—
Liabilities:
Deferred compensation ⁽²⁾	$	28,354	$	28,354	$	—	$	—	$	31,006	$	31,006	$	—	$	—