THE NEW YORK TIMES COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

For the Nine Months Ended
September 24, 2017
September 25, 2016
(39 weeks)
Cash flows from operating activities
Net income/(loss) $ 64,676
$ (13,795 )
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
Stock-based compensation expense 10,927
8,561
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
Other assets (1,761 ) (21,926 )
Accounts payable, accrued payroll and other liabilities 12,473
(45,546 )
Unexpired subscriptions 10,200
3,461
Net cash provided by operating activities 147,895
85,643
Cash flows from investing activities
Purchases of marketable securities (398,246 ) (514,809 )
Maturities of marketable securities 454,022
522,655
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
Capital expenditures (47,831 ) (21,820 )
Other-net 1,070
(380 )
Net cash provided by investing activities 15,607
10,212
Cash flows from financing activities
Long-term obligations:
Repayment of debt and capital lease obligations (414 ) (460 )
Dividends paid (19,483 ) (19,416 )
Capital shares:
Stock issuances 4,142
273
Repurchases —
(15,684 )
Share-based compensation tax withholding (3,984 ) (9,572 )
Net cash used in financing activities (19,739 ) (44,859 )
Net increase in cash and cash equivalents 143,763
50,996
Effect of exchange rate changes on cash 212
166
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


	For the Quarters Ended
	March 31, 2023		March 27, 2022

Cash flows from operating activities
Net income	$	22,321	$	4,725
Adjustments to reconcile net income to net cash provided by operating activities:


Depreciation and amortization	20,840		18,685

Amortization of right of use asset	2,490		5,400
Stock-based compensation expense	10,900		7,054



Change in long-term retirement benefit obligations	(6,954)		(4,555)


Other – net	1,330		(11,684)
Changes in operating assets and liabilities, net of business acquisitions:
Accounts receivable – net	51,556		40,930
Other assets	(2,295)		(6,646)
Accounts payable, accrued payroll and other liabilities	(57,103)		(75,571)
Unexpired subscriptions	7,645		7,003
Net cash provided by/(used in) operating activities	50,730		(14,659)
Cash flows from investing activities
Purchases of marketable securities	—		(2,492)
Maturities of marketable securities	28,160		442,895

Business acquisitions, net of cash acquired	—		(515,299)

Capital expenditures	(5,985)		(8,580)
Other – net	—		(533)
Net cash provided by (used in) investing activities	22,175		(84,009)
Cash flows from financing activities
Long-term obligations:

Dividends paid	(15,069)		(11,839)
Payment of contingent consideration	(1,724)		(1,724)
Capital shares:
Proceeds from stock option exercises	—		3
Repurchases	(30,720)		(29,034)
Share-based compensation tax withholding	(11,017)		(9,328)
Net cash used in financing activities	(58,530)		(51,922)
Net increase/(decrease) in cash, cash equivalents and restricted cash	14,375		(150,590)
Effect of exchange rate changes on cash	(262)		(164)
Cash, cash equivalents and restricted cash at the beginning of the period	235,173		334,306
Cash, cash equivalents and restricted cash at the end of the period	$	249,286	$	183,552

See Notes to Condensed Consolidated Financial Statements.

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 31, 2023, and December ~~25, 2016,~~31, 2022, and the results of operations, changes in stockholders’ equity and cash flows of the Company for the periods ended ~~September 24, 2017~~March 31, 2023, and ~~September 25, 2016.~~March 27, 2022. 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 United States 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.~~31, 2022. Due to the seasonal nature of our business, operating results for the interim periods are not necessarily indicative of a full year’s operations. First quarter 2022 includes an additional day compared with first quarter 2023 as a result of the recent change in the Company’s fiscal year to the calendar year.

The ~~fiscal periods included herein comprise 13 weeks for the third quarter.~~Company has two reportable segments: The New York Times Group (“NYTG”) and The Athletic.

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~~As of ~~September 24, 2017,~~March 31, 2023, our significant accounting policies, which are detailed in our Annual Report on Form 10-K for the year ended December ~~25, 2016,~~31, 2022, 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.

~~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.changed.

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.

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 Cooking, Games, 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 generated 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 generated primarily 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. 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. NYTG has revenue from all categories discussed above. The Athletic has revenue from direct-sold display advertising, podcast, email and video advertisements and open-market programmatic advertising. There is no print advertising revenue generated from The Athletic.

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”), television and film, retail commerce, our live events business and our student subscription sponsorship program.

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Subscription, advertising and other revenues were as follows:


	For the Quarters Ended
(In thousands)	March 31, 2023		As % of total		March 27, 2022		As % of total
Subscription	$	397,542	70.9	%	$	371,979	69.2	%
Advertising	106,241		18.8	%	116,270		21.5	%
Other (1)	56,956		10.3	%	49,176		9.3	%
Total	$	560,739	100.0	%	$	537,425	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 for the first quarters of 2023 and 2022, respectively.

The following table summarizes digital and print subscription revenues, which are components of subscription revenues above, for the quarters ended March 31, 2023, and March 27, 2022:


	For the Quarters Ended
(In thousands)	March 31, 2023		As % of total		March 27, 2022		As % of total
Digital-only subscription revenues (1)	$	258,768	65.1	%	$	226,763	61.0	%
Print subscription revenues:
Domestic home delivery subscription revenues (2)	125,876		31.7	%	131,391		35.3	%
Single-copy, NYT International and Other subscription revenues (3)	12,898		3.2	%	13,825		3.7	%
Subtotal print subscription revenues	138,774		34.9	%	145,216		39.0	%
Total subscription revenues	$	397,542	100.0	%	$	371,979	100.0	%
(1) Includes revenue from digital-only bundled and standalone subscriptions to our news product, as well as The Athletic and our Cooking, Games, Audm and Wirecutter products.
(2) Domestic home delivery subscriptions include access to our digital news product, as well as The Athletic and our Cooking, Games and Wirecutter products.
(3) NYT International is the international edition of our print newspaper.

The following table summarizes digital and print advertising revenues, which are components of advertising revenues above, for the quarters ended March 31, 2023, and March 27, 2022:


	For the Quarters Ended
(In thousands)	March 31, 2023		As % of total		March 27, 2022		As % of total
Advertising revenues:
Digital	$	61,271	57.7	%	$	67,014	57.6	%
Print	44,970		42.3	%	49,256		42.4	%
Total advertising	$	106,241	100.0	%	$	116,270	100.0	%

Performance Obligations

We have remaining performance obligations related to digital archive and other licensing and certain advertising contracts. As of March 31, 2023, the aggregate amount of the transaction price allocated to the remaining performance obligations for contracts with a duration greater than one year was approximately $211 million. The Company will recognize this revenue as performance obligations are satisfied. We expect that approximately $56 million, $68 million and $87 million will be recognized in the remainder of 2023, 2024 and thereafter through 2028, respectively.

Contract Assets

As of March 31, 2023, and December 31, 2022, the Company had $3.8 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.

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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 $8.8 million and $11.4 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 millionpre-tax 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 31, 2023, and December 31, 2022, respectively.

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 31, 2023, and December 31, 2022:


	March 31, 2023
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value

Short-term AFS securities
Corporate debt securities	$	75,861	$	—	$	(2,178)	$	73,683
U.S. Treasury securities	32,844		—		(615)		32,229
U.S. governmental agency securities	27,805		—		(679)		27,126
Municipal securities	6,393		—		(77)		6,316
Total short-term AFS securities	$	142,903	$	—	$	(3,549)	$	139,354
Long-term AFS securities
Corporate debt securities	$	79,998	$	—	$	(4,010)	$	75,988
U.S. Treasury securities	23,981		—		(1,211)		22,770
U.S. governmental agency securities	999		—		(54)		945
Total long-term AFS securities	$	104,978	$	—	$	(5,275)	$	99,703


	September 24, 2017										December 31, 2022
(In thousands)	Amortized Cost		Gross unrealized gains		Gross unrealized losses			Fair Value		(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value

Short-term AFS securities										Short-term AFS securities
U.S Treasury securities	$	73,220	$	—	$	(45	)	$	73,175
Corporate debt securities	156,683		35		(79		)	156,639		Corporate debt securities	$	52,315	$	—	$	(1,286)	$	51,029
U.S. Treasury securities										U.S. Treasury securities	45,096		—		(963)		44,133
U.S. governmental agency securities	53,842		1		(89		)	53,754		U.S. governmental agency securities	22,806		—		(722)		22,084
Certificates of deposit	20,403		—		—			20,403
Commercial paper	32,471		—		—			32,471
Municipal securities										Municipal securities	8,903		—		(177)		8,726
Total short-term AFS securities	$	336,619	$	36	$	(213	)	$	336,442	Total short-term AFS securities	$	129,120	$	—	$	(3,148)	$	125,972
Long-term AFS securities										Long-term AFS securities
Corporate debt securities										Corporate debt securities	115,207		$	—	$	(6,377)	$	108,830
U.S. Treasury securities										U.S. Treasury securities	25,990		—		(1,576)		24,414
U.S. governmental agency securities	$	97,431	$	2	$	(616	)	96,817		U.S. governmental agency securities	5,999		—		(326)		5,673
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	Total long-term AFS securities	$	147,196	$	—	$	(8,279)	$	138,917

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 31, 2023, and December 31, 2022, 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 31, 2023
	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
Corporate debt securities	$	4,034	$	(11)	$	69,649	$	(2,167)	$	73,683	$	(2,178)
U.S. Treasury securities	—		—		32,229		(615)		32,229		(615)
U.S. governmental agency securities	—		—		27,126		(679)		27,126		(679)
Municipal securities	—		—		6,316		(77)		6,316		(77)
Total short-term AFS securities	$	4,034	$	(11)	$	135,320	$	(3,538)	$	139,354	$	(3,549)
Long-term AFS securities
Corporate debt securities	$	555	$	(14)	$	75,433	$	(3,996)	$	75,988	$	(4,010)
U.S. Treasury securities	286		(7)		22,484		(1,204)		22,770		(1,211)
U.S. governmental agency securities	—		—		945		(54)		945		(54)
Total long-term AFS securities	$	841	$	(21)	$	98,862	$	(5,254)	$	99,703	$	(5,275)

September 24, 2017
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 $ 73,175
$ (45 ) $ —
$ —
$ 73,175
$ (45 )
Corporate debt securities 101,648
(77 ) 2,500
(2 ) 104,148
(79 )
U.S. governmental agency securities 42,490
(53 ) 8,964
(36 ) 51,454
(89 )
Total short-term AFS securities $ 217,313
$ (175 ) $ 11,464
$ (38 ) $ 228,777
$ (213 )
Long-term AFS securities
U.S. governmental agency securities $ 47,620
$ (312 ) $ —
(304 ) $ 47,620
$ (616 )
Corporate debt securities 66,428
(196 ) 8,918
(63 ) 75,346
(259 )
U.S Treasury securities 53,142
(52 ) 39,697
—
92,839
(52 )
Total long-term AFS securities $ 167,190
$ (560 ) $ 48,615
$ (367 ) $ 215,805
$ (927 )


	December 31, 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
Corporate debt securities	$	3,799	$	(11)	$	47,230	$	(1,275)	$	51,029	$	(1,286)
U.S. Treasury securities	—		—		44,133		(963)		44,133		(963)
U.S. governmental agency securities	—		—		22,084		(722)		22,084		(722)
Municipal securities	—		—		8,726		(177)		8,726		(177)

Total short-term AFS securities	$	3,799	$	(11)	$	122,173	$	(3,137)	$	125,972	$	(3,148)
Long-term AFS securities
Corporate debt securities	$	2,004	$	(57)	$	106,826	$	(6,320)	$	108,830	$	(6,377)
U.S. Treasury securities	282		(9)		24,132		(1,567)		24,414		(1,576)
U.S. governmental agency securities	—		—		5,673		(326)		5,673		(326)

Total long-term AFS securities	$	2,286	$	(66)	$	136,631	$	(8,213)	$	138,917	$	(8,279)

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 31, 2023, and December 31, 2022, 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 31, 2023, and December 31, 2022, we have recognized no ~~OTTI loss.~~losses or allowance for credit losses related to AFS securities.

~~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 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 marketable securities.

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

As of March 31, 2023, our short-term and long-term marketable securities had remaining maturities of less than one month to 12 months and 13 months to 24 months, respectively. See Note 8 for more information regarding the fair value of our marketable securities.

NOTE 4.5. GOODWILL AND INTANGIBLES

~~In 2016, the Company acquired two digital marketing agencies, HelloSociety, LLC~~Goodwill 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.

The Company allocated the purchase prices for these acquisitions based on the final valuation of assets acquired and liabilities assumed, resulting in allocations to goodwill, intangibles, property, plant and equipment and other miscellaneous assets.

The aggregate carrying amount of intangible assets of $8.6 million related to these acquisitions has been included in “Miscellaneous Assets” in our Condensed Consolidated Balance Sheets. The estimated useful lives for these assets range from 3 to 7 years and are amortized on a straight-line basis.Intangibles

The changes in the carrying amount of goodwill as of ~~September 24, 2017,~~March 31, 2023, 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)	NYTG		The Athletic		Total
Balance as of December 26, 2021	$	166,360	$	—	$	166,360
Foreign currency translation	(3,674)		—		(3,674)
Acquisition of The Athletic Media Company	—		249,792		249,792
Measurement period adjustments	—		1,568		1,568
Balance as of December 31, 2022	162,686		251,360		414,046
Foreign currency translation	1,088		—		1,088
Balance as of March 31, 2023	$	163,774	$	251,360	$	415,134

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,~~March 31, 2023, the gross book value and accumulated amortization of the finite-lived intangible assets were as follows:


(In thousands)	Gross book value		Accumulated amortization		Net book value		Remaining Weighted-Average Useful Life (Years)
Trademark	$	162,618	$	(10,936)	$	151,682	19.0
Existing subscriber base	136,500		(14,625)		121,875		11.0
Developed technology	38,401		(9,878)		28,523		4.0
Content archive	5,751		(2,826)		2,925		2.6
Total finite-lived intangibles	$	343,270	$	(38,265)	$	305,005	14.2

Amortization expense for intangible assets included in Depreciation and amortization in our ~~investments in joint ventures totaled $20.5~~Condensed Consolidated Statements of Operations was $7.3 million and ~~we had equity ownership interests in~~$5.0 million for the first quarters of 2023 and 2022, respectively. The estimated aggregate amortization expense for the remainder of 2023 and each of the following ~~entities:~~fiscal years ending December 31 is presented below:


(In thousands)
Remainder of 2023	$	21,985
2024	27,487
2025	27,213
2026	26,960
2027	20,171
Thereafter	181,189
Total amortization expense	$	305,005



~~Company~~	~~Approximate %~~The aggregate carrying amount of intangible assets of $310.0 million, which includes an indefinite-lived intangible of $5.0 million, is included in Intangible assets, net in our Condensed Consolidated Balance Sheet as of March 31, 2023. ~~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)

~~NOTE 7. OTHER~~

~~Advertising Expenses~~

Advertising expenses incurred to promote our brand, subscription products and marketing services were $26.6 million and $22.3 million in the third quarters of 2017 and 2016, respectively, and $86.0 million and $63.6 million in the first nine months of 2017 and 2016, respectively.

~~Capitalized Computer Software Costs~~

Amortization of capitalized computer software costs included in “Depreciation and amortization” 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.

~~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 million and $23.2 million included in “Accrued expenses and other” in our Condensed Consolidated Balance Sheets as of September 24, 2017, and December 25, 2016, respectively. We anticipate most of the expenditures will be recognized within the next twelve months.

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.

~~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 31, 2023, and December ~~25, 2016:~~31, 2022:


(In thousands)	March 31, 2023								December 31, 2022
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:
Short-term AFS securities (1)
Corporate debt securities	$	73,683	$	—	$	73,683	$	—	$	51,029	$	—	$	51,029	$	—
U.S. Treasury securities	32,229		—		32,229		—		44,133		—		44,133		—

U.S. governmental agency securities	27,126		—		27,126		—		22,084		—		22,084		—
Municipal securities	6,316		—		6,316		—		8,726		—		8,726		—

Total short-term AFS securities	$	139,354	$	—	$	139,354	$	—	$	125,972	$	—	$	125,972	$	—
Long-term AFS securities (1)
Corporate debt securities	$	75,988	$	—	$	75,988	$	—	$	108,830	$	—	$	108,830	$	—
U.S. Treasury securities	22,770		—		22,770		—		24,414		—		24,414		—
U.S. governmental agency securities	945		—		945		—		5,673		—		5,673		—

Total long-term AFS securities	$	99,703	$	—	$	99,703	$	—	$	138,917	$	—	$	138,917	$	—
Liabilities:
Deferred compensation (2)(3)	$	12,513	$	12,513	$	—	$	—	$	14,635	$	14,635	$	—	$	—
Contingent consideration (4)	$	4,392	$	—	$	—	$	4,392	$	5,324	$	—	$	—	$	5,324

(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~~a frozen plan that 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 $49.8 million as of ~~September 24, 2017~~March 31, 2023, and ~~approximately $240~~$48.4 million as of December ~~25, 2016.~~31, 2022. The fair value of these assets is measured using the net asset value per share (or its equivalent) and has not been classified in the fair value hierarchy.

(4) The remaining contingent consideration balances (as discussed below) 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 ~~long-term debt was approximately $281 million~~Condensed Consolidated Balance Sheets.

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 ~~$298 million~~certain liabilities of Serial Productions, LLC 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 31, 2023, and ~~average maturities (Level 2).~~March 27, 2022:


	Quarters Ended
(In thousands)	March 31, 2023		March 27, 2022
Balance at the beginning of the period	$	5,324	$	7,450

Payments	(1,724)		(1,724)
Fair value adjustments (1)	792		132
Contingent consideration at the end of the period	$	4,392	$	5,858
(1) Fair value adjustments are included in General and administrative costs in our Condensed Consolidated Statements of Operations.

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 (income)/cost were as follows:


	For the Quarters Ended
	March 31, 2023						March 27, 2022
(In thousands)	Qualified Plans		Non- Qualified Plans		All Plans		Qualified Plans		Non- Qualified Plans		All Plans
Service cost	$	1,417	$	—	$	1,417	$	2,882	$	—	$	2,882
Interest cost	14,198		2,296		16,494		8,837		1,284		10,121
Expected return on plan assets	(19,122)		—		(19,122)		(13,807)		—		(13,807)
Amortization of actuarial loss	663		890		1,553		3,266		1,643		4,909
Amortization of prior service credit	(486)		—		(486)		(486)		—		(486)

Net periodic pension (income)/cost	$	(3,330)	$	3,186	$	(144)	$	692	$	2,927	$	3,619

During the first quarters of 2023 and 2022, we made pension contributions of $2.0 million and $2.3 million, respectively, to the APP. We expect to make contractual contributions in ~~two joint Company and Guild-sponsored defined benefit pension plans covering employees who are members~~2023 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 were as follows:


	For the Quarters Ended
(In thousands)	March 31, 2023		March 27, 2022
Service cost	$	8	$	12
Interest cost	375		183
Amortization of actuarial loss	486		823
Amortization of prior service credit	—		(236)
Net periodic postretirement benefit cost	$	869	$	782

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 )

NOTE 10. INCOME TAXES

The Company had income tax expense of ~~$23.4~~$9.4 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~~$1.1 million in the first ~~nine months~~quarters of ~~2016.~~2023 and 2022, respectively. The Company’s effective tax rates were 29.7% and 19.1% for the first quarters of 2023 and 2022, respectively. The increase in income tax expense was primarily due to higher income ~~from continuing operations~~ in the ~~third~~first quarter ~~and first nine months~~ of ~~2017.~~

2023. The ~~Company’s effective tax rates from continuing operations were 39.1% and 38.5% for~~increase in the third quarter and first nine months of 2017, respectively. The Company’s effective tax rates from continuing operations were 30.0% and 39.4% for the third quarter and first nine months of 2016, respectively. The higher effective tax rate ~~in the third quarter of 2017~~ was primarily due to ~~higher income~~the effect of a decline in the stock price on stock-based awards that settled in the first quarter of 2023.

Beginning in 2022, the Tax Cuts and Jobs Act of 2017 eliminated 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. In 2022, our cash from ~~continuing~~ operations ~~compared with~~decreased by approximately $60 million and our net deferred tax assets increased by a similar amount as a result of this legislation. In 2023, we expect a negative impact on our cash from operations of approximately $45 million. The actual impact on fiscal 2023 cash from operations will depend on the ~~same period prior year.~~amount of research and development costs we incur, on whether Congress modifies or repeals this provision, and on whether new guidance and interpretive rules are issued by the U.S. Treasury, among other factors.

On August 16, 2022, the President signed the Inflation Reduction Act of 2022 (the “IRA”) into law. We do not expect the tax-related provisions of the IRA, which are effective beginning in 2023, to have a material impact on our consolidated financial statements.

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 was approximately 0.4 million in each of the first quarters of 2023 and 2022, and resulted primarily from the dilutive effect of our Stock-Based Awards.

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~~1.1 million and 60.2 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 or first nine months of 2017~~2023 and ~~2016. The number of~~2022, respectively, because they were anti-dilutive. There were no anti-dilutive 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.~~2023 and 2022.

~~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:~~Share Repurchases

(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. The Company did not~~share repurchase ~~any shares during~~program that replaced the ~~third quarter~~previous program, which was approved in 2015. In February 2023, in addition to the remaining 2022 authorization, the Board of ~~2017. As of September 24, 2017, the Company had repurchased 6,690,905~~Directors approved a $250 million 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~~The authorizations provide that shares of Directors has authorized us to purchase shares under this authorization from time to time, subject to 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:~~Class A

(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)

Common Stock 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 to offset the impact of dilution from our equity compensation program and to return capital to our stockholders. There is no expiration date with respect to these authorizations.

As of March 31, 2023, repurchases under these authorizations totaled approximately $135.7 million (excluding commissions) and approximately $264.3 million remained.

Accumulated Other Comprehensive Income

The following table summarizes the changes in AOCI by component as of March 31, 2023:


(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 31, 2022	$	(510)	$	(348,947)	$	(8,390)	$	(357,847)
Other comprehensive income before reclassifications, before tax	848		—		2,602		3,450
Amounts reclassified from accumulated other comprehensive loss, before tax	—		1,553		—		1,553
Income tax expense	194		411		689		1,294
Net current-period other comprehensive income, net of tax	654		1,142		1,913		3,709

Balance as of March 31, 2023	$	144	$	(347,805)	$	(6,477)	$	(354,138)

The following table summarizes the reclassifications from AOCI for the ~~nine months~~quarter ended ~~September 24, 2017:~~March 31, 2023:

(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 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)

(486)

Other components of net periodic benefit (income)/costs

Amortization of actuarial loss (1)

2,039

Other components of net periodic benefit (income)/costs

Total reclassification, before tax (2)

1,553

Income tax expense

411

Income tax expense

Total reclassification, net of tax

1,142

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

(2)

There were no reclassifications relating to noncontrolling interest for the ~~nine months~~quarter ended ~~September 24, 2017.~~March 31, 2023.

Stock-based Compensation Expense

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


	For the Quarters Ended
(In thousands)	March 31, 2023		March 27, 2022
Cost of revenue	$	2,230	$	1,589
Sales and marketing	420		365
Product development	3,884		1,751
General and administrative	4,366		3,349
Total stock-based compensation expense	$	10,900	$	7,054

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 13. SEGMENT INFORMATION

~~We have one reportable~~The Company identifies a business as an operating segment ~~that includes~~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.

Since the acquisition of The ~~New York Times, NYTimes.com and related businesses. Therefore, all required segment information can be found~~Athletic in the first quarter of 2022, the Company has had two reportable segments: NYTG and 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 (loss) by segment in assessing performance and allocating resources. The Company includes in its presentation revenues and adjusted operating costs to arrive at adjusted operating profit (loss) 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. Asset information by segment is not a measure of performance used by the Company’s Chief Operating Decision Maker. Accordingly, we have not disclosed asset information by segment.

Subscription revenue from our multi-product digital subscription package (or “bundle”) is allocated to NYTG and The Athletic. We allocate revenue first to our digital news product based on its list price and then the remaining bundle revenue is allocated to the other products in the bundle, including The Athletic, based on their relative list price. The direct variable expenses associated with the bundle, which include credit card fees, third party fees and sales taxes, are allocated to NYTG and The Athletic based on a historical actual percentage of these costs to bundle revenue.

The results of The Athletic have been included in our Condensed Consolidated Financial ~~Statements.~~Statements beginning February 1, 2022, the date of the acquisition. As a result, first quarter 2022 results include The Athletic for approximately two months while first quarter 2023 results include the Athletic for the full quarter.

~~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 31, 2023			March 27, 2022			% Change
Revenues
NYTG	$	532,092		$	525,268		1.3	%
The Athletic	28,647			12,157			*
Total revenues	$	560,739		$	537,425		4.3	%
Adjusted operating costs
NYTG	$	470,337		$	457,543		2.8	%
The Athletic	36,427			18,979			91.9	%
Total adjusted operating costs	$	506,764		$	476,522		6.3	%
Adjusted operating profit (loss)
NYTG	$	61,755		$	67,725		(8.8)	%
The Athletic	(7,780)			(6,822)			14.0	%
Total adjusted operating profit	$	53,975		$	60,903		(11.4)	%
AOP margin % - NYTG	11.6		%	12.9		%	(130) bps
* 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 31, 2023		March 27, 2022		% Change
NYTG
Subscription	$	373,466	$	361,602	3.3	%
Advertising	102,090		114,490		(10.8)	%
Other	56,536		49,176		15.0	%
Total	$	532,092	$	525,268	1.3	%
The Athletic
Subscription	$	24,076	$	10,377	*
Advertising	4,151		1,780		*
Other	420		—		*
Total	$	28,647	$	12,157	*
The New York Times Company
Subscription	$	397,542	$	371,979	6.9	%
Advertising	106,241		116,270		(8.6)	%
Other	56,956		49,176		15.8	%
Total	$	560,739	$	537,425	4.3	%
* 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 31, 2023		March 27, 2022		% Change
NYTG
Cost of revenue (excluding depreciation and amortization)	$	284,931	$	269,476	5.7	%
Sales and marketing	60,121		74,460		(19.3)	%
Product development	51,877		45,179		14.8	%
Adjusted general and administrative (1)	73,408		68,428		7.3	%
Total	$	470,337	$	457,543	2.8	%
The Athletic
Cost of revenue (excluding depreciation and amortization)	$	21,921	$	11,889	84.4	%
Sales and marketing	6,913		3,128		*
Product development	5,185		2,254		*
Adjusted general and administrative (2)	2,408		1,708		41.0	%
Total	$	36,427	$	18,979	91.9	%
The New York Times Company
Cost of revenue (excluding depreciation and amortization)	$	306,852	$	281,365	9.1	%
Sales and marketing	67,034		77,588		(13.6)	%
Product development	57,062		47,433		20.3	%
Adjusted general and administrative	75,816		70,136		8.1	%
Total	$	506,764	$	476,522	6.3	%
(1) Excludes severance of $3.3 million and multiemployer pension withdrawal costs of $1.5 million for the first quarter of 2023, respectively. Excludes multiemployer pension withdrawal costs of $1.2 million first quarter 2022.
(2) Excludes $0.5 million of severance for the first quarter of 2023.
* 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 31, 2023		March 27, 2022		% Change
Operating costs	$	532,839	$	496,429	7.3	%
Less:
Depreciation and amortization	20,840		18,686		11.5	%
Severance	3,780		—		*
Multiemployer pension plan withdrawal costs	1,455		1,221		19.2	%
Adjusted operating costs	$	506,764	$	476,522	6.3	%
* 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 31, 2023		March 27, 2022		% Change
Operating profit	$	27,900	$	6,284	*
Add:
Depreciation and amortization	20,840		18,686		11.5	%
Severance	3,780		—		*
Multiemployer pension plan withdrawal costs	1,455		1,221		19.2	%
Special items:
Acquisition-related costs	—		34,712		*


Adjusted operating profit	$	53,975	$	60,903	(11.4)	%
* 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 entered into agreements with Massachusetts Mutual Life Insurance Company (“MassMutual”) relating to The New York Times Companies Pension Plan and The Retirement Annuity Plan for Craft Employees of The New York Times Company (collectively, the “Pension Plans”). Under the agreements, the Company will purchase from MassMutual group annuity contracts with respect to the Pension Plans and transfer to MassMutual the future benefit obligations and annuity administration for approximately 3,800 retirees (or their beneficiaries). The pension benefit obligations and annuity administration for these transferred~~participants 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 million. The purchase of the group annuity contracts is being funded through existing assets of the Pension Plans’ respective trusts. As a result of this arrangement, the Company expects to recognize a pension settlement charge of approximately $95 million~~before tax in the fourth quarter 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.~~

RESULTS OF OPERATIONS

The following table presents our consolidated financial results:


	For the Quarters Ended
(In thousands)	March 31, 2023		March 27, 2022		% Change
Revenues
Subscription	$	397,542	$	371,979	6.9	%
Advertising	106,241		116,270		(8.6)	%
Other	56,956		49,176		15.8	%
Total revenues	560,739		537,425		4.3	%
Operating costs
Cost of revenue (excluding depreciation and amortization)	306,852		281,365		9.1	%
Sales and marketing	67,034		77,588		(13.6)	%
Product development	57,062		47,433		20.3	%
General and administrative	81,051		71,357		13.6	%
Depreciation and amortization	20,840		18,686		11.5	%
Total operating costs	532,839		496,429		7.3	%
Acquisition-related costs	—		34,712		*




Operating profit	27,900		6,284		*
Other components of net periodic benefit (income)/costs	(685)		1,522		*

Interest income and other, net	3,173		1,075		*
Income before income taxes	31,758		5,837		*
Income tax expense	9,437		1,112		*




Net income	$	22,321	$	4,725	*

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~~Cooking, Games, 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.

Subscription revenues increased ~~13.6% in the third quarter and 12.9%~~6.9% in the first ~~nine months~~quarter of ~~2017~~2023 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-only products, the large number of subscribers whose introductory promotional subscriptions have graduated to higher prices, subscribers who have upgraded to our digital subscription ~~products, as well as~~bundle package and higher revenues from The Athletic stand-alone subscriptions due to the ~~2017~~impact from the additional month of The Athletic in 2023. The increase in ~~home-delivery prices for The New York Times newspaper, which more than~~digital subscription revenue was partially offset by a ~~decline~~decrease in print ~~copies sold. Revenues from our digital-only news subscriptions (including e-readers and replica editions) were $82.1 million~~subscription revenue. This decrease was primarily attributable to declines in ~~the third quarter~~domestic home delivery revenue of ~~2017 and $234.2 million~~4.2% in the first ~~nine months~~quarter of ~~2017,~~2023 due to a decrease in the number of print subscriptions driven by secular trends, partially offset by an increase in domestic home delivery prices. There is no print subscription revenue generated from The Athletic.

The Company ended the first quarter of ~~46.2%~~2023 with approximately 9.73 million paid subscribers across its print and ~~44.3% from~~digital products. Of the ~~third~~9.73 million, approximately 9.02 million were paid digital-only subscribers.

There was a net increase of 190,000 digital-only subscribers compared with the end of the fourth quarter of 2022. Compared with the end of the first quarter of 2022, there was a net increase of 790,000 digital-only subscribers.

Print domestic home delivery subscribers totaled approximately 710,000 at the end of the first quarter of 2023, a net decrease of 20,000 subscribers compared with the end of the fourth quarter of 2022 and a net decrease of 70,000 subscribers compared with the end of the first ~~nine months~~quarter of ~~2016, respectively.~~2022.

The following table summarizes ~~digital-only~~digital and print subscription revenues for the ~~third~~first quarters of 2023 and ~~first nine months of 2017 and 2016:~~2022:


	For the Quarters Ended
(In thousands)	March 31, 2023		March 27, 2022		% Change
Digital-only subscription revenues (1)	$	258,768	$	226,763	14.1	%
Print subscription revenues:
Domestic home delivery subscription revenues (2)	125,876		131,391		(4.2)	%
Single-copy, NYT International and Other subscription revenues (3)	12,898		13,825		(6.7)	%
Subtotal print subscription revenues	138,774		145,216		(4.4)	%
Total subscription revenues	$	397,542	$	371,979	6.9	%
(1) Includes revenue from digital-only bundled and standalone subscriptions to our news product, as well as The Athletic and our Cooking, Games, Audm and Wirecutter products.
(2) Domestic home delivery subscriptions include access to our digital news product, as well as The Athletic and our Cooking, Games 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 product as well as The Athletic and our Cooking, Games and Wirecutter products. We also offer standalone digital subscriptions to our digital news product, as well as to The Athletic, and our Cooking, Games, 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 ARPU. 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~~digital and print subscribers as of the end of the five most recent fiscal quarters:


	For the Quarters Ended
(In thousands)	March 31, 2023	December 31, 2022	September 25, 2022	June 26, 2022	March 27, 2022
Digital-only subscribers(1)	9,020	8,830	8,590	8,410	8,230
Print subscribers(2)	710	730	740	760	780
Total subscribers(3)	9,730	9,550	9,330	9,170	9,010
(1) Subscribers with paid digital-only subscriptions to one or more of our news product, The Athletic, or our Cooking, Games and Wirecutter products. Subscribers with a paid domestic home-delivery print subscription to The New York Times are excluded. The number of digital-only subscribers includes group corporate and group education subscriptions (which collectively represented approximately 5% of paid digital-only subscribers as of the first quarter of 2023). The number of group subscribers 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 our digital news product, as well as The Athletic and our Cooking, Games 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.
(3) The sum of individual metrics may not always equal total amounts indicated due to rounding.

The following table summarizes supplementary subscriber metrics as of the end of the five most recent fiscal quarters:


	For the Quarters Ended
(In thousands except for ARPU)	March 31, 2023		December 31, 2022		September 25, 2022		June 26, 2022		March 27, 2022
Digital-only subscriber ARPU(1)	$	9.04	$	8.93	$	8.87	$	8.83	$	9.13
Digital-only bundle and multiproduct subscribers(2)	3,020		2,500		2,130		1,980		1,835
Digital-only subscribers with News(3)	6,540		6,370		6,210		6,140		6,101
Digital-only subscribers with The Athletic(4)	3,270		2,680		2,290		1,690		1,216
(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 the number of days in the quarter divided by 28 to reflect a 28-day billing cycle) in the measurement period by the average number of digital subscribers during the period.
(2) Subscribers with a digital bundle or paid digital-only subscriptions that include access to two or more of the Company’s products, including through separate standalone subscriptions.
(3) Subscribers with a paid digital-only subscription that includes the ability to access the Company’s digital news product.
(4) Subscribers with a paid digital-only subscription that includes the ability to access The Athletic. In June 2022, we provided all bundle subscribers with the ability to access The Athletic.

The following table summarizes digital and print subscriptions as of the end of the ~~third quarters of 2017 and 2016:~~

five most recent fiscal quarters:

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
(In thousands)	March 31, 2023	December 31, 2022	September 25, 2022	June 26, 2022	March 27, 2022
Digital-only subscriptions (1)	10,380	10,260	10,020	9,810	9,579
Print subscriptions (2)	700	720	730	750	770
Total subscriptions (3)	11,080	10,980	10,750	10,560	10,349
(1) Paid digital-only subscriptions to our news product, as well as The Athletic and our Cooking, Games, Audm and Wirecutter products. Standalone subscriptions to these products are counted separately and bundle subscriptions are counted as one subscription. The number of paid digital-only subscriptions includes group corporate and group education subscriptions (which collectively represented approximately 4% of paid digital-only subscriptions as of the first quarter of 2023). The number of group subscriptions is derived using the value of the relevant contract and a discounted subscription rate.
(2) Paid domestic home-delivery print subscriptions to The New York Times, which also include access to our digital news product, as well as The Athletic and our Cooking, Games 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.
(3) The sum of individual metrics may not always equal total amounts indicated due to rounding.

We believe that the significant growth over the last several years in subscribers to our products demonstrates the success of our “subscription-first” strategy and the willingness of our readers to pay for high-quality journalism. 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. Revenue from these subscribers is primarily included in print domestic home delivery and print other revenues.

(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 ads, 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. 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. NYTG has revenue from all categories discussed above. The Athletic has revenue from direct-sold display advertising, podcast, video and email advertisements and open-market programmatic advertising. 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; and~~freestanding inserts. There is no print advertising revenue generated from ~~branded bags~~The Athletic.

The following table summarizes digital and print advertising revenues for the first quarters 2023 and 2022:


	For the Quarters Ended
(In thousands)	March 31, 2023		March 27, 2022		% Change
Advertising revenues:
Digital	$	61,271	$	67,014	(8.6)	%
Print	44,970		49,256		(8.7)	%
Total advertising	$	106,241	$	116,270	(8.6)	%

Digital advertising revenues, which represented 57.7% of total advertising revenues in ~~which~~the first quarter of 2023, decreased $5.7 million, or 8.6%, to $61.3 million compared with $67.0 million in the same prior-year period. The decrease was primarily a result of lower revenues from our ~~newspapers are delivered.~~

~~Advertising~~podcasts and creative services, partially offset by the addition of digital advertising revenue from The Athletic. Core digital advertising revenue decreased $3.0 million due to a decrease in podcast advertising revenues, ~~(print and digital)~~partially offset 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 )%
an increase in direct-sold display advertising. Direct-sold display impressions increased 72%, while the average rate decreased 29%. Other digital advertising revenue decreased $2.7 million, primarily due to a 55.7% decrease in creative services fees, partially offset by 5.2% increase in open-market programmatic advertising revenue. Programmatic impressions increased by 24%, while the average rate decreased 24%. We believe the macroeconomic environment adversely impacted digital advertising spend.

Print advertising revenues, which represented ~~56.7%~~42.3% 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,~~2023, decreased $4.3 million, or 8.7%, to $45.0 million compared with ~~$80.5~~$49.3 million ~~and $264.6 million, respectively,~~ in the same prior-year ~~periods.~~period. The decrease ~~in both periods~~ was ~~driven by a decline in display advertising,~~ primarily in the ~~luxury, travel, real estate,~~ media, advocacy, finance and technology ~~and telecommunications categories.~~

Digital advertising revenues, which represented 43.3% of total advertising revenues for 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 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,categories, partially offset by ~~a continued decrease in traditional website display advertising.~~

~~Classified and Other advertising revenues increased 9.8%~~growth in the ~~third quarter of 2017~~luxury category. Print advertising revenue was impacted by secular trends and ~~18.1%~~ in addition, we believe the ~~first nine months of 2017, compared with the same prior-year periods, due to an increase in digital creative services fees.~~macroeconomic environment adversely impacted print advertising spend.

Other Revenues

Other revenues primarily consist of revenues from ~~news services/syndication,~~licensing, Wirecutter affiliate referrals, commercial printing, the leasing of floors in the Company Headquarters, television and film, retail commerce, our live events business and our student subscription sponsorship program. Digital other revenues, which consist primarily of Wirecutter affiliate referral revenue, digital ~~archives, building~~licensing revenue and our student subscription sponsorship program, totaled $26.1 million and $25.8 million for the first quarters of 2023 and 2022, respectively. Building rental ~~income, our NYT Live business, e-commerce~~revenue from the leasing of floors in the Company Headquarters totaled $7.3 million and ~~affiliate referrals.~~$7.1 million in the first quarters of 2023 and 2022, respectively.

Other revenues increased ~~17.7% in the third quarter of 2017 and 17.1%~~15.8% in the first ~~nine months~~quarter of ~~2017,~~2023 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 decreasedperiod, primarily as a result of ~~lower outside printing expenses~~higher revenues from television and film, licensing, and commercial printing.

Operating Costs

Operating costs were as follows:


	For the Quarters Ended
(In thousands)	March 31, 2023		March 27, 2022		% Change
Operating costs:
Cost of revenue (excluding depreciation and amortization) (1)	$	306,852	$	281,365	9.1	%
Sales and marketing	67,034		77,588		(13.6)	%
Product development (1)	57,062		47,433		20.3	%
General and administrative (1)	81,051		71,357		13.6	%
Depreciation and amortization	20,840		18,686		11.5	%
Total operating costs	$	532,839	$	496,429	7.3	%
(1) Technology costs, which include product development costs and certain components of cost of revenue and general and administrative costs as described below, increased 19.6% to $105.2 million compared with $97.9 million in the same prior-year period.

Cost of Revenue (excluding depreciation and amortization)

Cost of revenue includes all costs related to ~~coverage of the 2016 presidential election that did not recur in 2017. Raw materials expense decreased due to lower newsprint~~content creation, subscriber and ~~magazine consumption. Wage~~advertiser servicing, 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~~print production 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.~~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.

~~Selling, general and administrative costs in the third quarter~~Cost 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~~revenue increased in the first ~~nine months~~quarter of ~~2017~~2023 by $25.5 million, or 9.1%, compared with the ~~first nine months~~same prior-year period. The increase is largely due to higher journalism costs of ~~2016,~~$20.4 million, higher digital content delivery costs of $3.9 million, higher subscriber servicing costs of $2.5 million, higher print production and distribution costs of $1.2 million, partially offset by lower advertising servicing costs of $2.5 million. The increase in journalism costs was largely due to growth in the number of employees who work in our newsrooms and the impact from the additional month of The Athletic costs in 2023. The increase in digital content delivery costs was primarily due to an increase in ~~compensation~~the number of employees and higher cloud-related costs. The increase in subscriber servicing costs ~~($25.6 million), promotion~~was largely due to an increase in the number of employees, as well as the impact from the additional month of The Athletic costs in 2023. The increase in print production and distribution costs was primarily due to an increase in newsprint pricing and increased commercial printing activity. Advertising servicing costs decreased primarily due to a decrease in the number of employees. Technology costs in Cost of revenue, which include costs related to content delivery and subscriber technology, increased 18.6% to $29.0 million compared with $24.5 million in the same prior-year period due to the growth in the number of employees and increases in cloud-related costs.

Sales and Marketing

Sales and marketing includes costs related to the Company’s subscription and brand marketing efforts as well as advertising sales costs.

Sales and marketing costs ~~($22.2 million)~~in the first quarter of 2023 decreased by $10.6 million, or 13.6%, compared with the same prior-year period. The decrease is primarily due to lower media expenses at NYTG, partially offset by the impact of the additional month of The Athletic costs in 2023 and ~~severance~~higher sales and marketing costs ~~($4.7 million). Compensation~~at The Athletic.

Media expenses, a component of sales and marketing costs ~~increased primarily~~that represents the cost to promote our subscription business, decreased31.4%to $31.8 million in the first quarter of 2023 from $46.3 million in the first quarter of 2022 largely as a result of anlower brand marketing expenses at NYTG, partially offset by the inclusion of The Athletic.

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. All product development costs are technology costs.

Product development costs in the first quarter of 2023 increased by $9.6 million, or 20.3%, compared with the same prior-year period. The increase ~~in variable compensation expenses and increased hiring to support digital growth initiatives. Promotion and marketing costs increased~~was largely due to growth in the number of digital product development employees in connection with digital subscription strategic initiatives and the impact from the additional month of The Athletic costs in 2023.

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.

General and administrative costs in the first quarter of 2023 increased ~~spending to promote our brand and subscription business. Severance costs increased~~by $9.7 million, or 13.6%, compared with the same prior-year period. The increase is primarily due to ~~a workforce reduction announced~~the growth in the ~~second quarter~~number of ~~2017~~employees as well as higher severance expense, primarily ~~affecting~~in the general and administrative functions, and higher building operations and maintenance costs in our ~~newsroom.~~Company Headquarters. Technology costs in general and administrative, which include costs related to enterprise technology and information security, increased 19.5% to $19.1 million compared with $16.0 million in the same prior-year period.

Depreciation and Amortization

Depreciation and amortization costs ~~increased~~ in the ~~third~~first quarter ~~and the first nine months~~ of ~~2017~~2023 increased $2.2 million, or 11.5%, compared with the same prior-year ~~period,~~period. The increase is due to the impact from the additional month of The Athletic costs in 2023.

Segment Information

Since the acquisition of The Athletic in the first quarter of 2022, we have had two reportable segments: NYTG 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.

Subscription revenue from our digital subscription package (or “bundle”) is allocated to NYTG and The Athletic. We allocate revenue first to our digital news product based on its list price and then the remaining bundle revenue is allocated to the other products in the bundle, including The Athletic, based on their relative list price. The direct variable expenses associated with the bundle, which include credit card fees, third party fees and sales taxes, are allocated to NYTG and The Athletic based on a historical actual percentage of these costs to bundle revenue.

The results of The Athletic have been included in our Condensed Consolidated Financial Statements beginning February 1, 2022, the date of the acquisition. As a result, first quarter 2022 results include The Athletic for approximately two months while first quarter 2023 results include the Athletic for the full quarter.


	For the Quarters Ended
(In thousands)	March 31, 2023			March 27, 2022			% Change
Revenues
NYTG	$	532,092		$	525,268		1.3	%
The Athletic	28,647			12,157			*
Total revenues	$	560,739		$	537,425		4.3	%
Adjusted operating costs
NYTG	$	470,337		$	457,543		2.8	%
The Athletic	36,427			18,979			91.9	%
Total adjusted operating costs	$	506,764		$	476,522		6.3	%
Adjusted operating profit
NYTG	$	61,755		$	67,725		(8.8)	%
The Athletic	(7,780)			(6,822)			14.0	%
Total adjusted operating profit	$	53,975		$	60,903		(11.4)	%
Adjusted operating profit margin % - NYTG	11.6		%	12.9		%	(130) bps
* Represents a change equal to or in excess of 100% or not meaningful.


Revenues detail by segment
	For the Quarters Ended
(In thousands)	March 31, 2023		March 27, 2022		% Change
NYTG
Subscription	$	373,466	$	361,602	3.3	%
Advertising	102,090		114,490		(10.8)	%
Other	56,536		49,176		15.0	%
Total	$	532,092	$	525,268	1.3	%
The Athletic
Subscription	$	24,076	$	10,377	*
Advertising	4,151		1,780		*
Other	420		—		*
Total	$	28,647	$	12,157	*
NYTG
Subscription	$	397,542	$	371,979	6.9	%
Advertising	106,241		116,270		(8.6)	%
Other	56,956		49,176		15.8	%
Total	$	560,739	$	537,425	4.3	%
* 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 31, 2023		March 27, 2022		% Change
NYTG
Cost of revenue (excluding depreciation and amortization)	$	284,931	$	269,476	5.7	%
Sales and marketing	60,121		74,460		(19.3)	%
Product development	51,877		45,179		14.8	%
Adjusted general and administrative (1)	73,408		68,428		7.3	%
Total	$	470,337	$	457,543	2.8	%
The Athletic
Cost of revenue (excluding depreciation and amortization)	$	21,921	$	11,889	84.4	%
Sales and marketing	6,913		3,128		*
Product development	5,185		2,254		*
Adjusted general and administrative (2)	2,408		1,708		41.0	%
Total	$	36,427	$	18,979	91.9	%
The New York Times Company
Cost of revenue (excluding depreciation and amortization)	$	306,852	$	281,365	9.1	%
Sales and marketing	67,034		77,588		(13.6)	%
Product development	57,062		47,433		20.3	%
Adjusted general and administrative (1)	75,816		70,136		8.1	%
Total	$	506,764	$	476,522	6.3	%
(1) Excludes severance of $3.3 million for the first quarter of 2023 and multiemployer pension withdrawal costs of $1.5 million and $1.2 million for the first quarters of 2023 and 2022, respectively.
(2) Excludes $0.5 million of severance for the first quarter of 2023.
* Represents a change equal to or in excess of 100% or not meaningful.

The New York Times Group

NYTG revenues grew 1.3% in the first quarter of 2023 to $532.1 million from $525.3 million in the first quarter of 2022. Subscription revenues increased 3.3% to $373.5 million from $361.6 million in the first quarter of 2022 due to growth in subscription revenues from digital-only products, partially offset by decreases in print subscription revenues. Advertising revenues decreased 10.8% to $102.1 million from $114.5 million in the first quarter of 2022 due to lower digital advertising revenues, primarily a result of lower revenues from our podcasts and creative services and lower print advertising revenues, primarily in the media, advocacy, finance and technology categories, partially offset by growth in the luxury category. Print advertising revenue was impacted by secular trends. In addition, we believe the macroeconomic environment adversely impacted both digital and print advertising spend.

NYTG adjusted operating costs grew 2.8% in the first quarter of 2023 to $470.3 million from $457.5 million in the first quarter of 2022. The increase in costs was primarily related to growth in the numbers of employees who work in the newsroom as well as higher product development and general and administrative costs, partially offset by lower sales and marketing costs.

NYTG adjusted operating profit decreased 8.8% in the first quarter of 2023 to $61.8 million from $67.7 million in the first quarter of 2022 primarily as a result of higher adjusted operating costs and lower advertising revenues, partially offset by higher digital subscription and other revenues.

The Athletic

The Athletic revenues grew in the first quarter of 2023 to $28.6 million from $12.2 million in the first quarter of 2022. Subscription revenues increased to $24.1 million from $10.4 million in the first quarter of 2022, primarily due to growth in digital-only subscribers with The Athletic and the impact from the additional month of revenues in 2023. Advertising revenues increased to $4.2 million from $1.8 million in the first quarter of 2022, primarily due to the ~~Company’s acquisition~~launch of display advertising in the third quarter of 2022.

The ~~Wirecutter.~~Athletic adjusted operating costs increased $17.4 million in the first quarter of 2023 to $36.4 million from $19.0 million in the first quarter of 2022, largely due to the impact from the additional month of costs in 2023 and higher cost of revenue, which is primarily due to higher journalism costs related to growth in the number of employees who work in the newsroom.

The Athletic adjusted operating loss increased 14.0% to $7.8 million in the first quarter of 2023 from $6.8 million in the first quarter of 2022, primarily as a result of higher adjusted operating costs, which were not fully offset by higher revenues. Both costs and revenues were impacted by the additional month of results in 2023.

NON-OPERATING ITEMS

Other ~~Items~~Components of Net Periodic Benefit (Income)/Costs

See Note 9 of the Notes to the Condensed Consolidated Financial Statements for information regarding other components of net periodic benefit (income)/costs.

Interest Income and other, net

See Note 7 of the Notes to the Condensed Consolidated Financial Statements for ~~additional information regarding other items, including costs related to the redesign of our headquarters building.~~

~~NON-OPERATING ITEMS~~

~~Joint Ventures~~

~~See Note 5 of the Notes to the Condensed Consolidated Financial Statements for information regarding our joint venture investments.~~

~~Interest Expense, Net~~

~~See Note 6 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)~~share);

•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;

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

•free cash flow (defined as net cash provided by operating activities less capital expenditures).

There were no special items in the first quarter of 2023.

The special items in ~~2017~~2022 consisted of:

•a ~~$30.1~~$34.7 million gain ($16.1 million 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) related to the ongoing redesign and consolidation 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) in connection with the streamlining of the Company’s international print operations (primarily consisting of severance costs) in the third and second quarters, respectively;

~~an $11.7 million~~pre-tax charge ($~~7.0~~25.4 million or $0.15 per share 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~~tax) in the first quarter related to the ~~announced closure~~acquisition of ~~a paper mill operated by Madison.~~The Athletic. Acquisition-related costs primarily include expenses paid in connection with the acceleration of The Athletic stock options, and legal, accounting, financial advisory and integration planning expenses.

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 isand adjusted operating profit margin are useful in evaluating the ongoing performance of ~~our~~the Company’s businesses as ~~it excludes~~they exclude 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~~provides 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~~Excluded from 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 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 and GAAP operating results, ~~provides~~provide increased transparency and a better understanding of the underlying trends in ~~our~~the Company’s operating business performance.

The Company considers free cash flow, which is defined as net cash provided by operating activities less capital expenditures, to provide useful information to management and investors about the amount of cash that is available to be used to strengthen the Company’s balance sheet and for strategic opportunities including, among others, investing in the Company’s business, strategic acquisitions, dividend payouts and repurchasing stock. See “Liquidity and Capital Resources — Free Cash Flow” below for more information and a reconciliation of free cash flow to net cash provided by operating activities.

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 excluding severance, non-operating retirement costs and special items (or adjusted diluted earnings per share)
	For the Quarters Ended
	March 31, 2023		March 27, 2022		% Change
Diluted earnings per share	$	0.13	$	0.03	*
Add:
Amortization of acquired intangible assets	0.04		0.03		33.3	%
Severance	0.02		—		*
Non-operating retirement costs:
Multiemployer pension plan withdrawal costs	0.01		0.01		—
Other components of net periodic benefit (income)/costs	—		0.01		*
Special items:
Acquisition-related costs	—		0.21		*





Income tax expense of adjustments	(0.02)		(0.07)		(71.4)	%
Adjusted diluted earnings per share(1)	$	0.19	$	0.21	(9.5)	%

(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
(In thousands)	March 31, 2023			March 27, 2022			% Change
Operating profit	$	27,900		$	6,284		*
Add:
Depreciation and amortization	20,840			18,686			11.5	%
Severance	3,780			—			*
Multiemployer pension plan withdrawal costs	1,455			1,221			19.2	%
Special items:
Acquisition-related costs	—			34,712			*


Adjusted operating profit	$	53,975		$	60,903		(11.4)	%
Divided by:
Revenue	560,739			537,425			4.3	%
Operating profit margin	5.0		%	1.2		%	380 bps
Adjusted operating profit margin	9.6		%	11.3		%	(170) 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
(In thousands)	March 31, 2023		March 27, 2022		% Change
Operating costs	$	532,839	$	496,429	7.3	%
Less:
Depreciation and amortization	20,840		18,686		11.5	%
Severance	3,780		—		*
Multiemployer pension plan withdrawal costs	1,455		1,221		19.2	%
Adjusted operating costs	$	506,764	$	476,522	6.3	%
* 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 31, 2023, 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$474.4 million. Our cash and ~~investment~~marketable securities balances ~~have increased since the end of 2016,~~between December 31, 2022, and March 31, 2023, decreased primarily due to ~~higher cash from operating activities~~incentive compensation payments, share repurchases, dividend payments and share-based compensation withholding tax payments, partially offset by higher net income and higher cash ~~capital expenditures of $47.8 million.~~collections from accounts receivable.

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 2023, the Board of Directors approved an increase in the quarterly dividend to $0.11 per share, which was paid in April 2023. 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 2023, the Board of Directors approved a $250.0 million Class A share repurchase program in addition to the amount remaining under the existing $150 million authorization approved in February 2022. The ~~Company~~authorizations provide that shares of Class A Common Stock 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 to offset the impact of dilution from our equity compensation program and ~~UPM-Kymmene Corporation (“UPM”)~~to return capital to our stockholders. There is no expiration date with respect to these authorizations. As of March 31, 2023, and May 5, 2023, repurchases under these authorizations totaled approximately $135.7 million (excluding commissions), ~~a Finnish paper manufacturing company, are partners through subsidiary companies~~respectively, and approximately $264.3 million remained.

Beginning in ~~Madison, which previously operated a supercalendered paper mill in Maine. The Company’s 40% ownership~~2022, the Tax Cuts and Jobs Act 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~~2017 eliminated the option to deduct research and development expenditures immediately in the ~~consolidated subsidiary~~year incurred and instead requires taxpayers to capitalize and amortize such expenditures over five years. In 2022, our cash from operations decreased by approximately $60 million and our net deferred tax assets increased by a similar amount as a result of ~~the Company.~~this legislation. In 2023, we expect a negative impact on our cash from operations of approximately $45 million. 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 and 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 informationactual impact on fiscal 2023 cash from operations will depend on the ~~Company’s investment in Madison.~~

~~As part~~amount of ~~our continued effort to reduce~~research and development costs we incur, on whether Congress modifies or repeals this provision, and on whether new guidance and interpretive rules are issued by 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 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 $100 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.U.S. Treasury, among other factors.

Capital Resources

Sources and Uses of Cash

Cash flows 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 31, 2023		March 27, 2022		% Change
Operating activities	$	50,730	$	(14,659)	*
Investing activities	$	22,175	$	(84,009)	*
Financing activities	$	(58,530)	$	(51,922)	12.7	%
* Represents a change equal to or in excess of 100% or not meaningful.

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 in the first ~~nine months~~quarter of ~~2017~~2023 compared with the same prior-year period primarily due to lower cash payments for incentive compensation, higher ~~subscription revenue, lower~~net income ~~tax payments,~~(which in 2022 was impacted by a payment related to the acceleration of Athletic stock options in connection with the acquisition) and higher cash collections from accounts ~~payable and a higher balance of unexpired subscriptions (or subscription revenue that has not yet been recognized).~~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 investing activities in the first ~~nine months~~quarter of ~~2017~~2023 was primarily related to $28.2 million maturities of marketable securities, partially offset by ~~purchases~~capital expenditures of ~~marketable securities and capital expenditures.~~$6.0 million.

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 lease obligations and~~ share-based compensation withholding tax ~~withholding.~~payments and share repurchases.

Net cash used in financing activities in the first ~~nine months~~quarter of ~~2017~~2023 was primarily related to share repurchases of $30.7 million (excluding commissions), dividend payments of ~~$19.5~~$15.1 million and share-based compensation tax withholding payments of $11.0 million.

Free Cash Flow

Free cash flow is a non-GAAP financial measure defined as net cash provided by operating activities, less capital expenditures. The Company considers free cash flow to provide useful information to management and investors about the amount of cash that is available to be used to strengthen the Company’s balance sheet and for strategic opportunities including, among others, investing in the Company’s business, strategic acquisitions, dividend payouts and repurchasing stock. In addition, management uses free cash flow to set targets for return of capital to stockholders in the form of dividends and share repurchases.

The following table presents a reconciliation of net cash provided by operating activities to free cash flow:


	For the Quarters Ended
(In thousands)	March 31, 2023		March 27, 2022
Net cash provided by operating activities	$	50,730	$	(14,659)
Less: Capital expenditures	(5,985)		(8,580)
Free cash flow	$	44,745	$	(23,239)

Free cash flow in the first quarter of 2022 was negatively impacted by a one-time payment related to the acceleration of The Athletic Media Company stock options in connection with the acquisition.

Restricted Cash

We were required to maintain ~~$17.9~~$13.9 million of restricted cash as of ~~September 24, 2017~~March 31, 2023, and ~~$24.9~~$13.8 million as of December ~~25, 2016, the majority~~31, 2022, substantially all of which is set aside to collateralize workers’ compensation obligations.

Capital Expenditures

Capital expenditures totaled approximately ~~$67~~$6 million and ~~$17~~$10 million in the first ~~nine months~~quarter of ~~2017~~2023 and ~~2016,~~2022, respectively. The decrease in capital expenditures in 2023 was primarily driven by higher expenditures in the prior year related to improvements in our headquarters building. The cash payments related to ~~the~~ capital expenditures totaled approximately ~~$48~~$6 million and ~~$22~~$9 million in the first ~~nine months~~quarters of ~~2017~~2023 and ~~2016,~~2022, respectively. ~~The increase in both periods was primarily driven by~~

Revolving Credit Facility

On July 27, 2022, we entered into a $350.0 million five-year unsecured revolving credit facility that amended and restated a prior facility (as amended and restated, the ~~ongoing redesign and consolidation~~“Credit Facility”). Certain of ~~space in~~ our ~~headquarters building and certain improvements at~~domestic subsidiaries have guaranteed our ~~printing and distribution facility in College Point, New York.~~

~~Third-Party Financing~~

obligations under the Credit Facility. As of ~~September 24, 2017, our current indebtedness consisted~~March 31, 2023, and December 31, 2022 there was approximately $0.6 million, respectively in outstanding letters of credit and the ~~repurchase option related to a sale-leaseback~~remaining committed amount remains available. As of ~~a portion of our New York headquarters. See Note 6 of~~March 31, 2023, 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.~~31, 2022. Other than as described in Note 2 of the Notes to the Condensed Consolidated Financial Statements, as of ~~September 24, 2017,~~March 31, 2023, our critical accounting policies have not changed from December ~~25, 2016.~~31, 2022.

~~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 user and other metrics that are subject to inherent challenges in measurement; numerous factors that affect our advertising revenues, including market dynamics, evolving digital advertising trends and the evolution of our strategy; economic, market, public health (including Covid-19-related) and geopolitical conditions or other events; damage to our brand or reputation; 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; risks associated with the international scope of our business and foreign operations; risks associated with environmental, social and governance matters and any related reporting obligations; adverse results from litigation or governmental investigations; risks associated with acquisitions (including The Athletic), divestitures, investments and similar transactions; the risks and challenges associated with investments we make in new and existing products and services; risks associated with attracting and maintaining a talented and diverse workforce; the impact of labor negotiations and agreements; potential limits on our operating flexibility due to the nature of significant portions of our expenses; the effects of the ~~dates~~size and volatility of ~~such statements. We undertake no obligation~~our pension plan obligations; liabilities that may result from our participation in multiemployer pension plans; our ability to ~~update~~improve and scale our technical and data infrastructure; security incidents and other network and information systems disruptions; our ability to comply with laws and regulations with respect to privacy, data protection and consumer marketing practices; payment processing risk; defects, delays or ~~revise any forward-looking statements, whether~~interruptions in the cloud-based hosting services we utilize; our ability to protect our intellectual property; claims against us of intellectual property infringement; our ability to meet our publicly announced guidance and/or targets; the effects of restrictions on our operations as a result of ~~new~~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.

More information ~~future events or otherwise.~~

~~By their nature, forward-looking statements are subject to~~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,~~31, 2022, and “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Quarterly Report on 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,~~31, 2022, details our disclosures about market risk. As of ~~September 24, 2017,~~March 31, 2023, there were no material changes in our market risks from December ~~25, 2016.~~

31, 2022.

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)~~1934, as amended) as of ~~September 24, 2017.~~March 31, 2023. Based upon such evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective as of March 31, 2023, 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, as amended, 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

During the first quarter of 2023, we implemented a new cloud-based financial system and migrated our general ledger, fixed assets, accounts payable and reporting processes onto the new system. In connection with this implementation, we modified the design and documentation of our internal control processes and procedures relating to the new system.

There were no other changes in our internal control over financial reporting during the quarter ended ~~September 24, 2017,~~March 31, 2023, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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.~~31, 2022.

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

~~(a) Unregistered Sales~~(c) Issuer Purchases of Equity Securities

~~On July 28, 2017, we issued 24~~In February 2023, in addition to the amount remaining under the 2022 authorization, the Board of Directors approved a $250.0 million Class A share repurchase program. The authorizations provide that 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.

~~(c) Issuer Purchases of Equity Securities~~

On January 14, 2015, the Board of Directors approved an authorization of $101.1 million to repurchase shares 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 to our publicly announced share repurchase program. Our Board of Directors has authorized us to purchase sharesmay be purchased from time to time ~~subject to~~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 to offset the impact of dilution from our equity compensation program and ~~other factors.~~to return capital to our stockholders. There is no expiration date with respect to ~~this authorization.~~these authorizations. As of March 31, 2023, repurchases under these authorizations totaled approximately $135.7 million (excluding commissions) and approximately $264.3 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 1, 2023 - January 31, 2023	183,629	$	33.82	183,629	$	38,800,000
February 1, 2023 - February 28, 2023	619,900	$	38.33	619,900	$	264,302,000
March 1, 2023 - March 31, 2023	—	$	—	—	$	264,302,000
Total for the first quarter of 2023	803,529	$	38.23	803,529	$	264,302,000

Item 6. Exhibits


Exhibit No.

~~Exhibit No.~~31.1

~~10.1~~	~~Amendment No. 4 to The New York Times Companies Supplemental Retirement and Investment Plan, amended August 11, 2017, and effective January 1, 2015.~~

12	~~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).

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 10, 2023	~~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 31, 2023		December 31, 2022
	(Unaudited)					(Unaudited)
Assets					Assets
Current assets					Current assets
Cash and cash equivalents	$	244,667	$	100,692	Cash and cash equivalents	$	235,350	$	221,385
Short-term marketable securities	336,442		449,535		Short-term marketable securities	139,354		125,972
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 $11,190 in 2023 and $12,260 in 2022)					Accounts receivable (net of allowances of $11,190 in 2023 and $12,260 in 2022)	165,977		217,533
Prepaid expenses	17,869		15,948		Prepaid expenses	58,357		54,859
Other current assets	26,462		32,648		Other current assets	35,369		35,926
Total current assets	767,763		796,178		Total current assets	634,407		655,675
Other assets					Other assets
Long-term marketable securities	241,782		187,299		Long-term marketable securities	99,703		138,917
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 $836,579 in 2023 and $823,024 in 2022)					Property, plant and equipment (less accumulated depreciation and amortization of $836,579 in 2023 and $823,024 in 2022)	546,305		553,698
Goodwill	143,171		134,517		Goodwill	415,134		414,046
Intangible assets, net					Intangible assets, net	309,983		317,314
Deferred income taxes	290,473		301,342		Deferred income taxes	105,912		96,363
Miscellaneous assets	156,462		153,702		Miscellaneous assets	360,843		357,739
Total assets	$	2,238,958	$	2,185,395	Total assets	$	2,472,287	$	2,533,752


	September 24, 2017			December 25, 2016				March 31, 2023		December 31, 2022
	(Unaudited)							(Unaudited)
Liabilities and stockholders’ equity							Liabilities and stockholders’ equity
Current liabilities							Current liabilities
Accounts payable	$	116,724		$	104,463		Accounts payable	$	122,008	$	114,646
Accrued payroll and other related liabilities	90,651			96,463			Accrued payroll and other related liabilities	99,851		164,564
Unexpired subscriptions	76,886			66,686
Unexpired subscriptions revenue							Unexpired subscriptions revenue	163,590		155,945

Accrued expenses and other	134,411			131,125			Accrued expenses and other	155,005		136,055
Total current liabilities	418,672			398,737			Total current liabilities	540,454		571,210
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	221,933		225,300
Postretirement benefits obligation	55,107			57,999			Postretirement benefits obligation	26,717		26,455
Other	78,735			78,647			Other	106,393		110,815
Total other liabilities	901,612			942,414			Total other liabilities	355,043		362,570
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: 2023 – 176,662,108; 2022 – 176,288,596 (including treasury shares: 2023 – 12,808,394; 2022 – 12,004,865)							Class A – authorized: 300,000,000 shares; issued: 2023 – 176,662,108; 2022 – 176,288,596 (including treasury shares: 2023 – 12,808,394; 2022 – 12,004,865)	17,666		17,629
Class B – convertible – authorized and issued shares: 2022 – 780,724; 2021 – 780,724							Class B – convertible – authorized and issued shares: 2022 – 780,724; 2021 – 780,724	78		78
Additional paid-in capital	159,830			149,928			Additional paid-in capital	255,361		255,515
Retained earnings	1,373,478			1,331,911			Retained earnings	1,962,805		1,958,859
Common stock held in treasury, at cost	(171,211		)	(171,211		)	Common stock held in treasury, at cost	(306,987)		(276,267)
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	144		(510)
Funded status of benefit plans	(465,440		)	(477,994		)	Funded status of benefit plans	(347,805)		(348,947)
Net unrealized loss on available-for-sale securities	(653		)	—			Net unrealized loss on available-for-sale securities	(6,477)		(8,390)
Total accumulated other comprehensive loss, net of income taxes	(460,522		)	(479,816		)	Total accumulated other comprehensive loss, net of income taxes	(354,138)		(357,847)
Total New York Times Company stockholders’ equity	918,678			847,815			Total New York Times Company stockholders’ equity	1,574,785		1,597,967
Noncontrolling interest	(4		)	(3,571		)	Noncontrolling interest	2,005		2,005
Total stockholders’ equity	918,674			844,244			Total stockholders’ equity	1,576,790		1,599,972
Total liabilities and stockholders’ equity	$	2,238,958		$	2,185,395		Total liabilities and stockholders’ equity	$	2,472,287	$	2,533,752


	For the Quarters Ended
	March 31, 2023		March 27, 2022

Net income	$	22,321	$	4,725
Other comprehensive income/(loss), before tax:
Gain/(Loss) on foreign currency translation adjustments	848		(2,209)
Pension and postretirement benefits obligation	1,553		5,010
Net unrealized gain/(loss) on available-for-sale securities	2,602		(7,916)
Other comprehensive income/(loss), before tax	5,003		(5,115)
Income tax expense/(benefit)	1,294		(1,380)
Other comprehensive income/(loss), net of tax	3,709		(3,735)


Comprehensive income attributable to common stockholders	$	26,030	$	990



	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	)



Class A Common Stock	~~161,394,059~~163,894,533	shares
Class B Common Stock	~~808,763~~780,724	shares



PART I		Financial Information	1
Item	1	Financial Statements	1
		Condensed Consolidated Balance Sheets as of March 31, 2023 (unaudited) and December 31, 2022	1
		Condensed Consolidated Statements of Operations (unaudited) for the quarters ended March 31, 2023 and March 27, 2022	3
		Condensed Consolidated Statements of Comprehensive Income (unaudited) for the quarters ended March 31, 2023 and March 27, 2022	4
		Condensed Consolidated Statements of Changes In Stockholders’ Equity (unaudited) for the quarters ended March 31, 2023 and March 27, 2022	5
		Condensed Consolidated Statements of Cash Flows (unaudited) for the quarters ended March 31, 2023 and March 27, 2022	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	38
Item	4	Controls and Procedures	39

PART II		Other Information	40
Item	1	Legal Proceedings	40
Item	1A	Risk Factors	40
Item	2	Unregistered Sales of Equity Securities and Use of Proceeds	40
Item	6	Exhibits	41



	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 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 stock-based awards, net of withholding taxes:
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

Balance, December 31, 2022	$	17,707	$	255,515	$	1,958,859	$	(276,267)	$	(357,847)	$	1,597,967	$	2,005	$	1,599,972
Net income	—		—		22,321		—		—		22,321		—		22,321
Dividends	—		—		(18,375)		—		—		(18,375)		—		(18,375)
Other comprehensive income	—		—		—		—		3,709		3,709		—		3,709
Issuance of stock-based awards, net of withholding taxes:


Restricted stock units vested –267,069 Class A shares	27		(7,946)		—		—		—		(7,919)		—		(7,919)
Performance-based awards –106,419 Class A shares	10		(3,108)		—		—		—		(3,098)		—		(3,098)
Share repurchases – 803,529 Class A shares							(30,720)				(30,720)		—		(30,720)
Stock-based compensation	—		10,900		—		—		—		10,900		—		10,900
Balance, March 31, 2023	$	17,744	$	255,361	$	1,962,805	$	(306,987)	$	(354,138)	$	1,574,785	$	2,005	$	1,576,790



	For the Nine Months Ended
	September 24, 2017			September 25, 2016
	(39 weeks)
Cash flows from operating activities
Net income/(loss)	$	64,676		$	(13,795	)
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
Stock-based compensation expense	10,927			8,561
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
Other assets	(1,761		)	(21,926		)
Accounts payable, accrued payroll and other liabilities	12,473			(45,546		)
Unexpired subscriptions	10,200			3,461
Net cash provided by operating activities	147,895			85,643
Cash flows from investing activities
Purchases of marketable securities	(398,246		)	(514,809		)
Maturities of marketable securities	454,022			522,655
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
Capital expenditures	(47,831		)	(21,820		)
Other-net	1,070			(380		)
Net cash provided by investing activities	15,607			10,212
Cash flows from financing activities
Long-term obligations:
Repayment of debt and capital lease obligations	(414		)	(460		)
Dividends paid	(19,483		)	(19,416		)
Capital shares:
Stock issuances	4,142			273
Repurchases	—			(15,684		)
Share-based compensation tax withholding	(3,984		)	(9,572		)
Net cash used in financing activities	(19,739		)	(44,859		)
Net increase in cash and cash equivalents	143,763			50,996
Effect of exchange rate changes on cash	212			166
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



(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	$	—	$	—