UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September ~~26, 2021~~25, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___ to ___

Commission file number 1-5837

THE NEW YORK TIMES COMPANY

(Exact name of registrant as specified in its charter)


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

620 Eighth Avenue, New York, New York 10018

(Address and zip code of principal executive offices)

Registrant’s telephone number, including area code 212-556-1234

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A Common Stock

NYT

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by the check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

Number of shares of each class of the registrant’s common stock outstanding as of October ~~29, 2021~~28, 2022 (exclusive of treasury shares):


Class A Common Stock	~~167,093,950~~164,637,412	shares
Class B Common Stock	~~781,724~~780,724	shares

THE NEW YORK TIMES COMPANY

INDEX



PART I	PART I		Financial Information	1	PART I		Financial Information	1
Item	Item	1	Financial Statements	1	Item	1	Financial Statements	1
			Condensed Consolidated Balance Sheets as of September 26, 2021 (unaudited) and December 27, 2020	1			Condensed Consolidated Balance Sheets as of September 25, 2022 (unaudited) and December 26, 2021	1
			Condensed Consolidated Statements of Operations (unaudited) for the quarters and nine months ended September 26, 2021 and September 27, 2020	3			Condensed Consolidated Statements of Operations (unaudited) for the quarters and nine months ended September 25, 2022 and September 26, 2021	3
			Condensed Consolidated Statements of Comprehensive Income (unaudited) for the quarters and nine months ended September 26, 2021 and September 27, 2020	4			Condensed Consolidated Statements of Comprehensive Income (unaudited) for the quarters and nine months ended September 25, 2022 and September 26, 2021	4
			Condensed Consolidated Statements of Changes In Stockholders’ Equity (unaudited) for the quarters and nine months ended September 26, 2021 and September 27, 2020	5			Condensed Consolidated Statements of Changes In Stockholders’ Equity (unaudited) for the quarters and nine months ended September 25, 2022 and September 26, 2021	5
			Condensed Consolidated Statements of Cash Flows (unaudited) for the nine months ended September 26, 2021 and September 27, 2020	7			Condensed Consolidated Statements of Cash Flows (unaudited) for the nine months ended September 25, 2022 and September 26, 2021	7
			Notes to the Condensed Consolidated Financial Statements	8			Notes to the Condensed Consolidated Financial Statements	8
Item	Item	2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20	Item	2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item	Item	3	Quantitative and Qualitative Disclosures About Market Risk	39	Item	3	Quantitative and Qualitative Disclosures About Market Risk	45
Item	Item	4	Controls and Procedures	40	Item	4	Controls and Procedures	46

PART II	PART II		Other Information	41	PART II		Other Information	47
Item	Item	1	Legal Proceedings	41	Item	1	Legal Proceedings	47
Item	Item	1A	Risk Factors	41	Item	1A	Risk Factors	47
Item	Item	2	Unregistered Sales of Equity Securities and Use of Proceeds	41	Item	2	Unregistered Sales of Equity Securities and Use of Proceeds	47
Item	Item	6	Exhibits	42	Item	6	Exhibits	48

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

THE NEW YORK TIMES COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)


		September 26, 2021		December 27, 2020			September 25, 2022		December 26, 2021
		(Unaudited)					(Unaudited)
Assets	Assets					Assets
Current assets	Current assets					Current assets
Cash and cash equivalents	Cash and cash equivalents	$	323,990	$	286,079	Cash and cash equivalents	$	190,050	$	319,973
Short-term marketable securities	Short-term marketable securities	357,814		309,080		Short-term marketable securities	102,620		341,075
Accounts receivable (net of allowances of $12,069 in 2021 and $13,797 in 2020)		164,620		183,692
Accounts receivable (net of allowances of $11,991 in 2022 and $12,374 in 2021)						Accounts receivable (net of allowances of $11,991 in 2022 and $12,374 in 2021)	163,553		232,908
Prepaid expenses	Prepaid expenses	38,839		29,487		Prepaid expenses	58,733		33,199
Other current assets	Other current assets	40,391		27,497		Other current assets	28,252		25,553
Total current assets	Total current assets	925,654		835,835		Total current assets	543,208		952,708
Other assets	Other assets					Other assets
Long-term marketable securities	Long-term marketable securities	360,721		286,831		Long-term marketable securities	175,945		413,380
Property, plant and equipment (less accumulated depreciation and amortization of $903,699 in 2021 and $886,149 in 2020)		579,444		594,516
Property, plant and equipment (less accumulated depreciation and amortization of $813,330 in 2022 and $777,637 in 2021)						Property, plant and equipment (less accumulated depreciation and amortization of $813,330 in 2022 and $777,637 in 2021)	561,068		574,952
Goodwill	Goodwill	168,854		171,657		Goodwill	406,373		166,360
Intangible assets, net						Intangible assets, net	328,735		14,246
Deferred income taxes	Deferred income taxes	95,824		99,518		Deferred income taxes	111,678		95,800
Miscellaneous assets	Miscellaneous assets	338,915		319,332		Miscellaneous assets	388,385		346,662
Total assets	Total assets	$	2,469,412	$	2,307,689	Total assets	$	2,515,392	$	2,564,108

See Notes to Condensed Consolidated Financial Statements.

THE NEW YORK TIMES COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS-(Continued)

(In thousands, except share and per share data)


		September 26, 2021		December 27, 2020			September 25, 2022		December 26, 2021
		(Unaudited)					(Unaudited)
Liabilities and stockholders’ equity	Liabilities and stockholders’ equity					Liabilities and stockholders’ equity
Current liabilities	Current liabilities					Current liabilities
Accounts payable	Accounts payable	$	118,871	$	123,157	Accounts payable	$	119,531	$	127,073
Accrued payroll and other related liabilities	Accrued payroll and other related liabilities	146,378		121,159		Accrued payroll and other related liabilities	145,197		166,464
Unexpired subscriptions revenue	Unexpired subscriptions revenue	115,666		105,346		Unexpired subscriptions revenue	152,409		119,296

Accrued expenses and other	Accrued expenses and other	145,679		137,086		Accrued expenses and other	138,621		146,319
Total current liabilities	Total current liabilities	526,594		486,748		Total current liabilities	555,758		559,152
Other liabilities	Other liabilities					Other liabilities

Pension benefits obligation	Pension benefits obligation	312,881		326,555		Pension benefits obligation	270,307		295,104
Postretirement benefits obligation	Postretirement benefits obligation	34,344		38,690		Postretirement benefits obligation	33,949		36,086
Other	Other	126,061		127,585		Other	113,020		133,041
Total other liabilities	Total other liabilities	473,286		492,830		Total other liabilities	417,276		464,231
Stockholders’ equity	Stockholders’ equity					Stockholders’ equity
Common stock of $.10 par value:	Common stock of $.10 par value:					Common stock of $.10 par value:
Class A – authorized: 300,000,000 shares; issued: 2021 – 175,964,351; 2020 – 175,308,672 (including treasury shares: 2021 – 8,870,801; 2020 – 8,870,801)		17,597		17,531
Class B – convertible – authorized and issued shares: 2021 – 781,724; 2020 – 781,724		78		78
Class A – authorized: 300,000,000 shares; issued: 2022 – 176,286,593; 2021 – 175,971,801 (including treasury shares: 2022 – 11,195,509; 2021 – 8,870,801)						Class A – authorized: 300,000,000 shares; issued: 2022 – 176,286,593; 2021 – 175,971,801 (including treasury shares: 2022 – 11,195,509; 2021 – 8,870,801)	17,629		17,597
Class B – convertible – authorized and issued shares: 2022 – 780,724; 2021 – 781,724						Class B – convertible – authorized and issued shares: 2022 – 780,724; 2021 – 781,724	78		78
Additional paid-in capital	Additional paid-in capital	222,570		216,714		Additional paid-in capital	245,549		230,115
Retained earnings	Retained earnings	1,799,023		1,672,586		Retained earnings	1,918,152		1,845,343
Common stock held in treasury, at cost	Common stock held in treasury, at cost	(171,211)		(171,211)		Common stock held in treasury, at cost	(251,014)		(171,211)
Accumulated other comprehensive loss, net of income taxes:	Accumulated other comprehensive loss, net of income taxes:					Accumulated other comprehensive loss, net of income taxes:
Foreign currency translation adjustments	Foreign currency translation adjustments	5,879		8,386		Foreign currency translation adjustments	(5,947)		3,754
Funded status of benefit plans	Funded status of benefit plans	(407,624)		(421,698)		Funded status of benefit plans	(374,434)		(385,680)
Net unrealized gain on available-for-sale securities		1,215		3,131
Net unrealized loss on available-for-sale securities						Net unrealized loss on available-for-sale securities	(9,660)		(1,276)
Total accumulated other comprehensive loss, net of income taxes	Total accumulated other comprehensive loss, net of income taxes	(400,530)		(410,181)		Total accumulated other comprehensive loss, net of income taxes	(390,041)		(383,202)
Total New York Times Company stockholders’ equity	Total New York Times Company stockholders’ equity	1,467,527		1,325,517		Total New York Times Company stockholders’ equity	1,540,353		1,538,720
Noncontrolling interest	Noncontrolling interest	2,005		2,594		Noncontrolling interest	2,005		2,005
Total stockholders’ equity	Total stockholders’ equity	1,469,532		1,328,111		Total stockholders’ equity	1,542,358		1,540,725
Total liabilities and stockholders’ equity	Total liabilities and stockholders’ equity	$	2,469,412	$	2,307,689	Total liabilities and stockholders’ equity	$	2,515,392	$	2,564,108

See Notes to Condensed Consolidated Financial Statements.

THE NEW YORK TIMES COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share data)


		For the Quarters Ended				For the Nine Months Ended					For the Quarters Ended				For the Nine Months Ended
		September 26, 2021		September 27, 2020		September 26, 2021		September 27, 2020			September 25, 2022		September 26, 2021		September 25, 2022		September 26, 2021
		(13 weeks)				(39 weeks)					(13 weeks)				(39 weeks)
Revenues	Revenues									Revenues
Subscription	Subscription	$	342,609	$	300,950	$	1,010,910	$	879,573	Subscription	$	382,672	$	342,609	$	1,138,270	$	1,010,910
Advertising	Advertising	110,887		79,253		320,777		253,150		Advertising	110,467		110,887		344,116		320,777
Other	Other	55,607		46,692		148,958		141,558		Other	54,541		55,607		158,399		148,958
Total revenues	Total revenues	509,103		426,895		1,480,645		1,274,281		Total revenues	547,680		509,103		1,640,785		1,480,645
Operating costs	Operating costs									Operating costs
Cost of revenue (excluding depreciation and amortization)	Cost of revenue (excluding depreciation and amortization)	256,978		235,665		759,333		709,062		Cost of revenue (excluding depreciation and amortization)	294,856		256,978		876,804		759,333
Sales and marketing	Sales and marketing	83,767		50,615		197,475		164,004		Sales and marketing	64,732		83,767		205,089		197,475
Product development	Product development	40,638		34,349		119,280		96,334		Product development	50,474		40,638		148,729		119,280
General and administrative	General and administrative	64,418		51,118		183,278		162,791		General and administrative	71,970		64,418		212,468		183,278
Depreciation and amortization	Depreciation and amortization	14,326		15,552		43,529		46,368		Depreciation and amortization	21,760		14,326		61,150		43,529
Total operating costs	Total operating costs	460,127		387,299		1,302,895		1,178,559		Total operating costs	503,792		460,127		1,504,240		1,302,895

Acquisition-related costs										Acquisition-related costs	—		—		34,712		—
Gain from pension liability adjustment										Gain from pension liability adjustment	(7,127)		—		(7,127)		—
Lease termination charge	Lease termination charge	—		—		3,831		—		Lease termination charge	—		—		—		3,831

Operating profit	Operating profit	48,976		39,596		173,919		95,722		Operating profit	51,015		48,976		108,960		173,919
Other components of net periodic benefit costs	Other components of net periodic benefit costs	2,599		2,272		7,796		6,735		Other components of net periodic benefit costs	1,757		2,599		4,903		7,796

Interest income and other, net	Interest income and other, net	28,569		3,537		31,953		20,177		Interest income and other, net	1,579		28,569		38,258		31,953
Income from continuing operations before income taxes	Income from continuing operations before income taxes	74,946		40,861		198,076		109,164		Income from continuing operations before income taxes	50,837		74,946		142,315		198,076
Income tax expense	Income tax expense	20,290		7,283		47,994		19,070		Income tax expense	14,220		20,290		39,196		47,994

Net income										Net income	36,617		54,656		103,119		150,082

Net income attributable to The New York Times Company common stockholders	Net income attributable to The New York Times Company common stockholders	$	54,656	$	33,578	$	150,082	$	90,094	Net income attributable to The New York Times Company common stockholders	$	36,617	$	54,656	$	103,119	$	150,082
Average number of common shares outstanding:	Average number of common shares outstanding:									Average number of common shares outstanding:
Basic	Basic	168,027		167,075		167,895		166,842		Basic	166,433		168,027		167,290		167,895
Diluted	Diluted	168,546		168,059		168,492		167,943		Diluted	166,497		168,546		167,418		168,492
Basic earnings per share attributable to The New York Times Company common stockholders	Basic earnings per share attributable to The New York Times Company common stockholders	$	0.33	$	0.20	$	0.89	$	0.54	Basic earnings per share attributable to The New York Times Company common stockholders	$	0.22	$	0.33	$	0.62	$	0.89
Diluted earnings per share attributable to The New York Times Company common stockholders	Diluted earnings per share attributable to The New York Times Company common stockholders	$	0.32	$	0.20	$	0.89	$	0.54	Diluted earnings per share attributable to The New York Times Company common stockholders	$	0.22	$	0.32	$	0.62	$	0.89
Dividends declared per share	Dividends declared per share	$	0.07	$	0.12	$	0.14	$	0.18	Dividends declared per share	$	0.09	$	0.07	$	0.18	$	0.14

See Notes to Condensed Consolidated Financial Statements.

THE NEW YORK TIMES COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE ~~INCOME~~INCOME/(LOSS)

(Unaudited)

(In thousands)

For the Quarters Ended For the Nine Months Ended
September 26, 2021 September 27, 2020 September 26, 2021 September 27, 2020
(13 weeks) (39 weeks)
Net income $ 54,656 $ 33,578 $ 150,082 $ 90,094
Other comprehensive income, before tax:
(Loss)/gain on foreign currency translation adjustments (1,654) 2,730 (3,421) 3,095
Pension and postretirement benefits obligation 6,405 6,354 19,220 18,982
Net unrealized (loss)/gain on available-for-sale securities (770) (854) (2,616) 3,936
Other comprehensive income, before tax 3,981 8,230 13,183 26,013
Income tax expense 1,067 2,192 3,532 6,955
Other comprehensive income, net of tax 2,914 6,038 9,651 19,058
Comprehensive income attributable to The New York Times Company common stockholders $ 57,570 $ 39,616 $ 159,733 $ 109,152


	For the Quarters Ended				For the Nine Months Ended
	September 25, 2022		September 26, 2021		September 25, 2022		September 26, 2021
	(13 weeks)				(39 weeks)
Net income	$	36,617	$	54,656	$	103,119	$	150,082
Other comprehensive (loss)/income, before tax:
Loss on foreign currency translation adjustments	(7,603)		(1,654)		(13,219)		(3,421)
Pension and postretirement benefits obligation	5,247		6,405		15,371		19,220
Net unrealized loss on available-for-sale securities	(1,631)		(770)		(11,458)		(2,616)
Other comprehensive (loss)/income, before tax	(3,987)		3,981		(9,306)		13,183
Income tax (benefit)/expense	(983)		1,067		(2,467)		3,532
Other comprehensive (loss)/income, net of tax	(3,004)		2,914		(6,839)		9,651


Comprehensive income attributable to The New York Times Company common stockholders	$	33,613	$	57,570	$	96,280	$	159,733

See Notes to Condensed Consolidated Financial Statements.

THE NEW YORK TIMES COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

For the Quarters Ended September ~~26, 2021~~25, 2022 and September ~~27, 2020~~26, 2021

(Unaudited)

(In thousands, except share data)

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, June 28, 2020 $ 17,562 $ 205,618 $ 1,659,158 $ (171,211) $ (481,956) $ 1,229,171 $ 1,860 $ 1,231,031
Net income — — 33,578 — — 33,578 — 33,578
Dividends — — (20,103) — — (20,103) — (20,103)
Other comprehensive income — — — — 6,038 6,038 — 6,038
Issuance of shares:
Stock options – 372,508 Class A shares 37 3,397 — — — 3,434 — 3,434
Restricted stock units vested – 635 Class A shares — (16) — — — (16) — (16)
Stock-based compensation — 3,292 — — — 3,292 — 3,292
Balance, September 27, 2020 $ 17,599 $ 212,291 $ 1,672,633 $ (171,211) $ (475,918) $ 1,255,394 $ 1,860 $ 1,257,254
Balance, June 27, 2021 $ 17,674 $ 217,565 $ 1,756,198 $ (171,211) $ (403,444) $ 1,416,782 $ 2,005 $ 1,418,787
Net income — — 54,656 — — 54,656 — 54,656
Dividends — — (11,831) — — (11,831) — (11,831)
Other comprehensive income — — — — 2,914 2,914 — 2,914
Issuance of shares:
Stock options – 700 Class A shares — 4 — — — 4 — 4
Restricted stock units vested – 1,379 Class A shares 1 (48) — — — (47) — (47)
Stock-based compensation — 5,049 — — — 5,049 — 5,049
Balance, September 26, 2021 $ 17,675 $ 222,570 $ 1,799,023 $ (171,211) $ (400,530) $ 1,467,527 $ 2,005 $ 1,469,532


	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, June 27, 2021	$	17,674	$	217,565	$	1,756,198	$	(171,211)	$	(403,444)	$	1,416,782	$	2,005	$	1,418,787

Net income	—		—		54,656		—		—		54,656		—		54,656
Dividends	—		—		(11,831)		—		—		(11,831)		—		(11,831)
Other comprehensive income	—		—		—		—		2,914		2,914		—		2,914
Issuance of shares:
Stock options – 700 Class A shares	—		4		—		—		—		4		—		4
Restricted stock units vested – 1,379 Class A shares	1		(48)		—		—		—		(47)		—		(47)

Stock-based compensation	—		5,049		—		—		—		5,049		—		5,049

Balance, September 26, 2021	$	17,675	$	222,570	$	1,799,023	$	(171,211)	$	(400,530)	$	1,467,527	$	2,005	$	1,469,532

Balance, June 26, 2022	$	17,705	$	236,495	$	1,896,646	$	(225,680)	$	(387,037)	$	1,538,129	$	2,005	$	1,540,134

Net income	—		—		36,617		—		—		36,617		—		36,617
Dividends	—		—		(15,111)		—		—		(15,111)		—		(15,111)
Other comprehensive loss	—		—		—		—		(3,004)		(3,004)		—		(3,004)
Issuance of shares:

Restricted stock units vested – 11,655 Class A shares	2		(209)		—		—		—		(207)		—		(207)

Share repurchases – 850,378 Class A shares	—		—		—		(25,334)		—		(25,334)		—		(25,334)
Stock-based compensation	—		9,263		—		—		—		9,263		—		9,263


Balance, September 25, 2022	$	17,707	$	245,549	$	1,918,152	$	(251,014)	$	(390,041)	$	1,540,353	$	2,005	$	1,542,358

THE NEW YORK TIMES COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

For the Nine Months Ended September 25, 2022 and September 26, 2021 ~~and September 27, 2020~~

(Unaudited)

(In thousands, except share data)

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 29, 2019 $ 17,504 $ 208,028 $ 1,612,658 $ (171,211) $ (494,976) $ 1,172,003 $ 1,860 $ 1,173,863
Net income — — 90,094 — — 90,094 — 90,094
Dividends — — (30,119) — — (30,119) — (30,119)
Other comprehensive income — — — — 19,058 19,058 — 19,058
Issuance of shares: — —
Stock options – 552,018 Class A shares 55 5,252 — — — 5,307 — 5,307
Restricted stock units vested – 142,136 Class A shares 14 (3,913) — — — (3,899) — (3,899)
Performance-based awards – 257,098 Class A shares 26 (7,850) — — — (7,824) — (7,824)
Stock-based compensation — 10,774 — — — 10,774 — 10,774
Balance, September 27, 2020 $ 17,599 $ 212,291 $ 1,672,633 $ (171,211) $ (475,918) $ 1,255,394 $ 1,860 $ 1,257,254
Balance, December 27, 2020 $ 17,609 $ 216,714 $ 1,672,586 $ (171,211) $ (410,181) $ 1,325,517 $ 2,594 $ 1,328,111
Net income — — 150,082 — — 150,082 — 150,082
Dividends — — (23,645) — — (23,645) — (23,645)
Other comprehensive income — — — — 9,651 9,651 — 9,651
Issuance of shares:
Stock options – 324,060 Class A shares 33 2,418 — — — 2,451 — 2,451
Restricted stock units vested – 189,366 Class A shares 19 (5,002) — — — (4,983) — (4,983)
Performance-based awards – 142,253 Class A shares 14 (5,947) — — — (5,933) — (5,933)
Stock-based compensation — 14,387 — — — 14,387 — 14,387
Distributions — — — — — — (589) (589)
Balance, September 26, 2021 $ 17,675 $ 222,570 $ 1,799,023 $ (171,211) $ (400,530) $ 1,467,527 $ 2,005 $ 1,469,532


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

Balance, December 27, 2020	$	17,609	$	216,714	$	1,672,586	$	(171,211)	$	(410,181)	$	1,325,517	$	2,594	$	1,328,111
Net income	—		—		150,082		—		—		150,082		—		150,082
Dividends	—		—		(23,645)		—		—		(23,645)		—		(23,645)
Other comprehensive income	—		—		—		—		9,651		9,651		—		9,651
Issuance of shares:
Stock options – 324,060 Class A shares	33		2,418		—		—		—		2,451		—		2,451
Restricted stock units vested – 189,366 Class A shares	19		(5,002)		—		—		—		(4,983)		—		(4,983)
Performance-based awards - 142,253 Class A shares	14		(5,947)		—		—		—		(5,933)		—		(5,933)
Stock-based compensation	—		14,387		—		—		—		14,387				14,387
Distributions	—		—		—		—		—		—		(589)		(589)
Balance, September 26, 2021	$	17,675	$	222,570	$	1,799,023	$	(171,211)	$	(400,530)	$	1,467,527	$	2,005	$	1,469,532

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	—		—		103,119		—		—		103,119		—		103,119
Dividends	—		—		(30,310)		—		—		(30,310)		—		(30,310)
Other comprehensive loss	—		—		—		—		(6,839)		(6,839)		—		(6,839)
Issuance of shares:
Stock options – 400 Class A shares	—		3		—		—		—		3		—		3

Restricted stock units vested –149,874 Class A shares	16		(4,295)		—		—		—		(4,279)		—		(4,279)
Performance-based awards –163,518 Class A shares	16		(5,573)		—		—		—		(5,557)		—		(5,557)
Share repurchases – 2,324,708 Class A shares							(79,803)				(79,803)		—		(79,803)
Stock-based compensation	—		25,299		—		—		—		25,299		—		25,299
Balance, September 25, 2022	$	17,707	$	245,549	$	1,918,152	$	(251,014)	$	(390,041)	$	1,540,353	$	2,005	$	1,542,358

THE NEW YORK TIMES COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)


		For the Nine Months Ended					For the Nine Months Ended
		September 26, 2021		September 27, 2020			September 25, 2022		September 26, 2021
		(39 weeks)					(39 weeks)
Cash flows from operating activities	Cash flows from operating activities					Cash flows from operating activities
Net income	Net income	$	150,082	$	90,094	Net income	$	103,119	$	150,082
Adjustments to reconcile net income to net cash provided by operating activities:	Adjustments to reconcile net income to net cash provided by operating activities:					Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization	Depreciation and amortization	43,529		46,368		Depreciation and amortization	61,150		43,529
Lease termination charge	Lease termination charge	3,831		—		Lease termination charge	—		3,831
Amortization of right of use asset	Amortization of right of use asset	7,069		6,446		Amortization of right of use asset	7,465		7,069
Stock-based compensation expense	Stock-based compensation expense	14,387		10,744		Stock-based compensation expense	25,299		14,387

Gain on pension liability adjustment						Gain on pension liability adjustment	(7,127)		—
Gain on the sale of land						Gain on the sale of land	(34,227)		—
Gain on non-marketable equity investment	Gain on non-marketable equity investment	(27,156)		(10,074)		Gain on non-marketable equity investment	—		(27,156)

Change in long-term retirement benefit obligations	Change in long-term retirement benefit obligations	(13,440)		(11,635)		Change in long-term retirement benefit obligations	(19,100)		(13,440)

Fair market value adjustment on life insurance products						Fair market value adjustment on life insurance products	1,494		312
Other – net	Other – net	(256)		(5,505)		Other – net	(1,221)		(568)
Changes in operating assets and liabilities:
Changes in operating assets and liabilities, net of business acquisitions:						Changes in operating assets and liabilities, net of business acquisitions:
Accounts receivable – net	Accounts receivable – net	19,072		88,065		Accounts receivable – net	74,869		19,072
Other assets	Other assets	(13,192)		3,816		Other assets	(25,575)		(13,192)
Accounts payable, accrued payroll and other liabilities	Accounts payable, accrued payroll and other liabilities	15,311		(23,366)		Accounts payable, accrued payroll and other liabilities	(106,174)		15,311
Unexpired subscriptions	Unexpired subscriptions	10,320		11,730		Unexpired subscriptions	5,052		10,320
Net cash provided by operating activities	Net cash provided by operating activities	209,557		206,683		Net cash provided by operating activities	85,024		209,557
Cash flows from investing activities	Cash flows from investing activities					Cash flows from investing activities
Purchases of marketable securities	Purchases of marketable securities	(550,649)		(460,117)		Purchases of marketable securities	(6,650)		(550,649)
Maturities of marketable securities	Maturities of marketable securities	421,679		331,786		Maturities of marketable securities	469,863		421,679

Business acquisitions		—		(33,085)
Business acquisitions, net of cash acquired						Business acquisitions, net of cash acquired	(515,299)		—
Sales of investments – net	Sales of investments – net	20,569		1,000		Sales of investments – net	(1,886)		20,569
Capital expenditures	Capital expenditures	(23,750)		(29,236)		Capital expenditures	(27,809)		(23,750)
Other-net		2,466		2,388
Other – net						Other – net	2,482		2,466
Net cash used in investing activities	Net cash used in investing activities	(129,685)		(187,264)		Net cash used in investing activities	(79,299)		(129,685)
Cash flows from financing activities	Cash flows from financing activities					Cash flows from financing activities
Long-term obligations:	Long-term obligations:					Long-term obligations:

Dividends paid	Dividends paid	(33,627)		(28,393)		Dividends paid	(41,878)		(33,627)
Payment of contingent consideration	Payment of contingent consideration	(862)		(862)		Payment of contingent consideration	(1,724)		(862)
Capital shares:	Capital shares:					Capital shares:
Proceeds from stock option exercises	Proceeds from stock option exercises	2,451		5,307		Proceeds from stock option exercises	3		2,451

Repurchases						Repurchases	(79,803)		—
Share-based compensation tax withholding	Share-based compensation tax withholding	(10,916)		(11,723)		Share-based compensation tax withholding	(9,837)		(10,916)
Net cash used in financing activities	Net cash used in financing activities	(42,954)		(35,671)		Net cash used in financing activities	(133,239)		(42,954)
Net increase (decrease) in cash, cash equivalents and restricted cash		36,918		(16,252)
Net (decrease)/increase in cash, cash equivalents and restricted cash						Net (decrease)/increase in cash, cash equivalents and restricted cash	(127,514)		36,918
Effect of exchange rate changes on cash	Effect of exchange rate changes on cash	(560)		349		Effect of exchange rate changes on cash	(3,074)		(560)
Cash, cash equivalents and restricted cash at the beginning of the period	Cash, cash equivalents and restricted cash at the beginning of the period	301,964		247,518		Cash, cash equivalents and restricted cash at the beginning of the period	334,306		301,964
Cash, cash equivalents and restricted cash at the end of the period	Cash, cash equivalents and restricted cash at the end of the period	$	338,322	$	231,615	Cash, cash equivalents and restricted cash at the end of the period	$	203,718	$	338,322

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 ~~26, 2021,~~25, 2022, and December ~~27, 2020,~~26, 2021, and the results of operations, changes in stockholders’ equity and cash flows of the Company for the periods ended September ~~26, 2021,~~25, 2022, and September ~~27, 2020.~~26, 2021. The Company and its consolidated subsidiaries are referred to collectively as “we,” “us” or “our.” All adjustments necessary for a fair presentation have been included and are of a normal and recurring nature. All significant intercompany accounts and transactions have been eliminated in consolidation. The financial statements were prepared in accordance with the requirements of the 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 ~~27, 2020.~~26, 2021. Due to the seasonal nature of our business, operating results for the interim periods are not necessarily indicative of a full year’s operations. The fiscal periods included herein comprise 13 and 39 weeks for the third quarter and first nine months, respectively.

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

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

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

~~Certain prior period amounts have been reclassified to conform with the current period presentation.~~

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Except as described herein, as of September ~~26, 2021,~~25, 2022, our significant accounting policies, which are detailed in our Annual Report on Form 10-K for the year ended December ~~27, 2020,~~26, 2021, have not changed materially.

Recently Adopted Accounting Pronouncements


Accounting Standard Update(s)	Topic	Effective Period	Summary
~~2019-12~~2021-08	~~Simplifying the~~Business Combinations (Topic 805): Accounting for ~~Income Taxes (Topic 740)~~Contract Assets and Contract Liabilities from Contracts with Customers	Fiscal years, and interim periods within those fiscal years, beginning after December 15, ~~2020.~~2022. Early adoption is permitted.	~~Simplifies the accounting for income taxes by eliminating certain exceptions~~Requires entities to ~~the guidance~~recognize and measure contract assets and contract liabilities acquired in ~~Accounting Standards Codification 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes~~a business combination in accordance with ASC 2014-09, Revenue from Contracts with Customers (Topic 606). The update will generally result in an ~~interim period~~entity recognizing contract assets and contract liabilities at amounts consistent with those recorded by the ~~recognition of deferred tax liabilities for outside basis differences. The standard also simplifies aspects of~~acquiree immediately before the ~~accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill.~~acquisition date rather than at fair value. The Company adopted this guidance on December ~~28, 2020.~~27, 2021. As a result of The ~~adoption did not have a material impact on~~Athletic acquisition, the ~~Company’s consolidated financial statements.~~Company assumed unexpired subscriptions revenue of $28.1 million.

Recently Issued Accounting Pronouncements

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

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 3. REVENUE

We generate revenues principally from subscriptions and advertising. Subscription revenues consist of revenues from subscriptions to our digital and print products (which include our news product, as well as The Athletic and our Games, Cooking, Audm and Wirecutter ~~(to which a subscription option was launched during the third quarter of 2021) products (“other digital-only products”))~~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 ~~derived~~ from offerings sold directly to marketers by our advertising sales teams. A smaller proportion of our total advertising revenues is generated through programmatic auctions run by third-party ad exchanges. Advertising revenue is primarily determined by the volume (e.g., impressions), rate and mix of advertisements. Digital advertising includes our core digital advertising business and other digital advertising. Our core digital advertising

~~THE NEW YORK TIMES COMPANY~~

~~NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

business includes direct-sold website, mobile application, podcast, email and video advertisements. Advertising revenue from The Athletic is primarily podcast revenue and therefore is reflected in this category. Direct-sold display advertising, a component of core digital advertising, includes offerings on websites and mobile applications sold directly to marketers by our advertising sales teams. Other digital advertising includes open-market programmatic advertising and creative services fees. Print advertising includes revenue from column-inch ads and classified advertising as well as preprinted advertising, also known as freestanding inserts.

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

Subscription, advertising and other revenues were as ~~follows:~~follows for the third quarters and first nine months ended September 25, 2022, and September 26, 2021:


		For the Quarters Ended								For the Nine Months Ended									For the Quarters Ended								For the Nine Months Ended
(In thousands)	(In thousands)	September 26, 2021		As % of total		September 27, 2020		As % of total		September 26, 2021		As % of total		September 27, 2020		As % of total		(In thousands)	September 25, 2022		As % of total		September 26, 2021		As % of total		September 25, 2022		As % of total		September 26, 2021		As % of total
Subscription	Subscription	$	342,609	67.4	%	$	300,950	70.5	%	$	1,010,910	68.3	%	$	879,573	69.0	%	Subscription	$	382,672	69.9	%	$	342,609	67.4	%	$	1,138,270	69.3	%	$	1,010,910	68.3	%
Advertising	Advertising	110,887		21.7	%	79,253		18.6	%	320,777		21.6	%	253,150		19.9	%	Advertising	110,467		20.1	%	110,887		21.7	%	344,116		21.0	%	320,777		21.6	%
Other (1)	Other (1)	55,607		10.9	%	46,692		10.9	%	148,958		10.1	%	141,558		11.1	%	Other (1)	54,541		10.0	%	55,607		10.9	%	158,399		9.7	%	148,958		10.1	%
Total	Total	$	509,103	100.0	%	$	426,895	100.0	%	$	1,480,645	100.0	%	$	1,274,281	100.0	%	Total	$	547,680	100.0	%	$	509,103	100.0	%	$	1,640,785	100.0	%	$	1,480,645	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 third quarters of ~~each of~~2022 and 2021, ~~and 2020,~~respectively, and approximately ~~$20~~$22 million and ~~$22~~$20 million for the first nine months of 2022 and 2021, ~~and 2020,~~ respectively.

The following table summarizes digital and print subscription revenues, which are components of subscription revenues above, for the third quarters and first nine months ended September 26, 2021, and September 27, 2020:

For the Quarters Ended For the Nine Months Ended
(In thousands) September 26, 2021 As % of total September 27, 2020 As % of total September 26, 2021 As % of total September 27, 2020 As % of total
Digital-only subscription revenues:
News product subscription revenues(1)
$ 178,382 52.1 % $ 140,740 46.8 % $ 510,563 50.5 % $ 392,620 44.6 %
Other digital-only product subscription revenues(2)
20,251 5.9 % 14,546 4.8 % 57,815 5.7 % 38,660 4.4 %
Subtotal digital-only subscriptions 198,633 58.0 % 155,286 51.6 % 568,378 56.2 % 431,280 49.0 %
Print subscription revenues:
Domestic home delivery subscription revenues(3)
128,895 37.6 % 129,912 43.2 % 398,045 39.4 % 396,620 45.1 %
Single-copy, NYT International and other subscription revenues(4)
15,081 4.4 % 15,752 5.2 % 44,487 4.4 % 51,673 5.9 %
Subtotal print subscription revenues 143,976 42.0 % 145,664 48.4 % 442,532 43.8 % 448,293 51.0 %
Total subscription revenues $ 342,609 100.0 % $ 300,950 100.0 % $ 1,010,910 100.0 % $ 879,573 100.0 %
(1) Includes revenues from subscriptions to the Company’s news product. News product subscription packages that include access to the Company’s Games, Cooking and Wirecutter products are also included in this category.
(2) Includes revenues from standalone subscriptions to the Company’s other digital-only products.
(3) Includes free access to some of the Company’s digital products.
(4) NYT International is the international edition of our print newspaper.

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)


	For the Quarters Ended								For the Nine Months Ended
(In thousands)	September 25, 2022		As % of total		September 26, 2021		As % of total		September 25, 2022		As % of total		September 26, 2021		As % of total
Digital-only subscription revenues (1)	$	243,889	63.7	%	$	198,633	58.0	%	$	709,378	62.3	%	$	568,378	56.2	%
Print subscription revenues:
Domestic home delivery subscription revenues (2)	124,653		32.6	%	128,895		37.6	%	387,125		34.0	%	398,045		39.4	%
Single-copy, NYT International and Other subscription revenues (3)	14,130		3.7	%	15,081		4.4	%	41,767		3.7	%	44,487		4.4	%
Subtotal print subscription revenues	138,783		36.3	%	143,976		42.0	%	428,892		37.7	%	442,532		43.8	%
Total subscription revenues	$	382,672	100.0	%	$	342,609	100.0	%	$	1,138,270	100.0	%	$	1,010,910	100.0	%
(1) Includes revenue from digital-only bundled and standalone subscriptions to our news product, as well as The Athletic and our Games, Cooking, Audm and Wirecutter products.
(2) Domestic home delivery subscriptions include access to our digital news product, as well as The Athletic and our Games, Cooking 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 third quarters and first nine months ended September ~~26, 2021,~~25, 2022, and September ~~27, 2020:~~26, 2021:


		For the Quarters Ended								For the Nine Months Ended									For the Quarters Ended								For the Nine Months Ended
(In thousands)	(In thousands)	September 26, 2021		As % of total		September 27, 2020		As % of total		September 26, 2021		As % of total		September 27, 2020		As % of total		(In thousands)	September 25, 2022		As % of total		September 26, 2021		As % of total		September 25, 2022		As % of total		September 26, 2021		As % of total
Advertising revenues:	Advertising revenues:																	Advertising revenues:
Digital	Digital	$	66,981	60.4	%	$	47,763	60.3	%	$	197,472	61.6	%	$	138,452	54.7	%	Digital	$	70,282	63.6	%	$	66,981	60.4	%	$	206,588	60.0	%	$	197,472	61.6	%
Print	Print	43,906		39.6	%	31,490		39.7	%	123,305		38.4	%	114,698		45.3	%	Print	40,185		36.4	%	43,906		39.6	%	137,528		40.0	%	123,305		38.4	%
Total advertising	Total advertising	$	110,887	100.0	%	$	79,253	100.0	%	$	320,777	100.0	%	$	253,150	100.0	%	Total advertising	$	110,467	100.0	%	$	110,887	100.0	%	$	344,116	100.0	%	$	320,777	100.0	%

Performance Obligations

We have remaining performance obligations related to digital archive and other licensing and certain advertising contracts. As of September ~~26, 2021,~~25, 2022, the aggregate amount of the transaction price allocated to the remaining performance obligations for contracts with a duration greater than one year was approximately ~~$128~~$99 million. The Company will recognize this revenue as performance obligations are satisfied. We expect that approximately ~~$13~~$8 million, ~~$40~~$25 million and ~~$75~~$66 million will be recognized in the remainder of ~~2021,~~ 2022, 2023 and thereafter through 2028, respectively.

Contract Assets

As of September ~~26, 2021,~~25, 2022, and December ~~27, 2020,~~26, 2021, the Company had ~~$3.1~~$3.8 million and ~~$1.8~~$3.4 million, respectively, in contract assets recorded in the Condensed Consolidated Balance Sheets related to digital archiving licensing revenue. The contract asset is reclassified to Accounts receivable when the customer is invoiced based on the contractual billing schedule.

NOTE 4. MARKETABLE SECURITIES

The Company accounts for its marketable securities as available for sale (“AFS”). The Company recorded ~~$1.7~~$13.2 million and ~~$4.3~~$1.7 million of net unrealized ~~gains~~losses in Accumulated other comprehensive income (“AOCI”) as of September ~~26, 2021,~~25, 2022, and December ~~27, 2020,~~26, 2021, respectively.

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following tables present the amortized cost, gross unrealized gains and losses, and fair market value of our AFS securities as of September ~~26, 2021,~~25, 2022, and December ~~27, 2020:~~26, 2021:


		September 26, 2021									September 25, 2022
(In thousands)	(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									Short-term AFS securities
U.S. Treasury securities	U.S. Treasury securities	$	108,696	$	898	$	(2)	$	109,592	U.S. Treasury securities	$	41,116	$	1	$	(693)	$	40,424
Certificates of deposit		109,253		—		—		109,253

Corporate debt securities	Corporate debt securities	100,627		361		(14)		100,974		Corporate debt securities	38,269		—		(980)		37,289
U.S. governmental agency securities	U.S. governmental agency securities	19,964		10		—		19,974		U.S. governmental agency securities	16,805		—		(575)		16,230
Commercial paper		18,021		—		—		18,021

Municipal securities										Municipal securities	8,913		—		(236)		8,677
Total short-term AFS securities	Total short-term AFS securities	$	356,561	$	1,269	$	(16)	$	357,814	Total short-term AFS securities	$	105,103	$	1	$	(2,484)	$	102,620
Long-term AFS securities	Long-term AFS securities									Long-term AFS securities
Corporate debt securities	Corporate debt securities	$	233,971	$	594	$	(274)	$	234,291	Corporate debt securities	$	133,812	$	—	$	(7,819)	$	125,993
U.S. Treasury securities	U.S. Treasury securities	71,722		200		(61)		71,861		U.S. Treasury securities	40,858		—		(2,315)		38,543
U.S. governmental agency securities	U.S. governmental agency securities	42,497		—		(43)		42,454		U.S. governmental agency securities	11,999		—		(590)		11,409
Municipal securities		12,123		5		(13)		12,115

Total long-term AFS securities	Total long-term AFS securities	$	360,313	$	799	$	(391)	$	360,721	Total long-term AFS securities	$	186,669	$	—	$	(10,724)	$	175,945


		December 27, 2020									December 26, 2021
(In thousands)	(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									Short-term AFS securities
U.S. Treasury securities	U.S. Treasury securities	$	79,467	$	39	$	(3)	$	79,503	U.S. Treasury securities	$	148,899	$	692	$	(43)	$	149,548
Corporate debt securities										Corporate debt securities	107,158		245		(69)		107,334
Certificates of deposit	Certificates of deposit	36,525		—		—		36,525		Certificates of deposit	55,551		—		—		55,551
Corporate debt securities		129,805		504		(8)		130,301
Commercial paper										Commercial paper	21,145		—		—		21,145
U.S. governmental agency securities	U.S. governmental agency securities	25,113		61		(3)		25,171		U.S. governmental agency securities	3,500		—		—		3,500
Commercial paper		37,580		—		—		37,580

Municipal securities										Municipal securities	3,999		—		(2)		3,997
Total short-term AFS securities	Total short-term AFS securities	$	308,490	$	604	$	(14)	$	309,080	Total short-term AFS securities	$	340,252	$	937	$	(114)	$	341,075
Long-term AFS securities	Long-term AFS securities									Long-term AFS securities
Corporate debt securities	Corporate debt securities	$	134,296	$	1,643	$	(5)	$	135,934	Corporate debt securities	$	242,764	$	149	$	(1,858)	$	241,055
U.S. Treasury securities	U.S. Treasury securities	95,511		2,054		—		97,565		U.S. Treasury securities	119,695		—		(549)		119,146
U.S. governmental agency securities	U.S. governmental agency securities	48,342		19		(13)		48,348		U.S. governmental agency securities	39,498		—		(252)		39,246
Municipal securities	Municipal securities	4,994		—		(10)		4,984		Municipal securities	13,994		—		(61)		13,933
Total long-term AFS securities	Total long-term AFS securities	$	283,143	$	3,716	$	(28)	$	286,831	Total long-term AFS securities	$	415,951	$	149	$	(2,720)	$	413,380

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following tables represent the AFS securities as of September ~~26, 2021,~~25, 2022, and December ~~27, 2020,~~26, 2021, that were in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position:


		September 26, 2021													September 25, 2022
		Less than 12 Months				12 Months or Greater				Total					Less than 12 Months				12 Months or Greater				Total
(In thousands)	(In thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		(In thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses

Short-term AFS securities	Short-term AFS securities													Short-term AFS securities
Corporate debt securities														Corporate debt securities	$	30,120	$	(736)	$	7,169	$	(244)	$	37,289	$	(980)
U.S. Treasury securities	U.S. Treasury securities	$	32,611	$	(2)	$	—	$	—	$	32,611	$	(2)	U.S. Treasury securities	23,655		(439)		12,241		(254)		35,896		(693)
Corporate debt securities		28,090		(14)		—		—		28,090		(14)

U.S. governmental agency securities														U.S. governmental agency securities	4,833		(167)		11,397		(408)		16,230		(575)
Municipal securities														Municipal securities	6,215		(175)		2,463		(61)		8,678		(236)
Total short-term AFS securities	Total short-term AFS securities	$	60,701	$	(16)	$	—	$	—	$	60,701	$	(16)	Total short-term AFS securities	$	64,823	$	(1,517)	$	33,270	$	(967)	$	98,093	$	(2,484)
Long-term AFS securities	Long-term AFS securities													Long-term AFS securities
Corporate debt securities	Corporate debt securities	$	128,315	$	(274)	$	—	$	—	$	128,315	$	(274)	Corporate debt securities	$	72,968	$	(4,459)	$	53,025	$	(3,360)	$	125,993	$	(7,819)
U.S. Treasury securities	U.S. Treasury securities	54,539		(61)		—		—		54,539		(61)		U.S. Treasury securities	22,181		(1,328)		16,362		(987)		38,543		(2,315)
U.S. governmental agency securities	U.S. governmental agency securities	42,454		(43)		—		—		42,454		(43)		U.S. governmental agency securities	930		(69)		10,479		(521)		11,409		(590)
Municipal securities		5,114		(13)		—		—		5,114		(13)

Total long-term AFS securities	Total long-term AFS securities	$	230,422	$	(391)	$	—	$	—	$	230,422	$	(391)	Total long-term AFS securities	$	96,079	$	(5,856)	$	79,866	$	(4,868)	$	175,945	$	(10,724)


		December 27, 2020													December 26, 2021
		Less than 12 Months				12 Months or Greater				Total					Less than 12 Months				12 Months or Greater				Total
(In thousands)	(In thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		(In thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses

Short-term AFS securities	Short-term AFS securities													Short-term AFS securities
Corporate debt securities														Corporate debt securities	$	53,148	$	(69)	$	—	$	—	$	53,148	$	(69)
U.S. Treasury securities	U.S. Treasury securities	$	20,133	$	(3)	$	—	$	—	$	20,133	$	(3)	U.S. Treasury securities	61,018		(43)		—		—		61,018		(43)
Corporate debt securities		33,735		(8)		—		—		33,735		(8)
U.S. governmental agency securities		4,999		(2)		8,749		(1)		13,748		(3)
Municipal securities														Municipal securities	1,998		(2)		—		—		1,998		(2)

Total short-term AFS securities	Total short-term AFS securities	$	58,867	$	(13)	$	8,749	$	(1)	$	67,616	$	(14)	Total short-term AFS securities	$	116,164	$	(114)	$	—	$	—	$	116,164	$	(114)
Long-term AFS securities	Long-term AFS securities													Long-term AFS securities
Corporate debt securities	Corporate debt securities	$	6,717	$	(5)	$	—	$	—	$	6,717	$	(5)	Corporate debt securities	$	224,022	$	(1,858)	$	—	$	—	$	224,022	$	(1,858)

U.S. Treasury securities														U.S. Treasury securities	119,146		(549)		—		—		119,146		(549)
U.S. governmental agency securities	U.S. governmental agency securities	26,236		(13)		—		—		26,236		(13)		U.S. governmental agency securities	39,246		(252)		—		—		39,246		(252)
Municipal securities	Municipal securities	4,984		(10)		—		—		4,984		(10)		Municipal securities	13,933		(61)		—		—		13,933		(61)
Total long-term AFS securities	Total long-term AFS securities	$	37,937	$	(28)	$	—	$	—	$	37,937	$	(28)	Total long-term AFS securities	$	396,347	$	(2,720)	$	—	$	—	$	396,347	$	(2,720)

We assess AFS securities on a quarterly basis or more often if a potential loss-triggering event occurs.

As of September ~~26, 2021~~25, 2022, and December ~~27, 2020,~~26, 2021, we did not intend to sell and it was not likely that we would be required to sell these investments before recovery of their amortized cost basis, which may be at maturity. Unrealized losses related to these investments are primarily due to interest rate fluctuations as opposed to changes in credit quality. Therefore, as of September ~~26, 2021~~25, 2022, and December ~~27, 2020,~~26, 2021, we have recognized no losses or allowance for credit losses related to AFS securities.

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

As of September ~~26, 2021, and December 27, 2020,~~25, 2022, our short-term and long-term marketable securities had remaining maturities of less than one month to 12 months and 13 months to 3630 months, respectively. See Note 8 for more information regarding the fair value of our marketable securities.

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

The Athletic Acquisition

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

On February 1, 2022, the Company acquired The Athletic in an all-cash transaction. The consideration paid of approximately $550 million was funded from cash on hand and included $523.5 million which we determined to be the purchase price for assets acquired and liabilities assumed, and $26.7 million paid in connection with the acceleration of The Athletic stock options. The stock options acceleration is included in Acquisition-related costs in our Condensed Consolidated Statements of Operations for the nine months ended September 25, 2022.

The purchase price allocation has been prepared on a preliminary basis. As additional information becomes available, the Company may revise the allocation to certain assets and liabilities, including tax estimates. The Company will finalize the acquisition accounting within the required measurement period of one year.

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


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

Total purchase price	$	523,466

(1) Included in Miscellaneous assets in our Condensed Consolidated Balance Sheets.

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

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

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

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

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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

The following unaudited pro forma summary presents consolidated information of the Company, including The Athletic, as if the business combination had occurred on December 28, 2020, the first day of fiscal nine months ended September 26, 2021, which is the earliest period presented herein:


	For the Quarters Ended				For the Nine Months Ended
(In thousands)	September 25, 2022		September 26, 2021		September 25, 2022		September 26, 2021
Revenue	$	547,068	$	526,581	$	1,647,320	$	1,528,513
Net income	37,793		40,800		127,615		71,855

The pro forma adjustments include (1) transaction costs and other one-time non-recurring costs that reduced expenses by $47.8 million for the nine months ended September 25, 2022 and increased expenses by $47.8 million for the nine months ended September 26, 2021, (2) recognition of additional amortization related to the intangible assets acquired, (3) alignment of accounting policies, and (4) recognition of the estimated income tax impact of the pro forma adjustments. The pro forma summary does not reflect cost savings or operating synergies expected to result from the acquisition. These pro forma results are illustrative only and not indicative of the actual results of operations that would have been achieved nor are they indicative of future results of operations.

Goodwill and Intangibles

The changes in the carrying amount of goodwill as of September ~~26, 2021,~~25, 2022, and since December ~~27, 2020,~~26, 2021, were as follows:


~~(In thousands)~~	~~Total Company~~
~~Balance as of December 27, 2020~~	$	~~171,657~~
~~Foreign currency translation~~	~~(2,803)~~
~~Balance as of September 26, 2021~~	$	~~168,854~~


(In thousands)	The New York Times Group		The Athletic		Total
Balance as of December 27, 2020	$	171,657	$	—	$	171,657
Foreign currency translation	(5,297)		—		(5,297)
Balance as of December 26, 2021	166,360		—		166,360
Foreign currency translation	(9,779)		—		(9,779)
Acquisition of The Athletic	—		249,792		249,792
Balance as of September 25, 2022	$	156,581	$	249,792	$	406,373

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

As of September 25, 2022, the gross book value and accumulated amortization of acquired intangible assets from the acquisition of The Athletic were as follows:


(In thousands)	Gross book value		Accumulated amortization		Net book value
Trademark	$	160,000	$	(5,333)	$	154,667
Existing subscriber base	135,000		(7,500)		127,500
Developed technology	35,000		(4,667)		30,333
Content archive	2,000		(667)		1,333
Total	$	332,000	$	(18,167)	$	313,833

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Amortization expense for intangible assets from the acquisition of The Athletic included in Depreciation and amortization in our Condensed Consolidated Statements of Operations for the third quarter and first nine months of 2022 was $6.8 million and $18.2 million, respectively. The estimated aggregate amortization expense for the remainder of 2022 and each of the following fiscal years ending December 31 is presented below:


(In thousands)
Remainder of 2022	$	6,813
2023	27,250
2024	26,333
2025	26,250
2026	26,250
Thereafter	200,937
Total amortization expense	$	313,833

The aggregate carrying amount of intangible assets of ~~$14.6~~$328.7 million, which includes an indefinite-lived intangible of $9.0 million, is included in ~~Miscellaneous~~Intangible assets, net in our Condensed Consolidated Balance ~~Sheets~~Sheet as of September ~~26, 2021.~~25, 2022.

NOTE 6. INVESTMENTS

Non-Marketable Equity Securities

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

As of September ~~26, 2021,~~25, 2022, and December ~~27, 2020,~~26, 2021, non-marketable equity securities included in Miscellaneous assets in our Condensed Consolidated Balance Sheets had a carrying value of ~~$27.4~~$29.8 million and ~~$20.9~~$27.9 million, respectively. The carrying value includes $15.3 million of unrealized gains as of September 26, 2021. During the third quarter of 2021, we recorded a $27.2 million gain related to a non-marketable equity investment transaction. The gain consists of a $15.2 million realized gain due to the partial sale of the investment and a $11.9 million unrealized gain due to the mark to market of the remaining investment. During the first nine months of 2020, we recorded a $10.1 million gain related to a non-marketable equity investment transaction. The gain consists of a $2.5 million realized gain due to the partial sale of the investment and a $7.6 million unrealized gain due to the mark to market of the remaining investment.

NOTE 7. OTHER

Capitalized Computer Software Costs

Amortization of capitalized computer software costs included in Depreciation and amortization in our Condensed Consolidated Statements of Operations was $2.0 million and $2.1 million ~~and $3.9 million in~~for the third quarters of 2022 and 2021, respectively, and ~~2020, respectively,~~$5.9 million and $7.1 million ~~and $11.6 million in~~for the first nine months of ~~2021~~2022 and ~~2020,~~2021, respectively.

Interest income and other, net

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


		For the Quarters Ended				For the Nine Months Ended					For the Quarters Ended				For the Nine Months Ended
(In thousands)	(In thousands)	September 26, 2021		September 27, 2020		September 26, 2021		September 27, 2020		(In thousands)	September 25, 2022		September 26, 2021		September 25, 2022		September 26, 2021
Interest income and other expense, net	Interest income and other expense, net	$	1,598	$	3,720	$	5,342	$	10,650	Interest income and other expense, net	$	1,817	$	1,598	$	4,574	$	5,342
Gain on non-marketable equity investment (1)		27,156		—		27,156		10,074
Gain on the sale of land (1)										Gain on the sale of land (1)	—		—		34,227		—
Gain on non-marketable equity investment (2)										Gain on non-marketable equity investment (2)	—		27,156		—		27,156
Interest expense	Interest expense	(185)		(183)		(545)		(547)		Interest expense	(238)		(185)		(543)		(545)

Total interest income and other, net	Total interest income and other, net	$	28,569	$	3,537	$	31,953	$	20,177	Total interest income and other, net	$	1,579	$	28,569	$	38,258	$	31,953

(1) On December 9, 2020, we entered into an agreement to lease and subsequently sell approximately four acres of land at our printing and distribution facility in College Point, N.Y., subject to certain conditions. The lease commenced on April 11, 2022. At the time of the lease expiration in February 2025, we will sell the parcel to the lessee for approximately $36 million. The transaction is accounted for as a sales-type lease and as a result, we recognized a gain of approximately $34 million (net of commissions) at the time of lease commencement.

(2) Represents gains related to a non-marketable equity investment transaction.

1315

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Restricted Cash

A reconciliation of cash, cash equivalents and restricted cash as of September ~~26, 2021,~~25, 2022, and December ~~27, 2020,~~26, 2021, from the Condensed Consolidated Balance Sheets to the Condensed Consolidated Statements of Cash Flows is as follows:


(In thousands)	(In thousands)	September 26, 2021		December 27, 2020		(In thousands)	September 25, 2022		December 26, 2021
Reconciliation of cash, cash equivalents and restricted cash	Reconciliation of cash, cash equivalents and restricted cash					Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents	Cash and cash equivalents	$	323,990	$	286,079	Cash and cash equivalents	$	190,050	$	319,973
Restricted cash included within other current assets		—		686

Restricted cash included within miscellaneous assets	Restricted cash included within miscellaneous assets	14,332		15,199		Restricted cash included within miscellaneous assets	13,668		14,333
Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows	Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows	$	338,322	$	301,964	Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows	$	203,718	$	334,306

Substantially all of the amount included in restricted cash is set aside to collateralize workers’ compensation obligations.

Revolving Credit Facility

In September 2019, the Company entered into a $250.0 million five-year unsecured revolving credit facility (the “2019 Credit Facility”). On July 27, 2022, the Company entered into an amendment and restatement of the 2019 Credit Facility that, among other changes, increased the committed amount to $350.0 million and extended the maturity date to July 27, 2027 (as amended and restated, the “Credit Facility”). Certain of the Company’s domestic subsidiaries have guaranteed the Company’s obligations under the Credit Facility. Borrowings under the Credit Facility bear interest at specified rates based on our utilization and consolidated leverage ratio. The Credit Facility contains various customary affirmative and negative covenants. In addition, the Company is obligated to pay a quarterly unused commitment fee at an annual rate of 0.20%.

As of September ~~26, 2021,~~25, 2022, there ~~were no~~was approximately $0.6 million in outstanding ~~borrowings under~~letters of credit and the ~~Credit Facility and~~remaining committed amount remains available. As of September 25, 2022, the Company was in compliance with the financial covenants contained in the ~~documents governing the~~ Credit Facility.

Severance Costs

We recognized ~~$0.5~~$2.0 million in severance costs in the third quarter of ~~2021~~2022 and no$4.7 million in severance costs in the first nine months of 2022. We recognized $0.5 million severance costs in the third quarter of ~~2020,~~2021 and $0.9 million ~~and $6.7 million~~in severance costs in the first nine months of ~~2021 and 2020, respectively.~~2021. These costs are recorded in General and administrative costs in our Condensed Consolidated Statements of Operations.

We had a severance liability of ~~$2.6~~$5.2 million and ~~$5.0~~$2.1 million included in Accrued expenses and other in our Condensed Consolidated Balance Sheets as of September 25, 2022, and December 26, 2021, ~~and December 27, 2020,~~ respectively.

Acquisition-Related Costs

The Company incurred $34.7 million of acquisition-related costs for the nine months ended September 25, 2022. 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.

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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 ~~26, 2021,~~25, 2022, and December ~~27, 2020:~~26, 2021:


(In thousands)	(In thousands)	September 26, 2021								December 27, 2020								(In thousands)	September 25, 2022								December 26, 2021
		Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3			Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:	Assets:																	Assets:
Short-term AFS securities (1)	Short-term AFS securities (1)																	Short-term AFS securities (1)
U.S. Treasury securities	U.S. Treasury securities	$	109,592	$	—	$	109,592	$	—	$	79,503	$	—	$	79,503	$	—	U.S. Treasury securities	$	40,424	$	—	$	40,424	$	—	$	149,548	$	—	$	149,548	$	—
Corporate debt securities																		Corporate debt securities	37,289		—		37,289		—		107,334		—		107,334		—
Certificates of deposit	Certificates of deposit	109,253		—		109,253		—		36,525		—		36,525		—		Certificates of deposit	—		—		—		—		55,551		—		55,551		—
Corporate debt securities		100,974		—		100,974		—		130,301		—		130,301		—
U.S. governmental agency securities	U.S. governmental agency securities	19,974		—		19,974		—		25,171		—		25,171		—		U.S. governmental agency securities	16,230		—		16,230		—		3,500		—		3,500		—
Municipal securities																		Municipal securities	8,677		—		8,677		—		3,997		—		3,997		—
Commercial paper	Commercial paper	18,021		—		18,021		—		37,580		—		37,580		—		Commercial paper	—		—		—		—		21,145		—		21,145		—
Total short-term AFS securities	Total short-term AFS securities	$	357,814	$	—	$	357,814	$	—	$	309,080	$	—	$	309,080	$	—	Total short-term AFS securities	$	102,620	$	—	$	102,620	$	—	$	341,075	$	—	$	341,075	$	—
Long-term AFS securities (1)	Long-term AFS securities (1)																	Long-term AFS securities (1)
Corporate debt securities	Corporate debt securities	$	234,291	$	—	$	234,291	$	—	$	135,934	$	—	$	135,934	$	—	Corporate debt securities	$	125,993	$	—	$	125,993	$	—	$	241,055	$	—	$	241,055	$	—
U.S. Treasury securities	U.S. Treasury securities	71,861		—		71,861		—		97,565		—		97,565		—		U.S. Treasury securities	38,543		—		38,543		—		119,146		—		119,146		—
U.S. governmental agency securities	U.S. governmental agency securities	42,454		—		42,454		—		48,348		—		48,348		—		U.S. governmental agency securities	11,409		—		11,409		—		39,246		—		39,246		—
Municipal securities	Municipal securities	12,115		—		12,115		—		4,984		—		4,984		—		Municipal securities	—		—		—		—		13,933		—		13,933		—
Total long-term AFS securities	Total long-term AFS securities	$	360,721	$	—	$	360,721	$	—	$	286,831	$	—	$	286,831	$	—	Total long-term AFS securities	$	175,945	$	—	$	175,945	$	—	$	413,380	$	—	$	413,380	$	—
Liabilities:	Liabilities:																	Liabilities:
Deferred compensation (2)(3)	Deferred compensation (2)(3)	$	19,998	$	19,998	$	—	$	—	$	22,245	$	22,245	$	—	$	—	Deferred compensation (2)(3)	$	13,609	$	13,609	$	—	$	—	$	21,101	$	21,101	$	—	$	—
Contingent consideration	Contingent consideration	$	7,450	$	—	$	—	$	7,450	$	8,431	$	—	$	—	$	8,431	Contingent consideration	$	5,858	$	—	$	—	$	5,858	$	7,450	$	—	$	—	$	7,450

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

(3) The Company invests the assets associated with the deferred compensation liability in life insurance products. Our investments in life insurance products are included in Miscellaneous assets in our Condensed Consolidated Balance Sheets, and were ~~$51.2~~$47.0 million as of September ~~26, 2021,~~25, 2022, and ~~$49.2~~$52.5 million as of December ~~27, 2020.~~26, 2021. 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.

1517

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Level 3 Liabilities

The contingent consideration liability is related to the 2020 acquisition of substantially all the assets and certain liabilities of Serial Productions, LLC (the “Serial acquisition”) and represents contingent payments based on the achievement of certain operational targets, as defined in the acquisition agreement, over the five years following the acquisition. The Company estimated the fair value using a probability-weighted discounted cash flow model. The estimate of the fair value of contingent consideration requires subjective assumptions to be made regarding probabilities assigned to operational targets and the discount rate. As the fair value is based on significant unobservable inputs, this is a Level 3 liability.

The following table presents changes in the contingent consideration balances for the ~~quarter~~quarters and nine months ended September 25, 2022, and September 26, 2021:

Quarter ended Nine months ended
(In thousands) September 26, 2021 September 27, 2020 September 26, 2021 September 27, 2020
Balance at the beginning of the period $ 7,450 $ 9,293 $ 8,431 $ 9,293
Payments — (862) (862) (862)
Fair value adjustments (1)
— — (119) —
Contingent consideration at the end of the period $ 7,450 $ 8,431 $ 7,450 $ 8,431

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


	Quarters Ended				Nine Months Ended
(In thousands)	September 25, 2022		September 26, 2021		September 25, 2022		September 26, 2021
Balance at the beginning of the period	$	5,858	$	7,450	$	7,450	$	8,431

Payments	—		—		(1,724)		(862)
Fair value adjustments (1)	—		—		132		(119)
Contingent consideration at the end of the period	$	5,858	$	7,450	$	5,858	$	7,450
(1) Fair value adjustments are included in General and administrative costs in our Condensed Consolidated Statements of Operations.

The remaining contingent consideration balances as of September 25, 2022, and December 26, 2021, ~~and December 27, 2020,~~ of ~~$7.5~~$5.9 million and ~~$8.4~~$7.5 million, respectively, are included in Accrued expenses and other, for the current portion of the liability, and Other non-current liabilities, for the long-term portion of the liability, in our Condensed Consolidated Balance Sheets.

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 9. PENSION AND OTHER POSTRETIREMENT BENEFITS

Pension

Single-Employer Plans

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

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

The components of net periodic pension cost were as follows:


		For the Quarters Ended													For the Quarters Ended
		September 26, 2021						September 27, 2020							September 25, 2022						September 26, 2021
(In thousands)	(In thousands)	Qualified Plans		Non- Qualified Plans		All Plans		Qualified Plans		Non- Qualified Plans		All Plans		(In thousands)	Qualified Plans		Non- Qualified Plans		All Plans		Qualified Plans		Non- Qualified Plans		All Plans
Service cost	Service cost	$	2,276	$	—	$	2,276	$	2,608	$	—	$	2,608	Service cost	$	2,882	$	—	$	2,882	$	2,276	$	—	$	2,276
Interest cost	Interest cost	7,630		1,087		8,717		11,742		1,648		13,390		Interest cost	8,837		1,284		10,121		7,630		1,087		8,717
Expected return on plan assets	Expected return on plan assets	(12,678)		—		(12,678)		(17,741)		—		(17,741)		Expected return on plan assets	(13,807)		—		(13,807)		(12,678)		—		(12,678)
Amortization of actuarial loss	Amortization of actuarial loss	5,056		1,821		6,877		5,655		1,521		7,176		Amortization of actuarial loss	3,266		1,643		4,909		5,056		1,821		6,877
Amortization of prior service credit	Amortization of prior service credit	(486)		—		(486)		(486)		—		(486)		Amortization of prior service credit	(486)		—		(486)		(486)		—		(486)

Net periodic pension cost ~~(1)~~	Net periodic pension cost ~~(1)~~	$	1,798	$	2,908	$	4,706	$	1,778	$	3,169	$	4,947	Net periodic pension cost ~~(1)~~	$	692	$	2,927	$	3,619	$	1,798	$	2,908	$	4,706


	For the Nine Months Ended
	September 25, 2022						September 26, 2021
(In thousands)	Qualified Plans		Non- Qualified Plans		All Plans		Qualified Plans		Non- Qualified Plans		All Plans
Service cost	$	8,645	$	—	$	8,645	$	6,828	$	—	$	6,828
Interest cost	26,512		3,853		30,365		22,888		3,263		26,151
Expected return on plan assets	(41,422)		—		(41,422)		(38,033)		—		(38,033)
Amortization of actuarial loss	9,799		4,929		14,728		15,169		5,463		20,632
Amortization of prior service credit	(1,459)		—		(1,459)		(1,458)		—		(1,458)

Net periodic pension cost	$	2,075	$	8,782	$	10,857	$	5,394	$	8,726	$	14,120

During the first nine months of 2022 and 2021, we made pension contributions of $7.5 million and $6.5 million, respectively, to the APP. We expect to make contractual contributions in 2022 of approximately $10 million, which more than satisfy minimum funding requirements.

Multiemployer Plans

During the third quarter of 2022 we recorded a gain of $7.1 million from a multiemployer pension liability adjustment, which is included in Gain from pension liability adjustment in our Condensed Consolidated Statements of Operations.

1619

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

For the Nine Months Ended
September 26, 2021 September 27, 2020
(In thousands) Qualified
Plans Non-
Qualified
Plans All
Plans Qualified
Plans Non-
Qualified
Plans All
Plans
Service cost $ 6,828 $ — $ 6,828 $ 7,822 $ — $ 7,822
Interest cost 22,888 3,263 26,151 35,226 4,945 40,171
Expected return on plan assets (38,033) — (38,033) (53,222) — (53,222)
Amortization of actuarial loss 15,169 5,463 20,632 16,966 4,564 21,530
Amortization of prior service credit (1,458) — (1,458) (1,459) — (1,459)
Net periodic pension cost (1)
$ 5,394 $ 8,726 $ 14,120 $ 5,333 $ 9,509 $ 14,842

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

During the first nine months of 2021 and 2020, we made pension contributions of $6.5 million and $6.9 million, respectively, to the APP. We expect to make contractual contributions in 2021 of approximately $9 million, which more than satisfy minimum funding requirements.

Other Postretirement Benefits

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

For the Quarters Ended For the Nine Months Ended
(In thousands) September 26, 2021 September 27, 2020 September 26, 2021 September 27, 2020
Service cost $ 14 $ 7 $ 40 $ 21
Interest cost 141 257 423 770
Amortization of actuarial loss 851 763 2,555 2,289
Amortization of prior service credit (837) (1,099) (2,509) (3,378)
Net periodic postretirement benefit cost/(income) (1)
$ 169 $ (72) $ 509 $ (298)

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


	For the Quarters Ended				For the Nine Months Ended
(In thousands)	September 25, 2022		September 26, 2021		September 25, 2022		September 26, 2021
Service cost	$	11	$	14	$	34	$	40
Interest cost	183		141		548		423
Amortization of actuarial loss	823		851		2,470		2,555
Amortization of prior service credit	—		(837)		(368)		(2,509)
Net periodic postretirement benefit cost	$	1,017	$	169	$	2,684	$	509

NOTE 10. INCOME TAXES

The Company had income tax expense of $14.2 million and $39.2 million in the third quarter and first nine months of 2022, respectively. The Company had income tax expense of $20.3 million and $48.0 million in the third quarter and first nine months of 2021, respectively. The ~~Company had income~~Company’s effective tax ~~expense of $7.3 million~~rates from continuing operations were 28.0% and ~~$19.1 million in~~27.5% for the third quarter and first nine months of ~~2020,~~2022, respectively. The Company’s effective tax rates from continuing operations were 27.1% and 24.2% for the third quarter and first nine months of 2021, respectively. The ~~Company’s effective tax rates from continuing operations were 17.8% and 17.5% for the third quarter and first nine months of 2020, respectively. The increase~~decrease in income tax expense in the third quarter ~~and first nine months~~ of ~~2021 is~~2022 was primarily due to ~~higher~~lower income from continuing operations in ~~those periods.~~the third quarter of 2022. The ~~Company received~~decrease in income tax expense in the first nine months of 2022 was primarily due to lower income from continuing operations in the first nine months of 2022. The increase in the effective tax rate in the first nine months of 2022 was primarily due to a ~~tax~~lower benefit in the first ~~quarter~~nine months of ~~2021 and in the first and third quarters of 2020~~2022 from stock price appreciation on stock-based awards that settled in the ~~quarter, which~~respective nine-month periods.

Beginning in 2022, the Tax Cuts and Jobs Act of 2017 eliminates the option to deduct research and development expenditures immediately in the ~~case~~year incurred and instead requires taxpayers to capitalize and amortize such expenditures over five years. Although it is possible that Congress may defer, modify, or repeal this provision, potentially with retroactive effect, we have no assurance that Congress will take any action with respect to this provision. If the 2022 effective date remains in place, our initial assessment is that our cash from operations will be negatively impacted by approximately $50 million in 2022 and our net deferred tax assets will increase by a similar amount. The actual impact on fiscal 2022 cash from operations will depend on the amount of ~~2020, resulted in lower-than-statutory tax rates in~~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 ~~third quarter and first nine months~~U.S. Treasury, among other factors.

On August 16, 2022, the President signed the Inflation Reduction Act of ~~2020.~~2022 (the “IRA”) into law. We do not expect the tax-related provisions of the IRA to have a material impact on our consolidated financial statements.

NOTE 11. EARNINGS PER SHARE

We compute earnings per share 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 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.

~~THE NEW YORK TIMES COMPANY~~

~~NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

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 de minimis in the third quarter and first nine months of 2022, respectively, and resulted primarily from the dilutive effect of certain restricted stock units. The difference between basic and diluted shares was approximately 0.5 million and 0.6 million in the third quarter and first nine months of 2021, ~~respectively, and 1.0 million and 1.1 million in the third quarter and first nine months of 2020, respectively,~~respectively. In 2021, dilution resulted primarily from the dilutive effect of certain ~~stock options,~~ performance awards, ~~and~~ restricted stock ~~units.~~units and stock options.

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

There were approximately 1.6 million and 1.1 million restricted stock units excluded from the computation of diluted earnings per share in the third quarter and first nine months of 2022, respectively, because they were anti-dilutive. There were no anti-dilutive restricted stock units excluded from the computation of diluted earnings per share in the third quarter and first

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

nine months of 2021. There were no anti-dilutive stock options or stock-settled long-term performance awards ~~or restricted stock units~~ excluded from the computation of diluted earnings per share in the third quarters and first nine months of ~~2021~~2022 and ~~2020, respectively.~~2021.

NOTE 12. SUPPLEMENTAL STOCKHOLDERS’ EQUITY INFORMATION

In ~~2015,~~February 2022, the Board of Directors ~~authorized up to $101.1~~approved a $150 million ~~of repurchases of shares of the Company’s~~ Class A Common ~~Stock. As of September 26, 2021, repurchases under this~~Stock repurchase program. The authorization ~~totaled $84.9 million (excluding commissions) and $16.2 million remained. Our Board of Directors has authorized us to purchase~~provides that Class A shares may be purchased from time to time ~~subject to~~as market conditions ~~and~~warrant, through open market purchases, privately negotiated transactions or other ~~factors.~~means, including Rule 10b5-1 trading plans. There is no expiration date with respect to this authorization. ~~There have been no purchases~~

As of September 25, 2022, repurchases under this authorization ~~since 2016.~~totaled approximately $79.8 million (excluding commissions) and approximately $70.2 million remained.

The following table summarizes the changes in AOCI by component as of September ~~26, 2021:~~25, 2022:


(In thousands)	(In thousands)	Foreign Currency Translation Adjustments		Funded Status of Benefit Plans		Net Unrealized Gain on Available-For-Sale Securities		Total Accumulated Other Comprehensive Loss		(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 27, 2020		$	8,386	$	(421,698)	$	3,131	$	(410,181)
Other comprehensive income before reclassifications, before tax		(3,421)		—		(2,616)		(6,037)
Balance as of December 26, 2021										Balance as of December 26, 2021	$	3,754	$	(385,680)	$	(1,276)	$	(383,202)
Other comprehensive loss before reclassifications, before tax										Other comprehensive loss before reclassifications, before tax	(13,219)		—		(11,458)		(24,677)
Amounts reclassified from accumulated other comprehensive loss, before tax	Amounts reclassified from accumulated other comprehensive loss, before tax	—		19,220		—		19,220		Amounts reclassified from accumulated other comprehensive loss, before tax	—		15,371		—		15,371
Income tax (benefit)/expense	Income tax (benefit)/expense	(914)		5,146		(700)		3,532		Income tax (benefit)/expense	(3,518)		4,125		(3,074)		(2,467)
Net current-period other comprehensive (loss)/ income, net of tax	Net current-period other comprehensive (loss)/ income, net of tax	(2,507)		14,074		(1,916)		9,651		Net current-period other comprehensive (loss)/ income, net of tax	(9,701)		11,246		(8,384)		(6,839)

Balance as of September 26, 2021		$	5,879	$	(407,624)	$	1,215	$	(400,530)
Balance as of September 25, 2022										Balance as of September 25, 2022	$	(5,947)	$	(374,434)	$	(9,660)	$	(390,041)

The following table summarizes the reclassifications from AOCI for the nine months ended September ~~26, 2021:~~25, 2022:

(In thousands)

Detail about accumulated other comprehensive loss components

Amounts reclassified from accumulated other comprehensive loss

Affects line item in the statement where net income is presented

Funded status of benefit plans:

Amortization of prior service credit(1)

~~(3,967)~~(1,827)

Other components of net periodic benefit costs

Amortization of actuarial loss(1)

~~23,187~~17,198

Other components of net periodic benefit costs

Total reclassification, before tax(2)

~~19,220~~15,371

Income tax expense

~~5,146~~4,125

Income tax expense

Total reclassification, net of tax

~~14,074~~11,246

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

(2) There were no reclassifications relating to noncontrolling interest for the quarter ended September 25, 2022.

Total stock-based compensation expense included in the ~~computation~~Condensed Consolidated Statements of ~~net periodic benefit cost for pension and other postretirement benefits. See Note 9 for more information.~~Operations is as follows:


	For the Quarters Ended				For the Nine Months Ended
(In thousands)	September 25, 2022		September 26, 2021		September 25, 2022		September 26, 2021
Cost of revenue	$	2,028	$	1,325	$	5,647	$	3,746
Sales and marketing	337		293		1,006		917
Product development	2,986		852		7,586		2,528
General and administrative	3,912		2,579		11,060		7,196
Total stock-based compensation expense	$	9,263	$	5,049	$	25,299	$	14,387

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

~~(2)~~ ~~There were no reclassifications relating to noncontrolling interest for thenine monthsended September 26, 2021.~~

NOTE 13. SEGMENT INFORMATION

The Company identifies a business as an operating segment if: (i) it engages in business activities from which it may earn revenues and incur expenses; (ii) its operating results are regularly reviewed by the ~~Chief Operating Decision Maker (who~~

~~THE NEW YORK TIMES COMPANY~~

~~NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

~~is the~~ Company’s President and Chief Executive ~~Officer)~~Officer (who is the Company’s Chief Operating Decision Maker) to make decisions about resources to be allocated to the segment and assess its performance; and (iii) it has available discrete financial information.

On February 1, 2022, the Company acquired The ~~Company has determined that it has 1 reportable segment. Therefore, all required segment information can be found~~Athletic (see Note 5). Beginning with the first quarter of 2022, the results of The Athletic have been included in the Company's Condensed Consolidated Financial ~~Statements.~~Statements beginning February 1, 2022. The Athletic is a separate reportable segment of the Company. As a result, beginning in the first quarter of 2022, the Company has two reportable segments: The New York Times Group 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.

Subscription revenue from our digital subscription package (or “bundle”) is allocated to The New York Times Group 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 The New York Times Group and The Athletic based on a historical actual percentage of these costs to bundle revenue.

The following tables present segment information:


	For the Quarters Ended								For the Nine Months Ended
(In thousands)	September 25, 2022			September 26, 2021			% Change		September 25, 2022			September 26, 2021			% Change
Revenues
The New York Times Group	$	523,570		$	509,103		2.8	%	$	1,584,970		$	1,480,645		7.0	%
The Athletic	24,110			—			*		55,815			—			*
Total revenues	$	547,680		$	509,103		7.6	%	$	1,640,785		$	1,480,645		10.8	%
Adjusted operating costs
The New York Times Group	$	445,020		$	444,050		0.2	%	$	1,349,880		$	1,254,582		7.6	%
The Athletic	33,683			—			*		84,806			—			*
Total adjusted operating costs	$	478,703		$	444,050		7.8	%	$	1,434,686		$	1,254,582		14.4	%
Adjusted operating profit
The New York Times Group	$	78,550		$	65,053		20.7	%	$	235,090		$	226,063		4.0	%
The Athletic	(9,573)			—			*		(28,991)			—			*
Total adjusted operating profit	$	68,977		$	65,053		6.0	%	$	206,099		$	226,063		(8.8)	%
Adjusted operating profit margin % - New York Times Group	15.0		%	12.8		%	220 bps		14.8		%	15.3		%	(50) 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						For the Nine Months Ended
(In thousands)	September 25, 2022		September 26, 2021		% Change		September 25, 2022		September 26, 2021		% Change
The New York Times Group
Subscription	$	360,997	$	342,609	5.4	%	$	1,089,218	$	1,010,910	7.7	%
Advertising	108,134		110,887		(2.5)	%	337,455		320,777		5.2	%
Other	54,439		55,607		(2.1)	%	158,297		148,958		6.3	%
Total	$	523,570	$	509,103	2.8	%	$	1,584,970	$	1,480,645	7.0	%
The Athletic
Subscription	$	21,675	$	—	*		$	49,052	$	—	*
Advertising	2,333		—		*		6,661		—		*
Other	102		—		*		102		—		*
Total	$	24,110	$	—	*		$	55,815	$	—	*
The New York Times Company
Subscription	$	382,672	$	342,609	11.7	%	$	1,138,270	$	1,010,910	12.6	%
Advertising	110,467		110,887		(0.4)	%	344,116		320,777		7.3	%
Other	54,541		55,607		(1.9)	%	158,399		148,958		6.3	%
Total	$	547,680	$	509,103	7.6	%	$	1,640,785	$	1,480,645	10.8	%
* 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)


Adjusted operating costs (operating costs before depreciation and amortization, severance and multiemployer pension plan withdrawal costs) detail by segment
	For the Quarters Ended						For the Nine Months Ended
(In thousands)	September 25, 2022		September 26, 2021		% Change		September 25, 2022		September 26, 2021		% Change
The New York Times Group
Cost of revenue (excluding depreciation and amortization)	$	274,945	$	256,978	7.0	%	$	824,405	$	759,333	8.6	%
Sales and marketing	57,326		83,767		(31.6)	%	189,970		197,475		(3.8)	%
Product development	46,273		40,638		13.9	%	138,225		119,280		15.9	%
Adjusted general and administrative (1)	66,476		62,667		6.1	%	197,280		178,494		10.5	%
Total	$	445,020	$	444,050	0.2	%	$	1,349,880	$	1,254,582	7.6	%
The Athletic
Cost of revenue (excluding depreciation and amortization)	$	19,911	$	—	*		$	52,399	$	—	*
Sales and marketing	7,406		—		*		15,119		—		*
Product development	4,201		—		*		10,504		—		*
Adjusted general and administrative (2)	2,165		—		*		6,784		—		*
Total	$	33,683	$	—	*		$	84,806	$	—	*
The New York Times Company
Cost of revenue (excluding depreciation and amortization)	$	294,856	$	256,978	14.7	%	$	876,804	$	759,333	15.5	%
Sales and marketing	64,732		83,767		(22.7)	%	205,089		197,475		3.9	%
Product development	50,474		40,638		24.2	%	148,729		119,280		24.7	%
Adjusted general and administrative	68,641		62,667		9.5	%	204,064		178,494		14.3	%
Total	$	478,703	$	444,050	7.8	%	$	1,434,686	$	1,254,582	14.4	%
(1) Excludes severance of $2.0 million and $4.5 million for the quarter and nine months ended September 25, 2022, respectively, and multiemployer pension withdrawal costs of $1.3 million and $3.7 million for the quarter and nine months ended September 25, 2022, respectively. Excludes severance of $0.5 million and $0.9 million for the quarter and nine months ended September 26, 2021, respectively, and multiemployer pension withdrawal costs of $1.3 million and $3.9 million for the quarter and nine months ended September 26, 2021, respectively.
(2) Excludes $0.2 million of severance for the nine months ended September 25, 2022.
* 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						For the Nine Months Ended
(In thousands)	September 25, 2022		September 26, 2021		% Change		September 25, 2022		September 26, 2021		% Change
Operating costs	$	503,792	$	460,127	9.5	%	$	1,504,240	$	1,302,895	15.5	%
Less:
Depreciation and amortization	21,760		14,326		51.9	%	61,150		43,529		40.5	%
Severance	2,010		476		*		4,670		882		*
Multiemployer pension plan withdrawal costs	1,319		1,275		3.5	%	3,734		3,902		(4.3)	%
Adjusted operating costs	$	478,703	$	444,050	7.8	%	$	1,434,686	$	1,254,582	14.4	%
* 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						For the Nine Months Ended
(In thousands)	September 25, 2022		September 26, 2021		% Change		September 25, 2022		September 26, 2021		% Change
Operating profit	$	51,015	$	48,976	4.2	%	$	108,960	$	173,919	(37.4)	%
Add:
Depreciation and amortization	21,760		14,326		51.9	%	61,150		43,529		40.5	%
Severance	2,010		476		*		4,670		882		*
Multiemployer pension plan withdrawal costs	1,319		1,275		3.5	%	3,734		3,902		(4.3)	%
Special items:
Acquisition-related costs	—		—		—		34,712		—		*
Lease termination charge	—		—		*		—		3,831		*
Gain from pension liability adjustment	(7,127)		—		*		(7,127)		—		*
Adjusted operating profit	$	68,977	$	65,053	6.0	%	$	206,099	$	226,063	(8.8)	%
* Represents a change equal to or in excess of 100% or not meaningful.

NOTE 14. CONTINGENT LIABILITIES

Legal Proceedings

We are involved in various legal actions incidental to our business that are now pending against us. These actions generally have damage claims that are greatly in excess of the payments, if any, that we would be required to 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~~

On September 30, 2021, our Board of Directors approved a quarterly dividend of $0.07 per share on our Class A and Class B common stock that was paid on October 22, 2021, to all stockholders of record as of the close of business on October 11, 2021.

1925

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

EXECUTIVE OVERVIEW

We are a global media organization that includes digital and print products and related businesses. WeOn February 1, 2022, we acquired The Athletic Media Company (“The Athletic”), a global digital subscription-based sports media business. The results of The Athletic have ~~one~~been included in our Condensed Consolidated Financial Statements beginning February 1, 2022. The Athletic is a separate reportable segment ~~with businesses that include our core news product~~of the Company. As a result, beginning in the first quarter of 2022, we have two reportable segments: The New York Times Group and ~~other interest-specific products, and related content and services.~~The Athletic.

We generate revenues principally from subscriptions and advertising. In addition, we generate other revenues primarily consisting of revenues from licensing, Wirecutter affiliate referrals, commercial printing, the leasing of floors in our ~~New York~~ headquarters ~~building located at 620 Eighth Avenue, New York, New York~~ (the “Company Headquarters”), retail commerce, television and film, our live events business and our student subscription sponsorship ~~program and our live events business.~~program.

Our main operating costs are employee-related costs.

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

Beginning with the second quarter of 2022, the Company has updated its rounding methodology for subscriptions (including net subscriptions additions), subscribers (including net subscriber additions) and subscriber-related metrics (other than average revenue per subscriber (“ARPU”)) and will round to the nearest ten thousand instead of the nearest thousand as it had previously been presenting. The sum of individual metrics may not always equal total amounts indicated due to rounding.

Financial Highlights

•~~Diluted earnings per share from continuing operations were $0.32 and $0.20 for~~Operating profit increased 4.2% to $51.0 million in the third ~~quarters~~quarter of 2021 and 2020, respectively. Diluted earnings per share from continuing operations excluding severance, non-operating retirement costs and special items discussed below under “Non-Operating Items – Non-GAAP Financial Measures” (or “adjusted diluted earnings per share,” a non-GAAP measure) were $0.23 and $0.22 for the third quarters of 2021 and 2020, respectively.

•~~The Company had an operating profit of~~2022, compared with $49.0 million in the third quarter of ~~2021, compared with $39.6 million in the third quarter of 2020.~~2021. Operating profit before depreciation, amortization, severance, multiemployer pension plan withdrawal costs and special items discussed below under ~~“Non-Operating Items – Non-GAAP~~“Non-GAAP Financial Measures” (or “adjusted operating profit,” a non-GAAP measure) increased 6.0% to $69.0 million in the third quarter of 2022, compared with $65.1 million in the third quarter of ~~2021~~2021. The increases were primarily attributable to higher digital-only subscription revenues, partially offset by operating losses at The Athletic, as well as higher operating costs at The New York Times Group. Operating profit margin decreased to 9.3% in the third quarter of 2022, compared with ~~$56.5~~9.6% in the third quarter of 2021. Adjusted operating profit margin (adjusted operating profit expressed as a percentage of revenues) decreased to 12.6% in the third quarter of 2022, compared with 12.8% in the third quarter of 2021.

•Total revenues increased 7.6% to $547.7 million in the third quarter of ~~2020.~~

•~~Total revenues increased 19.3% to~~2022 from $509.1 million in the third quarter of ~~2021 from $426.9~~2021.

•Total subscription revenues increased 11.7% to $382.7 million in the third quarter of ~~2020.~~

•~~Subscription revenues increased 13.8%~~2022 from $342.6 million in the third quarter of ~~2021 compared with~~2021. Digital-only subscription revenues increased 22.8% to $243.9 million in the ~~same prior-year period.~~third quarter of 2022 from $198.6 million in the third quarter of 2021. Paid digital-only ~~subscriptions~~subscribers totaled approximately ~~7,588,000~~8.59 million with approximately 10.02 million paid digital-only subscriptions at the end of the third quarter of ~~2021,~~2022, a net increase of ~~455,000~~180,000 digital-only subscribers and 210,000 digital-only subscriptions compared with the end of the second quarter of ~~2021~~2022 and a net increase of ~~1,525,000~~1,010,000digital-only subscribers and 1,230,000 digital-only subscriptions compared with the end of the third quarter of 2020. Of the 455,000 total net additions, 320,000 came from the Company’s digital news product, while 135,000 came from the Company’s Cooking, Games, Audm and Wirecutter (to which a subscription option was launched during the third quarter of 2021) products (“other digital-only products”).2021.

•Total advertising revenues ~~increased 39.9%~~decreased 0.4% to $110.5 million in the third quarter of 2022 from $110.9 million in the third quarter of 2021, ~~compared with the same prior-year period,~~ due to a decrease of 8.5% in print advertising revenues, partially offset by an increase of ~~40.2%~~4.9% in digital advertising ~~revenues and an increase of 39.4% in print advertising~~ revenues.

•Operating costs increased ~~18.8%~~9.5% to $503.8 million in the third quarter of 2022 from $460.1 million in the third quarter of ~~2021 from $387.3 million compared with the third quarter of 2020.~~2021. Operating costs before depreciation, amortization, severance and multiemployer pension plan withdrawal costs (or “adjusted operating costs,” a non-GAAP measure) increased ~~19.9% in the third quarter of 2021~~7.8% to ~~$444.1 million from $370.4~~$478.7 million in the third quarter of ~~2020.~~

~~Impact of Covid-19 Pandemic~~

Given the impact of the Covid-19 pandemic on our business in 2020, we believe that certain comparisons of our operating results in 2021 to 2019 provide useful context for our 2021 results. We have included supplemental tables comparing the operating results in 2021 to 2020 and to 2019 (see “Supplemental Financial Information”), as well as discussion comparing the third quarter and first nine months in 2021 to 2020 and 2019.

The Covid-19 pandemic has impacted our business in various ways, including impacts on both our operating revenues and operating expenses. During 2020, we experienced significant growth in the number of subscriptions to our digital news and

other products, which we believe was attributable in part to an increase in traffic given the news environment and as a result of the pandemic, and we do not expect the 2020 growth rate to be sustainable or indicative of results for future periods. Revenues2022 from the single-copy and bulk sales of our print newspaper (which include our international edition and collectively represent less than 5% of our total subscription revenues) were adversely affected as a result of widespread business closures, increased remote working and reductions in travel. The worldwide economic slowdown caused by the pandemic also led to a significant decline in our advertising revenues in 2020 as advertisers reduced their spending. More recently, we experienced increasing demand for advertising with the recovery of the broader market. Our live events business was and continues to be adversely affected by the impacts of the Covid-19 pandemic.

In 2020 we incurred less media expense as we decreased marketing spend due to a heightened news cycle, lower print production and distribution costs due to less demand for print copies of the newspaper, lower costs related to our advertising business as a result of lower variable expenses in connection with lower advertising revenues and lower travel and entertainment costs as a result of the Covid-19 pandemic. More recently we have begun increasing some of our spending in these areas, and as referenced below, media expenses to promote our subscription business$444.1 million in the third quarter of ~~2021~~2021.

•Operating costs that we refer to as “technology costs,” consisting of product development costs as well as components of costs of revenues and general and administrative costs as described below, increased 20.1% to $92.1 million compared with $76.7 million in the third quarter of 2021.

•Diluted earnings per share from continuing operations were ~~higher than~~$0.22 and $0.32 for the third quarters of ~~both 2020~~2022 and ~~2019.~~ 2021, respectively. Diluted earnings per share from continuing operations excluding severance, non-operating retirement costs and special items discussed below under “Non-GAAP Financial Measures” (or “adjusted diluted earnings per share,” a non-GAAP measure) were $0.21 and $0.23 for the third quarters of 2022 and 2021, respectively.

Current Economic Conditions, Continued Impact of Covid-19 Pandemic

We, ~~also incurred some additional expenses in response~~and the companies with which we do business, including our advertisers, are subject to ~~the pandemic,~~risks and uncertainties caused by factors beyond our control, including ~~certain enhanced employee benefits; however these expenses have not yet been significant. We have invested and expect to continue to invest in~~macroeconomic factors such as inflation (which could materially impact employee-related costs, our ~~Company Headquarters and other offices~~main operating cost, as well as ~~technological improvements~~the cost of raw materials for our print newspaper), a competitive labor market and evolving workforce expectations (including for unionized employees), supply chain disruptions, and global economic uncertainty and volatility, the war in Ukraine and the continued effects of the Covid-19 pandemic. Our employee-related costs have increased in recent years as we ~~transition~~have invested in our business and competed for talent. Although we have not seen a significant impact from inflation to ~~hybrid work with employees working both from~~our financial results in the ~~office~~first nine months of 2022, if inflation remains at current levels, or increases, for an extended period, our employee-related costs are likely to increase. If we are unable to successfully mitigate the impact of such increased costs, they could adversely affect our profits, margins and/or cash flows.

We actively monitor these conditions to remain flexible and ~~remotely.~~

~~At this time,~~to optimize and evolve our business as appropriate; however, the full impact ~~that the Covid-19 pandemic~~they will have on our business, operations and financial results is ~~uncertain. The extent to which the pandemic will continue to impact us~~uncertain and will depend on numerous evolving factors and future developments, including the scope and duration of the pandemic (including the extent of variants and resurgences); the effect of ongoing vaccination and mitigation efforts; the impact of the pandemic on economic conditions and the companies with which we do business; governmental, business and other actions; the status of travel restrictions; and changes in consumer behavior in responsedevelopments. The risks related to ~~the pandemic, among many other factors. We will continue to actively monitor the situation and may take further actions that alter~~ our business ~~operations as may be required by federal, state, local or foreign authorities, or that we determine~~ are ~~appropriate. Please see~~further described in the section titled “Item 1A — Risk Factors” in our Annual Report on Form 10-K for the year ended December ~~27,~~26, 2021.

As a result of the Covid-19 pandemic, the vast majority of our employees worked remotely from March 2020 to September 2022. During the third quarter of 2022, we transitioned to hybrid work with most of our employees expected to work both from the office and remotely. In preparation for ~~more information.~~hybrid work, we invested in our Company Headquarters and other offices as well as in technological improvements.

2127

RESULTS OF OPERATIONS

The following table presents our consolidated financial results:


		For the Quarters Ended						For the Nine Months Ended							For the Quarters Ended						For the Nine Months Ended
(In thousands)	(In thousands)	September 26, 2021		September 27, 2020		% Change		September 26, 2021		September 27, 2020		% Change		(In thousands)	September 25, 2022		September 26, 2021		% Change		September 25, 2022		September 26, 2021		% Change
Revenues	Revenues													Revenues
Subscription	Subscription	$	342,609	$	300,950	13.8	%	$	1,010,910	$	879,573	14.9	%	Subscription	$	382,672	$	342,609	11.7	%	$	1,138,270	$	1,010,910	12.6	%
Advertising	Advertising	110,887		79,253		39.9	%	320,777		253,150		26.7	%	Advertising	110,467		110,887		(0.4)	%	344,116		320,777		7.3	%
Other	Other	55,607		46,692		19.1	%	148,958		141,558		5.2	%	Other	54,541		55,607		(1.9)	%	158,399		148,958		6.3	%
Total revenues	Total revenues	509,103		426,895		19.3	%	1,480,645		1,274,281		16.2	%	Total revenues	547,680		509,103		7.6	%	1,640,785		1,480,645		10.8	%
Operating costs	Operating costs													Operating costs
Cost of revenue (excluding depreciation and amortization)	Cost of revenue (excluding depreciation and amortization)	256,978		235,665		9.0	%	759,333		709,062		7.1	%	Cost of revenue (excluding depreciation and amortization)	294,856		256,978		14.7	%	876,804		759,333		15.5	%
Sales and marketing	Sales and marketing	83,767		50,615		65.5	%	197,475		164,004		20.4	%	Sales and marketing	64,732		83,767		(22.7)	%	205,089		197,475		3.9	%
Product development	Product development	40,638		34,349		18.3	%	119,280		96,334		23.8	%	Product development	50,474		40,638		24.2	%	148,729		119,280		24.7	%
General and administrative	General and administrative	64,418		51,118		26.0	%	183,278		162,791		12.6	%	General and administrative	71,970		64,418		11.7	%	212,468		183,278		15.9	%
Depreciation and amortization	Depreciation and amortization	14,326		15,552		(7.9)	%	43,529		46,368		(6.1)	%	Depreciation and amortization	21,760		14,326		51.9	%	61,150		43,529		40.5	%
Total operating costs	Total operating costs	460,127		387,299		18.8	%	1,302,895		1,178,559		10.5	%	Total operating costs	503,792		460,127		9.5	%	1,504,240		1,302,895		15.5	%
Acquisition-related costs														Acquisition-related costs	—		—		—		34,712		—		*

Gain from pension liability adjustment														Gain from pension liability adjustment	(7,127)		—		*		(7,127)		—		*

Lease termination charge	Lease termination charge	—		—		—		3,831		—		*		Lease termination charge	—		—		—		—		3,831		*
Operating profit	Operating profit	48,976		39,596		23.7	%	173,919		95,722		81.7	%	Operating profit	51,015		48,976		4.2	%	108,960		173,919		(37.4)	%
Other components of net periodic benefit costs	Other components of net periodic benefit costs	2,599		2,272		14.4	%	7,796		6,735		15.8	%	Other components of net periodic benefit costs	1,757		2,599		(32.4)	%	4,903		7,796		(37.1)	%

Interest income and other, net	Interest income and other, net	28,569		3,537		*		31,953		20,177		58.4	%	Interest income and other, net	1,579		28,569		(94.5)	%	38,258		31,953		19.7	%
Income from continuing operations before income taxes	Income from continuing operations before income taxes	74,946		40,861		83.4	%	198,076		109,164		81.4	%	Income from continuing operations before income taxes	50,837		74,946		(32.2)	%	142,315		198,076		(28.2)	%
Income tax expense	Income tax expense	20,290		7,283		*		47,994		19,070		*		Income tax expense	14,220		20,290		(29.9)	%	39,196		47,994		(18.3)	%

Net income														Net income	36,617		54,656		(33.0)	%	103,119		150,082		(31.3)	%

Net income attributable to The New York Times Company common stockholders	Net income attributable to The New York Times Company common stockholders	$	54,656	$	33,578	62.8	%	$	150,082	$	90,094	66.6	%	Net income attributable to The New York Times Company common stockholders	$	36,617	$	54,656	(33.0)	%	$	103,119	$	150,082	(31.3)	%

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

2228

~~SUPPLEMENTAL FINANCIAL INFORMATION~~

For the Quarters Ended
September 26, 2021 September 27, 2020 2021 vs 2020 % Change September 29, 2019 2021 vs 2019 % Change
Revenues
Digital $ 198,633 $ 155,286 27.9 % $ 115,864 71.4 %
Print 143,976 145,664 (1.2) % 151,438 (4.9) %
Subscription revenues 342,609 300,950 13.8 % 267,302 28.2 %
Digital 66,981 47,763 40.2 % 54,653 22.6 %
Print 43,906 31,490 39.4 % 58,878 (25.4) %
Advertising revenues 110,887 79,253 39.9 % 113,531 (2.3) %
Other revenues 55,607 46,692 19.1 % 47,668 16.7 %
Total revenues 509,103 426,895 19.3 % 428,501 18.8 %
Operating costs
Cost of revenue (excluding depreciation and amortization) 256,978 235,665 9.0 % 244,891 4.9 %
Sales and marketing
83,767 50,615 65.5 % 64,209 30.5 %
Product development 40,638 34,349 18.3 % 26,886 51.1 %
General and administrative 64,418 51,118 26.0 % 50,015 28.8 %
Depreciation and amortization 14,326 15,552 (7.9) % 15,450 (7.3) %
Total operating costs 460,127 387,299 18.8 % 401,451 14.6 %
Restructuring charge — — — 4,008 *
Gain from pension liability adjustment — — — (2,045) *
Operating profit $ 48,976 $ 39,596 23.7 % $ 25,087 95.2 %
* Represents a change equal to or in excess of 100% or not meaningful.

For the Nine Months Ended
September 26, 2021 September 27, 2020 2021 vs 2020 % Change September 29, 2019 2021 vs 2019 % Change
Revenues
Digital $ 568,378 $ 431,280 31.8 % $ 338,358 68.0 %
Print 442,532 448,293 (1.3) % 470,210 (5.9) %
Subscription revenues 1,010,910 879,573 14.9 % 808,568 25.0 %
Digital 197,472 138,452 42.6 % 168,222 17.4 %
Print 123,305 114,698 7.5 % 191,158 (35.5) %
Advertising revenues 320,777 253,150 26.7 % 359,380 (10.7) %
Other revenues 148,958 141,558 5.2 % 135,873 9.6 %
Total revenues 1,480,645 1,274,281 16.2 % 1,303,821 13.6 %
Operating costs
Cost of revenue (excluding depreciation and amortization) 759,333 709,062 7.1 % 729,016 4.2 %
Sales and marketing
197,475 164,004 20.4 % 201,303 (1.9) %
Product development 119,280 96,334 23.8 % 76,320 56.3 %
General and administrative 183,278 162,791 12.6 % 152,054 20.5 %
Depreciation and amortization 43,529 46,368 (6.1) % 45,548 (4.4) %
Total operating costs 1,302,895 1,178,559 10.5 % 1,204,241 8.2 %
Lease termination charge 3,831 — * — *
Restructuring charge — — — 4,008 *
Gain from pension liability adjustment — — — (2,045) *
Operating profit $ 173,919 $ 95,722 81.7 % $ 97,617 78.2 %
* Represents a change equal to or in excess of 100% or not meaningful.

Revenues

Subscription Revenues

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 ~~other digital-only~~Games, Cooking, Audm and Wirecutter products), and single-copy and bulk sales of our print products (which represent less than 5% of these revenues). 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.

~~2021 Compared with 2020~~

Subscription revenues increased ~~13.8%~~11.7% in the third quarter and increased ~~14.9%~~12.6% in the first nine months of ~~2021~~2022 compared with the same prior-year ~~periods. The increase in the third quarter and first nine months was~~periods, primarily due to the large number of subscribers whose introductory promotional subscriptions have graduated to higher prices, growth in the number of ~~subscriptions~~subscribers to the Company’s digital-only products, as well as ~~digital subscriptions graduating to higher prices~~the inclusion of subscription revenue from ~~introductory promotional pricing.~~The Athletic. The increases in ~~digital-only~~digital subscription revenue ~~in both periods~~ were ~~partially~~slightly offset by a decrease in print subscription ~~revenue~~revenue. This decrease was primarily attributable to ~~lower single-copy and bulk sales as a result of increased levels of remote working and reductions~~declines in ~~travel due to the Covid-19 pandemic as well as ongoing secular trends. Subscription revenues from~~ domestic home delivery ~~decreased 0.8% in~~revenue of 3.3% and 2.7% for the third quarter and first nine months of ~~2021 compared with the same prior year period~~2022, respectively, due to a decrease in the number of print subscriptions driven by secular trends, partially offset by an increase in print subscription prices. ~~Revenues~~There is no print subscription revenue generated from domestic home delivery in the first nine months compared with the same period in the prior year increased 0.4% as the increase in subscription prices offset the decrease in the number of subscriptions.The Athletic.

~~Paid digital-only subscriptions totaled approximately 7,588,000 at the end of~~The Company ended the third quarter of ~~2021,~~2022 with approximately 9.33 million paid subscribers with approximately 10.75 million paid subscriptions across its print and digital products. Of the 9.33 million subscribers, approximately 8.59 million were paid digital-only subscribers with approximately 10.02 million paid digital-only subscriptions.

There was a net increase of ~~455,000~~180,000 digital-only subscribers and 210,000 digital-only subscriptions compared with the end of the second quarter of 2022. Compared with the end of the third quarter of 2021, ~~and~~there was a net increase of ~~1,525,000~~1,010,000 digital-only subscribers and 1,230,000 digital-only subscriptions, which excludes approximately 1,029,000 subscribers and 1,161,000 subscriptions that were added as a result of the acquisition of The Athletic in the first quarter of 2022. The Company provided the ability to access The Athletic to additional digital bundle subscribers in the third quarter of 2022. Digital-only subscribers with The Athletic increased by 600,000, largely as a result of this action.

Print domestic home delivery subscribers totaled approximately 740,000 with 730,000 print subscriptions at the end of the third quarter of 2022, a net decrease of 20,000 subscribers and subscriptions, respectively, compared with the end of the second quarter of 2022 and a net decrease of 60,000 subscribers and subscriptions, respectively, compared with the end of the third quarter of ~~2020. The year-over-year growth in our digital subscriptions is attributable in part~~ ~~to initiatives we have undertaken to drive subscriptions, including adjustments to our access model.~~

Digital-only news product subscriptions totaled approximately 5,654,000 at the end of the third quarter of 2021, a 320,000 net increase compared with the end of the second quarter of 2021 and a 989,000 increase compared with the end of the third quarter of 2020. Other digital-only products subscriptions totaled approximately 1,934,000 at the end of the third quarter of 2021, an increase of 135,000 subscriptions compared with the end of the second quarter of 2021 and an increase of 536,000 subscriptions compared with the end of the third quarter of 2020.

Print domestic home delivery subscriptions totaled approximately 795,000 at the end of the third quarter of 2021, a net decrease of 8,000 compared with the end of the second quarter of 2021 and a net decrease of 36,000 compared with the end of the third quarter of 2020.

~~2021 Compared with 2019~~

Subscription revenues increased 28.2% in the third quarter and increased 25.0% in the first nine months of 2021 compared with the same periods in 2019. The increase in the third quarter and first nine months of 2021 was primarily due to growth in the number of subscriptions to the Company’s digital-only products. These increases were partially offset by a decrease in print subscription revenue from single-copy and bulk sales as a result of increased levels of remote working and reductions in travel due to the Covid-19 pandemic as well as secular trends. Single-copy and bulk sales decreased 34.1% and 37.3% in the third quarter and the first nine months, respectively.

2021.

The following table summarizes digital and print subscription revenues for the third quarters and first nine months of ~~2021~~2022 and ~~2020:~~2021:

For the Quarters Ended For the Nine Months Ended
(In thousands) September 26, 2021 September 27, 2020 % Change September 26, 2021 September 27, 2020 % Change
Digital-only subscription revenues:
News product subscription revenues(1)
$ 178,382 $ 140,740 26.7 % $ 510,563 $ 392,620 30.0 %
Other digital-only product subscription revenues(2)
20,251 14,546 39.2 % 57,815 38,660 49.5 %
Subtotal digital-only subscription revenues 198,633 155,286 27.9 % 568,378 431,280 31.8 %
Print subscription revenues:
Domestic home delivery subscription revenues(3)
128,895 129,912 (0.8) % 398,045 396,620 0.4 %
Single-copy, NYT International and other subscription revenues(4)
15,081 15,752 (4.3) % 44,487 51,673 (13.9) %
Subtotal print subscription revenues 143,976 145,664 (1.2) % 442,532 448,293 (1.3) %
Total subscription revenues $ 342,609 $ 300,950 13.8 % $ 1,010,910 $ 879,573 14.9 %
(1) Includes revenues from subscriptions to the Company’s news product. News product subscription packages that include access to the Company’s Games, Cooking and Wirecutter products are also included in this category.
(2) Includes revenues from standalone subscriptions to the Company’s other digital-only products.
(3) Includes free access to some of the Company’s digital products.
(4) NYT International is the international edition of our print newspaper.


	For the Quarters Ended						For the Nine Months Ended
(In thousands)	September 25, 2022		September 26, 2021		% Change		September 25, 2022		September 26, 2021		% Change
Digital-only subscription revenues (1)	$	243,889	$	198,633	22.8	%	$	709,378	$	568,378	24.8	%
Print subscription revenues:
Domestic home delivery subscription revenues (2)	124,653		128,895		(3.3)	%	387,125		398,045		(2.7)	%
Single-copy, NYT International and Other subscription revenues (3)	14,130		15,081		(6.3)	%	41,767		44,487		(6.1)	%
Subtotal print subscription revenues	138,783		143,976		(3.6)	%	428,892		442,532		(3.1)	%
Total subscription revenues	$	382,672	$	342,609	11.7	%	$	1,138,270	$	1,010,910	12.6	%
(1) Includes revenue from digital-only bundled and standalone subscriptions to the Company’s news product, as well as The Athletic and our Games, Cooking, Audm and Wirecutter products.
(2) Domestic home delivery subscriptions include access to our digital news product, as well as The Athletic and our Games, Cooking and Wirecutter products.
(3) NYT International is the international edition of our print newspaper.

We offer a digital subscription package (or “bundle”) that includes access to our digital news product as well as The Athletic and our Games, Cooking and Wirecutter products. We also offer standalone digital subscriptions to our digital news product, as well as to The Athletic, and our Games, Cooking, Audm and Wirecutter products. The Company has set out below the number of digital-only, print and total subscribers to the Company’s products as well as certain additional metrics, including 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 and print subscribers as of the end of the five most recent fiscal quarters:


	For the Quarters Ended
	September 25, 2022	June 26, 2022	March 27, 2022	December 26, 2021	September 26, 2021
Digital-only subscribers(1)	8,590	8,410	8,230	6,783	6,546
Print subscribers(2)	740	760	780	795	806
Total subscribers(3)	9,330	9,170	9,010	7,578	7,352
(1) Subscribers with paid digital-only subscriptions to one or more of our news product, The Athletic, or our Games, Cooking 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 4% of paid digital-only subscriptions as of the third quarter of 2022). 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 Games, Cooking and Wirecutter products, or a paid print subscription to our Book Review or Large Type Weekly products. Book Review, Mail and Large Type Weekly subscribers are included in the count of subscribers but not subscriptions.
(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)	September 25, 2022		June 26, 2022		March 27, 2022		December 26, 2021		September 26, 2021
Digital-only subscriber ARPU(1)	$	8.87	$	8.83	$	9.13	$	9.60	$	9.64
Digital-only bundle and multiproduct subscribers(2)	2,130		1,980		1,835		1,607		1,491
Digital-only subscribers with News(3)	6,210		6,140		6,101		5,826		5,665
Digital-only subscribers with The Athletic(4)	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 3.25 to reflect a 28-day billing cycle) in the measurement period by the average number of digital subscribers during the period.
(2) Subscribers with 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. This metric was previously called “Total Multiproduct subscribers” and included subscribers with a print home-delivery subscription. The four quarters prior to the third quarter of 2022 have been recast to reflect this change.
(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. This metric was previously called “Subscribers with The Athletic”.

The following table summarizes digital and print subscriptions as of the end of the ~~third quarters of 2021 and 2020:~~five most recent fiscal quarters:

Quarters Ended
(In thousands) September 26, 2021 September 27, 2020 % Change
Digital-only subscriptions:
News product subscriptions(1)
5,654 4,665 21.2 %
Other digital-only product subscriptions(2)
1,934 1,398 38.3 %
Subtotal digital-only subscriptions 7,588 6,063 25.2 %
Print subscriptions 795 831 (4.3) %
Total subscriptions 8,383 6,894 21.6 %
(1) Includes subscriptions to the Company’s news product. News product subscription packages that include access to the Company’s Games, Cooking and Wirecutter products are also included in this category.
(2) Includes standalone subscriptions to the Company’s other digital-only products. During the third quarter of 2021, the Company launched a Wirecutter subscription option.


	For the Quarters Ended
(In thousands)	September 25, 2022	June 26, 2022	March 27, 2022	December 26, 2021	September 26, 2021
Digital-only subscriptions (1)	10,020	9,810	9,579	8,005	7,630
Print subscriptions (2)	730	750	770	784	795
Total subscriptions (3)	10,750	10,560	10,349	8,789	8,425
(1) Paid digital-only subscriptions to our news product, as well as The Athletic and our Games, Cooking, 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 third quarter of 2022). 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 Games, Cooking and Wirecutter products. Excludes subscriptions to our Book Review or Large Type Weekly products and subscriptions to The New York Times that are delivered by mail.
(3) The sum of individual metrics may not always equal total amounts indicated due to rounding.

2631

We believe that the significant growth over the last several years in ~~subscriptions~~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 Company is increasing its emphasis on subscriber growth rather than growth of total subscriptions. The following charts illustrate the growth in net digital-only ~~subscriptions~~subscribers and corresponding subscription revenues as well as the relative stability of our print domestic home delivery subscription ~~products since the launch of the digital pay model in 2011.~~

products.

(1) Amounts may not add due to rounding.

(2)~~Print domestic home delivery subscriptions include free~~ Includes access to some of our digital products.

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

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

~~Note: Revenues for 2012 and 2017 include the impact of an additional week.~~

2732

Advertising Revenues

Advertising revenue is principally from advertisers (such as technology, financial and luxury goods companies) promoting products, services or brands on digital platforms in the form of display ads, audio and video, and in print, in the form of column-inch ads. Advertising revenue is primarily derived from offerings sold directly to marketers by our advertising sales teams. A smaller proportion of our total advertising revenues is generated through programmatic auctions run by third-party ad exchanges. Advertising revenue is primarily determined by the volume (e.g., impressions or column inches), rate and mix of advertisements. Digital advertising includes our core digital advertising business and other digital advertising. Our core digital advertising business includes direct-sold website, mobile application, podcast, email and video advertisements. Advertising revenue from The Athletic is primarily podcast revenue and therefore is reflected in this category. Direct-sold display advertising, a component of core digital advertising, includes offerings on websites and mobile applications sold directly to marketers by our advertising sales teams. We launched direct-sold display advertising at The Athletic in the third quarter. 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. There is no print advertising revenue generated from The Athletic.

The following table summarizes digital and print advertising revenues for the third quarters and first nine months of ~~2021~~2022 and ~~2020:~~2021:

For the Quarters Ended For the Nine Months Ended
(In thousands) September 26, 2021 September 27, 2020 % Change September 26, 2021 September 27, 2020 % Change
Advertising revenues:
Digital $ 66,981 $ 47,763 40.2 % $ 197,472 $ 138,452 42.6 %
Print 43,906 31,490 39.4 % 123,305 114,698 7.5 %
Total advertising $ 110,887 $ 79,253 39.9 % $ 320,777 $ 253,150 26.7 %

~~2021 Compared with 2020~~


	For the Quarters Ended						For the Nine Months Ended
(In thousands)	September 25, 2022		September 26, 2021		% Change		September 25, 2022		September 26, 2021		% Change
Advertising revenues:
Digital	$	70,282	$	66,981	4.9	%	$	206,588	$	197,472	4.6	%
Print	40,185		43,906		(8.5)	%	137,528		123,305		11.5	%
Total advertising	$	110,467	$	110,887	(0.4)	%	$	344,116	$	320,777	7.3	%

Digital advertising revenues, which represented ~~60.4%~~63.6% of total advertising revenues in the third quarter of ~~2021,~~2022, increased ~~$19.2~~$3.3 million, or ~~40.2%~~4.9%, to ~~$67.0~~$70.3 million compared with ~~$47.8~~$67.0 million in the same prior-year period. The increase was primarily ~~driven by~~a result of higher direct-sold advertising ~~including traditional display~~at The New York Times Group and ~~podcasts, as well as~~ the ~~impact~~addition of $2.3 million in advertising revenue from The Athletic, which more than offset lower revenue from fewer programmatic advertising impressions; in addition we believe the ~~comparison to weak digital~~macroeconomic environment adversely impacted advertising ~~revenues in the prior year period caused by reduced advertiser spending during the earlier stages of the Covid-19 pandemic.~~spend. Core digital advertising revenue increased ~~$16.1~~$8.9 million, which includes $2.3 million from The Athletic, due to growth in direct-sold display advertising and podcast advertising revenues. Direct-sold display impressions increased ~~33%~~52%, while the average rate ~~grew 24%~~decreased 20%. Other digital advertising revenue ~~increased $3.1~~decreased $5.6 million, primarily due to a ~~44% increase in creative services fees, as well as a 7.1% increase~~34.1% decrease in open-market programmatic advertising ~~revenue.~~revenue, as well as an 18.2% decrease in creative services fees. Programmatic impressions decreased by ~~39%~~27%, while the average rate ~~increased 63%~~decreased 8%.

Digital advertising revenues, which represented ~~61.6%~~60.0% of total advertising revenues in the first nine months of ~~2021,~~2022, increased ~~$59.0~~$9.1 million, or ~~42.6%~~4.6%, to ~~$197.5~~$206.6 million compared with ~~$138.5~~$197.5 million in the same prior-year period. The increase was primarily ~~driven by~~a result of higher direct-sold advertising ~~including traditional display~~at The New York Times Group and ~~podcasts, as well as~~ the ~~impact~~addition of advertising revenue from The Athletic, which contributed $6.7 million which more than offset lower revenue from fewer programmatic advertising impressions; in addition we believe the ~~comparison to weak digital~~macroeconomic environment adversely impacted advertising ~~revenues in the prior year period caused by reduced advertiser spending during the earlier stages of the Covid-19 pandemic.~~spend. Core digital advertising revenue increased ~~$53.1~~$22.2 million, which includes $6.7 million from The Athletic, due to growth in direct-sold display advertising ~~revenue~~ and podcast advertising revenues. Direct-sold display impressions increased ~~21%~~32%, while the average rate ~~grew 29%~~decreased 11%. Other digital advertising revenue ~~increased $5.9~~decreased $13.1 million, primarily due to a ~~36% increase~~26.3% decrease in ~~creative services fees,~~open-market programmatic advertising revenue, as well as a ~~2.7% increase~~16.8% decrease in ~~open-market programmatic advertising revenue.~~creative services fees. Programmatic impressions decreased by ~~39% offsetting~~32%, while the average rate ~~increase of 63%~~increased 10%.

Print advertising revenues, which represented ~~39.6%~~36.4% of total advertising revenues in the third quarter of ~~2021, increased $12.4~~2022, decreased $3.7 million, or ~~39.4%~~8.5%, to ~~$43.9~~$40.2 million compared with ~~$31.5~~$43.9 million in the same prior-year period. The ~~increase in the third quarter of 2021~~decrease was primarily in the ~~luxury~~advocacy and ~~entertainment categories, largely due to the impact of the comparison to weak print~~media categories. Print advertising ~~revenues in the third quarter of 2020 caused by reduced advertiser spending by businesses negatively~~revenue was impacted by secular trends and in addition we believe the ~~earlier stages of the Covid-19 pandemic.~~ ~~The increase in the third quarter of 2021 was partially offset by secular trends.~~ macroeconomic environment adversely impacted advertising spend.

Print advertising revenues, which represented ~~38.4%~~40.0% of total advertising revenues in the first nine months of ~~2021,~~2022, increased ~~$8.6~~$14.2 million, or ~~7.5%~~11.5%, to ~~$123.3~~$137.5 million compared with ~~$114.7~~$123.3 million in the same prior-year period.The increase was primarily in the entertainment and luxury categories, which were more severely impacted by the Covid-19 pandemic in the first nine months of ~~2021 was primarily in the luxury and media categories and~~2021. The increase was partially offset by ~~a decrease in the entertainment category and as a result of~~ ~~secular trends. We expect reduced advertising spending by businesses that continue to be negatively impacted by the Covid-19 pandemic, along with~~ secular trends ~~to continue to~~and in addition we believe the macroeconomic environment adversely ~~affect our print~~impacted advertising ~~revenues. Some of our print advertising revenues may not return to pre-pandemic levels.~~spend.

2833

~~2021 Compared with 2019~~

Digital advertising revenues for the third quarter of 2021 increased $12.3 million, or 22.6%, to $67.0 million compared with $54.7 million in the third quarter of 2019. The increase was primarily driven by higher direct-sold advertising, including traditional display and podcasts. Core digital advertising revenue increased $16.4 million due to growth in direct-sold display advertising revenues and podcast advertising revenues. Direct-sold display impressions increased 7%, while the average rate grew 43%. Other digital advertising revenue decreased $4.1 million, primarily due to the closure of our HelloSociety and Fake Love digital marketing agencies, partially offset by a 8.1% increase in open-market programmatic advertising revenue. Programmatic impressions decreased by 29%, while the average rate increased 50%.

Digital advertising revenues for the first nine months of 2021 increased $29.3 million, or 17.4%, to $197.5 million compared with $168.2 million in the first nine months of 2019. The increase was primarily driven by higher direct-sold advertising, including traditional display and podcasts. Core digital advertising revenue increased $43.0 million due to growth in direct-sold display advertising revenue and podcast advertising revenues. Direct-sold display impressions were flat, while the average rate grew 31%. Other digital advertising revenue decreased $13.7 million, primarily due to the closure of our HelloSociety and Fake Love digital marketing agencies, partially offset by a 7.5% increase in open-market programmatic advertising revenue. Programmatic impressions decreased by 12%, while the average rate increased 21%.

Print advertising revenues for the third quarter of 2021 declined $15.0 million, or 25.4%, to $43.9 million compared with $58.9 million in the same period of 2019. Print advertising revenues for the first nine months of 2021 declined $67.9 million, or 35.5%, to $123.3 million compared with $191.2 million in the same period of 2019. The declines in both periods reflected reduced spending on print advertising by businesses negatively impacted by the Covid-19 pandemic as well as continued secular trends.

Other Revenues

Other revenues primarily consist of revenues from licensing, Wirecutter affiliate referrals, commercial printing, the leasing of floors in the Company Headquarters, retail commerce, television and film, our live events business and our student subscription sponsorship ~~program and our live events business.~~

~~2021 Compared with 2020~~program.

Other revenues ~~increased 19.1%~~decreased 1.9% in the third quarter of ~~2021 and~~2022 compared with the same prior-year period, primarily as a result of lower licensing revenue, which was partially offset by higher Wirecutter affiliate referral revenues.

Other revenues increased ~~5.2%~~6.3% in the first nine months of ~~2021,~~2022 compared with the same prior-year ~~periods. The increase in the third quarter of 2021 was~~period, primarily as a result of higher ~~licensing and~~ commercial printing ~~revenue. The increase~~revenue as we began printing several News Corporation publications in ~~the first nine months of 2021 was primarily a result of~~mid-2021 and several other smaller publications in 2022 in our College Point, N.Y., printing and distribution facility, higher Wirecutter affiliate referral revenues mainly due to Wirecutter’s presence on our core news website (NYTimes.com) homepage resulting in increased views, and ~~licensing revenues, partially offset by lower television series revenues.~~higher live events revenue due to more in-person events.

Building rental revenue from the leasing of floors in the Company Headquarters totaled ~~$7.1~~$7.2 million and $7.0 million in the third quarters of ~~2021~~2022 and ~~2020,~~2021, respectively, and ~~$20.0~~$21.5 millionand ~~$22.3~~$20.0 million in the first nine months of 2022 and 2021, ~~and 2020,~~ respectively.

~~2021 Compared with 2019~~

Other revenues increased 16.7% in the third quarter of 2021 and increased 9.6% in the first nine months, compared with the same periods in 2019. The increase in the third quarter of 2021 was primarily a result of higher Wirecutter affiliate referral revenues and licensing revenue related to Facebook News partially offset by lower television series and live events revenues. The increase in the first nine months of 2021 was primarily a result of higher Wirecutter affiliate referral revenues and licensing revenue primarily related to Facebook News, partially offset by lower revenues from television series, live events and commercial printing.

Operating Costs

Operating costs were as follows:


		For the Quarters Ended						For the Nine Months Ended							For the Quarters Ended						For the Nine Months Ended
(In thousands)	(In thousands)	September 26, 2021		September 27, 2020		% Change		September 26, 2021		September 27, 2020		% Change		(In thousands)	September 25, 2022		September 26, 2021		% Change		September 25, 2022		September 26, 2021		% Change
Operating costs:	Operating costs:													Operating costs:
Cost of revenue (excluding depreciation and amortization)(1)	Cost of revenue (excluding depreciation and amortization)(1)	$	256,978	$	235,665	9.0	%	$	759,333	$	709,062	7.1	%	Cost of revenue (excluding depreciation and amortization)(1)	$	294,856	$	256,978	14.7	%	$	876,804	$	759,333	15.5	%
Sales and marketing	Sales and marketing	83,767		50,615		65.5	%	197,475		164,004		20.4	%	Sales and marketing	64,732		83,767		(22.7)	%	205,089		197,475		3.9	%
Product development(1)	Product development(1)	40,638		34,349		18.3	%	119,280		96,334		23.8	%	Product development(1)	50,474		40,638		24.2	%	148,729		119,280		24.7	%
General and administrative(1)	General and administrative(1)	64,418		51,118		26.0	%	183,278		162,791		12.6	%	General and administrative(1)	71,970		64,418		11.7	%	212,468		183,278		15.9	%
Depreciation and amortization(2)	Depreciation and amortization(2)	14,326		15,552		(7.9)	%	43,529		46,368		(6.1)	%	Depreciation and amortization(2)	21,760		14,326		51.9	%	61,150		43,529		40.5	%
Total operating costs	Total operating costs	$	460,127	$	387,299	18.8	%	$	1,302,895	$	1,178,559	10.5	%	Total operating costs	$	503,792	$	460,127	9.5	%	$	1,504,240	$	1,302,895	15.5	%
(1)Technology costs, which include product development costs and certain components of cost of revenue and general and administrative costs as described below, increased 20.1% to $92.1 million compared with $76.7 million in the third quarter of 2021 and increased 22.0% to $272.4 million compared with $223.3 million in the first nine months of 2021.														(1)Technology costs, which include product development costs and certain components of cost of revenue and general and administrative costs as described below, increased 20.1% to $92.1 million compared with $76.7 million in the third quarter of 2021 and increased 22.0% to $272.4 million compared with $223.3 million in the first nine months of 2021.
(2) Includes amortization of intangible assets related to our acquisitions of approximately $7 million and $19 million for the quarter and nine months ended September 25, 2022, respectively.														(2) Includes amortization of intangible assets related to our acquisitions of approximately $7 million and $19 million for the quarter and nine months ended September 25, 2022, respectively.

Cost of Revenue (excluding depreciation and amortization)

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

~~2021 Compared with 2020~~

Cost of revenue increased in the third quarter of ~~2021~~2022 by ~~$21.3~~$37.9 million, or ~~9.0%~~14.7%, compared with the third quarter of ~~2020,~~2021. The increase is largely due to higher journalism costs of ~~$15.1~~$24.6 million, higher subscriber servicing costs of ~~$3.6~~$6.2 million, higher ~~advertising servicing~~digital content delivery costs of ~~$1.4~~$3.7 million, ~~and~~ higher print production and distribution costs of ~~$1.2~~$2.1 million and higher advertising servicing costs of $1.3 million. The increase in journalism costs was largely ~~driven by~~due to the inclusion of $16.8 million in journalism costs from The Athletic as well as growth in the number of employees who work in ~~the newsroom and on our Games, Cooking and audio products, costs in connection with the production of audio content and a higher incentive compensation accrual.~~The New York Times Group newsroom. The increase in subscriber servicing costs was primarily due to the inclusion of $2.5 million of subscriber servicing costs from The Athletic and higher credit card processing fees and third-party commissions due to increased subscriptions. ~~Advertising servicing~~The increase in digital content delivery costs ~~increased~~was primarily due to higher cloud-related costs, as ~~a result of costs to produce~~well as higher ~~creative services revenues.~~compensation and benefits. The increase in print production and distribution costs was largely due to an increase in ~~compensation and benefits,~~ newsprint pricing and ~~higher utilities~~increased commercial printing activity. Advertising servicing costs increased primarily due to an increase in live events. Technology costs in Cost of revenue, which include costs related to content delivery and ~~maintenance costs partially offset by lower outside printing and distribution costs.~~subscriber technology, increased 18.1% to $25.4 million compared with $21.5 million in the third quarter of 2021.

Cost of revenue increased in the first nine months of ~~2021~~2022 by ~~$50.3~~$117.5 million, or ~~7.1%~~15.5%, compared with the first nine months of ~~2020,~~2021. The increase is largely due to higher journalism costs of ~~$42.2~~$77.7 million, higher subscriber servicing costs of ~~$11.3~~$19.1 million, higher print production and distribution costs of $10.5 million, higher digital content delivery costs of ~~$4.1~~ $7.1

million and higher advertising servicing costs of ~~$3.2 million. The increases were partially offset by lower print production and distribution costs of $10.5~~$3.1 million. The increase in journalism costs was largely driven by the inclusion of $45.9 million in journalism costs from The Athletic, as well as growth in the number of employees who work in ~~the~~The New York Times Group newsroom and on our Games, Cooking, Audm and audio products, a higher incentive compensation accrual and costs in connection with the production of audio content. This cost growth was partially offset by lower content creation costs as a result of fewer television episodes.Wirecutter products. The increase in subscriber servicing costs was primarily due to the inclusion of $5.7 million in subscriber servicing costs from The Athletic, as well as higher credit card processing fees and third-party commissions due to increased subscriptions. Digital content delivery costs increased due to a higher incentive compensation accrual and higher cloud storage costs. Advertising servicing costs increased as a result of costs to produce higher creative services revenues. The ~~decrease~~increase in print production and distribution costs was largely due to ~~lower outside~~an increase in newsprint pricing and fuel costs and increased commercial printing ~~and distribution costs, as well as lower newsprint consumption and pricing.~~

~~2021 Compared with 2019~~

~~Cost of revenue increased~~activity. The increase in the third quarter of 2021 by $12.1 million, or 4.9%, compared with the third quarter of 2019, largely due to higher journalism costs of $19.2 million, higher subscriber servicing costs of $6.7 million, and higher digital content delivery costs of $5.1 million. The increases were partially offset by lower print production and distribution costs of $12.4 million and lower advertising servicing costs of $6.5 million. The increase in journalism costs was largely driven by growth in the number of employees who work in the newsroom and on our Games, Cooking and audio products, and a higher incentive compensation accrual. The increase in subscriber servicing costs was primarily due to higher ~~credit card processing fees~~cloud-related costs, as well as higher compensation and ~~third-party commissions due to increased subscriptions. Digital content delivery~~benefits. Advertising servicing costs increased primarily due to ~~higher cloud-related costs and~~ an increase in ~~the number of employees. The decrease~~live events. Technology costs in print production and distribution costs was largely due to lower newsprint consumption and pricing, lower distribution costs, and lower outside printing costs. Advertising servicing costs decreased primarily as a result of the closure of our HelloSociety and Fake Love digital marketing agencies, as well as lower volume of creative services campaigns and live events.

Cost of revenue, which include costs related to content delivery and subscriber technology, increased 16.0%to $75.6 million compared with $64.9 million in the first nine months of 2021 by $30.3 million, or 4.2%, compared with the first nine months of 2019, largely due to higher journalism costs of $61.9 million, higher subscriber servicing costs of $18.5 million, and higher digital content delivery costs of $16.6 million. The increases were partially offset by lower print production and distribution costs of $52.4 million and lower advertising costs of $14.3 million. The increase in journalism costs was largely driven by growth in the number of employees who work in the newsroom and on our Games, Cooking and audio products, and a higher incentive compensation accrual. The increase in subscriber servicing costs was primarily due to higher credit card processing fees and third-party commissions due to increased subscriptions. Digital content delivery costs increased due to higher cloud storage costs and growth in the number of employees. The decrease in print production and distribution costs was largely due to lower newsprint consumption and pricing, as well as lower distribution costs and outside printing costs. Advertising servicing costs decreased primarily as a result of the closure of our HelloSociety and Fake Love digital marketing agencies as well as fewer live events.2021.

Sales and Marketing

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

~~2021 Compared with 2020~~

Sales and marketing costs in the third quarter of ~~2021 increased~~2022 decreased by ~~$33.2~~$19.0 million, or ~~65.5%~~22.7%, compared with the third quarter of ~~2020,~~2021. The decrease is primarily due to ~~higher~~lower media ~~expenses.~~expenses at The New York Times Group, partially offset by $7.4 million in sales and marketing costs from The Athletic and growth in the number of sales and marketing employees.

Sales and marketing costs in the first nine months of ~~2021~~2022 increased by ~~$33.5~~$7.6 million, or ~~20.4%~~3.9%, compared with the first nine months of ~~2020. The increase~~2021, largely due to the inclusion of $15.1 million in sales and marketing costs ~~resulting~~ from ~~higher media expenses was~~The Athletic, as well as growth in the number of sales and marketing employees, partially offset by lower ~~advertising sales costs.~~media expenses at The New York Times Group.

Media expenses ~~increased~~ decreased44.7%to $30.6 million in the third quarter of 2022 from $55.3 million in the third quarter of ~~2021 from $27.3~~2021. Media expenses decreased 10.3% to $107.9 million in the ~~third quarter~~first nine months of ~~2020 and increased to~~2022 from $120.2 million in the first nine months of ~~2021 from $89.2 million in~~2021. In each case, the ~~first nine months of 2020. The Company increased media expenses in~~decreases were the ~~third quarter of 2021 as we were able to profitably scale media spend as a~~ result of ~~strong demand for news and success in converting readers to subscribers.~~lower brand marketing expenses at The ~~Company had reduced its marketing expense in 2020 during the earlier stages of the Covid-19 pandemic.~~

~~2021 Compared with 2019~~

~~Sales and marketing costs in the third quarter of 2021 increased by $19.6 million, or 30.5%, compared with the third quarter of 2019, primarily due to higher media expenses.~~

Sales and marketing costs in the first nine months of 2021 decreased by $3.8 million, or 1.9%, compared with the first nine months of 2019. The decrease in sales and marketing costs is primarily a result of the closure of our HelloSociety and Fake Love digital marketing agencies,New York Times Group, partially offset by ~~higher media expenses and~~ the ~~growth in the number~~inclusion of ~~marketing employees.~~

Media expenses increased to $55.3 million in the third quarter of 2021 from $35.9 million in the third quarter of 2019 and increased to $120.2 million in the first nine months of 2021 from $114.6 million in the first nine months of 2019. The ~~Company increased media expenses in the third quarter of 2021 as we were able to profitably scale media spend as a result of strong demand for news and success in converting readers to subscribers.~~Athletic.

Product Development

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

~~2021 Compared with 2020~~ All product development costs are technology costs.

Product development costs in the third quarter of ~~2021~~2022 increased by ~~$6.3~~$9.8 million, or ~~18.3%~~24.2%, compared with the third quarter of ~~2020,~~2021. Product development costs in the first nine months of 2022 increased by $29.4 million, or 24.7%, compared with the first nine months of 2021. The increases in each period were largely due to growth in the number of digital product development employees in connection with digital subscription strategic initiatives, as well as ~~a higher incentive compensation accrual.~~

~~Product~~the inclusion of product development costs from The Athletic of $4.2 million in the third quarter of 2022 and $10.4 million in the first nine months of ~~2021 increased by $22.9 million, or 23.8%, compared with the first nine months of 2020, largely due to the factors identified above.~~2022.

~~2021 Compared with 2019~~

Product development costs in the third quarter of 2021 increased by $13.8 million, or 51.1%, compared with the third quarter of 2019, largely due to growth in the number of digital product development employees to support our digital subscription strategic initiatives as well as a higher incentive compensation accrual.

~~Product development costs in the first nine months of 2021 increased by $43.0 million, or 56.3%, compared with the first nine months of 2019, largely due to the factors identified above.~~

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.

~~2021 Compared with 2020~~

General and administrative costs in the third quarter of ~~2021~~2022 increased by ~~$13.3~~$7.6 million, or ~~26.0%~~11.7%, compared with the third quarter of ~~2020,~~2021. The increase is primarily due to athe inclusion of $2.2 million in general and administrative costs from The Athletic, higher ~~incentive compensation accrual,~~severance expense, growth in the number of employees, ~~stock price appreciation on stock-based awards~~ and higher ~~consulting~~building operations and maintenance costs. Technology costs in general and administrative, which include costs related to enterprise technology and information security, increased 11.4% to $16.2 million compared with $14.5 million in the third quarter of 2021.

General and administrative costs in the first nine months of ~~2021~~2022 increased by ~~$20.5~~$29.2 million, or ~~12.6%~~15.9%, compared with the first nine months of 2020, primarily due to a higher incentive compensation accrual, higher consulting costs and growth in the number of employees, partially offset by a severance charge in the second quarter of 2020, and lower building operations and maintenance costs in 2021.

~~2021 Compared with 2019~~

~~General and administrative costs in the third quarter of 2021 increased by $14.4 million, or 28.8%, compared with the third quarter of 2019,~~ The increase is primarily due to growth in the number of employees, ~~mainly~~the inclusion of $6.9 million in ~~the~~general and administrative costs from The Athletic, higher building operations and maintenance costs, as well as higher severance expense. Technology costs in general and administrative, which include costs related to enterprise technology and ~~human resources departments in support of employee growth in other areas, a higher incentive compensation accrual, stock price appreciation on stock-based awards and higher consulting costs.~~

~~General and administrative costs~~information security, increased 23.1% to $48.1 million compared with $39.1 million in the first nine months of ~~2021 increased by $31.2 million, or 20.5%, compared with the first nine months of 2019, largely due to the factors identified above.~~2021.

Depreciation and Amortization

~~2021 Compared with 2020~~

Depreciation and amortization costs in the third quarter and first nine months of ~~2021 decreased $1.2~~2022 increased $7.4 million, or ~~7.9%~~51.9%, and ~~$2.8~~$17.6 million, or ~~6.1%~~40.5%, respectively, compared with the same prior-year periods. The ~~decrease in both periods~~increase is due to ~~lower depreciation~~The Athletic intangible assets amortization of ~~software assets.~~

~~2021 Compared with 2019~~

~~Depreciation~~approximately $6.8 million and ~~amortization costs~~$18.2 million in the third quarter and first nine months of ~~2021 decreased $1.1 million, or 7.3%,~~2022, respectively, and ~~$2.0 million, or 4.4%, respectively, compared with the same periods in 2019. The decrease in both periods is due to~~higher equipment depreciation, partially offset by lower depreciation of software ~~assets, partially offset by equipment~~assets. See Notes 5 and ~~building projects that were placed in service.~~

~~See Note~~ 7 of the Notes to the Condensed Consolidated Financial Statements for additional information regarding the estimated aggregate amortization expense resulting from The Athletic acquisition and other ~~items.~~items, respectively.

Segment Information

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


	For the Quarters Ended								For the Nine Months Ended
(In thousands)	September 25, 2022			September 26, 2021			% Change		September 25, 2022			September 26, 2021			% Change
Revenues
The New York Times Group	$	523,570		$	509,103		2.8	%	$	1,584,970		$	1,480,645		7.0	%
The Athletic	24,110			—			*		55,815			—			*
Total revenues	$	547,680		$	509,103		7.6	%	$	1,640,785		$	1,480,645		10.8	%
Adjusted operating costs
The New York Times Group	$	445,020		$	444,050		0.2	%	$	1,349,880		$	1,254,582		7.6	%
The Athletic	33,683			—			*		84,806			—			*
Total adjusted operating costs	$	478,703		$	444,050		7.8	%	$	1,434,686		$	1,254,582		14.4	%
Adjusted operating profit
The New York Times Group	$	78,550		$	65,053		20.7	%	$	235,090		$	226,063		4.0	%
The Athletic	(9,573)			—			*		(28,991)			—			*
Total adjusted operating profit	$	68,977		$	65,053		6.0	%	$	206,099		$	226,063		(8.8)	%
Adjusted operating profit margin % - New York Times Group	15.0		%	12.8		%	220 bps		14.8		%	15.3		%	(50) bps
* Represents a change equal to or in excess of 100% or not meaningful.


Revenues detail by segment
	For the Quarters Ended						For the Nine Months Ended
(In thousands)	September 25, 2022		September 26, 2021		% Change		September 25, 2022		September 26, 2021		% Change
The New York Times Group
Subscription	$	360,997	$	342,609	5.4	%	$	1,089,218	$	1,010,910	7.7	%
Advertising	108,134		110,887		(2.5)	%	337,455		320,777		5.2	%
Other	54,439		55,607		(2.1)	%	158,297		148,958		6.3	%
Total	$	523,570	$	509,103	2.8	%	$	1,584,970	$	1,480,645	7.0	%
The Athletic
Subscription	$	21,675	$	—	*		$	49,052	$	—	*
Advertising	2,333		—		*		6,661		—		*
Other	102		—		*		102		—		*
Total	$	24,110	$	—	*		$	55,815	$	—	*
The New York Times Company
Subscription	$	382,672	$	342,609	11.7	%	$	1,138,270	$	1,010,910	12.6	%
Advertising	110,467		110,887		(0.4)	%	344,116		320,777		7.3	%
Other	54,541		55,607		(1.9)	%	158,399		148,958		6.3	%
Total	$	547,680	$	509,103	7.6	%	$	1,640,785	$	1,480,645	10.8	%
* 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						For the Nine Months Ended
(In thousands)	September 25, 2022		September 26, 2021		% Change		September 25, 2022		September 26, 2021		% Change
The New York Times Group
Cost of revenue (excluding depreciation and amortization)	$	274,945	$	256,978	7.0	%	$	824,405	$	759,333	8.6	%
Sales and marketing	57,326		83,767		(31.6)	%	189,970		197,475		(3.8)	%
Product development	46,273		40,638		13.9	%	138,225		119,280		15.9	%
Adjusted general and administrative (1)	66,476		62,667		6.1	%	197,280		178,494		10.5	%
Total	$	445,020	$	444,050	0.2	%	$	1,349,880	$	1,254,582	7.6	%
The Athletic
Cost of revenue (excluding depreciation and amortization)	$	19,911	$	—	*		$	52,399	$	—	*
Sales and marketing	7,406		—		*		15,119		—		*
Product development	4,201		—		*		10,504		—		*
Adjusted general and administrative (2)	2,165		—		*		6,784		—		*
Total	$	33,683	$	—	*		$	84,806	$	—	*
The New York Times Company
Cost of revenue (excluding depreciation and amortization)	$	294,856	$	256,978	14.7	%	$	876,804	$	759,333	15.5	%
Sales and marketing	64,732		83,767		(22.7)	%	205,089		197,475		3.9	%
Product development	50,474		40,638		24.2	%	148,729		119,280		24.7	%
Adjusted general and administrative (1)	68,641		62,667		9.5	%	204,064		178,494		14.3	%
Total	$	478,703	$	444,050	7.8	%	$	1,434,686	$	1,254,582	14.4	%
(1) Excludes severance of $2.0 million and $4.5 million for the quarter and nine months ended September 25, 2022, respectively, and multiemployer pension withdrawal costs of $1.3 million and $3.7 million for the quarter and nine months ended September 25, 2022, respectively. Excludes severance of $0.5 million and $0.9 million for the quarter and nine months ended September 26, 2021, respectively, and multiemployer pension withdrawal costs of $1.3 million and $3.9 million for the quarter and nine months ended September 26, 2021, respectively.
(2) Excludes $0.2 million of severance for the nine months ended September 25, 2022.
* Represents a change equal to or in excess of 100% or not meaningful.

The New York Times Group

The New York Times Group revenues grew 2.8% in the third quarter of 2022 to $523.6 million from $509.1 million in the third quarter of 2021 and grew 7.0% in the first nine months of 2022 to $1.6 billion from $1.5 billion in the first nine months of 2021. Subscription revenues increased 5.4% to $361.0 million from $342.6 million in the third quarter of 2021 and increased 7.7% to $1.1 billion from $1.0 billion in the first nine months of 2021, primarily due to growth in subscription revenues from digital-only products. Advertising revenues decreased 2.5% to $108.1 million from $110.9 million in the third quarter of 2021 due to lower print advertising revenues. Advertising revenues increased 5.2% to $337.5 million from $320.8 million in the first nine months of 2021 primarily due to growth in print advertising.

The New York Times Group adjusted operating costs grew 0.2% in the third quarter of 2022 to $445.0 million from $444.1 million in the third quarter of 2021 and grew 7.6% in the first nine months of 2022 to $1.35 billion from $1.25 billion in the first nine months of 2021. The increase in costs in the third quarter and in the first nine months of 2022 was primarily related to growth in the number of employees, partially offset by lower media expenses.

The New York Times Group adjusted operating profit increased 20.7% in the third quarter of 2022 to $78.6 million from $65.1 million in the third quarter of 2021 and increased 4.0% in the first nine months of 2022 to $235.1 million from $226.1 million in the first nine months of 2021, as higher revenues more than offset higher costs.

The Athletic

The Athletic revenues in the third quarter and first nine months (from February 1, 2022) of 2022 totaled $24.1 million and $55.8 million, respectively, primarily from subscription revenues.

The Athletic adjusted operating costs totaled $33.7 million and $84.8 million for the third quarter and first nine months (from February 1, 2022) of 2022, respectively, largely from cost of revenue, which was primarily related to journalism costs.

The Athleticadjusted operating loss totaled $9.6 million and $29.0 million for the third quarter and first nine months (from February 1, 2022) of 2022, respectively.

NON-OPERATING ITEMS

Other Components of Net Periodic Benefit Costs

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

Interest Income and other, net

See Note 7 of the Notes to the Condensed Consolidated Financial Statements for information regarding interest income and other, net.

Income Taxes

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

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

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

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

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

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

The special items in 2022 consisted of:

•a $7.1 million gain ($5.2 million or $0.03 per share after tax) in the third quarter related to a multiemployer pension liability adjustment;

•a $34.2 million gain ($24.9 million or $0.15 per share after tax) in the second quarter related to an agreement to lease and subsequently sell approximately four acres of land at our printing and distribution facility in College Point, N.Y. The gain is included in Interest income and other, net in our Condensed Consolidated Statements of Operations; and

•a $34.7 million pre-tax charge ($25.4 million or $0.15 per share after tax) in the first quarter related to the acquisition of 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.

The special items in 2021 consisted of:

•a $27.2 million gain ($19.8 million ~~after tax~~ or $0.12 per ~~share)~~share after tax) in the third quarter related to a non-marketable equity investment transaction. The gain ~~consists of a $15.2 million realized gain due to the partial sale of the investment and an $11.9 million unrealized gain due to the mark to market of the remaining investment, and~~ is included in Interest income and other, net in our Condensed Consolidated Statements of Operations; and

•a $3.8 million charge ($2.8 million or $0.02 per share after tax) in the second quarter resulting from the termination of a tenant’s lease in ~~the~~our Company Headquarters.

~~The special item in 2020 consisted of:~~

•a $10.1 million gain ($7.4 million after tax or $0.04 per share) in the first quarter related to a non-marketable equity investment transaction. The gain consists of a $2.5 million realized gain due to the partial sale of the investment and a $7.6 million unrealized gain due to the mark to market of the remaining investment, and is included in ~~Interest income and other, net~~ ~~in our Condensed Consolidated Statements of Operations.~~

~~The special items in 2019 consisted of:~~

•a $4.0 million charge ($3.0 million after tax or $0.02 per share) in the third quarter related to restructuring charges, including impairment and severance charges related to the closure of our digital marketing agency, HelloSociety, LLC; and

•~~a $2.0 million gain ($1.5 million after tax or $0.01 per share) in the third quarter from a multiemployer pension plan liability adjustment.~~

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 the Company’s period-to-period performance because it eliminates items that 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 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 multiemployer pension plan withdrawal costs. Total operating costs, excluding these items, ~~provide~~provides investors with helpful supplemental information on 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.

Included in our non-GAAP financial measures are non-operating retirement costs which are primarily tied to financial market performance and changes in market interest rates and investment performance. Management considers non-operating retirement costs to be outside the performance of the business and believes that presenting adjusted diluted earnings per share from continuing operations excluding non-operating retirement costs and presenting adjusted operating results excluding multiemployer pension plan withdrawal costs, in addition to the Company’s GAAP diluted earnings per share from continuing operations and GAAP operating results, provide increased transparency and a better understanding of the underlying trends in the Company’s operating business performance.

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


Reconciliation of diluted earnings per share from continuing operations excluding severance, non-operating retirement costs and special items (or adjusted diluted earnings per share from continuing operations)	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)													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							For the Quarters Ended						For the Nine Months Ended
		September 26, 2021		September 27, 2020		% Change		September 26, 2021		September 27, 2020		% Change			September 25, 2022		September 26, 2021		% Change		September 25, 2022		September 26, 2021		% Change
Diluted earnings per share from continuing operations	Diluted earnings per share from continuing operations	$	0.32	$	0.20	60.0	%	$	0.89	$	0.54	64.8	%	Diluted earnings per share from continuing operations	$	0.22	$	0.32	(31.3)	%	$	0.62	$	0.89	(30.3)	%
Add:	Add:													Add:
Severance	Severance	—		—		—		0.01		0.04		(75.0)	%	Severance	0.01		—		*		0.03		0.01		*
Non-operating retirement costs:	Non-operating retirement costs:													Non-operating retirement costs:
Multiemployer pension plan withdrawal costs	Multiemployer pension plan withdrawal costs	0.01		0.01		—		0.02		0.02		—		Multiemployer pension plan withdrawal costs	0.01		0.01		—		0.02		0.02		—
Other components of net periodic benefit costs	Other components of net periodic benefit costs	0.02		0.01		*		0.05		0.04		25.0	%	Other components of net periodic benefit costs	0.01		0.02		(50.0)	%	0.03		0.05		(40.0)	%
Special items:	Special items:													Special items:
Acquisition-related costs														Acquisition-related costs	—		—		—		0.21		—		*
Lease termination charge														Lease termination charge	—		—		—		—		0.02		*

Gain from non-marketable equity security		(0.16)		—		*		(0.16)		(0.06)		*
Lease termination charge		—		—		—		0.02		—		*
Gain from non-marketable equity investment														Gain from non-marketable equity investment	—		(0.16)		*		—		(0.16)		*
Land sale														Land sale	—		—		—		(0.20)		—		*
Gain from pension liability adjustment														Gain from pension liability adjustment	(0.04)		—		*		(0.04)		—		*
Income tax expense of adjustments	Income tax expense of adjustments	0.04		(0.01)		*		0.02		(0.01)		*		Income tax expense of adjustments	—		0.04		*		(0.01)		0.02		*
Adjusted diluted earnings per share from continuing operations(1)	Adjusted diluted earnings per share from continuing operations(1)	$	0.23	$	0.22	4.5	%	$	0.84	$	0.57	47.4	%	Adjusted diluted earnings per share from continuing operations(1)	$	0.21	$	0.23	(8.7)	%	$	0.65	$	0.84	(22.6)	%

(1)Amounts may not add due to rounding.

* 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								For the Nine Months Ended
	September 25, 2022			September 26, 2021			% Change		September 25, 2022			September 26, 2021			% Change
Operating profit	$	51,015		$	48,976		4.2	%	$	108,960		$	173,919		(37.4)	%
Add:
Depreciation and amortization	21,760			14,326			51.9	%	61,150			43,529			40.5	%
Severance	2,010			476			*		4,670			882			*
Multiemployer pension plan withdrawal costs	1,319			1,275			3.5	%	3,734			3,902			(4.3)	%
Special items:
Acquisition-related costs	—			—			—		34,712			—			*
Lease termination charge	—			—			*		—			3,831			*
Gain from pension liability adjustment	(7,127)			—			*		(7,127)			—			*
Adjusted operating profit	$	68,977		$	65,053		6.0	%	$	206,099		$	226,063		(8.8)	%
Divided by:
Revenue	547,680			509,103			7.6	%	1,640,785			1,480,645			10.8	%
Operating profit margin	9.3		%	9.6		%	(30) bps		6.6		%	11.7		%	(510) bps
Adjusted operating profit margin	12.6		%	12.8		%	(20) bps		12.6		%	15.3		%	(270) 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						For the Nine Months Ended
	September 25, 2022		September 26, 2021		% Change		September 25, 2022		September 26, 2021		% Change
Operating costs	$	503,792	$	460,127	9.5	%	$	1,504,240	$	1,302,895	15.5	%
Less:
Depreciation and amortization	21,760		14,326		51.9	%	61,150		43,529		40.5	%
Severance	2,010		476		*		4,670		882		*
Multiemployer pension plan withdrawal costs	1,319		1,275		3.5	%	3,734		3,902		(4.3)	%
Adjusted operating costs	$	478,703	$	444,050	7.8	%	$	1,434,686	$	1,254,582	14.4	%
* 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
September 26, 2021 September 27, 2020 2021 vs 2020 % Change September 29, 2019 2021 vs 2019 % Change
Operating profit $ 48,976 $ 39,596 23.7 % $ 25,087 95.2 %
Add:
Depreciation and amortization 14,326 15,552 (7.9) % 15,450 (7.3) %
Severance 476 — * 367 29.7 %
Multiemployer pension plan withdrawal costs 1,275 1,376 (7.3) % 1,204 5.9 %
Special items:
Restructuring charge — — — 4,008 *
Gain from pension liability adjustment — — — (2,045) *
Adjusted operating profit $ 65,053 $ 56,524 15.1 % $ 44,071 47.6 %
* 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
September 26, 2021 September 27, 2020 2021 vs 2020 % Change September 29, 2019 2021 vs 2019 % Change
Operating costs $ 460,127 $ 387,299 18.8 % $ 401,451 14.6 %
Less:
Depreciation and amortization 14,326 15,552 (7.9) % 15,450 (7.3) %
Severance 476 — * 367 29.7 %
Multiemployer pension plan withdrawal costs 1,275 1,376 (7.3) % 1,204 5.9 %
Adjusted operating costs $ 444,050 $ 370,371 19.9 % $ 384,430 15.5 %
* Represents a change equal to or in excess of 100% or not meaningful.

3541

Reconciliation of operating profit before depreciation and amortization, severance, multiemployer pension plan withdrawal costs and special items (or adjusted operating profit)
For the Nine Months Ended
September 26, 2021 September 27, 2020 2021 vs 2020 % Change September 29, 2019 2021 vs 2019 % Change
Operating profit $ 173,919 $ 95,722 81.7 % $ 97,617 78.2 %
Add:
Depreciation and amortization 43,529 46,368 (6.1) % 45,548 (4.4) %
Severance 882 6,675 (86.8) % 2,441 (63.9) %
Multiemployer pension plan withdrawal costs 3,902 4,198 (7.1) % 4,454 (12.4) %
Special items:
Lease termination charge 3,831 — * — *
Restructuring charge — — — 4,008 *
Gain from pension liability adjustment — — — (2,045) *
Adjusted operating profit $ 226,063 $ 152,963 47.8 % $ 152,023 48.7 %
* Represents a change equal to or in excess of 100% or not meaningful.
Supplementary Information

Reconciliation of operating costs before depreciation and amortization, severance and multiemployer pension plan withdrawal costs (or adjusted operating costs)
For the Nine Months Ended
September 26, 2021 September 27, 2020 2021 vs 2020 % Change September 29, 2019 2021 vs 2019 % Change
Operating costs $ 1,302,895 $ 1,178,559 10.5 % $ 1,204,241 8.2 %
Less:
Depreciation and amortization 43,529 46,368 (6.1) % 45,548 (4.4) %
Severance 882 6,675 (86.8) % 2,441 (63.9) %
Multiemployer pension plan withdrawal costs 3,902 4,198 (7.1) % 4,454 (12.4) %
Adjusted operating costs $ 1,254,582 $ 1,121,318 11.9 % $ 1,151,798 8.9 %
* Represents a change equal to or in excess of 100% or not meaningful.


Beginning with the second quarter of 2022, the Company has updated its rounding methodology for subscriptions (including net subscriptions additions), subscribers (including net subscriber additions) and subscriber-related metrics (other than ARPU) and will round to the nearest ten thousand instead of the nearest thousand as it had previously been presenting. In addition, starting with the second quarter of 2022, the Company has made a change in its methodology for counting subscribers and subscriptions to The Athletic to exclude free trials (which are primarily long-dated (6-12 months) and given as part of its business development partnerships). In addition, during the second quarter of 2022, the Company identified certain nonmaterial errors in previously released subscription, subscriber and subscriber-related metrics data for the periods presented below. As a result, our computation of the number of The Athletic subscribers and subscriptions as of the acquisition date each decreased by 72,000, as reported in our second quarter results. The below supplementary tables, which were included in our second quarter results, update certain historical disclosures for the first quarters of 2021 and 2022 and the fourth quarter of 2021 to reflect the changes in methodology and the error corrections described above. The adjustments had no impact on the Company’s consolidated balance sheets, consolidated statements of comprehensive income (loss) or the consolidated statements of cash flows for any of these periods. The impact of the items noted above on our historical disclosures is as follows:

The following table summarizes the adjustments to digital subscribers as of the end of the first quarters of 2022 and 2021, and fourth quarter of 2021:

	First Quarter						Fourth Quarter
	2022		2022	2021		2021	2021		2021
	As Filed	Adj	Adjusted	As Filed	Adj	Adjusted	As Filed	Adj	Adjusted
Digital-only subscribers(1)	8,328	(98)	8,230	6,101	(18)	6,083	6,840	(57)	6,783
(1) Refer to the corresponding footnotes in the main section of the Results of Operations.

The following table summarizes the adjustments to digital subscriptions as of the end of the first quarter of 2022:

First Quarter 2022

As Filed

Adj

Adjusted

Digital-only subscriptions(1)

9,620

(41)

9,579

(1) Refer to the corresponding footnotes in the main section of the Results of Operations.


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

	First Quarter												Fourth Quarter
	2022				2022		2021				2021		2021				2021
	As Filed		Adj		Adjusted		As Filed		Adj		Adjusted		As Filed		Adj		Adjusted
Digital-only subscriber ARPU (1)	$	9.04	$	0.09	$	9.13	$	9.15	$	0.03	$	9.18	$	9.55	$	0.05	$	9.60
Total multiproduct subscribers (1)(2)	2,569		(3)		2,566		2,100		3		2,103		2,351		—		2,351
Digital-only subscribers with News (1)	6,150		(49)		6,101		5,290		(20)		5,270		5,880		(54)		5,826
Subscribers with The Athletic (1)	1,257		(41)		1,216		—		—		—		—		—		—
(1) Refer to the corresponding footnotes in the main section of the Results of Operations.
(2) Subscribers with paid subscriptions that include access to two or more of the Company’s products, including through separate standalone subscriptions; a digital bundle; or a print home-delivery subscription (which includes access to our digital news product, as well as The Athletic and our Games, Cooking and Wirecutter products). This metric is currently called “Digital-only bundle and multiproduct subscribers” and excludes subscribers with a print home-delivery subscription.

3642

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. Although there is uncertainty related to the anticipated continued effect of the Covid-19 pandemic on our business (as referenced above and in “Item 1A — Risk Factors” in our Annual Report on Form 10-K for the year ended December 27, 2020), given the strength of our balance sheet and based on the information currently available to us, we do not expect the impact of the pandemic to have a material effect on our liquidity position. As of September ~~26, 2021,~~25, 2022, we had cash, cash equivalents and short- and long-term marketable securities of ~~$1.04 billion.~~$468.6 million. Our cash and marketable securities balances between ~~the end of 2020~~December 26, 2021, and September ~~26, 2021, increased~~25, 2022, decreased primarily due to ~~cash proceeds from operating activities~~consideration paid for the acquisition of The Athletic and ~~proceeds from~~annual incentive compensation payments made in the ~~sale of investments, partially offset by dividend payments, capital expenditures and share-based compensation tax withholding.~~first quarter.

We have paid quarterly dividends on the Class A and Class B Common Stock each quarter since late 2013. In February ~~2021,~~2022, the Board of Directors approved an increase in the quarterly dividend to ~~$0.07~~$0.09 per share, which was paid in April ~~2021. In~~2022. On June ~~and September 2021,~~29, 2022, the Board of Directors declared a quarterly ~~dividends~~dividend of ~~$0.07~~$0.09 per share on the Class A and Class B Common Stock, which ~~were~~was paid in July 2022. On September 30, 2022, the Board of Directors declared a quarterly dividend of $0.09 per share on the Class A and Class B Common Stock, which was paid in October ~~2021.~~2022. We currently expect to continue to pay comparable cash dividends in the future, although changes in our dividends will be considered by our Board of Directors in light of our earnings, capital requirements, financial condition and other factors considered relevant.

In February 2022, the Board of Directors approved a $150.0 million Class A Common Stock repurchase program. The authorization provides that Class A shares may be purchased from time to time as market conditions warrant, through open market purchases, privately negotiated transactions or other means, including Rule 10b5-1 trading plans. We expect to repurchase shares primarily to offset the impact of dilution from our equity compensation program, but subject to market conditions and other factors, we may also make opportunistic repurchases to reduce share count. There is no expiration date with respect to this authorization. As of September 25, 2022, we had repurchased 2,324,708 shares for approximately $79.8 million (excluding commissions) under this authorization. As of October 28, 2022, we had repurchased 2,778,380 shares for approximately $93.1 million (excluding commissions) and approximately $56.9 million remained under this authorization.

Beginning in 2022, the Tax Cuts and Jobs Act of 2017 eliminates the option to deduct research and development expenditures immediately in the year incurred and instead requires taxpayers to capitalize and amortize such expenditures over five years. Although it is possible that Congress may defer, modify, or repeal this provision, potentially with retroactive effect, we have no assurance that Congress will take any action with respect to this provision. If the 2022 effective date remains in place, our initial assessment is that our cash from operations will be negatively impacted by approximately $50 million in 2022 and our net deferred tax assets will increase by a similar amount. The actual impact on fiscal 2022 cash from operations will depend on the 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.

Capital Resources

Sources and Uses of Cash

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


		For the Six Months Ended							For the Nine Months Ended
(In thousands)	(In thousands)	September 26, 2021		September 27, 2020		% Change		(In thousands)	September 25, 2022		September 26, 2021		% Change
Operating activities	Operating activities	$	209,557	$	206,683	1.4	%	Operating activities	$	85,024	$	209,557	(59.4)	%
Investing activities	Investing activities	$	(129,685)	$	(187,264)	(30.7)	%	Investing activities	$	(79,299)	$	(129,685)	(38.9)	%
Financing activities	Financing activities	$	(42,954)	$	(35,671)	20.4	%	Financing activities	$	(133,239)	$	(42,954)	210.2	%

Operating Activities

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

Net cash provided by operating activities ~~increased~~decreased in the first nine months of ~~2021~~2022 compared with the same prior-year period primarily due to higher ~~net income adjusted for non-cash items and lower~~ cash payments ~~made~~for incentive compensation, higher cash tax payments due to ~~settle accounts payable, accrued payroll~~a provision in the Tax Cuts and ~~other liabilities, partially offset by~~Jobs Act of 2017 deferring the deduction for research and development expenditures, a payment related to the acceleration of Athletic stock options in connection with the acquisition, lower ~~cash collections from accounts receivable, an increase in other assets~~net income and lower cash payments received from prepaid ~~subscriptions.~~subscriptions, partially offset by higher cash collections from accounts receivable.

Investing Activities

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

Net cash used in investing activities in the first nine months of ~~2021~~2022 was primarily related to ~~$129.0~~$515.3 million in consideration paid for acquisitions, net ~~purchases~~ of ~~marketable securities~~cash acquired, and ~~$23.8~~$27.8 million in capital expenditures payments, partially offset by ~~$20.6~~$463.2 million ~~related to a non-marketable equity investment transaction.~~net maturities of marketable securities.

Financing Activities

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

Net cash used in financing activities in the first nine months of ~~2021~~2022 was primarily related to share repurchases of $79.8 million (excluding commissions), dividend payments of ~~$33.6~~$41.9 million and share-based compensation tax withholding payments of ~~$10.9~~$9.8 million.

Restricted Cash

We were required to maintain ~~$14.3~~$13.7 million of restricted cash as of September ~~26, 2021,~~25, 2022, and ~~$15.9~~$14.3 million as of December ~~27, 2020,~~26, 2021, substantially all of which is set aside to collateralize workers’ compensation obligations.

Capital Expenditures

Capital expenditures totaled approximately ~~$26~~$29 million and ~~$25~~$26 million in the first nine months of ~~2021~~2022 and ~~2020,~~2021, respectively. The increase in capital expenditures in 2022 was primarily driven by improvements ~~at our~~in the Company Headquarters and newsroom bureaus, partially offset by lower expenditures related to improvements at our College Point, New York, printing and distribution facility and lower expenditures on computer hardware. The improvements in our Company Headquarterswhich are intended to address growth in the number of employees and to enhance technologies that support our transition to hybrid work with employees working both from the office and remotely. The cash payments related to capital expenditures totaled approximately ~~$24~~$28 million and ~~$29~~$24 million in the first nine months of ~~2021~~2022 and ~~2020,~~2021, respectively.

Third-Party Financing

In September 2019, we entered into a $250 million five-year unsecured credit facility (the “ 2019 Credit Facility”). On July 27, 2022, the Company entered into an amendment and restatement of the 2019 Credit Facility that, among other changes, increased the committed amount to $350.0 million and extended the maturity date to July 27, 2027 (as amended and restated, the “Credit Facility”). Certain of our domestic subsidiaries have guaranteed our obligations under the Credit Facility. As of September ~~26, 2021,~~25, 2022, there was approximately $0.6 million in outstanding letters of credit and the remaining committed amount remains available. As of September 25, 2022, there were no outstanding borrowings under the Credit Facility and the Company was in compliance with the financial covenants contained in the Credit Facility. See Note 7 of the Notes to the Condensed Consolidated Financial Statements for information regarding the 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 ~~27, 2020.~~26, 2021. Other than as described in Note 2 of the Notes to the Condensed Consolidated Financial Statements, as of September ~~26, 2021,~~25, 2022, our critical accounting policies have not changed from December ~~27, 2020.~~

~~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 27, 2020. As of September~~ 26, ~~2021, our contractual obligations and off-balance sheet arrangements have not changed materially from December 27, 2020.~~2021.

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 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 identify forward-looking statements, although not all forward-looking statements contain such terms. Forward-looking statements are based upon our current expectations, estimates and assumptions 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 not limited to: ~~the impact of the Covid-19 pandemic;~~ significant competition in all aspects of our business; our ability to grow the size and profitability of our subscriber base; our dependence on metrics that are subject to inherent challenges in measurement; our ability to improve and scale our technical and data infrastructure and respond and adapt to changes in technology and consumer behavior; ~~our ability to continue to retain and grow our subscriber base;~~ numerous factors that affect our advertising revenues, including economic conditions, market dynamics, ~~audience fragmentation,~~ evolving digital advertising trends and the evolution of our strategy; damage to our brand or reputation; the impact of the Covid-19 pandemic; economic, geopolitical and other risks associated with the international scope of our business and foreign operations; our ability to attract and maintain a ~~highly skilled~~talented and diverse workforce; the impact of labor negotiations and agreements; adverse results from litigation or governmental investigations; risks associated with the acquisition of The Athletic, including, among others, those related to our ability to

realize the anticipated benefits of the acquisition, our ability to meet our publicly announced guidance about the impact of the acquisition, and the risks associated with The Athletic’s business and operations; the risks and challenges associated with investments we make in new and existing products and ~~services;~~services, including The Athletic; risks associated with other acquisitions, divestitures, investments and other transactions; ~~the~~potential effects on our operating flexibility as a result of the ~~fixed cost~~ nature of significant portions of our expenses; the effects of the size and volatility of our pension plan obligations; liabilities that may result from our participation in multiemployer pension plans; ~~the impact of labor negotiations and agreements; increases in the price of newsprint or~~ significant disruptions in our newsprint supply chain or newspaper printing and distribution ~~channels;~~channels or a significant increase in the costs to print and distribute our newspaper; security breaches and other network and information systems disruptions; our ability to comply with laws and regulations, including with respect to privacy, data protection and consumer marketing practices; payment processing risk; defects, delays or interruptions in the cloud-based hosting services we utilize; our ability to protect our intellectual property; claims of intellectual property infringement that we have been, and may be in the future, be subject to; the effects of restrictions on our operations as a result of the terms of our credit facility; our future access to capital markets and other financing options; and the concentration of control of our company due to our dual-class capital structure.

More information regarding these risks and uncertainties and other important factors that could cause actual results to differ materially from those in the forward-looking statements is set forth in “Item 1A — Risk Factors” in our Annual Report on Form 10-K for the year ended December ~~27, 2020,~~26, 2021, 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 of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as 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 ~~27, 2020,~~26, 2021, details our disclosures about market risk. As of September ~~26, 2021,~~25, 2022, there were no material changes in our market risks from December ~~27, 2020.~~26, 2021.

3945

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 ~~26, 2021.~~25, 2022. Based upon such evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective to ensure that the information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934, 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 third quarter of 2021, we completed the implementation of a new cloud-based system for print advertising billing. In connection with this system implementation, we updated our internal control over financial reporting to accommodate the resulting changes to our existing controls, systems and procedures.

There were no ~~other~~ changes in our internal control over financial reporting during the quarter ended September ~~26, 2021,~~25, 2022, other than as described in the following paragraph, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

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 ~~27, 2020.~~26, 2021.

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

(a) Unregistered Sales of Equity Securities

On July 7, 2022, we issued 1,000 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.

In ~~2015,~~February 2022, the Board of Directors ~~authorized up to $101.1~~approved a $150.0 million ~~of repurchases of shares of the Company’s~~ Class A Common ~~Stock. As of September 26, 2021, repurchases under this~~Stock repurchase program. The authorization ~~totaled $84.9 million (excluding commissions) and $16.2 million remained. Our Board of Directors has authorized us to purchase~~provides that Class A shares may be purchased from time to time as market conditions warrant, through open market purchases, privately negotiated transactions or other means, including Rule 10b5-1 trading plans. We expect to repurchase shares primarily to offset the impact of dilution from our equity compensation program, but subject to market conditions and other ~~factors.~~factors, we may also make opportunistic repurchases to reduce share count. There is no expiration date with respect to this authorization. ~~There have been no purchases~~As of September 25, 2022, repurchases under this authorization ~~since 2016.~~totaled approximately $79.8 million (excluding commissions) and approximately $70.2 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
June 27, 2022 - July 31, 2022	460,378	$	28.98	460,378	$	82,226,000
August 1, 2022 - August 28, 2022	60,000	$	31.89	60,000	$	80,312,000
August 29, 2022 - September 25, 2022	330,000	$	30.63	330,000	$	70,244,000
Total for the third quarter of 2022	850,378	$	29.79	850,378	$	70,244,000

4147

Item 6. Exhibits


Exhibit No.

10.1						Credit Agreement, dated as of July 27, 2022, among The New York Times Company, as borrower, the financial institutions party thereto as Lenders, Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, J.P. Morgan Chase Bank, National Association and Wells Fargo Bank, National Association, as Co-Syndication Agents, U.S. Bank National Association and Truist Bank, as Co-Documentation Agents and BOFA Securities, Inc., JPMorgan Chase Bank, National Association and Wells Fargo Securities, LLC, as Joint Lead Arrangers and Joint Bookrunners (incorporated by reference from Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed July 28, 2022)*

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.

101.INS						XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL 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).

*Schedules to this Exhibit have been omitted in accordance with Regulation S-K Items 601(a)(5). The Registrant agrees to furnish supplementally a copy of all omitted schedules to the Securities and Exchange Commission on a confidential basis upon request.

4248

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:	November ~~3, 2021~~2, 2022	/s/ Roland A. Caputo
		Roland A. Caputo Executive Vice President and Chief Financial Officer (Principal Financial Officer)

4349


	Quarter ended				Nine months ended
(In thousands)	September 26, 2021		September 27, 2020		September 26, 2021		September 27, 2020
Balance at the beginning of the period	$	7,450	$	9,293	$	8,431	$	9,293

Payments	—		(862)		(862)		(862)
Fair value adjustments (1)	—		—		(119)		—
Contingent consideration at the end of the period	$	7,450	$	8,431	$	7,450	$	8,431