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 ~~March 27,~~June 26, 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 ~~April~~July 29, 2022 (exclusive of treasury shares):


Class A Common Stock	~~166,699,568~~165,469,429	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 March 27, 2022 (unaudited) and December 26, 2021	1			Condensed Consolidated Balance Sheets as of June 26, 2022 (unaudited) and December 26, 2021	1
			Condensed Consolidated Statements of Operations (unaudited) for the quarters ended March 27, 2022 and March 28, 2021	3			Condensed Consolidated Statements of Operations (unaudited) for the quarters and six months ended June 26, 2022 and June 27, 2021	3
			Condensed Consolidated Statements of Comprehensive Income (unaudited) for the quarters ended March 27, 2022 and March 28, 2021	4			Condensed Consolidated Statements of Comprehensive Income (unaudited) for the quarters and six months ended June 26, 2022 and June 27, 2021	4
			Condensed Consolidated Statements of Changes In Stockholders’ Equity (unaudited) for the quarters ended March 27, 2022 and March 28, 2021	5			Condensed Consolidated Statements of Changes In Stockholders’ Equity (unaudited) for the quarters and six months ended June 26, 2022 and June 27, 2021	5
			Condensed Consolidated Statements of Cash Flows (unaudited) for the quarters ended March 27, 2022 and March 28, 2021	6			Condensed Consolidated Statements of Cash Flows (unaudited) for the six months ended June 26, 2022 and June 27, 2021	7
			Notes to the Condensed Consolidated Financial Statements	7			Notes to the Condensed Consolidated Financial Statements	8
Item	Item	2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23	Item	2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
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)


		March 27, 2022		December 26, 2021			June 26, 2022		December 26, 2021
		(Unaudited)					(Unaudited)
Assets	Assets					Assets
Current assets	Current assets					Current assets
Cash and cash equivalents	Cash and cash equivalents	$	169,171	$	319,973	Cash and cash equivalents	$	161,342	$	319,973
Short-term marketable securities	Short-term marketable securities	52,788		341,075		Short-term marketable securities	61,911		341,075
Accounts receivable (net of allowances of $12,234 in 2022 and $12,374 in 2021)		197,492		232,908
Accounts receivable (net of allowances of $11,170 in 2022 and $12,374 in 2021)						Accounts receivable (net of allowances of $11,170 in 2022 and $12,374 in 2021)	175,984		232,908
Prepaid expenses	Prepaid expenses	41,766		33,199		Prepaid expenses	46,228		33,199
Other current assets	Other current assets	25,798		25,553		Other current assets	27,873		25,553
Total current assets	Total current assets	487,015		952,708		Total current assets	473,338		952,708
Other assets	Other assets					Other assets
Long-term marketable securities	Long-term marketable securities	252,815		413,380		Long-term marketable securities	230,173		413,380
Property, plant and equipment (less accumulated depreciation and amortization of $790,884 in 2022 and $777,637 in 2021)		570,803		574,952
Property, plant and equipment (less accumulated depreciation and amortization of $804,106 in 2022 and $777,637 in 2021)						Property, plant and equipment (less accumulated depreciation and amortization of $804,106 in 2022 and $777,637 in 2021)	566,442		574,952
Goodwill	Goodwill	414,200		166,360		Goodwill	411,525		166,360
Intangible assets, net	Intangible assets, net	343,351		14,246		Intangible assets, net	336,126		14,246
Deferred income taxes	Deferred income taxes	110,628		95,800		Deferred income taxes	107,697		95,800
Miscellaneous assets	Miscellaneous assets	350,454		346,662		Miscellaneous assets	387,560		346,662
Total assets	Total assets	$	2,529,266	$	2,564,108	Total assets	$	2,512,861	$	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)


		March 27, 2022		December 26, 2021			June 26, 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	$	146,152	$	127,073	Accounts payable	$	113,982	$	127,073
Accrued payroll and other related liabilities	Accrued payroll and other related liabilities	111,568		166,464		Accrued payroll and other related liabilities	122,731		166,464
Unexpired subscriptions revenue	Unexpired subscriptions revenue	154,360		119,296		Unexpired subscriptions revenue	148,511		119,296

Accrued expenses and other	Accrued expenses and other	180,933		146,319		Accrued expenses and other	149,053		146,319
Total current liabilities	Total current liabilities	593,013		559,152		Total current liabilities	534,277		559,152
Other liabilities	Other liabilities					Other liabilities

Pension benefits obligation	Pension benefits obligation	291,035		295,104		Pension benefits obligation	286,514		295,104
Postretirement benefits obligation	Postretirement benefits obligation	35,413		36,086		Postretirement benefits obligation	34,642		36,086
Other	Other	114,729		133,041		Other	117,294		133,041
Total other liabilities	Total other liabilities	441,177		464,231		Total other liabilities	438,450		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: 2022 – 176,263,169; 2021 – 175,971,801 (including treasury shares: 2022 – 9,563,601; 2021 – 8,870,801)		17,626		17,597
Class A – authorized: 300,000,000 shares; issued: 2022 – 176,273,938; 2021 – 175,971,801 (including treasury shares: 2022 – 10,345,131; 2021 – 8,870,801)						Class A – authorized: 300,000,000 shares; issued: 2022 – 176,273,938; 2021 – 175,971,801 (including treasury shares: 2022 – 10,345,131; 2021 – 8,870,801)	17,627		17,597
Class B – convertible – authorized and issued shares: 2022 – 781,724; 2021 – 781,724	Class B – convertible – authorized and issued shares: 2022 – 781,724; 2021 – 781,724	78		78		Class B – convertible – authorized and issued shares: 2022 – 781,724; 2021 – 781,724	78		78
Additional paid-in capital	Additional paid-in capital	227,815		230,115		Additional paid-in capital	236,495		230,115
Retained earnings	Retained earnings	1,834,734		1,845,343		Retained earnings	1,896,646		1,845,343
Common stock held in treasury, at cost	Common stock held in treasury, at cost	(200,245)		(171,211)		Common stock held in treasury, at cost	(225,680)		(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	2,146		3,754		Foreign currency translation adjustments	(298)		3,754
Funded status of benefit plans	Funded status of benefit plans	(382,014)		(385,680)		Funded status of benefit plans	(378,273)		(385,680)
Net unrealized loss on available-for-sale securities	Net unrealized loss on available-for-sale securities	(7,069)		(1,276)		Net unrealized loss on available-for-sale securities	(8,466)		(1,276)
Total accumulated other comprehensive loss, net of income taxes	Total accumulated other comprehensive loss, net of income taxes	(386,937)		(383,202)		Total accumulated other comprehensive loss, net of income taxes	(387,037)		(383,202)
Total New York Times Company stockholders’ equity	Total New York Times Company stockholders’ equity	1,493,071		1,538,720		Total New York Times Company stockholders’ equity	1,538,129		1,538,720
Noncontrolling interest	Noncontrolling interest	2,005		2,005		Noncontrolling interest	2,005		2,005
Total stockholders’ equity	Total stockholders’ equity	1,495,076		1,540,725		Total stockholders’ equity	1,540,134		1,540,725
Total liabilities and stockholders’ equity	Total liabilities and stockholders’ equity	$	2,529,266	$	2,564,108	Total liabilities and stockholders’ equity	$	2,512,861	$	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 Quarters Ended				For the Six Months Ended
		March 27, 2022		March 28, 2021				June 26, 2022		June 27, 2021		June 26, 2022		June 27, 2021
		(13 weeks)				(13 weeks)				(26 weeks)
Revenues	Revenues						Revenues
Subscription	Subscription	$	371,979	$	329,084		Subscription	$	383,619	$	339,217	$	755,598	$	668,301
Advertising	Advertising	116,270		97,116			Advertising	117,379		112,774		233,649		209,890
Other	Other	49,176		46,845			Other	54,682		46,506		103,858		93,351
Total revenues	Total revenues	537,425		473,045			Total revenues	555,680		498,497		1,093,105		971,542
Operating costs	Operating costs						Operating costs
Cost of revenue (excluding depreciation and amortization)	Cost of revenue (excluding depreciation and amortization)	281,365		250,997			Cost of revenue (excluding depreciation and amortization)	300,583		251,358		581,948		502,355
Sales and marketing	Sales and marketing	77,588		60,153			Sales and marketing	62,769		53,555		140,357		113,708
Product development	Product development	47,433		38,943			Product development	50,822		39,699		98,255		78,642
General and administrative	General and administrative	71,357		56,577			General and administrative	69,141		62,283		140,498		118,860
Depreciation and amortization	Depreciation and amortization	18,686		14,717			Depreciation and amortization	20,704		14,486		39,390		29,203
Total operating costs	Total operating costs	496,429		421,387			Total operating costs	504,019		421,381		1,000,448		842,768
Acquisition-related costs	Acquisition-related costs	34,712		—			Acquisition-related costs	—		—		34,712		—

Lease termination charge							Lease termination charge	—		3,831		—		3,831

Operating profit	Operating profit	6,284		51,658			Operating profit	51,661		73,285		57,945		124,943
Other components of net periodic benefit costs	Other components of net periodic benefit costs	1,522		2,599			Other components of net periodic benefit costs	1,624		2,598		3,146		5,197

Interest income and other, net	Interest income and other, net	1,075		1,511			Interest income and other, net	35,604		1,873		36,679		3,384
Income from continuing operations before income taxes	Income from continuing operations before income taxes	5,837		50,570			Income from continuing operations before income taxes	85,641		72,560		91,478		123,130
Income tax expense	Income tax expense	1,112		9,461			Income tax expense	23,864		18,243		24,976		27,704

Net income	Net income	4,725		41,109			Net income	61,777		54,317		66,502		95,426

Net income attributable to The New York Times Company common stockholders	Net income attributable to The New York Times Company common stockholders	$	4,725	$	41,109		Net income attributable to The New York Times Company common stockholders	$	61,777	$	54,317	$	66,502	$	95,426
Average number of common shares outstanding:	Average number of common shares outstanding:						Average number of common shares outstanding:
Basic	Basic	167,866		167,647			Basic	167,636		168,012		167,816		167,828
Diluted	Diluted	168,257		168,165			Diluted	167,636		168,346		167,816		168,312
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	$	0.03	$	0.25		Basic earnings per share attributable to The New York Times Company common stockholders	$	0.37	$	0.32	$	0.40	$	0.57
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	$	0.03	$	0.24		Diluted earnings per share attributable to The New York Times Company common stockholders	$	0.37	$	0.32	$	0.40	$	0.57
Dividends declared per share	Dividends declared per share	$	0.09	$	0.07		Dividends declared per share	$	—	$	—	$	0.09	$	0.07

See Notes to Condensed Consolidated Financial Statements.

THE NEW YORK TIMES COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(In thousands)


		For the Quarters Ended				For the Quarters Ended				For the Six Months Ended
		March 27, 2022		March 28, 2021				June 26, 2022		June 27, 2021		June 26, 2022		June 27, 2021
		(13 weeks)				(13 weeks)				(26 weeks)
Net income	Net income	$	4,725	$	41,109		Net income	$	61,777	$	54,317	$	66,502	$	95,426
Other comprehensive (loss)/income, before tax:	Other comprehensive (loss)/income, before tax:						Other comprehensive (loss)/income, before tax:
Loss on foreign currency translation adjustments		(2,209)		(2,702)
(Loss)/gain on foreign currency translation adjustments							(Loss)/gain on foreign currency translation adjustments	(3,407)		935		(5,616)		(1,767)
Pension and postretirement benefits obligation	Pension and postretirement benefits obligation	5,010		6,406			Pension and postretirement benefits obligation	5,114		6,409		10,124		12,815
Net unrealized loss on available-for-sale securities	Net unrealized loss on available-for-sale securities	(7,916)		(1,067)			Net unrealized loss on available-for-sale securities	(1,911)		(779)		(9,827)		(1,846)
Other comprehensive (loss)/income, before tax	Other comprehensive (loss)/income, before tax	(5,115)		2,637			Other comprehensive (loss)/income, before tax	(204)		6,565		(5,319)		9,202
Income tax (benefit)/expense	Income tax (benefit)/expense	(1,380)		709			Income tax (benefit)/expense	(104)		1,756		(1,484)		2,465
Other comprehensive (loss)/income, net of tax	Other comprehensive (loss)/income, net of tax	(3,735)		1,928			Other comprehensive (loss)/income, net of tax	(100)		4,809		(3,835)		6,737

Comprehensive income attributable to The New York Times Company common stockholders	Comprehensive income attributable to The New York Times Company common stockholders	$	990	$	43,037		Comprehensive income attributable to The New York Times Company common stockholders	$	61,677	$	59,126	$	62,667	$	102,163

See Notes to Condensed Consolidated Financial Statements.

THE NEW YORK TIMES COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

For the Quarters Ended ~~March 27,~~June 26, 2022 and ~~March 28,~~June 27, 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			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
																																			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
Balance, March 28, 2021																		Balance, March 28, 2021	$	17,670	$	212,802	$	1,701,860	$	(171,211)	$	(408,253)	$	1,352,868	$	2,594	$	1,355,462

Net income	Net income	—		—		41,109		—		—		41,109		—		41,109		Net income	—		—		54,317		—		—		54,317		—		54,317
Dividends	Dividends	—		—		(11,835)		—		—		(11,835)		—		(11,835)		Dividends	—		—		21		—		—		21		—		21
Other comprehensive income	Other comprehensive income	—		—		—		—		1,928		1,928		—		1,928		Other comprehensive income	—		—		—		—		4,809		4,809		—		4,809
Issuance of shares:	Issuance of shares:																	Issuance of shares:
Stock options – 323,360 Class A shares		33		2,414		—		—		—		2,447		—		2,447
Restricted stock units vested – 142,707 Class A shares		14		(4,564)		—		—		—		(4,550)		—		(4,550)
Performance-based awards – 142,253 Class A shares		14		(5,947)		—		—		—		(5,933)		—		(5,933)

Restricted stock units vested – 45,280 Class A shares																		Restricted stock units vested – 45,280 Class A shares	4		(390)		—		—		—		(386)		—		(386)

Stock-based compensation	Stock-based compensation	—		4,185		—		—		—		4,185		—		4,185		Stock-based compensation	—		5,153		—		—		—		5,153		—		5,153
Distributions																		Distributions	—		-		—		—		—		—		(589)		(589)
Balance, June 27, 2021																		Balance, June 27, 2021	$	17,674	$	217,565	$	1,756,198	$	(171,211)	$	(403,444)	$	1,416,782	$	2,005	$	1,418,787

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

Balance, December 26, 2021		$	17,675	$	230,115	$	1,845,343	$	(171,211)	$	(383,202)	$	1,538,720	$	2,005	$	1,540,725
Balance, March 27, 2022																		Balance, March 27, 2022	$	17,704	$	227,815	$	1,834,734	$	(200,245)	$	(386,937)	$	1,493,071	$	2,005	$	1,495,076

Net income	Net income	—		—		4,725		—		—		4,725		—		4,725		Net income	—		—		61,777		—		—		61,777		—		61,777
Dividends	Dividends	—		—		(15,334)		—		—		(15,334)		—		(15,334)		Dividends	—		—		135		—		—		135		—		135
Other comprehensive loss	Other comprehensive loss	—		—		—		—		(3,735)		(3,735)		—		(3,735)		Other comprehensive loss	—		—		—		—		(100)		(100)		—		(100)
Issuance of shares:	Issuance of shares:																	Issuance of shares:
Stock options – 400 Class A shares		—		3		—		—		—		3		—		3
Restricted stock units vested – 127,450 Class A shares		13		(3,784)		—		—		—		(3,771)		—		(3,771)
Performance-based awards – 163,518 Class A shares		16		(5,573)		—		—		—		(5,557)		—		(5,557)
Share Repurchases - 692,800 Class A shares		—		—		—		(29,034)		—		(29,034)		—		(29,034)

Restricted stock units vested – 10,769 Class A shares																		Restricted stock units vested – 10,769 Class A shares	1		(302)		—		—		—		(301)		—		(301)

Share Repurchases - 781,530 Class A shares																		Share Repurchases - 781,530 Class A shares	—		—		—		(25,435)		—		(25,435)		—		(25,435)
Stock-based compensation	Stock-based compensation	—		7,054		—		—		—		7,054		—		7,054		Stock-based compensation	—		8,982		—		—		—		8,982		—		8,982

Balance, March 27, 2022		$	17,704	$	227,815	$	1,834,734	$	(200,245)	$	(386,937)	$	1,493,071	$	2,005	$	1,495,076
Balance, June 26, 2022																		Balance, June 26, 2022	$	17,705	$	236,495	$	1,896,646	$	(225,680)	$	(387,037)	$	1,538,129	$	2,005	$	1,540,134

THE NEW YORK TIMES COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

For the Six Months Ended June 26, 2022 and June 27, 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, December 27, 2020	$	17,609	$	216,714	$	1,672,586	$	(171,211)	$	(410,181)	$	1,325,517	$	2,594	$	1,328,111
Net income	—		—		95,426		—		—		95,426		—		95,426
Dividends	—		—		(11,814)		—		—		(11,814)		—		(11,814)
Other comprehensive income	—		—		—		—		6,737		6,737		—		6,737
Issuance of shares:
Stock options – 323,360 Class A shares	33		2,414		—		—		—		2,447		—		2,447
Restricted stock units vested – 187,987 Class A shares	18		(4,954)		—		—		—		(4,936)		—		(4,936)
Performance-based awards - 142,253 Class A shares	14		(5,947)		—		—		—		(5,933)		—		(5,933)
Stock-based compensation	—		9,338		—		—		—		9,338				9,338
Distributions	—		—		—		—		—		—		(589)		(589)
Balance, June 27, 2021	$	17,674	$	217,565	$	1,756,198	$	(171,211)	$	(403,444)	$	1,416,782	$	2,005	$	1,418,787

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	—		—		66,502		—		—		66,502		—		66,502
Dividends	—		—		(15,199)		—		—		(15,199)		—		(15,199)
Other comprehensive income	—		—		—		—		(3,835)		(3,835)		—		(3,835)
Issuance of shares:
Stock options – 400 Class A shares	—		3		—		—		—		3		—		3

Restricted stock units vested –138,219 Class A shares	14		(4,086)		—		—		—		(4,072)		—		(4,072)
Performance-based awards - 163,518 Class A shares	16		(5,573)		—		—		—		(5,557)		—		(5,557)
Share Repurchases - 1,474,330 Class A shares							(54,469)				(54,469)		—		(54,469)
Stock-based compensation	—		16,036		—		—		—		16,036		—		16,036
Balance, June 26, 2022	$	17,705	$	236,495	$	1,896,646	$	(225,680)	$	(387,037)	$	1,538,129	$	2,005	$	1,540,134

THE NEW YORK TIMES COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)


		For the Three Months Ended					For the Six Months Ended
		March 27, 2022		March 28, 2021			June 26, 2022		June 27, 2021
		(13 weeks)					(26 weeks)
Cash flows from operating activities	Cash flows from operating activities					Cash flows from operating activities
Net income	Net income	$	4,725	$	41,109	Net income	$	66,502	$	95,426
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	18,685		14,717		Depreciation and amortization	39,390		29,203

Lease termination charge						Lease termination charge	—		3,831
Amortization of right of use asset	Amortization of right of use asset	5,400		2,166		Amortization of right of use asset	4,979		4,442
Stock-based compensation expense	Stock-based compensation expense	7,054		4,185		Stock-based compensation expense	16,036		9,338

Gain on the sale of land						Gain on the sale of land	(34,227)		—

Change in long-term retirement benefit obligations	Change in long-term retirement benefit obligations	(4,555)		(4,004)		Change in long-term retirement benefit obligations	(9,823)		(8,866)

Fair market value adjustment on life insurance products	Fair market value adjustment on life insurance products	514		208		Fair market value adjustment on life insurance products	1,364		221
Other – net	Other – net	(12,198)		(1,277)		Other – net	1,508		(510)
Changes in operating assets and liabilities, net of business acquisitions:	Changes in operating assets and liabilities, net of business acquisitions:					Changes in operating assets and liabilities, net of business acquisitions:
Accounts receivable – net	Accounts receivable – net	40,930		38,522		Accounts receivable – net	62,438		30,152
Other assets	Other assets	(6,646)		(3,768)		Other assets	(12,287)		(8,027)
Accounts payable, accrued payroll and other liabilities	Accounts payable, accrued payroll and other liabilities	(75,571)		(68,428)		Accounts payable, accrued payroll and other liabilities	(120,886)		(54,170)
Unexpired subscriptions	Unexpired subscriptions	7,003		9,499		Unexpired subscriptions	1,154		9,394
Net cash provided by operating activities	Net cash provided by operating activities	(14,659)		32,929		Net cash provided by operating activities	16,148		110,434
Cash flows from investing activities	Cash flows from investing activities					Cash flows from investing activities
Purchases of marketable securities	Purchases of marketable securities	(2,492)		(177,543)		Purchases of marketable securities	(6,649)		(326,996)
Maturities of marketable securities	Maturities of marketable securities	442,895		155,782		Maturities of marketable securities	458,306		293,053

Business acquisitions, net of cash acquired	Business acquisitions, net of cash acquired	(515,299)		—		Business acquisitions, net of cash acquired	(515,299)		—
Sales of investments – net	Sales of investments – net	(958)		(70)		Sales of investments – net	(556)		271
Capital expenditures	Capital expenditures	(8,580)		(6,394)		Capital expenditures	(19,005)		(14,677)
Other-net	Other-net	425		2,017		Other-net	2,013		2,017
Net cash used in investing activities	Net cash used in investing activities	(84,009)		(26,208)		Net cash used in investing activities	(81,190)		(46,332)
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	(11,839)		(10,072)		Dividends paid	(26,895)		(21,825)
Payment of contingent consideration	Payment of contingent consideration	(1,724)		—		Payment of contingent consideration	(1,724)		—
Capital shares:	Capital shares:					Capital shares:
Proceeds from stock option exercises	Proceeds from stock option exercises	3		2,447		Proceeds from stock option exercises	3		2,441
Repurchases	Repurchases	(29,034)		—		Repurchases	(54,469)		—
Share-based compensation tax withholding	Share-based compensation tax withholding	(9,328)		(10,483)		Share-based compensation tax withholding	(9,629)		(10,901)
Net cash used in financing activities	Net cash used in financing activities	(51,922)		(18,108)		Net cash used in financing activities	(92,714)		(30,285)
Net decrease in cash, cash equivalents and restricted cash		(150,590)		(11,387)
Net (decrease)/increase in cash, cash equivalents and restricted cash						Net (decrease)/increase in cash, cash equivalents and restricted cash	(157,756)		33,817
Effect of exchange rate changes on cash	Effect of exchange rate changes on cash	(164)		(341)		Effect of exchange rate changes on cash	(812)		(280)
Cash, cash equivalents and restricted cash at the beginning of the period	Cash, cash equivalents and restricted cash at the beginning of the period	334,306		301,964		Cash, cash equivalents and restricted cash at the beginning of the period	334,306		301,964
Cash, cash equivalents and restricted cash at the end of the period	Cash, cash equivalents and restricted cash at the end of the period	$	183,552	$	290,236	Cash, cash equivalents and restricted cash at the end of the period	$	175,738	$	335,501

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 ~~March 27,~~June 26, 2022, and December 26, 2021, and the results of operations, changes in stockholders’ equity and cash flows of the Company for the periods ended ~~March 27,~~June 26, 2022, and ~~March 28,~~June 27, 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 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 26 weeks for the second quarter and first ~~quarter.~~six 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,~~31, 2022, and subsequent fiscal years will begin on January 1 and end on December 31 of each year.

On February 1, 2022, we acquired The Athletic Media Company (“The Athletic”), a global digital subscription-based sports media business that provides national and local coverage of more than 200 clubs and teams in the U.S. and around the world. ~~For the first quarter of 2022, the~~The results of The Athletic have been included in our Condensed Consolidated Financial Statements beginning February 1, 2022. The Athletic is a separate reportable segment of the Company. As a result, beginning in the first quarter of 2022, ~~we have~~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 by segment (as defined below) in assessing performance and allocating resources. The Company includes in its presentation revenues and adjusted operating costs (as defined below) to arrive at adjusted operating profit by segment.

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

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

Recently Adopted Accounting Pronouncements


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

Recently Issued Accounting Pronouncements

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

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 3. REVENUE

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

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

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

Subscription, advertising and other revenues were as ~~follows:~~follows for the second quarters and first six months ended June 26, 2022, and June 27, 2021:


		For the Quarters Ended								For the Quarters Ended				For the Six Months Ended
(In thousands)	(In thousands)	March 27, 2022		As % of total		March 28, 2021		As % of total			(In thousands)	June 26, 2022		As % of total		June 27, 2021		As % of total		June 26, 2022		As % of total		June 27, 2021		As % of total
Subscription	Subscription	$	371,979	69.2	%	$	329,084	69.6	%		Subscription	$	383,619	69.0	%	$	339,217	68.1	%	$	755,598	69.2	%	$	668,301	68.8	%
Advertising	Advertising	116,270		21.5	%	97,116		20.5	%		Advertising	117,379		21.0	%	112,774		22.6	%	233,649		21.3	%	209,890		21.6	%
Other (1)	Other (1)	49,176		9.3	%	46,845		9.9	%		Other (1)	54,682		10.0	%	46,506		9.3	%	103,858		9.5	%	93,351		9.6	%
Total	Total	$	537,425	100.0	%	$	473,045	100.0	%		Total	$	555,680	100.0	%	$	498,497	100.0	%	$	1,093,105	100.0	%	$	971,542	100.0	%

(1) Other revenues include building rental revenue, which is not under the scope of Revenue from Contracts with Customers (Topic 606). Building rental revenue was approximately $7 million ~~and $6 million~~ for the ~~first~~second quarters of 2022 and 2021, respectively, and approximately $14 million and $13 million for the first six months of 2022 and 2021, respectively.

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

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

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table summarizes digital and print subscription revenues, which are components of subscription revenues above, for the second quarters and first six months ended June 26, 2022, and June 27, 2021:


	For the Quarters Ended								For the Six Months Ended
(In thousands)	June 26, 2022		As % of total		June 27, 2021		As % of total		June 26, 2022		As % of total		June 27, 2021		As % of total
Digital-only subscription revenues (1)	$	238,727	62.2	%	$	190,145	56.1	%	$	465,489	61.6	%	$	369,745	55.3	%
Print subscription revenues:
Domestic home delivery subscription revenues (2)	131,080		34.2	%	134,755		39.7	%	262,472		34.7	%	269,150		40.3	%
Single-copy, NYT International and Other subscription revenues (3)	13,812		3.6	%	14,317		4.2	%	27,637		3.7	%	29,406		4.4	%
Subtotal print subscription revenues	144,892		37.8	%	149,072		43.9	%	290,109		38.4	%	298,556		44.7	%
Total subscription revenues	$	383,619	100.0	%	$	339,217	100.0	%	$	755,598	100.0	%	$	668,301	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 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 second quarters and first six months ended ~~March 27,~~June 26, 2022, and ~~March 28,~~June 27, 2021:


		For the Quarters Ended								For the Quarters Ended						For the Six Months Ended
(In thousands)	(In thousands)	March 27, 2022		As % of total		March 28, 2021		As % of total			(In thousands)	June 26, 2022		As % of total		June 27, 2021		As % of total		June 26, 2022		As % of total		June 27, 2021		As % of total
Advertising revenues:	Advertising revenues:										Advertising revenues:
Digital	Digital	$	67,014	57.6	%	$	59,496	61.3	%		Digital	$	69,292	59.0	%	$	70,995	63.0	%	$	136,306	58.3	%	$	130,491	62.2	%
Print	Print	49,256		42.4	%	37,620		38.7	%		Print	48,087		41.0	%	41,779		37.0	%	97,343		41.7	%	79,399		37.8	%
Total advertising	Total advertising	$	116,270	100.0	%	$	97,116	100.0	%		Total advertising	$	117,379	100.0	%	$	112,774	100.0	%	$	233,649	100.0	%	$	209,890	100.0	%

Performance Obligations

We have remaining performance obligations related to digital archive and other licensing and certain advertising contracts. As of ~~March 27,~~June 26, 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~~$105 million. The Company will recognize this revenue as performance obligations are satisfied. We expect that approximately ~~$35~~$21 million, ~~$25~~$22 million and ~~$68~~$62 million will be recognized in the remainder of 2022, 2023 and thereafter through 2028, respectively.

Contract Assets

As of ~~March 27,~~June 26, 2022, and December 26, 2021, the Company had ~~$3.6~~$3.7 million and $3.4 million, respectively, in contract assets recorded in the Condensed Consolidated Balance Sheets related to digital archiving licensing revenue. The contract asset is reclassified to Accounts receivable when the customer is invoiced based on the contractual billing schedule.

NOTE 4. MARKETABLE SECURITIES

The Company accounts for its marketable securities as available for sale (“AFS”). The Company recorded ~~$9.7~~$11.6 million and $1.7 million of net unrealized losses in Accumulated other comprehensive income (“AOCI”) as of ~~March 27,~~June 26, 2022, and December 26, 2021, respectively.

910

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 ~~March 27,~~June 26, 2022, and December 26, 2021:


		March 27, 2022									June 26, 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	$	28,481	$	4	$	(217)	$	28,268	U.S. Treasury securities	$	35,776	$	2	$	(408)	$	35,370

Corporate debt securities	Corporate debt securities	22,681		12		(157)		22,536		Corporate debt securities	19,922		—		(289)		19,633

Municipal securities	Municipal securities	2,000		—		(16)		1,984		Municipal securities	7,033		—		(125)		6,908
Total short-term AFS securities	Total short-term AFS securities	$	53,162	$	16	$	(390)	$	52,788	Total short-term AFS securities	$	62,731	$	2	$	(822)	$	61,911
Long-term AFS securities	Long-term AFS securities									Long-term AFS securities
Corporate debt securities	Corporate debt securities	$	167,793	$	—	$	(6,365)	$	161,428	Corporate debt securities	$	157,376	$	—	$	(7,507)	$	149,869
U.S. Treasury securities	U.S. Treasury securities	56,576		—		(1,892)		54,684		U.S. Treasury securities	50,858		—		(2,127)		48,731
U.S. governmental agency securities	U.S. governmental agency securities	28,804		—		(850)		27,954		U.S. governmental agency securities	28,804		—		(1,003)		27,801
Municipal securities	Municipal securities	8,932		—		(183)		8,749		Municipal securities	3,890		—		(118)		3,772
Total long-term AFS securities	Total long-term AFS securities	$	262,105	$	—	$	(9,290)	$	252,815	Total long-term AFS securities	$	240,928	$	—	$	(10,755)	$	230,173


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

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

1011

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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


		March 27, 2022													June 26, 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
U.S. Treasury securities	U.S. Treasury securities	$	24,589	$	(217)	$	—	$	—	$	24,589	$	(217)	U.S. Treasury securities	$	30,842	$	(408)	$	—	$	—	$	30,842	$	(408)
Corporate debt securities	Corporate debt securities	13,887		(157)		—		—		13,887		(157)		Corporate debt securities	19,633		(289)		—		—		19,633		(289)

Municipal securities	Municipal securities	1,984		(16)		—		—		1,984		(16)		Municipal securities	6,908		(125)		—		—		6,908		(125)
Total short-term AFS securities	Total short-term AFS securities	$	40,460	$	(390)	$	—	$	—	$	40,460	$	(390)	Total short-term AFS securities	$	57,383	$	(822)	$	—	$	—	$	57,383	$	(822)
Long-term AFS securities	Long-term AFS securities													Long-term AFS securities
Corporate debt securities	Corporate debt securities	$	154,995	$	(6,253)	$	6,433	$	(112)	$	161,428	$	(6,365)	Corporate debt securities	$	138,137	$	(7,006)	$	11,732	$	(501)	$	149,869	$	(7,507)
U.S. Treasury securities	U.S. Treasury securities	51,923		(1,805)		2,761		(87)		54,684		(1,892)		U.S. Treasury securities	45,986		(2,023)		2,745		(104)		48,731		(2,127)
U.S. governmental agency securities	U.S. governmental agency securities	27,954		(850)		—		—		27,954		(850)		U.S. governmental agency securities	22,015		(789)		5,786		(214)		27,801		(1,003)
Municipal securities	Municipal securities	8,749		(183)		—		—		8,749		(183)		Municipal securities	3,772		(118)		—		—		3,772		(118)
Total long-term AFS securities	Total long-term AFS securities	$	243,621	$	(9,091)	$	9,194	$	(199)	$	252,815	$	(9,290)	Total long-term AFS securities	$	209,910	$	(9,936)	$	20,263	$	(819)	$	230,173	$	(10,755)


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

Short-term AFS securities
U.S. Treasury securities	$	61,018	$	(43)	$	—	$	—	$	61,018	$	(43)
Corporate debt securities	53,148		(69)		—		—		53,148		(69)
Municipal securities	1,998		(2)		—		—		1,998		(2)


Total short-term AFS securities	$	116,164	$	(114)	$	—	$	—	$	116,164	$	(114)
Long-term AFS securities
Corporate debt securities	$	224,022	$	(1,858)	$	—	$	—	$	224,022	$	(1,858)
U.S. Treasury securities	119,146		(549)		—		—		119,146		(549)
U.S. governmental agency securities	39,246		(252)		—		—		39,246		(252)
Municipal securities	13,933		(61)		—		—		13,933		(61)
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 ~~March 27,~~June 26, 2022, and December 26, 2021, we did not intend to sell and it was not likely that we would be required to sell these investments before recovery of their amortized cost basis, which may be at maturity. Unrealized losses related to these investments are primarily due to interest rate fluctuations as opposed to changes in credit quality. Therefore, as of ~~March 27,~~June 26, 2022, and December 26, 2021, we have recognized no losses or allowance for credit losses related to AFS securities.

1112

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

As of ~~March 27,~~June 26, 2022, our short-term and long-term marketable securities had remaining maturities of less than one month to 12 months and 13 months to 3233 months, respectively. See Note 8 for more information regarding the fair value of our marketable securities.

NOTE 5. 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 ~~as of March 27,~~for the six months ended June 26, 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

1213

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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

The following unaudited pro forma summary presents consolidated information of the Company, including The Athletic, as if the business combination had occurred on December ~~27, 2021,~~28, 2020, the earliest period presented herein:


		For the Quarters Ended					For the Quarters Ended				For the Six Months Ended
(In thousands)	(In thousands)	March 27, 2022		March 28, 2021		(In thousands)	June 26, 2022		June 27, 2021		June 26, 2022		June 27, 2021
Revenue	Revenue	$	544,572	$	487,167	Revenue	$	555,680	$	514,765	$	1,100,252	$	1,001,932
Net income/(loss)		28,045		(8,215)
Net income						Net income	61,777		39,270		89,822		31,056

The pro forma adjustments include (1) transaction costs and other one-time non-recurring costs which reduced expenses by $47.8 million for the ~~quarter~~six months ended ~~March 27,~~June 26, 2022 and increased expenses by $47.8 million for the ~~quarter~~six months ended ~~March 28,~~June 27, 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 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 ~~March 27,~~June 26, 2022, and since December 26, 2021, were as follows:


(In thousands)	(In thousands)	The New York Times Group		The Athletic		Total		(In thousands)	The New York Times Group		The Athletic		Total
Balance as of December 27, 2020	Balance as of December 27, 2020	$	171,657	$	—	$	171,657	Balance as of December 27, 2020	$	171,657	$	—	$	171,657
Foreign currency translation	Foreign currency translation	(5,297)		0		(5,297)		Foreign currency translation	(5,297)		—		(5,297)
Balance as of December 26, 2021	Balance as of December 26, 2021	166,360		—		166,360		Balance as of December 26, 2021	166,360		—		166,360
Foreign currency translation	Foreign currency translation	(1,952)		—		(1,952)		Foreign currency translation	(4,627)		—		(4,627)
Acquisition of The Athletic	Acquisition of The Athletic	—		249,792		249,792		Acquisition of The Athletic	—		249,792		249,792
Balance as of March 27, 2022		$	164,408	$	249,792	$	414,200
Balance as of June 26, 2022								Balance as of June 26, 2022	$	161,733	$	249,792	$	411,525

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 ~~March 27,~~June 26, 2022, the gross book value and accumulated amortization of acquired intangible assets from the acquisition of The Athletic were as follows:


(In thousands)	(In thousands)	Gross book value		Accumulated amortization		Net book value		(In thousands)	Gross book value		Accumulated amortization		Net book value
Trademark	Trademark	$	160,000	$	(1,333)	$	158,667	Trademark	$	160,000	$	(3,333)	$	156,667
Existing subscriber base	Existing subscriber base	135,000		(1,875)		133,125		Existing subscriber base	135,000		(4,688)		130,312
Developed technology	Developed technology	35,000		(1,167)		33,833		Developed technology	35,000		(2,917)		32,083
Content archive	Content archive	2,000		(167)		1,833		Content archive	2,000		(417)		1,583
Total	Total	$	332,000	$	(4,542)	$	327,458	Total	$	332,000	$	(11,355)	$	320,645

1314

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 second quarter and first six months of 2022 was ~~$4.5~~$6.9 million ~~as of March 27, 2022.~~and $11.4 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)	(In thousands)			(In thousands)
Remainder of 2022	Remainder of 2022	$	20,438	Remainder of 2022	$	13,625
2023	2023	27,500		2023	27,250
2024	2024	27,500		2024	26,333
2025	2025	27,500		2025	26,250
2026	2026	27,500		2026	26,250
Thereafter	Thereafter	197,020		Thereafter	200,937
Total amortization expense	Total amortization expense	$	327,458	Total amortization expense	$	320,645

The aggregate carrying amount of intangible assets of ~~$343.4~~$336.1 million, which includes an indefinite-lived intangible of $9.0 million, is included in Intangible assets, net in our Condensed Consolidated Balance ~~Sheets~~Sheet as of ~~March 27,~~June 26, 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 ~~March 27,~~June 26, 2022, and December 26, 2021, non-marketable equity securities included in Miscellaneous assets in our Condensed Consolidated Balance Sheets had a carrying value of ~~$28.8~~$28.4 million and $27.9 million, respectively.

NOTE 7. OTHER

Capitalized Computer Software Costs

Amortization of capitalized computer software costs included in Depreciation and amortization in our Condensed Consolidated Statements of Operations was $1.9 million and ~~$2.6~~$2.4 million infor the second quarters of 2022 and 2021, respectively, and $3.9 million and $5.0 million for the first ~~quarters~~six months of 2022 and 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 Quarters Ended				For the Six Months Ended
(In thousands)	(In thousands)	March 27, 2022		March 28, 2021			(In thousands)	June 26, 2022		June 27, 2021		June 26, 2022		June 27, 2021
Interest income and other expense, net	Interest income and other expense, net	$	1,222	$	1,689		Interest income and other expense, net	$	1,535	$	2,053	$	2,757	$	3,743

Gain on the sale of land (1)							Gain on the sale of land (1)	34,227		—		34,227		—
Interest expense	Interest expense	(147)		(178)			Interest expense	(158)		(180)		(305)		(359)

Total interest income and other, net	Total interest income and other, net	$	1,075	$	1,511		Total interest income and other, net	$	35,604	$	1,873	$	36,679	$	3,384

(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.

1415

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 ~~March 27,~~June 26, 2022, and December 26, 2021, from the Condensed Consolidated Balance Sheets to the Condensed Consolidated Statements of Cash Flows is as follows:


(In thousands)	(In thousands)	March 27, 2022		December 26, 2021		(In thousands)	June 26, 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	$	169,171	$	319,973	Cash and cash equivalents	$	161,342	$	319,973

Restricted cash included within miscellaneous assets	Restricted cash included within miscellaneous assets	14,381		14,333		Restricted cash included within miscellaneous assets	14,396		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	$	183,552	$	334,306	Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows	$	175,738	$	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 “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 ~~March 27,~~June 26, 2022, there were no outstanding borrowings under the Credit Facility and the Company was in compliance with the financial covenants contained in the documents governing the Credit Facility.

On July 27, 2022, the Company entered into an amendment and restatement of the Credit Facility that, among other changes, increased the committed amount to $350.0 million and extended the maturity date to July 27, 2027. See Note 15 for more information.

Severance Costs

We recognized $2.7 million in severance costs largely related to our commercial printing operations in the second quarter and first six months of 2022. We recognized no severance costs in the ~~first~~second quarter of ~~2022~~2021 and $0.4 million in severance costs in the first ~~quarter~~six months of ~~2021, respectively.~~2021. These costs are recorded in General and administrative costs in our Condensed Consolidated Statements of Operations.

We had a severance liability of ~~$1.9~~$4.3 million and $2.1 million included in Accrued expenses and other in our Condensed Consolidated Balance Sheets as of ~~March 27,~~June 26, 2022, and December 26, 2021, respectively.

Acquisition-Related Costs

The Company incurred $34.7 million of acquisition-related costs ~~during~~for the ~~quarter~~six months ended ~~March 27,~~June 26, 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 ~~March 27,~~June 26, 2022, and December 26, 2021:


(In thousands)	(In thousands)	March 27, 2022								December 26, 2021								(In thousands)	June 26, 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	$	28,268	$	—	$	28,268	$	—	$	149,548	$	—	$	149,548	$	—	U.S. Treasury securities	$	35,370	$	—	$	35,370	$	—	$	149,548	$	—	$	149,548	$	—
Corporate debt securities	Corporate debt securities	22,536		—		22,536		—		107,334		—		107,334		—		Corporate debt securities	19,633		—		19,633		—		107,334		—		107,334		—
Certificates of deposit	Certificates of deposit	—		—		—		—		55,551		—		55,551		—		Certificates of deposit	—		—		—		—		55,551		—		55,551		—
Municipal securities	Municipal securities	1,984		—		1,984		—		3,997		—		3,997		—		Municipal securities	6,908		—		6,908		—		3,997		—		3,997		—
U.S. governmental agency securities	U.S. governmental agency securities	—		—		—		—		3,500		—		3,500		—		U.S. governmental agency securities	—		—		—		—		3,500		—		3,500		—
Commercial paper	Commercial paper	—		—		—		—		21,145		—		21,145		—		Commercial paper	—		—		—		—		21,145		—		21,145		—
Total short-term AFS securities	Total short-term AFS securities	$	52,788	$	—	$	52,788	$	—	$	341,075	$	—	$	341,075	$	—	Total short-term AFS securities	$	61,911	$	—	$	61,911	$	—	$	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	$	161,428	$	—	$	161,428	$	—	$	241,055	$	—	$	241,055	$	—	Corporate debt securities	$	149,869	$	—	$	149,869	$	—	$	241,055	$	—	$	241,055	$	—
U.S. Treasury securities	U.S. Treasury securities	54,684		—		54,684		—		119,146		—		119,146		—		U.S. Treasury securities	48,731		—		48,731		—		119,146		—		119,146		—
U.S. governmental agency securities	U.S. governmental agency securities	27,954		—		27,954		—		39,246		—		39,246		—		U.S. governmental agency securities	27,801		—		27,801		—		39,246		—		39,246		—
Municipal securities	Municipal securities	8,749		—		8,749		—		13,933		—		13,933		—		Municipal securities	3,772		—		3,772		—		13,933		—		13,933		—
Total long-term AFS securities	Total long-term AFS securities	$	252,815	$	—	$	252,815	$	—	$	413,380	$	—	$	413,380	$	—	Total long-term AFS securities	$	230,173	$	—	$	230,173	$	—	$	413,380	$	—	$	413,380	$	—
Liabilities:	Liabilities:																	Liabilities:
Deferred compensation (2)(3)	Deferred compensation (2)(3)	$	16,467	$	16,467	$	—	$	—	$	21,101	$	21,101	$	—	$	—	Deferred compensation (2)(3)	$	14,330	$	14,330	$	—	$	—	$	21,101	$	21,101	$	—	$	—
Contingent consideration	Contingent consideration	$	5,858	$	—	$	—	$	5,858	$	7,450	$	—	$	—	$	7,450	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 ~~$50.8~~$47.9 million as of ~~March 27,~~June 26, 2022, and $52.5 million as of December 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.

1617

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 quarters and six months ended ~~March 27,~~June 26, 2022, and ~~March 28,~~June 27, 2021:


		For the Quarters Ended				Quarters Ended				Six Months Ended
(In thousands)	(In thousands)	March 27, 2022		March 28, 2021			(In thousands)	June 26, 2022		June 27, 2021		June 26, 2022		June 27, 2021
Balance at the beginning of the period	Balance at the beginning of the period	$	7,450	$	8,431		Balance at the beginning of the period	$	5,858	$	7,728	$	7,450	$	8,431

Payments	Payments	(1,724)		—			Payments	—		(862)		(1,724)		(862)
Fair value adjustments (1)	Fair value adjustments (1)	132		(703)			Fair value adjustments (1)	—		584		132		(119)
Contingent consideration at the end of the period	Contingent consideration at the end of the period	$	5,858	$	7,728		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 ~~expenses~~costs in our Condensed Consolidated Statements of Operations.

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

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
		March 27, 2022						March 28, 2021							June 26, 2022						June 27, 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	$	2,882	$	—	$	2,882	$	2,276	$	—	$	2,276	Service cost	$	2,882	$	—	$	2,882	$	2,276	$	—	$	2,276
Interest cost	Interest cost	8,837		1,284		10,121		7,629		1,088		8,717		Interest cost	8,837		1,284		10,121		7,629		1,088		8,717
Expected return on plan assets	Expected return on plan assets	(13,807)		—		(13,807)		(12,677)		—		(12,677)		Expected return on plan assets	(13,807)		—		(13,807)		(12,678)		—		(12,678)
Amortization of actuarial loss	Amortization of actuarial loss	3,266		1,643		4,909		5,055		1,821		6,876		Amortization of actuarial loss	3,266		1,643		4,909		5,057		1,822		6,879
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)~~	$	692	$	2,927	$	3,619	$	1,797	$	2,909	$	4,706	Net periodic pension cost ~~(1)~~	$	692	$	2,927	$	3,619	$	1,798	$	2,910	$	4,708

~~(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~~.


	For the Six Months Ended
	June 26, 2022						June 27, 2021
(In thousands)	Qualified Plans		Non- Qualified Plans		All Plans		Qualified Plans		Non- Qualified Plans		All Plans
Service cost	$	5,763	$	—	$	5,763	$	4,552	$	—	$	4,552
Interest cost	17,675		2,568		20,243		15,258		2,176		17,434
Expected return on plan assets	(27,615)		—		(27,615)		(25,355)		—		(25,355)
Amortization of actuarial loss	6,532		3,287		9,819		10,113		3,642		13,755
Amortization of prior service credit	(972)		—		(972)		(972)		—		(972)

Net periodic pension cost	$	1,383	$	5,855	$	7,238	$	3,596	$	5,818	$	9,414

During the first ~~quarters~~six months of 2022 and 2021, we made pension contributions of ~~$2.3~~$5.1 million and ~~$1.5~~$4.2 million, respectively, to the APP. We expect to make contractual contributions in 2022 of approximately $10 million, which more than satisfy minimum funding requirements.

Other Postretirement Benefits

The components of net periodic postretirement benefit cost were as follows:


	For the Quarters Ended				For the Six Months Ended
(In thousands)	June 26, 2022		June 27, 2021		June 26, 2022		June 27, 2021
Service cost	$	11	$	13	$	23	$	26
Interest cost	183		141		365		282
Amortization of actuarial loss	823		852		1,647		1,704
Amortization of prior service credit	(132)		(836)		(368)		(1,672)
Net periodic postretirement benefit cost	$	885	$	170	$	1,667	$	340

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

~~Other Postretirement Benefits~~

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

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

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

NOTE 10. INCOME TAXES

The Company had income tax expense of ~~$1.1~~$23.9 million and ~~$9.5~~$25.0 million in the second quarter and first ~~quarters~~six months of 2022, respectively. The Company had income tax expense of $18.2 million and $27.7 million in the second quarter and first six months of 2021, respectively. The Company’s effective tax rates from continuing operations were ~~19.1%~~27.9% and ~~18.7%~~27.3% for the second quarter and first ~~quarters~~six months of 2022, respectively. The Company’s effective tax rates from continuing operations were 25.1% and 22.5% for the second quarter and first six months of 2021, respectively. The increase in income tax expense in the second quarter of 2022 was primarily due to higher income from continuing operations in the second quarter of 2022. The decrease in income tax expense ~~and increase in effective tax rate~~ in the first ~~quarter~~six months of 2022 ~~were~~was primarily due to lower income from continuing operations ~~resulting from costs related to The Athletic acquisition. Excluding the tax benefit resulting from the special item related to the acquisition of The Athletic, tax expense~~ in the first ~~quarter~~six months of ~~2022 exceeded~~2022. The increase in the effective tax ~~expense~~rate in the first ~~quarter~~six months of ~~2021~~2022 was primarily due to a lower benefit in the first ~~quarter~~six months of 2022 from stock price appreciation on stock-based awards that settled in the ~~quarters.~~respective six-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 year incurred and instead requires taxpayers to capitalize and amortize such expenditures over five years. IfOur cash tax payments have increased significantly this year as a result of the foregoing provision, and we expect our cash tax payments will continue to be elevated over the next few years if Congress does not repeal or defer the effective date of this ~~provision, we expect our 2022 cash tax payments will increase significantly as compared to 2021. We would also expect significant increases to~~provision. Also, our deferred tax assets will increase significantly as we begin to capitalize our research and development expenditures.

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.

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 second quarter and first six months of 2022, respectively. The difference between basic and diluted shares was approximately ~~0.4~~0.3 million and 0.5 million in the second quarter and first ~~quarters~~six months of ~~2022 and~~ 2021, respectively. ~~In 2022, dilution resulted primarily from the dilutive effect of certain restricted stock units, performance awards and stock options.~~ In 2021, dilution resulted primarily from the dilutive effect of certain performance awards, restricted stock units and stock options.

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

There were approximately ~~0.2~~1.4 million and ~~0.1~~0.3 million restricted stock units excluded from the computation of diluted earnings per share in the second quarter and first ~~quarters~~six months of 2022, respectively, because they were anti-dilutive. There were approximately 0.3 million and 0.2 million restricted stock units excluded from the computation of diluted earnings per share in the second quarter and first six months of 2021, respectively, because they were anti-dilutive. There were no anti-dilutive stock options or stock-settled long-term performance awards excluded from the computation of diluted earnings per share in the second quarters and first ~~quarters~~six months of 2022 and 2021.

NOTE 12. SUPPLEMENTAL STOCKHOLDERS’ EQUITY INFORMATION

In February 2022, the Board of Directors approved a $150 million Class A 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,

~~THE NEW YORK TIMES COMPANY~~

~~NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

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

As of ~~March 27,~~June 26, 2022, repurchases under this authorization totaled approximately ~~$29.0~~$54.4 million (excluding commissions) and approximately ~~$121.0~~$95.6 million remained.

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table summarizes the changes in AOCI by component as of ~~March 27,~~June 26, 2022:


(In thousands)	(In thousands)	Foreign Currency Translation Adjustments		Funded Status of Benefit Plans		Net Unrealized Loss 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 26, 2021	Balance as of December 26, 2021	$	3,754	$	(385,680)	$	(1,276)	$	(383,202)	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	(2,209)		—		(7,916)		(10,125)		Other comprehensive loss before reclassifications, before tax	(5,616)		—		(9,827)		(15,443)
Amounts reclassified from accumulated other comprehensive loss, before tax	Amounts reclassified from accumulated other comprehensive loss, before tax	—		5,010		—		5,010		Amounts reclassified from accumulated other comprehensive loss, before tax	—		10,124		—		10,124
Income tax (benefit)/expense	Income tax (benefit)/expense	(601)		1,344		(2,123)		(1,380)		Income tax (benefit)/expense	(1,564)		2,717		(2,637)		(1,484)
Net current-period other comprehensive (loss)/ income, net of tax	Net current-period other comprehensive (loss)/ income, net of tax	(1,608)		3,666		(5,793)		(3,735)		Net current-period other comprehensive (loss)/ income, net of tax	(4,052)		7,407		(7,190)		(3,835)

Balance as of March 27, 2022		$	2,146	$	(382,014)	$	(7,069)	$	(386,937)
Balance as of June 26, 2022										Balance as of June 26, 2022	$	(298)	$	(378,273)	$	(8,466)	$	(387,037)

The following table summarizes the reclassifications from AOCI for the ~~quarter~~six months ended ~~March 27,~~June 26, 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)

~~(722)~~(1,340)

Other components of net periodic benefit costs

Amortization of actuarial loss(1)

~~5,732~~11,464

Other components of net periodic benefit costs

Total reclassification, before tax(2)

~~5,010~~10,124

Income tax expense

~~1,344~~2,717

Income tax expense

Total reclassification, net of tax

~~3,666~~7,407

(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 ~~March 27,~~June 26, 2022.

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


		For the Quarters Ended					For the Quarters Ended				For the Six Months Ended
(In thousands)	(In thousands)	March 27, 2022		March 28, 2021		(In thousands)	June 26, 2022		June 27, 2021		June 26, 2022		June 27, 2021
Cost of revenue	Cost of revenue	$	1,589	$	1,129	Cost of revenue	$	2,030	$	1,291	$	3,619	$	2,421
Sales and marketing	Sales and marketing	365		347		Sales and marketing	304		277		669		624
Product development	Product development	1,751		677		Product development	2,848		999		4,599		1,676
General and administrative	General and administrative	3,349		2,032		General and administrative	3,800		2,586		7,149		4,617
Total stock-based compensation expense	Total stock-based compensation expense	$	7,054	$	4,185	Total stock-based compensation expense	$	8,982	$	5,153	$	16,036	$	9,338

~~THE NEW YORK TIMES COMPANY~~

~~NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

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

On February 1, 2022, the Company acquired The Athletic (see Note 5). ~~For~~Beginning with the first quarter of 2022, the results of The Athletic have been included in the Company's Condensed Consolidated Financial Statements beginning February 1, 2022. The Athletic is a separate reportable segment of the Company. As a result, beginning in the first quarter of 2022, ~~we have~~the

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Company has 2 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 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 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 Quarters Ended						For the Six Months Ended
(In thousands)	(In thousands)	March 27, 2022		March 28, 2021		% Change		(In thousands)	June 26, 2022		June 27, 2021		% Change		June 26, 2022		June 27, 2021		% Change
Revenues	Revenues							Revenues
The New York Times Group	The New York Times Group	$	525,268	$	473,045	11.0	%	The New York Times Group	$	536,134	$	498,497	7.6	%	$	1,061,402	$	971,542	9.2	%
The Athletic	The Athletic	12,157		—		*		The Athletic	19,546		—		*		31,703		—		*
Total revenues	Total revenues	$	537,425	$	473,045	13.6	%	Total revenues	$	555,680	$	498,497	11.5	%	$	1,093,105	$	971,542	12.5	%
Adjusted operating costs	Adjusted operating costs							Adjusted operating costs
The New York Times Group	The New York Times Group	$	457,543	$	404,938	13.0	%	The New York Times Group	$	447,316	$	405,594	10.3	%	$	904,860	$	810,532	11.6	%
The Athletic	The Athletic	18,979		—		*		The Athletic	32,145		—		*		51,123		—		*
Total adjusted operating costs	Total adjusted operating costs	$	476,522	$	404,938	17.7	%	Total adjusted operating costs	$	479,461	$	405,594	18.2	%	$	955,983	$	810,532	17.9	%
Adjusted operating profit	Adjusted operating profit							Adjusted operating profit
The New York Times Group	The New York Times Group	$	67,725	$	68,107	(0.6)	%	The New York Times Group	$	88,818	$	92,903	(4.4)	%	$	156,542	$	161,010	(2.8)	%
The Athletic	The Athletic	(6,822)		—		*		The Athletic	(12,599)		—		*		(19,420)		—		*
Total adjusted operating profit	Total adjusted operating profit	$	60,903	$	68,107	(10.6)	%	Total adjusted operating profit	$	76,219	$	92,903	(18.0)	%	$	137,122	$	161,010	(14.8)	%
* Represents a change equal to or in excess of 100% or not meaningful.	* Represents a change equal to or in excess of 100% or not meaningful.							* Represents a change equal to or in excess of 100% or not meaningful.


Revenues detail by segment
	For the Quarters Ended						For the Six Months Ended
(In thousands)	June 26, 2022		June 27, 2021		% Change		June 26, 2022		June 27, 2021		% Change
The New York Times Group
Subscription	$	366,620	$	339,217	8.1	%	$	728,222	$	668,301	9.0	%
Advertising	114,832		112,774		1.8	%	229,322		209,890		9.3	%
Other	54,682		46,506		17.6	%	103,858		93,351		11.3	%
Total	$	536,134	$	498,497	7.6	%	$	1,061,402	$	971,542	9.2	%
The Athletic
Subscription	$	16,999	$	—	*		$	27,376	$	—	*
Advertising	2,547		—		*		4,327		—		*

Total	$	19,546	$	—	*		$	31,703	$	—	*
The New York Times Company
Subscription	$	383,619	$	339,217	13.1	%	$	755,598	$	668,301	13.1	%
Advertising	117,379		112,774		4.1	%	233,649		209,890		11.3	%
Other	54,682		46,506		17.6	%	103,858		93,351		11.3	%
Total	$	555,680	$	498,497	11.5	%	$	1,093,105	$	971,542	12.5	%
* Represents a change equal to or in excess of 100% or not meaningful.

2022

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Revenues detail by segment
For the Quarters Ended
(In thousands) March 27, 2022 March 28, 2021 % Change
The New York Times Group
Subscription $ 361,602 $ 329,084 9.9 %
Advertising 114,490 97,116 17.9 %
Other 49,176 46,845 5.0 %
Total $ 525,268 $ 473,045 11.0 %
The Athletic
Subscription $ 10,377 $ — *
Advertising 1,780 — *
Total $ 12,157 $ — *
The New York Times Company
Subscription $ 371,979 $ 329,084 13.0 %
Advertising 116,270 97,116 19.7 %
Other 49,176 46,845 5.0 %
Total $ 537,425 $ 473,045 13.6 %
* Represents a change equal to or in excess of 100% or not meaningful.


Adjusted operating costs (operating costs before depreciation and amortization, severance and multiemployer pension plan withdrawal costs) detail by segment	Adjusted operating costs (operating costs before depreciation and amortization, severance and multiemployer pension plan withdrawal costs) detail by segment							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 Quarters Ended						For the Six Months Ended
(In thousands)	(In thousands)	March 27, 2022		March 28, 2021		% Change		(In thousands)	June 26, 2022		June 27, 2021		% Change		June 26, 2022		June 27, 2021		% Change
The New York Times Group	The New York Times Group							The New York Times Group
Cost of revenue (excluding depreciation and amortization)	Cost of revenue (excluding depreciation and amortization)	$	269,476	$	250,997	7.4	%	Cost of revenue (excluding depreciation and amortization)	$	279,985	$	251,358	11.4	%	$	549,460	$	502,355	9.4	%
Sales and marketing	Sales and marketing	74,460		60,153		23.8	%	Sales and marketing	58,183		53,555		8.6	%	132,643		113,708		16.7	%
Product development	Product development	45,179		38,943		16.0	%	Product development	46,773		39,699		17.8	%	91,952		78,642		16.9	%
Adjusted general and administrative (1)	Adjusted general and administrative (1)	68,428		54,845		24.8	%	Adjusted general and administrative (1)	62,375		60,982		2.3	%	130,805		115,827		12.9	%
Total	Total	$	457,543	$	404,938	13.0	%	Total	$	447,316	$	405,594	10.3	%	$	904,860	$	810,532	11.6	%
The Athletic	The Athletic							The Athletic
Cost of revenue (excluding depreciation and amortization)	Cost of revenue (excluding depreciation and amortization)	$	11,889	$	—	*		Cost of revenue (excluding depreciation and amortization)	$	20,598	$	—	*		$	32,488	$	—	*
Sales and marketing	Sales and marketing	3,128		—		*		Sales and marketing	4,586		—		*		7,714		—		*
Product development	Product development	2,254		—		*		Product development	4,049		—		*		6,303		—		*
Adjusted general and administrative(2)	Adjusted general and administrative(2)	1,708		—		*		Adjusted general and administrative(2)	2,912		—		*		4,618		—		*
Total	Total	$	18,979	$	—	*		Total	$	32,145	$	—	*		$	51,123	$	—	*
The New York Times Company	The New York Times Company							The New York Times Company
Cost of revenue (excluding depreciation and amortization)	Cost of revenue (excluding depreciation and amortization)	$	281,365	$	250,997	12.1	%	Cost of revenue (excluding depreciation and amortization)	$	300,583	$	251,358	19.6	%	$	581,948	$	502,355	15.8	%
Sales and marketing	Sales and marketing	77,588		60,153		29.0	%	Sales and marketing	62,769		53,555		17.2	%	140,357		113,708		23.4	%
Product development	Product development	47,433		38,943		21.8	%	Product development	50,822		39,699		28.0	%	98,255		78,642		24.9	%
Adjusted general and administrative (1)		70,136		54,845		27.9	%
Adjusted general and administrative								Adjusted general and administrative	65,287		60,982		7.1	%	135,423		115,827		16.9	%
Total	Total	$	476,522	$	404,938	17.7	%	Total	$	479,461	$	405,594	18.2	%	$	955,983	$	810,532	17.9	%
(1) Excludes multiemployer pension withdrawal costs of $1.2 million for the quarter ended March 27, 2022 and severance and multiemployer pension withdrawal costs of $0.4 million and $1.3 million, respectively, for the quarter ended March 28,2021.
(1) Excludes severance of $2.5 million for the quarter and six months ended June 26, 2022, and multiemployer pension withdrawal costs of $1.2 million and $2.4 million for the quarter and six months ended June 26, 2022, respectively. Excludes multiemployer pension withdrawal costs of $1.3 million and $2.6 million for the quarter and six months ended June 27, 2021, respectively, and severance of $0.4 million for the six months ended June 27, 2021.								(1) Excludes severance of $2.5 million for the quarter and six months ended June 26, 2022, and multiemployer pension withdrawal costs of $1.2 million and $2.4 million for the quarter and six months ended June 26, 2022, respectively. Excludes multiemployer pension withdrawal costs of $1.3 million and $2.6 million for the quarter and six months ended June 27, 2021, respectively, and severance of $0.4 million for the six months ended June 27, 2021.
(2) Excludes $0.2 million of severance for the quarter and six months ended June, 26, 2022.								(2) Excludes $0.2 million of severance for the quarter and six months ended June, 26, 2022.
* Represents a change equal to or in excess of 100% or not meaningful.	* Represents a change equal to or in excess of 100% or not meaningful.							* 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 Six Months Ended
(In thousands)	June 26, 2022		June 27, 2021		% Change		June 26, 2022		June 27, 2021		% Change
Operating costs	$	504,019	$	421,381	19.6	%	$	1,000,448	$	842,768	18.7	%
Less:
Depreciation and amortization	20,704		14,486		42.9	%	39,390		29,203		34.9	%
Severance	2,660		—		*		2,660		406		*
Multiemployer pension plan withdrawal costs	1,194		1,301		(8.2)	%	2,415		2,627		(8.1)	%
Adjusted operating costs	$	479,461	$	405,594	18.2	%	$	955,983	$	810,532	17.9	%
* Represents a change equal to or in excess of 100% or not meaningful.

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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


Reconciliation of operating profit before depreciation and amortization, severance, multiemployer pension plan withdrawal costs and special items (or adjusted operating profit)	Reconciliation of operating profit before depreciation and amortization, severance, multiemployer pension plan withdrawal costs and special items (or adjusted operating profit)							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 Quarters Ended						For the Six Months Ended
(In thousands)	(In thousands)	March 27, 2022		March 28, 2021		% Change			(In thousands)	June 26, 2022		June 27, 2021		% Change		June 26, 2022		June 27, 2021		% Change
Operating profit	Operating profit	$	6,284	$	51,658	(87.8)	%		Operating profit	$	51,661	$	73,285	(29.5)	%	$	57,945	$	124,943	(53.6)	%
Add:	Add:								Add:
Depreciation and amortization	Depreciation and amortization	18,686		14,717		27.0	%		Depreciation and amortization	20,704		14,486		42.9	%	39,390		29,203		34.9	%
Severance	Severance	—		406		*			Severance	2,660		—		*		2,660		406		*
Multiemployer pension plan withdrawal costs	Multiemployer pension plan withdrawal costs	1,221		1,326		(7.9)	%		Multiemployer pension plan withdrawal costs	1,194		1,301		(8.2)	%	2,415		2,627		(8.1)	%
Special items:	Special items:								Special items:

Acquisition-related costs	Acquisition-related costs	34,712		—		*			Acquisition-related costs	—		—		—		34,712		—		*
Lease termination charge									Lease termination charge	—		3,831		*		—		3,831		*
Adjusted operating profit	Adjusted operating profit	$	60,903	$	68,107	(10.6)	%		Adjusted operating profit	$	76,219	$	92,903	(18.0)	%	$	137,122	$	161,010	(14.8)	%
* Represents a change equal to or in excess of 100% or not meaningful.	* Represents a change equal to or in excess of 100% or not meaningful.							* 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

Amended Revolving Credit Facility

On ~~December 9, 2020, we~~July 27, 2022, the Company entered into an ~~agreement~~amendment and restatement of its Credit Facility (the “Amended Credit Facility”). The Amended Credit Facility provides for up to ~~lease~~$350.0 million of revolving credit loans for the five-year period through July 27, 2027. There was no initial borrowing under the Amended Credit Facility, there are approximately $0.6 million in outstanding letters of credit and ~~subsequently sell approximately 4 acres of land at our printing~~the remaining committed amount remains available.

The Amended Credit Facility contains various customary affirmative 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.negative covenants.

2224

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

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 headquarters (the “Company Headquarters”), retail commerce, our live events business, our student subscription sponsorship program, ~~our live events business,~~ and television and film.

Our main operating costs are employee-related costs.

In the accompanying analysis of financial information, we present certain information derived from consolidated financial information but not presented in our financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). 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-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

•~~On February 1, 2022, we acquired The Athletic and have included its results in our Condensed Consolidated Financial Statements beginning February 1, 2022.~~

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

•Operating profit decreased ~~87.8%~~29.5% to ~~$6.3~~$51.7 million in the ~~first~~second quarter of 2022, compared with ~~$51.7~~$73.3 million in the ~~first~~second quarter of 2021. Operating profit before depreciation, amortization, severance, multiemployer pension plan withdrawal costs and special items discussed below under “Non-GAAP Financial Measures” (or “adjusted operating profit,” a non-GAAP measure) decreased ~~10.6%~~18.0% to ~~$60.9~~$76.2 million in the ~~first~~second quarter of 2022 compared with ~~$68.1~~$92.9 million in the ~~first~~second quarter of 2021. The decreases were primarily attributable to operating losses at The Athletic, as well as higher operating costs at The New York Times Group.

•Total revenues increased ~~13.6%~~11.5% to ~~$537.4~~$555.7 million in the ~~first~~second quarter of 2022 from ~~$473.0~~$498.5 million in the ~~first~~second quarter of 2021.

•Total subscription revenues increased ~~13.0%~~13.1% to ~~$372.0~~$383.6 million in the ~~first~~second quarter of 2022 from ~~$329.1~~$339.2 million in the ~~first~~second quarter of 2021. Digital subscription revenues increased 25.5% to $238.7 million in the second quarter of 2022 from $190.1 million in the second quarter of 2021. Paid digital-only subscribers totaled approximately ~~8,328,000~~8.41 million with ~~9,620,000~~approximately 9.81 million paid digital-only subscriptions at the end of the ~~first~~second quarter of 2022, a net increase of ~~387,000~~180,000 digital-only subscribers and ~~382,000 digital-only subscriptions compared with the end of the fourth quarter of 2021 and a net increase of 1,354,000~~230,000 digital-only subscriptions compared with the end of the first quarter of 2022 and a net increase of 1,480,000 digital-only subscriptions compared with the end of the second quarter of 2021.

•Total advertising revenues increased ~~19.7%~~4.1% to ~~$116.3~~$117.4 million in the ~~first~~second quarter of 2022 from ~~$97.1~~$112.8 million in the ~~first~~second quarter of 2021, due to an increase of ~~12.6%~~15.1% in ~~digital~~print advertising revenues, ~~and an increase~~partially offset by a decrease of ~~30.9%~~2.4% in ~~print~~digital advertising revenues.

•Operating costs increased ~~17.8%~~19.6% to ~~$496.4~~$504.0 million in the ~~first~~second quarter of 2022 from $421.4 million in the ~~first~~second quarter of 2021. Operating costs before depreciation, amortization, severance and multiemployer pension plan withdrawal costs (or “adjusted operating costs,” a non-GAAP measure) increased ~~17.7%~~18.2% to $479.5 million in the ~~first~~second quarter of 2022 ~~to $476.5 million~~ from ~~$404.9~~$405.6 million in the ~~first~~second quarter of 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 ~~22.0%~~24.2% to ~~$87.9~~$92.6 million compared with ~~$72.1~~$74.6 million in the ~~first~~second quarter of 2021.

•Diluted earnings per share from continuing operations were $0.37 and $0.32 for the second quarters of 2022 and 2021, respectively. Diluted earnings per share from continuing operations excluding severance, non-operating retirement costs and special items discussed below under “Non-GAAP Financial Measures” (or “adjusted diluted earnings per share,” a non-GAAP measure) were $0.24 and $0.36 for the second quarters of 2022 and 2021, respectively.

Impact of Covid-19 Pandemic

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

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

2426

RESULTS OF OPERATIONS

The following table presents our consolidated financial results:


		For the Quarters Ended						For the Quarters Ended						For the Six Months Ended
(In thousands)	(In thousands)	March 27, 2022		March 28, 2021		% Change			(In thousands)	June 26, 2022		June 27, 2021		% Change		June 26, 2022		June 27, 2021		% Change
Revenues	Revenues								Revenues
Subscription	Subscription	$	371,979	$	329,084	13.0	%		Subscription	$	383,619	$	339,217	13.1	%	$	755,598	$	668,301	13.1	%
Advertising	Advertising	116,270		97,116		19.7	%		Advertising	117,379		112,774		4.1	%	233,649		209,890		11.3	%
Other	Other	49,176		46,845		5.0	%		Other	54,682		46,506		17.6	%	103,858		93,351		11.3	%
Total revenues	Total revenues	537,425		473,045		13.6	%		Total revenues	555,680		498,497		11.5	%	1,093,105		971,542		12.5	%
Operating costs	Operating costs								Operating costs
Cost of revenue (excluding depreciation and amortization)	Cost of revenue (excluding depreciation and amortization)	281,365		250,997		12.1	%		Cost of revenue (excluding depreciation and amortization)	300,583		251,358		19.6	%	581,948		502,355		15.8	%
Sales and marketing	Sales and marketing	77,588		60,153		29.0	%		Sales and marketing	62,769		53,555		17.2	%	140,357		113,708		23.4	%
Product development	Product development	47,433		38,943		21.8	%		Product development	50,822		39,699		28.0	%	98,255		78,642		24.9	%
General and administrative	General and administrative	71,357		56,577		26.1	%		General and administrative	69,141		62,283		11.0	%	140,498		118,860		18.2	%
Depreciation and amortization	Depreciation and amortization	18,686		14,717		27.0	%		Depreciation and amortization	20,704		14,486		42.9	%	39,390		29,203		34.9	%
Total operating costs	Total operating costs	496,429		421,387		17.8	%		Total operating costs	504,019		421,381		19.6	%	1,000,448		842,768		18.7	%
Acquisition-related costs	Acquisition-related costs	34,712		—		*			Acquisition-related costs	—		—		—		34,712		—		*

Lease termination charge									Lease termination charge	—		3,831		*		—		3,831		*
Operating profit	Operating profit	6,284		51,658		(87.8)	%		Operating profit	51,661		73,285		(29.5)	%	57,945		124,943		(53.6)	%
Other components of net periodic benefit costs	Other components of net periodic benefit costs	1,522		2,599		(41.4)	%		Other components of net periodic benefit costs	1,624		2,598		(37.5)	%	3,146		5,197		(39.5)	%

Interest income and other, net	Interest income and other, net	1,075		1,511		(28.9)	%		Interest income and other, net	35,604		1,873		*		36,679		3,384		*
Income from continuing operations before income taxes	Income from continuing operations before income taxes	5,837		50,570		(88.5)	%		Income from continuing operations before income taxes	85,641		72,560		18.0	%	91,478		123,130		(25.7)	%
Income tax expense	Income tax expense	1,112		9,461		(88.2)	%		Income tax expense	23,864		18,243		30.8	%	24,976		27,704		(9.8)	%

Net income	Net income	4,725		41,109		(88.5)	%		Net income	61,777		54,317		13.7	%	66,502		95,426		(30.3)	%

Net income attributable to The New York Times Company common stockholders	Net income attributable to The New York Times Company common stockholders	$	4,725	$	41,109	(88.5)	%		Net income attributable to The New York Times Company common stockholders	$	61,777	$	54,317	13.7	%	$	66,502	$	95,426	(30.3)	%

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

2527

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 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.

~~2022 Compared with 2021~~

Subscription revenues increased ~~13.0%~~13.1% in the second quarter and first ~~quarter~~six months of 2022 compared with the same prior-year ~~period,~~periods, primarily due to growth in the number of subscribers to the Company’s digital-only products and athe benefit from subscriptions graduating to higher prices from introductory promotional pricing, as well as the inclusion of subscription revenue from The Athletic. The increases in subscription revenue were slightly offset by a decrease in print subscription revenue primarily attributable to lower domestic home delivery revenue, which declined ~~2.2%, as well as lower single-copy revenue~~2.7% and 2.5% for the second quarter and first six months of 2022, respectively, due to secular trends. There is no print subscription revenue generated from The Athletic.

The Company ended the ~~first~~second quarter of 2022 with approximately ~~9,108,000~~9.17 million paid subscribers with approximately ~~10,390,000~~10.56 million paid subscriptions across its print and digital products. Of the ~~9,108,000~~9.17 million subscribers, ~~8,328,000~~approximately 8.41 million were paid digital-only subscribers with ~~9,620,000~~approximately 9.81 million paid digital-only subscriptions. ~~As a result of the acquisition of The Athletic during the quarter, the Company added The Athletic’s approximately 1,101,000 subscribers and 1,233,000 subscriptions as of the date of acquisition.~~

There was a net increase of ~~387,000~~180,000 digital-only subscribers and ~~382,000 digital-only subscriptions compared with the end of the fourth quarter of 2021 and a net increase of 1,354,000~~230,000 digital-only subscriptions compared with the end of the first quarter of ~~2021. These~~2022. There was a net ~~increases included~~increase of 1,200,000 digital-only subscribers and 1,480,000 digital-only subscriptions compared with the end of the second quarter of 2021, which excludes approximately ~~16,000 net subscriber~~1,029,000 subscribers and ~~24,000 net subscription additions to~~1,161,000 subscriptions that were added as a result of the acquisition of The Athletic ~~since~~in the ~~acquisition.~~first quarter of 2022. The Athletic had a net increase of 50,000 standalone subscribers in the quarter. In addition, ~~during~~late in the quarter the Company ~~expanded the terms of domestic home delivery print subscriptions to include~~began giving its bundle subscribers access to ~~its Games product and canceled~~The Athletic, which added approximately ~~67,000 standalone Games subscriptions held by home delivery subscribers. This change reduced digital-only subscriptions by 67,000~~420,000 Subscribers with The Athletic. As a result, total growth in Subscribers with The Athletic was approximately 470,000 in the ~~quarter, but had no impact on subscriber numbers~~.second quarter.

Print domestic home delivery subscribers totaled approximately ~~780,000~~760,000 with ~~770,000~~750,000 print subscriptions at the end of the second quarter of 2022, a net decrease of 20,000 subscribers and 20,000 subscriptions compared with the end of the first quarter of 2022 and a net decrease of ~~15,000~~60,000 subscribers and ~~14,000~~50,000 subscriptions compared with the end of the ~~fourth quarter of 2021 and a net decrease of 57,000 subscribers and 55,000 subscriptions compared with the end of the first~~second quarter of 2021.

The following table summarizes digital and print subscription revenues for the second quarters and first ~~quarters~~six months of 2022 and 2021:


		For the Quarters Ended							For the Quarters Ended						For the Six Months Ended
(In thousands)	(In thousands)	March 27, 2022		March 28, 2021		% Change				(In thousands)	June 26, 2022		June 27, 2021		% Change		June 26, 2022		June 27, 2021		% Change
Digital-only subscription revenues (1)	Digital-only subscription revenues (1)	$	226,763	$	179,599	26.3	%			Digital-only subscription revenues (1)	$	238,727	$	190,145	25.5	%	$	465,489	$	369,745	25.9	%
Print subscription revenues:	Print subscription revenues:									Print subscription revenues:
Domestic home delivery subscription revenues (2)	Domestic home delivery subscription revenues (2)	131,391		134,395		(2.2)	%			Domestic home delivery subscription revenues (2)	131,080		134,755		(2.7)	%	262,472		269,150		(2.5)	%
Single-copy, NYT International and Other subscription revenues (3)	Single-copy, NYT International and Other subscription revenues (3)	13,825		15,090		(8.4)	%			Single-copy, NYT International and Other subscription revenues (3)	13,812		14,317		(3.5)	%	27,637		29,406		(6.0)	%
Subtotal print subscription revenues	Subtotal print subscription revenues	145,216		149,485		(2.9)	%			Subtotal print subscription revenues	144,892		149,072		(2.8)	%	290,109		298,556		(2.8)	%
Total subscription revenues	Total subscription revenues	$	371,979	$	329,084	13.0	%			Total subscription revenues	$	383,619	$	339,217	13.1	%	$	755,598	$	668,301	13.1	%
(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.	(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.							(1) Includes revenue from digital-only bundled and standalone subscriptions to the Company’s news product, as well as The Athletic and our Games, Cooking, Audm and Wirecutter products.
(2) Domestic home delivery subscriptions include access to digital news, Games, Cooking and Wirecutter products.
(2) Domestic home delivery subscriptions include access to our digital news product, as well as our Games, Cooking and Wirecutter products.										(2) Domestic home delivery subscriptions include access to our digital news product, as well as our Games, Cooking and Wirecutter products.
(3) NYT International is the international edition of our print newspaper.	(3) NYT International is the international edition of our print newspaper.							(3) NYT International is the international edition of our print newspaper.

2628

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 ~~average revenue per subscriber.~~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.

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. The sum of individual metrics may not always equal total amounts indicated due to rounding.

The following table summarizes digital and print subscribers as of the end of the ~~first~~second quarters of 2022 and 2021, and ~~fourth~~first quarter of ~~2021:~~2022:


		For the Quarters Ended								For the Quarters Ended
		March 27, 2022	March 28, 2021	% Change		December 26, 2021	% Change			June 26, 2022	June 27, 2021	% Change		March 27, 2022 (1)	% Change
Digital-only subscribers~~(1)~~(2)	Digital-only subscribers~~(1)~~(2)	8,328	6,101	36.5	%	6,840	21.8	%	Digital-only subscribers~~(1)~~(2)	8,410	6,190	35.9	%	8,230	2.2	%
Print subscribers~~(2)~~(3)	Print subscribers~~(2)~~(3)	780	837	(6.8)	%	795	(1.9)	%	Print subscribers~~(2)~~(3)	760	815	(6.7)	%	780	(2.6)	%
Total subscribers	Total subscribers	9,108	6,938	31.3	%	7,635	19.3	%	Total subscribers	9,170	7,005	30.9	%	9,010	1.8	%
(1) Subscribers with paid digital-only subscriptions to one or more of the Company’s news, The Athletic, Games, Cooking and Wirecutter products. Subscribers with a paid domestic home-delivery print subscription to The New York Times are excluded. The number of paid digital-only subscribers from group education and group corporate subscriptions (which collectively represented approximately 5% of paid digital-only subscribers as of December 26, 2021) is derived using the value of the relevant contract and a discounted subscription rate.
(2) Subscribers with a paid domestic home delivery or mail print subscription to The New York Times, which also includes access to digital news, Games, Cooking and Wirecutter products, or a paid print subscription to our Book Review or Large Type Weekly products. Book Review, Mail and Large Type Weekly subscribers are included in the count of subscribers but not subscriptions.
(1) Corrected from previously released information. Refer to Supplementary Information Section.									(1) Corrected from previously released information. Refer to Supplementary Information Section.
(2) 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 paid digital-only subscribers from group education and group corporate subscriptions (which collectively represented approximately 4% of paid digital-only subscribers as of June 26, 2022) is derived using the value of the relevant contract and a discounted subscription rate.									(2) 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 paid digital-only subscribers from group education and group corporate subscriptions (which collectively represented approximately 4% of paid digital-only subscribers as of June 26, 2022) is derived using the value of the relevant contract and a discounted subscription rate.
(3) 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 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) 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 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.

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


		For the Quarters Ended								For the Quarters Ended
(In thousands)	(In thousands)	March 27, 2022	March 28, 2021	% Change		December 26, 2021	% Change		(In thousands)	June 26, 2022	June 27, 2021	% Change		March 27, 2022 (2)	% Change
Digital-only subscriptions ~~(3)~~(4)	Digital-only subscriptions ~~(3)~~(4)	9,620	7,033	36.8	%	8,005	20.2	%	Digital-only subscriptions ~~(3)~~(4)	9,810	7,175	36.7	%	9,579	2.4	%
Print subscriptions ~~(4)~~(5)	Print subscriptions ~~(4)~~(5)	770	825	(6.7)	%	784	(1.8)	%	Print subscriptions ~~(4)~~(5)	750	803	(6.6)	%	770	(2.6)	%
Total subscriptions	Total subscriptions	10,390	7,858	32.2	%	8,789	18.2	%	Total subscriptions	10,560	7,978	32.4	%	10,349	2.0	%
(1) While the Company is moving toward an emphasis on individual subscriber growth rather than growth of total subscriptions, we expect to continue to report on the number of subscriptions at least through the fourth quarter of 2022.	(1) While the Company is moving toward an emphasis on individual subscriber growth rather than growth of total subscriptions, we expect to continue to report on the number of subscriptions at least through the fourth quarter of 2022.								(1) While the Company is moving toward an emphasis on individual subscriber growth rather than growth of total subscriptions, we expect to continue to report on the number of subscriptions at least through the fourth quarter of 2022.
(2) Paid digital-only subscriptions to the Company’s news, The Athletic, Games, Cooking, Audm and Wirecutter products. Standalone subscriptions to these products are counted separately and bundle subscriptions are counted as one subscription.
(3) The number of paid digital-only subscriptions includes estimated group corporate and group education subscriptions (which collectively represent approximately 5% of paid digital-only subscriptions as of December 26, 2021). We calculate this estimate using the value of the relevant contract and a discounted subscription rate. The actual number of users who have access to our products through group subscriptions is substantially higher. In the fourth quarter of 2021, we updated the discounted subscription rate used as part of this calculation in order to bring it in line with our current digital subscription pricing model. For comparison purposes, we recast digital-only subscriptions in prior periods using the updated methodology, and this resulted in approximately 42,000 additional group corporate and group education subscriptions in the first quarter of 2021. There is no impact to subscription revenue as a result of this change.
(4) Paid domestic home-delivery print subscriptions to The New York Times, which also include access to digital news, Games, Cooking and Wirecutter products. Excludes subscriptions to our Book Review or Large Type Weekly products and subscriptions to The New York Times that are delivered by mail.
(2) Corrected from previously released information. Refer to Supplementary Information Section.									(2) Corrected from previously released information. Refer to Supplementary Information Section.
(3) 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.									(3) 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.
(4) The number of paid digital-only subscriptions includes estimated group corporate and group education subscriptions (which collectively represented approximately 4% of paid digital-only subscriptions as of June 26, 2022). We calculate this estimate using the value of the relevant contract and a discounted subscription rate. The actual number of users who have access to our products through group subscriptions is substantially higher. In the fourth quarter of 2021, we updated the discounted subscription rate used as part of this calculation in order to bring it in line with our current digital subscription pricing model. For comparison purposes, we recast digital-only subscriptions in prior periods using the updated methodology, and this resulted in approximately 42,000 additional group corporate and group education subscriptions in the second quarter of 2021. There is no impact to subscription revenue as a result of this change.									(4) The number of paid digital-only subscriptions includes estimated group corporate and group education subscriptions (which collectively represented approximately 4% of paid digital-only subscriptions as of June 26, 2022). We calculate this estimate using the value of the relevant contract and a discounted subscription rate. The actual number of users who have access to our products through group subscriptions is substantially higher. In the fourth quarter of 2021, we updated the discounted subscription rate used as part of this calculation in order to bring it in line with our current digital subscription pricing model. For comparison purposes, we recast digital-only subscriptions in prior periods using the updated methodology, and this resulted in approximately 42,000 additional group corporate and group education subscriptions in the second quarter of 2021. There is no impact to subscription revenue as a result of this change.
(5) Paid domestic home-delivery print subscriptions to The New York Times, which also include access to our digital news product, as well as 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.									(5) Paid domestic home-delivery print subscriptions to The New York Times, which also include access to our digital news product, as well as 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.

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


		For the Quarters Ended											For the Quarters Ended
(In thousands except for ARPU)	(In thousands except for ARPU)	March 27, 2022		March 28, 2021		% Change		December 26, 2021		% Change		(In thousands except for ARPU)	June 26, 2022		June 27, 2021		% Change		March 27, 2022 (1)		% Change
Digital-only subscriber ARPU~~(1)~~(2)	Digital-only subscriber ARPU~~(1)~~(2)	$	9.04	$	9.15	(1.2)	%	$	9.55	(5.3)	%	Digital-only subscriber ARPU~~(1)~~(2)	$	8.83	$	9.55	(7.5)	%	$	9.13	(3.3)	%
Total multiproduct subscribers~~(2)~~(3)	Total multiproduct subscribers~~(2)~~(3)	2,569		2,100		22.3	%	2,351		9.3	%	Total multiproduct subscribers~~(2)~~(3)	2,690		2,135		26.0	%	2,566		4.8	%
Digital-only subscribers with News~~(3)~~(4)	Digital-only subscribers with News~~(3)~~(4)	6,150		5,290		16.3	%	5,880		4.6	%	Digital-only subscribers with News~~(3)~~(4)	6,140		5,350		14.8	%	6,101		0.6	%
Subscribers with The Athletic~~(4)~~(5)	Subscribers with The Athletic~~(4)~~(5)	1,257		N/A		N/A		N/A		N/A		Subscribers with The Athletic~~(4)~~(5)	1,690		N/A		N/A		1,216		39.0	%
(1) “Digital-only subscriber Average Revenue per User” or “Digital-only subscriber ARPU” is calculated by dividing the average monthly digital subscription revenue (calculated by dividing digital subscription revenue in the quarter by 3.25 to reflect a 28-day billing cycle) in the measurement period by the average number of digital subscribers during the period.
(2) Subscribers with paid subscriptions that include access to two or more of the Company’s products, including through separate standalone subscriptions; a digital bundle; or a print home-delivery subscription (which includes access to our digital news, Games, Cooking and Wirecutter products).
(3) Subscribers with a paid digital-only subscription that includes access to the Company’s digital news product.
(4) Subscribers with a paid subscription that includes access to The Athletic.
(1) Corrected from press release previously issued. Refer to Supplementary Information Section.												(1) Corrected from press release previously issued. Refer to Supplementary Information Section.
(2) “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) “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.
(3) 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).												(3) 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).
(4) Subscribers with a paid digital-only subscription that includes access to the Company’s digital news product. These amounts reflect the updated methodology referenced in footnote 4 in the table directly above.												(4) Subscribers with a paid digital-only subscription that includes access to the Company’s digital news product. These amounts reflect the updated methodology referenced in footnote 4 in the table directly above.
(5) Subscribers with a paid subscription that includes access to The Athletic.												(5) Subscribers with a paid subscription that includes access to The Athletic.

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

(1) Amounts may not add due to rounding.

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

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

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

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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. 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 second quarters and first ~~quarters~~six months of 2022 and 2021:


		For the Quarters Ended						For the Quarters Ended						For the Six Months Ended
(In thousands)	(In thousands)	March 27, 2022		March 28, 2021		% Change			(In thousands)	June 26, 2022		June 27, 2021		% Change		June 26, 2022		June 27, 2021		% Change
Advertising revenues:	Advertising revenues:								Advertising revenues:
Digital	Digital	$	67,014	$	59,496	12.6	%		Digital	$	69,292	$	70,995	(2.4)	%	$	136,306	$	130,491	4.5	%
Print	Print	49,256		37,620		30.9	%		Print	48,087		41,779		15.1	%	97,343		79,399		22.6	%
Total advertising	Total advertising	$	116,270	$	97,116	19.7	%		Total advertising	$	117,379	$	112,774	4.1	%	$	233,649	$	209,890	11.3	%

Digital advertising revenues, which represented 59.0% of total advertising revenues in the second quarter of 2022, ~~Compared~~decreased $1.7 million, or 2.4%, to $69.3 million compared with ~~2021~~$71.0 million in the same prior-year period.The decrease was primarily a result of the macroeconomic environment, a reduction in marketer spend on advertising adjacent to news coverage given the current news environment, and fewer programmatic advertising impressions, which more than offset higher direct-sold advertising largely from the addition of advertising revenue from The Athletic, which contributed $2.5 million. Other digital advertising revenue decreased $4.6 million, primarily due to a 30.7% decrease in open-market programmatic advertising revenue, as well as a 15% decrease in creative services fees. Programmatic impressions decreased by 31%, while the average rate increased 4%. Core digital advertising revenue increased $2.9 million due to growth in podcast advertising revenues, which includes $2.5 million from The Athletic, and direct-sold display advertising. Direct-sold display impressions increased 31%, while the average rate decreased 19%.

Digital advertising revenues, which represented ~~57.6%~~58.3% of total advertising revenues in the first ~~quarter~~six months of 2022, increased ~~$7.5~~$5.8 million, or ~~12.6%~~4.5%, to ~~$67.0~~$136.3 million compared with ~~$59.5~~$130.5 million in the same prior-year ~~period, of which $1.8~~period. The Athletic contributed $4.3 million, or ~~23.7%, was contributed by The Athletic following~~74.4% of the ~~acquisition.~~increase. The increase was primarily driven by higher direct-sold advertising, including traditional display and podcasts. Core digital advertising revenue increased ~~$10.3~~$13.2 million, which includes ~~$1.8~~$4.3 million from The Athletic, due to growth in direct-sold display advertising and podcast advertising revenues. Direct-sold display impressions increased 7%21%, while the average rate ~~grew 19%~~decreased 5%. Other digital advertising revenue decreased ~~$2.8~~$7.4 million, primarily due to a 22.4% decrease in open-market programmatic advertising revenue, as well as a 16% decrease in creative services ~~fees, as well as a 14.3% decrease in open-market programmatic advertising revenue.~~fees. Programmatic impressions decreased by ~~36%~~34%, while the average rate increased ~~32%~~19%.

Print advertising revenues, which represented ~~42.4%~~41.0% of total advertising revenues in the second quarter of 2022, increased $6.3 million, or 15.1%, to $48.1 million compared with $41.8 million in the same prior-year period. Print advertising revenues, which represented 41.7% of total advertising revenues in the first ~~quarter~~six months of 2022, increased ~~$11.6~~$17.9 million, or ~~30.9%~~22.6%, to ~~$49.3~~$97.3 million compared with ~~$37.6~~$79.4 million in the same prior-year period. ~~There is no print advertising revenue generated from The Athletic.~~ The increase in the second quarter and first ~~quarter~~six months of 2022 was primarily in the entertainment and luxury categories, which were more severely impacted by the Covid-19 pandemic in the second quarter and first ~~quarter~~six months of 2021. Print advertising revenue continues to be impacted by 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, our live events business, our student subscription sponsorship program, ~~our live events business,~~ and television and film.

~~2022 Compared with 2021~~

Other revenues increased ~~5.0%~~17.6% in the second quarter of 2022 compared with the same prior-year period, primarily as a result of higher commercial printing revenue as we began printing several new small publications in 2022 in our College Point, N.Y., printing and distribution facility, higher live events revenue due to more in-person events, higher television series revenue, higher Wirecutter affiliate referral revenues mainly due to Wirecutter’s presence on our core news website (NYTimes.com) homepage resulting in increased views, and higher licensing revenue.

Other revenues increased 11.3% in the first ~~quarter~~six months of 2022 compared with the same prior-year period, primarily as a result of higher commercial printing revenue as we began printing several News Corporation publications in mid-2021 and several other smaller publications in 2022 in our College Point, N.Y., printing and distribution facility, ~~in mid-2021, and~~ higher Wirecutter affiliate referral revenues mainly due to Wirecutter’s presence on our core news website (NYTimes.com) homepage resulting in increased ~~views. These increases were partially offset by lower television series revenues as no new episodes aired in 2022 compared~~views, and higher live events revenue due to ~~2021.~~more in-person events.

Building rental revenue from the leasing of floors in the Company Headquarters totaled ~~$7.1~~$7.2 million and ~~$6.2~~$6.6 million in the ~~first~~second quarters of 2022 and 2021, respectively, and $14.3 million and $12.8 million in the first six months of 2022 and 2021, respectively.

Operating Costs

Operating costs were as follows:


		For the Quarters Ended						For the Quarters Ended						For the Six Months Ended
(In thousands)	(In thousands)	March 27, 2022		March 28, 2021		% Change			(In thousands)	June 26, 2022		June 27, 2021		% Change		June 26, 2022		June 27, 2021		% Change
Operating costs:	Operating costs:								Operating costs:
Cost of revenue (excluding depreciation and amortization) (1)	Cost of revenue (excluding depreciation and amortization) (1)	$	281,365	$	250,997	12.1	%		Cost of revenue (excluding depreciation and amortization) (1)	$	300,583	$	251,358	19.6	%	$	581,948	$	502,355	15.8	%
Sales and marketing	Sales and marketing	77,588		60,153		29.0	%		Sales and marketing	62,769		53,555		17.2	%	140,357		113,708		23.4	%
Product development (1)	Product development (1)	47,433		38,943		21.8	%		Product development (1)	50,822		39,699		28.0	%	98,255		78,642		24.9	%
General and administrative (1)	General and administrative (1)	71,357		56,577		26.1	%		General and administrative (1)	69,141		62,283		11.0	%	140,498		118,860		18.2	%
Depreciation and amortization(2)	Depreciation and amortization(2)	18,686		14,717		27.0	%		Depreciation and amortization(2)	20,704		14,486		42.9	%	39,390		29,203		34.9	%
Total operating costs	Total operating costs	$	496,429	$	421,387	17.8	%		Total operating costs	$	504,019	$	421,381	19.6	%	$	1,000,448	$	842,768	18.7	%
(1)Technology costs, which include product development costs and certain components of cost of revenue and general and administrative costs as described below, increased 22.0% to $87.9 million compared with $72.1 million the first quarter of 2021.
(1)Technology costs, which include product development costs and certain components of cost of revenue and general and administrative costs as described below, increased 24.2% to $92.6 million compared with $74.6 million in the second quarter of 2021 and increased 23.0% to $180.5 million compared with $146.6 million in the first six 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 24.2% to $92.6 million compared with $74.6 million in the second quarter of 2021 and increased 23.0% to $180.5 million compared with $146.6 million in the first six months of 2021.
(2) Includes amortization of intangible assets related to our acquisitions of approximately $7 million and $12 million for the quarter and six months ended June 26, 2022, respectively.									(2) Includes amortization of intangible assets related to our acquisitions of approximately $7 million and $12 million for the quarter and six months ended June 26, 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.

~~2022 Compared with 2021~~

Cost of revenue increased in the ~~first~~second quarter of 2022 by ~~$30.4~~$49.2 million, or ~~12.1%~~19.6%, compared with the ~~first~~second quarter of 2021. The increase is largely due to higher journalism costs of ~~$22.1~~$31.0 million, higher subscriber servicing costs of ~~$5.0~~$7.8 million, ~~and~~ higher print production and distribution costs of ~~$2.5~~$5.9 million, higher digital content delivery costs of $2.6 million and higher advertising servicing costs of $1.9 million. The increase in journalism costs was largely driven by the inclusion of $18.3 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, Audm and Wirecutter products, as well as the inclusion of $10.8 million in journalism costs from The Athletic.~~newsroom. The increase in subscriber servicing costs was primarily due to the inclusion of $2.2 million of subscriber servicing costs from The Athletic and higher credit card processing fees and third-party commissions due to increased subscriptions. The increase in print production and distribution costs was largely due to an increase in newsprint pricing and fuel costs and increased commercial printing activity. The increase in digital content delivery was primarily due to higher compensation and ~~benefits.~~benefits, as well as higher cloud-related costs. Advertising costs increased primarily due to an increase in live events. Technology costs in Cost of revenue, which include costs related to content delivery and subscriber technology, increased ~~12.3%~~19.3 percent to $25.8 million compared with $21.6 million in the second quarter of 2021.

Cost of revenue increased in the first six months of 2022 by $79.6 million, or 15.8%, compared with the first six months of 2021. The increase is largely due to higher journalism costs of $53.1 million, higher subscriber servicing costs of $12.9 million, higher print production and distribution costs of $8.4 million, higher digital content delivery costs of $3.4 million and higher advertising costs of $1.8 million. The increase in journalism costs was largely driven by the inclusion of $29.1 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, Audm and Wirecutter products. The increase in subscriber servicing costs was primarily due to higher credit card processing fees and third-party commissions due to increased subscriptions, as well as the inclusion of $3.3 million in subscriber servicing costs from The Athletic. The increase in print production and distribution costs was largely due to an increase in newsprint pricing and fuel costs and increased commercial printing activity.. The increase in digital content delivery was primarily due to higher cloud-related costs, as well as higher compensation and benefits. Advertising costs increased primarily due to an increase in live events. Technology costs in Cost of revenue, which include costs related to content delivery and subscriber technology, increased 16.0% to ~~$24.5~~$50.2 million compared with ~~$21.8~~$43.4 million in the first ~~quarter~~six months of 2021.

Sales and Marketing

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

~~2022 Compared with 2021~~

Sales and marketing costs in the ~~first~~second quarter of 2022 increased by ~~$17.4~~$9.2 million, or ~~29.0%~~17.2%, compared with the ~~first~~second quarter of 2021. The increase is primarily due to the inclusion of $4.6 million in sales and marketing costs from The Athletic and higher advertising sales costs, which were lower in the prior year largely due to the Covid-19 pandemic.

Sales and marketing costs in the first six months of 2022 increased by $26.6 million, or 23.4%, compared with the first six months of 2021, largely due to higher media expenses and the factors identified above, as well as the inclusion of ~~$3.1~~$7.7 million in sales and marketing costs from The Athletic.

Media expenses increased 6.6%to ~~$46.3~~$30.9 million in the second quarter of 2022 from $29.0 million in the second quarter of 2021 as a result of our acquisition of The Athletic, which more than offset declines at The New York Times Group.

Media expenses increased 19.1% to $77.3 million in the first ~~quarter~~six months of 2022 from ~~$35.9~~$64.9 million in the first ~~quarter~~six months of 2021 largely as a result of higher brand marketing ~~expenses.~~expenses, as well as The Athletic.

Product Development

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

~~2022 Compared with 2021~~ All product development costs are technology costs.

Product development costs in the ~~first~~second quarter of 2022 increased by ~~$8.5~~$11.1 million, or ~~21.8%~~28.0%, compared with the ~~first~~second quarter of 2021. The increase was largely due to the inclusion of $4.0 million in product development costs from The Athletic, as well as growth in the number of digital product development employees in connection with digital subscription strategic ~~initiatives~~initiatives.

Product development costs in the first six months of 2022 increased by $19.6 million, or 24.9%, compared with the first six months of 2021. The increase was largely due to the factors identified above, as well as the inclusion of ~~$2.3~~$6.3 million in product development costs from The Athletic. ~~All product development costs are technology costs.~~

General and Administrative Costs

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

~~2022 Compared with 2021~~

General and administrative costs in the ~~first~~second quarter of 2022 increased by ~~$14.8~~$6.9 million, or ~~26.1%~~11.0%, compared with the ~~first~~second quarter of 2021. The increase is primarily due to growth in the number of employees, ~~as well as~~ the inclusion of ~~$1.7~~$3.0 million in general and administrative costs from The ~~Athletic.~~Athletic and higher severance expense related to our commercial printing operations. Technology costs in ~~General~~general and administrative, which include costs related to enterprise technology and information security, increased ~~41.0% million~~20.5% to $16.0 million compared with ~~$11.3~~$13.3 million in the ~~first~~second quarter of 2021.

General and administrative costs in the first six months of 2022 increased by $21.6 million, or 18.2%, compared with the first six months of 2021. The increase is primarily due to the factors identified above, as well as the inclusion of $4.8 million in general and administrative costs from The Athletic. Technology costs in general and administrative, which include costs related to enterprise technology and information security, increased 30.0% to $32.0 million compared with $24.6 million in the second quarter of 2021.

Depreciation and Amortization

~~2022 Compared with 2021~~

Depreciation and amortization costs in the second quarter and first ~~quarter~~six months of 2022 increased ~~$4.0~~$6.2 million, or ~~27.0%~~42.9%, and $10.2 million, or 34.9%, respectively, compared towith the ~~first quarter of 2021.~~same prior-year periods. The increase is due to ~~the acquisition of~~ The Athletic intangible assets amortization of approximately $6.7 million and $11.4 million in the second quarter and first six months of 2022, respectively, partially offset by lower depreciation of software assets. See Note 5 of the Notes to the Condensed Consolidated Financial Statements for additional information regarding the estimated aggregate amortization expense resulting from The Athletic acquisition.

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

Segment Information

On February 1, 2022, we acquired The ~~Athletic. For the first quarter of 2022,~~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
(In thousands) March 27, 2022 March 28, 2021 % Change
Revenues
The New York Times Group $ 525,268 $ 473,045 11.0 %
The Athletic 12,157 — *
Total revenues $ 537,425 $ 473,045 13.6 %
Adjusted operating costs
The New York Times Group $ 457,543 $ 404,938 13.0 %
The Athletic 18,979 — *
Total adjusted operating costs $ 476,522 $ 404,938 17.7 %
Adjusted operating profit
The New York Times Group $ 67,725 $ 68,107 (0.6) %
The Athletic (6,822) — *
Total adjusted operating profit $ 60,903 $ 68,107 (10.6) %
* Represents a change equal to or in excess of 100% or not meaningful.


	For the Quarters Ended						For the Six Months Ended
(In thousands)	June 26, 2022		June 27, 2021		% Change		June 26, 2022		June 27, 2021		% Change
Revenues
The New York Times Group	$	536,134	$	498,497	7.6	%	$	1,061,402	$	971,542	9.2	%
The Athletic	19,546		—		*		31,703		—		*
Total revenues	$	555,680	$	498,497	11.5	%	$	1,093,105	$	971,542	12.5	%
Adjusted operating costs
The New York Times Group	$	447,316	$	405,594	10.3	%	$	904,860	$	810,532	11.6	%
The Athletic	32,145		—		*		51,123		—		*
Total adjusted operating costs	$	479,461	$	405,594	18.2	%	$	955,983	$	810,532	17.9	%
Adjusted operating profit
The New York Times Group	$	88,818	$	92,903	(4.4)	%	$	156,542	$	161,010	(2.8)	%
The Athletic	(12,599)		—		*		(19,420)		—		*
Total adjusted operating profit	$	76,219	$	92,903	(18.0)	%	$	137,122	$	161,010	(14.8)	%
* Represents a change equal to or in excess of 100% or not meaningful.

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


Revenues detail by segment
	For the Quarters Ended						For the Six Months Ended
(In thousands)	June 26, 2022		June 27, 2021		% Change		June 26, 2022		June 27, 2021		% Change
The New York Times Group
Subscription	$	366,620	$	339,217	8.1	%	$	728,222	$	668,301	9.0	%
Advertising	114,832		112,774		1.8	%	229,322		209,890		9.3	%
Other	54,682		46,506		17.6	%	103,858		93,351		11.3	%
Total	$	536,134	$	498,497	7.6	%	$	1,061,402	$	971,542	9.2	%
The Athletic
Subscription	$	16,999	$	—	*		$	27,376	$	—	*
Advertising	2,547		—		*		4,327		—		*

Total	$	19,546	$	—	*		$	31,703	$	—	*
The New York Times Company
Subscription	$	383,619	$	339,217	13.1	%	$	755,598	$	668,301	13.1	%
Advertising	117,379		112,774		4.1	%	233,649		209,890		11.3	%
Other	54,682		46,506		17.6	%	103,858		93,351		11.3	%
Total	$	555,680	$	498,497	11.5	%	$	1,093,105	$	971,542	12.5	%
* Represents a change equal to or in excess of 100% or not meaningful.

3336


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 Six Months Ended
(In thousands)	June 26, 2022		June 27, 2021		% Change		June 26, 2022		June 27, 2021		% Change
The New York Times Group
Cost of revenue (excluding depreciation and amortization)	$	279,985	$	251,358	11.4	%	$	549,460	$	502,355	9.4	%
Sales and marketing	58,183		53,555		8.6	%	132,643		113,708		16.7	%
Product development	46,773		39,699		17.8	%	91,952		78,642		16.9	%
Adjusted general and administrative (1)	62,375		60,982		2.3	%	130,805		115,827		12.9	%
Total	$	447,316	$	405,594	10.3	%	$	904,860	$	810,532	11.6	%
The Athletic
Cost of revenue (excluding depreciation and amortization)	$	20,598	$	—	*		$	32,488	$	—	*
Sales and marketing	4,586		—		*		7,714		—		*
Product development	4,049		—		*		6,303		—		*
Adjusted general and administrative (2)	2,912		—		*		4,618		—		*
Total	$	32,145	$	—	*		$	51,123	$	—	*
The New York Times Company
Cost of revenue (excluding depreciation and amortization)	$	300,583	$	251,358	19.6	%	$	581,948	$	502,355	15.8	%
Sales and marketing	62,769		53,555		17.2	%	140,357		113,708		23.4	%
Product development	50,822		39,699		28.0	%	98,255		78,642		24.9	%
Adjusted general and administrative (1)	65,287		60,982		7.1	%	135,423		115,827		16.9	%
Total	$	479,461	$	405,594	18.2	%	$	955,983	$	810,532	17.9	%
(1) Excludes severance of $2.5 million for the quarter and six months ended June 26, 2022 and multiemployer pension withdrawal costs of $1.2 million and $2.4 million for the quarter and six months ended June 26, 2022, respectively. Excludes multiemployer pension withdrawal costs of $1.3 million and $2.6 million for the quarter and six months ended June 27, 2021, respectively, and severance of $0.4 million for the six months ended June 27, 2021.
(2) Excludes $0.2 million of severance for the quarter and six months ended June, 26, 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 ~~11.0%~~7.6% in the ~~first~~second quarter of 2022 to ~~$525.3~~$536.1 million from ~~$473.0~~$498.5 million in the second quarter of 2021 and grew 9.2% in the first six months of 2022 to $1.1 billion from $971.5 million in the first ~~quarter~~six months of 2021. Subscription revenues increased ~~9.9%~~8.1% to ~~$361.6~~$366.6 million from ~~$329.1~~$339.2 million in the second quarter of 2021 and increased 9.0% to $728.2 million from $668.3 million in the first ~~quarter~~six months of 2021, primarily due to growth in subscription revenues from digital-only products. Advertising revenues increased ~~17.9%~~1.8% to ~~$114.5~~$114.8 million from ~~$97.1~~$112.8 million in the second quarter of 2021 as growth in print advertising more than offset a decline in digital advertising revenues. Advertising revenues increased 9.3% to $229.3 million from $209.9 million in the first ~~quarter~~six months of 2021 primarily due to growth in print ~~and digital advertising revenues.~~advertising.

The New York Times Group adjusted operating costs grew ~~13.0%~~10.3% in the ~~first~~second quarter of 2022 to ~~$457.5~~$447.3 million from ~~$404.9~~$405.6 million in the second quarter of 2021 and grew 11.6% in the first six months of 2022 to $904.9 million from $810.5 million in the first ~~quarter~~six months of 2021. The increase in costs ~~were~~in the second quarter of 2022 was primarily related to growth in the number of employees. The increase in costs in the first six months of 2022 was primarily related to growth in the number of employees and higher media expenses.

~~Adjusted~~The New York Times Group adjusted operating profit decreased ~~0.6%~~4.4% in the second quarter of 2022 to ~~$67.7~~$88.8 million from ~~$68.1~~$92.9 million in the ~~prior year~~second quarter of 2021 and decreased 2.8% in the first six months of 2022 to $156.5 million from $161.0 million in the first six months of 2021, as higher revenues were more than offset by higher costs.

The Athletic

~~For the approximately two months in the first quarter of 2022 that the Company owned~~ The Athletic revenues in the second quarter and first six months (from February 1, 2022) of 2022 totaled ~~$12.2~~$19.5 million and $31.7 million, respectively, primarily from subscription revenues.

The Athletic adjusted operating costs totaled ~~$19.0~~$32.1 million and $51.1 million for the ~~period of the~~second quarter and first ~~quarter from~~six months (from February 1, 2022) of 2022, respectively, largely from cost of revenue, which was primarily related to journalism costs.

The Athletic a~~djusted~~adjusted operating loss totaled ~~$6.8~~$12.6 and $19.4 million for the ~~period of the~~second quarter and first ~~quarter from~~six 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

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 ~~item~~items in ~~the first quarter of~~ 2022 consisted of:

•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.

•a $34.7 million of pre-tax ~~costs~~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.

~~There were no~~The special ~~items~~item in 2021 consisted of:

•a $3.8 million charge ($2.8 million or $0.02 per share after tax) in the ~~first~~second quarter resulting from the termination of ~~2021.~~a tenant’s lease in our Company Headquarters.

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 (and adjusted operating profit margin) is useful in evaluating the ongoing performance of the Company’s businesses as it excludes the significant non-cash impact of depreciation and amortization as well as items not indicative of ongoing operating activities. Total operating costs include depreciation, amortization, severance

and multiemployer pension plan withdrawal costs. Total operating costs, excluding these items, provide 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 Quarters Ended						For the Six Months Ended
		March 27, 2022		March 28, 2021		% Change					June 26, 2022		June 27, 2021		% Change		June 26, 2022		June 27, 2021		% Change
Diluted earnings per share from continuing operations	Diluted earnings per share from continuing operations	$	0.03	$	0.24	(87.5)	%			Diluted earnings per share from continuing operations	$	0.37	$	0.32	15.6	%	$	0.40	$	0.57	(29.8)	%
Add:	Add:									Add:

Severance										Severance	0.02		—		*		0.02		—		*
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		—				Multiemployer pension plan withdrawal costs	0.01		0.01		—		0.01		0.02		(50.0)	%
Other components of net periodic benefit costs	Other components of net periodic benefit costs	0.01		0.02		(50.0)	%			Other components of net periodic benefit costs	0.01		0.02		(50.0)	%	0.02		0.03		(33.3)	%
Special items:	Special items:									Special items:
Acquisition-related costs	Acquisition-related costs	0.21		—		*				Acquisition-related costs	—		—		—		0.21		—		*
Lease termination charge										Lease termination charge	—		0.02		*		—		0.02		*

Land sale										Land sale	(0.20)		—		*		(0.20)		—		*

Income tax expense of adjustments	Income tax expense of adjustments	(0.06)		(0.01)		*				Income tax expense of adjustments	0.05		(0.01)		*		(0.01)		(0.02)		*
Adjusted diluted earnings per share from continuing operations(1)	Adjusted diluted earnings per share from continuing operations(1)	$	0.19	$	0.26	(26.9)	%			Adjusted diluted earnings per share from continuing operations(1)	$	0.24	$	0.36	(33.3)	%	$	0.44	$	0.62	(29.0)	%

(1)Amounts may not add due to rounding.

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

3539


Reconciliation of operating profit before depreciation and amortization, severance, multiemployer pension plan withdrawal costs and special items (or adjusted operating profit)	Reconciliation of operating profit before depreciation and amortization, severance, multiemployer pension plan withdrawal costs and special items (or adjusted operating profit)									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 Quarters Ended					For the Six Months Ended
		March 27, 2022			March 28, 2021			% Change					June 26, 2022			June 27, 2021			% Change		June 26, 2022			June 27, 2021			% Change
Operating profit	Operating profit	$	6,284		$	51,658		(87.8)	%			Operating profit	$	51,661		$	73,285		(29.5)	%	$	57,945		$	124,943		(53.6)	%
Add:	Add:											Add:
Depreciation and amortization	Depreciation and amortization	18,686			14,717			27.0	%			Depreciation and amortization	20,704			14,486			42.9	%	39,390			29,203			34.9	%
Severance	Severance	—			406			*				Severance	2,660			—			*		2,660			406			*
Multiemployer pension plan withdrawal costs	Multiemployer pension plan withdrawal costs	1,221			1,326			(7.9)	%			Multiemployer pension plan withdrawal costs	1,194			1,301			(8.2)	%	2,415			2,627			(8.1)	%
Special items:	Special items:											Special items:

Lease termination charge												Lease termination charge	—			3,831			*		—			3,831			*

Acquisition-related costs	Acquisition-related costs	34,712			—			*				Acquisition-related costs	—			—			—		34,712			—			*
Adjusted operating profit	Adjusted operating profit	$	60,903		$	68,107		(10.6)	%			Adjusted operating profit	$	76,219		$	92,903		(18.0)	%	$	137,122		$	161,010		(14.8)	%
Divided by:	Divided by:											Divided by:
Revenue	Revenue	537,425			473,045			13.6	%			Revenue	555,680			498,497			11.5	%	1,093,105			971,542			12.5	%
Adjusted operating profit margin	Adjusted operating profit margin	11.3		%	14.4		%	(310) bps				Adjusted operating profit margin	13.7		%	18.6		%	(490) bps		12.5		%	16.6		%	(410) bps

* Represents a change equal to or in excess of 100% or not meaningful.	* Represents a change equal to or in excess of 100% or not meaningful.									* 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)	Reconciliation of operating costs before depreciation and amortization, severance and multiemployer pension plan withdrawal costs (or adjusted operating costs)							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 Quarters Ended				For the Six Months Ended
		March 27, 2022		March 28, 2021		% Change					June 26, 2022		June 27, 2021		% Change		June 26, 2022		June 27, 2021		% Change
Operating costs	Operating costs	$	496,429	$	421,387	17.8	%			Operating costs	$	504,019	$	421,381	19.6	%	$	1,000,448	$	842,768	18.7	%
Less:	Less:									Less:
Depreciation and amortization	Depreciation and amortization	18,686		14,717		27.0	%			Depreciation and amortization	20,704		14,486		42.9	%	39,390		29,203		34.9	%
Severance	Severance	—		406		*				Severance	2,660		—		*		2,660		406		*
Multiemployer pension plan withdrawal costs	Multiemployer pension plan withdrawal costs	1,221		1,326		(7.9)	%			Multiemployer pension plan withdrawal costs	1,194		1,301		(8.2)	%	2,415		2,627		(8.1)	%
Adjusted operating costs	Adjusted operating costs	$	476,522	$	404,938	17.7	%			Adjusted operating costs	$	479,461	$	405,594	18.2	%	$	955,983	$	810,532	17.9	%

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

3640

Supplementary Information


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. The sum of individual metrics may not always equal total amounts indicated due to rounding. In addition, 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, 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 both decreased by 72,000. The below supplementary tables 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)	2,569		(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.


The following table summarizes the Company’s subscribers, subscriptions related subscriber metrics over the last six quarters. The second quarter reflects the update to the rounding methodology and first quarter of 2022, fourth and first quarter of 2021 reflect the adjustments noted in the previous section.

The following table summarizes digital and print subscribers for the last six quarters:

	Q2 2022	Q1 2022	Q4 2021	Q3 2021	Q2 2021	Q1 2021
Digital-only subscribers (1)	8,410	8,230	6,783	6,546	6,190	6,083
Print subscribers (1)	760	780	795	806	815	837
Total subscribers (1)	9,170	9,010	7,578	7,352	7,005	6,920
(1) Refer to the corresponding footnotes in the main section of the Results of Operations.


The following table summarizes digital and print subscriptions for the last six quarters:

	Q2 2022	Q1 2022	Q4 2021	Q3 2021	Q2 2021	Q1 2021
Digital-only subscriptions (1)	9,810	9,579	8,005	7,630	7,175	7,033
Print subscriptions (1)	750	770	784	795	803	825
Total subscriptions (1)	10,560	10,349	8,789	8,425	7,978	7,858
(1) Refer to the corresponding footnotes in the main section of the Results of Operations.


The following table summarizes supplementary subscriber metrics for the last six quarters:

	Q2 2022		Q1 2022		Q4 2021		Q3 2021		Q2 2021		Q1 2021
Digital-only subscriber ARPU (1)	$	8.83	$	9.13	$	9.60	$	9.64	$	9.55	$	9.18
Total multiproduct subscribers (1)	2,690		2,566		2,351		2,245		2,135		2,103
Digital-only subscribers with News (1)	6,140		6,101		5,826		5,665		5,350		5,270
Subscribers with The Athletic (1)	1,690		1,216		—		—		—		—
(1) Refer to the corresponding footnotes in the main section of the Results of Operations.

LIQUIDITY AND CAPITAL RESOURCES

We believe our cash balance and cash provided by operations, in combination with other sources of cash, will be sufficient to meet our financing needs over the next twelve months. As of ~~March 27,~~June 26, 2022, we had cash, cash equivalents and short- and long-term marketable securities of ~~$474.8~~$453.4 million. Our cash and marketable securities balances between December 26, 2021, and ~~March 27,~~June 26, 2022, decreased primarily due to consideration paid for the acquisition of The Athletic and ~~the~~ annual incentive compensation ~~payments.~~payments made in the first quarter.

We have paid quarterly dividends on the Class A and Class B Common Stock each quarter since late 2013. In February 2022, the Board of Directors approved an increase in the quarterly dividend to $0.09 per share, which was paid in April 2022. On June 29, 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 July 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 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 ~~March 27,~~June 26, 2022, we had repurchased ~~692,800~~1,474,330 shares for approximately ~~$29.0~~$54.4 million (excluding commissions) under this authorization. As of July 29, 2022, we had repurchased 1,934,708 shares for approximately $67.8 million (excluding commissions) and $82.2 million remained under this authorization.

Capital Resources

Sources and Uses of Cash

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


		For the Quarters Ended							For the Six Months Ended
(In thousands)	(In thousands)	March 27, 2022		March 28, 2021		% Change		(In thousands)	June 26, 2022		June 27, 2021		% Change
Operating activities	Operating activities	$	(14,659)	$	32,929	(144.5)	%	Operating activities	$	16,148	$	110,434	(85.4)	%
Investing activities	Investing activities	$	(84,009)	$	(26,208)	220.5	%	Investing activities	$	(81,190)	$	(46,332)	75.2	%
Financing activities	Financing activities	$	(51,922)	$	(18,108)	186.7	%	Financing activities	$	(92,714)	$	(30,285)	206.1	%

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 decreased in the first ~~quarter~~six months of 2022 compared with the same prior-year period primarily due to ~~lower net income,~~ higher 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, an increase in other assets~~Jobs Act of 2017 deferring the deduction for research and development expenditures, lower net income, lower cash payments received from prepaid subscriptions and an increase in other assets, 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 ~~quarter~~six months of 2022 was primarily related to $515.3 million in consideration paid for acquisitions, net of cash acquired, and ~~$8.6~~$19.0 million in capital expenditures payments, partially offset by ~~$440.4~~$451.7 million 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 ~~quarter~~six months of 2022 was primarily related to share repurchases of ~~$29.0~~$54.5 million (excluding commissions), dividend payments of ~~$11.8~~$26.9 million and share-based compensation tax withholding payments of ~~$9.3~~$9.6 million.

Restricted Cash

We were required to maintain $14.4 million of restricted cash as of ~~March 27,~~June 26, 2022, and $14.3 million as of December 26, 2021, substantially all of which is set aside to collateralize workers’ compensation obligations.

Capital Expenditures

Capital expenditures totaled approximately ~~$10~~$20 million and $7$15 million in the first ~~quarter~~six months of 2022 and 2021, respectively. The increase in capital expenditures in 2022 was primarily driven by improvements in the Company Headquarters which are intended to address growth in the number of employees and to enhance technologies that support our transition to hybrid work with employees working both from the office and remotely. The cash payments related to capital expenditures totaled approximately $9$19 million and $6$15 million in the first ~~quarters~~six months of 2022 and 2021, respectively.

Third-Party Financing

In September 2019, we entered into a $250 million five-year unsecured credit facility (the “Credit Facility”). Certain of our domestic subsidiaries have guaranteed our obligations under the Credit Facility. As of ~~March 27,~~June 26, 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. On July 27, 2022, the Company entered into an amendment and restatement of the Credit Facility (the “Amended Credit Facility”) that, among other changes, increased the committed amount to $350.0 million and extended the maturity date to July 27, 2027. See Notes 7 and 15 of the Notes to the Condensed Consolidated Financial Statements for information regarding the Credit Facility and the Amended 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 26, 2021. Other than as described in Note 2 of the Notes to the Condensed Consolidated Financial Statements, as of ~~March 27,~~June 26, 2022, our critical accounting policies have not changed from December 26, 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: significant competition in all aspects of our business; our ability to grow the size and profitability of our subscriber base; our dependence on metrics that are subject to inherent challenges in measurement; our ability to improve and scale our technical and data infrastructure and respond and adapt to changes in technology and consumer behavior; numerous factors that affect our advertising revenues, including economic conditions, market dynamics, evolving digital advertising trends and the evolution of our strategy; damage to our brand or reputation; the impact of the 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 talented and diverse workforce; the impact of labor negotiations and agreements; adverse results from litigation or governmental investigations; risks associated with the ~~recent~~ acquisition of The Athletic, including, among others, those related to our ability to realize the anticipated benefits of the acquisition, our ability to meet our publicly announced guidance about the impact of the acquisition, and the risks associated with ~~its~~The Athletic’s business and operations; the risks and challenges associated with investments we make in new and existing products and services, including The Athletic; risks associated with other acquisitions, divestitures, investments and other transactions; potential effects on our operating flexibility as a result of the nature of significant portions of our expenses; the effects of the size and volatility of our pension plan obligations; liabilities

that may result from our participation in multiemployer pension plans; significant disruptions in our newsprint supply chain or newspaper printing and distribution channels or a significant increase in the costs to print and distribute our newspaper; security breaches and other network and information systems disruptions; our ability to comply with laws and regulations, including with respect to privacy, data protection and consumer marketing practices; payment processing risk; defects, delays or interruptions in the cloud-based hosting services we utilize; our ability to protect our intellectual property; claims of intellectual property infringement that we have been, and may be in the future, 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 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 26, 2021, details our disclosures about market risk. As of ~~March 27,~~June 26, 2022, there were no material changes in our market risks from December 26, 2021.

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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 ~~March 27,~~June 26, 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

There were no changes in our internal control over financial reporting during the quarter ended ~~March 27,~~June 26, 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 ~~planning the integration of~~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 controls over financial reporting at December 31, 2022, will not include The Athletic.

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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 26, 2021.

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

In February 2022, the Board of Directors approved a $150.0 million Class A 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 ~~March 27,~~June 26, 2022, repurchases under this authorization totaled approximately ~~$29.0~~$54.4 million (excluding commissions) and approximately ~~$121.0~~$95.6 million remained.

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


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
March 28, 2022 - May 1, 2022	—	$	—	—	$	—
May 2, 2022 - May 29, 2022	521,385	$	33.68	521,385	$	103,405,000
May 30, 2022 - June 26, 2022	260,145	$	30.89	260,145	$	95,560,000
Total for the second quarter of 2022	781,530	$	32.40	781,530	$	95,560,000

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Item 6. Exhibits


Exhibit No.

2.1*10.1						Credit Agreement, ~~and Plan of Merger,~~ dated as of ~~January 6,~~July 27, 2022,, ~~by and~~ among ~~The Athletic Media Company,~~ The New York Times Company, ~~Subscription Holding Co.~~as borrower, the financial institutions party thereto as Lenders, Bank of America, N.A., as Administrative Agent, Swing Line Lender and ~~Shareholder Representative Services~~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, ~~(filed~~ as anJoint Lead Arrangers and Joint Bookrunners (incorporated by reference from Exhibit 10.1 to the Company’s Current Report on Form 8-K, ~~dated January 7, 2022, and incorporated by reference herein).~~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).

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

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SIGNATURES

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


		THE NEW YORK TIMES COMPANY
		(Registrant)

Date:	~~May 4,~~August 3, 2022	/s/ Roland A. Caputo
		Roland A. Caputo Executive Vice President and Chief Financial Officer (Principal Financial Officer)

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