THE NEW YORK TIMES COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

For the Quarters Ended September ~~29, 2019~~27, 2020 and September ~~30, 2018~~29, 2019

(Unaudited)

(In thousands, except share data)


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

Balance, June 30, 2019	$	17,488	$	200,356	$	1,544,694	$	(171,211)	$	(507,984)	$	1,083,343	$	1,860	$	1,085,203

Net income	—		—		16,427		—		—		16,427		—		16,427
Dividends	—		—		(8,333)		—		—		(8,333)		—		(8,333)
Other comprehensive income	—		—		—		—		1,529		1,529		—		1,529
Issuance of shares:
Stock options – 3,000 Class A shares	—		33		—		—		—		33		—		33
Restricted stock units vested – 25,512 Class A shares	3		(3)		—		—		—		—		—		—

Stock-based compensation	—		2,907		—		—		—		2,907		—		2,907

Balance, September 29, 2019	$	17,491	$	203,293	$	1,552,788	$	(171,211)	$	(506,455)	$	1,095,906	$	1,860	$	1,097,766

Balance, June 28, 2020	$	17,562	$	205,618	$	1,659,158	$	(171,211)	$	(481,956)	$	1,229,171	$	1,860	$	1,231,031

Net income	—		—		33,578		—		—		33,578		—		33,578
Dividends	—		—		(20,103)		—		—		(20,103)		—		(20,103)
Other comprehensive income	—		—		—		—		6,038		6,038		—		6,038
Issuance of shares:
Stock options – 372,508 Class A shares	37		3,397		—		—		—		3,434		—		3,434
Restricted stock units vested – 635 Class A shares	—		(16)		—		—		—		(16)		—		(16)

Stock-based compensation	—		3,292		—		—		—		3,292		—		3,292

Balance, September 27, 2020	$	17,599	$	212,291	$	1,672,633	$	(171,211)	$	(475,918)	$	1,255,394	$	1,860	$	1,257,254

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, July 1, 2018 $ 17,376
$ 201,601
$ 1,439,121
$ (171,211 ) $ (507,281 ) $ 979,606
$ 85
$ 979,691
Net income —
—
24,976
—
—
24,976
(2 ) 24,974
Dividends —
—
(6,634 ) —
—
(6,634 ) —
(6,634 )
Other comprehensive income —
—
—
—
5,725
5,725
—
5,725
Issuance of shares:
Stock options – 34,000 Class A shares 3
120
—
—
—
123
—
123
Restricted stock units vested – 7,648 Class A shares 1
(92 ) —
—
—
(91 ) —
(91 )
Stock-based compensation —
2,883
—
—
—
2,883
—
2,883
Balance, September 30, 2018 $ 17,380
$ 204,512
$ 1,457,463
$ (171,211 ) $ (501,556 ) $ 1,006,588
$ 83
$ 1,006,671

Balance, June 30, 2019 $ 17,488
$ 200,356
$ 1,544,694
$ (171,211 ) $ (507,984 ) $ 1,083,343
$ 1,860
$ 1,085,203
Net income —
—
16,427
—
—
16,427
—
16,427
Dividends —
—
(8,333 ) —
—
(8,333 ) —
(8,333 )
Other comprehensive income —
—
—
—
1,529
1,529
—
1,529
Issuance of shares:
Stock options – 3,000 Class A shares —
33
—
—
—
33
—
33
Restricted stock units vested – 25,512 Class A shares 3
(3 ) —
—
—
—
—
—
Stock-based compensation —
2,907
—
—
—
2,907
—
2,907
Balance, September 29, 2019 $ 17,491
$ 203,293
$ 1,552,788
$ (171,211 ) $ (506,455 ) $ 1,095,906
$ 1,860
$ 1,097,766

THE NEW YORK TIMES COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

For the Nine Months Ended September ~~29, 2019~~27, 2020 and September ~~30, 2018~~29, 2019

(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 30, 2018	$	17,396	$	206,316	$	1,506,004	$	(171,211)	$	(517,724)	$	1,040,781	$	1,860	$	1,042,641

Net income	—		—		71,754		—		—		71,754		—		71,754
Dividends	—		—		(24,970)		—		—		(24,970)		—		(24,970)
Other comprehensive income	—		—		—		—		11,269		11,269		—		11,269
Issuance of shares:
Stock options – 282,510 Class A shares	28		2,970		—		—		—		2,998		—		2,998
Restricted stock units vested – 246,599 Class A shares	25		(3,750)		—		—		—		(3,725)		—		(3,725)
Performance-based awards – 418,491 Class A shares	42		(11,966)		—		—		—		(11,924)		—		(11,924)
Stock-based compensation	—		9,723		—		—		—		9,723		—		9,723
Balance, September 29, 2019	$	17,491	$	203,293	$	1,552,788	$	(171,211)	$	(506,455)	$	1,095,906	$	1,860	$	1,097,766

Balance, December 29, 2019	$	17,504	$	208,028	$	1,612,658	$	(171,211)	$	(494,976)	$	1,172,003	$	1,860	$	1,173,863

Net income	—		—		90,094		—		—		90,094		—		90,094
Dividends	—		—		(30,119)		—		—		(30,119)		—		(30,119)
Other comprehensive income	—		—		—		—		19,058		19,058		—		19,058
Issuance of shares:
Stock options – 552,018 Class A shares	55		5,252		—		—		—		5,307		—		5,307
Restricted stock units vested – 142,136 Class A shares	14		(3,913)		—		—		—		(3,899)		—		(3,899)
Performance-based awards – 257,098 Class A shares	26		(7,850)		—		—		—		(7,824)		—		(7,824)
Stock-based compensation	—		10,774		—		—		—		10,774		—		10,774
Balance, September 27, 2020	$	17,599	$	212,291	$	1,672,633	$	(171,211)	$	(475,918)	$	1,255,394	$	1,860	$	1,257,254

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 31, 2017 $ 17,108
$ 164,275
$ 1,310,136
$ (171,211 ) $ (423,029 ) $ 897,279
$ 84
$ 897,363
Impact of adopting new accounting guidance —
—
96,707
—
(94,135 ) 2,572
—
2,572
Net income —
—
70,485
—
—
70,485
(1 ) 70,484
Dividends —
—
(19,865 ) —
—
(19,865 ) —
(19,865 )
Other comprehensive income —
—
—
—
15,608
15,608
—
15,608
Issuance of shares:
Stock options – 2,219,201 Class A shares 222
40,428
—
—
—
40,650
—
40,650
Restricted stock units vested – 230,822 Class A shares 23
(3,168 ) —
—
—
(3,145 ) —
(3,145 )
Performance-based awards – 271,841 Class A shares 27
(5,930 ) —
—
—
(5,903 ) —
(5,903 )
Stock-based compensation —
8,907
—
—
—
8,907
—
8,907
Balance, September 30, 2018 $ 17,380
$ 204,512
$ 1,457,463
$ (171,211 ) $ (501,556 ) $ 1,006,588
$ 83
$ 1,006,671

Balance, December 30, 2018 $ 17,396
$ 206,316
$ 1,506,004
$ (171,211 ) $ (517,724 ) $ 1,040,781
$ 1,860
$ 1,042,641
Net income —
—
71,754
—
—
71,754
—
71,754
Dividends —
—
(24,970 ) —
—
(24,970 ) —
(24,970 )
Other comprehensive income —
—
—
—
11,269
11,269
—
11,269
Issuance of shares:
Stock options – 282,510 Class A shares 28
2,970
—
—
—
2,998
—
2,998
Restricted stock units vested – 246,599 Class A shares 25
(3,750 ) —
—
—
(3,725 ) —
(3,725 )
Performance-based awards – 418,491 Class A shares 42
(11,966 ) —
—
—
(11,924 ) —
(11,924 )
Stock-based compensation —
9,723
—
—
—
9,723
—
9,723
Balance, September 29, 2019 $ 17,491
$ 203,293
$ 1,552,788
$ (171,211 ) $ (506,455 ) $ 1,095,906
$ 1,860
$ 1,097,766

THE NEW YORK TIMES COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)


	For the Nine Months Ended							For the Nine Months Ended
	September 29, 2019			September 30, 2018				September 27, 2020		September 29, 2019
	(39 weeks)							(39 weeks)
Cash flows from operating activities							Cash flows from operating activities
Net income	$	71,754		$	70,484		Net income	$	90,094	$	71,754
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	45,548			43,969			Depreciation and amortization	46,368		45,548
Amortization of right of use asset							Amortization of right of use asset	6,446		5,462
Stock-based compensation expense	9,723			9,969			Stock-based compensation expense	10,744		9,723
Deferred income taxes							Deferred income taxes	(1,209)		0
Gain on non-marketable equity investment							Gain on non-marketable equity investment	(10,074)		(1,886)

Long-term retirement benefit obligations	(17,648		)	(19,769		)	Long-term retirement benefit obligations	(11,635)		(17,648)

Fair market value adjustment on life insurance products	(2,215		)	(823		)	Fair market value adjustment on life insurance products	(638)		(2,215)
Other-net	(3,350		)	1,183			Other-net	(3,658)		(6,926)
Changes in operating assets and liabilities:							Changes in operating assets and liabilities:
Accounts receivable-net	55,383			27,024			Accounts receivable-net	88,065		55,383
Other assets	(17,401		)	6,226			Other assets	3,816		(17,401)
Accounts payable, accrued payroll and other liabilities	(22,898		)	(28,702		)	Accounts payable, accrued payroll and other liabilities	(23,366)		(22,898)
Unexpired subscriptions	2,704			6,815			Unexpired subscriptions	11,730		2,704
Net cash provided by operating activities	121,600			116,376			Net cash provided by operating activities	206,683		121,600
Cash flows from investing activities							Cash flows from investing activities
Purchases of marketable securities	(466,108		)	(386,842		)	Purchases of marketable securities	(460,117)		(466,108)
Maturities of marketable securities	458,810			346,601			Maturities of marketable securities	331,786		458,810

Business acquisitions							Business acquisitions	(33,085)		0
Proceeds from sale of investments – net							Proceeds from sale of investments – net	1,000		103
Capital expenditures	(33,101		)	(61,983		)	Capital expenditures	(29,236)		(33,101)
Other-net	3,141			(1,585		)	Other-net	2,388		3,038
Net cash used in investing activities	(37,258		)	(103,809		)	Net cash used in investing activities	(187,264)		(37,258)
Cash flows from financing activities							Cash flows from financing activities
Long-term obligations:							Long-term obligations:
Repayment of debt and finance lease obligations	(7,220		)	(414		)	Repayment of debt and finance lease obligations	0		(7,220)
Dividends paid	(23,269		)	(19,761		)	Dividends paid	(28,393)		(23,269)
Payment of contingent consideration							Payment of contingent consideration	(862)		0
Capital shares:							Capital shares:
Proceeds from stock option exercises	2,998			40,650			Proceeds from stock option exercises	5,307		2,998

Share-based compensation tax withholding	(15,648		)	(9,048		)	Share-based compensation tax withholding	(11,723)		(15,648)
Net cash (used in)/provided by financing activities	(43,139		)	11,427
Net increase in cash, cash equivalents and restricted cash	41,203			23,994
Net cash used in financing activities							Net cash used in financing activities	(35,671)		(43,139)
Net (decrease)/increase in cash, cash equivalents and restricted cash							Net (decrease)/increase in cash, cash equivalents and restricted cash	(16,252)		41,203
Effect of exchange rate changes on cash	(202		)	(540		)	Effect of exchange rate changes on cash	349		(202)
Cash, cash equivalents and restricted cash at the beginning of the period	259,799			200,936			Cash, cash equivalents and restricted cash at the beginning of the period	247,518		259,799
Cash, cash equivalents and restricted cash at the end of the period	$	300,800		$	224,390		Cash, cash equivalents and restricted cash at the end of the period	$	231,615	$	300,800

See Notes to Condensed Consolidated Financial Statements.

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1. BASIS OF PRESENTATION

In the opinion of management of The New York Times Company (the “Company”), the Condensed Consolidated Financial Statements present fairly the financial position of the Company as of September ~~29, 2019,~~27, 2020 and December ~~30, 2018,~~29, 2019, and the results of operations, changes in ~~stockholder’s~~stockholders’ equity and cash flows of the Company for the periods ended September ~~29, 2019,~~27, 2020, and September ~~30, 2018.~~29, 2019. The Company and its consolidated subsidiaries are referred to collectively as “we,” “us” or “our.” All adjustments necessary for a fair presentation have been included and are of a normal and recurring nature. All significant intercompany accounts and transactions have been eliminated in consolidation. The financial statements were prepared in accordance with the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain notes or other financial information that are normally required by accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted from these interim financial statements. These financial statements, therefore, should be read in conjunction with the Consolidated Financial Statements and related Notes included in our Annual Report on Form 10-K for the year ended December ~~30, 2018.~~29, 2019. Due to the seasonal nature of our business, operating results for the interim periods are not necessarily indicative of a full year’s operations. The fiscal periods included herein comprise 13 weeks and 39 weeks for the third ~~quarter.~~quarter and nine months, respectively.

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.

Reclassification

The Company changed the expense captions on its Condensed Consolidated Statement of Operations effective for the quarter ended March 29, 2020. These changes were made in order to reflect how the Company manages its business and to communicate where the Company is investing resources and how this aligns with the Company’s strategy. The Company reclassified expenses for the prior period in order to present comparable financial results. There was no change to consolidated operating income, operating expense, net income or cash flows as a result of this change in classification. See Note 15 for more detail.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Except as described herein, as of September ~~29, 2019,~~27, 2020, our significant accounting policies, which are detailed in our Annual Report on Form 10-K for the year ended December ~~30, 2018,~~29, 2019, have not changed materially.

~~Recently Adopted Accounting Pronouncements~~



~~Accounting Standard Update(s)~~	~~Topic~~	~~Effective Period~~	~~Summary~~
2016-02 2018-10 2018-11 ~~2018-20~~ ~~2019-01~~	~~Leases~~	~~Fiscal years beginning after December 30, 2018. Early adoption is permitted.~~	The Financial Accounting Standards Board (the “FASB”) issued authoritative guidance on accounting for leases and disclosure of key information about leasing arrangements. The guidance requires lessees to recognize the following for all operating and finance leases at such lease’s commencement date: (1) a lease liability, which is the obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset representing the lessee’s right to use, or control the use of, the underlying asset for the lease term. A lessee is permitted to make an accounting policy election not to recognize lease assets and lease liabilities for short-term leases with a term of 12 months or less. The guidance does not fundamentally change lessor accounting; however, some changes have been made to align that guidance with the lessee guidance and other areas within GAAP. The Company adopted this Accounting Standard Update (“ASU”) on December 31, 2018, utilizing the modified retrospective approach with optional transition relief. Prior periods have not been retrospectively adjusted and we recorded approximately $36 million of right-of-use asset and $42 million of lease liability in our Condensed Consolidated Balance Sheet. The difference between the right-of-use asset and lease liability was due to deferred rent relating to periods prior to December 31, 2018. We have elected the practical expedients under ASU 2016-02 and have not reassessed any of the following: (1) whether any expired or existing contracts are or contain a lease, (2) the classification of any existing leases prior to the adoption of ASU 2016-02 or (3) initial direct costs for any existing leases. The Company has elected not to apply the recognition requirements in ASU 2016-02 to leases with durations of 12 months or less. Lease payments for leases with durations of 12 months or less are recorded in the statement of operations on a straight-line basis over the term of the lease. In addition, we elected the practical expedient not to separate the lease and non-lease components in the contract for our office space and equipment leases and for office space we lease to third parties.

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Recently ~~Issued and Not Yet~~ Adopted Accounting Pronouncements



Accounting Standard Update(s)			Topic		Effective Period		Summary
2018-15			Intangibles—Goodwill and Other—Internal-Use Software		Fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted.		~~The FASB issued authoritative guidance that clarifies~~ Clarifies the accounting for implementation costs in cloud computing arrangements. The standard provides that implementation costs be evaluated for capitalization using the same criteria as that used for internal-use software development costs, with amortization expense being recorded in the same income statement expense line as the hosted service costs and over the expected term of the hosting arrangement. ~~We do~~The Company adopted this ASU prospectively on December 30, 2019 and will include capitalized implementation costs in Miscellaneous assets in the Company’s Condensed Consolidated Balance Sheet and within Total operating costs in the Condensed Consolidated Statement of Operations. The adoption did not ~~believe the adoption of this guidance will~~ have a material impact on ~~our condensed~~the Company’s consolidated financial statements.
~~2018-14~~2018-13			~~Compensation—Retirement Benefits—Defined Benefit Plans—General~~		~~Fiscal years ending after December 15, 2020. Early adoption is permitted.~~	The FASB issued authoritative guidance that modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement benefit plans. The guidance removes disclosures, clarifies the specific requirements of disclosures and adds disclosure requirements identified as relevant. We are currently in the process of evaluating the impact of this guidance on our disclosures.
~~2018-13~~	Fair Value Measurement (Topic 820) Disclosure Framework	Fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted.		~~The FASB issued authoritative guidance that modifies~~Modifies the disclosure requirements on fair value measurements. The amendments of disclosures related to changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. ~~We are currently in~~The Company adopted this ASU on December 30, 2019. The adoption did not have a material impact on the ~~process of evaluating the impact of this guidance on our~~Company’s disclosures.
2016-13 2018-19 2019-04			Financial Instruments—Credit Losses		Fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years.		~~The FASB issued authoritative guidance that amends~~Amends guidance on reporting credit losses for assets, including trade receivables, available-for-sale marketable securities and any other financial assets not excluded from the scope that have the contractual right to receive cash. For trade receivables, ASU 2016-13 eliminates the probable initial recognition threshold in current generally accepted accounting standards, and, instead, requires an entity to reflect its current estimate of all expected credit losses. ~~The allowance for credit losses is a valuation account that is deducted from the gross trade receivables balance to present the net amount expected to be collected.~~ For available-for-sale marketable securities, credit losses should be measured in a manner similar to current generally accepted accounting standards; however, ASU 2016-13 will require that credit losses be presented as an allowance rather than as a write-down. ~~We are currently in~~The Company adopted this ASU on December 30, 2019 using a modified retrospective approach. The adoption did not have a material impact on the ~~process of evaluating the impact of this guidance on our condensed~~Company’s consolidated financial statements.

Recently Issued Accounting Pronouncements

The Financial Accounting Standards Board (the “FASB”) issued authoritative guidance on the following topics:


Accounting Standard Update(s)	Topic	Effective Period	Summary
2019-12	Simplifying the Accounting for Income Taxes (Topic 740)	Fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. Early adoption is permitted.	Simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in Accounting Standards Codification (“ASC”) 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The standard also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. We do not expect this guidance to have a material impact on our consolidated financial statements.
2018-14	Compensation—Retirement Benefits—Defined Benefit Plans—General	Fiscal years ending after December 15, 2020. Early adoption is permitted.	Modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement benefit plans. The guidance removes disclosures, clarifies the specific requirements of disclosures and adds disclosure requirements identified as relevant. We do not expect this guidance to have a material impact on our consolidated financial statements.

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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

NOTE 3. REVENUE

We generate revenues principally from subscriptions and advertising. Subscription revenues consist of revenues from subscriptions to our ~~print~~digital and ~~digital~~print products (which include our news product, as well as our ~~Crossword~~Games (previously Crossword), Cooking and ~~Cooking~~audio 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 revenues are derived from the sale of our advertising products and services on our print and digital platforms. These revenues are primarily determined by the volume, rate and mix of advertisements. Display advertising revenue is principally from advertisers promoting products, services or ~~brands. Display~~brands on digital platforms in the form of banners 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 ~~also includes~~sales teams. A smaller proportion of our total advertising revenues is generated through programmatic auctions run by third-party ad exchanges and from creative services fees, including those associated with our branded content ~~on The Times’s platforms. Other~~studio. Digital advertising ~~primarily represents, for our print products, classified advertising revenue. Digital other advertising revenue primarily includes~~revenues also include creative services ~~fees; advertising revenue from our podcasts;~~fees and advertising revenue generated by Wirecutter, our product review and recommendation website.

~~THE NEW YORK TIMES COMPANY~~

~~NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

Print advertising includes revenue from column-inch ads and classified advertising, including line-ads as well as preprinted advertising, also known as freestanding inserts.

Other revenues primarily consist of revenues from licensing, ~~commercial printing,~~affiliate referrals from Wirecutter, the leasing of floors in the ~~Company Headquarters, affiliate referrals (revenue generated by offering direct links to merchants in exchange for a portion of the sale price)~~New York headquarters building located at 620 Eighth Avenue, New York, New York (the “Company Headquarters”), commercial printing, television ~~(primarily from our television series, “The Weekly”),~~and film, retail commerce and NYT Live (our live events business) ~~and retail commerce.~~.

Subscription, advertising and other revenues were as follows:


	For the Quarters Ended				For the Nine Months Ended					For the Quarters Ended								For the Nine Months Ended
(In thousands)	September 29, 2019		September 30, 2018		September 29, 2019		September 30, 2018		(In thousands)	September 27, 2020		As % of total		September 29, 2019		As % of total		September 27, 2020		As % of total		September 29, 2019		As % of total
Subscription	$	267,302	$	257,796	$	808,568	$	779,018	Subscription	$	300,950	70.5	%	$	267,302	62.4	%	$	879,573	69.0	%	$	808,568	62.0	%
Advertising	113,531		121,677		359,380		366,525		Advertising	79,253		18.6	%	113,531		26.5	%	253,150		19.9	%	359,380		27.6	%
Other ⁽¹⁾	47,668		37,873		135,873		100,311		Other (1)	46,692		10.9	%	47,668		11.1	%	141,558		11.1	%	135,873		10.4	%
Total	$	428,501	$	417,346	$	1,303,821	$	1,245,854	Total	$	426,895	100.0	%	$	428,501	100.0	%	$	1,274,281	100.0	%	$	1,303,821	100.0	%

⁽¹⁾ Other revenue includes building rental revenue, which is not under the scope of Revenue from Contracts with Customers (Topic 606). Building rental revenue was approximately $8$7 million and $7$8 million for the third quarters of ~~2019~~2020 and ~~2018,~~2019, respectively, and approximately ~~$23~~$22 million and ~~$17~~$23 million for the first nine months of ~~2019~~2020 and ~~2018,~~2019, respectively.

~~The following table summarizes digital-only subscription revenues, which are a component of subscription revenues above, for the third quarters and first nine months of 2019 and 2018:~~

For the Quarters Ended For the Nine Months Ended
(In thousands) September 29, 2019
September 30, 2018
September 29, 2019
September 30, 2018
Digital-only subscription revenues:
News product subscription revenues⁽¹⁾
$ 107,009
$ 95,568
$ 313,785
$ 279,693
Other product subscription revenues⁽²⁾
8,855
5,639
24,573
15,669
Total digital-only subscription revenues $ 115,864
$ 101,207
$ 338,358
$ 295,362
⁽¹⁾Includes revenues from subscriptions to the Company’s news product. News product subscription packages that include access to the Company’s Crossword and Cooking products are also included in this category.
⁽²⁾Includes revenues from standalone subscriptions to the Company’s Crossword and Cooking products.

~~Advertising revenues (print and digital) by category were as follows:~~

For the Quarters Ended
September 29, 2019 September 30, 2018
(In thousands) Print Digital Total Print Digital Total
Advertising revenues:
Display $ 51,702
$ 36,202
$ 87,904
$ 57,245
$ 43,730
$ 100,975
Other 7,176
18,451
25,627
6,676
14,026
20,702
Total advertising $ 58,878
$ 54,653
$ 113,531
$ 63,921
$ 57,756
$ 121,677

For the Nine Months Ended
September 29, 2019 September 30, 2018
(In thousands) Print Digital Total Print Digital Total
Advertising revenues:
Display $ 169,903
$ 121,147
$ 291,050
$ 188,853
$ 123,870
$ 312,723
Other 21,255
47,075
68,330
22,182
31,620
53,802
Total advertising $ 191,158
$ 168,222
$ 359,380
$ 211,035
$ 155,490
$ 366,525

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 third quarters and first nine months ended September 27, 2020, and September 29, 2019:


	For the Quarters Ended				For the Nine Months Ended
(In thousands)	September 27, 2020		September 29, 2019		September 27, 2020		September 29, 2019
Digital-only subscription revenues:
News product subscription revenues(1)	$	140,740	$	107,009	$	392,620	$	313,785
Other product subscription revenues(2)	14,546		8,855		38,660		24,573
Subtotal digital-only subscriptions	155,286		115,864		431,280		338,358
Print subscription revenues:
Domestic home delivery subscription revenues(3)	129,912		126,769		396,620		395,011
Single-copy, NYT International and other subscription revenues(4)	15,752		24,669		51,673		75,199
Subtotal print subscription revenues	145,664		151,438		448,293		470,210
Total subscription revenues	$	300,950	$	267,302	$	879,573	$	808,568
(1) Includes revenues from subscriptions to the Company’s news product. News product subscription packages that include access to the Company’s Games and Cooking products are also included in this category.
(2) Includes revenues from standalone subscriptions to the Company’s Games, Cooking and audio products.
(3) Includes free access to some or all of the Company’s digital products.
(4) NYT International is the international edition of our print newspaper.

The following table summarizes digital and print advertising revenues for the third quarters and first nine months of 2020 and 2019:


	For the Quarters Ended				For the Nine Months Ended
(In thousands)	September 27, 2020		September 29, 2019		September 27, 2020		September 29, 2019
Advertising revenues:
Digital	$	47,763	$	54,653	$	138,452	$	168,222
Print	31,490		58,878		114,698		191,158
Total advertising	$	79,253	$	113,531	$	253,150	$	359,380

Performance Obligations

We have remaining performance obligations related to digital archive and other licensing and certain advertising contracts. As of September ~~29, 2019,~~27, 2020, the aggregate amount of transaction price allocated to the remaining performance obligations for contracts with a duration greater than one year was approximately ~~$95~~$153 million. The Company will recognize this revenue as ~~control of the~~ performance ~~obligation is transferred to the customer.~~obligations are satisfied. We expect that approximately $7$16 million, ~~$25~~$60 million and ~~$63~~$77 million will be recognized in the remainder of ~~2019,~~ 2020, 2021 and thereafter, respectively.

~~These remaining performance obligations exclude contracts that have an original expected duration of one year or less.~~

Contract Assets

As of September ~~29, 2019,~~27, 2020, and December ~~30, 2018,~~29, 2019, the Company had ~~$3.7~~$2.2 million and ~~$2.5~~$3.4 million, respectively, in contract assets recorded in ~~Other current assets~~ in the Condensed Consolidated Balance ~~Sheets.~~Sheets related to digital archiving licensing revenue. The contract asset is reclassified to Accounts receivable when the customer is invoiced based on the contractual billing schedule. The ~~increase~~decrease in the contract assets balance of $1.2 million for the nine months ended September ~~29, 2019,~~27, 2020, is ~~primarily driven by new contract assets of $1.9 million offset by $0.7 million of~~due to consideration that was reclassified to Accounts receivable when invoiced based on the contractual billing schedules for the ~~nine months~~period ended September ~~29, 2019.~~27, 2020.

NOTE 4. MARKETABLE SECURITIES

The Company accounts for its marketable securities as available for sale (“AFS”). The Company recorded ~~$0.9~~$4.7 million and ~~$2.8~~$0.8 million of net unrealized gains ~~and net unrealized losses, respectively,~~ in Accumulated other comprehensive income (“AOCI”) as of September 27, 2020, and December 29, 2019, ~~and December 30, 2018,~~ respectively.

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following tables present the amortized cost, gross unrealized gains and losses, and fair market value of our AFS debt securities as of September ~~29, 2019,~~27, 2020, and December ~~30, 2018:~~29, 2019:


	September 27, 2020
(In thousands)	Amortized Cost		Gross unrealized gains		Gross unrealized losses		Fair Value

Short-term AFS securities
Corporate debt securities	$	119,042	$	561	$	(17)	$	119,586
U.S. Treasury securities	97,712		94		(4)		97,802
U.S. governmental agency securities	47,759		68		(4)		47,823
Commercial paper	43,523		0		0		43,523


Total short-term AFS securities	$	308,036	$	723	$	(25)	$	308,734
Long-term AFS securities
Corporate debt securities	$	118,690	$	1,713	$	(22)	$	120,381
U.S. Treasury securities	88,059		2,343		0		90,402
U.S. governmental agency securities	64,881		89		(104)		64,866
Total long-term AFS securities	$	271,630	$	4,145	$	(126)	$	275,649


	December 29, 2019
(In thousands)	Amortized Cost		Gross unrealized gains		Gross unrealized losses		Fair Value

Short-term AFS securities
Corporate debt securities	$	98,864	$	271	$	(9)	$	99,126
U.S. Treasury securities	43,098		8		(11)		43,095
U.S. governmental agency securities	37,471		35		(4)		37,502
Commercial paper	12,561		0		0		12,561

Certificates of deposit	9,501		0		0		9,501
Total short-term AFS securities	$	201,495	$	314	$	(24)	$	201,785
Long-term AFS securities
Corporate debt securities	$	103,149	$	617	$	(29)	$	103,737
U.S. Treasury securities	101,457		84		(103)		101,438
U.S. governmental agency securities	46,600		5		(84)		46,521
Total long-term AFS securities	$	251,206	$	706	$	(216)	$	251,696

September 29, 2019
(In thousands) Amortized Cost Gross unrealized gains Gross unrealized losses Fair Value
Short-term AFS securities
U.S. Treasury securities $ 123,224
$ 46
$ (47 ) $ 123,223
Corporate debt securities 109,792
263
(36 ) 110,019
Commercial paper 69,298
—
—
69,298
U.S. governmental agency securities 60,515
15
(17 ) 60,513
Certificates of deposit 13,810
—
—
13,810
Total short-term AFS securities $ 376,639
$ 324
$ (100 ) $ 376,863
Long-term AFS securities
Corporate debt securities $ 93,989
$ 696
$ (22 ) $ 94,663
U.S. Treasury securities 71,313
121
(67 ) 71,367
U.S. governmental agency securities 51,258
27
(50 ) 51,235
Total long-term AFS securities $ 216,560
$ 844
$ (139 ) $ 217,265

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

December 30, 2018
(In thousands) Amortized Cost Gross unrealized gains Gross unrealized losses Fair Value
Short-term AFS securities
U.S. Treasury securities $ 107,717
$ —
$ (232 ) $ 107,485
Corporate debt securities 140,631
1
(464 ) 140,168
Commercial paper 8,177
—
—
8,177
U.S. governmental agency securities 92,628
—
(654 ) 91,974
Certificates of deposit 23,497
—
—
23,497
Total short-term AFS securities $ 372,650
$ 1
$ (1,350 ) $ 371,301
Long-term AFS securities
Corporate debt securities $ 130,612
$ 44
$ (1,032 ) $ 129,624
U.S. Treasury securities 47,079
5
(347 ) 46,737
U.S. governmental agency securities 37,362
3
(168 ) 37,197
Total long-term AFS securities $ 215,053
$ 52
$ (1,547 ) $ 213,558

The following tables represent the AFS securities as of September ~~29, 2019,~~27, 2020, and December ~~30, 2018,~~29, 2019, that were in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position:


	September 27, 2020
	Less than 12 Months				12 Months or Greater				Total
(In thousands)	Fair Value		Gross unrealized losses		Fair Value		Gross unrealized losses		Fair Value		Gross unrealized losses

Short-term AFS securities
Corporate debt securities	$	22,174	$	(17)	$	0	$	0	$	22,174	$	(17)
U.S. Treasury securities	43,982		(4)		0		0		43,982		(4)

U.S. governmental agency securities	4,999		(2)		8,748		(2)		13,747		(4)
Total short-term AFS securities	$	71,155	$	(23)	$	8,748	$	(2)	$	79,903	$	(25)
Long-term AFS securities
Corporate debt securities	$	10,466	$	(22)	$	0	$	0	$	10,466	$	(22)

U.S. governmental agency securities	22,146		(104)		0		0		22,146		(104)
Total long-term AFS securities	$	32,612	$	(126)	$	0	$	0	$	32,612	$	(126)

September 29, 2019
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 $ 14,863
$ (7 ) $ 23,113
$ (40 ) $ 37,976
$ (47 )
Corporate debt securities 12,678
(3 ) 36,975
(33 ) 49,653
(36 )
U.S. governmental agency securities 4,998
—
23,188
(17 ) 28,186
(17 )
Total short-term AFS securities $ 32,539
$ (10 ) $ 83,276
$ (90 ) $ 115,815
$ (100 )
Long-term AFS securities
Corporate debt securities $ 11,008
$ (15 ) $ 8,004
$ (7 ) $ 19,012
$ (22 )
U.S. Treasury securities 35,727
(67 ) —
—
35,727
(67 )
U.S. governmental agency securities 41,958
(50 ) —
—
41,958
(50 )
Total long-term AFS securities $ 88,693
$ (132 ) $ 8,004
$ (7 ) $ 96,697
$ (139 )


	December 29, 2019
	Less than 12 Months				12 Months or Greater				Total
(In thousands)	Fair Value		Gross unrealized losses		Fair Value		Gross unrealized losses		Fair Value		Gross unrealized losses

Short-term AFS securities
Corporate debt securities	$	20,975	$	(6)	$	8,251	$	(3)	$	29,226	$	(9)
U.S. Treasury securities	13,296		(3)		11,147		(8)		24,443		(11)
U.S. governmental agency securities	0		0		15,000		(4)		15,000		(4)

Total short-term AFS securities	$	34,271	$	(9)	$	34,398	$	(15)	$	68,669	$	(24)
Long-term AFS securities
Corporate debt securities	$	35,891	$	(25)	$	4,502	$	(4)	$	40,393	$	(29)
U.S. Treasury securities	60,935		(103)		0		0		60,935		(103)
U.S. governmental agency securities	34,167		(84)		0		0		34,167		(84)
Total long-term AFS securities	$	130,993	$	(212)	$	4,502	$	(4)	$	135,495	$	(216)

We assess AFS securities on a quarterly basis or more often if a potential loss-triggering event occurs. For AFS securities in an unrealized loss position, we first assess whether we intend to sell, or if it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For AFS securities that do not meet the aforementioned criteria, we evaluate whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, we consider the extent to which fair value is less than amortized cost, creditworthiness of the security, and adverse conditions specifically related to the security. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

December 30, 2018
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 $ 70,830
$ (31 ) $ 28,207
$ (201 ) $ 99,037
$ (232 )
Corporate debt securities 76,886
(115 ) 61,459
(349 ) 138,345
(464 )
U.S. governmental agency securities 11,664
(4 ) 80,311
(650 ) 91,975
(654 )
Total short-term AFS securities $ 159,380
$ (150 ) $ 169,977
$ (1,200 ) $ 329,357
$ (1,350 )
Long-term AFS securities
Corporate debt securities $ 81,655
$ (570 ) $ 27,265
$ (462 ) $ 108,920
$ (1,032 )
U.S. governmental agency securities 21,579
(36 ) 11,868
(132 ) 33,447
(168 )
U.S. Treasury securities 20,479
(29 ) 23,762
(318 ) 44,241
(347 )
Total long-term AFS securities $ 123,713
$ (635 ) $ 62,895
$ (912 ) $ 186,608
$ (1,547 )

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

As of September ~~29, 2019,~~27, 2020, 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~~As of September ~~29, 2019,~~27, 2020, we have recognized 0 ~~OTTI loss.~~losses or allowance for credit losses related to AFS securities.

As of September ~~29, 2019,~~27, 2020, our short-term and long-term marketable securities had remaining maturities of less than 1 month to 12 months and 13 months to 3436 months, respectively. See Note 98 for more information regarding the fair value of our marketable securities.

NOTE 5. GOODWILL AND INTANGIBLES

During the first quarter of 2020, the Company acquired Listen In Audio, Inc., a company that transforms journalism articles into audio that is made available in a subscription-based product named “Audm,” in an all-cash transaction. We paid $8.6 million (comprised of $8.0 million cash payment and $0.6 million note receivable previously issued by the Company, which was canceled at the close of the transaction) and entered into agreements that will likely require retention payments over the three years following the acquisition. The Company allocated the purchase price for this acquisition based on the valuation of assets acquired and liabilities assumed, resulting in allocations primarily to goodwill of $5.8 million and intangibles of $2.7 million in the second quarter of 2020. The carrying amount of the intangible asset related to this acquisition has been included in Miscellaneous assets in our Condensed Consolidated Balance Sheets. The estimated useful life for this asset is 8 years and it is amortized on a straight-line basis.

During the third quarter of 2020, the Company acquired substantially all the assets and certain liabilities of Serial Productions, LLC (“Serial”). The purchase price includes approximately $25.0 million in cash that was paid at closing on July 29, 2020, and $9.3 million of contingent consideration. The contingent consideration is related to 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 of the contingent consideration liability using a probability-weighted discounted cash flow model. The fair value is based on significant unobservable inputs and therefore represents a Level 3 measurement as defined in Note 8.

The Company allocated the purchase price for this acquisition based on the valuation of assets acquired and liabilities assumed, resulting in allocations primarily to goodwill of $21.5 million and intangibles of $12.9 million as of the date of acquisition. The carrying amount of the intangible assets related to this acquisition has been included in Miscellaneous assets in our Condensed Consolidated Balance Sheets and include an indefinite-lived intangible of $9.0 million. The estimated useful life for the finite asset is 6 years and it is amortized on a straight-line basis.

The changes in the carrying amount of goodwill as of September ~~29, 2019,~~27, 2020, and since December ~~30, 2018,~~29, 2019, were as follows:

(In thousands) Total Company
Balance as of December 30, 2018 $ 140,282
Foreign currency translation (3,026 )
Balance as of September 29, 2019 $ 137,256


(In thousands)	Total Company
Balance as of December 29, 2019	$	138,674
Business acquisitions	27,269
Foreign currency translation	2,757
Balance as of September 27, 2020	$	168,700

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

The aggregate carrying amount of intangible assets of ~~$3.3~~$17.0 million is included in Miscellaneous assets in our Condensed Consolidated Balance Sheets as of September ~~29, 2019.~~27, 2020.

~~THE NEW YORK TIMES COMPANY~~

~~NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

NOTE 6. INVESTMENTS

~~Equity Method Investments~~

Our investments in joint ventures consists of a 40% equity ownership interest in Madison Paper Industries (“Madison”), a partnership that previously operated a supercalendered paper mill in Maine. The Company and UPM-Kymmene Corporation (“UPM”), a Finnish paper manufacturing company, are partners through subsidiary companies in Madison. The Company’s 40% ownership of Madison is through an 80%-owned consolidated subsidiary that owns 50% of Madison. UPM owns 60% of Madison, including a 10% interest through a 20% noncontrolling interest in the consolidated subsidiary of the Company.

In 2016, the paper mill closed. During the fourth quarter of 2018, we received a $12.5 million cash distribution in connection with the pending liquidation of Madison. We received no distributions from Madison during the first nine months of 2019 and 2018, respectively. We expect to receive a final cash distribution in the range of $5 million to $8 million.

As of September 29, 2019, and December 30, 2018, the value of our investments in joint ventures was zero. Our proportionate share of the operating results of our investment for the quarters ended September 29, 2019, and September 30, 2018, was de minimis and was recorded in ~~Loss from joint ventures~~ ~~in our Condensed Consolidated Statements of Operations.~~

Non-Marketable Equity Securities

Our non-marketable equity securities are investments in privately held companies/funds without readily determinable market values. ~~Realized gains~~Gains and losses on non-marketable securities sold or impaired are recognized in Interest ~~expense~~income/(expense) and other, net.

As of September ~~29, 2019,~~27, 2020, and December ~~30, 2018,~~29, 2019, non-marketable equity securities included in Miscellaneous assets in our Condensed Consolidated Balance Sheets had a carrying value of ~~$13.3~~$21.8 million and ~~$13.7~~$13.4 million, respectively. During the first quarter of ~~2019,~~2020, we recorded a ~~gain of $1.9~~$10.1 million ~~from fair value adjustment~~gain related to a non-marketable equity investment transaction. The gain is comprised of $2.5 million realized gain due to the partial sale of ~~one of our investments in~~ ~~Interest expense~~the investment and ~~other, net~~ ~~in our Condensed Consolidated Statements of Operations.~~a $7.6 million unrealized gain due to the

~~NOTE 7. DEBT OBLIGATIONS~~

Our indebtedness consisted of the repurchase option related to the sale-leaseback of a portion of our New York headquarters building located at 620 Eighth Avenue, New York, New York (the “Company Headquarters”). Our total debt and finance lease obligations consisted of the following:

(In thousands) September 29, 2019
December 30, 2018
Option to repurchase ownership interest in headquarters building in 2019:
Principal amount ⁽¹⁾
$ 245,339
$ 250,000
Less unamortized (premium)/discount based on imputed interest rate of 12.0% in 2019 and 13.0% in 2018 (869 ) 3,202
Net option to repurchase ownership interest in headquarters building in 2019 246,208
246,798
Finance lease obligation ⁽²⁾
—
6,832
Total short-term debt and finance lease obligations $ 246,208
$ 253,630

⁽¹⁾ The reduction in principal amount reflects a $4.7 million credit to the repurchase price as the result of a change in the closing date to December 2019. This credit is accounted for as a reduction in interest expense.

⁽²⁾ ~~On August 1, 2019, we purchased the previously leased land at our College Point, N.Y., printing and distribution facility, which resulted in the settlement of our finance lease obligation.~~

~~See Note 9 for more information regarding the fair value of our debt and Note 15 for more information regarding finance lease obligation.~~

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

mark to market of the remaining investment, and is included in Interest income/(expense) and other, net in our Condensed Consolidated Statements of Operations.

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 were $3.9 million and $4.4 million in the third quarters of 2020 and 2019, respectively, and $11.6 million and $13.1 million in the first nine months of 2020 and 2019, respectively,

Interest income/(expense) and other, net

Interest ~~expense~~income/(expense) and other, net, as shown in the accompanying Condensed Consolidated Statements of Operations was as follows:

For the Quarters Ended For the Nine Months Ended
(In thousands) September 29, 2019
September 30, 2018
September 29, 2019
September 30, 2018
Interest expense $ 7,118
$ 7,061
$ 21,314
$ 21,078
Amortization of debt costs and (premium)/discount on debt (1,278 ) 839
(590 ) 2,528
Capitalized interest (7 ) (38 ) (59 ) (412 )
Interest income and other expense, net ⁽¹⁾
(5,078 ) (3,836 ) (17,093 ) (9,755 )
Total interest expense and other, net $ 755
$ 4,026
$ 3,572
$ 13,439


	For the Quarters Ended				For the Nine Months Ended
(In thousands)	September 27, 2020		September 29, 2019		September 27, 2020		September 29, 2019
Interest income and other expense, net (1)	$	3,720	$	5,078	$	20,724	$	17,093
Interest expense	(188)		(7,118)		(569)		(21,314)
Amortization of debt costs and discount on debt	0		1,278		0		590
Capitalized interest	5		7		22		59
Total interest income/(expense) and other, net	$	3,537	$	(755)	$	20,177	$	(3,572)

⁽¹⁾The nine months ended September 27, 2020, include a $10.1 million gain related to a non-marketable equity investment transaction. The nine months ended September 29, 2019, include a fair value adjustment of $1.9 million related to the sale of a non-marketable equity security.

~~Notice~~Restricted Cash

A reconciliation of ~~Intent~~cash, cash equivalents and restricted cash as of September 27, 2020, and December 29, 2019, from the Condensed Consolidated Balance Sheets to ~~Exercise Repurchase Option Under Lease Agreement~~the Condensed Consolidated Statements of Cash Flows is as follows:

~~On January 30, 2018, the Company provided notice to an affiliate of W.P. Carey & Co. LLC~~


(In thousands)	September 27, 2020		December 29, 2019
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents	$	215,763	$	230,431
Restricted cash included within other current assets	550		528
Restricted cash included within miscellaneous assets	15,302		16,559
Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows	$	231,615	$	247,518

Substantially all of the ~~Company’s intention~~amount included in restricted cash is set aside to exercise in the fourth quarter of 2019 its option under the Lease Agreement, dated March 6, 2009, by and between the parties (the “Lease”) to repurchase a portion of the Company’s leasehold condominium interest in the Company Headquarters.

The Company has accounted for the transaction as a financing transaction and accounted for the rental payments as interest expense. The difference between the purchase option price and the net sale proceeds from the transaction is being amortized over the 10-year period of 2009-2019 through interest expense.

The Lease was part of a transaction in 2009 under which the Company sold and simultaneously leased back approximately 750,000 rentable square feet, in the Company Headquarters (the “Condo Interest”). The sale price for the Condo Interest was approximately $225 million. In December 2019, we expect to repurchase the Condo Interest for $245.3 million.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 of 0.20%.

As of September ~~29, 2019,~~27, 2020, there were no outstanding borrowings under the Credit Facility and the Company was ~~not aware of any instances of non-compliance~~in compliance with the financial covenants contained in the documents governing the Credit Facility.

~~NOTE 8. OTHER~~

~~Capitalized Computer Software~~Severance Costs

~~Amortization~~We recognized 0 severance costs in the third quarter of ~~capitalized computer software~~2020 and $0.3 million in severance costs ~~included~~in the third quarter of 2019, and $6.7 million and $2.4 million in the first nine months of 2020 and 2019, respectively. Severance costs recognized in 2020 were largely related to workforce reductions primarily affecting our advertising department. These costs are recorded in ~~Depreciation~~General and ~~amortization~~administrative costs in our Condensed Consolidated Statements of ~~Operations were $4.4 million and $4.1 million in the third quarters of 2019 and 2018, respectively, and $13.1 million and $11.4 million in the first nine months of 2019 and 2018, respectively.~~Operations.

~~Headquarters Redesign and Consolidation~~

In 2017 and 2018, we redesigned our Company Headquarters, consolidated our space within a smaller number of floors and leased the additional floors to third parties. As the project was substantially completed as of December 30, 2018, we did not incur significant expenses related to these measures in the third quarter and in the first nine months of 2019. We did not incur significant expenses in the third quarter of 2018 and incurred $3.1 million of total expenses in the first nine months of 2018 related to these measures. We capitalized a de minimis amount and approximately $3 million in the third quarters of 2019 and 2018, respectively, and less than $1 million and $14 million in the first nine months of 2019 and 2018, related to these measures.

~~Marketing Expenses~~

Marketing expense to promote our brand and products and grow our subscriber base was $38.4 million and $40.4 million in the third quarters of 2019 and 2018, respectively, and $122.5 million and $107.6 million in the first nine months of 2019 and 2018, respectively.

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

~~Restricted Cash~~

A reconciliation of cash, cash equivalents and restricted cash as of September 29, 2019, and December 30, 2018, from the Condensed Consolidated Balance Sheets to the Condensed Consolidated Statements of Cash Flows is as follows:

(In thousands) September 29, 2019
December 30, 2018
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents $ 283,795
$ 241,504
Restricted cash included within other current assets 613
642
Restricted cash included within miscellaneous assets 16,392
17,653
Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows $ 300,800
$ 259,799

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

~~Restructuring Charge~~

We recognized a restructuring charge of $4.0 million in the third quarter of 2019, which included impairment and severance charges related to the closure of our digital marketing agency, HelloSociety, LLC. These costs are recorded in ~~Restructuring charge~~ ~~in our Condensed Consolidated Statements of Operations.~~

~~Severance Costs~~

We recognized severance costs of $0.3 million in each of the third quarters of 2019 and 2018, and $2.4 million and $4.9 million in the first nine months of 2019 and 2018, respectively, related to workforce reductions. These costs are recorded in ~~Selling, general and administrative costs~~ ~~in our Condensed Consolidated Statements of Operations.~~

We had a severance liability of ~~$8.1~~$10.2 million and ~~$8.3~~$8.4 million included in Accrued expenses and other in our Condensed Consolidated Balance Sheets as of September 27, 2020, and December 29, 2019, ~~and December 30, 2018,~~ respectively. ~~The September 29, 2019 balance includes severance liabilities related to the restructuring charge recorded in our Condensed Consolidated Statements of Operations.~~ We anticipate most of the payments will be made within the next twelve months.

NOTE 9.8. FAIR VALUE MEASUREMENTS

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

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

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

Level 3–unobservable inputs for the asset or liability.

~~THE NEW YORK TIMES COMPANY~~

~~NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

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

The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of September ~~29, 2019,~~27, 2020, and December ~~30, 2018:~~29, 2019:

(In thousands) September 29, 2019 December 30, 2018
Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3
Assets:
Short-term AFS securities ⁽¹⁾

U.S. Treasury securities $ 123,223
$ —
$ 123,223
$ —
$ 107,485
$ —
$ 107,485
$ —
Corporate debt securities 110,019
—
110,019
—
140,168
—
140,168
—
Commercial paper 69,298
—
69,298
—
8,177
—
8,177
—
U.S. governmental agency securities 60,513
—
60,513
—
91,974
—
91,974
—
Certificates of deposit 13,810
—
13,810
—
23,497
—
23,497
—
Total short-term AFS securities $ 376,863
$ —
$ 376,863
$ —
$ 371,301
$ —
$ 371,301
$ —
Long-term AFS securities ⁽¹⁾

Corporate debt securities $ 94,663
$ —
$ 94,663
$ —
$ 129,624
$ —
$ 129,624
$ —
U.S. Treasury securities 71,367
—
71,367
—
46,737
—
46,737
—
U.S. governmental agency securities 51,235
—
51,235
—
37,197
—
37,197
—
Total long-term AFS securities $ 217,265
$ —
$ 217,265
$ —
$ 213,558
$ —
$ 213,558
$ —
Liabilities:
Deferred compensation ⁽²⁾⁽³⁾
$ 22,326
$ 22,326
$ —
$ —
$ 23,211
$ 23,211
$ —
$ —


(In thousands)	September 27, 2020								December 29, 2019
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:
Short-term AFS securities (1)
Corporate debt securities	$	119,586	$	0	$	119,586	$	0	$	99,126	$	0	$	99,126	$	0
U.S. Treasury securities	97,802		0		97,802		0		43,095		0		43,095		0
U.S. governmental agency securities	47,823		0		47,823		0		37,502		0		37,502		0
Commercial paper	43,523		0		43,523		0		12,561		0		12,561		0
Certificates of deposit	0		0		0		0		9,501		0		9,501		0
Total short-term AFS securities	$	308,734	$	0	$	308,734	$	0	$	201,785	$	0	$	201,785	$	0
Long-term AFS securities (1)
Corporate debt securities	$	120,381	$	0	$	120,381	$	0	$	103,737	$	0	$	103,737	$	0
U.S. Treasury securities	90,402		0		90,402		0		101,438		0		101,438		0
U.S. governmental agency securities	64,866		0		64,866		0		46,521		0		46,521		0
Total long-term AFS securities	$	275,649	$	0	$	275,649	$	0	$	251,696	$	0	$	251,696	$	0
Liabilities:
Deferred compensation (2)(3)	$	19,797	$	19,797	$	0	$	0	$	23,702	$	23,702	$	0	$	0
Contingent consideration(4)	$	8,431	$	0	$	0	$	8,431	$	0	$	0	$	0	$	0

⁽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 ~~assets~~liability in life insurance products. Our investments in life insurance products are included in Miscellaneous assets in our Condensed Consolidated Balance Sheets, and were ~~$43.4~~$46.8 million as of September ~~29, 2019,~~27, 2020, and ~~$38.1~~$46.0 million as of December ~~30, 2018.~~29, 2019. 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.

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

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(4) The ~~carrying value of our debt was approximately $246 million as of September 29, 2019, and approximately $247 million as of December 30, 2018.~~contingent consideration represents contingent payments in connection with the Serial acquisition. The ~~fair value of our debt was approximately $246 million and $260 million as of September 29, 2019, and December 30, 2018, respectively. We estimate~~Company estimated the fair value of ~~our debt utilizing market quotations for debt that have quoted prices in active markets. Since our debt does not trade on~~the contingent consideration liability using a ~~daily basis in an active market,~~probability-weighted discounted cash flow model. The estimate of the fair value ~~estimates are based on market observable inputs based on borrowing rates currently available~~of contingent consideration requires subjective assumptions to be made regarding probabilities assigned to operational targets and the discount rate. During the three months ended September 27, 2020, the Company made payments of $0.9 million related to the contingent consideration. The remaining balance of $8.4 million is included in Accrued expenses and other, for ~~debt with similar terms~~the current portion of the liability, and ~~average maturities (Level 2).~~Other non-current liabilities, for the long-term portion of the liability, in our Condensed Consolidated Balance Sheets. See Note 5 for more information.

NOTE ~~10.~~9. PENSION AND OTHER POSTRETIREMENT BENEFITS

Pension

Single-Employer Plans

We historically sponsored several frozen single-employer defined benefit pension plans. Effective January 1, 2018, the Company became the sole sponsor of the frozen Newspaper Guild of New York - The New York Times Pension Plan (the “Guild-Times Plan”). Previously, the NewsGuild of New York (the “Guild”) and the Company were joint trustees of The Guild-

~~THE NEW YORK TIMES COMPANY~~

~~NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

~~Times Plan. Effective December 31, 2018, the Guild-Times Plan and the Retirement Annuity Plan For Craft Employees of The New York Times Companies (the “RAP”) were merged into~~maintain The New York Times Companies Pension ~~Plan.~~

Plan (the “Pension Plan”), a frozen single-employer defined benefit pension plan. The Company ~~and the Guild~~also jointly ~~sponsor~~sponsors a defined benefit plan with The NewsGuild of New York known as the Guild-Times Adjustable Pension Plan (the “APP”)~~, which~~ 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~~cost/(income) were as follows:

For the Quarters Ended
September 29, 2019 September 30, 2018
(In thousands) Qualified
Plans Non-
Qualified
Plans All
Plans Qualified
Plans Non-
Qualified
Plans All
Plans
Service cost $ 1,278
$ —
$ 1,278
$ 2,393
$ —
$ 2,393
Interest cost 14,708
2,089
16,797
13,207
1,848
15,055
Expected return on plan assets (20,258 ) —
(20,258 ) (20,591 ) —
(20,591 )
Amortization of actuarial loss 4,635
1,094
5,729
6,680
1,294
7,974
Amortization of prior service credit (487 ) —
(487 ) (487 ) —
(487 )
Other —
—
—
—
421
421
Net periodic pension (income)/cost ⁽¹⁾
$ (124 ) $ 3,183
$ 3,059
$ 1,202
$ 3,563
$ 4,765


	For the Quarters Ended
	September 27, 2020						September 29, 2019
(In thousands)	Qualified Plans		Non- Qualified Plans		All Plans		Qualified Plans		Non- Qualified Plans		All Plans
Service cost	$	2,608	$	0	$	2,608	$	1,278	$	0	$	1,278
Interest cost	11,742		1,648		13,390		14,708		2,089		16,797
Expected return on plan assets	(17,741)		0		(17,741)		(20,258)		0		(20,258)
Amortization of actuarial loss	5,655		1,521		7,176		4,635		1,094		5,729
Amortization of prior service credit	(486)		0		(486)		(487)		0		(487)

Net periodic pension cost/(income) (1)	$	1,778	$	3,169	$	4,947	$	(124)	$	3,183	$	3,059


	For the Nine Months Ended																	For the Nine Months Ended
	September 29, 2019								September 30, 2018									September 27, 2020						September 29, 2019
(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	$	3,835		$	—	$	3,835		$	7,593		$	—	$	7,593		Service cost	$	7,822	$	0	$	7,822	$	3,835	$	0	$	3,835
Interest cost	44,125			6,265		50,390			39,564			5,543		45,107			Interest cost	35,226		4,945		40,171		44,125		6,265		50,390
Expected return on plan assets	(60,775		)	—		(60,775		)	(61,736		)	—		(61,736		)	Expected return on plan assets	(53,222)		0		(53,222)		(60,775)		0		(60,775)
Amortization of actuarial loss	13,905			3,282		17,187			20,122			3,882		24,004			Amortization of actuarial loss	16,966		4,564		21,530		13,905		3,282		17,187
Amortization of prior service credit	(1,459		)	—		(1,459		)	(1,459		)	—		(1,459		)	Amortization of prior service credit	(1,459)		0		(1,459)		(1,459)		0		(1,459)
Other	—			—		—			—			421		421
Net periodic pension (income)/cost ⁽¹⁾	$	(369	)	$	9,547	$	9,178		$	4,084		$	9,846	$	13,930

Net periodic pension cost/(income) (1)																	Net periodic pension cost/(income) (1)	$	5,333	$	9,509	$	14,842	$	(369)	$	9,547	$	9,178

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

During the first nine months of ~~2019~~2020 and ~~2018,~~2019, we made pension contributions of ~~$6.3~~$6.9 million and ~~$6.2~~$6.3 million, respectively, to the APP. We expect contributions in ~~2019~~2020 to total approximately $9 million to satisfy funding requirements.

~~Multiemployer Plans~~

~~During~~As part of our continued effort to reduce the ~~third quarter~~size and volatility of ~~2019~~our pension plan obligations, and ~~2018~~the administrative costs related thereto, in October 2020 we ~~recorded a gain of $2.0~~entered into an agreement with an insurance company to transfer approximately $235 million ~~and $4.9 million, respectively, from multiemployer~~in pension ~~liability adjustments, which were recorded in~~ ~~Gain from pension liability adjustment~~ ~~in our Condensed Consolidated Statements of Operations.~~obligations under the Pension Plan. See Note 16 for more information.

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Multiemployer Plans

During the third quarter of 2019 we recorded a gain of $2.0 million from a multiemployer pension liability adjustment, which was recorded in Gain from pension liability adjustment in our Condensed Consolidated Statements of Operations.

Other Postretirement Benefits

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

For the Quarters Ended For the Nine Months Ended
(In thousands) September 29, 2019
September 30, 2018
September 29, 2019
September 30, 2018
Service cost $ 6
$ 8
$ 20
$ 18
Interest cost 402
370
1,202
1,108
Amortization of actuarial loss 843
1,183
2,531
3,551
Amortization of prior service credit (1,192 ) (1,590 ) (3,574 ) (4,772 )
Net periodic postretirement benefit cost/(income) ⁽¹⁾
$ 59
$ (29 ) $ 179
$ (95 )


	For the Quarters Ended				For the Nine Months Ended
(In thousands)	September 27, 2020		September 29, 2019		September 27, 2020		September 29, 2019
Service cost	$	7	$	6	$	21	$	20
Interest cost	257		402		770		1,202
Amortization of actuarial loss	763		843		2,289		2,531
Amortization of prior service credit	(1,099)		(1,192)		(3,378)		(3,574)
Net periodic postretirement benefit (income)/cost (1)	$	(72)	$	59	$	(298)	$	179

⁽¹⁾ The service cost component of net periodic postretirement benefit 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.

NOTE ~~11.~~10. INCOME TAXES

The Company had income tax expense of $7.3 million and $19.1 million in the third quarter and first nine months of 2020, respectively. The Company had income tax expense of $6.1 million and $16.8 million in the third quarter and first nine months of 2019, respectively. The ~~Company had income~~Company’s effective tax ~~expense of $10.1 million~~rates from continuing operations were 17.8% and ~~$25.3 million in~~17.5% for the third quarter and first nine months of ~~2018,~~2020, respectively. The Company’s effective tax rates from continuing operations were 27.0% and 19.0% for the third quarter and first nine months of 2019, respectively. The Company received a tax benefit in the first and third quarters of 2020 and in the first quarter of 2019 from stock price appreciation on stock-based awards that settled in the ~~quarter,~~quarters, resulting in a lower than statutory tax ~~rate for~~rates in the third quarter of 2020 and in the first nine months of 2020 and 2019. ~~The~~

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") was signed into law. We do not expect the tax provisions in the CARES Act to have a material impact on the Company’s ~~effective tax rates from continuing operations were 28.8% and 26.4% for the third quarter and first nine months of 2018, respectively.~~consolidated financial statements.

NOTE ~~12.~~11. EARNINGS PER SHARE

We compute earnings per share using a two-class method, which 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 of approximately ~~1.4~~1.0 million and ~~1.9~~1.1 million ~~as of~~in the third ~~quarters~~quarter and first nine months of ~~2019~~2020, respectively and ~~2018, respectively,~~1.4 million in the third quarter and first nine months of 2019, resulted primarily from the dilutive effect of certain stock options, performance awards and restricted stock ~~units and performance awards.~~units.

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 no0 anti-dilutive stock options, stock-settled long-term performance awards or restricted stock units excluded from the computation of diluted earnings per share in the third quarters and first nine months of ~~2019~~2020 and ~~2018,~~2019, respectively.

NOTE ~~13.~~12. SUPPLEMENTAL STOCKHOLDERS’ EQUITY INFORMATION

In 2015, the Board of Directors authorized up to $101.1 million of repurchases of shares of the Company’s Class A Common Stock. As of September ~~29, 2019,~~27, 2020, repurchases under this authorization totaled $84.9 million (excluding commissions)

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

and $16.2 million remained under this authorization. The Company did not repurchase any shares during the first nine months of ~~2019.~~2020. All purchases were made pursuant to our publicly announced share repurchase program. Our Board of Directors has authorized us to purchase shares under this authorization from time to time, subject to market conditions and other factors. There is no expiration date with respect to this authorization.

~~THE NEW YORK TIMES COMPANY~~

~~NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

The following table summarizes the changes in AOCI by component as of September ~~29, 2019:~~

(In thousands) Foreign Currency Translation Adjustments Funded Status of Benefit Plans Net Unrealized (Loss)/Gain on Available-For-Sale Securities Total Accumulated Other Comprehensive Loss
Balance as of December 30, 2018 $ 4,677
$ (520,308 ) $ (2,093 ) $ (517,724 )
Other comprehensive (loss)/income before reclassifications, before tax (3,286 ) —
3,773
487
Amounts reclassified from accumulated other comprehensive loss, before tax —
14,685
—
14,685
Income tax (benefit)/expense (863 ) 3,780
986
3,903
Net current-period other comprehensive (loss)/income, net of tax (2,423 ) 10,905
2,787
11,269
Balance as of September 29, 2019 $ 2,254
$ (509,403 ) $ 694
$ (506,455 )

27, 2020:


(In thousands)	Foreign Currency Translation Adjustments		Funded Status of Benefit Plans		Net Unrealized Gain on Available-For-Sale Securities		Total Accumulated Other Comprehensive Loss
Balance as of December 29, 2019	$	3,438	$	(498,986)	$	572	$	(494,976)
Other comprehensive income before reclassifications, before tax	3,095		0		3,936		7,031
Amounts reclassified from accumulated other comprehensive loss, before tax	0		18,982		0		18,982
Income tax expense	823		5,083		1,049		6,955
Net current-period other comprehensive income, net of tax	2,272		13,899		2,887		19,058

Balance as of September 27, 2020	$	5,710	$	(485,087)	$	3,459	$	(475,918)

The following table summarizes the reclassifications from AOCI for the nine months ended September ~~29, 2019:~~

27, 2020:

(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⁾
$ (5,033 ) Other components of net periodic benefit costs
Amortization of actuarial loss⁽¹⁾
19,718
Other components of net periodic benefit costs
Total reclassification, before tax⁽²⁾
14,685

Income tax expense 3,780
Income tax expense
Total reclassification, net of tax $ 10,905

(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)

(4,837)

Other components of net periodic benefit costs

Amortization of actuarial loss(1)

23,819

Other components of net periodic benefit costs

Total reclassification, before tax(2)

18,982

Income tax expense

5,083

Income tax expense

Total reclassification, net of tax

13,899

⁽¹⁾ These AOCI components are included in the computation of net periodic benefit cost for pension and other postretirement benefits. See Note 109 for more information.

⁽²⁾ There were no reclassifications relating to noncontrolling interest for the nine months ended September ~~29, 2019.~~27, 2020.

NOTE ~~14.~~13. SEGMENT INFORMATION

The Company identifies a business as an operating segment if: (i) it engages in business activities from which it may earn revenues and incur expenses; (ii) its operating results are regularly reviewed by the Chief Operating Decision Maker (who is the Company’s President and Chief Executive Officer) to make decisions about resources to be allocated to the segment and assess its performance; and (iii) it has available discrete financial information. The Company has determined that it has 1 reportable segment. Therefore, all required segment information can be found in the Condensed Consolidated Financial Statements.

~~NOTE 15. LEASES~~

~~Lessee activities~~

~~Operating leases~~

We have operating leases for office space and equipment. We determine if an arrangement is a lease at inception. Certain office space leases provide for rent adjustments relating to changes in real estate taxes and other operating costs. Options to extend the term of operating leases are not recognized as part of the right-of-use asset until we are reasonably certain that the option will be exercised. We may terminate our leases with the notice required under the lease and upon the payment of a termination fee, if required. Our leases do not include substantial variable payments based on index or rate. After the adoption of ASU 2016-02 in 2019, for all leases, a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, are recognized in the Condensed Consolidated Balance Sheet as of September 29, 2019, as described below.

Our leases do not provide a readily determinable implicit discount rate. Therefore, we estimate our incremental borrowing rate to discount the lease payments based on the information available at lease commencement.

~~THE NEW YORK TIMES COMPANY~~

~~NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

We recognize a single lease cost on a straight-line basis over the term of the lease and we classify all cash payments within operating activities in the statement of cash flows. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

~~We evaluate right-of-use assets for impairment consistent with our property, plant and equipment policy disclosure included in our Annual Report on Form 10-K for the year ended December 30, 2018.~~

On July 2, 2019, we entered into a lease agreement for office space in Long Island City, N.Y. (the “LIC Lease”), which commenced in July and ends in 2035. The present value of lease liabilities associated with the LIC Lease at the commencement date was $22 million.

~~The table below presents the lease-related assets and liabilities recorded on the balance sheet:~~

(In thousands) Classification in the Condensed Consolidated Balance Sheet September 29, 2019
Operating lease right-of-use assets Miscellaneous assets $ 54,909
Current operating lease liabilities Accrued expenses and other $ 7,733
Noncurrent operating lease liabilities Other 56,156
Total operating lease liabilities $ 63,889

~~The total lease cost for operating leases included in~~ ~~Selling, general and administrative costs~~ ~~in our Condensed Consolidated Statement of Operations was as follows:~~

For the Quarter Ended
For the Nine Months Ended
(In thousands) September 29, 2019
Operating lease cost $ 2,763
$ 7,310
Short term and variable lease cost 442
1,454
Total lease cost $ 3,205
$ 8,764

~~The table below presents additional information regarding operating leases:~~

(In thousands, except lease term and discount rate) September 29, 2019
Cash paid for amounts included in the measurement of operating lease liabilities $ 6,818
Right-of-use assets obtained in exchange for operating lease liabilities⁽¹⁾
$ 60,988
Weighted-average remaining lease term 9.9 years
Weighted-average discount rate 4.65 %

⁽¹⁾ ~~Amounts for the nine months ended September 29, 2019, include the transition adjustment resulting from the adoption of ASU 2016-02 as discussed in Note 2.~~

~~Maturities of lease liabilities on an annual basis for the Company's operating leases as of September 29, 2019, were as follows:~~

(In thousands) Amount
2019 (3 months ending December 29, 2019) $ 2,284
2020 9,808
2021 9,026
2022 8,577
2023 7,970
Later Years 41,899
Total lease payments $ 79,564
Less: Interest (15,675 )
Present value of lease liabilities $ 63,889

~~THE NEW YORK TIMES COMPANY~~

~~NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

~~Finance lease~~

~~We had a finance lease in connection with the land at our College Point, N.Y., printing and distribution facility. Interest on the lease liability was recorded in~~ ~~Interest expense and other, net~~ in our Condensed Consolidated Statement of Operations. Repayments of the principal portion of our lease liability are recorded in financing activities and payments of interest on our lease liability are recorded in operating activities in the statement of cash flows for our finance lease. On August 1, 2019, using existing cash, we purchased the assets under the finance lease for $6.9 million, ~~which resulted in the settlement of our finance lease obligation. See Note 7 for more information.~~

~~Lessor activities~~

Our leases to third parties predominantly relate to office space in the Company Headquarters. We determine if an arrangement is a lease at inception. Office space leases are operating leases and generally include options to extend the term of the lease. Our leases do not include variable payments based on index or rate. We do not separate the lease and non-lease components in a contract. The non-lease components predominantly include charges for utilities usage and other operating expenses estimated based on the proportionate share of the rental space of each lease.

For our office space operating leases, we recognize rental revenue on a straight-line basis over the term of the lease and we classify all cash payments within operating activities in the statement of cash flows.

Residual value risk is not a primary risk resulting from our office space operating leases because of the long-lived nature of the underlying real estate assets which generally hold their value or appreciate in the long term.

We evaluate assets leased to third parties for impairment consistent with our property, plant and equipment policy disclosure included in our Annual Report on Form 10-K for the year ended December 30, 2018.

~~As of September 29, 2019, the cost and accumulated depreciation related to the Company Headquarters included in~~ ~~Property, plant and equipment~~ in our Condensed Consolidated Balance Sheet was approximately $508 million and $200 million, respectively. Office space leased to third parties represents approximately 39% of rentable square feet of the Company Headquarters.

~~We generate building rental revenue from the floors in the Company Headquarters that we lease to third parties. The building rental revenue was as follows:~~

For the Quarter Ended
For the Nine Months Ended
(In thousands) September 29, 2019
Building rental revenue ⁽¹⁾
$ 7,887
$ 22,962

⁽¹⁾ ~~Building rental revenue includes approximately $3.0 million and $8.8 million of sublease income for the quarter and nine months ended September 29, 2019, respectively.~~

~~Maturities of lease payments to be received on an annual basis for the Company's office space operating leases as of September 29, 2019, were as follows:~~

(In thousands) Amount
2019 (3 months ending December 29, 2019) $ 7,590
2020 32,242
2021 32,259
2022 32,254
2023 19,329
Later Years 142,162
Total building rental revenue from operating leases $ 265,836

NOTE ~~16.~~14. CONTINGENT LIABILITIES

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

In September 2013, the Newspaper and Mail Deliverers-Publishers’ Pension Fund (the “NMDU Fund”) assessed a partial withdrawal liability against the Company in the gross amount of approximately $26 million for the plan years ending May 31, 2012, and 2013 (the “Initial Assessment”), an amount that was increased to a gross amount of approximately $34 million in December 2014, when the NMDU Fund issued a revised partial withdrawal liability assessment for the plan year ending May

~~THE NEW YORK TIMES COMPANY~~

~~NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

31, 2013 (the “Revised Assessment”). The NMDU Fund claimed that when City & Suburban Delivery Systems, Inc., a retail and newsstand distribution subsidiary of the Company and the largest contributor to the NMDU Fund, ceased operations in 2009, it triggered a decline of more than 70% in contribution base units in each of these two plan years.

The Company disagreed with both the NMDU Fund’s determination that a partial withdrawal occurred and the methodology by which it calculated the withdrawal liability, and the parties engaged in arbitration proceedings to resolve the matter. In June 2016, the arbitrator issued an interim award and opinion that supported the NMDU Fund’s determination that a partial withdrawal had occurred, and concluded that the methodology used to calculate the Initial Assessment was correct. However, the arbitrator also concluded that the NMDU Fund’s calculation of the Revised Assessment was incorrect. In July 2017, the arbitrator issued a final award and opinion reflecting the same conclusions, which both the Company and NMDU Fund challenged in federal district court. In March 2018, the court determined that a partial withdrawal had occurred, but supported the Company’s position that the NMDU Fund’s calculation of the withdrawal liability was improper. The Company appealed the court’s decision with respect to the determination that a partial withdrawal had occurred, and the NMDU Fund appealed the court’s decision with respect to the calculation of the withdrawal liability. Oral arguments were held in May 2019.

Due to requirements of the Employee Retirement Income Security Act of 1974 that sponsors make payments demanded by plans during arbitration and any resultant appeals, the Company had been making payments to the NMDU fund since September 2013 based on the NMDU Fund’s demand. As a result, through September 29, 2019, we have paid $21.6 million relating to the Initial Assessment since the receipt of the initial demand letter. We also paid $5.0 million related to the Revised Assessment, which was refunded in July 2016 based on the arbitrator’s ruling.

On September 16, 2019, the Company and the NMDU Fund reached an agreement to settle this matter. As a result of the settlement, the Company recognized a gain of approximately $2.0 million, and as of September 29, 2019, the Company had no contingent liability related to this matter. In addition, each party withdrew its appeal of the March 2018 court decision.

~~Other~~Legal Proceedings

We are involved in various legal actions incidental to our business that are now pending against us. These actions are generally for amounts greatly in excess of the payments, if any, that may be required to be made. 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.

~~Letters~~

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 15. RECLASSIFICATION

The Company changed the expense captions on its Condensed Consolidated Statement of ~~Credit Commitment~~Operations effective for the quarter ended March 29, 2020. These changes were made in order to reflect how the Company manages its business and to communicate where the Company is investing resources and how this aligns with the Company’s strategy. The Company reclassified expenses for the prior period in order to present comparable financial results. There was no change to consolidated operating income, operating expense, net income or cash flows as a result of this change in classification. A summary of changes is as follows:

We“Production costs” has become “Cost of revenue”:

◦Cost of revenue contains all costs related to content creation, subscriber and advertiser servicing, and print production and distribution costs 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 our platforms. This represents a change from previously disclosed production costs, which did not include distribution or subscriber servicing costs. In addition, certain product development costs previously included in production costs have ~~issued letters~~been reclassified to product development.

“Selling, general and administrative” hasbeen split into three lines:

◦Sales and marketing represents all costs related to the Company’s marketing efforts as well as advertising sales costs.

◦Product development represents the Company’s investment into developing and enhancing new and existing product technology including engineering, product development, and data insights.

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

In addition, incentive compensation, which was previously wholly included in selling, general and administrative, was reclassified to align with the classification of ~~credit totaling $42.4 million~~the related wages across each of the expense captions.

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

A reconciliation of the expenses as previously disclosed to the recast presentation for the quarter and ~~$48.8 million~~ a~~s of~~nine months ended September 29, 2019, ~~and December 30, 2018, respectively, in connection~~is as follows:


	As Reported for the Quarter Ended September 29, 2019		Reclassification			Recast for the Quarter Ended September 29, 2019
Operating costs
Production costs:
Wages and benefits	$	106,377	$	(106,377)	(1)(2)	$	0
Raw materials	18,531		(18,531)		(1)	0
Other production costs	53,868		(53,868)		(1)(2)	0
Total production costs	178,776		(178,776)		(1)(2)	0
Cost of revenue (excluding depreciation and amortization)	0		245,100		(1)(3)(4)	245,100
Selling, general and administrative costs	207,226		(207,226)		(3)(4)(5)	0
Sales and marketing	0		64,218		(4)(5)	64,218
Product development	0		26,669		(2)(4)(5)	26,669
General and administrative	0		50,015		(4)(5)	50,015
Depreciation and amortization	15,450		0			15,450
Total operating costs	$	401,452	$	0		$	401,452


	As Reported for the Nine Months Ended September 29, 2019		Reclassification			Recast for the Nine Months Ended September 29, 2019
Operating costs
Production costs:
Wages and benefits	$	313,244	$	(313,244)	(1)(2)	$	0
Raw materials	57,527		(57,527)		(1)	0
Other production costs	149,102		(149,102)		(1)(2)	0
Total production costs	519,873		(519,873)		(1)(2)	0
Cost of revenue (excluding depreciation and amortization)	0		729,654		(1)(3)(4)	729,654
Selling, general and administrative costs	638,820		(638,820)		(3)(4)(5)	0
Sales and marketing	0		201,327		(4)(5)	201,327
Product development	0		75,658		(2)(4)(5)	75,658
General and administrative	0		152,054		(4)(5)	152,054
Depreciation and amortization	45,548		0			45,548
Total operating costs	$	1,204,241	$	0		$	1,204,241

(1) In the first quarter of 2020, the Company discontinued the use of the production cost caption. These costs, with the ~~leasing~~exception of ~~floors~~product engineering and product design costs, which were reclassified to product development, were reclassified to cost of revenue.

(2) Costs related to developing and enhancing new and existing product technology previously included in production costs were reclassified to product development.

(3) Distribution and fulfillment costs and subscriber and advertising servicing related costs previously included in selling, general and administrative were reclassified to cost of revenue.

(4) Incentive Compensation previously included in selling, general and administrative was reclassified to align with the related salaries in each caption.

(5) In the first quarter of 2020, the Company discontinued the use of the selling, general and administrative cost caption. These costs, with the exception of those related to distribution and fulfillment, subscriber and advertising servicing and incentive compensation related to cost of revenue, were reclassified to the new captions: sales and marketing, product development and general and administrative.

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 16. SUBSEQUENT EVENT

On October 9, 2020, the Company entered into an agreement with Massachusetts Mutual Life Insurance Company (“MassMutual”) under which approximately $235 million in pension obligations under The New York Times Companies Pension Plan will be transferred to MassMutual.

Under the agreement, the Company will purchase from MassMutual a group annuity contract for approximately 1,850 retirees (and beneficiaries) that will provide for an irrevocable commitment by MassMutual to make annuity payments to the affected retirees. As a result, the payment obligation and administration thereof for the affected retirees will be transferred from the Pension Plan to MassMutual. The transfer will not change the amount of the monthly pension benefits received by the affected retirees.

This arrangement is part of the Company’s continued effort to reduce the overall size and volatility of our pension plan obligations, and the administrative costs related thereto. The purchase of the group annuity contract will be funded through existing Pension Plan assets. As a result of the transaction, the Company expects to recognize a non-cash pension settlement charge of approximately $80-85 million before tax in the ~~Company Headquarters. We expect~~fourth quarter of 2020. This charge represents the ~~letters~~acceleration of ~~credit to expire subsequent to the repurchase of the Condo Interest~~deferred charges currently accrued in December 2019. Approximately $47 million and $54 million of marketable securities were designated as collateral for the letters of credit, as of September 29, 2019, and December 30, 2018, respectively.AOCI.

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

EXECUTIVE OVERVIEW

We are a global media organization that includes our newspaper, ~~print~~digital and ~~digital~~print products and related businesses. We have one reportable segment.

We generate revenues principally from subscriptions and advertising. Other revenues primarily consist of revenues from licensing, ~~commercial printing,~~affiliate referrals from Wirecutter, the leasing of floors in ~~the Company Headquarters, affiliate referrals,~~our New York headquarters building located at 620 Eighth Avenue, New York, New York (the “Company Headquarters”), commercial printing, television ~~(primarily from our television series, “The Weekly”),~~and film, retail commerce and NYT Live (our live events business) ~~and retail commerce.~~ .

Our main operating costs are employee-related costs.

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

Financial Highlights

~~For the third quarter of 2019, diluted~~Diluted earnings per share from continuing operations were $0.20 and $0.10 ~~compared with $0.15~~ for the third ~~quarter~~quarters of ~~2018.~~2020 and 2019, respectively. Diluted earnings per share from continuing operations excluding severance, non-operating retirement costs and special items discussed below (or “adjusted diluted earnings per share,” a non-GAAP measure) were ~~$0.12~~$0.22 and ~~$0.15~~$0.12 for the third quarters of ~~2019~~2020 and ~~2018,~~2019, respectively.

The Company had an operating profit of $39.6 million in the third quarter of 2020, compared with $25.1 million in the third quarter of ~~2019, compared with $41.4 million in the third quarter of 2018.~~2019. The ~~decrease~~increase was principally driven by higher ~~costs and lower advertising revenue that more than offset higher~~ digital-only subscription revenues and ~~other~~lower costs, which more than offset lower advertising revenues. Operating profit before depreciation, amortization, severance, multiemployer pension plan withdrawal costs and special items discussed below (or “adjusted operating profit,” a non-GAAP measure) ~~was~~increased to $56.5 million in the third quarter of 2020 from $44.1 million ~~and $53.7 million for~~in the third ~~quarters~~quarter of 2019, ~~and 2018, respectively,~~ primarily as a result of the factors identified above.

Total revenues ~~increased 2.7%~~decreased 0.4% to $426.9 million in the third quarter of 2020 from $428.5 million in the third quarter of 2019, primarily driven by a decrease in advertising revenue and other revenue. These declines were partially offset by higher subscription revenues.

Operating costs decreased in the third quarter of 2020 to $387.3 million from ~~$417.3~~$401.5 million in the third quarter of ~~2018, primarily driven by an increase in digital-only subscription revenues~~2019, largely due to lower media expenses and ~~other revenues,~~lower advertising sales costs, as well as lower print production and distribution and advertising servicing costs. These were partially offset by ~~a decrease in advertising revenue.~~

~~Operating costs increased in the third quarter of 2019 to $401.5 million from $380.8 million in the third quarter of 2018, largely due to~~ higher digital content delivery and journalism costs, including growth in the number of ~~newsroom employees and costs related to our television series, “The Weekly,” as well as growth in the number of~~digital product development employees ~~partially offset by lower print production and distribution costs.~~in connection with digital subscription strategic initiatives. Operating costs before depreciation, amortization, severance and multiemployer pension plan withdrawal costs (or “adjusted operating costs,” a non-GAAP measure) ~~increased~~decreased in the third quarter of ~~2019~~2020 to ~~$384.4~~$370.4 million from ~~$363.7~~$384.4 million in the third quarter of ~~2018,~~2019, primarily as a result of the factors identified above.

Impact of COVID-19 Pandemic

The global coronavirus (COVID-19) pandemic, and attempts to contain it, have continued to result in significant economic disruption, market volatility and uncertainty. These conditions have affected our business and could continue to do so for the foreseeable future.

Unlike many media companies, which are primarily dependent on advertising, we derive substantial revenue from subscriptions (approximately 60% of total revenues in 2019 and 69% in the first three quarters of 2020). Although moderating from the early months of the pandemic, we have experienced significant growth in the number of subscriptions to our digital

news and other products, which is attributable in part to an increase in traffic given the news environment. However, revenues from the single-copy and bulk sales of our print newspaper (which include our international edition and collectively represent less than 10% of our total subscription revenues) have been, and we expect will continue to be, adversely affected as a result of widespread business closures, increased remote working and reductions in travel.

The worldwide economic slowdown caused by the pandemic also led to a significant decline in our advertising revenues, beginning in the first quarter of 2020 and continuing through the third quarter of 2020, and to the extent conditions persist, we expect that our advertising revenues will continue to be adversely affected.

However, our strong balance sheet has enabled us to continue to operate without the liquidity issues experienced by many other companies. As of September 27, 2020, we had cash, cash equivalents and short- and long-term marketable securities of $800.1 million, and we were debt-free. 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, enabling us to continue hiring in our newsroom, and in product and technology, and continue investment in important growth areas.

We have incurred and expect to continue to incur some additional costs in response to the pandemic, including certain enhanced employee benefits. These costs have not been significant to date, but we may incur significant additional costs as we continue to implement operational changes in response to the pandemic.

At this time, the complete impact that the COVID-19 pandemic, and the associated economic downturn, will have on our business is uncertain. While we remain confident in our prospects over the longer term, the extent to which the pandemic impacts us will depend on numerous evolving factors and future developments, including the severity and duration of the outbreak, and any resurgence thereof; the impact of the pandemic on economic activity and the companies with which we do business; governmental, business and other actions; travel restrictions; and social distancing measures, among many other factors. We will continue to actively monitor the situation and may take further actions that alter our business operations as may be required by federal, state, local or foreign authorities, or that we determine are appropriate. Please see “Part II—Item 1A—Risk Factors” for more information.

RESULTS OF OPERATIONS

The following table presents our consolidated financial results:


	For the Quarters Ended								For the Nine Months Ended									For the Quarters Ended						For the Nine Months Ended
(In thousands)	September 29, 2019			September 30, 2018			% Change		September 29, 2019			September 30, 2018			% Change		(In thousands)	September 27, 2020		September 29, 2019		% Change		September 27, 2020		September 29, 2019		% Change
Revenues																	Revenues
Subscription	$	267,302		$	257,796		3.7	%	$	808,568		$	779,018		3.8	%	Subscription	$	300,950	$	267,302	12.6	%	$	879,573	$	808,568	8.8	%
Advertising	113,531			121,677			(6.7	)%	359,380			366,525			(1.9	)%	Advertising	79,253		113,531		(30.2)	%	253,150		359,380		(29.6)	%
Other	47,668			37,873			25.9	%	135,873			100,311			35.5	%	Other	46,692		47,668		(2.0)	%	141,558		135,873		4.2	%
Total revenues	428,501			417,346			2.7	%	1,303,821			1,245,854			4.7	%	Total revenues	426,895		428,501		(0.4)	%	1,274,281		1,303,821		(2.3)	%
Operating costs																	Operating costs
Production costs:
Wages and benefits	106,377			95,941			10.9	%	313,244			280,688			11.6	%
Raw materials	18,531			19,972			(7.2	)%	57,527			54,490			5.6	%
Other production costs	53,868			47,521			13.4	%	149,102			138,454			7.7	%
Total production costs	178,776			163,434			9.4	%	519,873			473,632			9.8	%
Selling, general and administrative costs	207,226			202,473			2.3	%	638,820			614,464			4.0	%
Cost of revenue (excluding depreciation and amortization)																	Cost of revenue (excluding depreciation and amortization)	235,900		245,100		(3.8)	%	709,719		729,654		(2.7)	%
Sales and marketing																	Sales and marketing	50,627		64,218		(21.2)	%	164,040		201,327		(18.5)	%
Product development																	Product development	34,102		26,669		27.9	%	95,641		75,658		26.4	%
General and administrative																	General and administrative	51,118		50,015		2.2	%	162,791		152,054		7.1	%
Depreciation and amortization	15,450			14,847			4.1	%	45,548			43,969			3.6	%	Depreciation and amortization	15,552		15,450		0.7	%	46,368		45,548		1.8	%
Total operating costs	401,452			380,754			5.4	%	1,204,241			1,132,065			6.4	%	Total operating costs	387,299		401,452		(3.5)	%	1,178,559		1,204,241		(2.1)	%
Headquarters redesign and consolidation	—			—			—		—			3,140			*

Restructuring charge	4,008			—			*		4,008			—			*		Restructuring charge	—		4,008		*		—		4,008		*
Gain from pension liability adjustment	(2,045		)	(4,851		)	(57.8	)%	(2,045		)	(4,851		)	(57.8	)%	Gain from pension liability adjustment	—		(2,045)		*		—		(2,045)		*
Operating profit	25,086			41,443			(39.5	)%	97,617			115,500			(15.5	)%	Operating profit	39,596		25,086		57.8	%	95,722		97,617		(1.9)	%
Other components of net periodic benefit costs	1,834			2,335			(21.5	)%	5,502			6,226			(11.6	)%	Other components of net periodic benefit costs	2,272		1,834		23.9	%	6,735		5,502		22.4	%
Loss from joint ventures	—			(16		)	*		—			(9		)	*
Interest expense and other, net	755			4,026			(81.2	)%	3,572			13,439			(73.4	)%

Interest income/(expense) and other, net																	Interest income/(expense) and other, net	3,537		(755)		*		20,177		(3,572)		*
Income from continuing operations before income taxes	22,497			35,066			(35.8	)%	88,543			95,826			(7.6	)%	Income from continuing operations before income taxes	40,861		22,497		81.6	%	109,164		88,543		23.3	%
Income tax expense	6,070			10,092			(39.9	)%	16,789			25,342			(33.8	)%	Income tax expense	7,283		6,070		20.0	%	19,070		16,789		13.6	%

Net income	16,427			24,974			(34.2	)%	71,754			70,484			1.8	%	Net income	33,578		16,427		*		90,094		71,754		25.6	%
Net loss attributable to the noncontrolling interest	—			2			*		—			1			*

Net income attributable to The New York Times Company common stockholders	$	16,427		$	24,976		(34.2	)%	$	71,754		$	70,485		1.8	%	Net income attributable to The New York Times Company common stockholders	$	33,578	$	16,427	*		$	90,094	$	71,754	25.6	%

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

Revenues

Subscription Revenues

Subscription revenues consist of revenues from subscriptions to our ~~print~~digital and ~~digital~~print products (which include our news product, as well as our ~~Crossword~~Games (previously Crossword), Cooking and ~~Cooking~~audio products), and single-copy and bulk sales of our print products (which represent less than 10% of these revenues). ~~Revenues from our digital-only news subscriptions include e-readers and replica editions. Our Cooking product first launched as a paid digital product in the third quarter of 2017.~~ Subscription revenues are based on both the number of copies of the ~~print~~printed newspaper sold and digital-only subscriptions, and the rates charged to the respective customers.

Subscription revenues increased ~~3.7%~~12.6% in the third quarter and ~~3.8%~~8.8% in the first nine months of ~~2019~~2020 compared with the same prior-year periods, primarily due to year-over-year growth of ~~31.0%~~49.6% in the number of subscriptions to the Company’s digital products as well as the continued focus on our digital pricing strategy which included price increases in 2020 for our most tenured subscribers. The increases in both periods were partially offset by a decrease in print subscription ~~products.~~revenue attributable to lower single-copy and bulk sales, primarily as a result of the COVID-19 pandemic, as well as fewer subscriptions, partially offset by an increase in home delivery prices. The third quarter was the first full quarter in which digital-only subscription revenue exceeded print subscription revenue.

Paid digital-only subscriptions totaled approximately ~~4,053,000~~6,063,000 at the end of the third quarter of ~~2019,~~2020, a ~~958,000~~net increase of 393,000 subscriptions compared with the end of the second quarter of 2020 and a net increase of 2,010,000 compared with the end of the third quarter of 2019. The significant rate of year-over-year growth in our digital subscriptions that continued, although moderated, from the early months of the COVID-19 pandemic is attributable in part to an increase in traffic given the news environment, as well as a change made to the digital access model last year, which requires users to register and log in to access most of our content.

Digital-only news product subscriptions totaled approximately 4,665,000 at the end of the third quarter of 2020, a 275,000 net increase compared with the end of the second quarter of 2020 and a 1,468,000 increase compared with the end of the third quarter of ~~2018. News~~2019. Other product subscriptions (which include our Games, Cooking and audio products) totaled approximately ~~3,197,000~~1,398,000 at the end of the third quarter of ~~2019, a~~ ~~656,000~~2020, an increase of 118,000 subscriptions compared with the end of the second quarter of 2020 and an increase of 542,000 subscriptions compared with the end of the third quarter of ~~2018. Other product~~2019.

Print domestic home delivery subscriptions totaled approximately ~~856,000~~831,000 at the end of the third quarter of ~~2019,~~2020, relatively flat compared with the end of the second quarter of 2020 and a ~~302,000~~ ~~increase~~net decrease of 34,000 compared with the end of the third quarter of ~~2018.~~2019. The year-over-year decrease is a result of secular declines.

The following table summarizes ~~digital-only subscription revenues, which are a component of~~digital and print subscription revenues for the third quarters and first nine months of ~~2019~~2020 and ~~2018:~~2019:


	For the Quarters Ended						For the Nine Months Ended							For the Quarters Ended						For the Nine Months Ended
(In thousands)	September 29, 2019		September 30, 2018		% Change		September 29, 2019		September 30, 2018		% Change		(In thousands)	September 27, 2020		September 29, 2019		% Change		September 27, 2020		September 29, 2019		% Change
Digital-only subscription revenues:													Digital-only subscription revenues:
News product subscription revenues⁽¹⁾	$	107,009	$	95,568	12.0	%	$	313,785	$	279,693	12.2	%	News product subscription revenues(1)	$	140,740	$	107,009	31.5	%	$	392,620	$	313,785	25.1	%
Other product subscription revenues⁽²⁾	8,855		5,639		57.0	%	24,573		15,669		56.8	%	Other product subscription revenues(2)	14,546		8,855		64.3	%	38,660		24,573		57.3	%
Total digital-only subscription revenues	$	115,864	$	101,207	14.5	%	$	338,358	$	295,362	14.6	%
⁽¹⁾Includes revenues from subscriptions to the Company’s news product. News product subscription packages that include access to the Company’s Crossword and Cooking products are also included in this category.
⁽²⁾Includes revenues from standalone subscriptions to the Company’s Crossword and Cooking products.
Subtotal digital-only subscription revenues													Subtotal digital-only subscription revenues	155,286		115,864		34.0	%	431,280		338,358		27.5	%
Print subscription revenues:													Print subscription revenues:
Domestic home delivery subscription revenues(3)													Domestic home delivery subscription revenues(3)	129,912		126,769		2.5	%	396,620		395,011		0.4	%
Single-copy, NYT International and other subscription revenues(4)													Single-copy, NYT International and other subscription revenues(4)	15,752		24,669		(36.1)	%	51,673		75,199		(31.3)	%
Subtotal print subscription revenues													Subtotal print subscription revenues	145,664		151,438		(3.8)	%	448,293		470,210		(4.7)	%
Total subscription revenues													Total subscription revenues	$	300,950	$	267,302	12.6	%	$	879,573	$	808,568	8.8	%
(1) Includes revenues from subscriptions to the Company’s news product. News product subscription packages that include access to the Company’s Games and Cooking products are also included in this category.													(1) Includes revenues from subscriptions to the Company’s news product. News product subscription packages that include access to the Company’s Games and Cooking products are also included in this category.
(2) Includes revenues from standalone subscriptions to the Company’s Games, Cooking and audio products.													(2) Includes revenues from standalone subscriptions to the Company’s Games, Cooking and audio products.
(3) Includes free access to some or all of the Company’s digital products.													(3) Includes free access to some or all of the Company’s digital products.
(4) NYT International is the international edition of our print newspaper.													(4) NYT International is the international edition of our print newspaper.

For the Quarters Ended
(In thousands) September 29, 2019
September 30, 2018
% Change
Digital-only subscriptions:
News product subscriptions⁽¹⁾
3,197
2,541
25.8 %
Other product subscriptions⁽²⁾
856
554
54.5 %
Total digital-only subscriptions 4,053
3,095
31.0 %
⁽¹⁾Includes subscriptions to the Company’s news product. News product subscription packages that include access to the Company’s Crossword and Cooking products are also included in this category.
⁽²⁾Includes standalone subscriptions to the Company’s Crossword and Cooking products.

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 following charts illustrate the acceleration in net digital-only subscription additions and corresponding subscription revenues as well as the relative stability of our print domestic home delivery subscription products since the launch of the digital pay model in 2011.

(1) Amounts may not add due to rounding.

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

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

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

Advertising Revenues

Advertising revenues are derived from the sale of our advertising products and services on our print and digital platforms. These revenues are primarily determined by the volume, rate and mix of advertisements. Display advertising revenue is principally from advertisers promoting products, services or brands on digital platforms in the form of banners and video, and in print, in the form of column-inch ~~ads,~~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 and on our digital platforms in the form of banners, video, rich media and other interactive ads. Display advertising also includes branded content on The Times’s platforms. Other advertising primarily represents, for our print products, classified advertising revenue,from creative service fees, including line-ads sold in the major categories of real estate, help wanted, automotive and other as well as revenue from preprinted advertising, also known as free-standing inserts. Digital other advertising revenue primarily includes creative services feesthose associated with ~~among other things, our digital marketing agencies and~~ our branded content ~~studio;~~studio.

Advertising revenues are primarily determined by the volume (e.g., impressions), rate and mix of advertisements. Digital advertising ~~revenue from~~includes our ~~podcasts;~~core digital advertising business and other digital advertising. Our core digital advertising business includes advertising on websites, mobile applications, podcasts, emails and videos. 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, creative services fees and advertising revenue generated by Wirecutter, our product review and recommendation website. Print advertising includes revenue from column-inch ads and classified advertising, including line-ads as well as preprinted advertising, also known as freestanding inserts.

~~Advertising~~The following table summarizes digital and print advertising revenues ~~(print~~for the third quarters and ~~digital)~~first nine months of 2020 and 2019:


	For the Quarters Ended						For the Nine Months Ended
(In thousands)	September 27, 2020		September 29, 2019		% Change		September 27, 2020		September 29, 2019		% Change
Advertising revenues:
Digital	$	47,763	$	54,653	(12.6)	%	$	138,452	$	168,222	(17.7)	%
Print	31,490		58,878		(46.5)	%	114,698		191,158		(40.0)	%
Total advertising	$	79,253	$	113,531	(30.2)	%	$	253,150	$	359,380	(29.6)	%

Digital advertising revenues, which represented 60.3% of total advertising revenues in the third quarter of 2020, declined $6.9 million or 12.6%, to $47.8 million compared with $54.7 million in the same prior-year period primarily driven by ~~category~~a decrease in creative service fees. Core digital advertising revenue increased $0.4 million due to growth in podcast and email advertising revenue, which was partially offset by a decrease in revenues attributed to direct-sold display. Direct-sold display impressions declined 23%, while the average rate grew 18%. Other digital advertising revenue decreased $7.3 million as a result of the discontinuation of our HelloSociety and Fake Love creative services businesses, as well as lower creative services demand due to the COVID-19 pandemic. Open market programmatic advertising revenue was flat, as impressions increased by 25%, while the average rate decreased 17%. Overall display advertising impressions increased 71% as a result of an increase in traffic to our products, which were primarily filled by programmatic impressions.

Digital advertising revenues, which represented 54.7% of total advertising revenues in the first nine months of 2020, declined $29.8 million or 17.7% to $138.5 million, compared with $168.2 million in the same prior-year period primarily driven by a decrease in creative services and direct-sold display. Core digital advertising revenue decreased $10.2 million primarily due to a 19% decline in direct-sold display advertising revenue partially offset by a 19% increase in podcast revenues. Direct-sold display impressions declined 15%, while average rate grew 5%. Other digital advertising declined $19.6 million as ~~follows:~~

For the Quarters Ended
September 29, 2019 September 30, 2018 % Change
(In thousands) Print Digital Total Print Digital Total Print Digital Total
Advertising revenues:
Display $ 51,702
$ 36,202
$ 87,904
$ 57,245
$ 43,730
$ 100,975
(9.7 )% (17.2 )% (12.9 )%
Other 7,176
18,451
25,627
6,676
14,026
20,702
7.5 % 31.5 % 23.8 %
Total advertising $ 58,878
$ 54,653
$ 113,531
$ 63,921
$ 57,756
$ 121,677
(7.9 )% (5.4 )% (6.7 )%

For the Nine Months Ended
September 29, 2019 September 30, 2018 % Change
(In thousands) Print Digital Total Print Digital Total Print Digital Total
Advertising revenues:
Display $ 169,903
$ 121,147
$ 291,050
$ 188,853
$ 123,870
$ 312,723
(10.0 )% (2.2 )% (6.9 )%
Other 21,255
47,075
68,330
22,182
31,620
53,802
(4.2 )% 48.9 % 27.0 %
Total advertising $ 191,158
$ 168,222
$ 359,380
$ 211,035
$ 155,490
$ 366,525
(9.4 )% 8.2 % (1.9 )%
a result of the discontinuation of HelloSociety and Fake Love creative services business, as well as lower demand for creative services due to the COVID-19 pandemic. This decline was partially offset by growth in open market programmatic advertising, as impressions increased by 51%, while the average rate decreased 30%. Overall display advertising impressions increased 103% as a result of an increase in traffic to our products, which were primarily filled by programmatic impressions.

Print advertising revenues, which represented ~~51.9%~~39.7% of total advertising revenues ~~for the third quarter of 2019 and 53.2% of total advertising revenues for the first nine months of 2019, declined 7.9% to $58.9 million~~ in the third quarter of ~~2019 and 9.4%~~2020, declined $27.4 million or 46.5% to ~~$191.2~~$31.5 million compared with $58.9 million in the same prior-year period. Print advertising revenues, which represented 45.3% of total advertising revenues in the first nine months of ~~2019,~~2020, declined $76.5 million or 40.0% to $114.7 million compared with ~~$63.9~~$191.2 million ~~and $211.0 million, respectively,~~ in the same ~~prior-year periods.~~prior year period. The decline in ~~print advertising revenues in the third quarter and in the first nine months of 2019 compared with the same~~both periods ~~in the prior year~~ was driven by ~~a continued decline in display advertising revenue.~~lower demand as the COVID-19 pandemic further accelerated secular trends. The decline in ~~display~~print advertising revenue in the third quarter of ~~2019~~2020 was primarily in the ~~financial services,~~luxury, entertainment, media and home furnishings ~~and luxury categories, partially offset by growth in the advocacy category.~~categories. The decline in ~~display~~print advertising revenue in the first nine months of ~~2019~~2020 was primarily in the ~~financial services,~~entertainment, luxury, media and ~~retail categories, partially offset by growth in the advocacy category.~~

Digital advertising revenues, which represented 48.1% of total advertising revenues for the third quarter of 2019 and 46.8% of total advertising revenues for the first nine months of 2019, declined 5.4% to $54.7 million in the third quarter of 2019 and increased 8.2% to $168.2 million in the first nine months of 2019, compared with $57.8 million and $155.5 million, respectively, in the same prior-year periods. The decrease in digital advertising revenue for the third quarter of 2019 compared with the same period in the prior year primarily reflected lower revenue from direct-sold advertising on our core digital platforms, partially offset by growth in revenue from podcasts. The increase in digital advertising revenue for the first nine months of 2019 compared with the same period in the prior year primarily reflected growth in revenue from podcasts and creative services, partially offset by lower open market programmatic advertising revenue on our core digital platforms.home furnishings categories.

Other Revenues

Other revenues primarily consist of revenues from licensing, ~~commercial printing,~~affiliate referrals from Wirecutter, the leasing of floors in the Company Headquarters, ~~affiliate referrals,~~commercial printing, television ~~(primarily from our television series, “The Weekly”),~~and film, retail commerce and NYT Live (our live events business). Building rental revenue consists of revenue from the lease of floors in our Company Headquarters, which totaled $7.1 million

and ~~retail commerce.~~

~~Other revenues increased 25.9%~~$7.9 million in the third ~~quarter~~quarters of 2020 and 2019, respectively, and ~~35.5%~~$22.3 million and $23.0 million in the first nine months of 2020 and 2019, respectively.

Other revenues decreased 2.0% in the third quarter of 2020 and increased 4.2% in the first nine months of 2020, compared with the same prior-year periods. The ~~increase~~decrease in ~~other revenues for~~ the third quarter of ~~2019 compared with the same period in the~~

~~prior year is~~2020 was primarily a result of fewer television episodes as well as lower revenues from commercial printing and live events. These declines were partially offset by higher licensing revenue ~~earned from our television series, “The Weekly.”~~related to Facebook News and affiliate referral revenue related to Wirecutter. The increase in other revenues for the first nine months of ~~2019 compared with the same period~~2020 primarily resulted from higher licensing revenue related to Facebook News and affiliate referral revenue related to Wirecutter, partially offset by a decline in ~~the prior year is primarily a result of growth in our~~revenues from commercial printing ~~operations, revenue earned from “The Weekly,”~~ and ~~additional floors of rental revenue from the Company Headquarters.~~live events.

Operating Costs

As noted above, effective with the quarter ended March 29, 2020, the Company changed the Operating costs captions on its Condensed Consolidated Statement of Operations. See Note 15 of the Notes to the Condensed Consolidated Financial Statements for more detail.

Operating costs were as follows:

For the Quarters Ended For the Nine Months Ended
(In thousands) September 29, 2019
September 30, 2018
% Change
September 29, 2019
September 30, 2018
% Change
Production costs:
Wages and benefits $ 106,377
$ 95,941
10.9 % $ 313,244
$ 280,688
11.6 %
Raw materials 18,531
19,972
(7.2 )% 57,527
54,490
5.6 %
Other production costs 53,868
47,521
13.4 % 149,102
138,454
7.7 %
Total production costs 178,776
163,434
9.4 % 519,873
473,632
9.8 %
Selling, general and administrative costs 207,226
202,473
2.3 % 638,820
614,464
4.0 %
Depreciation and amortization 15,450
14,847
4.1 % 45,548
43,969
3.6 %
Total operating costs $ 401,452
$ 380,754
5.4 % $ 1,204,241
$ 1,132,065
6.4 %


	For the Quarters Ended						For the Nine Months Ended
(In thousands)	September 27, 2020		September 29, 2019		% Change		September 27, 2020		September 29, 2019		% Change
Operating costs:
Cost of revenue (excluding depreciation and amortization)	$	235,900	$	245,100	(3.8)	%	$	709,719	$	729,654	(2.7)	%
Sales and marketing	50,627		64,218		(21.2)	%	164,040		201,327		(18.5)	%
Product development	34,102		26,669		27.9	%	95,641		75,658		26.4	%
General and administrative	51,118		50,015		2.2	%	162,791		152,054		7.1	%
Depreciation and amortization	15,552		15,450		0.7	%	46,368		45,548		1.8	%
Total operating costs	$	387,299	$	401,452	(3.5)	%	$	1,178,559	$	1,204,241	(2.1)	%

~~Production Costs~~Cost of Revenue (excluding depreciation and amortization)

~~Production~~Cost of revenue includes all costs ~~include items such as labor costs, raw materials and machinery and equipment expenses~~ related to ~~news gathering~~content creation, subscriber and advertiser servicing, and print production ~~activity,~~and distribution as well as infrastructure costs related to ~~producing branded content.~~delivering digital content, which include all cloud and cloud-related costs as well as compensation for employees that enhance and maintain our platforms.

~~Production costs increased~~Cost of revenue decreased in the third quarter of ~~2019~~2020 by ~~$15.3~~$9.2 million compared with the third quarter of ~~2018, primarily driven by a $10.4~~2019, largely due to lower print production and distribution costs of $13.5 million ~~increase in wage~~ and ~~benefits and a $6.3~~lower advertising servicing costs of $7.9 million, ~~increase in other production costs,~~which were partially offset by ~~a $1.4~~higher digital content delivery costs of $5.1 million, higher journalism costs of $4.1 million and higher subscriber servicing costs of $3.0 million. The decrease in ~~raw materials.~~print production and distribution costs was largely due to lower newsprint consumption and pricing, as well as lower outside printing and distribution costs. The decrease in advertising servicing costs was due to lower creative services revenues, as well as lower volume of campaigns and live events. Higher digital content delivery costs were due to a growth in the number of employees to support cloud related operations, content creation and delivery systems and higher cloud storage costs. The increase in ~~wages~~journalism costs was largely driven by an increase in the number of newsroom employees, partially offset by lower costs related to our television series. The increase in subscriber servicing costs was primarily due to higher credit card processing fees and ~~benefits~~third-party commissions due to increased subscriptions.

Cost of revenue decreased in the first nine months of 2020 by $19.9 million compared with the first nine months of 2019, largely due to lower print production and distribution costs of $41.9 million and lower advertising servicing costs of $17.4 million, which were partially offset by higher journalism costs of $19.8 million, higher digital content delivery costs of $12.4 million and higher subscriber servicing costs of $7.2 million. The decreases in print production and distribution costs and in advertising servicing costs were largely due to the factors identified above. The increase in journalism costs was largely driven by an increase in the number of newsroom employees. Higher digital content delivery and subscriber servicing costs were largely due to the factors identified above.

Sales and Marketing

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

Sales and marketing costs in the third quarter of 2020 decreased by $13.6 million compared with the third quarter of 2019, due primarily to lower media expenses and advertising sales costs.

Sales and marketing costs decreased in the first nine months of 2020 by $37.3 million compared with the first nine months of 2019, primarily as a result of the factors identified above.

Media expenses, a component of sales and marketing costs that represents the cost to promote our subscription business, decreased to $27.3 million in the third quarter of 2020 from $35.9 million in the third quarter of 2019 and decreased to $89.2 million in the first nine months of 2020 from $114.6 million in the first nine months of 2019 as the Company reduced its marketing spend during the COVID-19 pandemic.

Product Development

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

Product development costs in the third quarter of 2020 increased by $7.4 million compared with the third quarter of 2019, largely due to growth in the number of ~~newsroom and~~digital product development ~~employees. The increase in other production costs was primarily due to expenses incurred~~employees in connection with ~~our television series,“The Weekly.” The decrease in raw materials was largely due to lower commercial printing~~digital subscription strategic initiatives.

Product development costs ~~and newsprint copies.~~

~~Production costs increased~~ in the first nine months of ~~2019~~2020 increased by ~~$46.2~~$20.0 million compared with the first nine months of ~~2018,~~2019, primarily driven by a $32.6 million increase in wages and benefits, a $10.6 million increase in other production costs and a $3.0 million increase in raw materials. The increase in wages and benefits was largely due growth in the number of our newsroom, product development and commercial printing operations employees. The increase in other production costs was primarily due to expenses incurred in connection with our television series, “The Weekly.” The increase in raw materials was largely due to higher volume as a result of ~~commercial printing operations and higher newsprint prices, partially offset by lower newsprint copies.~~the factors identified above.

~~Selling,~~ General and Administrative Costs

~~Selling, general~~General and administrative costs ~~include~~includes general management, corporate enterprise technology, building operations, unallocated overhead costs, ~~associated with the selling, marketing~~severance and ~~distribution of products as well as administrative expenses.~~multiemployer pension plan withdrawal costs.

~~Selling, general~~General and administrative costs in the third quarter of ~~2019~~2020 increased by ~~$4.8~~$1.1 million compared with the third quarter of ~~2018 driven~~2019, primarily byas a ~~$7.3 million increase~~result of growth in ~~wages and benefits to support growth initiatives, partially offset by $3.2 million in lower distribution~~the number of employees, as well as higher outside services costs.

~~Selling, general~~General and administrative costs in the first nine months of ~~2019~~2020 increased by ~~$24.4~~$10.7 million compared with the first nine months of ~~2018 driven~~2019, primarily byas a ~~$16.8 million increase~~result of severance, growth in wages and benefits to support growth initiatives, a $14.9 million increase in marketing expenses largely due to an increase in subscription acquisition and brand marketing costs, partially offset by a $4.8 million decrease inthe number of employees, as well as higher outside services ~~costs and a $2.5 million decrease in severance.~~

costs.

Depreciation and Amortization

Depreciation and amortization costs in the third quarter and first nine months of ~~2019 increased $0.6 million and $1.6 million, respectively,~~2020 remained relatively flat compared with the same prior-year ~~periods primarily due to building and software projects that were placed in service and started depreciating in the second half of 2018.~~periods.

Other Items

See Note 87 of the Notes to the Condensed Consolidated Financial Statements for additional information regarding other items.

NON-OPERATING ITEMS

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

See Note 109 of the Notes to the Condensed Consolidated Financial Statements for information regarding other components of net periodic benefit ~~costs/(income).~~

~~Joint Ventures~~

~~See Note 6 of the Notes to the Condensed Consolidated Financial Statements for information regarding our joint venture investments.~~costs.

Interest ~~Expense~~Income/(expense) and other, ~~Net~~net

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

Income Taxes

See Note 1110 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

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

The special item in 2020 consisted of:

•a $10.1 million gain ($7.4 million after tax or $.04 per share) related to a non-marketable equity investment transaction. The gain is comprised of $2.5 million realized gain due to the partial sale of the investment and an $7.6 million unrealized gain due to the mark to market of the remaining investment, and is included in Interest income/(expense) and other, net in our Condensed Consolidated Statements of Operations.

The special items in 2019 consisted of:

•a $4.0 million charge ($3.0 million after tax or $.02 per share) related to restructuring charges, including impairment and severance charges related to the closure of our digital marketing agency, HelloSociety, LLC; and

•a $2.0 million gain ($1.5 million after tax or $.01 per share) from a multiemployer pension plan liability adjustment.

~~The special items in 2018 consisted of:~~


•	a ~~$4.9 million~~ ~~gain ($3.6 million after tax or $.02 per share) from a multiemployer pension plan liability adjustment; and~~

a $1.3 million charge ($0.9 million after tax or $.01 per share) in the second quarter and a $1.9 million charge ($1.4 million after tax or $.01 per share) in the first quarter in connection with the redesign and consolidation of space in the 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.

~~Non-operating retirement costs include:~~

~~interest cost, expected return on plan assets, amortization of actuarial gain and loss components and amortization of prior service credits of single-employer pension expense;~~

~~interest cost and amortization of actuarial gains and loss components and amortization of prior service credits of retirement medical expense; and~~

~~all multiemployer pension plan withdrawal costs.~~

These non-operating retirement costs are primarily tied to financial market performance including 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.

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

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

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


Reconciliation of diluted earnings per share from continuing operations excluding severance, non-operating retirement costs and special items (or adjusted diluted earnings per share from continuing operations)	Reconciliation of diluted earnings per share from continuing operations excluding severance, non-operating retirement costs and special items (or adjusted diluted earnings per share from continuing operations)																	Reconciliation of diluted earnings per share from continuing operations excluding severance, non-operating retirement costs and special items (or adjusted diluted earnings per share from continuing operations)
		For the Quarters Ended								For the Nine Months Ended									For the Quarters Ended						For the Nine Months Ended
		September 29, 2019			September 30, 2018			% Change		September 29, 2019			September 30, 2018			% Change			September 27, 2020		September 29, 2019		% Change		September 27, 2020		September 29, 2019		% Change
Diluted earnings per share from continuing operations		$	0.10		$	0.15		(33.3	)%	$	0.43		$	0.42		2.4	%	Diluted earnings per share from continuing operations	$	0.20	$	0.10	*		$	0.54	$	0.43	25.6	%
Add:																		Add:
Severance		—			—			—		0.01			0.03			(66.7	)%	Severance	—		—		—		0.04		0.01		*
Non-operating retirement costs:																		Non-operating retirement costs:
Multiemployer pension plan withdrawal costs		0.01			0.01			—		0.03			0.03			—		Multiemployer pension plan withdrawal costs	0.01		0.01		—		0.02		0.03		(33.3)	%
Other components of net periodic benefit costs		0.01			0.02			(50.0	)%	0.03			0.04			(25.0	)%	Other components of net periodic benefit costs	0.01		0.01		—		0.04		0.03		33.3	%
Special item:																		Special item:
Headquarters redesign and consolidation		—			—			—		—			0.02			*

Restructuring charge		0.02			—			*		0.02			—			*		Restructuring charge	—		0.02		*		—		0.02		*
Gain from non- marketable equity security																		Gain from non- marketable equity security	—		—		—		(0.06)		—		*
Gain from pension liability adjustment		(0.01		)	(0.03		)	(66.7	)%	(0.01		)	(0.03		)	(66.7	)%	Gain from pension liability adjustment	—		(0.01)		*		—		(0.01)		*

Income tax expense of adjustments		(0.01		)	—			*		(0.02		)	(0.02		)	*		Income tax expense of adjustments	(0.01)		(0.01)		—		(0.01)		(0.02)		(50.0)	%
Adjusted diluted earnings per share from continuing operations⁽¹⁾		$	0.12		$	0.15		(20.0	)%	$	0.49		$	0.49		—		Adjusted diluted earnings per share from continuing operations(1)	$	0.22	$	0.12	83.3	%	$	0.57	$	0.49	16.3	%

⁽¹⁾Amounts may not add due to rounding.

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


Reconciliation of operating profit before depreciation & amortization, severance, multiemployer pension plan withdrawal costs and special items (or adjusted operating profit)	Reconciliation of operating profit before depreciation & amortization, severance, multiemployer pension plan withdrawal costs and special items (or adjusted operating profit)																	Reconciliation of operating profit before depreciation & amortization, severance, multiemployer pension plan withdrawal costs and special items (or adjusted operating profit)
		For the Quarters Ended								For the Nine Months Ended									For the Quarters Ended						For the Nine Months Ended
(In thousands)		September 29, 2019			September 30, 2018			% Change		September 29, 2019			September 30, 2018			% Change		(In thousands)	September 27, 2020		September 29, 2019		% Change		September 27, 2020		September 29, 2019		% Change
Operating profit		$	25,086		$	41,443		(39.5	)%	$	97,617		$	115,500		(15.5	)%	Operating profit	$	39,596	$	25,086	57.8	%	$	95,722	$	97,617	(1.9)	%
Add:																		Add:
Depreciation & amortization		15,450			14,847			4.1	%	45,548			43,969			3.6	%	Depreciation & amortization	15,552		15,450		0.7	%	46,368		45,548		1.8	%
Severance		367			293			25.3	%	2,441			4,926			(50.4	)%	Severance	—		367		*		6,675		2,441		*
Multiemployer pension plan withdrawal costs		1,204			1,943			(38.0	)%	4,454			5,838			(23.7	)%	Multiemployer pension plan withdrawal costs	1,376		1,204		14.3	%	4,198		4,454		(5.7)	%
Special items:																		Special items:
Headquarters redesign and consolidation		—			—			—		—			3,140			*

Restructuring charge		4,008			—			*		4,008			—			*		Restructuring charge	—		4,008		*		—		4,008		*
Gain from pension liability adjustment		(2,045		)	(4,851		)	(57.8	)%	(2,045		)	(4,851		)	(57.8	)%	Gain from pension liability adjustment	—		(2,045)		*		—		(2,045)		*

Adjusted operating profit		$	44,070		$	53,675		(17.9	)%	$	152,023		$	168,522		(9.8	)%	Adjusted operating profit	$	56,524	$	44,070	28.3	%	$	152,963	$	152,023	0.6	%



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


	September 29, 2019		December 30, 2018			September 27, 2020		December 29, 2019
	(Unaudited)					(Unaudited)
Assets					Assets
Current assets					Current assets
Cash and cash equivalents	$	283,795	$	241,504	Cash and cash equivalents	$	215,763	$	230,431
Short-term marketable securities	376,863		371,301		Short-term marketable securities	308,734		201,785
Accounts receivable (net of allowances of $13,626 in 2019 and $13,249 in 2018)	167,081		222,464
Accounts receivable (net of allowances of $14,153 in 2020 and $14,358 in 2019)					Accounts receivable (net of allowances of $14,153 in 2020 and $14,358 in 2019)	125,337		213,402
Prepaid expenses	31,442		25,349		Prepaid expenses	32,087		29,089
Other current assets	50,108		33,328		Other current assets	39,063		42,124
Total current assets	909,289		893,946		Total current assets	720,984		716,831
Other assets					Other assets
Long-term marketable securities	217,265		213,558		Long-term marketable securities	275,649		251,696
Property, plant and equipment (less accumulated depreciation and amortization of $939,234 in 2019 and $911,845 in 2018)	627,059		638,846
Property, plant and equipment (less accumulated depreciation and amortization of $916,109 in 2020 and $950,881 in 2019)					Property, plant and equipment (less accumulated depreciation and amortization of $916,109 in 2020 and $950,881 in 2019)	604,283		627,121
Goodwill	137,256		140,282		Goodwill	168,700		138,674
Deferred income taxes	124,412		128,431		Deferred income taxes	109,197		115,229
Miscellaneous assets	239,680		182,060		Miscellaneous assets	260,728		239,587
Total assets	$	2,254,961	$	2,197,123	Total assets	$	2,139,541	$	2,089,138


	September 29, 2019			December 30, 2018				September 27, 2020		December 29, 2019
	(Unaudited)							(Unaudited)
Liabilities and stockholders’ equity							Liabilities and stockholders’ equity
Current liabilities							Current liabilities
Accounts payable	$	106,867		$	111,553		Accounts payable	$	97,749	$	116,571
Accrued payroll and other related liabilities	99,055			104,543			Accrued payroll and other related liabilities	94,101		108,865
Unexpired subscriptions revenue	86,748			84,044			Unexpired subscriptions revenue	100,149		88,419
Short-term debt and finance lease obligations	246,208			253,630

Accrued expenses and other	120,904			119,534			Accrued expenses and other	133,929		123,840
Total current liabilities	659,782			673,304			Total current liabilities	425,928		437,695
Other liabilities							Other liabilities

Pension benefits obligation	333,312			362,940			Pension benefits obligation	286,355		313,655
Postretirement benefits obligation	37,651			40,391			Postretirement benefits obligation	34,455		37,688
Other	126,450			77,847			Other	135,549		126,237
Total other liabilities	497,413			481,178			Total other liabilities	456,359		477,580
Stockholders’ equity							Stockholders’ equity
Common stock of $.10 par value:							Common stock of $.10 par value:
Class A – authorized: 300,000,000 shares; issued: 2019 – 174,106,014; 2018 – 173,158,414 (including treasury shares: 2019 – 8,870,801; 2018 – 8,870,801)	17,411			17,316
Class B – convertible – authorized and issued shares: 2019 – 803,408; 2018 – 803,408	80			80
Class A – authorized: 300,000,000 shares; issued: 2020 – 175,215,600; 2019 – 174,242,668 (including treasury shares: 2020 – 8,870,801; 2019 – 8,870,801)							Class A – authorized: 300,000,000 shares; issued: 2020 – 175,215,600; 2019 – 174,242,668 (including treasury shares: 2020 – 8,870,801; 2019 – 8,870,801)	17,521		17,424
Class B – convertible – authorized and issued shares: 2020 – 781,724; 2019 – 803,404							Class B – convertible – authorized and issued shares: 2020 – 781,724; 2019 – 803,404	78		80
Additional paid-in capital	203,293			206,316			Additional paid-in capital	212,291		208,028
Retained earnings	1,552,788			1,506,004			Retained earnings	1,672,633		1,612,658
Common stock held in treasury, at cost	(171,211		)	(171,211		)	Common stock held in treasury, at cost	(171,211)		(171,211)
Accumulated other comprehensive loss, net of income taxes:							Accumulated other comprehensive loss, net of income taxes:
Foreign currency translation adjustments	2,254			4,677			Foreign currency translation adjustments	5,710		3,438
Funded status of benefit plans	(509,403		)	(520,308		)	Funded status of benefit plans	(485,087)		(498,986)
Net unrealized gain/(loss) on available-for-sale securities	694			(2,093		)
Net unrealized gain on available-for-sale securities							Net unrealized gain on available-for-sale securities	3,459		572
Total accumulated other comprehensive loss, net of income taxes	(506,455		)	(517,724		)	Total accumulated other comprehensive loss, net of income taxes	(475,918)		(494,976)
Total New York Times Company stockholders’ equity	1,095,906			1,040,781			Total New York Times Company stockholders’ equity	1,255,394		1,172,003
Noncontrolling interest	1,860			1,860			Noncontrolling interest	1,860		1,860
Total stockholders’ equity	1,097,766			1,042,641			Total stockholders’ equity	1,257,254		1,173,863
Total liabilities and stockholders’ equity	$	2,254,961		$	2,197,123		Total liabilities and stockholders’ equity	$	2,139,541	$	2,089,138


	For the Quarters Ended						For the Nine Months Ended							For the Quarters Ended				For the Nine Months Ended
	September 29, 2019			September 30, 2018			September 29, 2019			September 30, 2018				September 27, 2020		September 29, 2019		September 27, 2020		September 29, 2019
	(13 weeks)						(39 weeks)							(13 weeks)				(39 weeks)
Net income	$	16,427		$	24,974		$	71,754		$	70,484		Net income	$	33,578	$	16,427	$	90,094	$	71,754
Other comprehensive income, before tax:													Other comprehensive income, before tax:
Loss on foreign currency translation adjustments	(3,159		)	(567		)	(3,286		)	(2,923		)
Income/(loss) on foreign currency translation adjustments													Income/(loss) on foreign currency translation adjustments	2,730		(3,159)		3,095		(3,286)
Pension and postretirement benefits obligation	4,893			8,009			14,685			24,850			Pension and postretirement benefits obligation	6,354		4,893		18,982		14,685
Net unrealized gain/(loss) on available-for-sale securities	284			314			3,773			(784		)
Net unrealized (loss)/gain on available-for-sale securities													Net unrealized (loss)/gain on available-for-sale securities	(854)		284		3,936		3,773
Other comprehensive income, before tax	2,018			7,756			15,172			21,143			Other comprehensive income, before tax	8,230		2,018		26,013		15,172
Income tax expense	489			2,031			3,903			5,535			Income tax expense	2,192		489		6,955		3,903
Other comprehensive income, net of tax	1,529			5,725			11,269			15,608			Other comprehensive income, net of tax	6,038		1,529		19,058		11,269
Comprehensive income	17,956			30,699			83,023			86,092
Comprehensive loss attributable to the noncontrolling interest	—			2			—			1

Comprehensive income attributable to The New York Times Company common stockholders	$	17,956		$	30,701		$	83,023		$	86,093		Comprehensive income attributable to The New York Times Company common stockholders	$	39,616	$	17,956	$	109,152	$	83,023



Class A Common Stock	~~165,235,217~~166,435,299	shares
Class B Common Stock	~~803,404~~781,724	shares



PART I		Financial Information	1
Item	1	Financial Statements	1
		Condensed Consolidated Balance Sheets as of September 27, 2020 (unaudited) and December 29, 2019	1
		Condensed Consolidated Statements of Operations (unaudited) for the quarters and nine months ended September 27, 2020 and September 29, 2019	3
		Condensed Consolidated Statements of Comprehensive Income (unaudited) for the quarters and nine months ended September 27, 2020 and September 29, 2019	4
		Condensed Consolidated Statements of Changes In Stockholders’ Equity (unaudited) for the quarters and nine months ended September 27, 2020 and September 29, 2019	5
		Condensed Consolidated Statements of Cash Flows (unaudited) for the nine months ended September 27, 2020 and September 29, 2019	7
		Notes to the Condensed Consolidated Financial Statements	8
Item	2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item	3	Quantitative and Qualitative Disclosures about Market Risk	36
Item	4	Controls and Procedures	37

PART II		Other Information	38
Item	1	Legal Proceedings	38
Item	1A	Risk Factors	38
Item	2	Unregistered Sales of Equity Securities and Use of Proceeds	39
Item	6	Exhibits	40



(In thousands)	Total Company
Balance as of December 30, 2018	$	140,282
Foreign currency translation	(3,026		)
Balance as of September 29, 2019	$	137,256



(In thousands)	Classification in the Condensed Consolidated Balance Sheet	September 29, 2019
Operating lease right-of-use assets	Miscellaneous assets	$	54,909
Current operating lease liabilities	Accrued expenses and other	$	7,733
Noncurrent operating lease liabilities	Other	56,156
Total operating lease liabilities		$	63,889



	For the Quarter Ended		For the Nine Months Ended
(In thousands)	September 29, 2019
Operating lease cost	$	2,763	$	7,310
Short term and variable lease cost	442		1,454
Total lease cost	$	3,205	$	8,764



(In thousands, except lease term and discount rate)	September 29, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	6,818
Right-of-use assets obtained in exchange for operating lease liabilities⁽¹⁾	$	60,988
Weighted-average remaining lease term	9.9 years
Weighted-average discount rate	4.65		%



(In thousands)	Amount
2019 (3 months ending December 29, 2019)	$	2,284
2020	9,808
2021	9,026
2022	8,577
2023	7,970
Later Years	41,899
Total lease payments	$	79,564
Less: Interest	(15,675		)
Present value of lease liabilities	$	63,889



Reconciliation of operating costs before depreciation & amortization, severance and multiemployer pension plan withdrawal costs (or adjusted operating costs)
	For the Quarters Ended						For the Nine Months Ended
(In thousands)	September 29, 2019		September 30, 2018		% Change		September 29, 2019		September 30, 2018		% Change
Operating costs	$	401,452	$	380,754	5.4	%	$	1,204,241	$	1,132,065	6.4	%
Less:
Depreciation & amortization	15,450		14,847		4.1	%	45,548		43,969		3.6	%
Severance	367		293		25.3	%	2,441		4,926		(50.4	)%
Multiemployer pension plan withdrawal costs	1,204		1,943		(38.0	)%	4,454		5,838		(23.7	)%
Adjusted operating costs	$	384,431	$	363,671	5.7	%	$	1,151,798	$	1,077,332	6.9	%



Exhibit No.

~~10.1~~31.1		Rule 13a-14(a)/15d-14(a) Certification.

~~Credit Agreement, dated~~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 ~~September 10, 2019, among The New York Times Company, as borrower,~~ the ~~financial institutions party thereto, as lenders, Bank~~Sarbanes-Oxley Act of America, N.A., as administrative agent, swing line lender and L/C Issuer, Wells Fargo Securities, LLC and J.P. Morgan Chase Bank, National Association, and BOFA Securities, Inc., as joint lead arrangers and joint book runners2002 ~~(filed as Exhibit 10.1 to the Company’s Form 8-K dated September 11, 2019, and incorporated by reference herein)~~.

~~31.1~~32.2		~~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~~101.INS		~~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).


				THE NEW YORK TIMES COMPANY
				(Registrant)

Date:			November 5, 2020	~~THE NEW YORK TIMES COMPANY~~
		~~(Registrant)~~

~~Date:~~	~~November 6, 2019~~	/s/ Roland A. Caputo
				Roland A. Caputo Executive Vice President and Chief Financial Officer (Principal Financial Officer)