UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended ~~June~~March 27, ~~2021~~2022

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

For the transition period from ___ to ___

Commission file number 1-5837

THE NEW YORK TIMES COMPANY

(Exact name of registrant as specified in its charter)


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

620 Eighth Avenue, New York, New York 10018

(Address and zip code of principal executive offices)

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

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

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A Common Stock

NYT

New York Stock Exchange

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

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

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

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

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

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

Number of shares of each class of the registrant’s common stock outstanding as of ~~July 30, 2021~~April 29, 2022 (exclusive of treasury shares):


Class A Common Stock	~~167,091,902~~166,699,568	shares
Class B Common Stock	781,724	shares

THE NEW YORK TIMES COMPANY

INDEX



PART I	PART I		Financial Information	1	PART I		Financial Information	1
Item	Item	1	Financial Statements	1	Item	1	Financial Statements	1
			Condensed Consolidated Balance Sheets as of June 27, 2021 (unaudited) and December 27, 2020	1			Condensed Consolidated Balance Sheets as of March 27, 2022 (unaudited) and December 26, 2021	1
			Condensed Consolidated Statements of Operations (unaudited) for the quarters and six months ended June 27, 2021 and June 28, 2020	3			Condensed Consolidated Statements of Operations (unaudited) for the quarters ended March 27, 2022 and March 28, 2021	3
			Condensed Consolidated Statements of Comprehensive Income (unaudited) for the quarters and six months ended June 27, 2021 and June 28, 2020	4			Condensed Consolidated Statements of Comprehensive Income (unaudited) for the quarters ended March 27, 2022 and March 28, 2021	4
			Condensed Consolidated Statements of Changes In Stockholders’ Equity (unaudited) for the quarters and six months ended June 27, 2021 and June 28, 2020	5			Condensed Consolidated Statements of Changes In Stockholders’ Equity (unaudited) for the quarters ended March 27, 2022 and March 28, 2021	5
			Condensed Consolidated Statements of Cash Flows (unaudited) for the six months ended June 27, 2021 and June 28, 2020	7			Condensed Consolidated Statements of Cash Flows (unaudited) for the quarters ended March 27, 2022 and March 28, 2021	6
			Notes to the Condensed Consolidated Financial Statements	8			Notes to the Condensed Consolidated Financial Statements	7
Item	Item	2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20	Item	2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item	Item	3	Quantitative and Qualitative Disclosures about Market Risk	37	Item	3	Quantitative and Qualitative Disclosures About Market Risk	39
Item	Item	4	Controls and Procedures	38	Item	4	Controls and Procedures	40

PART II	PART II		Other Information	39	PART II		Other Information	41
Item	Item	1	Legal Proceedings	39	Item	1	Legal Proceedings	41
Item	Item	1A	Risk Factors	39	Item	1A	Risk Factors	41
Item	Item	2	Unregistered Sales of Equity Securities and Use of Proceeds	39	Item	2	Unregistered Sales of Equity Securities and Use of Proceeds	41
Item	Item	6	Exhibits	40	Item	6	Exhibits	42

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

THE NEW YORK TIMES COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)


		June 27, 2021		December 27, 2020			March 27, 2022		December 26, 2021
		(Unaudited)					(Unaudited)
Assets	Assets					Assets
Current assets	Current assets					Current assets
Cash and cash equivalents	Cash and cash equivalents	$	320,871	$	286,079	Cash and cash equivalents	$	169,171	$	319,973
Short-term marketable securities	Short-term marketable securities	338,455		309,080		Short-term marketable securities	52,788		341,075
Accounts receivable (net of allowances of $12,269 in 2021 and $13,797 in 2020)		153,540		183,692
Accounts receivable (net of allowances of $12,234 in 2022 and $12,374 in 2021)						Accounts receivable (net of allowances of $12,234 in 2022 and $12,374 in 2021)	197,492		232,908
Prepaid expenses	Prepaid expenses	36,262		29,487		Prepaid expenses	41,766		33,199
Other current assets	Other current assets	32,110		27,497		Other current assets	25,798		25,553
Total current assets	Total current assets	881,238		835,835		Total current assets	487,015		952,708
Other assets	Other assets					Other assets
Long-term marketable securities	Long-term marketable securities	287,265		286,831		Long-term marketable securities	252,815		413,380
Property, plant and equipment (less accumulated depreciation and amortization of $891,635 in 2021 and $886,149 in 2020)		582,331		594,516
Property, plant and equipment (less accumulated depreciation and amortization of $790,884 in 2022 and $777,637 in 2021)						Property, plant and equipment (less accumulated depreciation and amortization of $790,884 in 2022 and $777,637 in 2021)	570,803		574,952
Goodwill	Goodwill	170,156		171,657		Goodwill	414,200		166,360
Intangible assets, net						Intangible assets, net	343,351		14,246
Deferred income taxes	Deferred income taxes	96,869		99,518		Deferred income taxes	110,628		95,800
Miscellaneous assets	Miscellaneous assets	330,148		319,332		Miscellaneous assets	350,454		346,662
Total assets	Total assets	$	2,348,007	$	2,307,689	Total assets	$	2,529,266	$	2,564,108

See Notes to Condensed Consolidated Financial Statements.

THE NEW YORK TIMES COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS-(Continued)

(In thousands, except share and per share data)


		June 27, 2021		December 27, 2020			March 27, 2022		December 26, 2021
		(Unaudited)					(Unaudited)
Liabilities and stockholders’ equity	Liabilities and stockholders’ equity					Liabilities and stockholders’ equity
Current liabilities	Current liabilities					Current liabilities
Accounts payable	Accounts payable	$	94,480	$	123,157	Accounts payable	$	146,152	$	127,073
Accrued payroll and other related liabilities	Accrued payroll and other related liabilities	101,637		121,159		Accrued payroll and other related liabilities	111,568		166,464
Unexpired subscriptions revenue	Unexpired subscriptions revenue	114,740		105,346		Unexpired subscriptions revenue	154,360		119,296

Accrued expenses and other	Accrued expenses and other	135,660		137,086		Accrued expenses and other	180,933		146,319
Total current liabilities	Total current liabilities	446,517		486,748		Total current liabilities	593,013		559,152
Other liabilities	Other liabilities					Other liabilities

Pension benefits obligation	Pension benefits obligation	317,543		326,555		Pension benefits obligation	291,035		295,104
Postretirement benefits obligation	Postretirement benefits obligation	35,712		38,690		Postretirement benefits obligation	35,413		36,086
Other	Other	129,448		127,585		Other	114,729		133,041
Total other liabilities	Total other liabilities	482,703		492,830		Total other liabilities	441,177		464,231
Stockholders’ equity	Stockholders’ equity					Stockholders’ equity
Common stock of $.10 par value:	Common stock of $.10 par value:					Common stock of $.10 par value:
Class A – authorized: 300,000,000 shares; issued: 2021 – 175,962,272; 2020 – 175,308,672 (including treasury shares: 2021 – 8,870,801; 2020 – 8,870,801)		17,596		17,531
Class B – convertible – authorized and issued shares: 2021 – 781,724; 2020 – 781,724		78		78
Class A – authorized: 300,000,000 shares; issued: 2022 – 176,263,169; 2021 – 175,971,801 (including treasury shares: 2022 – 9,563,601; 2021 – 8,870,801)						Class A – authorized: 300,000,000 shares; issued: 2022 – 176,263,169; 2021 – 175,971,801 (including treasury shares: 2022 – 9,563,601; 2021 – 8,870,801)	17,626		17,597
Class B – convertible – authorized and issued shares: 2022 – 781,724; 2021 – 781,724						Class B – convertible – authorized and issued shares: 2022 – 781,724; 2021 – 781,724	78		78
Additional paid-in capital	Additional paid-in capital	217,565		216,714		Additional paid-in capital	227,815		230,115
Retained earnings	Retained earnings	1,756,198		1,672,586		Retained earnings	1,834,734		1,845,343
Common stock held in treasury, at cost	Common stock held in treasury, at cost	(171,211)		(171,211)		Common stock held in treasury, at cost	(200,245)		(171,211)
Accumulated other comprehensive loss, net of income taxes:	Accumulated other comprehensive loss, net of income taxes:					Accumulated other comprehensive loss, net of income taxes:
Foreign currency translation adjustments	Foreign currency translation adjustments	7,092		8,386		Foreign currency translation adjustments	2,146		3,754
Funded status of benefit plans	Funded status of benefit plans	(412,315)		(421,698)		Funded status of benefit plans	(382,014)		(385,680)
Net unrealized gain on available-for-sale securities		1,779		3,131
Net unrealized loss on available-for-sale securities						Net unrealized loss on available-for-sale securities	(7,069)		(1,276)
Total accumulated other comprehensive loss, net of income taxes	Total accumulated other comprehensive loss, net of income taxes	(403,444)		(410,181)		Total accumulated other comprehensive loss, net of income taxes	(386,937)		(383,202)
Total New York Times Company stockholders’ equity	Total New York Times Company stockholders’ equity	1,416,782		1,325,517		Total New York Times Company stockholders’ equity	1,493,071		1,538,720
Noncontrolling interest	Noncontrolling interest	2,005		2,594		Noncontrolling interest	2,005		2,005
Total stockholders’ equity	Total stockholders’ equity	1,418,787		1,328,111		Total stockholders’ equity	1,495,076		1,540,725
Total liabilities and stockholders’ equity	Total liabilities and stockholders’ equity	$	2,348,007	$	2,307,689	Total liabilities and stockholders’ equity	$	2,529,266	$	2,564,108

See Notes to Condensed Consolidated Financial Statements.

THE NEW YORK TIMES COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share data)


		For the Quarters Ended				For the Six Months Ended					For the Quarters Ended
		June 27, 2021		June 28, 2020		June 27, 2021		June 28, 2020			March 27, 2022		March 28, 2021
		(13 weeks)				(26 weeks)					(13 weeks)
Revenues	Revenues									Revenues
Subscription	Subscription	$	339,217	$	293,189	$	668,301	$	578,623	Subscription	$	371,979	$	329,084
Advertising	Advertising	112,774		67,760		209,890		173,897		Advertising	116,270		97,116
Other	Other	46,506		42,801		93,351		94,866		Other	49,176		46,845
Total revenues	Total revenues	498,497		403,750		971,542		847,386		Total revenues	537,425		473,045
Operating costs	Operating costs									Operating costs
Cost of revenue (excluding depreciation and amortization)	Cost of revenue (excluding depreciation and amortization)	251,358		229,913		502,355		473,397		Cost of revenue (excluding depreciation and amortization)	281,365		250,997
Sales and marketing	Sales and marketing	53,555		39,605		113,708		113,389		Sales and marketing	77,588		60,153
Product development	Product development	39,699		30,983		78,642		61,985		Product development	47,433		38,943
General and administrative	General and administrative	62,283		58,812		118,860		111,673		General and administrative	71,357		56,577
Depreciation and amortization	Depreciation and amortization	14,486		15,631		29,203		30,816		Depreciation and amortization	18,686		14,717
Total operating costs	Total operating costs	421,381		374,944		842,768		791,260		Total operating costs	496,429		421,387
Acquisition-related costs										Acquisition-related costs	34,712		—

Lease termination charge		3,831		0		3,831		0

Operating profit	Operating profit	73,285		28,806		124,943		56,126		Operating profit	6,284		51,658
Other components of net periodic benefit costs	Other components of net periodic benefit costs	2,598		2,149		5,197		4,463		Other components of net periodic benefit costs	1,522		2,599

Interest income and other, net	Interest income and other, net	1,873		2,786		3,384		16,640		Interest income and other, net	1,075		1,511
Income from continuing operations before income taxes	Income from continuing operations before income taxes	72,560		29,443		123,130		68,303		Income from continuing operations before income taxes	5,837		50,570
Income tax expense	Income tax expense	18,243		5,781		27,704		11,787		Income tax expense	1,112		9,461

Net income	Net income	54,317		23,662		95,426		56,516		Net income	4,725		41,109

Net income attributable to The New York Times Company common stockholders	Net income attributable to The New York Times Company common stockholders	$	54,317	$	23,662	$	95,426	$	56,516	Net income attributable to The New York Times Company common stockholders	$	4,725	$	41,109
Average number of common shares outstanding:	Average number of common shares outstanding:									Average number of common shares outstanding:
Basic	Basic	168,012		166,869		167,828		166,725		Basic	167,866		167,647
Diluted	Diluted	168,346		168,083		168,312		167,968		Diluted	168,257		168,165
Basic earnings per share attributable to The New York Times Company common stockholders	Basic earnings per share attributable to The New York Times Company common stockholders	$	0.32	$	0.14	$	0.57	$	0.34	Basic earnings per share attributable to The New York Times Company common stockholders	$	0.03	$	0.25
Diluted earnings per share attributable to The New York Times Company common stockholders	Diluted earnings per share attributable to The New York Times Company common stockholders	$	0.32	$	0.14	$	0.57	$	0.34	Diluted earnings per share attributable to The New York Times Company common stockholders	$	0.03	$	0.24
Dividends declared per share	Dividends declared per share	$	0	$	0	$	0.07	$	0.06	Dividends declared per share	$	0.09	$	0.07

See Notes to Condensed Consolidated Financial Statements.

THE NEW YORK TIMES COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(In thousands)

For the Quarters Ended For the Six Months Ended
June 27, 2021 June 28, 2020 June 27, 2021 June 28, 2020
(13 weeks) (26 weeks)
Net income $ 54,317 $ 23,662 $ 95,426 $ 56,516
Other comprehensive income, before tax:
Gain/(loss) on foreign currency translation adjustments 935 619 (1,767) 365
Pension and postretirement benefits obligation 6,409 6,231 12,815 12,628
Net unrealized (loss)/gain on available-for-sale securities (779) 4,075 (1,846) 4,790
Other comprehensive income, before tax 6,565 10,925 9,202 17,783
Income tax expense 1,756 2,848 2,465 4,763
Other comprehensive income, net of tax 4,809 8,077 6,737 13,020
Comprehensive income attributable to The New York Times Company common stockholders $ 59,126 $ 31,739 $ 102,163 $ 69,536


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


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

See Notes to Condensed Consolidated Financial Statements.

THE NEW YORK TIMES COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

For the Quarters Ended ~~June~~March 27, ~~2021~~2022 and ~~June~~March 28, ~~2020~~2021

(Unaudited)

(In thousands, except share data)

Capital Stock -
Class A
and
Class B Common Additional
Paid-in
Capital Retained
Earnings Common
Stock
Held in
Treasury,
at Cost Accumulated
Other
Comprehensive
Loss, Net of
Income
Taxes Total
New York
Times
Company
Stockholders’
Equity Non-
controlling
Interest Total
Stock-
holders’
Equity
Balance, March 29, 2020 $ 17,552 $ 199,933 $ 1,635,473 $ (171,211) $ (490,033) $ 1,191,714 $ 1,860 $ 1,193,574
Net income — — 23,662 — — 23,662 — 23,662
Dividends — — 23 — — 23 — 23
Other comprehensive income — — — — 8,077 8,077 — 8,077
Issuance of shares:
Stock options – 90,735 Class A shares 9 933 — — — 942 — 942
Restricted stock units vested – 6,516 Class A shares 1 (275) — — — (274) — (274)
Stock-based compensation — 5,027 — — — 5,027 — 5,027
Balance, June 28, 2020 $ 17,562 $ 205,618 $ 1,659,158 $ (171,211) $ (481,956) $ 1,229,171 $ 1,860 $ 1,231,031
Balance, March 28, 2021 $ 17,670 $ 212,802 $ 1,701,860 $ (171,211) $ (408,253) $ 1,352,868 $ 2,594 $ 1,355,462
Net income — — 54,317 — — 54,317 — 54,317
Dividends — — 21 — — 21 — 21
Other comprehensive income — — — — 4,809 4,809 — 4,809
Issuance of shares:
Restricted stock units vested – 45,280 Class A shares 4 (390) — — — (386) — (386)
Stock-based compensation — 5,153 — — — 5,153 — 5,153
Distributions — — — — — — (589) (589)
Balance, June 27, 2021 $ 17,674 $ 217,565 $ 1,756,198 $ (171,211) $ (403,444) $ 1,416,782 $ 2,005 $ 1,418,787


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

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

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

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

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

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


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

~~THE NEW YORK TIMES COMPANY~~

~~CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY~~

~~For the Six Months Ended June 27, 2021 and June 28, 2020~~

~~(Unaudited)~~

~~(In thousands, except share data)~~

Capital Stock -
Class A
and
Class B Common Additional
Paid-in
Capital Retained
Earnings Common
Stock
Held in
Treasury,
at Cost Accumulated
Other
Comprehensive
Loss, Net of
Income
Taxes Total
New York
Times
Company
Stockholders’
Equity Non-
controlling
Interest Total
Stock-
holders’
Equity
Balance, December 29, 2019 $ 17,504 $ 208,028 $ 1,612,658 $ (171,211) $ (494,976) $ 1,172,003 $ 1,860 $ 1,173,863
Net income — — 56,516 — — 56,516 — 56,516
Dividends — — (10,016) — — (10,016) — (10,016)
Other comprehensive income — — — — 13,020 13,020 — 13,020
Issuance of shares: — —
Stock options – 179,510 Class A shares 18 1,855 — — — 1,873 — 1,873
Restricted stock units vested – 141,501 Class A shares 14 (3,897) — — — (3,883) — (3,883)
Performance-based awards – 257,098 Class A shares 26 (7,850) — — — (7,824) — (7,824)
Stock-based compensation — 7,482 — — — 7,482 — 7,482
Balance, June 28, 2020 $ 17,562 $ 205,618 $ 1,659,158 $ (171,211) $ (481,956) $ 1,229,171 $ 1,860 $ 1,231,031
Balance, December 27, 2020 $ 17,609 $ 216,714 $ 1,672,586 $ (171,211) $ (410,181) $ 1,325,517 $ 2,594 $ 1,328,111
Net income — — 95,426 — — 95,426 — 95,426
Dividends — — (11,814) — — (11,814) — (11,814)
Other comprehensive income — — — — 6,737 6,737 — 6,737
Issuance of shares:
Stock options – 323,360 Class A shares 33 2,414 — — — 2,447 — 2,447
Restricted stock units vested – 187,987 Class A shares 18 (4,954) — — — (4,936) — (4,936)
Performance-based awards – 142,253 Class A shares 14 (5,947) — — — (5,933) — (5,933)
Stock-based compensation — 9,338 — — — 9,338 — 9,338
Distributions — — — — — — (589) (589)
Balance, June 27, 2021 $ 17,674 $ 217,565 $ 1,756,198 $ (171,211) $ (403,444) $ 1,416,782 $ 2,005 $ 1,418,787

THE NEW YORK TIMES COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)


		For the Six Months Ended					For the Three Months Ended
		June 27, 2021		June 28, 2020			March 27, 2022		March 28, 2021
		(26 weeks)					(13 weeks)
Cash flows from operating activities	Cash flows from operating activities					Cash flows from operating activities
Net income	Net income	$	95,426	$	56,516	Net income	$	4,725	$	41,109
Adjustments to reconcile net income to net cash provided by operating activities:	Adjustments to reconcile net income to net cash provided by operating activities:					Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization	Depreciation and amortization	29,203		30,816		Depreciation and amortization	18,685		14,717
Lease termination charge		3,831		0

Amortization of right of use asset	Amortization of right of use asset	4,442		4,645		Amortization of right of use asset	5,400		2,166
Stock-based compensation expense	Stock-based compensation expense	9,338		7,482		Stock-based compensation expense	7,054		4,185

Gain on non-marketable equity investment		0		(10,074)

Long-term retirement benefit obligations		(8,866)		(8,524)

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

Fair market value adjustment on life insurance products						Fair market value adjustment on life insurance products	514		208
Other – net	Other – net	(289)		475		Other – net	(12,198)		(1,277)
Changes in operating assets and liabilities:
Changes in operating assets and liabilities, net of business acquisitions:						Changes in operating assets and liabilities, net of business acquisitions:
Accounts receivable – net	Accounts receivable – net	30,152		91,310		Accounts receivable – net	40,930		38,522
Other assets	Other assets	(8,027)		(1,292)		Other assets	(6,646)		(3,768)
Accounts payable, accrued payroll and other liabilities	Accounts payable, accrued payroll and other liabilities	(54,170)		(64,019)		Accounts payable, accrued payroll and other liabilities	(75,571)		(68,428)
Unexpired subscriptions	Unexpired subscriptions	9,394		11,255		Unexpired subscriptions	7,003		9,499
Net cash provided by operating activities	Net cash provided by operating activities	110,434		118,590		Net cash provided by operating activities	(14,659)		32,929
Cash flows from investing activities	Cash flows from investing activities					Cash flows from investing activities
Purchases of marketable securities	Purchases of marketable securities	(326,996)		(278,773)		Purchases of marketable securities	(2,492)		(177,543)
Maturities of marketable securities	Maturities of marketable securities	293,053		228,938		Maturities of marketable securities	442,895		155,782

Business acquisitions		0		(8,055)
Business acquisitions, net of cash acquired						Business acquisitions, net of cash acquired	(515,299)		—
Sales of investments – net	Sales of investments – net	271		4,074		Sales of investments – net	(958)		(70)
Capital expenditures	Capital expenditures	(14,677)		(21,510)		Capital expenditures	(8,580)		(6,394)
Other-net	Other-net	2,017		2,388		Other-net	425		2,017
Net cash used in investing activities	Net cash used in investing activities	(46,332)		(72,938)		Net cash used in investing activities	(84,009)		(26,208)
Cash flows from financing activities	Cash flows from financing activities					Cash flows from financing activities
Long-term obligations:	Long-term obligations:					Long-term obligations:

Dividends paid	Dividends paid	(21,825)		(18,359)		Dividends paid	(11,839)		(10,072)

Payment of contingent consideration						Payment of contingent consideration	(1,724)		—
Capital shares:	Capital shares:					Capital shares:
Proceeds from stock option exercises	Proceeds from stock option exercises	2,441		1,873		Proceeds from stock option exercises	3		2,447

Repurchases						Repurchases	(29,034)		—
Share-based compensation tax withholding	Share-based compensation tax withholding	(10,901)		(11,706)		Share-based compensation tax withholding	(9,328)		(10,483)
Net cash used in financing activities	Net cash used in financing activities	(30,285)		(28,192)		Net cash used in financing activities	(51,922)		(18,108)
Net increase in cash, cash equivalents and restricted cash		33,817		17,460
Net decrease in cash, cash equivalents and restricted cash						Net decrease in cash, cash equivalents and restricted cash	(150,590)		(11,387)
Effect of exchange rate changes on cash	Effect of exchange rate changes on cash	(280)		162		Effect of exchange rate changes on cash	(164)		(341)
Cash, cash equivalents and restricted cash at the beginning of the period	Cash, cash equivalents and restricted cash at the beginning of the period	301,964		247,518		Cash, cash equivalents and restricted cash at the beginning of the period	334,306		301,964
Cash, cash equivalents and restricted cash at the end of the period	Cash, cash equivalents and restricted cash at the end of the period	$	335,501	$	265,140	Cash, cash equivalents and restricted cash at the end of the period	$	183,552	$	290,236

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 ~~June~~March 27, ~~2021,~~2022, and December ~~27, 2020,~~26, 2021, and the results of operations, changes in stockholders’ equity and cash flows of the Company for the periods ended ~~June~~March 27, ~~2021,~~2022, and ~~June~~March 28, ~~2020.~~2021. The Company and its consolidated subsidiaries are referred to collectively as “we,” “us” or “our.” All adjustments necessary for a fair presentation have been included and are of a normal and recurring nature. All significant intercompany accounts and transactions have been eliminated in consolidation. The financial statements were prepared in accordance with the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain notes or other financial information that are normally required by accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted from these interim financial statements. These financial statements, therefore, should be read in conjunction with the Consolidated Financial Statements and related Notes included in our Annual Report on Form 10-K for the year ended December ~~27, 2020.~~26, 2021. Due to the seasonal nature of our business, operating results for the interim periods are not necessarily indicative of a full year’s operations. The fiscal periods included herein comprise 13 ~~and 26~~ weeks for the ~~second~~first quarter.

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

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

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

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

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

Recently Adopted Accounting Pronouncements


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

Recently Issued Accounting Pronouncements

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

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 3. REVENUE

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

~~THE NEW YORK TIMES COMPANY~~

~~NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

advertising, a component of core digital advertising, includes offerings on websites and mobile applications sold directly to marketers by our advertising sales teams. Other digital advertising includes open-market programmatic advertising and creative services fees. Print advertising includes revenue from column-inch ads and classified advertising ~~including line-ads~~ as well as preprinted advertising, also known as freestanding inserts.

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

Subscription, advertising and other revenues were as follows:

For the Quarters Ended For the Six Months Ended
(In thousands) June 27, 2021 As % of total June 28, 2020 As % of total June 27, 2021 As % of total June 28, 2020 As % of total
Subscription $ 339,217 68.1 % $ 293,189 72.6 % $ 668,301 68.8 % $ 578,623 68.3 %
Advertising 112,774 22.6 % 67,760 16.8 % 209,890 21.6 % 173,897 20.5 %
Other (1)
46,506 9.3 % 42,801 10.6 % 93,351 9.6 % 94,866 11.2 %
Total $ 498,497 100.0 % $ 403,750 100.0 % $ 971,542 100.0 % $ 847,386 100.0 %


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

(1) Other revenues include building rental revenue, which is not under the scope of Revenue from Contracts with Customers (Topic 606). Building rental revenue was approximately $7 million and $6 million for the ~~second~~first quarters of ~~2021~~2022 and ~~2020, respectively, and approximately $13 million and $15 million for the first six months of~~ 2021, ~~and 2020,~~ respectively.

The following table summarizes digital and print subscription revenues, which are components of subscription revenues above, for the ~~second~~ quarters ended March 27, 2022, and ~~first six months ended June 27, 2021, and June~~March 28, ~~2020:~~2021:

For the Quarters Ended For the Six Months Ended
(In thousands) June 27, 2021 June 28, 2020 June 27, 2021 June 28, 2020
Digital-only subscription revenues:
News product subscription revenues(1)
$ 170,893 $ 132,922 $ 332,181 $ 251,880
Other product subscription revenues(2)
19,252 13,062 37,564 24,114
Subtotal digital-only subscriptions 190,145 145,984 369,745 275,994
Print subscription revenues:
Domestic home delivery subscription revenues(3)
134,755 132,971 269,150 266,708
Single-copy, NYT International and other subscription revenues(4)
14,317 14,234 29,406 35,921
Subtotal print subscription revenues 149,072 147,205 298,556 302,629
Total subscription revenues $ 339,217 $ 293,189 $ 668,301 $ 578,623
(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 Audm products.
(3) Includes free access to some of the Company’s digital products.
(4) NYT International is the international edition of our print newspaper.

~~The following table summarizes digital and print advertising revenues for the second quarters and first six months ended June 27, 2021, and June 28, 2020:~~

For the Quarters Ended For the Six Months Ended
(In thousands) June 27, 2021 June 28, 2020 June 27, 2021 June 28, 2020
Advertising revenues:
Digital $ 70,995 $ 39,531 $ 130,491 $ 90,689
Print 41,779 28,229 79,399 83,208
Total advertising $ 112,774 $ 67,760 $ 209,890 $ 173,897


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

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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


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

Performance Obligations

We have remaining performance obligations related to digital archive and other licensing and certain advertising contracts. As of ~~June~~March 27, ~~2021,~~2022, the aggregate amount of the transaction price allocated to the remaining performance obligations for contracts with a duration greater than one year was approximately ~~$104~~$128 million. The Company will recognize this revenue as performance obligations are satisfied. We expect that approximately ~~$24~~$35 million, ~~$36~~$25 million and ~~$44~~$68 million will be recognized in the remainder of ~~2021,~~ 2022, 2023 and thereafter through 2028, respectively.

Contract Assets

As of ~~June~~March 27, ~~2021,~~2022, and December ~~27, 2020,~~26, 2021, the Company had ~~$1.9~~$3.6 million and ~~$1.8~~$3.4 million, respectively, in contract assets recorded in the Condensed Consolidated Balance Sheets related to digital archiving licensing revenue. The contract asset is reclassified to Accounts receivable when the customer is invoiced based on the contractual billing schedule.

NOTE 4. MARKETABLE SECURITIES

The Company accounts for its marketable securities as available for sale (“AFS”). The Company recorded ~~$2.4~~$9.7 million and ~~$4.3~~$1.7 million of net unrealized ~~gains~~losses in Accumulated other comprehensive income (“AOCI”) as of ~~June~~March 27, ~~2021,~~2022, and December ~~27, 2020,~~26, 2021, respectively.

109

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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


		June 27, 2021									March 27, 2022
(In thousands)	(In thousands)	Amortized Cost		Gross unrealized gains		Gross unrealized losses		Fair Value		(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value

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

Corporate debt securities	Corporate debt securities	$	110,415	$	496	$	(12)	$	110,899	Corporate debt securities	22,681		12		(157)		22,536
Certificates of deposit		105,954		0		0		105,954
U.S. Treasury securities		74,984		547		(3)		75,528
U.S. governmental agency securities		26,137		16		0		26,153
Commercial paper		19,921		0		0		19,921

Municipal securities										Municipal securities	2,000		—		(16)		1,984
Total short-term AFS securities	Total short-term AFS securities	$	337,411	$	1,059	$	(15)	$	338,455	Total short-term AFS securities	$	53,162	$	16	$	(390)	$	52,788
Long-term AFS securities	Long-term AFS securities									Long-term AFS securities
Corporate debt securities	Corporate debt securities	$	161,767	$	725	$	(123)	$	162,369	Corporate debt securities	$	167,793	$	—	$	(6,365)	$	161,428
U.S. Treasury securities	U.S. Treasury securities	60,377		861		(15)		61,223		U.S. Treasury securities	56,576		—		(1,892)		54,684
U.S. governmental agency securities	U.S. governmental agency securities	51,591		6		(67)		51,530		U.S. governmental agency securities	28,804		—		(850)		27,954
Municipal securities	Municipal securities	12,142		7		(6)		12,143		Municipal securities	8,932		—		(183)		8,749
Total long-term AFS securities	Total long-term AFS securities	$	285,877	$	1,599	$	(211)	$	287,265	Total long-term AFS securities	$	262,105	$	—	$	(9,290)	$	252,815


		December 27, 2020									December 26, 2021
(In thousands)	(In thousands)	Amortized Cost		Gross unrealized gains		Gross unrealized losses		Fair Value		(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value

Short-term AFS securities	Short-term AFS securities									Short-term AFS securities
U.S. Treasury securities										U.S. Treasury securities	$	148,899	$	692	$	(43)	$	149,548
Corporate debt securities	Corporate debt securities	$	129,805	$	504	$	(8)	$	130,301	Corporate debt securities	107,158		245		(69)		107,334
Certificates of deposit	Certificates of deposit	36,525		0		0		36,525		Certificates of deposit	55,551		—		—		55,551
U.S. Treasury securities		79,467		39		(3)		79,503
Commercial paper										Commercial paper	21,145		—		—		21,145
Municipal securities										Municipal securities	3,999		—		(2)		3,997
U.S. governmental agency securities	U.S. governmental agency securities	25,113		61		(3)		25,171		U.S. governmental agency securities	3,500		—		—		3,500
Commercial paper		37,580		0		0		37,580

Total short-term AFS securities	Total short-term AFS securities	$	308,490	$	604	$	(14)	$	309,080	Total short-term AFS securities	$	340,252	$	937	$	(114)	$	341,075
Long-term AFS securities	Long-term AFS securities									Long-term AFS securities
Corporate debt securities	Corporate debt securities	$	134,296	$	1,643	$	(5)	$	135,934	Corporate debt securities	$	242,764	$	149	$	(1,858)	$	241,055
U.S. Treasury securities	U.S. Treasury securities	95,511		2,054		0		97,565		U.S. Treasury securities	119,695		—		(549)		119,146
U.S. governmental agency securities	U.S. governmental agency securities	48,342		19		(13)		48,348		U.S. governmental agency securities	39,498		—		(252)		39,246
Municipal securities	Municipal securities	4,994		0		(10)		4,984		Municipal securities	13,994		—		(61)		13,933
Total long-term AFS securities	Total long-term AFS securities	$	283,143	$	3,716	$	(28)	$	286,831	Total long-term AFS securities	$	415,951	$	149	$	(2,720)	$	413,380

1110

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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


		June 27, 2021													March 27, 2022
		Less than 12 Months				12 Months or Greater				Total					Less than 12 Months				12 Months or Greater				Total
(In thousands)	(In thousands)	Fair Value		Gross unrealized losses		Fair Value		Gross unrealized losses		Fair Value		Gross unrealized losses		(In thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses

Short-term AFS securities	Short-term AFS securities													Short-term AFS securities
U.S. Treasury securities														U.S. Treasury securities	$	24,589	$	(217)	$	—	$	—	$	24,589	$	(217)
Corporate debt securities	Corporate debt securities	$	28,033	$	(12)	$	0	$	0	$	28,033	$	(12)	Corporate debt securities	13,887		(157)		—		—		13,887		(157)
U.S. Treasury securities		22,670		(3)		0		0		22,670		(3)

Municipal securities														Municipal securities	1,984		(16)		—		—		1,984		(16)
Total short-term AFS securities	Total short-term AFS securities	$	50,703	$	(15)	$	0	$	0	$	50,703	$	(15)	Total short-term AFS securities	$	40,460	$	(390)	$	—	$	—	$	40,460	$	(390)
Long-term AFS securities	Long-term AFS securities													Long-term AFS securities
Corporate debt securities	Corporate debt securities	$	50,552	$	(123)	$	0	$	0	$	50,552	$	(123)	Corporate debt securities	$	154,995	$	(6,253)	$	6,433	$	(112)	$	161,428	$	(6,365)
U.S. Treasury securities	U.S. Treasury securities	11,212		(15)		0		0		11,212		(15)		U.S. Treasury securities	51,923		(1,805)		2,761		(87)		54,684		(1,892)
U.S. governmental agency securities	U.S. governmental agency securities	42,428		(67)		0		0		42,428		(67)		U.S. governmental agency securities	27,954		(850)		—		—		27,954		(850)
Municipal securities	Municipal securities	5,141		(6)		0		0		5,141		(6)		Municipal securities	8,749		(183)		—		—		8,749		(183)
Total long-term AFS securities	Total long-term AFS securities	$	109,333	$	(211)	$	0	$	0	$	109,333	$	(211)	Total long-term AFS securities	$	243,621	$	(9,091)	$	9,194	$	(199)	$	252,815	$	(9,290)


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

Short-term AFS securities	Short-term AFS securities													Short-term AFS securities
U.S. Treasury securities														U.S. Treasury securities	$	61,018	$	(43)	$	—	$	—	$	61,018	$	(43)
Corporate debt securities	Corporate debt securities	$	33,735	$	(8)	$	0	$	0	$	33,735	$	(8)	Corporate debt securities	53,148		(69)		—		—		53,148		(69)
U.S. Treasury securities		20,133		(3)		0		0		20,133		(3)
U.S. governmental agency securities		4,999		(2)		8,749		(1)		13,748		(3)
Municipal securities														Municipal securities	1,998		(2)		—		—		1,998		(2)

Total short-term AFS securities	Total short-term AFS securities	$	58,867	$	(13)	$	8,749	$	(1)	$	67,616	$	(14)	Total short-term AFS securities	$	116,164	$	(114)	$	—	$	—	$	116,164	$	(114)
Long-term AFS securities	Long-term AFS securities													Long-term AFS securities
Corporate debt securities	Corporate debt securities	$	6,717	$	(5)	$	0	$	0	$	6,717	$	(5)	Corporate debt securities	$	224,022	$	(1,858)	$	—	$	—	$	224,022	$	(1,858)

U.S. Treasury securities														U.S. Treasury securities	119,146		(549)		—		—		119,146		(549)
U.S. governmental agency securities	U.S. governmental agency securities	26,236		(13)		0		0		26,236		(13)		U.S. governmental agency securities	39,246		(252)		—		—		39,246		(252)
Municipal securities	Municipal securities	4,984		(10)		0		0		4,984		(10)		Municipal securities	13,933		(61)		—		—		13,933		(61)
Total long-term AFS securities	Total long-term AFS securities	$	37,937	$	(28)	$	0	$	0	$	37,937	$	(28)	Total long-term AFS securities	$	396,347	$	(2,720)	$	—	$	—	$	396,347	$	(2,720)

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

As of ~~June~~March 27, ~~2021~~2022, and December ~~27, 2020,~~26, 2021, we did not intend to sell and it was not likely that we would be required to sell these investments before recovery of their amortized cost basis, which may be at maturity. Unrealized losses related to these investments are primarily due to interest rate fluctuations as opposed to changes in credit quality. Therefore, as of ~~June~~March 27, ~~2021~~2022, and December ~~27, 2020,~~26, 2021, we have recognized 0no losses or allowance for credit losses related to AFS securities.

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

As of ~~June~~March 27, ~~2021, and December 27, 2020,~~2022, our short-term and long-term marketable securities had remaining maturities of less than one month to 12 months and 13 months to 3632 months, respectively. See Note 8 for more information regarding the fair value of our marketable securities.

NOTE 5. BUSINESS COMBINATION

The Athletic Acquisition

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

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

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

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


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

Total purchase price	$	523,466

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

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

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

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

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

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

~~NOTE 5. GOODWILL AND INTANGIBLES~~value of subscriber relationships is estimated using a multi-period excess earnings valuation method, and the fair value of developed technology and content archive is estimated using a replacement cost method.

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


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

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

Goodwill and Intangibles

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


~~(In thousands)~~	~~Total Company~~
~~Balance as of December 27, 2020~~	$	~~171,657~~
~~Foreign currency translation~~	~~(1,501)~~
~~Balance as of June 27, 2021~~	$	~~170,156~~


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

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

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


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

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Amortization expense for intangible assets from the acquisition of The Athletic included in Depreciation and amortization in our Condensed Consolidated Statements of Operations was $4.5 million as of March 27, 2022. The estimated aggregate amortization expense for the remainder of 2022 and each of the following fiscal years ending December 31 is presented below:


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

The aggregate carrying amount of intangible assets of ~~$15.2~~$343.4 million, which includes an indefinite-lived intangible of $9.0 million, is included in ~~Miscellaneous~~Intangible assets, net in our Condensed Consolidated Balance Sheets as of ~~June~~March 27, ~~2021.~~2022.

NOTE 6. INVESTMENTS

Non-Marketable Equity Securities

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

As of ~~June~~March 27, ~~2021,~~2022, and December ~~27, 2020,~~26, 2021, non-marketable equity securities included in Miscellaneous assets in our Condensed Consolidated Balance Sheets had a carrying value of ~~$20.6~~$28.8 million and ~~$20.9~~$27.9 million, respectively. During the first six months of 2020, we recorded a $10.1 million 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 the investment and a $7.6 million unrealized gain due to the mark to market of the remaining investment, and is included in ~~Interest income and other, net~~ ~~in our Condensed Consolidated Statements of Operations.~~

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 $2.4~~was $1.9 million and ~~$3.9 million in the second quarters of 2021 and 2020, respectively, and $5.0 million and $7.7~~$2.6 million in the first ~~six months~~quarters of ~~2021~~2022 and ~~2020,~~2021, respectively.

Interest income and other, net

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


		For the Quarters Ended				For the Six Months Ended					For the Quarters Ended
(In thousands)	(In thousands)	June 27, 2021		June 28, 2020		June 27, 2021		June 28, 2020		(In thousands)	March 27, 2022		March 28, 2021
Interest income and other expense, net ~~(1)~~	Interest income and other expense, net ~~(1)~~	$	2,053	$	2,965	$	3,743	$	17,004	Interest income and other expense, net ~~(1)~~	$	1,222	$	1,689

Interest expense	Interest expense	(180)		(179)		(359)		(364)		Interest expense	(147)		(178)

Total interest income and other, net	Total interest income and other, net	$	1,873	$	2,786	$	3,384	$	16,640	Total interest income and other, net	$	1,075	$	1,511

~~(1)~~ ~~The six months ended June 28, 2020 includes a $10.1 million gain related to a non-marketable equity investment transaction.~~

1314

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 ~~June~~March 27, ~~2021,~~2022, and December ~~27, 2020,~~26, 2021, from the Condensed Consolidated Balance Sheets to the Condensed Consolidated Statements of Cash Flows is as follows:


(In thousands)	(In thousands)	June 27, 2021		December 27, 2020		(In thousands)	March 27, 2022		December 26, 2021
Reconciliation of cash, cash equivalents and restricted cash	Reconciliation of cash, cash equivalents and restricted cash					Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents	Cash and cash equivalents	$	320,871	$	286,079	Cash and cash equivalents	$	169,171	$	319,973
Restricted cash included within other current assets		299		686

Restricted cash included within miscellaneous assets	Restricted cash included within miscellaneous assets	14,331		15,199		Restricted cash included within miscellaneous assets	14,381		14,333
Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows	Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows	$	335,501	$	301,964	Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows	$	183,552	$	334,306

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

Revolving Credit Facility

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

As of ~~June~~March 27, ~~2021,~~2022, there were 0no outstanding borrowings under the Credit Facility and the Company was in compliance with the financial covenants contained in the documents governing the Credit Facility.

Severance Costs

We recognized 0no severance costs in the ~~second~~first quarter of ~~2021~~2022 and ~~$6.3 million in~~$0.4 severance costs in the ~~second~~first quarter of ~~2020, and $0.4 million and $6.7 million in the first six months of~~ 2021, ~~and 2020,~~ respectively. These costs are recorded in General and administrative costs in our Condensed Consolidated Statements of Operations.

We had a severance liability of ~~$2.4~~$1.9 million and ~~$5.0~~$2.1 million included in Accrued expenses and other in our Condensed Consolidated Balance Sheets as of ~~June~~March 27, ~~2021,~~2022, and December ~~27, 2020,~~26, 2021, respectively.

Acquisition-Related Costs

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

NOTE 8. FAIR VALUE MEASUREMENTS

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

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

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

Level 3–unobservable inputs for the asset or liability.

1415

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 ~~June~~March 27, ~~2021,~~2022, and December ~~27, 2020:~~26, 2021:


(In thousands)	(In thousands)	June 27, 2021								December 27, 2020								(In thousands)	March 27, 2022								December 26, 2021
		Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3			Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:	Assets:																	Assets:
Short-term AFS securities (1)	Short-term AFS securities (1)																	Short-term AFS securities (1)
U.S. Treasury securities																		U.S. Treasury securities	$	28,268	$	—	$	28,268	$	—	$	149,548	$	—	$	149,548	$	—
Corporate debt securities	Corporate debt securities	$	110,899	$	0	$	110,899	$	0	$	130,301	$	0	$	130,301	$	0	Corporate debt securities	22,536		—		22,536		—		107,334		—		107,334		—
Certificates of deposit	Certificates of deposit	105,954		0		105,954		0		36,525		0		36,525		0		Certificates of deposit	—		—		—		—		55,551		—		55,551		—
U.S. Treasury securities		75,528		0		75,528		0		79,503		0		79,503		0
Municipal securities																		Municipal securities	1,984		—		1,984		—		3,997		—		3,997		—
U.S. governmental agency securities	U.S. governmental agency securities	26,153		0		26,153		0		25,171		0		25,171		0		U.S. governmental agency securities	—		—		—		—		3,500		—		3,500		—
Commercial paper	Commercial paper	19,921		0		19,921		0		37,580		0		37,580		0		Commercial paper	—		—		—		—		21,145		—		21,145		—
Total short-term AFS securities	Total short-term AFS securities	$	338,455	$	0	$	338,455	$	0	$	309,080	$	0	$	309,080	$	0	Total short-term AFS securities	$	52,788	$	—	$	52,788	$	—	$	341,075	$	—	$	341,075	$	—
Long-term AFS securities (1)	Long-term AFS securities (1)																	Long-term AFS securities (1)
Corporate debt securities	Corporate debt securities	$	162,369	$	0	$	162,369	$	0	$	135,934	$	0	$	135,934	$	0	Corporate debt securities	$	161,428	$	—	$	161,428	$	—	$	241,055	$	—	$	241,055	$	—
U.S. Treasury securities	U.S. Treasury securities	61,223		0		61,223		0		97,565		0		97,565		0		U.S. Treasury securities	54,684		—		54,684		—		119,146		—		119,146		—
U.S. governmental agency securities	U.S. governmental agency securities	51,530		0		51,530		0		48,348		0		48,348		0		U.S. governmental agency securities	27,954		—		27,954		—		39,246		—		39,246		—
Municipal securities	Municipal securities	12,143		0		12,143		0		4,984		0		4,984		0		Municipal securities	8,749		—		8,749		—		13,933		—		13,933		—
Total long-term AFS securities	Total long-term AFS securities	$	287,265	$	0	$	287,265	$	0	$	286,831	$	0	$	286,831	$	0	Total long-term AFS securities	$	252,815	$	—	$	252,815	$	—	$	413,380	$	—	$	413,380	$	—
Liabilities:	Liabilities:																	Liabilities:
Deferred compensation (2)(3)	Deferred compensation (2)(3)	$	19,754	$	19,754	$	0	$	0	$	22,245	$	22,245	$	0	$	0	Deferred compensation (2)(3)	$	16,467	$	16,467	$	—	$	—	$	21,101	$	21,101	$	—	$	—
Contingent consideration	Contingent consideration	$	7,450	$	0	$	0	$	7,450	$	8,431	$	0	$	0	$	8,431	Contingent consideration	$	5,858	$	—	$	—	$	5,858	$	7,450	$	—	$	—	$	7,450

(1) We classified these investments as Level 2 since the fair value is based on market observable inputs for investments with similar terms and maturities.

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

(3) The Company invests the assets associated with the deferred compensation liability in life insurance products. Our investments in life insurance products are included in Miscellaneous assets in our Condensed Consolidated Balance Sheets, and were ~~$51.1~~$50.8 million as of ~~June~~March 27, ~~2021,~~2022, and ~~$49.2~~$52.5 million as of December ~~27, 2020.~~26, 2021. The fair value of these assets is measured using the net asset value per share (or its equivalent) and has not been classified in the fair value hierarchy.

1516

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Level 3 Liabilities

The contingent consideration liability is related to the 2020 acquisition of substantially all the assets and certain liabilities of Serial Productions, LLC (the “Serial acquisition”) and represents contingent payments based on the achievement of certain operational targets, as defined in the acquisition agreement, over the 5five years following the acquisition. The Company estimated the fair value using a probability-weighted discounted cash flow model. The estimate of the fair value of contingent consideration requires subjective assumptions to be made regarding probabilities assigned to operational targets and the discount rate. As the fair value is based on significant unobservable inputs, this is a Level 3 liability.

The following table presents changes in the contingent consideration balances for the ~~quarter~~quarters ended March 27, 2022 and ~~six months ended June 27,~~March 28, 2021:


		Quarter ended		Six months ended			For the Quarters Ended
(In thousands)	(In thousands)	June 27, 2021		June 27, 2021		(In thousands)	March 27, 2022		March 28, 2021
Balance at the beginning of the period ~~(1)~~	Balance at the beginning of the period ~~(1)~~	$	7,728	$	8,431	Balance at the beginning of the period ~~(1)~~	$	7,450	$	8,431

Payments	Payments	(862)		(862)		Payments	(1,724)		—
Fair value adjustments ~~(2)~~(1)	Fair value adjustments ~~(2)~~(1)	584		(119)		Fair value adjustments ~~(2)~~(1)	132		(703)
Contingent consideration at the end of the period	Contingent consideration at the end of the period	$	7,450	$	7,450	Contingent consideration at the end of the period	$	5,858	$	7,728

(1) There were no transactions involving contingent consideration during the quarter and six months ended June 28, 2020. The contingent consideration reflected above relates to the Serial acquisition, which was completed during the third quarter of 2020.

~~(2)~~ Fair value adjustments are included in General and administrative expenses in our Condensed Consolidated Statements of Operations.

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

NOTE 9. PENSION AND OTHER POSTRETIREMENT BENEFITS

Pension

Single-Employer Plans

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

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

The components of net periodic pension cost were as follows:


		For the Quarters Ended													For the Quarters Ended
		June 27, 2021						June 28, 2020							March 27, 2022						March 28, 2021
(In thousands)	(In thousands)	Qualified Plans		Non- Qualified Plans		All Plans		Qualified Plans		Non- Qualified Plans		All Plans		(In thousands)	Qualified Plans		Non- Qualified Plans		All Plans		Qualified Plans		Non- Qualified Plans		All Plans
Service cost	Service cost	$	2,276	$	0	$	2,276	$	2,607	$	0	$	2,607	Service cost	$	2,882	$	—	$	2,882	$	2,276	$	—	$	2,276
Interest cost	Interest cost	7,629		1,088		8,717		11,742		1,649		13,391		Interest cost	8,837		1,284		10,121		7,629		1,088		8,717
Expected return on plan assets	Expected return on plan assets	(12,678)		0		(12,678)		(17,745)		0		(17,745)		Expected return on plan assets	(13,807)		—		(13,807)		(12,677)		—		(12,677)
Amortization of actuarial loss	Amortization of actuarial loss	5,057		1,822		6,879		5,655		1,522		7,177		Amortization of actuarial loss	3,266		1,643		4,909		5,055		1,821		6,876
Amortization of prior service credit	Amortization of prior service credit	(486)		0		(486)		(486)		0		(486)		Amortization of prior service credit	(486)		—		(486)		(486)		—		(486)

Net periodic pension cost (1)	Net periodic pension cost (1)	$	1,798	$	2,910	$	4,708	$	1,773	$	3,171	$	4,944	Net periodic pension cost (1)	$	692	$	2,927	$	3,619	$	1,797	$	2,909	$	4,706

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

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

1617

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

For the Six Months Ended
June 27, 2021 June 28, 2020
(In thousands) Qualified
Plans Non-
Qualified
Plans All
Plans Qualified
Plans Non-
Qualified
Plans All
Plans
Service cost $ 4,552 $ 0 $ 4,552 $ 5,214 $ 0 $ 5,214
Interest cost 15,258 2,176 17,434 23,484 3,297 26,781
Expected return on plan assets (25,355) 0 (25,355) (35,481) 0 (35,481)
Amortization of actuarial loss 10,113 3,642 13,755 11,310 3,043 14,353
Amortization of prior service credit (972) 0 (972) (972) 0 (972)
Net periodic pension cost (1)
$ 3,596 $ 5,818 $ 9,414 $ 3,555 $ 6,340 $ 9,895

~~(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 six months of 2021 and 2020, we made pension contributions of $4.2 million and $4.6 million, respectively, to the APP. We expect contributions in 2021 to total approximately $9 million to satisfy minimum funding requirements.

Other Postretirement Benefits

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


		For the Quarters Ended				For the Six Months Ended					For the Quarters Ended
(In thousands)	(In thousands)	June 27, 2021		June 28, 2020		June 27, 2021		June 28, 2020		(In thousands)	March 27, 2022		March 28, 2021
Service cost	Service cost	$	13	$	7	$	26	$	14	Service cost	$	12	$	13
Interest cost	Interest cost	141		257		282		513		Interest cost	183		141
Amortization of actuarial loss	Amortization of actuarial loss	852		763		1,704		1,526		Amortization of actuarial loss	823		852
Amortization of prior service credit	Amortization of prior service credit	(836)		(1,223)		(1,672)		(2,279)		Amortization of prior service credit	(236)		(836)
Net periodic postretirement benefit cost/(income) (1)		$	170	$	(196)	$	340	$	(226)
Net periodic postretirement benefit cost (1)										Net periodic postretirement benefit cost (1)	$	782	$	170

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

NOTE 10. INCOME TAXES

The Company had income tax expense of ~~$18.2~~$1.1 million and ~~$27.7~~$9.5 million in the ~~second quarter~~first quarters of 2022 and first six months of 2021, respectively. The Company had income tax expense of $5.8 million and $11.8 million in the second quarter and first six months of 2020, respectively. The Company’s effective tax rates from continuing operations were 25.1% and 22.5% for the second quarter and first six months of 2021, respectively. The Company’s effective tax rates from continuing operations were ~~19.6%~~19.1% and ~~17.3%~~18.7% for the ~~second quarter~~first quarters of 2022 and ~~first six months of 2020,~~2021, respectively. The ~~increase~~decrease in income tax expense and increase in ~~the second quarter and first six months of 2021 is primarily due to higher income from continuing operations in those periods. The Company received a~~effective tax ~~benefit in the second quarter of 2020 from a reduction in the Company’s reserve for uncertain tax positions, and~~rate in the first quarter of ~~both~~2022 were primarily due to lower income from continuing operations resulting from costs related to The Athletic acquisition. Excluding the tax benefit resulting from the special item related to the acquisition of The Athletic, tax expense in the first quarter of 2022 exceeded tax expense in the first quarter of 2021 ~~and 2020~~primarily due to a lower benefit in the first quarter of 2022 from stock ~~price~~ appreciation on stock-based awards that settled in the ~~quarter, which~~quarters.

Beginning in 2022, the Tax Cuts and Jobs Act of 2017 eliminates the option to deduct research and development expenditures immediately in the ~~case~~year incurred and instead requires taxpayers to capitalize and amortize such expenditures over five years. If Congress does not repeal or defer the effective date of ~~2020, resulted in lower than statutory~~this provision, we expect our 2022 cash tax ~~rates in the second quarter~~payments will increase significantly as compared to 2021. We would also expect significant increases to our deferred tax assets as we begin to capitalize our research and ~~first six months of 2020.~~development expenditures.

NOTE 11. EARNINGS PER SHARE

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

Earnings per share is computed using both basic shares and diluted shares. The difference between basic and diluted shares is that diluted shares include the dilutive effect of the assumed exercise of outstanding securities. Our stock options,

~~THE NEW YORK TIMES COMPANY~~

~~NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

stock-settled long-term performance awards and restricted stock units could have a significant impact on diluted shares. The difference between basic and diluted shares of approximately ~~0.3~~0.4 million and 0.5 million in the ~~second quarter~~first quarters of 2022 and ~~first six months of~~ 2021, ~~respectively, and 1.2 million in each of the second quarter and first six months of 2020,~~respectively. In 2022, dilution resulted primarily from the dilutive effect of certain restricted stock ~~options,~~units, performance awards and stock options. In 2021, dilution resulted primarily from the dilutive effect of certain performance awards, restricted stock ~~units.~~units and stock options.

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

There were approximately 0.2 million and 0.1 million restricted stock units excluded from the computation of diluted earnings per share in the first ~~six months~~quarters of ~~2021~~2022 and ~~2020,~~2021, respectively, because they were ~~anti-dilutive, and 0~~anti-dilutive. There were no anti-dilutive stock options or stock-settled long-term performance awards ~~excluded in the same periods. There were approximately 0.3 million restricted stock units~~ excluded from the computation of diluted earnings per share in the ~~second quarter~~first quarters of ~~2021, because they were anti-dilutive,~~2022 and ~~0 anti-dilutive stock options or stock-settled long-term performance awards excluded in the same period.~~2021.

NOTE 12. SUPPLEMENTAL STOCKHOLDERS’ EQUITY INFORMATION

In ~~2015,~~February 2022, the Board of Directors ~~authorized up to $101.1~~approved a $150 million ~~of repurchases of shares of the Company’s~~ Class A ~~Common Stock. As of June 27, 2021, repurchases under this~~stock repurchase program. The authorization ~~totaled $84.9 million (excluding commissions) and $16.2 million remained. Our Board of Directors has authorized us to purchase~~provides that Class A shares may be purchased from time to time ~~subject to~~as market conditions ~~and~~warrant, through open market purchases,

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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

As of March 27, 2022, repurchases under this authorization ~~since 2016.~~totaled approximately $29.0 million (excluding commissions) and approximately $121.0 million remained.

The following table summarizes the changes in AOCI by component as of ~~June~~March 27, ~~2021:~~2022:


(In thousands)	(In thousands)	Foreign Currency Translation Adjustments		Funded Status of Benefit Plans		Net Unrealized Gain on Available-For-Sale Securities		Total Accumulated Other Comprehensive Loss		(In thousands)	Foreign Currency Translation Adjustments		Funded Status of Benefit Plans		Net Unrealized Loss on Available-For-Sale Securities		Total Accumulated Other Comprehensive Loss
Balance as of December 27, 2020		$	8,386	$	(421,698)	$	3,131	$	(410,181)
Other comprehensive income before reclassifications, before tax		(1,767)		0		(1,846)		(3,613)
Balance as of December 26, 2021										Balance as of December 26, 2021	$	3,754	$	(385,680)	$	(1,276)	$	(383,202)
Other comprehensive loss before reclassifications, before tax										Other comprehensive loss before reclassifications, before tax	(2,209)		—		(7,916)		(10,125)
Amounts reclassified from accumulated other comprehensive loss, before tax	Amounts reclassified from accumulated other comprehensive loss, before tax	0		12,815		0		12,815		Amounts reclassified from accumulated other comprehensive loss, before tax	—		5,010		—		5,010
Income tax (benefit)/expense	Income tax (benefit)/expense	(473)		3,432		(494)		2,465		Income tax (benefit)/expense	(601)		1,344		(2,123)		(1,380)
Net current-period other comprehensive (loss)/ income, net of tax	Net current-period other comprehensive (loss)/ income, net of tax	(1,294)		9,383		(1,352)		6,737		Net current-period other comprehensive (loss)/ income, net of tax	(1,608)		3,666		(5,793)		(3,735)

Balance as of June 27, 2021		$	7,092	$	(412,315)	$	1,779	$	(403,444)
Balance as of March 27, 2022										Balance as of March 27, 2022	$	2,146	$	(382,014)	$	(7,069)	$	(386,937)

The following table summarizes the reclassifications from AOCI for the ~~six months~~quarter ended ~~June~~March 27, ~~2021:~~2022:

(In thousands)

Detail about accumulated other comprehensive loss components

Amounts reclassified from accumulated other comprehensive loss

Affects line item in the statement where net income is presented

Funded status of benefit plans:

Amortization of prior service credit(1)

~~(2,644)~~(722)

Other components of net periodic benefit costs

Amortization of actuarial loss(1)

~~15,459~~5,732

Other components of net periodic benefit costs

Total reclassification, before tax(2)

~~12,815~~5,010

Income tax expense

~~3,432~~1,344

Income tax expense

Total reclassification, net of tax

~~9,383~~3,666

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

(2) There were no reclassifications relating to noncontrolling interest for the ~~six months~~quarter ended ~~June~~March 27, ~~2021.~~2022.

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


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

1819

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 13. SEGMENT INFORMATION

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

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

The following tables present segment information:


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

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)


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

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


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

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)


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

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


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

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


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

NOTE 14. CONTINGENT LIABILITIES

Legal Proceedings

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

NOTE 15. SUBSEQUENT EVENTS

On ~~June 30, 2021,~~December 9, 2020, we entered into an agreement to lease and subsequently sell approximately 4 acres of land at our ~~Board of Directors approved a quarterly dividend of $0.07 per share~~printing and distribution facility in College Point, N.Y., subject to certain conditions. The lease commenced on ~~our Class A and Class B common stock that was paid on July 22, 2021, to all stockholders of record as~~April 11, 2022. At the time of the ~~close~~lease expiration in February 2025, we will sell the parcel to the lessee for approximately $36 million. The transaction is accounted for as a sales-type lease and as a result, we recognized a gain of ~~business on July 12, 2021.~~

approximately $34 million (net of commissions) at the time of lease commencement.

1922

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

EXECUTIVE OVERVIEW

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

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

Our main operating costs are employee-related costs.

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

Financial Highlights

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

•Diluted earnings per share from continuing operations were ~~$0.32~~$0.03 and ~~$0.14~~$0.24 for the ~~second~~first quarters of ~~2021~~2022 and ~~2020,~~2021, respectively. Diluted earnings per share from continuing operations excluding severance, non-operating retirement costs and special items discussed below under “ Non-GAAP Financial Measures” (or “adjusted diluted earnings per share,” a non-GAAP measure) were ~~$0.36~~$0.19 and ~~$0.18~~$0.26 for the ~~second~~first quarters of ~~2021~~2022 and ~~2020,~~2021, respectively.

•~~The Company had an operating~~Operating profit ~~of $73.3~~decreased 87.8% to $6.3 million in the ~~second~~first quarter of ~~2021,~~2022, compared with ~~$28.8~~$51.7 million in the ~~second~~first quarter of ~~2020.~~2021. Operating profit before depreciation, amortization, severance, multiemployer pension plan withdrawal costs and special items discussed below under “Non-GAAP Financial Measures” (or “adjusted operating profit,” a non-GAAP measure) ~~increased~~decreased 10.6% to ~~$92.9~~$60.9 million in the ~~second~~first quarter of ~~2021 from $52.1~~2022 compared with $68.1 million in the ~~second~~first quarter of ~~2020.~~2021.

•Total revenues increased ~~23.5%~~13.6% to ~~$498.5~~$537.4 million in the ~~second~~first quarter of ~~2021~~2022 from ~~$403.8~~$473.0 million in the ~~second~~first quarter of ~~2020.~~2021.

•~~Subscription~~Total subscription revenues increased ~~15.7%~~13.0% to $372.0 million in the ~~second~~first quarter of ~~2021 compared with~~2022 from $329.1 million in the ~~same prior-year period.~~first quarter of 2021. Paid digital-only ~~subscriptions~~subscribers totaled approximately ~~7,133,000~~8,328,000 with 9,620,000 paid digital-only subscriptions at the end of the ~~second~~first quarter of ~~2021,~~2022, a net increase of ~~142,000~~387,000 digital-only subscribers and 382,000 digital-only subscriptions compared with the end of the fourth quarter of 2021 and a net increase of 1,354,000 digital-only subscriptions compared with the end of the first quarter of 2021. Of the 142,000 total net additions, 77,000 came from the Company’s digital news product, while 65,000 came from the Company’s Cooking, Games and Audm products. We expect total net subscription additions in 2021 to be in the range of the number of total net subscription additions in 2019, though it remains difficult to predict with precision.

•Total advertising revenues increased ~~66.4%~~19.7% to $116.3 in the ~~second~~first quarter of ~~2021 compared with~~2022 from $97.1 in the ~~same prior-year period,~~first quarter of 2021, due to an increase of ~~79.6%~~12.6% in digital advertising revenues and an increase of ~~48.0%~~30.9% in print advertising revenues.

•Operating costs increased ~~12.4%~~17.8% to $496.4 million in the first quarter of 2022 from $421.4 million in the ~~second~~first quarter of ~~2021 from $374.9 million compared with the second quarter of 2020.~~2021. Operating costs before depreciation, amortization, severance and multiemployer pension plan withdrawal costs (or “adjusted operating costs,” a non-GAAP measure) increased ~~15.4%~~17.7% in the ~~second~~first quarter of ~~2021~~2022 to ~~$405.6~~$476.5 million from ~~$351.6~~$404.9 million in the ~~second~~first quarter of ~~2020.~~2021.

•Operating costs that we refer to as “technology costs,” consisting of product development costs as well as components of costs of revenues and general and administrative costs as described below, increased 22.0% to $87.9 million compared with $72.1 million in the first quarter of 2021.

Impact of Covid-19 Pandemic

~~Given the impact of the~~The global Covid-19 pandemic, ~~on our business in 2020, we believe that certain comparisons of our operating results in 2021~~efforts to ~~2019 provide useful context for our 2021 results. We~~contain it and the resulting disruptions continue to have ~~included supplemental tables comparing the operating results in 2021 to 2020~~widespread, rapidly evolving, and ~~to 2019 (see “Supplemental Financial Information”), as well as discussion comparing the second quarter and first six months in 2021 to 2020 and 2019.~~

~~The Covid-19 pandemic impacted our business in various ways, including~~unpredictable impacts on ~~both our operating revenues~~global society, economies, financial markets and operating expenses. Beginning in the first quarter of 2020, we experienced significant growth in the number of subscriptions to our digital news and other products, which we believe was attributable in part to an increase in traffic given the news

environment and as a result of the pandemic. More recently, we have seen these pandemic-related trends subside and we expect total net subscription additions in 2021 to be in the range of the number of total net subscription additions in 2019, though it remains difficult to predict with precision. Revenues from the single-copy and bulk sales of our print newspaper (which include our international edition and collectively represent less than 5% of our total subscription revenues) were adversely affected as a result of widespread business ~~closures, increased remote working and reductions in travel. The worldwide economic slowdown caused by the pandemic also led to a significant decline~~practices. See “Item 1A — Risk Factors” in our ~~advertising revenues in 2020 as advertisers reduced their spending. More recently, we experienced increasing demand~~Annual Report on Form 10-K for ~~advertising with~~ the ~~recovery of the broader market. Our live events business was and continues to be adversely affected by the impacts of the Covid-19 pandemic.~~

~~In 2020 we incurred less media expense as we decreased marketing spend due to a heightened news cycle, lower print production and distribution costs due to less demand~~year ended December 26, 2021, for print copies of the newspaper, lower costs related to our advertising business as a result of lower variable expenses in connection with lower advertising revenues and lower travel and entertainment costs as a result of the Covid-19 pandemic. More recently we have begun increasing some of our spending in these areas. We also incurred some additional expenses in response to the pandemic, including certain enhanced employee benefits; however these expenses have not yet been significant. We expect to incur additional costs as we prepare for our employees to return to our headquarters building and other offices, and may incur significant additional costs as circumstances evolve, including in connection with potential operational changes.

~~At this time, the~~more information. The full impact that the ~~Covid-19~~ pandemic will have on our business, operations and financial results is ~~uncertain. The extent to which the pandemic will continue to impact us~~uncertain and will depend on numerous evolving factors and future developments, including the ~~scope and duration of the pandemic (including the~~ extent of ~~a resurgence);~~variants and resurgences; the effect of ongoing vaccination and mitigation efforts; the impact of the pandemic on economic conditions and the companies with which we do ~~business; governmental,~~ business, ~~and other actions;~~including our advertisers; the status of travel restrictions; and changes in consumer behavior in response to the pandemic, among many other factors. We will continue to actively monitor the situation and may take further actions that alter our business operations as may be required by federal, state, local or foreign authorities, or that we determine are appropriate. ~~Please see “Item 1A — Risk Factors”~~

As a result of the global Covid-19 pandemic, the vast majority of our employees have worked remotely since March 2020. As we transition to hybrid work with employees working both from the office and remotely, we have invested and expect to continue to invest in our ~~Annual Report on Form 10-K for the year ended December 27, 2020, for more information.~~Company Headquarters and other offices as well as in technological improvements.

2124

RESULTS OF OPERATIONS

The following table presents our consolidated financial results:


		For the Quarters Ended						For the Six Months Ended							For the Quarters Ended
(In thousands)	(In thousands)	June 27, 2021		June 28, 2020		% Change		June 27, 2021		June 28, 2020		% Change		(In thousands)	March 27, 2022		March 28, 2021		% Change
Revenues	Revenues													Revenues
Subscription	Subscription	$	339,217	$	293,189	15.7	%	$	668,301	$	578,623	15.5	%	Subscription	$	371,979	$	329,084	13.0	%
Advertising	Advertising	112,774		67,760		66.4	%	209,890		173,897		20.7	%	Advertising	116,270		97,116		19.7	%
Other	Other	46,506		42,801		8.7	%	93,351		94,866		(1.6)	%	Other	49,176		46,845		5.0	%
Total revenues	Total revenues	498,497		403,750		23.5	%	971,542		847,386		14.7	%	Total revenues	537,425		473,045		13.6	%
Operating costs	Operating costs													Operating costs
Cost of revenue (excluding depreciation and amortization)	Cost of revenue (excluding depreciation and amortization)	251,358		229,913		9.3	%	502,355		473,397		6.1	%	Cost of revenue (excluding depreciation and amortization)	281,365		250,997		12.1	%
Sales and marketing	Sales and marketing	53,555		39,605		35.2	%	113,708		113,389		0.3	%	Sales and marketing	77,588		60,153		29.0	%
Product development	Product development	39,699		30,983		28.1	%	78,642		61,985		26.9	%	Product development	47,433		38,943		21.8	%
General and administrative	General and administrative	62,283		58,812		5.9	%	118,860		111,673		6.4	%	General and administrative	71,357		56,577		26.1	%
Depreciation and amortization	Depreciation and amortization	14,486		15,631		(7.3)	%	29,203		30,816		(5.2)	%	Depreciation and amortization	18,686		14,717		27.0	%
Total operating costs	Total operating costs	421,381		374,944		12.4	%	842,768		791,260		6.5	%	Total operating costs	496,429		421,387		17.8	%
Acquisition-related costs														Acquisition-related costs	34,712		—		*

Lease termination charge		3,831		—		*		3,831		—		*
Operating profit	Operating profit	73,285		28,806		*		124,943		56,126		*		Operating profit	6,284		51,658		(87.8)	%
Other components of net periodic benefit costs	Other components of net periodic benefit costs	2,598		2,149		20.9	%	5,197		4,463		16.4	%	Other components of net periodic benefit costs	1,522		2,599		(41.4)	%

Interest income and other, net	Interest income and other, net	1,873		2,786		(32.8)	%	3,384		16,640		(79.7)	%	Interest income and other, net	1,075		1,511		(28.9)	%
Income from continuing operations before income taxes	Income from continuing operations before income taxes	72,560		29,443		*		123,130		68,303		80.3	%	Income from continuing operations before income taxes	5,837		50,570		(88.5)	%
Income tax expense	Income tax expense	18,243		5,781		*		27,704		11,787		*		Income tax expense	1,112		9,461		(88.2)	%

Net income	Net income	54,317		23,662		*		95,426		56,516		68.8	%	Net income	4,725		41,109		(88.5)	%

Net income attributable to The New York Times Company common stockholders	Net income attributable to The New York Times Company common stockholders	$	54,317	$	23,662	*		$	95,426	$	56,516	68.8	%	Net income attributable to The New York Times Company common stockholders	$	4,725	$	41,109	(88.5)	%

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

2225

~~SUPPLEMENTAL FINANCIAL INFORMATION~~

Second Quarter
2021 2020 2021 vs 2020 % Change 2019 2021 vs 2019 % Change
Revenues
Digital $ 190,145 $ 145,984 30.3 % $ 112,635 68.8 %
Print 149,072 147,205 1.3 % 157,821 (5.5) %
Subscription revenues 339,217 293,189 15.7 % 270,456 25.4 %
Digital 70,995 39,531 79.6 % 58,026 22.4 %
Print 41,779 28,229 48.0 % 62,735 (33.4) %
Advertising revenues 112,774 67,760 66.4 % 120,761 (6.6) %
Other revenues 46,506 42,801 8.7 % 45,041 3.3 %
Total revenues 498,497 403,750 23.5 % 436,258 14.3 %
Operating costs
Cost of revenue (excluding depreciation and amortization) 251,358 229,913 9.3 % 244,939 2.6 %
Sales and marketing
53,555 39,605 35.2 % 62,280 (14.0) %
Product development 39,699 30,983 28.1 % 25,526 55.5 %
General and administrative 62,283 58,812 5.9 % 50,400 23.6 %
Depreciation and amortization 14,486 15,631 (7.3) % 15,180 (4.6) %
Total operating costs 421,381 374,944 12.4 % 398,325 5.8 %
Lease termination charge 3,831 — * — *
Operating profit $ 73,285 $ 28,806 * $ 37,933 93.2 %
* Represents a change equal to or in excess of 100% or not meaningful.

Six Months
2021 2020 2021 vs 2020 % Change 2019 2021 vs 2019 % Change
Revenues
Digital $ 369,745 $ 275,994 34.0 % $ 222,494 66.2 %
Print 298,556 302,629 (1.3) % 318,772 (6.3) %
Subscription revenues 668,301 578,623 15.5 % 541,266 23.5 %
Digital 130,491 90,689 43.9 % 113,569 14.9 %
Print 79,399 83,208 (4.6) % 132,280 (40.0) %
Advertising revenues 209,890 173,897 20.7 % 245,849 (14.6) %
Other revenues 93,351 94,866 (1.6) % 88,205 5.8 %
Total revenues 971,542 847,386 14.7 % 875,320 11.0 %
Operating costs
Cost of revenue (excluding depreciation and amortization) 502,355 473,397 6.1 % 484,125 3.8 %
Sales and marketing
113,708 113,389 0.3 % 137,094 (17.1) %
Product development 78,642 61,985 26.9 % 49,433 59.1 %
General and administrative 118,860 111,673 6.4 % 102,039 16.5 %
Depreciation and amortization 29,203 30,816 (5.2) % 30,098 (3.0) %
Total operating costs 842,768 791,260 6.5 % 802,789 5.0 %
Lease termination charge 3,831 — * — *
Operating profit $ 124,943 $ 56,126 * $ 72,531 72.3 %
* Represents a change equal to or in excess of 100% or not meaningful.

Revenues

Subscription Revenues

Subscription revenues consist of revenues from subscriptions to our digital and print products (which include our news product, as well as The Athletic and our Games, Cooking, Audm and ~~Audm~~Wirecutter products), and single-copy and bulk sales of our print products (which represent less than 5% of these revenues). Subscription revenues are based on both the number of copies of the printed newspaper sold and digital-only subscriptions, and the rates charged to the respective customers.

~~2021~~2022 Compared with ~~2020~~2021

Subscription revenues increased ~~15.7% in the second quarter and increased 15.5%~~13.0% in the first ~~six months~~quarter of ~~2021~~2022 compared with the same prior-year ~~periods. The increase in the second quarter and first six months was~~period, primarily due to ~~year-over-year~~ growth ~~of 25.8%~~ in the number of ~~subscriptions~~subscribers to the Company’s digital-only products ~~as well as~~and a benefit from subscriptions graduating to higher prices from introductory promotional ~~pricing. Subscription revenues also benefited from an increase in~~pricing, as well as the inclusion of subscription revenue from ~~our domestic home delivery print~~The Athletic. The increases in subscription ~~products during both periods, primarily due to an increase in home delivery prices.However, for the first six months of 2021 compared with the same prior-year period, the increase attributable to higher home delivery subscription prices was more than~~revenue were slightly offset by a decrease in print subscription revenue primarily attributable to lower domestic home delivery revenue, which declined 2.2%, as well as lower single-copy revenue. There is no print subscription revenue generated from ~~single-copy~~The Athletic.

The Company ended the first quarter of 2022 with approximately 9,108,000 paid subscribers with approximately 10,390,000 paid subscriptions across its print and ~~bulk sales as~~digital products. Of the 9,108,000 subscribers, 8,328,000 were paid digital-only subscribers with 9,620,000 paid digital-only subscriptions. As a result of ~~business closures, increased levels~~the acquisition of ~~remote working~~The Athletic during the quarter, the Company added The Athletic’s approximately 1,101,000 subscribers and ~~reductions in travel due to~~1,233,000 subscriptions as of the ~~Covid-19 pandemic as well as ongoing secular trends.~~date of acquisition.

~~Paid~~There was a net increase of 387,000 digital-only subscribers and 382,000 digital-only subscriptions ~~totaled approximately 7,133,000 at~~compared with the end of the ~~second~~fourth quarter of 2021 and a net increase of ~~142,000~~1,354,000 digital-only subscriptions compared with the end of the first quarter of ~~2021~~2021. These net increases included approximately 16,000 net subscriber and a24,000 net increase of 1,463,000 compared with the end of the second quarter of 2020. We experienced significant growth in the number of subscriptions to our digital-only products in 2020, and we do not expect the 2020 growth rate to be sustainable or indicative of results for future periods. Net subscription additions ~~for our digital-only products were modest in~~to The Athletic since the ~~second quarter of 2021, especially in comparison to the significant growth in the number of subscriptions we saw in the second quarter of 2020 at the beginning of the Covid-19 pandemic.~~acquisition. In ~~the second quarter, which is traditionally our slowest quarter of the year for net digital subscription additions, we saw improvement in net additions each month~~addition, during the quarter, ~~since a low in March. We expect total net subscription additions in 2021~~the Company expanded the terms of domestic home delivery print subscriptions to beinclude access to its Games product and canceled approximately 67,000 standalone Games subscriptions held by home delivery subscribers. This change reduced digital-only subscriptions by 67,000 in the ~~range of the number of total net subscription additions in 2019, although it remains difficult to predict with precision.~~quarter, but had no impact on subscriber numbers.

~~Digital-only news product subscriptions~~Print domestic home delivery subscribers totaled approximately ~~5,334,000~~780,000 with 770,000 print subscriptions at ~~the end of the second quarter of 2021, a 77,000 net increase compared with~~ the end of the first quarter of ~~2021~~2022, a net decrease of 15,000 subscribers and ~~a 944,000 increase~~14,000 subscriptions compared with the end of the ~~second quarter of 2020. Other product subscriptions (which include our Games, Cooking and Audm products) totaled approximately 1,799,000 at the end of the second~~fourth quarter of 2021 ~~an increase~~and a net decrease of ~~65,000~~57,000 subscribers and 55,000 subscriptions compared with the end of the first quarter of ~~2021 and an increase of 519,000 subscriptions compared with the end of the second quarter of 2020.~~

Print domestic home delivery subscriptions totaled approximately 803,000 at the end of the second quarter of 2021, a net decrease of 22,000 compared with the end of the first quarter of 2021 and a net decrease of 37,000 compared with the end of the second quarter of 2020.

~~2021 Compared with 2019~~

Subscription revenues increased 25.4% in the second quarter and increased 23.5% in the first six months of 2021 compared with the same prior-year periods in 2019. The increase in the second quarter and first six months of 2021 was primarily due to year-over-year growth of 88.7% in the number of subscriptions to the Company’s digital-only products. These increases were partially offset by a decrease in print subscription revenue from single-copy and bulk sales as a result of business closures, increased levels of remote working and reductions in travel due to the Covid-19 pandemic as well as secular trends. Single-copy and bulk sales decreased 38.9% and 38.8% in the second quarter and the first six months, respectively.

2021.

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


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

We offer a digital subscription package (or “bundle”) that includes access to our digital news, Games, Cooking and Wirecutter products. We also offer standalone digital subscriptions to our digital news product, as well as to The Athletic, and our Games, Cooking, Audm and Wirecutter products. The Company has set out below the number of ~~2021~~digital-only, print and ~~2020:~~

For the Quarters Ended For the Six Months Ended
(In thousands) June 27, 2021 June 28, 2020 % Change June 27, 2021 June 28, 2020 % Change
Digital-only subscription revenues:
News product subscription revenues(1)
$ 170,893 $ 132,922 28.6 % $ 332,181 $ 251,880 31.9 %
Other product subscription revenues(2)
19,252 13,062 47.4 % 37,564 24,114 55.8 %
Subtotal digital-only subscription revenues 190,145 145,984 30.3 % 369,745 275,994 34.0 %
Print subscription revenues:
Domestic home delivery subscription revenues(3)
134,755 132,971 1.3 % 269,150 266,708 0.9 %
Single-copy, NYT International and other subscription revenues(4)
14,317 14,234 0.6 % 29,406 35,921 (18.1) %
Subtotal print subscription revenues 149,072 147,205 1.3 % 298,556 302,629 (1.3) %
Total subscription revenues $ 339,217 $ 293,189 15.7 % $ 668,301 $ 578,623 15.5 %
(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 Audm products.
(3) Includes free access to some of the Company’s digital products.
(4) NYT International is the international edition of our print newspaper.
total subscribers to the Company’s products as well as certain additional metrics, including average revenue per subscriber. A digital-only subscriber is defined as a subscriber who has subscribed (and provided a valid method of payment) for the right to access one or more of the Company’s digital products.

The following table summarizes digital and print ~~subscriptions~~subscribers as of the end of the ~~second~~first quarters of 2022 and 2021, and ~~2020:~~fourth quarter of 2021:

Quarters Ended
(In thousands) June 27, 2021 June 28, 2020 % Change
Digital-only subscriptions:
News product subscriptions(1)
5,334 4,390 21.5 %
Other product subscriptions(2)
1,799 1,280 40.5 %
Subtotal digital-only subscriptions 7,133 5,670 25.8 %
Print subscriptions 803 840 (4.4) %
Total subscriptions 7,936 6,510 21.9 %
(1) Includes 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 standalone subscriptions to the Company’s Games, Cooking and Audm products.


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

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


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

2527

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


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

We believe that the significant growth over the last several years in subscriptions to our products demonstrates the success of our “subscription-first” strategy and the willingness of our readers to pay for high-quality journalism. The Company is increasing its emphasis on subscriber growth rather than growth of total subscriptions. The following charts illustrate the growth in net digital-only ~~subscription additions~~subscribers and corresponding subscription revenues as well as the relative stability of our print domestic home delivery subscription ~~products since the launch of the digital pay model in 2011.~~ products.

(1) Amounts may not add due to rounding.

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

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

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

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

2629

Advertising Revenues

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

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


		For the Quarters Ended						For the Six Months Ended							For the Quarters Ended
(In thousands)	(In thousands)	June 27, 2021		June 28, 2020		% Change		June 27, 2021		June 28, 2020		% Change		(In thousands)	March 27, 2022		March 28, 2021		% Change
Advertising revenues:	Advertising revenues:													Advertising revenues:
Digital	Digital	$	70,995	$	39,531	79.6	%	$	130,491	$	90,689	43.9	%	Digital	$	67,014	$	59,496	12.6	%
Print	Print	41,779		28,229		48.0	%	79,399		83,208		(4.6)	%	Print	49,256		37,620		30.9	%
Total advertising	Total advertising	$	112,774	$	67,760	66.4	%	$	209,890	$	173,897	20.7	%	Total advertising	$	116,270	$	97,116	19.7	%

~~2021~~2022 Compared with ~~2020~~2021

Digital advertising revenues, which represented 63.0% of total advertising revenues in the second quarter of 2021, increased $31.5 million, or 79.6%, to $71.0 million compared with $39.5 million in the same prior-year period. The increase was primarily driven by higher direct-sold advertising, including traditional display and podcasts, as well as the impact of the comparison to weak digital advertising revenues in the prior year period caused by reduced advertiser spending during the start of the Covid-19 pandemic. Core digital advertising revenue increased $27.6 million due to growth in direct-sold display advertising and podcast advertising revenues. Direct-sold display impressions increased 77%, while the average rate grew 24%. Other digital advertising revenue increased $3.9 million, primarily due to a 78% increase in creative services fees, as well as a 12.3% increase in open-market programmatic advertising revenue. Programmatic impressions decreased by 47%, while the average rate increased 107%.

~~Digital advertising revenues, which represented 62.2%~~57.6% of total advertising revenues in the first ~~six months~~quarter of ~~2021,~~2022, increased ~~$39.8~~$7.5 million, or ~~43.9%~~12.6%, to ~~$130.5~~$67.0 million compared with ~~$90.7~~$59.5 million in the same prior-year ~~period. The increase was primarily driven by higher direct-sold advertising, including traditional display and podcasts, as well as the impact~~period, of the comparison to weak digital advertising revenues in the prior year period caused by reduced advertiser spending during the start of the Covid-19 pandemic. Core digital advertising revenue increased $37.1 million due to growth in direct-sold display advertising revenue and podcast advertising revenues. Direct-sold display impressions increased 16%, while the average rate grew 31%. Other digital advertising revenue increased $2.7 million, primarily due to a 31% increase in creative services fees. Open-market programmatic advertising revenue was flat to prior year as programmatic impressions decreased by 39% offsetting the average rate increase of 63%.

~~Print advertising revenues,~~ which ~~represented 37.0% of total advertising revenues in the second quarter of 2021, increased $13.6~~$1.8 million, or ~~48.0%~~23.7%, ~~to $41.8 million compared with $28.2 million in~~was contributed by The Athletic following the same prior-year period. Print advertising revenues, which represented 37.8% of total advertising revenues in the first six months of 2021, declined $3.8 million, or 4.6%, to $79.4 million compared with $83.2 million in the same prior-year period. The increase in the second quarter of 2021 was primarily in the luxury, media and technology categories, largely due to the impact of the comparison to weak print advertising revenues in the second quarter of 2020 caused by reduced advertiser spending by businesses negatively impacted by the start of the Covid-19 pandemic. The increase in the second quarter of 2021 was partially offset by secular trends. The decline in the first six months of 2021 reflected reduced spending in the first quarter of 2021 on print advertising by businesses negatively impacted by the Covid-19 pandemic and secular trends, partially offset by higher print advertising revenues in the second quarter of 2021 due to the impact of the comparison to weak print advertising revenues in the second quarter of 2020. Decreases, primarily in the entertainment, travel and real estate categories were partially offset by an increase in the media category. We expect reduced advertising spending by these businesses, along with secular trends, to continue to adversely affect our print advertising revenues. Some of our print advertising revenues may not return to pre-pandemic levels once economic conditions improve.

~~2021 Compared with 2019~~

~~Digital advertising revenues for the second quarter of 2021 increased $13.0 million, or 22.4%, to $71.0 million compared with $58.0 million in the second quarter of 2019.~~acquisition. The increase was primarily driven by higher direct-sold advertising, including traditional display and podcasts. Core digital advertising revenue increased ~~$18.5~~$10.3 million, which includes $1.8 million from The Athletic, due to growth in ~~podcast~~direct-sold display advertising ~~revenues~~ and ~~direct-sold display~~podcast advertising revenues. Direct-sold display impressions increased ~~13%~~7%, while the average rate grew ~~24%~~19%. Other digital advertising revenue decreased ~~$5.5~~$2.8 million, primarily due to ~~the closure of our HelloSociety and Fake Love digital marketing agencies, partially offset by~~ a ~~4.0% increase~~16% decrease in creative services fees, as well as a 14.3% decrease in open-market programmatic advertising revenue. Programmatic impressions decreased by ~~24%~~36%, while the average rate increased ~~31%.~~

Digital advertising revenues for the first six months of 2021 increased $16.9 million, or 14.9%, to $130.5 million compared with $113.6 million in the first six months of 2019. The increase was primarily driven by higher direct-sold advertising, including traditional display and podcasts. Core digital advertising revenue increased $26.5 million due to growth in podcast advertising revenues and direct-sold display advertising revenue. Direct-sold display impressions decreased 4%, while the average rate grew 25%. Other digital advertising revenue decreased $9.6 million, primarily due to the closure of our HelloSociety and Fake Love digital marketing agencies, partially offset by a 7.2% increase in open-market programmatic advertising revenue. Programmatic impressions decreased by 3%, while the average rate increased 10%32%.

Print advertising revenues, ~~for~~which represented 42.4% of total advertising revenues in the ~~second~~first quarter of ~~2021 declined $20.9~~2022, increased $11.6 million, or ~~33.4%~~30.9%, to ~~$41.8~~$49.3 million compared with ~~$62.7~~$37.6 million in the same ~~period of 2019. Print~~prior-year period. There is no print advertising ~~revenues for~~revenue generated from The Athletic. The increase in the first ~~six months~~quarter of ~~2021 declined $52.9 million, or 40.0%, to $79.4 million compared with $132.3 million~~2022 was primarily in the ~~same period of 2019. The declines in both periods reflected reduced spending on print advertising by businesses negatively~~entertainment and luxury categories, which were more severely impacted by the Covid-19 pandemic ~~as well as continued secular trends.~~in the first quarter of 2021.

Other Revenues

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

~~2021~~2022 Compared with ~~2020~~2021

Other revenues increased ~~8.7% in the second quarter of 2021 and decreased 1.6%~~5.0% in the first ~~six months~~quarter of ~~2021,~~2022, compared with the same prior-year ~~periods. The increase in the second quarter of 2021 was~~period, primarily as a result of higher Wirecutter affiliate referral revenues. The decrease in the first six months of 2021 was primarily a result of fewer television episodes as well as lower building rental revenue, live events revenue and commercial printing revenue ~~partially offset by~~as we began printing several News Corporation publications in our College Point, N.Y., printing and distribution facility in mid-2021, and higher Wirecutter affiliate referral ~~revenues.~~revenues mainly due to Wirecutter’s presence on our core news website (NYTimes.com) homepage resulting in increased views. These increases were partially offset by lower television series revenues as no new episodes aired in 2022 compared to 2021.

Building rental revenue from the leasing of floors in the Company Headquarters totaled ~~$6.6~~$7.1 million and ~~$7.3 million in the second quarters of 2021 and 2020, respectively, and $12.8 millionand $15.2~~$6.2 million in the first ~~six months~~quarters of 2022 and 2021, ~~and 2020,~~ respectively.

~~2021 Compared with 2019~~

Other revenues increased 3.3% in the second quarter of 2021 and increased 5.8% in the first six months, compared with the same periods in 2019. The increase in the second quarter of 2021 was primarily a result of higher Wirecutter affiliate referral revenues and licensing revenue related to Facebook News, partially offset by fewer television episodes and lower live events and commercial printing revenue. The increase in the first six months of 2021 was primarily a result of higher Wirecutter affiliate referral revenues and licensing revenue related to Facebook News, partially offset by lower live events revenue, lower commercial printing revenue and fewer television episodes.

2830

Operating Costs

Operating costs were as follows:


		For the Quarters Ended						For the Six Months Ended							For the Quarters Ended
(In thousands)	(In thousands)	June 27, 2021		June 28, 2020		% Change		June 27, 2021		June 28, 2020		% Change		(In thousands)	March 27, 2022		March 28, 2021		% Change
Operating costs:	Operating costs:													Operating costs:
Cost of revenue (excluding depreciation and amortization)(1)	Cost of revenue (excluding depreciation and amortization)(1)	$	251,358	$	229,913	9.3	%	$	502,355	$	473,397	6.1	%	Cost of revenue (excluding depreciation and amortization)(1)	$	281,365	$	250,997	12.1	%
Sales and marketing	Sales and marketing	53,555		39,605		35.2	%	113,708		113,389		0.3	%	Sales and marketing	77,588		60,153		29.0	%
Product development(1)	Product development(1)	39,699		30,983		28.1	%	78,642		61,985		26.9	%	Product development(1)	47,433		38,943		21.8	%
General and administrative(1)	General and administrative(1)	62,283		58,812		5.9	%	118,860		111,673		6.4	%	General and administrative(1)	71,357		56,577		26.1	%
Depreciation and amortization	Depreciation and amortization	14,486		15,631		(7.3)	%	29,203		30,816		(5.2)	%	Depreciation and amortization	18,686		14,717		27.0	%
Total operating costs	Total operating costs	$	421,381	$	374,944	12.4	%	$	842,768	$	791,260	6.5	%	Total operating costs	$	496,429	$	421,387	17.8	%
(1)Technology costs, which include product development costs and certain components of cost of revenue and general and administrative costs as described below, increased 22.0% to $87.9 million compared with $72.1 million the first quarter of 2021.														(1)Technology costs, which include product development costs and certain components of cost of revenue and general and administrative costs as described below, increased 22.0% to $87.9 million compared with $72.1 million the first quarter of 2021.

Cost of Revenue (excluding depreciation and amortization)

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

~~2021~~2022 Compared with ~~2020~~2021

Cost of revenue increased in the ~~second~~first quarter of ~~2021~~2022 by ~~$21.4~~$30.4 million, or ~~9.3%~~12.1%, compared with the ~~second~~first quarter of ~~2020,~~2021. The increase is largely due to higher journalism costs of ~~$17.9~~$22.1 million, higher subscriber servicing costs of ~~$2.9~~$5.0 million, and higher ~~advertising servicing costs of $2.8 million. The increases were partially offset by lower~~ print production and distribution costs of $2.5 million. The increase in journalism costs was largely driven by growth in the number of employees who work in the newsroom and on our Games, Cooking, Audm and ~~audio,~~Wirecutter products, as well as the inclusion of $10.8 million in journalism costs ~~in connection with the production of audio content and a higher incentive compensation accrual.~~from The Athletic. The increase in subscriber servicing costs was primarily due to higher credit card processing fees and third-party commissions due to increased subscriptions. ~~Advertising servicing costs increased primarily due to higher incentive compensation and higher outside services costs.~~ The ~~decrease~~increase in print production and distribution costs was largely due to ~~lower outside printing~~an increase in newsprint pricing and ~~distribution costs.~~

higher compensation and benefits. Technology costs in Cost of revenue, which include costs related to content delivery and subscriber technology, increased 12.3%to $24.5 million compared with $21.8 million in the first six months of 2021 by $29.0 million, or 6.1%, compared with the first six months of 2020, largely due to higher journalism costs of $27.1 million, higher subscriber servicing costs of $7.6 million, and higher digital content delivery costs of $4.2 million. The increases were partially offset by lower print production and distribution costs of $11.7 million. The increase in journalism costs was largely driven by growth in the number of employees in the newsroom, Games, Cooking and audio, costs in connection with the production of audio content and a higher incentive compensation accrual. This cost growth was partially offset by lower content creation costs as a result of fewer television episodes. The increase in subscriber servicing costs was primarily due to higher credit card processing fees and third-party commissions due to increased subscriptions. Digital content delivery costs increased due to a higher incentive compensation accrual and higher cloud storage costs. The decrease in print production and distribution costs was largely due to lower newsprint consumption and pricing, as well as lower outside printing and distribution costs.

~~2021 Compared with 2019~~

~~Cost of revenue increased in the second~~ quarter of 2021 by $6.4 million, or 2.6%, compared with the second quarter of 2019, largely due to higher journalism costs of $19.8 million, higher subscriber servicing costs of $5.7 million, and higher digital content delivery costs of $5.3 million. The increases were partially offset by lower print production and distribution costs of $20.0 million and lower advertising servicing costs of $4.4 million. The increase in journalism costs was largely driven by growth in the number of employees in the newsroom, Games, Cooking and audio, costs in connection with the production of audio content and a higher incentive compensation accrual. The increase in subscriber servicing costs was primarily due to higher credit card processing fees and third-party commissions due to increased subscriptions. Digital content delivery costs increased due to an increase in the number of employees and higher cloud-related costs. The decrease in print production and distribution costs was largely due to lower distribution costs, lower newsprint consumption and pricing, and lower outside printing costs. Advertising servicing costs decreased primarily as a result of the closure of our HelloSociety and Fake Love digital marketing agencies, as well as lower volume of creative services campaigns and live events.2021.

Cost of revenue increased in the first six months of 2021 by $18.2 million, or 3.8%, compared with the first six months of 2019, largely due to higher journalism costs of $42.8 million, higher subscriber servicing costs of $11.8 million, and higher digital content delivery costs of $11.5 million. The increases were partially offset by lower print production and distribution costs of $40.0 million and lower advertising costs of $7.8 million. The increase in journalism costs was largely driven by growth in the number of employees in the newsroom, Games, Cooking and audio, costs in connection with the production of audio content and a higher incentive compensation accrual. The increase in subscriber servicing costs was primarily due to higher credit card processing fees and third-party commissions due to increased subscriptions. Digital content delivery costs increased due to growth in the number of employees and higher cloud storage costs. The decrease in print production and distribution costs was largely due to fewer print copies produced and lower newsprint pricing, as well as lower distribution costs and outside printing costs. Advertising servicing costs decreased primarily as a result of the closure of our HelloSociety and Fake Love digital marketing agencies as well as fewer live events.

Sales and Marketing

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

~~2021 Compared with 2020~~

Sales and marketing costs in the second quarter of 2021 increased by $14.0 million, or 35.2%, compared with the second quarter of 2020, primarily due to higher subscription-related media spending, which the Company had reduced during the start of the Covid-19 pandemic.

Sales and marketing costs in the first six months of 2021 remained relatively flat compared with the first six months of 2020. The increase in marketing costs resulting from higher subscription-related media Media expenses ~~was partially offset by lower advertising sales costs.~~

~~Media expenses,~~is a component of sales and marketing costs that represents the cost to promote our subscription business, increased to $29.0 million in the second quarter of 2021 from $16.5 million in the second quarter of 2020 and increased to $64.9 million in the first six months of 2021 from $61.9 million in the first six months of 2020 as the Company increased its marketing spend.business.

~~2021~~2022 Compared with ~~2019~~

~~Sales and marketing costs in the second quarter of~~ 2021 decreased by $8.7 million, or 14.0%, compared with the second quarter of 2019, primarily as a result of the closure of our HelloSociety and Fake Love digital marketing agencies and lower media expenses.

Sales and marketing costs in the first ~~six months~~quarter of ~~2021 decreased~~2022 increased by ~~$23.4~~$17.4 million, or ~~17.1%~~29.0%, compared with the first ~~six months~~quarter of ~~2019.~~2021. The ~~decrease~~increase is primarily due to higher media expenses and the inclusion of $3.1 million in sales and marketing costs ~~are primarily a result of the factors identified above.~~from The Athletic.

Media expenses ~~decreased~~increased to ~~$29.0 million in the second quarter of 2021 from $33.9 million in the second quarter of 2019 and decreased to $64.9~~$46.3 million in the first ~~six months~~quarter of ~~2021~~2022 from ~~$78.7~~$35.9 million in the first ~~six months~~quarter of ~~2019~~2021 largely as ~~the Company reduced its~~a result of higher brand marketing ~~spend during the Covid-19 pandemic.~~expenses.

Product Development

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

~~2021~~2022 Compared with ~~2020~~2021

Product development costs in the ~~second~~first quarter of ~~2021~~2022 increased by ~~$8.7~~$8.5 million, or ~~28.1%~~21.8%, compared with the ~~second~~first quarter of ~~2020,~~2021. The increase was largely due to growth in the number of digital product development employees in connection with digital subscription strategic initiatives as well as ~~a higher incentive compensation accrual.~~

~~Product~~the inclusion of $2.3 million in product development costs ~~in the first six months of 2021 increased by $16.7 million, or 26.9%, compared with the first six months of 2020, largely due to the factors identified above.~~

~~2021 Compared with 2019~~

~~Product~~from The Athletic. All product development costs in the second quarter of 2021 increased by $14.2 million, or 55.5%, compared with the second quarter of 2019, largely due to growth in the number of digital product development employees to support our digital subscription strategic initiatives as well as a higher incentive compensation accrual.are technology costs.

~~Product development costs in the first six months of 2021 increased by $29.2 million, or 59.1%, compared with the first six months of 2019, largely due to the factors identified above.~~

General and Administrative Costs

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

~~2021~~

2022 Compared with ~~2020~~2021

General and administrative costs in the ~~second~~first quarter of ~~2021~~2022 increased by ~~$3.5~~$14.8 million, or ~~5.9%~~26.1%, compared with the ~~second~~first quarter of ~~2020,~~2021. The increase is primarily due to growth in the number of employees ~~higher outside services~~as well as the inclusion of $1.7 million in general and ~~a higher incentive compensation accrual, partially offset by severance expense~~administrative costs from The Athletic. Technology costs in ~~the second quarter of 2020 compared with no expense in the second quarter of 2021.~~

General and administrative, which include costs related to enterprise technology and information security, increased 41.0% million to $16.0 million compared with $11.3 million in the first six months of 2021 increased by $7.2 million, or 6.4%, compared with the first six months of 2020, primarily due to a higher incentive compensation accrual, higher outside services and growth in the number of employees, partially offset by a severance charge in the second quarter of ~~2020, a favorable fair market value adjustment in 2021, and lower building operations and maintenance costs in~~ 2021.

~~2021 Compared with 2019~~

General and administrative costs in the second quarter of 2021 increased by $11.9 million, or 23.6%, compared with the second quarter of 2019, primarily due to growth in the number of employees, mainly in the enterprise technology and human resources departments in support of employee growth in other areas, higher outside services and a higher incentive compensation accrual.

General and administrative costs in the first six months of 2021 increased by $16.8 million, or 16.5%, compared with the first six months of 2019, largely due to the factors identified above, partially offset by a favorable fair market value adjustment.

Depreciation and Amortization

~~2021~~2022 Compared with ~~2020~~2021

Depreciation and amortization costs in the ~~second~~first quarter ~~and first six months~~ of ~~2021 decreased $1.1~~2022 increased $4.0 million, or ~~7.3%~~27.0%, ~~and $1.6 million, or 5.2%, respectively,~~ compared ~~with~~to the ~~same prior-year period.~~first quarter of 2021. The ~~decrease in both periods~~increase is due to the acquisition of The Athletic, partially offset by lower depreciation of software assets.

~~2021 Compared with 2019~~

~~Depreciation and amortization costs in the second quarter and first six months of 2021 compared with the same periods in 2019 were flat.~~

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

Segment Information

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


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


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

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


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

The New York Times Group

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

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

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

The Athletic

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

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

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

NON-OPERATING ITEMS

Other Components of Net Periodic Benefit Costs

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

Interest Income and other, net

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

Income Taxes

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

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

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

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

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

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

The special item in ~~2021~~the first quarter of 2022 consisted of:

•a ~~$3.8~~$34.7 million ~~charge~~of pre-tax costs ($~~2.8~~25.4 million or ~~$0.02~~$0.15 per share after tax) ~~in the second quarter resulting from the termination of a tenant’s lease in our headquarters building.~~

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

•~~a $10.1 million gain ($7.4 million after tax or $0.04 per share) in the first quarter~~ related to ~~a non-marketable equity investment transaction.~~the acquisition of The ~~gain is comprised~~Athletic. Acquisition-related costs primarily include expenses paid in connection with the acceleration of ~~$2.5 million realized gain due to the partial sale of the investment~~The Athletic stock options, and ~~a $7.6 million unrealized gain due to the mark to market of the remaining investment,~~legal, accounting, financial advisory and ~~is included in Interest income and other, net in our Condensed Consolidated Statements of Operations.~~integration planning expenses.

There were no special items in ~~2019.~~the first quarter of 2021.

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

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

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

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

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

operations and GAAP operating results, provide increased transparency and a better understanding of the underlying trends in the Company’s operating business performance.

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


Reconciliation of diluted earnings per share from continuing operations excluding severance, non-operating retirement costs and special items (or adjusted diluted earnings per share from continuing operations)	Reconciliation of diluted earnings per share from continuing operations excluding severance, non-operating retirement costs and special items (or adjusted diluted earnings per share from continuing operations)													Reconciliation of diluted earnings per share from continuing operations excluding severance, non-operating retirement costs and special items (or adjusted diluted earnings per share from continuing operations)
		For the Quarters Ended						For the Six Months Ended							For the Quarters Ended
		June 27, 2021		June 28, 2020		% Change		June 27, 2021		June 28, 2020		% Change			March 27, 2022		March 28, 2021		% Change
Diluted earnings per share from continuing operations	Diluted earnings per share from continuing operations	$	0.32	$	0.14	*		$	0.57	$	0.34	67.6	%	Diluted earnings per share from continuing operations	$	0.03	$	0.24	(87.5)	%
Add:	Add:													Add:
Severance		—		0.04		*		—		0.04		*

Non-operating retirement costs:	Non-operating retirement costs:													Non-operating retirement costs:
Multiemployer pension plan withdrawal costs	Multiemployer pension plan withdrawal costs	0.01		0.01		—		0.02		0.02		—		Multiemployer pension plan withdrawal costs	0.01		0.01		—
Other components of net periodic benefit costs	Other components of net periodic benefit costs	0.02		0.01		*		0.03		0.03		—		Other components of net periodic benefit costs	0.01		0.02		(50.0)	%
Special items:	Special items:													Special items:
Acquisition-related costs														Acquisition-related costs	0.21		—		*

Gain from non-marketable equity security		—		—		*		—		(0.06)		*
Lease termination charge		0.02		—		*		0.02		—		*

Income tax expense of adjustments	Income tax expense of adjustments	(0.01)		(0.02)		(50.0)	%	(0.02)		(0.01)		*		Income tax expense of adjustments	(0.06)		(0.01)		*
Adjusted diluted earnings per share from continuing operations(1)	Adjusted diluted earnings per share from continuing operations(1)	$	0.36	$	0.18	*		$	0.62	$	0.35	77.1	%	Adjusted diluted earnings per share from continuing operations(1)	$	0.19	$	0.26	(26.9)	%

(1)Amounts may not add due to rounding.

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

Reconciliation of operating profit before depreciation and amortization, severance, multiemployer pension plan withdrawal costs and special items (or adjusted operating profit)
For the Quarters Ended
2021 2020 2021 vs 2020 % Change 2019 2021 vs 2019 % Change
Operating profit $ 73,285 $ 28,806 * $ 37,933 93.2 %
Add:
Depreciation and amortization 14,486 15,631 (7.3) % 15,180 (4.6) %
Severance — 6,305 * 672 *
Multiemployer pension plan withdrawal costs 1,301 1,400 (7.1) % 1,801 (27.8) %
Special items:
Lease termination charge 3,831 — * — *
Adjusted operating profit $ 92,903 $ 52,142 78.2 % $ 55,586 67.1 %
* Represents a change equal to or in excess of 100% or not meaningful.

3335

Reconciliation of operating costs before depreciation and amortization, severance and multiemployer pension plan withdrawal costs (or adjusted operating costs)
For the Quarters Ended
2021 2020 2021 vs 2020 % Change 2019 2021 vs 2019 % Change
Operating costs $ 421,381 $ 374,944 12.4 % $ 398,325 5.8 %
Less:
Depreciation & amortization 14,486 15,631 (7.3) % 15,180 (4.6) %
Severance — 6,305 * 672 *
Multiemployer pension plan withdrawal costs 1,301 1,400 (7.1) % 1,801 (27.8) %
Adjusted operating costs $ 405,594 $ 351,608 15.4 % $ 380,672 6.5 %
* Represents a change equal to or in excess of 100% or not meaningful.


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

		For the Six Months Ended											For the Quarters Ended
		2021		2020		2021 vs 2020 % Change		2019		2021 vs 2019 % Change			March 27, 2022			March 28, 2021			% Change
Operating profit	Operating profit	$	124,943	$	56,126	*		$	72,531	72.3	%	Operating profit	$	6,284		$	51,658		(87.8)	%
Add:	Add:											Add:
Depreciation and amortization	Depreciation and amortization	29,203		30,816		(5.2)	%	30,098		(3.0)	%	Depreciation and amortization	18,686			14,717			27.0	%
Severance	Severance	406		6,675		(93.9)	%	2,075		(80.4)	%	Severance	—			406			*
Multiemployer pension plan withdrawal costs	Multiemployer pension plan withdrawal costs	2,627		2,823		(6.9)	%	3,250		(19.2)	%	Multiemployer pension plan withdrawal costs	1,221			1,326			(7.9)	%
Special items:	Special items:											Special items:
Lease termination charge		3,831		—		*		—		*

Acquisition-related costs												Acquisition-related costs	34,712			—			*
Adjusted operating profit	Adjusted operating profit	$	161,010	$	96,440	67.0	%	$	107,954	49.1	%	Adjusted operating profit	$	60,903		$	68,107		(10.6)	%
Divided by:												Divided by:
Revenue												Revenue	537,425			473,045			13.6	%
Adjusted operating profit margin												Adjusted operating profit margin	11.3		%	14.4		%	(310) bps

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


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

		For the Six Months Ended											For the Quarters Ended
		2021		2020		2021 vs 2020 % Change		2019		2021 vs 2019 % Change			March 27, 2022		March 28, 2021		% Change
Operating costs	Operating costs	$	842,768	$	791,260	6.5	%	$	802,789	5.0	%	Operating costs	$	496,429	$	421,387	17.8	%
Less:	Less:											Less:
Depreciation & amortization		29,203		30,816		(5.2)	%	30,098		(3.0)	%
Depreciation and amortization												Depreciation and amortization	18,686		14,717		27.0	%
Severance	Severance	406		6,675		(93.9)	%	2,075		(80.4)	%	Severance	—		406		*
Multiemployer pension plan withdrawal costs	Multiemployer pension plan withdrawal costs	2,627		2,823		(6.9)	%	3,250		(19.2)	%	Multiemployer pension plan withdrawal costs	1,221		1,326		(7.9)	%
Adjusted operating costs	Adjusted operating costs	$	810,532	$	750,946	7.9	%	$	767,366	5.6	%	Adjusted operating costs	$	476,522	$	404,938	17.7	%

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

3436

LIQUIDITY AND CAPITAL RESOURCES

We believe our cash balance and cash provided by operations, in combination with other sources of cash, will be sufficient to meet our financing needs over the next twelve months. Although there is uncertainty related to the anticipated continued effect of the Covid-19 pandemic on our business (as referenced above and in “Item 1A — Risk Factors” in our Annual Report on Form 10-K for the year ended December 27, 2020), given the strength of our balance sheet and based on the information currently available to us, we do not expect the impact of the pandemic to have a material impact on our liquidity position. As of ~~June~~March 27, ~~2021,~~2022, we had cash, cash equivalents and short- and long-term marketable securities of ~~$946.6~~$474.8 million. Our cash and marketable securities balances between ~~the end of 2020~~December 26, 2021, and ~~June~~March 27, ~~2021, increased,~~2022, decreased primarily due to ~~cash proceeds from operating activities, partially offset by dividend payments, capital expenditures~~consideration paid for the acquisition of The Athletic and ~~share-based~~the annual incentive compensation ~~tax withholding.~~payments.

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

In February 2022, the Board of Directors approved a $150.0 million Class A stock repurchase program. The authorization provides that Class A shares may be purchased from time to time as market conditions warrant, through open market purchases, privately negotiated transactions or other means, including Rule 10b5-1 trading plans. We expect to repurchase shares primarily to offset the impact of dilution from our equity compensation program, but subject to market conditions and other factors, we may also make opportunistic repurchases to reduce share count. There is no expiration date with respect to this authorization. As of March 27, 2022, we repurchased 692,800 shares for approximately $29.0 million under this authorization.

Capital Resources

Sources and Uses of Cash

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


		For the Six Months Ended							For the Quarters Ended
(In thousands)	(In thousands)	June 27, 2021		June 28, 2020		% Change		(In thousands)	March 27, 2022		March 28, 2021		% Change
Operating activities	Operating activities	$	110,434	$	118,590	(6.9)	%	Operating activities	$	(14,659)	$	32,929	(144.5)	%
Investing activities	Investing activities	$	(46,332)	$	(72,938)	(36.5)	%	Investing activities	$	(84,009)	$	(26,208)	220.5	%
Financing activities	Financing activities	$	(30,285)	$	(28,192)	7.4	%	Financing activities	$	(51,922)	$	(18,108)	186.7	%

Operating Activities

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

Net cash provided by operating activities decreased in the first ~~six months~~quarter of ~~2021~~2022 compared with the same prior-year period primarily due to lower net income, higher cash ~~collections from~~payments made to settle accounts ~~receivable,~~payable, accrued payroll and other liabilities, an increase in other assets and lower cash payments received from prepaid subscriptions, partially offset by higher ~~net income adjusted for non-cash items and lower~~ cash ~~payments made to settle~~collections from accounts ~~payable, accrued payroll and other liabilities.~~receivable.

Investing Activities

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

Net cash used in investing activities in the first ~~six months~~quarter of ~~2021~~2022 was primarily related to ~~$33.9~~$515.3 million in consideration paid for acquisitions, net ~~purchases~~ of ~~marketable securities~~cash acquired, and ~~$14.7~~$8.6 million in capital expenditures ~~payments.~~payments, partially offset by $440.4 million net maturities of marketable securities.

Financing Activities

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

Net cash used in financing activities in the first ~~six months~~quarter of ~~2021~~2022 was primarily related to share repurchases of $29.0 million, dividend payments of ~~$21.8~~$11.8 million and share-based compensation tax withholding payments of ~~$10.9~~$9.3 million.

3537

Restricted Cash

We were required to maintain ~~$14.6~~$14.4 million of restricted cash as of ~~June~~March 27, ~~2021,~~2022, and ~~$15.9~~$14.3 million as of December ~~27, 2020,~~26, 2021, substantially all of which is set aside to collateralize workers’ compensation obligations.

Capital Expenditures

Capital expenditures totaled approximately ~~$15~~$10 million and ~~$17~~$7 million in the first ~~six months~~quarter of ~~2021~~2022 and ~~2020,~~2021, respectively. The ~~decrease~~increase in capital expenditures in 2022 was primarily driven by ~~lower expenditures related~~improvements in the Company Headquarters which are intended to ~~improvements at~~address growth in the number of employees and to enhance technologies that support our ~~College Point, N.Y., printing~~transition to hybrid work with employees working both from the office and ~~distribution facility and lower investments in technology, partially offset by improvements at our newsroom bureaus and Company Headquarters.~~remotely. The cash payments related to capital expenditures totaled approximately ~~$15~~$9 million and ~~$22~~$6 million in the first ~~six months~~quarters of ~~2021~~2022 and ~~2020,~~2021, respectively.

Third-Party Financing

In September 2019, we entered into a $250 million five-year unsecured credit facility (the “Credit Facility”). Certain of our domestic subsidiaries have guaranteed our obligations under the Credit Facility. As of ~~June~~March 27, ~~2021,~~2022, there were no outstanding borrowings under the Credit Facility and the Company was in compliance with the financial covenants contained in the Credit Facility.

CRITICAL ACCOUNTING ESTIMATES AND POLICIES

Our critical accounting policies are detailed in our Annual Report on Form 10-K for the year ended December ~~27, 2020.~~26, 2021. Other than as described in Note 2 of the Notes to the Condensed Consolidated Financial Statements, as of ~~June~~March 27, ~~2021,~~2022, our critical accounting policies have not changed from December ~~27, 2020.~~

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

Our contractual obligations and off-balance sheet arrangements are detailed in our Annual Report on Form 10-K for the year ended December 27, 2020. As of June 27, 2021, our contractual obligations and off-balance sheet arrangements have not changed materially from December 27, 2020.26, 2021.

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q, including the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Terms such as “aim,” “anticipate,” “believe,” “confidence,” “contemplate,” “continue,” “conviction,” “could,” “drive,” “estimate,” “expect,” “forecast,” “future,” “goal,” “guidance,” “intend,” “likely,” “may,” “might,” “objective,” “opportunity,” “optimistic,” “outlook,” “plan,” “position,” “potential,” “predict,” “project,” “seek,” “should,” “strategy,” “target,” “will,” “would” or similar statements or variations of such words and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such terms. Forward-looking statements are based upon our current expectations, estimates and assumptions and involve risks and uncertainties that change over time; actual results could differ materially from those predicted by such forward-looking statements. These risks and uncertainties include, but are not limited to: ~~the impact of the Covid-19 pandemic;~~ significant competition in all aspects of our business; our ability to grow the size and profitability of our subscriber base; our dependence on metrics that are subject to inherent challenges in measurement; our ability to improve and scale our technical and data infrastructure and respond and adapt to changes in technology and consumer behavior; ~~our ability to continue to retain and grow our subscriber base;~~ numerous factors that affect our advertising revenues, including economic conditions, market dynamics, ~~audience fragmentation,~~ evolving digital advertising trends and the evolution of our strategy; damage to our brand or reputation; the impact of the Covid-19 pandemic; economic, geopolitical and other risks associated with the international scope of our business and foreign operations; our ability to attract and maintain a ~~highly skilled~~talented and diverse workforce; the impact of labor negotiations and agreements; adverse results from litigation or governmental investigations; risks associated with the recent acquisition of The Athletic, including, among others, those related to our ability to realize the anticipated benefits of the acquisition, our ability to meet our publicly announced guidance about the impact of the acquisition, and the risks associated with its business and operations; the risks and challenges associated with investments we make in new and existing products and ~~services;~~services, including The Athletic; risks associated with other acquisitions, divestitures, investments and other transactions; ~~the~~potential effects on our operating flexibility as a result of the ~~fixed cost~~ nature of significant portions of our expenses; the effects of the size and volatility of our pension plan obligations; liabilities that may result from our participation in multiemployer pension plans; ~~the impact of labor negotiations and agreements; increases in the price of newsprint or~~ significant disruptions in our newsprint supply chain or newspaper printing and distribution ~~channels;~~channels or a significant increase in the costs to print and distribute our newspaper; security breaches and other network and information systems disruptions; our ability to comply with laws and regulations, including with respect to privacy, data protection and consumer marketing practices; payment processing risk; defects, delays or interruptions in the cloud-based hosting services we utilize; our ability to protect our intellectual property; claims of intellectual property infringement that we have been, and may be in the future, be subject to; the effects of restrictions on our operations as a result of the terms of our credit facility; our future access to capital markets and other financing options; and the concentration of control of our company due to our dual-class capital structure.

More information regarding these risks and uncertainties and other important factors that could cause actual results to differ materially from those in the forward-looking statements is set forth in “Item 1A — Risk Factors” in our Annual Report

on Form 10-K for the year ended December ~~27, 2020,~~26, 2021, and “Item 2. Management’s Discussion and Analysis of Financial

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

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Our Annual Report on Form 10-K for the year ended December ~~27, 2020,~~26, 2021, details our disclosures about market risk. As of ~~June~~March 27, ~~2021,~~2022, there were no material changes in our market risks from December ~~27, 2020.~~26, 2021.

3739

Item 4. Controls and Procedures

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

Our management, with the participation of our principal executive officer and our principal financial officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934) as of ~~June~~March 27, ~~2021.~~2022. Based upon such evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective to ensure that the information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

During the second quarter of 2021, we completed the implementation of (i) a new cloud-based procure-to-pay system relating to our procurement suppliers, and (ii) a new cloud-based system for digital advertising billing. In connection with these systems implementations, we updated our internal control over financial reporting to accommodate the resulting changes to our existing controls, systems and procedures.

There were no ~~other~~ changes in our internal control over financial reporting during the quarter ended ~~June~~March 27, ~~2021,~~2022, other than as described in following paragraph, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Item 1A. Risk Factors

There have been no material changes to our risk factors as set forth in “Item 1A—Risk Factors” in our Annual Report on Form 10-K for the year ended December ~~27, 2020.~~26, 2021.

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

In ~~2015,~~February 2022, the Board of Directors ~~authorized up to $101.1~~approved a $150.0 million ~~of repurchases of shares of the Company’s~~ Class A ~~Common Stock. As of June 27, 2021, repurchases under this~~stock repurchase program. The authorization ~~totaled $84.9 million (excluding commissions) and $16.2 million remained. Our Board of Directors has authorized us to purchase~~provides that Class A shares may be purchased from time to time as market conditions warrant, through open market purchases, privately negotiated transactions or other means, including Rule 10b5-1 trading plans. We expect to repurchase shares primarily to offset the impact of dilution from our equity compensation program, but subject to market conditions and other ~~factors.~~factors, we may also make opportunistic repurchases to reduce share count. There is no expiration date with respect to this authorization. ~~There have been no purchases~~As of March 27, 2022, repurchases under this authorization ~~since 2016.~~totaled approximately $29.0 million (excluding commissions) and approximately $121.0 million remained.


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

3941

Item 6. Exhibits


Exhibit No.

2.1*						Agreement and Plan of Merger, dated as of January 6, 2022 , by and among The Athletic Media Company, The New York Times Company, Subscription Holding Co. and Shareholder Representative Services LLC (filed as an Exhibit to the Company’s Form 8-K dated January 7, 2022, and incorporated by reference herein).

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

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

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

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

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

101.SCH						Inline XBRL Taxonomy Extension Schema Document.

101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document.

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

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

4042

SIGNATURES

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


		THE NEW YORK TIMES COMPANY
		(Registrant)

Date:	~~August~~May 4, ~~2021~~2022	/s/ Roland A. Caputo
		Roland A. Caputo Executive Vice President and Chief Financial Officer (Principal Financial Officer)

4143


	Second Quarter
	2021		2020		2021 vs 2020 % Change		2019		2021 vs 2019 % Change

Revenues
Digital	$	190,145	$	145,984	30.3	%	$	112,635	68.8	%
Print	149,072		147,205		1.3	%	157,821		(5.5)	%
Subscription revenues	339,217		293,189		15.7	%	270,456		25.4	%
Digital	70,995		39,531		79.6	%	58,026		22.4	%
Print	41,779		28,229		48.0	%	62,735		(33.4)	%
Advertising revenues	112,774		67,760		66.4	%	120,761		(6.6)	%
Other revenues	46,506		42,801		8.7	%	45,041		3.3	%
Total revenues	498,497		403,750		23.5	%	436,258		14.3	%
Operating costs
Cost of revenue (excluding depreciation and amortization)	251,358		229,913		9.3	%	244,939		2.6	%
Sales and marketing	53,555		39,605		35.2	%	62,280		(14.0)	%
Product development	39,699		30,983		28.1	%	25,526		55.5	%
General and administrative	62,283		58,812		5.9	%	50,400		23.6	%
Depreciation and amortization	14,486		15,631		(7.3)	%	15,180		(4.6)	%
Total operating costs	421,381		374,944		12.4	%	398,325		5.8	%
Lease termination charge	3,831		—		*		—		*
Operating profit	$	73,285	$	28,806	*		$	37,933	93.2	%

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


	Six Months
	2021		2020		2021 vs 2020 % Change		2019		2021 vs 2019 % Change
Revenues
Digital	$	369,745	$	275,994	34.0	%	$	222,494	66.2	%
Print	298,556		302,629		(1.3)	%	318,772		(6.3)	%
Subscription revenues	668,301		578,623		15.5	%	541,266		23.5	%
Digital	130,491		90,689		43.9	%	113,569		14.9	%
Print	79,399		83,208		(4.6)	%	132,280		(40.0)	%
Advertising revenues	209,890		173,897		20.7	%	245,849		(14.6)	%
Other revenues	93,351		94,866		(1.6)	%	88,205		5.8	%
Total revenues	971,542		847,386		14.7	%	875,320		11.0	%
Operating costs
Cost of revenue (excluding depreciation and amortization)	502,355		473,397		6.1	%	484,125		3.8	%
Sales and marketing	113,708		113,389		0.3	%	137,094		(17.1)	%
Product development	78,642		61,985		26.9	%	49,433		59.1	%
General and administrative	118,860		111,673		6.4	%	102,039		16.5	%
Depreciation and amortization	29,203		30,816		(5.2)	%	30,098		(3.0)	%
Total operating costs	842,768		791,260		6.5	%	802,789		5.0	%
Lease termination charge	3,831		—		*		—		*
Operating profit	$	124,943	$	56,126	*		$	72,531	72.3	%

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


	Quarters Ended
(In thousands)	June 27, 2021	June 28, 2020	% Change
Digital-only subscriptions:
News product subscriptions(1)	5,334	4,390	21.5	%
Other product subscriptions(2)	1,799	1,280	40.5	%
Subtotal digital-only subscriptions	7,133	5,670	25.8	%
Print subscriptions	803	840	(4.4)	%
Total subscriptions	7,936	6,510	21.9	%
(1) Includes 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 standalone subscriptions to the Company’s Games, Cooking and Audm products.