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NYT New York Times

Filed: 6 Aug 20, 3:01pm
 
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 28, 2020
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 filerAccelerated filerNon-accelerated filer
Smaller reporting companyEmerging 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 31, 2020 (exclusive of treasury shares):  
Class A Common Stock165,953,189
shares
Class B Common Stock801,884
shares
 




THE NEW YORK TIMES COMPANY
INDEX

     
PART I   Financial Information 
Item1 Financial Statements 
   
Condensed Consolidated Balance Sheets as of June 28, 2020 (unaudited) and December 29, 2019
 
   Condensed Consolidated Statements of Operations (unaudited) for the quarters and six months ended June 28, 2020 and June 30, 2019 
   Condensed Consolidated Statements of Comprehensive Income (unaudited) for the quarters and six months ended June 28, 2020 and June 30, 2019 
   Condensed Consolidated Statements of Changes In Stockholders’ Equity (unaudited) for the quarters and six months ended June 28, 2020 and June 30, 2019 
   Condensed Consolidated Statements of Cash Flows (unaudited) for the six months ended June 28, 2020 and June 30, 2019 
   Notes to the Condensed Consolidated Financial Statements 
Item2 Management’s Discussion and Analysis of Financial Condition and Results of Operations 
Item3 Quantitative and Qualitative Disclosures about Market Risk 
Item4 Controls and Procedures 
  
PART II   Other Information 
Item1 Legal Proceedings 
Item1A Risk Factors 
Item2 Unregistered Sales of Equity Securities and Use of Proceeds 
Item6 Exhibits 






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 28, 2020

December 29, 2019
  (Unaudited)  
Assets    
Current assets    
Cash and cash equivalents $249,312
 $230,431
Short-term marketable securities 240,400
 201,785
Accounts receivable (net of allowances of $13,646 in 2020 and $14,358 in 2019) 122,092
 213,402
Prepaid expenses 28,382
 29,089
Other current assets 42,331
 42,124
Total current assets 682,517
 716,831
Other assets    
Long-term marketable securities 266,946
 251,696
Property, plant and equipment (less accumulated depreciation and amortization of $978,828 in 2020 and $950,881 in 2019) 611,998
 627,121
Goodwill 144,767
 138,674
Deferred income taxes 111,355
 115,229
Miscellaneous assets 240,774
 239,587
Total assets $2,058,357
 $2,089,138
 See Notes to Condensed Consolidated Financial Statements.

1



THE NEW YORK TIMES COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS-(Continued)
(In thousands, except share and per share data)
  June 28, 2020
 December 29, 2019
  (Unaudited)  
Liabilities and stockholders’ equity    
Current liabilities    
Accounts payable $70,692
 $116,571
Accrued payroll and other related liabilities 66,004
 108,865
Unexpired subscriptions revenue 99,674
 88,419
Accrued expenses and other 134,742
 123,840
Total current liabilities 371,112
 437,695
Other liabilities    
Pension benefits obligation 294,470
 313,655
Postretirement benefits obligation 35,935
 37,688
Other 125,809
 126,237
Total other liabilities 456,214
 477,580
Stockholders’ equity    
Common stock of $.10 par value:    
Class A – authorized: 300,000,000 shares; issued: 2020 – 174,820,777; 2019 – 174,242,668 (including treasury shares: 2020 – 8,870,801; 2019 – 8,870,801)
 17,482
 17,424
Class B – convertible – authorized and issued shares: 2020 – 803,404; 2019 – 803,404 80
 80
Additional paid-in capital 205,618
 208,028
Retained earnings 1,659,158
 1,612,658
Common stock held in treasury, at cost (171,211) (171,211)
Accumulated other comprehensive loss, net of income taxes:    
Foreign currency translation adjustments 3,706
 3,438
Funded status of benefit plans (489,748) (498,986)
Net unrealized gain on available-for-sale securities 4,086
 572
Total accumulated other comprehensive loss, net of income taxes (481,956) (494,976)
Total New York Times Company stockholders’ equity 1,229,171
 1,172,003
Noncontrolling interest 1,860
 1,860
Total stockholders’ equity 1,231,031
 1,173,863
Total liabilities and stockholders’ equity $2,058,357
 $2,089,138
 See Notes to Condensed Consolidated Financial Statements.


2



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
  June 28, 2020

June 30, 2019
 June 28, 2020
 June 30, 2019
  (13 weeks) (26 weeks)
Revenues        
Subscription $293,189
 $270,456
 $578,623
 $541,266
Advertising 67,760
 120,761
 173,897
 245,849
Other 42,801
 45,041
 94,866
 88,205
Total revenues 403,750
 436,258
 847,386
 875,320
Operating costs        
Cost of revenue (excluding depreciation and amortization) 230,147
 245,195
 473,819
 484,554
Sales and marketing 39,617
 62,289
 113,413
 137,109
Product development 30,737
 25,261
 61,539
 48,989
General and administrative 58,812
 50,400
 111,673
 102,039
Depreciation and amortization 15,631
 15,180
 30,816
 30,098
Total operating costs 374,944
 398,325
 791,260
 802,789
Operating profit 28,806
 37,933
 56,126
 72,531
Other components of net periodic benefit costs 2,149
 1,833
 4,463
 3,668
Interest income/(expense) and other, net 2,786
 (1,514) 16,640
 (2,817)
Income from continuing operations before income taxes 29,443
 34,586
 68,303
 66,046
Income tax expense 5,781
 9,415
 11,787
 10,719
Net income 23,662
 25,171
 56,516
 55,327
Net income attributable to The New York Times Company common stockholders $23,662
 $25,171
 $56,516
 $55,327
Average number of common shares outstanding:        
Basic 166,869
 166,152
 166,725
 165,915
Diluted 168,083
 167,549
 167,968
 167,322
Basic earnings per share attributable to The New York Times Company common stockholders $0.14
 $0.15
 $0.34
 $0.33
Diluted earnings per share attributable to The New York Times Company common stockholders $0.14
 $0.15
 $0.34
 $0.33
Dividends declared per share $
 $0.05
 $0.06
 $0.10
See Notes to Condensed Consolidated Financial Statements.




3



THE NEW YORK TIMES COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(In thousands)
  For the Quarters Ended For the Six Months Ended
  June 28, 2020
 June 30, 2019
 June 28, 2020
 June 30, 2019
  (13 weeks) (26 weeks)
Net income $23,662
 $25,171
 $56,516
 $55,327
Other comprehensive income, before tax:        
Income/(loss) on foreign currency translation adjustments 619
 1,522
 365
 (127)
Pension and postretirement benefits obligation 6,231
 4,896
 12,628
 9,792
Net unrealized gain on available-for-sale securities 4,075
 1,415
 4,790
 3,489
Other comprehensive income, before tax 10,925
 7,833
 17,783
 13,154
Income tax expense 2,848
 2,015
 4,763
 3,414
Other comprehensive income, net of tax 8,077
 5,818
 13,020
 9,740
Comprehensive income attributable to The New York Times Company common stockholders $31,739
 $30,989
 $69,536
 $65,067
 See Notes to Condensed Consolidated Financial Statements.

4



THE NEW YORK TIMES COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
For the Quarters Ended June 28, 2020 and June 30, 2019
(Unaudited)
(In thousands, except share data)
 
Capital Stock -
Class A
and
Class B Common
Additional
Paid-in
Capital
Retained
Earnings
Common
Stock
Held in
Treasury,
at Cost
Accumulated
Other
Comprehensive
Loss, Net of
Income
Taxes
Total
New York
Times
Company
Stockholders’
Equity
Non-
controlling
Interest
Total
Stock-
holders’
Equity
 
 Balance, March 31, 2019$17,482
$197,626
$1,527,859
$(171,211)$(513,802)$1,057,954
$1,860
$1,059,814
 Net income

25,171


25,171

25,171
 Dividends

(8,336)

(8,336)
(8,336)
 Other comprehensive income



5,818
5,818

5,818
 Issuance of shares:















 Restricted stock units vested – 59,967 Class A shares6
(279)


(273)
(273)
 Stock-based compensation
3,009



3,009

3,009
 Balance, June 30, 2019$17,488
$200,356
$1,544,694
$(171,211)$(507,984)$1,083,343
$1,860
$1,085,203
 
















 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 shares9
933



942

942
 Restricted stock units vested – 6,516 Class A shares1
(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










5



THE NEW YORK TIMES COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
For the Six Months Ended June 28, 2020 and June 30, 2019
(Unaudited)
(In thousands, except share data)
  Capital Stock -
Class A
and
Class B Common
Additional
Paid-in
Capital
Retained
Earnings
Common
Stock
Held in
Treasury,
at Cost
Accumulated
Other
Comprehensive
Loss, Net of
Income
Taxes
Total
New York
Times
Company
Stockholders’
Equity
Non-
controlling
Interest
Total
Stock-
holders’
Equity
 
 Balance, December 30, 2018$17,396
$206,316
$1,506,004
$(171,211)$(517,724)$1,040,781
$1,860
$1,042,641
 Net income

55,327


55,327

55,327
 Dividends

(16,637)

(16,637)
(16,637)
 Other comprehensive income



9,740
9,740

9,740
 Issuance of shares:        
 Stock options – 279,510 Class A shares28
2,937



2,965

2,965
 Restricted stock units vested – 221,087 Class A shares22
(3,747)


(3,725)
(3,725)
 Performance-based awards – 418,491 Class A shares42
(11,966)


(11,924)
(11,924)
 Stock-based compensation
6,816



6,816

6,816
 Balance, June 30, 2019$17,488
$200,356
$1,544,694
$(171,211)$(507,984)$1,083,343
$1,860
$1,085,203
          
 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 shares18
1,855



1,873

1,873
 Restricted stock units vested – 141,501 Class A shares14
(3,897)


(3,883)
(3,883)
 Performance-based awards – 257,098 Class A shares26
(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












6



THE NEW YORK TIMES COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
  For the Six Months Ended
  June 28, 2020
 June 30, 2019
  (26 weeks)
Cash flows from operating activities    
Net income $56,516
 $55,327
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 30,816
 30,098
Amortization of right of use asset 4,645
 3,520
Stock-based compensation expense 7,482
 6,826
Deferred income taxes (1,209) 
Gain on non-marketable equity investment (10,074) (1,886)
Long-term retirement benefit obligations (8,524) (11,574)
Fair market value adjustment on life insurance products 170
 (2,048)
Other-net 1,514
 (7,801)
Changes in operating assets and liabilities:    
Accounts receivable-net 91,310
 59,673
Other assets (1,292) (14,555)
Accounts payable, accrued payroll and other liabilities (64,019) (57,217)
Unexpired subscriptions 11,255
 3,637
Net cash provided by operating activities 118,590
 64,000
Cash flows from investing activities    
Purchases of marketable securities (278,773) (225,765)
Maturities of marketable securities 228,938
 223,327
Business acquisitions (8,055) 
Proceeds from sale of investments – net 4,074
 110
Capital expenditures (21,510) (23,065)
Other-net 2,388
 1,872
Net cash used in investing activities (72,938) (23,521)
Cash flows from financing activities    
Long-term obligations:    
Repayment of debt and finance lease obligations 
 (230)
Dividends paid (18,359) (14,936)
Capital shares:    
Proceeds from stock option exercises 1,873
 2,965
Share-based compensation tax withholding (11,706) (15,649)
Net cash used in financing activities (28,192) (27,850)
Net increase in cash, cash equivalents and restricted cash 17,460
 12,629
Effect of exchange rate changes on cash 162
 305
Cash, cash equivalents and restricted cash at the beginning of the period 247,518
 259,799
Cash, cash equivalents and restricted cash at the end of the period $265,140
 $272,733

 See Notes to Condensed Consolidated Financial Statements.



7


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 28, 2020 and December 29, 2019, and the results of operations, changes in stockholders’ equity and cash flows of the Company for the periods ended June 28, 2020, and June 30, 2019. The Company and its consolidated subsidiaries are referred to collectively as “we,” “us” or “our.” All adjustments necessary for a fair presentation have been included and are of a normal and recurring nature. All significant intercompany accounts and transactions have been eliminated in consolidation. The financial statements were prepared in accordance with the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain notes or other financial information that are normally required by accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted from these interim financial statements. These financial statements, therefore, should be read in conjunction with the Consolidated Financial Statements and related Notes included in our Annual Report on Form 10-K for the year ended December 29, 2019. Due to the seasonal nature of our business, operating results for the interim periods are not necessarily indicative of a full year’s operations. The fiscal periods included herein comprise 13 weeks and 26 weeks for the second quarter and six months, respectively.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in our Condensed Consolidated Financial Statements. Actual results could differ from these estimates.
Reclassification
The Company has changed the expense captions on its Condensed Consolidated Statement of Operations effective for the quarter ended March 29, 2020. These changes were made in order to reflect how the Company manages its business and to communicate where the Company is investing resources and how this aligns with the Company’s strategy. The Company has reclassified expenses for the prior period in order to present comparable financial results. There is no change to consolidated operating income, operating expense, net income or cash flows as a result of this change in classification. See Note 15 for more detail.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Except as described herein, as of June 28, 2020, our significant accounting policies, which are detailed in our Annual Report on Form 10-K for the year ended December 29, 2019, have not changed materially.

8


THE NEW YORK TIMES COMPANY
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Recently Adopted Accounting Pronouncements
Accounting Standard Update(s)TopicEffective PeriodSummary
2018-15Intangibles—Goodwill and Other—Internal-Use SoftwareFiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted.
Clarifies the accounting for implementation costs in cloud computing arrangements. The standard provides that implementation costs be evaluated for capitalization using the same criteria as that used for internal-use software development costs, with amortization expense being recorded in the same income statement expense line as the hosted service costs and over the expected term of the hosting arrangement. The Company adopted this ASU prospectively on December 30, 2019 and will include capitalized implementation costs in Miscellaneous assets in the Company’s Condensed Consolidated Balance Sheet and within Total operating costs in the Condensed Consolidated Statement of Operations. The adoption did not have a material impact on the Company’s consolidated financial statements.
2018-13Fair Value Measurement (Topic 820) Disclosure FrameworkFiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted.Modifies the disclosure requirements on fair value measurements. The amendments of disclosures related to changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The Company adopted this ASU on December 30, 2019. The adoption did not have a material impact on the Company’s disclosures.
2016-13
2018-19
2019-04
Financial Instruments—Credit LossesFiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years.Amends guidance on reporting credit losses for assets, including trade receivables, available-for-sale marketable securities and any other financial assets not excluded from the scope that have the contractual right to receive cash. For trade receivables, ASU 2016-13 eliminates the probable initial recognition threshold in current generally accepted accounting standards, and, instead, requires an entity to reflect its current estimate of all expected credit losses. For available-for-sale marketable securities, credit losses should be measured in a manner similar to current generally accepted accounting standards; however, ASU 2016-13 will require that credit losses be presented as an allowance rather than as a write-down. The Company adopted this ASU on December 30, 2019 using a modified retrospective approach. The adoption did not have a material impact on the Company’s consolidated financial statements.
Recently Issued Accounting Pronouncements
The Financial Accounting Standards Board (the “FASB”) issued authoritative guidance on the following topics:
Accounting Standard Update(s)TopicEffective PeriodSummary
2019-12Simplifying the Accounting for Income Taxes (Topic 740)
Fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. Early adoption is permitted.

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


9


THE NEW YORK TIMES COMPANY
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The Company considers the applicability and impact of all recently issued accounting pronouncements. Recent accounting pronouncements not specifically identified in our disclosures are either not applicable to the Company or are not expected to have a material effect on our financial condition or results of operations.
NOTE 3. REVENUE
We generate revenues principally from subscriptions and advertising. Subscription revenues consist of revenues from subscriptions to our print and digital products (which include our news product, as well as our Crossword, Cooking and audio products) and single-copy and bulk sales of our print products. Subscription revenues are based on both the number of copies of the printed newspaper sold and digital-only subscriptions, and the rates charged to the respective customers.
Advertising revenues are primarily derived from offerings sold directly to marketers by our advertising sales team. A significantly smaller and diminishing proportion of our total advertising revenues is generated through programmatic auctions run by third-party ad exchanges. Advertising revenues are primarily determined by the volume, rate and mix of advertisements. Display advertising revenue is principally from advertisers promoting products, services or brands. Display advertising also includes advertisements that direct viewers to branded content on our platforms. Other print advertising revenue primarily includes classified advertising revenue. Other digital advertising revenue primarily includes creative services fees, including those associated with our branded content studio; advertising revenue from our podcasts; and advertising revenue generated by Wirecutter, our product review and recommendation website.
Other revenues primarily consist of revenues from licensing, affiliate referrals from Wirecutter, the leasing of floors in the New York headquarters building located at 620 Eighth Avenue, New York, New York (the “Company Headquarters”), commercial printing, television and film, retail commerce and NYT Live (our live events business).
Subscription, advertising and other revenues were as follows:
  For the Quarters Ended For the Six Months Ended
(In thousands) June 28, 2020
 As % of total June 30, 2019
 As % of total June 28, 2020
 As % of total June 30, 2019
 As % of total
Subscription $293,189
 72.6% $270,456
 62.0% $578,623
 68.3% $541,266
 61.8%
Advertising 67,760
 16.8% 120,761
 27.7% 173,897
 20.5% 245,849
 28.1%
Other (1)
 42,801
 10.6% 45,041
 10.3% 94,866
 11.2% 88,205
 10.1%
Total $403,750
 100.0% $436,258
 100.0% $847,386
 100.0% $875,320
 100.0%

(1) Other revenue includes building rental revenue, which is not under the scope of Revenue from Contracts with Customers (Topic 606). Building rental revenue was approximately $7 million for the second quarters of 2020 and 2019, respectively, and approximately $15 million for the first six months of 2020 and 2019, respectively.


10


THE NEW YORK TIMES COMPANY
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The following table summarizes print and digital subscription revenues, which are components of subscription revenues above, for the second quarters and first six months ended June 28, 2020, and June 30, 2019:
  For the Quarters Ended For the Six Months Ended
(In thousands) June 28, 2020
 June 30, 2019
 June 28, 2020
 June 30, 2019
Print subscription revenues:        
Domestic home delivery subscription revenues(1)
 $132,971
 $133,038
 $266,708
 $268,241
Single copy, NYT International and other subscription revenues(2)
 14,234
 24,783
 35,921
 50,531
   Subtotal print subscription revenues 147,205
 157,821
 302,629
 318,772
Digital-only subscription revenues:        
News product subscription revenues(3)
 132,922
 104,430
 251,880
 206,776
Other product subscription revenues(4)
 13,062
 8,205
 24,114
 15,718
 Subtotal digital-only subscriptions 145,984
 112,635
 275,994
 222,494
Total subscription revenues $293,189
 $270,456
 $578,623
 $541,266
(1) Includes free access to some or all of the Company’s digital products.
(2) NYT International is the international edition of our print newspaper.
(3) Includes revenues from subscriptions to the Company’s news product. News product subscription packages that include access to the Company’s Crossword and Cooking products are also included in this category.
(4) Includes revenues from standalone subscriptions to the Company’s Crossword, Cooking and audio products.

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


For the Quarters Ended


June 28, 2020
June 30, 2019
(In thousands)
Print
Digital
Total
Print
Digital
Total
Advertising revenues:











Display
$21,460

$30,466

$51,926

$55,859

$42,833

$98,692
Other
6,769

9,065

15,834

6,876

15,193

22,069
Total advertising
$28,229

$39,531

$67,760

$62,735

$58,026

$120,761

  For the Six Months Ended
  June 28, 2020 June 30, 2019
(In thousands) Print Digital Total Print Digital Total
Advertising revenues:            
Display $69,619
 $70,360
 $139,979
 $118,201
 $84,945
 $203,146
Other 13,589
 20,329
 33,918
 14,079
 28,624
 42,703
Total advertising $83,208
 $90,689
 $173,897
 $132,280
 $113,569
 $245,849

Performance Obligations
We have remaining performance obligations related to digital archive and other licensing and certain advertising contracts. As of June 28, 2020, the aggregate amount of transaction price allocated to the remaining performance obligations for contracts with a duration greater than one year was approximately $138 million. The Company will recognize this revenue as performance obligations are satisfied. We expect that approximately $26 million, $45 million and $67 million will be recognized in the remainder of 2020, 2021 and thereafter, respectively.

11


THE NEW YORK TIMES COMPANY
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Contract Assets
As of June 28, 2020, and December 29, 2019, the Company had $2.6 million and $3.4 million, respectively, in contract assets recorded in the Condensed Consolidated Balance Sheets related to digital archiving licensing revenue. The contract asset is reclassified to Accounts receivable when the customer is invoiced based on the contractual billing schedule. The decrease in the contract assets balance of $0.8 million for the six months ended June 28, 2020, is due to consideration that was reclassified to Accounts receivable when invoiced based on the contractual billing schedules for the period ended June 28, 2020.
NOTE 4. MARKETABLE SECURITIES
The Company accounts for its marketable securities as available for sale (“AFS”). The Company recorded $5.6 million and $0.8 million of net unrealized gains in Accumulated other comprehensive income (“AOCI”) as of June 28, 2020, and December 29, 2019, respectively.
The following tables present the amortized cost, gross unrealized gains and losses, and fair market value of our AFS debt securities as of June 28, 2020, and December 29, 2019:
  June 28, 2020
(In thousands) Amortized Cost Gross unrealized gains Gross unrealized losses Fair Value
Short-term AFS securities        
Corporate debt securities $105,615
 $669
 $(13) $106,271
U.S. Treasury securities 78,826
 179
 (1) 79,004
U.S. governmental agency securities 35,965
 180
 (1) 36,144
Commercial paper 15,981
 
 
 15,981
Certificates of deposit 3,000
 
 
 3,000
Total short-term AFS securities $239,387
 $1,028
 $(15) $240,400
Long-term AFS securities       
Corporate debt securities $114,618
 $1,751
 $(28) $116,341
U.S. Treasury securities 92,680
 2,714
 
 95,394
U.S. governmental agency securities 55,089
 125
 (3) 55,211
Total long-term AFS securities $262,387
 $4,590
 $(31) $266,946

  December 29, 2019
(In thousands) Amortized Cost Gross unrealized gains Gross unrealized losses Fair Value
Short-term AFS securities        
Corporate debt securities $98,864
 $271
 $(9) $99,126
U.S. Treasury securities 43,098
 8
 (11) 43,095
U.S. governmental agency securities 37,471
 35
 (4) 37,502
Commercial paper 12,561
 
 
 12,561
Certificates of deposit 9,501
 
 
 9,501
Total short-term AFS securities $201,495
 $314
 $(24) $201,785
Long-term AFS securities        
Corporate debt securities $103,149
 $617
 $(29) $103,737
U.S. Treasury securities 101,457
 84
 (103) 101,438
U.S. governmental agency securities 46,600
 5
 (84) 46,521
Total long-term AFS securities $251,206
 $706
 $(216) $251,696


12


THE NEW YORK TIMES COMPANY
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The following tables represent the AFS securities as of June 28, 2020, and December 29, 2019, that were in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position:
  June 28, 2020
  Less than 12 Months 12 Months or Greater Total
(In thousands) Fair Value Gross unrealized losses Fair Value Gross unrealized losses Fair Value Gross unrealized losses
Short-term AFS securities            
Corporate debt securities $22,721
 $(13) $
 $
 $22,721
 $(13)
U.S. Treasury securities 14,496
 (1) 
 
 14,496
 (1)
U.S. governmental agency securities 9,999
 (1) 
 
 9,999
 (1)
Total short-term AFS securities $47,216
 $(15) $
 $
 $47,216
 $(15)
Long-term AFS securities            
Corporate debt securities $17,542
 $(28) $
 $
 $17,542
 $(28)
U.S. governmental agency securities 8,747
 (3) 
 
 8,747
 (3)
Total long-term AFS securities $26,289
 $(31) $
 $
 $26,289
 $(31)
    
  December 29, 2019
  Less than 12 Months 12 Months or Greater Total
(In thousands) Fair Value Gross unrealized losses Fair Value Gross unrealized losses Fair Value Gross unrealized losses
Short-term AFS securities            
Corporate debt securities $20,975
 $(6) $8,251
 $(3) $29,226
 $(9)
U.S. Treasury securities 13,296
 (3) 11,147
 (8) 24,443
 (11)
U.S. governmental agency securities 
 
 15,000
 (4) 15,000
 (4)
Total short-term AFS securities $34,271
 $(9) $34,398
 $(15) $68,669
 $(24)
Long-term AFS securities            
Corporate debt securities $35,891
 $(25) $4,502
 $(4) $40,393
 $(29)
U.S. Treasury securities 60,935
 (103) 
 
 60,935
 (103)
U.S. governmental agency securities 34,167
 (84) 
 
 34,167
 (84)
Total long-term AFS securities $130,993
 $(212) $4,502
 $(4) $135,495
 $(216)

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

13


THE NEW YORK TIMES COMPANY
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

is recorded, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income.
As of June 28, 2020, we did not intend to sell and it was not likely that we would be required to sell these investments before recovery of their amortized cost basis, which may be at maturity. As of June 28, 2020, we have recognized 0 losses or allowance for credit losses related to AFS securities.
As of June 28, 2020, our short-term and long-term marketable securities had remaining maturities of less than 1 month to 12 months and 13 months to 36 months, respectively. See Note 8 for more information regarding the fair value of our marketable securities.
NOTE 5. GOODWILL AND INTANGIBLES
During the first quarter of 2020, the Company acquired Listen In Audio, Inc., a company that transforms journalism articles into audio that is made available in a subscription-based product named “Audm,” in an all-cash transaction. We paid $8.6 million (comprised of $8.0 million cash payment and $0.6 million note receivable previously issued by the Company, which was canceled at the close of the transaction) and entered into agreements that will likely require retention payments over the three years following the acquisition. The Company allocated the purchase price for this acquisition based on the final valuation of assets acquired and liabilities assumed, resulting in allocations primarily to goodwill and intangibles as of June 28, 2020. The carrying amount of the intangible asset of $2.7 million related to this acquisition has been included in Miscellaneous Assets in our Condensed Consolidated Balance Sheets. The estimated useful life for this asset is 8 years and it is amortized on a straight-line basis.
The changes in the carrying amount of goodwill as of June 28, 2020, and since December 29, 2019, were as follows:
(In thousands) Total Company
Balance as of December 29, 2019 $138,674
Business acquisition 5,818
Foreign currency translation 275
Balance as of June 28, 2020 $144,767

The foreign currency translation line item reflects changes in goodwill resulting from fluctuating exchange rates related to the consolidation of certain international subsidiaries.
The aggregate carrying amount of intangible assets of $4.5 million is included in Miscellaneous assets in our Condensed Consolidated Balance Sheets as of June 28, 2020.
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 sold or impaired are recognized in Interest income/(expense) and other, net.
As of June 28, 2020, and December 29, 2019, non-marketable equity securities included in Miscellaneous assets in our Condensed Consolidated Balance Sheets had a carrying value of $19.3 million and $13.4 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/(expense) and other, net in our Condensed Consolidated Statements of Operations.

14


THE NEW YORK TIMES COMPANY
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

NOTE 7. OTHER
Capitalized Computer Software Costs
Amortization of capitalized computer software costs included in Depreciation and amortization in our Condensed Consolidated Statements of Operations were $3.9 million and $4.4 million in the second quarters of 2020 and 2019, respectively, and $7.7 million and $8.7 million in the first six months of 2020 and 2019, respectively,
Interest income/(expense) and other, net
Interest income/(expense) 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
(In thousands) June 28, 2020
 June 30, 2019
 June 28, 2020
 June 30, 2019
Interest expense $(189) $(7,137) $(381) $(14,196)
Amortization of debt costs and discount on debt 
 205
 
 (688)
Capitalized interest 10
 8
 17
 52
Interest income and other expense, net (1)
 2,965
 5,410
 17,004
 12,015
Total interest income/(expense) and other, net $2,786
 $(1,514) $16,640
 $(2,817)
(1) The six months ended June 28, 2020, include a $10.1 million gain related to a non-marketable equity investment transaction. The six months ended June 30, 2019, include a fair value adjustment of $1.9 million related to the sale of a non-marketable equity security.
Restricted Cash
A reconciliation of cash, cash equivalents and restricted cash as of June 28, 2020, and December 29, 2019, from the Condensed Consolidated Balance Sheets to the Condensed Consolidated Statements of Cash Flows is as follows:
(In thousands) June 28, 2020
 December 29, 2019
Reconciliation of cash, cash equivalents and restricted cash    
Cash and cash equivalents $249,312
 $230,431
Restricted cash included within other current assets 531
 528
Restricted cash included within miscellaneous assets 15,297
 16,559
Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows $265,140
 $247,518

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 of 0.20%.
As of June 28, 2020, there were 0 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 severance costs of $6.3 million and $0.7 million in the second quarters of 2020 and 2019, respectively, and $6.7 million and $2.1 million in the first six months of 2020 and 2019, respectively. Severance costs recognized in 2020 were largely related to workforce reductions primarily affecting our advertising department. These costs are recorded in General and administrative costs in our Condensed Consolidated Statements of Operations.
We had a severance liability of $12.0 million and $8.4 million included in Accrued expenses and other in our Condensed Consolidated Balance Sheets as of June 28, 2020, and December 29, 2019, respectively. We anticipate most of the payments will be made within the next twelve months.

15


THE NEW YORK TIMES COMPANY
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

NOTE 8. FAIR VALUE MEASUREMENTS
Fair value is the price that would be received upon the sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date. The transaction would be in the principal or most advantageous market for the asset or liability, based on assumptions that a market participant would use in pricing the asset or liability. The fair value hierarchy consists of three levels:
Level 1–quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date;
Level 2–inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and
Level 3–unobservable inputs for the asset or liability.
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 28, 2020, and December 29, 2019:
(In thousands) June 28, 2020 December 29, 2019
 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3
Assets:                
Short-term AFS securities (1)
                
Corporate debt securities $106,271
 $
 $106,271
 $
 $99,126
 $
 $99,126
 $
U.S. Treasury securities 79,004
 
 79,004
 
 43,095
 
 43,095
 
U.S. governmental agency securities 36,144
 
 36,144
 
 37,502
 
 37,502
 
Commercial paper 15,981
 
 15,981
 
 12,561
 
 12,561
 
Certificates of deposit 3,000
 
 3,000
 
 9,501
 
 9,501
 
Total short-term AFS securities $240,400
 $
 $240,400
 $
 $201,785
 $
 $201,785
 $
Long-term AFS securities (1)
 
 
 
 
 
 
 
 
Corporate debt securities $116,341
 $
 $116,341
 $
 $103,737
 $
 $103,737
 $
U.S. Treasury securities 95,394
 
 95,394
 
 101,438
 
 101,438
 
U.S. governmental agency securities 55,211
 
 55,211
 
 46,521
 
 46,521
 
Total long-term AFS securities $266,946
 $
 $266,946
 $
 $251,696
 $
 $251,696
 $
Liabilities:                
Deferred compensation (2)(3)
 $18,871
 $18,871
 $
 $
 $23,702
 $23,702
 $
 $

(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 $45.1 million as of June 28, 2020, and $46.0 million as of December 29, 2019. The fair value of these assets is measured using the net asset value per share (or its equivalent) and has not been classified in the fair value hierarchy.

16


THE NEW YORK TIMES COMPANY
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

NOTE 9. PENSION AND OTHER POSTRETIREMENT BENEFITS
Pension
Single-Employer Plans
We maintain The New York Times Companies Pension Plan (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/(income) were as follows:
  For the Quarters Ended
  June 28, 2020 June 30, 2019
(In thousands) Qualified
Plans
 Non-
Qualified
Plans
 All
Plans
 Qualified
Plans
 Non-
Qualified
Plans
 All
Plans
Service cost $2,607
 $
 $2,607
 $1,279
 $
 $1,279
Interest cost 11,742
 1,649
 13,391
 14,708
 2,088
 16,796
Expected return on plan assets (17,745) 
 (17,745) (20,259) 
 (20,259)
Amortization of actuarial loss 5,655
 1,522
 7,177
 4,635
 1,094
 5,729
Amortization of prior service credit (486) 
 (486) (486) 
 (486)
Net periodic pension cost/(income) (1)
 $1,773
 $3,171
 $4,944
 $(123) $3,182
 $3,059

  For the Six Months Ended
  June 28, 2020 June 30, 2019
(In thousands) 
Qualified
Plans
 
Non-
Qualified
Plans
 
All
Plans
 
Qualified
Plans
 
Non-
Qualified
Plans
 
All
Plans
Service cost $5,214
 $
 $5,214
 $2,557
 $
 $2,557
Interest cost 23,484
 3,297
 26,781
 29,417
 4,176
 33,593
Expected return on plan assets (35,481) 
 (35,481) (40,517) 
 (40,517)
Amortization of actuarial loss 11,310
 3,043
 14,353
 9,270
 2,188
 11,458
Amortization of prior service credit (972) 
 (972) (972) 
 (972)
Net periodic pension cost/(income) (1)
 $3,555
 $6,340
 $9,895
 $(245) $6,364
 $6,119
(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 2020 and 2019, we made pension contributions of $4.6 million and $4.3 million, respectively, to the APP. We expect contributions in 2020 to total approximately $9 million to satisfy funding requirements.

17


THE NEW YORK TIMES COMPANY
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Other Postretirement Benefits
The components of net periodic postretirement benefit (income)/cost were as follows:
  For the Quarters Ended For the Six Months Ended
(In thousands) June 28, 2020
 June 30, 2019
 June 28, 2020
 June 30, 2019
Service cost $7
 $7
 $14
 $14
Interest cost 257
 400
 513
 800
Amortization of actuarial loss 763
 844
 1,526
 1,688
Amortization of prior service credit (1,223) (1,191) (2,279) (2,382)
Net periodic postretirement benefit (income)/cost (1)
 $(196) $60
 $(226) $120

(1) The service cost component of net periodic postretirement benefit cost is recognized in Total operating costs, while the other components are included in Other components of net periodic benefit costs in our Condensed Consolidated Statements of Operations, below Operating profit.
NOTE 10. INCOME TAXES
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 had income tax expense of $9.4 million and $10.7 million in the second quarter and first six months of 2019, respectively. The Company’s effective tax rates from continuing operations were 19.6% and 17.3% for the second quarter and first six months of 2020, respectively. The Company’s effective tax rates from continuing operations were 27.2% and 16.2% for the second quarter and first six months of 2019, respectively. The Company received a tax benefit in the second quarter of 2020 from a reduction in the Company’s reserve for uncertain tax positions, and in the first quarters of both 2020 and 2019 from stock price appreciation on stock-based awards that settled in the quarter, resulting in lower than statutory tax rates in the second quarter of 2020 and in the first six months of 2020 and 2019.
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") was signed into law. We do not expect the tax provisions in the CARES Act to have a material impact on the Company’s consolidated financial statements.
NOTE 11. EARNINGS PER SHARE
We compute earnings per share using a two-class method, which is an earnings allocation method used when a company’s capital structure includes either two or more classes of common stock or common stock and participating securities. This method determines earnings per share based on dividends declared on common stock and participating securities (i.e., distributed earnings), as well as participation rights of participating securities in any undistributed earnings.
Earnings per share is computed using both basic shares and diluted shares. The difference between basic and diluted shares is that diluted shares include the dilutive effect of the assumed exercise of outstanding securities. Our stock options, stock-settled long-term performance awards and restricted stock units could have a significant impact on diluted shares. The difference between basic and diluted shares of approximately 1.2 million in the second quarter and first six months of 2020 and 1.4 million in the second quarter and first six months of 2019, resulted primarily from the dilutive effect of certain stock options, performance awards and restricted stock units.
Securities that could potentially be dilutive are excluded from the computation of diluted earnings per share when a loss from continuing operations exists or when the exercise price exceeds the market value of our Class A Common Stock, because their inclusion would result in an anti-dilutive effect on per share amounts.
There were approximately 0.2 million restricted stock units excluded from the computation of diluted earnings per share because they were anti-dilutive in the first six months of 2020, and no anti-dilutive stock options or stock-settled long-term performance awards excluded in the same period. There were no anti-dilutive stock options, stock-settled long-term performance awards or restricted stock units excluded from the computation of diluted earnings per share in the first six months of 2019 or in the second quarters of 2020 and 2019, respectively.
NOTE 12. SUPPLEMENTAL STOCKHOLDERS’ EQUITY INFORMATION
In 2015, the Board of Directors authorized up to $101.1 million of repurchases of shares of the Company’s Class A Common Stock. As of June 28, 2020, repurchases under this authorization totaled $84.9 million (excluding commissions) and $16.2 million remained under this authorization. The Company did not repurchase any shares during the first six months of 2020. All purchases were made pursuant to our publicly announced share repurchase program. Our Board of Directors has

18


THE NEW YORK TIMES COMPANY
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

authorized us to purchase shares under this authorization from time to time, subject to market conditions and other factors. There is no expiration date with respect to this authorization.
The following table summarizes the changes in AOCI by component as of June 28, 2020:
(In thousands) Foreign Currency Translation Adjustments Funded Status of Benefit Plans Net Unrealized Gain on Available-For-Sale Securities Total Accumulated Other Comprehensive Loss
Balance as of December 29, 2019 $3,438
 $(498,986) $572
 $(494,976)
Other comprehensive income before reclassifications, before tax 365
 
 4,790
 5,155
Amounts reclassified from accumulated other comprehensive loss, before tax 
 12,628
 
 12,628
Income tax expense 97
 3,390
 1,276
 4,763
Net current-period other comprehensive income, net of tax 268
 9,238
 3,514
 13,020
Balance as of June 28, 2020 $3,706
 $(489,748) $4,086
 $(481,956)

The following table summarizes the reclassifications from AOCI for the six months ended June 28, 2020:
(In thousands)

Detail about accumulated other comprehensive loss components
  Amounts reclassified from accumulated other comprehensive loss Affects line item in the statement where net income is presented
Funded status of benefit plans:    
Amortization of prior service credit(1)
 $(3,251) Other components of net periodic benefit costs
Amortization of actuarial loss(1)
 15,879
 Other components of net periodic benefit costs
Total reclassification, before tax(2)
 12,628
  
Income tax expense 3,390
 Income tax expense
Total reclassification, net of tax $9,238
  
(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 ended June 28, 2020.
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) to make decisions about resources to be allocated to the segment and assess its performance; and (iii) it has available discrete financial information. The Company has determined that it has 1 reportable segment. Therefore, all required segment information can be found in the Condensed Consolidated Financial Statements.
NOTE 14. CONTINGENT LIABILITIES
Legal Proceedings
We are involved in various legal actions incidental to our business that are now pending against us. These actions are generally for amounts greatly in excess of the payments, if any, that may be required to be made. Although the Company cannot predict the outcome of these matters, it is possible that an unfavorable outcome in one or more matters could be material to the Company’s consolidated results of operations or cash flows for an individual reporting period. However, based on currently available information, management does not believe that the ultimate resolution of these matters, individually or in the aggregate, is likely to have a material effect on the Company’s financial position.

19


THE NEW YORK TIMES COMPANY
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

NOTE 15. RECLASSIFICATION
The Company has changed the expense captions on its Condensed Consolidated Statement of Operations effective for the quarter ended March 29, 2020. These changes were made in order to reflect how the Company manages its business and to communicate where the Company is investing resources and how this aligns with the Company’s strategy. The Company has reclassified expenses for the prior period in order to present comparable financial results. There is no change to consolidated operating income, operating expense, net income or cash flows as a result of this change in classification. A summary of changes is as follows:
“Production costs” has become “Cost of revenue”:
Cost of revenue contains all costs related to content creation, subscriber and advertiser servicing, and print production and distribution costs as well as infrastructure costs related to delivering digital content, which include all cloud and cloud related costs as well as compensation for employees that enhance and maintain our platforms. This represents a change from previously disclosed production costs, which did not include distribution or subscriber servicing costs. In addition, certain product development costs previously included in production costs have been reclassified to product development.
“Selling, general and administrative” has been split into three lines:
Sales and marketing represents all costs related to the Company’s marketing efforts as well as advertising sales costs.
Product development represents the Company’s investment into developing and enhancing new and existing product technology including engineering, product development, and data insights.
General and administrative includes general management, corporate enterprise technology, building operations and unallocated overhead costs.
In addition, incentive compensation, which was previously wholly included in selling, general and administrative, was reclassified to align with the classification of the related wages across each of the expense captions.




20


THE NEW YORK TIMES COMPANY
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

A reconciliation of the expenses as previously disclosed to the recast presentation for the quarter and six months ended June 30, 2019, is as follows:


 As Reported for the Quarter Ended June 30, 2019 Reclassification Recast for the Quarter Ended June 30, 2019
Operating costs      
Production costs:      
Wages and benefits $103,959
 $(103,959)
(1)(2) 
$
Raw materials 19,158
 (19,158)
(1) 

Other production costs 49,897
 (49,897)
(1)(2) 

Total production costs 173,014
 (173,014)
(1)(2) 

Cost of revenue (excluding depreciation and amortization) 
 245,195
(1)(3)(4) 
245,195
Selling, general and administrative costs 210,131
 (210,131)
(3)(4)(5) 

Sales and marketing 
 62,289
(4)(5) 
62,289
Product development 
 25,261
(2)(4)(5) 
25,261
General and administrative 
 50,400
(4)(5) 
50,400
Depreciation and amortization 15,180
 
 15,180
Total operating costs $398,325
 $
 $398,325


 As Reported for the Six Months Ended June 30, 2019 Reclassification Recast for the Six Months Ended June 30, 2019
Operating costs      
Production costs:      
Wages and benefits $206,867
 $(206,867)
(1)(2) 
$
Raw materials 38,996
 (38,996)
(1) 

Other production costs 95,234
 (95,234)
(1)(2) 

Total production costs 341,097
 (341,097)
(1)(2) 

Cost of revenue (excluding depreciation and amortization) 
 484,554
(1)(3)(4) 
484,554
Selling, general and administrative costs 431,594
 (431,594)
(3)(4)(5) 

Sales and marketing 
 137,109
(4)(5) 
137,109
Product development 
 48,989
(2)(4)(5) 
48,989
General and administrative 
 102,039
(4)(5) 
102,039
Depreciation and amortization 30,098
 
 30,098
Total operating costs $802,789
 $
 $802,789
(1) In the first quarter of 2020, the Company discontinued the use of the production cost caption. These costs, with the exception of product engineering and product design costs, which were reclassified to product development, were reclassified to cost of revenue.
(2) Costs related to developing and enhancing new and existing product technology previously included in production costs were reclassified to product development.
(3) Distribution and fulfillment costs and subscriber and advertising servicing related costs previously included in selling, general and administrative were reclassified to cost of revenue.
(4) Incentive Compensation previously included in selling, general and administrative was reclassified to align with the related salaries in each caption.
(5) In the first quarter of 2020, the Company discontinued the use of the selling, general and administrative cost caption. These costs, with the exception of those related to distribution and fulfillment, subscriber and advertising servicing and incentive compensation related to cost of revenue, were reclassified to the new captions: sales and marketing, product development and general and administrative.


21


THE NEW YORK TIMES COMPANY
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

NOTE 16. SUBSEQUENT EVENTS
On July 22, 2020, the Company entered into an agreement to acquire substantially all of the assets, and certain of the liabilities, of Serial Productions, LLC. The consideration includes approximately $25 million in cash that was paid at closing on July 29, 2020.
On June 30, 2020, our Board of Directors approved a quarterly dividend of $0.06 per share on our Class A and Class B common stock that was paid on July 23, 2020, to all stockholders of record as of the close of business on July 10, 2020.


22



Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
EXECUTIVE OVERVIEW
We are a global media organization that includes our newspaper, print and digital products and related businesses. We have one reportable segment.
We generate revenues principally from subscriptions and advertising. Other revenues primarily consist of revenues from licensing, affiliate referrals from Wirecutter, the leasing of floors in our New York headquarters building located at 620 Eighth Avenue, New York, New York (the “Company Headquarters”), commercial printing, television and film, retail commerce and NYT Live (our live events business).
Our main operating costs are employee-related costs.
In the accompanying analysis of financial information, we present certain information derived from consolidated financial information but not presented in our financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). We are presenting in this report supplemental non-GAAP financial performance measures that exclude depreciation, amortization, severance, non-operating retirement costs or multiemployer pension plan withdrawal costs, and certain identified special items, as applicable. These non-GAAP financial measures should not be considered in isolation from or as a substitute for the related GAAP measures, and should be read in conjunction with financial information presented on a GAAP basis. For further information and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures, see “Non-Operating Items—Non-GAAP Financial Measurements.”
The Company has changed the expense captions on its Condensed Consolidated Statement of Operations effective for the quarter ended March 29, 2020. These changes were made in order to reflect how the Company manages its business and to communicate where the Company is investing resources and how this aligns with the Company’s strategy. The Company has reclassified expenses for the prior period in order to present comparable financial results. There is no change to consolidated operating income, operating expense, net income or cash flows as a result of this change in classification. See Note 15 of the Notes to the Condensed Consolidated Financial Statements for more detail.
Financial Highlights
Diluted earnings per share from continuing operations were $0.14 and $0.15 for the second quarters of 2020 and 2019, respectively. Diluted earnings per share from continuing operations excluding severance, non-operating retirement costs and special items discussed below (or “adjusted diluted earnings per share,” a non-GAAP measure) were $0.18 and $0.17 for the second quarters of 2020 and 2019, respectively.
The Company had an operating profit of $28.8 million in the second quarter of 2020, compared with $37.9 million in the second quarter of 2019. The decrease was principally driven by lower advertising revenues, partially offset by higher digital-only subscription revenues and lower costs. Operating profit before depreciation, amortization, severance, multiemployer pension plan withdrawal costs and special items discussed below (or “adjusted operating profit,” a non-GAAP measure) decreased to $52.1 million in the second quarter of 2020 from $55.6 million in the second quarter of 2019, primarily as a result of the factors identified above.
Total revenues decreased 7.5% to $403.8 million in the second quarter of 2020 from $436.3 million in the second quarter of 2019, primarily driven by a decrease in advertising revenue, as well as a decrease in other revenue as a result of the conclusion of the first season of “The Weekly” television series, and lower revenues from live events and commercial printing. These declines were partially offset by higher subscription revenues driven by year-over-year growth of 50.0% in the number of subscriptions to the Company’s digital products, higher licensing revenue related to Facebook News and increased affiliate referral revenue from Wirecutter.
Operating costs decreased in the second quarter of 2020 to $374.9 million from $398.3 million in the second quarter of 2019, largely due to lower media expenses and lower advertising sales costs, as well as lower print production and distribution and advertising servicing costs. These were partially offset by higher digital content delivery and journalism costs, including growth in the number of newsroom and technology employees, and higher severance costs. We recognized severance costs of $6.3 million in the second quarter of 2020, compared with $0.7 million in the second quarter of 2019. The severance costs recognized in 2020 were largely related to workforce reductions primarily affecting our advertising department. Operating costs before depreciation, amortization, severance and multiemployer pension plan withdrawal costs (or “adjusted operating costs,” a non-GAAP measure) decreased in the second quarter of 2020 to $351.6 million from $380.7 million in the second quarter of 2019, primarily as a result of the factors identified above other than severance.

23



Impact of COVID-19 Pandemic
The global coronavirus (COVID-19) pandemic, and attempts to contain it, have continued to result in significant economic disruption, market volatility and uncertainty. These conditions have affected our business and could continue to do so for the foreseeable future.
Unlike many media companies, which are primarily dependent on advertising, we derive substantial revenue from subscriptions (approximately 60% of total revenues in 2019 and 68% in the first half of 2020). We experienced significant growth in the number of subscriptions to our digital news and other products in the first and second quarters of 2020, which we attribute in part to an extraordinary increase in traffic given the current news environment. However, revenues from the single-copy and bulk sales of our print newspaper (which include our international edition and collectively represent less than 10% of our total subscription revenues) have been, and we expect will continue to be, adversely affected as a result of widespread business closures, increased remote working and reductions in travel.
The worldwide economic slowdown caused by the pandemic also led to a significant decline in our advertising revenues, beginning in the first quarter of 2020 and continuing in the second quarter of 2020, and to the extent conditions persist, we expect that our advertising revenues will continue to be adversely affected.
However, our strong balance sheet has enabled us to continue to operate without the liquidity issues experienced by many other companies. As of June 28, 2020, we had cash, cash equivalents and short- and long-term marketable securities of $756.7 million, and we were debt-free. We believe our cash balance and cash provided by operations, in combination with other sources of cash, will be sufficient to meet our financing needs over the next twelve months, enabling us to continue hiring in our newsroom, and in product and technology, and continue investment in important growth areas.
We have incurred and expect to continue to incur some additional costs in response to the pandemic, including certain enhanced employee benefits. These costs have not been significant to date, but we may incur significant additional costs as we continue to implement operational changes in response to the pandemic.
At this time, the complete impact that the COVID-19 pandemic, and the associated economic downturn, will have on our business is uncertain. While we remain confident in our prospects over the longer term, the extent to which the pandemic impacts us will depend on numerous evolving factors and future developments, including the severity of the virus; the duration of the outbreak; the impact of the pandemic on economic activity and the companies with which we do business; governmental, business and other actions; travel restrictions; and social distancing measures, among many other factors. We will continue to actively monitor the situation and may take further actions that alter our business operations as may be required by federal, state, local or foreign authorities, or that we determine are appropriate. Please see “Part II—Item 1A—Risk Factors” for more information.


24



RESULTS OF OPERATIONS
The following table presents our consolidated financial results:
  For the Quarters Ended   For the Six Months Ended  
(In thousands) June 28, 2020
 June 30, 2019
 % Change
 June 28, 2020
 June 30, 2019
 % Change
Revenues     
      
Subscription $293,189
 $270,456
 8.4 % $578,623
 $541,266
 6.9 %
Advertising 67,760
 120,761
 (43.9)% 173,897
 245,849
 (29.3)%
Other 42,801
 45,041
 (5.0)% 94,866
 88,205
 7.6 %
Total revenues 403,750
 436,258
 (7.5)% 847,386
 875,320
 (3.2)%
Operating costs            
Cost of revenue (excluding depreciation and amortization) 230,147
 245,195
 (6.1)% 473,819
 484,554
 (2.2)%
Sales and marketing 39,617
 62,289
 (36.4)% 113,413
 137,109
 (17.3)%
Product development 30,737
 25,261
 21.7 % 61,539
 48,989
 25.6 %
General and administrative 58,812
 50,400
 16.7 % 111,673
 102,039
 9.4 %
Depreciation and amortization 15,631
 15,180
 3.0 % 30,816
 30,098
 2.4 %
Total operating costs 374,944
 398,325
 (5.9)% 791,260
 802,789
 (1.4)%
Operating profit 28,806
 37,933
 (24.1)% 56,126
 72,531
 (22.6)%
Other components of net periodic benefit costs 2,149
 1,833
 17.2 % 4,463
 3,668
 21.7 %
Interest income/(expense) and other, net 2,786
 (1,514) *
 16,640
 (2,817) *
Income from continuing operations before income taxes 29,443
 34,586
 (14.9)% 68,303
 66,046
 3.4 %
Income tax expense 5,781
 9,415
 (38.6)% 11,787
 10,719
 10.0 %
Net income 23,662
 25,171
 (6.0)% 56,516
 55,327
 2.1 %
Net income attributable to The New York Times Company common stockholders $23,662
 $25,171
 (6.0)% $56,516
 $55,327
 2.1 %
* Represents a change equal to or in excess of 100% or not meaningful


25



Revenues
Subscription Revenues
Subscription revenues consist of revenues from subscriptions to our print and digital products (which include our news product, as well as our Crossword, Cooking and audio products), and single-copy and bulk sales of our print products (which represent less than 10% 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.
Subscription revenues increased 8.4% in the second quarter of 2020 compared with the same prior-year period, primarily due to year-over-year growth of 50.0% in the number of subscriptions to the Company’s digital products. This was partially offset by a decrease in print subscription revenue attributable to lower single copy and bulk sales, as well as fewer subscriptions, partially offset by an increase in home delivery prices.
Print domestic home delivery subscriptions totaled approximately 840,000 at the end of the second quarter of 2020, flat compared with the end of the first quarter of 2020 and a net decrease of 38,000 compared with the end of the second quarter of 2019. The year-over-year decrease is a result of secular declines.
Paid digital-only subscriptions totaled approximately 5,670,000 at the end of the second quarter of 2020, a net increase of 669,000 subscriptions compared with the end of the first quarter of 2020 and a net increase of 1,890,000 compared with the end of the second quarter of 2019. This significant growth in the second quarter is attributed in part to an extraordinary increase in traffic given the current news environment, as well as the digital access model that we launched last year, which requires users to register and log in to access most of our content.
Digital-only news product subscriptions totaled approximately 4,390,000 at the end of the second quarter of 2020, a 493,000 net increase compared with the end of the first quarter of 2020 and a 1,402,000 increase compared with the end of the second quarter of 2019. Other product subscriptions (which include our Crossword, Cooking and audio products) totaled approximately 1,280,000 at the end of the second quarter of 2020, a 176,000 increase compared with the end of the first quarter of 2020 and a 488,000 increase compared with the end of the second quarter of 2019.
The following table summarizes print and digital subscription revenues for the second quarters and first six months of 2020 and 2019:
  For the Quarters Ended   For the Six Months Ended  
(In thousands) June 28, 2020
 June 30, 2019
 % Change
 June 28, 2020
 June 30, 2019
 % Change
Print subscription revenues:            
Domestic home delivery subscription revenues(1)
 $132,971
 $133,038
 (0.1)% $266,708
 $268,241
 (0.6)%
Single copy, NYT International and other subscription revenues(2)
 14,234
 24,783
 (42.6)% 35,921
 50,531
 (28.9)%
   Subtotal print subscription revenues 147,205
 157,821
 (6.7)% 302,629
 318,772
 (5.1)%
Digital-only subscription revenues:            
News product subscription revenues(3)
 132,922
 104,430
 27.3 % 251,880
 206,776
 21.8 %
Other product subscription revenues(4)
 13,062
 8,205
 59.2 % 24,114
 15,718
 53.4 %
   Subtotal digital-only subscription revenues 145,984
 112,635
 29.6 % 275,994
 222,494
 24.0 %
Total subscription revenues $293,189
 $270,456
 8.4 % $578,623
 $541,266
 6.9 %
(1) Includes free access to some or all of the Company’s digital products.
(2) NYT International is the international edition of our print newspaper.
(3) Includes revenues from subscriptions to the Company’s news product. News product subscription packages that include access to the Company’s Crossword and Cooking products are also included in this category.
(4) Includes revenues from standalone subscriptions to the Company’s Crossword, Cooking and audio products.

26



The following table summarizes print and digital subscriptions as of the end of the second quarters of 2020 and 2019:
  For the Quarters Ended  
(In thousands) June 28, 2020
 June 30, 2019
 % Change
Print subscriptions 840
 878
 (4.3)%
Digital-only subscriptions:      
News product subscriptions(1)
 4,390
 2,988
 46.9 %
Other product subscriptions(2)
 1,280
 792
 61.6 %
   Subtotal digital-only subscriptions 5,670
 3,780
 50.0 %
Total subscriptions 6,510
 4,658
 39.8 %
(1) Includes subscriptions to the Company’s news product. News product subscription packages that include access to the Company’s Crossword and Cooking products are also included in this category.
(2) Includes standalone subscriptions to the Company’s Crossword, Cooking and audio products. During the first quarter of 2020, the Company acquired a subscription-based audio product. Approximately 20,000 of the audio product’s subscriptions were included in the Company’s digital-only other product subscriptions at the time of acquisition.

27



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

chart-e30ac91963eb975d4f6.jpg

chart-ea568a956eed4e8c005.jpg
(1) Amounts may not add due to rounding.
(2) Print domestic home delivery subscriptions include free access to some or all of our digital products.
(3) Print Other includes single copy, NYT International and other subscription revenues.
Note: Revenues for 2012 and 2017 include the impact of an additional week.

28



Advertising Revenues
Advertising revenues are primarily derived from offerings sold directly to marketers by our advertising sales teams. A significantly smaller and diminishing proportion of our total advertising revenues is generated through programmatic auctions run by third-party ad exchanges. Advertising revenues are primarily determined by the volume, rate and mix of advertisements. Display advertising revenue is principally from advertisers promoting products, services or brands in print in the form of column-inch ads, and on our digital platforms in the form of banners and video in websites, mobile applications and emails. Display advertising includes advertisements that direct viewers to branded content on our platforms. Other print advertising primarily represents classified advertising revenue, including line-ads sold in the major categories of real estate, help wanted, automotive and other as well as revenue from preprinted advertising, also known as free-standing inserts. Other digital advertising revenue primarily includes creative services fees, including those associated with our branded content studio; advertising revenue from our podcasts; and advertising revenue generated by Wirecutter, our product review and recommendation website.
Advertising revenues (print and digital) by category were as follows:


For the Quarters Ended







June 28, 2020
June 30, 2019
% Change
(In thousands)
Print
Digital
Total
Print
Digital
Total
Print
Digital
Total
Advertising revenues:















Display
$21,460

$30,466

$51,926

$55,859

$42,833

$98,692

(61.6)%
(28.9)%
(47.4)%
Other
6,769

9,065

15,834

6,876

15,193

22,069

(1.6)%
(40.3)%
(28.3)%
Total advertising
$28,229

$39,531

$67,760

$62,735

$58,026

$120,761

(55.0)%
(31.9)%
(43.9)%
  For the Six Months Ended      
  June 28, 2020 June 30, 2019 % Change
(In thousands)
Print
Digital
Total
Print
Digital
Total Print Digital Total
Advertising revenues:                
Display
$69,619

$70,360

$139,979

$118,201

$84,945

$203,146
 (41.1)% (17.2)% (31.1)%
Other
13,589

20,329

33,918

14,079

28,624

42,703
 (3.5)% (29.0)% (20.6)%
Total advertising
$83,208

$90,689

$173,897

$132,280

$113,569

$245,849
 (37.1)% (20.1)% (29.3)%
Print advertising revenues, which represented 41.7% of total advertising revenues for the second quarter of 2020 and 47.8% of total advertising revenues for the first six months of 2020, declined 55.0% to $28.2 million in the second quarter of 2020 and 37.1% to $83.2 million in the first six months of 2020, compared with $62.7 million and $132.3 million, respectively, in the same prior-year periods. The decline in print advertising revenues in the second quarter of 2020 and for the six months of 2020 compared with the same prior-year periods was driven by lower demand as the COVID-19 pandemic further accelerated secular trends. The decline in print display advertising revenue in the second quarter of 2020 was primarily in the entertainment, luxury and technology categories. The decline in print display advertising revenue in the first six months of 2020 was primarily in the entertainment, luxury and media categories.
Digital advertising revenues, which represented 58.3% of total advertising revenues for the second quarter of 2020 and 52.2% of total advertising revenues for the first six months of 2020, declined 31.9% to $39.5 million in the second quarter of 2020 and 20.1% to $90.7 million in the first six months of 2020, compared with $58.0 million and $113.6 million, respectively, in the same prior-year periods. The decrease in digital advertising revenue for the second quarter of 2020 and for the first six months of 2020 compared with the same periods in the prior year primarily reflects lower demand for direct-sold advertising as advertisers respond to weak and uneven economic conditions a result of the COVID-19 pandemic.
Other Revenues
Other revenues primarily consist of revenues from licensing, affiliate referrals from Wirecutter, the leasing of floors in our Company Headquarters, commercial printing, television and film, retail commerce and NYT Live (our live events business). Building rental revenue consists of revenue from the lease of floors in our Company Headquarters, which totaled $7.3 million and $7.4 million in the second quarters of 2020 and 2019, respectively, and $15.2 million and $15.1 million in the first six months of 2020 and 2019, respectively.
Other revenues decreased 5.0% in the second quarter of 2020 and increased 7.6% in the first six months of 2020, compared with the same prior-year periods. The decrease in other revenues for the second quarter of 2020 compared with the

29



same period in the prior year is primarily a result of the conclusion of the first season of “The Weekly” television series, as well as lower revenues from live events and commercial printing. These declines were partially offset by higher licensing revenue related to Facebook News and affiliate referral revenue related to Wirecutter. The increase in other revenues for the first six months of 2020 compared with the same period in the prior year primarily resulted from higher licensing revenue related to Facebook News and affiliate referral revenue related to Wirecutter, partially offset by a decline in revenues from commercial printing and live events.
Operating Costs
As noted above, effective with the quarter ended March 29, 2020, the Company has changed the Operating costs captions on its Condensed Consolidated Statement of Operations. See Note 15 of the Notes to the Condensed Consolidated Financial Statements for more detail.
Operating costs were as follows:
  For the Quarters Ended   For the Six Months Ended  
(In thousands) June 28, 2020
 June 30, 2019
 % Change
 June 28, 2020
 June 30, 2019
 % Change
Operating costs:            
Cost of revenue (excluding depreciation and amortization) $230,147
 $245,195
 (6.1)% $473,819
 $484,554
 (2.2)%
Sales and marketing 39,617
 62,289
 (36.4)% 113,413
 137,109
 (17.3)%
Product development 30,737
 25,261
 21.7 % 61,539
 48,989
 25.6 %
General and administrative 58,812
 50,400
 16.7 % 111,673
 102,039
 9.4 %
Depreciation and amortization 15,631
 15,180
 3.0 % 30,816
 30,098
 2.4 %
Total operating costs $374,944
 $398,325
 (5.9)% $791,260
 $802,789
 (1.4)%
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 costs as well as infrastructure costs related to delivering digital content, which include all cloud and cloud-related costs as well as compensation for employees that enhance and maintain our platforms.
Cost of revenue decreased in the second quarter of 2020 by $15.0 million compared with the second quarter of 2019, largely due to lower print production and distribution costs of $17.5 million and lower advertising servicing costs of $7.2 million, which were partially offset by higher digital content delivery costs of $5.0 million, higher subscriber servicing costs of $2.8 million and higher journalism costs of $1.9 million. The decrease in print production and distribution costs was largely due to lower newsprint consumption and pricing and lower distribution costs. The decrease in advertising servicing costs was due to lower volume of campaigns and workforce reductions affecting our advertising department. Higher digital content delivery costs were due to growth in the number of employees to support cloud related operations, content creation and delivery systems as well as higher cloud storage costs. The increase in subscriber servicing costs was primarily due to higher credit card processing fees due to increased subscriptions. The increase in journalism costs was largely driven by an increase in the number of newsroom employees, partially offset by lower costs related to our television series.
Cost of revenue decreased in the first six months of 2020 by $10.7 million compared with the first six months of 2019, largely due to lower print production and distribution costs of $28.4 million and lower advertising servicing costs of $9.6 million, which were partially offset by higher journalism costs of $15.7 million, higher digital content delivery costs of $7.3 million and higher subscriber servicing costs of $4.2 million. The decreases in print production and distribution costs and in advertising servicing costs were largely due to the factors identified above. The increase in journalism costs was largely driven by an increase in the number of newsroom employees. Higher digital content delivery and subscriber servicing costs were largely due to the factors identified above.
Sales and Marketing
Sales and marketing includes costs related to the Company’s marketing efforts as well as advertising sales costs.
Sales and marketing costs in the second quarter of 2020 decreased by $22.7 million compared with the second quarter of 2019, due primarily to lower media expenses, as well as lower advertising sales costs.

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Sales and marketing costs decreased in the first six months of 2020 by $23.7 million compared with the first six months of 2019, primarily as a result of the factors identified above.
Media expenses, a component of sales and marketing costs, which represents the cost to promote our subscription business, decreased to $16.5 million in the second quarter of 2020 from $33.9 million in the first quarter of 2019 and decreased to $61.9 million in the first six months of 2020 from $78.7 million in the first six months of 2019 as the Company reduced its marketing spend during the initial months of the COVID-19 pandemic.
Product Development
Product development includes costs associated with the Company’s investment into developing and enhancing new and existing product technology including engineering, product development, and data insights.
Product development costs in the second quarter of 2020 increased by $5.5 million compared with the second quarter of 2019, largely due to growth in the number of digital product development employees in connection with digital subscription strategic initiatives.
Product development costs in the first six months of 2020 increased by $12.6 million compared with the first six months of 2019, primarily as a result of the factors identified above.
General and Administrative Costs
General and administrative costs includes general management, corporate enterprise technology, building operations and unallocated overhead costs.
General and administrative costs in the second quarter of 2020 increased by $8.4 million compared with the second quarter of 2019, primarily due to higher severance costs largely related to workforce reductions primarily affecting our advertising department.
General and administrative costs in the first six months of 2020 increased by $9.6 million compared with the first six months of 2019, primarily as a result of the factors identified above.
Depreciation and Amortization
Depreciation and amortization costs in the second quarter and first six months of 2020 remained relatively flat compared with the same prior-year periods.
Other Items
See Note 7 of the Notes to the Condensed Consolidated Financial Statements for additional information regarding other items.
NON-OPERATING ITEMS
Other Components of Net Periodic Benefit Costs
See Note 9 of the Notes to the Condensed Consolidated Financial Statements for information regarding other components of net periodic benefit costs.
Interest Income/(expense) and other, net
See Note 7 of the Notes to the Condensed Consolidated Financial Statements for information regarding interest income/(expense) and other, net.
Income Taxes
See Note 10 of the Notes to the Condensed Consolidated Financial Statements for information regarding income taxes.
Non-GAAP Financial Measures
We have included in this report certain supplemental financial information derived from consolidated financial information but not presented in our financial statements prepared in accordance with GAAP. Specifically, we have referred to the following non-GAAP financial measures in this report:
diluted earnings per share from continuing operations excluding severance, non-operating retirement costs and the impact of special items (or adjusted diluted earnings per share from continuing operations);
operating profit before depreciation, amortization, severance, multiemployer pension plan withdrawal costs and special items (or adjusted operating profit); and

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operating costs before depreciation, amortization, severance and multiemployer pension plan withdrawal costs (or adjusted operating costs).
The special item in 2020 consisted of:
a $10.1 million gain ($7.4 million after tax or $.04 per share) related to a non-marketable equity investment transaction. The gain is comprised of $2.5 million realized gain due to the partial sale of the investment and an $7.6 million unrealized gain due to the mark to market of the remaining investment, and is included in Interest income/(expense) and other, net in our Condensed Consolidated Statements of Operations.
There were no special items in 2019.
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 is useful in evaluating the ongoing performance of the Company’s businesses as it excludes the significant non-cash impact of depreciation and amortization as well as items not indicative of ongoing operating activities. Total operating costs include depreciation, amortization, severance and multiemployer pension plan withdrawal costs. Total operating costs, excluding these items, provide investors with helpful supplemental information on the Company’s underlying operating costs that is used by management in its financial and operational decision-making.
Management considers special items, which may include impairment charges, pension settlement charges and other items that arise from time to time, to be outside the ordinary course of our operations. Management believes that excluding these items provides a better understanding of the underlying trends in the Company’s operating performance and allows more accurate comparisons of the Company’s operating results to historical performance. In addition, management excludes severance costs, which may fluctuate significantly from quarter to quarter, because it believes these costs do not necessarily reflect expected future operating costs and do not contribute to a meaningful comparison of the Company’s operating results to historical performance.
Included in our non-GAAP financial measures are non-operating retirement costs which are primarily tied to financial market performance and changes in market interest rates and investment performance. Management considers non-operating retirement costs to be outside the performance of the business and believes that presenting adjusted diluted earnings per share from continuing operations excluding non-operating retirement costs and presenting adjusted operating results excluding multiemployer pension plan withdrawal costs, in addition to the Company’s GAAP diluted earnings per share from continuing operations and GAAP operating results, provide increased transparency and a better understanding of the underlying trends in the Company’s operating business performance.

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Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are set out in the tables below.
Reconciliation of diluted earnings per share from continuing operations excluding severance, non-operating retirement costs and special items (or adjusted diluted earnings per share from continuing operations)
  For the Quarters Ended   For the Six Months Ended  
  June 28, 2020
 June 30, 2019
 % Change
 June 28, 2020
 June 30, 2019
 % Change
Diluted earnings per share from continuing operations $0.14
 $0.15
 (6.7)% $0.34
 $0.33
 3.0%
Add:            
Severance 0.04
 
 *
 0.04
 0.01
 *
Non-operating retirement costs:       

 

 

Multiemployer pension plan withdrawal costs 0.01
 0.01
 
 0.02
 0.02
 
Other components of net periodic benefit costs 0.01
 0.01
 
 0.03
 0.02
 50.0 %
Special item:            
Gain from non-marketable equity security 
 
 
 (0.06) 
 *
Income tax expense of adjustments (0.02) (0.01) *
 (0.01) (0.01) 
Adjusted diluted earnings per share from continuing operations(1)
 $0.18
 $0.17
 5.9 % $0.35
 $0.37
 (5.4)%
(1)Amounts may not add due to rounding.
* Represents a change equal to or in excess of 100% or not meaningful
Reconciliation of operating profit before depreciation & amortization, severance, multiemployer pension plan withdrawal costs and special items (or adjusted operating profit)
  For the Quarters Ended   For the Six Months Ended  
(In thousands) June 28, 2020
 June 30, 2019
 % Change
 June 28, 2020
 June 30, 2019
 % Change
Operating profit $28,806
 $37,933
 (24.1)% $56,126
 $72,531
 (22.6)%
Add:            
Depreciation & amortization 15,631
 15,180
 3.0 % 30,816
 30,098
 2.4 %
Severance 6,305
 672
 *
 6,675
 2,075
 *
Multiemployer pension plan withdrawal costs 1,400
 1,801
 (22.3)% 2,823
 3,250
 (13.1)%
Adjusted operating profit $52,142
 $55,586
 (6.2)% $96,440
 $107,954
 (10.7)%
* Represents a change equal to or in excess of 100% or not meaningful


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Reconciliation of operating costs before depreciation & amortization, severance and multiemployer pension plan withdrawal costs (or adjusted operating costs)
  For the Quarters Ended   For the Six Months Ended  
(In thousands) June 28, 2020
 June 30, 2019
 % Change
 June 28, 2020
 June 30, 2019
 % Change
Operating costs $374,944
 $398,325
 (5.9)% $791,260
 $802,789
 (1.4)%
Less:            
Depreciation & amortization 15,631
 15,180
 3.0 % 30,816
 30,098
 2.4 %
Severance 6,305
 672
 *
 6,675
 2,075
 *
Multiemployer pension plan withdrawal costs 1,400
 1,801
 (22.3)% 2,823
 3,250
 (13.1)%
Adjusted operating costs $351,608
 $380,672
 (7.6)% $750,946
 $767,366
 (2.1)%
* Represents a change equal to or in excess of 100% or not meaningful


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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 (see “—Executive Overview— Impact of COVID-19 Pandemic” and “Part II—Item 1A—Risk Factors”), given the strength of our balance sheet, we do not expect the pandemic to materially impact our liquidity position. As of June 28, 2020, we had cash, cash equivalents and short- and long-term marketable securities of $756.7 million. Our cash and marketable securities balances between the end of 2019 and June 28, 2020, increased, primarily due to cash proceeds from operating activities and proceeds from sale of investments, partially offset by capital expenditures, dividend payments, share-based compensation tax withholding, and costs associated with the acquisition of a business.
We have paid quarterly dividends on the Class A and Class B Common Stock each quarter since late 2013. In February 2020, the Board of Directors approved an increase in the quarterly dividend to $0.06 per share, which was paid in April 2020. On June 30, 2020, the Board of Directors declared a quarterly dividend of $0.06 per share on the Class A and Class B Common Stock, which was paid in July 2020. 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.
Capital Resources
Sources and Uses of Cash
Cash flows provided by/(used in) by category were as follows:
  For the Six Months Ended  
(In thousands) June 28, 2020
 June 30, 2019
 % Change
Operating activities $118,590
 $64,000
 85.3%
Investing activities $(72,938) $(23,521) *
Financing activities $(28,192) $(27,850) 1.2%
* Represents a change equal to or in excess of 100% or not meaningful
Operating Activities
Cash from operating activities is generated by cash receipts from subscriptions, advertising sales and other revenue. Operating cash outflows include payments for employee compensation, pension and other benefits, raw materials, marketing expenses, interest and income taxes.
Net cash provided by operating activities increased in the first six months of 2020 compared with the same prior-year period due to higher cash collections from accounts receivable and higher cash payments received from prepaid subscriptions, partially offset by higher cash payments made to settle accounts payable, accrued payroll and other liabilities.
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 of 2020 was primarily related to $49.8 million in net purchases of marketable securities, $21.5 million in capital expenditures payments, and $8.1 million cash outflow for the acquisition of a business.
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 of 2020 was primarily related to dividend payments of $18.4 million and share-based compensation tax withholding payments of $11.7 million.

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Restricted Cash
We were required to maintain $15.8 million of restricted cash as of June 28, 2020, and $17.1 million as of December 29, 2019, substantially all of which is set aside to collateralize workers’ compensation obligations.
Capital Expenditures
Capital expenditures totaled approximately $17 million and $24 million in the first six months of 2020 and 2019, respectively. The decrease in capital expenditures was primarily driven by lower investments in technology and lower expenditures related to improvements at our College Point, N.Y. printing and distribution facility. The cash payments related to capital expenditures totaled approximately $22 million and $23 million in the first six months of 2020 and 2019, 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 28, 2020, 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 POLICIES
Our critical accounting policies are detailed in our Annual Report on Form 10-K for the year ended December 29, 2019. Other than as described in Note 2 of the Notes to the Condensed Consolidated Financial Statements, as of June 28, 2020, our critical accounting policies have not changed from December 29, 2019.
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 29, 2019. As of June 28, 2020, our contractual obligations and off-balance sheet arrangements have not changed materially from December 29, 2019.
FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q, including the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” contains forward-looking statements that relate to future events or our future financial performance. We may also make written and oral forward-looking statements in our Securities and Exchange Commission (“SEC”) filings and otherwise. We have tried, where possible, to identify such statements by using words such as “believe,” “expect,” “intend,” “estimate,” “anticipate,” “will,” “could,” “project,” “plan” and similar expressions in connection with any discussion of future operating or financial performance. Any forward-looking statements are and will be based upon our then-current expectations, estimates and assumptions regarding future events and are applicable only as of the dates of such statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated in any such statements. You should bear this in mind as you consider forward-looking statements. Factors that we think could, individually or in the aggregate, cause our actual results to differ materially from expected and historical results include those described under the heading “Part II-Item 1A-Risk Factors” in this report, in our Annual Report on Form 10-K for the year ended December 29, 2019, as well as other risks and factors identified from time to time in our SEC filings.    
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Our Annual Report on Form 10-K for the year ended December 29, 2019, details our disclosures about market risk. As of June 28, 2020, there were no material changes in our market risks from December 29, 2019.

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Item 4. Controls and Procedures
EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
Our management, with the participation of our principal executive officer and our principal financial officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934) as of June 28, 2020. 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
There were no changes in our internal control over financial reporting during the quarter ended June 28, 2020, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. We have not experienced a material impact to our internal control over financial reporting despite the fact that most of our employees are working remotely due to the COVID-19 pandemic. We are continuing to monitor and evaluate the situation to minimize any impact of the pandemic on the design and operating effectiveness of our internal control over financial reporting.

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PART II. OTHER INFORMATION
Item 1. Legal Proceedings
We are involved in various legal actions incidental to our business that are now pending against us. These actions are generally for amounts greatly in excess of the payments, if any, that may be required to be made. Although the Company cannot predict the outcome of these matters, it is possible that an unfavorable outcome in one or more matters could be material to the Company’s consolidated results of operations or cash flows for an individual reporting period. However, based on currently available information, management does not believe that the ultimate resolution of these matters, individually or in the aggregate, is likely to have a material effect on the Company’s financial position.
Item 1A. Risk Factors
The following risk factor supplements the risk factors set forth in “Item 1A—Risk Factors” in our Annual Report on Form 10-K for the year ended December 29, 2019.
The global coronavirus (COVID-19) pandemic will continue to affect our industry, business and results of operations.
The global coronavirus (COVID-19) pandemic and attempts to contain it have continued to result in significant economic disruption, market volatility and uncertainty. As with many companies, the pandemic has disrupted our business and could continue to do so for the foreseeable future.
We derive substantial revenues from the sale of advertising (approximately 29% of our total revenues in 2019). Advertising spending is sensitive to overall economic conditions, and our advertising revenues are adversely affected if advertisers respond to weak and uneven economic conditions by reducing their budgets or shifting spending patterns or priorities, or if they are forced to consolidate or cease operations. The worldwide economic slowdown caused by the outbreak and spread of COVID-19 has materially adversely affected our advertising revenues, and if these conditions were to persist for an extended period of time, our advertising revenues would continue to be adversely affected. Likewise, the pandemic and attempts to contain it have resulted in the postponement and cancellation of live events, which has adversely affected our revenues from live events and related services, and will continue to adversely affect these revenues to the extent these conditions persist. It is possible that these revenues will not return to pre-pandemic levels once economic conditions improve.
We derive the majority of our revenues from the sale of subscriptions (approximately 60% of our total revenues in 2019). Although we have experienced significant growth in the number of subscriptions to our digital news and other products in the first and second quarters of 2020, this growth rate has been driven in part by an extraordinary increase in traffic given the current news environment, and may not be sustainable or indicative of results for future periods. In addition, the recent growth may reflect in part the shifting forward of growth that we would have otherwise seen in subsequent periods. Accordingly, growth in our subscriptions may slow due to slower acquisition and/or higher cancellations as the pandemic subsides and government and other restrictions are relaxed. Furthermore, to the extent that a prolonged weakening of global economic conditions leads consumers to reduce spending on discretionary activities, subscribers may increasingly shift to lower-priced subscription options or may forgo subscriptions altogether. In light of these factors, our ability to obtain new subscribers or to retain subscribers at their current or higher pricing levels could be hindered, reducing our subscription revenue. In addition, revenues from the single-copy and bulk sales of our print newspaper (which include our international edition and collectively represent less than 10% of our total subscription revenues) have been, and we expect will continue to be, adversely affected as a result of widespread business closures, increased remote working and reductions in travel.
In response to public health recommendations, government mandates and other concerns, we have altered certain aspects of our operations, including having the vast majority of our workforce work remotely since March 2020, and these remote work arrangements are expected to continue at least through the remainder of the year. An extended period of remote work arrangements could introduce operational risk (including cybersecurity risk), result in a decline in productivity or otherwise negatively affect our ability to manage the business. In addition, if a significant portion of our workforce is unable to work, including because of illness, travel or government restrictions in connection with COVID-19 or shortages of necessary personal protective equipment, our operations may be negatively impacted. We will continue to actively monitor the issues raised by the COVID-19 pandemic and may take further actions that alter our business operations as may be required or that we determine are appropriate. We have incurred and expect to continue to incur some additional costs in response to the pandemic, including certain enhanced employee benefits. These costs have not been significant to date, but we may incur significant additional costs as we continue to implement operational changes in response to the pandemic. It is not clear what the potential effects any such alterations or modifications may have on our business, including the effects on our financial results.
The Times is printed at our production and distribution facility in College Point, N.Y., as well as under contract at remote print sites across the United States and throughout the world. If a significant percentage of our College Point employees were unable to work as a result of the pandemic, our ability to print and distribute the newspaper and other commercial print products in the New York area could be negatively affected. To the extent our newsprint suppliers or print and distribution partners are

38



affected by government “stay-at-home” mandates or recommendations, financial pressures, labor shortages or other circumstances relating to COVID-19 that lead to reduced operations or consolidations or closures of print sites and/or distribution routes, this could lead to an increase in costs to print and distribute our newspapers and/or a decrease in revenues if printing and distribution are disrupted. Some of our print and distribution partners have taken steps to reduce the frequency with which newspapers are printed and distributed, and additional partners may take similar steps. Significant disruptions to operations at our College Point production and distribution facility or at our newsprint suppliers or print and distribution partners could adversely affect our operating results.
It is also possible that the COVID-19 pandemic may accelerate or worsen the other risks discussed in Item 1A. Risk Factors in our Annual Report on Form 10-K. The extent to which the COVID-19 pandemic impacts us will depend on numerous evolving factors and future developments that we are not able to predict, including the severity of the virus; the duration of the outbreak; the impact of the pandemic on economic activity and the companies with which we do business; governmental, business and other actions; travel restrictions and social distancing measures, among many other factors.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
(c) Issuer Purchases of Equity Securities
In 2015, the Board of Directors approved an authorization of $101.1 million to repurchase shares of the Company’s Class A Common Stock. As of June 28, 2020, repurchases under this authorization totaled $84.9 million (excluding commissions), and $16.2 million remained under this authorization. The Company did not repurchase any shares during the first six months of 2020. All purchases were made pursuant to our publicly announced share repurchase program. Our Board of Directors has authorized us to purchase shares from time to time, subject to market conditions and other factors. There is no expiration date with respect to this authorization.

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Item 6. Exhibits
Exhibit No. 
  
   
31.1 
   
31.2 
   
32.1 
   
32.2 
   
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).

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
  THE NEW YORK TIMES COMPANY
  (Registrant)
   
Date:August 6, 2020/s/ Roland A. Caputo
  
Roland A. Caputo
Executive Vice President and
Chief Financial Officer
(Principal Financial Officer)


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