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) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Class A Common Stock of $.10 par value | NYT | New York Stock Exchange |
Large Accelerated Filer |
☑
|
Accelerated filer | ☐ | |||||||||||
Non-accelerated filer
|
☐ | Smaller reporting company | ☐ | |||||||||||
Emerging growth company | ☐ |
INDEX TO THE NEW YORK TIMES COMPANY 2020 ANNUAL REPORT ON FORM 10-K |
ITEM NO. | ||||||||||||||||||||
Human Capital | ||||||||||||||||||||
16 | ||||||||||||||||||||
PART I |
FORWARD-LOOKING STATEMENTS
|
ITEM 1. BUSINESS
|
(In metric tons) | 2020 | 2019 | ||||||||||||
Newsprint(1)
|
71,600 | 93,300 | ||||||||||||
Coated and Supercalendered Paper(2)
|
10,200 | 13,200 |
Employee Category | Expiration Date | ||||
NewsGuild of New York | March 30, 2021 | ||||
Paperhandlers | March 30, 2021 | ||||
Pressmen | March 30, 2021 | ||||
Stereotypers | March 30, 2021 | ||||
Voice Actors | October 31, 2021 | ||||
Machinists | March 30, 2022 | ||||
Mailers | March 30, 2023 | ||||
Drivers | March 30, 2025 | ||||
Typographers | March 30, 2025 |
ITEM 1A. RISK FACTORS
|
ITEM 1B. UNRESOLVED STAFF COMMENTS
|
ITEM 2. PROPERTIES
|
ITEM 3. LEGAL PROCEEDINGS
|
ITEM 4. MINE SAFETY DISCLOSURES
|
Name | Age |
Employed By
Registrant Since |
Recent Position(s) Held as of February 25, 2021 |
|||||||||||||||||
A.G. Sulzberger | 40 | 2009 | Chairman (since January 2021) and Publisher of The Times (since 2018); Deputy Publisher (2016 to 2017); Associate Editor (2015 to 2016); Assistant Editor (2012 to 2015) | |||||||||||||||||
Meredith Kopit Levien | 49 | 2013 | President and Chief Executive Officer (since September 2020); Executive Vice President and Chief Operating Officer (2017 to September 2020); Executive Vice President and Chief Revenue Officer (2015 to 2017); Executive Vice President, Advertising (2013 to 2015); Chief Revenue Officer, Forbes Media LLC (2011 to 2013) | |||||||||||||||||
R. Anthony Benten | 57 | 1989 | Senior Vice President, Treasurer (since 2016) and Chief Accounting Officer (since 2019); Corporate Controller (2007 to 2019); Senior Vice President, Finance (2008 to 2016) | |||||||||||||||||
Diane Brayton | 52 | 2004 | Executive Vice President, General Counsel (since 2017) and Secretary (since 2011); Interim Executive Vice President, Talent & Inclusion (August 2020 to January 2021); Deputy General Counsel (2016); Assistant Secretary (2009 to 2011) and Assistant General Counsel (2009 to 2016) | |||||||||||||||||
Roland A. Caputo | 60 | 1986 | Executive Vice President and Chief Financial Officer (since 2018); Executive Vice President, Print Products and Services Group (2013 to 2018); Senior Vice President and Chief Financial Officer, The New York Times Media Group (2008 to 2013) | |||||||||||||||||
Jacqueline Welch | 51 | 2021 | Executive Vice President and Chief Human Resources Officer (since January 2021); Senior Vice President, Chief Human Resources Officer and Chief Diversity Officer, Freddie Mac (2016 to 2020); independent consultant (2014 to 2016); Senior Vice President, Human Resources – International (2010 to 2013) and Senior Vice President, Talent Management and Diversity (2008 to 2010), Turner Broadcasting |
PART II |
ITEM 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
Period |
Total number of
shares of Class A Common Stock purchased (a) |
Average
price paid per share of Class A Common Stock (b) |
Total number of
shares of Class A Common Stock purchased as part of publicly announced plans or programs (c) |
Maximum
number (or approximate dollar value) of shares of Class A Common Stock that may yet be purchased under the plans or programs (d) |
||||||||||||||||||||||
Total for the fourth quarter of 2020 | — | $ | — | — | $ | 16,236,612 |
ITEM 6. SELECTED FINANCIAL DATA
|
As of and for the Years Ended | ||||||||||||||||||||||||||||||||
(In thousands) |
December 27,
2020 |
December 29,
2019 |
December 30,
2018 |
December 31,
2017 |
December 25,
2016 |
|||||||||||||||||||||||||||
(52 Weeks) | (52 Weeks) | (52 Weeks) | (53 Weeks) | (52 Weeks) | ||||||||||||||||||||||||||||
Statement of Operations Data | ||||||||||||||||||||||||||||||||
Revenues | $ | 1,783,639 | $ | 1,812,184 | $ | 1,748,598 | $ | 1,675,639 | $ | 1,555,342 | ||||||||||||||||||||||
Operating costs | 1,607,383 | 1,634,639 | 1,558,778 | 1,493,278 | 1,419,416 | |||||||||||||||||||||||||||
Headquarters redesign and consolidation | — | — | 4,504 | 10,090 | — | |||||||||||||||||||||||||||
Restructuring charge | — | 4,008 | — | — | 16,518 | |||||||||||||||||||||||||||
(Gain)/loss from pension liability adjustment | — | (2,045) | (4,851) | (4,320) | 6,730 | |||||||||||||||||||||||||||
Operating profit | 176,256 | 175,582 | 190,167 | 176,591 | 112,678 | |||||||||||||||||||||||||||
Other components of net periodic benefit costs | 89,154 | 7,302 | 8,274 | 64,225 | 11,074 | |||||||||||||||||||||||||||
Gain/(loss) from joint ventures | 5,000 | — | 10,764 | 18,641 | (36,273) | |||||||||||||||||||||||||||
Interest income/(expense) and other, net | 23,330 | (3,820) | (16,566) | (19,783) | (34,805) | |||||||||||||||||||||||||||
Income from continuing operations before income taxes | 115,432 | 164,460 | 176,091 | 111,224 | 30,526 | |||||||||||||||||||||||||||
Income from continuing operations | 100,837 | 139,966 | 127,460 | 7,268 | 26,105 | |||||||||||||||||||||||||||
Loss from discontinued operations, net of income taxes | — | — | — | (431) | (2,273) | |||||||||||||||||||||||||||
Net income attributable to The New York Times Company common stockholders | 100,103 | 139,966 | 125,684 | 4,296 | 29,068 | |||||||||||||||||||||||||||
Balance Sheet Data | ||||||||||||||||||||||||||||||||
Cash, cash equivalents and marketable securities | $ | 881,990 | $ | 683,912 | $ | 826,363 | $ | 732,911 | $ | 737,526 | ||||||||||||||||||||||
Property, plant and equipment, net | 594,516 | 627,121 | 638,846 | 640,939 | 596,743 | |||||||||||||||||||||||||||
Total assets | 2,307,689 | 2,089,138 | 2,197,123 | 2,099,780 | 2,185,395 | |||||||||||||||||||||||||||
Total debt and capital lease obligations | — | — | 253,630 | 250,209 | 246,978 | |||||||||||||||||||||||||||
Total New York Times Company stockholders’ equity | 1,325,517 | 1,172,003 | 1,040,781 | 897,279 | 847,815 |
Years Ended | ||||||||||||||||||||||||||||||||
(In thousands) |
December 27,
2020 |
December 29,
2019 |
December 30,
2018 |
December 31,
2017 |
December 25,
2016 |
|||||||||||||||||||||||||||
(52 Weeks) | (52 Weeks) | (52 Weeks) | (53 Weeks) | (52 Weeks) | ||||||||||||||||||||||||||||
Other components of net periodic benefit costs: | 89,154 | 7,302 | 8,274 | 64,225 | 11,074 | |||||||||||||||||||||||||||
Add: Multiemployer pension plan withdrawal costs | 5,550 | 6,183 | 7,002 | 6,599 | 14,001 | |||||||||||||||||||||||||||
Less: Special Items | ||||||||||||||||||||||||||||||||
Pension settlement expense | 80,641 | — | — | 102,109 | 21,294 | |||||||||||||||||||||||||||
Postretirement benefit plan settlement gain | — | — | — | (32,737) | — | |||||||||||||||||||||||||||
Pension curtailment gain | — | — | — | — | (1,683) | |||||||||||||||||||||||||||
Non-operating retirement costs | 14,063 | 13,485 | 15,276 | 1,452 | 5,464 |
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
PAGE | ||||||||||||||
Executive Overview:
|
The executive overview section provides a summary of The New York Times Company and our business. | |||||||||||||
The results of operations section provides an analysis of our results on a consolidated basis for the three years ended December 27, 2020. | ||||||||||||||
The non-operating items section provides an analysis of our non-GAAP financial measures to the most directly comparable GAAP measures for the two years ended December 27, 2020. | ||||||||||||||
The liquidity and capital resources section provides a discussion of our cash flows for the two years ended December 27, 2020, and restricted cash, capital expenditures, and outstanding debt, commitments and contingencies existing as of December 27, 2020. | ||||||||||||||
The critical accounting policies and estimates section provides detail with respect to accounting policies that are considered by management to require significant judgment and use of estimates and that could have a significant impact on our financial statements. | ||||||||||||||
The pensions and other postretirement benefits section provides a discussion of our benefit plans. | ||||||||||||||
Years Ended | % Change | |||||||||||||||||||||||||||||||
(In thousands) |
December 27,
2020 |
December 29,
2019 |
December 30,
2018 |
2020 vs. 2019 | 2019 vs. 2018 | |||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||
Subscription | $ | 1,195,368 | $ | 1,083,851 | $ | 1,042,571 | 10.3 | 4.0 | ||||||||||||||||||||||||
Advertising | 392,420 | 530,678 | 558,253 | (26.1) | (4.9) | |||||||||||||||||||||||||||
Other | 195,851 | 197,655 | 147,774 | (0.9) | 33.8 | |||||||||||||||||||||||||||
Total revenues | 1,783,639 | 1,812,184 | 1,748,598 | (1.6) | 3.6 | |||||||||||||||||||||||||||
Operating costs | ||||||||||||||||||||||||||||||||
Cost of revenue (excluding depreciation and amortization) | 960,222 | 989,029 | 947,884 | (2.9) | 4.3 | |||||||||||||||||||||||||||
Sales and marketing | 229,040 | 272,657 | 271,164 | (16.0) | 0.6 | |||||||||||||||||||||||||||
Product development | 132,428 | 105,514 | 84,098 | 25.5 | 25.5 | |||||||||||||||||||||||||||
General and administrative | 223,557 | 206,778 | 196,621 | 8.1 | 5.2 | |||||||||||||||||||||||||||
Depreciation and amortization | 62,136 | 60,661 | 59,011 | 2.4 | 2.8 | |||||||||||||||||||||||||||
Total operating costs
|
1,607,383 | 1,634,639 | 1,558,778 | (1.7) | 4.9 | |||||||||||||||||||||||||||
Headquarters redesign and consolidation | — | — | 4,504 | — | * | |||||||||||||||||||||||||||
Restructuring charge | — | 4,008 | — | * | * | |||||||||||||||||||||||||||
Gain from pension liability adjustment | — | (2,045) | (4,851) | * | (57.8) | |||||||||||||||||||||||||||
Operating profit | 176,256 | 175,582 | 190,167 | 0.4 | (7.7) | |||||||||||||||||||||||||||
Other components of net periodic benefit costs | 89,154 | 7,302 | 8,274 | * | (11.7) | |||||||||||||||||||||||||||
Gain from joint ventures | 5,000 | — | 10,764 | * | * | |||||||||||||||||||||||||||
Interest income/(expense) and other, net | 23,330 | (3,820) | (16,566) | * | (76.9) | |||||||||||||||||||||||||||
Income from continuing operations before income taxes | 115,432 | 164,460 | 176,091 | (29.8) | (6.6) | |||||||||||||||||||||||||||
Income tax expense | 14,595 | 24,494 | 48,631 | (40.4) | (49.6) | |||||||||||||||||||||||||||
Net income | 100,837 | 139,966 | 127,460 | (28.0) | 9.8 | |||||||||||||||||||||||||||
Net income attributable to the noncontrolling interest | (734) | — | (1,776) | * | * | |||||||||||||||||||||||||||
Net income attributable to The New York Times Company common stockholders | $ | 100,103 | $ | 139,966 | $ | 125,684 | (28.5) | 11.4 |
Years Ended | % Change | |||||||||||||||||||||||||||||||
(In thousands) |
December 27,
2020 |
December 29,
2019 |
December 30,
2018 |
2020 vs. 2019 | 2019 vs. 2018 | |||||||||||||||||||||||||||
Subscription | $ | 1,195,368 | $ | 1,083,851 | $ | 1,042,571 | 10.3 | 4.0 | ||||||||||||||||||||||||
Advertising | 392,420 | 530,678 | 558,253 | (26.1) | (4.9) | |||||||||||||||||||||||||||
Other | 195,851 | 197,655 | 147,774 | (0.9) | 33.8 | |||||||||||||||||||||||||||
Total | $ | 1,783,639 | $ | 1,812,184 | $ | 1,748,598 | (1.6) | 3.6 |
Years Ended | % Change | |||||||||||||||||||||||||||||||
(In thousands) | December 27, 2020 | December 29, 2019 | December 30, 2018 | 2020 vs. 2019 | 2019 vs. 2018 | |||||||||||||||||||||||||||
Digital-only subscription revenues: | ||||||||||||||||||||||||||||||||
News product subscription revenues(1)
|
$ | 543,578 | $ | 426,125 | $ | 378,484 | 27.6 | 12.6 | ||||||||||||||||||||||||
Other product subscription revenues(2)
|
54,702 | 34,327 | 22,136 | 59.4 | 55.1 | |||||||||||||||||||||||||||
Subtotal digital-only subscriptions | 598,280 | 460,452 | 400,620 | 29.9 | 14.9 | |||||||||||||||||||||||||||
Print subscription revenues | ||||||||||||||||||||||||||||||||
Domestic home delivery subscription revenues(3)
|
528,970 | 524,543 | 532,748 | 0.8 | (1.5) | |||||||||||||||||||||||||||
Single-copy, NYT International and other subscription revenues(4)
|
68,118 | 98,856 | 109,203 | (31.1) | (9.5) | |||||||||||||||||||||||||||
Subtotal print subscription revenues | 597,088 | 623,399 | 641,951 | (4.2) | (2.9) | |||||||||||||||||||||||||||
Total subscription revenues | $ | 1,195,368 | $ | 1,083,851 | $ | 1,042,571 | 10.3 | 4.0 |
As of | % Change | |||||||||||||||||||||||||||||||
(In thousands) | December 27, 2020 | December 29, 2019 | December 30, 2018 | 2020 vs. 2019 | 2019 vs. 2018 | |||||||||||||||||||||||||||
Digital-only subscriptions: | ||||||||||||||||||||||||||||||||
News product subscriptions(1)
|
5,090 | 3,429 | 2,713 | 48.4 | 26.4 | |||||||||||||||||||||||||||
Other product subscriptions(2)
|
1,600 | 966 | 647 | 65.6 | 49.3 | |||||||||||||||||||||||||||
Subtotal digital-only subscriptions | 6,690 | 4,395 | 3,360 | 52.2 | 30.8 | |||||||||||||||||||||||||||
Print subscriptions | 833 | 856 | 924 | (2.7) | (7.4) | |||||||||||||||||||||||||||
Total subscriptions | 7,523 | 5,251 | 4,284 | 43.3 | 22.6 |
Years Ended | % Change | ||||||||||||||||||||||||||||||||||
(In thousands) | December 27, 2020 | December 29, 2019 | December 30, 2018 | 2020 vs. 2019 | 2019 vs. 2018 | ||||||||||||||||||||||||||||||
Advertising revenues | |||||||||||||||||||||||||||||||||||
Digital | $ | 228,594 | $ | 260,454 | $ | 258,873 | (12.2) | % | 0.6 | % | |||||||||||||||||||||||||
163,826 | 270,224 | 299,380 | (39.4) | % | (9.7) | % | |||||||||||||||||||||||||||||
Total advertising | $ | 392,420 | $ | 530,678 | $ | 558,253 | (26.1) | % | (4.9) | % |
Years Ended | % Change | |||||||||||||||||||||||||||||||
(In thousands) |
December 27,
2020 |
December 29,
2019 |
December 30,
2018 |
2020 vs. 2019 | 2019 vs. 2018 | |||||||||||||||||||||||||||
Operating costs: | ||||||||||||||||||||||||||||||||
Cost of revenue (excluding depreciation and amortization) | $ | 960,222 | $ | 989,029 | $ | 947,884 | (2.9) | 4.3 | ||||||||||||||||||||||||
Sales and marketing | 229,040 | 272,657 | 271,164 | (16.0) | 0.6 | |||||||||||||||||||||||||||
Product development | 132,428 | 105,514 | 84,098 | 25.5 | 25.5 | |||||||||||||||||||||||||||
General and administrative | 223,557 | 206,778 | 196,621 | 8.1 | 5.2 | |||||||||||||||||||||||||||
Depreciation and amortization | 62,136 | 60,661 | 59,011 | 2.4 | 2.8 | |||||||||||||||||||||||||||
Total operating costs | $ | 1,607,383 | $ | 1,634,639 | $ | 1,558,778 | (1.7) | 4.9 |
Years Ended | ||||||||||||||||||||
December 27,
2020 |
December 29,
2019 |
December 30,
2018 |
||||||||||||||||||
Components of operating costs as a percentage of total operating costs | ||||||||||||||||||||
Cost of revenue (excluding depreciation and amortization) | 60 | % | 61 | % | 61 | % | ||||||||||||||
Sales and marketing | 14 | % | 17 | % | 17 | % | ||||||||||||||
Product development | 8 | % | 6 | % | 5 | % | ||||||||||||||
General and administrative | 14 | % | 12 | % | 13 | % | ||||||||||||||
Depreciation and amortization | 4 | % | 4 | % | 4 | % | ||||||||||||||
Total | 100 | % | 100 | % | 100 | % |
Years Ended | ||||||||||||||||||||
December 27,
2020 |
December 29,
2019 |
December 30,
2018 |
||||||||||||||||||
Components of operating costs as a percentage of total revenues | ||||||||||||||||||||
Cost of revenue (excluding depreciation and amortization) | 54 | % | 55 | % | 54 | % | ||||||||||||||
Sales and marketing | 13 | % | 15 | % | 16 | % | ||||||||||||||
Product development | 7 | % | 6 | % | 5 | % | ||||||||||||||
General and administrative | 13 | % | 11 | % | 11 | % | ||||||||||||||
Depreciation and amortization | 3 | % | 3 | % | 3 | % | ||||||||||||||
Total | 90 | % | 90 | % | 89 | % |
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) | ||||||||||||||||||||||||||||||||
Years Ended | % Change | |||||||||||||||||||||||||||||||
December 27,
2020 |
December 29,
2019 |
2020 vs. 2019 | ||||||||||||||||||||||||||||||
Diluted earnings per share from continuing operations | $ | 0.60 | $ | 0.83 | (27.7) | % | ||||||||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||
Severance | 0.04 | 0.02 | * | |||||||||||||||||||||||||||||
Non-operating retirement costs: | ||||||||||||||||||||||||||||||||
Multiemployer pension plan withdrawal costs | 0.03 | 0.04 | (25.0) | % | ||||||||||||||||||||||||||||
Other components of net periodic benefit costs | 0.05 | 0.04 | 25.0 | % | ||||||||||||||||||||||||||||
Special items: | ||||||||||||||||||||||||||||||||
Restructuring charge | — | 0.02 | * | |||||||||||||||||||||||||||||
Gain from non-marketable equity security | (0.06) | — | * | |||||||||||||||||||||||||||||
Gain from pension liability adjustment | — | (0.01) | * | |||||||||||||||||||||||||||||
Gain from joint venture, net of noncontrolling interest | (0.03) | — | * | |||||||||||||||||||||||||||||
Pension settlement charge | 0.48 | — | * | |||||||||||||||||||||||||||||
Income tax expense of adjustments | (0.14) | (0.03) | * | |||||||||||||||||||||||||||||
Adjusted diluted earnings per share from continuing operations (1)
|
$ | 0.97 | $ | 0.92 | 5.4 | % |
% Change | ||||||||||||||||||||
(In thousands, except ratios) |
December 27,
2020 |
December 29,
2019 |
2020 vs. 2019 | |||||||||||||||||
Cash and cash equivalents | $ | 286,079 | $ | 230,431 | 24.1 | |||||||||||||||
Marketable securities | 595,911 | 453,481 | 31.4 | |||||||||||||||||
Total New York Times Company stockholders’ equity | 1,325,517 | 1,172,003 | 13.1 | |||||||||||||||||
Ratios: | ||||||||||||||||||||
Current assets to current liabilities | 1.72 | 1.64 |
Years Ended | % Change | |||||||||||||||||||||||||||||||
(In thousands) |
December 27,
2020 |
December 29,
2019 |
2020 vs. 2019 | |||||||||||||||||||||||||||||
Operating activities | $ | 297,933 | $ | 189,898 | 56.9 | |||||||||||||||||||||||||||
Investing activities | $ | (199,080) | $ | 93,212 | * | |||||||||||||||||||||||||||
Financing activities | $ | (44,973) | $ | (295,291) | (84.8) |
Payment due in | ||||||||||||||||||||||||||||||||
(In thousands) | Total | 2021 | 2022-2023 | 2024-2025 | Later Years | |||||||||||||||||||||||||||
Operating leases(1)
|
74,349 | 11,356 | 19,466 | 14,888 | 28,639 | |||||||||||||||||||||||||||
Benefit plans(2)
|
376,648 | 50,450 | 91,440 | 79,048 | 155,710 | |||||||||||||||||||||||||||
Total | $ | 450,997 | $ | 61,806 | $ | 110,906 | $ | 93,936 | $ | 184,349 |
(In thousands) |
December 27,
2020 |
December 29,
2019 |
||||||||||||
Goodwill | $ | 171,657 | $ | 138,674 | ||||||||||
Intangibles | $ | 16,298 | $ | 2,984 | ||||||||||
Total assets | $ | 2,307,689 | $ | 2,089,138 | ||||||||||
Percentage of goodwill and intangibles to total assets | 8 | % | 7 | % |
(In thousands) | December 27, 2020 | December 29, 2019 | ||||||||||||
Pension and other postretirement liabilities (includes current portion) | $ | 397,918 | $ | 384,670 | ||||||||||
Total liabilities | $ | 979,578 | $ | 915,275 | ||||||||||
Percentage of pension and other postretirement liabilities to total liabilities | 40.6 | % | 42.0 | % |
December 27, 2020 | ||||||||||||||||||||
(In thousands) |
Qualified
Plans |
Non-Qualified
Plans |
All Plans | |||||||||||||||||
Pension obligation | $ | 1,549,012 | $ | 259,593 | $ | 1,808,605 | ||||||||||||||
Fair value of plan assets | 1,585,221 | — | 1,585,221 | |||||||||||||||||
Pension asset/obligation, net | $ | 36,209 | $ | (259,593) | $ | (223,384) |
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
INDEX | PAGE | ||||
Consolidated Balance Sheets as of December 27, 2020, and December 29, 2019
|
|||||
Consolidated Statements of Operations for the years ended December 27, 2020, December 29, 2019, and December 30, 2018
|
|||||
Consolidated Statements of Comprehensive Income/(Loss) for the years ended December 27, 2020, December 29, 2019, and December 30, 2018
|
|||||
Consolidated Statements of Changes in Stockholders’ Equity for the years ended December 27, 2020, December 29, 2019, and December 30, 2018
|
|||||
Consolidated Statements of Cash Flows for the years ended December 27, 2020, December 29, 2019, and December 30, 2018
|
|||||
19. Reclassification
|
|||||
20. Subsequent Events | |||||
Valuation of the pension benefit obligation | ||||||||
Description of the Matter |
At December 27, 2020, the aggregate defined benefit pension obligation was $1,808 million which exceeded the fair value of pension plan assets of $1,585 million, resulting in an unfunded defined benefit pension obligation of $223 million. As discussed in Note 2, the Company makes significant subjective judgments about a number of actuarial assumptions, which include discount rates and the long-term return on plan assets.
Auditing management’s estimate of the defined benefit pension obligation involves especially challenging and complex judgments because of the highly subjective nature of the actuarial assumptions (e.g., discount rate and expected return on plan assets) used in the measurement of the defined benefit pension obligation and the impact small changes in these assumptions would have on the measurement of the defined benefit pension obligation and expense.
|
|||||||
How We Addressed the Matter in Our Audit |
We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls that address the risks of material misstatement relating to the measurement and valuation of the defined benefit pension obligation. Specifically, we tested controls over management’s review of the defined benefit pension obligation, the significant actuarial assumptions including the discount rate and long-term rate of return, and the data inputs provided to the actuary.
To test the defined benefit pension obligation, our audit procedures included, among others, evaluating the methodology used, the significant actuarial assumptions discussed above, and testing the underlying data used by the Company. We compared the actuarial assumptions used by management to historical trends and evaluated the change in the components of the defined benefit pension obligation from prior year due to the change in service cost, interest cost, actuarial gains and losses, benefit payments, contributions, settlement and other. In addition, we involved actuarial specialists to assist in evaluating the key assumptions. To evaluate the discount rate, we independently developed yield curves reflecting an independently selected subset of bonds. In addition, we discounted the plans’ projected benefit cash outlays with independently developed yield curves and compared these results to the defined benefit pension obligation. To evaluate the expected return on plan assets, we independently calculated a range of returns for each class of plan investments and based on the investment allocations compared the results to the Company’s selected long-term rate of return.
|
(In thousands) | December 27, 2020 | December 29, 2019 | ||||||||||||
Assets | ||||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | $ | 286,079 | $ | 230,431 | ||||||||||
Short-term marketable securities | 309,080 | 201,785 | ||||||||||||
Accounts receivable (net of allowances of $13,797 in 2020 and $14,358 in 2019)
|
183,692 | 213,402 | ||||||||||||
Prepaid expenses | 29,487 | 29,089 | ||||||||||||
Other current assets | 27,497 | 42,124 | ||||||||||||
Total current assets | 835,835 | 716,831 | ||||||||||||
Long-term marketable securities | 286,831 | 251,696 | ||||||||||||
Property, plant and equipment: | ||||||||||||||
Equipment | 470,505 | 498,299 | ||||||||||||
Buildings, building equipment and improvements | 722,122 | 718,194 | ||||||||||||
Software | 173,046 | 237,326 | ||||||||||||
Land | 105,710 | 105,710 | ||||||||||||
Assets in progress | 9,282 | 18,473 | ||||||||||||
Total, at cost | 1,480,665 | 1,578,002 | ||||||||||||
Less: accumulated depreciation and amortization | (886,149) | (950,881) | ||||||||||||
Property, plant and equipment, net | 594,516 | 627,121 | ||||||||||||
Goodwill | 171,657 | 138,674 | ||||||||||||
Deferred income taxes | 99,518 | 115,229 | ||||||||||||
Miscellaneous assets | 319,332 | 239,587 | ||||||||||||
Total assets | $ | 2,307,689 | $ | 2,089,138 |
(In thousands, except share and per share data) | December 27, 2020 | December 29, 2019 | ||||||||||||
Liabilities and stockholders’ equity | ||||||||||||||
Current liabilities | ||||||||||||||
Accounts payable | $ | 123,157 | $ | 116,571 | ||||||||||
Accrued payroll and other related liabilities | 121,159 | 108,865 | ||||||||||||
Unexpired subscriptions revenue | 105,346 | 88,419 | ||||||||||||
Accrued expenses and other | 137,086 | 123,840 | ||||||||||||
Total current liabilities | 486,748 | 437,695 | ||||||||||||
Other liabilities | ||||||||||||||
Pension benefits obligation | 326,555 | 313,655 | ||||||||||||
Postretirement benefits obligation | 38,690 | 37,688 | ||||||||||||
Other | 127,585 | 126,237 | ||||||||||||
Total other liabilities | 492,830 | 477,580 | ||||||||||||
Stockholders’ equity | ||||||||||||||
Common stock of $.10 par value:
|
||||||||||||||
Class A – authorized: 300,000,000 shares; issued: 2020 – 175,308,672; 2019 – 174,242,668 (including treasury shares: 2020 – 8,870,801; 2019 – 8,870,801)
|
17,531 | 17,424 | ||||||||||||
Class B – convertible – authorized and issued shares: 2020 – 781,724; 2019 – 803,404 (including treasury shares: 2020 – none; 2019 – none)
|
78 | 80 | ||||||||||||
Additional paid-in capital | 216,714 | 208,028 | ||||||||||||
Retained earnings | 1,672,586 | 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 | 8,386 | 3,438 | ||||||||||||
Funded status of benefit plans | (421,698) | (498,986) | ||||||||||||
Unrealized gain on available-for-sale securities | 3,131 | 572 | ||||||||||||
Total accumulated other comprehensive loss, net of income taxes | (410,181) | (494,976) | ||||||||||||
Total New York Times Company stockholders’ equity | 1,325,517 | 1,172,003 | ||||||||||||
Noncontrolling interest | 2,594 | 1,860 | ||||||||||||
Total stockholders’ equity | 1,328,111 | 1,173,863 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 2,307,689 | $ | 2,089,138 |
Years Ended | ||||||||||||||||||||
(In thousands) | December 27, 2020 | December 29, 2019 | December 30, 2018 | |||||||||||||||||
Revenues | ||||||||||||||||||||
Subscription | $ | 1,195,368 | $ | 1,083,851 | $ | 1,042,571 | ||||||||||||||
Advertising | 392,420 | 530,678 | 558,253 | |||||||||||||||||
Other | 195,851 | 197,655 | 147,774 | |||||||||||||||||
Total revenues | 1,783,639 | 1,812,184 | 1,748,598 | |||||||||||||||||
Operating costs | ||||||||||||||||||||
Cost of revenue (excluding depreciation and amortization) | 960,222 | 989,029 | 947,884 | |||||||||||||||||
Sales and marketing | 229,040 | 272,657 | 271,164 | |||||||||||||||||
Product development | 132,428 | 105,514 | 84,098 | |||||||||||||||||
General and administrative | 223,557 | 206,778 | 196,621 | |||||||||||||||||
Depreciation and amortization | 62,136 | 60,661 | 59,011 | |||||||||||||||||
Total operating costs | 1,607,383 | 1,634,639 | 1,558,778 | |||||||||||||||||
Headquarters redesign and consolidation | — | — | 4,504 | |||||||||||||||||
Restructuring charge | — | 4,008 | — | |||||||||||||||||
Gain from pension liability adjustment | — | (2,045) | (4,851) | |||||||||||||||||
Operating profit | 176,256 | 175,582 | 190,167 | |||||||||||||||||
Other components of net periodic benefit costs | 89,154 | 7,302 | 8,274 | |||||||||||||||||
Gain from joint ventures | 5,000 | — | 10,764 | |||||||||||||||||
Interest income/(expense) and other, net | 23,330 | (3,820) | (16,566) | |||||||||||||||||
Income from continuing operations before income taxes | 115,432 | 164,460 | 176,091 | |||||||||||||||||
Income tax expense | 14,595 | 24,494 | 48,631 | |||||||||||||||||
Net income | 100,837 | 139,966 | 127,460 | |||||||||||||||||
Net income attributable to the noncontrolling interest | (734) | — | (1,776) | |||||||||||||||||
Net income attributable to The New York Times Company common stockholders | $ | 100,103 | $ | 139,966 | $ | 125,684 | ||||||||||||||
Amounts attributable to The New York Times Company common stockholders: | ||||||||||||||||||||
Income from continuing operations | $ | 100,103 | $ | 139,966 | $ | 125,684 | ||||||||||||||
Net income | $ | 100,103 | $ | 139,966 | $ | 125,684 |
Years Ended | ||||||||||||||||||||
(In thousands, except per share data) | December 27, 2020 | December 29, 2019 | December 30, 2018 | |||||||||||||||||
Average number of common shares outstanding: | ||||||||||||||||||||
Basic | 166,973 | 166,042 | 164,845 | |||||||||||||||||
Diluted | 168,038 | 167,545 | 166,939 | |||||||||||||||||
Basic earnings per share attributable to The New York Times Company common stockholders: | ||||||||||||||||||||
Income from continuing operations | $ | 0.60 | $ | 0.84 | $ | 0.76 | ||||||||||||||
Net income | $ | 0.60 | $ | 0.84 | $ | 0.76 | ||||||||||||||
Diluted earnings per share attributable to The New York Times Company common stockholders: | ||||||||||||||||||||
Income from continuing operations | $ | 0.60 | $ | 0.83 | $ | 0.75 | ||||||||||||||
Net income | $ | 0.60 | $ | 0.83 | $ | 0.75 | ||||||||||||||
Dividends declared per share | $ | 0.24 | $ | 0.20 | $ | 0.16 |
Years Ended | ||||||||||||||||||||
(In thousands) | December 27, 2020 | December 29, 2019 | December 30, 2018 | |||||||||||||||||
Net income | $ | 100,837 | $ | 139,966 | $ | 127,460 | ||||||||||||||
Other comprehensive income/(loss), before tax: | ||||||||||||||||||||
Foreign currency translation adjustments-income/(loss) | 6,763 | (1,684) | (4,368) | |||||||||||||||||
Pension and postretirement benefits obligation | 105,660 | 28,987 | 3,910 | |||||||||||||||||
Net unrealized gain/(loss) on available-for-sale securities | 3,497 | 3,624 | (300) | |||||||||||||||||
Other comprehensive income/(loss), before tax | 115,920 | 30,927 | (758) | |||||||||||||||||
Income tax expense/(benefit) | 31,125 | 8,179 | (198) | |||||||||||||||||
Other comprehensive income/(loss), net of tax | 84,795 | 22,748 | (560) | |||||||||||||||||
Comprehensive income | 185,632 | 162,714 | 126,900 | |||||||||||||||||
Comprehensive income attributable to the noncontrolling interest | (734) | — | (1,776) | |||||||||||||||||
Comprehensive income attributable to The New York Times Company common stockholders | $ | 184,898 | $ | 162,714 | $ | 125,124 |
(In thousands,
except share and per 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 31, 2017 | $ | 17,108 | $ | 164,275 | $ | 1,310,136 | $ | (171,211) | $ | (423,029) | $ | 897,279 | $ | 84 | $ | 897,363 | ||||||||||
Impact of adopting new accounting guidance | — | — | 96,707 | — | (94,135) | 2,572 | — | 2,572 | ||||||||||||||||||
Net income | — | — | 125,684 | — | — | 125,684 | 1,776 | 127,460 | ||||||||||||||||||
Dividends | — | — | (26,523) | — | — | (26,523) | — | (26,523) | ||||||||||||||||||
Other comprehensive income | — | — | — | — | (560) | (560) | — | (560) | ||||||||||||||||||
Issuance of shares: | ||||||||||||||||||||||||||
Stock options – 2,327,046 Class A shares
|
233 | 41,055 | — | — | — | 41,288 | — | 41,288 | ||||||||||||||||||
Restricted stock units vested – 282,723 Class A shares
|
28 | (4,619) | — | — | — | (4,591) | — | (4,591) | ||||||||||||||||||
Performance-based awards – 271,841 Class A shares
|
27 | (5,930) | — | — | — | (5,903) | — | (5,903) | ||||||||||||||||||
Stock-based compensation | — | 11,535 | — | — | — | 11,535 | — | 11,535 | ||||||||||||||||||
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 | — | — | 139,966 | — | — | 139,966 | — | 139,966 | ||||||||||||||||||
Dividends | — | — | (33,312) | — | — | (33,312) | — | (33,312) | ||||||||||||||||||
Other comprehensive loss | — | — | — | — | 22,748 | 22,748 | — | 22,748 | ||||||||||||||||||
Issuance of shares: | ||||||||||||||||||||||||||
Stock options – 419,160 Class A shares
|
42 | 4,478 | — | — | — | 4,520 | — | 4,520 | ||||||||||||||||||
Restricted stock units vested – 246,599 Class A shares
|
24 | (3,750) | — | — | — | (3,726) | — | (3,726) | ||||||||||||||||||
Performance-based awards – 418,491 Class A shares
|
42 | (11,964) | — | — | — | (11,922) | — | (11,922) | ||||||||||||||||||
Stock-based compensation | — | 12,948 | — | — | — | 12,948 | — | 12,948 | ||||||||||||||||||
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 | — | — | 100,103 | — | — | 100,103 | 734 | 100,837 | ||||||||||||||||||
Dividends | — | — | (40,175) | — | — | (40,175) | — | (40,175) | ||||||||||||||||||
Other comprehensive income | — | — | — | — | 84,795 | 84,795 | — | 84,795 | ||||||||||||||||||
Issuance of shares: | ||||||||||||||||||||||||||
Stock options – 644,268 Class A shares
|
65 | 6,006 | — | — | — | 6,071 | — | 6,071 | ||||||||||||||||||
Restricted stock units vested – 142,958 Class A shares
|
14 | (3,933) | — | — | — | (3,919) | — | (3,919) | ||||||||||||||||||
Performance-based awards – 257,098 Class A shares
|
26 | (7,852) | — | — | — | (7,826) | — | (7,826) | ||||||||||||||||||
Stock-based compensation | — | 14,465 | — | — | — | 14,465 | — | 14,465 | ||||||||||||||||||
Balance, December 27, 2020 | $ | 17,609 | $ | 216,714 | $ | 1,672,586 | $ | (171,211) | $ | (410,181) | $ | 1,325,517 | $ | 2,594 | $ | 1,328,111 |
Years Ended | ||||||||||||||||||||
(In thousands) | December 27, 2020 | December 29, 2019 | December 30, 2018 | |||||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net income | $ | 100,837 | $ | 139,966 | $ | 127,460 | ||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Pension settlement expense | 80,641 | — | — | |||||||||||||||||
Depreciation and amortization | 62,136 | 60,661 | 59,011 | |||||||||||||||||
Amortization of right of use asset | 8,568 | 7,384 | — | |||||||||||||||||
Stock-based compensation expense | 14,437 | 12,948 | 12,959 | |||||||||||||||||
Gain from joint ventures | (5,000) | — | (10,764) | |||||||||||||||||
Deferred income taxes | (16,043) | 4,242 | 4,047 | |||||||||||||||||
Gain on non-marketable equity investment | (10,074) | (1,886) | — | |||||||||||||||||
Long-term retirement benefit obligations | (17,166) | (22,914) | (46,877) | |||||||||||||||||
Fair market value adjustment on life insurance products | (578) | (3,461) | 821 | |||||||||||||||||
Uncertain tax positions | — | (4,627) | (138) | |||||||||||||||||
Other – net | 62 | 700 | 456 | |||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||
Accounts receivable – net | 29,710 | 9,062 | (37,579) | |||||||||||||||||
Other current assets | 8,960 | (3,355) | 18,241 | |||||||||||||||||
Accounts payable, accrued payroll and other liabilities | 24,516 | (13,197) | 20,490 | |||||||||||||||||
Unexpired subscriptions | 16,927 | 4,375 | 8,990 | |||||||||||||||||
Net cash provided by operating activities | 297,933 | 189,898 | 157,117 | |||||||||||||||||
Cash flows from investing activities | ||||||||||||||||||||
Purchases of marketable securities | (632,364) | (572,337) | (470,493) | |||||||||||||||||
Maturities/disposals of marketable securities | 491,128 | 707,632 | 434,012 | |||||||||||||||||
Business acquisitions | (33,085) | — | — | |||||||||||||||||
Proceeds from investments | 6,841 | 85 | 12,447 | |||||||||||||||||
Capital expenditures | (34,451) | (45,441) | (77,487) | |||||||||||||||||
Other - net | 2,851 | 3,273 | 426 | |||||||||||||||||
Net cash (used) in/provided by investing activities | (199,080) | 93,212 | (101,095) | |||||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Long-term obligations: | ||||||||||||||||||||
Repayment of debt and capital lease obligations | — | (252,559) | (552) | |||||||||||||||||
Dividends paid | (38,437) | (31,604) | (26,418) | |||||||||||||||||
Payment of contingent consideration | (862) | — | — | |||||||||||||||||
Capital shares: | ||||||||||||||||||||
Stock issuances | 6,071 | 4,520 | 41,288 | |||||||||||||||||
Share-based compensation tax withholding | (11,745) | (15,648) | (10,494) | |||||||||||||||||
Net cash (used) in/provided by financing activities | (44,973) | (295,291) | 3,824 | |||||||||||||||||
Net increase/(decrease) in cash, cash equivalents and restricted cash | 53,880 | (12,181) | 59,846 | |||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 566 | (100) | (983) | |||||||||||||||||
Cash, cash equivalents and restricted cash at the beginning of the year | 247,518 | 259,799 | 200,936 | |||||||||||||||||
Cash, cash equivalents and restricted cash at the end of the year | $ | 301,964 | $ | 247,518 | $ | 259,799 |
Years Ended | ||||||||||||||||||||
(In thousands) | December 27, 2020 | December 29, 2019 | December 30, 2018 | |||||||||||||||||
Cash payments | ||||||||||||||||||||
Interest, net of capitalized interest | $ | 508 | $ | 28,049 | $ | 28,133 | ||||||||||||||
Income tax payments/(refunds) – net | $ | 24,382 | $ | 30,407 | $ | (1,070) |
Accounting Standard Update(s) | Topic | Effective Period | Summary | ||||||||
2018-14 | Compensation—Retirement Benefits—Defined Benefit Plans—General | Fiscal years ending after December 15, 2020, and interim periods within those fiscal years. 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. The Company adopted this ASU on a retrospective basis on December 27, 2020. The adoption did not have a material impact on the Company’s disclosures. | ||||||||
2018-15 | Intangibles—Goodwill and Other—Internal-Use Software | Fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. |
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 includes capitalized implementation costs in Miscellaneous assets in the Company’s Consolidated Balance Sheet and within Total operating costs in the Consolidated Statement of Operations. The adoption did not have a material impact on the Company’s consolidated financial statements.
|
||||||||
2018-13 | Fair Value Measurement (Topic 820) Disclosure Framework | Fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. | 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 Losses | Fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. | 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 requires 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. |
Accounting Standard Update(s) | Topic | Effective Period | Summary | ||||||||
2019-12 |
Simplifying the Accounting for Income Taxes (Topic 740)
|
Fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. 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 the Company’s consolidated financial statements. |
Years Ended | ||||||||||||||||||||
(In thousands) | December 27, 2020 | December 29, 2019 | December 30, 2018 | |||||||||||||||||
Subscription | $ | 1,195,368 | $ | 1,083,851 | $ | 1,042,571 | ||||||||||||||
Advertising | 392,420 | 530,678 | 558,253 | |||||||||||||||||
Other (1)
|
195,851 | 197,655 | 147,774 | |||||||||||||||||
Total | $ | 1,783,639 | $ | 1,812,184 | $ | 1,748,598 |
Years Ended | ||||||||||||||||||||
(In thousands) | December 27, 2020 | December 29, 2019 | December 30, 2018 | |||||||||||||||||
Digital-only subscription revenues: | ||||||||||||||||||||
News product subscription revenues(1)
|
$ | 543,578 | $ | 426,125 | $ | 378,484 | ||||||||||||||
Other product subscription revenues(2)
|
54,702 | 34,327 | 22,136 | |||||||||||||||||
Subtotal digital-only subscriptions | 598,280 | 460,452 | 400,620 | |||||||||||||||||
Print subscription revenues | ||||||||||||||||||||
Domestic home delivery subscription revenues(3)
|
528,970 | 524,543 | 532,748 | |||||||||||||||||
Single-copy, NYT International and other subscription revenues(4)
|
68,118 | 98,856 | 109,203 | |||||||||||||||||
Subtotal print subscription revenues | 597,088 | 623,399 | 641,951 | |||||||||||||||||
Total subscription revenues | $ | 1,195,368 | $ | 1,083,851 | $ | 1,042,571 | ||||||||||||||
(1) Includes revenues from subscriptions to the Company’s news product. News product subscription packages that include access to the Company’s Games and Cooking products are also included in this category.
|
||||||||||||||||||||
(2) Includes revenues from standalone subscriptions to the Company’s Games, Cooking and Audm products.
|
||||||||||||||||||||
(3) Includes free access to some or all of the Company’s digital products.
|
||||||||||||||||||||
(4) NYT International is the international edition of our print newspaper.
|
Years Ended | ||||||||||||||||||||
(In thousands) | December 27, 2020 | December 29, 2019 | December 30, 2018 | |||||||||||||||||
Advertising revenues | ||||||||||||||||||||
Digital | $ | 228,594 | $ | 260,454 | $ | 258,873 | ||||||||||||||
163,826 | 270,224 | 299,380 | ||||||||||||||||||
Total advertising | $ | 392,420 | $ | 530,678 | $ | 558,253 |
December 27, 2020 | ||||||||||||||||||||||||||
(In thousands) | Amortized Cost | Gross unrealized gains | Gross unrealized losses | Fair Value | ||||||||||||||||||||||
Short-term AFS securities | ||||||||||||||||||||||||||
Corporate debt securities | $ | 129,805 | $ | 504 | $ | (8) | $ | 130,301 | ||||||||||||||||||
U.S. Treasury securities | 79,467 | 39 | (3) | 79,503 | ||||||||||||||||||||||
Commercial paper | 37,580 | — | — | 37,580 | ||||||||||||||||||||||
Certificates of deposit | 36,525 | — | — | 36,525 | ||||||||||||||||||||||
U.S. governmental agency securities | 25,113 | 61 | (3) | 25,171 | ||||||||||||||||||||||
Total short-term AFS securities | $ | 308,490 | $ | 604 | $ | (14) | $ | 309,080 | ||||||||||||||||||
Long-term AFS securities | ||||||||||||||||||||||||||
Corporate debt securities | $ | 134,296 | $ | 1,643 | $ | (5) | $ | 135,934 | ||||||||||||||||||
U.S. Treasury securities | 95,511 | 2,054 | — | 97,565 | ||||||||||||||||||||||
U.S. governmental agency securities | 48,342 | 19 | (13) | 48,348 | ||||||||||||||||||||||
Municipal securities | 4,994 | — | (10) | 4,984 | ||||||||||||||||||||||
Total long-term AFS securities | $ | 283,143 | $ | 3,716 | $ | (28) | $ | 286,831 |
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 | ||||||||||||||||||||||
Commercial paper | 12,561 | — | — | 12,561 | ||||||||||||||||||||||
Certificates of deposit | 9,501 | — | — | 9,501 | ||||||||||||||||||||||
U.S. governmental agency securities | 37,471 | 35 | (4) | 37,502 | ||||||||||||||||||||||
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 |
December 27, 2020 | ||||||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||||||||||||||||
(In thousands) | Fair Value | Gross unrealized losses | Fair Value | Gross unrealized losses | Fair Value | Gross unrealized losses | ||||||||||||||||||||||||||||||||
Short-term AFS securities | ||||||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 33,735 | $ | (8) | $ | — | $ | — | $ | 33,735 | $ | (8) | ||||||||||||||||||||||||||
U.S. Treasury securities | 20,133 | (3) | — | — | 20,133 | (3) | ||||||||||||||||||||||||||||||||
U.S. governmental agency securities | 4,999 | (2) | 8,749 | (1) | 13,748 | (3) | ||||||||||||||||||||||||||||||||
Total short-term AFS securities | $ | 58,867 | $ | (13) | $ | 8,749 | $ | (1) | $ | 67,616 | $ | (14) | ||||||||||||||||||||||||||
Long-term AFS securities | ||||||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 6,717 | $ | (5) | $ | — | $ | — | $ | 6,717 | $ | (5) | ||||||||||||||||||||||||||
U.S. governmental agency securities | 26,236 | (13) | — | — | 26,236 | (13) | ||||||||||||||||||||||||||||||||
Municipal securities | 4,984 | (10) | — | — | 4,984 | (10) | ||||||||||||||||||||||||||||||||
Total long-term AFS securities | $ | 37,937 | $ | (28) | $ | — | $ | — | $ | 37,937 | $ | (28) |
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) |
(In thousands) | Total Company | |||||||
Balance as of December 30, 2018 | $ | 140,282 | ||||||
Foreign currency translation | (1,608) | |||||||
Balance as of December 29, 2019 | 138,674 | |||||||
Business acquisitions | 27,269 | |||||||
Measurement period adjustment(1)
|
(400) | |||||||
Foreign currency translation | 6,114 | |||||||
Balance as of December 27, 2020 | $ | 171,657 |
(In thousands) |
December 27,
2020 |
December 29,
2019 |
December 30,
2018 |
|||||||||||||||||
Interest income and other expense, net(1)
|
$ | 24,057 | $ | 21,580 | $ | 14,510 | ||||||||||||||
Interest expense | (757) | (26,928) | (28,134) | |||||||||||||||||
Amortization of debt costs and discount on debt | — | 1,459 | (3,394) | |||||||||||||||||
Capitalized interest | 30 | 69 | 452 | |||||||||||||||||
Total interest income/(expense) and other, net (2)
|
$ | 23,330 | $ | (3,820) | $ | (16,566) |
(In thousands) | December 27, 2020 | December 29, 2019 | ||||||||||||
Reconciliation of cash, cash equivalents and restricted cash | ||||||||||||||
Cash and cash equivalents | $ | 286,079 | $ | 230,431 | ||||||||||
Restricted cash included within other current assets | 686 | 528 | ||||||||||||
Restricted cash included within miscellaneous assets | 15,199 | 16,559 | ||||||||||||
Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows | $ | 301,964 | $ | 247,518 |
(In thousands) | December 27, 2020 | December 29, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term AFS securities(1)
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 130,301 | $ | — | $ | 130,301 | $ | — | $ | 99,126 | $ | — | $ | 99,126 | $ | — | ||||||||||||||||||||||||||||||||||
U.S Treasury securities | 79,503 | — | 79,503 | — | 43,095 | — | 43,095 | — | ||||||||||||||||||||||||||||||||||||||||||
Commercial paper | 37,580 | — | 37,580 | — | 12,561 | — | 12,561 | — | ||||||||||||||||||||||||||||||||||||||||||
Certificates of deposit | 36,525 | — | 36,525 | — | 9,501 | — | 9,501 | — | ||||||||||||||||||||||||||||||||||||||||||
U.S. governmental agency securities | 25,171 | — | 25,171 | — | 37,502 | — | 37,502 | — | ||||||||||||||||||||||||||||||||||||||||||
Total short-term AFS securities | $ | 309,080 | $ | — | $ | 309,080 | $ | — | $ | 201,785 | $ | — | $ | 201,785 | $ | — | ||||||||||||||||||||||||||||||||||
Long-term AFS securities(1)
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 135,934 | $ | — | $ | 135,934 | $ | — | $ | 103,737 | $ | — | $ | 103,737 | $ | — | ||||||||||||||||||||||||||||||||||
U.S Treasury securities | 97,565 | — | 97,565 | — | 101,438 | — | 101,438 | — | ||||||||||||||||||||||||||||||||||||||||||
U.S. governmental agency securities | 48,348 | — | 48,348 | — | 46,521 | — | 46,521 | — | ||||||||||||||||||||||||||||||||||||||||||
Municipal securities | 4,984 | — | 4,984 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total long-term AFS securities | $ | 286,831 | $ | — | $ | 286,831 | $ | — | $ | 251,696 | $ | — | $ | 251,696 | $ | — | ||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred compensation(2)(3)
|
$ | 22,245 | $ | 22,245 | $ | — | $ | — | $ | 23,702 | $ | 23,702 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||
Contingent consideration | $ | 8,431 | $ | — | $ | — | $ | 8,431 | $ | — | $ | — | $ | — | $ | — |
(In thousands) | December 27, 2020 | ||||||||||
Contingent consideration at the time of acquisition | $ | 9,293 | |||||||||
Payments | (862) | ||||||||||
Contingent consideration at the end of the period | $ | 8,431 |
December 27, 2020 | December 29, 2019 | December 30, 2018 | ||||||||||||||||||||||||||||||||||||
(In thousands) |
Qualified
Plans |
Non-
Qualified Plans |
All
Plans |
Qualified
Plans |
Non-
Qualified Plans |
All
Plans |
Qualified
Plans |
Non-
Qualified Plans |
All
Plans |
|||||||||||||||||||||||||||||
Service cost | $ | 10,429 | $ | 119 | $ | 10,548 | $ | 5,113 | $ | 118 | $ | 5,231 | $ | 9,986 | $ | 79 | $ | 10,065 | ||||||||||||||||||||
Interest cost | 43,710 | 6,601 | 50,311 | 58,835 | 8,420 | 67,255 | 52,770 | 7,383 | 60,153 | |||||||||||||||||||||||||||||
Expected return on plan assets | (67,146) | — | (67,146) | (80,877) | — | (80,877) | (82,327) | — | (82,327) | |||||||||||||||||||||||||||||
Amortization and other costs | 21,887 | 6,072 | 27,959 | 18,639 | 4,381 | 23,020 | 26,802 | 5,114 | 31,916 | |||||||||||||||||||||||||||||
Amortization of prior service (credit)/cost | (1,945) | 51 | (1,894) | (1,945) | 13 | (1,932) | (1,945) | — | (1,945) | |||||||||||||||||||||||||||||
Effect of settlement/curtailment | 80,641 | (562) | 80,079 | — | (373) | (373) | — | 221 | 221 | |||||||||||||||||||||||||||||
Net periodic pension (income)/cost | $ | 87,576 | $ | 12,281 | $ | 99,857 | $ | (235) | $ | 12,559 | $ | 12,324 | $ | 5,286 | $ | 12,797 | $ | 18,083 |
(In thousands) |
December 27,
2020 |
December 29,
2019 |
December 30,
2018 |
|||||||||||||||||
Net actuarial (gain)/loss | $ | (4,172) | $ | (10,292) | $ | 29,965 | ||||||||||||||
Prior service cost | — | 706 | — | |||||||||||||||||
Amortization of loss | (27,959) | (23,020) | (31,916) | |||||||||||||||||
Amortization of prior service credit | 1,894 | 1,932 | 1,945 | |||||||||||||||||
Effect of settlement | (80,641) | — | (421) | |||||||||||||||||
Total recognized in other comprehensive income | (110,878) | (30,674) | (427) | |||||||||||||||||
Net periodic pension cost | 99,857 | 12,324 | 18,083 | |||||||||||||||||
Total recognized in net periodic benefit (income)/cost and other comprehensive (income)/loss | $ | (11,021) | $ | (18,350) | $ | 17,656 |
December 27, 2020 | December 29, 2019 | |||||||||||||||||||||||||||||||||||||
(In thousands) |
Qualified
Plans |
Non-
Qualified Plans |
All Plans |
Qualified
Plans |
Non-
Qualified Plans |
All Plans | ||||||||||||||||||||||||||||||||
Change in benefit obligation | ||||||||||||||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 1,660,287 | $ | 247,748 | $ | 1,908,035 | $ | 1,491,398 | $ | 223,066 | $ | 1,714,464 | ||||||||||||||||||||||||||
Service cost | 10,429 | 119 | 10,548 | 5,113 | 118 | 5,231 | ||||||||||||||||||||||||||||||||
Interest cost | 43,710 | 6,601 | 50,311 | 58,835 | 8,420 | 67,255 | ||||||||||||||||||||||||||||||||
Amendments | — | — | — | — | 706 | 706 | ||||||||||||||||||||||||||||||||
Actuarial loss | 153,136 | 21,152 | 174,288 | 191,104 | 32,874 | 223,978 | ||||||||||||||||||||||||||||||||
Curtailments | — | (562) | (562) | — | (373) | (373) | ||||||||||||||||||||||||||||||||
Settlements | (236,282) | — | (236,282) | — | — | — | ||||||||||||||||||||||||||||||||
Benefits paid | (82,268) | (15,609) | (97,877) | (86,163) | (17,046) | (103,209) | ||||||||||||||||||||||||||||||||
Effects of change in currency conversion | — | 144 | 144 | — | (17) | (17) | ||||||||||||||||||||||||||||||||
Benefit obligation at end of year | 1,549,012 | 259,593 | 1,808,605 | 1,660,287 | 247,748 | 1,908,035 | ||||||||||||||||||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | 1,648,667 | — | 1,648,667 | 1,410,151 | — | 1,410,151 | ||||||||||||||||||||||||||||||||
Actual return on plan assets | 245,606 | — | 245,606 | 315,148 | — | 315,148 | ||||||||||||||||||||||||||||||||
Employer contributions | 9,498 | 15,609 | 25,107 | 9,531 | 17,046 | 26,577 | ||||||||||||||||||||||||||||||||
Settlements | (236,282) | — | (236,282) | — | — | — | ||||||||||||||||||||||||||||||||
Benefits paid | (82,268) | (15,609) | (97,877) | (86,163) | (17,046) | (103,209) | ||||||||||||||||||||||||||||||||
Fair value of plan assets at end of year | 1,585,221 | — | 1,585,221 | 1,648,667 | — | 1,648,667 | ||||||||||||||||||||||||||||||||
Net amount recognized | $ | 36,209 | $ | (259,593) | $ | (223,384) | $ | (11,620) | $ | (247,748) | $ | (259,368) | ||||||||||||||||||||||||||
Amount recognized in the Consolidated Balance Sheets | ||||||||||||||||||||||||||||||||||||||
Noncurrent Assets | $ | 54,950 | $ | — | $ | 54,950 | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||
Current liabilities | — | (16,990) | (16,990) | — | (17,147) | (17,147) | ||||||||||||||||||||||||||||||||
Noncurrent liabilities | (18,741) | (242,603) | (261,344) | (11,620) | (230,601) | (242,221) | ||||||||||||||||||||||||||||||||
Net amount recognized | $ | 36,209 | $ | (259,593) | $ | (223,384) | $ | (11,620) | $ | (247,748) | $ | (259,368) | ||||||||||||||||||||||||||
Amount recognized in accumulated other comprehensive loss | ||||||||||||||||||||||||||||||||||||||
Actuarial loss | $ | 464,922 | $ | 137,697 | $ | 602,619 | $ | 592,774 | $ | 122,617 | $ | 715,391 | ||||||||||||||||||||||||||
Prior service credit | (14,897) | 642 | (14,255) | (16,842) | 693 | (16,149) | ||||||||||||||||||||||||||||||||
Total | $ | 450,025 | $ | 138,339 | $ | 588,364 | $ | 575,932 | $ | 123,310 | $ | 699,242 |
(In thousands) |
December 27,
2020 |
December 29,
2019 |
||||||||||||
Projected benefit obligation | $ | 364,272 | $ | 1,908,035 | ||||||||||
Accumulated benefit obligation | $ | 349,429 | $ | 1,904,979 | ||||||||||
Fair value of plan assets | $ | 85,938 | $ | 1,648,667 |
December 27,
2020 |
December 29,
2019 |
|||||||||||||
Discount rate | 2.64 | % | 3.30 | % | ||||||||||
Rate of increase in compensation levels | 3.00 | % | 3.00 | % |
December 27,
2020 |
December 29,
2019 |
December 30,
2018 |
||||||||||||||||||
Discount rate for determining projected benefit obligation | 3.30 | % | 4.43 | % | 3.75 | % | ||||||||||||||
Discount rate in effect for determining service cost | 3.67 | % | 3.87 | % | 3.88 | % | ||||||||||||||
Discount rate in effect for determining interest cost | 2.70 | % | 4.06 | % | 3.31 | % | ||||||||||||||
Rate of increase in compensation levels | 3.00 | % | 3.00 | % | 2.95 | % | ||||||||||||||
Expected long-term rate of return on assets | 4.59 | % | 5.68 | % | 5.69 | % |
December 27,
2020 |
December 29,
2019 |
|||||||||||||
Discount rate | 2.39 | % | 3.17 | % | ||||||||||
Rate of increase in compensation levels | 2.50 | % | 2.50 | % |
December 27,
2020 |
December 29,
2019 |
December 30,
2018 |
||||||||||||||||||
Discount rate for determining projected benefit obligation | 3.17 | % | 4.35 | % | 3.67 | % | ||||||||||||||
Discount rate in effect for determining interest cost | 2.78 | % | 3.94 | % | 3.14 | % | ||||||||||||||
Rate of increase in compensation levels | 2.50 | % | 2.50 | % | 2.50 | % |
Asset Category | Percentage Range | Actual | |||||||||||||||
Public Equity | 70% | - | 100% | 87 | % | ||||||||||||
High-Yield Fixed Income | 0% | - | 15% | 0 | % | ||||||||||||
Alternatives | 0% | - | 15% | 11 | % | ||||||||||||
Cash | 0% | - | 10% | 2 | % |
Asset Category | Percentage Range | Actual | |||||||||||||||
Long Duration Fixed Income | 77.5% | - | 82.5% | 78 | % | ||||||||||||
Public Equity | 12.3% | - | 22.5% | 19 | % | ||||||||||||
High-Yield Fixed Income | 0% | - | 3% | 0 | % | ||||||||||||
Alternatives | 0% | - | 3% | 2 | % | ||||||||||||
Cash | 0% | - | 2% | 1 | % |
Asset Category | Percentage Range | Actual | |||||||||||||||
Hedging Assets | 75% | - | 90% | 78 | % | ||||||||||||
Return-Seeking Assets | 10% | - | 25% | 22 | % | ||||||||||||
Cash and Equivalents | 0% | - | 5% | 0 | % |
December 31, 2020 | ||||||||||||||||||||||||||||||||
(In thousands) |
Quoted Prices
Markets for Identical Assets |
Significant
Observable Inputs |
Significant
Unobservable Inputs |
Investment
Measured at Net
Asset Value(2)
|
||||||||||||||||||||||||||||
Asset Category | (Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||||||||||||||||
Equity Securities: | ||||||||||||||||||||||||||||||||
U.S. Equities | $ | 28,002 | $ | — | $ | — | $ | — | $ | 28,002 | ||||||||||||||||||||||
International Equities | 34,025 | — | — | — | 34,025 | |||||||||||||||||||||||||||
Mutual Funds | 29,011 | — | — | — | 29,011 | |||||||||||||||||||||||||||
Registered Investment Companies | 66,923 | — | — | — | 66,923 | |||||||||||||||||||||||||||
Common/Collective Funds(1)
|
— | — | — | 643,443 | 643,443 | |||||||||||||||||||||||||||
Fixed Income Securities: | ||||||||||||||||||||||||||||||||
Corporate Bonds | — | 646,330 | — | — | 646,330 | |||||||||||||||||||||||||||
U.S. Treasury and Other Government Securities | — | 42,111 | — | — | 42,111 | |||||||||||||||||||||||||||
Municipal and Provincial Bonds | — | 40,150 | — | — | 40,150 | |||||||||||||||||||||||||||
Other | — | 10,693 | — | — | 10,693 | |||||||||||||||||||||||||||
Cash and Cash Equivalents | — | — | — | 5,481 | 5,481 | |||||||||||||||||||||||||||
Private Equity | — | — | — | 9,770 | 9,770 | |||||||||||||||||||||||||||
Hedge Fund | — | — | — | 29,282 | 29,282 | |||||||||||||||||||||||||||
Assets at Fair Value | $ | 157,961 | $ | 739,284 | $ | — | $ | 687,976 | $ | 1,585,221 | ||||||||||||||||||||||
Fair Value Measurement at December 31, 2019 | ||||||||||||||||||||||||||||||||
(In thousands) |
Quoted Prices
Markets for Identical Assets |
Significant
Observable Inputs |
Significant
Unobservable Inputs |
Investment
Measured at Net
Asset Value(2)
|
||||||||||||||||||||||||||||
Asset Category | (Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||||||||||||||||
Equity Securities: | ||||||||||||||||||||||||||||||||
U.S. Equities | $ | 55,011 | $ | — | $ | — | $ | — | $ | 55,011 | ||||||||||||||||||||||
International Equities | 38,231 | — | — | — | 38,231 | |||||||||||||||||||||||||||
Mutual Funds | 46,276 | — | — | — | 46,276 | |||||||||||||||||||||||||||
Registered Investment Companies | 52,582 | — | — | — | 52,582 | |||||||||||||||||||||||||||
Common/Collective Funds(1)
|
— | — | — | 575,738 | 575,738 | |||||||||||||||||||||||||||
Fixed Income Securities: | ||||||||||||||||||||||||||||||||
Corporate Bonds | — | 574,756 | — | — | 574,756 | |||||||||||||||||||||||||||
U.S. Treasury and Other Government Securities | — | 196,009 | — | — | 196,009 | |||||||||||||||||||||||||||
Municipal and Provincial Bonds | — | 42,812 | — | — | 42,812 | |||||||||||||||||||||||||||
Other | — | 11,745 | — | — | 11,745 | |||||||||||||||||||||||||||
Cash and Cash Equivalents | — | — | — | 19,097 | 19,097 | |||||||||||||||||||||||||||
Private Equity | — | — | — | 11,345 | 11,345 | |||||||||||||||||||||||||||
Hedge Fund | — | — | — | 25,065 | 25,065 | |||||||||||||||||||||||||||
Assets at Fair Value | $ | 192,100 | $ | 825,322 | $ | — | $ | 631,245 | $ | 1,648,667 |
Plans | ||||||||||||||||||||
(In thousands) | Qualified |
Non-
Qualified |
Total | |||||||||||||||||
2021 | $ | 69,821 | $ | 17,173 | $ | 86,994 | ||||||||||||||
2022 | 71,905 | 16,908 | 88,813 | |||||||||||||||||
2023 | 73,927 | 16,701 | 90,628 | |||||||||||||||||
2024 | 75,470 | 16,455 | 91,925 | |||||||||||||||||
2025 | 76,982 | 16,175 | 93,157 | |||||||||||||||||
2026-2030(1)
|
399,881 | 77,545 | 477,426 |
EIN/Pension Plan Number | Pension Protection Act Zone Status | FIP/RP Status Pending/Implemented | (In thousands) Contributions of the Company | Surcharge Imposed | Collective Bargaining Agreement Expiration Date | ||||||||||||||||||||||||
Pension Fund | 2020 | 2019 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||
CWA/ITU Negotiated Pension Plan | 13-6212879-001 | Critical and Declining as of 1/01/20 | Critical and Declining as of 1/01/19 | Implemented | $ | 384 | $ | 415 | $ | 408 | No | (1) | |||||||||||||||||
Newspaper and Mail Deliverers’-Publishers’ Pension Fund(2)
|
13-6122251-001 | Green as of 6/01/20 | Green as of 6/01/19 | N/A | 1,010 | 1,014 | 992 | No | 3/30/2025 | ||||||||||||||||||||
GCIU-Employer Retirement Benefit Plan | 91-6024903-001 | Critical and Declining as of 1/01/20 | Critical and Declining as of 1/01/19 | Implemented | 65 | 58 | 42 | Yes |
3/30/2021(3)
|
||||||||||||||||||||
Pressmen’s Publishers’ Pension Fund(4)
|
13-6121627-001 | Endangered as of 4/01/20 | Green as of 4/01/19 | Pending | 1,328 | 1,213 | 1,129 | No | 3/30/2021 | ||||||||||||||||||||
Paper Handlers’-Publishers’ Pension Fund(5)
|
13-6104795-001 | Critical and Declining as of 4/01/20 | Critical and Declining as of 4/01/19 | Implemented | 101 | 100 | 99 | Yes | 3/30/2021 | ||||||||||||||||||||
Contributions for individually significant plans | $ | 2,888 | $ | 2,800 | $ | 2,670 | |||||||||||||||||||||||
Contributions for a plan not individually significant | $ | 24 | $ | — | $ | — | |||||||||||||||||||||||
Total Contributions | $ | 2,912 | $ | 2,800 | $ | 2,670 |
Pension Fund | Year Contributions to Plan Exceeded More Than 5 Percent of Total Contributions (as of Plan’s Year-End) | ||||
CWA/ITU Negotiated Pension Plan | 12/31/2019 | ||||
Newspaper and Mail Deliverers’-Publishers’ Pension Fund |
5/31/2019 & 5/31/2018(1)
|
||||
Pressmen’s Publisher’s Pension Fund | 3/31/2020 & 3/31/2019 | ||||
Paper Handlers’-Publishers’ Pension Fund | 3/31/2020 & 3/31/2019 |
(In thousands) |
December 27,
2020 |
December 29,
2019 |
December 30,
2018 |
|||||||||||||||||
Service cost | $ | 29 | $ | 27 | $ | 21 | ||||||||||||||
Interest cost | 1,026 | 1,602 | 1,476 | |||||||||||||||||
Amortization and other costs | 3,051 | 3,375 | 4,735 | |||||||||||||||||
Amortization of prior service credit | (4,225) | (4,766) | (6,157) | |||||||||||||||||
Net periodic postretirement benefit cost/(income) | $ | (119) | $ | 238 | $ | 75 |
(In thousands) |
December 27,
2020 |
December 29,
2019 |
December 30,
2018 |
|||||||||||||||||
Net actuarial loss/(gain) | $ | 4,044 | $ | 296 | $ | (4,905) | ||||||||||||||
Amortization of loss | (3,051) | (3,375) | (4,735) | |||||||||||||||||
Amortization of prior service credit | 4,225 | 4,766 | 6,157 | |||||||||||||||||
Total recognized in other comprehensive loss/(income) | 5,218 | 1,687 | (3,483) | |||||||||||||||||
Net periodic postretirement benefit cost/(income) | (119) | 238 | 75 | |||||||||||||||||
Total recognized in net periodic postretirement benefit cost/(income) and other comprehensive loss/(income) | $ | 5,099 | $ | 1,925 | $ | (3,408) |
(In thousands) |
December 27,
2020 |
December 29,
2019 |
||||||||||||
Change in benefit obligation | ||||||||||||||
Benefit obligation at beginning of year | $ | 42,803 | $ | 46,037 | ||||||||||
Service cost | 29 | 27 | ||||||||||||
Interest cost | 1,026 | 1,602 | ||||||||||||
Plan participants’ contributions | 2,820 | 3,835 | ||||||||||||
Actuarial loss | 4,044 | 296 | ||||||||||||
Benefits paid | (7,414) | (8,994) | ||||||||||||
Benefit obligation at the end of year | 43,308 | 42,803 | ||||||||||||
Change in plan assets | ||||||||||||||
Employer contributions | 4,594 | 5,159 | ||||||||||||
Plan participants’ contributions | 2,820 | 3,835 | ||||||||||||
Benefits paid | (7,414) | (8,994) | ||||||||||||
Fair value of plan assets at end of year | — | — | ||||||||||||
Net amount recognized | $ | (43,308) | $ | (42,803) | ||||||||||
Amount recognized in the Consolidated Balance Sheets | ||||||||||||||
Current liabilities | $ | (4,618) | $ | (5,115) | ||||||||||
Noncurrent liabilities | (38,690) | (37,688) | ||||||||||||
Net amount recognized | $ | (43,308) | $ | (42,803) | ||||||||||
Amount recognized in accumulated other comprehensive loss | ||||||||||||||
Actuarial loss | $ | 26,785 | $ | 25,793 | ||||||||||
Prior service credit | (3,466) | (7,691) | ||||||||||||
Total | $ | 23,319 | $ | 18,102 |
(In thousands) |
December 27,
2020 |
December 29,
2019 |
||||||||||||
Accumulated benefit obligation | $ | 43,308 | $ | 42,803 | ||||||||||
Fair value of plan assets | $ | — | $ | — |
December 27,
2020 |
December 29,
2019 |
|||||||||||||
Discount rate | 2.01 | % | 2.94 | % | ||||||||||
Estimated increase in compensation level | 3.50 | % | 3.50 | % |
December 27,
2020 |
December 29,
2019 |
December 30,
2018 |
||||||||||||||||||
Discount rate for determining projected benefit obligation | 2.94 | % | 4.18 | % | 3.46 | % | ||||||||||||||
Discount rate in effect for determining service cost | 3.04 | % | 4.19 | % | 3.56 | % | ||||||||||||||
Discount rate in effect for determining interest cost | 2.55 | % | 3.71 | % | 3.01 | % | ||||||||||||||
Estimated increase in compensation level | 3.50 | % | 3.50 | % | 3.50 | % |
December 27,
2020 |
December 29,
2019 |
|||||||||||||
Health-care cost trend rate | 5.95 | % | 6.57 | % | ||||||||||
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 4.92 | % | 5.00 | % | ||||||||||
Year that the rate reaches the ultimate trend rate | 2027 | 2025 |
(In thousands) | Amount | ||||
2021 | $ | 4,716 | |||
2022 | 4,417 | ||||
2023 | 4,173 | ||||
2024 | 3,886 | ||||
2025 | 3,594 | ||||
2026-2030(1)
|
14,130 |
(In thousands) |
December 27,
2020 |
December 29,
2019 |
||||||||||||
Deferred compensation | $ | 22,245 | $ | 23,702 | ||||||||||
Noncurrent operating lease liabilities | 52,695 | 55,136 | ||||||||||||
Contingent consideration | 4,279 | — | ||||||||||||
Other liabilities | 48,366 | 47,399 | ||||||||||||
Total | $ | 127,585 | $ | 126,237 |
December 27, 2020 | December 29, 2019 | December 30, 2018 | ||||||||||||||||||||||||||||||||||||
(In thousands) | Amount |
% of
Pre-tax |
Amount |
% of
Pre-tax |
Amount |
% of
Pre-tax |
||||||||||||||||||||||||||||||||
Tax at federal statutory rate | $ | 24,241 | 21.0 | $ | 34,537 | 21.0 | $ | 36,979 | 21.0 | |||||||||||||||||||||||||||||
State and local taxes, net | 3,873 | 3.4 | 5,303 | 3.2 | 12,335 | 7.0 | ||||||||||||||||||||||||||||||||
Effect of enacted changes in tax laws | — | — | — | — | (1,872) | (1.0) | ||||||||||||||||||||||||||||||||
(Decrease)/increase in uncertain tax positions | (2,509) | (2.2) | (2,427) | (1.5) | 2,288 | 1.3 | ||||||||||||||||||||||||||||||||
(Gain)/loss on company-owned life insurance | (635) | (0.6) | (1,662) | (1.0) | 449 | 0.2 | ||||||||||||||||||||||||||||||||
Nondeductible expense | 800 | 0.7 | 1,938 | 1.2 | 1,808 | 1.0 | ||||||||||||||||||||||||||||||||
Nondeductible executive compensation | 1,271 | 1.1 | (355) | (0.2) | 2,135 | 1.2 | ||||||||||||||||||||||||||||||||
Stock-based awards benefit | (7,251) | (6.3) | (6,184) | (3.8) | (1,795) | (1.0) | ||||||||||||||||||||||||||||||||
Deduction for foreign-derived intangible income | (686) | (0.6) | (2,625) | (1.6) | — | — | ||||||||||||||||||||||||||||||||
Research and experimentation credit | (3,892) | (3.4) | (5,672) | (3.4) | — | — | ||||||||||||||||||||||||||||||||
Other, net | (617) | (0.5) | 1,641 | 1.0 | (3,696) | (2.1) | ||||||||||||||||||||||||||||||||
Income tax expense | $ | 14,595 | 12.6 | $ | 24,494 | 14.9 | $ | 48,631 | 27.6 |
(In thousands) |
December 27,
2020 |
December 29,
2019 |
December 30,
2018 |
|||||||||||||||||
Current tax expense/(benefit) | ||||||||||||||||||||
Federal | $ | 21,414 | $ | 16,283 | $ | 31,719 | ||||||||||||||
Foreign | 905 | 823 | 705 | |||||||||||||||||
State and local | 7,453 | 3,146 | 10,172 | |||||||||||||||||
Total current tax expense | 29,772 | 20,252 | 42,596 | |||||||||||||||||
Deferred tax expense/(benefit) | ||||||||||||||||||||
Federal | (9,249) | 5,588 | 913 | |||||||||||||||||
State and local | (5,928) | (1,346) | 5,122 | |||||||||||||||||
Total deferred tax expense | (15,177) | 4,242 | 6,035 | |||||||||||||||||
Income tax expense | $ | 14,595 | $ | 24,494 | $ | 48,631 |
(In thousands) |
December 27,
2020 |
December 29,
2019 |
||||||||||||
Deferred tax assets | ||||||||||||||
Retirement, postemployment and deferred compensation plans | $ | 103,433 | $ | 113,306 | ||||||||||
Accruals for other employee benefits, compensation, insurance and other | 25,899 | 25,543 | ||||||||||||
Net operating losses | 1,510 | 1,289 | ||||||||||||
Operating lease liabilities | 16,648 | 16,746 | ||||||||||||
Other | 32,664 | 27,042 | ||||||||||||
Gross deferred tax assets | $ | 180,154 | $ | 183,926 | ||||||||||
Valuation allowance | (293) | — | ||||||||||||
Net deferred tax assets | $ | 179,861 | $ | 183,926 | ||||||||||
Deferred tax liabilities | ||||||||||||||
Property, plant and equipment | $ | 41,832 | $ | 39,494 | ||||||||||
Intangible assets | 7,652 | 7,596 | ||||||||||||
Operating lease right-of-use assets | 14,196 | 14,309 | ||||||||||||
Other | 16,663 | 7,298 | ||||||||||||
Gross deferred tax liabilities | $ | 80,343 | $ | 68,697 | ||||||||||
Net deferred tax asset | $ | 99,518 | $ | 115,229 |
(In thousands) |
December 27,
2020 |
December 29,
2019 |
December 30,
2018 |
|||||||||||||||||
Balance at beginning of year | $ | 10,309 | $ | 11,629 | $ | 17,086 | ||||||||||||||
Gross additions to tax positions taken during the current year | 1,130 | 1,184 | 680 | |||||||||||||||||
Gross additions to tax positions taken during the prior year | 133 | 711 | 3,019 | |||||||||||||||||
Gross reductions to tax positions taken during the prior year | (93) | (76) | (8,607) | |||||||||||||||||
Reductions from settlements with taxing authorities | (3,814) | (2,637) | — | |||||||||||||||||
Reductions from lapse of applicable statutes of limitations | (928) | (502) | (549) | |||||||||||||||||
Balance at end of year | $ | 6,737 | $ | 10,309 | $ | 11,629 |
December 27, 2020 | ||||||||||||||||||||||||||
(Shares in thousands) | Options |
Weighted
Average Exercise Price |
Weighted
Average Remaining Contractual Term (Years) |
Aggregate
Intrinsic Value $(000s) |
||||||||||||||||||||||
Options outstanding at beginning of year | 969 | $ | 9 | 2 | $ | 22,534 | ||||||||||||||||||||
Exercised | (644) | 9 | ||||||||||||||||||||||||
Forfeited/Expired | — | — | ||||||||||||||||||||||||
Options outstanding at end of period (1)
|
325 | $ | 8 | 1 | $ | 14,225 | ||||||||||||||||||||
Options exercisable at end of period | 325 | $ | 8 | 1 | $ | 14,225 |
December 27, 2020 | ||||||||||||||
(Shares in thousands) |
Restricted
Stock Units |
Weighted
Average Grant-Date Fair Value |
||||||||||||
Unvested stock-settled restricted stock units at beginning of period | 547 | $ | 27 | |||||||||||
Granted | 256 | 37 | ||||||||||||
Vested | (273) | 25 | ||||||||||||
Forfeited | (17) | 33 | ||||||||||||
Unvested stock-settled restricted stock units at end of period | 513 | $ | 33 | |||||||||||
Unvested stock-settled restricted stock units expected to vest at end of period | 477 | $ | 33 |
(Shares in thousands) |
December 27,
2020 |
December 29,
2019 |
||||||||||||
Stock options, stock–settled restricted stock units and stock-settled performance awards | ||||||||||||||
Stock options and stock-settled restricted stock units | 1,001 | 1,648 | ||||||||||||
Stock-settled performance awards(1)
|
1,026 | 1,371 | ||||||||||||
Outstanding | 2,027 | 3,019 | ||||||||||||
Available | 15,190 | 7,475 | ||||||||||||
Total Outstanding | 2,027 | 3,019 | ||||||||||||
Total Available(2)
|
15,190 | 7,475 |
(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 | 6,763 | 129 | 3,497 | 10,389 | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss, before tax | — | 105,531 | — | 105,531 | ||||||||||||||||||||||
Income tax expense | 1,815 | 28,372 | 938 | 31,125 | ||||||||||||||||||||||
Net current-period other comprehensive income, net of tax | 4,948 | 77,288 | 2,559 | 84,795 | ||||||||||||||||||||||
Balance as of December 27, 2020 | $ | 8,386 | $ | (421,698) | $ | 3,131 | $ | (410,181) |
(In thousands)
Detail about accumulated other comprehensive loss components
|
Amounts reclassified from accumulated other comprehensive loss | Affected line item in the statement where net income is presented | ||||||||||||
Funded status of benefit plans: | ||||||||||||||
Amortization of prior service credit(1)
|
$ | (6,119) | Other components of net periodic benefit costs | |||||||||||
Amortization of actuarial loss(1)
|
31,009 | Other components of net periodic benefit costs | ||||||||||||
Pension settlement charge | 80,641 | Other components of net periodic benefit costs | ||||||||||||
Total reclassification, before tax | 105,531 | |||||||||||||
Income tax expense | 28,323 | Income tax expense | ||||||||||||
Total reclassification, net of tax | $ | 77,208 |
(In thousands) | Classification in the Consolidated Balance Sheet | December 27, 2020 | December 29, 2019 | |||||||||||||||||
Operating lease right-of-use assets | Miscellaneous assets | $ | 52,304 | $ | 53,549 | |||||||||||||||
Current operating lease liabilities | Accrued expenses and other | $ | 9,056 | $ | 7,853 | |||||||||||||||
Noncurrent operating lease liabilities | Other | 52,695 | 55,136 | |||||||||||||||||
Total operating lease liabilities | $ | 61,751 | $ | 62,989 |
For the Twelve Months Ended | ||||||||||||||
(In thousands) | December 27, 2020 | December 29, 2019 | ||||||||||||
Operating lease cost | $ | 11,467 | $ | 9,980 | ||||||||||
Short term and variable lease cost | 1,776 | 1,814 | ||||||||||||
Total lease cost | $ | 13,243 | $ | 11,794 |
(In thousands, except lease term and discount rate) | December 27, 2020 | December 29, 2019 | ||||||||||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 11,533 | $ | 9,101 | ||||||||||||||||
Right-of-use assets obtained in exchange for operating lease liabilities | $ | 9,004 | $ | 61,270 | ||||||||||||||||
Weighted-average remaining lease term | 8.7 years | 9.7 years | ||||||||||||||||||
Weighted-average discount rate | 4.41 | % | 4.64 | % |
(In thousands) | Amount | |||||||
2021 | $ | 11,356 | ||||||
2022 | 10,331 | |||||||
2023 | 9,135 | |||||||
2024 | 8,015 | |||||||
2025 | 6,873 | |||||||
Later Years | 28,639 | |||||||
Total lease payments | $ | 74,349 | ||||||
Less: Interest | (12,598) | |||||||
Present value of lease liabilities | $ | 61,751 |
For the Twelve Months Ended | ||||||||||||||
(In thousands) | December 27, 2020 | December 29, 2019 | ||||||||||||
Building rental revenue (1)
|
$ | 28,516 | $ | 30,595 |
(In thousands) | Amount | |||||||
2021 | $ | 27,766 | ||||||
2022 | 30,327 | |||||||
2023 | 28,774 | |||||||
2024 | 28,823 | |||||||
2025 | 29,294 | |||||||
Later Years | 135,413 | |||||||
Total building rental revenue from operating leases | $ | 280,397 |
|
As Reported for the Twelve Months Ended December 29, 2019 | Reclassification |
Recast for the Twelve Months Ended
December 29, 2019 |
|||||||||||||||||
Operating costs | ||||||||||||||||||||
Production costs: | ||||||||||||||||||||
Wages and benefits | $ | 424,070 | $ | (424,070) |
(1)(2)
|
$ | — | |||||||||||||
Raw materials | 75,904 | (75,904) |
(1)
|
— | ||||||||||||||||
Other production costs | 206,381 | (206,381) |
(1)(2)
|
— | ||||||||||||||||
Total production costs | 706,355 | (706,355) |
(1)(2)
|
— | ||||||||||||||||
Cost of revenue (excluding depreciation and amortization) | — | 989,029 |
(1)(3)(4)
|
989,029 | ||||||||||||||||
Selling, general and administrative costs | 867,623 | (867,623) |
(3)(4)(5)
|
— | ||||||||||||||||
Sales and marketing | — | 272,657 |
(4)(5)
|
272,657 | ||||||||||||||||
Product development | — | 105,514 |
(2)(4)(5)
|
105,514 | ||||||||||||||||
General and administrative | — | 206,778 |
(4)(5)
|
206,778 | ||||||||||||||||
Depreciation and amortization | 60,661 | — | 60,661 | |||||||||||||||||
Total operating costs | $ | 1,634,639 | $ | — | $ | 1,634,639 |
|
As Reported for the Twelve Months Ended December 30, 2018 | Reclassification |
Recast for the Twelve Months Ended
December 30, 2018 |
|||||||||||||||||
Operating costs | ||||||||||||||||||||
Production costs: | ||||||||||||||||||||
Wages and benefits | $ | 380,678 | $ | (380,678) |
(1)(2)
|
$ | — | |||||||||||||
Raw materials | 76,542 | (76,542) |
(1)
|
— | ||||||||||||||||
Other production costs | 196,956 | (196,956) |
(1)(2)
|
— | ||||||||||||||||
Total production costs | 654,176 | (654,176) |
(1)(2)
|
— | ||||||||||||||||
Cost of revenue (excluding depreciation and amortization) | — | 947,884 |
(1)(3)(4)
|
947,884 | ||||||||||||||||
Selling, general and administrative costs | 845,591 | (845,591) |
(3)(4)(5)
|
— | ||||||||||||||||
Sales and marketing | — | 271,164 |
(4)(5)
|
271,164 | ||||||||||||||||
Product development | — | 84,098 |
(2)(4)(5)
|
84,098 | ||||||||||||||||
General and administrative | — | 196,621 |
(4)(5)
|
196,621 | ||||||||||||||||
Depreciation and amortization | 59,011 | — | 59,011 | |||||||||||||||||
Total operating costs | $ | 1,558,778 | $ | — | $ | 1,558,778 |
(In thousands) |
Balance at
beginning of period |
Additions
charged to operating costs and other |
Deductions(1)
|
Balance at
end of period |
||||||||||||||||||||||
Accounts receivable allowances: | ||||||||||||||||||||||||||
Year ended December 27, 2020 | $ | 14,358 | $ | 14,783 | $ | 15,344 | $ | 13,797 | ||||||||||||||||||
Year ended December 30, 2019 | $ | 13,249 | $ | 14,807 | $ | 13,698 | $ | 14,358 | ||||||||||||||||||
Year ended December 31, 2018 | $ | 14,542 | $ | 11,830 | $ | 13,123 | $ | 13,249 | ||||||||||||||||||
2020 Quarters | |||||||||||||||||
(In thousands, except per share data) |
March 29,
2020 |
June 28,
2020 |
September 27,
2020 |
December 27,
2020 |
Full Year | ||||||||||||
(13 weeks) | (13 weeks) | (13 weeks) | (13 weeks) | (52 weeks) | |||||||||||||
Revenues | $ | 443,636 | $ | 403,750 | $ | 426,895 | $ | 509,358 | $ | 1,783,639 | |||||||
Operating costs | 416,316 | 374,944 | 387,299 | 428,824 | 1,607,383 | ||||||||||||
Operating profit | 27,320 | 28,806 | 39,596 | 80,534 | 176,256 | ||||||||||||
Other components of net periodic benefit costs(1)
|
2,314 | 2,149 | 2,272 | 82,419 | 89,154 | ||||||||||||
Gain from joint ventures(2)
|
— | — | — | 5,000 | 5,000 | ||||||||||||
Interest expense and other, net (3)
|
13,854 | 2,786 | 3,537 | 3,153 | 23,330 | ||||||||||||
Income from continuing operations before income taxes | 38,860 | 29,443 | 40,861 | 6,268 | 115,432 | ||||||||||||
Income tax expense/(benefit) | 6,006 | 5,781 | 7,283 | (4,475) | 14,595 | ||||||||||||
Net income | 32,854 | 23,662 | 33,578 | 10,743 | 100,837 | ||||||||||||
Net income attributable to the noncontrolling interest | — | — | — | (734) | (734) | ||||||||||||
Net income attributable to The New York Times Company common stockholders | $ | 32,854 | $ | 23,662 | $ | 33,578 | $ | 10,009 | $ | 100,103 | |||||||
Average number of common shares outstanding: | |||||||||||||||||
Basic | 166,549 | 166,869 | 167,075 | 167,367 | 166,973 | ||||||||||||
Diluted | 167,845 | 168,083 | 168,059 | 168,197 | 168,038 | ||||||||||||
Basic earnings per share attributable to The New York Times Company common stockholders: | |||||||||||||||||
Net income | $ | 0.20 | $ | 0.14 | $ | 0.20 | $ | 0.06 | $ | 0.60 | |||||||
Diluted earnings per share attributable to The New York Times Company common stockholders: | |||||||||||||||||
Net income | $ | 0.20 | $ | 0.14 | $ | 0.20 | $ | 0.06 | $ | 0.60 | |||||||
Dividends declared per share | $ | 0.06 | $ | — | $ | 0.12 | $ | 0.06 | $ | 0.24 |
2019 Quarters | |||||||||||||||||
(In thousands, except per share data) |
March 31,
2019 |
June 30,
2019 |
September 29,
2019 |
December 29,
2019 |
Full Year | ||||||||||||
(13 weeks) | (13 weeks) | (13 weeks) | (13 weeks) | (52 weeks) | |||||||||||||
Revenues | $ | 439,062 | $ | 436,258 | $ | 428,501 | $ | 508,363 | $ | 1,812,184 | |||||||
Operating costs | 404,464 | 398,325 | 401,452 | 430,398 | 1,634,639 | ||||||||||||
Restructuring charge(1)
|
— | — | 4,008 | — | 4,008 | ||||||||||||
Gain from pension liability adjustment(2)
|
— | — | (2,045) | — | (2,045) | ||||||||||||
Operating profit | 34,598 | 37,933 | 25,086 | 77,965 | 175,582 | ||||||||||||
Other components of net periodic benefit costs | 1,835 | 1,833 | 1,834 | 1,800 | 7,302 | ||||||||||||
Interest expense and other, net | (1,303) | (1,514) | (755) | (248) | (3,820) | ||||||||||||
Income from continuing operations before income taxes | 31,460 | 34,586 | 22,497 | 75,917 | 164,460 | ||||||||||||
Income tax expense | 1,304 | 9,415 | 6,070 | 7,705 | 24,494 | ||||||||||||
Net income attributable to The New York Times Company common stockholders | $ | 30,156 | $ | 25,171 | $ | 16,427 | $ | 68,212 | $ | 139,966 | |||||||
Average number of common shares outstanding: | |||||||||||||||||
Basic | 165,674 | 166,152 | 166,148 | 166,239 | 166,042 | ||||||||||||
Diluted | 167,129 | 167,549 | 167,555 | 167,728 | 167,545 | ||||||||||||
Basic earnings/(loss) per share attributable to The New York Times Company common stockholders: | |||||||||||||||||
Net income/(loss) | $ | 0.18 | $ | 0.15 | $ | 0.10 | $ | 0.41 | $ | 0.84 | |||||||
Diluted earnings/(loss) per share attributable to The New York Times Company common stockholders: | |||||||||||||||||
Net income/(loss) | $ | 0.18 | $ | 0.15 | $ | 0.10 | $ | 0.41 | $ | 0.83 | |||||||
Dividends declared per share | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.20 |
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
|
ITEM 9A. CONTROLS AND PROCEDURES
|
ITEM 9B. OTHER INFORMATION
|
PART III |
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
|
ITEM 11. EXECUTIVE COMPENSATION
|
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
Number of securities
to be issued upon exercise of outstanding options, warrants and rights |
Weighted average
exercise price of outstanding options, warrants and rights |
Number of securities
remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) |
|||||||||||||||||||||
Plan category | (a) | (b) | (c) | ||||||||||||||||||||
Equity compensation plans approved by security holders | |||||||||||||||||||||||
Stock-based awards | 2,027,252 |
(1)
|
$ | 7.56 |
(2)
|
15,190,410 |
(3)
|
||||||||||||||||
Total | 2,027,252 | 15,190,410 | |||||||||||||||||||||
Equity compensation plans not approved by security holders | None | None | None |
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
|
PART IV |
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
|
Page | |||||
Consolidated Schedule for the Three Years Ended December 27, 2020 | |||||
II – Valuation and Qualifying Accounts |
INDEX TO EXHIBITS
|
Exhibit
Number |
Description of Exhibit | |||||||
(3.1) | ||||||||
(3.2) | ||||||||
(4) | The Company agrees to furnish to the Commission upon request a copy of any instrument with respect to long-term debt of the Company and any subsidiary for which consolidated or unconsolidated financial statements are required to be filed, and for which the amount of securities authorized thereunder does not exceed 10% of the total assets of the Company and its subsidiaries on a consolidated basis. | |||||||
(4.1) | ||||||||
(10.1) | ||||||||
(10.2) | ||||||||
(10.3) | ||||||||
(10.4) | ||||||||
(10.5) | ||||||||
(10.6) | ||||||||
(10.7) | ||||||||
(10.8) | ||||||||
(10.9) | ||||||||
(10.10) | ||||||||
(10.11) | ||||||||
(10.12)* | ||||||||
(10.13)* | ||||||||
(10.14) |
Exhibit
Number |
Description of Exhibit | |||||||
(10.15) | ||||||||
(10.16) | ||||||||
(10.17) | ||||||||
(10.18) | ||||||||
(10.19) | ||||||||
(10.20) | ||||||||
(10.21) | ||||||||
(10.22) | ||||||||
(10.23) | ||||||||
(10.24) | ||||||||
(10.25) | ||||||||
(21) | ||||||||
(23.1) | ||||||||
(24) | Power of Attorney (included as part of signature page). | |||||||
(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). |
ITEM 16. FORM 10-K SUMMARY
|
SIGNATURES
|
THE NEW YORK TIMES COMPANY
(Registrant)
|
|||||||||||
BY: | /s/ Roland A. Caputo | ||||||||||
Roland A. Caputo | |||||||||||
Executive Vice President and Chief Financial Officer |
Signature | Title | Date | ||||||
/s/ A.G. Sulzberger | Chairman, Publisher and Director | February 25, 2021 | ||||||
/s/ Meredith Kopit Levien |
Chief Executive Officer, President and Director
(principal executive officer) |
February 25, 2021 | ||||||
/s/ Roland A. Caputo |
Executive Vice President and Chief Financial Officer
(principal financial officer) |
February 25, 2021 | ||||||
/s/ R. Anthony Benten |
Senior Vice President, Treasurer and Chief Accounting Officer
(principal accounting officer) |
February 25, 2021 | ||||||
/s/ Amanpal S. Bhutani | Director | February 25, 2021 | ||||||
/s/ Robert E. Denham | Director | February 25, 2021 | ||||||
/s/ Rachel Glaser | Director | February 25, 2021 | ||||||
/s/ Arthur Golden | Director | February 25, 2021 | ||||||
/s/ Hays N. Golden | Director | February 25, 2021 | ||||||
/s/ Brian P. McAndrews | Director | February 25, 2021 | ||||||
/s/ David Perpich | Director | February 25, 2021 | ||||||
/s/ John W. Rogers, Jr. | Director | February 25, 2021 | ||||||
/s/ Doreen Toben | Director | February 25, 2021 | ||||||
/s/ Rebecca Van Dyck | Director | February 25, 2021 |
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] |
ASSIGNOR:
NYT BUILDING LEASING COMPANY LLC, a New York limited liability company
|
||||||||
By: | /s/ R. Anthony Benten | |||||||
Name: | R. Anthony Benten | |||||||
Title: | Manager |
ASSIGNEE: | ||||||||
NYT REAL ESTATE COMPANY LLC,
a New York limited liability company
|
||||||||
By: | /s/ R. Anthony Benten | |||||||
Name: | R. Anthony Benten | |||||||
Title: | Manager | |||||||
STATE OF NEW YORK | ) | |||||||
) | ss: | |||||||
COUNTY OF NEW YORK | ) |
STATE OF NEW YORK | ) | |||||||
) | ss: | |||||||
COUNTY OF NEW YORK | ) |
SCHEDULE OF UNITS |
UNIT DESIGNATION | TAX LOT | PERCENTAGE INTEREST IN COMMON ELEMENTS | ||||||
21-A | 1028 | 1.7819% | ||||||
22-A | 1029 | 1.7819% | ||||||
23-A | 1030 | 1.7819% | ||||||
24-A | 1031 | 1.7819% | ||||||
25-A | 1032 | 1.7819% | ||||||
26-A | 1033 | 1.7819% | ||||||
27-A | 1034 | 1.7819% |
Name of Subsidiary |
Jurisdiction of
Incorporation or Organization |
||||
The New York Times Company | New York | ||||
Fake Love LLC | Delaware | ||||
Hello Society, LLC | Delaware | ||||
Madison Paper Industries (partnership) (40%) | Maine | ||||
New York Times Canada Ltd. | Canada | ||||
New York Times Digital LLC | Delaware | ||||
Northern SC Paper Corporation (80%) | Delaware | ||||
NYT Administradora de Bens e Servicos Ltda. | Brazil | ||||
NYT App Holding Inc. | Delaware | ||||
NYT Building Leasing Company LLC | New York | ||||
NYT Capital, LLC | Delaware | ||||
Midtown Insurance Company | New York | ||||
NYT Shared Service Center, Inc. | Delaware | ||||
International Media Concepts, Inc. | Delaware | ||||
The New York Times Distribution Corporation | Delaware | ||||
The New York Times Sales Company | Massachusetts | ||||
The New York Times Syndication Sales Corporation | Delaware | ||||
NYT College Point LLC
|
Delaware | ||||
NYT Group Services, LLC | Delaware | ||||
NYT International LLC | Delaware | ||||
New York Times Limited | United Kingdom | ||||
New York Times (Zürich) GmbH | Switzerland | ||||
NYT B.V. | Netherlands | ||||
NYT France S.A.S. | France | ||||
International Herald Tribune U.S. Inc. | New York | ||||
New York Times France-Kathimerini Commercial S.A. (50%)
|
Greece | ||||
The Herald Tribune - Ha’aretz Partnership (50%) | Israel | ||||
NYT Germany GmbH | Germany | ||||
NYT Hong Kong Limited | Hong Kong | ||||
Beijing Shixun Zhihua Consulting Co. LTD. | People’s Republic of China | ||||
NYT Japan GK | Japan | ||||
NYT Singapore PTE. LTD. | Singapore | ||||
NYT News Bureau (India) Private Limited | India | ||||
NYT Real Estate Company LLC | New York | ||||
The New York Times Building LLC (58%) | New York | ||||
Rome Bureau S.r.l. | Italy | ||||
The New York Times Company Pty Limited | Australia | ||||
Wirecutter, Inc.
|
Delaware |
Rule 13a-14(a)/15d-14(a) Certification
|
||||||||||||||
I, Meredith Kopit Levien, certify that: | ||||||||||||||
1. | I have reviewed this Annual Report on Form 10-K of The New York Times Company; | |||||||||||||
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |||||||||||||
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |||||||||||||
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | |||||||||||||
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |||||||||||||
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||||||||
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |||||||||||||
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | |||||||||||||
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): | |||||||||||||
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | |||||||||||||
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Meredith Kopit Levien
|
|||||
Meredith Kopit Levien | |||||
Chief Executive Officer |
Rule 13a-14(a)/15d-14(a) Certification
|
||||||||||||||
I, Roland A. Caputo, certify that: | ||||||||||||||
1. | I have reviewed this Annual Report on Form 10-K of The New York Times Company; | |||||||||||||
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |||||||||||||
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |||||||||||||
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | |||||||||||||
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |||||||||||||
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||||||||
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |||||||||||||
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | |||||||||||||
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): | |||||||||||||
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | |||||||||||||
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ ROLAND A. CAPUTO
|
|||||
Roland A. Caputo | |||||
Chief Financial Officer |
/s/ Meredith Kopit Levien
|
|||||
Meredith Kopit Levien | |||||
Chief Executive Officer |
/s/ ROLAND A. CAPUTO
|
|||||
Roland A. Caputo | |||||
Chief Financial Officer |