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 2022 ANNUAL REPORT ON FORM 10-K |
ITEM NO. | ||||||||||||||||||||
Subscribers, Subscriptions and Audience | ||||||||||||||||||||
Human Capital | ||||||||||||||||||||
16 | ||||||||||||||||||||
PART I |
FORWARD-LOOKING STATEMENTS |
ITEM 1. BUSINESS |
(In metric tons) | 2022 | 2021 | ||||||||||||
Newsprint(1) | 65,000 | 63,600 | ||||||||||||
Coated and Supercalendered Paper(2) | 9,700 | 9,800 |
Employee Category | Expiration Date | ||||
NewsGuild of New York (The New York Times) | March 30, 2021 | ||||
Mailers | March 30, 2023 | ||||
Voice Actors | October 31, 2023 | ||||
NewsGuild of New York (Wirecutter) | February 28, 2024 | ||||
Typographers | March 30, 2025 | ||||
Drivers | March 30, 2026 | ||||
Machinists | March 30, 2026 | ||||
Paperhandlers | March 30, 2026 | ||||
Stereotypers | March 30, 2026 | ||||
Pressmen | March 30, 2027 |
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 23, 2022 | |||||||||||||||||
A.G. Sulzberger | 42 | 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 | 51 | 2013 | President and Chief Executive Officer (since 2020); Executive Vice President and Chief Operating Officer (2017 to 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 | 59 | 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 | 54 | 2004 | Executive Vice President, General Counsel (since 2017) and Secretary (since 2011); Interim Executive Vice President, Talent & Inclusion (2020 to 2021); Deputy General Counsel (2016); Assistant Secretary (2009 to 2011) and Assistant General Counsel (2009 to 2016) | |||||||||||||||||
Roland A. Caputo | 62 | 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 | 53 | 2021 | Executive Vice President and Chief Human Resources Officer (since 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) | ||||||||||||||||||||||
September 26, 2022 - October 30, 2022 | 453,672 | $ | 29.35 | 453,672 | $ | 56,922,000 | ||||||||||||||||||||
October 31, 2022 - November 27, 2022 | 27,253 | $ | 33.84 | 27,253 | $ | 56,007,000 | ||||||||||||||||||||
November 28, 2022 - December 31, 2022 | 328,431 | $ | 33.53 | 328,431 | $ | 45,007,000 | ||||||||||||||||||||
Total for the fourth quarter of 2022 | 809,356 | $ | 31.20 | 809,356 | $ | 45,007,000 |
ITEM 6. [RESERVED] |
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 and segment information. | ||||||||||||||
The non-operating and non-GAAP items section provides a comparison of our non-GAAP financial measures to the most directly comparable GAAP measures for the two years ended December 31, 2022, and December 26, 2021. | ||||||||||||||
The liquidity and capital resources section provides a discussion of our cash flows for the two years ended December 31, 2022, and December 26, 2021, and restricted cash, capital expenditures and third-party financing, commitments and contingencies existing as of December 31, 2022. | ||||||||||||||
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, including our pension liability, funding status, annual contributions, and actuarial assumptions. | ||||||||||||||
Years Ended | % Change | |||||||||||||||||||
(In thousands) | December 31, 2022 | December 26, 2021 | 2022 vs. 2021 | |||||||||||||||||
(52 weeks and six days) | (52 weeks) | |||||||||||||||||||
Revenues | ||||||||||||||||||||
Digital | $ | 978,574 | $ | 773,882 | 26.5 | |||||||||||||||
573,788 | 588,233 | (2.5) | ||||||||||||||||||
Subscription revenues | 1,552,362 | 1,362,115 | 14.0 | |||||||||||||||||
Digital | 318,440 | 308,616 | 3.2 | |||||||||||||||||
204,848 | 188,920 | 8.4 | ||||||||||||||||||
Advertising revenues | 523,288 | 497,536 | 5.2 | |||||||||||||||||
Other | 232,671 | 215,226 | 8.1 | |||||||||||||||||
Total revenues | 2,308,321 | 2,074,877 | 11.3 | |||||||||||||||||
Operating costs | ||||||||||||||||||||
Cost of revenue (excluding depreciation and amortization) | 1,208,933 | 1,039,568 | 16.3 | |||||||||||||||||
Sales and marketing | 267,553 | 294,947 | (9.3) | |||||||||||||||||
Product development | 204,185 | 160,871 | 26.9 | |||||||||||||||||
General and administrative | 289,259 | 250,124 | 15.6 | |||||||||||||||||
Depreciation and amortization | 82,654 | 57,502 | 43.7 | |||||||||||||||||
Total operating costs | 2,052,584 | 1,803,012 | 13.8 | |||||||||||||||||
Acquisition-related costs | 34,712 | — | * | |||||||||||||||||
Multiemployer pension plan liability adjustment | 14,989 | — | * | |||||||||||||||||
Impairment charge | 4,069 | — | * | |||||||||||||||||
Lease termination charge | — | 3,831 | * | |||||||||||||||||
Operating profit | 201,967 | 268,034 | (24.6) | |||||||||||||||||
Other components of net periodic benefit costs | 6,659 | 10,478 | (36.4) | |||||||||||||||||
Interest income and other, net | 40,691 | 32,945 | 23.5 | |||||||||||||||||
Income from continuing operations before income taxes | 235,999 | 290,501 | (18.8) | |||||||||||||||||
Income tax expense | 62,094 | 70,530 | (12.0) | |||||||||||||||||
Net income attributable to The New York Times Company common stockholders | $ | 173,905 | $ | 219,971 | (20.9) |
Years Ended | % Change | |||||||||||||||||||
(In thousands) | December 31, 2022 | December 26, 2021 | 2022 vs. 2021 | |||||||||||||||||
(52 weeks and six days) | (52 weeks) | |||||||||||||||||||
Subscription | $ | 1,552,362 | $ | 1,362,115 | 14.0 | |||||||||||||||
Advertising | 523,288 | 497,536 | 5.2 | |||||||||||||||||
Other | 232,671 | 215,226 | 8.1 | |||||||||||||||||
Total | $ | 2,308,321 | $ | 2,074,877 | 11.3 |
Years Ended | % Change | |||||||||||||||||||
(In thousands) | December 31, 2022 | December 26, 2021 | 2022 vs. 2021 | |||||||||||||||||
(52 weeks and six days) | (52 weeks) | |||||||||||||||||||
Digital-only subscription revenues(1) | $ | 978,574 | $ | 773,882 | 26.5 | |||||||||||||||
Print subscription revenues | ||||||||||||||||||||
Domestic home delivery subscription revenues(2) | 517,395 | 529,039 | (2.2) | |||||||||||||||||
Single-copy, NYT International and other subscription revenues(3) | 56,393 | 59,194 | (4.7) | |||||||||||||||||
Subtotal print subscription revenues | 573,788 | 588,233 | (2.5) | |||||||||||||||||
Total subscription revenues | $ | 1,552,362 | $ | 1,362,115 | 14.0 | |||||||||||||||
(1) Includes revenue from digital-only bundled and standalone subscriptions to our news product, as well as The Athletic and our Cooking, Games, Audm and Wirecutter products. | ||||||||||||||||||||
(2) Domestic home delivery subscriptions include access to our digital news product, as well as The Athletic and our Cooking, Games and Wirecutter products. | ||||||||||||||||||||
(3) NYT International is the international edition of our print newspaper. |
December 31, 2022 | September 25, 2022 | June 26, 2022 | March 27, 2022 | December 26, 2021 | ||||||||||||||||||||||||||||
Digital-only subscribers (1) | 8,830 | 8,590 | 8,410 | 8,230 | 6,783 | |||||||||||||||||||||||||||
Print subscribers(2) | 730 | 740 | 760 | 780 | 795 | |||||||||||||||||||||||||||
Total subscribers (3) | 9,550 | 9,330 | 9,170 | 9,010 | 7,578 | |||||||||||||||||||||||||||
(1) Subscribers with paid digital-only subscriptions to one or more of our news product, The Athletic, or our Cooking, Games and Wirecutter products. Subscribers with a paid domestic home-delivery print subscription to The New York Times are excluded. The number of digital-only subscribers includes group corporate and group education subscriptions (which collectively represented approximately 5% of paid digital-only subscribers as of the fourth quarter of 2022). The number of group subscribers is derived using the value of the relevant contract and a discounted subscription rate. | ||||||||||||||||||||||||||||||||
(2) Subscribers with a paid domestic home delivery or mail print subscription to The New York Times, which also includes access to our digital news product, as well as The Athletic and our Cooking, Games and Wirecutter products, or a paid print subscription to our Book Review or Large Type Weekly products. Book Review, Mail and Large Type Weekly subscribers are included in the count of subscribers but not subscriptions. | ||||||||||||||||||||||||||||||||
(3) The sum of individual metrics may not always equal total amounts indicated due to rounding. |
Years Ended | % Change | |||||||||||||||||||
(In thousands) | December 31, 2022 | December 26, 2021 | 2022 vs. 2021 | |||||||||||||||||
(52 weeks and six days) | (52 weeks) | |||||||||||||||||||
Advertising revenues | ||||||||||||||||||||
Digital | $ | 318,440 | $ | 308,616 | 3.2 | % | ||||||||||||||
204,848 | 188,920 | 8.4 | % | |||||||||||||||||
Total advertising | $ | 523,288 | $ | 497,536 | 5.2 | % |
Years Ended | % Change | |||||||||||||||||||
(In thousands) | December 31, 2022 | December 26, 2021 | 2022 vs. 2021 | |||||||||||||||||
(52 weeks and six days) | (52 weeks) | |||||||||||||||||||
Operating costs: | ||||||||||||||||||||
Cost of revenue (excluding depreciation and amortization)(1) | $ | 1,208,933 | $ | 1,039,568 | 16.3 | |||||||||||||||
Sales and marketing | 267,553 | 294,947 | (9.3) | |||||||||||||||||
Product development(1) | 204,185 | 160,871 | 26.9 | |||||||||||||||||
General and administrative(1) | 289,259 | 250,124 | 15.6 | |||||||||||||||||
Depreciation and amortization(2) | 82,654 | 57,502 | 43.7 | |||||||||||||||||
Total operating costs | $ | 2,052,584 | $ | 1,803,012 | 13.8 | |||||||||||||||
(1) Technology costs, which include product development costs and certain components of cost of revenue and general and administrative costs as described below, increased 24.5% to $377.2 million in 2022 from $302.9 million in 2021. | ||||||||||||||||||||
(2) Includes amortization of intangible assets related to our acquisitions of approximately $25 million for 2022. |
Years Ended | ||||||||||||||
December 31, 2022 | December 26, 2021 | |||||||||||||
(52 weeks and six days) | (52 weeks) | |||||||||||||
Components of operating costs as a percentage of total operating costs | ||||||||||||||
Cost of revenue (excluding depreciation and amortization) | 59 | % | 58 | % | ||||||||||
Sales and marketing | 13 | % | 16 | % | ||||||||||
Product development | 10 | % | 9 | % | ||||||||||
General and administrative | 14 | % | 14 | % | ||||||||||
Depreciation and amortization | 4 | % | 3 | % | ||||||||||
Total | 100 | % | 100 | % |
Years Ended | ||||||||||||||
December 31, 2022 | December 26, 2021 | |||||||||||||
(52 weeks and six days) | (52 weeks) | |||||||||||||
Components of operating costs as a percentage of total revenues | ||||||||||||||
Cost of revenue (excluding depreciation and amortization) | 52 | % | 50 | % | ||||||||||
Sales and marketing | 12 | % | 14 | % | ||||||||||
Product development | 9 | % | 8 | % | ||||||||||
General and administrative | 13 | % | 12 | % | ||||||||||
Depreciation and amortization | 4 | % | 3 | % | ||||||||||
Total | 90 | % | 87 | % |
Revenues detail by segment | ||||||||||||||||||||
Years Ended | % Change | |||||||||||||||||||
(in thousands) | December 31, 2022 | December 26, 2021 | 2022 vs. 2021 | |||||||||||||||||
(52 weeks and six days)(1) | (52 weeks) | |||||||||||||||||||
The New York Times Group | ||||||||||||||||||||
Subscription | $ | 1,479,209 | $ | 1,362,115 | 8.6 | % | ||||||||||||||
Advertising | 511,320 | 497,536 | 2.8 | % | ||||||||||||||||
Other | 232,060 | 215,226 | 7.8 | % | ||||||||||||||||
Total | $ | 2,222,589 | $ | 2,074,877 | 7.1 | % | ||||||||||||||
The Athletic | ||||||||||||||||||||
Subscription | $ | 73,153 | $ | — | * | |||||||||||||||
Advertising | 11,968 | — | * | |||||||||||||||||
Other | 611 | — | * | |||||||||||||||||
Total | $ | 85,732 | $ | — | * | |||||||||||||||
The New York Times Company | ||||||||||||||||||||
Subscription | $ | 1,552,362 | $ | 1,362,115 | 14.0 | % | ||||||||||||||
Advertising | 523,288 | 497,536 | 5.2 | % | ||||||||||||||||
Other | 232,671 | 215,226 | 8.1 | % | ||||||||||||||||
Total | $ | 2,308,321 | $ | 2,074,877 | 11.3 | % | ||||||||||||||
(1) The results of The Athletic have been included in our Consolidated Financial Statements beginning February 1, 2022. | ||||||||||||||||||||
* Represents a change equal to or in excess of 100% or not meaningful. |
Adjusted operating costs (operating costs before depreciation and amortization, severance and multiemployer pension plan withdrawal costs) detail by segment | ||||||||||||||||||||
Years Ended | % Change | |||||||||||||||||||
(in thousands) | December 31, 2022 | December 26, 2021 | 2022 vs. 2021 | |||||||||||||||||
(52 weeks and six days)(3) | (52 weeks) | |||||||||||||||||||
The New York Times Group | ||||||||||||||||||||
Cost of revenue (excluding depreciation and amortization) | $ | 1,135,518 | $ | 1,039,568 | 9.2 | % | ||||||||||||||
Sales and marketing | 243,936 | 294,947 | (17.3) | % | ||||||||||||||||
Product development | 189,027 | 160,871 | 17.5 | % | ||||||||||||||||
Adjusted general and administrative(1) | 270,303 | 244,092 | 10.7 | % | ||||||||||||||||
Total | $ | 1,838,784 | $ | 1,739,478 | 5.7 | % | ||||||||||||||
The Athletic | ||||||||||||||||||||
Cost of revenue (excluding depreciation and amortization) | $ | 73,415 | $ | — | * | |||||||||||||||
Sales and marketing | 23,617 | — | * | |||||||||||||||||
Product development | 15,158 | — | * | |||||||||||||||||
Adjusted general and administrative(2) | 9,416 | — | * | |||||||||||||||||
Total | $ | 121,606 | $ | — | * | |||||||||||||||
The New York Times Company | ||||||||||||||||||||
Cost of revenue (excluding depreciation and amortization) | $ | 1,208,933 | $ | 1,039,568 | 16.3 | % | ||||||||||||||
Sales and marketing | 267,553 | 294,947 | (9.3) | % | ||||||||||||||||
Product development | 204,185 | 160,871 | 26.9 | % | ||||||||||||||||
Adjusted general and administrative | 279,719 | 244,092 | 14.6 | % | ||||||||||||||||
Total | $ | 1,960,390 | $ | 1,739,478 | 12.7 | % | ||||||||||||||
(1) Excludes severance of $4.7 million for the 12 months of 2022 and multiemployer pension withdrawal costs of $4.9 million for the 12 months of 2022. Excludes severance of $0.9 million for the 12 months of 2021 and multiemployer pension withdrawal costs of $5.2 million for the 12 months of 2021. | ||||||||||||||||||||
(2) Excludes $0.2 million of severance for the 12 months of 2022. | ||||||||||||||||||||
(3) The results of The Athletic have been included in our Consolidated Financial Statements beginning February 1, 2022. | ||||||||||||||||||||
* Represents a change equal to or in excess of 100% or not meaningful. |
Reconciliation of operating profit before depreciation and amortization, severance, multiemployer pension plan withdrawal costs and special items (or adjusted operating profit) and of adjusted operating profit margin | ||||||||||||||||||||
Years Ended | % Change | |||||||||||||||||||
(In thousands) | December 31, 2022 | December 26, 2021 | 2022 vs. 2021 | |||||||||||||||||
(52 weeks and six days) | (52 weeks) | |||||||||||||||||||
Operating profit | $ | 201,967 | $ | 268,034 | (24.6) | % | ||||||||||||||
Add: | ||||||||||||||||||||
Depreciation and amortization | 82,654 | 57,502 | 43.7 | % | ||||||||||||||||
Severance | 4,669 | 882 | * | |||||||||||||||||
Multiemployer pension plan withdrawal costs | 4,871 | 5,150 | (5.4) | % | ||||||||||||||||
Special items: | ||||||||||||||||||||
Acquisition-related costs | 34,712 | — | * | |||||||||||||||||
Impairment charge | 4,069 | — | * | |||||||||||||||||
Lease termination charge | — | 3,831 | * | |||||||||||||||||
Multiemployer pension plan liability adjustment | 14,989 | — | * | |||||||||||||||||
Adjusted operating profit | $ | 347,931 | $ | 335,399 | 3.7 | % | ||||||||||||||
Divided by: | ||||||||||||||||||||
Revenue | 2,308,321 | 2,074,877 | 11.3 | % | ||||||||||||||||
Operating profit margin | 8.7 | % | 12.9 | % | (420) bps | |||||||||||||||
Adjusted operating profit margin | 15.1 | % | 16.2 | % | (110) bps |
Reconciliation of revenues excluding the estimated impact of the additional six days in 2022 | ||||||||||||||||||||||||||||||||
Years Ended | % Change | |||||||||||||||||||||||||||||||
December 31, 2022 As Reported | Additional Six Days | December 31, 2022 Adjusted | December 26, 2021 | 2022 vs. 2021 | ||||||||||||||||||||||||||||
Digital subscription revenue | $ | 978,574 | $ | (16,981) | $ | 961,593 | $ | 773,882 | 24.3 | % | ||||||||||||||||||||||
Print subscription revenue | 573,788 | (5,120) | 568,668 | 588,233 | (3.3) | % | ||||||||||||||||||||||||||
Total subscription revenue | 1,552,362 | (22,101) | 1,530,261 | 1,362,115 | 12.3 | % | ||||||||||||||||||||||||||
Digital advertising revenue | 318,440 | (5,398) | 313,042 | 308,616 | 1.4 | % | ||||||||||||||||||||||||||
Print advertising revenue | 204,848 | (1,267) | 203,581 | 188,920 | 7.8 | % | ||||||||||||||||||||||||||
Total advertising revenues | 523,288 | (6,665) | 516,623 | 497,536 | 3.8 | % | ||||||||||||||||||||||||||
Other revenue | 232,671 | (1,743) | 230,928 | 215,226 | 7.3 | % | ||||||||||||||||||||||||||
Total revenues | $ | 2,308,321 | $ | (30,509) | $ | 2,277,812 | $ | 2,074,877 | 9.8 | % |
Years Ended | % Change | |||||||||||||||||||
(In thousands, except ratios) | December 31, 2022 | December 26, 2021 | 2022 vs. 2021 | |||||||||||||||||
Cash and cash equivalents | $ | 221,385 | $ | 319,973 | (30.8) | |||||||||||||||
Marketable securities | 264,889 | 754,455 | (64.9) | |||||||||||||||||
Total cash and cash equivalents and marketable securities (1) | 486,274 | 1,074,428 | (54.7) | |||||||||||||||||
Total New York Times Company stockholders’ equity | 1,597,967 | 1,538,720 | 3.9 | |||||||||||||||||
Ratios: | ||||||||||||||||||||
Current assets to current liabilities | 1.15 | 1.70 |
Years Ended | % Change | |||||||||||||||||||
(In thousands) | December 31, 2022 | December 26, 2021 | 2022 vs. 2021 | |||||||||||||||||
Operating activities | $ | 150,687 | $ | 269,098 | (44.0) | |||||||||||||||
Investing activities | $ | (73,561) | $ | (180,807) | (59.3) | |||||||||||||||
Financing activities | $ | (174,306) | $ | (54,947) | 217.2 |
Years Ended | ||||||||||||||
(In thousands) | December 31, 2022 | December 26, 2021 | ||||||||||||
Net cash provided by operating activities | $ | 150,687 | $ | 269,098 | ||||||||||
Less: Capital expenditures | (36,961) | (34,637) | ||||||||||||
Free cash flow | $ | 113,726 | $ | 234,461 |
Payment due in | ||||||||||||||||||||||||||||||||
(In thousands) | Total | 2023 | 2024-2025 | 2026-2027 | Later Years | |||||||||||||||||||||||||||
Operating leases(1) | $ | 83,083 | $ | 12,424 | $ | 21,028 | $ | 16,306 | $ | 33,325 | ||||||||||||||||||||||
Benefit plans(2) | 314,766 | 41,559 | 81,942 | 79,375 | 111,890 | |||||||||||||||||||||||||||
Total | $ | 397,849 | $ | 53,983 | $ | 102,970 | $ | 95,681 | $ | 145,215 |
(In thousands) | December 31, 2022 | December 26, 2021 | ||||||||||||
Goodwill | $ | 414,046 | $ | 166,360 | ||||||||||
Intangibles | $ | 317,314 | $ | 14,246 | ||||||||||
Total assets | $ | 2,533,752 | $ | 2,564,108 | ||||||||||
Percentage of goodwill and intangibles to total assets | 29 | % | 7 | % |
(In thousands) | December 31, 2022 | December 26, 2021 | ||||||||||||
Pension and other postretirement liabilities (includes current portion) | $ | 284,460 | $ | 363,445 | ||||||||||
Total liabilities | $ | 933,780 | $ | 1,023,383 | ||||||||||
Percentage of pension and other postretirement liabilities to total liabilities | 30.5 | % | 35.5 | % |
December 31, 2022 | ||||||||||||||||||||
(In thousands) | Qualified Plans | Non-Qualified Plans | All Plans | |||||||||||||||||
Pension obligation | $ | 1,076,412 | $ | 179,608 | $ | 1,256,020 | ||||||||||||||
Fair value of plan assets | 1,145,933 | — | 1,145,933 | |||||||||||||||||
Pension asset/(obligation), net | $ | 69,521 | $ | (179,608) | $ | (110,087) |
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
INDEX | PAGE | ||||
Consolidated Balance Sheets as of December 31, 2022, and December 26, 2021 | |||||
Consolidated Statements of Operations for the years ended December 31, 2022, December 26, 2021, and December 27, 2020 | |||||
Consolidated Statements of Comprehensive Income/(Loss) for the years ended December 31, 2022, December 26, 2021, and December 27, 2020 | |||||
Consolidated Statements of Changes in Stockholders’ Equity for the years ended December 31, 2022, December 26, 2021, and December 27, 2020 | |||||
Consolidated Statements of Cash Flows for the years ended December 31, 2022, December 26, 2021, and December 27, 2020 | |||||
5. Business Combination | |||||
Valuation of the pension benefit obligation | ||||||||
Description of the matter | At December 31, 2022, the aggregate defined benefit pension obligation was $1,256 million which exceeded the fair value of pension plan assets of $1,146 million, resulting in an unfunded defined benefit pension obligation of $110 million. As discussed in Note 2, the Company makes significant subjective judgments about a number of actuarial assumptions, which include discount rates and 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 rates and long-term 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 rates and long-term return on plan assets, 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 and the significant actuarial assumptions discussed above. 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, and other. In addition, we involved actuarial specialists to assist in evaluating the key assumptions. To evaluate the discount rates, 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 long-term 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. | |||||||
Valuation of trademark and existing subscriber base intangible assets acquired in a business combination | ||||||||
Description of the matter | On February 1, 2022, the Company completed the acquisition of The Athletic Media Company for cash consideration of approximately $550 million, and recognized identifiable intangible assets of $332 million, as disclosed in Note 5 to the consolidated financial statements. The Company accounted for the acquisition using the acquisition method of accounting and the purchase price was allocated to the assets acquired and liabilities assumed using the fair values determined by management as of the acquisition date. Auditing the Company’s valuation of the trademark and existing subscriber base acquired intangible assets, which were valued and recorded at $160 million and $135 million, respectively, required complex auditor judgment due to the significant estimation uncertainty in determining the fair value of the acquired intangible assets. In particular, the fair value estimates for the trademark and existing subscriber base were sensitive to changes in significant underlying assumptions, including revenue growth rates, discount rate, and royalty rate for the trademark and subscriber retention rate and discount rate for the existing subscriber base. These significant assumptions are forward-looking and could be affected by future economic and market conditions. | |||||||
How we addressed the matter in our audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of the controls over the Company’s accounting for the acquisition. For example, we tested controls over management's review of the valuation of the trademark and existing subscriber base intangible assets, including management’s review of the significant assumptions used in the valuation models. To test the estimated fair value of the trademark and existing subscriber base, our audit procedures included, among others, evaluating the valuation methodologies used and testing the significant assumptions described above. We compared the revenue growth rates and subscriber retention rate to current industry and market trends. We also performed sensitivity analyses on these significant assumptions to evaluate the change in fair value resulting from changes in the assumptions. In addition, we involved internal valuation specialists to assist in evaluating the valuation methodologies and the discount rates and royalty rate used in the fair value estimates. To evaluate the discount rates, we independently developed a range of estimates and compared our estimates to those used by management. To evaluate the royalty rate, we compared the rate determined by management against publicly available market data for comparable license agreements. |
(In thousands) | December 31, 2022 | December 26, 2021 | ||||||||||||
Assets | ||||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | $ | 221,385 | $ | 319,973 | ||||||||||
Short-term marketable securities | 125,972 | 341,075 | ||||||||||||
Accounts receivable (net of allowances of $12,260 in 2022 and $12,374 in 2021) | 217,533 | 232,908 | ||||||||||||
Prepaid expenses | 54,859 | 33,199 | ||||||||||||
Other current assets | 35,926 | 25,553 | ||||||||||||
Total current assets | 655,675 | 952,708 | ||||||||||||
Long-term marketable securities | 138,917 | 413,380 | ||||||||||||
Property, plant and equipment: | ||||||||||||||
Equipment | 441,940 | 426,912 | ||||||||||||
Buildings, building equipment and improvements | 730,119 | 723,850 | ||||||||||||
Software | 74,196 | 72,600 | ||||||||||||
Land | 106,275 | 106,128 | ||||||||||||
Assets in progress | 24,192 | 23,099 | ||||||||||||
Total, at cost | 1,376,722 | 1,352,589 | ||||||||||||
Less: accumulated depreciation and amortization | (823,024) | (777,637) | ||||||||||||
Property, plant and equipment, net | 553,698 | 574,952 | ||||||||||||
Goodwill | 414,046 | 166,360 | ||||||||||||
Intangible assets, net | 317,314 | 14,246 | ||||||||||||
Deferred income taxes | 96,363 | 95,800 | ||||||||||||
Right of use assets | 57,600 | 62,567 | ||||||||||||
Pension assets | 69,521 | 87,601 | ||||||||||||
Miscellaneous assets | 230,618 | 196,494 | ||||||||||||
Total assets | $ | 2,533,752 | $ | 2,564,108 |
(In thousands, except share and per share data) | December 31, 2022 | December 26, 2021 | ||||||||||||
Liabilities and stockholders’ equity | ||||||||||||||
Current liabilities | ||||||||||||||
Accounts payable | $ | 114,646 | $ | 127,073 | ||||||||||
Accrued payroll and other related liabilities | 164,564 | 166,464 | ||||||||||||
Unexpired subscriptions revenue | 155,945 | 119,296 | ||||||||||||
Accrued expenses and other | 136,055 | 146,319 | ||||||||||||
Total current liabilities | 571,210 | 559,152 | ||||||||||||
Other liabilities | ||||||||||||||
Pension benefits obligation | 225,300 | 295,104 | ||||||||||||
Postretirement benefits obligation | 26,455 | 36,086 | ||||||||||||
Other | 110,815 | 133,041 | ||||||||||||
Total other liabilities | 362,570 | 464,231 | ||||||||||||
Stockholders’ equity | ||||||||||||||
Common stock of $.10 par value: | ||||||||||||||
Class A – authorized: 300,000,000 shares; issued: 2022 – 176,288,596; 2021 – 175,971,801 (including treasury shares: 2022 – 12,004,865; 2021 – 8,870,801) | 17,629 | 17,597 | ||||||||||||
Class B – convertible – authorized and issued shares: 2022 – 780,724; 2021 – 781,724 (including treasury shares: 2022 – none; 2021 – none) | 78 | 78 | ||||||||||||
Additional paid-in capital | 255,515 | 230,115 | ||||||||||||
Retained earnings | 1,958,859 | 1,845,343 | ||||||||||||
Common stock held in treasury, at cost | (276,267) | (171,211) | ||||||||||||
Accumulated other comprehensive loss, net of income taxes: | ||||||||||||||
Foreign currency translation adjustments | (510) | 3,754 | ||||||||||||
Funded status of benefit plans | (348,947) | (385,680) | ||||||||||||
Unrealized (loss) on available-for-sale securities | (8,390) | (1,276) | ||||||||||||
Total accumulated other comprehensive loss, net of income taxes | (357,847) | (383,202) | ||||||||||||
Total New York Times Company stockholders’ equity | 1,597,967 | 1,538,720 | ||||||||||||
Noncontrolling interest | 2,005 | 2,005 | ||||||||||||
Total stockholders’ equity | 1,599,972 | 1,540,725 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 2,533,752 | $ | 2,564,108 |
Years Ended | ||||||||||||||||||||
(In thousands) | December 31, 2022 | December 26, 2021 | December 27, 2020 | |||||||||||||||||
(52 weeks and six days) | (52 weeks) | (52 weeks) | ||||||||||||||||||
Revenues | ||||||||||||||||||||
Subscription | $ | 1,552,362 | $ | 1,362,115 | $ | 1,195,368 | ||||||||||||||
Advertising | 523,288 | 497,536 | 392,420 | |||||||||||||||||
Other | 232,671 | 215,226 | 195,851 | |||||||||||||||||
Total revenues | 2,308,321 | 2,074,877 | 1,783,639 | |||||||||||||||||
Operating costs | ||||||||||||||||||||
Cost of revenue (excluding depreciation and amortization) | 1,208,933 | 1,039,568 | 959,312 | |||||||||||||||||
Sales and marketing | 267,553 | 294,947 | 228,993 | |||||||||||||||||
Product development | 204,185 | 160,871 | 133,384 | |||||||||||||||||
General and administrative | 289,259 | 250,124 | 223,558 | |||||||||||||||||
Depreciation and amortization | 82,654 | 57,502 | 62,136 | |||||||||||||||||
Total operating costs | 2,052,584 | 1,803,012 | 1,607,383 | |||||||||||||||||
Acquisition-related costs | 34,712 | — | — | |||||||||||||||||
Multiemployer pension plan liability adjustment | 14,989 | — | — | |||||||||||||||||
Impairment charge | 4,069 | — | — | |||||||||||||||||
Lease termination charge | — | 3,831 | — | |||||||||||||||||
Operating profit | 201,967 | 268,034 | 176,256 | |||||||||||||||||
Other components of net periodic benefit costs | 6,659 | 10,478 | 89,154 | |||||||||||||||||
Gain from joint ventures | — | — | 5,000 | |||||||||||||||||
Interest income and other, net | 40,691 | 32,945 | 23,330 | |||||||||||||||||
Income from continuing operations before income taxes | 235,999 | 290,501 | 115,432 | |||||||||||||||||
Income tax expense | 62,094 | 70,530 | 14,595 | |||||||||||||||||
Net income | 173,905 | 219,971 | 100,837 | |||||||||||||||||
Net income attributable to the noncontrolling interest | — | — | (734) | |||||||||||||||||
Net income attributable to The New York Times Company common stockholders | $ | 173,905 | $ | 219,971 | $ | 100,103 | ||||||||||||||
Amounts attributable to The New York Times Company common stockholders: | ||||||||||||||||||||
Income from continuing operations | $ | 173,905 | $ | 219,971 | $ | 100,103 | ||||||||||||||
Net income | $ | 173,905 | $ | 219,971 | $ | 100,103 |
Years Ended | ||||||||||||||||||||
(In thousands, except per share data) | December 31, 2022 | December 26, 2021 | December 27, 2020 | |||||||||||||||||
(52 weeks and six days) | (52 weeks) | (52 weeks) | ||||||||||||||||||
Average number of common shares outstanding: | ||||||||||||||||||||
Basic | 166,871 | 167,929 | 166,973 | |||||||||||||||||
Diluted | 167,141 | 168,533 | 168,038 | |||||||||||||||||
Basic earnings per share attributable to The New York Times Company common stockholders: | ||||||||||||||||||||
Income from continuing operations | $ | 1.04 | $ | 1.31 | $ | 0.60 | ||||||||||||||
Net income | $ | 1.04 | $ | 1.31 | $ | 0.60 | ||||||||||||||
Diluted earnings per share attributable to The New York Times Company common stockholders: | ||||||||||||||||||||
Income from continuing operations | $ | 1.04 | $ | 1.31 | $ | 0.60 | ||||||||||||||
Net income | $ | 1.04 | $ | 1.31 | $ | 0.60 | ||||||||||||||
Dividends declared per share | $ | 0.36 | $ | 0.28 | $ | 0.24 |
Years Ended | ||||||||||||||||||||
(In thousands) | December 31, 2022 | December 26, 2021 | December 27, 2020 | |||||||||||||||||
(52 weeks and six days) | (52 weeks) | (52 weeks) | ||||||||||||||||||
Net income | $ | 173,905 | $ | 219,971 | $ | 100,837 | ||||||||||||||
Other comprehensive income/(loss), before tax: | ||||||||||||||||||||
Foreign currency translation adjustments (loss)/income | (5,759) | (6,328) | 6,763 | |||||||||||||||||
Pension and postretirement benefits obligation | 49,966 | 49,250 | 105,660 | |||||||||||||||||
Net unrealized (loss)/gain on available-for-sale securities | (9,675) | (6,025) | 3,497 | |||||||||||||||||
Other comprehensive income, before tax | 34,532 | 36,897 | 115,920 | |||||||||||||||||
Income tax expense | 9,177 | 9,918 | 31,125 | |||||||||||||||||
Other comprehensive income, net of tax | 25,355 | 26,979 | 84,795 | |||||||||||||||||
Comprehensive income | 199,260 | 246,950 | 185,632 | |||||||||||||||||
Comprehensive income attributable to the noncontrolling interest | — | — | (734) | |||||||||||||||||
Comprehensive income attributable to The New York Times Company common stockholders | $ | 199,260 | $ | 246,950 | $ | 184,898 |
(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 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 | ||||||||||||||||||
Net income | — | — | 219,971 | — | — | 219,971 | — | 219,971 | ||||||||||||||||||
Dividends | — | — | (47,214) | — | — | (47,214) | — | (47,214) | ||||||||||||||||||
Other comprehensive income | — | — | — | — | 26,979 | 26,979 | — | 26,979 | ||||||||||||||||||
Issuance of shares: | ||||||||||||||||||||||||||
Stock options – 324,460 Class A shares | 33 | 2,421 | — | — | — | 2,454 | — | 2,454 | ||||||||||||||||||
Restricted stock units vested – 196,416 Class A shares | 19 | (5,288) | — | — | — | (5,269) | — | (5,269) | ||||||||||||||||||
Performance-based awards – 142,253 Class A shares | 14 | (5,947) | — | — | — | (5,933) | — | (5,933) | ||||||||||||||||||
Stock-based compensation | — | 22,215 | — | — | — | 22,215 | — | 22,215 | ||||||||||||||||||
Distributions | — | — | — | — | — | — | (589) | (589) | ||||||||||||||||||
Balance, December 26, 2021 | 17,675 | 230,115 | 1,845,343 | (171,211) | (383,202) | 1,538,720 | 2,005 | 1,540,725 | ||||||||||||||||||
Net income | — | — | 173,905 | — | — | 173,905 | — | 173,905 | ||||||||||||||||||
Dividends | — | — | (60,389) | — | — | (60,389) | — | (60,389) | ||||||||||||||||||
Other comprehensive income | — | — | — | — | 25,355 | 25,355 | — | 25,355 | ||||||||||||||||||
Issuance of shares: | ||||||||||||||||||||||||||
Stock options – 400 Class A shares | — | 3 | — | — | — | 3 | — | 3 | ||||||||||||||||||
Restricted stock units vested – 151,877 Class A shares | 16 | (4,336) | — | — | — | (4,320) | — | (4,320) | ||||||||||||||||||
Performance-based awards – 163,518 Class A shares | 16 | (5,573) | — | — | — | (5,557) | — | (5,557) | ||||||||||||||||||
Share repurchases - 3,134,064 Class A shares | — | — | — | (105,056) | — | (105,056) | — | (105,056) | ||||||||||||||||||
Stock-based compensation | — | 35,306 | — | — | — | 35,306 | — | 35,306 | ||||||||||||||||||
Balance, December 31, 2022 | $ | 17,707 | $ | 255,515 | $ | 1,958,859 | $ | (276,267) | $ | (357,847) | $ | 1,597,967 | $ | 2,005 | $ | 1,599,972 |
Years Ended | ||||||||||||||||||||
(In thousands) | December 31, 2022 | December 26, 2021 | December 27, 2020 | |||||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net income | $ | 173,905 | $ | 219,971 | $ | 100,837 | ||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Impairment on indefinite-lived asset | 4,069 | — | — | |||||||||||||||||
Pension settlement expense | — | — | 80,641 | |||||||||||||||||
Depreciation and amortization | 82,654 | 57,502 | 62,136 | |||||||||||||||||
Lease termination charge | — | 3,831 | — | |||||||||||||||||
Amortization of right of use asset | 9,923 | 9,488 | 8,568 | |||||||||||||||||
Stock-based compensation expense | 35,306 | 22,215 | 14,437 | |||||||||||||||||
Multiemployer pension plan liability adjustment | 14,989 | — | — | |||||||||||||||||
Gain on the sale of land | (34,227) | — | — | |||||||||||||||||
Gain from joint ventures | — | — | (5,000) | |||||||||||||||||
Gain on non-marketable equity investment | — | (27,156) | (10,074) | |||||||||||||||||
Change in long-term retirement benefit obligations | (29,049) | (19,222) | (17,166) | |||||||||||||||||
Fair market value adjustment on life insurance products | 1,081 | 118 | (578) | |||||||||||||||||
Other – net | (3,005) | 3,210 | 62 | |||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||
Accounts receivable – net | 20,889 | (49,216) | 29,710 | |||||||||||||||||
Other current assets | (23,220) | (5,289) | 8,960 | |||||||||||||||||
Accounts payable, accrued payroll and other liabilities | (111,216) | 39,696 | 8,473 | |||||||||||||||||
Unexpired subscriptions | 8,588 | 13,950 | 16,927 | |||||||||||||||||
Net cash provided by operating activities | 150,687 | 269,098 | 297,933 | |||||||||||||||||
Cash flows from investing activities | ||||||||||||||||||||
Purchases of marketable securities | (6,648) | (763,425) | (632,364) | |||||||||||||||||
Maturities/disposals of marketable securities | 484,984 | 593,465 | 491,128 | |||||||||||||||||
Business acquisitions | (515,586) | — | (33,085) | |||||||||||||||||
(Purchases)/proceeds from investments | (1,832) | 20,074 | 6,841 | |||||||||||||||||
Capital expenditures | (36,961) | (34,637) | (34,451) | |||||||||||||||||
Other - net | 2,482 | 3,716 | 2,851 | |||||||||||||||||
Net cash used in investing activities | (73,561) | (180,807) | (199,080) | |||||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Long-term obligations: | ||||||||||||||||||||
Dividends paid | (56,790) | (45,337) | (38,437) | |||||||||||||||||
Payment of contingent consideration | (2,586) | (862) | (862) | |||||||||||||||||
Capital shares: | ||||||||||||||||||||
Stock issuances | 3 | 2,454 | 6,071 | |||||||||||||||||
Repurchases | (105,056) | — | — | |||||||||||||||||
Share-based compensation tax withholding | (9,877) | (11,202) | (11,745) | |||||||||||||||||
Net cash used in financing activities | (174,306) | (54,947) | (44,973) | |||||||||||||||||
Net (decrease)/increase in cash, cash equivalents and restricted cash | (97,180) | 33,344 | 53,880 | |||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,953) | (1,002) | 566 | |||||||||||||||||
Cash, cash equivalents and restricted cash at the beginning of the year | 334,306 | 301,964 | 247,518 | |||||||||||||||||
Cash, cash equivalents and restricted cash at the end of the year | $ | 235,173 | $ | 334,306 | $ | 301,964 |
Years Ended | ||||||||||||||||||||
(In thousands) | December 31, 2022 | December 26, 2021 | December 27, 2020 | |||||||||||||||||
Cash payments | ||||||||||||||||||||
Interest, net of capitalized interest | $ | 1,583 | $ | 546 | $ | 508 | ||||||||||||||
Income tax payments – net | $ | 110,161 | $ | 66,443 | $ | 24,382 |
Accounting Standard Update(s) | Topic | Effective Period | Summary | ||||||||
2021-08 | Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers | Fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is permitted. | Requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 2014-09, Revenue from Contracts with Customers (Topic 606). The update will generally result in an entity recognizing contract assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date rather than at fair value. The Company adopted this guidance on December 27, 2021. As a result of The Athletic Media Company acquisition, the Company assumed unexpired subscriptions revenue of $28.1 million. |
Years Ended | ||||||||||||||||||||||||||||||||||||||
(In thousands) | December 31, 2022 | As % of total | December 26, 2021 | As % of total | December 27, 2020 | As % of total | ||||||||||||||||||||||||||||||||
Subscription | $ | 1,552,362 | 67.3 | % | $ | 1,362,115 | 65.6 | % | $ | 1,195,368 | 67.0 | % | ||||||||||||||||||||||||||
Advertising | 523,288 | 22.7 | % | 497,536 | 24.0 | % | 392,420 | 22.0 | % | |||||||||||||||||||||||||||||
Other (1) | 232,671 | 10.0 | % | 215,226 | 10.4 | % | 195,851 | 11.0 | % | |||||||||||||||||||||||||||||
Total | $ | 2,308,321 | 100.0 | % | $ | 2,074,877 | 100.0 | % | $ | 1,783,639 | 100.0 | % |
Years Ended | ||||||||||||||||||||||||||||||||||||||
(In thousands) | December 31, 2022 | As % of total | December 26, 2021 | As % of total | December 27, 2020 | As % of total | ||||||||||||||||||||||||||||||||
Digital-only subscription revenues(1) | $ | 978,574 | 63.0 | % | $ | 773,882 | 56.8 | % | $ | 598,280 | 50.0 | % | ||||||||||||||||||||||||||
Print subscription revenues | ||||||||||||||||||||||||||||||||||||||
Domestic home delivery subscription revenues(2) | 517,395 | 33.3 | % | 529,039 | 38.8 | % | 528,970 | 44.3 | % | |||||||||||||||||||||||||||||
Single-copy, NYT International and other subscription revenues(3) | 56,393 | 3.7 | % | 59,194 | 4.3 | % | 68,118 | 5.7 | % | |||||||||||||||||||||||||||||
Subtotal print subscription revenues | 573,788 | 37.0 | % | 588,233 | 43.2 | % | 597,088 | 50.0 | % | |||||||||||||||||||||||||||||
Total subscription revenues | $ | 1,552,362 | 100.0 | % | $ | 1,362,115 | 100.0 | % | $ | 1,195,368 | 100.0 | % | ||||||||||||||||||||||||||
(1) Includes revenue from digital-only bundled and standalone subscriptions to our news product, as well as The Athletic and our Cooking, Games, Audm and Wirecutter products. | ||||||||||||||||||||||||||||||||||||||
(2) Domestic home delivery subscriptions include access to our digital news product, as well as The Athletic and our Cooking, Games and Wirecutter products. | ||||||||||||||||||||||||||||||||||||||
(3) NYT International is the international edition of our print newspaper. |
Years Ended | ||||||||||||||||||||||||||||||||||||||
(In thousands) | December 31, 2022 | As % of total | December 26, 2021 | As % of total | December 27, 2020 | As % of total | ||||||||||||||||||||||||||||||||
Advertising revenues | ||||||||||||||||||||||||||||||||||||||
Digital | $ | 318,440 | 60.9 | % | $ | 308,616 | 62.0 | % | $ | 228,594 | 58.3 | % | ||||||||||||||||||||||||||
204,848 | 39.1 | % | 188,920 | 38.0 | % | 163,826 | 41.7 | % | ||||||||||||||||||||||||||||||
Total advertising | $ | 523,288 | 100.0 | % | $ | 497,536 | 100.0 | % | $ | 392,420 | 100.0 | % |
December 31, 2022 | ||||||||||||||||||||||||||
(In thousands) | Amortized Cost | Gross unrealized gains | Gross unrealized losses | Fair Value | ||||||||||||||||||||||
Short-term AFS securities | ||||||||||||||||||||||||||
Corporate debt securities | $ | 52,315 | $ | — | $ | (1,286) | $ | 51,029 | ||||||||||||||||||
U.S. Treasury securities | 45,096 | — | (963) | 44,133 | ||||||||||||||||||||||
U.S. governmental agency securities | 22,806 | — | (722) | 22,084 | ||||||||||||||||||||||
Municipal securities | 8,903 | — | (177) | 8,726 | ||||||||||||||||||||||
Total short-term AFS securities | $ | 129,120 | $ | — | $ | (3,148) | $ | 125,972 | ||||||||||||||||||
Long-term AFS securities | ||||||||||||||||||||||||||
Corporate debt securities | $ | 115,207 | $ | — | $ | (6,377) | $ | 108,830 | ||||||||||||||||||
U.S. Treasury securities | 25,990 | — | (1,576) | 24,414 | ||||||||||||||||||||||
U.S. governmental agency securities | 5,999 | — | (326) | 5,673 | ||||||||||||||||||||||
Total long-term AFS securities | $ | 147,196 | $ | — | $ | (8,279) | $ | 138,917 |
December 26, 2021 | ||||||||||||||||||||||||||
(In thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||||
Short-term AFS securities | ||||||||||||||||||||||||||
Corporate debt securities | $ | 107,158 | $ | 245 | $ | (69) | $ | 107,334 | ||||||||||||||||||
U.S Treasury securities | 148,899 | 692 | (43) | 149,548 | ||||||||||||||||||||||
U.S. governmental agency securities | 3,500 | — | — | 3,500 | ||||||||||||||||||||||
Municipal securities | 3,999 | — | (2) | 3,997 | ||||||||||||||||||||||
Certificates of deposit | 55,551 | — | — | 55,551 | ||||||||||||||||||||||
Commercial paper | 21,145 | — | — | 21,145 | ||||||||||||||||||||||
Total short-term AFS securities | $ | 340,252 | $ | 937 | $ | (114) | $ | 341,075 | ||||||||||||||||||
Long-term AFS securities | ||||||||||||||||||||||||||
Corporate debt securities | $ | 242,764 | $ | 149 | $ | (1,858) | $ | 241,055 | ||||||||||||||||||
U.S. Treasury securities | 119,695 | — | (549) | 119,146 | ||||||||||||||||||||||
U.S. governmental agency securities | 39,498 | — | (252) | 39,246 | ||||||||||||||||||||||
Municipal securities | 13,994 | — | (61) | 13,933 | ||||||||||||||||||||||
Total long-term AFS securities | $ | 415,951 | $ | 149 | $ | (2,720) | $ | 413,380 |
December 31, 2022 | ||||||||||||||||||||||||||||||||||||||
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 | $ | 3,799 | $ | (11) | $ | 47,230 | $ | (1,275) | $ | 51,029 | $ | (1,286) | ||||||||||||||||||||||||||
U.S. Treasury securities | — | — | 44,133 | (963) | 44,133 | (963) | ||||||||||||||||||||||||||||||||
U.S. governmental agency securities | — | — | 22,084 | (722) | 22,084 | (722) | ||||||||||||||||||||||||||||||||
Municipal securities | — | — | 8,726 | (177) | 8,726 | (177) | ||||||||||||||||||||||||||||||||
Total short-term AFS securities | $ | 3,799 | $ | (11) | $ | 122,173 | $ | (3,137) | $ | 125,972 | $ | (3,148) | ||||||||||||||||||||||||||
Long-term AFS securities | ||||||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 2,004 | $ | (57) | $ | 106,826 | $ | (6,320) | $ | 108,830 | $ | (6,377) | ||||||||||||||||||||||||||
U.S. Treasury securities | 282 | (9) | 24,132 | (1,567) | 24,414 | (1,576) | ||||||||||||||||||||||||||||||||
U.S. governmental agency securities | — | — | 5,673 | (326) | 5,673 | (326) | ||||||||||||||||||||||||||||||||
Municipal securities | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Total long-term AFS securities | $ | 2,286 | $ | (66) | $ | 136,631 | $ | (8,213) | $ | 138,917 | $ | (8,279) |
December 26, 2021 | ||||||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||||||||||||||||
(In thousands) | Fair Value | Gross unrealized losses | Fair Value | Gross unrealized losses | Fair Value | Gross unrealized losses | ||||||||||||||||||||||||||||||||
Short-term AFS securities | ||||||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 53,148 | $ | (69) | $ | — | $ | — | $ | 53,148 | $ | (69) | ||||||||||||||||||||||||||
U.S. Treasury securities | 61,018 | (43) | — | — | 61,018 | (43) | ||||||||||||||||||||||||||||||||
Municipal securities | 1,998 | (2) | — | — | 1,998 | (2) | ||||||||||||||||||||||||||||||||
Total short-term AFS securities | $ | 116,164 | $ | (114) | $ | — | $ | — | $ | 116,164 | $ | (114) | ||||||||||||||||||||||||||
Long-term AFS securities | ||||||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 224,022 | $ | (1,858) | $ | — | $ | — | $ | 224,022 | $ | (1,858) | ||||||||||||||||||||||||||
U.S. Treasury securities | 119,146 | (549) | — | — | 119,146 | (549) | ||||||||||||||||||||||||||||||||
U.S. governmental agency securities | 39,246 | (252) | — | — | 39,246 | (252) | ||||||||||||||||||||||||||||||||
Municipal securities | 13,933 | (61) | — | — | 13,933 | (61) | ||||||||||||||||||||||||||||||||
Total long-term AFS securities | $ | 396,347 | $ | (2,720) | $ | — | $ | — | $ | 396,347 | $ | (2,720) |
(In thousands) | Purchase Price Allocation | Estimated Useful Life (in years) | ||||||||||||
Total current assets | $ | 18,495 | ||||||||||||
Property, plant and equipment | 281 | 3- 5 | ||||||||||||
Right of use asset (1) | 2,612 | |||||||||||||
Trademark (2) | 160,000 | 20 | ||||||||||||
Existing subscriber base (2) | 135,000 | 12 | ||||||||||||
Developed technology (2) | 35,000 | 5 | ||||||||||||
Content archive (2) | 2,000 | 2 | ||||||||||||
Goodwill (5) | 251,360 | Indefinite | ||||||||||||
Total current liabilities (3)(5) | (41,399) | |||||||||||||
Other liabilities — Other | (3,491) | |||||||||||||
Deferred tax liability, net (4)(5) | (36,392) | |||||||||||||
Total purchase price | $ | 523,466 |
Years Ended | ||||||||||||||
(In thousands) | December 31, 2022 | December 26, 2021 | ||||||||||||
Revenue | $ | 2,315,468 | $ | 2,142,202 | ||||||||||
Net income | 197,225 | 128,330 |
(In thousands) | The New York Times Group | The Athletic | Total Company | |||||||||||||||||
Balance as of December 27, 2020 | $ | 171,657 | $ | — | $ | 171,657 | ||||||||||||||
Foreign currency translation | (5,297) | (5,297) | ||||||||||||||||||
Balance as of December 26, 2021 | 166,360 | — | 166,360 | |||||||||||||||||
Foreign currency translation | (3,674) | — | (3,674) | |||||||||||||||||
Acquisition of The Athletic Media Company | — | 249,792 | 249,792 | |||||||||||||||||
Measurement period adjustments(1) | — | 1,568 | 1,568 | |||||||||||||||||
Balance as of December 31, 2022 | $ | 162,686 | $ | 251,360 | $ | 414,046 |
(In thousands) | Gross book value | Accumulated amortization | Net book value | Weighted-Average Useful Life (Years) | ||||||||||||||||||||||
Trademark | $ | 162,618 | $ | (8,661) | $ | 153,957 | 19.2 | |||||||||||||||||||
Existing subscriber base | 136,500 | (11,812) | 124,688 | 11.2 | ||||||||||||||||||||||
Developed technology | 38,401 | (8,043) | 30,358 | 4.2 | ||||||||||||||||||||||
Content archive | 5,751 | (2,420) | 3,331 | 2.8 | ||||||||||||||||||||||
Total | $ | 343,270 | $ | (30,936) | $ | 312,334 | 14.4 |
(In thousands) | Amount | |||||||
2023 | $ | 29,313 | ||||||
2024 | 27,488 | |||||||
2025 | 27,213 | |||||||
2026 | 26,960 | |||||||
2027 | 20,171 | |||||||
Thereafter | 181,189 | |||||||
Total amortization expense | $ | 312,334 |
(In thousands) | December 31, 2022 | December 26, 2021 | December 27, 2020 | |||||||||||||||||
Interest income and other expense, net | $ | 7,261 | $ | 6,558 | $ | 13,983 | ||||||||||||||
Gain on the sale of land(1) | 34,227 | — | — | |||||||||||||||||
Gain on non-marketable equity investment (2) | — | 27,156 | 10,074 | |||||||||||||||||
Interest expense | (800) | (780) | (757) | |||||||||||||||||
Capitalized interest | 3 | 11 | 30 | |||||||||||||||||
Total interest income and other, net | $ | 40,691 | $ | 32,945 | $ | 23,330 |
(In thousands) | December 31, 2022 | December 26, 2021 | ||||||||||||
Reconciliation of cash, cash equivalents and restricted cash | ||||||||||||||
Cash and cash equivalents | $ | 221,385 | $ | 319,973 | ||||||||||
Restricted cash included within miscellaneous assets | 13,788 | 14,333 | ||||||||||||
Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows | $ | 235,173 | $ | 334,306 |
(In thousands) | December 31, 2022 | December 26, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term AFS securities(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 51,029 | $ | — | $ | 51,029 | $ | — | 107,334 | — | 107,334 | — | ||||||||||||||||||||||||||||||||||||||
U.S Treasury securities | 44,133 | — | 44,133 | — | 149,548 | — | 149,548 | — | ||||||||||||||||||||||||||||||||||||||||||
U.S. governmental agency securities | 22,084 | — | 22,084 | — | 3,500 | — | 3,500 | — | ||||||||||||||||||||||||||||||||||||||||||
Municipal securities | 8,726 | — | 8,726 | — | 3,997 | — | 3,997 | — | ||||||||||||||||||||||||||||||||||||||||||
Certificates of deposit | — | — | — | — | 55,551 | — | 55,551 | — | ||||||||||||||||||||||||||||||||||||||||||
Commercial paper | — | — | — | — | 21,145 | — | 21,145 | — | ||||||||||||||||||||||||||||||||||||||||||
Total short-term AFS securities | $ | 125,972 | $ | — | $ | 125,972 | $ | — | $ | 341,075 | $ | — | $ | 341,075 | $ | — | ||||||||||||||||||||||||||||||||||
Long-term AFS securities(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 108,830 | $ | — | $ | 108,830 | $ | — | $ | 241,055 | $ | — | $ | 241,055 | $ | — | ||||||||||||||||||||||||||||||||||
U.S. Treasury securities | 24,414 | — | 24,414 | — | 119,146 | — | 119,146 | — | ||||||||||||||||||||||||||||||||||||||||||
U.S. governmental agency securities | 5,673 | — | 5,673 | — | 39,246 | — | 39,246 | — | ||||||||||||||||||||||||||||||||||||||||||
Municipal securities | — | — | — | — | 13,933 | — | 13,933 | — | ||||||||||||||||||||||||||||||||||||||||||
Total long-term AFS securities | $ | 138,917 | $ | — | $ | 138,917 | $ | — | $ | 413,380 | $ | — | $ | 413,380 | $ | — | ||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred compensation(2)(3) | $ | 14,635 | $ | 14,635 | $ | — | $ | — | $ | 21,101 | $ | 21,101 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||
Contingent consideration | $ | 5,324 | $ | — | $ | — | $ | 5,324 | $ | 7,450 | $ | — | $ | — | $ | 7,450 |
(In thousands) | December 31, 2022 | December 26, 2021 | ||||||||||||
Balance at the beginning of the period | $ | 7,450 | $ | 8,431 | ||||||||||
Payments | (2,586) | (862) | ||||||||||||
Fair value adjustments (1) | 460 | (119) | ||||||||||||
Contingent consideration at the end of the period | $ | 5,324 | $ | 7,450 |
December 31, 2022 | December 26, 2021 | December 27, 2020 | ||||||||||||||||||||||||||||||||||||
(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 | $ | 11,526 | $ | 105 | $ | 11,631 | $ | 9,105 | $ | 95 | $ | 9,200 | $ | 10,429 | $ | 119 | $ | 10,548 | ||||||||||||||||||||
Interest cost | 35,350 | 5,142 | 40,492 | 30,517 | 4,352 | 34,869 | 43,710 | 6,601 | 50,311 | |||||||||||||||||||||||||||||
Expected return on plan assets | (55,229) | — | (55,229) | (50,711) | — | (50,711) | (67,146) | — | (67,146) | |||||||||||||||||||||||||||||
Amortization and other costs | 13,065 | 6,572 | 19,637 | 20,225 | 7,275 | 27,500 | 21,887 | 6,072 | 27,959 | |||||||||||||||||||||||||||||
Amortization of prior service (credit)/cost | (1,945) | 48 | (1,897) | (1,945) | 55 | (1,890) | (1,945) | 51 | (1,894) | |||||||||||||||||||||||||||||
Effect of settlement/curtailment | — | — | — | — | (163) | (163) | 80,641 | (562) | 80,079 | |||||||||||||||||||||||||||||
Net periodic pension cost | $ | 2,767 | $ | 11,867 | $ | 14,634 | $ | 7,191 | $ | 11,614 | $ | 18,805 | $ | 87,576 | $ | 12,281 | $ | 99,857 |
(In thousands) | December 31, 2022 | December 26, 2021 | December 27, 2020 | |||||||||||||||||
Net actuarial gain | $ | (22,500) | $ | (25,585) | $ | (4,172) | ||||||||||||||
Prior service cost | — | — | — | |||||||||||||||||
Amortization of loss | (19,637) | (27,500) | (27,959) | |||||||||||||||||
Amortization of prior service credit | 1,897 | 1,890 | 1,894 | |||||||||||||||||
Effect of settlement | — | — | (80,641) | |||||||||||||||||
Total recognized in other comprehensive income | (40,240) | (51,195) | (110,878) | |||||||||||||||||
Net periodic pension cost | 14,634 | 18,805 | 99,857 | |||||||||||||||||
Total recognized in net periodic pension benefit cost and other comprehensive income | $ | (25,606) | $ | (32,390) | $ | (11,021) |
December 31, 2022 | December 26, 2021 | |||||||||||||||||||||||||||||||||||||
(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 | $ | 1,475,764 | $ | 239,190 | $ | 1,714,954 | $ | 1,549,012 | $ | 259,593 | $ | 1,808,605 | ||||||||||||||||||||||||||
Service cost | 11,526 | 105 | 11,631 | 9,105 | 95 | 9,200 | ||||||||||||||||||||||||||||||||
Interest cost | 35,350 | 5,142 | 40,492 | 30,517 | 4,352 | 34,869 | ||||||||||||||||||||||||||||||||
Actuarial (gain)/loss | (374,109) | (46,835) | (420,944) | (42,883) | (7,762) | (50,645) | ||||||||||||||||||||||||||||||||
Curtailments | — | — | — | — | (163) | (163) | ||||||||||||||||||||||||||||||||
Benefits paid | (72,119) | (17,917) | (90,036) | (69,987) | (16,818) | (86,805) | ||||||||||||||||||||||||||||||||
Effects of change in currency conversion | — | (77) | (77) | — | (107) | (107) | ||||||||||||||||||||||||||||||||
Benefit obligation at end of year | 1,076,412 | 179,608 | 1,256,020 | 1,475,764 | 239,190 | 1,714,954 | ||||||||||||||||||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | 1,550,078 | — | 1,550,078 | 1,585,221 | — | 1,585,221 | ||||||||||||||||||||||||||||||||
Actual return on plan assets | (343,215) | — | (343,215) | 25,651 | — | 25,651 | ||||||||||||||||||||||||||||||||
Employer contributions | 11,189 | 17,917 | 29,106 | 9,193 | 16,818 | 26,011 | ||||||||||||||||||||||||||||||||
Benefits paid | (72,119) | (17,917) | (90,036) | (69,987) | (16,818) | (86,805) | ||||||||||||||||||||||||||||||||
Fair value of plan assets at end of year | 1,145,933 | — | 1,145,933 | 1,550,078 | — | 1,550,078 | ||||||||||||||||||||||||||||||||
Net amount recognized | $ | 69,521 | $ | (179,608) | $ | (110,087) | $ | 74,314 | $ | (239,190) | $ | (164,876) | ||||||||||||||||||||||||||
Amount recognized in the Consolidated Balance Sheets | ||||||||||||||||||||||||||||||||||||||
Pension assets | $ | 69,521 | $ | — | $ | 69,521 | $ | 87,601 | $ | — | $ | 87,601 | ||||||||||||||||||||||||||
Current liabilities | — | (16,361) | (16,361) | — | (16,669) | (16,669) | ||||||||||||||||||||||||||||||||
Noncurrent liabilities | — | (163,247) | (163,247) | (13,287) | (222,521) | (235,808) | ||||||||||||||||||||||||||||||||
Net amount recognized | $ | 69,521 | $ | (179,608) | $ | (110,087) | $ | 74,314 | $ | (239,190) | $ | (164,876) | ||||||||||||||||||||||||||
Amount recognized in accumulated other comprehensive loss | ||||||||||||||||||||||||||||||||||||||
Actuarial loss | $ | 438,145 | $ | 69,252 | $ | 507,397 | $ | 426,874 | $ | 122,660 | $ | 549,534 | ||||||||||||||||||||||||||
Prior service credit | (11,007) | 539 | (10,468) | (12,952) | 587 | (12,365) | ||||||||||||||||||||||||||||||||
Total | $ | 427,138 | $ | 69,791 | $ | 496,929 | $ | 413,922 | $ | 123,247 | $ | 537,169 |
(In thousands) | December 31, 2022 | December 26, 2021 | ||||||||||||
Projected benefit obligation | $ | 179,608 | $ | 348,831 | ||||||||||
Accumulated benefit obligation | $ | 179,370 | $ | 338,346 | ||||||||||
Fair value of plan assets | $ | — | $ | 96,354 |
December 31, 2022 | December 26, 2021 | |||||||||||||
Discount rate | 5.66 | % | 2.94 | % | ||||||||||
Rate of increase in compensation levels | 3.00 | % | 3.00 | % |
December 31, 2022 | December 26, 2021 | December 27, 2020 | ||||||||||||||||||
Discount rate for determining projected benefit obligation | 2.94 | % | 2.64 | % | 3.30 | % | ||||||||||||||
Discount rate in effect for determining service cost | 3.14 | % | 3.87 | % | 3.67 | % | ||||||||||||||
Discount rate in effect for determining interest cost | 2.45 | % | 2.02 | % | 2.70 | % | ||||||||||||||
Rate of increase in compensation levels | 3.00 | % | 3.00 | % | 3.00 | % | ||||||||||||||
Expected long-term rate of return on assets | 3.75 | % | 3.74 | % | 4.59 | % |
December 31, 2022 | December 26, 2021 | |||||||||||||
Discount rate | 5.64 | % | 2.81 | % | ||||||||||
Rate of increase in compensation levels | 3.00 | % | 2.50 | % |
December 31, 2022 | December 26, 2021 | December 27, 2020 | ||||||||||||||||||
Discount rate for determining projected benefit obligation | 2.81 | % | 2.39 | % | 3.17 | % | ||||||||||||||
Discount rate in effect for determining interest cost | 2.24 | % | 1.74 | % | 2.78 | % | ||||||||||||||
Rate of increase in compensation levels | 2.50 | % | 2.50 | % | 2.50 | % |
Asset Category | Percentage Range | Actual | |||||||||||||||
Public Equity | 70% | - | 90% | 83 | % | ||||||||||||
Growth Fixed Income | 0% | - | 15% | 0 | % | ||||||||||||
Alternatives | 0% | - | 15% | 13 | % | ||||||||||||
Cash | 0% | - | 10% | 4 | % |
Asset Category | Percentage Range | Actual | |||||||||||||||
Liability-Hedging | 85.5% | - | 90.5% | 86 | % | ||||||||||||
Public Equity | 6.7% | - | 13.1% | 12 | % | ||||||||||||
Growth Fixed Income | 0% | - | 2% | 0 | % | ||||||||||||
Alternatives | 0% | - | 2% | 2 | % | ||||||||||||
Cash | 0% | - | 1% | 0 | % |
Asset Category | Percentage Range | Actual | |||||||||||||||
Hedging Assets | 75% | - | 90% | 77 | % | ||||||||||||
Return-Seeking Assets | 10% | - | 25% | 21 | % | ||||||||||||
Cash and Equivalents | 0% | - | 5% | 2 | % |
December 31, 2022 | ||||||||||||||||||||||||||||||||
(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 | $ | 10,548 | $ | — | $ | — | $ | — | $ | 10,548 | ||||||||||||||||||||||
International Equities | 23,448 | — | — | — | 23,448 | |||||||||||||||||||||||||||
Registered Investment Companies | 171,310 | — | — | — | 171,310 | |||||||||||||||||||||||||||
Common/Collective Funds(1) | — | — | — | 288,489 | 288,489 | |||||||||||||||||||||||||||
Fixed Income Securities: | ||||||||||||||||||||||||||||||||
Corporate Bonds | — | 531,033 | — | — | 531,033 | |||||||||||||||||||||||||||
U.S. Treasury and Other Government Securities | — | 46,279 | — | — | 46,279 | |||||||||||||||||||||||||||
Municipal and Provincial Bonds | — | 27,851 | — | — | 27,851 | |||||||||||||||||||||||||||
Other | — | 12,781 | — | — | 12,781 | |||||||||||||||||||||||||||
Cash and Cash Equivalents | — | — | — | 15,064 | 15,064 | |||||||||||||||||||||||||||
Private Equity | — | — | — | 4,766 | 4,766 | |||||||||||||||||||||||||||
Hedge Fund | — | — | — | 14,364 | 14,364 | |||||||||||||||||||||||||||
Assets at Fair Value | $ | 205,306 | $ | 617,944 | $ | — | $ | 322,683 | $ | 1,145,933 | ||||||||||||||||||||||
December 26, 2021 | ||||||||||||||||||||||||||||||||
(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 | $ | 12,739 | $ | — | $ | — | $ | — | $ | 12,739 | ||||||||||||||||||||||
International Equities | 29,453 | — | — | — | 29,453 | |||||||||||||||||||||||||||
Registered Investment Companies(3) | 270,662 | — | — | — | 270,662 | |||||||||||||||||||||||||||
Common/Collective Funds(1) (3) | — | — | — | 370,042 | 370,042 | |||||||||||||||||||||||||||
Fixed Income Securities: | ||||||||||||||||||||||||||||||||
Corporate Bonds | — | 710,413 | — | — | 710,413 | |||||||||||||||||||||||||||
U.S. Treasury and Other Government Securities | — | 52,520 | — | — | 52,520 | |||||||||||||||||||||||||||
Municipal and Provincial Bonds | — | 37,922 | — | — | 37,922 | |||||||||||||||||||||||||||
Other | — | 36,630 | — | — | 36,630 | |||||||||||||||||||||||||||
Cash and Cash Equivalents | — | — | — | 7,229 | 7,229 | |||||||||||||||||||||||||||
Private Equity | — | — | — | 7,014 | 7,014 | |||||||||||||||||||||||||||
Hedge Fund | — | — | — | 15,454 | 15,454 | |||||||||||||||||||||||||||
Assets at Fair Value | $ | 312,854 | $ | 837,485 | $ | — | $ | 399,739 | $ | 1,550,078 |
Plans | ||||||||||||||||||||
(In thousands) | Qualified | Non- Qualified | Total | |||||||||||||||||
2023 | $ | 73,742 | $ | 16,776 | $ | 90,518 | ||||||||||||||
2024 | 75,741 | 16,541 | 92,282 | |||||||||||||||||
2025 | 77,742 | 16,266 | 94,008 | |||||||||||||||||
2026 | 79,180 | 16,069 | 95,249 | |||||||||||||||||
2027 | 80,587 | 15,899 | 96,486 | |||||||||||||||||
2028-2032(1) | 413,683 | 73,871 | 487,554 |
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 | 2022 | 2021 | 2022 | 2021 | 2020 | ||||||||||||||||||||||||
CWA/ITU Negotiated Pension Plan | 13-6212879-001 | Critical and Declining as of 1/01/22 | Critical and Declining as of 1/01/21 | Implemented | $ | 328 | $ | 364 | $ | 384 | No | (1) | |||||||||||||||||
Newspaper and Mail Deliverers’-Publishers’ Pension Fund(2) | 13-6122251-001 | Green as of 6/01/22 | Green as of 6/01/21 | N/A | 804 | 912 | 1,010 | No | 3/30/2026 | ||||||||||||||||||||
GCIU-Employer Retirement Benefit Plan | 91-6024903-001 | Critical and Declining as of 1/01/22 | Critical and Declining as of 1/01/21 | Implemented | 56 | 48 | 65 | No | 3/30/2026 | ||||||||||||||||||||
Pressmen’s Publishers’ Pension Fund(3) | 13-6121627-001 | Green as of 4/01/22 | Green as of 4/01/21 | N/A | 1,447 | 1,337 | 1,328 | No | 3/30/2027 | ||||||||||||||||||||
Paper Handlers’-Publishers’ Pension Fund | 13-6104795-001 | Critical and Declining as of 4/01/22 | Critical and Declining as of 4/01/21 | Implemented | 96 | 103 | 101 | Yes | 3/30/2026 | ||||||||||||||||||||
Contributions for individually significant plans | $ | 2,731 | $ | 2,764 | $ | 2,888 | |||||||||||||||||||||||
Contributions for a plan not individually significant | $ | 36 | $ | 33 | $ | 24 | |||||||||||||||||||||||
Total Contributions | $ | 2,767 | $ | 2,797 | $ | 2,912 |
Pension Fund | Year Contributions to Plan Exceeded More Than 5% of Total Contributions (as of Plan’s Year-End) | ||||
CWA/ITU Negotiated Pension Plan | 12/31/2021 & 12/31/2020 | ||||
Newspaper and Mail Deliverers’-Publishers’ Pension Fund | 5/31/2021 & 5/31/2020(1) | ||||
Pressmen’s Publisher’s Pension Fund | 3/31/2022 & 3/31/2021 | ||||
Paper Handlers’-Publishers’ Pension Fund | 3/31/2022 & 3/31/2021 |
(In thousands) | December 31, 2022 | December 26, 2021 | December 27, 2020 | |||||||||||||||||
Service cost | $ | 46 | $ | 53 | $ | 29 | ||||||||||||||
Interest cost | 731 | 565 | 1,026 | |||||||||||||||||
Amortization and other costs | 3,293 | 3,407 | 3,051 | |||||||||||||||||
Amortization of prior service credit | (368) | (3,098) | (4,225) | |||||||||||||||||
Net periodic postretirement benefit cost/(income) | $ | 3,702 | $ | 927 | $ | (119) |
(In thousands) | December 31, 2022 | December 26, 2021 | December 27, 2020 | |||||||||||||||||
Net actuarial (gain)/loss | $ | (6,801) | $ | 2,254 | $ | 4,044 | ||||||||||||||
Amortization of loss | (3,293) | (3,407) | (3,051) | |||||||||||||||||
Amortization of prior service credit | 368 | 3,098 | 4,225 | |||||||||||||||||
Total recognized in other comprehensive (income)/loss | (9,726) | 1,945 | 5,218 | |||||||||||||||||
Net periodic postretirement benefit cost/(income) | 3,702 | 927 | (119) | |||||||||||||||||
Total recognized in net periodic postretirement benefit cost/(income) and other comprehensive (income)/loss | $ | (6,024) | $ | 2,872 | $ | 5,099 |
(In thousands) | December 31, 2022 | December 26, 2021 | ||||||||||||
Change in benefit obligation | ||||||||||||||
Benefit obligation at beginning of year | $ | 40,607 | $ | 43,308 | ||||||||||
Service cost | 46 | 53 | ||||||||||||
Interest cost | 731 | 565 | ||||||||||||
Plan participants’ contributions | 2,271 | 2,319 | ||||||||||||
Actuarial (gain)/loss | (6,801) | 2,254 | ||||||||||||
Benefits paid | (6,158) | (7,892) | ||||||||||||
Benefit obligation at the end of year | 30,696 | 40,607 | ||||||||||||
Change in plan assets | ||||||||||||||
Employer contributions | 3,887 | 5,573 | ||||||||||||
Plan participants’ contributions | 2,271 | 2,319 | ||||||||||||
Benefits paid | (6,158) | (7,892) | ||||||||||||
Fair value of plan assets at end of year | — | — | ||||||||||||
Net amount recognized | $ | (30,696) | $ | (40,607) | ||||||||||
Amount recognized in the Consolidated Balance Sheets | ||||||||||||||
Current liabilities | $ | (4,241) | $ | (4,521) | ||||||||||
Noncurrent liabilities | (26,455) | (36,086) | ||||||||||||
Net amount recognized | $ | (30,696) | $ | (40,607) | ||||||||||
Amount recognized in accumulated other comprehensive loss | ||||||||||||||
Actuarial loss | $ | 15,537 | $ | 25,632 | ||||||||||
Prior service credit | — | (368) | ||||||||||||
Total | $ | 15,537 | $ | 25,264 |
(In thousands) | December 31, 2022 | December 26, 2021 | ||||||||||||
Accumulated benefit obligation | $ | 30,696 | $ | 40,607 | ||||||||||
Fair value of plan assets | $ | — | $ | — |
December 31, 2022 | December 26, 2021 | |||||||||||||
Discount rate | 5.55 | % | 2.55 | % | ||||||||||
Estimated increase in compensation level | 3.50 | % | 3.50 | % |
December 31, 2022 | December 26, 2021 | December 27, 2020 | ||||||||||||||||||
Discount rate for determining projected benefit obligation | 2.55 | % | 2.01 | % | 2.94 | % | ||||||||||||||
Discount rate in effect for determining service cost | 2.58 | % | 2.09 | % | 3.04 | % | ||||||||||||||
Discount rate in effect for determining interest cost | 1.91 | % | 1.38 | % | 2.55 | % | ||||||||||||||
Estimated increase in compensation level | 3.50 | % | 3.50 | % | 3.50 | % |
December 31, 2022 | December 26, 2021 | |||||||||||||
Health-care cost trend rate | 6.75 | % | 5.99 | % | ||||||||||
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 4.92 | % | 4.92 | % | ||||||||||
Year that the rate reaches the ultimate trend rate | 2030 | 2030 |
(In thousands) | Amount | ||||
2023 | $ | 4,407 | |||
2024 | 4,086 | ||||
2025 | 3,796 | ||||
2026 | 3,516 | ||||
2027 | 3,251 | ||||
2028-2032(1) | 12,582 |
(In thousands) | December 31, 2022 | December 26, 2021 | ||||||||||||
Deferred compensation | $ | 14,635 | $ | 21,101 | ||||||||||
Noncurrent operating lease liabilities | 59,124 | 63,614 | ||||||||||||
Contingent consideration | 2,799 | 5,360 | ||||||||||||
Other liabilities | 34,257 | 42,966 | ||||||||||||
Total | $ | 110,815 | $ | 133,041 |
December 31, 2022 | December 26, 2021 | December 27, 2020 | ||||||||||||||||||||||||||||||||||||
(In thousands) | Amount | % of Pre-tax | Amount | % of Pre-tax | Amount | % of Pre-tax | ||||||||||||||||||||||||||||||||
Tax at federal statutory rate | $ | 49,560 | 21.0 | $ | 61,005 | 21.0 | $ | 24,241 | 21.0 | |||||||||||||||||||||||||||||
State and local taxes, net | 16,855 | 7.1 | 16,378 | 5.6 | 3,873 | 3.4 | ||||||||||||||||||||||||||||||||
Increase/(decrease) in uncertain tax positions | (220) | (0.1) | 2,782 | 1.0 | (2,509) | (2.2) | ||||||||||||||||||||||||||||||||
(Gain) on company-owned life insurance | 857 | 0.4 | (712) | (0.2) | (635) | (0.6) | ||||||||||||||||||||||||||||||||
Nondeductible expense | 780 | 0.3 | 593 | 0.2 | 800 | 0.7 | ||||||||||||||||||||||||||||||||
Nondeductible executive compensation | 3,985 | 1.7 | 4,140 | 1.4 | 1,271 | 1.1 | ||||||||||||||||||||||||||||||||
Stock-based awards benefit | (1,119) | (0.5) | (5,461) | (1.9) | (7,251) | (6.3) | ||||||||||||||||||||||||||||||||
Deduction for foreign-derived intangible income | (3,166) | (1.3) | (2,972) | (1.0) | (686) | (0.6) | ||||||||||||||||||||||||||||||||
Research and experimentation credit | (6,699) | (2.8) | (5,571) | (1.9) | (3,892) | (3.4) | ||||||||||||||||||||||||||||||||
Other, net | 1,261 | 0.5 | 348 | 0.1 | (617) | (0.5) | ||||||||||||||||||||||||||||||||
Income tax expense | $ | 62,094 | 26.3 | $ | 70,530 | 24.3 | $ | 14,595 | 12.6 |
(In thousands) | December 31, 2022 | December 26, 2021 | December 27, 2020 | |||||||||||||||||
Current tax expense/(benefit) | ||||||||||||||||||||
Federal | $ | 75,495 | $ | 55,110 | $ | 21,414 | ||||||||||||||
Foreign | 1,897 | 1,042 | 905 | |||||||||||||||||
State and local | 30,855 | 20,736 | 7,453 | |||||||||||||||||
Total current tax expense | 108,247 | 76,888 | 29,772 | |||||||||||||||||
Deferred tax expense/(benefit) | ||||||||||||||||||||
Federal | (36,344) | (5,651) | (9,249) | |||||||||||||||||
State and local | (9,809) | (707) | (5,928) | |||||||||||||||||
Total deferred tax expense | (46,153) | (6,358) | (15,177) | |||||||||||||||||
Income tax expense | $ | 62,094 | $ | 70,530 | $ | 14,595 |
(In thousands) | December 31, 2022 | December 26, 2021 | ||||||||||||
Deferred tax assets | ||||||||||||||
Retirement, postemployment and deferred compensation plans | $ | 67,797 | $ | 86,886 | ||||||||||
Accruals for other employee benefits, compensation, insurance and other | 31,335 | 34,999 | ||||||||||||
Net operating losses(1) | 52,522 | 1,018 | ||||||||||||
Operating lease liabilities | 18,403 | 19,663 | ||||||||||||
Capitalized research and development costs (2) | 55,370 | — | ||||||||||||
Other | 32,974 | 31,379 | ||||||||||||
Gross deferred tax assets | $ | 258,401 | $ | 173,945 | ||||||||||
Valuation allowance | (4,258) | (261) | ||||||||||||
Net deferred tax assets | $ | 254,143 | $ | 173,684 | ||||||||||
Deferred tax liabilities | ||||||||||||||
Property, plant and equipment | $ | 44,698 | $ | 38,855 | ||||||||||
Intangible assets | 88,115 | 7,738 | ||||||||||||
Operating lease right-of-use assets | 15,453 | 16,960 | ||||||||||||
Other | 9,514 | 14,331 | ||||||||||||
Gross deferred tax liabilities | $ | 157,780 | $ | 77,884 | ||||||||||
Net deferred tax asset | $ | 96,363 | $ | 95,800 |
(In thousands) | December 31, 2022 | December 26, 2021 | December 27, 2020 | |||||||||||||||||
Balance at beginning of year | $ | 5,891 | $ | 6,737 | $ | 10,309 | ||||||||||||||
Gross additions to tax positions taken during the current year | 1,504 | 1,389 | 1,130 | |||||||||||||||||
Gross additions to tax positions taken during the prior year | 73 | 2,458 | 133 | |||||||||||||||||
Gross reductions to tax positions taken during the prior year | — | (150) | (93) | |||||||||||||||||
Reductions from settlements with taxing authorities | (1,116) | (3,534) | (3,814) | |||||||||||||||||
Reductions from lapse of applicable statutes of limitations | (824) | (1,009) | (928) | |||||||||||||||||
Balance at end of year | $ | 5,528 | $ | 5,891 | $ | 6,737 |
(In thousands) | December 31, 2022 | December 26, 2021 | December 27, 2020 | |||||||||||||||||
Cost of revenue | $ | 8,031 | $ | 5,218 | $ | 4,117 | ||||||||||||||
Marketing | 1,243 | 1,283 | 1,520 | |||||||||||||||||
Product development | 10,875 | 3,655 | 1,765 | |||||||||||||||||
General and administrative | 15,157 | 12,059 | 7,063 | |||||||||||||||||
Total stock-based compensation expense | $ | 35,306 | $ | 22,215 | $ | 14,465 |
December 31, 2022 | ||||||||||||||
(Shares in thousands) | Restricted Stock Units | Weighted-Average Grant-Date Fair Value | ||||||||||||
Outstanding at beginning of period | 891 | $ | 42 | |||||||||||
Granted | 1,552 | 40 | ||||||||||||
Vested | (260) | 42 | ||||||||||||
Forfeited | (180) | 44 | ||||||||||||
Outstanding at end of period | 2,003 | $ | 40 | |||||||||||
Exercisable at end of period | 186 | $ | 26 | |||||||||||
Unvested stock-settled restricted stock units at beginning of period | 737 | $ | 46 | |||||||||||
Unvested stock-settled restricted stock units at end of period | 1,812 | $ | 41 | |||||||||||
Unvested stock-settled restricted stock units expected to vest at end of period | 1,607 | $ | 42 |
(Shares in thousands) | December 31, 2022 | December 26, 2021 | ||||||||||||
Stock options, stock–settled restricted stock units and stock-settled performance awards | ||||||||||||||
Stock options and stock-settled restricted stock units | 2,003 | 891 | ||||||||||||
Stock-settled performance awards(1) | 1,065 | 944 | ||||||||||||
Outstanding | 3,068 | 1,835 | ||||||||||||
Available | 13,171 | 14,720 | ||||||||||||
Total Outstanding | 3,068 | 1,835 | ||||||||||||
Total Available(2) | 13,171 | 14,720 |
(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 26, 2021 | $ | 3,754 | $ | (385,680) | $ | (1,276) | $ | (383,202) | ||||||||||||||||||
Other comprehensive (loss)/income before reclassifications, before tax | (5,759) | 29,301 | (9,675) | 13,867 | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss, before tax | — | 20,665 | — | 20,665 | ||||||||||||||||||||||
Income tax (benefit)/expense | (1,495) | 13,233 | (2,561) | 9,177 | ||||||||||||||||||||||
Net current-period other comprehensive (loss)/income, net of tax | (4,264) | 36,733 | (7,114) | 25,355 | ||||||||||||||||||||||
Balance as of December 31, 2022 | $ | (510) | $ | (348,947) | $ | (8,390) | $ | (357,847) |
(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) | $ | (2,265) | Other components of net periodic benefit costs | |||||||||||
Amortization of actuarial loss(1) | 22,930 | Other components of net periodic benefit costs | ||||||||||||
Total reclassification, before tax | 20,665 | |||||||||||||
Income tax expense | 5,473 | Income tax expense | ||||||||||||
Total reclassification, net of tax | $ | 15,192 |
Revenues detail by segment | ||||||||||||||||||||
Years Ended | % Change | |||||||||||||||||||
(In thousands) | December 31, 2022 | December 26, 2021 | 2022 vs. 2021 | |||||||||||||||||
(52 weeks and six days)(1) | (52 weeks) | |||||||||||||||||||
The New York Times Group | ||||||||||||||||||||
Subscription | $ | 1,479,209 | $ | 1,362,115 | 8.6 | % | ||||||||||||||
Advertising | 511,320 | 497,536 | 2.8 | % | ||||||||||||||||
Other | 232,060 | 215,226 | 7.8 | % | ||||||||||||||||
Total | $ | 2,222,589 | $ | 2,074,877 | 7.1 | % | ||||||||||||||
The Athletic | ||||||||||||||||||||
Subscription | $ | 73,153 | $ | — | * | |||||||||||||||
Advertising | 11,968 | — | * | |||||||||||||||||
Other | 611 | — | * | |||||||||||||||||
Total | $ | 85,732 | $ | — | * | |||||||||||||||
The New York Times Company | ||||||||||||||||||||
Subscription | $ | 1,552,362 | $ | 1,362,115 | 14.0 | % | ||||||||||||||
Advertising | 523,288 | 497,536 | 5.2 | % | ||||||||||||||||
Other | 232,671 | 215,226 | 8.1 | % | ||||||||||||||||
Total | $ | 2,308,321 | $ | 2,074,877 | 11.3 | % | ||||||||||||||
(1) The results of The Athletic have been included in our Consolidated Financial Statements beginning February 1, 2022. | ||||||||||||||||||||
* Represents a change equal to or in excess of 100% or not meaningful. |
Adjusted operating costs (operating costs before depreciation and amortization, severance and multiemployer pension plan withdrawal costs) detail by segment | ||||||||||||||||||||
Years Ended | % Change | |||||||||||||||||||
(In thousands) | December 31, 2022 | December 26, 2021 | 2022 vs. 2021 | |||||||||||||||||
(52 weeks and six days)(3) | (52 weeks) | |||||||||||||||||||
The New York Times Group | ||||||||||||||||||||
Cost of revenue (excluding depreciation and amortization) | $ | 1,135,518 | $ | 1,039,568 | 9.2 | % | ||||||||||||||
Sales and marketing | 243,936 | 294,947 | (17.3) | % | ||||||||||||||||
Product development | 189,027 | 160,871 | 17.5 | % | ||||||||||||||||
Adjusted general and administrative(1) | 270,303 | 244,092 | 10.7 | % | ||||||||||||||||
Total | $ | 1,838,784 | $ | 1,739,478 | 5.7 | % | ||||||||||||||
The Athletic | ||||||||||||||||||||
Cost of revenue (excluding depreciation and amortization) | $ | 73,415 | $ | — | * | |||||||||||||||
Sales and marketing | 23,617 | — | * | |||||||||||||||||
Product development | 15,158 | — | * | |||||||||||||||||
Adjusted general and administrative(2) | 9,416 | — | * | |||||||||||||||||
Total | $ | 121,606 | $ | — | * | |||||||||||||||
The New York Times Company | ||||||||||||||||||||
Cost of revenue (excluding depreciation and amortization) | $ | 1,208,933 | $ | 1,039,568 | 16.3 | % | ||||||||||||||
Sales and marketing | 267,553 | 294,947 | (9.3) | % | ||||||||||||||||
Product development | 204,185 | 160,871 | 26.9 | % | ||||||||||||||||
Adjusted general and administrative | 279,719 | 244,092 | 14.6 | % | ||||||||||||||||
Total | $ | 1,960,390 | $ | 1,739,478 | 12.7 | % | ||||||||||||||
(1) Excludes severance of $4.7 million for the 12 months of 2022 and multiemployer pension withdrawal costs of $4.9 million for the 12 months of 2022. Also excludes severance of $0.9 million for the 12 months of 2021 and multiemployer pension withdrawal costs of $5.2 million for the 12 months of 2021. | ||||||||||||||||||||
(2) Excludes $0.2 million of severance for the 12 months of 2022. | ||||||||||||||||||||
(3) The results of The Athletic have been included in our Consolidated Financial Statements beginning February 1, 2022. | ||||||||||||||||||||
* Represents a change equal to or in excess of 100% or not meaningful. |
(In thousands) | Classification in the Consolidated Balance Sheet | December 31, 2022 | December 26, 2021 | |||||||||||||||||
Operating lease right-of-use assets | Right of use assets | $ | 57,600 | $ | 62,567 | |||||||||||||||
Accrued expenses and other | $ | 9,911 | $ | 9,078 | ||||||||||||||||
Other | 59,124 | 63,614 | ||||||||||||||||||
Total operating lease liabilities | $ | 69,035 | $ | 72,692 |
For the Twelve Months Ended | ||||||||||||||||||||
(In thousands) | December 31, 2022 | December 26, 2021 | December 27, 2020 | |||||||||||||||||
Operating lease cost | $ | 13,553 | $ | 11,926 | $ | 11,467 | ||||||||||||||
Short term and variable lease cost | 1,714 | 1,575 | 1,776 | |||||||||||||||||
Total lease cost | $ | 15,267 | $ | 13,501 | $ | 13,243 |
(In thousands, except for lease term and discount rate) | December 31, 2022 | December 26, 2021 | ||||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 12,881 | $ | 12,254 | ||||||||||
Right-of-use assets obtained in exchange for operating lease liabilities | $ | 5,970 | $ | 19,457 | ||||||||||
Weighted-average remaining lease term | 8.5 years | 9.4 years | ||||||||||||
Weighted-average discount rate | 4.45 | % | 3.63 | % |
(In thousands) | Amount | |||||||
2023 | $ | 12,424 | ||||||
2024 | 11,142 | |||||||
2025 | 9,886 | |||||||
2026 | 8,513 | |||||||
2027 | 7,793 | |||||||
Later years | 33,325 | |||||||
Total lease payments | $ | 83,083 | ||||||
Less: Interest | (14,048) | |||||||
Present value of lease liabilities | $ | 69,035 |
For the Twelve Months Ended | ||||||||||||||||||||
(In thousands) | December 31, 2022 | December 26, 2021 | December 27, 2020 | |||||||||||||||||
Building rental revenue | $ | 28,516 | $ | 22,851 | $ | 28,516 |
(In thousands) | Amount | |||||||
2023 | $ | 29,010 | ||||||
2024 | 29,053 | |||||||
2025 | 29,344 | |||||||
2026 | 29,344 | |||||||
2027 | 29,337 | |||||||
Later years | 72,443 | |||||||
Total building rental revenue from operating leases | $ | 218,531 |
(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 31, 2022 | $ | 12,374 | $ | 11,973 | $ | 12,087 | $ | 12,260 | ||||||||||||||||||
Year ended December 26, 2021 | $ | 13,797 | $ | 13,930 | $ | 15,353 | $ | 12,374 | ||||||||||||||||||
Year ended December 27, 2020 | $ | 14,358 | $ | 14,783 | $ | 15,344 | $ | 13,797 | ||||||||||||||||||
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 9A. CONTROLS AND PROCEDURES |
ITEM 9B. OTHER INFORMATION |
ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS |
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 |
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 31, 2022 | |||||
II – Valuation and Qualifying Accounts |
INDEX TO EXHIBITS |
Exhibit Number | Description of Exhibit | |||||||
(2.1)* | Agreement and Plan of Merger, dated as of January 6, 2022, by and among The Athletic Media Company, The New York Times Company, Subscription Holding Co. and Shareholder Representative Services LLC (filed as an Exhibit to the Company’s Form 8-K dated January 7, 2022, and incorporated by reference herein). | |||||||
(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)** |
Exhibit Number | Description of Exhibit | |||||||
(10.14)*** | Credit Agreement, dated as of July 27, 2022, among The New York Times Company, as borrower, the financial institutions party thereto as Lenders, Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, J.P. Morgan Chase Bank, National Association and Wells Fargo Bank, National Association, as Co-Syndication Agents, U.S. Bank National Association and Trust Bank, as Co-Documentation Agents and BOFA Securities, Inc., JPMorgan Chase Bank, National Association and Wells Fargo Securities, LLC, as Joint Lead Arrangers and Joint Bookrunners (filed as an Exhibit to the Company’s Form 8-K dated July 28, 2022, and incorporated by reference herein) | |||||||
(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 28, 2023 | ||||||
/s/ Meredith Kopit Levien | Chief Executive Officer, President and Director (principal executive officer) | February 28, 2023 | ||||||
/s/ Roland A. Caputo | Executive Vice President and Chief Financial Officer (principal financial officer) | February 28, 2023 | ||||||
/s/ R. Anthony Benten | Senior Vice President, Treasurer and Chief Accounting Officer (principal accounting officer) | February 28, 2023 | ||||||
/s/ Amanpal S. Bhutani | Director | February 28, 2023 | ||||||
/s/ Manuel Bronstein | Director | February 28, 2023 | ||||||
/s/ Beth Brooke | Director | February 28, 2023 | ||||||
/s/ Rachel Glaser | Director | February 28, 2023 | ||||||
/s/ Arthur Golden | Director | February 28, 2023 | ||||||
/s/ Hays N. Golden | Director | February 28, 2023 | ||||||
/s/ Brian P. McAndrews | Director | February 28, 2023 | ||||||
/s/ David Perpich | Director | February 28, 2023 | ||||||
/s/ John W. Rogers, Jr. | Director | February 28, 2023 | ||||||
/s/ Doreen Toben | Director | February 28, 2023 | ||||||
/s/ Rebecca Van Dyck | Director | February 28, 2023 |
Name of Subsidiary | Jurisdiction of Incorporation or Organization | ||||
The New York Times Company | New York | ||||
Fake Love LLC | Delaware | ||||
Listen in Audio Inc. | Delaware | ||||
Madison Paper Industries (partnership) (40%) | Maine | ||||
New York Times Canada Ltd. | British Columbia | ||||
New York Times Digital LLC | Delaware | ||||
Northern SC Paper Corporation (80%) | Delaware | ||||
NYT Administradora de Bens e Servicos Ltda. | Brazil | ||||
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 International News LLC | Delaware | ||||
NYT Japan GK | Japan | ||||
NYT Poland sp. z o.o. | Poland | ||||
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 | ||||
Serial Productions LLC | Delaware | ||||
The Athletic Media Company | Delaware | ||||
The Athletic Media Company Australia Pty Ltd. | Australia | ||||
The Athletic Media Company Canada Ltd. | British Columbia | ||||
The Athletic Media Company UK Ltd. | England and Wales | ||||
The Athletic Media (Malaysia) SDN. BHD | Malaysia |
Name of Subsidiary | Jurisdiction of Incorporation or Organization | ||||
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 |