Revenue

9 Months Ended

Sep. 29, 2019

Revenue from Contract with Customer [Abstract]

REVENUE

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

Advertising revenues are derived from the sale of our advertising products and services on our print and digital platforms. These revenues are primarily determined by the volume, rate and mix of advertisements. Display advertising revenue is principally from advertisers promoting products, services or brands. Display advertising also includes branded content on The Times’s platforms. Other advertising primarily represents, for our print products, classified advertising revenue. Digital other advertising revenue primarily includes creative services fees; advertising revenue from our podcasts; and advertising revenue generated by Wirecutter, our product review and recommendation website.

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

Subscription, advertising and other revenues were as follows:



	For the Quarters Ended				For the Nine Months Ended
(In thousands)	September 29, 2019		September 30, 2018		September 29, 2019		September 30, 2018
Subscription	$	267,302	$	257,796	$	808,568	$	779,018
Advertising	113,531		121,677		359,380		366,525
Other ⁽¹⁾	47,668		37,873		135,873		100,311
Total	$	428,501	$	417,346	$	1,303,821	$	1,245,854

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

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



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

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



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



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

Performance Obligations

We have remaining performance obligations related to digital archive licensing and certain advertising contracts. As of September 29, 2019, the aggregate amount of transaction price allocated to the remaining performance obligations was approximately $95 million. The Company will recognize this revenue as control of the performance obligation is transferred to the customer. We expect that approximately $7 million, $25 million and $63 million will be recognized in the remainder of 2019, 2020 and thereafter, respectively.

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

Contract Assets

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