Revenue

6 Months Ended

Jun. 27, 2021

Revenue from Contract with Customer [Abstract]

Revenue

REVENUE

We generate revenues principally from subscriptions and advertising. Subscription revenues consist of revenues from subscriptions to our digital and print products (which include our news product, as well as our Games, Cooking and Audm 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 revenue is principally from advertisers (such as technology, financial and luxury goods companies) promoting products, services or brands on digital platforms in the form of display ads, audio and video, and in print, in the form of column-inch ads. Advertising revenue is primarily derived from offerings sold directly to marketers by our advertising sales teams. A smaller proportion of our total advertising revenues is generated through programmatic auctions run by third-party ad exchanges. Advertising revenue is primarily determined by the volume (e.g., impressions), rate and mix of advertisements. Digital advertising includes our core digital advertising business and other digital advertising. Our core digital advertising business includes direct-sold website, mobile application, podcast, email and video advertisements. Direct-sold display

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

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

Subscription, advertising and other revenues were as follows:

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

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

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

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

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

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

Performance Obligations

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

Contract Assets

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