Revenue

9 Months Ended

Sep. 26, 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, Audm and Wirecutter (to which a subscription option was launched during the third quarter of 2021) products (“other digital-only 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 as well as preprinted advertising, also known as freestanding inserts.

Other revenues primarily consist of revenues from licensing, Wirecutter affiliate referrals, commercial printing, the leasing of floors in the New York headquarters building located at 620 Eighth Avenue, New York, New York (the “Company Headquarters”), 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 Nine Months Ended
(In thousands)	September 26, 2021		As % of total		September 27, 2020		As % of total		September 26, 2021		As % of total		September 27, 2020		As % of total
Subscription	$	342,609	67.4	%	$	300,950	70.5	%	$	1,010,910	68.3	%	$	879,573	69.0	%
Advertising	110,887		21.7	%	79,253		18.6	%	320,777		21.6	%	253,150		19.9	%
Other (1)	55,607		10.9	%	46,692		10.9	%	148,958		10.1	%	141,558		11.1	%
Total	$	509,103	100.0	%	$	426,895	100.0	%	$	1,480,645	100.0	%	$	1,274,281	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 third quarters of each of 2021 and 2020, and approximately $20 million and $22 million for the first nine months of 2021 and 2020, respectively.

The following table summarizes digital and print subscription revenues, which are components of subscription revenues above, for the third quarters and first nine months ended September 26, 2021, and September 27, 2020:

	For the Quarters Ended								For the Nine Months Ended
(In thousands)	September 26, 2021		As % of total		September 27, 2020		As % of total		September 26, 2021		As % of total		September 27, 2020		As % of total
Digital-only subscription revenues:
News product subscription revenues(1)	$	178,382	52.1	%	$	140,740	46.8	%	$	510,563	50.5	%	$	392,620	44.6	%
Other digital-only product subscription revenues(2)	20,251		5.9	%	14,546		4.8	%	57,815		5.7	%	38,660		4.4	%
Subtotal digital-only subscriptions	198,633		58.0	%	155,286		51.6	%	568,378		56.2	%	431,280		49.0	%
Print subscription revenues:
Domestic home delivery subscription revenues(3)	128,895		37.6	%	129,912		43.2	%	398,045		39.4	%	396,620		45.1	%
Single-copy, NYT International and other subscription revenues(4)	15,081		4.4	%	15,752		5.2	%	44,487		4.4	%	51,673		5.9	%
Subtotal print subscription revenues	143,976		42.0	%	145,664		48.4	%	442,532		43.8	%	448,293		51.0	%
Total subscription revenues	$	342,609	100.0	%	$	300,950	100.0	%	$	1,010,910	100.0	%	$	879,573	100.0	%
(1) Includes revenues from subscriptions to the Company’s news product. News product subscription packages that include access to the Company’s Games, Cooking and Wirecutter products are also included in this category.
(2) Includes revenues from standalone subscriptions to the Company’s other digital-only 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, which are components of advertising revenues above, for the third quarters and first nine months ended September 26, 2021, and September 27, 2020:

	For the Quarters Ended								For the Nine Months Ended
(In thousands)	September 26, 2021		As % of total		September 27, 2020		As % of total		September 26, 2021		As % of total		September 27, 2020		As % of total
Advertising revenues:
Digital	$	66,981	60.4	%	$	47,763	60.3	%	$	197,472	61.6	%	$	138,452	54.7	%
Print	43,906		39.6	%	31,490		39.7	%	123,305		38.4	%	114,698		45.3	%
Total advertising	$	110,887	100.0	%	$	79,253	100.0	%	$	320,777	100.0	%	$	253,150	100.0	%

Performance Obligations

We have remaining performance obligations related to digital archive and other licensing and certain advertising contracts. As of September 26, 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 $128 million. The Company will recognize this revenue as performance obligations are satisfied. We expect that approximately $13 million, $40 million and $75 million will be recognized in the remainder of 2021, 2022 and thereafter through 2028, respectively.

Contract Assets

As of September 26, 2021, and December 27, 2020, the Company had $3.1 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.