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Segment Information
 3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
The Company identifies a business as an operating segment if: (i) it engages in business activities from which it may earn revenues and incur expenses; (ii) its operating results are regularly reviewed by the Company’s President and Chief Executive Officer (who is the Company’s Chief Operating Decision Maker) to make decisions about resources to be allocated to the segment and assess its performance; and (iii) it has available discrete financial information.
Since the acquisition of The Athletic in the first quarter of 2022, the Company has had two reportable segments: NYTG and The Athletic. These segments are evaluated regularly by the Company’s Chief Operating Decision Maker in assessing performance and allocating resources. Management uses adjusted operating profit (loss) by segment in assessing performance and allocating resources. The Company includes in its presentation revenues and adjusted operating costs to arrive at adjusted operating profit (loss) by segment. Adjusted operating costs are defined as operating costs before depreciation and amortization, severance and multiemployer pension plan withdrawal costs. Adjusted operating profit is defined as operating profit before depreciation and amortization, severance, multiemployer pension plan withdrawal costs and special items. Asset information by segment is not a measure of performance used by the Company’s Chief Operating Decision Maker. Accordingly, we have not disclosed asset information by segment.
Subscription revenue from our multi-product digital subscription package (or “bundle”) is allocated to NYTG and The Athletic. We allocate revenue first to our digital news product based on its list price and then the remaining bundle revenue is allocated to the other products in the bundle, including The Athletic, based on their relative list price. The direct variable expenses associated with the bundle, which include credit card fees, third party fees and sales taxes, are allocated to NYTG and The Athletic based on a historical actual percentage of these costs to bundle revenue.
The results of The Athletic have been included in our Condensed Consolidated Financial Statements beginning February 1, 2022, the date of the acquisition. As a result, first quarter 2022 results include The Athletic for approximately two months while first quarter 2023 results include the Athletic for the full quarter.
The following tables present segment information:
For the Quarters Ended
(In thousands)March 31, 2023March 27, 2022% Change
Revenues
NYTG$532,092 $525,268 1.3 %
The Athletic28,647 12,157 *
Total revenues$560,739 $537,425 4.3 %
Adjusted operating costs
NYTG$470,337 $457,543 2.8 %
The Athletic36,427 18,979 91.9 %
Total adjusted operating costs$506,764 $476,522 6.3 %
Adjusted operating profit (loss)
NYTG$61,755 $67,725 (8.8)%
The Athletic(7,780)(6,822)14.0 %
Total adjusted operating profit$53,975 $60,903 (11.4)%
AOP margin % - NYTG11.6 %12.9 %(130) bps
* Represents a change equal to or in excess of 100% or not meaningful.
Revenues detail by segment
For the Quarters Ended
(In thousands)March 31, 2023March 27, 2022% Change
NYTG
Subscription$373,466 $361,602 3.3 %
Advertising102,090 114,490 (10.8)%
Other56,536 49,176 15.0 %
Total$532,092 $525,268 1.3 %
The Athletic
Subscription$24,076 $10,377 *
Advertising4,151 1,780 *
Other420 — *
Total$28,647 $12,157 *
The New York Times Company
Subscription$397,542 $371,979 6.9 %
Advertising106,241 116,270 (8.6)%
Other56,956 49,176 15.8 %
Total$560,739 $537,425 4.3 %
* 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
For the Quarters Ended
(In thousands)March 31, 2023March 27, 2022% Change
NYTG
Cost of revenue (excluding depreciation and amortization)$284,931 $269,476 5.7 %
Sales and marketing60,121 74,460 (19.3)%
Product development51,877 45,179 14.8 %
Adjusted general and administrative (1)
73,408 68,428 7.3 %
Total$470,337 $457,543 2.8 %
The Athletic
Cost of revenue (excluding depreciation and amortization)$21,921 $11,889 84.4 %
Sales and marketing6,913 3,128 *
Product development5,185 2,254 *
Adjusted general and administrative (2)
2,408 1,708 41.0 %
Total$36,427 $18,979 91.9 %
The New York Times Company
Cost of revenue (excluding depreciation and amortization)$306,852 $281,365 9.1 %
Sales and marketing67,034 77,588 (13.6)%
Product development57,062 47,433 20.3 %
Adjusted general and administrative75,816 70,136 8.1 %
Total$506,764 $476,522 6.3 %
(1) Excludes severance of $3.3 million and multiemployer pension withdrawal costs of $1.5 million for the first quarter of 2023, respectively. Excludes multiemployer pension withdrawal costs of $1.2 million first quarter 2022.
(2) Excludes $0.5 million of severance for the first quarter of 2023.
* Represents a change equal to or in excess of 100% or not meaningful.
Reconciliation of operating costs before depreciation and amortization, severance and multiemployer pension plan withdrawal costs (or adjusted operating costs)
For the Quarters Ended
(In thousands)March 31, 2023March 27, 2022% Change
Operating costs$532,839 $496,429 7.3 %
Less:
Depreciation and amortization20,840 18,686 11.5 %
Severance3,780 — *
Multiemployer pension plan withdrawal costs1,455 1,221 19.2 %
Adjusted operating costs$506,764 $476,522 6.3 %
* 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)
For the Quarters Ended
(In thousands)March 31, 2023March 27, 2022% Change
Operating profit$27,900 $6,284 *
Add:
Depreciation and amortization20,840 18,686 11.5 %
Severance3,780 — *
Multiemployer pension plan withdrawal costs1,455 1,221 19.2 %
Special items:
Acquisition-related costs— 34,712 *
Adjusted operating profit$53,975 $60,903 (11.4)%
* Represents a change equal to or in excess of 100% or not meaningful.