Other

9 Months Ended

Sep. 30, 2023

Other Income and Expenses [Abstract]

OTHER

OTHER

Capitalized Computer Software Costs

Amortization of capitalized computer software costs included in Depreciation and amortization in our Condensed Consolidated Statements of Operations was $2.1 million and $2.0 million for the third quarters of 2023 and 2022, respectively, and $5.7 million and $5.9 million for the first nine months of 2023 and 2022, respectively.

Interest income and other, net

Interest income and other, net, as shown in the accompanying Condensed Consolidated Statements of Operations, was as follows:

	For the Quarters Ended				For the Nine Months Ended
(In thousands)	September 30, 2023		September 25, 2022		September 30, 2023		September 25, 2022
Interest income	$	6,016	$	1,817	$	14,182	$	4,574
Gain on the sale of land (1)	—		—		—		34,227
Interest expense	(280)		(238)		(756)		(543)
Total interest income and other, net	$	5,736	$	1,579	$	13,426	$	38,258

(1) On December 9, 2020, we entered into an agreement to lease and subsequently sell approximately four acres of land at our printing and distribution facility in College Point, N.Y., subject to certain conditions. The lease commenced on April 11, 2022. At the time of the lease expiration in February 2025, we will sell the parcel to the lessee for approximately $36 million. The transaction is accounted for as a sales-type lease and as a result, we recognized a gain of approximately $34 million (net of commissions) at the time of lease commencement.

Restricted Cash

A reconciliation of cash, cash equivalents and restricted cash as of September 30, 2023, and September 25, 2022, from the Condensed Consolidated Balance Sheets to the Condensed Consolidated Statements of Cash Flows is as follows:

(In thousands)	September 30, 2023		September 25, 2022
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents	$	235,566	$	190,050
Restricted cash included within miscellaneous assets	14,293		13,668
Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows	$	249,859	$	203,718

Substantially all of the amount included in restricted cash is set aside to collateralize workers’ compensation obligations.

Revolving Credit Facility

On July 27, 2022, the Company entered into an amendment and restatement of its previous credit facility that, among other changes, increased the committed amount to $350.0 million and extended the maturity date to July 27, 2027 (as amended and restated, the “Credit Facility”). Certain of the Company’s domestic subsidiaries have guaranteed the Company’s obligations under the Credit Facility. Borrowings under the Credit Facility bear interest at specified rates based on our utilization and consolidated leverage ratio. The Credit Facility contains various customary affirmative and negative covenants. In addition, the Company is obligated to pay a quarterly unused commitment fee at an annual rate of 0.20%.

As of September 30, 2023, and December 31, 2022, there were no borrowings and approximately $0.6 million in outstanding letters of credit, with the remaining committed amount available. As of September 30, 2023, the Company was in compliance with the financial covenants contained in the Credit Facility.

Severance Costs

We recognized $3.1 million and $2.0 million in severance costs for the third quarters of 2023 and 2022, respectively, and $7.6 million and $4.7 million for the first nine months of 2023 and 2022, respectively. These costs are recorded in General and administrative costs in our Condensed Consolidated Statements of Operations.

We had a severance liability of $6.9 million and $4.4 million included in Accrued expenses and other in our Condensed Consolidated Balance Sheets as of September 30, 2023, and December 31, 2022, respectively.

Impairment Charges

In September 2023, we recorded a $2.5 million impairment of our Serial podcast indefinite-lived intangible asset. See Note 5 for more details.

In June 2023, we ceased using certain leased office space in Long Island City, New York. As a result, we recorded non-cash impairment charges of $7.6 million and $5.1 million to the right-of-use assets and fixed assets, respectively. The impairment amount was determined by comparing the fair value of the impacted asset group to its carrying value as of the measurement date, as required by ASC 360, Property, Plant and Equipment. The fair value of the asset group was based on estimated sublease income for the affected property, taking into consideration the time we expect it will take to obtain a sublease tenant and the expected applicable discount rates.