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Segment Information
 9 Months Ended
Sep. 30, 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. Adjusted operating profit is defined as operating profit before depreciation and amortization, severance, multiemployer pension plan withdrawal costs and special items. Adjusted operating profit for NYTG and The Athletic is presented below, along with a reconciliation to consolidated income before taxes. 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 revenues from and expenses associated with our digital subscription package (or “bundle”) are allocated to NYTG and The Athletic. The Athletic was first introduced into our bundle in June 2022. Therefore, The Athletic’s results for the second quarter of 2022 include bundle revenues and expenses for only part of the quarter, whereas the second quarter of 2023 includes bundle revenues and expenses for the entire quarter.
Prior to April 1, 2023, we allocated bundle revenues first to our digital news product based on its standalone list price and then the remaining bundle revenues were allocated to the other products in the bundle, including The Athletic, based on their relative standalone list prices. Starting April 1, 2023, we allocate 10% of bundle revenues to The Athletic based on management’s view of The Athletic’s relative value to the bundle, which is derived based on analysis of various metrics, and allocate the remaining bundle revenues to NYTG.
Prior to April 1, 2023, we allocated to NYTG and The Athletic direct variable expenses associated with the bundle, which include credit card fees, third party fees and sales taxes, based on a historical actual percentage of these costs to bundle revenues. Starting April 1, 2023, we allocate 10% of product development, marketing and subscriber servicing expenses (including the direct variable expenses referenced above) associated with the bundle to The Athletic, and the remaining costs are allocated to NYTG, in each case, in line with the revenues allocations.
For comparison purposes, the Company has recast segment results for the quarters following the second quarter of 2022 to reflect the updated allocation methodology. The second quarter of 2022 was not recast as the change was de minimis for that quarter in light of the timing of the introduction of The Athletic to the bundle.
The results of The Athletic have been included in our Condensed Consolidated Financial Statements beginning February 1, 2022, the date of the acquisition. Results for the first nine months of 2022 included The Athletic for approximately eight months, while results for the first nine months of 2023 included The Athletic for the full nine months.
The following tables present segment information:
For the Quarters EndedFor the Nine Months Ended
(In thousands)September 30, 2023
September 25, 2022 (1)
% ChangeSeptember 30, 2023
September 25, 2022 (1)
% Change
Revenues
NYTG$563,903 $524,061 7.6 %$1,657,179 $1,585,463 4.5 %
The Athletic34,442 23,619 45.8 %92,758 55,322 67.7 %
Total revenues$598,345 $547,680 9.3 %$1,749,937 $1,640,785 6.7 %
Adjusted operating profit (loss)
NYTG$97,654 $81,030 20.5 %$262,911 $237,572 10.7 %
The Athletic(7,899)(12,053)(34.5)%(27,016)(31,473)(14.2)%
Total adjusted operating profit$89,755 $68,977 30.1 %$235,895 $206,099 14.5 %
Less:
Other components of net periodic benefit costs(684)1,757 *(2,053)4,903 *
Depreciation and amortization21,475 21,760 (1.3)%64,173 61,150 4.9 %
Severance3,086 2,010 53.5 %7,578 4,670 62.3 %
Multiemployer pension plan withdrawal costs1,397 1,319 5.9 %3,936 3,734 5.4 %
Acquisition-related costs— — — — 34,712 *
Impairment charges2,503 — *15,239 — *
Multiemployer pension plan liability adjustment(2,273)(7,127)(68.1)%(2,273)(7,127)(68.1)%
Add:
Interest income and other, net5,736 1,579 *13,426 38,258 (64.9)%
Income before income taxes$69,987 $50,837 37.7 %$162,721 $142,315 14.3 %
(1) Recast to reflect updated bundle allocation methodology.
* Represents a change equal to or in excess of 100% or not meaningful.
Revenues detail by segment
For the Quarters EndedFor the Nine Months Ended
(In thousands)September 30, 2023
September 25, 2022 (1)
% ChangeSeptember 30, 2023
September 25, 2022 (1)
% Change
NYTG
Subscription$392,937 $361,488 8.7 %$1,152,130 $1,089,710 5.7 %
Advertising108,672 108,134 0.5 %323,091 337,456 (4.3)%
Other62,294 54,439 14.4 %181,958 158,297 14.9 %
Total$563,903 $524,061 7.6 %$1,657,179 $1,585,463 4.5 %
The Athletic
Subscription$25,640 $21,184 21.0 %$73,579 $48,560 51.5 %
Advertising8,441 2,333 *18,033 6,660 *
Other361 102 *1,146 102 *
Total$34,442 $23,619 45.8 %$92,758 $55,322 67.7 %
The New York Times Company
Subscription$418,577 $382,672 9.4 %$1,225,709 $1,138,270 7.7 %
Advertising117,113 110,467 6.0 %341,124 344,116 (0.9)%
Other62,655 54,541 14.9 %183,104 158,399 15.6 %
Total$598,345 $547,680 9.3 %$1,749,937 $1,640,785 6.7 %
(1) Recast to reflect updated bundle allocation methodology.
* Represents a change equal to or in excess of 100% or not meaningful.