Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

Schedule of Financial Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2023, and December 31, 2022:


(In thousands)	September 30, 2023								December 31, 2022
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:
Short-term AFS securities (1)
Corporate debt securities	$	116,765	$	—	$	116,765	$	—	$	51,029	$	—	$	51,029	$	—
U.S Treasury securities	35,111		—		35,111		—		44,133		—		44,133		—
U.S. governmental agency securities	10,861		—		10,861		—		22,084		—		22,084		—

Municipal securities	—		—		—		—		8,726		—		8,726		—

Total short-term AFS securities	$	162,737	$	—	$	162,737	$	—	$	125,972	$	—	$	125,972	$	—
Long-term AFS securities (1)
U.S. Treasury securities	$	125,718	$	—	$	125,718	$	—	$	24,414	$	—	$	24,414	$	—
Corporate debt securities	59,024		—		59,024		—		108,830		—		108,830		—
U.S. governmental agency securities	4,712		—		4,712		—		5,673		—		5,673		—

Total long-term AFS securities	$	189,454	$	—	$	189,454	$	—	$	138,917	$	—	$	138,917	$	—
Liabilities:
Deferred compensation (2)(3)	$	12,475	$	12,475	$	—	$	—	$	14,635	$	14,635	$	—	$	—
Contingent consideration (4)	$	5,551	$	—	$	—	$	5,551	$	5,324	$	—	$	—	$	5,324

(1) We classified these investments as Level 2 since the fair value is based on market observable inputs for investments with similar terms and maturities.

(2) The deferred compensation liability, included in Other liabilities—other in our Condensed Consolidated Balance Sheets, consists of deferrals under The New York Times Company Deferred Executive Compensation Plan (the “DEC”), a frozen plan that enabled certain eligible executives to elect to defer a portion of their compensation on a pre-tax basis. The deferred amounts are invested at the executives’ option in various mutual funds. The fair value of deferred compensation is based on the mutual fund investments elected by the executives and on quoted prices in active markets for identical assets. Participation in the DEC was frozen effective December 31, 2015.

(3) The Company invests the assets associated with the deferred compensation liability in life insurance products. Our investments in life insurance products are included in Miscellaneous assets in our Condensed Consolidated Balance Sheets, and were $50.6 million as of September 30, 2023, and $48.4 million as of December 31, 2022. The fair value of these assets is measured using the net asset value per share (or its equivalent) and has not been classified in the fair value hierarchy.

(4) The remaining contingent consideration balances (as discussed below) are included in Accrued expenses and other, for the current portion of the liability, and Other non-current liabilities, for the long-term portion of the liability, in our Condensed Consolidated Balance Sheets.

Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table presents changes in the contingent consideration balances for the third quarters and nine months ended September 30, 2023, and September 25, 2022:


	Quarters Ended				Nine Months Ended
(In thousands)	September 30, 2023		September 25, 2022		September 30, 2023		September 25, 2022
Balance at the beginning of the period	$	5,464	$	5,858	$	5,324	$	7,450

Payments	(862)		—		(2,586)		(1,724)
Fair value adjustments (1)	949		—		2,813		132
Contingent consideration at the end of the period	$	5,551	$	5,858	$	5,551	$	5,858
(1) Fair value adjustments are included in General and administrative costs in our Condensed Consolidated Statements of Operations.