Segment Information

3 Months Ended

Mar. 31, 2024

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 CODM) to make decisions about resources to be allocated to the segment and assess its performance; and (iii) it has available discrete financial information.

The Company has two reportable segments: NYTG and The Athletic. These segments are evaluated regularly by the Company’s CODM 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 CODM. 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.

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 first quarter of 2023 to reflect the updated allocation methodology.

The following tables present segment information:

	For the Quarters Ended
(In thousands)	March 31, 2024		March 31, 2023 (1)		% Change
Revenues
NYTG	$	557,394	$	532,782	4.6	%
The Athletic	37,184		27,957		33.0	%
Intersegment eliminations (2)	(563)		—		*
Total revenues	$	594,015	$	560,739	5.9	%
Adjusted operating profit (loss)
NYTG	$	84,744	$	65,287	29.8	%
The Athletic	(8,690)		(11,312)		(23.2)	%
Total adjusted operating profit	$	76,054	$	53,975	40.9	%
Less:
Other components of net periodic benefit costs/(income)	1,051		(685)		*
Depreciation and amortization	20,706		20,840		(0.6)	%
Severance	4,428		3,780		17.1	%
Multiemployer pension plan withdrawal costs	1,612		1,455		10.8	%
Generative AI Litigation Costs	989		—		*
Add:
Interest income and other, net	8,387		3,173		*
Income before income taxes	$	55,655	$	31,758	75.2	%
(1) Recast to reflect the Company’s updated bundle allocation methodology.
(2) Intersegment eliminations (“I/E”) related to content licensing.
* 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, 2024		March 31, 2023 (1)		% Change
NYTG
Subscription	$	401,370	$	374,156	7.3	%
Advertising	98,004		102,090		(4.0)	%
Other	58,020		56,536		2.6	%
Total	$	557,394	$	532,782	4.6	%
The Athletic
Subscription	$	27,635	$	23,386	18.2	%
Advertising	5,707		4,151		37.5	%
Other	3,842		420		*
Total	$	37,184	$	27,957	33.0	%
I/E (2)	$	(563)	$	—	*
The New York Times Company
Subscription	$	429,005	$	397,542	7.9	%
Advertising	103,711		106,241		(2.4)	%
Other	61,299		56,956		7.6	%
Total	$	594,015	$	560,739	5.9	%
(1) Recast to reflect the Company’s updated bundle allocation methodology.
(2) I/E related to content licensing recorded in Other revenues.
* Represents a change equal to or in excess of 100% or not meaningful.