10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 27, 2010

Commission file number 1-5837

THE NEW YORK TIMES COMPANY

(Exact name of registrant as specified in its charter)

NEW YORK	13-1102020
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

620 EIGHTH AVENUE, NEW YORK, NEW YORK

(Address of principal executive offices)

10018

(Zip Code)

Registrant’s telephone number, including area code 212-556-1234

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  x Accelerated filer  ¨ Non-accelerated filer  ¨ Smaller reporting company  ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ¨    No  x

Number of shares of each class of the registrant’s common stock outstanding as of July 30, 2010 (exclusive of treasury shares):

Class A Common Stock	145,066,513 shares
Class B Common Stock	819,925 shares

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

THE NEW YORK TIMES COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share data)

	For the Quarters Ended					For the Six Months Ended
	June 27, 2010		June 28, 2009			June 27, 2010			June 28, 2009
	(13 weeks)					(26 weeks)
Revenues
Advertising	$	314,880	$	315,544		$	627,538		$	648,382
Circulation		234,808		227,476			471,671			456,390
Other		39,899		39,673			78,245			85,054
Total revenues		589,587		582,693			1,177,454			1,189,826
Operating costs
Production costs:
Raw materials		38,373		42,518			75,391			98,448
Wages and benefits		123,905		130,095			252,438			275,192
Other		74,524		80,476			149,822			169,179
Total production costs		236,802		253,089			477,651			542,819
Selling, general and administrative costs		261,633		264,886			525,604			590,873
Depreciation and amortization		30,327		34,391			60,716			71,132
Total operating costs		528,762		552,366			1,063,971			1,204,824
Loss on leases		—		—			—			16,363
Pension withdrawal and curtailment expense		—		6,845			—			6,845
Operating profit/(loss)		60,825		23,482			113,483			(38,206	)
Income from joint ventures		7,678		8,434			16,789			12,837
Gain on sale of investment		9,128		—			9,128			—
Interest expense, net		20,614		21,656			41,198			39,802
Premium on debt redemption		—		9,250			—			9,250
Income/(loss) from continuing operations before income taxes		57,017		1,010			98,202			(74,421	)
Income tax expense/(benefit)		25,435		(38,200	)		52,462			(39,371	)
Income/(loss) from continuing operations		31,582		39,210			45,740			(35,050	)
Income/(loss) from discontinued operations, net of income taxes		237		(86	)		237			(55	)
Net income/(loss)		31,819		39,124			45,977			(35,105	)
Net loss/(income) attributable to the noncontrolling interest		214		(60	)		(1,151	)		(299	)
Net income/(loss) attributable to The New York Times Company common stockholders	$	32,033	$	39,064		$	44,826		$	(35,404	)
Amounts attributable to The New York Times Company common stockholders:
Income/(loss) from continuing operations	$	31,796	$	39,150		$	44,589		$	(35,349	)
Income/(loss) from discontinued operations, net of income taxes		237		(86	)		237			(55	)
Net income/(loss)	$	32,033	$	39,064		$	44,826		$	(35,404	)
Average number of common shares outstanding:
Basic		145,601		143,981			145,398			143,944
Diluted		152,962		144,626			153,855			143,944
Basic earnings/(loss) per share attributable to The New York Times Company common stockholders:
Income/(loss) from continuing operations	$	0.22	$	0.27		$	0.31		$	(0.25	)
Income from discontinued operations, net of income taxes		0.00		0.00			0.00			0.00
Net income/(loss)	$	0.22	$	0.27		$	0.31		$	(0.25	)
Diluted earnings/(loss) per share attributable to The New York Times Company common stockholders:
Income/(loss) from continuing operations	$	0.21	$	0.27		$	0.29		$	(0.25	)
Income from discontinued operations, net of income taxes		0.00		0.00			0.00			0.00
Net income/(loss)	$	0.21	$	0.27		$	0.29		$	(0.25	)
Dividends per share	$	0.00	$	0.00		$	0.00		$	0.00

See Notes to Condensed Consolidated Financial Statements.

2

THE NEW YORK TIMES COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

	June 27, 2010		December  27, 2009
	(Unaudited)
Assets
Current assets
Cash and cash equivalents	$	102,431	$	36,520
Accounts receivable (net of allowances of $33,132 in 2010 and $36,485 in 2009)		258,282		342,075
Inventories:
Newsprint and magazine paper		14,399		12,013
Other inventory		3,740		4,290
Total inventories		18,139		16,303
Deferred income taxes		44,860		44,860
Other current assets		57,413		60,815
Total current assets		481,125		500,573
Other assets
Investments in joint ventures		139,638		131,357
Property, plant and equipment (less accumulated depreciation and amortization of $1,055,198 in 2010 and $1,006,670 in 2009)		1,204,026		1,250,021
Intangible assets acquired:
Goodwill (less accumulated impairment losses of $805,218 in 2010 and 2009)		639,919		652,196
Other intangible assets acquired (less accumulated amortization of $65,244 in 2010 and $61,494 in 2009)		39,432		43,467
Total intangible assets acquired		679,351		695,663
Deferred income taxes		291,995		318,126
Miscellaneous assets		195,600		192,817
Total assets	$	2,991,735	$	3,088,557

See Notes to Condensed Consolidated Financial Statements.

3

THE NEW YORK TIMES COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

	June 27, 2010			December 27, 2009
	(Unaudited)
Liabilities and stockholders’ equity
Current liabilities
Accounts payable	$	98,511		$	119,228
Accrued payroll and other related liabilities		103,108			121,881
Unexpired subscriptions		75,658			77,504
Accrued expenses and other		167,186			181,887
Total current liabilities		444,463			500,500
Other liabilities
Long-term debt and capital lease obligations		772,654			769,176
Pension benefits obligation		722,472			815,422
Postretirement benefits obligation		148,033			151,250
Other		247,743			244,966
Total other liabilities		1,890,902			1,980,814
Stockholders’ equity
Common stock of $.10 par value:
Class A – authorized 300,000,000 shares; issued: 2010 – 149,222,590; 2009 – 148,315,621 (including treasury shares: 2010 – 4,438,479; 2009 – 4,627,737)		14,922			14,832
Class B – convertible – authorized and issued shares: 2010 – 819,925; 2009 – 825,475		82			83
Additional paid-in capital		50,441			43,603
Retained earnings		1,063,416			1,018,590
Common stock held in treasury, at cost		(145,568	)		(149,302	)
Accumulated other comprehensive loss, net of income taxes:
Foreign currency translation adjustments		8,514			16,838
Unrealized derivative loss on cash-flow hedge of equity method investment		(697	)		(697	)
Funded status of benefit plans		(339,092	)		(339,905	)
Total accumulated other comprehensive loss, net of income taxes		(331,275	)		(323,764	)
Total New York Times Company stockholders’ equity		652,018			604,042
Noncontrolling interest		4,352			3,201
Total stockholders’ equity		656,370			607,243
Total liabilities and stockholders’ equity	$	2,991,735		$	3,088,557

See Notes to Condensed Consolidated Financial Statements.

4

THE NEW YORK TIMES COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

	For the Six Months Ended
	June 27, 2010			June 28, 2009
	(26 weeks)
Cash flows from operating activities
Net income/(loss)	$	45,977		$	(35,105	)
Adjustments to reconcile net income/(loss) to net cash provided by operating activities:
Gain on sale of investment		(9,128	)		—
Loss on leases		—			16,363
Premium on debt redemption		—			9,250
Depreciation and amortization		60,716			71,198
Stock-based compensation		4,105			6,876
Undistributed earnings of affiliates		(13,714	)		(10,062	)
Long-term retirement benefits obligations		(93,717	)		13,193
Other-net		1,139			6,471
Changes in operating assets and liabilities, net of acquisitions/dispositions:
Account receivables, net		83,793			114,023
Inventories		(1,836	)		(5,033	)
Other current assets		1,019			1,819
Accounts payable and other liabilities		(15,916	)		(134,600	)
Unexpired subscriptions		(1,846	)		(2,009	)
Net cash provided by operating activities		60,592			52,384
Cash flows from investing activities
Proceeds from the sale/(purchase) of investments-net		13,755			(680	)
Capital expenditures		(12,429	)		(39,185	)
Proceeds from sale of assets		2,265			18,447
Loan repayments/(issuance)-net		2,000			(13,000	)
Net cash provided by/(used in) investing activities		5,591			(34,418	)
Cash flows from financing activities
Repayments under revolving credit agreements–net		—			(180,000	)
Long-term obligations:
Proceeds from sale-leaseback financing		—			213,599
Proceeds from issuance of senior unsecured notes		—			221,322
Redemption of long-term debt		—			(259,513	)
Repayments		(21	)		(54,428	)
Capital shares:
Issuances		721			86
Repurchases		—			(36	)
Proceeds from sale of warrants		—			20,529
Net cash provided by/(used in) financing activities		700			(38,441	)
Increase/(decrease) in cash and cash equivalents		66,883			(20,475	)
Effect of exchange rate changes on cash and cash equivalents		(972	)		1,007
Cash and cash equivalents at the beginning of the year		36,520			56,784
Cash and cash equivalents at the end of the quarter	$	102,431		$	37,316

See Notes to Condensed Consolidated Financial Statements.

5

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1. GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

In the opinion of The New York Times Company’s (the “Company”) management, the Condensed Consolidated Financial Statements present fairly the financial position of the Company as of June 27, 2010, and December 27, 2009, and the results of operations and cash flows of the Company for the periods ended June 27, 2010, and June 28, 2009. All adjustments necessary for a fair presentation have been included and are of a normal and recurring nature. All significant intercompany accounts and transactions have been eliminated in consolidation. For comparability, certain prior year amounts have been reclassified to conform with the current period presentation. The financial statements were prepared in accordance with the requirements of the Securities and Exchange Commission for interim reporting. As permitted under those rules, certain notes or other financial information that are normally required by accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted from these interim financial statements. These financial statements, therefore, should be read in conjunction with the Consolidated Financial Statements and related Notes included in the Company’s Annual Report on Form 10-K for the year ended December 27, 2009. Due to the seasonal nature of the Company’s business, operating results for the interim periods are not necessarily indicative of a full year’s operations. The fiscal periods included herein comprise 13 weeks for the second-quarter periods and 26 weeks for the six-month periods.

As of June 27, 2010, the Company’s significant accounting policies, which are detailed in the Company’s Annual Report on Form 10-K for the year ended December 27, 2009 have not changed materially.

Recent Accounting Pronouncements

In October 2009, the Financial Accounting Standards Board issued new guidance which amended previous guidance related to the accounting for revenue arrangements with multiple deliverables. The guidance specifically addressed how consideration should be allocated to the separate units of accounting. The guidance is effective for fiscal years beginning on or after June 15, 2010, and will apply to the Company’s 2011 fiscal year. The guidance can be applied prospectively to new or materially modified arrangements after the effective date or retrospectively for all periods presented, and early application is permitted. While the Company continues to evaluate this guidance, it does not believe the adoption will have a material impact on its financial statements.

6

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

NOTE 2. GOODWILL AND OTHER INTANGIBLE ASSETS ACQUIRED

Goodwill is the excess of cost over the fair value of tangible and other intangible net assets acquired. Goodwill is not amortized but tested for impairment annually or in an interim period if certain circumstances indicate a possible impairment may exist.

Other intangible assets acquired consist primarily of trade names on various acquired properties, content, customer lists and other assets. Other intangible assets acquired that have indefinite lives (trade names) are not amortized but tested for impairment annually or in an interim period if certain circumstances indicate a possible impairment may exist. Certain other intangible assets acquired (content, customer lists and other assets) are amortized over their estimated useful lives and tested for impairment if certain circumstances indicate a possible impairment may exist.

The changes in the carrying amount of goodwill were as follows:

(In thousands)	News Media Group			About Group		Total
Balance as of December 27, 2009:
Goodwill	$	1,087,436		$	369,978	$	1,457,414
Accumulated impairment losses		(805,218	)		—		(805,218	)
Balance as of December 27, 2009		282,218			369,978		652,196
Foreign currency translation		(12,277	)		—		(12,277	)
Balance as of June 27, 2010:
Goodwill		1,075,159			369,978		1,445,137
Accumulated impairment losses		(805,218	)		—		(805,218	)
Balance as of June 27, 2010	$	269,941		$	369,978	$	639,919

Other intangible assets acquired were as follows:

	June 27, 2010							December 27, 2009
(In thousands)	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Amortized other intangible assets:
Content	$	25,712	$	(15,094	)	$	10,618	$	25,712	$	(13,677	)	$	12,035
Customer lists		28,294		(20,264	)		8,030		28,355		(19,331	)		9,024
Other		36,308		(29,886	)		6,422		36,532		(28,486	)		8,046
Total		90,314		(65,244	)		25,070		90,599		(61,494	)		29,105
Unamortized other intangible assets:
Trade names		14,362		—			14,362		14,362		—			14,362
Total other intangible assets acquired	$	104,676	$	(65,244	)	$	39,432	$	104,961	$	(61,494	)	$	43,467

As of June 27, 2010, the remaining weighted-average amortization period was seven years for content, six years for customer lists and three years for other amortizable intangible assets acquired included in the table above.

Amortization expense related to other intangible assets acquired that are subject to amortization was $4.1 million in the first six months of 2010 and is expected to be $8.1 million for the fiscal year 2010.

7

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

Amortization expense for the next five years related to these intangible assets is expected to be as follows:

(In thousands)
Year	Amount
2011	$	7,700
2012		5,300
2013		2,100
2014		1,100
2015		800

NOTE 3. INVESTMENTS IN JOINT VENTURES

The Company’s investments in joint ventures consisted of equity ownership interests in the following entities as of June 27, 2010:

Company	Approximate % Ownership
Metro Boston LLC	49%
Donohue Malbaie Inc.	49%
Madison Paper Industries	40%
quadrantONE LLC	25%
New England Sports Ventures, LLC (“NESV”)	16.57%

The Company sold 50 of its 750 units in NESV resulting in a pre-tax gain of $9.1 million in the second quarter of 2010. Following the sale, the Company’s ownership interest in NESV is 16.57%. The Company intends to continue to explore the sale of its remaining interest in NESV, in whole or in parts.

In the first quarter of 2010, the Company recorded a pre-tax gain of $12.7 million from the sale of an asset at one of the paper mills in which the Company has an investment. The Company’s share of the pre-tax gain, after eliminating the noncontrolling interest portion, is $10.2 million. The $12.7 million gain is included within “Income from joint ventures” in the Condensed Consolidated Statements of Operations.

The following table presents summarized information for the Company’s unconsolidated joint ventures. Summarized unaudited condensed combined income statements of the Company’s unconsolidated joint ventures were as follows:

	For the Quarters Ended				For the Six Months Ended
(In thousands)	June 30, 2010		June 30, 2009		June 30, 2010			June 30, 2009
Revenues	$	314,404	$	276,604	$	430,323		$	389,584
Costs and expenses		258,040		226,128		377,564			331,399
Operating income		56,364		50,476		52,759			58,185
Other income		434		4,253		26,031			2,723
Pre-tax income		56,798		54,729		78,790			60,908
Income tax expense/(benefit)		36		410		(1,008	)		2,658
Net income		56,762		54,319		79,798			58,250
Net income attributable to noncontrolling interest		6,468		5,089		11,539			9,257
Net income less noncontrolling interest	$	50,294	$	49,230	$	68,259		$	48,993

8

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

NOTE 4. DEBT OBLIGATIONS

The Company’s current indebtedness includes a private financing arrangement with Inmobiliaria Carso, S.A. de C.V. and Banco Inbursa S.A., Institución de Banca Múltiple, Grupo Financiero Inbursa; a sale lease-back of a portion of the Company’s New York headquarters; and publicly-issued senior notes. The Company’s total debt consists of the following:

(In thousands)	June 27, 2010		December 27, 2009
4.610% senior notes due in 2012	$	74,708	$	74,646
5.0% senior notes due in 2015		249,845		249,831
14.053% senior notes due in 2015		225,840		224,149
Option to repurchase ownership interest in headquarters building in 2019		215,562		213,839
Total debt		765,955		762,465
Capital lease obligations		6,737		6,752
Total debt and capital lease obligations	$	772,692	$	769,217

Based on borrowing rates currently available for debt with similar terms and average maturities, the fair value of the Company’s debt was approximately $885 million as of June 27, 2010.

The Company’s $400.0 million revolving credit agreement expiring in June 2011 is used for general corporate purposes and provides a facility for the issuance of letters of credit. As of June 27, 2010, excluding letters of credit of approximately $62 million, there were no outstanding borrowings under the Company’s revolving credit facility.

The revolving credit agreement contains a covenant that requires a specified level of stockholders’ equity, which as defined by the agreement does not include accumulated other comprehensive loss and excludes the impact of one-time non-cash charges. The required level of stockholders’ equity (as defined) is the sum of $950.0 million plus an amount equal to 25% of net income for each fiscal year ending after December 28, 2003, when net income exists. As of June 27, 2010, the amount of stockholders’ equity (as defined) in excess of the required level was approximately $719 million, which excludes the impact of non-cash impairment charges incurred in 2006, 2007 and 2008 that together aggregated approximately $878 million.

In addition, as of June 27, 2010, the Company was in compliance with all of its covenants under its other third-party financing arrangements.

“Interest expense, net” in the Company’s Condensed Consolidated Statements of Operations was as follows:

	For the Quarters Ended						For the Six Months Ended
(In thousands)	June 27, 2010			June 28, 2009			June 27, 2010			June 28, 2009
Interest expense, net:
Cash interest expense	$	19,052		$	19,708		$	38,012		$	36,394
Non-cash amortization of discount on debt		1,937			2,628			3,941			4,928
Capitalized interest		(20	)		(360	)		(20	)		(1,089	)
Interest income		(355	)		(320	)		(735	)		(431	)
Total interest expense, net	$	20,614		$	21,656		$	41,198		$	39,802

9

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

NOTE 5. OTHER

Loan Issuance

In April 2010, the Company amended a 13% secured term loan made to a third-party circulation service provider, reducing the amount of the loan to $10 million and extending the maturity date for one year until April 2011. The service provider has granted a security interest in all of its assets to secure the payment of the loan due in April 2011. As of June 27, 2010, the amount outstanding under the loan was $9.6 million.

Severance Costs

The Company recognized severance costs of $1.4 million in the second quarter of 2010 and $1.6 million in the first six months of 2010. These costs were primarily recognized at the News Media Group related to various initiatives and are primarily recorded in “Selling, general and administrative costs” in the Company’s Condensed Consolidated Statements of Operations. As of June 27, 2010, the Company had a severance liability of approximately $13 million included in “Accrued expenses and other” in the Company’s Condensed Consolidated Balance Sheet.

NOTE 6. PENSION AND OTHER POSTRETIREMENT BENEFITS

Pension

The Company sponsors several pension plans, participates in The New York Times Newspaper Guild pension plan, a joint Company and Guild-sponsored plan, and makes contributions to several multiemployer plans in connection with collective bargaining agreements. The Company-sponsored plans include qualified (funded) plans as well as non-qualified (unfunded) plans. These plans provide participating employees with retirement benefits in accordance with benefit formulas detailed in each plan. The Company’s non-qualified plans provide enhanced retirement benefits to select members of management.

Certain Company-sponsored qualified and non-qualified pension plans covering union and non-union employees no longer accrue future benefits because the plans are frozen. The benefits earned by participants prior to the pension plans being frozen were not affected.

10

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

The components of net periodic pension cost of all Company-sponsored plans and The New York Times Newspaper Guild pension plan, a joint Company and Guild-sponsored pension plan, were as follows:

	For the Quarters Ended
	June 27, 2010								June 28, 2009
(In thousands)	Qualified Plans			Non- Qualified Plans		All Plans			Qualified Plans			Non- Qualified Plans		All Plans
Service cost	$	3,055		$	28	$	3,083		$	8,108		$	318	$	8,426
Interest cost		25,943			3,426		29,369			25,723			3,606		29,329
Expected return on plan assets		(28,392	)		—		(28,392	)		(28,601	)		—		(28,601	)
Amortization of prior service cost/(credit)		201			—		201			(1,437	)		112		(1,325	)
Recognized actuarial loss		4,147			2,459		6,606			5,745			1,128		6,873
Curtailment loss		—			—		—			—			196		196
Net periodic pension cost	$	4,954		$	5,913	$	10,867		$	9,538		$	5,360	$	14,898

	For the Six Months Ended
	June 27, 2010								June 28, 2009
(In thousands)	Qualified Plans			Non- Qualified Plans		All Plans			Qualified Plans			Non- Qualified Plans		All Plans
Service cost	$	6,169		$	30	$	6,199		$	16,216		$	647	$	16,863
Interest cost		51,899			6,725		58,624			51,495			7,227		58,722
Expected return on plan assets		(56,785	)		—		(56,785	)		(57,202	)		—		(57,202	)
Amortization of prior service cost/(credit)		402			—		402			(2,874	)		225		(2,649	)
Recognized actuarial loss		8,328			2,972		11,300			11,490			2,272		13,762
Curtailment loss		—			—		—			—			196		196
Net periodic pension cost	$	10,013		$	9,727	$	19,740		$	19,125		$	10,567	$	29,692

The Company made discretionary contributions of $87.5 million in the second quarter of 2010 to certain of its Company-sponsored qualified pension plans. The Company may make additional discretionary contributions to its Company-sponsored qualified pension plans in 2010 depending on cash flows, pension asset performance, interest rates and other factors.

Based on the Company’s contractual obligations, it expects to make 2010 contributions of approximately $22 million (of which approximately $11 million was made in the first six months of 2010) to The New York Times Newspaper Guild pension plan.

Postretirement Benefits

The Company provides health benefits to retired employees (and their eligible dependents) who are not covered by any collective bargaining agreements, if the employees meet specified age and service requirements. The Company no longer provides post-age 65 retiree medical benefits for employees who retire on or after March 1, 2009. The Company also contributes to a postretirement plan under the provisions of a collective bargaining agreement. The Company accrues the costs of postretirement benefits during the employees’ active years of service and its policy is to pay its portion of insurance premiums and claims from Company assets.

11

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

The Patient Protection and Affordable Care Act, which was enacted on March 23, 2010, and the Health Care and Education Reconciliation Act of 2010, which was enacted on March 30, 2010, eliminated the tax deductibility of certain retiree health care costs, beginning January 1, 2013, to the extent of federal subsidies received by plan sponsors that provide retiree prescription drug benefits equivalent to Medicare Part D. Because the future anticipated retiree health care liabilities and related subsidies are already reflected in the Company’s financial statements, this legislation required the Company to reduce the related deferred tax asset recognized in its financial statements. As a result, the Company recorded a one-time income tax charge of $10.9 million in the first quarter of 2010 to reflect the impact of the legislation. In addition, based on the Company’s current evaluation of the effect of the legislation on its postretirement benefit plans, a remeasurement of the Company’s postretirement benefits obligation is not required at this time and the impact of the legislation will be included in the Company’s year-end measurement of its postretirement benefits obligation.

The components of net periodic postretirement benefit income were as follows:

	For the Quarters Ended						For the Six Months Ended
(In thousands)	June 27, 2010			June 28, 2009			June 27, 2010			June 28, 2009
Service cost	$	269		$	388		$	538		$	776
Interest cost		2,335			2,589			4,670			5,178
Amortization of prior service credit		(3,900	)		(3,726	)		(7,800	)		(7,452	)
Recognized actuarial loss		782			503			1,564			1,006
Net periodic postretirement benefit	$	(514	)	$	(246	)	$	(1,028	)	$	(492	)

NOTE 7. INCOME TAXES

The Company’s effective income tax rate was 44.6% in the second quarter of 2010. The effective tax rate for the first half of 2010 was 53.4%, primarily because of a $10.9 million one-time tax charge for the reduction in future tax benefits for certain retiree health benefits resulting from the federal health care legislation enacted in the first quarter of 2010.

In the second quarter of 2009, the Company’s calculation of taxes resulted in a change in the estimate for the first half of 2009. The effect of the change in the second quarter of 2009 was the recognition of a $37.7 million tax benefit. The tax benefit for the first half of 2009 had an effective tax rate of 52.9%, primarily because of a $19.2 million favorable adjustment to reduce the Company’s reserve for uncertain tax positions because statutes of limitations lapsed.

12

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

NOTE 8. EARNINGS/(LOSS) PER SHARE

Basic and diluted earnings/(loss) per share have been computed as follows:

	For the Quarters Ended					For the Six Months Ended
(In thousands, except per share data)	June 27, 2010		June 28, 2009			June 27, 2010		June 28, 2009
Income/(loss) from continuing operations attributable to The New York Times Company common stockholders	$	31,796	$	39,150		$	44,589	$	(35,349	)
Income/(loss) from discontinued operations, net of income taxes		237		(86	)		237		(55	)
Net income/(loss)	$	32,033	$	39,064		$	44,826	$	(35,404	)
Average number of common shares outstanding-Basic		145,601		143,981			145,398		143,944
Incremental shares for assumed exercise of securities		7,361		645			8,457		—
Average number of common shares outstanding-Diluted		152,962		144,626			153,855		143,944
Income/(loss) from continuing operations attributable to The New York Times Company common stockholders	$	0.22	$	0.27		$	0.31	$	(0.25	)
Income from discontinued operations, net of income taxes		0.00		0.00			0.00		0.00
Income/(loss) per share-Basic	$	0.22	$	0.27		$	0.31	$	(0.25	)
Income/(loss) from continuing operations attributable to The New York Times Company common stockholders	$	0.21	$	0.27		$	0.29	$	(0.25	)
Income from discontinued operations, net of income taxes		0.00		0.00			0.00		0.00
Income/(loss) per share-Diluted	$	0.21	$	0.27		$	0.29	$	(0.25	)

The difference between basic and diluted shares is that diluted shares include the dilutive effect of the assumed exercise of outstanding securities. The Company’s stock options and warrants, issued in connection with the Company’s 14.053% senior notes due in 2015, could have the most significant impact on diluted shares.

In the first six months of 2009, securities that could potentially be dilutive were not included in diluted shares because the loss from continuing operations made them anti-dilutive. Therefore, the amount of basic and diluted shares was the same.

The number of stock options that were excluded from the computation of diluted earnings per share because their exercise price exceeded the market value of the Company’s common stock was approximately 25 million for the second quarter and first six months of 2010 with exercise prices ranging from $10.53 to $48.54 and approximately 29 million for the second quarter of 2009 with exercise prices ranging from $4.92 to $48.54. The number of stock options that were excluded because they were anti-dilutive due to a loss from continuing operations was approximately 31 million for the first six months of 2009 with exercise prices ranging from $3.63 to $48.54.

A total of 15.9 million warrants with an exercise price of $6.3572 were excluded from the computation of diluted earnings per share in the second quarter of 2009 because their exercise price exceeded the market value of the Company’s common stock and in the first six months of 2009 because they were anti-dilutive due to a loss from continuing operations.

13

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

NOTE 9. DISCONTINUED OPERATIONS

The results of operations for WQXR-FM, a New York City classical radio station, which was sold in October 2009, are presented as discontinued operations. The Company received proceeds related to the sale of approximately $45 million and recorded a pre-tax gain of approximately $35 million (approximately $19 million after tax) in the fourth quarter of 2009. In the second quarter of 2010, the Company had net income from discontinued operations of $0.2 million as a result of changes to certain estimates included in the gain on the sale.

The results of operations for WQXR-FM presented as discontinued operations are summarized below.

	For the Quarters Ended					For the Six Months Ended
(In thousands)	June 27, 2010		June 28, 2009			June 27, 2010		June 28, 2009
Revenues	$	—	$	1,792		$	—	$	3,681
Total operating costs		—		1,943			—		3,778
Pre-tax loss		—		(151	)		—		(97	)
Income tax benefit		—		(65	)		—		(42	)
Loss from discontinued operations, net of income taxes		—		(86	)		—		(55	)
Gain on sale, net of income taxes:
Gain on sale		410		—			410		—
Income tax expense		173		—			173		—
Gain on sale, net of income taxes		237		—			237		—
Income/(loss) from discontinued operations, net of income taxes	$	237	$	(86	)	$	237	$	(55	)

NOTE 10. COMPREHENSIVE INCOME/(LOSS)

Comprehensive income/(loss) was as follows:

	For the Quarters Ended						For the Six Months Ended
(In thousands)	June 27, 2010			June 28, 2009			June 27, 2010			June 28, 2009
Net income/(loss)	$	31,819		$	39,124		$	45,977		$	(35,105	)
Foreign currency translation adjustments		(7,122	)		6,699			(14,127	)		(350	)
Adjustments to pension benefits obligation		(4,087	)		5,057			(4,087	)		5,057
Amortization of unrecognized amounts included in pension and postretirement benefits obligations		3,691			2,326			5,468			1,169
Income tax benefit/(expense)		3,041			(5,696	)		5,235			(2,455	)
Comprehensive income/(loss)		27,342			47,510			38,466			(31,684	)
Comprehensive loss/(income) attributable to the noncontrolling interest		214			(60	)		(1,151	)		(299	)
Comprehensive income/(loss) attributable to The New York Times Company common stockholders	$	27,556		$	47,450		$	37,315		$	(31,983	)

The “Accumulated other comprehensive loss, net of income taxes” in the Company’s Condensed Consolidated Balance Sheets was net of a deferred income tax benefit of approximately $245 million as of June 27, 2010 and $242 million as of December 27, 2009.

14

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

NOTE 11. SEGMENT INFORMATION

The Company’s reportable segments consist of the News Media Group and the About Group. These segments are evaluated regularly by key management in assessing performance and allocating resources.

Below is a description of the Company’s reportable segments:

News Media Group (consisting of The New York Times Media Group, which includes The New York Times, the International Herald Tribune, NYTimes.com and related businesses; the New England Media Group, which includes The Boston Globe (the “Globe”), Boston.com, the Worcester Telegram & Gazette, Telegram.com and related businesses; and the Regional Media Group, which includes 14 daily newspapers, other print publications and related businesses); and

About Group (consisting of About.com, ConsumerSearch.com, UCompareHealthCare.com and CalorieCount.com, and related businesses).

The Company’s Statements of Operations by reportable segment and Corporate were as follows:

	For the Quarters Ended						For the Six Months Ended
(In thousands)	June 27, 2010			June 28, 2009			June 27, 2010			June 28, 2009
Revenues
News Media Group	$	555,898		$	555,548		$	1,109,067		$	1,135,841
About Group		33,689			27,145			68,387			53,985
Total	$	589,587		$	582,693		$	1,177,454		$	1,189,826
Operating profit/(loss)
News Media Group	$	54,397		$	21,034		$	102,868		$	(33,312	)
About Group		15,346			10,230			31,906			19,181
Corporate		(8,918	)		(7,782	)		(21,291	)		(24,075	)
Total	$	60,825		$	23,482		$	113,483		$	(38,206	)
Income from joint ventures		7,678			8,434			16,789			12,837
Gain on sale of investment		9,128			—			9,128			—
Interest expense, net		20,614			21,656			41,198			39,802
Premium on debt redemption		—			9,250			—			9,250
Income/(loss) from continuing operations before income taxes		57,017			1,010			98,202			(74,421	)
Income tax expense/(benefit)		25,435			(38,200	)		52,462			(39,371	)
Income/(loss) from continuing operations		31,582			39,210			45,740			(35,050	)
Income/(loss) from discontinued operations, net of income taxes		237			(86	)		237			(55	)
Net income/(loss)		31,819			39,124			45,977			(35,105	)
Net loss/(income) attributable to the noncontrolling interest		214			(60	)		(1,151	)		(299	)
Net income/(loss) attributable to The New York Times Company common stockholders	$	32,033		$	39,064		$	44,826		$	(35,404	)

15

THE NEW YORK TIMES COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

NOTE 12. Contingent Liabilities

Third-Party Guarantees

As of June 27, 2010, the Company had outstanding guarantees on behalf of two third-party service providers, one of which provides for the Company printing and distribution services, and the other, circulation services. The guarantees were for payments under property leases and debt. The total amount of the guarantees was approximately $4 million as of June 27, 2010. In accordance with GAAP, the contingent obligations related to these guarantees are not reflected in the Company’s Condensed Consolidated Balance Sheets as of June 27, 2010 and December 27, 2009.

Other

The Company also had letters of credit of approximately $62 million as of June 27, 2010, primarily for obligations under the Company’s workers’ compensation program, sale-leaseback financing and the acquisition of its New York headquarters site. The workers’ compensation liability (approximately $38 million) is included in the Company’s Condensed Consolidated Balance Sheet as of June 27, 2010.

There are various legal actions that have arisen in the ordinary course of business and are now pending against the Company. These actions are generally for amounts greatly in excess of the payments, if any, that may be required to be made. It is the opinion of management after reviewing these actions with legal counsel to the Company that the ultimate liability that might result from these actions would not have a material adverse effect on the Company’s Condensed Consolidated Financial Statements.

NOTE 13. SUBSEQUENT EVENTS

Impairment of assets

The Company consolidated the Globe’s printing facility in Billerica, Mass., into the Boston, Mass., printing facility in the second quarter of 2009. After exploring different opportunities for the assets at Billerica, the Company determined in the third quarter of 2010 that the majority of these assets would be sold. In the third quarter of 2010, the Company expects to record an approximate $16 million charge for the write-down of these assets.

16

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

We are a diversified media company that currently includes newspapers, Internet businesses, investments in paper mills and other investments. Our segments and divisions are:

News Media Group (consisting of The New York Times Media Group, which includes The New York Times (“The Times”), the International Herald Tribune, NYTimes.com and related businesses; the New England Media Group, which includes The Boston Globe (the “Globe”), Boston.com, the Worcester Telegram & Gazette, Telegram.com and related businesses; and the Regional Media Group, which includes 14 daily newspapers, other print publications and related businesses). The News Media Group generates revenues principally from print and online advertising and through circulation. Other revenues, which make up the remainder of revenues, primarily consist of revenues from news services/syndication, commercial printing, rental income, digital archives and direct mail advertising services. The News Media Group’s main operating costs are employee-related costs and raw materials, primarily newsprint.

About Group (consisting of About.com, ConsumerSearch.com, UCompareHealthCare.com and CalorieCount.com, and related businesses). The About Group generates revenues through cost-per-click advertising (sponsored links for which the About Group is paid when a user clicks on the ad), display advertising and e-commerce (including sales lead generation). Almost all of its revenues (95% in the first six months of 2010) are derived from the sale of cost-per-click and display advertising. Cost-per-click advertising accounted for 59% of the About Group’s total advertising revenues in the first six months of 2010. The About Group’s main operating costs are employee-related costs and content and hosting costs.

Joint Ventures Our investments accounted for under the equity method are as follows:

• a 49% interest in Metro Boston LLC, which publishes a free daily newspaper in the greater Boston area,

• a 49% interest in a Canadian newsprint company, Donohue Malbaie Inc.,

• a 40% interest in a partnership, Madison Paper Industries, operating a supercalendered paper mill in Maine,

• a 25% interest in quadrantONE LLC, an online advertising network that sells bundled premium, targeted display advertising onto local newspaper and other Web sites, and

• a 16.57% interest in New England Sports Ventures (“NESV”), which owns the Boston Red Sox, Fenway Park and other real estate, approximately 80% of New England Sports Network, a regional cable sports network, and 50% of Roush Fenway Racing, a leading NASCAR team.

17

We remain in a challenging business environment, resulting in lingering uncertainty about the economic outlook and an increasingly competitive landscape. During the second quarter of 2010, we were able to increase revenues and decrease operating costs. We experienced positive trending in both print and digital advertising revenues relative to the first quarter of 2010 and ended the quarter roughly flat in overall advertising revenue compared with the 2009 second quarter. A 21.2% increase in digital advertising revenues offset a 6.1% decrease in print advertising revenues in the second quarter of 2010, and for the first six months of 2010 digital advertising revenues increased 19.8%, while print advertising declined 9.3%, compared with the same prior-year periods. The newspaper industry remains affected by the secular shift to digital media choices. We have seen the positive impact of transitioning into an increasingly multiplatform company, as online advertising revenues have become a much more significant part of our revenue mix, making up approximately 26% of our advertising revenue in the first six months of 2010, up from about 21% in the same period in 2009.

Visibility remains limited for advertising. Based on the early part of the third quarter of 2010, third-quarter revenue trends for print advertising are expected to improve relative to the second quarter of 2010, while digital advertising is expected to trend in the mid to high teens. The low-single digit circulation revenue growth we experienced in the first six months of 2010 is not expected to continue in the second half of the year, as we will be cycling past the June 2009 price increases at The Times and the Globe and thus currently expect 3% to 5% declines in circulation revenues in the third quarter of 2010.

In addition, we are maintaining our focus on expense control. Operating costs declined 4.3% in the second quarter of 2010 and 11.7% in the first six months of 2010 compared with the same prior-year periods, primarily driven by newsprint expense and various other expense categories. While we will remain diligent in managing our operating expenses, our year-over-year cost trends will become more challenging in the second half of 2010, particularly in the third quarter, due to the impact of rising newsprint prices, the timing and level of variable compensation, the elimination of certain salary rollbacks, and increased promotional spending and other costs associated with the launch of the NYTimes.com pay model, while we also cycle past certain cost-saving initiatives in the third quarter of 2009.

Newsprint prices have increased as the year has progressed, such that we believe our newsprint price variance will become unfavorable on a year-over-year basis beginning in the third quarter of 2010. Accordingly, we expect that higher newsprint prices will negatively affect operating expenses by approximately $25 million for the second half of 2010, exclusive of the favorable impact on operating expenses of lower newsprint consumption. As a result, we expect higher year-over-year costs in the low- to mid-single digits in the third quarter of 2010, although we expect fourth-quarter costs to be comparable to the same period last year, despite significantly higher newsprint prices.

We have continued to manage our liquidity position. During the second quarter of 2010, strong cash flows from operations provided us with increased financial flexibility. We have reduced our debt and capital lease obligations, net of cash and cash equivalents, by approximately one third to $670 million from the balance at the beginning of 2009, even after making discretionary contributions totaling $87.5 million in the second quarter of 2010 to certain Company-sponsored qualified pension plans. The majority of our debt matures in 2015 or later.

18

2010 EXPECTATIONS

In addition, we expect the following on a pre-tax basis in 2010:

• Depreciation and amortization: $120 to $125 million,

• Capital expenditures: $45 to $55 million,

• Interest expense, net: $85 to $90 million, and

• Income from joint ventures: $5 to $10 million, excluding a gain of approximately $13 million (which includes our share of approximately $10 million) from the sale of an asset at one of the paper mills in which we have an investment.

19

RECENT DEVELOPMENTS

Impairment of Assets

We consolidated the Globe’s printing facility in Billerica, Mass., into the Boston, Mass., printing facility in the second quarter of 2009. After exploring different opportunities for the assets at Billerica, we determined in the third quarter of 2010 that the majority of these assets would be sold. In the third quarter of 2010, we expect to record an approximate $16 million charge for the write-down of these assets.

Gain on Sale of Investment

We sold 50 of our 750 units in NESV, resulting in a pre-tax gain of $9.1 million in the second quarter of 2010. Following the sale, our ownership interest in NESV is 16.57%. We intend to continue to explore the sale of our remaining interest in NESV, in whole or in parts.

Pension Contributions

In the second quarter of 2010, we made discretionary contributions of $87.5 million to certain Company-sponsored qualified pension plans. We may make additional discretionary contributions to our Company-sponsored qualified pension plans in 2010 depending on cash flows, pension asset performance, interest rates and other factors.

We also expect to make 2010 contributions of approximately $22 million (of which approximately $11 million was made in the first six months of 2010) to The New York Times Newspaper Guild pension plan, a joint Company and Guild-sponsored plan, based on our contractual obligations.

Amended Loan Issuance

In April 2010, we amended a 13% secured term loan made to a third-party service provider that provides us with circulation services, reducing the amount of the loan to $10 million and extending the maturity date for one year until April 2011. The service provider has granted a security interest in all of its assets to secure the payment of the loan due in April 2011. As of June 27, 2010, the amount outstanding under the loan was $9.6 million.

20

Health Care Legislation

The Patient Protection and Affordable Care Act, which was enacted on March 23, 2010, and the Health Care and Education Reconciliation Act of 2010, which was enacted on March 30, 2010, eliminated the tax deductibility of certain retiree health care costs, beginning January 1, 2013, to the extent of federal subsidies received by plan sponsors that provide retiree prescription drug benefits equivalent to Medicare Part D. Because the future anticipated retiree health care liabilities and related subsidies are already reflected in our financial statements, this legislation required us to reduce the related deferred tax asset recognized in our financial statements. As a result, we recorded a one-time income tax charge of $10.9 million in the first quarter of 2010 to reflect the impact of this legislation. In addition, based on our current evaluation of the effect of the legislation on our postretirement benefit plans, a remeasurement of our postretirement benefits obligation is not required at this time and the impact of the legislation will be included in our year-end measurement of our postretirement benefits obligation.

Gain on Sale of Asset

In the first quarter of 2010, we recorded a pre-tax gain of $12.7 million from the sale of an asset at one of the paper mills in which we have an investment. Our share of the pre-tax gain, after eliminating the noncontrolling interest portion, is $10.2 million. The $12.7 million gain is included within “Income from joint ventures” in the Condensed Consolidated Statements of Operations.

21

RESULTS OF OPERATIONS

The following table presents our consolidated financial results.

	For the Quarters Ended							For the Six Months Ended
(In thousands)	June 27, 2010		June 28, 2009			% Change		June 27, 2010			June 28, 2009			% Change
Revenues
Advertising	$	314,880	$	315,544		(0.2	)	$	627,538		$	648,382		(3.2	)
Circulation		234,808		227,476		3.2			471,671			456,390		3.3
Other		39,899		39,673		0.6			78,245			85,054		(8.0	)
Total revenues		589,587		582,693		1.2			1,177,454			1,189,826		(1.0	)
Operating costs
Production costs:
Raw materials		38,373		42,518		(9.7	)		75,391			98,448		(23.4	)
Wages and benefits		123,905		130,095		(4.8	)		252,438			275,192		(8.3	)
Other		74,524		80,476		(7.4	)		149,822			169,179		(11.4	)
Total production costs		236,802		253,089		(6.4	)		477,651			542,819		(12.0	)
Selling, general and administrative costs		261,633		264,886		(1.2	)		525,604			590,873		(11.0	)
Depreciation and amortization		30,327		34,391		(11.8	)		60,716			71,132		(14.6	)
Total operating costs		528,762		552,366		(4.3	)		1,063,971			1,204,824		(11.7	)
Loss on leases		—		—		N/A			—			16,363		N/A
Pension withdrawal and curtailment expense		—		6,845		N/A			—			6,845		N/A
Operating profit/(loss)		60,825		23,482		*			113,483			(38,206	)	*
Income from joint ventures		7,678		8,434		(9.0	)		16,789			12,837		30.8
Gain on sale of investment		9,128		—		N/A			9,128			—		N/A
Interest expense, net		20,614		21,656		(4.8	)		41,198			39,802		3.5
Premium on debt redemption		—		9,250		N/A			—			9,250		N/A
Income/(loss) from continuing operations before income taxes		57,017		1,010		*			98,202			(74,421	)	*
Income tax expense/(benefit)		25,435		(38,200	)	*			52,462			(39,371	)	*
Income/(loss) from continuing operations		31,582		39,210		(19.5	)		45,740			(35,050	)	*
Income from discontinued operations, net of income taxes		237		(86	)	*			237			(55	)	*
Net income/(loss)		31,819		39,124		(18.7	)		45,977			(35,105	)	*
Net loss/(income) attributable to the noncontrolling interest		214		(60	)	*			(1,151	)		(299	)	*
Net income/(loss) attributable to The New York Times Company common stockholders	$	32,033	$	39,064		(18.0	)	$	44,826		$	(35,404	)	*

* Represents an increase or decrease in excess of 100%.

Revenues

Revenues by reportable segment and for the Company as a whole were as follows:

	For the Quarters Ended					For the Six Months Ended
(In thousands)	June 27, 2010		June 28, 2009		% Change	June 27, 2010		June 28, 2009		% Change
Revenues:
News Media Group	$	555,898	$	555,548	0.1	$	1,109,067	$	1,135,841	(2.4	)
About Group		33,689		27,145	24.1		68,387		53,985	26.7
Total revenues	$	589,587	$	582,693	1.2	$	1,177,454	$	1,189,826	(1.0	)

22

News Media Group

Advertising, circulation and other revenues by operating segment of the News Media Group and for the Group as a whole were as follows:

	For the Quarters Ended						For the Six Months Ended
(In thousands)	June 27, 2010		June 28, 2009		% Change		June 27, 2010		June 28, 2009		% Change
The New York Times Media Group
Advertising	$	185,288	$	183,326	1.1		$	370,347	$	382,665	(3.2	)
Circulation		172,818		166,389	3.9			346,237		333,265	3.9
Other		22,463		23,326	(3.7	)		44,563		51,413	(13.3	)
Total	$	380,569	$	373,041	2.0		$	761,147	$	767,343	(0.8	)
New England Media Group
Advertising	$	53,310	$	58,678	(9.1	)	$	103,569	$	114,372	(9.4	)
Circulation		42,146		40,392	4.3			83,436		78,532	6.2
Other		10,894		10,346	5.3			20,858		20,997	(0.7	)
Total	$	106,350	$	109,416	(2.8	)	$	207,863	$	213,901	(2.8	)
Regional Media Group
Advertising	$	44,272	$	47,645	(7.1	)	$	88,532	$	100,012	(11.5	)
Circulation		19,844		20,695	(4.1	)		41,998		44,593	(5.8	)
Other		4,863		4,751	2.4			9,527		9,992	(4.7	)
Total	$	68,979	$	73,091	(5.6	)	$	140,057	$	154,597	(9.4	)
Total News Media Group
Advertising	$	282,870	$	289,649	(2.3	)	$	562,448	$	597,049	(5.8	)
Circulation		234,808		227,476	3.2			471,671		456,390	3.3
Other		38,220		38,423	(0.5	)		74,948		82,402	(9.0	)
Total	$	555,898	$	555,548	0.1		$	1,109,067	$	1,135,841	(2.4	)

Advertising Revenues

Advertising revenue is primarily determined by the volume, rate and mix of advertisements. Total News Media Group advertising revenues decreased in the second quarter and first six months of 2010 compared with the same prior-year periods primarily due to lower print volume across advertising categories. Print advertising revenues, which represented approximately 83% of total advertising revenues for the News Media Group, declined 6.1% in the second quarter, mainly due to retail advertising, and 9.3% in the first six months of 2010, mainly due to national and retail advertising, compared with the same prior-year periods. Online advertising revenues grew 19.8% in the second quarter and 15.5% in the first six months of 2010 compared with the respective 2009 periods, driven by growth in national advertising. While we experienced month-to-month volatility in the second quarter, advertising revenue trends improved relative to the first quarter of 2010 and in June advertising revenues grew across the News Media Group, mainly from national advertising. The News Media Group’s total advertising revenues, which declined 2.3% year-over-year in the second quarter of 2010, decreased 3.2% in April and 5.9% in May and grew 2.6% in June.

Advertising revenues (print and online) by category for the News Media Group were as follows:

	For the Quarters Ended						For the Six Months Ended
(In thousands)	June 27, 2010		June 28, 2009		% Change		June 27, 2010		June 28, 2009		% Change
National	$	156,239	$	150,395	3.9		$	315,107	$	319,473	(1.4	)
Retail		66,492		74,345	(10.6	)		130,193		145,946	(10.8	)
Classified		50,537		55,448	(8.9	)		99,141		113,239	(12.4	)
Other		9,602		9,461	1.5			18,007		18,391	(2.1	)
Total	$	282,870	$	289,649	(2.3	)	$	562,448	$	597,049	(5.8	)

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Below is a percentage breakdown of advertising revenues in the first six months of 2010 (print and online) by division.

					Classified
	National		Retail and Preprint		Help- Wanted		Real Estate		Auto- motive		Other		Total Classified		Other Advertising Revenue		Total
The New York Times Media Group	75	%	12	%	3	%	6	%	1	%	2	%	12	%	1	%	100	%
New England Media Group	30	%	31	%	6	%	7	%	8	%	8	%	29	%	10	%	100	%
Regional Media Group	5	%	59	%	5	%	7	%	8	%	10	%	30	%	6	%	100	%
Total News Media Group	56	%	23	%	3	%	6	%	4	%	5	%	18	%	3	%	100	%

The New York Times Media Group

Total advertising revenues increased in the second quarter of 2010 versus the same period in 2009 as strong growth in online display advertising, primarily in the national category, offset declines in print advertising. Total advertising revenues declined in the first six months of 2010 compared with the same period in 2009 primarily due to lower print advertising, particularly in the national category, offset in part by higher online national advertising revenues.

National advertising revenues increased in the second quarter of 2010 versus the second quarter of 2009 mainly because of higher online advertising revenues resulting from growth in categories such as financial services, corporate and media. Print national advertising was flat in the 2010 second quarter versus the 2009 second quarter. National advertising revenues were flat in the first six months of 2010 compared with the same period in 2009 primarily because lower print advertising revenues were partially offset by higher online advertising. National print advertising was negatively affected by declines primarily in the studio entertainment category. Increased spending in the media, financial services and American fashion categories contributed to growth in online advertising in the first six months of 2010.

Soft economic conditions continue to negatively affect retail advertising, which decreased in the second quarter and first six months of 2010 compared with the same periods in 2009, mainly due to lower volume in various print advertising categories, such as mass market.

Classified advertising decreased in all three major categories (real estate, help-wanted and automotive) in the second quarter and first six months of 2010 compared with the same periods in 2009 due to soft economic conditions. However, the rate of decline for help-wanted advertising lessened as the second quarter of 2010 progressed and grew in June.

New England Media Group

Total advertising revenues declined in the second quarter and first six months of 2010 compared with the same prior-year periods due to declines in print advertising revenue, partially offset by growth in online advertising. Retail, national and classified advertising revenues declined in the second quarter and first six months of 2010 compared with the same periods in 2009, mainly due to lower volume in various print advertising categories. While the real estate and automotive categories of classified advertising experienced declines in the second quarter and first six months of 2010, help-wanted classified advertising had consistently positive performance throughout the second quarter, ending with strong growth in June.

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Regional Media Group

Total advertising revenues declined in the second quarter and first six months of 2010 compared with the same prior-year periods primarily due to declines in retail and classified categories. Soft economic conditions continued to contribute to declines in the retail sector. While the real estate and automotive categories of classified advertising experienced declines in the second quarter and first six months of 2010, the improving advertising revenue trends we experienced in help-wanted advertising in the first quarter continued in the second quarter, ending with gains in May and June of 2010.

Circulation Revenues

Circulation revenue is based on the number of copies sold and the subscription and newsstand rates charged to customers. Our newspapers have been executing a circulation strategy of reducing less profitable circulation and raising circulation prices. As we execute this strategy, we are seeing circulation declines but have realized, and believe we will continue to realize, significant benefits in reduced costs and improved circulation profitability.

Circulation revenues in the second quarter and first six months of 2010 increased compared with the same periods in 2009 mainly because of higher subscription and newsstand prices, offset in part by volume declines across the News Media Group. In the second quarter of 2009, both The Times and the Globe increased subscription and newsstand prices.

Other Revenues

Other revenues were flat in the second quarter and decreased in the first six months of 2010 compared with the same periods in 2009 primarily because of lower commercial printing and digital archive revenues and the closure of City & Suburban, Inc. (“City & Suburban”), our subsidiary that operated a wholesale distribution business that delivered The Times and other newspapers and magazines to newsstands and retail outlets in the New York metropolitan area, which was closed in early January 2009.

About Group

About Group revenues increased 24.1% in the 2010 second quarter versus the 2009 second quarter due to higher display and cost-per-click advertising and increased 26.7% in the first six months of 2010 compared with the same period in 2009 because of higher cost-per-click and display advertising.

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Operating Costs

Operating costs were as follows:

	For the Quarters Ended						For the Six Months Ended
(In thousands)	June 27, 2010		June 28, 2009		% Change		June 27, 2010		June 28, 2009		% Change
Operating costs
Production costs:
Raw materials	$	38,373	$	42,518	(9.7	)	$	75,391	$	98,448	(23.4	)
Wages and benefits		123,905		130,095	(4.8	)		252,438		275,192	(8.3	)
Other		74,524		80,476	(7.4	)		149,822		169,179	(11.4	)
Total production costs		236,802		253,089	(6.4	)		477,651		542,819	(12.0	)
Selling, general and administrative costs		261,633		264,886	(1.2	)		525,604		590,873	(11.0	)
Depreciation and amortization		30,327		34,391	(11.8	)		60,716		71,132	(14.6	)
Total operating costs	$	528,762	$	552,366	(4.3	)	$	1,063,971	$	1,204,824	(11.7	)

Production Costs

Production costs declined in the second quarter and first six months of 2010 compared with the same periods in 2009 primarily due to lower compensation costs and raw materials expense. Compensation costs were lower by approximately $6 million in the second quarter and $23 million in the first six months of 2010, compared with the same periods in 2009, reflecting the impact of a reduced workforce and cost-saving initiatives. Raw materials expense declined approximately $4 million in the second quarter and $23 million in the first six months of 2010, compared with the same prior-year periods, primarily in newsprint.

In the second quarter of 2010, newsprint expense declined 15.1%, with 8.3% from lower consumption and 6.8% from lower pricing. In the first six months of 2010, newsprint expense declined 27.4%, with 17.2% from lower pricing and 10.2% from lower consumption.

Selling, General and Administrative Costs

Selling, general and administrative costs decreased in the second quarter of 2010 compared with the same period last year. An increase in compensation costs of approximately $9 million, driven by variable compensation, was more than offset by a decline in various expenses, primarily lower bad debt expense, by approximately $5 million, as economic conditions improved during 2010.

Selling, general and administrative costs decreased in the first six months of 2010 compared with the same period in 2009 primarily as a result of lower severance costs, bad debt expense and various other expenses. Severance costs decreased by approximately $25 million due to the timing of workforce reduction programs. Bad debt expense was lower by approximately $10 million as economic conditions improved during 2010. We reduced various other expenses as a result of cost-saving initiatives.

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Depreciation and Amortization

Total depreciation and amortization, by reportable segment and for the Company as a whole, was as follows:

	For the Quarters Ended						For the Six Months Ended
(In thousands)	June 27, 2010		June 28, 2009		% Change		June 27, 2010		June 28, 2009		% Change
Depreciation and amortization:
News Media Group	$	27,492	$	31,600	(13.0	)	$	54,964	$	65,559	(16.2	)
About Group		2,835		2,791	1.6			5,752		5,573	3.2
Total depreciation and amortization	$	30,327	$	34,391	(11.8	)	$	60,716	$	71,132	(14.6	)

Depreciation and amortization at the News Media Group decreased in the second quarter and first six months of 2010 compared with the same periods in 2009 primarily due to the accelerated depreciation expense recognized in 2009 for assets at the Billerica, Mass., printing facility. We completed the consolidation of this printing facility with the Globe’s printing facility in Boston, Mass., in the second quarter of 2009.

Segment Operating Costs

The following table sets forth consolidated operating costs by reportable segment, Corporate and the Company as a whole.

	For the Quarters Ended						For the Six Months Ended
(In thousands)	June 27, 2010		June 28, 2009		% Change		June 27, 2010		June 28, 2009		% Change
Operating costs:
News Media Group	$	501,501	$	527,669	(5.0	)	$	1,006,199	$	1,145,945	(12.2	)
About Group		18,343		16,915	8.4			36,481		34,804	4.8
Corporate		8,918		7,782	14.6			21,291		24,075	(11.6	)
Total operating costs	$	528,762	$	552,366	(4.3	)	$	1,063,971	$	1,204,824	(11.7	)

News Media Group

Operating costs for the News Media Group decreased in the second quarter of 2010 compared with the 2009 second quarter primarily due to lower outside printing and distribution costs, bad debt, raw materials and depreciation expense. Outside printing and distribution costs decreased by approximately $6 million driven by cost-saving initiatives. Bad debt expense was lower by approximately $5 million as economic conditions improved in 2010. Raw materials expense declined approximately $4 million, primarily in newsprint, which was driven by lower consumption and pricing. Depreciation expense declined approximately $4 million primarily due to the accelerated depreciation expense recognized in 2009 for assets at the Billerica, Mass., printing facility.

Operating costs for the News Media Group decreased in the first six months of 2010 compared with the same period in 2009 primarily driven by lower compensation costs, severance, raw materials and various other costs. Compensation costs were lower by approximately $24 million driven by a reduced workforce and cost-saving initiatives. Severance costs declined by approximately $24 million driven by the timing of workforce reduction programs. Raw materials expense declined approximately $23 million, primarily in newsprint, as a result of lower pricing and consumption. We reduced various other expenses as a result of cost-saving initiatives.

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About Group

Operating costs for the About Group increased in the second quarter and in the first six months of 2010 compared with the same periods last year driven by higher compensation costs (approximately $1 million in the second quarter and first six months of 2010) and marketing expenses.

Corporate

Operating costs for Corporate increased in the second quarter of 2010 primarily because the prior-year second quarter included a one-time benefit from the sale of an asset of approximately $1.8 million. Operating costs decreased in the first six months compared with the first six months of 2009 mainly because of lower professional fees of approximately $3 million.

Other Items

Pension withdrawal and curtailment expense

In the second quarter of 2009, we recorded a $6.8 million charge for a pension withdrawal obligation under a multi-employer pension plan related to the closure of City & Suburban as well as a curtailment charge resulting from freezing benefits under a Company-sponsored pension plan.

Loss on leases

In the first quarter of 2009, we recorded an estimated loss of $16.4 million for the present value of remaining rental payments under leases in excess of estimated rental income under potential subleases at City & Suburban. This loss was updated in the fourth quarter of 2009, which resulted in an additional charge of $6.5 million.

Operating Profit/(Loss)

Consolidated operating profit/(loss), by reportable segment, Corporate and for the Company as a whole, were as follows:

	For the Quarters Ended							For the Six Months Ended
(In thousands)	June 27, 2010			June 28, 2009			% Change	June 27, 2010			June 28, 2009			% Change
Operating profit/(loss):
News Media Group	$	54,397		$	21,034		*	$	102,868		$	(33,312	)	*
About Group		15,346			10,230		50.0		31,906			19,181		66.3
Corporate		(8,918	)		(7,782	)	14.6		(21,291	)		(24,075	)	(11.6	)
Total operating profit/(loss)	$	60,825		$	23,482		*	$	113,483		$	(38,206	)	*

* Represents an increase in excess of 100%.

The reasons underlying the period-to-period changes in each segment’s and Corporate’s operating profit/(loss) are previously discussed under “Revenues,” “Operating Costs” and “Other Items.”

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Non-Operating Items

Joint Ventures

Income from joint ventures was $7.7 million in the second quarter of 2010 compared with $8.4 million in the 2009 second quarter. In the first six months of 2010, income from joint ventures was $16.8 million compared with $12.8 million in the same period last year. The first quarter of 2010 included a $12.7 million pre-tax gain on the sale of an asset at one of the paper mills in which we have an investment. Excluding this gain, income from joint ventures declined in the second quarter and first six months of 2010 compared with the same periods in 2009 due to lower paper selling prices at both paper mills in which we have investments.

In addition, see the “Recent Developments” section for information on the sale of a portion of our interest in NESV, resulting in a pre-tax gain of $9.1 million in the second quarter of 2010.

Interest Expense, Net

“Interest expense, net” in our Condensed Consolidated Statements of Operations was as follows:

	For the Quarters Ended						For the Six Months Ended
(In thousands)	June 27, 2010			June 28, 2009			June 27, 2010			June 28, 2009
Interest expense, net:
Cash interest expense	$	19,052		$	19,708		$	38,012		$	36,394
Non-cash amortization of discount on debt		1,937			2,628			3,941			4,928
Capitalized interest		(20	)		(360	)		(20	)		(1,089	)
Interest income		(355	)		(320	)		(735	)		(431	)
Total interest expense, net	$	20,614		$	21,656		$	41,198		$	39,802

Interest expense, net decreased in the second quarter of 2010 compared with the 2009 second quarter as a result of lower average debt outstanding, offset in part by higher interest rates on our debt.

Interest expense, net increased in the first six months of 2010 compared with the same period in 2009 as a result of higher interest rates on our debt, offset in part by lower average debt outstanding.

Income Taxes

Our effective income tax rate was 44.6% in the second quarter of 2010. The effective tax rate for the first half of 2010 was 53.4%, primarily because of a $10.9 million one-time tax charge for the reduction in future tax benefits for certain retiree health benefits resulting from the federal health care legislation enacted in the first quarter of 2010.

In the second quarter of 2009, our calculation of taxes resulted in a change in the estimate for the first half of 2009. The effect of the change in the second quarter of 2009 was the recognition of a $37.7 million tax benefit. The tax benefit for the first half of 2009 had an effective tax rate of 52.9%, primarily because of a $19.2 million favorable adjustment to reduce our reserve for uncertain tax positions because statutes of limitations lapsed.

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Discontinued Operations

The results of operations for WQXR-FM, a New York City classical radio station, which was sold in October 2009, are presented as discontinued operations. We received proceeds related to the sale of approximately $45 million and recorded a pre-tax gain of approximately $35 million (approximately $19 million after tax) in the fourth quarter of 2009. In the second quarter of 2010, we had net income from discontinued operations of $0.2 million as a result of changes to certain estimates included in the gain on the sale.

The results of operations for WQXR-FM presented as discontinued operations are summarized below.

	For the Quarters Ended					For the Six Months Ended
(In thousands)	June 27, 2010		June 28, 2009			June 27, 2010		June 28, 2009
Revenues	$	—	$	1,792		$	—	$	3,681
Total operating costs		—		1,943			—		3,778
Pre-tax loss		—		(151	)		—		(97	)
Income tax benefit		—		(65	)		—		(42	)
Loss from discontinued operations, net of income taxes		—		(86	)		—		(55	)
Gain on sale, net of income taxes:
Gain on sale		410		—			410		—
Income tax expense		173		—			173		—
Gain on sale, net of income taxes		237		—			237		—
Income/(loss) from discontinued operations, net of income taxes	$	237	$	(86	)	$	237	$	(55	)

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LIQUIDITY AND CAPITAL RESOURCES

In 2010, we expect our cash balance, cash provided from operations, and third-party financing to be sufficient to meet our cash obligations. We have continued to manage our liquidity position. During the second quarter of 2010, strong cash flows from operations provided us with increased financial flexibility. As of June 27, 2010, our cash and cash equivalents were approximately $102 million. We have also reduced our debt and capital lease obligations, net of cash and cash equivalents, by approximately one third to $670 million from the balance at the beginning of 2009, even after making discretionary contributions totaling $87.5 million in the second quarter of 2010 to certain Company-sponsored qualified pension plans. The majority of our debt matures in 2015 or later.

Contributions to our qualified pension plans can have a significant impact on cash flows. See the “Recent Developments” section for more information.

Capital Resources

Sources and Uses of Cash

Cash flows provided by/(used in) by category were as follows:

	For the Six Months Ended
(In thousands)	June 27, 2010		June 28, 2009
Operating Activities	$	60,592	$	52,384
Investing Activities	$	5,591	$	(34,418	)
Financing Activities	$	700	$	(38,441	)

Operating Activities

Operating cash inflows include cash receipts from advertising and circulation sales and other revenue transactions. Operating cash outflows include payments for employee compensation, pension and other benefits, raw materials, services and supplies, interest and income taxes.

Net cash provided by operating activities increased in the first six months of 2010 compared with the same prior-year period, primarily driven by improved operating performance as a result of our cost-saving initiatives in recent years, partially offset by discretionary contributions totaling $87.5 million to certain Company-sponsored qualified pension plans.

Investing Activities

Cash from investing activities generally includes proceeds from the sale of assets or a business. Cash used in investing activities generally includes payments for capital projects, acquisitions of new businesses and equity investments.

In the first six months of 2010, net cash provided by investing activities was primarily from the sale of 50 of our 750 units in NESV, offset in part by capital expenditures. In the first six months of 2009, net cash used in investing activities was primarily due to capital expenditures related to costs associated with our New York City headquarters and the loan issued to a third-party circulation service provider in 2009, partially offset by the sale of assets.

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Financing Activities

Cash from financing activities generally includes borrowings under third-party financing arrangements, the issuance of long-term debt and funds from stock option exercises. Cash used in financing activities generally includes the repayment of amounts outstanding under third-party financing arrangements and long-term debt.

In the first six months of 2010, net cash provided by financing activities was primarily from stock option exercises. In the first six months of 2009, net cash used in financing activities consisted mainly of repayments in connection with the redemption of our notes due March 15, 2010, repayments under our revolving credit agreements and the repurchase of medium-term notes, partially offset by debt incurred under the issuance of senior unsecured notes and a sale-leaseback financing of a portion of our New York headquarters.

See our Condensed Consolidated Statements of Cash Flows for additional information on our sources and uses of cash.

Third-Party Financing

Our current indebtedness includes a private financing arrangement with Inmobiliaria Carso, S.A. de C.V. and Banco Inbursa S.A., Institución de Banca Múltiple, Grupo Financiero Inbursa; a sale lease-back of a portion of our New York headquarters; and publicly-issued senior notes. Our total debt consists of the following:

(In thousands)	June 27, 2010		December 27, 2009
4.610% senior notes due in 2012	$	74,708	$	74,646
5.0% senior notes due in 2015		249,845		249,831
14.053% senior notes due in 2015		225,840		224,149
Option to repurchase ownership interest in headquarters building in 2019		215,562		213,839
Total debt		765,955		762,465
Capital lease obligations		6,737		6,752
Total debt and capital lease obligations	$	772,692	$	769,217

Based on borrowing rates currently available for debt with similar terms and average maturities, the fair value of our debt was approximately $885 million as of June 27, 2010.

Our $400.0 million revolving credit agreement expiring in June 2011 is used for general corporate purposes and provides a facility for the issuance of letters of credit. As of June 27, 2010, excluding letters of credit of approximately $62 million, there were no outstanding borrowings under our revolving credit facility.

The revolving credit agreement contains a covenant that requires a specified level of stockholders’ equity, which as defined by the agreement does not include accumulated other comprehensive loss and excludes the impact of one-time non-cash charges. The required level of stockholders’ equity (as defined) is the sum of $950.0 million plus an amount equal to 25% of net income for each fiscal year ending after December 28, 2003, when net income exists. As of June 27, 2010, the amount of stockholders’ equity (as defined) in excess of the required level was approximately $719 million, which excludes the impact of non-cash impairment charges incurred in 2006, 2007 and 2008 that together aggregated approximately $878 million.

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In addition, as of June 27, 2010, we were in compliance with all of our covenants under our other third-party financing arrangements.

Ratings

In July 2010, Standard & Poor’s raised its rating on our senior unsecured debt to B+ with a stable outlook.

RECENT ACCOUNTING PRONOUNCEMENTS

In October 2009, the Financial Accounting Standards Board issued new guidance which amended previous guidance related to the accounting for revenue arrangements with multiple deliverables. The guidance specifically addressed how consideration should be allocated to the separate units of accounting. The guidance is effective for fiscal years beginning on or after June 15, 2010, and will apply to our 2011 fiscal year. The guidance can be applied prospectively to new or materially modified arrangements after the effective date or retrospectively for all periods presented, and early application is permitted. While we continue to evaluate this guidance, we do not believe the adoption will have a material impact on our financial statements.

CRITICAL ACCOUNTING POLICIES

Our critical accounting policies are detailed in our Annual Report on Form 10-K for the year ended December 27, 2009. As of June 27, 2010, our critical accounting policies have not changed materially from December 27, 2009.

CONTRACTUAL OBLIGATIONS & OFF-BALANCE SHEET ARRANGEMENTS

Our contractual obligations and off-balance sheet arrangements are detailed in our Annual Report on Form 10-K for the year ended December 27, 2009. As of June 27, 2010, our contractual obligations and off-balance sheet arrangements have not materially changed from December 27, 2009.

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q, including the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” contains forward-looking statements that relate to future events or our future financial performance. We may also make written and oral forward-looking statements in our SEC filings and otherwise. We have tried, where possible, to identify such statements by using words such as “believe,” “expect,” “intend,” “estimate,” “anticipate,” “will,” “project,” “plan” and similar expressions in connection with any discussion of future operating or financial performance. Any forward-looking statements are and will be based upon our then-current expectations, estimates and assumptions regarding future events and are applicable only as of the dates of such statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated in any such statements. You should bear this in mind as you consider forward-looking statements. Factors that we think could, individually or in the aggregate, cause our actual results to differ materially from expected and historical results include those described in our Annual Report on Form 10-K for the year ended December 27, 2009, as well as other risks and factors identified from time to time in our SEC filings.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Our Annual Report on Form 10-K for the year ended December 27, 2009, details our disclosures about market risk. As of June 27, 2010, there were no material changes in our market risks from December 27, 2009.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Janet L. Robinson, our Chief Executive Officer, and James M. Follo, our Chief Financial Officer, have evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934) as of June 27, 2010. Based on such evaluation, Ms. Robinson and Mr. Follo concluded that our disclosure controls and procedures were effective to ensure that the information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1A. Risk Factors

There have been no material changes to our risk factors as set forth in “Item 1A-Risk Factors” in our Annual Report on Form 10-K for the year ended December 27, 2009.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a) Unregistered Sales of Equity Securities

On April 7, 2010, we issued 3,500 shares of Class A Common Stock to holders of Class B Common Stock upon the conversion of such Class B shares into Class A shares. The conversions, which were in accordance with our Certificate of Incorporation, did not involve a public offering and were exempt from registration pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended.

(c) Issuer Purchases of Equity Securities⁽¹⁾

Period	(a) Total  Number of Shares of Class A Common Stock Purchased	(b) Average Price Paid Per Share of Class A Common Stock	(c) Total Number  of Shares of Class A Common Stock Purchased as Part of Publicly Announced Plans or Programs	(d) Maximum Number  (or Approximate Dollar Value) of Shares of Class A Common Stock that May Yet Be Purchased Under the Plans or Programs
March 29, 2010 – May 2, 2010	—	—	—	$	91,386,000
May 3, 2010 – May 30, 2010	—	—	—	$	91,386,000
May 31, 2010 – June 27, 2010	—	—	—	$	91,386,000
Total for the second quarter of 2010	—	—	—	$	91,386,000

(1) On April 13, 2004, our Board of Directors authorized repurchases in an amount up to $400.0 million. During the second quarter of 2010, we did not purchase any shares of Class A Common Stock pursuant to our publicly announced share repurchase program. As of July 30, 2010, we had authorization from the Board to repurchase an amount of up to approximately $91 million of our Class A Common Stock. The Board has authorized us to purchase shares from time to time as market conditions permit. There is no expiration date with respect to this authorization.

Item 6. Exhibits

An exhibit index has been filed as part of this Quarterly Report on Form 10-Q and is incorporated herein by reference.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	THE NEW YORK TIMES COMPANY
	(Registrant)
Date: August 5, 2010	/S/    JAMES M. FOLLO
	James M. Follo
	Senior Vice President and
	Chief Financial Officer
	(Principal Financial Officer)

36

Exhibit Index to Quarterly Report on Form 10-Q

For the Quarter Ended June 27, 2010

Exhibit No.
Exhibits 10.2 through 10.4 are compensatory plans or arrangements.
10.1	The New York Times Company 2010 Incentive Compensation Plan (filed as an Exhibit to the Company’s Form 8-K dated April 28, 2010, and incorporated by reference herein).
10.2	Amendment No. 2 to The New York Times Company Deferred Executive Compensation Plan, amended effective April 27, 2010.
10.3	Amendment to The New York Times Company Supplemental Executive Retirement Plan, amended effective April 27, 2010.
10.4	Amendment to The New York Times Company Supplemental Executive Savings Plan, amended effective April 27, 2010.
12	Ratio of Earnings to Fixed Charges.
31.1	Rule 13a-14(a)/15d-14(a) Certification.
31.2	Rule 13a-14(a)/15d-14(a) Certification.
32.1	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase
101.DEF*	XBRL Taxonomy Extension Definition Linkbase
101.LAB*	XBRL Taxonomy Extension Label Linkbase
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase

* Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

EX-10.2

Exhibit 10.2

THE NEW YORK TIMES COMPANY

DEFERRED EXECUTIVE COMPENSATION PLAN

AMENDMENT No. 2

THIS INSTRUMENT made as of the 10^th day of June, 2010, by the ERISA Management Committee (the “Committee”) of The New York Times Company (the “Company”).

W I T N E S S E T H

WHEREAS, the Company maintains The New York Times Company Deferred Executive Compensation Plan, as amended from time to time (the “Plan”), for the benefit of its eligible employees; and

WHEREAS, pursuant to Section 9.1 of the Plan, the Company is authorized to amend the Plan by an action of the Committee; and

WHEREAS, the Committee desires to amend the Plan, effective April 27, 2010, to reflect the Company’s adoption of The New York Times Company 2010 Incentive Compensation Plan;

NOW, THEREFORE, the Plan is hereby amended, effective April 27, 2010, as follows:

1. Section 1.3, “History of the Plan,” is hereby amended by adding the following sentence to the end thereof:

“Effective April 27, 2010, the Plan was amended to reflect the Company’s adoption of The New York Times Company 2010 Incentive Compensation Plan.”

2. Section 2.5, “Compensation,” is hereby amended by inserting a reference to the 2010 Incentive Compensation Plan in the first sentence thereof as follows:

“Compensation means the annual bonus, amounts paid under The Advertising and Circulation Sales Incentive Plan, the Long-Term Performance Awards under The New York Times Company 1991 Executive Cash Bonus Plan, the 1991 Executive Stock Incentive Plan and the 2010 Incentive Compensation Plan, any Discretionary Bonuses and the base salary (including bonuses in lieu of salary increases) of a Participant.”

3. Section 4.1, “Elective Deferrals” is hereby amended by inserting a reference to the 2010 Incentive Compensation Plan in the third sentence of the fourth paragraph thereof as follows:

“Notwithstanding the foregoing, (i) the annual enrollment period for Plan Year 2005 may end no later than March 15, 2005, (ii) the annual enrollment period for an individual who first becomes an Eligible Employee during a Plan Year may end no later than 30 days after the date the individual became an Eligible Employee, and (iii) the annual enrollment period for deferrals of Long-Term Performance Awards under The New York Times Company 1991 Executive Cash Bonus Plan, the 1991 Executive Stock Incentive Plan and the 2010 Incentive Compensation Plan may end no later than six months prior to the end of the applicable performance cycle; provided, however, that in the case of (i) and (ii) above, any Elective Deferral made after the start of a Plan Year may pertain only to Compensation that has not already been paid or become payable as of the date the deferral election is made, as determined in accordance with the requirements of Section 409A of the Code, and in the case of (iii) above, as of the date the deferral election is made the Long Term Performance Award being deferred is not substantially certain to be paid and the amount of the Award is not readily ascertainable.”

4. Appendix A, “Limit on Elective Deferrals,” is hereby amended by inserting a reference to the 2010 Incentive Compensation Plan in the first sentence of the fourth paragraph thereof as follows:

“For the 2001 Plan Year and until changed by the Committee, a Participant may defer up to 85% of his/her annual bonus, up to 100% of amounts paid under The Advertising and Circulation Sales Incentive Plan, up to 100% of his/her Long-Term Performance Awards under The New York Times Company 1991 Executive Cash Bonus Plan or under the 2010 Incentive Compensation Plan and up to 33% of his/her base salary.”

2

IN WITNESS WHEREOF, the Committee has caused this amendment to be executed by a duly authorized member as of the date first set forth above.

ERISA MANAGEMENT COMMITTEE
By:	/s/ R. Anthony Benten
	R. Anthony Benten Chairman

3

EX-10.3

Exhibit 10.3

THE NEW YORK TIMES COMPANY

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

AMENDMENT

THIS INSTRUMENT made as of the 10^th day of June, 2010 by the ERISA Management Committee (the “Committee”) of The New York Times Company (the “Company”).

W I T N E S S E T H

WHEREAS, the Company maintains The New York Times Company Supplemental Executive Retirement Plan, as amended from time to time (the “Plan”), for the benefit of its eligible employees; and

WHEREAS, pursuant to Section 7.2 of the Plan, the Committee is authorized to adopt administrative amendments that do not result in a change of benefits; and

WHEREAS, the Committee desires to amend the Plan, effective April 27, 2010, to reflect the Company’s adoption of The New York Times Company 2010 Incentive Compensation Plan;

NOW, THEREFORE, the Plan is hereby amended, effective April 27, 2010, as follows:

1. Section 1.7, “Final Average Earnings,” is hereby amended by inserting a reference to the 2010 Incentive Compensation Plan in the second sentence thereof as follows:

““Earnings” for any calendar year shall include the Participant’s base salary, annual cash bonuses and sales commissions paid during such year, and shall exclude any other compensation (such as deferred incentive compensation under the Long-Term Incentive Plan, retirement units and performance awards (other than annual cash bonuses) under the Executive Incentive Award Plan, the 1991 Executive Stock Incentive Plan, the 1991 Executive Cash Bonus Plan, the 2010 Incentive Compensation Plan and any successor plans and stock options under the

1974 Incentive Stock Option Plan, the Employee Stock Purchase Plan, the 1991 Executive Stock Incentive Plan, the 2010 Incentive Compensation Plan and any successor plans) and any contributions to or benefits under this Plan or any other pension, profit-sharing, stock bonus or other plan of deferred compensation; except that amounts deferred under a non-qualified deferred compensation plan and/or amounts which the Company contributes to a plan on behalf of the Participant pursuant to a salary reduction agreement which are not includible in the Participant’s gross income under sections 125, 402(e)(3), 492(h) or 403(b) of the Code shall be included.”

IN WITNESS WHEREOF, the Committee has caused this amendment to be executed by a duly authorized member as of the date first set forth above.

ERISA MANAGEMENT COMMITTEE
By:	/s/ R. Anthony Benten
	R. Anthony Benten Chairman

2

EX-10.4

Exhibit 10.4

THE NEW YORK TIMES COMPANY

SUPPLEMENTAL EXECUTIVE SAVINGS PLAN

AMENDMENT

THIS INSTRUMENT made as of the 10^th day of June, 2010, by the ERISA Management Committee (the “Committee”) of The New York Times Company (the “Company”).

W I T N E S S E T H

WHEREAS, the Company maintains The New York Times Company Supplemental Executive Savings Plan, as amended from time to time (the “Plan”), for the benefit of its eligible employees; and

WHEREAS, pursuant to Section 7.2 of the Plan, the Committee is authorized to adopt administrative amendments that do not result in a change of benefits; and

WHEREAS, the Committee desires to amend the Plan, effective April 27, 2010, to reflect the Company’s adoption of The New York Times Company 2010 Incentive Compensation Plan;

NOW, THEREFORE, the Plan is hereby amended, effective April 27, 2010, as follows:

1. Section 1.8, “Compensation,” is hereby amended by inserting a reference to the 2010 Incentive Compensation Plan as follows:

““Compensation” for any calendar year shall include the Participant’s base salary, annual cash bonuses and sales commissions paid during such year, and shall exclude any other compensation (such as deferred incentive compensation, other than annual cash bonuses, under the Long-Term Incentive Plan, retirement units and performance awards under the Executive Incentive Award Plan, the 1991 Executive Stock Incentive Plan, the 1991 Executive Cash Bonus Plan, the 2010 Incentive Compensation

Plan and any successor plans, and stock options under the 1974 Incentive Stock Option Plan, the Employee Stock Purchase Plan, the 1991 Executive Stock Incentive Plan, the 2010 Incentive Compensation Plan and any successor plans), and any contributions to or benefits under this Plan or any other pension, profit-sharing, stock bonus or other plan of deferred compensation; except that amounts deferred under a non-qualified deferred compensation plan and/or amounts which the Company contributes to a plan on behalf of the Participant pursuant to a salary reduction agreement which are not includible in the Participant’s gross income under sections 125, 402(e)(3), 492(h) or 403(b) of the Code shall be included.”

IN WITNESS WHEREOF, the Committee has caused this amendment to be executed by a duly authorized member as of the date first set forth above.

ERISA MANAGEMENT COMMITTEE
By:	/s/ R. Anthony Benten
	R. Anthony Benten Chairman

2

EX-12

EXHIBIT 12

THE NEW YORK TIMES COMPANY

Ratio of Earnings to Fixed Charges

(Unaudited)

	For the Six  Months Ended June 27, 2010		For the Years Ended
(In thousands, except ratios)			December 27, 2009			December 28, 2008			December 30, 2007		December 31, 2006			December 25, 2005
Earnings/(loss) from continuing operations before fixed charges
Income/(loss) from continuing operations before income taxes, adjustments for noncontrolling interest and income/(loss) from joint ventures	$	81,413	$	(16,892	)	$	(88,981	)	$	146,728	$	(577,550	)	$	390,772
Distributed earnings from less than fifty- percent owned affiliates		3,075		2,775			35,733			7,979		13,375			9,132
Adjusted pre-tax earnings/(loss) from continuing operations		84,488		(14,117	)		(53,248	)		154,707		(564,175	)		399,904
Fixed charges less capitalized interest		45,283		88,608			55,038			49,228		68,747			64,211
Earnings/(loss) from continuing operations before fixed charges	$	129,771	$	74,491		$	1,790		$	203,935	$	(495,428	)	$	464,115
Fixed charges
Interest expense, net of capitalized interest(1)	$	41,933	$	83,124		$	48,191		$	43,228	$	58,581		$	53,630
Capitalized interest		20		1,566			2,639			15,821		14,931			11,155
Portion of rentals representative of interest factor		3,350		5,484			6,847			6,000		10,166			10,581
Total fixed charges	$	45,303	$	90,174		$	57,677		$	65,049	$	83,678		$	75,366
Ratio of earnings to fixed charges(2)		2.86		—			—			3.14		—			6.16

Note: The Ratio of Earnings to Fixed Charges should be read in conjunction with this Quarterly Report on Form 10-Q, as well as The New York Times Company’s (the “Company”) Annual Report on Form 10-K for the year ended December 27, 2009.

(1) The Company’s policy is to classify interest expense recognized on uncertain tax positions as income tax expense. The Company has excluded interest expense recognized on uncertain tax positions from the Ratio of Earnings to Fixed Charges.

(2) In 2009, 2008 and 2006, earnings were inadequate to cover fixed charges because of certain charges recorded in the respective year.

EX-31.1

EXHIBIT 31.1

Rule 13a-14(a)/15d-14(a) Certification

I, Janet L. Robinson, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of The New York Times Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 5, 2010	/s/ JANET L. ROBINSON
	Janet L. Robinson
	Chief Executive Officer

EX-31.2

EXHIBIT 31.2

Rule 13a-14(a)/15d-14(a) Certification

I, James M. Follo, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of The New York Times Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 5, 2010	/s/ JAMES M. FOLLO
	James M. Follo
	Chief Financial Officer

EX-32.1

EXHIBIT 32.1

Certification pursuant to

18 U.S.C. Section 1350,

as adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of The New York Times Company (the “Company”) for the quarter ended June 27, 2010, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Janet L. Robinson, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, based on my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ JANET L. ROBINSON

Janet L. Robinson

Chief Executive Officer

August 5, 2010

EX-32.2

EXHIBIT 32.2

Certification pursuant to

18 U.S.C. Section 1350,

as adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of The New York Times Company (the “Company”) for the quarter ended June 27, 2010, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, James M. Follo, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, based on my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ JAMES M. FOLLO

James M. Follo

Chief Financial Officer

August 5, 2010