10-Q 1 nyt10-q6302013.htm FORM 10-Q NYT 10-Q 6.30.2013


 
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 30, 2013
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   o
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  o
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  o
 
Non-accelerated filer  o 
 
Smaller reporting company  o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes   o     No  x
Number of shares of each class of the registrant’s common stock outstanding as of August 2, 2013 (exclusive of treasury shares): 
Class A Common Stock
  
 
148,633,764

  shares
Class B Common Stock
  
 
818,061

  shares
 






THE NEW YORK TIMES COMPANY
INDEX

 
 
ITEM NO.
 
 
 
 
 
Financial Information
 
Item
 
Financial Statements
 
 
 
 
Condensed Consolidated Balance Sheets as of June 30, 2013 (unaudited) and December 30, 2012
 
 
 
 
Condensed Consolidated Statements of Operations (unaudited) for the quarter and six months ended June 30, 2013 and June 24, 2012
 
 
 
 
Consolidated Statements of Comprehensive Income/(Loss) (unaudited) for the quarter and six months ended June 30, 2013 and June 24, 2012
 
 
 
 
Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2013 and June 24, 2012
 
 
 
 
Notes to the Condensed Consolidated Financial Statements
 
Item
 
Management’s Discussion and Analysis of Financial Condition and Results of Operations
 
Item
 
Quantitative and Qualitative Disclosures about Market Risk
 
Item
 
Controls and Procedures
 
 
 
 
 
 
Other Information
 
Item
1A
 
Risk Factors
 
Item
2
 
Unregistered Sales of Equity Securities and Use of Proceeds
 
Item
6
 
Exhibits
 





PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
THE NEW YORK TIMES COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
 
June 30,
2013
 
December 30,
2012
 
(Unaudited)
 
 
Assets
 
 
 
Current assets
 
 
 
Cash and cash equivalents
$
358,601

 
$
820,489

Short-term marketable securities
388,370

 
134,820

Accounts receivable (net of allowances of $14,369 in 2013 and $17,390 in 2012)
191,869

 
237,932

Inventories:
 
 
 
Newsprint and magazine paper
7,434

 
8,038

Other inventory
1,931

 
2,376

Total inventories
9,365

 
10,414

Deferred income taxes
58,214

 
58,214

Other current assets
47,088

 
46,539

Total current assets
1,053,507

 
1,308,408

Other assets
 
 
 
Long-term marketable securities
170,990

 
4,444

Investments in joint ventures
39,243

 
42,702

Property, plant and equipment (less accumulated depreciation and amortization of $984,190 in 2013 and $941,728 in 2012)
822,414

 
860,385

Goodwill (less accumulated impairment losses of $805,218 in 2013 and 2012)
121,433

 
122,691

Deferred income taxes
276,253

 
280,523

Miscellaneous assets
163,781

 
166,627

Total assets
$
2,647,621

 
$
2,785,780

See Notes to Condensed Consolidated Financial Statements.


1



THE NEW YORK TIMES COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS-(Continued)
(In thousands, except share and per share data)
 
June 30,
2013
 
December 30,
2012
 
(Unaudited)
 
 
Liabilities and stockholders’ equity
 
 
 
Current liabilities
 
 
 
Accounts payable
$
79,944

 
$
96,962

Accrued payroll and other related liabilities
73,119

 
95,180

Unexpired subscriptions
67,280

 
66,850

Accrued expenses and other
119,403

 
124,653

Accrued income taxes
13,355

 
38,932

Total current liabilities
353,101

 
422,577

Other liabilities
 
 
 
Long-term debt and capital lease obligations
694,158

 
696,914

Pension benefits obligation
642,276

 
737,889

Postretirement benefits obligation
108,089

 
110,347

Other
145,258

 
152,418

Total other liabilities
1,589,781

 
1,697,568

Stockholders’ equity
 
 
 
Common stock of $.10 par value:
 
 
 
Class A – authorized 300,000,000 shares; issued: 2013 – 150,472,065; 2012 – 150,270,975 (including treasury shares: 2013 – 2,305,554; 2012 – 2,483,537)
15,047

 
15,027

Class B – convertible – authorized and issued shares: 2013 – 818,061; 2012 – 818,385 (including treasury shares: 2013 – none; 2012 – none)
82

 
82

Additional paid-in capital
27,818

 
25,610

Retained earnings
1,254,155

 
1,230,450

Common stock held in treasury, at cost
(90,391
)
 
(96,278
)
Accumulated other comprehensive loss, net of income taxes:
 
 
 
Foreign currency translation adjustments
10,091

 
11,327

Unrealized loss on available-for-sale security
(498
)
 
(431
)
Funded status of benefit plans
(514,633
)
 
(523,463
)
Total accumulated other comprehensive loss, net of income taxes
(505,040
)
 
(512,567
)
Total New York Times Company stockholders’ equity
701,671

 
662,324

Noncontrolling interest
3,068

 
3,311

Total stockholders’ equity
704,739

 
665,635

Total liabilities and stockholders’ equity
$
2,647,621

 
$
2,785,780

See Notes to Condensed Consolidated Financial Statements.


2



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 30,
2013
 
June 24,
2012
 
June 30,
2013
 
June 24,
2012
 
 
(13 weeks)
 
(26 weeks)
Revenues
 
 
 
 
 
 
 
 
Circulation
 
$
245,132

 
$
233,291

 
$
486,921

 
$
460,285

Advertising
 
207,454

 
220,228

 
398,621

 
435,462

Other
 
32,777

 
36,283

 
65,754

 
69,487

Total revenues
 
485,363

 
489,802

 
951,296

 
965,234

Operating costs
 
 
 
 
 
 
 
 
Production costs:
 
 
 
 
 
 
 
 
Raw materials
 
28,854

 
33,596

 
58,947

 
66,959

Wages and benefits
 
106,090

 
107,153

 
215,219

 
215,786

Other
 
57,452

 
61,829

 
114,496

 
122,540

Total production costs
 
192,396

 
202,578

 
388,662

 
405,285

Selling, general and administrative costs
 
217,928

 
220,236

 
442,131

 
449,360

Depreciation and amortization
 
21,608

 
22,920

 
43,408

 
53,036

Total operating costs
 
431,932

 
445,734

 
874,201

 
907,681

Operating profit
 
53,431

 
44,068

 
77,095

 
57,553

Gain on sale of investment
 

 
37,797

 

 
55,645

Impairment of investments
 

 

 

 
4,900

(Loss)/income from joint ventures
 
(459
)
 
1,079

 
(3,399
)
 
1,050

Interest expense, net
 
14,646

 
15,464

 
28,720

 
30,916

Income from continuing operations before income taxes
 
38,326

 
67,480

 
44,976

 
78,432

Income tax expense
 
18,189

 
29,440

 
21,516

 
31,233

Income from continuing operations
 
20,137

 
38,040

 
23,460

 
47,199

Loss from discontinued operations, net of income taxes
 

 
(125,689
)
 

 
(92,298
)
Net income/(loss)
 
20,137

 
(87,649
)
 
23,460

 
(45,099
)
Net (income)/loss attributable to the noncontrolling interest
 
(6
)
 
27

 
243

 
80

Net income/(loss) attributable to The New York Times Company common stockholders
 
$
20,131

 
$
(87,622
)
 
$
23,703


$
(45,019
)
Amounts attributable to The New York Times Company common stockholders:
 
 
 
 
 
 
 
 
Income from continuing operations
 
$
20,131

 
$
38,067

 
$
23,703

 
$
47,279

Loss from discontinued operations, net of income taxes
 

 
(125,689
)
 

 
(92,298
)
Net income/(loss)
 
$
20,131

 
$
(87,622
)
 
$
23,703

 
$
(45,019
)
Average number of common shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
148,797

 
148,005

 
148,754

 
147,936

Diluted
 
156,511

 
149,799

 
156,101

 
150,669

Basic earnings/(loss) per share attributable to The New York Times Company common stockholders:
 
 
 
 
 
 
 
 
Income from continuing operations
 
$
0.14

 
$
0.26

 
$
0.16

 
$
0.32

Loss from discontinued operations, net of income taxes
 

 
(0.85
)
 

 
(0.62
)
Net income/(loss)
 
$
0.14

 
$
(0.59
)
 
$
0.16

 
$
(0.30
)
Diluted earnings/(loss) per share attributable to The New York Times Company common stockholders:
 
 
 
 
 
 
 
 
Income from continuing operations
 
$
0.13

 
$
0.25

 
$
0.15

 
$
0.31

Loss from discontinued operations, net of income taxes
 

 
(0.83
)
 

 
(0.61
)
Net income/(loss)
 
$
0.13

 
$
(0.58
)
 
$
0.15

 
$
(0.30
)
See Notes to Condensed Consolidated Financial Statements.

3



THE NEW YORK TIMES COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
(Unaudited)
(In thousands)
 
 
For the Quarters Ended
 
For the Six Months Ended
 
 
June 30,
2013
 
June 24,
2012
 
June 30,
2013
 
June 24,
2012
 
 
(13 weeks)
 
(26 weeks)
Net income/(loss)
 
$
20,137

 
$
(87,649
)
 
$
23,460

 
$
(45,099
)
Other comprehensive income/(loss), before tax:
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
 
713

 
(6,712
)
 
(1,764
)
 
(4,399
)
Unrealized derivative gain on cash-flow hedge of equity method investment
 

 

 

 
1,143

Unrealized gain/(loss) on available-for-sale security
 
1,260

 
(3,425
)
 
(114
)
 
3,589

Pension and postretirement benefits obligation
 
6,598

 
5,817

 
14,857

 
(4,461
)
Other comprehensive income/(loss), before tax
 
8,571

 
(4,320
)
 
12,979

 
(4,128
)
Income tax expense/(benefit)
 
3,672

 
(1,647
)
 
5,452

 
(1,807
)
Other comprehensive income/(loss), net of tax
 
4,899

 
(2,673
)
 
7,527

 
(2,321
)
Comprehensive income/(loss)
 
25,036

 
(90,322
)
 
30,987

 
(47,420
)
Comprehensive (income)/loss attributable to the noncontrolling interest
 
(6
)
 
27

 
243

 
80

Comprehensive income/(loss) attributable to The New York Times Company common stockholders
 
$
25,030

 
$
(90,295
)
 
$
31,230

 
$
(47,340
)
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 30,
2013
 
June 24,
2012
 
(26 weeks)
Cash flows from operating activities
 
 

Net income/(loss)
$
23,460

 
$
(45,099
)
Adjustments to reconcile net income/(loss) to net cash (used in)/provided by operating activities:
 
 
 
Impairment of assets

 
194,732

Gain on sale of investment

 
(55,645
)
Impairment of investments

 
4,900

Loss on sale of Regional Media Group

 
4,717

Depreciation and amortization
43,408

 
57,811

Stock-based compensation expense
5,201

 
4,144

Undistributed loss of equity method investments
3,399

 
4,769

Long-term retirement benefit obligations
(82,503
)
 
(21,925
)
Other–net
9,581

 
4,934

Changes in operating assets and liabilities–net of dispositions:
 
 
 
Accounts receivable–net
46,063

 
35,954

Inventories
1,049

 
814

Other current assets
2,079

 
(3,085
)
Accounts payable and other liabilities
(78,729
)
 
(116,028
)
Unexpired subscriptions
430

 
2,878

Net cash (used in)/provided by operating activities
(26,562
)
 
73,871

Cash flows from investing activities
 
 
 
Purchases of marketable securities
(584,600
)
 
(284,856
)
Maturities of marketable securities
160,262

 
109,844

Capital expenditures
(6,983
)
 
(19,215
)
Change in restricted cash
2,000

 
3,287

(Purchase of)/proceeds from investments–net
(541
)
 
92,525

Proceeds from sale of Regional Media Group

 
140,044

Net cash (used in)/provided by investing activities
(429,862
)
 
41,629

Cash flows from financing activities
 
 
 
Long-term obligations:
 
 
 
Repayment of debt and capital lease obligations
(5,925
)
 
(280
)
Capital shares:
 
 
 
Issuances from stock option exercises
611

 
207

Net cash used in financing activities
(5,314
)
 
(73
)
(Decrease)/increase in cash and cash equivalents
(461,738
)
 
115,427

Effect of exchange rate changes on cash and cash equivalents
(150
)
 
(286
)
Cash and cash equivalents at the beginning of the year
820,489

 
175,151

Cash and cash equivalents at the end of the quarter
$
358,601

 
$
290,292

See Notes to Condensed Consolidated Financial Statements.

5

THE NEW YORK TIMES COMPANY
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


NOTE 1. BASIS OF PRESENTATION

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 30, 2013 and December 30, 2012, and the results of operations and cash flows of the Company for the periods ended June 30, 2013 and June 24, 2012. The Company and its consolidated subsidiaries are referred to collectively as “we,” “us” or “our.” 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. The financial statements were prepared in accordance with the requirements of the Securities and Exchange Commission (“SEC”) 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 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 our Annual Report on Form 10-K for the year ended December 30, 2012. Due to the seasonal nature of our 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 full six-month periods.

For comparability, certain prior-year amounts have been reclassified to conform with the current period presentation.

See Note 3 for information regarding adjustments to prior period financial statements.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

As of June 30, 2013, our significant accounting policies, which are detailed in our Annual Report on Form 10-K for the year ended December 30, 2012, have not changed. In the first quarter of 2013, we added a significant accounting policy related to our investments in marketable securities.

Marketable securities

We have investments in marketable debt and equity securities. We determine the appropriate classification of our investments at the date of purchase and reevaluate the classifications at the balance sheet date. Marketable debt securities with maturities of 12 months or less are classified as short-term. Marketable debt securities with maturities greater than 12 months are classified as long-term. We have the intent and ability to hold our marketable debt securities until maturity; therefore they are accounted for as held-to-maturity and stated at amortized cost. Our marketable equity security is accounted for as available-for-sale and stated at fair value. Changes in the fair value of our available-for-sale security are recognized as unrealized gains or losses, net of taxes, as a component of accumulated other comprehensive income/(loss) (“AOCI”).

Recently adopted accounting pronouncements

At the beginning of our 2013 fiscal year, we adopted new guidance for the presentation of amounts reclassified from AOCI. The guidance specifically required, either on the face of the financial statements or in the notes, presentation of significant amounts reclassified from AOCI by component for the respective line items of net income. We adopted the new guidance and present the reclassifications in the notes to the financial statements. See Note 14 for additional information regarding amounts reclassified from AOCI.

NOTE 3. PRIOR PERIOD ADJUSTMENTS

During the second quarter of 2013, we determined that due to an error in the actuarial valuation of accrued benefits for approximately 800 participants primarily in The New York Times Companies Pension Plan, our pension benefit obligation was overstated by approximately $50.4 million as of December 31, 2012 and $50.9 million as of March 31, 2013. The New York Times Companies Pension Plan (which was frozen as of December 31, 2009) provides for certain offsetting credits for plan participants who are also entitled to benefits under another qualified pension plan to which we contribute, primarily from The New York Times Newspaper Guild Pension Plan or the Boston Globe Retirement Plan for employees represented by the Boston Newspaper Guild. We determined that those offsetting credits were not properly recorded in prior interim and annual periods, on our balance sheet from December 30, 2007 through March 31, 2013 and on our income statement from the fiscal year ended December 28, 2008 through the quarter ended March 31, 2013.

6

THE NEW YORK TIMES COMPANY
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(Unaudited)

In accordance with the provisions of SEC Staff Accounting Bulletin No. 108, we assessed the impact of these adjustments on prior period financial statements and concluded that these errors were not material individually or in the aggregate to any of the prior reporting periods from an income statement and balance sheet perspective. However, the correction of the error in the current period would be considered material and would impact comparisons to prior periods.
Accordingly, we have adjusted our consolidated financial statements for the periods ended December 25, 2011 through March 31, 2013 to correct the errors and will make adjustments for future Form 10-Q and 10-K filings that include financial statements for the periods affected. The adjustment primarily resulted in a reduction in pension expense, other comprehensive income and pension liability in each of the periods presented.
The cumulative effect, net of tax, on the opening retained earnings and opening accumulated comprehensive income as of December 27, 2010 were $6.0 million and $14.5 million, respectively. There was no impact on cash flows for the periods indicated. The following tables show the adjusted financial statements for those periods indicated:

7

THE NEW YORK TIMES COMPANY
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(Unaudited)

(In thousands)
 
March 31, 2013
 
2012 by quarter
 
December 25,
2011
 
 
December 30,
2012

September 23,
2012

June 24,
2012

March 25,
2012
 
 As previously reported:
 
 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidated Balance Sheets
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Current assets
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
308,014

 
$
820,489

 
$
334,374

 
$
290,292

 
$
206,468

 
$
175,151

Short-term marketable securities
 
366,805

 
134,820

 
279,740

 
279,858

 
224,878

 
104,846

Accounts receivable (net of allowances)
 
190,813

 
237,932

 
195,489

 
227,932

 
230,042

 
247,436

Inventories:
 
 
 
 
 
 
 
 
 
 
 
 
Newsprint and magazine paper
 
9,235

 
8,038

 
11,536

 
13,589

 
16,643

 
14,567

Other inventory
 
2,213

 
2,376

 
2,373

 
2,817

 
3,144

 
3,213

Total inventories
 
11,448

 
10,414

 
13,909

 
16,406

 
19,787

 
17,780

Deferred income taxes
 
58,214

 
58,214

 
73,055

 
73,055

 
73,055

 
73,055

Other current assets
 
56,038

 
46,539

 
49,883

 
50,556

 
66,743

 
55,665

Assets held for sale
 

 

 
223,887

 

 

 
590,002

Total current assets
 
991,332

 
1,308,408

 
1,170,337

 
938,099

 
820,973

 
1,263,935

Other assets
 
 
 
 
 
 
 
 
 
 
 
 
Long-term marketable securities
 
190,841

 
4,444

 

 

 

 

Investments in joint ventures
 
40,169

 
42,702

 
43,151

 
43,541

 
45,138

 
82,019

Property, plant and equipment (less accumulated depreciation and amortization)
 
842,383

 
860,385

 
877,883

 
896,093

 
912,338

 
937,140

Goodwill (less accumulated impairment losses)
 
120,275

 
122,691

 
121,251

 
306,087

 
506,160

 
121,618

Deferred income taxes
 
300,364

 
301,078

 
344,062

 
348,101

 
295,373

 
280,283

Miscellaneous assets
 
165,613

 
166,627

 
168,881

 
184,885

 
237,798

 
198,455

Total assets
 
$
2,650,977

 
$
2,806,335

 
$
2,725,565

 
$
2,716,806

 
$
2,817,780

 
$
2,883,450

 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and stockholders’ equity
 
 
 
 
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
88,513

 
$
96,962

 
$
94,315

 
$
90,616

 
$
93,126

 
$
98,385

Accrued payroll and other related liabilities
 
60,959

 
95,180

 
97,401

 
81,920

 
80,945

 
112,024

Unexpired subscriptions
 
69,114

 
66,850

 
66,537

 
65,776

 
67,863

 
63,103

Accrued expenses and other
 
119,405

 
124,653

 
204,847

 
205,414

 
205,993

 
240,464

Accrued income taxes
 

 
38,932

 

 

 

 

Total current liabilities
 
337,991

 
422,577

 
463,100

 
443,726

 
447,927

 
513,976

Other liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt and capital lease obligations
 
698,071

 
696,914

 
701,678

 
700,820

 
699,349

 
698,220

Pension benefits obligation
 
714,505

 
788,268

 
830,868

 
848,669

 
860,836

 
880,504

Postretirement benefits obligation
 
109,500

 
110,347

 
100,248

 
101,397

 
102,689

 
104,192

Other
 
144,576

 
152,418

 
154,537

 
155,353

 
151,048

 
177,049

Total other liabilities
 
1,666,652

 
1,747,947

 
1,787,331

 
1,806,239

 
1,813,922

 
1,859,965

Stockholders’ equity
 
 
 
 
 
 
 
 
 
 
 
 
Common stock of $.10 par value:
 
 
 
 
 
 
 
 
 
 
 
 
Class A
 
15,045

 
15,027

 
15,023

 
15,009

 
15,005

 
15,001

Class B
 
82

 
82

 
82

 
82

 
82

 
82

Additional paid-in capital
 
27,656

 
25,610

 
31,181

 
34,278

 
35,820

 
32,024

Retained earnings
 
1,222,936

 
1,219,798

 
1,042,888

 
1,040,606

 
1,128,755

 
1,086,625

Common stock held in treasury, at cost
 
(93,506
)
 
(96,278
)
 
(102,690
)
 
(107,572
)
 
(110,827
)
 
(110,974
)
Accumulated other comprehensive loss, net of income taxes:
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
 
9,858

 
11,327

 
10,418

 
8,286

 
12,382

 
10,928

Unrealized (loss)/gain on available-for-sale security
 
(1,242
)
 
(431
)
 
732

 
2,102

 
4,109

 
(652
)
Funded status of benefit plans
 
(537,557
)
 
(542,635
)
 
(525,548
)
 
(529,019
)
 
(532,491
)
 
(526,674
)
Total accumulated other comprehensive loss, net of income taxes
 
(528,941
)
 
(531,739
)
 
(514,398
)
 
(518,631
)
 
(516,000
)
 
(516,398
)
Total New York Times Company stockholders’ equity
 
643,272

 
632,500

 
472,086

 
463,772

 
552,835

 
506,360

Noncontrolling interest
 
3,062

 
3,311

 
3,048

 
3,069

 
3,096

 
3,149

Total stockholders’ equity
 
646,334

 
635,811

 
475,134

 
466,841

 
555,931

 
509,509

Total liabilities and stockholders’ equity
 
$
2,650,977

 
$
2,806,335

 
$
2,725,565

 
$
2,716,806

 
$
2,817,780

 
$
2,883,450



8

THE NEW YORK TIMES COMPANY
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(Unaudited)

(In thousands)
 
March 31, 2013
 
2012 by quarter
 
December 25,
2011
 
 
December 30,
2012
 
September 23,
2012
 
June 24,
2012
 
March 25,
2012
 
Adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidated Balance Sheets
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Current assets
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$

 
$

 
$

 
$

 
$

 
$

Short-term marketable securities
 

 

 

 

 

 

Accounts receivable (net of allowances)
 

 

 

 

 

 

Inventories:
 
 
 
 
 
 
 
 
 
 
 
 
Newsprint and magazine paper
 

 

 

 

 

 

Other inventory
 

 

 

 

 

 

Total inventories
 

 

 

 

 

 

Deferred income taxes
 

 

 

 

 

 

Other current assets
 

 

 

 

 

 

Assets held for sale
 

 

 

 

 

 

Total current assets
 

 

 

 

 

 

Other assets
 
 
 
 
 
 
 
 
 
 
 
 
Long-term marketable securities
 

 

 

 

 

 

Investments in joint ventures
 

 

 

 

 

 

Property, plant and equipment (less accumulated depreciation and amortization)
 

 

 

 

 

 

Goodwill (less accumulated impairment losses)
 

 

 

 

 

 

Deferred income taxes
 
(20,438
)
 
(20,555
)
 
(19,862
)
 
(19,493
)
 
(19,185
)
 
(18,820
)
Miscellaneous assets
 

 

 

 

 

 

Total assets
 
$
(20,438
)
 
$
(20,555
)
 
$
(19,862
)
 
$
(19,493
)
 
$
(19,185
)
 
$
(18,820
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and stockholders’ equity
 
 
 
 
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$

 
$

 
$

 
$

 
$

 
$

Accrued payroll and other related liabilities
 

 

 

 

 

 

Unexpired subscriptions
 

 

 

 

 

 

Accrued expenses and other
 

 

 

 

 

 

Accrued income taxes
 
360

 

 

 

 

 

Total current liabilities
 
360

 

 

 

 

 

Other liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt and capital lease obligations
 

 

 

 

 

 

Pension benefits obligation
 
(50,888
)
 
(50,379
)
 
(48,515
)
 
(47,723
)
 
(46,931
)
 
(46,138
)
Postretirement benefits obligation
 

 

 

 

 

 

Other
 

 

 

 

 

 

Total other liabilities
 
(50,888
)
 
(50,379
)
 
(48,515
)
 
(47,723
)
 
(46,931
)
 
(46,138
)
Stockholders’ equity
 
 
 
 
 
 
 
 
 
 
 
 
Common stock of $.10 par value:
 
 
 
 
 
 
 
 
 
 
 
 
Class A
 

 

 

 

 

 

Class B
 

 

 

 

 

 

Additional paid-in capital
 

 

 

 

 

 

Retained earnings
 
11,087

 
10,652

 
9,439

 
8,974

 
8,448

 
7,978

Common stock held in treasury, at cost
 

 

 

 

 

 

Accumulated other comprehensive gain, net of income taxes:
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
 

 

 

 

 

 

Unrealized (loss)/gain on available-for-sale security
 

 

 

 

 

 

Funded status of benefit plans
 
19,003

 
19,172

 
19,214

 
19,256

 
19,298

 
19,340

Total accumulated other comprehensive gain, net of income taxes
 
19,003

 
19,172

 
19,214

 
19,256

 
19,298

 
19,340

Total New York Times Company stockholders’ equity
 
30,090

 
29,824

 
28,653

 
28,230

 
27,746

 
27,318

Noncontrolling interest
 

 

 

 

 

 

Total stockholders’ equity
 
30,090

 
29,824

 
28,653

 
28,230

 
27,746

 
27,318

Total liabilities and stockholders’ equity
 
$
(20,438
)
 
$
(20,555
)
 
$
(19,862
)
 
$
(19,493
)
 
$
(19,185
)
 
$
(18,820
)

9

THE NEW YORK TIMES COMPANY
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(Unaudited)

(In thousands)
 
March 31, 2013
 
2012 by quarter
 
December 25,
2011
 
 
December 30,
2012
 
September 23,
2012
 
June 24,
2012
 
March 25,
2012
 
As adjusted:
 
 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidated Balance Sheets
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Current assets
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
308,014

 
$
820,489

 
$
334,374

 
$
290,292

 
$
206,468

 
$
175,151

Short-term marketable securities
 
366,805

 
134,820

 
279,740

 
279,858

 
224,878

 
104,846

Accounts receivable (net of allowances)
 
190,813

 
237,932

 
195,489

 
227,932

 
230,042

 
247,436

Inventories:
 
 
 
 
 
 
 
 
 
 
 
 
Newsprint and magazine paper
 
9,235

 
8,038

 
11,536

 
13,589

 
16,643

 
14,567

Other inventory
 
2,213

 
2,376

 
2,373

 
2,817

 
3,144

 
3,213

Total inventories
 
11,448

 
10,414

 
13,909

 
16,406

 
19,787

 
17,780

Deferred income taxes
 
58,214

 
58,214

 
73,055

 
73,055

 
73,055

 
73,055

Other current assets
 
56,038

 
46,539

 
49,883

 
50,556

 
66,743

 
55,665

Assets held for sale
 

 

 
223,887

 

 

 
590,002

Total current assets
 
991,332

 
1,308,408

 
1,170,337

 
938,099

 
820,973

 
1,263,935

Other assets
 
 
 
 
 
 
 
 
 
 
 
 
Long-term marketable securities
 
190,841

 
4,444

 

 

 

 

Investments in joint ventures
 
40,169

 
42,702

 
43,151

 
43,541

 
45,138

 
82,019

Property, plant and equipment (less accumulated depreciation and amortization)
 
842,383

 
860,385

 
877,883

 
896,093

 
912,338

 
937,140

Goodwill (less accumulated impairment losses)
 
120,275

 
122,691

 
121,251

 
306,087

 
506,160

 
121,618

Deferred income taxes
 
279,926

 
280,523

 
324,200

 
328,608

 
276,188

 
261,463

Miscellaneous assets
 
165,613

 
166,627

 
168,881

 
184,885

 
237,798

 
198,455

Total assets
 
$
2,630,539

 
$
2,785,780

 
$
2,705,703

 
$
2,697,313

 
$
2,798,595

 
$
2,864,630

 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and stockholders’ equity
 
 
 
 
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
88,513

 
$
96,962

 
$
94,315

 
$
90,616

 
$
93,126

 
$
98,385

Accrued payroll and other related liabilities
 
60,959

 
95,180

 
97,401

 
81,920

 
80,945

 
112,024

Unexpired subscriptions
 
69,114

 
66,850

 
66,537

 
65,776

 
67,863

 
63,103

Accrued expenses and other
 
119,405

 
124,653

 
204,847

 
205,414

 
205,993

 
240,464

Accrued income taxes
 
360

 
38,932

 

 

 

 

Total current liabilities
 
338,351

 
422,577

 
463,100

 
443,726

 
447,927

 
513,976

Other liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt and capital lease obligations
 
698,071

 
696,914

 
701,678

 
700,820

 
699,349

 
698,220

Pension benefits obligation
 
663,617

 
737,889

 
782,353

 
800,946

 
813,905

 
834,366

Postretirement benefits obligation
 
109,500

 
110,347

 
100,248

 
101,397

 
102,689

 
104,192

Other
 
144,576

 
152,418

 
154,537

 
155,353

 
151,048

 
177,049

Total other liabilities
 
1,615,764

 
1,697,568

 
1,738,816

 
1,758,516

 
1,766,991

 
1,813,827

Stockholders’ equity
 
 
 
 
 
 
 
 
 
 
 
 
Common stock of $.10 par value:
 
 
 
 
 
 
 
 
 
 
 
 
Class A
 
15,045

 
15,027

 
15,023

 
15,009

 
15,005

 
15,001

Class B
 
82

 
82

 
82

 
82

 
82

 
82

Additional paid-in capital
 
27,656

 
25,610

 
31,181

 
34,278

 
35,820

 
32,024

Retained earnings
 
1,234,023

 
1,230,450

 
1,052,327

 
1,049,580

 
1,137,203

 
1,094,603

Common stock held in treasury, at cost
 
(93,506
)
 
(96,278
)
 
(102,690
)
 
(107,572
)
 
(110,827
)
 
(110,974
)
Accumulated other comprehensive loss, net of income taxes:
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
 
9,858

 
11,327

 
10,418

 
8,286

 
12,382

 
10,928

Unrealized (loss)/gain on available-for-sale security
 
(1,242
)
 
(431
)
 
732

 
2,102

 
4,109

 
(652
)
Funded status of benefit plans
 
(518,554
)
 
(523,463
)
 
(506,334
)
 
(509,763
)
 
(513,193
)
 
(507,334
)
Total accumulated other comprehensive loss, net of income taxes
 
(509,938
)
 
(512,567
)
 
(495,184
)
 
(499,375
)
 
(496,702
)
 
(497,058
)
Total New York Times Company stockholders’ equity
 
673,362

 
662,324

 
500,739

 
492,002

 
580,581

 
533,678

Noncontrolling interest
 
3,062

 
3,311

 
3,048

 
3,069

 
3,096

 
3,149

Total stockholders’ equity
 
676,424

 
665,635

 
503,787

 
495,071

 
583,677

 
536,827

Total liabilities and stockholders’ equity
 
$
2,630,539

 
$
2,785,780

 
$
2,705,703

 
$
2,697,313

 
$
2,798,595

 
$
2,864,630


10

THE NEW YORK TIMES COMPANY
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(Unaudited)

(In thousands, except per share data)
 
March 31, 2013
 
Full Year 2012
 
2012 by quarter
 
Full Year 2011
 
 
 
December 30,
2012

September 23,
2012

June 24,
2012

March 25,
2012
 
 As previously reported:
 
 












Condensed Consolidated Statements of Operations
 
 
 
 
 
 
 
 
 
 
 
 
Revenues

$
465,933


$
1,990,080