NEW YORK TIMES CO

7. Other

Capitalized Computer Software Costs

Amortization of capitalized computer software costs included in Depreciation and amortization in our Consolidated Statements of Operations was $7.8 million, $7.9 million and $9.1 million for the fiscal years ended December 31, 2023, December 31, 2022, and December 26, 2021, respectively. The unamortized computer software costs were $13.4 million and $11.2 million as of December 31, 2023, and December 31, 2022, respectively.

Marketing Expenses

Marketing expense, the cost to promote our brand and our products, was $138.3 million, $151.1 million and $199.7 million for the fiscal years ended December 31, 2023, December 31, 2022, and December 26, 2021, respectively. Media expense, the primary component of marketing expense, which represents the cost to promote our subscription business was $117.7 million, $134.1 million and $187.3 million for the fiscal years ended December 31, 2023, December 31, 2022, and December 26, 2021, respectively. We expense these costs as incurred.

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Interest income and other, net

Interest income and other, net, as shown in the accompanying Consolidated Statements of Operations, was as follows:

(1) On December 9, 2020, we entered into an agreement to lease and subsequently sell approximately four acres of land at our printing and distribution facility in College Point, N.Y., subject to certain conditions. The lease commenced on April 11, 2022. At the time of the lease expiration in February 2025, we will sell the parcel to the lessee for approximately $36 million. The transaction is accounted for as a sales-type lease and, as a result, we recognized a gain of approximately $34 million (net of commissions) at the time of lease commencement. In 2023, we recorded $1.8 million in interest income related to this lease.

(2) Represents gains related to a non-marketable equity investment transaction.

A reconciliation of cash, cash equivalents and restricted cash as of December 31, 2023, and December 31, 2022, from the Consolidated Balance Sheets to the Consolidated Statements of Cash Flows is as follows:

Substantially all of the amount included in restricted cash is set aside to collateralize workers’ compensation obligations.

Revolving Credit Facility

In September 2019, the Company entered into a $250.0 million five-year unsecured revolving credit facility (the “2019 Credit Facility”). On July 27, 2022, the Company entered into an amendment and restatement of the 2019 Credit Facility that, among other changes, increased the committed amount to $350.0 million and extended the maturity date to July 27, 2027 (as amended and restated, the “Credit Facility”). Certain of the Company’s domestic subsidiaries have guaranteed the Company’s obligations under the Credit Facility. Borrowings under the Credit Facility bear interest at specified rates based on our utilization and consolidated leverage ratio. The Credit Facility contains various customary affirmative and negative covenants. In addition, the Company is obligated to pay a quarterly unused commitment fee of 0.20%.

As of December 31, 2023, there wereno outstanding borrowings under the Credit Facility and the Company was in compliance with the financial covenants contained in the Credit Facility.

THE NEW YORK TIMES COMPANY – P. 87

Severance Costs

We recognized severance costs of $7.6 million, $4.7 million and $0.9 million for the fiscal years ended December 31, 2023, December 31, 2022, and December 26, 2021, respectively. Severance costs recognized were largely related to workforce reductions primarily affecting our general and administrative function. These costs are recorded in General and administrative costs in our Consolidated Statements of Operations.

We had a severance liability of $4.4 million included in Accrued expenses and other in our Consolidated Balance Sheets as of both December 31, 2023, and December 31, 2022, respectively. We anticipate the payments related to the 2023 liability will be made within the next twelve months.

Property, Plant and Equipment Retirement

During the years ended December 31, 2023, and December 31, 2022, as part of its annual assets review, the Company retired assets that were no longer in use with a cost of approximately $10.0 million and $11.1 million, respectively. The retirements in 2023 and 2022 were composed mostly of equipment and software. As a result of the retirements, the Company recordedde minimis write-offs, which are reflected in General and administrative costs in our Consolidated Statements of Operations.