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Information for pension plans with an accumulated benefit obligation in excess of plan assets was as follows: Additional information about the Company's pension plans were as follows: P.76 2007 ANNUAL REPORT - Notes to the Consolidated Financial Statements Weighted-average assumptions used in the actuarial computations to determine benefit obligations for the Company's qualified plans were as follows: Weighted-average assumptions used in the actuarial computations to determine net periodic pension cost for the Company's qualified plans were as follows: Weighted-average assumptions used in the actuarial computations to determine benefit obligations for the Company's non-qualified plans were as follows: Weighted-average assumptions used in the actuarial computations to determine net periodic pension cost for the Company's non-qualified plans were as follows: The Company selects its discount rate utilizing a methodology that equates the plans' projected benefit obligations to a present value calculated using the Citigroup Pension Discount Curve. |
Signature TITLE DATE ARTHUR SULZBERGER, JR. Chairman, Director February 23, 2006 JANET L. ROBINSON Chief Executive Officer, President and Director (Principal Executive Officer) February 23, 2006 MICHAEL GOLDEN Vice Chairman and Director February 23, 2006 JOHN F. AKERS Director February 23, 2006 BRENDA C. BARNES Director February 23, 2006 RAUL E. CESAN Director February 23, 2006 LYNN G. DOLNICK Director February 23, 2006 LEONARD P. FORMAN Executive Vice President and Chief Financial Officer (Principal Financial Officer) February 23, 2006 WILLIAM E. KENNARD Director February 23, 2006 JAMES M. KILTS Director February 23, 2006 DAVID E. LIDDLE Director February 23, 2006 ELLEN R. MARRAM Director February 23, 2006 THOMAS MIDDELHOFF Director February 23, 2006 HENRY B. SCHACHT Director February 23, 2006 STUART P. STOLLER Vice President, Process Engineering and Corporate Controller (Principal Accounting Officer) February 23, 2006 CATHY J. SULZBERGER Director February 23, 2006 DOREEN A. TOBEN Director February 23, 2006 THE NEW YORK TIMES COMPANY 2005 FINANCIAL REPORT SELECTED FINANCIAL DATA •The Selected Financial Data of the New York Times Company (the "Company") should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operation and the Consolidated Financial Statements and the related Notes included in this Annual Report on Form 10-K. •See page for certain items included in Selected Financial Data. |
Executive Officers of the Registrant Name Age Employed By Registrant Since Recent Position(s) Held As Of February 24, 2005 Corporate Officers Arthur Sulzberger, Jr. Chairman (since 1997) and Publisher of The Times (since 1992) Janet L. Robinson President and Chief Executive Officer (beginning fiscal year 2005)1; Executive Vice President and Chief Operating Officer (2004); Senior Vice President, Newspaper Operations (2001 to 2004); President and General Manager of The Times (1996 to 2004) Michael Golden Vice Chairman (since 1997); Publisher of the IHT (since 2003); Senior Vice President (1997-2004) Leonard P. Forman Executive Vice President (since 2004) and Chief Financial Officer (since 2002); Senior Vice President (2001 to 2004); President and Chief Executive Officer, The New York Times Company Magazine Group, Inc. (1998 to 2001) Martin A. Nisenholtz Senior Vice President, Digital Operations (since 2005); Chief Executive Officer, New York Times Digital (1999 to 2005) Solomon B. Watson IV Senior Vice President (since 1996); General Counsel (since 1989); Secretary (2000 to 2002) R. Anthony Benten Vice President (since 2003); Treasurer (since 2001); Assistant Treasurer (1997-2001) James C. Lessersohn Vice President, Finance and Corporate Development (since 2001); Vice President and Treasurer (1999 to 2001) Catherine J. Mathis Vice President, Corporate Communications (since 2000); Director, Investor Relations (1997 to 2000) Stuart P. Stoller Vice President and Corporate Controller (since 1996) David A. Thurm Chief Information Officer (since 2004); Vice President, Real Estate Development (2000 to 2004); Chief Operating Officer, New York Times Digital (1999 to 2000) Operating Unit Executives P. Steven Ainsley President and Chief Operating Officer, Regional Media Group (since 2003); Senior Vice President, Regional Media Group (1999-2002) Robert H. Eoff President, Broadcast Media Group (since 2004); Vice President, Broadcast Media Group (1999-2004); President and General Manager, WREG-TV (1995-2004) Richard H. Gilman Publisher of The Globe (since 1999) Scott H. Heekin-Canedy President and General Manager of The Times (since 2004); Senior Vice President, Circulation of The Times (1999 to 2004) 1Ms. |
Signature TITLE DATE ARTHUR SULZBERGER, JR. Chairman, Director February 24, 2005 JANET L. ROBINSON Chief Executive Officer, President and Director (Principal Executive Officer) February 24, 2005 MICHAEL GOLDEN Vice Chairman and Director February 24, 2005 JOHN F. AKERS Director February 24, 2005 BRENDA C. BARNES Director February 24, 2005 RAUL E. CESAN Director February 24, 2005 JACQUELINE H. DRYFOOS Director February 24, 2005 LEONARD P. FORMAN Executive Vice President and Chief Financial Officer (Principal Financial Officer) February 24, 2005 WILLIAM E. KENNARD Director February 24, 2005 DAVID E. LIDDLE Director February 24, 2005 ELLEN R. MARRAM Director February 24, 2005 THOMAS MIDDELHOFF Director February 24, 2005 HENRY B. SCHACHT Director February 24, 2005 DONALD M. STEWART Director February 24, 2005 STUART P. STOLLER Vice President, Corporate Controller (Principal Accounting Officer) February 24, 2005 CATHY J. SULZBERGER Director February 24, 2005 DOREEN A. TOBEN Director February 24, 2005 THE NEW YORK TIMES COMPANY 2004 FINANCIAL REPORT SELECTED FINANCIAL DATA •The Selected Financial Data should be read in conjunction with the Consolidated Financial Statements included in this Form 10-K. •See page for certain items included in Selected Financial Data. |
Executive Officers of the Registrant Name Age Employed By Registrant Since Recent Position(s) Held As Of February 20, 2004 Corporate Officers Arthur Sulzberger, Jr. Chairman (since 1997) and Publisher of The Times (since 1992) Russell T. Lewis President (since 1996) and Chief Executive Officer (since 1997); Chief Operating Officer (1996 to 1997); President and General Manager of The Times (1993 to 1996) Janet L. Robinson Executive Vice President and Chief Operating Officer (since 2004); Senior Vice President, Newspaper Operations (2001 to 2004); President and General Manager of The Times (1996 to 2004); Senior Vice President, Advertising of The Times (1995 to 1996) Michael Golden Vice Chairman (since 1997); Publisher of the IHT (since 2003); Senior Vice President (1997-2004); Vice President, Operations Development (1996 to 1997) Leonard P. Forman Executive Vice President (since 2004) and Chief Financial Officer (since 2002); Senior Vice President (2001 to 2004); President and Chief Executive Officer, The New York Times Company Magazine Group, Inc. (1998 to 2001); Senior Vice President, Corporate Development, New Ventures and Electronic Businesses (1996 to 1998) Cynthia H. Augustine Senior Vice President, Human Resources (since 1998) and Broadcasting (since 2000); President, The New York Times Company Broadcast Group (since 2000) Solomon B. Watson IV Senior Vice President (since 1996); Vice President (1990 to 1996); General Counsel (since 1989); and Secretary (2000 to 2002) James C. Lessersohn Vice President, Finance and Corporate Development (since 2001); Vice President and Treasurer (1999 to 2001); Vice President, Corporate Planning (1997 to 1999); Managing Director, Corporate Planning (1994 to 1997) Stuart Stoller Vice President and Corporate Controller (since 1996) Michael G. Williams Vice President, Chief Information Officer (since 2000); Vice President, Chief Information Officer, The Times (since 1998) R. Anthony Benten Vice President (since 2003); Treasurer (since 2001); Assistant Treasurer (1997 to 2001); Director of Treasury (1997) 1Mr. |
Signature TITLE DATE ARTHUR SULZBERGER, JR. Chairman, Director February 20, 2004 RUSSELL T. LEWIS Chief Executive Officer, President and Director (Principal Executive Officer) February 20, 2004 MICHAEL GOLDEN Vice Chairman, Senior Vice President and Director February 20, 2004 JOHN F. AKERS Director February 20, 2004 BRENDA C. BARNES Director February 20, 2004 RAUL E. CESAN Director February 20, 2004 JACQUELINE H. DRYFOOS Director February 20, 2004 LEONARD P. FORMAN Executive Vice President and Chief Financial Officer (Principal Financial Officer) February 20, 2004 WILLIAM E. KENNARD Director February 20, 2004 DAVID E. LIDDLE Director February 20, 2004 ELLEN R. MARRAM Director February 20, 2004 THOMAS MIDDELHOFF Director February 20, 2004 HENRY B. SCHACHT Director February 20, 2004 DONALD M. STEWART Director February 20, 2004 STUART STOLLER Vice President, Corporate Controller (Principal Accounting Officer) February 20, 2004 CATHY J. SULZBERGER Director February 20, 2004 THE NEW YORK TIMES COMPANY 2003 FINANCIAL REPORT SELECTED FINANCIAL DATA •The Selected Financial Data should be read in conjunction with the Consolidated Financial Statements included in this Form 10-K. •See page for certain items included in Selected Financial Data. |
Date: February 24, /s/ Leonard P. Forman Leonard P. Forman Chief Financial Officer THE NEW YORK TIMES COMPANY 2002 FINANCIAL REPORT Contents Page Selected Financial Data Management’s Discussion and Analysis of Financial Condition and Results of Operations Overview Results of Operations Consolidated Results Operating Segment Information Liquidity and Capital Resources Pension and Postretirement Benefits Critical Accounting Policies 2003 Guidance Reconciliations of GAAP to Non-GAAP Financial Measures Recent Accounting Pronouncements Factors That Could Affect Operating Results Market Risk Audited Financial Statements Consolidated Statements of Income Consolidated Balance Sheets Consolidated Statements of Cash Flows Consolidated Statements of Stockholders’ Equity Notes to the Consolidated Financial Statements Independent Auditors’ Report Management’s Responsibilities Report Quarterly Information (unaudited) Market Information SELECTED FINANCIAL DATA • The Selected Financial Data should be read in conjunction with the Consolidated Financial Statements included in this Form 10-K. • See page for certain items included in Selected Financial Data. |
The editions of The Times distributed outside of the New York City area are printed under contract at the following sites: Region(1) Print Sites ------------------------------------------------------------------------- Midwest Chicago, IL; Canton, OH ------------------------------------------------------------------------- Northeast Billerica, MA(2); Springfield, VA ------------------------------------------------------------------------- Southeast Atlanta, GA; Ft. Lauderdale, FL; Lakeland, FL(3) ------------------------------------------------------------------------- Southwest Austin, TX; Phoenix, AZ ------------------------------------------------------------------------- West Torrance and Concord, CA; Tacoma, WA; Denver, CO(4) ------------------------------------------------------------------------- The Times currently has agreements with various newspapers and other delivery agents located in the United States and Canada to deliver The Times in their respective markets and, in some cases, to expand current markets. |
Related Businesses Name Description of Business - -------------------------------------------------------------------------------- Business Information Services Produces online computer databases and The New York Times Index, a print publication Licenses LEXIS/NEXIS, Dow Jones Business Information Services, Bell & Howell Information and Learning, The Dialog Corp., Online Computer Library Center and Reuters to store, market and distribute the Company's online computer databases Also licenses Bell & Howell Information and Learning to produce and sell The New York Times Index and The Times on microfilm and CD-ROM - -------------------------------------------------------------------------------- The New York Times News Services Division: - -------------------------------------------------------------------------------- The New York Times News Service Transmits articles, graphics and photographs from The Times, The Globe and other publications to approximately 650 newspapers and magazines in the United States and in more than 50 countries worldwide - -------------------------------------------------------------------------------- The New York Times Syndicate Markets other supplemental news services and feature material, graphics and photographs from The Times and other leading news sources to newspapers and magazines around the world - -------------------------------------------------------------------------------- NYT Television Pursues certain programming ventures utilizing The Times and other content - -------------------------------------------------------------------------------- - ---------- (1) Most advance sections of the Sunday newspaper distributed in these areas are printed at Edison, New Jersey, Flushing, New York, and Concord, California. |
In 1999 and 1998, the Company used the following types and quantities of paper (all amounts in metric tons): Coated, Supercalendered Publication Newsprint and Other Paper --------------------------------------------------------------------- 1999 1998 1999 1998 --------------------------------------------------------------------- The Times(1) 322,000 312,000 26,000 22,000 --------------------------------------------------------------------- The Globe(1) 141,000 141,000 4,000 4,000 --------------------------------------------------------------------- Regional Newspapers 100,500 98,500 -- -- --------------------------------------------------------------------- Magazine Group -- -- 10,200 9,900 --------------------------------------------------------------------- Total 563,500 551,500 40,200 35,900 --------------------------------------------------------------------- The paper used by The Times, The New York Times Magazine, The Globe, the Regional Newspapers and the magazines published by the Magazine Group was purchased under long-term contracts with unrelated suppliers and related suppliers in which the Company holds equity interests (see "Forest Products Investments"). |
General Character Approximate Area in Approximate Area in of Property Square Feet (Owned) Square Feet (Leased) ------------------------------------------------------------------------- Newspaper Publishing: ------------------------------------------------------------------------- Printing plants, business and editorial offices, garages and warehouse space located in: ------------------------------------------------------------------------- New York, NY 714,000 107,500 ------------------------------------------------------------------------- Flushing, NY -- 515,000(1) ------------------------------------------------------------------------- Edison, NJ -- 1,300,000(2) ------------------------------------------------------------------------- Boston, MA 652,000 -- ------------------------------------------------------------------------- Billerica, MA 290,000 -- ------------------------------------------------------------------------- Westwood, MA 115,000 -- ------------------------------------------------------------------------- Other locations 1,324,600 548,000 ------------------------------------------------------------------------- Broadcasting ------------------------------------------------------------------------- Business offices, studios and transmitters at various locations 324,820 26,725 ------------------------------------------------------------------------- Magazine Publishing 87,000 34,500 ------------------------------------------------------------------------- Total 3,507,420 2,531,725 ------------------------------------------------------------------------- ITEM 3. |
Signature Title Date - --------- ----- ---- ARTHUR OCHS SULZBERGER Chairman Emeritus, Director March 14, 2000 ARTHUR SULZBERGER, JR. Chairman, Director (Principal March 14, 2000 Executive Officer) RUSSELL T. LEWIS Chief Executive Officer, March 14, 2000 President and Director MICHAEL GOLDEN Vice Chairman, Senior Vice March 14, 2000 President and Director JOHN F. AKERS Director March 14, 2000 BRENDA C. BARNES Director March 14, 2000 RAUL E. CESAN Director March 14, 2000 RICHARD L. GELB Director March 14, 2000 ROBERT A. LAWRENCE Director March 14, 2000 ELLEN R. MARRAM Director March 14, 2000 JOHN M. O'BRIEN Senior Vice President and March 14, 2000 Chief Financial Officer (Principal Financial Officer) CHARLES H. PRICE II Director March 14, 2000 HENRY B. SCHACHT Director March 14, 2000 DONALD M. STEWART Director March 14, 2000 STUART STOLLER Vice President, Corporate March 14, 2000 Controller (Principal Accounting Officer) JUDITH P. SULZBERGER Director March 14, 2000 EXHIBIT INDEX Exhibit Number Description - ------- ----------- (3.1) Certificate of Incorporation as amended and restated to reflect amendments effective June 19, 1998 (filed as an Exhibit to the Company's Form 10-Q dated August 11, 1998, and incorporated by reference herein). |
1999 1998 1997 ---- ---- ---- Wages and Benefits 35% 34% 36% Raw Materials 10% 12% 11% Other Operating Costs 31% 30% 31% Depreciation & Amortization 6% 6% 6% ---- ---- ---- 82% 82% 84% RESULTS OF OPERATIONS CONSOLIDATED RESULTS The Company's consolidated financial results for 1999, 1998 and 1997 were as follows: - -------------------------------------------------------------------------------- % Change ------------ (In millions, except per share data) 1999 1998 1997 99-98 98-97 - -------------------------------------------------------------------------------- Revenues $3,130.6 $2,936.7 $2,866.4 6.6 2.5 - -------------------------------------------------------------------------------- Operating profit $ 571.3 $ 515.2 $ 455.1 10.9 13.2 - -------------------------------------------------------------------------------- Income before special items $ 319.1 $ 282.6 $ 249.1 12.9 13.5 Special items (8.9) (3.7) 13.2 * * - -------------------------------------------------------------------------------- Net income $ 310.2 $ 278.9 $ 262.3 11.2 6.3 - -------------------------------------------------------------------------------- Diluted earnings per share before special items $ 1.78 $ 1.48 $ 1.26 20.3 17.5 Special items (.05) (.03) .07 66.7 * - -------------------------------------------------------------------------------- Diluted earnings per share $ 1.73 $ 1.45 $ 1.33 19.3 9.0 - -------------------------------------------------------------------------------- For an explanation of special items, see "Special Items" on page. |
OPERATING SEGMENT INFORMATION REVENUES, EBITDA AND OPERATING PROFIT Consolidated revenues, EBITDA and operating profit by business segment were as follows: - -------------------------------------------------------------------------------- % Change (In millions) 1999 1998 1997 99-98 98-97 - -------------------------------------------------------------------------------- Revenues Newspapers $2,869.9 $2,664.4 $2,557.1 7.7 4.2 Broadcast 150.1 151.2 144.5 (0.7) 4.6 Magazines 110.6 121.1 164.8 (8.7) (26.5) - -------------------------------------------------------------------------------- Total segment revenues $3,130.6 $2,936.7 $2,866.4 6.6 2.5 - -------------------------------------------------------------------------------- EBITDA Newspapers $ 724.9 $ 644.3 $ 594.2 12.5 8.4 Broadcast 63.2 62.8 57.3 0.7 9.6 Magazines 19.4 17.7 21.0 9.4 (15.5) - -------------------------------------------------------------------------------- Total Segment EBITDA $ 807.5 $ 724.8 $ 672.5 11.4 7.8 - -------------------------------------------------------------------------------- Operating Profit Newspapers $ 556.3 $ 477.8 $ 434.1 16.4 10.1 Broadcast 45.8 45.1 39.4 1.6 14.6 Magazines 18.1 22.1 28.3 (18.4) (22.0) Unallocated corporate expenses (48.9) (29.8) (46.7) (64.0) 36.1 - -------------------------------------------------------------------------------- Total segment operating profit $ 571.3 $ 515.2 $ 455.1 10.9 13.2 - -------------------------------------------------------------------------------- Newspaper Group For the years presented, the Newspaper Group includes The New York Times ("The Times"), The Boston Globe ("The Globe"), 21 regional newspapers ("The Regionals"), newspaper distributors, a news service, a features syndicate, TimesFax, licensing operations of the New York Times databases and microfilm and Internet-related ventures. |
- -------------------------------------------------------------------------------- % Change (In millions) 1999 1998 1997 99-98 98-97 - -------------------------------------------------------------------------------- Revenues Newspapers $2,839.4 $2,646.9 $2,546.0 7.3 4.0 Internet 30.5 17.5 11.1 74.7 57.4 - -------------------------------------------------------------------------------- Total revenues $2,869.9 $2,664.4 $2,557.1 7.7 4.2 - -------------------------------------------------------------------------------- EBITDA Newspapers $ 741.5 $ 656.1 $ 601.4 13.0 9.1 Internet (16.6) (11.8) (7.2) (41.1) (64.8) - -------------------------------------------------------------------------------- Total EBITDA $ 724.9 $ 644.3 $ 594.2 12.5 8.4 - -------------------------------------------------------------------------------- Operating Profit (Loss) Newspapers $ 577.9 $ 490.8 $ 441.4 17.7 11.2 Internet (21.6) (13.0) (7.3) (65.7) (79.3) - -------------------------------------------------------------------------------- Total Operating Profit $ 556.3 $ 477.8 $ 434.1 16.4 10.1 - -------------------------------------------------------------------------------- The Newspaper Group's operating profit for 1999 rose to $556.3 million, compared with $477.8 million in 1998. |
Advertising, circulation and other revenue, by major product of the Newspaper Group, were as follows: - -------------------------------------------------------------------------------- % Change (In millions) 1999 1998 1997 99-98 98-97 - -------------------------------------------------------------------------------- The New York Times Advertising $1,192.0 $1,058.9 $ 989.5 12.6 7.0 Circulation 452.6 440.6 426.0 2.7 3.4 Other 144.4 142.1 144.2 1.6 (1.4) - -------------------------------------------------------------------------------- Total $1,789.0 $1,641.6 $1,559.7 9.0 5.3 - -------------------------------------------------------------------------------- The Boston Globe Advertising $ 477.5 $ 448.2 $ 440.3 6.5 1.8 Circulation 133.7 133.4 134.5 0.2 (0.8) Other 14.0 8.2 7.8 70.7 5.3 - -------------------------------------------------------------------------------- Total $ 625.2 $ 589.8 $ 582.6 6.0 1.2 - -------------------------------------------------------------------------------- Regional Newspapers Advertising $ 362.7 $ 341.7 $ 323.2 6.1 5.7 Circulation 76.9 77.3 77.6 (0.5) (0.4) Other 16.1 14.0 14.0 15.6 -- - -------------------------------------------------------------------------------- Total $ 455.7 $ 433.0 $ 414.8 5.3 4.4 - -------------------------------------------------------------------------------- Total Newspaper Group Advertising $2,032.2 $1,848.8 $1,753.0 9.9 5.5 Circulation 663.2 651.3 638.1 1.8 2.1 Other 174.5 164.3 166.0 6.2 (1.0) - -------------------------------------------------------------------------------- Total $2,869.9 $2,664.4 $2,557.1 7.7 4.2 - -------------------------------------------------------------------------------- Advertising volume for The Times, The Globe and The Regionals was as follows: - -------------------------------------------------------------------------------- (Inches in thousands, preprints in % Change thousands --------------- of copies) 1999 1998 1997 99-98 98-97 - -------------------------------------------------------------------------------- The New York Times Retail 567.3 587.2 606.8 (3.4) (3.2) National 1,582.1 1,392.7 1,330.8 13.6 4.7 Classified 984.1 996.9 971.1 (1.3) 2.7 Zoned 1,015.7 1,019.6 1,034.6 (0.4) (1.4) - -------------------------------------------------------------------------------- Total 4,149.2 3,996.4 3,943.3 3.8 1.3 - -------------------------------------------------------------------------------- Preprints 427,857 343,070 318,490 24.7 7.7 - -------------------------------------------------------------------------------- The Boston Globe Retail 667.5 701.9 729.6 (4.9) (3.8) National 753.1 697.4 629.6 8.0 10.6 Classified 1,354.3 1,350.5 1,346.1 0.3 0.4 Zoned 256.2 278.9 304.5 (8.2) (8.2) - -------------------------------------------------------------------------------- Total 3,031.1 3,028.7 3,009.8 0.1 0.6 - -------------------------------------------------------------------------------- Preprints 801,842 787,016 729,228 1.9 7.9 - -------------------------------------------------------------------------------- Regional Newspapers Retail 7,575.4 7,884.4 7,830.4 (3.9) 0.7 National 285.0 252.7 274.9 12.8 (8.0) Classified 7,870.3 7,460.4 7,086.7 5.5 5.3 Zoned 456.4 476.4 453.9 (4.2) 4.8 - -------------------------------------------------------------------------------- Total 16,187.1 16,073.9 15,645.9 0.7 2.7 - -------------------------------------------------------------------------------- Preprints 1,115,303 1,082,712 1,013,200 3.0 6.9 - -------------------------------------------------------------------------------- Circulation for The Times, The Globe and The Regionals was as follows: - -------------------------------------------------------------------------------- Weekday Sunday --------------------- ---------------------- (Copies in thousands) 1999 % Change 1999 % Change - -------------------------------------------------------------------------------- Average Circulation The New York Times 1,110.2 1.5 1,668.1 1.4 The Boston Globe 468.9 (0.2) 728.5 (2.2) Regional Newspapers 732.7 (0.6) 779.5 (1.0) - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Weekday Sunday --------------------- ---------------------- (Copies in thousands) 1998 % Change 1998 % Change - -------------------------------------------------------------------------------- Average Circulation The New York Times 1,094.1 0.5 1,644.8 (0.4) The Boston Globe 469.9 (1.1) 745.2 (1.3) Regional Newspapers 736.8 0.5 787.6 (0.1) - -------------------------------------------------------------------------------- Circulation growth for The Times was primarily due to additional availability and promotion in major markets across the nation combined with programs to improve the quality and levels of its home delivery circulation base. |
- -------------------------------------------------------------------------------- % Change (In millions) 1999 1998 1997 99-98 98-97 - -------------------------------------------------------------------------------- Revenues - -------------------------------------------------------------------------------- Magazines $110.6 $115.3 $154.8 (4.1) (25.5) Non-Compete Agreement -- 5.8 10.0 * * - -------------------------------------------------------------------------------- Total Revenues $110.6 $121.1 $164.8 (8.7) (26.5) - -------------------------------------------------------------------------------- EBITDA $ 19.4 $ 17.7 $ 21.0 9.4 (15.5) - -------------------------------------------------------------------------------- Operating Profit - -------------------------------------------------------------------------------- Magazines $ 18.1 $ 16.3 $ 18.3 10.8 (11.2) Non-Compete Agreement -- 5.8 10.0 * * - -------------------------------------------------------------------------------- Total Operating Profit $ 18.1 $ 22.1 $ 28.3 (18.4) (22.0) - -------------------------------------------------------------------------------- The Magazine Group's operating profit declined in 1999 to $18.1 million from $22.1 million in 1998 and $28.3 million in 1997. |
Condensed combined balance sheets of the Paper Mills were as follows: - -------------------------------------------------------------------------------- Condensed Combined Balance Sheets Of Paper Mills - -------------------------------------------------------------------------------- December 26, December 27, (In thousands) 1999 1998 - -------------------------------------------------------------------------------- Current assets $ 66,606 $ 64,703 Less current liabilities 32,912 42,544 - -------------------------------------------------------------------------------- Working capital 33,694 22,159 Fixed assets, net 200,307 203,114 Deferred income taxes and other (53,637) (60,403) - -------------------------------------------------------------------------------- Net assets $180,364 $164,870 - -------------------------------------------------------------------------------- During 1999, 1998 and 1997 the Company's Newspaper Group purchased newsprint and supercalendered paper from the Paper Mills at competitive prices. |
DEBT Long-term debt consists of the following: - -------------------------------------------------------------------------------- December 26, December 27, (In thousands) 1999 1998 - -------------------------------------------------------------------------------- 5.77% Senior Notes due 2000(a) $100,000 $100,000 7.625% Notes due 2005, net of 246,116 245,599 unamortized debt costs of $3,884 in 1999, and $4,401 in 1998, effective interest rate 7.996%(b) 8.25% Debentures due 2025 (due 69,675 69,647 2005 at option of Company), net of unamortized debt costs of $2,225 in 1999 and $2,253 in 1998, effective interest rate 8.553%(b) 5.0%-7.125% Medium-Term Notes 196,836 98,449 due 2003 and 2008, net of unamortized debt costs of $1,164 in 1999 and $551 in 1998(c) - -------------------------------------------------------------------------------- Total notes and debentures 612,627 513,695 - -------------------------------------------------------------------------------- Less current portion 100,000 -- - -------------------------------------------------------------------------------- Total long-term debt $512,627 $513,695 - -------------------------------------------------------------------------------- (a) In October 1993 the Company issued senior notes totaling $200.0 million with interest payable semi-annually. |
The components of income tax expense as shown in the Consolidated Statements of Income were as follows: - -------------------------------------------------------------------------------- (In thousands) 1999 1998 1997 - -------------------------------------------------------------------------------- Current tax expense Federal $194,535 $180,583 $146,550 State, local, foreign 78,384 40,317 55,073 - -------------------------------------------------------------------------------- Total current expense 272,919 220,900 201,623 - -------------------------------------------------------------------------------- Deferred tax (benefit) expense Federal (16,157) (10,529) (24,102) State, local, foreign (28,475) 8,519 (2,457) - -------------------------------------------------------------------------------- Total deferred benefit (44,632) (2,010) (26,559) - -------------------------------------------------------------------------------- Income tax expense $228,287 $218,890 $175,064 - -------------------------------------------------------------------------------- Income tax benefits, which related to the exercise of options and the employee stock purchase plan, reduced current taxes payable and increased additional paid-in capital by $35.5 million in 1999, $32.0 million in 1998 and $38.6 million in 1997. |
The components of the net deferred tax liabilities recognized on the respective Consolidated Balance Sheets were as follows: - -------------------------------------------------------------------------------- December 26, December 27, (In thousands) 1999 1998 - -------------------------------------------------------------------------------- Deferred Tax Assets Retirement, postemployment and deferred compensation plans $211,131 $184,359 Accruals for other employee benefits, compensation, insurance and other 62,587 51,499 Accounts receivable allowances 11,803 25,278 Other 45,530 43,727 - -------------------------------------------------------------------------------- Total deferred tax assets 331,051 304,863 Valuation allowance (3,303) (3,749) - -------------------------------------------------------------------------------- Net deferred tax assets 327,748 301,114 - -------------------------------------------------------------------------------- Deferred Tax Liabilities Property, plant and equipment 257,502 261,176 Intangible assets 102,315 105,204 Investments in Joint Ventures 39,592 42,644 Other 15,761 16,746 - -------------------------------------------------------------------------------- Total deferred tax liabilities 415,170 425,770 - -------------------------------------------------------------------------------- Net deferred tax liability 87,422 124,656 - -------------------------------------------------------------------------------- Amounts included in Other current assets 53,611 40,612 - -------------------------------------------------------------------------------- Deferred income tax liability $141,033 $165,268 - -------------------------------------------------------------------------------- As of December 26, 1999, "Accumulated other comprehensive income (loss)" in the Company's Consolidated Balance Sheets and Consolidated Statements of Stockholders' Equity was net of a deferred income tax liability of $2.6 million, and net of a deferred income tax asset of $2.1 million as of December 27, 1998. |
132, Employer's Disclosures about Pensions and Other Postretirement Benefits, the components of net periodic pension cost for all Company-sponsored pension plans were as follows: - -------------------------------------------------------------------------------- (In thousands) 1999 1998 1997 - -------------------------------------------------------------------------------- Service cost $ 25,248 $ 22,093 $ 19,645 Interest cost 54,781 51,367 48,734 Expected return on plan assets (48,190) (44,521) (40,164) Recognized actuarial loss 1,655 958 1,006 Amortization of prior service cost 576 433 433 Amortization of transition obligation 609 637 637 - -------------------------------------------------------------------------------- Net periodic pension cost $ 34,679 $ 30,967 $ 30,291 - -------------------------------------------------------------------------------- Assumptions used in the actuarial computations were as follows: - -------------------------------------------------------------------------------- 1999 1998 1997 - -------------------------------------------------------------------------------- Discount rate 7.75% 6.75% 7.25% Rate of increase in compensation levels 5.00% 5.00% 5.50% Expected long-term rate of return on assets 9.00% 8.75% 8.75% - -------------------------------------------------------------------------------- In connection with collective bargaining agreements, the Company contributes to several other pension plans, including a joint Company-union plan and a number of joint industry-union plans. |
The changes in benefit obligation and plan assets at September 30, 1999, and 1998 were as follows: - -------------------------------------------------------------------------------- (In thousands) 1999 1998 - -------------------------------------------------------------------------------- Change in benefit obligation Benefit obligation at prior measurement date $ 813,224 $ 723,497 Service cost 25,248 22,093 Interest cost 54,781 51,367 Plan participants' contribution 86 226 Amendments 8,077 -- Actuarial (gain)/loss (114,015) 44,665 Special termination benefits -- 824 Benefits paid (32,016) (29,448) - -------------------------------------------------------------------------------- Benefit obligation at current measurement date 755,385 813,224 - -------------------------------------------------------------------------------- Change in plan assets Fair value of plan assets at prior measurement date 578,155 620,562 Actual return on plan assets 94,793 (18,939) Employer contribution 6,126 5,754 Plan participants' contributions 86 226 Benefits paid (32,016) (29,448) - -------------------------------------------------------------------------------- Fair value of plan assets at current measurement date 647,144 578,155 - -------------------------------------------------------------------------------- Funded status (108,241) (235,069) Unrecognized actuarial (gain)/loss (110,971) 50,904 Unrecognized transition obligation 393 1,009 Unrecognized prior service cost 10,008 2,515 Contribution paid after measurement date 1,618 1,461 - -------------------------------------------------------------------------------- Net amount recognized $ (207,193) $(179,180) - -------------------------------------------------------------------------------- As of December 26, 1999, the projected benefit obligation was $115.3 million and the accumulated benefit obligation was $88.1 million. |
The accumulated postretirement benefit obligation assumptions were as follows: - -------------------------------------------------------------------------------- 1999 1998 1997 - -------------------------------------------------------------------------------- Discount rate 7.75% 6.75% 7.25% Estimated increase in compensation level 5.00% 5.00% 5.50% Healthcare cost trend rate range 7.75%-7.25% 8.50%-7.50% 9.25%-8.00% Grading down to percent in the year 2000 5.00% 5.00% 5.00% - -------------------------------------------------------------------------------- A one-percentage point change in assumed health care cost trend rates would have the following effects in 1999: - -------------------------------------------------------------------------------- One-Percentage Point One-Percentage Point (In thousands) Increase Decrease - -------------------------------------------------------------------------------- Effect on total service and interest cost for 1999 $ 2,314 $ (1,918) Effect on accumulated postretirement benefit obligation as of December 26, 1999 $19,665 $(16,624) - -------------------------------------------------------------------------------- The accrued postretirement benefit liability and the change in benefit obligation at September 30 in each year were as follows: - -------------------------------------------------------------------------------- (In thousands) 1999 1998 - -------------------------------------------------------------------------------- Change in benefit obligation Benefit obligation at prior measurement date $ 140,149 $ 127,420 Service cost 4,363 4,129 Interest cost 8,499 8,822 Actuarial (gain)/loss (29,598) 9,195 Amendments (3,189) (6,050) Benefits paid (4,597) (3,367) - -------------------------------------------------------------------------------- Benefit obligation at current measurement date 115,627 140,149 - -------------------------------------------------------------------------------- Change in plan assets Fair value of plan assets at prior measurement date -- -- Employer contribution 4,597 3,367 Benefits paid (4,597) (3,367) - -------------------------------------------------------------------------------- Fair value of plan assets at current measurement date -- -- - -------------------------------------------------------------------------------- Funded status (115,627) (140,149) Unrecognized actuarial gain (44,965) (16,253) Unrecognized prior service cost (15,674) (14,577) Contribution paid after measurement date 1,303 609 - -------------------------------------------------------------------------------- Net amount recognized $(174,963) $(170,370) - -------------------------------------------------------------------------------- In connection with collective bargaining agreements, the Company contributes to several welfare plans, including a joint Company-union plan and a number of joint industry-union plans. |
Shares of Class A Common Stock reserved for issuance were as follows: - -------------------------------------------------------------------------------- December 26, December 27, (Shares in thousands) 1999 1998 - -------------------------------------------------------------------------------- Stock Options Outstanding 21,667 20,317 Available 6,296 11,256 - -------------------------------------------------------------------------------- Employee Stock Purchase Plan Available 2,921 4,444 - -------------------------------------------------------------------------------- Voluntary Conversion of Class B Common Stock Available 847 849 - -------------------------------------------------------------------------------- Retirement Units and Other Awards Outstanding 125 150 Available 1,933 1,933 - -------------------------------------------------------------------------------- Total Outstanding 21,792 20,467 Available 11,997 18,482 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 14. |
Advertising, circulation and other revenue, by major product of the Newspaper Group, were as follows: - -------------------------------------------------------------------------------- % Change ---------------- (In millions) 1999 1998 1997 99-98 98-97 - -------------------------------------------------------------------------------- The New York Times Advertising $1,192.0 $1,058.9 $ 989.5 12.6 7.0 Circulation 452.6 440.6 426.0 2.7 3.4 Other 144.4 142.1 144.2 1.6 (1.4) - -------------------------------------------------------------------------------- Total $1,789.0 $1,641.6 $1,559.7 9.0 5.3 - -------------------------------------------------------------------------------- The Boston Globe Advertising $ 477.5 $ 448.2 $ 440.3 6.5 1.8 Circulation 133.7 133.4 134.5 0.2 (0.8) Other 14.0 8.2 7.8 70.7 5.3 - -------------------------------------------------------------------------------- Total $ 625.2 $ 589.8 $ 582.6 6.0 1.2 - -------------------------------------------------------------------------------- Regional Newspapers Advertising $ 362.7 $ 341.7 $ 323.2 6.1 5.7 Circulation 76.9 77.3 77.6 (0.5) (0.4) Other 16.1 14.0 14.0 15.6 -- - -------------------------------------------------------------------------------- Total $ 455.7 $ 433.0 $ 414.8 5.3 4.4 - -------------------------------------------------------------------------------- Total Newspaper Group Advertising $2,032.2 $1,848.8 $1,753.0 9.9 5.5 Circulation 663.2 651.3 638.1 1.8 2.1 Other 174.5 164.3 166.0 6.2 (1.0) - -------------------------------------------------------------------------------- Total $2,869.9 $2,664.4 $2,557.1 7.7 4.2 - -------------------------------------------------------------------------------- The Company's segment depreciation and amortization, capital expenditures and identifiable assets reconciled to consolidated amounts were as follows: (1) Capital expenditures exclude additions to capitalized leases for the Edison Facility in 1998 (see Note 14) - -------------------------------------------------------------------------------- 18. |
o $15.5 million pre-tax charge ($.05 per share) principally for Buyouts at The Globe o $4.6 million pre-tax gain ($.01 per share) from the sale of equipment o $7.7 million after-tax extraordinary charge ($.04 per share) in connection with the Company's repurchase of $78.1 million of its $150.0 million, 8.25% notes due in 2025 o $8.0 million pre-tax gain ($.02 per share) from the satisfaction of a post-closing requirement related to the 1997 sale of assets of the Company's tennis, sailing and ski magazines o $5.4 million pre-tax charge ($.02 per share) for Buyouts o $10.4 million pre-tax gain ($.03 per share) resulting from the sale of assets of the Company's tennis, sailing and ski magazines and certain small properties, net of costs associated with the exit of a golf tee-time reservation operation o $10.1 million pre-tax noncash accounting charge ($.03 per share) related to EITF 97-13 o $8.5 million pre-tax charge ($.02 per share) for Buyouts o $18.0 million ($.09 per share) favorable tax adjustment o $126.8 million pre-tax noncash accounting charge ($.49 basic earnings per share, $.48 diluted earnings per share) related to SFAS 121 o $44.1 million pre-tax charge ($.13 basic earnings per share, $.12 diluted earnings per share) for Buyouts o $32.9 million pre-tax gain ($.09 per share) from the sale of a building and the realization of a gain contingency from the disposition of a paper mill in a prior year. |
o $11.3 million pre-tax gain ($.03 per share) from the sales of several small newspapers o $10.1 million pre-tax charge ($.03 per share) for Buyouts o $200.9 million pre-tax gain ($.50 basic earnings per share, $.49 diluted earnings per share) from the sales of the Women's Magazines Division and U.K. golf publications, and the disposition of a minority interest in a newsprint mill o $3.7 million pre-tax charge ($.01 per share) for rate adjustments due to a severe snowstorm o $4.4 million ($.02 per share) of additional tax expense for remeasurement of deferred tax balances due to the enactment of the Revenue Reconciliation Act of 1993 o $1.2 million ($.01 per share) of additional tax expense due to the Revenue Reconciliation Act of 1993 which increased the federal corporate income tax rate o $2.6 million pre-tax gain ($.01 per share) from the sale of assets o $35.4 million of pre-tax charges ($.12 per share) for Buyouts o $47.0 million pre-tax noncash charge ($.28 per share) to write down a joint venture investment o $53.8 million pre-tax loss ($.24 per share) on the closing of The Gwinnett Daily News (GA) o $3.1 million pre-tax gain ($.01 per share) from the sale of assets o $28.0 million pre-tax charge ($.10 per share) for Buyouts o $21.4 million pre-tax charge ($.08 per share) for labor disruptions, training and start-up costs at Edison o $34.0 million after-tax net cumulative effect of accounting changes ($.22 per share) includes the change in methods of accounting for income taxes, postretirement benefits other than pensions and postemployment benefits o $20.0 million pre-tax charge ($.08 per share) for Buyouts at The Times o $10.0 million reversal of a provision ($.06 per share) for income taxes related to a favorable tax settlement S-1 THE NEW YORK TIMES COMPANY VALUATION AND QUALIFYING ACCOUNTS For the Three Years Ended December 26, 1999 * Uncollectible account balances of $0.4 million were reclassified as assets held for sale in 1999. |
Related Businesses Name Description of Business - -------------------------------------------------------------------------------- The New York Times Electronic Media Company: - -------------------------------------------------------------------------------- NYT Business Information Services Produces on-line computer databases and The New York Times Index, a print publication Licenses LEXIS/NEXIS, Dow Jones Business Information Services, UMI, The Dialog Corp., Online Computer Library Center and Reuters to store, market and distribute the Company's on-line computer databases Also licenses UMI to produce and sell The New York Times Index and The Times on microfilm and CD-ROM - -------------------------------------------------------------------------------- Consumer On-line Products The New York Times on America Online The New York Times on the Web (nytimes.com) New York Today (nytoday.com) The New York Times Learning Network (nytimes.com/learning) - -------------------------------------------------------------------------------- NYT Television Pursues certain programming ventures utilizing The Times and other content - -------------------------------------------------------------------------------- The New York Times News Services: - -------------------------------------------------------------------------------- The New York Times News Service Transmits articles, graphics and photographs from The Times, The Globe and other publications to approximately 650 newspapers and magazines in the United States and in more than 50 countries worldwide - -------------------------------------------------------------------------------- The New York Times Syndicate Markets other supplemental news services and feature material, graphics and photographs from The Times and other leading news sources to newspapers and magazines around the world - -------------------------------------------------------------------------------- The Boston Globe The Globe is owned and published by the Company's subsidiary, Globe Newspaper Company, Inc. ("The Globe" may also be used to refer to Globe Newspaper Company, Inc.). |
In 1998 and 1997, the Company used the following types and quantities of paper (all amounts in metric tons): Coated, Supercalendered Publication Newsprint and Other Paper ----------------------------------------------------------- 1998 1997 1998 1997 ----------------------------------------------------------- The Times(1) 312,000 295,000 22,000 22,000 ----------------------------------------------------------- The Globe(1) 141,000 141,000 5,000 5,000 ----------------------------------------------------------- Regional Newspapers 98,500 94,000 -- -- ----------------------------------------------------------- Magazine Group -- -- 9,900 14,500(2) ----------------------------------------------------------- TOTAL 551,500 530,000 36,900 41,500 ----------------------------------------------------------- The paper used by The Times, The New York Times Magazine, The Globe, the Regional Newspapers and the magazines published by the Magazine Group was purchased under long-term contracts with unrelated suppliers and related suppliers in which the Company holds equity interests (see "Forest Products Investments"). |
General Character Approximate Area in Approximate Area in of Property Square Feet (Owned) Square Feet (Leased) - -------------------------------------------------------------------------- NEWSPAPER PUBLISHING: - -------------------------------------------------------------------------- Printing plants, business and editorial offices, garages and warehouse space located in: - -------------------------------------------------------------------------- New York, NY 714,000 107,500 - -------------------------------------------------------------------------- College Point, NY -- 515,000(1) - -------------------------------------------------------------------------- Edison, NJ -- 1,300,000(2) - -------------------------------------------------------------------------- Boston, MA 652,000 -- - -------------------------------------------------------------------------- Billerica, MA 290,000 -- - -------------------------------------------------------------------------- Westwood, MA 115,000 -- - -------------------------------------------------------------------------- Other locations 1,324,600 548,000 - -------------------------------------------------------------------------- BROADCASTING - -------------------------------------------------------------------------- Business offices, studios and transmitters at various locations 324,820 25,000 - -------------------------------------------------------------------------- MAGAZINE PUBLISHING 87,000 34,500 - -------------------------------------------------------------------------- TOTAL 3,507,420 2,530,000 - -------------------------------------------------------------------------- ITEM 3. |
Signature Title Date - --------- ----- ---- ARTHUR OCHS SULZBERGER Chairman Emeritus, Director February 26, 1999 ARTHUR SULZBERGER, JR. Chairman, Director (Principal February 26, 1999 Executive Officer) RUSSELL T. LEWIS Chief Executive Officer, February 26, 1999 President and Director MICHAEL GOLDEN Vice Chairman, Senior Vice February 26, 1999 President and Director JOHN F. AKERS Director February 26, 1999 BRENDA C. BARNES Director February 26, 1999 RICHARD L. GELB Director February 26, 1999 ROBERT A. LAWRENCE Director February 26, 1999 ELLEN R. MARRAM Director February 26, 1999 JOHN M. O'BRIEN Senior Vice President and February 26, 1999 Chief Financial Officer (Principal Financial Officer) CHARLES H. PRICE II Director February 26, 1999 GEORGE L. SHINN Director February 26, 1999 DONALD M. STEWART Director February 26, 1999 STUART STOLLER Vice President, Corporate February 26, 1999 Controller (Principal Accounting Officer) JUDITH P. SULZBERGER Director February 26, 1999 WILLIAM O. TAYLOR Director February 26, 1999 THE NEW YORK TIMES COMPANY Appendix 1998 Financial Report - -------------------------------------------------------------------------------- Contents Page - -------------------------------------------------------------------------------- Selected Financial Data Management's Discussion and Analysis Consolidated Statements of Income Consolidated Balance Sheets Consolidated Statements of Cash Flows Consolidated Statements of Stockholders' Equity Notes to the Consolidated Financial Statements Independent Auditors' Report Management's Responsibilities Report Market Information Quarterly Information Ten-Year Supplemental Financial Data - -------------------------------------------------------------------------------- SELECTED FINANCIAL DATA All earnings per share amounts for special items on the following page are the same for basic and diluted earnings per share unless otherwise noted. |
[GRAPHIC OMITTED] Wages and Benefits 41% Raw Materials 15% Other Operating Costs 36% Depreciation & Amortization 8% RESULTS OF OPERATIONS CONSOLIDATED RESULTS The Company's consolidated financial results for 1998, 1997 and 1996 were as follows: - -------------------------------------------------------------------------------- % Change --------------- (In millions, 1998 1997 1996 98-97 97-96 except per share data) - -------------------------------------------------------------------------------- Revenues $ 2,937 $ 2,866 $ 2,628 2.5% 9.1% - -------------------------------------------------------------------------------- Operating profit $ 515 $ 455 $ 173 13.2% N/A - -------------------------------------------------------------------------------- Net Income before special items $ 283 $ 249 $ 187 13.7% 33.2% Special items (4) 13 (102) N/A N/A - -------------------------------------------------------------------------------- Total $ 279 $ 262 $ 85 6.5% N/A - -------------------------------------------------------------------------------- Diluted earnings per share before special items $ 1.48 $ 1.26 $ .94 17.5% 34.0% Special items (.03) .07 (.51) N/A N/A - -------------------------------------------------------------------------------- Total $ 1.45 $ 1.33 $ .43 9.0% N/A - -------------------------------------------------------------------------------- Revenues were $2.94 billion in 1998, up from $2.87 billion in 1997. |
OPERATING SEGMENT INFORMATION REVENUES AND OPERATING PROFIT Consolidated revenues, EBITDA and operating profit by business segment were as follows: - -------------------------------------------------------------------------------- % Change ------------------ (In millions) 1998 1997 1996 98-97 97-96 - -------------------------------------------------------------------------------- Revenues Newspapers $ 2,665 $ 2,557 $ 2,348 4.2% 8.9% Broadcast 151 144 119 4.9% 21.0% Magazines 121 165 161 (26.7%) 2.5% - -------------------------------------------------------------------------------- Total revenues $ 2,937 $ 2,866 $ 2,628 2.5% 9.1% - -------------------------------------------------------------------------------- EBITDA Newspapers $ 644 $ 594 $ 444 8.4% 33.8% Broadcast 63 57 45 10.5% 26.7% Magazines 18 21 19 (14.3%) 10.5% - -------------------------------------------------------------------------------- Total Segment EBITDA $ 725 $ 672 $ 508 7.9% 32.3% - -------------------------------------------------------------------------------- Operating Profit Newspapers $ 478 $ 435 $ 180 9.9% N/A Broadcast 45 39 31 15.4% 25.8% Magazines 22 28 25 (21.4%) 12.0% Unallocated corporate expenses (30) (47) (63) 36.2% 25.4% - -------------------------------------------------------------------------------- Total operating profit $ 515 $ 455 $ 173 13.2% N/A - -------------------------------------------------------------------------------- Newspaper Group The Newspaper Group includes The New York Times (the "Times"), The Boston Globe (the "Globe"), 21 regional newspapers (the "Regionals"), newspaper distributors, a news service, a features syndicate, TimesFax, licensing operations of the Times, databases/microfilm and New Ventures. |
- -------------------------------------------------------------------------------- (In millions) 1998 1997 1996 - -------------------------------------------------------------------------------- Revenues Newspapers $ 2,642 $ 2,541 $ 2,339 New Ventures 23 16 9 - -------------------------------------------------------------------------------- Total Revenues $ 2,665 $ 2,557 $ 2,348 - -------------------------------------------------------------------------------- EBITDA Newspapers $ 656 $ 600 $ 455 New Ventures (12) (6) (11) - -------------------------------------------------------------------------------- Total EBITDA $ 644 $ 594 $ 444 - -------------------------------------------------------------------------------- Operating Profit (Loss) Newspapers $ 491 $ 442 $ 196 New Ventures (13) (7) (16) - -------------------------------------------------------------------------------- Total Operating Profit $ 478 $ 435 $ 180 - -------------------------------------------------------------------------------- The Newspaper Group's operating profit for 1998 rose to $478 million, compared with $435 million in 1997. |
Advertising, circulation and other revenue, by major product of the Newspaper Group, were as follows: - -------------------------------------------------------------------------------- % Change ------------------ (In millions) 1998 1997 1996 98-97 97-96 - -------------------------------------------------------------------------------- The New York Times Advertising $1,059 $ 989 $ 881 7.0% 12.3% Circulation 442 428 418 3.3% 2.4% Other 141 142 113 (0.7%) 25.7% - -------------------------------------------------------------------------------- Total $1,642 $1,559 $1,412 5.3% 10.4% - -------------------------------------------------------------------------------- The Boston Globe Advertising $ 449 $ 441 $ 402 1.8% 9.7% Circulation 133 134 132 (0.7%) 1.5% Other 8 8 5 N/A N/A - -------------------------------------------------------------------------------- Total $ 590 $ 583 $ 539 1.2% 8.2% - -------------------------------------------------------------------------------- Regional Newspapers Advertising $ 342 $ 323 $ 308 5.9% 4.9% Circulation 77 78 76 (1.3%) 2.6% Other 14 14 13 N/A 7.7% - -------------------------------------------------------------------------------- Total $ 433 $ 415 $ 397 4.3% 4.5% - -------------------------------------------------------------------------------- Total Newspaper Group Advertising $1,850 $1,753 $1,591 5.5% 10.2% Circulation 652 640 626 1.9% 2.2% Other 163 164 131 (0.6%) 25.2% - -------------------------------------------------------------------------------- Total $2,665 $2,557 $2,348 4.2% 8.9% - -------------------------------------------------------------------------------- Advertising volume for the Times, the Globe and the Regionals was as follows: - -------------------------------------------------------------------------------- % Change ------------------ (Inches in thousands, preprints in thousands of copies) 1998 1997 1996 98-97 97-96 - -------------------------------------------------------------------------------- The New York Times Retail 587 607 620 (3.3%) (2.1%) National 1,393 1,331 1,230 4.7% 8.2% Classified 997 971 918 2.7% 5.8% Zoned 1,019 1,034 1,000 (1.5%) 3.4% - -------------------------------------------------------------------------------- Total 3,996 3,943 3,768 1.3% 4.6% - -------------------------------------------------------------------------------- Preprints 343,070 318,490 296,839 7.7% 7.3% - -------------------------------------------------------------------------------- The Boston Globe Retail 702 730 765 (3.8%) (4.6%) National 697 630 555 10.6% 13.5% Classified 1,351 1,346 1,295 0.4% 3.9% Zoned 279 304 304 (8.2%) N/A - -------------------------------------------------------------------------------- Total 3,029 3,010 2,919 0.6% 3.1% - -------------------------------------------------------------------------------- Preprints 787,016 729,228 686,628 7.9% 6.2% - -------------------------------------------------------------------------------- Regional Newspaper Retail 7,884 7,830 7,933 0.7% (1.3%) National 253 275 240 (8.0%) 14.6% Classified 476 454 479 4.8% (5.2%) Zoned 7,461 7,087 6,951 5.3% 2.0% - -------------------------------------------------------------------------------- Total 16,074 15,646 15,603 2.7% 0.3% - -------------------------------------------------------------------------------- Preprints 1,082,712 1,013,200 928,765 6.9% 9.1% - -------------------------------------------------------------------------------- Circulation for the Times, the Globe and the Regionals was as follows: - -------------------------------------------------------------------------------- Weekday Sunday (Copies in thousands) 1998 % Change 1998 % Change - -------------------------------------------------------------------------------- Average Circulation The New York Times 1,094 .5% 1,645 (.4%) The Boston Globe 470 (1.1%) 746 (1.3%) Regional Newspapers 737 .5% 788 (.1%) - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Weekday Sunday (Copies in thousands) 1997 % Change 1997 % Change - -------------------------------------------------------------------------------- Average Circulation The New York Times 1,089 (1.2%) 1,651 (1.7%) The Boston Globe 475 .6% 755 (1.0%) Regional Newspapers 733 .5% 789 (0.2%) - -------------------------------------------------------------------------------- In 1998 the Times took several steps to improve the quality and levels of its home delivery circulation base. |
- -------------------------------------------------------------------------------- (In millions) 1998 1997 1996 - -------------------------------------------------------------------------------- Revenues Magazines $ 114 $ 153 $ 150 Non-Compete Agreement 6 10 10 New Ventures 1 2 1 - -------------------------------------------------------------------------------- Total Revenues $ 121 $ 165 $ 161 - -------------------------------------------------------------------------------- EBITDA Magazines $ 19 $ 28 $ 26 New Ventures (1) (7) (7) - -------------------------------------------------------------------------------- Total EBITDA $ 18 $ 21 $ 19 - -------------------------------------------------------------------------------- Operating Profit (Loss) Magazines $ 17 $ 26 $ 23 Non-Compete Agreement 6 10 10 New Ventures (1) (8) (8) - -------------------------------------------------------------------------------- Total Operating Profit $ 22 $ 28 $ 25 - -------------------------------------------------------------------------------- The Magazine Group's operating profit declined in 1998 to $22 million from $28 million in 1997 and $25 million in 1996. |
DEBT Long-term debt consists of the following: - ----------------------------------------------------------------------------- December 27, December 28, (In thousands) 1998 1997 - ----------------------------------------------------------------------------- 5.50% - 5.77% Senior Notes due $100,000 $200,000 1998 and 2000(a) 7.625% Notes due 2005, net of 245,599 245,001 unamortized debt costs of $4,461 in 1998, and $4,999 in 1997, effective interest rate 7.996%(b) 8.25% Debentures due 2025 (due 69,647 145,236 2005 at option of Company), net of unamortized debt costs of $2,253 in 1998 and $4,764 in 1997, effective interest rate 8.553%(b) 5%-5.625% Medium Term Notes 98,449 -- due 2003 and 2008, net of unamortized debt costs of $551(c) - ----------------------------------------------------------------------------- Total notes and debentures 513,695 590,237 - ----------------------------------------------------------------------------- Less current portion -- 100,000 - ----------------------------------------------------------------------------- Total long-term debt $513,695 $490,237 - ----------------------------------------------------------------------------- (a) In October 1993 the Company issued senior notes totaling $200 million with interest payable semi-annually. |
The components of income tax expense as shown in the Consolidated Statements of were as follows: - ------------------------------------------------------------------------------- (In thousands) 1998 1997 1996 - ------------------------------------------------------------------------------- Current tax expense Federal $180,583 $146,550 $ 90,886 State, local, foreign 40,317 55,073 28,494 - ------------------------------------------------------------------------------- Total Current Expense 220,900 201,623 119,380 - ------------------------------------------------------------------------------- Deferred tax expense Federal (10,529) (24,102) 6,076 State, local, foreign 8,519 (2,457) (12,081) - ------------------------------------------------------------------------------- Total Deferred Benefit (2,010) (26,559) (6,005) - ------------------------------------------------------------------------------- Income tax expense $218,890 $175,064 $113,375 - ------------------------------------------------------------------------------- Tax expense in 1998 was reduced by $1 million ($2 million before federal tax effect) due to a reduction in the valuation allowance attributable to state net operating loss tax benefits. |
The components of the net deferred tax liabilities recognized on the respective Consolidated Balance Sheets were as follows: - ------------------------------------------------------------------------------- December 27, December 28, (In thousands) 1998 1997 - ------------------------------------------------------------------------------- Deferred Tax Assets Retirement, postemployment and deferred compensation plans $184,359 $ 174,069 Accruals for other employee benefits, compensation, insurance and other 51,499 33,244 Accounts receivable allowances 25,278 26,561 Other 43,727 38,690 - ------------------------------------------------------------------------------- Total deferred tax assets 304,863 272,564 Valuation allowance (3,749) (5,268) - ------------------------------------------------------------------------------- Net deferred tax assets 301,114 267,296 - ------------------------------------------------------------------------------- Deferred Tax Liabilities Property, plant and equipment 261,176 230,712 Intangible assets 105,204 98,076 Investments in Joint Ventures 42,644 42,057 Other 16,746 23,117 - ------------------------------------------------------------------------------- Total deferred tax liabilities 425,770 393,962 - ------------------------------------------------------------------------------- Net deferred tax liability 124,656 126,666 - ------------------------------------------------------------------------------- Amounts included in Other current assets 40,612 44,203 - ------------------------------------------------------------------------------- Deferred income tax liability $165,268 $170,869 - ------------------------------------------------------------------------------- Income tax benefits related to foreign currency translation adjustments which were included in "Accumulated other comprehensive income (loss) - foreign translation adjustments" in the Company's Consolidated Balance Sheets and Consolidated Statements of Stockholders' Equity were $1 million in both 1998 and 1997 and $.1 million in 1996. |
132, Employer's Disclosures about Pensions and Other Postretirement Benefits, the components of net periodic pension cost for all Company-sponsored pension plans were as follows: - ------------------------------------------------------------------------------ (In thousands) 1998 1997 1996 - ------------------------------------------------------------------------------ Service cost $ 22,093 $ 19,645 $ 20,984 Interest cost 51,367 48,734 45,353 Expected return on plan assets (44,521) (40,164) (37,313) Recognized actuarial loss 958 1,006 2,864 Amortization of prior service cost 433 433 433 Amortization of transition obligation 637 637 637 - ------------------------------------------------------------------------------ Net periodic pension cost $ 30,967 $ 30,291 $ 32,958 - ------------------------------------------------------------------------------ Assumptions used in the actuarial computations were as follows: - -------------------------------------------------------------------------------- 1998 1997 1996 - -------------------------------------------------------------------------------- Discount rate 6.75% 7.25% 7.75% Rate of increase in compensation levels 5.00% 5.50% 5.50% Expected long-term rate of return on assets 8.75% 8.75% 8.75% - -------------------------------------------------------------------------------- In connection with collective bargaining agreements, the Company contributes to several other pension plans, including a joint Company-union plan and a number of joint industry-union plans. |
The changes in benefit obligation and plan assets at September 30, 1998, and 1997, were as follows: - ------------------------------------------------------------------------------- (In thousands) 1998 1997 - ------------------------------------------------------------------------------- Change in benefit obligation Benefit obligation at prior measurement date $ 723,497 $ 627,874 Service cost 22,093 19,645 Interest cost 51,367 48,734 Plan participants' contribution 226 172 Actuarial loss 44,665 61,222 Special termination benefits 824 -- Benefits paid (29,448) (34,150) - ------------------------------------------------------------------------------- Benefit obligation at current measurement date 813,224 723,497 - ------------------------------------------------------------------------------- Change in plan assets Fair value of plan assets at prior measurement date 620,562 505,643 Actual return on plan assets (18,939) 142,410 Employer contribution 5,754 6,487 Plan participants' contributions 226 172 Benefits paid (29,448) (34,150) - ------------------------------------------------------------------------------- Fair value of plan assets at current measurement date 578,155 620,562 - ------------------------------------------------------------------------------- Funded status (235,069) (102,936) Unrecognized actuarial (gain) loss 50,904 (56,344) Unrecognized transition obligation 1,009 1,646 Unrecognized prior service cost 2,515 2,948 Contribution paid after measurement date 1,461 1,263 - ------------------------------------------------------------------------------- Net amount recognized $ (179,180) $ (153,423) - ------------------------------------------------------------------------------- The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for the pension plan with accumulated benefit obligations in excess of plan assets were $711 million, $577 million, and $482 million as of December 27, 1998; $120 million, $82 million, and none as of December 28, 1997. |
A one-percentage point change in assumed health care cost trend rates would have the following effects in 1998: - ---------------------------------------------------------------- One-Percentage One-Percentage (In thousands) Point Increase Point Decrease - ---------------------------------------------------------------- Effect on total service and interest cost for 1998 $ 2,296 $ (1,926) Effect on accumulated postretirement benefit obligation as of December 27, 1998 $ 20,888 $ (17,834) - ---------------------------------------------------------------- The accrued postretirement benefit liability and the change in benefit obligation at September 30 in each year were as follows: - ------------------------------------------------------------------------------ (In thousands) 1998 1997 - ------------------------------------------------------------------------------ Change in benefit obligation Benefit obligation at prior measurement date $ 127,420 $ 114,125 Service cost 4,129 3,680 Interest cost 8,822 8,580 Actuarial loss 9,195 4,789 Amendments (6,050) -- Benefits paid (3,367) (3,754) - ------------------------------------------------------------------------------ Benefit obligation at current measurement date 140,149 127,420 - ------------------------------------------------------------------------------ Change in plan assets Fair value of plan assets at prior measurement date -- -- Employer contribution 3,367 3,754 Benefits paid (3,367) (3,754) - ------------------------------------------------------------------------------ Fair value of plan assets at current measurement date -- -- - ------------------------------------------------------------------------------ Funded status (140,149) (127,420) Unrecognized actuarial gain (16,253) (26,677) Unrecognized prior service cost (14,577) (10,186) Contribution paid after measurement date 609 878 - ------------------------------------------------------------------------------ Net amount recognized $ (170,370) $ (163,405) - ------------------------------------------------------------------------------ In connection with collective bargaining agreements, the Company contributes to several welfare plans, including a joint Company-union plan and a number of joint industry-union plans. |
Shares of Class A Common Stock reserved for issuance were as follows: - ---------------------------------------------------------------- December 27, December 28, (Shares in thousands) 1998 1997 - ---------------------------------------------------------------- Stock Options Outstanding 20,317 19,585 Available 11,256 15,383 - ---------------------------------------------------------------- Employee Stock Purchase Plan Available 4,444 5,872 - ---------------------------------------------------------------- Voluntary Conversion of Class B Common Stock Available 1,129 1,129 - ---------------------------------------------------------------- Retirement Units Outstanding 157 318 Available 1,933 1,933 - ---------------------------------------------------------------- Total Outstanding 20,474 19,903 Available 18,754 24,309 - ---------------------------------------------------------------- Under the 1999 Offering of the ESPP, eligible employees may purchase Class A Common Stock through payroll deductions during the 1999 plan year at the lower of $21.70 per share (85% of the average market price on October 1, 1998) or 85% of the average market price on November 29, 1999. |
Advertising, circulation and other revenue, by major product of the Newspaper Group, were as follows: - -------------------------------------------------------------------------------- % Change ------------------ (In millions) 1998 1997 1996 98-97 97-96 - -------------------------------------------------------------------------------- The New York Times Advertising $1,059 $ 989 $ 881 7.0% 12.3% Circulation 442 428 418 3.3% 2.4% Other 141 142 113 (0.7%) 25.7% - -------------------------------------------------------------------------------- Total $1,642 $1,559 $1,412 5.3% 10.4% - -------------------------------------------------------------------------------- The Boston Globe Advertising $ 449 $ 441 $ 402 1.8% 9.7% Circulation 133 134 132 (0.7%) 1.5% Other 8 8 5 N/A N/A - -------------------------------------------------------------------------------- Total $ 590 $ 583 $ 539 1.2% 8.2% - -------------------------------------------------------------------------------- Regional Newspapers Advertising $ 342 $ 323 $ 308 5.9% 4.9% Circulation 77 78 76 (1.3%) 2.6% Other 14 14 13 N/A 7.7% - -------------------------------------------------------------------------------- Total $ 433 $ 415 $ 397 4.3% 4.5% - -------------------------------------------------------------------------------- Total Newspaper Group Advertising $1,850 $1,753 $1,591 5.5% 10.2% Circulation 652 640 626 1.9% 2.2% Other 163 164 131 (0.6%) 25.2% - -------------------------------------------------------------------------------- Total $2,665 $2,557 $2,348 4.2% 8.9% - -------------------------------------------------------------------------------- The Company's segment depreciation and amortization, capital expenditures and identifiable assets reconciled to consolidated amounts were as follows: - -------------------------------------------------------------------------------- Years Ended --------------------------------------------- December 27, December 28, December 29, (In thousands) 1998 1997 1996 - -------------------------------------------------------------------------------- DEPRECIATION AND AMORTIZATION Newspapers $ 166,485 $ 160,192 $ 138,630 Broadcast 17,662 17,919 14,161 Magazines (4,361) (7,330) (7,320) Corporate 8,099 2,764 2,054 Investment in Joint Ventures 352 352 352 - -------------------------------------------------------------------------------- Total $ 188,237 $ 173,897 $ 147,877 - -------------------------------------------------------------------------------- CAPITAL EXPENDITURES* Newspapers $ 54,178 $ 117,346 $ 179,762 Broadcast 4,331 7,225 4,438 Magazines 631 3,205 2,554 Corporate 22,438 32,392 20,080 - -------------------------------------------------------------------------------- Total $ 81,578 $ 160,168 $ 206,834 - -------------------------------------------------------------------------------- IDENTIFIABLE ASSETS Newspapers $ 2,669,290 $ 2,711,180 $ 2,733,243 Broadcast 387,764 409,742 406,053 Magazines 62,147 56,236 92,632 Corporate 223,635 312,971 170,688 Investment in Joint Ventures 122,273 133,054 137,255 - -------------------------------------------------------------------------------- Total $ 3,465,109 $ 3,623,183 $ 3,539,871 - -------------------------------------------------------------------------------- * Capital expenditures exclude additions to capitalized leases for the Edison Facility in 1998 (see Note 15 of the Notes to the Consolidated Financial Statements). |
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- (Dollars in thousands) 1996 1995 - ------------------------------------------------------------------------------- REVENUES Newspapers $ 2,326,784 $ 2,160,065 New Ventures 8,562 957 - ------------------------------------------------------------------------------- Total Revenues $ 2,335,346 $ 2,161,022 - ------------------------------------------------------------------------------- EBITDA Newspapers $ 454,944 $ 354,154 New Ventures (11,011) (8,636) - ------------------------------------------------------------------------------- Total EBITDA $ 443,933 $ 345,518 - ------------------------------------------------------------------------------- OPERATING PROFIT (LOSS) Newspapers $ 195,176 $ 221,685 New Ventures (15,565) (9,051) - ------------------------------------------------------------------------------- Total Operating Profit $ 179,611 $ 212,634 - ------------------------------------------------------------------------------- The Newspaper Group's operating profit for 1996, excluding buyouts and the SFAS 121 charge associated with the Group, rose to $337.2 million from $221.1 million in 1995, on revenues of $2.3 billion and $2.2 billion, respectively. |
Average circulation of daily newspapers on a comparable basis for the year was as follows: - ----------------------------------------------------------------------------- Weekday Sunday - ----------------------------------------------------------------------------- (Copies in thousands) 1996 % Change 1996 % Change - ----------------------------------------------------------------------------- AVERAGE CIRCULATION The New York Times 1,102.9 -1.6 1,680.5 -1.9 The Boston Globe 472.2 -5.1 762.7 -3.4 Regional Newspapers 730.1 -3.1 789.7 -1.8 - ----------------------------------------------------------------------------- Advertising volume on a comparable basis for the year was as follows: - ------------------------------------------------------------------------------- (Inches in thousands) 1996 % Change - ------------------------------------------------------------------------------- ADVERTISING VOLUME (excluding preprints) The New York Times 3,768.4 -1.1 The Boston Globe 2,951.2 +0.7 Regional Newspapers 15,560.6 +0.2 - ------------------------------------------------------------------------------- Advertising volume at The Times decreased 1.1% over 1995. |
- ---------------------------------------------------------------------------- (Dollars in thousands) 1996 1995 - ---------------------------------------------------------------------------- REVENUES Sports/Leisure Magazines $ 150,039 $ 152,819 Non-Compete 10,000 10,000 New Ventures 1,038 122 - ---------------------------------------------------------------------------- Total Revenues $ 161,077 $ 162,941 - ---------------------------------------------------------------------------- EBITDA Sports/Leisure Magazines $ 25,555 $ 22,876 New Ventures (7,026) (1,135) - ---------------------------------------------------------------------------- Total EBITDA $ 18,529 $ 21,741 - ---------------------------------------------------------------------------- OPERATING PROFIT (LOSS) Sports/Leisure Magazines $ 22,537 $ 19,971 Non-Compete 10,000 10,000 New Ventures (7,759) (1,230) - ---------------------------------------------------------------------------- Total Operating Profit $ 24,778 $ 28,741 - ---------------------------------------------------------------------------- The Magazine Group's operating profit for 1996, excluding the SFAS 121 charge associated with the Group, was $25.8 million in 1996 compared with $28.7 million in 1995, on revenues of $161.1 million and $162.9 million, respectively. |
The following discussion provides additional information with respect to the Company's traditional operations and new ventures: NEWSPAPER GROUP: - ------------------------------------------------------------------------------- (Dollars in thousands) 1995 1994 - ------------------------------------------------------------------------------- REVENUES Newspapers $ 2,160,065 $ 2,005,047 New Ventures 957 - - ------------------------------------------------------------------------------- Total Revenues $ 2,161,022 $ 2,005,047 - ------------------------------------------------------------------------------- EBITDA Newspapers $ 354,154 $ 342,177 New Ventures (8,636) - - ------------------------------------------------------------------------------- Total EBITDA $ 345,518 $ 342,177 - ------------------------------------------------------------------------------- OPERATING PROFIT (LOSS) Newspapers $ 221,685 $ 206,790 New Ventures (9,051) - - ------------------------------------------------------------------------------- Total Operating Profit $ 212,634 $ 206,790 - ------------------------------------------------------------------------------- Excluding buyouts associated with the Group, operating profit in 1995 was $221.1 million compared with $206.8 million in 1994. |
MAGAZINE GROUP: - ------------------------------------------------------------------------- (Dollars in thousands) 1995 1994 - ------------------------------------------------------------------------- REVENUES Sports/Leisure Magazines $ 152,819 $ 144,777 New Ventures 122 - Non-Compete 10,000 4,167 1994 Divested Magazines - 131,473 - ------------------------------------------------------------------------- Total Revenues $ 162,941 $ 280,417 - ------------------------------------------------------------------------- EBITDA Sports/Leisure Magazines $ 22,876 $ 21,967 New Ventures (1,135) - 1994 Divested Magazines - 1,019 - ------------------------------------------------------------------------- Total EBITDA $ 21,741 $ 22,986 - ------------------------------------------------------------------------- OPERATING PROFIT (LOSS) Sports/Leisure Magazines $ 19,971 $ 19,439 New Ventures (1,230) - Non-Compete 10,000 4,167 1994 Divested Magazines - (4,046) - ------------------------------------------------------------------------- Total Operating Profit $ 28,741 $ 19,560 - ------------------------------------------------------------------------- The revenues for the Group include a $40.0 million non-compete agreement, associated with the divestiture of the Women's Magazine Division, which is being recognized straight-line over four years beginning August 1994. |
The components of income tax expense as shown in the Consolidated Statements of Income is presented on the adjacent table: - ----------------------------------------------------------------------- Dollars in thousands 1996 1995 1994 - ----------------------------------------------------------------------- Current tax expense Federal $ 90,886 $ 105,999 $ 159,779 State, local, foreign 28,494 1,970 49,651 - ----------------------------------------------------------------------- 119,380 107,969 209,430 - ----------------------------------------------------------------------- Deferred tax expense Federal 6,076 (22,483) (20,955) State, local, foreign (12,081) 12,493 (13,088) - ----------------------------------------------------------------------- (6,005) (9,990) (34,043) - ----------------------------------------------------------------------- Income tax expense $ 113,375 $ 97,979 $ 175,387 - ----------------------------------------------------------------------- Tax expense in 1996 was reduced by $5,571,000 ($8,517,000 before federal tax effect) due to a reduction in the valuation allowance attributable to state net operating loss tax benefits. |
The components of the net deferred tax liabilities recognized on the respective Consolidated Balance Sheets are as follows: - ----------------------------------------------------------------------------- Dollars in thousands December 29, December 31, 1996 1995 - ----------------------------------------------------------------------------- Deferred Tax Liabilities Property, plant and equipment $130,954 $ 94,714 Tax certificate 93,495 113,238 Nontaxable acquisition 115,514 123,880 Safe harbor tax lease 17,843 18,975 Investments in Joint Ventures 44,094 51,608 Other 17,298 10,335 - ----------------------------------------------------------------------------- Total deferred tax liabilities 419,198 412,750 - ----------------------------------------------------------------------------- Net deferred tax assets (265,972) (253,519) - ----------------------------------------------------------------------------- Net deferred tax liability 153,226 159,231 - ----------------------------------------------------------------------------- Less amounts included in: Other current assets (36,164) (23,533) Accrued expenses 830 780 - ----------------------------------------------------------------------------- Deferred income taxes $188,560 $181,984 - ----------------------------------------------------------------------------- Federal income tax returns for all years through 1989 have been examined by the Internal Revenue Service and the respective tax years have been closed by statute. |
The funded status of the Company's plans which were valued at September 30, 1996 and 1995 is as follows: - ---------------------------------------------------------------------------- Dollars in thousands Plans Whose Plans Whose Assets Exceed Accumulated Accumulated Benefits Benefits Exceed Assets - ---------------------------------------------------------------------------- December 29, 1996 - ---------------------------------------------------------------------------- Actuarial present value of benefit obligation: Vested benefit obligation $367,438 $ 64,312 - ---------------------------------------------------------------------------- Accumulated benefit obligation 375,492 67,789 - ---------------------------------------------------------------------------- Projected benefit obligation 454,995 71,167 Plan assets at fair value 439,184 66,459 - ---------------------------------------------------------------------------- Projected benefit obligation in excess of plan assets 15,811 4,708 Unrecognized net gains 27,493 8,962 Unrecognized prior service cost 2,529 - Unrecognized transition asset 419 - Fourth-quarter contribution, net - (431) - ---------------------------------------------------------------------------- Recorded pension liability $ 46,252 $ 13,239 - ---------------------------------------------------------------------------- December 31, 1995 - ---------------------------------------------------------------------------- Actuarial present value of benefit obligation: Vested benefit obligation $234,139 $198,233 - ---------------------------------------------------------------------------- Accumulated benefit obligation 239,507 205,260 - ---------------------------------------------------------------------------- Projected benefit obligation 297,317 237,302 Plan assets at fair value 269,633 178,539 - ---------------------------------------------------------------------------- Projected benefit obligation in excess of plan assets 27,684 58,763 Unrecognized net (losses) (28,150) (2,725) Unrecognized prior service cost 6,131 (3,445) Unrecognized transition (obligation) asset (1,645) 2,063 Fourth-quarter contribution, net (1,365) (8,297) - ---------------------------------------------------------------------------- Recorded pension liability $ 2,655 $ 46,359 - ---------------------------------------------------------------------------- The Company's liability for its unfunded non-qualified plans ("the Plans") was $71,204,000 and $64,549,000 as of December 29, 1996 and December 31, 1995, respectively. |
The following table sets forth the amounts included in Accrued Expenses and Other Liabilities in the Consolidated Balance Sheets at December 29, 1996 and December 31, 1995, based on valuation dates of September 30 in each year: - ------------------------------------------------------------------------- Dollars in thousands December 29, December 31, 1996 1995 - ------------------------------------------------------------------------- Accumulated postretirement benefit obligation Retirees $ 51,164 $ 55,954 Fully eligible active plan participants 19,510 19,870 Other active plan participants 43,451 44,965 - ------------------------------------------------------------------------- Total 114,125 120,789 Unrecognized net gains 32,212 16,536 Unrecognized prior service cost 11,929 13,597 Fourth-quarter benefit payments (822) (544) - ------------------------------------------------------------------------- Total accrued postretirement benefit liability 157,444 150,378 Current portion included in accrued expenses 4,400 4,400 - ------------------------------------------------------------------------- Long-term accrued postretirement benefit liability $153,044 $145,978 - ------------------------------------------------------------------------- Increasing the assumed health care cost trend rates by one percentage point in each year and holding all other assumptions constant would increase the accumulated postretirement benefit obligation as of December 29, 1996 by $16,465,000, and increase the net periodic postretirement benefit cost for 1996 by $2,090,000. |
SIGNATURE TITLE DATE --------- ----- ---- ARTHUR OCHS SULZBERGER Chairman (Chief March 11, 1996 Executive Officer), Director JOHN F. AKERS Director March 11, 1996 DIANE P. BAKER Senior Vice President and March 11, 1996 Chief Financial Officer (Principal Financial Officer) RICHARD L. GELB Director March 11, 1996 LOUIS V. GERSTNER, JR. Director March 11, 1996 MARIAN S. HEISKELL Director March 11, 1996 A. LEON HIGGINBOTHAM, JR. Director March 11, 1996 RUTH S. HOLMBERG Director March 11, 1996 ROBERT A. LAWRENCE Director March 11, 1996 GEORGE B. MUNROE Director March 11, 1996 CHARLES H. PRICE II Director March 11, 1996 LANCE R. PRIMIS President (Chief Operating March 11, 1996 Officer) GEORGE L. SHINN Director March 11, 1996 DONALD M. STEWART Director March 11, 1996 STUART STOLLER Vice President, March 11, 1996 Corporate Controller (Principal Accounting Officer) JUDITH P. SULZBERGER Director March 11, 1996 WILLIAM O. TAYLOR Director March 11, 1996 CYRUS R. VANCE Director March 11, 1996 Appendix 1995 Financial Report THE NEW YORK TIMES COMPANY 1995 Consolidated Financial Statements - ------------------------------------------------------------------------------- Contents Page - ------------------------------------------------------------------------------- Financial Highlights Segment Information Management's Discussion and Analysis Consolidated Statements of Income Consolidated Balance Sheets Consolidated Statements of Cash Flows Consolidated Statements of Stockholders' Equity Notes to Consolidated Financial Statements Independent Auditors' Report Management's Responsibilities Report Market Information Quarterly Information Ten-Year Supplemental Financial Data FINANCIAL HIGHLIGHTS In 1995, the Company sold small regional newspapers (see Note 2). |
SEGMENT INFORMATION - ------------------------------------------------------------------------------- Dollars in thousands Year Ended December 31 1995 1994 1993 - ------------------------------------------------------------------------------- DEPRECIATION AND AMORTIZATION Newspapers $ 133,264 $ 135,767 $ 98,963 Magazines (7,000) 3,426 18,616 Broadcasting 11,519 10,113 10,725 Corporate 1,151 784 528 - ------------------------------------------------------------------------------- Total $ 138,934 $ 150,090 $ 128,832 - ------------------------------------------------------------------------------- CAPITAL EXPENDITURES Newspapers $ 196,096 $ 188,222 $ 71,780 Magazines 736 906 3,059 Broadcasting 4,093 3,013 3,289 Corporate 11,130 794 1,491 - ------------------------------------------------------------------------------- Total $ 212,055 $ 192,935 $ 79,619 - ------------------------------------------------------------------------------- IDENTIFIABLE ASSETS AT DECEMBER 31 Newspapers $ 2,832,297 $ 2,732,953 $ 2,685,611 Magazines 99,525 91,797 247,723 Broadcasting 174,363 100,874 104,843 Corporate 168,576 126,574 101,007 Investment in forest products group 101,969 85,433 76,020 - ------------------------------------------------------------------------------- Total $ 3,376,730 $ 3,137,631 $ 3,215,204 - ------------------------------------------------------------------------------- See notes to consolidated financial statements. |
(Dollars in thousands) 1995 1994 - ------------------------------------------------------------------ REVENUES Newspapers $2,160,399 $2,006,184 New Ventures 957 - - ------------------------------------------------------------------ Total Revenues $2,161,356 $2,006,184 - ------------------------------------------------------------------ EBITDA Newspapers $ 354,415 $ 343,256 New Ventures (12,686) - - ------------------------------------------------------------------ Total EBITDA $ 341,729 $ 343,256 - ------------------------------------------------------------------ OPERATING PROFIT (LOSS) Newspapers $ 221,566 $ 207,489 New Ventures (13,101) - - ------------------------------------------------------------------ Total Operating Profit $ 208,465 $ 207,489 - ------------------------------------------------------------------ MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) - -------------------------------------------------------------------------------- Excluding buyouts associated with the Group, operating profit in 1995 was $217.0 million compared with $207.5 million in 1994. |
- ------------------------------------------------------------------ (Dollars in thousands) 1995 1994 - ------------------------------------------------------------------ REVENUES Sports/Leisure Magazines $152,819 $144,777 New Ventures 122 - Non-Compete 10,000 4,167 1994 Divested Magazines - 131,117 - ------------------------------------------------------------------ Total Revenues $162,941 $280,061 - ------------------------------------------------------------------ EBITDA Sports/Leisure Magazines $ 22,876 $ 21,611 New Ventures (1,135) - 1994 Divested Magazines - 1,019 - ------------------------------------------------------------------ Total EBITDA $ 21,741 $ 22,630 - ------------------------------------------------------------------ OPERATING PROFIT (LOSS) Sports/Leisure Magazines $ 19,971 $ 19,439 New Ventures (1,230) - Non-Compete 10,000 4,167 1994 Divested Magazines - (4,402) - ------------------------------------------------------------------ Total Operating Profit $ 28,741 $ 19,204 - ------------------------------------------------------------------ Operating profit for the Group was $28.7 million in 1995, compared with $19.2 million in 1994, on revenues of $162.9 million and $280.1 million, respectively. |
MAGAZINE GROUP: (Dollars in thousands) 1994 1993 - ------------------------------------------------------------------ REVENUES Sports/Leisure Magazines $144,777 $146,306 Non-Compete 4,167 - 1994 Divested Magazines 131,117 $248,157 - ------------------------------------------------------------------ Total Revenues $280,061 $394,463 - ------------------------------------------------------------------ EBITDA Sports/Leisure Magazines $ 21,611 $ 26,364 1994 Divested Magazines 1,019 4,582 - ------------------------------------------------------------------ Total EBITDA $ 22,630 $ 30,946 - ------------------------------------------------------------------ OPERATING PROFIT (LOSS) Sports/Leisure Magazines $ 19,439 $ 22,780 Non-Compete 4,167 - 1994 Divested Magazines (4,402) (10,450) - ------------------------------------------------------------------ Total Operating Profit $ 19,204 $ 12,330 - ------------------------------------------------------------------ Operating profit for the Magazine Group was $19.2 million in 1994, compared with $12.3 million in 1993, on revenues of $280.1 million and $394.5 million, respectively. |
CONSOLIDATED BALANCE SHEETS - -------------------------------------------------------------------------------- December 31 1995 1994 - -------------------------------------------------------------------------------- ASSETS Dollars in thousands - -------------------------------------------------------------------------------- CURRENT ASSETS Cash and short-term investments (at cost which approximates market: 1995, $56,891,000; 1994, $14,255,000) $ 91,442 $ 41,419 Accounts receivable (net of allowances: 1995, $25,865,000; 1994, $28,157,000) 277,974 247,750 Inventories 42,844 30,545 Deferred subscription costs 10,333 10,659 Other current assets 40,042 81,401 - -------------------------------------------------------------------------------- Total current assets 462,635 411,774 - -------------------------------------------------------------------------------- INVESTMENT IN FOREST PRODUCTS GROUP 101,969 85,433 - -------------------------------------------------------------------------------- PROPERTY, PLANT AND EQUIPMENT (at cost) Land 65,188 62,945 Buildings, building equipment and improvements 649,131 629,152 Equipment 956,890 908,630 Construction and equipment installations in progress 345,721 218,041 - -------------------------------------------------------------------------------- Total 2,016,930 1,818,768 Less accumulated depreciation 740,864 660,017 - -------------------------------------------------------------------------------- Total property, plant and equipment - net 1,276,066 1,158,751 - -------------------------------------------------------------------------------- INTANGIBLE ASSETS ACQUIRED Costs in excess of net assets acquired 1,383,687 1,391,250 Other intangible assets acquired 218,646 160,747 - -------------------------------------------------------------------------------- Total 1,602,333 1,551,997 Less accumulated amortization 207,489 172,531 - -------------------------------------------------------------------------------- Total intangible assets acquired - net 1,394,844 1,379,466 - -------------------------------------------------------------------------------- MISCELLANEOUS ASSETS 141,216 102,207 - -------------------------------------------------------------------------------- Total $3,376,730 $3,137,631 - -------------------------------------------------------------------------------- See notes to consolidated financial statements. |
Condensed combined statements of operations of the Forest Products Group, which exclude the operations of Gaspesia subsequent to the write-down at December 31, 1993, are as follows: - ------------------------------------------------------------------- Condensed Combined Statements of Operations of Forest Products Group Dollars in thousands - ------------------------------------------------------------------- Year Ended December 31 1995 1994 1993 - ------------------------------------------------------------------- Net sales and other income $ 268,377 $ 189,805 $ 254,324 Costs and expenses 216,342 180,860 269,845 - ------------------------------------------------------------------- Income (Loss) before taxes 52,035 8,945 (15,521) Income tax expense (benefit) 7,969 1,136 (2,700) - ------------------------------------------------------------------- Net income (loss) $ 44,066 $ 7,809 $ (12,821) - ------------------------------------------------------------------- The condensed combined financial information of the Forest Products Group excludes the income tax effects attributable to Madison. |
Income tax expense as shown in the Consolidated Statements of Operations is composed of the following: - ------------------------------------------------------------------- Dollars in thousands 1995 1994 1993 - ------------------------------------------------------------------- Current tax expense Federal $105,999 $159,779 $60,178 State, local, foreign 1,970 49,651 17,612 - ------------------------------------------------------------------- 107,969 209,430 77,790 - ------------------------------------------------------------------- Deferred tax expense Federal (22,483) (20,955) (26,982) State, local, foreign 12,493 (13,088) (8,919) - ------------------------------------------------------------------- (9,990) (34,043) (35,901) - ------------------------------------------------------------------- Income tax expense from continuing operations 97,979 175,387 41,889 Less income tax expense (benefit) related to equity in operations 5,147 1,519 (1,342) - ------------------------------------------------------------------- Income tax expense $ 92,832 $173,868 $43,231 - ------------------------------------------------------------------- Tax expense in 1995 was reduced by $10,986,000 as a result of a favorable state tax ruling and federal, state and local tax refunds. |
The components of the net deferred tax liabilities recognized on the respective Consolidated Balance Sheets are as follows: - ----------------------------------------------------------------- Dollars in thousands December 31 1995 1994 - ----------------------------------------------------------------- Deferred Tax Assets Intangible assets acquired $ 5,941 $ 10,425 Accrued state and local taxes 17,033 14,996 Postretirement and postemployment benefits 86,822 81,707 Other accrued employee benefits and compensation 93,777 89,569 Allowance for doubtful accounts 13,411 13,113 Tax loss carryforwards 8,571 20,260 Deferred Income 29,811 35,040 Other 10,550 4,578 - ----------------------------------------------------------------- Total deferred tax assets 265,916 269,688 Valuation allowance (10,724) (19,774) - ----------------------------------------------------------------- Net deferred tax assets $255,192 $249,914 - ----------------------------------------------------------------- - ----------------------------------------------------------------- Dollars in thousands December 31 1995 1994 - ----------------------------------------------------------------- Deferred Tax Liabilities Property, plant and equipment $134,613 $121,617 Tax certificate 113,238 125,664 Nontaxable acquisition 123,880 125,782 Deferred subscription expenses 8,013 8,627 Safe harbor tax lease 18,975 19,717 Unremitted earnings 1,238 833 Investment in Forest Products Group 13,382 13,324 Other 1,084 2,641 - ----------------------------------------------------------------- Total deferred tax liabilities 414,423 418,205 - ----------------------------------------------------------------- Net deferred tax assets (255,192) (249,914) - ----------------------------------------------------------------- Net deferred tax liability 159,231 168,291 - ----------------------------------------------------------------- Less amounts included in: Other current assets (10,559) (9,296) Accrued expenses 1,075 999 - ----------------------------------------------------------------- Deferred income taxes $168,715 $176,588 - ----------------------------------------------------------------- At December 31, 1995, tax loss carryforwards include only state and local tax loss benefits. |
DEBT Long-Term Debt consists of the following: - ------------------------------------------------------------------ Dollars in thousands - ------------------------------------------------------------------ December 31 1995 1994 - ------------------------------------------------------------------ 5.50% to 5.77% Senior Notes due $200,000 $200,000 1998-2000 (a) 7.625% Notes due 2005, net of unamortized 244,041 - debt issuance costs of $5,959 in 1995; effective interest rate 7.996% (b) 8.25% Debentures due 2025 (due 2005 at 145,152 - option of Company), net of unamortized debt issuance costs of $4,848 in 1995; effective interest rate 8.553% (b) 11.85% Notes, discounted, due 1995 net of - 161,789 unamortized discount of $511 in 1994 (c) 9.34% Notes due 1995, including - 51,336 unamortized premium of $1,336 in 1994; effective interest rate 4.25% (c) Commercial Paper (d) - 60,405 - ------------------------------------------------------------------ Total Notes, Debentures and Other 589,193 473,530 - ------------------------------------------------------------------ Less: Current Portion - - - ------------------------------------------------------------------ Total Long-Term Debt $589,193 $473,530 - ------------------------------------------------------------------ (a) In October 1993, the Company issued senior notes totaling $200,000,000 to an insurance company with interest payable semi-annually. |
The funded status of the Company's plans which were valued at September 30, 1995 and 1994 is as follows: - ------------------------------------------------------------------- Plans Whose Plans Whose Assets Exceed Accumulated December 31, 1995 Accumulated Benefits Dollars in thousands Benefits Exceed Assets - ------------------------------------------------------------------- Actuarial present value of benefit obligation: Vested benefit obligation $234,139 $256,239 - ------------------------------------------------------------------- Accumulated benefit obligation $239,507 $264,219 - ------------------------------------------------------------------- Projected benefit obligation $297,317 $331,039 Plan assets at fair value 269,633 178,539 - ------------------------------------------------------------------- Projected benefit obligation in excess of plan assets 27,684 152,500 Unrecognized net (losses) gains (28,150) (23,770) Unrecognized prior service cost 6,131 (9,945) Unrecognized transition obligation (1,645) (1,274) Fourth-quarter contribution, net (1,365) (8,986) Adjustment required to recognize additional minimum liability - 2,384 - ------------------------------------------------------------------- Recorded pension liability $ 2,655 $110,909 - ------------------------------------------------------------------- - ------------------------------------------------------------------- Plans Whose Plans Whose Assets Exceed Accumulated December 31, 1994 Accumulated Benefits Dollars in thousands Benefits Exceed Assets - ------------------------------------------------------------------- Actuarial present value of benefit obligation: Vested benefit obligation $187,656 $207,104 - ------------------------------------------------------------------- Accumulated benefit obligation $193,129 $212,519 - ------------------------------------------------------------------- Projected benefit obligation $238,574 $263,044 Plan assets at fair value 231,236 144,200 - ------------------------------------------------------------------- Projected benefit obligation in excess of plan assets 7,338 118,844 Unrecognized net (losses) gains (12,337) 11,269 Unrecognized prior service cost 6,567 (10,814) Unrecognized transition obligation (2,038) (1,517) Fourth-quarter contribution, net (2,483) (7,891) - ------------------------------------------------------------------- Recorded pension (asset) liability $ (2,953) $109,891 - ------------------------------------------------------------------- Plan assets, which were valued as of September 30, 1995 and 1994, consist of money market investments, investments in marketable fixed income and equity securities, an investment in a diversified real estate equity fund and investments in group annuity insurance contracts. |
- ---------------------------------------------------------------- Dollars in thousands - ---------------------------------------------------------------- December 31 1995 1994 - ---------------------------------------------------------------- Accumulated postretirement benefit obligation Retirees $ 55,954 $ 49,595 Fully eligible active plan 19,870 26,894 participants Other active plan participants 44,965 45,017 - ---------------------------------------------------------------- Total 120,789 121,506 Unrecognized net gains 16,536 26,287 Unrecognized prior service cost 13,597 - Fourth-quarter benefit payments (544) (1,035) - ---------------------------------------------------------------- Total accrued postretirement benefit liability 150,378 146,758 Current portion included in accrued expenses 4,400 4,400 - ---------------------------------------------------------------- Long-term accrued postretirement benefit liability $145,978 $142,358 - ---------------------------------------------------------------- Increasing the assumed health care cost trend rates by one percentage point in each year and holding all other assumptions constant would increase the accumulated postretirement benefit obligation as of December 31, 1995 by $16,706,000 and increase the net periodic postretirement benefit cost for 1995 by $1,785,000. |
Changes in stock options for each of the three years in the period ended December 31, 1995 were as follows: ---------------------------------------------------------------- Dollars in thousands Option Price except per share data Shares Per Share ($) Total ---------------------------------------------------------------- Options outstanding January 1, 1993 4,880,616 13.96 to 38.87 $115,935 Granted 1,909,080 26.50 to 30.68 50,641 Globe stock option conversion 958,654 6.89 to 22.50 14,381 Exercised (346,334) 6.89 to 26.75 (6,333) Terminations (41,175) 20.00 to 36.43 (1,116) ---------------------------------------------------------------- Options outstanding December 31, 1993 7,360,841 6.89 to 38.87 173,508 Granted 2,426,376 22.56 to 26.18 54,807 Exercised (378,392) 6.89 to 26.75 (6,634) Terminations (127,037) 11.45 to 36.43 (3,174) ---------------------------------------------------------------- Options outstanding December 31, 1994 9,281,788 6.89 to 38.87 218,507 Granted 2,047,438 23.18 to 29.75 60,826 Exercised (909,622) 6.89 to 26.75 (18,741) Terminations (412,379) 11.45 to 36.43 (11,009) ---------------------------------------------------------------- Options outstanding December 31, 1995 10,007,225 10.31 to 38.87 $249,583 ---------------------------------------------------------------- Options which became exercisable during 1993 1,803,174 6.89 to 28.88 $35,098 1994 761,221 20.00 to 30.68 19,021 1995 1,285,288 20.00 to 26.50 30,667 ---------------------------------------------------------------- Options exercisable at December 31, 1993 4,673,663 6.89 to 38.87 $104,789 1994 4,953,313 6.89 to 38.87 114,260 1995 5,272,657 10.31 to 38.87 124,603 ---------------------------------------------------------------- - -------------------------------------------------------------------------------- 12. |
EXECUTIVE OFFICERS OF THE REGISTRANT Employed By Registrant Position(s) As Of Name Age Since March 9, 1995(1) - --------------------- --- ---------- -------------------------------------- CORPORATE OFFICERS Arthur Ochs Sulzberger.. 69 1951 Chairman (since 1973); Chief Executive Officer; Director; Publisher of The New York Times ("The Times") (1963 to 1992) Lance R. Primis......... 48 1969 President and Chief Operating Officer (since 1992); President and General Manager of The Times (1988 to 1992) Employed By Registrant Position(s) As Of Name Age Since March 9, 1995(1) - ------------------------ --- ---------- ------------------------------------- Katharine P. Darrow..... 51 1970 Senior Vice President (since 1993), Broadcasting, Corporate Development and Human Resources; Vice President (1988-1993), Broadcasting/Informa- tion Services and Corporate Development David L. Gorham......... 62 1974 Senior Vice President and Chief Financial Officer (since 1980); Treasurer (1988 to 1992) Frank R. Gatti.......... 48 1974 Vice President (since 1988); Corporate Controller Leslie A. Mardenborough. |
46 1981 Vice President, Human Resources (since 1990); Director, Corporate Personnel (1987 to 1990) Gordon Medenica......... 43 1982 Vice President, Operations and Planning (since 1993); Vice President, Corporate Planning (1990 to 1993); Director, Planning (1986 to 1990) Thomas H. Nied.......... 52 1977 Vice President, Taxation (since 1990); Tax Director (1977 to 1990) Solomon B. Watson IV.... 50 1974 Vice President (since 1990); General Counsel (since 1989) Laura J. Corwin......... 49 1980 Secretary (since 1989) and Corporate Counsel (since January 1993) Richard G. Thomas....... 46 1977 Treasurer (since 1992); Assistant Treasurer (1983 to 1992) OPERATING UNIT EXECUTIVES James W. FitzGerald..... 56 1968 President, Sports/Leisure Division of the Company's Magazine Group (since 1985) Stephen Golden.......... 47 1974 Vice President, Forest Products, Health, Safety and Environmental Affairs (since 1992); President and General Manager of the Company's Forest Products Group (since January 1994); Vice President, Forest Products (1990 to 1992); Director, Forest Products Group (1987 to 1990) C. Frank Roberts........ 51 1970 Vice President, Broadcasting (since 1986) Arthur O. Sulzberger, Jr 43 1978 Publisher of The Times (since 1992); Deputy Publisher of The Times (1988 to 1992) William O. Taylor....... 62 1993 Publisher of The Boston Globe (since 1978) and Chairman and Chief Executive Officer of Globe Newspaper Company (since 1982) James C. Weeks.......... 52 1971 President, Regional Newspaper Group of the Company (since 1993); Senior Vice President, Operations, Regional Newspaper Group (1988 to 1993) - ------------ (1) During the past five years, all of the executive officers listed above have held positions which were the same or substantially similar to those they currently hold except as indicated above. |
SIGNATURE TITLE DATE - -------------------------- -------------------------------- -------------- ARTHUR OCHS SULZBERGER Chairman (Chief March 9, 1995 Executive Officer), Director JOHN F. AKERS Director March 9, 1995 FRANK R. GATTI Vice President, March 9, 1995 Corporate Controller (Principal Accounting Officer) RICHARD L. GELB Director March 9, 1995 LOUIS V. GERSTNER, JR. Director March 9, 1995 DAVID L. GORHAM Senior Vice President and Chief March 9, 1995 Financial Officer (Principal Financial Officer) MARIAN S. HEISKELL Director March 9, 1995 A. LEON HIGGINBOTHAM, JR. Director March 9, 1995 RUTH S. HOLMBERG Director March 9, 1995 ROBERT A. LAWRENCE Director March 9, 1995 GEORGE B. MUNROE Director March 9, 1995 CHARLES H. PRICE II Director March 9, 1995 LANCE R. PRIMIS President (Chief Operating March 9, 1995 Officer) GEORGE L. SHINN Director March 9, 1995 DONALD M. STEWART Director March 9, 1995 JUDITH P. SULZBERGER Director March 9, 1995 WILLIAM O. TAYLOR Director March 9, 1995 CYRUS R. VANCE Director March 9, 1995 THE NEW YORK TIMES COMPANY 1994 Consolidated Financial Statements - -------------------------------------------------------------------------------- Contents Page - -------------------------------------------------------------------------------- Financial Highlights .............................................. |
Independent Auditors' Report ...................................... Management's Responsibilities Report .............................. Market Information ................................................ Quarterly Information ............................................. Ten-Year Supplemental Financial Data .............................. FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- Dollars in thousands except per Year Ended December 31 share data 1994 1993 1992 - -------------------------------------------------------------------------------- REVENUES AND INCOME Revenues $ 2,357,563 $ 2,019,654 $ 1,773,535 Operating profit 211,242 126,581 88,408 Income before income taxes and equity in operations of forest products group 383,953 101,206 8,525 Income (Loss) before equity in operations of forest products group 210,085 57,975 (2,554) Equity in operations of forest products group 3,264 (51,852) (8,718) Income (Loss) before net cumulative effect of accounting changes 213,349 6,123 (11,272) Net cumulative effect of accounting changes -- -- (33,437) Net income (loss) 213,349 6,123 (44,709) - -------------------------------------------------------------------------------- FINANCIAL POSITION Property, plant and equipment - net 1,158,751 1,112,024 902,755 Total assets 3,137,631 3,215,204 1,994,974 Long-term debt and capital lease obligations 523,196 460,063 206,911 Common stockholders' equity 1,543,539 1,598,883 999,630 - -------------------------------------------------------------------------------- PER SHARE OF COMMON STOCK Income (Loss) before net cumulative effect of accounting changes 2.05 .07 (.14) Net cumulative effect of accounting changes -- -- (.43) Net income (loss) 2.05 .07 (.57) Dividends .56 .56 .56 Common stockholders' equity (end of year) 15.71 14.96 12.54 - -------------------------------------------------------------------------------- KEY RATIOS (See notes below) Operating profit to revenues 9% 6% 5% Income before equity in operations of forest products group to revenues 5% 3% 2% Return on average stockholders' equity 7% -- 2% Return on average total assets 3% -- 1% Long-term debt and capital lease obligations to total capitalization 25% 22% 17% Current assets to current liabilities .91 .89 1.08 - -------------------------------------------------------------------------------- EMPLOYEES 12,800 13,000 10,100 - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- Dollars in thousands except per share data Year Ended December 31 1991 1990 - -------------------------------------------------------------------------------- REVENUES AND INCOME Revenues $ 1,703,101 $ 1,776,761 Operating profit 93,639 129,779 Income before income taxes and equity in operations of forest products group 63,053 110,190 Income (Loss) before equity in operations of forest products group 41,293 60,871 Equity in operations of forest products group 5,700 3,965 Income (Loss) before net cumulative effect of accounting changes 46,993 64,836 Net cumulative effect of accounting changes -- -- Net income (loss) 46,993 64,836 - -------------------------------------------------------------------------------- FINANCIAL POSITION Property, plant and equipment - net 966,593 1,013,430 Total assets 2,127,981 2,149,623 Long-term debt and capital lease obligations 213,487 319,449 Common stockholders' equity 1,073,442 1,055,785 - -------------------------------------------------------------------------------- PER SHARE OF COMMON STOCK Income (Loss) before net cumulative effect of accounting changes .61 .85 Net cumulative effect of accounting changes -- -- Net income (loss) .61 .85 Dividends .56 .54 Common stockholders' equity (end of year) 13.70 13.68 - -------------------------------------------------------------------------------- KEY RATIOS (See notes below) Operating profit to revenues 5% 7% Income before equity in operations of forest products group to revenues 2% 3% Return on average stockholders' equity 4% 6% Return on average total assets 2% 3% Long-term debt and capital lease obligations to total capitalization 17% 23% Current assets to current liabilities .89 .81 - -------------------------------------------------------------------------------- EMPLOYEES 10,100 10,400 - -------------------------------------------------------------------------------- In 1994, the Company sold its Women's Magazines Division and U.K. golf publications, and divested a minority interest in a Canadian paper mill ("Gaspesia") (see Note 2). |
- ------------------------------------------------------------------------------ Dollars in thousands Year Ended December 31 1994 1993 1992 - ------------------------------------------------------------------------------ REVENUES Newspapers $1,968,252 $1,537,934 $1,306,952 Magazines 280,061 394,463 386,120 Broadcasting/Information services 109,250 87,257 80,463 - ------------------------------------------------------------------------------- Total $2,357,563 $2,019,654 $1,773,535 - ------------------------------------------------------------------------------- OPERATING PROFIT (LOSS) Newspapers $ 196,067 $ 114,332 $ 81,173 Magazines 19,204 12,330 9,929 Broadcasting/Information services 25,048 19,403 14,766 Unallocated corporate expenses (29,077) (19,484) (17,460) - ------------------------------------------------------------------------------- Total 211,242 126,581 88,408 Interest expense, net of interest income 28,162 25,375 26,115 Net gain (loss) on dispositions 200,873 -- (53,768) - ------------------------------------------------------------------------------- Income before income taxes and equity in operations of forest products group 383,953 101,206 8,525 Income taxes 173,868 43,231 11,079 - ------------------------------------------------------------------------------- Income (Loss) before equity in operations of forest products group 210,085 57,975 (2,554) Equity in operations of forest products group 3,264 (51,852) (8,718) - ------------------------------------------------------------------------------- INCOME (LOSS) BEFORE NET CUMULATIVE EFFECT OF ACCOUNTING CHANGES $ 213,349 $ 6,123 $ (11,272) - ------------------------------------------------------------------------------- See notes to consolidated financial statements. |
SEGMENT INFORMATION - ------------------------------------------------------------------------------ Dollars in thousands Year Ended December 31 1994 1993 1992 - ------------------------------------------------------------------------------ DEPRECIATION AND AMORTIZATION Newspapers $ 135,507 $ 98,957 $ 74,495 Magazines 7,593 18,616 20,628 Broadcasting/Information services 10,373 10,731 12,424 Corporate 784 528 385 - ------------------------------------------------------------------------------ Total $ 154,257 $ 128,832 $ 107,932 - ------------------------------------------------------------------------------ CAPITAL EXPENDITURES Newspapers $ 185,616 $ 71,746 $ 42,675 Magazines 906 3,059 1,888 Broadcasting/Information services 5,619 3,323 1,863 Corporate 794 1,491 903 - ------------------------------------------------------------------------------ Total $ 192,935 $ 79,619 $ 47,329 - ------------------------------------------------------------------------------ IDENTIFIABLE ASSETS AT DECEMBER 31 Newspapers $2,717,945 $2,676,779 $1,321,667 Magazines 91,797 247,723 255,777 Broadcasting/Information services 115,882 113,675 117,679 Corporate 126,574 101,007 160,459 Investment in forest products group 85,433 76,020 139,392 - ------------------------------------------------------------------------------ Total $3,137,631 $3,215,204 $1,994,974 - ------------------------------------------------------------------------------ See notes to consolidated financial statements. |
CONSOLIDATED STATEMENTS OF OPERATIONS - -------------------------------------------------------------------------------- Dollars and shares in thousands except per share data Year Ended December 31 1994 1993 1992 - -------------------------------------------------------------------------------- REVENUES Advertising $1,656,999 $1,399,042 $1,254,764 Circulation 545,854 473,971 419,454 Other 154,710 146,641 99,317 - -------------------------------------------------------------------------------- Total 2,357,563 2,019,654 1,773,535 - -------------------------------------------------------------------------------- COSTS AND EXPENSES Production costs Raw materials 304,360 280,531 250,575 Wages and benefits 529,701 437,528 388,403 Other 428,663 418,554 365,651 - -------------------------------------------------------------------------------- Total 1,262,724 1,136,613 1,004,629 Selling, general and administrative expenses 883,597 756,460 680,498 - -------------------------------------------------------------------------------- Total 2,146,321 1,893,073 1,685,127 - -------------------------------------------------------------------------------- OPERATING PROFIT 211,242 126,581 88,408 Interest expense, net of interest income 28,162 25,375 26,115 Net gain (loss) on dispositions 200,873 -- (53,768) - -------------------------------------------------------------------------------- Income before income taxes and equity in operations of forest products group 383,953 101,206 8,525 Income taxes 173,868 43,231 11,079 - -------------------------------------------------------------------------------- Income (Loss) before equity in operations of forest products group 210,085 57,975 (2,554) Equity in operations of forest products group 3,264 (51,852) (8,718) - -------------------------------------------------------------------------------- Income (Loss) before net cumulative effect of accounting changes 213,349 6,123 (11,272) Net cumulative effect of accounting changes -- -- (33,437) - -------------------------------------------------------------------------------- NET INCOME (LOSS) $ 213,349 $ 6,123 $ (44,709) - -------------------------------------------------------------------------------- Average number of common shares outstanding 104,070 84,459 78,534 Per share of common stock Income (Loss) before net cumulative effect of accounting changes $ 2.05 $ .07 $ (.14) Net cumulative effect of accounting changes -- -- (.43) Net income (loss) 2.05 .07 (.57) Dividends .56 .56 .56 - -------------------------------------------------------------------------------- See notes to consolidated financial statements. |
CONSOLIDATED BALANCE SHEETS - ------------------------------------------------------------------------------- December 31 1994 1993 - ------------------------------------------------------------------------------- ASSETS Dollars in thousand - ------------------------------------------------------------------------------- CURRENT ASSETS Cash and short-term investments (at cost which approximates market: 1994, $14,255,000; 1993, $27,744,000) $ 41,419 $ 42,058 Accounts receivable (net of allowances: 1994, $28,157,000; 1993, $43,507,000) 247,750 264,218 Inventories 30,545 47,271 Deferred subscription costs 10,659 32,597 Other current assets 81,401 107,009 - ------------------------------------------------------------------------------- Total current assets 411,774 493,153 - ------------------------------------------------------------------------------- INVESTMENT IN FOREST PRODUCTS GROUP 85,433 76,020 - ------------------------------------------------------------------------------- PROPERTY, PLANT AND EQUIPMENT (at cost) Land 62,945 65,839 Buildings, building equipment and improvements 629,152 650,186 Equipment 908,630 874,479 Construction and equipment installations in progress 218,041 93,007 - ------------------------------------------------------------------------------- Total 1,818,768 1,683,511 Less accumulated depreciation 660,017 571,487 - ------------------------------------------------------------------------------- Total property, plant and equipment - net 1,158,751 1,112,024 - ------------------------------------------------------------------------------- INTANGIBLE ASSETS ACQUIRED Costs in excess of net assets acquired 1,391,250 1,383,582 Other intangible assets acquired 160,747 227,377 - ------------------------------------------------------------------------------- Total 1,551,997 1,610,959 Less accumulated amortization 172,531 190,006 - ------------------------------------------------------------------------------- Total intangible assets acquired - net 1,379,466 1,420,953 - ------------------------------------------------------------------------------- MISCELLANEOUS ASSETS 102,207 113,054 - ------------------------------------------------------------------------------- Total $3,137,631 $3,215,204 - ------------------------------------------------------------------------------- See notes to consolidated financial statements. |
- ------------------------------------------------------------------------------ December 31 1994 1993 - ------------------------------------------------------------------------------ LIABILITIES AND STOCKHOLDERS' EQUITY Dollars in thousands - ------------------------------------------------------------------------------- CURRENT LIABILITIES Accounts and notes payable $121,504 $177,742 Payrolls 67,012 71,256 Accrued expenses 182,338 171,515 Unexpired subscriptions 77,697 130,627 Current portion of capital lease obligations 2,681 2,590 - ------------------------------------------------------------------------------- Total current liabilities 451,232 553,730 - ------------------------------------------------------------------------------- OTHER LIABILITIES Long-term debt 473,530 413,581 Capital lease obligations 49,666 46,482 Deferred income taxes 176,588 196,875 Other 441,323 403,869 - ------------------------------------------------------------------------------- Total other liabilities 1,141,107 1,060,807 - ------------------------------------------------------------------------------- STOCKHOLDERS' EQUITY 5 1/2 percent cumulative prior preference stock of $100 par value - authorized 110,000 shares; outstanding: 1994, 17,530 shares and 1993, 17,837 shares 1,753 1,784 Serial preferred stock of $1 par value - authorized 200,000 shares - none issued -- -- Common stock of $.10 par value Class A - authorized 200,000,000 shares; issued: 1994, 108,052,347 shares; 1993, 107,678,024 shares (including treasury shares: 1994, 10,242,381; 1993, 1,251,573) 10,805 10,768 Class B, convertible - authorized 600,000 shares; issued: 1994, 570,121 shares; 1993, 571,624 (including treasury shares: 1994 and 1993, 139,943) 57 57 Additional capital 597,860 599,758 Earnings reinvested in the business 1,179,715 1,022,958 Common stock held in treasury, at cost (244,898) (34,658) - ------------------------------------------------------------------------------- Total stockholders' equity 1,545,292 1,600,667 - ------------------------------------------------------------------------------- Total $3,137,631 $3,215,204 - -------------------------------------------------------------------------------- See notes to consolidated financial statements. |
CONSOLIDATED STATEMENTS OF CASH FLOWS - -------------------------------------------------------------------------------- Dollars in thousands Year Ended December 31 1994 1993 1992 - -------------------------------------------------------------------------------- CASH PROVIDED (USED): OPERATING ACTIVITIES Income (Loss) before net cumulative effect of accounting changes $213,349 $6,123 $(11,272) Adjustments to reconcile income (loss) before net cumulative effect of accounting changes to net cash provided by operating activities Depreciation 104,624 89,274 69,880 Amortization 49,633 39,558 38,052 Equity in operations of forest products group - net (3,240) 52,311 943 Cash distributions and dividends from forest products group 8,224 -- 6,775 Net (gain) loss on dispositions (200,873) -- 53,768 Proceeds from non-compete agreement 40,000 -- -- Deferred income taxes (33,732) (37,901) (18,216) (Increase) Decrease in receivables - net (18,573) (21,636) 430 (Increase) Decrease in inventories (4,035) 10,799 (10,707) (Increase) Decrease in deferred subscription costs and other current assets (17,820) 4,749 1,078 Increase (Decrease) in accounts payable 17,481 (41,429) 15,216 (Decrease) Increase in payrolls and accrued expenses (6,359) 64,823 5,405 Increase in unexpired subscriptions 18,027 11,196 4,342 Other - net 14,879 15,491 290 - -------------------------------------------------------------------------------- Net cash provided by operating activities 181,585 193,358 155,984 - -------------------------------------------------------------------------------- INVESTING ACTIVITIES Net proceeds on sale of BPI Communications, L.P. 55,367 -- -- Net proceeds from dispositions 243,776 -- 68,000 Businesses acquired, net of cash acquired -- (134,384) (23,091) Additions to property, plant and equipment (186,203) (75,738) (47,068) Purchases of marketable securities (88,358) (65,077) -- Proceeds from sales of marketable securities 88,358 65,077 -- Other investing proceeds 7,725 944 4,985 Other investing payments (8,505) (16,986) (8,629) - -------------------------------------------------------------------------------- Net cash provided by (used in) investing activities 112,160 (226,164) (5,803) - -------------------------------------------------------------------------------- FINANCING ACTIVITIES Short-term borrowing - net (1,935) 62,340 -- Long-term obligations Increase -- 200,000 -- Reduction (5,113) (5,510) (63,847) Capital shares Issuance 2,577 1,829 1,906 Repurchase (232,815) (255,222) -- Dividends paid to stockholders (58,287) (47,076) (54,935) Other financing proceeds 1,189 -- -- - -------------------------------------------------------------------------------- Net cash used in financing activities (294,384) (43,639) (116,876) - -------------------------------------------------------------------------------- Net (decrease) increase in Cash and short-term investments (639) (76,445) 33,305 Cash and short-term investments at the beginning of the year 42,058 118,503 85,198 - -------------------------------------------------------------------------------- Cash and short-term investments at the end of the year $ 41,419 $ 42,058 $ 118,503 - -------------------------------------------------------------------------------- See notes to consolidated financial statements and supplemental disclosures to consolidated statements of cash flows. |
SUPPLEMENTAL DISCLOSURES TO CONSOLIDATED STATEMENTS OF CASH FLOWS - -------------------------------------------------------------------------------- Dollars in thousands Year Ended December 31 1994 1993 1992 - -------------------------------------------------------------------------------- NONCASH INVESTING AND FINANCING TRANSACTIONS Capital lease assets and obligations incurred $ 5,990 $ 338 $ 668 =========== =========== ========== Businesses acquired Fair value of assets acquired $1,257,029 $34,462 Liabilities assumed (229,000) (11,371) Liabilities incurred, net of payments (18,744) -- Common stock issued (874,901) -- ----------- ----------- Net cash paid $134,384 $23,091 =========== =========== Issuance of common shares $21,723 $18,188 $17,965 =========== =========== =========== CASH FLOW INFORMATION Cash payments during the year for Interest (net of amount capitalized) $36,320 $26,861 $28,486 =========== =========== =========== Income taxes $220,973 $55,327 $36,776 =========== =========== =========== - -------------------------------------------------------------------------------- The increase in income taxes paid (and corresponding decrease in net cash provided by operating activities) is in large part due to an increase in estimated income tax payments of approximately $113,500,000 related to the net gain on dispositions in 1994. |
Condensed combined balance sheets of the Forest Products Group, which exclude Gaspesia at December 31, 1994, are as follows: - -------------------------------------------------------------------------------- Condensed Combined Balance Sheets of Forest Products Group - -------------------------------------------------------------------------------- Dollars in thousands - -------------------------------------------------------------------------------- December 31 1994 1993 - -------------------------------------------------------------------------------- Current assets $66,280 $87,984 Less current liabilities 33,027 75,073 - -------------------------------------------------------------------------------- Working capital 33,253 12,911 Fixed assets, net 236,961 345,413 Long-term debt (62,355) (71,528) Deferred income taxes (103,756) (102,752) - -------------------------------------------------------------------------------- Net assets $104,103 $184,044 - -------------------------------------------------------------------------------- At December 31, 1994, long-term debt of the Forest Products Group (exclusive of $11,300,000 due within one year) matures as follows: 1996, $47,347,000; 1997, $500,000; 998, $14,408,000; and 1999, $100,000. |
Condensed combined statements of operations of the Forest Products Group, which exclude the operations of Gaspesia subsequent to the write-down at December 31, 1993, are as follows: - -------------------------------------------------------------------------------- Condensed Combined Statements of Operations of Forest Products Group - -------------------------------------------------------------------------------- Dollars in thousands - -------------------------------------------------------------------------------- Year Ended December 31 1994 1993 1992 - -------------------------------------------------------------------------------- Net sales and other income $189,805 $254,324 $266,451 Costs and expenses 180,860 269,845 297,117 - -------------------------------------------------------------------------------- Income (Loss) before taxes 8,945 (15,521) (30,666) Income tax expense (benefit) 1,136 (2,700) (11,680) - -------------------------------------------------------------------------------- Net income (loss) $7,809 $(12,821) $(18,986) - -------------------------------------------------------------------------------- The condensed combined financial information of the Forest Products Group excludes the income tax effects related to Madison. |
Income tax expense as shown in the Consolidated Statements of Operations is composed of the following: - ------------------------------------------------------------ Dollars in thousands 1994 1993 1992 - ------------------------------------------------------------ Current tax expense Federal $159,779 60,178 $8,970 State, local, foreign 49,651 17,612 1,413 - ------------------------------------------------------------ 209,430 77,790 10,383 - ------------------------------------------------------------ Deferred tax expense Federal (20,955) (26,982) (1,157) State, local, foreign (13,088) (8,919) 1,302 - ------------------------------------------------------------ (34,043) (35,901) 145 - ------------------------------------------------------------ Income tax expense from continuing operations 175,387 41,889 10,528 Less income tax expense (benefit) related to equity in operations 1,519 (1,342) (551) - ------------------------------------------------------------ Income tax expense $173,868 $43,231 $11,079 - ------------------------------------------------------------ Tax expense in 1994 was reduced by approximately $10,000,000 and $3,000,000, respectively, relating to a decrease in valuation allowance and recognition of federal capital loss tax benefits. |
F - 18 The reasons for the variance between the effective tax rate on income before income taxes and equity in operations of the Forest Products Group and the federal statutory rate (exclusive of the net gain on dispositions in 1994 and loss on dispositions in 1992) are as follows: - -------------------------------------------------------------------------------- Year Ended December 31 1994 1993 1992 - -------------------------------------------------------------------------------- % of % of % of Dollars in thousands Amount Pretax Amount Pretax Amount Pretax - -------------------------------------------------------------------------------- Tax at federal statutory rate $64,078 35.0% $35,422 35.0% $21,180 34.0% Increase (decrease) resulting from State and local taxes - net 5,177 2.8 6,883 6.8 2,294 3.7 Capital loss tax benefits (10,000) (5.4) (6,875) (6.8) -- -- Amortization of intangible assets acquired 11,139 6.1 5,602 5.5 4,033 6.5 Change in enacted tax rate -- -- 3,759 3.7 -- -- Other - net 5,920 3.2 (1,560) (1.5) 227 0.3 - -------------------------------------------------------------------------------- Subtotal 76,314 41.7% 43,231 42.7% 27,734 44.5% - -------------------------------------------------------------------------------- Dispositions 97,554 -- (16,655) - -------------------------------------------------------------------------------- Income tax expense $173,868 $43,231 $11,079 - -------------------------------------------------------------------------------- Federal income taxes currently refundable totaled $28,109,000 and $2,992,000 at December 31, 1994 and 1993, respectively, and are included in other current assets on the Consolidated Balance Sheets. |
The components of the net deferred tax liabilities recognized on the respective Consolidated Balance Sheets are as follows: - -------------------------------------------------------- Dollars in thousands December 31 1994 1993 - -------------------------------------------------------- Deferred Tax Assets Intangible assets acquired $10,425 $23,568 Accrued state and local taxes 14,996 19,890 Postretirement and postemployment benefits 81,707 78,655 Other accrued employee benefits and compensation 89,569 110,218 Allowance for doubtful accounts 26,305 23,557 Tax loss carryforwards 20,260 23,595 Unearned Income 21,848 -- Other 4,578 22,860 - -------------------------------------------------------- Total deferred tax assets 269,688 302,343 Valuation allowance (19,774) (27,773) - -------------------------------------------------------- Net deferred tax assets $249,914 $274,570 - -------------------------------------------------------- - -------------------------------------------------------- Dollars in thousands December 31 1994 1993 - -------------------------------------------------------- Deferred Tax Liabilities Property, plant and equipment $121,617 $131,189 Tax certificate 125,664 137,343 Nontaxable acquisition 125,782 145,298 Deferred subscription expenses 8,627 21,743 Safe harbor tax lease 19,717 20,376 Unremitted earnings 833 -- Investment in Forest Products Group 13,324 -- Other 2,641 18,446 - ------------------------------------------------------- Total deferred tax liabilities 418,205 474,395 - -------------------------------------------------------- Net deferred tax assets (249,914) (274,570) - -------------------------------------------------------- Net deferred tax liability 168,291 199,825 - -------------------------------------------------------- Less amounts included in: Other current assets (9,296) (4,812) Accrued expenses 999 7,762 - -------------------------------------------------------- Deferred income taxes $176,588 $196,875 - -------------------------------------------------------- At December 31, 1994, there were no federal net operating loss carryforwards. |
Long-term debt consisted of the following: - -------------------------------------------------------------------------------- Dollars in thousands - -------------------------------------------------------------------------------- December 31 1994 1993 - -------------------------------------------------------------------------------- Notes due 1998-2000 (a) $200,000 $200,000 Notes due 1995 net of unamortized discount: 1994, $511; 1993, $2,444 (b) 161,789 159,856 Notes due 1995 including unamortized premium: 1994, $1,336; 1993, $3,725 (c) 51,336 53,725 Commercial Paper (d) 60,405 -- - -------------------------------------------------------------------------------- Total 473,530 413,581 Less current portion -- -- - -------------------------------------------------------------------------------- Total long-term portion $473,530 $413,581 - -------------------------------------------------------------------------------- (a) In October 1993, the Company issued senior notes totaling $200,000,000 to an insurance company with interest payable semi-annually. |
The funded status of the Company's plans which were valued at September 30, 1994 and 1993 is as follows: - -------------------------------------------------------------------------------- Plans Whose Plans Whose Assets Exceed Accumulated December 31, 1994 Accumulated Benefits Dollars in thousands Benefits Exceed Assets - -------------------------------------------------------------------------------- Actuarial present value of benefit obligation: Vested benefit obligation $187,656 $207,104 - -------------------------------------------------------------------------------- Accumulated benefit obligation $193,129 $212,519 - -------------------------------------------------------------------------------- Projected benefit obligation $238,574 $263,044 Plan assets at fair value 231,236 144,200 - -------------------------------------------------------------------------------- Projected benefit obligation in excess of plan assets 7,338 118,844 Unrecognized net (losses) gains (12,337) 11,269 Unrecognized prior service cost 6,567 (10,814) Unrecognized transition obligation (2,038) (1,517) Fourth-quarter contribution, net (2,483) (7,891) - -------------------------------------------------------------------------------- Recorded pension (asset) liability $(2,953) $109,891 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Plans Whose Plans Whose Assets Exceed Accumulated December 31, 1993 Accumulated Benefits Dollars in thousands Benefits Exceed Assets - ------------------------------------------------------------------------------ Actuarial present value of benefit obligation: Vested benefit obligation $187,972 $219,554 - ------------------------------------------------------------------------------ Accumulated benefit obligation $193,951 $227,102 - ------------------------------------------------------------------------------ Projected benefit obligation $251,679 $282,179 Plan assets at fair value 234,366 142,015 - ------------------------------------------------------------------------------ Projected benefit obligation in excess of plan assets 17,313 140,164 Unrecognized net (losses) (24,972) (20,043) Unrecognized prior service cost 7,746 (9,633) Unrecognized transition obligation (2,690) (2,724) Fourth-quarter contribution, net (2,675) (3,220) Adjustment required to recognize additional minimum liability 10,087 - -------------------------------------------------------------------------------- Recorded pension (asset) liability $(5,278) $114,631 - -------------------------------------------------------------------------------- Plan assets, which were valued as of September 30, 1994 and 1993, consist of money market investments, investments in marketable fixed income and equity securities, an investment in a diversified real estate equity fund and investments in group annuity insurance contracts. |
- -------------------------------------------------------------------------------- Dollars in thousands - -------------------------------------------------------------------------------- December 31 1994 1993 - -------------------------------------------------------------------------------- Accumulated postretirement benefit obligation Retirees $49,595 $53,677 Fully eligible active plan participants 26,894 28,450 Other active plan participants 45,017 51,522 - -------------------------------------------------------------------------------- Total 121,506 133,649 Unrecognized net gains 26,287 4,535 Fourth-quarter benefit payments (1,035) (821) - -------------------------------------------------------------------------------- Total accrued postretirement benefit liability 146,758 137,363 Current portion included in accrued expenses 4,400 4,040 - -------------------------------------------------------------------------------- Long-term accrued postretirement benefit liability $142,358 $133,323 - -------------------------------------------------------------------------------- Subsequent to the measurement date, a plan amendment was adopted to reduce benefits for participants retiring after January 1, 1995. |
Changes in stock options for each of the three years in the period ended December 31, 1994 were as follows: - ------------------------------------------------------------------------ Dollars in thousands Option Price except per share data Shares Per Share ($) Total - ------------------------------------------------------------------------ Options oustanding January 1, 1992 4,335,508 5.76 to 38.87 $98,099 Granted 1,103,410 25.93 to 28.88 28,473 Exercised (466,320) 5.76 to 26.75 (7,900) Terminations (91,982) 20.56 to 36.43 (2,737) - ------------------------------------------------------------------------ Options outstanding December 31, 1992 4,880,616 13.96 to 38.87 115,935 Granted 1,909,080 26.50 to 30.68 50,641 Globe stock option conversion 958,654 6.89 to 22.50 14,381 Exercised (346,334) 6.89 to 26.75 (6,333) Terminations (41,175) 20.00 to 36.43 (1,116) - ------------------------------------------------------------------------ Options outstanding December 31, 1993 7,360,841 6.89 to 38.87 173,508 Granted 2,426,376 22.56 to 26.18 54,807 Exercised (378,392) 6.89 to 26.75 (6,634) Terminations (127,037) 11.45 to 36.43 (3,174) - ------------------------------------------------------------------------ Options outstanding outstanding December 31, 1994 9,281,788 6.89 to 38.87 $218,507 - ------------------------------------------------------------------------ Options which became exercisable during 1992 728,859 20.00 to 20.81 $14,588 1993 1,803,174 6.89 to 28.88 35,098 1994 761,221 20.00 to 30.68 19,021 - ------------------------------------------------------------------------ Options exercisable at December 31, 1992 3,237,964 13.96 to 38.87 $76,678 1993 4,673,663 6.89 to 38.87 104,789 1994 4,953,313 6.89 to 38.87 114,260 - ------------------------------------------------------------------------ F - 24 - -------------------------------------------------------------------------------- 12. |
The following is a schedule of future minimum lease payments under all capitalized leases together with the present value of the net minimum lease payments as of December 31, 1994: - -------------------------------------------------------------------------------- Dollars in thousands - -------------------------------------------------------------------------------- Year Ended December 31 Amount - -------------------------------------------------------------------------------- 1995 $7,089 1996 6,838 1997 6,734 1998 7,018 1999 6,971 Later years 64,110 - -------------------------------------------------------------------------------- Total minimum lease payments 98,760 Less: amount representing interest 46,413 - -------------------------------------------------------------------------------- Present value of net minimum lease payments including current maturities of $2,681 $52,347 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 14. |
The market price range of Class A Common Stock in 1994 and 1993 is as follows: - ------------------------------------------------------------------------ Quarter Ended 1994 1993 - ------------------------------------------------------------------------ High Low High Low March 31 $29.50 $25.75 $31.25 $26.37 June 30 27.62 23.00 31.25 23.00 September 30 25.00 21.62 26.12 22.62 December 31 24.62 21.25 28.75 22.37 Year 29.50 21.25 31.25 22.37 - ------------------------------------------------------------------------ F - 27 QUARTERLY INFORMATION (Unaudited) - -------------------------------------------------------------------------------- Dollars and shares in millions First Quarter Second Quarter Third Quarter except per share data 1994 1993 1994 1993 1994 - -------------------------------------------------------------------------------- Revenues $589.5 $454.5 $635.5 $483.6 $527.2 - -------------------------------------------------------------------------------- Costs and Expenses Production costs: Raw materials 78.4 63.7 80.4 67.5 66.0 Wages and benefits 132.1 101.2 133.7 100.1 129.8 Other 112.9 94.5 117.6 98.6 96.2 - -------------------------------------------------------------------------------- Total 323.4 259.4 331.7 266.2 292.0 Selling, general and administrative expenses 223.0 164.0 230.4 168.4 201.9 - -------------------------------------------------------------------------------- Total 546.4 423.4 562.1 434.6 493.9 - -------------------------------------------------------------------------------- Operating profit 43.1 31.1 73.4 49.0 33.3 Interest expense, net 8.7 5.2 8.0 5.2 6.2 Net gain (loss) on dispositions - - - - 204.0 Income taxes 16.7 12.9 31.4 20.9 112.0 - -------------------------------------------------------------------------------- Income (Loss) before equity in operations of forest products group 17.7 13.0 34.0 22.9 119.1 Equity in operations of forest products group - (2.1) 0.3 (0.5) 1.5 - -------------------------------------------------------------------------------- Net income (loss) $17.7 $10.9 $34.3 $22.4 $120.6 - -------------------------------------------------------------------------------- Average number of common shares outstanding 106.9 79.9 106.3 79.7 104.3 Per share of common stock Net income (loss) $.17 $.14 $.32 $.28 $1.16 Dividends .14 .14 .14 .14 .14 - -------------------------------------------------------------------------------- QUARTERLY INFORMATION (Unaudited) - -------------------------------------------------------------------------------- Dollars and shares in millions Third Quarter Fourth Quarter Year except per share data 1993 1994 1993 1994 1993 - -------------------------------------------------------------------------------- Revenues $ $445.6 $605.4 $636.0 $2,357.6 $2,019.7 - -------------------------------------------------------------------------------- Costs and Expenses Production costs: Raw materials 64.2 79.6 85.1 304.4 280.5 Wages and benefits 99.8 134.1 136.4 529.7 437.5 Other 102.9 102.0 122.6 428.7 418.6 - -------------------------------------------------------------------------------- Total 266.9 315.7 344.1 1,262.8 1,136.6 Selling, general and administrative expenses 166.5 228.3 257.6 883.6 756.5 - -------------------------------------------------------------------------------- Total 433.4 544.0 601.7 2,146.4 1,893.1 - -------------------------------------------------------------------------------- Operating profit 12.2 61.4 34.3 211.2 126.6 Interest expense, net 6.6 5.3 8.4 28.2 25.4 Net gain (loss) on dispositions - (3.1) - 200.9 - Income taxes 6.5 13.8 2.9 173.9 43.2 - -------------------------------------------------------------------------------- Income (Loss) before equity in operations of forest products group (0.9) 39.2 23.0 210.0 58.0 Equity in operations of forest products group (2.1) 1.5 (47.2) 3.3 (51.9) - -------------------------------------------------------------------------------- Net income (loss) $(3.0) $40.7 $(24.2) $213.3 $6.1 - -------------------------------------------------------------------------------- Average number of common shares outstanding 72.4 98.8 106.0 104.1 84.5 Per share of common stock Net income (loss) $(.04) $.41 $(.23) $2.05 $.07 Dividends .14 .14 .14 .56 .56 - -------------------------------------------------------------------------------- The 1994 and 1993 quarters do not equal the respective year-end amounts for earnings per share due to the weighted average number of shares outstanding used in the computations for the respective periods. |
F - 28 TEN-YEAR SUPPLEMENTAL FINANCIAL DATA - -------------------------------------------------------------------------------- Dollars and shares in millions Year Ended December 31 except per share data 1994 1993 1992 1991 1990 - -------------------------------------------------------------------------------- Revenues and Income Revenues $2,358 $2,020 $1,774 $1,703 $1,777 - -------------------------------------------------------------------------------- Operating Profit 211 127 88 94 130 - -------------------------------------------------------------------------------- Income (Loss) from continuing operations before equity in forest products group 210 58 (2) 41 61 Equity in operations of forest products group 3 (52) (9) 6 4 - -------------------------------------------------------------------------------- Income (Loss) from continuing operations 213 6 (11) 47 65 Discontinued operations - - - - - Net cumulative effect of accounting changes - - (34) - - - -------------------------------------------------------------------------------- Net income (loss) 213 6 (45) 47 65 - -------------------------------------------------------------------------------- Balance Sheet Total assets 3,138 3,215 1,995 2,128 2,150 Long-term debt and capital lease obligations 523 460 207 213 319 Common stockholders' equity 1,544 1,599 1,000 1,073 1,056 - -------------------------------------------------------------------------------- Per share of Common Stock Continuing operations 2.05 .07 (.14) .61 .85 Discontinued operations - - - - - Net cumulative effect of accounting changes - - (.43) - - Net income (loss) 2.05 .07 (.57) .61 .85 Dividends .56 .56 .56 .56 .54 Common stockholders' equity (end of year) 15.71 14.96 12.54 13.70 13.68 - -------------------------------------------------------------------------------- Shares Outstanding (end of year) Class A and Class B Common 98.2 106.9 79.7 78.4 77.2 - -------------------------------------------------------------------------------- Market Price (end of year) 22.12 26.25 26.37 23.62 20.62 - -------------------------------------------------------------------------------- TEN-YEAR SUPPLEMENTAL FINANCIAL DATA - ------------------------------------------------------------------------- Dollars and shares in Year Ended December 31 millions except per share data 1989 1988 1987 1986 1985 - ------------------------------------------------------------------------- Revenues and Income Revenues $1,769 $1,700 $1,642 $1,524 $1,358 - ------------------------------------------------------------------------- Operating Profit 169 251 284 266 210 - ------------------------------------------------------------------------- Income (Loss) from continuing operations before equity in forest products group 84 132 138 110 93 Equity in operations of forest products group (16) 29 18 20 21 - ------------------------------------------------------------------------- Income (Loss) from continuing operations 68 161 156 130 114 Discontinued operations 199 7 4 2 2 Net cumulative effect of accounting changes - - - - - - ------------------------------------------------------------------------- Net income (loss) 267 168 160 132 116 - ------------------------------------------------------------------------- Balance Sheet Total assets 2,188 1,915 1,712 1,405 1,296 Long-term debt and capital lease obligations 337 378 391 217 274 Common stockholders' equity 1,064 873 823 705 586 - ------------------------------------------------------------------------- Per share of Common Stock Continuing operations .87 2.00 1.91 1.60 1.43 Discontinued operations 2.52 .08 .05 .03 .02 Net cumulative effect of accounting changes - - - - - Net income (loss) 3.39 2.08 1.96 1.63 1.45 Dividends .50 .46 .40 .33 .29 Common stockholders' equity (end of year) 13.63 11.02 10.04 8.59 7.24 - ------------------------------------------------------------------------- Shares Outstanding (end of year) Class A and Class B Common 78.1 79.2 82.0 82.0 80.9 - ------------------------------------------------------------------------- Market Price (end of year) 26.37 26.87 31.00 35.50 24.50 - ------------------------------------------------------------------------- 1994 - Results include a net pre-tax gain of $200.9 million ($.99 per share) on the sale of the Women's Magazines Division and U.K. golf publications and the disposition of Gaspesia. |
F - 29 SCHEDULE II THE NEW YORK TIMES COMPANY VALUATION AND QUALIFYING ACCOUNTS FOR THE THREE YEARS ENDED DECEMBER 31, 1994 - -------------------------------------------------------------------------------- Column A Column B Column C Column D Column E - -------------------------------------------------------------------------------- Deduc- tions Additions for charged purposes Balance to costs for at and which Balance beginning expenses accounts at end of or were set of Description period revenues up period - -------------------------------------------------------------------------------- Dollars in thousands YEAR ENDED DECEMBER 31, 1994 Deducted from assets to which they apply Uncollectible accounts......... $17,108 $23,134 $17,974 $22,268 Returns and allowances, etc.... 26,399 44,562 65,072 5,889 ------- -------- -------- ------- Total...................... $43,507 $67,696 $83,046 $28,157 ======= ======== ======== ======= YEAR ENDED DECEMBER 31, 1993 Deducted from assets to which they apply Uncollectible accounts......... $12,809 $18,495 $14,196 $17,108 Returns and allowances, etc.... 20,491 71,657 65,749 26,399 ------- -------- -------- ------- Total...................... $33,300 $90,152 $79,945 $43,507 ======= ======== ======== ======= YEAR ENDED DECEMBER 31, 1992 Deducted from assets to which they apply Uncollectible accounts......... $13,020 $14,848 $15,059 $12,809 Returns and allowances, etc.... 17,621 61,154 58,284 20,491 ------- -------- -------- ------- Total...................... $30,641 $76,002 $73,343 $33,300 ======= ======== ======== ======= S-1 Exhibit Index ------------- (2.1) Agreement and Plan of Merger dated as of June 11, 1993, as amended by the First Amendment dated as of August 12, 1993, by and among the Company, Sphere, Inc. and Affiliated Publications, Inc. (filed as Exhibit 2 to the Form S-4 Registration Statement, Registration No. |
33-31538 to comprehend our report, dated February 10, 1994, on the consolidated balance sheets of the Company as of December 31, 1993 and 1992, and the related consolidated statements of operations, stockholders' equity and cash flows for each of the three years in the period ended December 31, 1993 included in the aforementioned Form 10-K. DELOITTE & TOUCHE New York, New York March 21, 1994 THE NEW YORK TIMES COMPANY 1993 Consolidated Financial Statements - ---------------------------------------------------------------------- Contents Page - ---------------------------------------------------------------------- Financial Highlights Segment Information Management's Discussion and Analysis Consolidated Statements of Operations Consolidated Balance Sheets Consolidated Statements of Cash Flows Consolidated Statements of Stockholders' Equity Notes to Consolidated Financial Statements Independent Auditors' Report Management's Responsibilities Report Market Information Quarterly Information Ten-Year Supplemental Financial Data FINANCIAL HIGHLIGHTS In September 1992 the Company closed The Gwinnett (Ga.) Daily News and sold the residual assets. |
- ------------------------------------------------------------------------------- Dollars in thousands Year Ended December 31 1993 1992 1991 - ------------------------------------------------------------------------------- REVENUES Newspapers $1,537,934 $1,306,952 $1,274,435 Magazines 394,463 386,120 352,686 Broadcasting/Information services 87,257 80,463 75,980 - ------------------------------------------------------------------------------- Total $2,019,654 $1,773,535 $1,703,101 - ------------------------------------------------------------------------------- OPERATING PROFIT (LOSS) Newspapers $ 114,332 $ 81,173 $ 93,578 Magazines 12,330 9,929 (492) Broadcasting/Information services 19,403 14,766 13,957 Unallocated corporate expenses (19,484) (17,460) (13,404) - ------------------------------------------------------------------------------- Total 126,581 88,408 93,639 Interest expense, net of interest income 25,375 26,115 30,586 Loss on disposition of Gwinnett Daily News - 53,768 - - ------------------------------------------------------------------------------- Income before income taxes and equity in operations of forest products group 101,206 8,525 63,053 Income taxes 43,231 11,079 21,760 - ------------------------------------------------------------------------------- Income (Loss) before equity in operations of forest products group 57,975 (2,554) 41,293 Equity in operations of forest products group (51,852) (8,718) 5,700 - ------------------------------------------------------------------------------- INCOME (LOSS) BEFORE NET CUMULATIVE EFFECT OF ACCOUNTING CHANGES $ 6,123 $ (11,272) $ 46,993 - ------------------------------------------------------------------------------- See notes to consolidated financial statements. |
SEGMENT INFORMATION - ------------------------------------------------------------------------------- Dollars in thousands Year Ended December 31 1993 1992 1991 - ------------------------------------------------------------------------------- DEPRECIATION AND AMORTIZATION Newspapers $ 98,957 $ 74,495 $ 77,090 Magazines 18,616 20,628 26,683 Broadcasting/Information services 10,731 12,424 12,621 Corporate 528 385 446 - ------------------------------------------------------------------------------- Total $ 128,832 $ 107,932 $ 116,840 - ------------------------------------------------------------------------------- CAPITAL EXPENDITURES Newspapers $ 71,746 $ 42,675 $ 21,867 Magazines 3,059 1,888 1,467 Broadcasting/Information services 3,323 1,863 2,697 Corporate 1,491 903 169 - ------------------------------------------------------------------------------- Total $ 79,619 $ 47,329 $ 26,200 - ------------------------------------------------------------------------------- IDENTIFIABLE ASSETS AT DECEMBER 31 Newspapers $2,676,779 $1,321,667 $1,444,462 Magazines 247,723 255,777 272,323 Broadcasting/Information services 113,675 117,679 122,436 Corporate 101,007 160,459 125,760 Investment in forest products group 76,020 139,392 163,000 - ------------------------------------------------------------------------------- Total $3,215,204 $1,994,974 $2,127,981 - ------------------------------------------------------------------------------- See notes to consolidated financial statements. |
CONSOLIDATED STATEMENTS OF OPERATIONS - ------------------------------------------------------------------------------- Dollars and shares in thousands except Year Ended December 31 per share data 1993 1992 1991 - ------------------------------------------------------------------------------- REVENUES Advertising $1,399,042 $1,254,764 $1,254,365 Circulation 473,971 419,454 390,600 Other 146,641 99,317 58,136 - ------------------------------------------------------------------------------- Total 2,019,654 1,773,535 1,703,101 - ------------------------------------------------------------------------------- COSTS AND EXPENSES Production costs: Raw materials 280,531 250,575 288,618 Wages and benefits 437,528 388,403 361,660 Other 418,554 365,651 341,105 - ------------------------------------------------------------------------------- Total 1,136,613 1,004,629 991,383 Selling, general and administrative expenses 756,460 680,498 618,079 - ------------------------------------------------------------------------------- Total 1,893,073 1,685,127 1,609,462 - ------------------------------------------------------------------------------- OPERATING PROFIT 126,581 88,408 93,639 Interest expense, net of interest income 25,375 26,115 30,586 Loss on disposition of Gwinnett Daily News - 53,768 - - ------------------------------------------------------------------------------- Income before income taxes and equity in operations of forest products group 101,206 8,525 63,053 Income taxes 43,231 11,079 21,760 - ------------------------------------------------------------------------------- Income (Loss) before equity in operations of forest products group 57,975 (2,554) 41,293 Equity in operations of forest products group (51,852) (8,718) 5,700 - ------------------------------------------------------------------------------- Income (Loss) before net cumulative effect of accounting changes 6,123 (11,272) 46,993 Net cumulative effect of accounting changes - (33,437) - - ------------------------------------------------------------------------------- NET INCOME (LOSS) $ 6,123 $ (44,709) $ 46,993 - ------------------------------------------------------------------------------- Average number of common shares outstanding 84,459 78,534 77,299 Per share of common stock Before net cumulative effect of accounting changes $ .07 $ (.14) $ .61 Net cumulative effect of accounting changes - (.43) - Net income (loss) .07 (.57) .61 Dividends .56 .56 .56 - ------------------------------------------------------------------------------- See notes to consolidated financial statements. |
CONSOLIDATED BALANCE SHEETS - ------------------------------------------------------------------------------- December 31 1993 1992 - ------------------------------------------------------------------------------- ASSETS Dollars in thousands - ------------------------------------------------------------------------------- CURRENT ASSETS Cash and short-term investments (at cost which approximates market: 1993, $27,744,000; 1992, $91,685,000) $ 42,058 $ 118,503 Accounts receivable (net of allowances: 1993, $43,507,000; 1992, $33,300,000) 264,218 192,233 Inventories 47,271 51,551 Deferred subscription costs 32,597 32,830 Other current assets 107,009 37,661 - ------------------------------------------------------------------------------- Total current assets 493,153 432,778 - ------------------------------------------------------------------------------- INVESTMENT IN FOREST PRODUCTS GROUP 76,020 139,392 - ------------------------------------------------------------------------------- PROPERTY, PLANT AND EQUIPMENT (at cost) Land 65,839 61,961 Buildings, building equipment and improvements 650,186 597,597 Equipment 874,479 751,186 Construction and equipment installations in progress 93,007 47,842 - ------------------------------------------------------------------------------- Total 1,683,511 1,458,586 Less accumulated depreciation 571,487 555,831 - ------------------------------------------------------------------------------- Total property, plant and equipment - net 1,112,024 902,755 - ------------------------------------------------------------------------------- INTANGIBLE ASSETS ACQUIRED Costs in excess of net assets acquired 1,383,582 554,014 Other intangible assets acquired 227,377 63,200 - ------------------------------------------------------------------------------- Total 1,610,959 617,214 Less accumulated amortization 190,006 160,991 - ------------------------------------------------------------------------------- Total intangible assets acquired - net 1,420,953 456,223 - ------------------------------------------------------------------------------- MISCELLANEOUS ASSETS 113,054 63,826 - ------------------------------------------------------------------------------- Total $3,215,204 $1,994,974 - ------------------------------------------------------------------------------- See notes to consolidated financial statements. |
- ------------------------------------------------------------------------------- December 31 1993 1992 - ------------------------------------------------------------------------------- LIABILITIES AND STOCKHOLDERS' EQUITY Dollars in thousands - ------------------------------------------------------------------------------- CURRENT LIABILITIES Accounts payable $ 115,402 $ 139,115 Notes payable 62,340 - Payrolls 71,256 47,820 Accrued expenses 171,515 90,063 Unexpired subscriptions 130,627 119,508 Short-term debt 2,590 2,643 - ------------------------------------------------------------------------------- Total current liabilities 553,730 399,149 - ------------------------------------------------------------------------------- OTHER LIABILITIES Long-term debt 413,581 158,131 Capital lease obligations 46,482 48,780 Deferred income taxes 196,875 187,701 Other 403,869 199,799 - ------------------------------------------------------------------------------- Total other liabilities 1,060,807 594,411 - ------------------------------------------------------------------------------- STOCKHOLDERS' EQUITY 5 1/2% Cumulative prior preference stock of $100 par value - authorized 110,000 shares; outstanding: 1993 and 1992, 17,837 shares 1,784 1,784 Serial preferred stock of $1 par value - authorized 200,000 shares - none issued - - Common stock of $.10 par value Class A - authorized 200,000,000 shares; issued: 1993, 107,678,024 shares; 1992, 88,047,623 shares (including treasury shares: 1993, 1,251,573; 1992, 8,773,419) 10,768 8,805 Class B, convertible - authorized 600,000 shares; issued: 1993, 571,624 shares; 1992, 571,804 (including treasury shares: 1993 and 1992, 139,943) 57 57 Additional capital 599,758 164,928 Earnings reinvested in the business 1,022,958 1,065,347 Common stock held in treasury, at cost (34,658) (239,507) - ------------------------------------------------------------------------------- Total stockholders' equity 1,600,667 1,001,414 - ------------------------------------------------------------------------------- Total $3,215,204 $1,994,974 - ------------------------------------------------------------------------------- See notes to consolidated financial statements. |
SUPPLEMENTAL DISCLOSURES TO CONSOLIDATED STATEMENTS OF CASH FLOWS - ------------------------------------------------------------------------------- Dollars in thousands Year Ended December 31 1993 1992 1991 - ------------------------------------------------------------------------------- NONCASH INVESTING AND FINANCING TRANSACTIONS Capital lease assets and obligations incurred $ 338 $ 668 $ 311 ========== ========== ========== Businesses acquired Fair value of assets acquired $1,237,029 $ 34,462 Liabilities assumed (209,000) (11,371) Liabilities incurred, net of payments (18,744) - Common stock issued (874,901) - --------- ---------- Net cash paid $ 134,384 $ 23,091 ========= ========== Valuation reserve (investment in forest products group) $ (26,927) ========== CASH FLOW INFORMATION Cash payments during the year for Interest (net of amount capitalized) $ 26,861 $ 28,486 $ 31,367 ========= ======== ========= Income taxes $ 55,327 $ 36,776 $ 25,620 ========= ======== ========= - ------------------------------------------------------------------------------- NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - ------------------------------------------------------------------------------- 1. |
Income tax expense as shown in the Consolidated Statements of Operations is composed of the following: - ----------------------------------------------------- Dollars in thousands 1993 1992 1991 - ----------------------------------------------------- Current tax expense Federal $60,178 $8,970 $21,666 State, local, foreign 17,612 1,413 695 - ----------------------------------------------------- 77,790 10,383 22,361 - ----------------------------------------------------- Deferred tax expense Federal (26,982) (1,157) (2,335) State, local, foreign (8,919) 1,302 4,941 - ----------------------------------------------------- (35,901) 145 2,606 - ----------------------------------------------------- Income tax expense including the tax effects of equity in operations 41,889 10,528 24,967 Less income tax (benefit) expense related to equity in operations (1,342) (551) 3,207 - ----------------------------------------------------- Income tax expense $43,231 $11,079 $21,760 - ----------------------------------------------------- Tax expense in 1993 was reduced by approximately $7,000,000 and $2,485,000, respectively, relating to a decrease in valuation allowance and recognition of federal tax benefits of capital loss carryforwards. |
F - 17 The reasons for the variance between the effective tax rate on income before income taxes and equity in operations of the Forest Products Group and the federal statutory rate (exclusive in 1992 of the loss on the disposition of Gwinnett) are as follows: Year Ended December 31 1993 1992 1991 - ------------------------------------------------------------------------------ % of % of % of Dollars in thousands Amount Pretax Amount Pretax Amount Pretax - ------------------------------------------------------------------------------ Tax at federal statutory rate $35,422 35.0% $21,180 34.0% $21,438 34.0% Increase (decrease) resulting from State and local taxes - - net 6,883 6.8 2,294 3.7 3,507 5.6 Capital loss carryforwards (6,875) (6.8) - - - - Amortization of intangible assets acquired 5,602 5.5 4,033 6.5 6,970 11.1 Change in enacted tax rate 3,759 3.7 - - - - Tax settlement - - - - (10,000) (15.9) Other - net (1,560) (1.5) 227 0.3 (155) (0.3) - ------------------------------------------------------------------------------ Subtotal 43,231 42.7% 27,734 44.5% 21,760 34.5% - ------------------------------------------------------------------------------ Gwinnett disposition - (16,655) - - ------------------------------------------------------------------------------ Income tax expense $43,231 $11,079 $21,760 - ------------------------------------------------------------------------------ Federal income taxes currently refundable totaled $2,992,000 and $4,842,000 at December 31, 1993 and 1992, respectively, and are included in other current assets on the Consolidated Balance Sheets. |
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