Operating Costs Operating costs were as follows: The components of operating costs as a percentage of total operating costs were as follows: The components of operating costs as a percentage of total revenues were as follows: Production costs increased in 2014 compared with 2013 primarily due to higher wages and benefits  (approximately $25 million), offset in part by lower raw materials expense (approximately $4 million). Newsprint  expense declined 5.5% in 2014 compared with 2013, with 4.1% from lower consumption and 1.4% from lower pricing.  Compensation costs increased mainly due to hiring related to strategic initiatives. Production costs decreased in 2013 compared with 2012 primarily due to lower raw materials expense  (approximately $13 million), mainly newsprint, outside printing costs (approximately $9 million) and pension  expense (approximately $3 million), offset in part by higher compensation costs (approximately $4 million).  Newsprint expense declined 16.2% in 2013, with 9.8% from lower consumption and 6.4% from lower pricing. Cost  savings from contract negotiations mainly contributed to lower outside printing costs. Compensation costs increased  P. 30 – THE NEW YORK TIMES COMPANY Production Costs Years Ended December 28, 2014 December 29, 2013 December 30, 2012 (52 weeks) (52 weeks) (53 weeks) Components of operating costs as a percentage of total revenues Wages and benefits 41% 36% 36% Raw materials 5% 6% 7% Other operating costs 42% 43% 42% Depreciation and amortization 5% 5% 5% Total 93% 90% 90% Years Ended December 28, 2014 December 29, 2013 December 30, 2012 (52 weeks) (52 weeks) (53 weeks) Components of operating costs as a percentage of total operating costs Wages and benefits 44% 40% 40% Raw materials 6% 7% 7% Other operating costs 45% 47% 47% Depreciation and amortization 5% 6% 6% Total 100% 100% 100% Years Ended % Change (In thousands) December 28, 2014 December 29, 2013 December 30, 2012 14-13 13-12 (52 weeks) (52 weeks) (53 weeks) Production costs: Raw materials $ 88,958 $ 92,886 $ 106,381 (4.2) (12.7) Wages and benefits 357,573 332,085 331,321 7.7 0.2 Other 197,464 201,942 213,616 (2.2) (5.5) Total production costs 643,995 626,913 651,318 2.7 (3.7) Selling, general and administrative costs 761,055 706,354 711,112 7.7 (0.7) Depreciation and amortization 79,455 78,477 78,980 1.2 (0.6) Total operating costs $ 1,484,505 $ 1,411,744 $ 1,441,410 5.2 (2.1)