INVESTMENTS IN UNCONSOLIDATED COMPANIES

12 Months Ended

Dec. 29, 2013

INVESTMENTS IN UNCONSOLIDATED COMPANIES

INVESTMENTS IN UNCONSOLIDATED COMPANIES

2.    INVESTMENTS IN UNCONSOLIDATED COMPANIES

Our ownership interest and investment in unconsolidated companies consisted of the following:

(in thousands) Company	% Ownership Interest		December 29, 2013		December 30, 2012
CareerBuilder, LLC		15.0	$	214,579	$	210,365
Classified Ventures, LLC		25.6		73,692		69,907
HomeFinder, LLC		33.3		1,064		2,573
Wanderful Media		12.2		1,384		2,551
Seattle Times Company (C-Corporation)		49.5		—		—
Ponderay (general partnership)		27.0		8,443		11,375
Other		Various		1,407		2,832
			$	300,569	$	299,603

On February 28, 2014, Classified Ventures, LLC entered into a definitive agreement to sell its apartments.com business for approximately $585 million. The transaction is expected to close in the second quarter of fiscal year 2014 and accordingly we will record our share of the gain on the sale, which is expected to be between $140 million to $145 million, before taxes, during the same period. We also expect to receive a distribution of approximately $147 million from Classified Ventures, LLC, which is equal to our share of the net proceeds from the sale shortly after the transaction closes.

During fiscal year 2013, we wrote-down $3.0 million of certain unconsolidated investments.

We received dividends and other equity distributions from our investments in unconsolidated companies as follows:

	Years Ended
(in thousands)	December 29, 2013		December 30, 2012
CareerBuilder, LLC	$	13,500	$	15,000
Classified Ventures, LLC		22,996		18,908
Other		5,940		4,692
	$	42,436	$	38,600

The distributions from our equity investments for $42.4 million included $2.9 million, which exceeded the cumulative earnings from an investee and was considered a return of investment and therefore treated as an investing activity, and the remaining $39.5 million, which represented a return on investment, was shown as an operating activity.

We purchased some of our newsprint supply from Ponderay Newsprint Company ("Ponderay") during fiscal years 2013, 2012 and 2011.

Our investment in The Seattle Times Company ("STC") is zero as a result of accumulative losses in previous years exceeding our carrying value. No future income or losses from STC will be recorded until our carrying value on our balance sheet is restored through future earnings by STC.

We also incurred expenses related to the purchase of products and services provided by these companies, for the uploading and hosting of online advertising on behalf of our newspapers' advertisers. The following table summarizes expenses incurred for products provided by unconsolidated companies, which are recorded in operating expenses as follows:

	Years Ended
(in thousands)	December 29, 2013		December 30, 2012		December 25, 2011
CareerBuilder, LLC	$	1,166	$	1,197	$	1,230
Classified Ventures, LLC		16,915		14,390		12,552
Ponderay (general partnership)		17,575		23,813		20,414

As of both December 29, 2013, and December 30, 2012, we had approximately $1.5 million payable collectively to CareerBuilder, LLC and Ponderay.

The tables below present the summarized financial information, as provided to us by these investees, for our investments in unconsolidated companies on a combined basis:

(in thousands)	December 29, 2013		December 30, 2012
Current assets	$	479,684	$	412,959
Noncurrent assets		608,267		584,773
Current liabilities		320,440		304,317
Noncurrent liabilities		277,518		246,543
Equity		489,993		446,872

	Years Ended
(in thousands)	December 29, 2013		December 30, 2012		December 25, 2011
Net revenues	$	1,512,534	$	1,427,657	$	1,332,394
Gross profit		1,262,104		1,179,819		1,086,667
Operating income		231,952		169,236		154,257
Net income		247,441		141,387		171,305