INVESTMENTS IN UNCONSOLIDATED COMPANIES

9 Months Ended

Sep. 28, 2014

INVESTMENTS IN UNCONSOLIDATED COMPANIES

INVESTMENTS IN UNCONSOLIDATED COMPANIES

3.  INVESTMENTS IN UNCONSOLIDATED COMPANIES

The carrying value of investments in unconsolidated companies consisted of the following:

(in thousands)	% Ownership	September 28,		December 29,
Company	Interest	2014		2013
CareerBuilder, LLC	15.0	$	229,546	$	214,579
Classified Ventures, LLC	25.6	82,314		73,692
Seattle Times Company (C-Corporation)	49.5	—		—
Ponderay (general partnership)	27.0	8,059		8,443
Other	Various	2,210		3,855
		$	322,129	$	300,569

On April 1, 2014, Classified Ventures, LLC consummated the sale of its Apartments.com business for $585 million. Accordingly, during the nine months ended September 28, 2014, we recorded our share of the net gain of $144.2 million, before taxes, as gains related to equity investments in condensed consolidated statements of operations. On April 1, 2014, we received a cash distribution of approximately $146.9 million from Classified Ventures, LLC, which is equal to our share of the net proceeds from the sale.

On October 1, 2014, we, along with the remaining partners in Classified Ventures, LLC, sold all of the ownership interests in Classified Ventures, LLC to Gannett Co., Inc. for a price that values Classified Ventures, LLC at $2.5 billion. Our portion of the cash proceeds, net of transactions costs, was $631.8 million. See Note 8, Subsequent Event for further discussion.

On May 7, 2014, we transferred our partnership interest in MCT to TCA News Service, LLC (“TCA”) for cash and future newswire content. Concurrently, we entered into a contributor agreement with MCT pursuant to which we both continue to be a contributor of newswire content to MCT for an agreed upon rate and we will receive newswire content from MCT or its successor at no cost for approximately 10 years. We recognized a $3.1 million intangible asset in the condensed consolidated balance sheets with respect to the value of the content we will receive from MCT at no cost under these agreements, and a $1.7 million gain on sale of the equity investment in gains related to equity investments in the condensed consolidated statements of operations.

During the quarter ended September 28, 2014, we wrote-down $0.8 million of certain unconsolidated investments.

During the quarter ended September 28, 2014, our proportionate share of net income from continuing operations of certain investments listed in the table above was greater than 20% of our condensed consolidated net income (loss) before taxes.  Summarized condensed financial information, as provided to us by these certain investees, is as follows:

	Nine Months Ended
	September 28,		September 29,
(in thousands)	2014		2013
Net revenues	$	965,957	$	914,559
Gross profit	793,176		733,492
Operating income	142,431		155,769
Net income	140,685		153,948