Investments in Associated Companies

12 Months Ended

Sep. 30, 2012

Schedule of Equity Method Investments [Line Items]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

INVESTMENTS IN ASSOCIATED COMPANIES

TNI Partners

In Tucson, Arizona, TNI, acting as agent for our subsidiary, Star Publishing Company (“Star Publishing”), and Citizen Publishing Company (“Citizen”), a subsidiary of Gannett Co. Inc., is responsible for printing, delivery, advertising and circulation of the Arizona Daily Star as well as the related digital platforms and specialty publications. TNI collects all receipts and income and pays substantially all operating expenses incident to the partnership's operations and publication of the newspaper and other media.

Income or loss of TNI (before income taxes) is allocated equally to Star Publishing and Citizen.

Summarized financial information of TNI is as follows:

(Thousands of Dollars)	September 30 2012	September 25 2011
ASSETS
Current assets	8,029	7,857
Investments and other assets	13	32
Total assets	8,042	7,889
LIABILITIES AND MEMBERS' EQUITY
Current liabilities	5,601	6,136
Members' equity	2,441	1,753
Total liabilities and members' equity	8,042	7,889

Summarized results of TNI are as follows:

(Thousands of Dollars)	2012		2011	2010
Operating revenue	59,043		62,452	64,379
Operating expenses, excluding workforce adjustments, depreciation and amortization	49,568		52,882	52,923
Workforce adjustments	(31	)	1,190	784
Operating income	9,506		8,380	10,672
Company's 50% share	4,753		4,190	5,336
Less amortization of intangible assets	723		1,092	1,156
Equity in earnings of TNI	4,030		3,098	4,180

Star Publishing's 50% share of TNI depreciation and certain general and administrative expenses associated with its share of the operation and administration of TNI are reported as operating expenses (benefit) in our Consolidated Statements of Operations and Comprehensive Income (Loss). These amounts totaled $(522,000), $76,000, and $291,000, in 2012, 2011 and 2010, respectively. Fees for editorial services provided to TNI by Star Publishing totaled $5,994,000, $7,043,000, and $7,510,000 in 2012, 2011 and 2010, respectively.

Our impairment analysis resulted in pretax reductions in the carrying value of TNI totaling $11,900,000 in 2011. See Note 4.

At September 30, 2012, the carrying value of the Company's 50% investment in TNI is $19,450,000. The difference between our carrying value and our 50% share of the members' equity of TNI relates principally to goodwill of$12,366,000 and other identified intangible assets of $6,430,000, certain of which are being amortized over their estimated useful lives through 2020. See Note 4.

Annual amortization of intangible assets is estimated to be $620,000 in 2013 and $418,000 in 2014, 2015, 2016 and 2017.

Madison Newspapers, Inc.

We have a 50% ownership interest in MNI, which publishes daily and Sunday newspapers, and other publications in Madison, Wisconsin, and other Wisconsin locations, and operates their related digital sites. Net income or loss of MNI (after income taxes) is allocated equally to us and The Capital Times Company (“TCT”). MNI conducts its business under the trade name Capital Newspapers.

Summarized financial information of MNI is as follows:

(Thousands of Dollars)	September 30 2012	September 25 2011
ASSETS
Current assets	24,613	22,287
Investments and other assets	29,986	30,484
Property and equipment, net	7,707	8,519
Total assets	62,306	61,290
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities	10,015	8,428
Other liabilities	6,720	5,960
Stockholders' equity	45,571	46,902
Total liabilities and stockholders' equity	62,306	61,290

Summarized results of MNI are as follows:

(Thousands of Dollars)	2012	2011	2010
Operating revenue	70,158	73,011	75,137
Operating expenses, excluding workforce adjustments, depreciation and amortization	57,981	60,982	61,467
Workforce adjustments	546	530	296
Depreciation and amortization	1,689	2,227	2,372
Operating income	9,942	9,272	11,002
Net income	6,469	6,106	7,132
Equity in earnings of MNI	3,201	3,053	3,566

Fees for editorial services provided to MNI by us are included in other revenue in the Consolidated Statements of Operations and Comprehensive Income (Loss) and totaled $8,098,000, $8,201,000 and $8,318,000, in 2012, 2011 and 2010, respectively.