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 subscription activities 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 results of TNI are as follows:



	13 Weeks Ended		26 Weeks Ended
(Thousands of Dollars)	March 25 2018	March 26 2017	March 25 2018	March 26 2017

Operating revenue	11,851	12,507	25,081	25,821
Operating expenses	9,354	9,770	19,338	19,770
Operating income	2,497	2,737	5,743	6,051
Company's 50% share of operating income	1,248	1,368	2,872	3,026
Less amortization of intangible assets	104	104	209	209
Equity in earnings of TNI	1,144	1,264	2,663	2,817

TNI makes weekly distributions of its earnings and for the 13 weeks ended March 25, 2018 and March 26, 2017 we received $1,631,000 and $1,437,000 in distributions, respectively. In the 26 weeks ended March 25, 2018 and March 26, 2017 we received $3,198,000 and $2,420,000 in distributions, respectively.

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 in our Consolidated Statements of Income and Comprehensive Income. These amounts totaled $127,000 and $159,000 in the 13 weeks ended March 25, 2018 and March 26, 2017, respectively, and $261,000 and $301,000 in the 26 weeks ended March 25, 2018 and March 26, 2017, respectively.

Annual amortization of intangible assets is estimated to be $418,000 for the 52 weeks ending March 2019 and 2020, respectively, and zero thereafter.

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 platforms. 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 results of MNI are as follows:



	13 Weeks Ended		26 Weeks Ended
(Thousands of Dollars)	March 25 2018	March 26 2017	March 25 2018	March 26 2017

Operating revenue	13,838	14,382	29,903	31,424
Operating expenses, excluding workforce adjustments, depreciation and amortization	12,016	12,548	24,948	25,928
Workforce adjustments	146	129	210	155
Depreciation and amortization	280	348	558	696
Operating income	1,396	1,357	4,187	4,645
Net income	928	929	2,656	3,200
Equity in earnings of MNI	464	465	1,328	1,600

MNI makes quarterly distributions of its earnings and in the 13 weeks ended March 25, 2018 and March 26, 2017 we received dividends of $1,250,000 and $1,000,000, respectively. In the 26 weeks ended March 25, 2018 and March 26, 2017 we received dividends of $2,000,000 and $2,250,000, respectively.