Note 4 - Investments in Associated Companies

12 Months Ended

Sep. 27, 2020

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

4     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 is allocated equally to Star Publishing and Citizen.

Summarized financial information of TNI is as follows:

	September 27			September 29
(Thousands of Dollars)	2020			2019
ASSETS
Current assets		2,643			3,484
Investments and other assets		998			1,350
Total assets		3,641			4,834
LIABILITIES AND MEMBERS' EQUITY
Total liabilities		4,663			5,924
Members' equity		(1,022	)		(1,090	)
Total liabilities and members' equity		3,641			4,834

Summarized results of TNI are as follows:

(Thousands of Dollars)	2020		2019		2018
Operating revenue		37,101		43,532		47,165
Operating expenses		29,673		34,224		37,090
Net income		7,428		9,308		10,075
Company's 50% share		3,714		4,654		5,038
Less amortization of intangible assets		209		418		418
Equity in earnings of TNI		3,505		4,236		4,620

TNI makes weekly distributions of its earnings. We received $3,176,000, $4,245,000  and $5,814,000  in distributions in 2020, 2019 and 2018, respectively.

At September 27, 2020, the carrying value of the Company's 50% investment in TNI is $15,069,000. 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 $3,090,000, certain of which are being amortized over their estimated useful lives through 2020. See Note 5.

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 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:

	September 27		September 29
(Thousands of Dollars)	2020		2019
ASSETS
Current assets		10,113		8,796
Investments and other assets		29,952		31,134
Total assets		40,065		39,930
LIABILITIES AND MEMBERS' EQUITY
Current liabilities		8,540		5,912
Other liabilities		5,862		6,064
Stockholders' equity		25,663		27,954
Total liabilities and stockholders' equity		40,065		39,930

Summarized results of MNI are as follows:

(Thousands of Dollars)	2020			2019		2018
Operating revenue		48,056			56,790		59,670
Operating expenses, excluding restructuring costs, depreciation and amortization		46,845			48,121		49,598
Restructuring costs		274			355		383
Depreciation and amortization		697			1,018		1,149
Operating income		240			7,296		8,540
Net income		(204	)		5,770		9,257
Equity in earnings of MNI		(102	)		2,885		4,629

MNI makes quarterly distributions of its earnings. We received $1,300,000, $3,350,000  and 3,400,000  in distributions in 2020, 2019 and 2018, respectively.

We provide editorial services to MNI. Editorial service fees are included in other revenue in the Consolidated Statements of Income and Comprehensive Income and totaled $6,152,000, $6,636,000 and $6,718,000, in 2020, 2019 and 2018, respectively.

At September 27, 2020, the carrying value of the Company's 50% investment in MNI is $12,600,000.