Note 4 - Investments in Associated Companies

12 Months Ended

Sep. 26, 2021

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 records 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 26			September 27
(Thousands of Dollars)	2021			2020
ASSETS
Current assets		2,238			2,643
Investments and other assets		1,693			998
Total assets		3,931			3,641
LIABILITIES AND MEMBERS' EQUITY
Current liabilities		5,027			4,663
Members' equity		(1,096	)		(1,022	)
Total liabilities and members' equity		3,931			3,641

Summarized results of TNI are as follows:

(Thousands of Dollars)	2021		2020		2019
Operating revenue		34,782		37,101		43,532
Operating expenses		25,320		29,673		34,224
Net income		9,462		7,428		9,308
Company's 50% share		4,731		3,714		4,654
Less amortization of intangible assets		—		209		418
Equity in earnings of TNI		4,731		3,505		4,236

TNI makes periodic distributions of its earnings. We received $5,150,000, $3,176,000, and $4,245,000 in distributions in 2021, 2020 and 2019, respectively.

At September 26, 2021, the carrying value of the Company's 50% investment in TNI is $14,702,000. 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 $2,336,000, 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 26		September 27
(Thousands of Dollars)	2021		2020
ASSETS
Current assets		6,930		10,113
Investments and other assets		30,422		29,952
Total assets		37,352		40,065
LIABILITIES AND MEMBERS' EQUITY
Current liabilities		6,921		8,540
Other liabilities		6,470		5,862
Stockholders' equity		23,961		25,663
Total liabilities and stockholders' equity		37,352		40,065

Summarized results of MNI are as follows:

(Thousands of Dollars)	2021		2020			2019
Operating revenue		46,015		48,056			56,790
Operating expenses, excluding restructuring costs, depreciation and amortization		35,583		46,845			48,121
Restructuring costs		107		274			355
Depreciation and amortization		711		697			1,018
Operating income		9,614		240			7,296
Net income (loss)		3,362		(204	)		5,770
Equity in earnings of MNI		1,681		(102	)		2,885

MNI makes periodic distributions of its earnings. We received $2,300,000, $1,300,000, and $3,350,000 in distributions in 2021, 2020 and 2019, 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 $5,562,000, $6,152,000, and $6,636,000 in 2021, 2020 and 2019, respectively.

At September 26, 2021, the carrying value of the Company's 50% investment in MNI is $11,980,000.