Investments in Associated Companies

12 Months Ended

Sep. 24, 2023

Equity Method Investments and Joint Ventures [Abstract]

Investment in Associated Companies

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:

(Thousands of Dollars)	September 24 2023	September 25 2022
ASSETS
Current assets	1,901	2,801
Investments and other assets	1,240	1,584
Total assets	3,141	4,385
LIABILITIES AND MEMBERS' EQUITY (DEFICIT)
Liabilities	3,837	5,005
Members' equity	(696)	(620)
Total liabilities and members' equity (deficit)	3,141	4,385

Summarized results of TNI are as follows:

(Thousands of Dollars)	2023	2022	2021
Operating revenue	31,076	34,153	34,782
Operating expenses	24,446	25,445	25,320
Operating income	6,630	8,708	9,462
Net income	7,142	8,708	9,462
Company's 50% share	3,571	4,354	4,731
Less amortization of intangible assets	—	—	—
Equity in earnings of TNI	3,571	4,354	4,731

TNI makes periodic distributions of its earnings. We received $3.6 million, $3.8 million, and $5.2 million in distributions in 2023, 2022 and 2021, respectively.

At September 24, 2023 and September 25, 2022, the carrying value of the Company's 50% investment in TNI is $15.1 million and $15.3 million, respectively. The difference between our carrying value and our 50% share of the members' equity of TNI relates principally to goodwill of $12.4 million and other identified intangible assets of $2.3 million, certain of which have been amortized over their estimated useful lives through 2020. See Note 4.

TNI provides editorial services to the Company. Editorial service costs are included in other operating expenses in the Consolidated Statements of Income and Comprehensive Income and totaled $4.4 million, $5.2 million, and $4.5 million in 2023, 2022 and 2021, respectively.

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:

(Thousands of Dollars)	September 24 2023	September 25 2022
ASSETS
Current assets	8,916	5,837
Investments and other assets	29,267	29,903
Total assets	38,183	35,740
LIABILITIES AND MEMBERS' EQUITY
Current liabilities	6,352	5,922
Other liabilities	6,303	5,696
Stockholders' equity	25,528	24,122
Total liabilities and members' equity	38,183	35,740

Summarized results of MNI are as follows:

(Thousands of Dollars)	2023	2022	2021
Operating revenue	44,109	47,621	46,015
Operating expenses, excluding restructuring costs, depreciation and amortization	30,654	37,922	35,583
Restructuring costs	143	169	107
Depreciation and amortization	539	672	711
Operating income	12,773	8,858	9,614
Net income	5,911	2,605	3,362
Equity in earnings of MNI	2,956	1,303	1,681

MNI makes periodic distributions of its earnings. We received $2.2 million, $1.3 million, and $2.3 million in distributions in 2023, 2022 and 2021, 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 $5.4 million, $5.6 million, and $5.6 million in 2023, 2022 and 2021, respectively.

At September 24, 2023 and September 25, 2022, the carrying value of the Company's 50% investment in MNI is $12.8 million and $12.0 million, respectively.