Investments

Investments in Joint Ventures

As of December 30, 2018, the value of our investments in joint ventures was zero. As of December 31, 2017, our investment in joint ventures totaled $1.7 million and consisted of a 40% equity ownership interest in Madison Paper Industries (“Madison”), a partnership that previously operated a supercalendered paper mill in Maine. In the fourth quarter of 2017, we sold our 49% equity interest in Donohue Malbaie Inc. (“Malbaie”), a Canadian newsprint company, for $20 million Canadian dollars ($15.6 million USD).

These investments are accounted for under the equity method, and are recorded in “Miscellaneous assets” in our Consolidated Balance Sheets. Our proportionate shares of the operating results of our investments are recorded in “Gain/(loss) from joint ventures” in our Consolidated Statements of Operations.

In 2018, we had a gain from joint ventures of $10.8 million. The gain was primarily due to a distribution received from the pending liquidation of Madison, offset, in part, by our share of operating expenses of the partnership.

In 2017, we had a gain from joint ventures of $18.6 million. The gain was primarily due to the sale of assets of the paper mill previously operated by Madison, partially offset by our proportionate share of the loss recognized by Madison resulting from Madison’s settlement of pension obligations, as well as the sale of our investment in Malbaie.

In 2016, we had a loss from joint ventures of $36.3 million. The loss was primarily due to the shutdown of the Madison paper mill, as described below, partially offset by increased income from our investment in Malbaie, which benefited from higher newsprint prices and the impact of a significantly weakened Canadian dollar.

Madison

The Company and UPM-Kymmene Corporation (“UPM”), a Finnish paper manufacturing company, are partners through subsidiary companies in Madison. The Company’s 40% ownership of Madison is through an 80%-owned consolidated subsidiary that owns 50% of Madison. UPM owns 60% of Madison, including a 10% interest through a 20% noncontrolling interest in the consolidated subsidiary of the Company. In 2016, the paper mill closed and the Company’s joint venture in Madison is currently being liquidated.

In connection with the 2016 closure of the paper mill we recognized $41.4 million in losses from joint ventures. In the fourth quarter of 2016, Madison sold certain assets at the mill site and we recognized a gain of $3.9 million related to the sale. In 2017 we recognized a gain of $20.8 million, primarily related to the sale of the remaining assets (which consisted of primarily hydro power assets), partially offset by the loss related to our proportionate share of Madison’s settlement of certain pension obligations. In 2018, we recorded a gain of $11.3 million due to a distribution received from the pending liquidation of Madison.

The following table presents summarized unaudited balance sheet information for Madison, which follows a calendar year:



(In thousands)	December 31, 2018		December 31, 2017
Current assets	$	18,374	$	35,764
Noncurrent assets	—		9,640
Total assets	18,374		45,404
Current liabilities	3,336		137
Noncurrent liabilities	—		4,070
Total liabilities	3,336		4,207
Total equity	$	15,038	$	41,197

The following table presents summarized unaudited income statement information for Madison, which follows a calendar year:



	For the Twelve Months Ended
(In thousands)	December 31, 2018			December 31, 2017			December 31, 2016
Revenues	$	—		$	—		$	40,523
Income/(Expenses):
Cost of sales⁽¹⁾	—			(13,396		)	(63,439		)
General and administrative income/(expense) and other⁽²⁾	(1,280		)	55,058			(62,759		)
Total income/(expense)	(1,280		)	41,662			(126,198		)
Operating income/(loss)	(1,280		)	41,662			(85,675		)
Other income/(expense)	122			18			2
Net income/(loss)	$	(1,158	)	$	41,680		$	(85,673	)

⁽¹⁾ Primarily represents Madison’s settlement of its pension obligations in 2017.

⁽²⁾ Primarily represents gains/(losses) from the sale of assets and closure of Madison in 2017 and 2016.

During 2018, we received a $12.5 million cash distribution in connection with the pending liquidation of Madison. We received no distributions from Madison in 2017 or 2016.

Malbaie

We had a 49% equity interest in Malbaie, which we sold during the fourth quarter of 2017 for $20 million Canadian dollars ($15.6 million USD). We recognized a loss of $6.4 million before tax as a result of the sale. The other 51% equity interest was owned by Resolute FP Canada Inc., a subsidiary of Resolute Forest Products Inc. (“Resolute”), a Delaware corporation. Resolute is a large global manufacturer of paper, market pulp and wood products.

Other than from the sale of our equity interest in 2017, we received no distributions from Malbaie in 2018, 2017 or 2016.

Other

We purchased newsprint from Malbaie, and previously purchased supercalendered paper from Madison, at competitive prices. These purchases totaled approximately $11 million in 2017 and $14 million in 2016.

Non-Marketable Equity Securities

Our non-marketable equity securities are investments in privately held companies/funds without readily determinable market values. Realized gains and losses on non-marketable securities sold or impaired are recognized in “Interest expense and other, net.”

As of December 30, 2018, and December 31, 2017, non-marketable equity securities included in “Miscellaneous assets’’ in our Consolidated Balance Sheets had a carrying value of $13.7 million and $13.6 million, respectively. We did not have any material fair value adjustments in 2018 and 2017.