Investments in Associated Companies

9 Months Ended

Jun. 26, 2011

Investments In Associated Companies [Abstract]

Equity Method Investments Disclosure [Text Block]

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 circulation 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 newspapers 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		39 Weeks Ended
(Thousands of Dollars)	June 26 2011	June 27 2010	June 26 2011	June 27 2010

Operating revenue	15,035	15,792	48,051	49,880
Operating expenses, excluding workforce adjustments, depreciation and amortization	13,307	13,278	40,467	42,051
Workforce adjustments	—	—	232	783
Operating income	1,728	2,514	7,352	7,046

Company's 50% share of operating income	864	1,257	3,676	3,523
Less amortization of intangible assets	303	304	911	852
Equity in earnings of TNI	561	953	2,765	2,671

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 (benefit) in our Consolidated Statements of Operations and Comprehensive Income (Loss). These amounts totaled $(34,000) and $219,000 in the 13 weeks ended June 26, 2011 and June 27, 2010, respectively, and $177,000 and $87,000 in the 39 weeks ended June 26, 2011 and June 27, 2010, respectively.

Subject to the final determination of impairment charges, annual amortization of intangible assets is estimated to be $1,215,000 in the 52 week period ending June 2012, $1,189,000 in the 53 week period ending June 2013, and $911,000 in each of the 52 week periods ending June 2014, June 2015 and June 2016. See Note 3.

Our preliminary impairment analysis as of June 26, 2011 resulted in a pretax reduction in the carrying value of TNI of $12,000,000. See Note 3.

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		39 Weeks Ended
(Thousands of Dollars)	June 26 2011	June 27 2010	June 26 2011	June 27 2010

Operating revenue	18,183	18,977	55,727	57,147
Operating expenses, excluding workforce adjustments, depreciation and amortization	15,007	15,203	46,135	46,556
Workforce adjustments	541	12	674	63
Depreciation and amortization	514	598	1,542	1,750
Operating income	2,121	3,164	7,376	8,778

Net income	1,328	1,962	4,626	5,460

Equity in earnings of MNI	664	981	2,313	2,730

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

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