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:



(Thousands of Dollars)	September 25 2016		September 27 2015

ASSETS

Current assets	5,107		5,761
Investments and other assets	12		33
Total assets	5,119		5,794

LIABILITIES AND MEMBERS' EQUITY

Current liabilities	6,484		4,787
Members' equity	(1,365	)	1,007
Total liabilities and members' equity	5,119		5,794

Summarized results of TNI are as follows:



(Thousands of Dollars)	2016	2015	2014

Operating revenue	52,761	55,926	57,892
Operating expenses	41,804	45,413	47,229
Operating income	10,957	10,513	10,663

Company's 50% share	5,478	5,256	5,331
Less amortization of intangible assets	418	418	418
Equity in earnings of TNI	5,060	4,838	4,913

TNI makes weekly distributions of its earnings. We received $6,636,000, $5,475,000 and $5,246,000 in distributions in 2016, 2015 and 2014, respectively.

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 Income and Comprehensive Income (Loss). These amounts totaled $149,000, $(254,000),and $(60,000), in 2016, 2015 and 2014, respectively. Fees for editorial services provided to TNI by Star Publishing totaled $5,599,000, $5,492,000, and $5,908,000 in 2016, 2015 and 2014, respectively.

At September 25, 2016, the carrying value of the Company's 50% investment in TNI is $15,933,000. 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 $4,554,000, certain of which are being amortized over their estimated useful lives through 2020. See Note 3.

Annual amortization of intangible assets is estimated to be $418,000 in 2017, 2018, 2019, and $280,000 in 2020.

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 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 25 2016	September 27 2015

ASSETS

Current assets	12,320	18,255
Investments and other assets	33,364	34,209
Total assets	45,684	52,464

LIABILITIES AND MEMBERS' EQUITY

Current liabilities	8,391	8,100
Other liabilities	9,500	9,235
Stockholders' equity	27,793	35,129
Total liabilities and stockholders' equity	45,684	52,464

Summarized results of MNI are as follows:



(Thousands of Dollars)	2016	2015	2014

Operating revenue	65,172	67,264	67,478
Operating expenses, excluding workforce adjustments, depreciation and amortization	52,646	54,795	55,393
Workforce adjustments	39	459	244
Depreciation and amortization	1,684	1,630	1,626
Operating income	10,803	10,380	10,215
Net income	6,947	6,832	6,768
Equity in earnings of MNI	3,473	3,416	3,384

MNI makes quarterly distributions of its earnings. We received $7,250,000, $5,500,000 and $4,750,000 in distributions in 2016, 2015 and 2014, respectively.

Fees for editorial services provided to MNI by us are included in other revenue in the Consolidated Statements of Operations and Comprehensive Income and totaled $7,099,000, $7,242,000 and $7,050,000, in 2016, 2015 and 2014, respectively.

At September 25, 2016, the carrying value of the Company's 50% investment in MNI is $13,896,000.