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 24 2017		September 25 2016

ASSETS

Current assets	4,457		5,107
Investments and other assets	12		12
Total assets	4,469		5,119

LIABILITIES AND MEMBERS' EQUITY

Current liabilities	5,485		6,484
Members' equity	(1,016	)	(1,365	)
Total liabilities and members' equity	4,469		5,119

Summarized results of TNI are as follows:



(Thousands of Dollars)	2017	2016	2015

Operating revenue	48,297	52,761	55,926
Operating expenses	38,150	41,804	45,413
Net income	10,147	10,957	10,513

Company's 50% share	5,073	5,478	5,256
Less amortization of intangible assets	418	418	418
Equity in earnings of TNI	4,655	5,060	4,838

TNI makes weekly distributions of its earnings. We received $4,644,000, $6,636,000 and $5,475,000 in distributions in 2017, 2016 and 2015, respectively.

At September 24, 2017, the carrying value of the Company's 50% investment in TNI is $15,943,000. 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 $4,136,000, certain of which are being amortized over their estimated useful lives through 2020. 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 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, 2017	September 25 2016

ASSETS

Current assets	11,297	12,320
Investments and other assets	32,530	33,364
Total assets	43,827	45,684

LIABILITIES AND MEMBERS' EQUITY

Current liabilities	7,852	8,391
Other liabilities	9,500	9,500
Stockholders' equity	26,475	27,793
Total liabilities and stockholders' equity	43,827	45,684

Summarized results of MNI are as follows:



(Thousands of Dollars)	2017	2016	2015

Operating revenue	61,396	65,172	67,264
Operating expenses, excluding workforce adjustments, depreciation and amortization	51,392	52,646	54,795
Workforce adjustments	296	39	459
Depreciation and amortization	1,295	1,684	1,630
Operating income	8,413	10,803	10,380
Net income	5,908	6,947	6,832
Equity in earnings of MNI	2,954	3,473	3,416

MNI makes quarterly distributions of its earnings. We received $3,500,000, $7,250,000 and $7,050,000 in distributions in 2017, 2016 and 2015, 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 $7,021,000, $7,099,000 and $7,242,000, in 2017, 2016 and 2015, respectively.

At September 24, 2017, the carrying value of the Company's 50% investment in MNI is $13,238,000.