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 (before income taxes) is allocated equally to Star Publishing and Citizen.

Summarized results of TNI are as follows:



	13 Weeks Ended
(Thousands of Dollars)	December 24 2017	December 25 2016

Operating revenue	13,230	13,314
Operating expenses	9,982	9,999
Operating income	3,248	3,315
Company's 50% share of operating income	1,624	1,658
Less amortization of intangible assets	105	105
Equity in earnings of TNI	1,519	1,553

TNI makes weekly distributions of its earnings and for the 13 weeks ended December 24, 2017 and December 25, 2016 we received $1,567,000 and $983,000 in distributions, 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 (income) in our Consolidated Statements of Income and Comprehensive Income. These amounts totaled $134,000 and $142,000 in the 13 weeks ended December 24, 2017 and December 25, 2016, respectively.

Annual amortization of intangible assets is estimated to be $418,000 for the 53 and 52 weeks ending December 2018 and 2019, respectively, $105,000 in 2020 and zero thereafter.

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
(Thousands of Dollars)	December 24 2017	December 25 2016

Operating revenue	16,065	17,042
Operating expenses, excluding workforce adjustments, depreciation and amortization	12,932	13,379
Workforce adjustments	64	26
Depreciation and amortization	279	349
Operating income	2,790	3,288
Net income	1,728	2,272
Equity in earnings of MNI	864	1,136

MNI makes quarterly distributions of its earnings and in the 13 weeks ended December 24, 2017 and December 25, 2016 we received dividends of $750,000 and $1,250,000, respectively.