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Note 3 - Investments in Associated Companies

6 Months Ended

Mar. 28, 2021

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

3	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								26 Weeks Ended
		March 28,				March 29,				March 28,				March 29,
(Thousands of Dollars)		2021				2020				2021				2020

Operating revenue			8,759				10,185				18,159				20,381
Operating expenses			6,424				7,766				13,429				15,931
Operating income			2,335				2,419				4,730				4,450
Company's 50% share of operating income			1,168				1,210				2,365				2,225
Less amortization of intangible assets			—				105				—				210
Equity in earnings of TNI			1,168				1,105				2,365				2,015

TNI makes weekly distributions of its earnings and for the 13 weeks ended March 28, 2021 and March 29, 2020 we received $1,561,000 and $953,000 in distributions, respectively. In the 26 weeks ended March 28, 2021 and March 29, 2020, we received $2,617,000 and $1,691,000 in distributions, respectively.

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								26 Weeks Ended
		March 28,				March 29,				March 28,				March 29,
(Thousands of Dollars)		2021				2020				2021				2020

Operating revenue			11,024				12,325				22,946				26,250
Operating expenses, excluding restructuring costs, depreciation and amortization			10,237				11,561				20,667				23,681
Restructuring costs			—				—				106				—
Depreciation and amortization			182				197				292				341
Operating income			605				567				1,881				2,228
Net income			605				514				1,694				1,830
Equity in earnings of MNI			303				257				847				915

MNI makes quarterly distributions of its earnings and in the 13 weeks ended March 28, 2021 and March 29, 2020, we received dividends of $1,150,000 and $1,000,000, respectively. In the 26 weeks ended March 28, 2021 and March 29, 2020, we received dividends of $1,150,000 and $1,000,000 respectively.