Investments in Associated Companies

12 Months Ended

Sep. 25, 2022

Equity Method Investments and Joint Ventures [Abstract]

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 records 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 2022	September 26 2021

ASSETS
Current assets	2,801	2,238
Investments and other assets	1,584	1,693
Total assets	4,385	3,931

LIABILITIES AND MEMBERS' EQUITY
Current liabilities	5,005	5,027
Members' equity	(620)	(1,096)
Total liabilities and members' equity	4,385	3,931

Summarized results of TNI are as follows:


(Thousands of Dollars)	2022	2021	2020

Operating revenue	34,153	34,782	37,101
Operating expenses	25,445	25,320	29,673
Net income	8,708	9,462	7,428

Company's 50% share	4,354	4,731	3,714
Less amortization of intangible assets	—	—	209
Equity in earnings of TNI	4,354	4,731	3,505

TNI makes periodic distributions of its earnings. We received $3,831,000, $5,150,000, and $3,176,000 in distributions in 2022, 2021 and 2020, respectively.

At September 25, 2022 and September 26, 2021, the carrying value of the Company's 50% investment in TNI is $15,345,000 and $14,702,000, respectively. 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 $2,336,000, certain of which have been amortized over their estimated useful lives through 2020. See Note 6.

TNI provides editorial services to the Company. Editorial service costs are included in other operating expenses in the Consolidated Statements of Income and Comprehensive Income and totaled $5,164,000, $4,520,000, and $4,904,000 in 2022, 2021 and 2020, 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 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 2022	September 26 2021

ASSETS
Current assets	5,837	6,930
Investments and other assets	29,903	30,422
Total assets	35,740	37,352

LIABILITIES AND MEMBERS' EQUITY
Current liabilities	5,922	6,921
Other liabilities	5,696	6,470
Stockholders' equity	24,122	23,961
Total liabilities and stockholders' equity	35,740	37,352

Summarized results of MNI are as follows:


(Thousands of Dollars)	2022	2021	2020

Operating revenue	47,621	46,015	48,056
Operating expenses, excluding restructuring costs, depreciation and amortization	37,922	35,583	46,845
Restructuring costs	169	107	274
Depreciation and amortization	672	711	697
Operating income	8,857	9,614	240
Net income (loss)	2,605	3,362	(204)
Equity in earnings of MNI	1,303	1,681	(102)

MNI makes periodic distributions of its earnings. We received $1,250,000, $2,300,000, and $1,300,000 in distributions in 2022, 2021 and 2020, 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 $5,607,000, $5,562,000, and $6,152,000 in 2022, 2021 and 2020, respectively.

At September 25, 2022 and September 26, 2021, the carrying value of the Company's 50% investment in MNI is $12,033,000 and $11,980,000, respectively.