Significant Accounting Policies And Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2011

Significant Accounting Policies And Recent Accounting Pronouncements

Significant Accounting Policies And Recent Accounting Pronouncements

2. Significant Accounting Policies and Recent Accounting Pronouncements

The significant accounting policies used in preparation of the unaudited condensed consolidated financial statements are disclosed in the Company's 2010 Form 10-K. With the exception of those discussed below, there have been no recent accounting pronouncements or changes in accounting pronouncements during the three and six months ended June 30, 2011, as compared to the recent accounting pronouncements described in the Company's 2010 Form 10-K, that are of significance, or potential significance, to the Company.

The Company determined its six radio stations in Great Falls, Montana met the criteria for classification as a discontinued operation as a result of the Company's June 2011 definitive agreement to sell the stations to STARadio. In accordance with authoritative guidance, the Company has reported the results of operations of these small-market stations as discontinued operations in the accompanying unaudited condensed consolidated financial statements. For all previously reported periods, certain amounts in the unaudited condensed consolidated financial statements have been reclassified. The assets and liabilities of the radio stations have been classified as held for sale and the net results of the operations have been reclassified from continuing operations to discontinued operations. See Note 5 to the unaudited condensed consolidated financial statements for more information.

As part of its ongoing review of property, plant and equipment asset lives, the Company determined that the asset lives of certain of its machinery and equipment categories should be increased. The increase in the lives ranged from one to ten years depending on the category. A change in depreciation method is considered a change in accounting estimate. The Company adjusted the remaining lives of existing assets effective January 1, 2011 and as a result the Company expects that future depreciation will be lower than in the prior periods. The impact of this change in estimate for the three months ended June 30, 2011 increased pre-tax income from continuing operations by approximately $815,000, increased net income by approximately $515,000 and increased diluted net income from continuing operations per share by $0.06. The impact of this change in estimate for the six months ended June 30, 2011 increased pre-tax income from continuing operations by approximately $1.6 million, increased net income by approximately $1.0 million and increased diluted net income from continuing operations per share by $0.11.

The unaudited condensed consolidated statement of cash flows presented in the Company's earnings press release for the quarter ended June 30, 2011, filed as Exhibit 99.1 on the Company's July 28, 2011 Current Report on Form 8-K has been revised to include the premium paid on the extinguishment of debt of $740,000 in cash flows from operating activities. This revision did not impact the unaudited condensed consolidated statement of operations or the unaudited condensed consolidated balance sheet.