Joint Sales Agreement

9 Months Ended

Sep. 30, 2011

Joint Sales Agreement [Abstract]

Joint Sales Agreement

7. Joint Sales Agreement

In December 2010, the Company entered into a ten year Joint Sales Agreement ("JSA") with NPG of Idaho, Inc., a subsidiary of News Press & Gazette Company ("NPG"), which owns and operates KIFI-TV an Idaho Falls, Idaho television station. The JSA was effective January 1, 2011. Under the JSA, NPG provides certain services supporting the operation of the Company's television station in Idaho Falls, KIDK-TV, and sells substantially all of the station's commercial advertising. The Company pays NPG a fixed fee pursuant to the JSA, and a performance bonus based on station performance. Contemporaneously with the JSA, the Company has entered into an option agreement with NPG, whereby NPG has a conditional option to acquire KIDK-TV from the Company until January 1, 2021, effective on the expiration or termination of the indenture governing our 8.625% Senior Notes due in 2014 ("Senior Notes"). KIDK-TV is consolidated into the Company's unaudited condensed consolidated statements because the Company has determined that it is deemed to have a controlling financial interest in KIDK-TV for financial reporting purposes as the Company does maintain ultimate control over the policies and/or operations of the station that could most significantly impact the station. Advertising revenues earned under this JSA are recorded as revenue and JSA fees and programming expenses are recorded as operating costs.