Related-Party Transactions

12 Months Ended

Dec. 31, 2011

Related-Party Transactions

12. RELATED-PARTY TRANSACTIONS

Univision provides network compensation to the Company and acts as the Company's exclusive sales representative for the sale of all national advertising aired on Univision-affiliate television stations.

At December 31, 2011 Univision owns approximately 10% of the Company's common stock on a fully-converted basis. In May 2009, the Company repurchased 0.9 million shares of Class A common stock held by Univision for $0.5 million.

The Class U common stock has limited voting rights and does not include the right to elect directors. However, as the holder of all of the Company's issued and outstanding Class U common stock, Univision currently has the right to approve any merger, consolidation or other business combination involving the Company, any dissolution of the Company and any assignment of the Federal Communications Commission, or FCC, licenses for any of the Company's Univision-affiliated television stations. Each share of Class U common stock is automatically convertible into one share of the Company's Class A common stock (subject to adjustment for stock splits, dividends or combinations) in connection with any transfer to a third party that is not an affiliate of Univision.

In August 2008, the Company entered into a proxy agreement with Univision pursuant to which the Company granted to Univision the right to negotiate the terms of retransmission consent agreements for its Univision- and TeleFutura-affiliated television station signals for a term of six years. Among other things, the proxy agreement provides terms relating to compensation to be paid to the Company by Univision with respect to retransmission consent agreements entered into with Multichannel Video Programming Distributors ("MVPDs"). The agreement also provides terms relating to compensation to be paid to the Company with respect to agreements that are entered into for the carriage of its Univision- and TeleFutura-affiliated television station signals.

The following tables reflect the related-party balances with Univision and other related parties (in thousands):

	Univision				Other				Total
	2011		2010		2011		2010		2011		2010
Trade receivables	$	5,608	$	5,315	$	—	$	—	$	5,608	$	5,315
Other current assets		—		—		274		274		274		274
Intangible assets subject to amortization, net		23,513		25,880		—		—		23,513		25,880
Current maturities of long-term debt		—		—		—		1,000		—		1,000
Advances payable		—		—		118		118		118		118
Accounts payable	$	5,691	$	3,898	$	—	$	785	$	5,691	$	4,683

	Univision						Other						Total
	2011		2010		2009		2011		2010		2009		2011		2010		2009
Direct operating expenses (1)	$	8,373	$	8,803	$	6,584	$	—	$	2,054	$	1,521	$	8,373	$	10,857	$	8,105
Amortization		3,617		3,211		2,320		—		—		—		3,617		3,211		2,320
Interest expense	$	—	$	—	$	—	$	30	$	83	$	118	$	30	$	83	$	118

(1) Consists primarily of national representation fees paid to Univision and Lotus/Entravision Reps LLC prior to its acquisition by the Company.  

In addition, the Company also had accounts receivable from third parties in connection with a joint sales agreement between the Company and Univision. As of December 31, 2011, 2010 and 2009 these balances totaled $2.2 million, $2.4 million and $2.6 million, respectively.

In May 2007, the Company entered into an affiliation agreement with LATV Networks, LLC ("LATV"). Pursuant to the affiliation agreement, the Company will broadcast programming provided to the Company by LATV on one of the digital multicast channels of certain of the Company's television stations. Under the affiliation agreement, there are no fees paid for the carriage of programming, and the Company generally retains the right to sell approximately five minutes per hour of available advertising time. Walter F. Ulloa, the Company's Chairman and Chief Executive Officer, is a director, officer and principal stockholder of LATV.

Entravision Holdings, LLC [Member]

Related-Party Transactions

7. RELATED-PARTY TRANSACTIONS

The Company holds the broadcasting licenses issued by the FCC for the operation of television and radio stations by ECC. ECC is the sole member of the Company and owns 100% of the Company's issued and outstanding membership interests. As of December 31, 2011 and 2010, all of the membership interests of the Company were pledged as collateral to secure the Notes of ECC.

In May 2011, ECC acquired a radio FCC license in Palm Springs, CA for $0.7 million in an auction held by the FCC. ECC contributed the license to the Company.

In April 2009, ECC acquired the assets of television station KREN-TV, serving the Reno, Nevada market, for approximately $4.3 million. ECC contributed the related FCC licenses acquired in the transaction to the Company. The transferred licenses were valued at $0.1 million.