Note 3. Related Party

3 Months Ended

Mar. 31, 2013

Related Party Transactions Disclosure [Text Block]

3.         Berkshire Hathaway and its wholly owned subsidiary, World Media, are considered related parties.  As described in Notes 2 and 5, the Company consummated new financing arrangements, granted warrants that were exercised, sold most its newspaper assets and engaged in a series of transition services with Berkshire Hathaway.  At the time of the original agreements for the financing arrangements (including the warrant agreement) and the sale of the newspaper assets, the Company and Berkshire Hathaway were not then related parties.  The consummation of, along with the exercise of rights under, those agreements created the related-party status.

As of March 31, 2013, Berkshire Hathaway owned approximately 17% of the Class A shares of the Company and had recommended to the Company an individual to serve as a Director in accordance with the Shareholder Agreement.  Berkshire Hathaway was also the counterparty to the Company’s term loan and revolving line of credit.  Following the sale of the Company’s newspaper assets, the Company and World Media engaged in a series of transition services to effectuate the transfer in a smooth and orderly fashion.  During the three months ended March 31, 2013, the Company provided World Media services and support in the areas of information technology and digital for fees that were designed to approximate the Company’s cost.  Payments received from World Media for these transition services totaled approximately $1 million.  The Company was also reimbursed for approximately $1.1 million of medical claims paid on behalf of World Media.  World Media provided services and support to the Company in the areas of information technology support, billing and remittance processing for fees that were designed to approximate World Media’s cost.  Payments for these amounts totaled approximately $100 thousand.  In addition, the Company passed along approximately $300 thousand of other collections to World Media.

As of March 31, 2013, the Company had a receivable for transition services of $800 thousand included in the line item “Other” current assets on the consolidated condensed balance sheet.

During the three months ended March 31, 2013, the Company made interest payments of $8 million to Berkshire Hathaway.  As of March 31, 2013, the Company had accrued interest payable to Berkshire Hathaway of $300 thousand included in the line item “Accrued expenses and other liabilities” on the consolidated condensed balance sheet.