We own an approximate 20% interest in Station Venture Holdings, LLC ("SVH"), a joint venture with NBCUniversal Media, LLC ("NBCUniversal"), and account for our interest using the equity method as we do not have a controlling interest. SVH holds a 99.75% interest in Station Venture Operations, LP ("SVO"), which is the operating company that manages KXAS-TV and KNSD-TV, the television stations that comprise the joint venture. The following table presents summarized financial information of SVH and SVO (in thousands):

	Year Ended December 31,

	2011			2010			2009
Cash distributions to SVH from SVO	$	53,846		$	46,095		$	51,071
Income to SVH from SVO	$	47,624		$	57,253		$	31,100
Interest expense		(67,998	)		(67,248	)		(66,146	)
Net loss of SVH		(20,379	)		(9,995	)		(35,034	)
Net revenue of SVO	$	118,833		$	133,222		$	105,584
Operating expenses of SVO		(71,350	)		(75,960	)		(75,396	)
Net income before taxes of SVO		47,791			57,546			31,266
Net income after taxes of SVO		47,743			57,396			31,178
Shortfall loans outstanding and accrued interest payable to LIN Television from SVH	$	7,169		$	4,308		$	—
Shortfall loans outstanding and accrued interest payable to NBCUniversal and General Electric from SVH		28,009			16,829			—
	December 31,
SVH:	2011			2010
Cash and cash equivalents	$	63		$	183
Non-current assets		200,223			206,445
Current liabilities		544			544
Non-current liabilities⁽¹⁾		850,650			836,613

In 2008, we recorded an impairment charge that reduced the carrying value of our investment in SVH to $0. Subsequent to the reduction of the SVH carrying value to $0, and as a result of our guarantee of the debt financing provided by General Electric Capital Corporation ("GECC") of SVH as further described in Note 15—"Commitments and Contingencies", we continue to track our share of the income or loss of SVH, but currently are not recording such loss in our financial statements until, or unless, our proportionate share of SVH losses exceeds previously recognized impairment charges. When SVH generates income, we will begin recording our proportionate share of such income once it exceeds the operating losses not previously recognized in our financial statements.

We recognize shortfall funding liabilities when it is probable and estimable that there will be a shortfall at the SVH level requiring funding from us, and only when we have reached or intend to reach a shortfall funding agreement covering the period for which we estimate debt service shortfalls to occur, as further described in Note 15—"Commitments and Contingencies".

During the year ended December 31, 2009, we recognized a contingent liability of $6.0 million based on our estimate of amounts that we expected to loan to SVH pursuant to the original shortfall funding agreement and the 2010 shortfall funding agreement with NBCUniversal, as further described in Note 15—"Commitments and Contingencies".

During the year ended December 31, 2010, pursuant to the shortfall funding agreements with NBCUniversal, we made shortfall loans in the aggregate principal amount of $4.1 million, representing our approximate 20% share of 2010 debt service shortfalls. Concurrent with our funding of the shortfall loans, NBCUniversal funded shortfall loans in the aggregate principal amounts of $15.9 million, in respect of its approximate 80% share of 2010 debt service shortfalls. As a result, as of December 31, 2010, we had a remaining shortfall liability of $1.9 million recognized for all probable and estimable shortfall loans to the joint venture.

During the year ended December 31, 2011, pursuant to the shortfall funding agreement with General Electric Company ("GE") as further described in Note 15—"Commitments and Contingencies", we funded shortfall loans in the aggregate principal amount of $2.5 million, representing our approximate 20% share of 2011 debt service shortfalls, and GE funded shortfall loans in the aggregate principal amount of $9.7 million, representing its approximate 80% share in 2011 debt service shortfalls.

Prior to the issuance of these financial statements, joint venture management provided us with a final 2012 budget. Also, during the year ended December 31, 2011, NBCUniversal publicly discussed its intent to secure additional retransmission consent fees for the NBC owned television stations, which would include the joint venture stations that comprise SVO.

Based on that information, we believe the joint venture's operating results in 2012 will improve as a result of, among other things, the upcoming 2012 election cycle, and NBC's broadcast of the 2012 Summer Olympics and Superbowl XLVI. The joint venture's 2012 budget calls for capital investments at the joint venture stations that will largely offset the expected 2012 increases in operating cash flows. As a result, we expect the joint venture to require additional shortfall loans in 2012 and into 2013. While there can be no assurances, we believe, that beginning in 2013, operating results will improve as a result of further economic recovery, forecasted growth in retransmission consent fees, and further growth in digital revenues.

On March 5, 2012, we entered into a shortfall funding agreement with GE covering the period from April 2, 2012 through April 1, 2013 as further described in Note 15—"Commitments and Contingencies".

As of December 31, 2011, we estimate our approximate 20% share of debt service shortfalls to be $4.1 million for 2012 and into 2013. We believe that cash shortfalls beyond the amounts currently accrued are not probable. However, our prospective shortfall obligations could vary from our estimate based upon changes in the performance of the joint venture stations and any changes to the proportionate share of each party's debt service shortfall. During the year ended December 31, 2011, based on our estimate of our probable shortfall obligations during 2011, 2012 and into 2013, we recognized a contingent liability of $4.7 million for the amounts that we expect to loan to SVH pursuant to the shortfall funding agreements with GE, as further described in Note 15—"Commitments and Contingencies".

Because of uncertainty surrounding the joint venture's ability to repay shortfall loans, we concluded that it was more likely than not that the amounts recognized during the years ended December 31, 2011 and 2009 for accrued shortfall loans of $4.7 million and $6.0 million, respectively, will not be recovered within a reasonable period of time. Accordingly, we recognized charges of $4.7 million and $6.0 million, to reflect the impairment of the shortfall loans, which were classified as share of loss in equity investments in our consolidated statement of operations, during the years ended December 31, 2011 and 2009, respectively. Therefore, the amounts receivable under the shortfall loans, and all accrued interest due from the joint venture, are carried at zero on our consolidated balance sheets. Should there be sufficient evidence in the future to suggest that collectability of the shortfall loans and accrued interest is reasonably certain, we would reverse the previously recognized impairment charges, reestablish notes receivable for all previously funded and accrued shortfall loans to the joint venture, and establish accrued interest receivable for all previously funded shortfall loans to the joint venture. For further information on recognition of shortfall funding liabilities, see Note 15—"Commitments and Contingencies".

The shortfall loans bear interest at 8% annually; payable quarterly in arrears subject to certain conditions, and do not mature prior to the maturity of the Credit Agreement with GECC in 2023. Under the terms of the shortfall loan notes, payments of principal and interest are allocated between us and NBCUniversal or GE, as applicable, based on the respective economic interests in the joint venture, and are applied first toward the principal amount owed under the shortfall loans, and second toward the payment of accrued interest. Principal and interest payments are payable only if the joint venture has available cash on hand in excess of amounts required by the joint venture to fund its quarterly interest payments on the debt financing provided by GECC as further described in Note 15—"Commitments and Contingencies".