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Basis of Presentation
 3 Months Ended
Mar. 31, 2012
Basis of Presentation [Abstract]  
Basis of Presentation
1. Basis of Presentation

The accompanying condensed consolidated balance sheet as of December 31, 2011, which was derived from the audited financial statements as of December 31, 2011 of Gray Television, Inc. (“we”, “us”, “our”, “Gray” or the “Company”) and our accompanying unaudited condensed consolidated financial statements as of March 31, 2012 and for the periods ended March 31, 2012 and 2011 have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, such financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement have been included. Our operations consist of one reportable segment. For further information, refer to the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2011 (the “2011 Form 10-K”). Our financial condition as of, and operating results for the three-month period ended, March 31, 2012 are not necessarily indicative of the financial condition and results that may be expected for any future interim period or for the year ending December 31, 2012.

Seasonality and Cyclicality

Broadcast advertising revenue is generally highest in the second and fourth quarters each year. This seasonality results partly from increases in advertising in the spring and in the period leading up to and including the holiday season. Broadcast advertising revenue is also generally higher in even-numbered years, due to spending by political candidates, political parties and special interest groups. This political spending typically is heaviest during the fourth quarter of such years.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires our management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and the notes to the unaudited condensed consolidated financial statements. Our actual results could differ materially from these estimates. The most significant estimates we make relate to our allowance for doubtful accounts in receivables, valuation of goodwill and intangible assets, amortization of program broadcast rights and intangible assets, stock-based compensation, pension costs, income taxes, employee medical insurance claims, useful lives of property and equipment, contingencies and litigation.

Earnings Per Share

We compute basic earnings per share by dividing net income (loss) available to common stockholders by the weighted-average number of common shares outstanding during the relevant period. The weighted-average number of common shares outstanding does not include restricted shares. These shares, although classified as issued and outstanding, are considered contingently returnable until the restrictions lapse and are not to be included in the basic earnings per share calculation until the shares vest. Diluted earnings per share is computed by including all potentially dilutive common shares, including restricted stock and shares underlying stock options, in the diluted weighted-average shares outstanding calculation, unless their inclusion would be antidilutive. The following table reconciles basic weighted-average shares outstanding to diluted weighted-average shares outstanding for the three-month periods ended March 31, 2012 and 2011 (in thousands):

 

                 
     Three Months Ended
March 31,		  
     2012     2011  

Weighted-average shares outstanding-basic

     57,148       57,112  

Stock options and restricted stock

     —         —    
   

 

 

    

 

 

  

Weighted-average shares outstanding-diluted

     57,148       57,112  
   

 

 

    

 

 

  

 

For periods in which we reported losses, all potentially dilutive common shares are excluded from the computation of diluted earnings per share, since their inclusion would be antidilutive. In addition, securities that could potentially dilute earnings per share in the future, but which were not included in the calculation of diluted earnings (loss) per share because their inclusion would have been antidilutive for the periods presented are as follows (in thousands):

 

                 
     Three Months Ended
March 31,		  
     2012     2011  

Potentially dilutive common shares outstanding at end of period:

                

Employee stock options

     970       1,004  

Restricted stock

     10       33  
   

 

 

    

 

 

  

Total

     980       1,037  
   

 

 

    

 

 

  

Accumulated Other Comprehensive Loss

Our accumulated other comprehensive loss balances as of March 31, 2012 and December 31, 2011 consist of adjustments to our pension liability and income tax benefit as follows (in thousands):

 

                 
     March 31,
2012		     December 31,
2011		  

Accumulated balances of items included in accumulated other comprehensive loss:

                

Increase in pension liability

   $ (26,889 )    $ (26,889 ) 

Income tax benefit

     (10,487 )      (10,487 ) 
   

 

 

    

 

 

  

Accumulated other comprehensive loss

   $ (16,402 )    $ (16,402 ) 
   

 

 

    

 

 

  

Our comprehensive income (loss) for the three-month periods ended March 31, 2012 and 2011 consists entirely of net income (loss). Therefore, a consolidated statement of comprehensive income (loss) is not presented for the three-month periods ended March 31, 2012 and 2011.

 

Property and Equipment

Property and equipment are carried at cost. Depreciation is computed principally by the straight-line method. Buildings, towers, improvements and equipment are generally depreciated over estimated useful lives of approximately 35 years, 20 years, 10 years and 5 years, respectively. Maintenance, repairs and minor replacements are charged to operations as incurred; major replacements and betterments are capitalized. The cost of any assets sold or retired and the related accumulated depreciation are removed from the accounts at the time of disposition, and any resulting profit or loss is reflected in income or expense for the period. The following table lists components of property and equipment by major category (in thousands):

 

                 
    March 31,
2012		     December 31,
2011		  

Property and equipment:

                

Land

   $ 23,478     $ 23,451  

Buildings and improvements

     53,420       53,322  

Equipment

     310,425       308,454  
   

 

 

    

 

 

  
      387,323       385,227  

Accumulated depreciation

     (251,917 )      (248,128 ) 
   

 

 

    

 

 

  

Total property and equipment, net

   $ 135,406     $ 137,099  
   

 

 

    

 

 

  

Allowance for Doubtful Accounts

Our allowance for doubtful accounts is equal to at least 85% of our receivable balances that are 120 days old or older. We may provide allowances for certain receivable balances that are less than 120 days old when warranted by specific facts and circumstances. We generally write-off accounts receivable balances when the customer files for bankruptcy or when all commonly used methods of collection have been exhausted.

Recent Accounting Pronouncements

We have reviewed all recently issued accounting pronouncements. Of those pronouncements that have been issued but are not yet effective, we do not anticipate a material impact upon our financial statements upon our adoption of those pronouncements. None of the pronouncements that became effective and were adopted by us during the three months ended March 31, 2012 had a material effect upon our results of operations or financial position.

Reclassifications

Certain reclassifications have been made in the current liability section of our condensed consolidated balance sheet as of March 31, 2011 in order to conform to the presentation as of March 31, 2012. The reclassifications did not change our total current liabilities as of March 31, 2011. Certain reclassifications have been made within the operating and investing sections of our condensed consolidated statement of cash flows for the three months ended March 31, 2011 in order to conform to the presentation for the three months ended March 31, 2012. The reclassifications did not change our net cash provided by operating activities or net cash used in investing activities for the period ended March 31, 2011.