This was recorded in former Dire Straits frontman Mark Knopfler's studio by The Killers. They laid the tune down during mid-November 2006 with record producer Alan Moulder as a one-off Christmas single. Moulder's wife Toni Halliday, the former lead vocalist of Curve, contributed backing vocals.
Brandon Flowers recalled to NME in 2014: "I was trying to think what The Flaming Lips would do if they wrote a Christmas song, and that's what we got! What's funny is that it sounds nothing like The Flaming Lips."
All of the proceeds from this song went to AIDS charities as part of the Product Red campaign.