Cablevision 2011 Annual Report Download - page 203

COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Dollars in thousands, except per share amounts)
I-79
The following table summarizes the revenue and charges (credits) related to services provided to or
received from Madison Square Garden reflected in continuing operations not discussed elsewhere in the
accompanying combined notes to the consolidated financial statements:
Years Ending December 31,
2011(a) 2010(a) 2009(a)
Revenues, net $ 2,476 $ 1,926 $ 2,403
Operating expenses (credits):
Technical expenses, net of credits ......................................... $155,794 $152,889 $123,191
Selling, general and administrative expenses (credits):
Corporate general and administrative expense allocations .. (3,170) (8,135) (5,626)
Health and welfare plan allocations .................................... - - (12,682)
Risk management and general insurance allocations .......... - (713) (6,161)
Other .................................................................................... 3,429 2,888 4,805
Selling, general and administrative expenses (credits),
subtotal ........................................................................... 259 (5,960) (19,664)
Operating expenses, net ..................................................... 156,053 146,929 103,527
Net charges ........................................................................ $153,577 $145,003 $101,124
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(a) Amounts relating to Madison Square Garden for the period prior to the MSG Distribution are eliminated in
consolidation. Operating results of Madison Square Garden are reported in discontinued operations for all periods
presented prior to the MSG Distribution. Corporate overhead costs previously allocated to Madison Square Garden
that were not eliminated as a result of the MSG Distribution have been reclassified to continuing operations and are
not reflected in the table above.
Revenues, net
The Company recognizes revenue in connection with television advertisements and print advertising, as
well as certain telecommunication services charged by its subsidiaries to AMC Networks and Madison
Square Garden.
The Company and its subsidiaries, together with AMC Networks and Madison Square Garden, may enter
into agreements with third parties in which the amounts paid/received by AMC Networks and Madison
Square Garden, their subsidiaries, or the Company may differ from the amounts that would have been
paid/received if such arrangements were negotiated separately. Where subsidiaries of the Company have
incurred a cost incremental to fair value and Madison Square Garden or AMC Networks have received a
benefit incremental to fair value from these negotiations, the Company and its subsidiaries will charge
Madison Square Garden or AMC Networks for the incremental amount.
Technical Expenses, net of Credits
Technical expenses include costs incurred by the Company for the carriage of the MSG networks and
Fuse program services, as well as for AMC, WE tv, IFC and Sundance Channel on Cablevision's cable
systems. The Company also purchases certain programming signal transmission and production services
from AMC Networks.
Effective January 1, 2010, a new long-term affiliation agreement was entered into between Cablevision
and the MSG networks, which are owned by Madison Square Garden. This new long-term affiliation
agreement resulted in incremental programming costs to the Company of approximately $29,000 for the
year ended December 31, 2010, as compared to the amount of programming costs recognized by the
Company pursuant to the Company's arrangement with Madison Square Garden in 2009. This new