Cablevision 2011 Annual Report Download - page 50

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Newsday's largest categories of operating expenses relate to the production and distribution of its print
products. These costs are driven by volume (number of newspapers printed and number of pages printed)
and the number of pages printed are impacted by the volume of advertising and editorial pages. The
majority of Newsday's other costs, such as editorial content creation, rent and general and administrative
expenses do not directly fluctuate with changes in advertising and circulation revenue.
Clearview Cinemas
Clearview Cinemas derives revenues primarily from box office ticket sales, concession stand sales, and,
to a lesser extent, from advertising shown at the start of each performance and from venue rentals. Our
ability to attract customers to our theatres is, to a large extent, dependent on our ability to obtain high
quality film content at competitive pricing.
News 12 Networks
Our News 12 Networks, which include seven 24-hour local news channels and five traffic and weather
services dedicated to covering areas within the New York metropolitan area, derives its revenues from the
sale of advertising on its networks and affiliation fees paid by cable operators, principally Cablevision.
MSG Varsity
MSG Varsity is a network dedicated entirely to showcasing high school sports and activities. It does not
receive intercompany affiliation fees from the Telecommunications Services segment and has minimal
revenues.
Cablevision Media Sales
Cablevision Media Sales, previously Rainbow Advertising Sales Corporation, is a cable television
advertising company that derives its revenues from the sale of local and regional commercial advertising
time on cable television networks in the New York metropolitan area, which offers advertisers the
opportunity to target geographic and demographic audiences.
Critical Accounting Policies
In preparing its financial statements, the Company is required to make certain estimates, judgments and
assumptions that it believes are reasonable based upon the information available. These estimates and
assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the periods presented. The significant accounting
policies, which we believe are the most critical to aid in fully understanding and evaluating our reported
financial results, include the following:
Impairment of Long-Lived and Indefinite-Lived Assets:
The Company's long-lived and indefinite-lived assets at December 31, 2011 include goodwill of
$442,773, other intangible assets of $1,548,994 ($1,296,123 of which are indefinite-lived intangible
assets), and $3,269,232 of property, plant and equipment. Such assets accounted for approximately 74%
of the Company's consolidated total assets. Goodwill and identifiable indefinite-lived intangible assets,
which represent primarily the Company's cable television franchises, various trademarks and licenses, are
tested annually for impairment during the first quarter ("annual impairment test date") and upon the
occurrence of certain events or substantive changes in circumstances.
The Company is required to determine goodwill impairment using a two-step process. The first step of
the goodwill impairment test is used to identify potential impairment by comparing the fair value of a
reporting unit with its carrying amount, including goodwill utilizing an enterprise-value based premise