Cablevision 2011 Annual Report Download - page 75

(69)
Selling, general, and administrative expenses increased $4,312 for the year ended December 31, 2010 as
compared to the prior year. The net increase is attributable to the following:
Decrease in unallocated Corporate costs due primarily to a net increase in allocations to business
units of $10,664 and lower costs related to former employees of $11,168 .......................................
.
$(21,832)
Charges to Madison Square Garden in 2010 for transition services .....................................................
.
(6,096)
Increase in costs at MSG Varsity, Cablevision Media Sales and News 12 Networks ..........................
.
19,591
Transaction costs related to the Bresnan Cable acquisition ..................................................................
.
8,924
Other net increases ................................................................................................................................
.
4,970
Intra-segment eliminations ...................................................................................................................
.
(1,245)
$ 4,312
For the year ended December 31, 2010 and 2009, we allocated certain corporate overhead, including
share-based compensation expense and expenses related to Cablevision's long-term incentive plans, of
$38,015 and $34,275, respectively, to AMC Networks. Such expenses will not be eliminated as a result
of the AMC Networks Distribution and have been reclassified to the Other segment for all periods
presented.
Depreciation and amortization (including impairments) for the year ended December 31, 2010 increased
$3,574 (6%) as compared to the prior year. The net increase is primarily due to an impairment charge
recorded at Newsday of $7,800 in 2010 relating to the estimated fair value of Newsday's indefinite-lived
intangible trademark, as compared to $2,000 in the prior year, and depreciation of new asset purchases,
partially offset by a decrease in depreciation due to certain assets becoming fully depreciated and a
decrease in depreciation expense of $4,025 related to two Newsday printing presses that were phased out
of service in mid-year 2009.
Restructuring expense for the year ended December 31, 2009 amounted to $5,583. This is comprised of
$3,590 in severance and other related costs associated with the elimination of 98 staff positions and
$3,174 related to a lease modification termination penalty and other lease and contract exit costs at
Newsday. Offsetting these expenses are restructuring credits of $1,181 related to adjustments in
severance and facility realignment provisions recorded in prior restructuring plans.
Adjusted operating cash flow deficit increased $31,583 (18%) for the year ended December 31, 2010 as
compared to 2009 (including AOCF of Newsday of $19,349 and $21,775 in 2010 and 2009, respectively).
The increase was due primarily to a decrease in revenues, net, partially offset by a decrease in operating
expenses excluding depreciation and amortization and share-based compensation, as discussed above.