Cablevision 2012 Annual Report Download - page 162

COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Dollars in thousands, except per share amounts)
I-34
rate, determination of appropriate market comparables, average annual revenue per customer, number of
homes passed, operating margin, market penetration as a percentage of homes passed, and determination
of whether a premium or discount should be applied to comparables.
The estimates of expected useful lives take into consideration the effects of contractual relationships,
customer attrition, eventual development of new technologies and market competition.
Revenues and loss from continuing operations before income taxes attributable to Bresnan Cable for the
period from December 14, 2010 through December 31, 2010 amounted to approximately $22,135 and
($20,610), respectively, which are included in the accompanying consolidated statement of income for the
year ended December 31, 2010.
Approximately $167,300 of goodwill recorded in connection with the Bresnan Cable acquisition is
deductible for tax purposes.
The unaudited pro forma revenues, income from continuing operations, net income, income per share
from continuing operations and net income per share for the year ended December 31, 2010, as if the
Bresnan acquisition had occurred on January 1, 2009, is as follows:
Cablevision CSC Holdings
Revenues........................................................................................................ $6,599,504 $6,599,504
Income from continuing operations ............................................................... $ 202,927 $ 416,256
Net income ..................................................................................................... $ 356,775 $ 570,104
Basic income per share from continuing operations ...................................... $0.69
Basic net income per share ............................................................................ $1.22
Diluted income per share from continuing operations ................................... $0.67
Diluted net income per share ......................................................................... $1.18
NOTE 5. IMPAIRMENT CHARGES
Goodwill and indefinite-lived intangible assets are tested annually for impairment during the first quarter
of each year or earlier upon the occurrence of certain events or substantive changes in circumstances. As
a result of the continuing deterioration of values in the newspaper industry and the greater than
anticipated economic downturn and its current and anticipated impact on Newsday's advertising business,
the Company determined that a triggering event had occurred at the Newsday reporting unit and the
Company tested Newsday's indefinite-lived intangibles and goodwill for impairment as of December 31,
2012, 2011 and 2010 (the "interim testing dates").
The Company determined the fair value of the Newsday business based on a combination of the estimated
fair market values determined under the income approach and the market approach. The income
approach utilizes a discounted cash flow valuation methodology, which requires the exercise of
significant judgments, including judgments about appropriate discount rates based on the assessment of
risks inherent in the projected future cash flows including the cash flows generated from synergies from a
market participant's point of view, and the amount and timing of expected future cash flows, including
expected cash flows beyond the Company's current long-term business planning period. The market
approach measures fair value using market multiples of various financial measures compared to a set of
comparable public companies taking into consideration synergies a market participant may generate. The
market approach requires significant judgments determining comparable market multiples. The estimated