Cablevision 2012 Annual Report Download - page 201

COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Dollars in thousands, except per share amounts)
I-73
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
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.
Selling, General and Administrative Expenses (Credits)
Corporate General and Administrative Expense Allocations
General and administrative costs, primarily costs of maintaining common support functions such as
executive management, human resources, legal, finance, tax, accounting, audit, treasury, strategic
planning, information technology, transportation services, creative and production services, etc., were
allocated to AMC Networks through June 30, 2011. Amounts allocated to Madison Square Garden and
AMC Networks (subsequent to July 1, 2011) represent charges pursuant to transition services agreements.
Corporate overhead costs allocated to AMC Networks prior to July 1, 2011 that were not eliminated as a
result of the AMC Networks Distribution have been reclassified to continuing operations.
Health and Welfare Plan Allocations
Employees of AMC Networks participated in health and welfare plans sponsored by the Company
through December 31, 2011. Health and welfare benefit costs have generally been charged to AMC
Networks based upon the proportionate number of participants in the plans.
Risk Management and General Insurance Allocations
The Company provided AMC Networks and Madison Square Garden with risk management and general
insurance related services through the dates of the AMC Networks Distribution and the MSG
Distribution.
Other
The Company, AMC Networks and Madison Square Garden routinely enter into transactions with each
other in the ordinary course of business. Such transactions may include, but are not limited to,
sponsorship agreements and cross-promotion arrangements.