Cablevision 2012 Annual Report Download - page 78

(72)
Newsday's total average circulation for the six months ended September 25, 2011 was approximately
405,000 on weekdays, approximately 390,000 on Saturdays and approximately 477,000 on Sundays.
These circulation figures include for the first time digital subscriptions (most of which are free to
Optimum Online and certain Newsday print subscribers) to Newsday's restricted access website as these
were not previously reported. These circulation figures include Newsday's total average print circulation
of approximately 292,000 on weekdays, approximately 278,000 on Saturdays and approximately 357,000
on Sundays, which represents a decline of approximately 6.9%, 5.5%, and 4.6%, respectively, over the
comparable prior year period.
Newsday's other publications, which include amNew York and Star Community Publishing, are
distributed for free. amNew York averaged weekday circulation of approximately 317,000 for the six
months ended September 25, 2011, a decrease of approximately 10% over the comparable prior year
period. Star Community Publishing distributed approximately 1,851,000 copies each week (for the six
months ended September 25, 2011), a decrease of approximately 1% over the comparable prior year
period.
Technical and operating expenses (excluding depreciation and amortization shown below) for the year
ended December 31, 2011 decreased $9,558 (3%) as compared to the prior year. The net decrease is
attributable to the following:
Decrease in operating costs of PVI .......................................................................................................
.
$(5,486)
Decrease in expenses at Newsday (from $187,606 to $183,508) primarily due to a decrease in
production and distribution expenses, partially offset by an increase in newsprint and ink
expenses ............................................................................................................................................
.
(4,098)
Other net increases ................................................................................................................................ 26
$(9,558)
Selling, general, and administrative expenses for the year ended December 31, 2011 decreased $23,862
(7%) as compared to the prior year. The net decreases are attributable to the following:
Decrease in unallocated corporate costs due primarily to an increase in allocations to business
units and a decrease in transaction costs related to the Bresnan acquisition of $8,879, which
was consummated in December 2010 ..............................................................................................
.
$(16,057)
Increase in unallocated corporate costs primarily due to employee related costs (including
$10,698 of certain executive separation costs in the fourth quarter of 2011) and an increase in
legal and other professional fees ......................................................................................................
.
12,599
Decrease in expenses relating to long-term incentive plan awards to employees primarily due to
accrual reversals and reductions in the fourth quarter of 2011 of $7,592, excluding Newsday,
(see discussion below) .....................................................................................................................
.
(11,721)
Decrease at Newsday (from $110,403 to $105,040) including a decrease of $3,494 in expenses
relating to long-term incentive plan awards to employees primarily due to accrual reversals and
reductions in the fourth quarter of 2011 of $2,629 ..........................................................................
.
(5,363)
Other net decreases ..............................................................................................................................
.
(1,846)
Intra-segment eliminations ..................................................................................................................
.
(1,474)
$(23,862)
For the year ended December 31, 2011 and 2010, we allocated certain corporate overhead, including
share-based compensation expense and expenses related to Cablevision's long-term incentive plans of
$18,834 (through June 30, 2011, the AMC Networks Distribution date), and $38,015, respectively, to
AMC Networks. Such expenses were not eliminated as a result of the AMC Networks Distribution and
have been reclassified to the Other segment for all periods presented.
The payment of long-term cash incentive awards is based on achievement of performance targets set at
the time of the award. As of December 31, 2011, these targets were not expected to be achieved for
awards due to be paid in 2013 and expected to be only partially achieved for awards due to be paid in
2014. Accordingly, in 2011, the related accruals were reversed or substantially reduced.