Cablevision 2013 Annual Report Download - page 142

COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Dollars in thousands, except per share amounts)
F-33
NOTE 4. RESTRUCTURING AND IMPAIRMENT CHARGES
Restructuring
In the fourth quarter of 2013, as a result of a strategic evaluation of the Company's operations, the
Company recorded restructuring charges of $22,879 which included expenses of $11,283 associated
primarily with the elimination of 234 positions in the Cable segment, $10,038 associated primarily with
the elimination of 191 positions in the Other segment, and $1,558 associated primarily with the
elimination of 16 positions in the Lightpath segment. Additionally, the Company expensed $1,205 in
connection with an early lease termination in the Other segment. The following table summarizes the
accrued restructuring liability related to the 2013 restructuring plan for continuing operations:
Cable
Segment
Lightpath
Segment
Other
Segment
Total
Restructuring charges relating to
severance, net ........................................
.
$11,283 $1,558
$10,038
$22,879
Restructuring charges relating to an early
lease termination ....................................
.
- -
1,205
1,205
Total restructuring expense ........................
.
11,283 1,558
11,243
24,084
Payments and other ................................
.
(8,556) (628)
(158)
(9,342)
Accrual balance at December 31, 2013 ......
.
$ 2,727 $ 930
$ 11,085
$14,742
In addition to the charges included in the table above, the Company recorded net restructuring charges
(credits) of $(534), $(770), and $6,311, in 2013, 2012 and 2011, respectively. The 2013 and 2012
restructuring credits primarily related to changes to the Company's previous estimates recorded in
connection with the Company's prior restructuring plans. The $6,311 restructuring expense recognized in
2011 related to the elimination of 97 positions, primarily within the Newsday business which was all paid
as of December 31, 2013.
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 at December 31,
2013, 2012 and 2011 (the "interim testing dates").
The estimated fair values of the Newsday business indefinite-lived intangibles, which relate primarily to
the trademarks associated with its mastheads, were based on discounted future cash flows calculated
utilizing the relief-from-royalty method. Changes in such estimates or the application of alternative
assumptions could produce significantly different results.
The Company's impairment analysis as of December 31, 2013, 2012 and 2011 resulted in pre-tax
impairment charges of $25,100, $13,000 and $11,000, respectively, related to the excess of the carrying
value over the estimated fair value of the Company's trademarks. Additionally, in 2013 the Company
recorded an impairment charge of $12,358 relating to the excess of the carrying value over the estimated
fair value of the Company's advertiser relationships. The decrease in fair value, which was determined
based on discounted cash flows, resulted primarily from the decline in projected cash flows related to
these assets. These pre-tax impairment charges are included in depreciation and amortization (including