Cablevision 2014 Annual Report Download - page 60

54
Selling, general and administrative expenses increased $52,537 (5%) for 2013 as compared to 2012. The net increase is attributable
to the following:
Increase in employee related costs, primarily merit increases, benefits, certain compensation increases (see
discussion above) ..................................................................................................................................................... $ 55,960
Increase in legal and other professional fees ............................................................................................................... 18,006
Increase in advertising and marketing costs ................................................................................................................ 6,143
Increase in expenses related to long-term incentive awards offset by a decrease in share-based compensation
expense..................................................................................................................................................................... 3,366
Decrease in customer promotional incentives ............................................................................................................. (17,707)
Expenses incurred as a result of Superstorm Sandy in 2012 ....................................................................................... (15,118)
Other net increases, including allocations of corporate overhead costs ...................................................................... 1,887
$ 52,537
Selling, general and administrative expenses include customer related costs, principally from the operation and maintenance of
our call center facilities that handle customer inquiries and billing and collection activities. These costs generally fluctuate as the
number of customers increases or decreases and rise as a result of general inflationary cost increases for employees and various
other expenses. Sales and marketing costs primarily consist of employee costs and advertising production and placement costs
associated with acquiring and retaining customers. These costs vary period to period and may increase with intense competition.
Restructuring expense of $11,283 for 2013 is associated with the elimination of 234 positions as a result of a strategic evaluation
of the Company's operations.
Depreciation and amortization increased $750 for 2013 as compared to 2012. The net increase resulted primarily from the
depreciation of new asset purchases, partially offset by certain assets becoming fully depreciated.
Adjusted operating cash flow decreased $58,512 (3%) for the year ended December 31, 2013 as compared to 2012. The decrease
was due primarily to an increase in both technical and operating and selling, general and administrative expenses, excluding
depreciation and amortization, share-based compensation and restructuring expense, partially offset by an increase in revenue,
net, as discussed above.
Lightpath
The table below sets forth, for the periods presented, certain historical financial information and the percentage that those items
bear to revenues, net for our Lightpath segment:
Years Ended December 31,
2013 2012
Amount % of Net Revenues Amount % of Net Revenues Favorable (Unfavorable)
Revenues, net .......................................................... $ 332,609 100% $ 323,776 100% $ 8,833
Technical and operating expenses (excluding
depreciation and amortization shown below)...... 111,982 34 116,855 36 4,873
Selling, general and administrative expenses ......... 81,176 24 78,700 24 (2,476)
Restructuring expense............................................. 1,558 — — — (1,558)
Depreciation and amortization................................ 82,208 25 87,768 27 5,560
Operating income.................................................. $ 55,685 17% $ 40,453 12% $ 15,232