Cablevision 2011 Annual Report Download - page 55

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2010 Transactions
On February 9, 2010, Cablevision completed the MSG Distribution. As a result of the MSG Distribution,
the Company no longer consolidates the financial results of Madison Square Garden for the purpose of its
own financial reporting and the historical financial results of Madison Square Garden have been reflected
in the Company's consolidated financial statements as discontinued operations for all periods presented
through the MSG Distribution date.
On December 14, 2010, the Company completed its acquisition of Bresnan Cable for a purchase price of
$1,364,276. The acquisition was financed using an equity contribution by CSC Holdings of $395,000,
which CSC Holdings borrowed under its revolving loan facility, and debt consisting of an undrawn
$75,000 revolving loan facility, a $765,000 term loan facility and $250,000 8.0% senior notes due 2018.
Non-GAAP Financial Measures
We define adjusted operating cash flow ("AOCF"), which is a non-GAAP financial measure, as operating
income (loss) before depreciation and amortization (including impairments), excluding share-based
compensation expense or benefit and restructuring charges or credits. Because it is based upon operating
income (loss), AOCF also excludes interest expense (including cash interest expense) and other non-
operating income and expense items. We believe that the exclusion of share-based compensation expense
or benefit allows investors to better track the performance of the various operating units of our business
without regard to the distortive effects of fluctuating stock prices in the case of stock appreciation rights
and, in the case of restricted shares, restricted stock units and stock options, the expense associated with
an award that is not expected to be made in cash.
We present AOCF as a measure of our ability to service our debt and make continuing investments,
including in our capital infrastructure. We believe AOCF is an appropriate measure for evaluating the
operating performance of our business segments and the company on a consolidated basis. AOCF and
similar measures with similar titles are common performance measures used by investors, analysts and
peers to compare performance in our industry. Internally, we use net revenues and AOCF measures as
the most important indicators of our business performance, and evaluate management's effectiveness with
specific reference to these indicators. AOCF should be viewed as a supplement to and not a substitute for
operating income (loss), net income (loss), cash flows from operating activities, and other measures of
performance and/or liquidity presented in accordance with U.S. generally accepted accounting principles
("GAAP"). Since AOCF is not a measure of performance calculated in accordance with GAAP, this
measure may not be comparable to similar measures with similar titles used by other companies. Each
presentation of AOCF in this Annual Report on Form 10-K includes a reconciliation of AOCF to
operating income (loss).