Cablevision 2011 Annual Report Download - page 59

(53)
Technical and operating expenses (excluding depreciation, amortization and impairments) in 2011
increased $304,792 (11%) as compared to 2010. The net increase is attributable to the following:
Increase in expenses of the Telecommunications Services segment ..................................................... $314,287
Decrease in expenses of the Other segment ........................................................................................... (9,558)
Inter-segment eliminations .................................................................................................................... 63
$304,792
As a percentage of revenues, technical and operating expenses increased 1% in 2011 as compared to
2010.
Selling, general and administrative expenses include primarily sales, marketing and advertising expenses,
administrative costs, and costs of customer call centers. Selling, general and administrative expenses
increased $41,613 (3%) for 2011 as compared to 2010. The net increase is attributable to the following:
Increase in expenses of the Telecommunications Services segment .................................................... $ 64,319
Decrease in expenses of the Other segment .......................................................................................... (23,862)
Inter-segment eliminations ................................................................................................................... 1,156
$ 41,613
As a percentage of revenues, selling, general and administrative expenses decreased 1% in 2011 as
compared to 2010.
Depreciation and amortization (including impairments) increased $127,882 (14%) for 2011 as compared
to 2010. The net increase is attributable to the following:
Increase in expenses of the Telecommunications Services segment .................................................... $118,618
Increase in expenses of the Other segment ........................................................................................... 9,264
$127,882
Adjusted operating cash flow increased $171,115 (8%) for the year ended December 31, 2011 as
compared to the same period in 2010. The net increase is attributable to the following:
Increase in AOCF of the Telecommunications Services segment ......................................................... $164,275
Increase in AOCF of the Other segment ................................................................................................ 6,840
$171,115
Interest expense, net increased $34,955 (5%) for 2011 as compared to 2010. The net increase is
attributable to the following:
Net increase due to change in average debt balances ........................................................................... $ 36,391
Increase due to higher average interest rates on our indebtedness ........................................................ 9,887
Higher interest income ........................................................................................................................... (339)
Other net decrease (term loan extension fees of $11,034 were included in 2010) ................................ (10,984)
$ 34,955
See "Liquidity and Capital Resources" discussion below for a detail of our borrower groups.
Gain on sale of affiliate interests of $683 and $2,051 for the years ended December 31, 2011 and 2010,
respectively, relate to the installment sale of our ownership interest in PVI Virtual Media Services LLC
("PVI").
Gain on investments, net for the years ended December 31, 2011 and 2010 of $37,384 and $109,813,
respectively, consists primarily of the increase in the fair value of Comcast common stock owned by the
Company. The effects of these gains are partially offset by the losses on the related equity derivative
contracts, net described below.