ServiceMagic 2010 Annual Report Download - page 45

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Table of Contents
Operating Income Before Amortization loss decreased by $5.6 million to a loss of $19.7 million. Losses decreased due primarily to cost
savings related to the shutdown or sale of certain businesses of $7.7 million, partially offset by increased operating expenses associated with The
Daily Beast.
Operating loss decreased by $22.1 million to $22.1 million primarily due to the decreased Operating Income Before Amortization loss
described above and goodwill and indefinite-lived intangible asset impairment charges of $11.6 million and $3.4 million, respectively, in 2008
related to Connected Ventures. Also contributing to the decrease in operating loss are decreases in amortization of intangibles, exclusive of the
impairment charge noted above, and non-cash compensation expense of $2.0 million and $0.6 million, respectively.
Corporate
For the year ended December 31, 2010 compared to the year ended December 31, 2009
Operating Income Before Amortization loss decreased by $1.3 million to a loss of $64.2 million primarily due to lower depreciation and
salary expense, partially offset by $5.3 million in transaction expenses in the current year related to the Liberty Exchange.
Operating loss increased $13.6 million to $147.3 million despite the decrease in Operating Income Before Amortization loss due to an
increase of $14.9 million in non-cash compensation expense. The increase in non-cash compensation expense is primarily related to an increase
in expense attributable to awards granted subsequent to the second quarter of 2009, partially offset by awards having become fully vested.
For the year ended December 31, 2009 compared to the year ended December 31, 2008
Operating Income Before Amortization loss decreased by $55.5 million to a loss of $65.5 million primarily due to the inclusion in 2008 of
$42.0 million in expenses related to the Spin-Off. The current year also benefited from lower compensation and other employee-related costs.
Operating loss decreased $71.9 million to a loss of $133.7 million reflecting the decrease in Operating Income Before Amortization loss
described above and a decrease of $16.4 million in non-cash compensation expense. The decrease in non-
cash compensation expense reflects the
acceleration and modification of certain equity awards associated with the Spin-Off in 2008.
41