Levitt Report - NHL.com

UNIFIED REPORT OF OPERATIONSREPORTING INSTRUCTIONSSCHEDULE VI - ARENA AND BUILDING OPERATIONSA. Arena and Building Operating CostsReporting change for 2002-03: All depreciation and amortization expenses should bereported on Schedule I, section H.If your Club or an affiliated entity owns, manages or operates the arena in whichyour Club plays in, report the hockey related operating costs of the arena andbuilding in this section.Since non-hockey event revenues are excluded from your Club’s or your Club’sAffiliated Entity's revenues, an appropriate share of the arena and building operatingcosts must also be attributed to the non-hockey events and excluded for UROpurposes. The method of cost allocation between hockey and non-hockey will varyfrom one to another depending on the significance of the events held in yourbuilding. In all cases, the basis of cost allocations should follow the followinggeneral principles:(a) The basis of allocation should be based on management's bestestimate of the economic reality of the transaction(s) and a reasonableapproach to allocation.(b) The basis of allocation should be consistent to the basis used toreport prior years.(c) Where appropriate, the basis should be consistent to internal andexternal reporting.To the extent that cost are based on an allocation, mark an “X” in the space providedon the URO schedule and provided on Schedule XIII a description of allocationprinciple and details the calculation, including the total pool of expenses beingallocated. Report on a separate sheet any significant/material change in allocationmethod(s) used to prepare the 2002-03 URO as compared to the allocationmethod(s) used to prepare the 2001-02 URO.Arena Rent - line 1If your Club pays rent to an Affiliated Entity and the rent revenue is reported as acredit under the "Affiliated Entity" column, please make sure to include anappropriate share of the building operating costs. If no rent revenue is beingcredited for URO reporting purposes, under the principle that the rent charged andreported in the “Club” column represents fair market value, then no buildingoperating costs should be allocated.Arena Personnel - line 6Include costs relating to ushers, entertainment, statistics crew, timekeeper, scorer,announcer and other game personnel not included in the other classifications.URO Instructions – September 2003 4312/18/2003 10:50 AM