Question-and-Answer Session
Operator
(Operator Instructions). We will take our first question from the side of Lucas Binder with UBS. Please go ahead.
Lucas Binder - UBS
Hi guys, thanks very much. I had a few questions for you, one housekeeping. Linda, what was your stock option expense during the quarter?
Linda Havard
It was approximately $3 million for the year, so it's the quarter of that Lucas.
Lucas Binder - UBS
Okay. So we will stick with -- and as far as 2007 probably running at the same run-rate?
Linda Havard
About the same run-rate, maybe little bit higher as we add more options.
Lucas Binder - UBS
Okay. When you look at the impact of the Playboy Club on the licensing revenue line, the expectation is that this is running at a $4 million run-rate. Is that still consistent with your expectations?
Linda Havard
Yes. But I wouldn't straight-line it Lucas. We experienced that all operators, including our partner, who as you know, ran the highly successful Rain and Ghost Bar Clubs before we opened with them. Is that there is a ramp-up. So on an annual run-rate basis, our performance we believe will be consistent with what we had expected and hoped for and what The Palms expected and hoped for, but that doesn't mean that the first quarter is necessarily one quarter of that.
Lucas Binder - UBS
Okay. And so it will have a scaling impact in 2007.
Linda Havard
The 2007 run-rate will be consistent with what we believed it would.
Lucas Binder - UBS
Okay.
Linda Havard
I wouldn't take 2006 as one full quarter.
Lucas Binder - UBS
And then lastly, could you talk a little bit about -- you said that there is really nothing that's safe as far as cost cutting is concerned, and you look at the Domestic TV business in the town. Can you talk about some of the -- where you see some further cost cutting opportunities that are in excess of what you have announced in the past?
Linda Havard
Well, for reasons that you can understand it would be not helpful to management to start to speculate on those changes until they are finished and announced. But, I think everybody on this call is aware of where the large areas of costs are and that is where we will be looking at. So, those are tied into the number of networks that we have, which are a function of the number of different editing standards, as well as different positions, the content acquisition and creation costs, which include how we operate our studio and our infrastructure costs.
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