Cablevision 2011 Annual Report Download - page 147

COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Dollars in thousands, except per share amounts)
I-23
Assets and liabilities related to the AMC Networks Distribution on the Company's consolidated balance
sheets as of December 31, 2010 and related footnotes have been reclassified as assets distributed to
stockholders/sole member in 2011 and liabilities distributed to stockholders/sole member in 2011. All
assets and liabilities distributed to stockholders/sole member in 2011 are excluded from the footnotes
unless otherwise noted.
Accounts due to or due from Madison Square Garden and AMC Networks that were previously
eliminated in consolidation are now presented as amounts due to affiliates or amounts due from affiliates
on the Company's consolidated balance sheets.
Basis of Presentation
Principles of Consolidation
The accompanying consolidated financial statements of Cablevision include the accounts of Cablevision
and its majority-owned subsidiaries and the accompanying consolidated financial statements of CSC
Holdings include the accounts of CSC Holdings and its majority-owned subsidiaries. Cablevision has no
business operations independent of its CSC Holdings subsidiary, whose operating results and financial
position are consolidated into Cablevision. The consolidated balance sheets and statements of income for
Cablevision are essentially identical to the consolidated balance sheets and consolidated statements of
income for CSC Holdings, with the following significant exceptions: Cablevision has $2,166,966 of
senior notes outstanding at December 31, 2011 (excluding the $753,717 aggregate principal amount of
Cablevision senior notes held by its subsidiary Newsday Holdings LLC discussed in Note 11) that were
issued to third party investors, cash, deferred financing costs and accrued interest related to its senior
notes, deferred taxes and accrued dividends on its balance sheet and CSC Holdings and its subsidiaries
have certain intercompany receivables from Cablevision. Differences between Cablevision's results of
operations from those of CSC Holdings primarily include incremental interest expense, interest income,
loss on extinguishment of debt, write-off of deferred financing costs, and income tax expense or benefit.
CSC Holdings' results of operations include incremental interest income from the Cablevision senior
notes held by Newsday Holdings LLC and the accretion of the discount on the 8% senior notes due 2012
issued by Cablevision to Newsday Holdings LLC that were redeemed during the second quarter of 2010
(which were replaced with the $753,717 aggregate principal amount of Cablevision notes discussed in
Note 11), all of which eliminate in Cablevision's results of operations.
The combined notes to the consolidated financial statements relate to the Company, which, except as
noted, are essentially identical for Cablevision and CSC Holdings. All significant intercompany
transactions and balances between Cablevision and CSC Holdings and their respective consolidated
subsidiaries are eliminated in both sets of consolidated financial statements. Intercompany transactions
between Cablevision and CSC Holdings do not eliminate in the CSC Holdings consolidated financial
statements, but do eliminate in the Cablevision consolidated financial statements.
Use of Estimates in Preparation of Financial Statements
The preparation of financial statements in conformity with GAAP requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent liabilities at the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those estimates. See Note 13 for a
discussion on fair value estimates.