Cablevision 2011 Annual Report Download - page 150

COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Dollars in thousands, except per share amounts)
I-26
Income Taxes
The Company's provision for income taxes is based on current period income, changes in deferred tax
assets and liabilities and changes in estimates with regard to uncertain tax positions. Deferred tax assets
are subject to an ongoing assessment of realizability. The Company provides deferred taxes for the
outside basis difference of its investment in partnerships. Interest and penalties, if any, associated with
uncertain tax positions are included in income tax expense.
Cash and Cash Equivalents
The Company's cash investments are placed with money market funds and financial institutions that are
investment grade as rated by Standard & Poor's and Moody's Investors Service. The Company selects
money market funds that predominantly invest in marketable, direct obligations issued or guaranteed by
the United States government or its agencies, commercial paper, fully collateralized repurchase
agreements, certificates of deposit, and time deposits.
The Company considers the balance of its investment in funds that substantially hold securities that
mature within three months or less from the date the fund purchases these securities to be cash
equivalents. The carrying amount of cash and cash equivalents either approximates fair value due to the
short-term maturity of these instruments or are at fair value.
Restricted Cash
Restricted cash principally includes money market securities held in a rabbi trust established in December
2011 to fund deferred compensation payments as required under certain employment agreements.
Accounts Receivable
The Company periodically assesses the adequacy of valuation allowances for uncollectible accounts
receivable by evaluating the collectibility of outstanding receivables and general factors such as historical
collection experience, length of time individual receivables are past due, and the economic and
competitive environment.
Investments
Investment securities and investment securities pledged as collateral are classified as trading securities
and are stated at fair value with realized and unrealized holding gains and losses included in net income.
Long-Lived and Indefinite-Lived Assets
Property, plant and equipment, including construction materials, are carried at cost, and include all direct
costs and certain indirect costs associated with the construction of cable television transmission and
distribution systems, and the costs of new product and subscriber installations. Equipment under capital
leases is recorded at the present value of the total minimum lease payments. Depreciation on equipment
is calculated on the straight-line basis over the estimated useful lives of the assets or, with respect to
equipment under capital leases and leasehold improvements, amortized over the shorter of the lease term
or the assets' useful lives and reported in depreciation and amortization (including impairments) in the
consolidated statements of income.