Cablevision 2011 Annual Report Download - page 69

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rising rates. The losses on interest rate swap contracts are a result of a shift in the yield curve over the life
of the swap contracts.
Loss on extinguishment of debt and write-off of deferred financing costs amounted to $110,049 and
$73,457 for the years ended December 31, 2010 and 2009, respectively. The 2010 amount represents
premiums paid to repurchase a portion of Cablevision senior notes due April 2012 and related fees
associated with the tender offer and the write-off of unamortized deferred financing costs related to such
repurchases. The 2009 amount represents the premiums paid to repurchase a portion of Cablevision
senior notes due April 2009, CSC Holdings' senior notes due July 2009, and senior debentures due
August 2009 and related fees associated with the tender offers. They also included the write-off of
unamortized deferred financing costs related to such repurchases.
Income tax expense of $113,767 for the year ended December 31, 2010, reflecting an effective tax rate of
35%. In the second quarter of 2010, the Company recorded a nonrecurring tax benefit of $18,951 for an
increase in certain state and city net operating loss carry forwards pursuant to the finalization of an
examination with a state taxing authority. Absent this tax benefit, the effective tax rate for the year ended
December 31, 2010 would have been 41%. The Company recorded tax expense of $5,842 for the impact
of a change in the state rate used to measure deferred taxes principally due to the impact of the MSG
Distribution on February 9, 2010. A decrease in the valuation allowance relating to certain state net
operating loss carry forwards resulted in a tax benefit of $2,428. The Company recorded tax expense of
$1,202, including accrued interest, related to uncertain tax positions.
Income tax expense of $113,177 for the year ended December 31, 2009, reflected an effective tax rate of
48%. To address state income tax planning considerations, during 2009 certain subsidiary corporations
were converted to limited liability companies. In connection with such conversions, the Company
recorded tax expense of $9,095 relating to the elimination of certain state NOLs and credit carry forwards.
Absent this tax expense, the effective tax rate for the year ended December 31, 2009 would have been
44%. The Company recorded tax benefit of $6,764 for the impact of a change in the state rate used to
measure deferred taxes. A decrease in the valuation allowance relating to certain state net operating loss
carry forwards resulted in a tax benefit of $1,427. The Company recorded tax benefit of $105, including
accrued interest, related to uncertain tax positions.
For the years ended December 31, 2010 and 2009, the Company has fully offset federal taxable income
with a net operating loss carry forward. However, the Company is subject to the federal alternative
minimum tax and certain state and local income taxes that are payable quarterly.
Income (loss) from discontinued operations
Income (loss) from discontinued operations, net of income taxes, for the years ended December 31, 2010
and 2009 reflects the following items:
Years Ended December 31,
2010 2009
Net operating results of Madison Square Garden, including transaction costs,
net of income taxes(a) ......................................................................................... $ (4,122) $ 35,856
Net operating results of AMC Networks, including transaction costs, net of
income taxes ....................................................................................................... 157,970 125,611
$153,848 $161,467
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(a) Includes operating results of the Madison Square Garden segment from January 1, 2010 through February 9, 2010,
the date of the MSG Distribution.