Cablevision 2011 Annual Report Download - page 81

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LIQUIDITY AND CAPITAL RESOURCES
Cablevision
Cablevision has no operations independent of its subsidiaries. Cablevision's outstanding securities consist
of CNYG Class A common stock, CNYG Class B common stock and approximately $2,931,000 of debt
securities, including approximately $2,177,000 face value of debt securities held by third party investors
and approximately $754,000 held by Newsday Holdings LLC. The $754,000 of notes are eliminated in
Cablevision's consolidated financial statements and are shown as notes due from Cablevision in the
consolidated equity of CSC Holdings.
Funding for the Company's Debt Service Requirements
Funding for the debt service requirements of our debt securities is provided by our subsidiaries'
operations, principally CSC Holdings, as permitted by the covenants governing CSC Holdings' credit
agreements and indentures. Funding for our subsidiaries is generally provided by cash flow from
operations, cash on hand, and borrowings under credit facilities made available to the Restricted Group
(as later defined) and Bresnan Cable, and the proceeds from the issuance of securities in the capital
markets. Our decision as to the use of cash on hand, cash generated from operating activities and
borrowings under credit facilities of the Restricted Group and Bresnan Cable will be based upon an
ongoing review of the funding needs of the business, the optimal allocation of cash resources, the timing
of cash flow generation and the cost of borrowing under each respective credit agreement. Moreover, we
will monitor the credit markets and may seek opportunities to issue debt, the proceeds of which could be
used to meet our future cash funding requirements. The Company has accessed the debt markets for
significant amounts of capital in the past and may do so in the future.
We have assessed the implications of the volatility in the capital and credit markets on our ability to repay
our scheduled debt maturities over the next 12 months and we currently believe that a combination of
cash-on-hand, cash generated from operating activities and availability under our revolving credit
facilities should provide us with sufficient liquidity to repay such scheduled current debt maturities in the
next 12 months totaling approximately $208,681 under our credit facilities, senior notes and notes payable
as of December 31, 2011. However, additional market disruptions could cause broader economic
downturns, which may lead to lower demand for our products, such as cable television services, as well as
lower levels of television and newspaper advertising, and increased incidence of customers' inability to
pay for the services we provide. These events would adversely impact our results of operations, cash
flows and financial position. Although we currently believe that amounts available under our CSC
Holdings and Bresnan Cable revolving credit facilities will be available when, and if needed, we can
provide no assurance that access to such funds will not be impacted by adverse conditions in the financial
markets. The obligations of the financial institutions under our revolving credit facilities are several and
not joint and, as a result, a funding default by one or more institutions does not need to be made up by the
others.
In the longer term, we do not expect to be able to generate sufficient cash from operations to fund
anticipated capital expenditures, meet all existing future contractual payment obligations and repay our
debt at maturity. As a result, we will be dependent upon our ability to access the capital and credit
markets. We will need to raise significant amounts of funding over the next several years to fund capital
expenditures, repay existing obligations and meet other obligations, and the failure to do so successfully
could adversely affect our business. If we are unable to do so, we will need to take other actions
including deferring capital expenditures, selling assets, seeking strategic investments from third parties or
reducing or eliminating dividend payments and stock repurchases or other discretionary uses of cash.