Cablevision 2011 Annual Report Download - page 94

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2011, up to approximately $8,552 will be paid when, and if, restrictions lapse on restricted shares
outstanding.
On February 22, 2012, the Board of Directors of Cablevision declared a cash dividend of $0.15 per share
payable on March 30, 2012 to stockholders of record on both its CNYG Class A common stock and
CNYG Class B common stock as of March 9, 2012.
During the years ended December 31, 2011 and 2010, CSC Holdings made equity distribution payments
to Cablevision, its sole member, aggregating $929,947 and $556,272, respectively. The proceeds were
used to fund:
• Cablevision's dividends paid;
• Cablevision's interest payments on its senior notes;
• Cablevision's payments for the acquisition of treasury shares related to statutory minimum tax
withholding obligations upon the vesting of certain restricted shares; and
• the repurchase of CNYG Class A common stock under Cablevision's share repurchase program.
Additionally on June 30, 2011, CSC Holdings distributed to Cablevision all of the outstanding common
stock of AMC Networks and on February 9, 2010, CSC Holdings distributed to Cablevision all of the
outstanding common stock of Madison Square Garden. On June 30, 2011, Cablevision distributed to its
stockholders all of the outstanding common stock of AMC Networks and on February 9, 2010,
Cablevision distributed to its stockholders all of the outstanding common stock of Madison Square
Garden.
Managing our Interest Rate and Equity Price Risk
Interest Rate Risk
To manage interest rate risk, we have entered into various interest rate swap contracts to adjust the
proportion of total debt that is subject to variable interest rates. Such contracts effectively fix the
borrowing rates on floating rate debt to limit the exposure against the risk of rising rates. We do not enter
into interest rate swap contracts for speculative or trading purposes. We monitor the financial institutions
that are counterparties to our interest rate swap contracts and we only enter into interest rate swap
contracts with financial institutions that are rated investment grade. We diversify our swap contracts
among various counterparties to mitigate exposure to any single financial institution.
Interest rate risk is primarily a result of exposures to changes in the level, slope and curvature of the yield
curve, the volatility of interest rates and credit spreads.
All interest rate swap contracts are carried at their fair values on our consolidated balance sheets, with
changes in value reflected in our consolidated statements of income.
Equity Price Risk
We have entered into derivative contracts to hedge our equity price risk and monetize the value of our
shares of common stock of Comcast Corporation. These contracts, at maturity, are expected to offset
declines in the fair value of these securities below the hedge price per share while allowing us to retain
upside appreciation from the hedge price per share to the relevant cap price. If any one of these contracts
is terminated prior to its scheduled maturity date due to the occurrence of an event specified in the
contract, we would be obligated to repay the fair value of the collateralized indebtedness less the sum of