Cablevision 2012 Annual Report Download - page 152

COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Dollars in thousands, except per share amounts)
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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 $2,891,536 of
senior notes outstanding at December 31, 2012 (excluding the $753,717 aggregate principal amount of
Cablevision notes held by its subsidiary Newsday Holdings LLC discussed in Note 10) 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. 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, 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 U.S. generally accepted accounting principles
("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 12 for a discussion of fair value estimates.
Reclassifications
Certain reclassifications have been made to the 2010 and 2011 financial statements to conform to the
2012 presentation.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Summary of Significant Accounting Policies
Revenue Recognition
The Company recognizes video, high-speed data, and voice services revenues as the services are provided
to subscribers. Installation revenue for the Company's video, consumer high-speed data and VoIP