Cablevision 2012 Annual Report Download - page 214

COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Dollars in thousands, except per share amounts)
I-86
Capital Expenditures
Capital expenditures of $5,639 related to Superstorm Sandy include replacement of various segments of
the Company's network and the purchase of equipment necessary to expedite restoration of service.
The table above summarizes incremental costs and service outage credits and therefore does not include
various other negative financial impacts to the Company's business resulting from Superstorm Sandy,
including lower revenue related to customers for whom we decided to temporarily suspend billing during
the restoration of their homes, displaced homes and advertising cancelations.
Litigation Settlement
On October 21, 2012, the Company and AMC Networks settled the litigation with DISH Network relating
to VOOM HD (see Note 17). The terms of the settlement provided for the following, among other things:
xDISH Network paid a cash settlement of $700,000 to an account for the benefit of the Company and
AMC Networks;
xThe Company agreed to sell to DISH Network its multichannel video and data distribution service
("MVDDS") spectrum licenses in 45 metropolitan areas in the U.S.;
xDISH Network entered into a long-term affiliation agreement with subsidiaries of AMC Networks to
carry on its satellite service AMC, IFC, the Sundance Channel and WE tv, and with a subsidiary of
The Madison Square Garden Company to carry Fuse; and
xAn affiliate of DISH Network conveyed its 20% membership interest in VOOM HD to Rainbow
Programming Holdings LLC, such that all of the cash settlement remains with the Company and the
AMC Parties.
In connection with the AMC Networks Distribution, CSC Holdings and AMC Networks and its
subsidiary, Rainbow Programming Holdings, LLC (the "AMC Parties") entered into an agreement (the
"VOOM Litigation Agreement") which provides that CSC Holdings and the AMC Parties will share
equally in the proceeds (including in the value of any non-cash consideration) of any settlement or final
judgment in the litigation with DISH Network that are received by subsidiaries of AMC Networks from
VOOM HD. The allocation of the settlement proceeds between the Company and the AMC Parties will
be determined pursuant to the VOOM Litigation Agreement.
The Company and AMC Networks agreed that, pending a determination of the allocation of the
settlement proceeds, $350,000 of the cash proceeds would be distributed to each of the Company and
AMC Networks. The Company received its $350,000 distribution in December 2012. The Company
recorded a pre-tax gain of $343,887 included in discontinued operations which represents the actual cash
received, net of the carrying amount of the Company's MVDDS licenses. Any additional proceeds
received by the Company as a result of the determination of the allocation of the VOOM litigation
settlement will be recognized when received.
The Company utilized $275,000 of the proceeds to make a prepayment on the B-2 extended loan facility
in December 2012.