Cablevision 2012 Annual Report Download - page 31

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$1,075.3 million, $814.8 million and $823.2 million, in 2012, 2011 and 2010, respectively, and primarily
include payments for customer premises equipment, such as new digital video cable boxes and modems,
as well as infrastructure and capital expenditures related to our cable and Lightpath telecommunications
networks, in addition to the capital requirements of our other businesses. Historically, we have made
substantial investments in the development of new and innovative programming options and other service
offerings for our customers as a way of differentiating ourselves from our competitors. We expect these
capital expenditures to continue to be significant as we further enhance our service offerings. We have
substantial future capital commitments in the form of long-term contracts that require substantial
payments over a period of time. We will not be able to generate sufficient cash internally to fund
anticipated capital expenditures, meet these obligations and repay our indebtedness at maturity.
Accordingly, we will have to do one or more of the following:
xrefinance existing obligations to extend maturities,
xraise additional capital, through debt or equity issuances or both,
xcancel or scale back current and future spending programs, or
xsell assets or interests in one or more of our businesses.
However, you should not assume that we will be able to refinance existing obligations or raise any
required additional capital or to do so on favorable terms. Borrowing costs related to future capital
raising activities may be significantly higher than our current borrowing costs and we may not be able to
raise additional capital on favorable terms, or at all, if unsettled conditions in financial markets continue
to exist. If we are unable to pursue our current and future spending programs, we may be forced to cancel
or scale back those programs. Our choice of which spending programs to cancel or reduce may be
limited. Failure to successfully pursue our capital expenditure and other spending plans could materially
and adversely affect our ability to compete effectively. It is possible that in the future we may also
engage in extraordinary transactions and such transactions could result in the incurrence of substantial
additional indebtedness.
Our business is subject to extensive government regulation and changes in current or future laws or
regulations could restrict our ability to operate our business as we currently do.
Our cable television and other telecommunications businesses are heavily regulated and operate pursuant
to detailed statutory and regulatory requirements at the federal, state and local level. See "Item 1.
Business - Regulation". In certain of our service areas, state or local franchising authorities regulate the
basic service tier rates we may charge our customers for certain of our video services in accordance with
FCC rules. The FCC and state and local governments also regulate us in other ways that affect the daily
conduct of our video delivery and video programming businesses, our voice business and our high-speed
Internet access business. In addition, our businesses are dependent upon governmental authorizations to
carry on their operations. See discussion under "Item 1. Business -Regulation".
Legislative enactments, court actions, and federal, state, and local regulatory proceedings frequently
modify the terms under which we offer our services and operate. The results of these legislative, judicial
and administrative actions may materially adversely affect our business or results of operations. New
requirements giving third parties access to our network or other assets, for example, could materially
affect our ability to compete. Changes to regulations from which we benefit and on which we depend to
run our businesses also could materially affect our operations. Any action with respect to these or other
matters by the courts, Congress, the FCC, the states of New York, New Jersey, Connecticut, Utah,
Colorado, Wyoming, or Montana, or concerted action by local regulators, the likelihood or extent of
which we cannot predict, could have a material adverse effect on us.