Cablevision 2012 Annual Report Download - page 56

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the provisioning process for new digital product offerings are capitalized. The departmental activities
supporting the connection process are tracked through specific metrics, and the portion of departmental
costs that is capitalized is determined through a time weighted activity allocation of costs incurred based
on time studies used to estimate the average time spent on each activity. New connections are amortized
over the estimated useful lives of 5 years or 12 years for residence wiring and feeder cable to the home,
respectively. The portion of departmental costs related to reconnection, programming service up- and
down- grade, repair and maintenance, and disconnection activities are expensed as incurred.
The estimated useful lives assigned to our property, plant and equipment are reviewed on an annual basis
or more frequently if circumstances warrant and such lives are revised to the extent necessary due to
changing facts and circumstances. Any changes in estimated useful lives are reflected prospectively.
Refer to Note 2 to our consolidated financial statements included in this Annual Report on Form 10-K for
a discussion of our accounting policies with respect to the policies discussed above and other items.
Legal Contingencies
The Company is party to various lawsuits and proceedings and is subject to other claims that arise in the
ordinary course of business, some involving claims for substantial damages. The Company records an
estimated liability for these claims when management believes the loss from such matters is probable and
reasonably estimable. The Company reassesses the risk of loss as new information becomes available and
adjusts liabilities as necessary. The actual cost of resolving a claim may be substantially different from
the amount of the liability recorded. Refer to Note 17 to our consolidated financial statements included in
this Annual Report on Form 10-K for a discussion of our legal contingencies.
Certain Transactions
The following transactions occurred during the periods covered by this Management's Discussion and
Analysis of Financial Condition and Results of Operations:
2011 Transactions
On June 30, 2011, we completed the AMC Networks Distribution. As a result of the AMC Networks
Distribution, we no longer consolidate the financial results of AMC Networks for the purpose of our own
financial reporting and the historical financial results of AMC Networks have been reflected in the
Company's consolidated financial statements as discontinued operations for all periods presented through
the AMC Networks Distribution date.
2010 Transactions
On February 9, 2010, we completed the MSG Distribution. As a result of the MSG Distribution, we no
longer consolidate the financial results of Madison Square Garden for the purpose of our own financial
reporting and the historical financial results of Madison Square Garden have been reflected in the
Company's consolidated financial statements as discontinued operations for all periods presented through
the MSG Distribution date.
On December 14, 2010, we completed the acquisition of Bresnan Cable for a purchase price of
$1,364,276. The acquisition was financed using an equity contribution by CSC Holdings of $395,000
(which CSC Holdings borrowed under its revolving loan facility) and debt consisting of an undrawn
$75,000 revolving loan facility, a $765,000 term loan facility and $250,000 8.0% senior notes due 2018.