Cablevision 2012 Annual Report Download - page 96

(90)
On February 26, 2013, the Board of Directors of Cablevision declared a cash dividend of $0.15 per share
payable on April 3, 2013 to stockholders of record on both its CNYG Class A common stock and CNYG
Class B common stock as of March 15, 2013.
During the years ended December 31, 2012 and 2011, CSC Holdings made equity distribution payments
to Cablevision, its sole member, aggregating $671,809 and $929,947, respectively. These distribution
payments were funded from cash on hand and cash from operations. The proceeds were used to fund:
xCablevision's dividends paid;
xCablevision's interest and principal payments on its senior notes;
xCablevision's payments for the acquisition of treasury shares related to statutory minimum tax
withholding obligations upon the vesting of certain restricted shares; and
xthe 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. On June 30, 2011, Cablevision distributed to its stockholders all of the
outstanding common stock of AMC Networks.
Issuance of CSC Holdings Membership Interests
In September 2012, CSC Holdings issued 3,198,729 membership interests to Cablevision in connection
with Cablevision's $735,000 cash contribution to CSC Holdings. The contribution was funded by the net
proceeds from the issuance of the 2022 Notes in September 2012 discussed above.
Litigation Settlement
On October 21, 2012, the Company and AMC Networks settled the litigation with DISH Network relating
to VOOM HD. See Note 20 to our consolidated financial statements for a discussion of the terms of the
settlement.
Superstorm Sandy
On October 29, 2012, Superstorm Sandy made landfall in our New York metropolitan service area,
resulting in widespread power outages and service disruptions for almost 60% of our customers in this
service area, as well as damage to certain portions of our cable network. See Note 20 to our consolidated
financial statements for a discussion relating to the impact of this storm.
Managing our Interest Rate and Equity Price Risk
Interest Rate Risk
To manage interest rate risk, we have from time to time 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 our 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.