Cablevision 2013 Annual Report Download - page 136

COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Dollars in thousands, except per share amounts)
F-27
Cash and Cash Equivalents
The Company's cash investments are placed with money market funds and financial institutions that are
investment grade as rated by Standard & Poor's and Moody's Investors Service. The Company selects
money market funds that predominantly invest in marketable, direct obligations issued or guaranteed by
the United States government or its agencies, commercial paper, fully collateralized repurchase
agreements, certificates of deposit, and time deposits.
The Company considers the balance of its investment in funds that substantially hold securities that
mature within three months or less from the date the fund purchases these securities to be cash
equivalents. The carrying amount of cash and cash equivalents either approximates fair value due to the
short-term maturity of these instruments or are at fair value.
Accounts Receivable
The Company periodically assesses the adequacy of valuation allowances for uncollectible accounts
receivable by evaluating the collectability of outstanding receivables and general factors such as historical
collection experience, length of time individual receivables are past due, and the economic and
competitive environment.
Investments
Investment securities and investment securities pledged as collateral are classified as trading securities
and are stated at fair value with realized and unrealized holding gains and losses included in net income.
Long-Lived Assets and Amortizable Intangible Assets
Property, plant and equipment, including construction materials, are carried at cost, and include all direct
costs and certain indirect costs associated with the construction of cable television transmission and
distribution systems, and the costs of new product and subscriber installations. Equipment under capital
leases is recorded at the present value of the total minimum lease payments. Depreciation on equipment
is calculated on the straight-line basis over the estimated useful lives of the assets or, with respect to
equipment under capital leases and leasehold improvements, amortized over the shorter of the lease term
or the assets' useful lives and reported in depreciation and amortization (including impairments) in the
consolidated statements of income.
The Company capitalizes certain internal and external costs incurred to acquire or develop internal-use
software. Capitalized software costs are amortized over the estimated useful life of the software and
reported in depreciation and amortization.
Customer relationships, advertiser relationships, and other intangibles established in connection with
acquisitions that are finite-lived are amortized in a manner that reflects the pattern in which the projected
net cash inflows to the Company are expected to occur, such as the sum of the years' digits method, or
when such pattern does not exist, using the straight-line basis over their respective estimated useful lives.
The Company reviews its long-lived assets (property, plant and equipment, and intangible assets subject
to amortization that arose from acquisitions) for impairment whenever events or circumstances indicate
that the carrying amount of an asset may not be recoverable. If the sum of the expected cash flows,
undiscounted and without interest, is less than the carrying amount of the asset, an impairment loss is
recognized as the amount by which the carrying amount of the asset exceeds its fair value.