Cablevision 2013 Annual Report Download - page 155

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COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Dollars in thousands, except per share amounts)
F-46
of debt of approximately $2,218, primarily representing the payments in excess of the principal amount
thereof and a write-off of the unamortized deferred financing costs and discounts associated with these
notes of approximately $810 for the year ended December 31, 2011.
Summary of Debt Maturities
Total amounts payable by the Company under its various debt obligations outstanding as of December 31,
2013, including notes payable, collateralized indebtedness (see Note 10), and capital leases, during the
next five years and thereafter, are as follows:
Years Ending December 31,
Cablevision(a)
CSC Holdings
2014 ............................................................................................................
$ 339,451
$ 311,620
2015 ............................................................................................................
651,538
651,538
2016 ............................................................................................................
581,484
581,484
2017 ............................................................................................................
1,021,396
121,396
2018 ............................................................................................................
2,294,376
1,544,376
Thereafter....................................................................................................
4,905,143
3,746,919
___________________________
(a) Excludes the Cablevision senior notes held by Newsday.
NOTE 10. DERIVATIVE CONTRACTS AND COLLATERALIZED INDEBTEDNESS
To manage interest rate risk, the Company has historically entered into 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 floating rate debt to limit the exposure against the risk of rising rates. The
Company does not enter into interest rate swap contracts for speculative or trading purposes.
The Company has entered into various transactions to limit the exposure against equity price risk on its
shares of Comcast Corporation ("Comcast") common stock. The Company has monetized all of its stock
holdings in Comcast Corporation through the execution of prepaid forward contracts, collateralized by an
equivalent amount of the respective underlying stock. At maturity, the contracts provide for the option to
deliver cash or shares of Comcast stock with a value determined by reference to the applicable stock price
at maturity. These contracts, at maturity, are expected to offset declines in the fair value of these
securities below the hedge price per share while allowing the Company to retain upside appreciation from
the hedge price per share to the relevant cap price.
The Company received cash proceeds upon execution of the prepaid forward contracts discussed above
which has been reflected as collateralized indebtedness in the accompanying consolidated balance sheets.
In addition, the Company separately accounts for the equity derivative component of the prepaid forward
contracts. These equity derivatives have not been designated as hedges for accounting purposes.
Therefore, the net fair values of the equity derivatives have been reflected in the accompanying
consolidated balance sheets as an asset or liability and the net increases or decreases in the fair value of
the equity derivative component of the prepaid forward contracts are included in gain (loss) on derivative
contracts in the accompanying consolidated statements of income.
All of the Company's monetization transactions are obligations of its wholly-owned subsidiaries that are
not part of the Restricted Group; however, CSC Holdings has provided guarantees of the subsidiaries'
ongoing contract payment expense obligations and potential payments that could be due as a result of an
early termination event (as defined in the agreements). If any one of these contracts were terminated prior
to its scheduled maturity date, the Company would be obligated to repay the fair value of the
collateralized indebtedness less the sum of the fair values of the underlying stock and equity collar,