Cablevision 2013 Annual Report Download - page 172

COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Dollars in thousands, except per share amounts)
F-63
of grant. Total non-employee director restricted stock units outstanding as of December 31, 2013 were
406,216.
Previously, Cablevision had an employee stock plan ("1996 Employee Stock Plan") under which it was
authorized to grant incentive stock options, nonqualified stock options, restricted shares, restricted stock
units, stock appreciation rights, and bonus awards and a non-employee director stock plan ("1996 Non-
Employee Director Stock Plan") under which it was authorized to grant options and restricted stock units.
The 1996 Employee Stock Plan expired in February 2006 and the 1996 Non-Employee Director Stock
Plan expired in May 2006. Outstanding options issued pursuant to these plans have expiration dates
through 2015.
Options and stock appreciation rights have typically been scheduled to vest over three years in 33-1/3%
annual increments and expire 10 years from the grant date. Restricted shares have typically been subject
to three or four year cliff vesting. Performance based options granted in 2012 are scheduled to vest over a
two year period in 50% annual increments and expire 10 years from the date of grant. Performance based
restricted stock awards are subject to three year cliff vesting subject to achievement of performance
criteria. Cablevision does not have any stock appreciation rights outstanding at December 31, 2013.
Since share-based compensation expense is based on awards that are ultimately expected to vest, such
compensation (which includes options, restricted stock, and stock appreciation rights) for the years ended
December 31, 2013, 2012 and 2011 has been reduced for estimated forfeitures. Forfeitures were
estimated based primarily on historical experience.
The following table presents the share-based compensation expense (income) for continuing operations,
including expenses related to AMC Networks and Madison Square Garden share-based awards held by
Company employees, recognized by the Company as selling, general and administrative expense for the
years ended December 31, 2013, 2012 and 2011:
Years Ended December 31,
2013
2012 2011
Stock options (including performance based options) .......................
$17,560
$29,849 $ 3,931
Restricted shares..............................................................................
35,155
30,797 40,638
Share-based compensation related to equity classified awards .....
52,715
60,646 44,569
Stock appreciation rights .................................................................
-
59 (341)
Total share-based compensation ..................................................
$52,715
$60,705 $44,228
An income tax benefit of $21,682, $24,747 and $17,656 was recognized in continuing operations
resulting from share-based compensation expense for the years ended December 31, 2013, 2012 and
2011, respectively.
Cablevision uses the 'with-and-without' approach to determine the recognition and measurement of excess tax
benefits. Cash flows resulting from excess tax benefits are classified as cash flows from financing activities.
Excess tax benefits are realized tax benefits from tax deductions for options exercised and restricted shares
issued in excess of the deferred tax asset attributable to share-based compensation expense for such awards.
Cablevision realized an excess tax benefit of $1,280 for the year ended December 31, 2013 and did not
realize excess tax benefit for the years ended December 31, 2012 and 2011. CSC Holdings recorded an
excess tax benefit of $46,164, $61,434 and $11,196 for the years ended December 31, 2013, 2012 and 2011,
respectively.