Cablevision 2013 Annual Report Download - page 46

(40)
CABLEVISION SYSTEMS CORPORATION
All dollar amounts, except per customer, per unit, and per share data, included in the following discussion
under this Item 7, are presented in thousands.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Summary
Our future performance is dependent, to a large extent, on general economic conditions including capital
and credit market conditions, the impact of direct competition, our ability to manage our businesses
effectively, and our relative strength and leverage in the marketplace, both with suppliers and customers.
See also "Item 1A. Risk Factors".
Capital and credit market disruptions often cause broader economic downturns, which may lead to lower
demand for our products, such as cable television services, as well as lower levels of television and
newspaper advertising, and increased incidence of customers' inability to pay for the services we provide.
We have experienced some of the effects of the recent economic downturn. Events such as these may
adversely impact our results of operations, cash flows and financial position.
On June 27, 2013, the Company completed the sale of substantially all of its Clearview Cinemas' theaters
("Clearview Cinemas") to Bow Tie Cinemas pursuant to the asset purchase agreement between the two
parties entered into in April 2013 (the "Clearview Sale") (see Note 1 to our consolidated financial
statements). On July 1, 2013, the Company completed the sale of its Bresnan Broadband Holdings, LLC
subsidiary ("Bresnan Cable") for $1,625,000 in cash, subject to certain adjustments, including a reduction
for certain funded indebtedness of Bresnan Cable (the "Bresnan Sale"), to Charter Communications
Operating, LLC ("Charter") pursuant to the purchase agreement entered into between CSC Holdings and
Charter in February 2013 (see Note 1 to our consolidated financial statements). Bresnan Cable includes
all of our previously owned cable television systems in Montana, Wyoming, Colorado and Utah,
previously included in the Company's Telecommunications Services segment. Effective as of the closing
dates of the Clearview Sale and the Bresnan Sale, we no longer consolidate the financial results of
Clearview Cinemas and Bresnan Cable. Accordingly, the historical financial results of Clearview
Cinemas and Bresnan Cable have been reflected in our consolidated financial statements as discontinued
operations for all periods presented.
On October 29, 2012, Superstorm Sandy made landfall in the New York metropolitan area, resulting in
widespread power outages and service disruptions for almost 60% of our customers, as well as damage to
certain portions of our cable network. In the fourth quarter 2012, we recorded customer service credits
and net incremental costs of approximately $116,300, including capital expenditures. In the first quarter
of 2013, we incurred an additional $7,600, primarily for repairs and maintenance, to complete our
remediation. See discussion below in "Business Segments Results - Cable" for a summary of service
outage credits, incremental costs and capital expenditures related to Superstorm Sandy for the Cable
segment.
On June 30, 2011, we distributed to our stockholders all of the outstanding common stock of AMC
Networks Inc., a company which consists principally of national programming networks, including AMC,
WE tv, IFC and Sundance Channel, previously owned and operated by our Rainbow segment (the "AMC
Networks Distribution").
As a result of the AMC Networks Distribution, we no longer consolidate the financial results of AMC
Networks. Accordingly, the historical financial results of AMC Networks have been reflected in our
consolidated financial statements as discontinued operations for all periods presented.