Cablevision 2013 Annual Report Download - page 54

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Legal Contingencies
The Company is party to various lawsuits and proceedings and is subject to other claims that arise in the
ordinary course of business, some involving claims for substantial damages. The Company records an
estimated liability for these claims when management believes the loss from such matters is probable and
reasonably estimable. The Company reassesses the risk of loss as new information becomes available and
adjusts liabilities as necessary. The actual cost of resolving a claim may be substantially different from
the amount of the liability recorded. Refer to Note 16 to our consolidated financial statements included in
this Annual Report on Form 10-K for a discussion of our legal contingencies.
Certain Transactions
The following transactions occurred during the periods covered by this Management's Discussion and
Analysis of Financial Condition and Results of Operations:
2013 Transactions
On June 27, 2013, we completed the Clearview Sale and on July 1, 2013, we completed the Bresnan Sale.
As a result, 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.
2011 Transactions
On June 30, 2011, we completed 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 the Company's consolidated financial
statements as discontinued operations for all periods presented.
Litigation Settlement
In June 2011, in connection with the AMC Networks Distribution, CSC Holdings and AMC Networks
and its subsidiary, Rainbow Programming Holdings, LLC (the "AMC Parties") entered into an agreement
(the "VOOM Litigation Agreement") which provided that CSC Holdings and the AMC Parties would
share equally in the proceeds (including in the value of any non-cash consideration) of any settlement or
final judgment in the litigation with DISH Network, LLC ("DISH Network") that were received by
subsidiaries of AMC Networks from VOOM HD Holdings LLC ("VOOM HD").
In October 2012, we and AMC Networks settled the litigation with DISH Network. Pursuant to the
settlement agreement, DISH Network paid $700,000 to a joint escrow account for the benefit of us and
AMC Networks. On April 8, 2013, we and AMC Networks reached agreement, pursuant to the VOOM
Litigation Agreement, on the final allocation of the proceeds of the settlement. The parties agreed that
(a) we would be allocated a total of $525,000 of the cash settlement payment; and (b) AMC Networks
would retain $175,000 of the cash settlement payment (in addition to the long-term affiliation agreements
entered into with DISH Network as part of the settlement). The final allocation was approved by
independent committees of the Boards of Directors of the Company and AMC Networks. On April 9,
2013, we received $175,000 from AMC Networks (in addition to the $350,000 initially distributed to us
from the joint escrow account in December 2012). The proceeds of $175,000 and $350,000 were
recorded as a gain in discontinued operations for the years ended December 31, 2013 and 2012,
respectively.