Cablevision 2014 Annual Report Download - page 43

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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 was recorded
as a gain in discontinued operations for the years ended December 31, 2013 and 2012, respectively.
Non-GAAP Financial Measures
We define adjusted operating cash flow ("AOCF"), which is a non-GAAP financial measure, as operating income (loss) before
depreciation and amortization (including impairments), excluding share-based compensation expense or benefit and restructuring
expense or credits. Because it is based upon operating income (loss), AOCF also excludes interest expense (including cash interest
expense) and other non-operating income and expense items. We believe that the exclusion of share-based compensation expense
allows investors to better track the performance of the various operating units of our business without regard to expense associated
with awards that are not expected to be made in cash, in the case of of restricted shares, restricted stock units and stock options,
and the distortive effects of fluctuating stock prices in the case of stock appreciation rights.
We present AOCF as a measure of our ability to service our debt and make continuing investments, including in our capital
infrastructure. We believe AOCF is an appropriate measure for evaluating the operating performance of our business segments
and the Company on a consolidated basis. AOCF and similar measures with similar titles are common performance measures
used by investors, analysts and peers to compare performance in our industry. Internally, we use net revenues and AOCF measures
as the most important indicators of our business performance, and evaluate management's effectiveness with specific reference to
these indicators. AOCF should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss),
cash flows from operating activities, and other measures of performance and/or liquidity presented in accordance with U.S. generally
accepted accounting principles ("GAAP"). Since AOCF is not a measure of performance calculated in accordance with GAAP,
this measure may not be comparable to similar measures with similar titles used by other companies. Each presentation of AOCF
in this Annual Report on Form 10-K includes a reconciliation of AOCF to operating income (loss).