Cablevision 2014 Annual Report Download - page 73

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Other Events
Common Stock Repurchases
Cablevision's Board of Directors has authorized the repurchase of up to a total of $1,500,000 CNYG Class A common stock.
During the years ended December 31, 2014 and 2013, Cablevision did not repurchase any shares. Since inception through
December 31, 2014, Cablevision repurchased an aggregate of 45,282,687 shares for a total cost of $1,044,678, including
commissions of $453. These acquired shares have been classified as treasury stock in Cablevision's consolidated balance sheets.
As of December 31, 2014, Cablevision had $455,322 of availability remaining under its stock repurchase authorizations.
Dividends
Cablevision paid dividends aggregating $160,545 in 2014, including accrued dividends on vested restricted shares of $1,548,
primarily from the proceeds of equity distribution payments from CSC Holdings. In addition, as of December 31, 2014, up to
approximately $8,319 will be paid when, and if, restrictions lapse on restricted shares outstanding.
During the year ended December 31, 2014, CSC Holdings made cash equity distribution cash payments to Cablevision aggregating
$396,382. These distribution payments were funded from cash on hand. The proceeds were used to fund:
• Cablevision's dividends paid;
• Cablevision's interest on its senior notes;
• Cablevision's repurchases of certain outstanding senior notes; and
• Cablevision's payments for the acquisition of treasury shares related to statutory minimum tax withholding obligations
upon the vesting of certain restricted shares;
Cablevision's and CSC Holdings' indentures and the CSC Holdings credit agreement restrict the amount of dividends and
distributions in respect of any equity interest that can be made.
On February 24, 2015, the Board of Directors of Cablevision declared a cash dividend of $0.15 per share payable on April 3, 2015
to stockholders of record on both its CNYG Class A common stock and CNYG Class B common stock as of March 16, 2015.
Managing our Interest Rate and Equity Price Risk
Interest Rate Risk
Interest rate risk is primarily a result of exposures to changes in the level, slope and curvature of the yield curve, the volatility of
interest rates and credit spreads. Our exposure to interest rate risk results from changes in short-term interest rates. Interest rate
risk exists primarily with respect to our credit facility debt, which bears interest at variable rates. The carrying value of our
outstanding credit facility debt at December 31, 2014 amounted to $2,780,649. To manage interest rate risk, we have from time
to time entered into various interest rate swap contracts to adjust the proportion of total debt that is subject to variable interest
rates. Such contracts effectively fixed the borrowing rates on our floating rate debt to limit the exposure against the risk of rising
rates. We did not have any interest swap contracts in place at December 31, 2014. We do not enter into interest rate swap contracts
for speculative or trading purposes. We monitor the financial institutions that are counterparties to our interest rate swap contracts
and we only enter into interest rate swap contracts with financial institutions that are rated investment grade. We diversify our
swap contracts among various counterparties to mitigate exposure to any single financial institution. See discussion above for
further details of our credit facility debt and See "Item 7A. Quantitative and Qualitative Disclosures About Market Risk" below
for a discussion regarding the fair value of our debt.
Equity Price Risk
We have entered into derivative contracts to hedge our equity price risk and monetize the value of our shares of common stock of
Comcast. These contracts, at maturity, are expected to offset declines in the fair value of these securities below the hedge price
per share while allowing us to retain upside appreciation from the hedge price per share to the relevant cap price. If any one of
these contracts is terminated prior to its scheduled maturity date due to the occurrence of an event specified in the contract, we
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, calculated at the termination date. As of December 31, 2014, we did not have an early termination shortfall
relating to any of these contracts. The underlying stock and the equity collars are carried at fair value on our consolidated balance
sheets and the collateralized indebtedness is carried at its principal value. See "Item 7A. Quantitative and Qualitative Disclosures
About Market Risk" for information on how we participate in changes in the market price of the stocks underlying these derivative
contracts.