Cablevision 2011 Annual Report Download - page 152

COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Dollars in thousands, except per share amounts)
I-28
Derivative Financial Instruments
The Company accounts for derivative financial instruments as either assets or liabilities measured at fair
value. The Company uses derivative instruments to manage its exposure to market risks from changes in
certain equity prices and interest rates and does not hold or issue derivative instruments for speculative or
trading purposes. These derivative instruments are not designated as hedges, and changes in the fair
values of these derivatives are recognized in earnings as gains (losses) on derivative contracts.
Commitments and Contingencies
Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other
sources are recorded when the Company believes it is probable that a liability has been incurred and the
amount of the contingency can be reasonably estimated.
Common Stock of Cablevision
Each holder of CNYG Class A common stock has one vote per share while holders of CNYG Class B
common stock have ten votes per share. CNYG Class B shares can be converted to CNYG Class A
common stock at anytime with a conversion ratio of one CNYG Class A common share for one CNYG
Class B common share. The CNYG Class A stockholders are entitled to elect 25% of Cablevision's
Board of Directors. CNYG Class B stockholders have the right to elect the remaining members of
Cablevision's Board of Directors. In addition, CNYG Class B stockholders are parties to an agreement
which has the effect of causing the voting power of these CNYG Class B stockholders to be cast as a
block.
Shares Outstanding
Class A
Common Stock
Class B
Common Stock
Balance at December 31, 2008 ........................................................................... 242,258,240 54,873,351
Conversion of CNYG Class B common stock to CNYG Class A common
stock ................................................................................................................ 519,100 (519,100)
Employee and non-employee director stock transactions* ................................. 4,890,803 -
Balance at December 31, 2009 ........................................................................... 247,668,143 54,354,251
Conversion of CNYG Class B common stock to CNYG Class A common
stock ................................................................................................................ 206,028 (206,028)
Employee and non-employee director stock transactions* ................................. 4,006,712 -
Share repurchases (see Note 21) ......................................................................... (10,825,600) -
Balance at December 31, 2010 ........................................................................... 241,055,283 54,148,223
Conversion of CNYG Class B common stock to CNYG Class A common
stock 10,550 (10,550)
Employee and non-employee director stock transactions* ................................. (35,172) -
Share repurchases (see Note 21) ......................................................................... (20,860,400) -
Balance at December 31, 2011 ........................................................................... 220,170,261 54,137,673
___________________
* Primarily includes issuances of common stock in connection with employee and non-employee director exercises and
restricted shares granted to employees, offset by shares acquired by the Company in connection with the fulfillment
of employees' statutory tax withholding obligation for applicable income and other employment taxes and forfeited
employee restricted shares.