Cablevision 2011 Annual Report Download - page 209

COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Dollars in thousands, except per share amounts)
I-85
believes that it has substantial defenses to such claim and will continue to vigorously contest the Notice.
No provision has been made for such claim in the accompanying consolidated financial statements.
The Montana Department of Revenue ("MT DOR") generally assesses property taxes on cable companies
at 3% and on telephone companies at 6%. Historically, Bresnan Cable's cable and telephone businesses
have been taxed separately by the MT DOR. In 2010, MT DOR assessed Bresnan Cable as a single
telephone business and retroactively assessed it as such for 2007 through 2009. Bresnan Cable filed a
declaratory judgment action against the MT DOR in Montana State Court challenging its property tax
classifications for 2007 through 2010. Under Montana law, a taxpayer must first pay a current assessment
of disputed property tax in order to challenge such assessment. In accordance with that law, Bresnan
Cable has paid substantially all of its 2010 property tax assessment under protest, which the Company
expensed when the payments were made, and is seeking a refund of the protested amount. No provision
for additional tax, which amount could be up to approximately $15,000, including interest, as a single
telephone business for 2007 through 2009 has been made. On September 26, 2011, the Court
granted Bresnan Cable's summary judgment motion seeking to vacate the MT DOR's retroactive tax
assessments for the years 2007, 2008, and 2009. The MT DOR cannot appeal this ruling until there is a
final judgment in the case. The MT DOR's assessment for 2010 was the subject of a trial which took
place the week of October 24, 2011, in Billings, Montana. The Court's decision is pending. In the fourth
quarter of 2011, Bresnan Cable paid the first half of the 2011 protest assessment (which totals
approximately $11,000 for full year 2011), which is included in technical and operating expense. Bresnan
Cable expects to pay and expense the second half of the 2011 protest assessment ($5,500) in the second
quarter of 2012. The Company believes it has substantial grounds for challenging the legal validity of
MT DOR's assessments and intends to vigorously assert such challenges.
Other Legal Matters
On April 15, 2011, Thomas C. Dolan, a director and Executive Vice President, Strategy and
Development, in the Office of the Chairman at Cablevision, filed a lawsuit against Cablevision and
Rainbow Media Holdings in New York Supreme Court. The lawsuit raises compensation-related claims
(seeking approximately $11,000) related to events in 2005. The matter is being handled under the
direction of an independent committee of the Board of Directors of Cablevision. Based on the Company's
assessment of this possible loss contingency, no provision has been made for this matter in the
accompanying condensed consolidated financial statements.
In addition to the matters discussed above, the Company is party to various lawsuits, some involving
claims for substantial damages. Although the outcome of these other matters cannot be predicted with
certainty and the impact of the final resolution of these other matters on the Company's results of
operations in a particular subsequent reporting period is not known, management does not believe that the
resolution of these other lawsuits will have a material adverse effect on the financial position of the
Company or the ability of the Company to meet its financial obligations as they become due.
NOTE 19. SEGMENT INFORMATION
The Company classifies its operations into two reportable segments: (1) Telecommunications Services,
and (2) Other, consisting principally of (i) Newsday, which includes the Newsday daily newspaper and
related assets, (ii) a motion picture theatre business, Clearview Cinemas, (iii) the News 12 Networks,
(iv) the MSG Varsity network, (v) Cablevision Media Sales, a cable television advertising company, and
(vi) certain other businesses and unallocated corporate costs.