

NOTE 11.	INCOME TAXES

Cablevision

Cablevision recorded income tax expense of $78,609 and $116,549 for the three and six months ended June 30, 2015, respectively, reflecting an effective tax rate of 51% and 47%, respectively. In April 2015, corporate income tax changes were enacted for both New York State and the City of New York. Such changes included a provision whereby investment income will be subject to higher taxes. Accordingly, in the second quarter of 2015, Cablevision recorded deferred tax expense of $16,334 to remeasure the deferred tax liability for the investment in Comcast common stock and associated derivative securities. Absent this item, the effective tax rate for the three and six months ended June 30, 2015 would have been 40% and 41%, respectively.

Cablevision recorded income tax expense of $61,848 and $34,909 for the three and six months ended June 30, 2014, respectively, reflecting an effective tax rate of 40% and 16%, respectively. In January 2014, the Internal Revenue Service informed the Company that the consolidated federal income tax returns for 2009 and 2010 were no longer under examination. Accordingly, in the first quarter of 2014, Cablevision recorded a tax benefit of $53,132 associated with the reversal of a noncurrent liability relating to an uncertain tax position. Absent this item, the effective tax rate for the six months ended June 30, 2014 would have been 41%.

As of June 30, 2015, Cablevision's federal net operating loss and tax credit carryforwards were approximately $425,000 and $58,000, respectively. Subsequent to the full utilization of such carryforwards, payments for income taxes are expected to increase significantly.

CSC Holdings

CSC Holdings recorded income tax expense of $108,193 and $175,735 for the three and six months ended June 30, 2015, respectively, reflecting an effective tax rate of 49% and 46%, respectively. In April 2015, corporate income tax changes were enacted for both New York State and the City of New York. Such changes included a provision whereby investment income will be subject to higher taxes. Accordingly, in the second quarter of 2015, CSC Holdings recorded deferred tax expense of $16,334 to remeasure the deferred tax liability for the investment in Comcast common stock and associated derivative securities. Absent this item, the effective tax rate for the three and six months ended June 30, 2015 would have been 41% and 42%, respectively.

CSC Holdings recorded income tax expense of $91,227 and $93,025 for the three and six months ended June 30, 2014, respectively, reflecting an effective tax rate of 41% and 26%, respectively. In January 2014, the Internal Revenue Service informed the Company that the consolidated federal income tax returns for 2009 and 2010 were no longer under examination. Accordingly, in the first quarter of 2014, CSC Holdings recorded a tax benefit of $53,132 associated with the reversal of a noncurrent liability relating to an uncertain tax position. Absent this item, the effective tax rate for the six months ended June 30, 2014 would have been 42%.