FAIR VALUE MEASUREMENT

3 Months Ended

Mar. 31, 2016

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity's pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels:


•	Level I - Quoted prices for identical instruments in active markets.


•	Level II - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.


•	Level III - Instruments whose significant value drivers are unobservable.

The following table presents for each of these hierarchy levels, the Company's financial assets and financial liabilities that are measured at fair value on a recurring basis at March 31, 2016 and December 31, 2015:



	At March 31, 2016
	Level I		Level II		Level III		Total
Assets:
Money market funds	$	853,138	$	—	$	—	$	853,138
Investment securities	152		—		—		152
Investment securities pledged as collateral	1,311,853		—		—		1,311,853
Prepaid forward contracts	—		38,768		—		38,768
Liabilities:
Prepaid forward contracts	—		7,078		—		7,078



	At December 31, 2015
	Level I		Level II		Level III		Total
Assets:
Money market funds	$	922,765	$	—	$	—	$	922,765
Investment securities	130		—		—		130
Investment securities pledged as collateral	1,211,982		—		—		1,211,982
Prepaid forward contracts	—		82,408		—		82,408
Liabilities:
Prepaid forward contracts	—		2,706		—		2,706

The Company's cash equivalents, investment securities and investment securities pledged as collateral are classified within Level I of the fair value hierarchy because they are valued using quoted market prices.

The Company's prepaid forward contracts reflected as derivative contracts and liabilities under derivative contracts in the Company's balance sheets are valued using market-based inputs to valuation models. These valuation models require a variety of inputs, including contractual terms, market prices, yield curves, and measures of volatility. When appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads and credit risk considerations. Such adjustments are generally based on available market evidence. Since model inputs can generally be verified and do not involve significant management judgment, the Company has concluded that these instruments should be classified within Level II of the fair value hierarchy.

The Company considers the impact of credit risk when measuring the fair value of its derivative asset and/or liability positions, as applicable.

The Company's assets measured at fair value on a nonrecurring basis include long-lived assets, indefinite-lived cable television franchises, trademarks, other indefinite-lived intangible assets and goodwill. During the quarter ended March 31, 2016, the Company performed its annual impairment test of goodwill, indefinite-lived cable television franchises, trademarks and other indefinite-lived intangible assets and there were no impairment charges recorded.

Fair Value of Financial Instruments

The following methods and assumptions were used to estimate fair value of each class of financial instruments for which it is practicable to estimate:

Credit Facility Debt, Collateralized Indebtedness, Senior Notes and Debentures and Notes Payable

The fair values of each of the Company's debt instruments are based on quoted market prices for the same or similar issues or on the current rates offered to the Company for instruments of the same remaining maturities. The fair value of notes payable is based primarily on the present value of the remaining payments discounted at the borrowing cost.

The carrying values, estimated fair values, and classification under the fair value hierarchy of the Company's financial instruments, excluding those that are carried at fair value in the accompanying condensed consolidated balance sheets, are summarized as follows:



		March 31, 2016
	Fair Value Hierarchy	Carrying Amount (c)		Estimated Fair Value
CSC Holdings notes receivable:
Cablevision senior notes held by Newsday Holdings LLC (a)	Level II	$	611,455	$	616,020
Debt instruments:
Credit facility debt (b)	Level II	$	2,500,453	$	2,510,701
Collateralized indebtedness	Level II	1,191,324		1,175,291
Senior notes and debentures	Level II	3,034,301		2,996,440
Notes payable	Level II	10,170		10,130
CSC Holdings total debt instruments		6,736,248		6,692,562
Cablevision senior notes	Level II	2,771,096		2,760,168
Cablevision total debt instruments		$	9,507,344	$	9,452,730



		December 31, 2015
	Fair Value Hierarchy	Carrying Amount (c)		Estimated Fair Value
CSC Holdings notes receivable:
Cablevision senior notes held by Newsday Holdings LLC (a)	Level II	$	611,455	$	616,020
Debt instruments:
Credit facility debt (b)	Level II	$	2,514,454	$	2,525,654
Collateralized indebtedness	Level II	1,191,324		1,176,396
Senior notes and debentures	Level II	3,032,252		2,996,440
Notes payable	Level II	14,544		14,483
CSC Holdings total debt instruments		6,752,574		6,712,973
Cablevision senior notes	Level II	2,768,759		2,760,168
Cablevision total debt instruments		$	9,521,333	$	9,473,141


(a)	These notes are eliminated at the consolidated Cablevision level.


(b)	The principal amount of the Company's credit facility debt, which bears interest at variable rates, approximates its fair value.


(c)	Amounts are net of unamortized deferred financing costs and discounts.

Fair value estimates related to the Company's debt instruments and senior notes receivable presented above are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgments and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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