DERIVATIVE CONTRACTS AND COLLATERALIZED INDEBTEDNESS

3 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE CONTRACTS AND COLLATERALIZED INDEBTEDNESS

NOTE 7. DERIVATIVE CONTRACTS AND COLLATERALIZED INDEBTEDNESS

The Company has entered into various transactions to limit the exposure against equity price risk on its shares of Comcast Corporation ("Comcast") common stock.  The Company has monetized all of its stock holdings in Comcast through the execution of prepaid forward contracts, collateralized by an equivalent amount of the respective underlying stock.  At maturity, the contracts provide for the option to deliver cash or shares of Comcast stock with a value determined by reference to the applicable stock price at maturity.  These contracts, at maturity, are expected to offset declines in the fair value of these securities below the hedge price per share while allowing the Company to retain upside appreciation from the hedge price per share to the relevant cap price.

The following represents the location of the assets and liabilities associated with the Company's derivative instruments within the condensed consolidated balance sheets at March 31, 2015 and December 31, 2014:

		Asset Derivatives				Liability Derivatives
Derivatives Not Designated as Hedging Instruments	Balance Sheet Location	Fair Value at March 31, 2015		Fair Value at December 31, 2014		Fair Value at March 31, 2015		Fair Value at December 31, 2014
Prepaid forward contracts	Current derivative contracts	$	—	$	—	$	53,249	$	93,010
Prepaid forward contracts	Long-term derivative contracts	25,497		7,317		5,093		9,207
Total derivative contracts		$	25,497	$	7,317	$	58,342	$	102,217

These prepaid forward contracts are not designated as hedging instruments for accounting purposes and the related gain of $46,166 and $38,649 for the three months ended March 31, 2015 and 2014, respectively, has been reflected in gain on equity derivative contracts, net in the accompanying condensed consolidated statements of income.

Settlements of Collateralized Indebtedness

The following table summarizes the settlement of the Company's collateralized indebtedness relating to Comcast shares that were settled by delivering cash equal to the collateralized loan value, net of the value of the related equity derivative contracts for the three months ended March 31, 2015.  The cash was obtained from the proceeds of new monetization contracts covering an equivalent number of Comcast shares.  The terms of the new contracts allow the Company to retain upside participation in Comcast shares up to each respective contract's upside appreciation limit with downside exposure limited to the respective hedge price.

Number of shares	2,668,875
Collateralized indebtedness settled	$	(103,227	)
Derivative contracts settled	(15,889		)
	(119,116		)
Proceeds from new monetization contracts	150,084
Net cash receipt	$	30,968

In April 2015, the Company settled collateralized indebtedness relating to 2,732,184 Comcast shares by delivering cash equal to the collateralized loan value obtained from the proceeds of a new monetization contract covering an equivalent number of Comcast shares. Accordingly, the consolidated balance sheets of Cablevision and CSC Holdings as of March 31, 2015 reflect the reclassification of $154,286 of investment securities pledged as collateral from a current asset to a long-term asset and $112,869 of collateralized indebtedness from a current liability to a long-term liability.