

NOTE 11.	EQUITY PLANS

Cablevision's Equity Plans

Stock Option Award Activity

In March 2015, Cablevision granted options that are scheduled to vest over three years in 33 1/3% annual increments and expire 10 years from the date of grant. Cablevision calculated the fair value of the option award on the date of grant using the Black-Scholes option pricing model. Cablevision's computation of expected life was determined based on historical data for similar awards. The interest rate for periods within the contractual life of the stock options is based on interest yields for U.S. Treasury instruments in effect at the time of grant. Cablevision's computation of expected volatility is based on historical volatility of its common stock.

The following assumptions were used to calculate the fair value of the stock options award granted in the first quarter of 2015:



Risk-free interest rate	1.82		%
Expected life (in years)	8 years
Dividend yield	3.63		%
Volatility	39.98		%
Grant date fair value	$	5.45

The following table summarizes activity relating to Company employees who held Cablevision stock options for the three months ended March 31, 2015:



	Shares Under Option
	Time Vesting Options		Performance Based Vesting Options		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (a)
Balance, December 31, 2014	5,097,666		7,633,500		$	14.41	7.17	$	79,347
Granted	2,000,000		—		19.17
Exercised	(138,000	)	(51,500	)	12.74
Balance, March 31, 2015	6,959,666		7,582,000		$	15.08	7.38	$	48,657
Options exercisable at March 31, 2015	959,666		7,582,000		$	13.79	6.29	$	38,697
Options expected to vest in the future	6,000,000		—		$	16.93	8.93	$	9,960


(a)	The aggregate intrinsic value is calculated as the difference between (i) the exercise price of the underlying award and (ii) the quoted price of CNYG Class A common stock on March 31, 2015 or December 31, 2014, as indicated, and March 31, 2015 in the case of options exercisable and options expected to vest in the future.

In addition, as of March 31, 2015, AMC Networks Inc. ("AMC Networks") and The Madison Square Garden Company ("Madison Square Garden") employees held a total of 135,066 Cablevision stock options. These stock options are not expensed by the Company; however, such stock options may have a dilutive effect on net income per share attributable to Cablevision stockholders.

Restricted Stock Award Activity

The following table summarizes activity relating to Company employees who held Cablevision restricted shares for the three months ended March 31, 2015:



	Number of Restricted Shares		Number of Performance Based Restricted Shares		Weighted Average Fair Value Per Share at Date of Grant
Unvested award balance, December 31, 2014	5,314,870		2,035,300		$	15.46
Granted	1,703,130		584,400		19.17
Vested	(1,549,287	)	(739,600	)	14.44
Awards forfeited	(168,340	)	—		15.86
Unvested award balance, March 31, 2015	5,300,373		1,880,100		16.95

During the three months ended March 31, 2015, 2,288,887 Cablevision restricted shares issued to employees of the Company vested. To fulfill the employees' statutory minimum tax withholding obligations for the applicable income and other employment taxes, 969,693 of these shares, with an aggregate value of $18,101, were surrendered to the Company. These acquired shares have been classified as treasury stock.

Performance Based Restricted Stock Units

In March 2015, Cablevision granted 1,816,660 performance based restricted stock units ("PSUs") to certain employees that are scheduled to cliff vest after three years subject to achievement of specified performance criteria. The PSUs entitle the employee to shares of CNYG common stock up to 150% of the number of PSUs granted depending on the level of achievement of the specified performance criteria. If the minimum performance threshold is not met, no shares will be issued. Accrued dividends are paid to the extent that a PSU vests and the related stock is issued.

The Company recognizes compensation expense for PSUs on a straight-line basis over the vesting period based on the estimated number of shares of CNYG common stock expected to be issued.