EQUITY PLANS

3 Months Ended

Mar. 31, 2013

NOTE 12.

EQUITY PLANS

Cablevision's Equity Plans

Stock Option Award Activity

In the first quarter of 2013, Cablevision granted options that are scheduled to cliff vest in three years 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 the simplified method (the average of the vesting period and option term) due to the Company's lack of recent historical data for similar awards. Cablevision has not, in its recent history granted options with similar terms. Additionally, these options were issued subsequent to a change in Cablevision's structure in connection with the distribution of AMC Networks in June 2011 (the "AMC Networks Distribution") and the distribution of Madison Square Garden in February 2010 (the "MSG Distribution"). The interest rate for periods within the contractual life of the stock option 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 option award granted in the first quarter of 2013:

Risk-free interest rate		1.25	%

Expected life (in years)		6.5

Dividend yield		3.86	%

Volatility		42.31	%

Grant date fair value	$	3.96

The following table summarizes activity relating to Company employees who held Cablevision stock options for the three months ended March 31, 2013:

	Shares Under Option						Weighted Average		Weighted Average Remaining
	Time Vesting Options			Performance Based Vesting Options			Exercise Price Per Share		Contractual Term (in years)		Aggregate Intrinsic Value(a)
Balance, December 31, 2012		2,789,342			12,319,000		$	13.05		7.88	$	29,143
Granted(b)		2,000,000			-			13.98
Exercised		(16,166	)		(82,250	)		13.02
Forfeited/Expired		-			-

Balance, March 31, 2013		4,773,176			12,236,750		$	13.16		7.90	$	31,210

Options exercisable at March 31, 2013		2,673,176			6,258,600		$	12.39		6.78	$	23,092

Options expected to vest in the future		2,100,000			5,772,101		$	14.02		9.15	$	7,905

(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, 2013 or December 31, 2012, as indicated, and March 31, 2013 in the case of options exercisable and options expected to vest in the future.

(b)	Options are scheduled to cliff vest at the end of three years and expire 10 years from the date of grant.

In addition, as of March 31, 2013, AMC Networks and Madison Square Garden employees held a total of 658,549 Cablevision stock options. These stock options are not expensed by the Company, however such stock options would 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, 2013:

	Number of Restricted Shares			Number of Performance Restricted Shares			Weighted Average Fair Value Per Share at Date of Grant (a)

Unvested award balance, December 31, 2012		4,010,675			1,297,100		$	18.06
Granted		2,674,760			584,000			14.01
Vested		(1,159,345	)		(304,100	)		17.67
Awards forfeited		(20,010	)		-			17.16

Unvested award balance, March 31, 2013		5,506,080			1,577,000			16.07

(a)	Does not include the fair value per share of 756,400 performance based restricted shares whose performance criteria had not yet been established as of March 31, 2013.

During the three months ended March 31, 2013, 1,463,445 and 519,150 Cablevision restricted shares issued to employees of the Company and AMC Networks, respectively, vested. To fulfill the employees' statutory minimum tax withholding obligations for the applicable income and other employment taxes, 815,457 of these shares, with an aggregate value of $11,384, were surrendered to the Company. These acquired shares have been classified as treasury stock.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

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+ Details

CSC HOLDINGS LLC 10-Q