This excerpt taken from the CVC 8-K filed Mar 5, 2007.
Cablevision adopted SFAS No. 123R, Share-Based Payment (Statement No. 123R), on January 1, 2006 using the modified prospective method. The modified prospective method requires that share-based compensation expense be recorded for all new or modified share-based awards granted after January 1, 2006, as well as for the unvested portion of restricted share awards and stock option awards outstanding at December 31, 2005 over the remaining service periods related to such awards, after adjustment for estimated forfeitures, and the consolidated financial statements for the prior periods are not restated to reflect, and do not include, the impact of Statement No. 123R. Cablevision will continue using the Black-Scholes valuation model in determining the fair value of share-based payments. In accordance with the pro forma disclosure requirements of Statement No. 123, Cablevision recognized the majority of the share-based compensation costs using the accelerated attribution method. Effective January 1, 2006, Cablevision recognized the cost for previously granted share-based awards under the accelerated attribution method and recognized the compensation expense for new share-based awards on a straight-line basis over the requisite service period. In connection with Cablevisions adoption of Statement No. 123R, the Company recorded an allocated charge of $121 as a cumulative effect of a change in accounting principle, net of taxes of $72, in the Companys consolidated statement of income for 2006. Share-based compensation expense allocated to the Company by Cablevision (excluding the impact of the cumulative effect of a change in accounting principle, net of taxes discussed above) amounted to $10,749, $1,212, and $2,447 in 2006, 2005, and 2004, respectively, and has been recorded as a component of selling, general and administrative expense and as a deemed capital contribution.