Equity Plans

6 Months Ended

Jun. 30, 2011

Equity Plans

Equity Plans

Note 12.     Equity Plans

Treatment of Share-Based Payment Awards After the AMC Networks Distribution

In connection with the Distribution and as provided for in Cablevision's equity plans, each stock option and SAR outstanding at the effective date of the Distribution became two options or two SARs:, (i) one with respect to Cablevision's CNYG Class A common stock and one with respect to the Company's Class A common stock. The existing exercise price of each option/SAR was allocated between the existing Cablevision option/SAR and the Company's option/SAR based on the weighted average trading price of the Company's and Cablevision's common shares for the 10 trading days subsequent to the Distribution and the underlying share amount took into account the 1:4 distribution ratio. As a result of this adjustment, approximately 73.59% of the pre-AMC Networks Distribution exercise price of options/SARs was allocated to the Cablevision options/SARs and approximately 26.41% was allocated to the Company's new options/SARs.

Share-Based Payment Award Activity for Cablevision Restricted Shares

The following table summarizes activity relating to Company employees who held Cablevision restricted shares for the six months ended June 30, 2011:

	Number of Restricted Shares			Weighted Average Fair Value Per Share at Date of Grant
Unvested award balance, December 31, 2010		1,697,650		$	16.16
Granted (a)		379,620			36.10
Vested		(354,300	)		20.82
Awards forfeited		(46,340	)		17.77
Net Transfers (b)(c)		140,520			14.59
Unvested award balance, June 30, 2011 (c)		1,817,150		$	14.40

(a) Following the Distribution, the restricted stock awards granted in March 2011 were canceled and reissued as AMC Networks restricted stock awards. Such reissued restricted stock awards granted to named executive officers of AMC Networks whose compensation is potentially subject to Section 162(m) of the Internal Revenue Service Code contain performance criteria related to the financial performance of AMC Networks.

(b) Represents the net restricted shares for employees who transferred from the Company to Cablevision or from Cablevision to the Company.

(c) In connection with the Distribution, restricted share grant date fair value amounts relating to activity occurring on and as of the Distribution date were adjusted to 73.59% of their pre-Distribution grant date fair value per share amount.