

NOTE 10.	INCOME TAXES

The Company

In April 2015, corporate income tax changes were enacted for both New York State and the City of New York. Such changes included a provision whereby investment income will be subject to higher taxes. Accordingly, in the second quarter of 2015, the Company will record deferred tax expense of approximately $16,000 to remeasure the deferred tax liability for the investment in Comcast common stock and associated derivative securities.

Cablevision

Cablevision recorded income tax expense of $37,940 for the three months ended March 31, 2015, reflecting an effective tax rate of 41%.

Cablevision recorded income tax benefit of $26,939 for the three months ended March 31, 2014, reflecting a negative effective tax rate of 43%. In January 2014, the Internal Revenue Service informed the Company that the consolidated federal income tax returns for 2009 and 2010 were no longer under examination. Accordingly, in the first quarter of 2014, Cablevision recorded a tax benefit of $53,132 associated with the reversal of a noncurrent liability relating to an uncertain tax position. Absent this item, the effective tax rate for the three months ended March 31, 2014 would have been 41%.

Subsequent to the utilization of Cablevision's net operating loss and tax credit carry forwards, payments for income taxes are expected to increase significantly. Cablevision's federal net operating loss carry forward as of March 31, 2015 was approximately $570,000.

CSC Holdings

CSC Holdings recorded income tax expense of $67,542 for the three months ended March 31, 2015, reflecting an effective tax rate of 42%.

CSC Holdings recorded income tax expense of $1,798 for the three months ended March 31, 2014, reflecting an effective tax rate of 1%. In January 2014, the Internal Revenue Service informed the Company that the consolidated federal income tax returns for 2009 and 2010 were no longer under examination. Accordingly, in the first quarter of 2014, CSC Holdings recorded a tax benefit of $53,132 associated with the reversal of a noncurrent liability relating to an uncertain tax position. Absent this item, the effective tax rate for the three months ended March 31, 2014 would have been 42%.