Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2015 | Jun. 30, 2015 | |
Entity Information [Line Items] | ||
Entity Registrant Name | CHARTER COMMUNICATIONS, INC. /MO/ | |
Entity Central Index Key | 1,091,667 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-K | |
Document Period End Date | Dec. 31, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | FY | |
Trading Symbol | CHTR | |
Entity Current Reporting Status | Yes | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 112,438,828 | |
Entity Public Float | $ 13.9 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 5 | $ 3 |
Accounts receivable, less allowance for doubtful accounts of $21 and $22, respectively | 279 | 285 |
Prepaid expenses and other current assets | 61 | 57 |
Total current assets | 345 | 345 |
RESTRICTED CASH AND CASH EQUIVALENTS | 22,264 | 7,111 |
INVESTMENT IN CABLE PROPERTIES: | ||
Property, plant and equipment, net of accumulated depreciation of $6,518 and $5,484, respectively | 8,345 | 8,373 |
Franchises | 6,006 | 6,006 |
Customer relationships, net | 856 | 1,105 |
Goodwill | 1,168 | 1,168 |
Total investment in cable properties, net | 16,375 | 16,652 |
OTHER NONCURRENT ASSETS | 332 | 280 |
Total assets | 39,316 | 24,388 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued liabilities | 1,972 | 1,635 |
Total current liabilities | 1,972 | 1,635 |
LONG-TERM DEBT | 35,723 | 20,887 |
DEFERRED INCOME TAXES | 1,590 | 1,648 |
OTHER LONG-TERM LIABILITIES | 77 | 72 |
SHAREHOLDERS' EQUITY (DEFICIT): | ||
Preferred stock; $.001 par value; 250 million shares authorized; no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 2,028 | 1,930 |
Accumulated deficit | (2,061) | (1,762) |
Accumulated other comprehensive loss | (13) | (22) |
Total shareholders' equity (deficit) | (46) | 146 |
Total liabilities and shareholders' equity (deficit) | 39,316 | 24,388 |
Class A Common Stock [Member] | ||
SHAREHOLDERS' EQUITY (DEFICIT): | ||
Common stock | 0 | 0 |
Class B Common Stock [Member] | ||
SHAREHOLDERS' EQUITY (DEFICIT): | ||
Common stock | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEET (PAR
CONSOLIDATED BALANCE SHEET (PARENTHETICALS) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Allowance for doubtful accounts (in dollars) | $ 21 | $ 22 |
Accumulated depreciation, property, plant and equipment (in dollars) | $ 6,518 | $ 5,484 |
Preferred Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred Stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Preferred Stock, shares issued (in shares) | 0 | 0 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
Class A Common Stock [Member] | ||
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, shares authorized (in shares) | 900,000,000 | 900,000,000 |
Common Stock, shares issued (in shares) | 112,438,828 | 111,999,687 |
Common Stock, shares outstanding (in shares) | 112,438,828 | 111,999,687 |
Class B Common Stock [Member] | ||
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Common Stock, shares issued (in shares) | 0 | 0 |
Common Stock, shares outstanding (in shares) | 0 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||||||||||
REVENUES | $ 2,512 | $ 2,450 | $ 2,430 | $ 2,362 | $ 2,360 | $ 2,287 | $ 2,259 | $ 2,202 | $ 9,754 | $ 9,108 | $ 8,155 |
COSTS AND EXPENSES: | |||||||||||
Operating costs and expenses (exclusive of items shown separately below) | 6,426 | 5,973 | 5,345 | ||||||||
Depreciation and amortization | 2,125 | 2,102 | 1,854 | ||||||||
Other operating expenses, net | 89 | 62 | 47 | ||||||||
Total costs and expenses | 8,640 | 8,137 | 7,246 | ||||||||
Income from operations | 323 | 273 | 269 | 249 | 277 | 218 | 236 | 240 | 1,114 | 971 | 909 |
OTHER EXPENSES: | |||||||||||
Interest expense, net | (1,306) | (911) | (846) | ||||||||
Loss on extinguishment of debt | (128) | 0 | (123) | ||||||||
Gain (loss) on derivative instruments, net | (4) | (7) | 11 | ||||||||
Other expense, net | (7) | 0 | 0 | ||||||||
Total other expenses | (1,445) | (918) | (958) | ||||||||
Income (loss) before income taxes | (331) | 53 | (49) | ||||||||
Income tax benefit (expense) | 60 | (236) | (120) | ||||||||
Net loss | $ (122) | $ 54 | $ (122) | $ (81) | $ (48) | $ (53) | $ (45) | $ (37) | $ (271) | $ (183) | $ (169) |
LOSS PER COMMON SHARE, BASIC AND DILUTED | |||||||||||
LOSS PER COMMON SHARE, BASIC AND DILUTED (in dollars per share) | $ (0.44) | $ (0.49) | $ (0.42) | $ (0.35) | $ (2.43) | $ (1.70) | $ (1.65) | ||||
Weighted average common shares outstanding, basic and diluted (in shares) | 110,242,507 | 108,792,605 | 107,975,937 | 106,439,198 | 111,869,771 | 108,374,160 | 101,934,630 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (271) | $ (183) | $ (169) |
Net impact of interest rate derivative instruments, net of tax | 9 | 19 | 34 |
Comprehensive loss | $ (262) | $ (164) | $ (135) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Millions | Total | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] | Accumulated other comprehensive loss [Member] | Class A Common Stock [Member]Common Stock [Member] | Class B Common Stock [Member]Common Stock [Member] |
Balance at Dec. 31, 2012 | $ 149 | $ 1,616 | $ (1,392) | $ 0 | $ (75) | $ 0 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (169) | 0 | (169) | 0 | 0 | 0 | 0 |
Net impact of interest rate derivative instruments, net of tax | 34 | 0 | 0 | 0 | 34 | 0 | 0 |
Stock compensation expense, net | 48 | 48 | 0 | 0 | 0 | 0 | 0 |
Exercise of options and warrants | 104 | 104 | 0 | 0 | 0 | 0 | 0 |
Purchase of treasury stock | (15) | 0 | 0 | (15) | 0 | 0 | 0 |
Retirement of treasury stock | 0 | (8) | (7) | 15 | 0 | 0 | 0 |
Balance at Dec. 31, 2013 | 151 | 1,760 | (1,568) | 0 | (41) | 0 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (183) | 0 | (183) | 0 | 0 | 0 | 0 |
Net impact of interest rate derivative instruments, net of tax | 19 | 0 | 0 | 0 | 19 | 0 | 0 |
Stock compensation expense, net | 55 | 55 | 0 | 0 | 0 | 0 | 0 |
Exercise of options and warrants | 123 | 123 | 0 | 0 | 0 | 0 | 0 |
Purchase of treasury stock | (19) | 0 | 0 | (19) | 0 | 0 | 0 |
Retirement of treasury stock | 0 | (8) | (11) | 19 | 0 | 0 | 0 |
Balance at Dec. 31, 2014 | 146 | 1,930 | (1,762) | 0 | (22) | 0 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (271) | 0 | (271) | 0 | 0 | 0 | 0 |
Net impact of interest rate derivative instruments, net of tax | 9 | 0 | 0 | 0 | 9 | 0 | 0 |
Stock compensation expense, net | 78 | 78 | 0 | 0 | 0 | 0 | 0 |
Exercise of options and warrants | 30 | 30 | 0 | 0 | 0 | 0 | 0 |
Purchase of treasury stock | (38) | 0 | 0 | (38) | 0 | 0 | 0 |
Retirement of treasury stock | 0 | (10) | (28) | 38 | 0 | 0 | 0 |
Balance at Dec. 31, 2015 | $ (46) | $ 2,028 | $ (2,061) | $ 0 | $ (13) | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES [Abstract] | |||
Net loss | $ (271) | $ (183) | $ (169) |
Adjustments to reconcile net loss to net cash flows from operating activities: | |||
Depreciation and amortization | 2,125 | 2,102 | 1,854 |
Noncash interest expense | 28 | 37 | 43 |
Loss on extinguishment of debt | 128 | 0 | 123 |
(Gain) loss on derivative instruments, net | 4 | 7 | (11) |
Deferred income taxes | (65) | 233 | 112 |
Other, net | 89 | 65 | 82 |
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: | |||
Accounts receivable | 5 | (51) | 10 |
Prepaid expenses and other assets | (3) | (9) | 0 |
Accounts payable, accrued liabilities and other | 319 | 158 | 114 |
Net cash flows from operating activities | 2,359 | 2,359 | 2,158 |
CASH FLOWS FROM INVESTING ACTIVITIES [Abstract] | |||
Purchases of property, plant and equipment | (1,840) | (2,221) | (1,825) |
Change in accrued expenses related to capital expenditures | 28 | 33 | 76 |
Sales (purchases) of cable systems, net | 0 | 11 | (676) |
Change in restricted cash and cash equivalents | (15,153) | (7,111) | 0 |
Other, net | (67) | (16) | (18) |
Net cash flows from investing activities | (17,032) | (9,304) | (2,443) |
CASH FLOWS FROM FINANCING ACTIVITIES [Abstract] | |||
Borrowings of long-term debt | 26,045 | 8,806 | 6,782 |
Repayments of long-term debt | (11,326) | (1,980) | (6,520) |
Payments for debt issuance costs | (36) | (6) | (50) |
Purchase of treasury stock | (38) | (19) | (15) |
Proceeds from exercise of options and warrants | 30 | 123 | 104 |
Other, net | 0 | 3 | (2) |
Net cash flows from financing activities | 14,675 | 6,927 | 299 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 2 | (18) | 14 |
CASH AND CASH EQUIVALENTS, beginning of period | 3 | 21 | 7 |
CASH AND CASH EQUIVALENTS, end of period | 5 | 3 | 21 |
Cash Paid for Interest | $ 1,046 | $ 850 | $ 763 |
Organization and Basis of Prese
Organization and Basis of Presentation (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Organization Charter Communications, Inc. (“Charter”) is a holding company whose principal asset is a 100% common equity interest in Charter Communications Holding Company, LLC (“Charter Holdco”). Charter owns cable systems through its subsidiaries, which are collectively, with Charter, referred to herein as the “Company.” The Company is a cable operator providing services in the United States. The Company offers to residential and commercial customers traditional cable video programming, Internet services, and voice services, as well as advanced video services such as video on demand, high definition television, and digital video recorder (“DVR”) service. The Company sells its cable video programming, Internet, voice, and advanced video services primarily on a subscription basis. The Company also sells local advertising on cable networks and on the Internet and provides fiber connectivity to cellular towers and office buildings. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Areas involving significant judgments and estimates include capitalization of labor and overhead costs; depreciation and amortization costs; valuations and impairments of property, plant and equipment, intangibles and goodwill; income taxes; contingencies and programming expense. Actual results could differ from those estimates. Certain prior period amounts have been reclassified to conform with the 2015 presentation. See Note 20 for balance sheet reclassifications to deferred financing fees and deferred taxes that resulted from the adoption of new accounting standards. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Consolidation The accompanying consolidated financial statements include the accounts of Charter and its wholly owned subsidiaries. The Company consolidates based upon evaluation of the Company’s power, through voting rights or similar rights, to direct the activities of another entity that most significantly impact the entity’s economic performance; its obligation to absorb the expected losses of the entity; and its right to receive the expected residual returns of the entity. All significant inter-company accounts and transactions among consolidated entities have been eliminated. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. These investments are carried at cost, which approximates market value. Cash and cash equivalents consist primarily of money market funds and commercial paper. Restricted Cash and Cash Equivalents Proceeds from the issuance of certain long-term debt were deposited into escrow accounts and will be used for acquisition financing and are contractually restricted as to their withdrawal or use. See Note 8. The amounts held in escrow are classified as noncurrent restricted cash and cash equivalents in the Company's consolidated balance sheets. The Company's restricted cash and cash equivalents were primarily invested in money market funds and 90-day or less commercial paper. The changes in restricted cash and cash equivalents are presented as an investing activity in the Company's consolidated statements of cash flows. Property, Plant and Equipment Additions to property, plant and equipment are recorded at cost, including all material, labor and certain indirect costs associated with the construction of cable transmission and distribution facilities. While the Company’s capitalization is based on specific activities, once capitalized, costs are tracked by fixed asset category at the cable system level and not on a specific asset basis. For assets that are sold or retired, the estimated historical cost and related accumulated depreciation is removed. Costs associated with initial customer installations and the installation of equipment necessary to provide video, Internet or voice services are capitalized. Costs capitalized as part of installations include materials, labor, and certain indirect costs. Indirect costs are associated with the activities of the Company’s personnel who assist in installation activities and consist of compensation and other costs associated with these support functions. Indirect costs primarily include employee benefits and payroll taxes, direct variable costs associated with capitalizable activities, consisting primarily of installation and construction, vehicle costs, the cost of dispatch personnel and indirect costs directly attributable to capitalizable activities. The costs of disconnecting service at a customer’s dwelling or reconnecting service to a previously installed dwelling are charged to operating expense in the period incurred. Costs for repairs and maintenance are charged to operating expense as incurred, while plant and equipment replacement, including replacement of certain components, and betterments, including replacement of cable drops from the pole to the dwelling, are capitalized. Depreciation is recorded using the straight-line composite method over management’s estimate of the useful lives of the related assets as follows: Cable distribution systems 7-20 years Customer premise equipment and installations 3-8 years Vehicles and equipment 3-6 years Buildings and improvements 15-40 years Furniture, fixtures and equipment 6-10 years Asset Retirement Obligations Certain of the Company’s franchise agreements and leases contain provisions requiring the Company to restore facilities or remove equipment in the event that the franchise or lease agreement is not renewed. The Company expects to continually renew its franchise agreements and has concluded that all of the related franchise rights are indefinite lived intangible assets. Accordingly, the possibility is remote that the Company would be required to incur significant restoration or removal costs related to these franchise agreements in the foreseeable future. A liability is required to be recognized for an asset retirement obligation in the period in which it is incurred if a reasonable estimate of fair value can be made. The Company has not recorded an estimate for potential franchise related obligations, but would record an estimated liability in the unlikely event a franchise agreement containing such a provision were no longer expected to be renewed. The Company also expects to renew many of its lease agreements related to the continued operation of its cable business in the franchise areas. The Company does not have any significant liabilities related to asset retirements recorded in its consolidated financial statements. Other Noncurrent Assets Other noncurrent assets primarily include trademarks, right-of-entry costs and equity investments. Trademarks have been determined to have an indefinite life and are tested annually for impairment. Right-of-entry costs represent costs incurred related to agreements entered into with landlords, real estate companies or owners to gain access to a building in order to provide cable service. Right-of-entry costs are generally deferred and amortized to amortization expense over the term of the agreement. The Company accounts for its investments in less than majority owned investees under either the equity or cost method. The Company applies the equity method to investments when it has the ability to exercise significant influence over the operating and financial policies of the investee. The Company's share of the investee's earnings (losses) is included in other expense, net in the consolidated statements of operations. The Company monitors its investments for indicators that a decrease in investment value has occurred that is other than temporary. Valuation of Long-Lived Assets The Company evaluates the recoverability of long-lived assets to be held and used when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Such events or changes in circumstances could include such factors as impairment of the Company’s indefinite life assets, changes in technological advances, fluctuations in the fair value of such assets, adverse changes in relationships with local franchise authorities, adverse changes in market conditions or a deterioration of operating results. If a review indicates that the carrying value of such asset is not recoverable from estimated undiscounted cash flows, the carrying value of such asset is reduced to its estimated fair value. While the Company believes that its estimates of future cash flows are reasonable, different assumptions regarding such cash flows could materially affect its evaluations of asset recoverability. No impairments of long-lived assets to be held and used were recorded in 2015 , 2014 and 2013 . Revenue Recognition Revenues from residential and commercial video, Internet and voice services are recognized when the related services are provided. Advertising sales are recognized at estimated realizable values in the period that the advertisements are broadcast. In some cases, the Company coordinates the advertising sales efforts of other cable operators in a certain market and remits amounts received from customers less an agreed-upon percentage to such cable operator. For those arrangements in which the Company acts as a principal, the Company records the revenues earned from the advertising customer on a gross basis and the amount remitted to the cable operator as an operating expense. Fees imposed on Charter by various governmental authorities are passed through on a monthly basis to the Company’s customers and are periodically remitted to authorities. Fees of $255 million , $248 million and $234 million for the years ended December 31, 2015 , 2014 and 2013 , respectively, are reported in video, voice and commercial revenues, on a gross basis with a corresponding operating expense because the Company is acting as a principal . Other taxes, such as sales taxes imposed on the Company's customers, collected and remitted to state and local authorities, are recorded on a net basis because the Company is acting as an agent in such situation. The Company’s revenues by product line are as follows: Year Ended December 31, 2015 2014 2013 Video $ 4,587 $ 4,443 $ 4,040 Internet 3,003 2,576 2,186 Voice 539 575 644 Residential revenue 8,129 7,594 6,870 Small and medium business 764 676 553 Enterprise 363 317 259 Commercial revenue 1,127 993 812 Advertising sales 309 341 291 Other 189 180 182 $ 9,754 $ 9,108 $ 8,155 Programming Costs The Company has various contracts to obtain basic, digital and premium video programming from programming vendors whose compensation is typically based on a flat fee per customer. The cost of the right to exhibit network programming under such arrangements is recorded in operating expenses in the month the programming is available for exhibition. Programming costs are paid each month based on calculations performed by the Company and are subject to periodic audits performed by the programmers. Certain programming contracts contain incentives to be paid by the programmers. The Company receives these payments and recognizes the incentives on a straight-line basis over the life of the programming agreement as a reduction of programming expense. This offset to programming expense was $19 million , $19 million and $7 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Programming costs included in the accompanying statements of operations were $2.7 billion , $2.5 billion and $2.1 billion for the years ended December 31, 2015 , 2014 and 2013 , respectively. Advertising Costs Advertising costs associated with marketing the Company’s products and services are generally expensed as costs are incurred. Such advertising expense was $389 million , $380 million and $357 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Multiple-Element Transactions In the normal course of business, the Company enters into multiple-element transactions where it is simultaneously both a customer and a vendor with the same counterparty or in which it purchases multiple products and/or services, or settles outstanding items contemporaneous with the purchase of a product or service from a single counterparty. Transactions, although negotiated contemporaneously, may be documented in one or more contracts. The Company’s policy for accounting for each transaction negotiated contemporaneously is to record each element of the transaction based on the respective estimated fair values of the products or services purchased and the products or services sold. In determining the fair value of the respective elements, the Company refers to quoted market prices (where available), historical transactions or comparable cash transactions. Stock-Based Compensation Restricted stock, restricted stock units, stock options as well as restricted stock and stock options with market conditions are measured at the grant date fair value and amortized to stock compensation expense over the requisite service period. The Company recorded $78 million , $55 million and $48 million of stock compensation expense, which is included in operating costs and expenses for the years ended December 31, 2015 , 2014 and 2013 , respectively. The fair value of options granted is estimated on the date of grant using the Black-Scholes option-pricing model and Monte Carlo simulations for options and restricted stock units with market conditions. The grant date weighted average assumptions used during the years ended December 31, 2015 , 2014 and 2013 , respectively, were: risk-free interest rate of 1.5% , 2.0% and 1.5% ; expected volatility of 34.7% , 36.9% and 37.8% , and expected lives of 6.5 years, 6.5 years and 6.3 years. The grant date weighted average cost of equity used was 16.2% during the year ended December 31, 2013 . Volatility assumptions were based on historical volatility of Charter and a peer group. The Company’s volatility assumptions represent management’s best estimate and were partially based on historical volatility of a peer group because management does not believe Charter’s pre-emergence from bankruptcy historical volatility to be representative of its future volatility. Expected lives were calculated based on the simplified-method due to insufficient historical exercise data. The valuations assume no dividends are paid. Income Taxes The Company recognizes deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities and expected benefits of utilizing loss carryforwards. The impact on deferred taxes of changes in tax rates and tax law, if any, applied to the years during which temporary differences are expected to be settled, are reflected in the consolidated financial statements in the period of enactment. See Note 16. Loss per Common Share Basic loss per common share is computed by dividing the net loss by the weighted-average common shares outstanding during the respective periods. Diluted loss per common share equals basic loss per common share for the periods presented, as the effect of stock options and other convertible securities are anti-dilutive because the Company incurred net losses. Segments The Company’s operations are conducted through the use of a unified network and are managed and reported to its Chief Executive Officer ("CEO"), the Company's chief operating decision maker, on a consolidated basis. The CEO assesses performance and allocates resources based on the consolidated results of operations. Under this organizational and reporting structure, the Company has one reportable segment, broadband services. |
Mergers and Acquisitions (Notes
Mergers and Acquisitions (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Mergers and Acquisitions | Acquisitions TWC Transaction On May 23, 2015, the Company entered into an Agreement and Plan of Mergers (the “Merger Agreement”) with Time Warner Cable Inc. ("TWC"), CCH I, LLC (“New Charter”), a wholly owned subsidiary of the Company; Nina Corporation I, Inc., Nina Company II, LLC, a wholly owned subsidiary of New Charter; and Nina Company III, LLC, a wholly owned subsidiary of New Charter, pursuant to which the parties will engage in a series of transactions that will result in Charter and TWC becoming wholly owned subsidiaries of New Charter (the “TWC Transaction”), on the terms and subject to the conditions set forth in the Merger Agreement. After giving effect to the TWC Transaction, New Charter will be the new public company parent that will hold the operations of the combined companies. Upon consummation of the TWC Transaction, each outstanding share of TWC common stock (other than TWC stock held by Liberty Broadband Corporation ("Liberty Broadband") and Liberty Interactive Corporation ("Liberty Interactive") (collectively, the "Liberty Parties")), will be converted into the right to receive $100 in cash and shares of New Charter Class A common stock ("New Charter common stock") equivalent to 0.5409 shares of Charter Class A common stock. Each stockholder of TWC will also have the option to elect to receive for each outstanding share of TWC common stock (other than TWC stock held by the Liberty Parties) $115 in cash and shares of New Charter common stock equivalent to 0.4562 shares of Charter common stock. Upon consummation of the TWC Transaction, each share of TWC common stock held by the Liberty Parties will be converted into New Charter common stock. The total enterprise value of TWC based on the estimated value of purchase price consideration is approximately $79 billion , including cash, equity and TWC debt to be assumed. The value of the consideration will fluctuate based on the number of shares outstanding and the market value of Charter's Class A common stock on the acquisition date, among other factors. In certain circumstances a termination fee may be payable by either Charter or TWC upon termination of the TWC Transaction as more fully described in the Merger Agreement. Bright House Transaction On March 31, 2015, the Company entered into a definitive Contribution Agreement (the “Contribution Agreement”), which was amended on May 23, 2015 in connection with the execution of the Merger Agreement, with Advance/Newhouse Partnership (“A/N”), A/NPC Holdings LLC, New Charter and Charter Communications Holdings, LLC (“Charter Holdings”), the Company's wholly owned subsidiary, pursuant to which Charter would become the owner of the membership interests in Bright House Networks, LLC (“Bright House”) and any other assets (other than certain excluded assets and liabilities and non-operating cash) primarily related to Bright House (the “Bright House Transaction”). At closing, Charter Holdings will pay to A/N approximately $2 billion in cash and issue to A/N convertible preferred units of Charter Holdings with a face amount of $2.5 billion which will pay a 6% coupon, and approximately 34.3 million common units of Charter Holdings that are exchangeable into New Charter common stock on a one-for-one basis with a value of approximately $6 billion . Liberty Transaction and Debt Financing for the TWC Transaction and Bright House Transaction Assuming that all TWC stockholders (excluding the Liberty Parties) elect the $100 per share cash option, the cash portion of the consideration for the TWC Transaction is expected to be approximately $28 billion and the cash portion of the Bright House Transaction is approximately $2 billion . In connection with the TWC Transaction, Charter and Liberty Broadband entered into an investment agreement, pursuant to which Liberty Broadband agreed to invest $4.3 billion in New Charter at the closing of the TWC Transaction to partially finance the cash portion of the TWC Transaction consideration. In connection with the Bright House Transaction, Liberty Broadband agreed to purchase at the closing of the Bright House Transaction $700 million of New Charter Class A common stock (or, if the TWC Transaction is not consummated prior to the completion of the Bright House Transaction, Charter Class A common stock). Charter expects to finance the remaining cash portion of the purchase price of the TWC Transaction and Bright House Transaction with additional indebtedness. As discussed in Note 8, the Company issued $15.5 billion CCO Safari II, LLC ("CCO Safari II") senior secured notes, $3.8 billion CCO Safari III, LLC ("CCO Safari III") senior secured bank loans and $2.5 billion CCOH Safari, LLC ("CCOH Safari") senior unsecured notes. Charter has remaining commitments of approximately $2.7 billion from banks to provide incremental senior secured term loan facilities and senior unsecured notes, as well as an incremental $1.7 billion revolving facility. In addition, the bank commitments provide for a $4.3 billion bridge facility if all TWC stockholders (other than the Liberty Parties) elect the $115 per share cash option, in the event Charter is unable to issue senior unsecured notes in advance of the closing of the TWC Transaction. Acquisition of Bresnan On July 1, 2013, Charter and Charter Communications Operating, LLC ("Charter Operating") acquired Bresnan Broadband Holdings, LLC and its subsidiaries (collectively, “Bresnan”) from a wholly owned subsidiary of Cablevision Systems Corporation ("Cablevision"), for $1.625 billion in cash, as well as a working capital adjustment and a reduction for certain funded indebtedness of Bresnan. Bresnan manages cable operating systems in Montana, Wyoming, Colorado and Utah. Charter funded the purchase of Bresnan with a $1.5 billion term loan (see Note 8) and borrowings under the Charter Operating credit facilities. The following unaudited pro forma financial information of Charter is based on the historical consolidated financial statements of Charter and the historical consolidated financial statements of Bresnan and is intended to provide information about how the acquisition of Bresnan and related financing may have affected Charter's historical consolidated financial statements if they had closed as of January 1, 2012. The pro forma financial information below is based on available information and assumptions that the Company believes are reasonable. The pro forma financial information is for illustrative and informational purposes only and is not intended to represent or be indicative of what Charter's financial condition or results of operations would have been had the transactions described above occurred on the date indicated. The pro forma financial information also should not be considered representative of Charter's future financial condition or results of operations. Year Ended December 31, 2013 (unaudited) Revenues $ 8,419 Net loss $ (194 ) Loss per common share, basic and diluted $ (1.90 ) |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Activity in the allowance for doubtful accounts is summarized as follows for the years presented: Year Ended December 31, 2015 2014 2013 Balance, beginning of period $ 22 $ 19 $ 14 Charged to expense 135 122 101 Uncollected balances written off, net of recoveries (136 ) (119 ) (96 ) Balance, end of period $ 21 $ 22 $ 19 |
Property, Plant and Equipment (
Property, Plant and Equipment (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consists of the following as of December 31, 2015 and 2014 : December 31, 2015 2014 Cable distribution systems $ 8,158 $ 7,919 Customer premise equipment and installations 4,632 4,388 Vehicles and equipment 384 335 Buildings and improvements 570 499 Furniture, fixtures and equipment 1,119 716 14,863 13,857 Less: accumulated depreciation (6,518 ) (5,484 ) $ 8,345 $ 8,373 The Company periodically evaluates the estimated useful lives used to depreciate its assets and the estimated amount of assets that will be abandoned or have minimal use in the future. A significant change in assumptions about the extent or timing of future asset retirements, or in the Company’s use of new technology and upgrade programs, could materially affect future depreciation expense. Depreciation expense for the years ended December 31, 2015 , 2014 and 2013 was $1.9 billion , $1.8 billion , and $1.6 billion , respectively. |
Franchises, Goodwill and Other
Franchises, Goodwill and Other Intangible Assets (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Franchises, Goodwill and Other Intangible Assets | Franchises, Goodwill and Other Intangible Assets Franchise rights represent the value attributed to agreements or authorizations with local and state authorities that allow access to homes in cable service areas. For valuation purposes, they are defined as the future economic benefits of the right to solicit and service potential customers (customer marketing rights), and the right to deploy and market new services to potential customers (service marketing rights). Management estimates the fair value of franchise rights at the date of acquisition and determines if the franchise has a finite life or an indefinite life. All franchises that qualify for indefinite life treatment are tested for impairment annually or more frequently as warranted by events or changes in circumstances. In determining whether our franchises have an indefinite life, the Company considered the likelihood of franchise renewals, the expected costs of franchise renewals, and the technological state of the associated cable systems, with a view to whether or not it is in compliance with any technology upgrading requirements specified in a franchise agreement. The Company has concluded that as of December 31, 2015 and 2014 all of its franchises qualify for indefinite life treatment. Franchise assets are aggregated into essentially inseparable units of accounting to conduct valuations. The units of accounting generally represent geographical clustering of our cable systems into groups. The Company assesses qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that an indefinite lived intangible asset has been impaired. If, after this optional qualitative assessment, the Company determines that it is not more likely than not that an indefinite lived intangible asset has been impaired, then no further quantitative testing is necessary. In completing the qualitative impairment testing, the Company evaluates the impact of various factors to the expected future cash flows attributable to its units of accounting and to the assumed discount rate which would be used to determine the present value of those cash flows. Such factors include macro-economic and industry conditions including the capital markets, regulatory, and competitive environment, and costs of programming and customer premise equipment along with changes to our organizational structure and strategies. A recent valuation of the Company was performed for tax purposes during 2015 and was included as a key factor in the Company’s qualitative assessment of the Company’s franchise assets. After consideration of the qualitative factors, in 2015 the Company concluded that it is more likely than not that the fair value of the franchise assets in each unit of accounting exceeds the carrying value of such assets and therefore did not perform a quantitative analysis. Periodically, the Company will elect to perform a quantitative analysis. If the Company elects or is required to perform a quantitative analysis to test its franchise assets for impairment, the Company determines the estimated fair value of franchises utilizing an income approach model based on the present value of the estimated discrete future cash flows attributable to each of the intangible assets identified assuming a discount rate. The fair value of franchises for impairment testing is determined based on estimated discrete discounted future cash flows using assumptions consistent with internal forecasts. The franchise after-tax cash flow is calculated as the after-tax cash flow generated by the potential customers obtained (less the anticipated churn for the potential customer). The sum of the present value of the franchises' after-tax cash flow in years 1 through 10 and the continuing value of the after-tax cash flow beyond year 10 yields the fair value of the franchises. This approach makes use of unobservable factors such as projected revenues, expenses, capital expenditures, customer trends, and a discount rate applied to the estimated cash flows. The determination of the franchise discount rate is derived from the Company's weighted average cost of capital, which uses a market participant’s cost of equity and after-tax cost of debt and reflects the risks inherent in the cash flows. The Company estimates discounted future cash flows using reasonable and appropriate assumptions including among others, penetration rates for video, high-speed Internet, and voice; revenue growth rates; operating margins; and capital expenditures. The assumptions are based on the Company’s and its peers’ historical operating performance adjusted for current and expected competitive and economic factors surrounding the cable industry. The estimates and assumptions made in the Company’s valuations are inherently subject to significant uncertainties, many of which are beyond its control, and there is no assurance that these results can be achieved. The primary assumptions for which there is a reasonable possibility of the occurrence of a variation that would significantly affect the measurement value include the assumptions regarding revenue growth, programming expense growth rates, the amount and timing of capital expenditures, actual customer trends and the discount rate utilized. Goodwill is tested for impairment as of November 30 of each year , or more frequently as warranted by events or changes in circumstances. Accounting guidance also permits an optional qualitative assessment for goodwill to determine whether it is more likely than not that the carrying value of a reporting unit exceeds its fair value. If, after this qualitative assessment, the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount then no further quantitative testing would be necessary. If the Company elects or is required to perform the two-step test under the accounting guidance, the first step involves a comparison of the estimated fair value of the reporting unit to its carrying amount. If the estimated fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered impaired and the second step of the goodwill impairment is not necessary. If the carrying amount of a reporting unit exceeds its estimated fair value, then the second step of the goodwill impairment test must be performed, and a comparison of the implied fair value of the reporting unit’s goodwill is compared to its carrying amount to determine the amount of impairment, if any. The fair value of the reporting unit, when performing the second step of the goodwill impairment test, is determined using both an income approach and market approach. The Company's income approach model used for its goodwill valuation is consistent with that used for its franchise valuation noted above except that cash flows from the entire business enterprise are used for the goodwill valuation. The market approach model estimates the fair value of the reporting unit based on market prices in actual precedent transactions of similar businesses and market valuations of guideline public companies. As with the Company's franchise impairment testing, in 2015 the Company elected to perform a qualitative goodwill impairment assessment and concluded that goodwill is not impaired. Customer relationships are recorded at fair value as of the date acquired less accumulated amortization. Customer relationships, for valuation purposes, represent the value of the business relationship with existing customers (less the anticipated customer churn), and are calculated by projecting the discrete future after-tax cash flows from these customers, including the right to deploy and market additional services to these customers. The present value of these after-tax cash flows yields the fair value of the customer relationships. The use of different valuation assumptions or definitions of franchises or customer relationships, such as our inclusion of the value of selling additional services to our current customers within customer relationships versus franchises, could significantly impact our valuations and any resulting impairment. Customer relationships are amortized on an accelerated sum of years' digits method over useful lives of 8 - 15 years based on the period over which current customers are expected to generate cash flows. The Company periodically evaluates the remaining useful lives of its customer relationships to determine whether events or circumstances warrant revision to the remaining periods of amortization. Customer relationships are evaluated for impairment upon the occurrence of events or changes in circumstances indicating that the carrying amount of an asset may not be recoverable. Customer relationships are deemed impaired when the carrying value exceeds the projected undiscounted future cash flows associated with the customer relationships. No impairment of customer relationships was recorded in the years ended December 31, 2015 , 2014 or 2013 . The fair value of trademarks is determined using the relief-from-royalty method, a variation of the income approach, which applies a fair royalty rate to estimated revenue derived under the Company's trademarks. The fair value of the intangible is estimated to be the present value of the royalty saved because the Company owns the trademarks. Royalty rates are estimated based on a review of market royalty rates in the communications and entertainment industries. As the Company expects to continue to use each trademark indefinitely, trademarks have been assigned an indefinite life and are tested annually for impairment using either a qualitative analysis or quantitative analysis as elected by management. As with the Company’s franchise impairment testing, in 2015 the Company elected to perform a qualitative trademark impairment assessment and concluded that trademarks are not impaired. As of December 31, 2015 and 2014 , indefinite lived and finite-lived intangible assets are presented in the following table: December 31, 2015 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Indefinite lived intangible assets: Franchises $ 6,006 $ — $ 6,006 $ 6,006 $ — $ 6,006 Goodwill 1,168 — 1,168 1,168 — 1,168 Trademarks 159 — 159 159 — 159 Other intangible assets 4 — 4 4 — 4 $ 7,337 $ — $ 7,337 $ 7,337 $ — $ 7,337 Finite-lived intangible assets: Customer relationships $ 2,616 $ 1,760 $ 856 $ 2,616 $ 1,511 $ 1,105 Other intangible assets 173 82 91 151 60 91 $ 2,789 $ 1,842 $ 947 $ 2,767 $ 1,571 $ 1,196 Amortization expense related to customer relationships and other intangible assets for the years ended December 31, 2015 , 2014 and 2013 was $271 million , $299 million and $299 million , respectively. The Company expects amortization expense on its finite-lived intangible assets will be as follows. 2016 $ 237 2017 204 2018 169 2019 133 2020 95 Thereafter 109 $ 947 Actual amortization expense in future periods could differ from these estimates as a result of new intangible asset acquisitions or divestitures, changes in useful lives, impairments and other relevant factors. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities consist of the following as of December 31, 2015 and 2014 : December 31, 2015 2014 Accounts payable – trade $ 134 $ 140 Accrued capital expenditures 296 268 Deferred revenue 96 85 Accrued liabilities: Interest 445 212 Programming costs 451 430 Franchise related fees 65 65 Compensation 186 169 Other 299 266 $ 1,972 $ 1,635 |
Long-Term Debt (Notes)
Long-Term Debt (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following as of December 31, 2015 and 2014 : December 31, 2015 2014 Principal Amount Accreted Value Principal Amount Accreted Value CCOH Safari, LLC: 5.500% senior notes due December 1, 2022 $ — $ — $ 1,500 $ 1,499 5.750% senior notes due December 1, 2024 — — 2,000 1,999 5.750% senior notes due February 15, 2026 2,500 2,499 — — CCO Safari II, LLC: 3.579% senior notes due July 23, 2020 2,000 1,999 — — 4.464% senior notes due July 23, 2022 3,000 2,998 — — 4.908% senior notes due July 23, 2025 4,500 4,497 — — 6.384% senior notes due October 23, 2035 2,000 1,999 — — 6.484% senior notes due October 23, 2045 3,500 3,498 — — 6.834% senior notes due October 23, 2055 500 500 — — CCO Safari III, LLC: Credit facilities 3,800 3,788 — — CCO Holdings, LLC: 7.250% senior notes due October 30, 2017 — — 1,000 992 7.000% senior notes due January 15, 2019 600 594 1,400 1,381 8.125% senior notes due April 30, 2020 — — 700 692 7.375% senior notes due June 1, 2020 750 744 750 742 5.250% senior notes due March 15, 2021 500 496 500 495 6.500% senior notes due April 30, 2021 1,500 1,487 1,500 1,485 6.625% senior notes due January 31, 2022 750 740 750 739 5.250% senior notes due September 30, 2022 1,250 1,229 1,250 1,228 5.125% senior notes due February 15, 2023 1,000 990 1,000 989 5.125% senior notes due May 1, 2023 1,150 1,140 — — 5.750% senior notes due September 1, 2023 500 495 500 495 5.750% senior notes due January 15, 2024 1,000 990 1,000 989 5.375% senior notes due May 1, 2025 750 744 — — 5.875% senior notes due May 1, 2027 800 794 — — Charter Communications Operating, LLC: Credit facilities 3,552 3,502 3,742 3,683 CCO Safari, LLC (an Unrestricted Subsidiary): Credit facility due September 12, 2021 — — 3,500 3,479 Long-Term Debt $ 35,902 $ 35,723 $ 21,092 $ 20,887 The accreted values presented above represent the principal amount of the debt less the original issue discount at the time of sale and deferred financing costs, plus the accretion of both amounts to the balance sheet date. However, the amount that is currently payable if the debt becomes immediately due is equal to the principal amount of the debt. The Company has availability under its credit facilities of approximately $961 million as of December 31, 2015 , and as such, debt maturing in the next twelve months is classified as long-term. Loss on extinguishment of debt consists of the following for the years ended December 31, 2015 , 2014 and 2013 : Year ended December 31, 2015 2014 2013 CCO Holdings notes repurchases $ 123 $ — $ 65 Charter Operating credit amendment / prepayments — — 58 CCOH Safari notes and CCO Safari Term G Loans repayments 5 — — $ 128 $ — $ 123 On April 25, 2014, the Company entered into a binding definitive agreement (the “Comcast Transactions Agreement”) with Comcast Corporation (“Comcast”), which contemplated the following transactions: (1) an asset purchase, (2) an asset exchange and (3) a contribution and spin-off transaction (collectively, the “Comcast Transactions”). Pursuant to the terms of the Comcast Transactions Agreement, Comcast had the right to terminate the Comcast Transactions Agreement upon termination of the merger agreement among Comcast, TWC and Tango Acquisition Sub, Inc. (the “Comcast Merger Agreement”). On April 24, 2015, Comcast and TWC terminated the Comcast Merger Agreement, and Comcast delivered a notice of termination of the Comcast Transactions Agreement to Charter (the “Termination Notice”). As a result of the termination, proceeds from the issuance of $3.5 billion aggregate principal amount of CCOH Safari notes and $3.5 billion aggregate principal amount of CCO Safari, LLC ("CCO Safari") Term G Loans ("Term G Loans"), which were held in escrow and intended to fund the closing of the Comcast Transactions, were utilized to settle the related debt obligation in April 2015. These transactions resulted in a loss on extinguishment of debt of approximately $5 million for the year ended December 31, 2015. CCOH Safari Notes In November 2015, CCOH Safari, a wholly owned subsidiary of the Company, closed on transactions in which it issued $2.5 billion aggregate principal amount of 5.750% senior unsecured notes due 2026 (the "2026 Notes"). The net proceeds from the issuance of the 2026 Notes were deposited into an escrow account and will be used to partially finance the TWC Transaction as well as for general corporate purposes. The release of the proceeds to the Company is subject to satisfaction of certain conditions, including the closing of the TWC Transaction. Substantially concurrently with the escrow release, the 2026 Notes will become obligations of CCO Holdings and CCO Holdings Capital. CCOH Safari will merge into CCO Holdings. Contingent upon closing of the TWC Transaction and release of the proceeds from escrow, the Company will be obligated to pay approximately $40 million of additional debt issuance fees. Should the Merger Agreement be terminated prior to the consummation of the TWC Transaction, or upon expiration of the escrow agreement on May 23, 2016 (or six months following such date in the event of an extension of the Merger Agreement), such amounts placed in escrow must be used to settle amounts outstanding under the 2026 Notes at par value. The amounts held in escrow are classified as noncurrent restricted cash and cash equivalents in the Company's consolidated balance sheet as of December 31, 2015. Initially, the 2026 Notes are senior debt obligations of CCOH Safari. Upon release of the proceeds from escrow, the 2026 Notes will be senior debt obligations of CCO Holdings and CCO Holdings Capital Corp. and rank equally with all other current and future unsecured, unsubordinated obligations of CCO Holdings and CCO Holdings Capital Corp. The 2026 Notes are structurally subordinated to all obligations of subsidiaries of CCO Holdings, including the Charter Operating credit facilities. Following the release of the proceeds, CCO Holdings may redeem some or all of the 2026 Notes at any time at a premium. The optional redemption price declines to 100% of the principal amount, plus accrued and unpaid interest, if any, on or after varying dates in 2021 through 2024. In addition, at any time following the release of the proceeds and prior to February 15, 2019, CCO Holdings and CCO Holdings Capital Corp. may redeem up to 40% of the aggregate principal amount of such 2026 Notes at a redemption price at a premium plus accrued and unpaid interest to the redemption date, with the net cash proceeds of one or more equity offerings (as defined in the indenture); provided that certain conditions are met. In the event of specified change of control events, CCO Holdings must offer to purchase the 2026 Notes from the holders at a purchase price equal to 101% of the total principal amount of the notes, plus any accrued and unpaid interest. CCO Holdings Notes In April 2015, CCO Holdings, LLC ("CCO Holdings") and CCO Holdings Capital Corp. closed on transactions in which they issued $1.15 billion aggregate principal amount of 5.125% senior unsecured notes due 2023 (the "2023 Notes"), $750 million aggregate principal amount of 5.375% senior unsecured notes due 2025 (the "2025 Notes") and $800 million aggregate principal amount of 5.875% senior unsecured notes due 2027 (the "2027 Notes"). The net proceeds from the issuance of the 2023 Notes and 2025 Notes were used to finance tender offers and a subsequent call in which $1.0 billion aggregate principal amount of CCO Holdings' outstanding 7.250% senior notes due 2017 and $700 million aggregate principal amount of CCO Holdings' outstanding 8.125% senior notes due 2020 were repurchased, as well as for general corporate purposes. The net proceeds from the issuance of the 2027 Notes were used to call $800 million of the $1.4 billion aggregate principal amount of CCO Holdings' outstanding 7.000% senior notes due 2019. These debt repurchases resulted in a loss on extinguishment of debt of $123 million for the year ended December 31, 2015. The CCO Holdings notes are guaranteed by Charter. They are senior debt obligations of CCO Holdings and CCO Holdings Capital Corp. and rank equally with all other current and future unsecured, unsubordinated obligations of CCO Holdings and CCO Holdings Capital Corp. The CCO Holdings notes are structurally subordinated to all obligations of subsidiaries of CCO Holdings, including the Charter Operating credit facilities. Upon consummation of the TWC Transaction, the CCO Holdings notes will not be guaranteed by Charter or New Charter. CCO Holdings may redeem some or all of the CCO Holdings notes at any time at a premium. The optional redemption price declines to 100% of the respective series’ principal amount, plus accrued and unpaid interest, if any, on or after varying dates in 2016 through 2024. In addition, at any time prior to varying dates in 2016 through 2021, CCO Holdings may redeem up to 35% ( 40% in regards to the 2023 Notes, 2025 Notes and 2027 Notes issued in April 2015) of the aggregate principal amount of the notes at a redemption price at a premium plus accrued and unpaid interest to the redemption date, with the net cash proceeds of one or more equity offerings (as defined in the indenture); provided that certain conditions are met. In the event of specified change of control events, CCO Holdings must offer to purchase the outstanding CCO Holdings notes from the holders at a purchase price equal to 101% of the total principal amount of the notes, plus any accrued and unpaid interest. High-Yield Restrictive Covenants; Limitation on Indebtedness. The indentures governing the CCO Holdings notes and CCOH Safari notes (following the release of proceeds from escrow) contain certain covenants that restrict the ability of CCO Holdings, CCO Holdings Capital Corp. and all of their restricted subsidiaries to: • incur additional debt; • pay dividends on equity or repurchase equity; • make investments; • sell all or substantially all of their assets or merge with or into other companies; • sell assets; • in the case of restricted subsidiaries, create or permit to exist dividend or payment restrictions with respect to CCO Holdings, guarantee their parent companies debt, or issue specified equity interests; • engage in certain transactions with affiliates; and • grant liens. The above limitations in certain circumstances regarding incurrence of debt, payment of dividends and making investments contained in the indentures of CCO Holdings and CCOH Safari permit CCO Holdings and its restricted subsidiaries to perform the above, so long as, after giving pro forma effect to the above, the leverage ratio would be below a specified level for the issuer. The leverage ratio under the indentures is 6.0 to 1.0 . CCO Safari II Notes In July 2015, CCO Safari II, a wholly owned subsidiary of the Company, closed on transactions in which it issued $15.5 billion in aggregate principal amount of senior secured notes comprised of $2.0 billion aggregate principal amount of 3.579% senior secured notes due 2020, $3.0 billion aggregate principal amount of 4.464% senior secured notes due 2022, $4.5 billion aggregate principal amount of 4.908% senior secured notes due 2025, $2.0 billion aggregate principal amount of 6.384% senior secured notes due 2035, $3.5 billion aggregate principal amount of 6.484% senior secured notes due 2045 and $500 million aggregate principal amount of 6.834% senior notes due 2055. The net proceeds from the issuance of the CCO Safari II notes were deposited into an escrow account, included in restricted cash and cash equivalents on the consolidated balance sheet as of December 31, 2015, and will be used to partially finance the TWC Transaction as well as for general corporate purposes. The release of the proceeds to the Company is subject to satisfaction of certain conditions, including the closing of the TWC Transaction. Upon release of the proceeds, CCO Safari II will merge into Charter Operating and the CCO Safari II notes will become obligations of Charter Operating and Charter Communications Operating Capital Corp. Contingent upon closing of the TWC Transaction and release of the proceeds from escrow, the Company will be obligated to pay approximately $143 million of additional debt issuance fees. Should the Merger Agreement be terminated prior to the consummation of the TWC Transaction, or upon expiration of the escrow agreement on May 23, 2016 (or six months following such date in the event of an extension of the Merger Agreement), such amounts placed in escrow must be used to settle any outstanding CCO Safari II notes at a price of 101% of the aggregate principal amount. Upon release of the proceeds from escrow, the CCO Safari II notes will be senior debt obligations of Charter Operating and Charter Communications Operating Capital Corp. and will be guaranteed by CCO Holdings and Charter Operating's subsidiaries. In addition, the CCO Safari II notes will be secured by a perfected first priority security interest in substantially all of the assets of Charter Operating to the extent such liens can be perfected under the Uniform Commercial Code by the filing of a financing statement and the liens will rank equally with the liens on the collateral securing obligations under the Charter Operating credit facilities. Upon release of the proceeds from escrow, Charter Operating may redeem some or all of the CCO Safari II notes at any time at a premium. CCO Safari II Notes - Restrictive Covenants The CCO Safari II notes are subject to the terms and conditions of the indenture governing the CCO Safari II notes as well as a separate escrow agreement until Charter Operating re-assumes its obligations for the CCO Safari II notes. The CCO Safari II notes contain customary representations and warranties and affirmative covenants with limited negative covenants. As required by the CCO Safari II indenture, CCO Safari II and Bank of America, N.A, as escrow agent, entered into an escrow agreement pursuant to which, CCO Safari II is required to maintain an escrow account over which the administrative agent has a perfected first priority security interest on behalf of the CCO Safari II notes holders. The events of default under the CCO Safari II indenture include, among others, the failure to make payments when due or within the applicable grace period. CCO Safari III Credit Facilities In August 2015, Charter Operating closed on a new term loan H facility ("Term H Loan") and a new term loan I facility ("Term I Loan") totaling an aggregate principal amount of $3.8 billion pursuant to the terms of Charter Operating’s Amended and Restated Credit Agreement dated April 11, 2012 (the “Credit Agreement”). The Term H Loan was issued at a principal amount of $1.0 billion and matures in 2021. Pricing on the Term H Loan was set at LIBOR plus 2.50% with a LIBOR floor of 0.75% and issued at a price of 99.75% of the aggregate principal amount. The Term I Loan was issued at a principal amount of $2.8 billion and matures in 2023. Pricing on the Term I Loan was set at LIBOR plus 2.75% with a LIBOR floor of 0.75% and issued at a price of 99.75% of the aggregate principal amount. The CCO Safari III credit facilities form a portion of the debt financing to be used to fund the cash portion of the TWC Transaction. Charter Operating assigned all of its obligations with respect to the CCO Safari III credit facilities and transferred all of the proceeds from the CCO Safari III credit facilities to CCO Safari III, and CCO Safari III placed the funds in an escrow account, included in restricted cash and cash equivalents on the consolidated balance sheet as of December 31, 2015, pending the closing of the TWC Transaction, at which time, subject to certain conditions, Charter Operating will re-assume the obligations in respect of the CCO Safari III credit facilities under the Credit Agreement. Contingent upon closing of the TWC Transaction and release of the proceeds from escrow, Charter will be obligated to pay approximately $34 million of additional debt issuance fees. Should the TWC Transaction be terminated, such amounts placed into escrow will be used to settle any outstanding CCO Safari III credit facilities at a price of 99.75% of the aggregate principal amount. Charter Operating Credit Facilities The Charter Operating credit facilities have an outstanding principal amount of $3.6 billion at December 31, 2015 as follows: • A term loan A with a remaining principal amount of $647 million , which is repayable in quarterly installments and aggregating $66 million in 2016 and $75 million in 2017, with the remaining balance due at final maturity on April 22, 2018. Pricing on term loan A is LIBOR plus 2% ; • A term loan E with a remaining principal amount of approximately $1.5 billion , which is repayable in equal quarterly installments and aggregating $15 million in each loan year, with the remaining balance due at final maturity on July 1, 2020. Pricing on term loan E is LIBOR plus 2.25% with a LIBOR floor of 0.75% ; • A term loan F with a remaining principal amount of approximately $1.2 billion , which is repayable in equal quarterly installments and aggregating $12 million in each loan year, with the remaining balance due at final maturity on January 3, 2021. Pricing on term loan F is LIBOR plus 2.25% with a LIBOR floor of 0.75% ; and • A revolving loan with an outstanding balance of $273 million at December 31, 2015 and allowing for borrowings of up to $1.3 billion , maturing on April 22, 2018. Pricing on the revolving loan is LIBOR plus 2% with a commitment fee of 0.30% . Amounts outstanding under the Charter Operating credit facilities bear interest, at Charter Operating’s election, at a base rate or LIBOR ( 0.42% and 0.17% as of December 31, 2015 and December 31, 2014 , respectively), as defined, plus an applicable margin. The Charter Operating credit facilities also allow us to enter into incremental term loans in the future, with amortization as set forth in the notices establishing such term loans. Although the Charter Operating credit facilities allow for the incurrence of a certain amount of incremental term loans subject to pro-forma compliance with its financial maintenance covenants, no assurance can be given that the Company could obtain additional incremental term loans in the future if Charter Operating sought to do so or what amount of incremental term loans would be allowable at any given time under the terms of the Charter Operating credit facilities. The obligations of Charter Operating under the Charter Operating credit facilities are guaranteed by Charter Operating’s immediate parent company, CCO Holdings, and subsidiaries of Charter Operating. The obligations are also secured by (i) a lien on substantially all of the assets of Charter Operating and its subsidiaries, to the extent such lien can be perfected under the Uniform Commercial Code by the filing of a financing statement, and (ii) a pledge by CCO Holdings of the equity interests owned by it in any of Charter Operating’s subsidiaries, as well as inter-company obligations owing to it by any of such entities. Charter Operating Credit Facilities — Restrictive Covenants The Charter Operating credit facilities contain representations and warranties, and affirmative and negative covenants customary for financings of this type. The financial covenants measure performance against standards set for leverage to be tested as of the end of each quarter. The Charter Operating credit facilities contain provisions requiring mandatory loan prepayments under specific circumstances, including in connection with certain sales of assets, so long as the proceeds have not been reinvested in the business. Additionally, the Charter Operating credit facilities provisions contain an allowance for restricted payments so long as the consolidated leverage ratio is no greater than 3.5 after giving pro forma effect to such restricted payment. The Charter Operating credit facilities permit Charter Operating and its subsidiaries to make distributions to pay interest on the currently outstanding subordinated and parent company indebtedness, provided that, among other things, no default has occurred and is continuing under the Charter Operating credit facilities. The events of default under the Charter Operating credit facilities include, among other things: • the failure to make payments when due or within the applicable grace period; • the failure to comply with specified covenants including the covenant to maintain the consolidated leverage ratio at or below 5.0 to 1.0 and the consolidated first lien leverage ratio at or below 4.0 to 1.0 ; • the failure to pay or the occurrence of events that cause or permit the acceleration of other indebtedness owing by CCO Holdings, Charter Operating, or Charter Operating’s subsidiaries in aggregate principal amounts in excess of $100 million ; and • similar to provisions contained in the note indentures and credit facility, the consummation of any change of control transaction resulting in any person or group having power, directly or indirectly, to vote more than 50% of the ordinary voting power for the management of Charter Operating on a fully diluted basis and the occurrence of a ratings event including a downgrade in the corporate family rating during a ratings decline period. CCO Safari III Credit Facilities — Restrictive Covenants The CCO Safari III credit facilities are subject to the terms and conditions of a separate credit facility and escrow agreement until Charter Operating re-assumes its obligations for the loan. The CCO Safari III credit facilities contain customary representations and warranties and affirmative covenants with limited negative covenants prohibiting CCO Safari III from engaging in any material activities other than performing its obligations under the credit facilities and the escrow agreement or otherwise issuing other indebtedness pursuant to escrow arrangements similar to the CCO Safari III credit facilities and escrow agreement. As required by the CCO Safari III credit facilities, CCO Safari III, Bank of America, N.A., and U.S. Bank, N.A., as escrow agent, entered into an escrow agreement pursuant to which CCO Safari III is required to maintain an escrow account over which the administrative agent has a perfected first priority security interest on behalf of the CCO Safari III credit facilities lenders. The events of default under the CCO Safari III credit facilities include, among others: • the failure to make payments when due or within the applicable grace period; • any acceleration of the loans and termination of the commitments under the Charter Operating credit facilities; and • the escrow agreement shall cease to be in full force and effect or the lien in the escrow account shall cease to be enforceable with the same effect and priority. Limitations on Distributions Distributions by the Company’s subsidiaries to a parent company for payment of principal on parent company notes are restricted under the indentures and credit facilities discussed above, unless there is no default under the applicable indenture and credit facilities, and unless each applicable subsidiary’s leverage ratio test is met at the time of such distribution. As of December 31, 2015 , there was no default under any of these indentures or credit facilities. Distributions by Charter Operating for payment of principal on parent company notes are further restricted by the covenants in its credit facilities. In addition to the limitation on distributions under the various indentures discussed above, distributions by the Company’s subsidiaries may only be made if they have “surplus” as defined in the Delaware Limited Liability Company Act. Liquidity and Future Principal Payments The Company continues to have significant amounts of debt, and its business requires significant cash to fund principal and interest payments on its debt, capital expenditures and ongoing operations. As set forth below, the Company has significant future principal payments beginning in 2018 and beyond. The Company continues to monitor the capital markets, and it expects to undertake refinancing transactions and utilize free cash flow and cash on hand to further extend or reduce the maturities of its principal obligations. The timing and terms of any refinancing transactions will be subject to market conditions. Based upon outstanding indebtedness as of December 31, 2015 and assuming the TWC Transaction closes in the second quarter of 2016, the amortization of term loans, and the maturity dates for all senior and subordinated notes, total future principal payments on the total borrowings under all debt agreements as of December 31, 2015 , are as follows: Year Amount 2016 $ 121 2017 140 2018 844 2019 665 2020 4,202 Thereafter 29,930 $ 35,902 |
Treasury Stock (Notes)
Treasury Stock (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Treasury Stock | Treasury Stock During the years ended December 31, 2015 , 2014 and 2013 , the Company withheld 196,523 , 141,257 and 150,258 shares, respectively, of its common stock in payment of $38 million , $19 million and $15 million , respectively, of tax withholdings owed by employees upon vesting of restricted shares and stock options. As of December 31, 2015 , Company also withheld 49,260 shares of its common stock representing the exercise costs owed by employees upon exercise of stock options. In December 2015 and 2014, Charter's board of directors approved the retirement of treasury stock and 245,783 and 141,257 shares of treasury stock were retired as of December 31, 2015 and 2014 , respectively. The Company accounted for treasury stock using the cost method and the treasury shares upon repurchase were reflected on the Company’s consolidated balance sheets as a component of total shareholders’ equity. Upon retirement, these treasury shares were allocated between additional paid-in capital and accumulated deficit based on the cost of original issue included in additional paid-in capital. |
Common Stock (Notes)
Common Stock (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Class of Stock Disclosures [Abstract] | |
Common Stock | Common Stock Charter’s Class A common stock and Class B common stock are identical except with respect to certain voting, transfer and conversion rights. Holders of Class A common stock are entitled to one vote per share and holders of Class B common stock are entitled to votes equaling 35% of the voting interests in Charter on a fully diluted basis. The Company currently does not have any outstanding Class B Common Stock. In 2014 and 2013, the Company issued approximately 5.2 million and 4.5 million shares, respectively, of Charter Class A common stock as a result of exercises by holders who received warrants pursuant to the Joint Plan of Reorganization upon the Company's emergence from bankruptcy in 2009. The exercises resulted in proceeds to the Company of approximately $90 million and $76 million , respectively. As of December 31, 2015 and 2014, there were no warrants outstanding. The following table summarizes our shares outstanding for the three years ended December 31, 2015 : Class A Common Stock Class B Common Stock BALANCE, December 31, 2012 101,176,247 — Option exercises 543,221 — Restricted stock issuances, net of cancellations 4,879 — Stock issuances from exercise of warrants 4,481,656 — Restricted stock unit vesting 88,330 — Purchase of treasury stock (see Note 9) (150,258 ) — BALANCE, December 31, 2013 106,144,075 — Option exercises 640,342 — Restricted stock issuances, net of cancellations 9,090 — Stock issuances from exercise of warrants 5,243,167 — Restricted stock unit vesting 104,270 — Purchase of treasury stock (see Note 9) (141,257 ) — BALANCE, December 31, 2014 111,999,687 — Option exercises 579,173 — Restricted stock issuances, net of cancellations 6,920 — Restricted stock unit vesting 98,831 — Purchase of treasury stock (see Note 9) (245,783 ) — BALANCE, December 31, 2015 112,438,828 — |
Accounting for Derivative Instr
Accounting for Derivative Instruments and Hedging Activities (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Accounting for Derivative Instruments and Hedging Activities | Accounting for Derivative Instruments and Hedging Activities The Company uses interest rate derivative instruments to manage its interest costs and reduce the Company’s exposure to increases in floating interest rates. The Company manages its exposure to fluctuations in interest rates by maintaining a mix of fixed and variable rate debt. Using interest rate derivative instruments, the Company agrees to exchange, at specified intervals through 2017, the difference between fixed and variable interest amounts calculated by reference to agreed-upon notional principal amounts. The Company does not hold or issue derivative instruments for speculative trading purposes. The effect of interest rate derivatives on the Company’s consolidated balance sheets is presented in the table below: December 31, 2015 December 31, 2014 Accrued interest $ 3 $ 2 Other long-term liabilities $ 10 $ 16 Accumulated other comprehensive loss $ (13 ) $ (22 ) The Company holds interest rate derivative instruments not designated as hedges which are marked to fair value, with the impact recorded as a gain or loss on derivative instruments, net in the Company's consolidated statements of operations. While these interest rate derivative instruments are not designated as cash flow hedges for accounting purposes, management continues to believe such instruments are closely correlated with the respective debt, thus managing associated risk. These interest rate derivative instruments were de-designated in 2013 and the balance that remains in accumulated other comprehensive loss for these interest rate derivative instruments is being amortized over the respective lives of the contracts and recorded as a loss within gain (loss) on derivative instruments, net in the Company's consolidated statements of operations. The estimated net amount of existing losses that are reported in accumulated other comprehensive loss as of December 31, 2015 that is expected to be reclassified into earnings within the next twelve months is approximately $8 million . The effects of derivative instruments on the Company’s consolidated statements of operations is presented in the table below. Year Ended December 31, 2015 2014 2013 Gain (loss) on derivative instruments, net: Change in fair value of interest rate derivative instruments not designated as cash flow hedges $ 5 $ 12 $ 38 Loss reclassified from accumulated other comprehensive loss into earnings as a result of cash flow hedge discontinuance (9 ) (19 ) (27 ) $ (4 ) $ (7 ) $ 11 As of December 31, 2015 and 2014 , the Company had $1.1 billion and $1.4 billion , respectively, in notional amounts of interest rate derivative instruments outstanding. In December 2016, $250 million of currently effective swaps expire and therefore the notional amount of currently effective interest rate swaps will decrease. The notional amounts of interest rate instruments do not represent amounts exchanged by the parties and, thus, are not a measure of exposure to credit loss. The amounts exchanged were determined by reference to the notional amount and the other terms of the contracts. |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The accounting guidance establishes a three-level hierarchy for disclosure of fair value measurements, based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date, as follows: • Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement. Financial Assets and Liabilities The Company has estimated the fair value of its financial instruments as of December 31, 2015 and 2014 using available market information or other appropriate valuation methodologies. Considerable judgment, however, is required in interpreting market data to develop the estimates of fair value. Accordingly, the estimates presented in the accompanying consolidated financial statements are not necessarily indicative of the amounts the Company would realize in a current market exchange. The carrying amounts of cash and cash equivalents, receivables, payables and other current assets and liabilities approximate fair value because of the short maturity of those instruments. The Company's restricted cash and cash equivalents are primarily invested in money market funds and 90-day or less commercial paper. The money market funds are valued at the closing price reported by the fund sponsor from an actively traded exchange and commercial paper is valued at cost plus the accretion of the discount on a yield to maturity basis, which approximated fair value. The money market funds and commercial paper potentially subject us to concentration of credit risk. The amount invested within any one financial instrument did not exceed $1.5 billion and $550 million during the years ended December 31, 2015 and 2014 , respectively. As of December 31, 2015 and 2014 , there were no significant concentrations of financial instruments in a single investee, industry or geographic location. The interest rate derivative instruments are valued using a present value calculation based on an implied forward LIBOR curve (adjusted for Charter Operating’s or counterparties’ credit risk). The weighted average pay rate for the Company’s currently effective interest rate derivative instruments was 1.61% and 1.87% at December 31, 2015 and 2014 , respectively (exclusive of applicable spreads). The Company's financial instruments that are accounted for at fair value on a recurring basis are presented in the table below. December 31, 2015 December 31, 2014 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Money market funds $ 14,330 $ — $ — $ 4,112 $ — $ — Commercial paper $ — $ 7,934 $ — $ — $ 2,999 $ — Liabilities Interest rate derivatives $ — $ 13 $ — $ — $ 18 $ — A summary of the carrying value and fair value of the Company’s debt at December 31, 2015 and 2014 is as follows: December 31, 2015 December 31, 2014 Carrying Value Fair Value Carrying Value Fair Value Debt Senior notes $ 28,433 $ 28,744 $ 13,725 $ 14,205 Credit facilities $ 7,290 $ 7,274 $ 7,162 $ 7,186 The estimated fair value of the Company’s senior notes at December 31, 2015 and 2014 is based on quoted market prices in active markets and is classified within Level 1 of the valuation hierarchy, while the estimated fair value of the Company's credit facilities is based on quoted market prices in inactive markets and is classified within Level 2. Non-financial Assets and Liabilities The Company’s non-financial assets such as franchises, property, plant, and equipment, and other intangible assets are not measured at fair value on a recurring basis; however they are subject to fair value adjustments in certain circumstances, such as when there is evidence that an impairment may exist. No impairments were recorded in 2015 , 2014 and 2013 . |
Operating Costs and Expenses (N
Operating Costs and Expenses (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Operating Costs and Expenses [Abstract] | |
Operating Costs and Expenses | Operating Costs and Expenses Operating costs and expenses consist of the following for the years presented: Year Ended December 31, 2015 2014 2013 Programming $ 2,678 $ 2,459 $ 2,146 Franchise, regulatory and connectivity 435 428 399 Costs to service customers 1,705 1,679 1,575 Marketing 619 610 557 Transition costs 72 14 — Other 917 783 668 $ 6,426 $ 5,973 $ 5,345 Programming costs consist primarily of costs paid to programmers for basic, premium, digital, video on demand, and pay-per-view programming. Franchise, regulatory and connectivity costs represent payments to franchise and regulatory authorities and costs directly related to providing Internet and voice services. Costs to service customers include costs related to field operations, network operations and customer care for the Company's residential and small and medium business customers including internal and third party labor for installations, service and repairs, maintenance, billing and collection, occupancy and vehicle costs. Marketing costs represents the costs of marketing to our current and potential commercial and residential customers including labor costs. Transition costs represent incremental costs incurred to increase the scale of the Company's business as a result of the TWC Transaction, Bright House Transaction and Comcast Transactions. See Notes 3 and 8 for additional information. Other includes bad debt expense, corporate overhead, advertising sales expenses, costs associated with the Company's enterprise business customers, property tax and insurance and stock compensation expense, among others. |
Other Operating Expenses, Net (
Other Operating Expenses, Net (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Other Operating Expenses, Net | Other Operating Expenses, Net Other operating expenses, net consist of the following for the years presented: Year Ended December 31, 2015 2014 2013 Merger and acquisition costs $ 70 $ 38 $ 16 Special charges, net 15 14 23 Loss on sale of assets, net 4 10 8 $ 89 $ 62 $ 47 Merger and acquisition costs Merger and acquisition costs represents costs incurred in connection with merger and acquisition transactions, such as advisory, legal and accounting fees, among others. Special charges, net Special charges, net, primarily includes severance charges and net amounts of litigation settlements. Loss on sale of assets, net Loss on sale of assets, net, represents the net loss recognized on the sales and disposals of fixed assets and cable systems. |
Stock Compensation Plans (Notes
Stock Compensation Plans (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation Plans | Stock Compensation Plans Charter’s 2009 Stock Incentive Plan provides for grants of non-qualified stock options, incentive stock options, stock appreciation rights, dividend equivalent rights, performance units and performance shares, share awards, phantom stock, restricted stock units and restricted stock. Directors, officers and other employees of the Company and its subsidiaries, as well as others performing consulting services for the Company, are eligible for grants under the 2009 Stock Incentive Plan. The 2009 Stock Incentive Plan allows for the issuance of up to 14 million shares of Charter Class A common stock (or units convertible into Charter Class A common stock). Stock options granted prior to 2014 generally vest annually over three or four years from either the grant date or delayed vesting commencement dates. Stock options generally expire ten years from the grant date. Restricted stock vests annually over a one to four -year period beginning from the date of grant. Certain stock options and restricted stock vest based on achievement of stock price hurdles. Restricted stock units have no voting rights, and restricted stock units granted prior to 2014 vest ratably over three or four years from either the grant date or delayed vesting commencement dates. Stock options and restricted stock units granted in 2014 and 2015 cliff vest over three years. As of December 31, 2015 , total unrecognized compensation remaining to be recognized in future periods totaled $89 million for stock options, $2 million for restricted stock and $31 million for restricted stock units and the weighted average period over which they are expected to be recognized is 2 years for stock options, 3 months for restricted stock and 2 years for restricted stock units. The Company recorded $78 million , $55 million and $48 million of stock compensation expense for the years ended December 31, 2015 , 2014 and 2013 , respectively, which is included in operating costs and expenses. A summary of the activity for the Company’s stock options for the years ended December 31, 2015 , 2014 and 2013 , is as follows (shares in thousands, except per share data): Year Ended December 31, 2015 2014 2013 Shares Weighted Average Exercise Price Aggregate Intrinsic Value Shares Weighted Average Exercise Price Aggregate Intrinsic Value Shares Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding, beginning of period 3,689 $ 86.29 3,142 $ 59.86 3,552 $ 54.35 Granted 1,301 $ 160.16 1,234 $ 136.75 276 $ 108.89 Exercised (579 ) $ 65.34 $ 68 (640 ) $ 52.50 $ 55 (543 ) $ 51.22 $ 33 Canceled (72 ) $ 140.36 (47 ) $ 104.57 (143 ) $ 50.54 Outstanding, end of period 4,339 $ 110.34 $ 316 3,689 $ 86.29 3,142 $ 59.86 Weighted average remaining contractual life 7 years 7 years 7 years Options exercisable, end of period 1,354 $ 55.95 $ 172 1,317 $ 55.65 1,128 $ 52.07 Options expected to vest, end of period 2,730 $ 132.41 $ 139 Weighted average fair value of options granted $ 59.86 $ 55.08 $ 41.52 A summary of the activity for the Company’s restricted stock for the years ended December 31, 2015 , 2014 and 2013 , is as follows (shares in thousands, except per share data): Year Ended December 31, 2015 2014 2013 Shares Weighted Average Grant Price Shares Weighted Average Grant Price Shares Weighted Average Grant Price Outstanding, beginning of period 431 $ 57.24 653 $ 56.14 928 $ 54.16 Granted 7 $ 182.05 9 $ 138.57 13 $ 101.81 Vested (220 ) $ 58.92 (231 ) $ 57.35 (280 ) $ 51.62 Canceled — $ — — $ — (8 ) $ 56.50 Outstanding, end of period 218 $ 59.50 431 $ 57.24 653 $ 56.14 A summary of the activity for the Company’s restricted stock units for the years ended December 31, 2015 , 2014 and 2013 , is as follows (shares in thousands, except per share data): Year Ended December 31, 2015 2014 2013 Shares Weighted Average Grant Price Shares Weighted Average Grant Price Shares Weighted Average Grant Price Outstanding, beginning of period 325 $ 104.01 288 $ 74.73 327 $ 61.79 Granted 164 $ 162.01 153 $ 136.54 73 $ 109.96 Vested (99 ) $ 71.12 (104 ) $ 70.23 (88 ) $ 61.17 Canceled (17 ) $ 140.55 (12 ) $ 112.53 (24 ) $ 55.28 Outstanding, end of period 373 $ 136.51 325 $ 104.01 288 $ 74.73 |
Income Taxes (Notes)
Income Taxes (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes All of Charter’s operations are held through Charter Holdco and its direct and indirect subsidiaries. Prior to July 2, 2015, Charter Holdco was treated as a partnership for tax purposes. Effective on July 2, 2015, Charter elected to treat two of its wholly owned subsidiaries as disregarded entities for federal and state income tax purposes (the “Election”). The subsidiaries that made the Election are two of the three partners in Charter Holdco. This Election resulted in a deemed liquidation of Charter Holdco into Charter solely for federal and state income tax purposes, and resulted in a net increase of $638 million to the tax basis of Charter Holdco's amortizable and depreciable assets. After the Election, all taxable income, gains, losses, deductions and credits of Charter Holdco and its indirect limited liability company subsidiaries will be treated as income of Charter. In addition, the indirect subsidiaries of Charter Holdco that are corporations joined the Charter consolidated group. The impact of the Election to the Charter income tax provision, net of valuation allowance, was $187 million of income tax benefit recorded as a discrete tax event during the year ended December 31, 2015. For the years ended December 31, 2015 , 2014 , and 2013 , the Company recorded deferred income tax benefit (expense) as shown below. Income tax benefit (expense) is recognized primarily through decreases (increases) in deferred tax liabilities related to Charter’s franchises which are characterized as indefinite-lived for book financial reporting purposes, as well as to a lesser extent through current federal and state income tax expense. The tax provision in future periods will vary based on current and future temporary differences, as well as future operating results. Current and deferred income tax benefit (expense) is as follows: Year Ended December 31, 2015 2014 2013 Current expense: Federal income taxes $ (1 ) $ (1 ) $ (1 ) State income taxes (4 ) (2 ) (7 ) Current income tax expense (5 ) (3 ) (8 ) Deferred benefit (expense): Federal income taxes 53 (192 ) (101 ) State income taxes 12 (41 ) (11 ) Deferred income tax benefit (expense) 65 (233 ) (112 ) Income tax benefit (expense) $ 60 $ (236 ) $ (120 ) Income tax benefit for the year ended December 31, 2015 changed from income tax expense recognized during the year ended December 31, 2014 primarily as a result of the deemed liquidation of Charter Holdco. Income tax expense for the year ended December 31, 2013 included step-ups in basis of indefinite-lived assets for tax, but not GAAP purposes, including the effects of partnership gains related to financing transactions and a partnership restructuring, which decreased the Company's net deferred tax liability related to indefinite-lived assets by $137 million . Of the $137 million decrease in net deferred tax liability, $101 million of deferred tax benefits correspond to gains recognized by corporate subsidiaries of Charter, which were partners in Charter Holdco. These gains resulted in a step-up in the underlying tax basis of Charter Holdco's assets and a corresponding reduction in the deferred tax liabilities for financial reporting purposes. In addition, on December 31, 2013, Charter restructured one of its tax partnerships which resulted in a $405 million net step-up to primarily intangible assets and a deferred income tax benefit of $36 million due to a shift in step-ups to indefinite-lived intangibles. The Company’s effective tax rate differs from that derived by applying the applicable federal income tax rate of 35% for the years ended December 31, 2015 , 2014 , and 2013 , respectively, as follows: Year Ended December 31, 2015 2014 2013 Statutory federal income taxes $ 116 $ (18 ) $ 17 Statutory state income taxes, net (4 ) (2 ) (7 ) Nondeductible expenses (12 ) (10 ) (3 ) Change in valuation allowance (250 ) (203 ) (127 ) Organizational restructuring 187 — — Federal tax credit 18 — — State rate changes 4 (3 ) 4 Other 1 — (4 ) Income tax benefit (expense) $ 60 $ (236 ) $ (120 ) The change in the valuation allowance above differs from the change between the beginning and ending deferred tax position due to a reduction of certain deferred tax assets and valuation allowance with no impact to the consolidated statements of operations. The tax effects of these temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2015 and 2014 are presented below. December 31, 2015 2014 Deferred tax assets: Goodwill $ 315 $ 251 Investment in partnership — 293 Loss carryforwards 4,247 3,595 Other intangibles 211 112 Accrued and other 227 172 Total gross deferred tax assets 5,000 4,423 Less: valuation allowance (3,186 ) (3,149 ) Deferred tax assets $ 1,814 $ 1,274 Deferred tax liabilities: Indefinite life intangibles $ (1,582 ) $ (1,428 ) Property, plant and equipment (1,822 ) (1,247 ) Indirect corporate subsidiaries: Indefinite life intangibles — (122 ) Other — (125 ) Deferred tax liabilities (3,404 ) (2,922 ) Net deferred tax liabilities $ (1,590 ) $ (1,648 ) Net deferred tax liabilities included approximately $28 million and $234 million at December 31, 2015 and 2014 , respectively, relating to certain indirect subsidiaries that file separate income tax returns. The decrease in net deferred tax liabilities relating to certain indirect subsidiaries is a result of Charter Holdco’s indirect subsidiaries that are corporations joining the Charter consolidated group as noted above in connection with the Election. Following the Election, the remaining indirect subsidiary deferred tax balances represent only certain state jurisdictions. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. Due to the Company’s history of losses, valuation allowances have been established except for future taxable income that will result from the reversal of existing temporary differences for which deferred tax liabilities are recognized. Realization of deferred tax assets is dependent on generating sufficient taxable income prior to expiration of the loss carryforwards. The amount of the deferred tax assets considered realizable and, therefore, reflected in the consolidated balance sheet, would be increased at such time that it is more-likely-than-not future taxable income will be realized during the carryforward period. The Company periodically evaluates the facts and circumstances surrounding this assessment and, at the time this consideration is met, an adjustment to reverse some portion of the existing valuation allowance would result. As of December 31, 2015 , Charter had approximately $11.3 billion of federal tax net operating loss carryforwards resulting in a gross deferred tax asset of approximately $4.0 billion . Federal tax net operating loss carryforwards expire in the years 2020 through 2035; with $560 million expiring through 2023, $5.7 billion expiring between 2024 and 2028, and $5.0 billion expiring thereafter. These losses resulted from the operations of Charter Holdco and its subsidiaries. In addition, as of December 31, 2015 , Charter had state tax net operating loss carryforwards, resulting in a gross deferred tax asset (net of federal tax benefit) of approximately $365 million . State tax net operating loss carryforwards generally expire in the years 2016 through 2035. Included in the loss carryforwards is $222 million of loss, the tax benefit of which will be recorded through equity when realized as a reduction of income tax payable. On May 1, 2013, Liberty Media Corporation (“Liberty Media”) completed its purchase of a 27% beneficial interest in Charter. Upon closing, Charter experienced a second “ownership change” as defined in Section 382 of the Internal Revenue Code resulting in a second set of limitations on Charter’s use of its existing federal and state net operating losses, capital losses, and tax credit carryforwards. The first ownership change limitations that applied as a result of our emergence from bankruptcy in 2009 will also continue to apply. As of December 31, 2015 , $9.1 billion of federal tax loss carryforwards are unrestricted and available for Charter’s immediate use, while approximately $2.2 billion of federal tax loss carryforwards are still subject to Section 382 and other restrictions. Pursuant to these restrictions, Charter estimates that approximately $400 million in 2016 and an additional $226 million annually over each of the next eight years of federal tax loss carryforwards should become unrestricted and available for Charter's use. Since the limitation amounts accumulate for future use to the extent they are not utilized in any given year, Charter believes its loss carryforwards should become fully available to offset future taxable income, if any. Charter’s state loss carryforwards are subject to similar, but varying limitations on their future use. If the Company was to experience another “ownership change” in the future, its ability to use its loss carryforwards could be subject to further limitations. In determining the Company’s tax provision for financial reporting purposes, the Company establishes a reserve for uncertain tax positions unless such positions are determined to be “more likely than not” of being sustained upon examination, based on their technical merits. There is considerable judgment involved in making such a determination. The Company has recorded unrecognized tax benefits totaling approximately $5 million as of December 31, 2015 , presented net of deferred taxes. The Company did not have any unrecognized tax benefits as of December 31, 2014 . The Company does not currently anticipate that its existing reserves related to uncertain income tax positions as of December 31, 2015 will significantly increase or decrease during the twelve-month period ending December 31, 2016; however, various events could cause the Company’s current expectations to change in the future. These uncertain tax positions, if ever recognized in the financial statements, would be recorded in the consolidated statements of operations as part of the income tax provision. No tax years for Charter or Charter Holdco, for income tax purposes, are currently under examination by the IRS. Tax years ending 2012 through 2015 remain subject to examination and assessment. Years prior to 2012 remain open solely for purposes of examination of Charter’s loss and credit carryforwards. |
Related Party Transactions (Not
Related Party Transactions (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The following sets forth certain transactions in which the Company and the directors, executive officers, and affiliates of the Company are involved or, in the case of the management arrangements, subsidiaries that are debt issuers that pay certain of their parent companies for services. Charter is a party to management arrangements with Charter Holdco and certain of its subsidiaries. Under these agreements, Charter and Charter Holdco provide management services for the cable systems owned or operated by their subsidiaries. Costs associated with providing these services are charged directly to the Company’s operating subsidiaries. All other costs incurred on behalf of Charter’s operating subsidiaries are considered a part of the management fee. These costs are recorded as a component of operating costs and expenses, in the accompanying consolidated financial statements. The management fee charged to the Company’s operating subsidiaries approximated the expenses incurred by Charter Holdco and Charter on behalf of the Company’s operating subsidiaries in 2015 , 2014 , and 2013 . Equity Investments On May 1, 2015, the Company acquired a 35% equity interest in ActiveVideo Networks ("AVN") for $55 million in cash representing the initial investment, a capital call and associated transaction fees. AVN is the developer of CloudTV, a cloud-based software platform enabling service providers, content aggregators, and consumer electronic manufacturers to deploy new services by virtualizing consumer premise equipment functions in the cloud. AVN’s software platform is one of the key technologies enabling the development and deployment of the Company’s cloud-based user interface, Spectrum Guide ® . The Company applies the equity method of accounting to this investment which is recorded in other noncurrent assets in the consolidated balance sheet as of December 31, 2015 . For the year ended December 31, 2015 , the Company recorded equity losses for AVN and other investments of $7 million in other expense, net. The Company has agreements with AVN and other equity investments pursuant to which the Company made related party transaction payments to investees totaling approximately $28 million during the year ended December 31, 2015 . Liberty Broadband On May 23, 2015, in connection with the execution of the Merger Agreement and the amendment of the Contribution Agreement, Charter entered into the Amended and Restated Stockholders Agreement with Liberty Broadband, A/N and New Charter (the “Stockholders Agreement”). The Stockholders Agreement replaced Charter’s existing stockholders agreement with Liberty Broadband, dated September 29, 2014, and superseded the amended and restated stockholders agreement among Charter, New Charter, Liberty Broadband and A/N, dated March 31, 2015. Charter’s existing stockholders agreement with Liberty Broadband (as amended by an investment agreement between Liberty Broadband, Charter and New Charter, dated as of May 23, 2015) will remain in effect until the closing of the TWC Transaction or the Bright House Transaction, whichever occurs earlier, and, in the event the Stockholders Agreement is terminated, will revive and continue in full force and effect. Certain provisions of the Stockholders Agreement became effective upon its execution. See Note 3 for additional information. Under the terms of the Stockholders Agreement, the number of New Charter directors will be fixed at 13, and will include New Charter’s chief executive officer. Upon the closing of the Bright House Transaction, two designees selected by A/N and three designees selected by Liberty Broadband will become members of the board of directors of New Charter. The remaining eight directors (other than the chief executive officer, who is expected to become chairman of the board) will be independent directors selected by the nominating committee of the New Charter board by the approval of both a majority of the nominating committee and a majority of the directors that were not appointed by either A/N or Liberty Broadband. Thereafter, Liberty Broadband will be entitled to designate three nominees to be elected as directors and A/N will be entitled to designate two nominees to be elected as directors, in each case provided that each maintains certain specified voting or equity ownership thresholds, provided that each nominee must meet any applicable requirements or qualifications. Each of A/N and Liberty Broadband will be entitled to nominate at least one director to each of the committees of the Charter board of directors, subject to applicable stock exchange listing rules and certain specified voting or equity ownership thresholds for each of A/N and Liberty Broadband, and provided that the nominating and compensation committees will have at least a majority of directors independent from A/N, Liberty Broadband and New Charter (referred to as the “unaffiliated directors”). The nominating committee will be comprised of three unaffiliated directors, and one designee of each of A/N and Liberty Broadband. A/N and Liberty Broadband also will have certain other committee designation and other governance rights. Mr. Thomas Rutledge, the Company's Chief Executive Officer ("CEO"), will be offered the positions of CEO and chairman of New Charter. The Company is aware that Dr. Malone may be deemed to have a 36.8% voting interest in Liberty Interactive and is Chairman of the board of directors, an executive officer position, of Liberty Interactive. Liberty Interactive owns 38.0% of the common stock of HSN, Inc. (“HSN”) and has the right to elect 20% of the board members of HSN. Liberty Interactive wholly owns QVC, Inc (“QVC”). The Company has programming relationships with HSN and QVC which pre-date the Liberty Media Transaction. For the years ended December 31, 2015 and 2014 and nine months ended December 31, 2013, the Company recorded payments in aggregate of approximately $17 million , $14 million and $10 million , respectively, from HSN and QVC as part of channel carriage fees and revenue sharing arrangements for home shopping sales made to customers in Charter's footprint. Dr. Malone also serves on the board of directors of Discovery Communications, Inc., (“Discovery”) and the Company is aware that Dr. Malone owns 4.8% in the aggregate of the common stock of Discovery and has a 28.7% voting interest in Discovery for the election of directors. In addition, Dr. Malone owns approximately 10.8% in the aggregate of the common stock of Starz and has 47.2% of the voting power. Mr. Gregory Maffei, a member of Charter's board of directors, is a non-executive Chairman of the board of Starz. The Company purchases programming from both Discovery and Starz pursuant to agreements entered into prior to Dr. Malone and Mr. Maffei joining Charter's board of directors. Based on publicly available information, the Company does not believe that either Discovery or Starz would currently be considered related parties. The amounts paid in aggregate to Discovery and Starz represent less than 3% of total operating costs and expenses for the years ended December 31, 2015 and 2014 and nine months ended December 31, 2013. |
Commitments and Contingencies (
Commitments and Contingencies (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments The following table summarizes the Company’s payment obligations as of December 31, 2015 for its contractual obligations. Total 2016 2017 2018 2019 2020 Thereafter Contractual Obligations Operating Lease Obligations (1) $ 183 $ 51 $ 46 $ 32 $ 23 12 $ 19 Programming Minimum Commitments (2) 545 265 239 13 14 11 3 Other (3) 435 397 19 10 3 2 4 Total $ 1,163 $ 713 $ 304 $ 55 $ 40 $ 25 $ 26 (1) The Company leases certain facilities and equipment under non-cancelable operating leases. Leases and rental costs charged to expense for the years ended December 31, 2015 , 2014 and 2013 were $49 million , $43 million , $34 million , respectively. (2) The Company pays programming fees under multi-year contracts ranging from three to ten years, typically based on a flat fee per customer, which may be fixed for the term, or may in some cases escalate over the term. Programming costs included in the accompanying statement of operations were $2.7 billion , $2.5 billion and $2.1 billion for the years ended December 31, 2015 , 2014 , and 2013 respectively. Certain of the Company’s programming agreements are based on a flat fee per month or have guaranteed minimum payments. The table sets forth the aggregate guaranteed minimum commitments under the Company’s programming contracts. (3) “Other” represents other guaranteed minimum commitments, which consist primarily of commitments to the Company's customer premise equipment vendors. The following items are not included in the contractual obligation table due to various factors discussed below. However, the Company incurs these costs as part of its operations: • The Company rents utility poles used in its operations. Generally, pole rentals are cancelable on short notice, but the Company anticipates that such rentals will recur. Rent expense incurred for pole rental attachments for the years ended December 31, 2015 , 2014 , and 2013 was $53 million , $49 million , and $49 million , respectively. • The Company pays franchise fees under multi-year franchise agreements based on a percentage of revenues generated from video service per year. The Company also pays other franchise related costs, such as public education grants, under multi-year agreements. Franchise fees and other franchise-related costs included in the accompanying statement of operations were $212 million , $208 million , and $190 million for the years ended December 31, 2015 , 2014 , and 2013 respectively. • The Company also has $67 million in letters of credit, primarily to its various worker’s compensation, property and casualty, and general liability carriers, as collateral for reimbursement of claims. Litigation In 2014, following an announcement by Comcast and TWC of their intent to merge, Breffni Barrett and others filed suit in the Supreme Court of the State of New York for the County of New York against Comcast, TWC and their respective officers and directors. Later five similar class actions were consolidated with this matter (the “NY Actions”). The NY Actions were settled in July 2014, however, such settlement was terminated following the termination of the Comcast and TWC merger in April 2015. In May 2015, Charter and TWC announced their intent to merge. Subsequently, the parties in the NY Actions filed a Second Consolidated Class Action Complaint (the “Second Amended Complaint”), removing Comcast and Tango Acquisition Sub, Inc. as defendants and naming TWC, the members of the TWC board of directors, Charter and the merger subsidiaries as defendants. The Second Amended Complaint generally alleges, among other things, that the members of the TWC board of directors breached their fiduciary duties to TWC stockholders during the Charter merger negotiations and by entering into the merger agreement and approving the mergers, and that Charter and its subsidiaries aided and abetted such breaches of fiduciary duties. The complaint sought, among other relief, injunctive relief enjoining the stockholder vote on the mergers, unspecified declaratory and equitable relief, compensatory damages in an unspecified amount, and costs and attorneys’ fees. In September 2015, the parties entered into a memorandum of understanding (“MOU”) to settle the action. Pursuant to the MOU, the defendants issued certain supplemental disclosures relating to the mergers on a Form 8-K, and plaintiffs agreed to release with prejudice all claims that could have been asserted against defendants in connection with the mergers. The settlement is conditioned on, among other things, consummation of the transactions between TWC and Charter, and must be approved by the New York Supreme Court. In the event that the New York Supreme Court does not approve the settlement, the defendants intend to vigorously defend against any further litigation. In August 2015, a purported stockholder of Charter filed a lawsuit in the Delaware Court of Chancery, on behalf of a putative class of Charter stockholders, challenging the transactions between Charter, TWC, A/N, and Liberty Broadband announced by Charter on May 26, 2015 (collectively, the “Transactions”). The lawsuit names as defendants Liberty Broadband, Charter, the board of directors of Charter, and New Charter. Plaintiff alleged that the Transactions improperly benefit Liberty Broadband at the expense of other Charter shareholders, and that Charter issued a false and misleading proxy statement in connection with the Transactions. Plaintiff requested, among other things, that the Delaware Court of Chancery enjoin the September 21, 2015 special meeting of Charter stockholders at which Charter stockholders were asked to vote on the Transactions until the defendants disclosed certain information relating to Charter and the Transactions. The disclosures demanded by the plaintiff included (i) certain unlevered free cash flow projections for Charter and (ii) a Form of Proxy and Right of First Refusal Agreement (“Proxy”) by and among Liberty Broadband, A/N, Charter and New Charter, which was referenced in the description of the Second Amended and Restated Stockholders Agreement, dated May 23, 2015, among Charter, New Charter, Liberty Broadband and A/N. On September 9, 2015, Charter issued supplemental disclosures containing unlevered free cash flow projections for Charter. In return, the plaintiff agreed its disclosure claims were moot and withdrew its application to enjoin the Charter stockholder vote on the Transactions. Charter has not yet responded to this suit but intends to deny any liability, believes that it has substantial defenses, and intends to vigorously defend this suit. The Montana Department of Revenue ("Montana DOR") generally assesses property taxes on cable companies at 3% and on telephone companies at 6% . Historically, Bresnan's cable and telephone operations have been taxed separately by the Montana DOR. In 2010, the Montana DOR assessed Bresnan as a single telephone business and retroactively assessed it as such for 2007 through 2009. Bresnan filed a declaratory judgment action against the Montana DOR in Montana State Court challenging its property tax classifications for 2007 through 2010. The Montana State Court issued decisions in favor of Bresnan. The Montana DOR filed a notice of appeal to the Montana Supreme Court on September 20, 2012. On December 2, 2013, the Montana Supreme Court reversed the trial court’s decision. On June 19, 2014, the parties settled this dispute. For tax years 2007 through 2009, Charter reduced Bresnan acquisition liabilities by approximately $8 million with the offset to goodwill in 2014, and operating expenses were reduced by approximately $3 million for post-acquisition tax years. The Company is a defendant or co-defendant in several lawsuits involving alleged infringement of various patents relating to various aspects of its businesses. Other industry participants are also defendants in certain of these cases. In the event that a court ultimately determines that the Company infringes on any intellectual property rights, the Company may be subject to substantial damages and/or an injunction that could require the Company or its vendors to modify certain products and services the Company offers to its subscribers, as well as negotiate royalty or license agreements with respect to the patents at issue. While the Company believes the lawsuits are without merit and intends to defend the actions vigorously, no assurance can be given that any adverse outcome would not be material to the Company's consolidated financial condition, results of operations, or liquidity. The Company cannot predict the outcome of any such claims nor can it reasonably estimate a range of possible loss. The Company is party to lawsuits and claims that arise in the ordinary course of conducting its business, including lawsuits claiming violation of wage and hour laws. The ultimate outcome of these other legal matters pending against the Company cannot be predicted, and although such lawsuits and claims are not expected individually to have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity, such lawsuits could have, in the aggregate, a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity. Whether or not the Company ultimately prevails in any particular lawsuit or claim, litigation can be time consuming and costly and injure the Company's reputation. Regulation in the Cable Industry The operation of a cable system is extensively regulated by the Federal Communications Commission (“FCC”), some state governments and most local governments. The FCC has the authority to enforce its regulations through the imposition of substantial fines, the issuance of cease and desist orders and/or the imposition of other administrative sanctions, such as the revocation of FCC licenses needed to operate certain transmission facilities used in connection with cable operations. Future legislative and regulatory changes could adversely affect the Company’s operations. |
Employee Benefit Plan (Notes)
Employee Benefit Plan (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan The Company’s employees may participate in the Charter Communications, Inc. 401(k) Plan. Employees that qualify for participation can contribute up to 50% of their salary, on a pre-tax basis, subject to a maximum contribution limit as determined by the Internal Revenue Service. Each payroll period, the Company will contribute to the 401(k) Plan the total amount of the salary contribution the employee elects to defer between 1% and 50% . The Company’s matching contribution is discretionary and is equal to 50% of the amount of the salary reduction the participant elects to defer (up to 6% of the participant’s eligible compensation), excluding any catch-up contributions and is paid by the Company on a per pay period basis. The Company made contributions to the 401(k) plan totaling $23 million , $19 million and $16 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Recenlty Issued Accounting Stan
Recenlty Issued Accounting Standards (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), which is a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The new standard provides a single principles-based, five-step model to be applied to all contracts with customers, which steps are to (1) identify the contract(s) with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when each performance obligation is satisfied. More specifically, revenue will be recognized when promised goods or services are transferred to the customer in an amount that reflects the consideration expected in exchange for those goods or services. ASU 2014-09 will be effective, reflecting the one-year deferral, for interim and annual periods beginning after December 15, 2017 (January 1, 2018 for the Company). Early adoption of the standard is permitted but not before the original effective date. Companies can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company is currently in the process of evaluating the impact that the adoption of ASU 2014-09 will have on its consolidated financial statements and selecting the method of transition to the new standard. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"), which requires the cost of issuing debt to no longer be recorded as a separate asset but rather to be presented on the balance sheet as a direct reduction to the carrying value of the related debt liability, similar to the presentation of debt discounts. ASU 2015-03 will be effective for interim and annual periods beginning after December 15, 2015 (January 1, 2016 for the Company) including retrospective conforming presentation of prior periods presented. Early adoption of the standard is permitted. The Company early adopted ASU 2015-03 on December 31, 2015. The adoption of this standard resulted in a reclassification of deferred financing costs which caused a $136 million reduction to both other noncurrent assets and long-term debt on the consolidated balance sheet as of December 31, 2014; but it had no effect on the Company’s results of operations, financial condition or cash flows. In April 2015, the FASB issued ASU No. 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement ("ASU 2015-05"), which provides guidance in determining whether fees for purchasing cloud computing services (or hosted software solutions) are considered internal-use software or should be considered a service contract. The cloud computing agreement that includes a software license should be accounted for in the same manner as internal-use software if customer has contractual right to take possession of the software during the hosting period without significant penalty and it is feasible to either run the software on customer’s hardware or contract with another vendor to host the software. Arrangements that don’t meet the requirements for internal-use software should be accounted for as a service contract. ASU 2015-05 will be effective for interim and annual periods beginning after December 15, 2015 (January 1, 2016 for the Company). Early adoption of the standard is permitted. The Company is currently in the process of evaluating the impact that the adoption of ASU 2015-05 will have on its consolidated financial statements. This new accounting standard is not anticipated to have a material impact on the Company's financial statements. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”), which requires that all deferred tax liabilities and assets be classified as noncurrent amounts on the balance sheet. ASU 2015-17 will be effective for interim and annuals periods beginning after December 15, 2016 (January 1, 2017 for the Company) and may be applied prospectively or retrospectively. Early adoption of the standard is permitted. The Company early adopted this standard retrospectively on December 31, 2015. The adoption of this standard resulted in a reclassification of current deferred tax assets which caused a $26 million reduction to both prepaid expenses and other current assets and deferred income taxes on the Company’s balance sheet for the year ended December 31, 2014; but had no effect on the Company’s results of operations, financial condition or cash flows. |
Unaudited Quarterly Financial D
Unaudited Quarterly Financial Data (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Data | Unaudited Quarterly Financial Data The following table presents quarterly data for the periods presented on the consolidated statement of operations: Year Ended December 31, 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 2,362 $ 2,430 $ 2,450 $ 2,512 Income from operations $ 249 $ 269 $ 273 $ 323 Net income (loss) $ (81 ) $ (122 ) $ 54 $ (122 ) Earnings (loss) per common share: Basic $ (0.73 ) $ (1.09 ) $ 0.48 $ (1.09 ) Diluted $ (0.73 ) $ (1.09 ) $ 0.48 (1.09 ) Weighted average common share outstanding: Basic 111,655,617 111,783,504 111,928,113 112,106,255 Diluted 111,655,617 111,783,504 113,339,885 112,106,255 Year Ended December 31, 2014 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 2,202 $ 2,259 $ 2,287 $ 2,360 Income from operations $ 240 $ 236 $ 218 $ 277 Net loss $ (37 ) $ (45 ) $ (53 ) $ (48 ) Loss per common share, basic and diluted $ (0.35 ) $ (0.42 ) $ (0.49 ) $ (0.44 ) Weighted average common shares 106,439,198 107,975,937 108,792,605 110,242,507 |
Consolidating Schedules (Notes)
Consolidating Schedules (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Consolidating Schedules | Consolidating Schedules The accompanying consolidating financial information has been prepared and presented pursuant to SEC Regulation S-X Rule 3-10, Financial Statements of Guarantors and Affiliates Whose Securities Collateralize an Issue Registered or Being Registered. This information is not intended to present the financial position, results of operations and cash flows of the individual companies or groups of companies in accordance with generally accepted accounting principles. The Safari Escrow Entities column consists of CCOH Safari, CCO Safari II and CCO Safari III. CCOH Safari issued the 2026 Notes and issued the CCOH Safari notes that were repaid in April 2015 upon receiving the Termination Notice of the Comcast Transactions. CCO Safari II and CCO Safari III issued the CCO Safari II notes and the CCO Safari III credit facilities, respectively. The CCO Holdings notes are obligations of CCO Holdings. However, the CCO Holdings notes are also jointly, severally, fully and unconditionally guaranteed on an unsecured senior basis by Charter. The Charter Operating and Restricted Subsidiaries column is presented as a requirement pursuant to the terms of the Credit Agreement. The Unrestricted Subsidiary column consists of CCO Safari which is a Non-Recourse Subsidiary under the Credit Agreement and that held the Term G Loans. The Term G Loans were also repaid in April 2015 upon receiving the Termination Notice of the Comcast Transactions. See Note 8 for additional information. On December 31, 2015, the CCV III, LLC preferred interest held by CCH I, LLC was canceled. Consolidating financial statements as of December 31, 2015 and 2014 and for the years ended December 31, 2015 , 2014 and 2013 follow. Charter Communications, Inc. Consolidating Balance Sheet As of December 31, 2015 Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary - CCO Safari Eliminations Charter Consolidated ASSETS CURRENT ASSETS: Cash and cash equivalents $ — $ — $ — $ — $ 5 $ — $ — $ 5 Accounts receivable, net 8 7 — — 264 — — 279 Receivables from related party 51 297 — 14 — — (362 ) — Prepaid expenses and other current assets — 6 — — 55 — — 61 Total current assets 59 310 — 14 324 — (362 ) 345 RESTRICTED CASH AND CASH EQUIVALENTS — — 22,264 — — — — 22,264 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 28 — — 8,317 — — 8,345 Franchises — — — — 6,006 — — 6,006 Customer relationships, net — — — — 856 — — 856 Goodwill — — — — 1,168 — — 1,168 Total investment in cable properties, net — 28 — — 16,347 — — 16,375 INVESTMENT IN SUBSIDIARIES 1,468 816 — 11,303 — — (13,587 ) — LOANS RECEIVABLE – RELATED PARTY — 333 — 613 563 — (1,509 ) — OTHER NONCURRENT ASSETS — 216 — — 116 — — 332 Total assets $ 1,527 $ 1,703 $ 22,264 $ 11,930 $ 17,350 $ — $ (15,458 ) $ 39,316 LIABILITIES AND SHAREHOLDERS’/MEMBER’S EQUITY (DEFICIT) CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 11 $ 203 $ 282 $ 165 $ 1,311 $ — $ — $ 1,972 Payables to related party — — 17 — 345 — (362 ) — Total current liabilities 11 203 299 165 1,656 — (362 ) 1,972 LONG-TERM DEBT — — 21,778 10,443 3,502 — — 35,723 LOANS PAYABLE – RELATED PARTY — — 693 — 816 — (1,509 ) — DEFERRED INCOME TAXES 1,562 — — — 28 — — 1,590 OTHER LONG-TERM LIABILITIES — 32 — — 45 — — 77 SHAREHOLDERS'/MEMBER'S EQUITY (DEFICIT) (46 ) 1,468 (506 ) 1,322 11,303 — (13,587 ) (46 ) Total liabilities and shareholders’/member’s equity (deficit) $ 1,527 $ 1,703 $ 22,264 $ 11,930 $ 17,350 $ — $ (15,458 ) $ 39,316 Charter Communications, Inc. Consolidating Balance Sheet As of December 31, 2014 Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary - CCO Safari Eliminations Charter Consolidated ASSETS CURRENT ASSETS: Cash and cash equivalents $ 3 $ — $ — $ — $ — $ — $ — $ 3 Accounts receivable, net 4 6 — — 275 — — 285 Receivables from related party 55 221 — 11 — — (287 ) — Prepaid expenses and other current assets — 10 — — 47 — — 57 Total current assets 62 237 — 11 322 — (287 ) 345 RESTRICTED CASH AND CASH EQUIVALENTS — — 3,597 — — 3,514 — 7,111 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 29 — — 8,344 — — 8,373 Franchises — — — — 6,006 — — 6,006 Customer relationships, net — — — — 1,105 — — 1,105 Goodwill — — — — 1,168 — — 1,168 Total investment in cable properties, net — 29 — — 16,623 — — 16,652 CC VIII PREFERRED INTEREST — 436 — — — — (436 ) — INVESTMENT IN SUBSIDIARIES 1,509 482 — 10,331 27 — (12,349 ) — LOANS RECEIVABLE – RELATED PARTY — 326 — 584 — — (910 ) — OTHER NONCURRENT ASSETS — 166 1 — 113 — — 280 Total assets $ 1,571 $ 1,676 $ 3,598 $ 10,926 $ 17,085 $ 3,514 $ (13,982 ) $ 24,388 LIABILITIES AND SHAREHOLDERS’/MEMBER’S EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 11 $ 152 $ 18 $ 187 $ 1,259 $ 8 $ — $ 1,635 Payables to related party — — — — 287 — (287 ) — Total current liabilities 11 152 18 187 1,546 8 (287 ) 1,635 LONG-TERM DEBT — — 3,498 10,227 3,683 3,479 — 20,887 LOANS PAYABLE – RELATED PARTY — — 112 — 798 — (910 ) — DEFERRED INCOME TAXES 1,414 — — — 234 — — 1,648 OTHER LONG-TERM LIABILITIES — 15 — — 57 — — 72 Shareholders’/Member’s equity 146 1,509 (30 ) 512 10,331 27 (12,349 ) 146 Non-controlling interest — — — — 436 — (436 ) — Total shareholders’/member’s equity 146 1,509 (30 ) 512 10,767 27 (12,785 ) 146 Total liabilities and shareholders’/member’s equity $ 1,571 $ 1,676 $ 3,598 $ 10,926 $ 17,085 $ 3,514 $ (13,982 ) $ 24,388 Charter Communications, Inc. Consolidating Statement of Operations For the year ended December 31, 2015 Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary - CCO Safari Eliminations Charter Consolidated REVENUES $ 25 $ 299 $ — $ — $ 9,754 $ — $ (324 ) $ 9,754 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 25 299 — — 6,426 — (324 ) 6,426 Depreciation and amortization — — — — 2,125 — — 2,125 Other operating expenses, net — — — — 89 — — 89 25 299 — — 8,640 — (324 ) 8,640 Income from operations — — — — 1,114 — — 1,114 OTHER INCOME AND (EXPENSES): Interest expense, net — 8 (474 ) (642 ) (151 ) (47 ) — (1,306 ) Loss on extinguishment of debt — — (2 ) (123 ) — (3 ) — (128 ) Loss on derivative instruments, net — — — — (4 ) — — (4 ) Other expense, net — (7 ) — — — — — (7 ) Equity in income (loss) of subsidiaries (121 ) (168 ) — 1,073 (50 ) — (734 ) — (121 ) (167 ) (476 ) 308 (205 ) (50 ) (734 ) (1,445 ) Income (loss) before income taxes (121 ) (167 ) (476 ) 308 909 (50 ) (734 ) (331 ) INCOME TAX BENEFIT (EXPENSE) (150 ) — — — 210 — — 60 Consolidated net income (loss) (271 ) (167 ) (476 ) 308 1,119 (50 ) (734 ) (271 ) Less: Net (income) loss – non-controlling interest — 46 — — (46 ) — — — Net income (loss) $ (271 ) $ (121 ) $ (476 ) $ 308 $ 1,073 $ (50 ) $ (734 ) $ (271 ) Charter Communications, Inc. Consolidating Statement of Operations For the year ended December 31, 2014 Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary - CCO Safari Eliminations Charter Consolidated REVENUES $ 22 $ 235 $ — $ — $ 9,108 $ — $ (257 ) $ 9,108 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 22 235 — — 5,973 — (257 ) 5,973 Depreciation and amortization — — — — 2,102 — — 2,102 Other operating expenses, net — — — — 62 — — 62 22 235 — — 8,137 — (257 ) 8,137 Income from operations — — — — 971 — — 971 OTHER INCOME AND (EXPENSES): Interest expense, net — 8 (30 ) (679 ) (165 ) (45 ) — (911 ) Loss on derivative instruments, net — — — — (7 ) — — (7 ) Equity in income (loss) of subsidiaries 40 (12 ) — 697 (45 ) — (680 ) — 40 (4 ) (30 ) 18 (217 ) (45 ) (680 ) (918 ) Income (loss) before income taxes 40 (4 ) (30 ) 18 754 (45 ) (680 ) 53 INCOME TAX EXPENSE (223 ) — — — (13 ) — — (236 ) Consolidated net income (loss) (183 ) (4 ) (30 ) 18 741 (45 ) (680 ) (183 ) Less: Net (income) loss – non-controlling interest — 44 — — (44 ) — — — Net income (loss) $ (183 ) $ 40 $ (30 ) $ 18 $ 697 $ (45 ) $ (680 ) $ (183 ) Charter Communications, Inc. Consolidating Statement of Operations For the year ended December 31, 2013 Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary - CCO Safari Eliminations Charter Consolidated REVENUES $ 22 $ 188 $ — $ — $ 8,155 $ — $ (210 ) $ 8,155 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 22 188 — — 5,345 — (210 ) 5,345 Depreciation and amortization — — — — 1,854 — — 1,854 Other operating expenses, net — — — — 47 — — 47 22 188 — — 7,246 — (210 ) 7,246 Income from operations — — — — 909 — — 909 OTHER INCOME AND (EXPENSES): Interest expense, net — 8 — (681 ) (173 ) — — (846 ) Loss on extinguishment of debt — — — (65 ) (58 ) — — (123 ) Gain on derivative instruments, net — — — — 11 — — 11 Equity in income (loss) of subsidiaries (75 ) (114 ) — 632 — — (443 ) — (75 ) (106 ) — (114 ) (220 ) — (443 ) (958 ) Income (loss) before income taxes (75 ) (106 ) — (114 ) 689 — (443 ) (49 ) INCOME TAX EXPENSE (108 ) (1 ) — — (11 ) — — (120 ) Consolidated net income (loss) (183 ) (107 ) — (114 ) 678 — (443 ) (169 ) Less: Net (income) loss – non-controlling interest 14 32 — — (46 ) — — — Net income (loss) $ (169 ) $ (75 ) $ — $ (114 ) $ 632 $ — $ (443 ) $ (169 ) Charter Communications, Inc. Consolidating Statement of Comprehensive Income (Loss) For the year ended December 31, 2015 Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary - CCO Safari Eliminations Charter Consolidated Consolidated net income (loss) $ (271 ) $ (167 ) $ (476 ) $ 308 $ 1,119 $ (50 ) $ (734 ) $ (271 ) Net impact of interest rate derivative instruments, net of tax 9 9 9 9 9 — (36 ) 9 Comprehensive income (loss) $ (262 ) $ (158 ) $ (467 ) $ 317 $ 1,128 $ (50 ) $ (770 ) $ (262 ) Charter Communications, Inc. Consolidating Statement of Comprehensive Income (Loss) For the year ended December 31, 2014 Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary - CCO Safari Eliminations Charter Consolidated Consolidated net income (loss) $ (183 ) $ (4 ) $ (30 ) $ 18 $ 741 $ (45 ) $ (680 ) $ (183 ) Net impact of interest rate derivative instruments, net of tax 19 19 19 19 19 — (76 ) 19 Comprehensive income (loss) $ (164 ) $ 15 $ (11 ) $ 37 $ 760 $ (45 ) $ (756 ) $ (164 ) Charter Communications, Inc. Consolidating Statement of Comprehensive Income (Loss) For the year ended December 31, 2013 Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary - CCO Safari Eliminations Charter Consolidated Consolidated net income (loss) $ (183 ) $ (107 ) $ — $ (114 ) $ 678 $ — $ (443 ) $ (169 ) Net impact of interest rate derivative instruments, net of tax 34 34 — 34 34 — (102 ) 34 Comprehensive income (loss) $ (149 ) $ (73 ) $ — $ (80 ) $ 712 $ — $ (545 ) $ (135 ) Charter Communications, Inc. Consolidating Statement of Cash Flows For the year ended December 31, 2015 Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary - CCO Safari Eliminations Charter Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Consolidated net income (loss) $ (271 ) $ (167 ) $ (476 ) $ 308 $ 1,119 $ (50 ) $ (734 ) $ (271 ) Adjustments to reconcile net income (loss) to net cash flows from operating activities: Depreciation and amortization — — — — 2,125 — — 2,125 Noncash interest expense — — — 16 12 — — 28 Loss on extinguishment of debt — — 2 123 — 3 — 128 Loss on derivative instruments, net — — — — 4 — — 4 Deferred income taxes 149 — — — (214 ) — — (65 ) Equity in (income) losses of subsidiaries 121 168 — (1,073 ) 50 — 734 — Other, net — 7 — — 82 — — 89 Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: Accounts receivable (4 ) (1 ) — — 10 — — 5 Prepaid expenses and other assets — 2 — — (5 ) — — (3 ) Accounts payable, accrued liabilities and other — 68 265 (23 ) 17 (8 ) — 319 Receivables from and payables to related party 4 (82 ) 17 (14 ) 75 — — — Net cash flows from operating activities (1 ) (5 ) (192 ) (663 ) 3,275 (55 ) — 2,359 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — — — — (1,840 ) — — (1,840 ) Change in accrued expenses related to capital expenditures — — — — 28 — — 28 Contribution to subsidiary (20 ) (90 ) — (46 ) (24 ) — 180 — Distributions from subsidiary 26 376 — 715 — — (1,117 ) — Change in restricted cash and cash equivalents — — (18,667 ) — — 3,514 — (15,153 ) Other, net — (55 ) — — (12 ) — — (67 ) Net cash flows from investing activities 6 231 (18,667 ) 669 (1,848 ) 3,514 (937 ) (17,032 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — 21,790 2,700 1,555 — — 26,045 Repayments of long-term debt — — (3,500 ) (2,598 ) (1,745 ) (3,483 ) — (11,326 ) Borrowings (payments) loans payable - related parties — — 581 (18 ) (563 ) — — — Payment for debt issuance costs — — (12 ) (24 ) — — — (36 ) Purchase of treasury stock (38 ) — — — — — — (38 ) Proceeds from exercise of options 30 — — — — — — 30 Contributions from parent — 95 — 15 46 24 (180 ) — Distributions to parent — (321 ) — (81 ) (715 ) — 1,117 — Other, net — — — — — — — — Net cash flows from financing activities (8 ) (226 ) 18,859 (6 ) (1,422 ) (3,459 ) 937 14,675 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (3 ) — — — 5 — — 2 CASH AND CASH EQUIVALENTS, beginning of period 3 — — — — — — 3 CASH AND CASH EQUIVALENTS, end of period $ — $ — $ — $ — $ 5 $ — $ — $ 5 Charter Communications, Inc. Consolidating Statement of Cash Flows For the year ended December 31, 2014 Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary - CCO Safari Eliminations Charter Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Consolidated net income (loss) $ (183 ) $ (4 ) $ (30 ) $ 18 $ 741 $ (45 ) $ (680 ) $ (183 ) Adjustments to reconcile net income (loss) to net cash flows from operating activities: Depreciation and amortization — — — — 2,102 — — 2,102 Noncash interest expense — — — 25 12 — — 37 Loss on derivative instruments, net — — — — 7 — — 7 Deferred income taxes 223 — — — 10 — — 233 Equity in (income) losses of subsidiaries (40 ) 12 — (697 ) 45 — 680 — Other, net — (2 ) — — 67 — — 65 Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: Accounts receivable — (2 ) — — (49 ) — — (51 ) Prepaid expenses and other assets — (1 ) — — (8 ) — — (9 ) Accounts payable, accrued liabilities and other — 41 18 — 91 8 — 158 Receivables from and payables to related party — (57 ) — (11 ) 68 — — — Net cash flows from operating activities — (13 ) (12 ) (665 ) 3,086 (37 ) — 2,359 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — — — — (2,221 ) — — (2,221 ) Change in accrued expenses related to capital expenditures — — — — 33 — — 33 Sales of cable systems, net — — — — 11 — — 11 Contribution to subsidiary (106 ) (600 ) — (100 ) (71 ) — 877 — Distributions from subsidiary 5 30 — 1,132 — — (1,167 ) — Change in restricted cash and cash equivalents — — (3,598 ) — — (3,513 ) — (7,111 ) Other, net — (5 ) — — (11 ) — — (16 ) Net cash flows from investing activities (101 ) (575 ) (3,598 ) 1,032 (2,259 ) (3,513 ) (290 ) (9,304 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — 3,500 — 1,823 3,483 — 8,806 Repayments of long-term debt — — — (350 ) (1,630 ) — — (1,980 ) Borrowings (payments) loans payable - related parties — — 112 (112 ) — — — — Payment for debt issuance costs — — (2 ) — — (4 ) — (6 ) Purchase of treasury stock (19 ) — — — — — — (19 ) Proceeds from exercise of options and warrants 123 — — — — — — 123 Contributions from parent — 606 — 100 100 71 (877 ) — Distributions to parent — (30 ) — (5 ) (1,132 ) — 1,167 — Other, net — 7 — — (4 ) — — 3 Net cash flows from financing activities 104 583 3,610 (367 ) (843 ) 3,550 290 6,927 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 3 (5 ) — — (16 ) — — (18 ) CASH AND CASH EQUIVALENTS, beginning of period — 5 — — 16 — — 21 CASH AND CASH EQUIVALENTS, end of period $ 3 $ — $ — $ — $ — $ — $ — $ 3 Charter Communications, Inc. Consolidating Statement of Cash Flows For the year ended December 31, 2013 Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary - CCO Safari Eliminations Charter Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Consolidated net income (loss) $ (183 ) $ (107 ) $ — $ (114 ) $ 678 $ — $ (443 ) $ (169 ) Adjustments to reconcile net income (loss) to net cash flows from operating activities: Depreciation and amortization — — — — 1,854 — — 1,854 Noncash interest expense — — — 27 16 — — 43 Loss on extinguishment of debt — — — 65 58 — — 123 Gain on derivative instruments, net — — — — (11 ) — — (11 ) Deferred income taxes 105 — — — 7 — — 112 Equity in (income) losses of subsidiaries 75 114 — (632 ) — — 443 — Other, net — — — — 82 — — 82 Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: Accounts receivable (3 ) (1 ) — — 14 — — 10 Prepaid expenses and other assets — 1 — — (1 ) — — — Accounts payable, accrued liabilities and other — (3 ) — 41 76 — — 114 Receivables from and payables to related party 5 (1 ) — (10 ) 6 — — — Net cash flows from operating activities (1 ) 3 — (623 ) 2,779 — — 2,158 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — — — — (1,825 ) — — (1,825 ) Change in accrued expenses related to capital expenditures — — — — 76 — — 76 Purchases of cable systems, net — — — — (676 ) — — (676 ) Contribution to subsidiary (89 ) (534 ) — (1,022 ) — — 1,645 — Distributions from subsidiary — 6 — 630 — — (636 ) — Other, net — 1 — — (19 ) — — (18 ) Net cash flows from investing activities (89 ) (527 ) — (392 ) (2,444 ) — 1,009 (2,443 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — — 2,000 4,782 — — 6,782 Repayments of long-term debt — — — (955 ) (5,565 ) — — (6,520 ) Borrowings (payments) loans payable - related parties — — — (93 ) 93 — — — Payment for debt issuance costs — — — (25 ) (25 ) — — (50 ) Purchase of treasury stock (15 ) — — — — — — (15 ) Proceeds from exercise of options and warrants 104 — — — — — — 104 Contributions from parent — 534 — 89 1,022 — (1,645 ) — Distributions to parent — (5 ) — (1 ) (630 ) — 636 — Other, net — — — — (2 ) — — (2 ) Net cash flows from financing activities 89 529 — 1,015 (325 ) — (1,009 ) 299 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1 ) 5 — — 10 — — 14 CASH AND CASH EQUIVALENTS, beginning of period 1 — — — 6 — — 7 CASH AND CASH EQUIVALENTS, end of period $ — $ 5 $ — $ — $ 16 $ — $ — $ 21 |
Subsequent Events (Notes)
Subsequent Events (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events In February 2016, the Company's subsidiary, CCO Holdings, announced an offering of $1.7 billion aggregate principal amount of 5.875% senior notes due 2024. The Company expects to close that offering in February 2016 and the net proceeds will be used to (i) repurchase or redeem certain of CCO Holdings’ 7.000% senior notes due 2019 and 7.375% senior notes due 2020 and pay related fees and expenses and (ii) for general corporate purposes including, for example, to fund a portion of the incremental cash proceeds to TWC stockholders if they were to elect $115 per share in cash rather than $100 per share. Any redemption or repurchase of notes would not take place until after such cash elections were determined. See Note 3. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation The accompanying consolidated financial statements include the accounts of Charter and its wholly owned subsidiaries. The Company consolidates based upon evaluation of the Company’s power, through voting rights or similar rights, to direct the activities of another entity that most significantly impact the entity’s economic performance; its obligation to absorb the expected losses of the entity; and its right to receive the expected residual returns of the entity. All significant inter-company accounts and transactions among consolidated entities have been eliminated. |
Cash and cash equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. These investments are carried at cost, which approximates market value. Cash and cash equivalents consist primarily of money market funds and commercial paper. |
Restricted cash and cash equivalents | Restricted Cash and Cash Equivalents Proceeds from the issuance of certain long-term debt were deposited into escrow accounts and will be used for acquisition financing and are contractually restricted as to their withdrawal or use. See Note 8. The amounts held in escrow are classified as noncurrent restricted cash and cash equivalents in the Company's consolidated balance sheets. The Company's restricted cash and cash equivalents were primarily invested in money market funds and 90-day or less commercial paper. The changes in restricted cash and cash equivalents are presented as an investing activity in the Company's consolidated statements of cash flows. |
Property, Plant and Equipment | Property, Plant and Equipment Additions to property, plant and equipment are recorded at cost, including all material, labor and certain indirect costs associated with the construction of cable transmission and distribution facilities. While the Company’s capitalization is based on specific activities, once capitalized, costs are tracked by fixed asset category at the cable system level and not on a specific asset basis. For assets that are sold or retired, the estimated historical cost and related accumulated depreciation is removed. Costs associated with initial customer installations and the installation of equipment necessary to provide video, Internet or voice services are capitalized. Costs capitalized as part of installations include materials, labor, and certain indirect costs. Indirect costs are associated with the activities of the Company’s personnel who assist in installation activities and consist of compensation and other costs associated with these support functions. Indirect costs primarily include employee benefits and payroll taxes, direct variable costs associated with capitalizable activities, consisting primarily of installation and construction, vehicle costs, the cost of dispatch personnel and indirect costs directly attributable to capitalizable activities. The costs of disconnecting service at a customer’s dwelling or reconnecting service to a previously installed dwelling are charged to operating expense in the period incurred. Costs for repairs and maintenance are charged to operating expense as incurred, while plant and equipment replacement, including replacement of certain components, and betterments, including replacement of cable drops from the pole to the dwelling, are capitalized. Depreciation is recorded using the straight-line composite method over management’s estimate of the useful lives of the related assets as follows: Cable distribution systems 7-20 years Customer premise equipment and installations 3-8 years Vehicles and equipment 3-6 years Buildings and improvements 15-40 years Furniture, fixtures and equipment 6-10 years |
Asset Retirement Obligations | Asset Retirement Obligations Certain of the Company’s franchise agreements and leases contain provisions requiring the Company to restore facilities or remove equipment in the event that the franchise or lease agreement is not renewed. The Company expects to continually renew its franchise agreements and has concluded that all of the related franchise rights are indefinite lived intangible assets. Accordingly, the possibility is remote that the Company would be required to incur significant restoration or removal costs related to these franchise agreements in the foreseeable future. A liability is required to be recognized for an asset retirement obligation in the period in which it is incurred if a reasonable estimate of fair value can be made. The Company has not recorded an estimate for potential franchise related obligations, but would record an estimated liability in the unlikely event a franchise agreement containing such a provision were no longer expected to be renewed. The Company also expects to renew many of its lease agreements related to the continued operation of its cable business in the franchise areas. The Company does not have any significant liabilities related to asset retirements recorded in its consolidated financial statements. |
Other Noncurrent Assets | Other Noncurrent Assets Other noncurrent assets primarily include trademarks, right-of-entry costs and equity investments. Trademarks have been determined to have an indefinite life and are tested annually for impairment. Right-of-entry costs represent costs incurred related to agreements entered into with landlords, real estate companies or owners to gain access to a building in order to provide cable service. Right-of-entry costs are generally deferred and amortized to amortization expense over the term of the agreement. The Company accounts for its investments in less than majority owned investees under either the equity or cost method. The Company applies the equity method to investments when it has the ability to exercise significant influence over the operating and financial policies of the investee. The Company's share of the investee's earnings (losses) is included in other expense, net in the consolidated statements of operations. The Company monitors its investments for indicators that a decrease in investment value has occurred that is other than temporary. |
Valuation of Long-Lived Assets | Valuation of Long-Lived Assets The Company evaluates the recoverability of long-lived assets to be held and used when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Such events or changes in circumstances could include such factors as impairment of the Company’s indefinite life assets, changes in technological advances, fluctuations in the fair value of such assets, adverse changes in relationships with local franchise authorities, adverse changes in market conditions or a deterioration of operating results. If a review indicates that the carrying value of such asset is not recoverable from estimated undiscounted cash flows, the carrying value of such asset is reduced to its estimated fair value. While the Company believes that its estimates of future cash flows are reasonable, different assumptions regarding such cash flows could materially affect its evaluations of asset recoverability. No impairments of long-lived assets to be held and used were recorded in 2015 , 2014 and 2013 . |
Revenue Recognition | Revenue Recognition Revenues from residential and commercial video, Internet and voice services are recognized when the related services are provided. Advertising sales are recognized at estimated realizable values in the period that the advertisements are broadcast. In some cases, the Company coordinates the advertising sales efforts of other cable operators in a certain market and remits amounts received from customers less an agreed-upon percentage to such cable operator. For those arrangements in which the Company acts as a principal, the Company records the revenues earned from the advertising customer on a gross basis and the amount remitted to the cable operator as an operating expense. Fees imposed on Charter by various governmental authorities are passed through on a monthly basis to the Company’s customers and are periodically remitted to authorities. Fees of $255 million , $248 million and $234 million for the years ended December 31, 2015 , 2014 and 2013 , respectively, are reported in video, voice and commercial revenues, on a gross basis with a corresponding operating expense because the Company is acting as a principal . Other taxes, such as sales taxes imposed on the Company's customers, collected and remitted to state and local authorities, are recorded on a net basis because the Company is acting as an agent in such situation. |
Programming Costs | Programming Costs The Company has various contracts to obtain basic, digital and premium video programming from programming vendors whose compensation is typically based on a flat fee per customer. The cost of the right to exhibit network programming under such arrangements is recorded in operating expenses in the month the programming is available for exhibition. Programming costs are paid each month based on calculations performed by the Company and are subject to periodic audits performed by the programmers. Certain programming contracts contain incentives to be paid by the programmers. The Company receives these payments and recognizes the incentives on a straight-line basis over the life of the programming agreement as a reduction of programming expense. This offset to programming expense was $19 million , $19 million and $7 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Programming costs included in the accompanying statements of operations were $2.7 billion , $2.5 billion and $2.1 billion for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Advertising Costs | Advertising Costs Advertising costs associated with marketing the Company’s products and services are generally expensed as costs are incurred. Such advertising expense was $389 million , $380 million and $357 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Multiple-Element Transactions | Multiple-Element Transactions In the normal course of business, the Company enters into multiple-element transactions where it is simultaneously both a customer and a vendor with the same counterparty or in which it purchases multiple products and/or services, or settles outstanding items contemporaneous with the purchase of a product or service from a single counterparty. Transactions, although negotiated contemporaneously, may be documented in one or more contracts. The Company’s policy for accounting for each transaction negotiated contemporaneously is to record each element of the transaction based on the respective estimated fair values of the products or services purchased and the products or services sold. In determining the fair value of the respective elements, the Company refers to quoted market prices (where available), historical transactions or comparable cash transactions. |
Stock-Based Compensation | Stock-Based Compensation Restricted stock, restricted stock units, stock options as well as restricted stock and stock options with market conditions are measured at the grant date fair value and amortized to stock compensation expense over the requisite service period. The Company recorded $78 million , $55 million and $48 million of stock compensation expense, which is included in operating costs and expenses for the years ended December 31, 2015 , 2014 and 2013 , respectively. The fair value of options granted is estimated on the date of grant using the Black-Scholes option-pricing model and Monte Carlo simulations for options and restricted stock units with market conditions. The grant date weighted average assumptions used during the years ended December 31, 2015 , 2014 and 2013 , respectively, were: risk-free interest rate of 1.5% , 2.0% and 1.5% ; expected volatility of 34.7% , 36.9% and 37.8% , and expected lives of 6.5 years, 6.5 years and 6.3 years. The grant date weighted average cost of equity used was 16.2% during the year ended December 31, 2013 . Volatility assumptions were based on historical volatility of Charter and a peer group. The Company’s volatility assumptions represent management’s best estimate and were partially based on historical volatility of a peer group because management does not believe Charter’s pre-emergence from bankruptcy historical volatility to be representative of its future volatility. Expected lives were calculated based on the simplified-method due to insufficient historical exercise data. The valuations assume no dividends are paid. |
Income Taxes | Income Taxes The Company recognizes deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities and expected benefits of utilizing loss carryforwards. The impact on deferred taxes of changes in tax rates and tax law, if any, applied to the years during which temporary differences are expected to be settled, are reflected in the consolidated financial statements in the period of enactment. See Note 16. |
Loss per Common Share | Loss per Common Share Basic loss per common share is computed by dividing the net loss by the weighted-average common shares outstanding during the respective periods. Diluted loss per common share equals basic loss per common share for the periods presented, as the effect of stock options and other convertible securities are anti-dilutive because the Company incurred net losses. |
Segments | Segments The Company’s operations are conducted through the use of a unified network and are managed and reported to its Chief Executive Officer ("CEO"), the Company's chief operating decision maker, on a consolidated basis. The CEO assesses performance and allocates resources based on the consolidated results of operations. Under this organizational and reporting structure, the Company has one reportable segment, broadband services. |
Franchises, Goodwill and Othe32
Franchises, Goodwill and Other Intangible Assets (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Franchises, Goodwill and Other Intangible Assets | Franchise rights represent the value attributed to agreements or authorizations with local and state authorities that allow access to homes in cable service areas. For valuation purposes, they are defined as the future economic benefits of the right to solicit and service potential customers (customer marketing rights), and the right to deploy and market new services to potential customers (service marketing rights). Management estimates the fair value of franchise rights at the date of acquisition and determines if the franchise has a finite life or an indefinite life. All franchises that qualify for indefinite life treatment are tested for impairment annually or more frequently as warranted by events or changes in circumstances. In determining whether our franchises have an indefinite life, the Company considered the likelihood of franchise renewals, the expected costs of franchise renewals, and the technological state of the associated cable systems, with a view to whether or not it is in compliance with any technology upgrading requirements specified in a franchise agreement. The Company has concluded that as of December 31, 2015 and 2014 all of its franchises qualify for indefinite life treatment. Franchise assets are aggregated into essentially inseparable units of accounting to conduct valuations. The units of accounting generally represent geographical clustering of our cable systems into groups. The Company assesses qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that an indefinite lived intangible asset has been impaired. If, after this optional qualitative assessment, the Company determines that it is not more likely than not that an indefinite lived intangible asset has been impaired, then no further quantitative testing is necessary. In completing the qualitative impairment testing, the Company evaluates the impact of various factors to the expected future cash flows attributable to its units of accounting and to the assumed discount rate which would be used to determine the present value of those cash flows. Such factors include macro-economic and industry conditions including the capital markets, regulatory, and competitive environment, and costs of programming and customer premise equipment along with changes to our organizational structure and strategies. A recent valuation of the Company was performed for tax purposes during 2015 and was included as a key factor in the Company’s qualitative assessment of the Company’s franchise assets. After consideration of the qualitative factors, in 2015 the Company concluded that it is more likely than not that the fair value of the franchise assets in each unit of accounting exceeds the carrying value of such assets and therefore did not perform a quantitative analysis. Periodically, the Company will elect to perform a quantitative analysis. If the Company elects or is required to perform a quantitative analysis to test its franchise assets for impairment, the Company determines the estimated fair value of franchises utilizing an income approach model based on the present value of the estimated discrete future cash flows attributable to each of the intangible assets identified assuming a discount rate. The fair value of franchises for impairment testing is determined based on estimated discrete discounted future cash flows using assumptions consistent with internal forecasts. The franchise after-tax cash flow is calculated as the after-tax cash flow generated by the potential customers obtained (less the anticipated churn for the potential customer). The sum of the present value of the franchises' after-tax cash flow in years 1 through 10 and the continuing value of the after-tax cash flow beyond year 10 yields the fair value of the franchises. This approach makes use of unobservable factors such as projected revenues, expenses, capital expenditures, customer trends, and a discount rate applied to the estimated cash flows. The determination of the franchise discount rate is derived from the Company's weighted average cost of capital, which uses a market participant’s cost of equity and after-tax cost of debt and reflects the risks inherent in the cash flows. The Company estimates discounted future cash flows using reasonable and appropriate assumptions including among others, penetration rates for video, high-speed Internet, and voice; revenue growth rates; operating margins; and capital expenditures. The assumptions are based on the Company’s and its peers’ historical operating performance adjusted for current and expected competitive and economic factors surrounding the cable industry. The estimates and assumptions made in the Company’s valuations are inherently subject to significant uncertainties, many of which are beyond its control, and there is no assurance that these results can be achieved. The primary assumptions for which there is a reasonable possibility of the occurrence of a variation that would significantly affect the measurement value include the assumptions regarding revenue growth, programming expense growth rates, the amount and timing of capital expenditures, actual customer trends and the discount rate utilized. Goodwill is tested for impairment as of November 30 of each year , or more frequently as warranted by events or changes in circumstances. Accounting guidance also permits an optional qualitative assessment for goodwill to determine whether it is more likely than not that the carrying value of a reporting unit exceeds its fair value. If, after this qualitative assessment, the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount then no further quantitative testing would be necessary. If the Company elects or is required to perform the two-step test under the accounting guidance, the first step involves a comparison of the estimated fair value of the reporting unit to its carrying amount. If the estimated fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered impaired and the second step of the goodwill impairment is not necessary. If the carrying amount of a reporting unit exceeds its estimated fair value, then the second step of the goodwill impairment test must be performed, and a comparison of the implied fair value of the reporting unit’s goodwill is compared to its carrying amount to determine the amount of impairment, if any. The fair value of the reporting unit, when performing the second step of the goodwill impairment test, is determined using both an income approach and market approach. The Company's income approach model used for its goodwill valuation is consistent with that used for its franchise valuation noted above except that cash flows from the entire business enterprise are used for the goodwill valuation. The market approach model estimates the fair value of the reporting unit based on market prices in actual precedent transactions of similar businesses and market valuations of guideline public companies. As with the Company's franchise impairment testing, in 2015 the Company elected to perform a qualitative goodwill impairment assessment and concluded that goodwill is not impaired. Customer relationships are recorded at fair value as of the date acquired less accumulated amortization. Customer relationships, for valuation purposes, represent the value of the business relationship with existing customers (less the anticipated customer churn), and are calculated by projecting the discrete future after-tax cash flows from these customers, including the right to deploy and market additional services to these customers. The present value of these after-tax cash flows yields the fair value of the customer relationships. The use of different valuation assumptions or definitions of franchises or customer relationships, such as our inclusion of the value of selling additional services to our current customers within customer relationships versus franchises, could significantly impact our valuations and any resulting impairment. Customer relationships are amortized on an accelerated sum of years' digits method over useful lives of 8 - 15 years based on the period over which current customers are expected to generate cash flows. The Company periodically evaluates the remaining useful lives of its customer relationships to determine whether events or circumstances warrant revision to the remaining periods of amortization. Customer relationships are evaluated for impairment upon the occurrence of events or changes in circumstances indicating that the carrying amount of an asset may not be recoverable. Customer relationships are deemed impaired when the carrying value exceeds the projected undiscounted future cash flows associated with the customer relationships. No impairment of customer relationships was recorded in the years ended December 31, 2015 , 2014 or 2013 . The fair value of trademarks is determined using the relief-from-royalty method, a variation of the income approach, which applies a fair royalty rate to estimated revenue derived under the Company's trademarks. The fair value of the intangible is estimated to be the present value of the royalty saved because the Company owns the trademarks. Royalty rates are estimated based on a review of market royalty rates in the communications and entertainment industries. As the Company expects to continue to use each trademark indefinitely, trademarks have been assigned an indefinite life and are tested annually for impairment using either a qualitative analysis or quantitative analysis as elected by management. |
Accounting for Derivative Ins33
Accounting for Derivative Instruments and Hedging Activities (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | The Company uses interest rate derivative instruments to manage its interest costs and reduce the Company’s exposure to increases in floating interest rates. The Company manages its exposure to fluctuations in interest rates by maintaining a mix of fixed and variable rate debt. Using interest rate derivative instruments, the Company agrees to exchange, at specified intervals through 2017, the difference between fixed and variable interest amounts calculated by reference to agreed-upon notional principal amounts. The Company does not hold or issue derivative instruments for speculative trading purposes. |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of useful lives of property plant and equipment | Depreciation is recorded using the straight-line composite method over management’s estimate of the useful lives of the related assets as follows: Cable distribution systems 7-20 years Customer premise equipment and installations 3-8 years Vehicles and equipment 3-6 years Buildings and improvements 15-40 years Furniture, fixtures and equipment 6-10 years |
Schedule of revenues by product line | The Company’s revenues by product line are as follows: Year Ended December 31, 2015 2014 2013 Video $ 4,587 $ 4,443 $ 4,040 Internet 3,003 2,576 2,186 Voice 539 575 644 Residential revenue 8,129 7,594 6,870 Small and medium business 764 676 553 Enterprise 363 317 259 Commercial revenue 1,127 993 812 Advertising sales 309 341 291 Other 189 180 182 $ 9,754 $ 9,108 $ 8,155 |
Mergers and Acquisitions (Table
Mergers and Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Pro Forma Information | The following unaudited pro forma financial information of Charter is based on the historical consolidated financial statements of Charter and the historical consolidated financial statements of Bresnan and is intended to provide information about how the acquisition of Bresnan and related financing may have affected Charter's historical consolidated financial statements if they had closed as of January 1, 2012. The pro forma financial information below is based on available information and assumptions that the Company believes are reasonable. The pro forma financial information is for illustrative and informational purposes only and is not intended to represent or be indicative of what Charter's financial condition or results of operations would have been had the transactions described above occurred on the date indicated. The pro forma financial information also should not be considered representative of Charter's future financial condition or results of operations. Year Ended December 31, 2013 (unaudited) Revenues $ 8,419 Net loss $ (194 ) Loss per common share, basic and diluted $ (1.90 ) |
Allowance for Doubtful Accoun36
Allowance for Doubtful Accounts (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule of allowance for doubtful accounts | Activity in the allowance for doubtful accounts is summarized as follows for the years presented: Year Ended December 31, 2015 2014 2013 Balance, beginning of period $ 22 $ 19 $ 14 Charged to expense 135 122 101 Uncollected balances written off, net of recoveries (136 ) (119 ) (96 ) Balance, end of period $ 21 $ 22 $ 19 |
Property, Plant and Equipment37
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consists of the following as of December 31, 2015 and 2014 : December 31, 2015 2014 Cable distribution systems $ 8,158 $ 7,919 Customer premise equipment and installations 4,632 4,388 Vehicles and equipment 384 335 Buildings and improvements 570 499 Furniture, fixtures and equipment 1,119 716 14,863 13,857 Less: accumulated depreciation (6,518 ) (5,484 ) $ 8,345 $ 8,373 |
Franchises, Goodwill and Othe38
Franchises, Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Indefinite-lived and finite-lived intangible assets | As of December 31, 2015 and 2014 , indefinite lived and finite-lived intangible assets are presented in the following table: December 31, 2015 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Indefinite lived intangible assets: Franchises $ 6,006 $ — $ 6,006 $ 6,006 $ — $ 6,006 Goodwill 1,168 — 1,168 1,168 — 1,168 Trademarks 159 — 159 159 — 159 Other intangible assets 4 — 4 4 — 4 $ 7,337 $ — $ 7,337 $ 7,337 $ — $ 7,337 Finite-lived intangible assets: Customer relationships $ 2,616 $ 1,760 $ 856 $ 2,616 $ 1,511 $ 1,105 Other intangible assets 173 82 91 151 60 91 $ 2,789 $ 1,842 $ 947 $ 2,767 $ 1,571 $ 1,196 |
Expected future amortization expense on finite-lived intangible assets | The Company expects amortization expense on its finite-lived intangible assets will be as follows. 2016 $ 237 2017 204 2018 169 2019 133 2020 95 Thereafter 109 $ 947 |
Accounts Payable and Accrued 39
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consist of the following as of December 31, 2015 and 2014 : December 31, 2015 2014 Accounts payable – trade $ 134 $ 140 Accrued capital expenditures 296 268 Deferred revenue 96 85 Accrued liabilities: Interest 445 212 Programming costs 451 430 Franchise related fees 65 65 Compensation 186 169 Other 299 266 $ 1,972 $ 1,635 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following as of December 31, 2015 and 2014 : December 31, 2015 2014 Principal Amount Accreted Value Principal Amount Accreted Value CCOH Safari, LLC: 5.500% senior notes due December 1, 2022 $ — $ — $ 1,500 $ 1,499 5.750% senior notes due December 1, 2024 — — 2,000 1,999 5.750% senior notes due February 15, 2026 2,500 2,499 — — CCO Safari II, LLC: 3.579% senior notes due July 23, 2020 2,000 1,999 — — 4.464% senior notes due July 23, 2022 3,000 2,998 — — 4.908% senior notes due July 23, 2025 4,500 4,497 — — 6.384% senior notes due October 23, 2035 2,000 1,999 — — 6.484% senior notes due October 23, 2045 3,500 3,498 — — 6.834% senior notes due October 23, 2055 500 500 — — CCO Safari III, LLC: Credit facilities 3,800 3,788 — — CCO Holdings, LLC: 7.250% senior notes due October 30, 2017 — — 1,000 992 7.000% senior notes due January 15, 2019 600 594 1,400 1,381 8.125% senior notes due April 30, 2020 — — 700 692 7.375% senior notes due June 1, 2020 750 744 750 742 5.250% senior notes due March 15, 2021 500 496 500 495 6.500% senior notes due April 30, 2021 1,500 1,487 1,500 1,485 6.625% senior notes due January 31, 2022 750 740 750 739 5.250% senior notes due September 30, 2022 1,250 1,229 1,250 1,228 5.125% senior notes due February 15, 2023 1,000 990 1,000 989 5.125% senior notes due May 1, 2023 1,150 1,140 — — 5.750% senior notes due September 1, 2023 500 495 500 495 5.750% senior notes due January 15, 2024 1,000 990 1,000 989 5.375% senior notes due May 1, 2025 750 744 — — 5.875% senior notes due May 1, 2027 800 794 — — Charter Communications Operating, LLC: Credit facilities 3,552 3,502 3,742 3,683 CCO Safari, LLC (an Unrestricted Subsidiary): Credit facility due September 12, 2021 — — 3,500 3,479 Long-Term Debt $ 35,902 $ 35,723 $ 21,092 $ 20,887 |
Schedule of Extinguishment of Debt | Loss on extinguishment of debt consists of the following for the years ended December 31, 2015 , 2014 and 2013 : Year ended December 31, 2015 2014 2013 CCO Holdings notes repurchases $ 123 $ — $ 65 Charter Operating credit amendment / prepayments — — 58 CCOH Safari notes and CCO Safari Term G Loans repayments 5 — — $ 128 $ — $ 123 |
Future Principal Payments of Long-term Debt | Based upon outstanding indebtedness as of December 31, 2015 and assuming the TWC Transaction closes in the second quarter of 2016, the amortization of term loans, and the maturity dates for all senior and subordinated notes, total future principal payments on the total borrowings under all debt agreements as of December 31, 2015 , are as follows: Year Amount 2016 $ 121 2017 140 2018 844 2019 665 2020 4,202 Thereafter 29,930 $ 35,902 |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Class of Stock Disclosures [Abstract] | |
Common stock activity | The following table summarizes our shares outstanding for the three years ended December 31, 2015 : Class A Common Stock Class B Common Stock BALANCE, December 31, 2012 101,176,247 — Option exercises 543,221 — Restricted stock issuances, net of cancellations 4,879 — Stock issuances from exercise of warrants 4,481,656 — Restricted stock unit vesting 88,330 — Purchase of treasury stock (see Note 9) (150,258 ) — BALANCE, December 31, 2013 106,144,075 — Option exercises 640,342 — Restricted stock issuances, net of cancellations 9,090 — Stock issuances from exercise of warrants 5,243,167 — Restricted stock unit vesting 104,270 — Purchase of treasury stock (see Note 9) (141,257 ) — BALANCE, December 31, 2014 111,999,687 — Option exercises 579,173 — Restricted stock issuances, net of cancellations 6,920 — Restricted stock unit vesting 98,831 — Purchase of treasury stock (see Note 9) (245,783 ) — BALANCE, December 31, 2015 112,438,828 — |
Accounting for Derivative Ins42
Accounting for Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments effect on the Company's condensed consolidated balance sheets | The effect of interest rate derivatives on the Company’s consolidated balance sheets is presented in the table below: December 31, 2015 December 31, 2014 Accrued interest $ 3 $ 2 Other long-term liabilities $ 10 $ 16 Accumulated other comprehensive loss $ (13 ) $ (22 ) |
Schedule of derivative instruments effect on the Company's condensed consolidated statements of comprehensive loss and condensed consolidated statements of operations | The effects of derivative instruments on the Company’s consolidated statements of operations is presented in the table below. Year Ended December 31, 2015 2014 2013 Gain (loss) on derivative instruments, net: Change in fair value of interest rate derivative instruments not designated as cash flow hedges $ 5 $ 12 $ 38 Loss reclassified from accumulated other comprehensive loss into earnings as a result of cash flow hedge discontinuance (9 ) (19 ) (27 ) $ (4 ) $ (7 ) $ 11 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The Company's financial instruments that are accounted for at fair value on a recurring basis are presented in the table below. December 31, 2015 December 31, 2014 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Money market funds $ 14,330 $ — $ — $ 4,112 $ — $ — Commercial paper $ — $ 7,934 $ — $ — $ 2,999 $ — Liabilities Interest rate derivatives $ — $ 13 $ — $ — $ 18 $ — |
Summary of Carrying and Fair Value of Debt | A summary of the carrying value and fair value of the Company’s debt at December 31, 2015 and 2014 is as follows: December 31, 2015 December 31, 2014 Carrying Value Fair Value Carrying Value Fair Value Debt Senior notes $ 28,433 $ 28,744 $ 13,725 $ 14,205 Credit facilities $ 7,290 $ 7,274 $ 7,162 $ 7,186 |
Operating Costs and Expenses (T
Operating Costs and Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Operating Costs and Expenses [Abstract] | |
Operating Costs and Expenses | Operating costs and expenses consist of the following for the years presented: Year Ended December 31, 2015 2014 2013 Programming $ 2,678 $ 2,459 $ 2,146 Franchise, regulatory and connectivity 435 428 399 Costs to service customers 1,705 1,679 1,575 Marketing 619 610 557 Transition costs 72 14 — Other 917 783 668 $ 6,426 $ 5,973 $ 5,345 |
Other Operating Expenses, Net45
Other Operating Expenses, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Schedule of other operating expenses, net | Other operating expenses, net consist of the following for the years presented: Year Ended December 31, 2015 2014 2013 Merger and acquisition costs $ 70 $ 38 $ 16 Special charges, net 15 14 23 Loss on sale of assets, net 4 10 8 $ 89 $ 62 $ 47 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of stock option activity | A summary of the activity for the Company’s stock options for the years ended December 31, 2015 , 2014 and 2013 , is as follows (shares in thousands, except per share data): Year Ended December 31, 2015 2014 2013 Shares Weighted Average Exercise Price Aggregate Intrinsic Value Shares Weighted Average Exercise Price Aggregate Intrinsic Value Shares Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding, beginning of period 3,689 $ 86.29 3,142 $ 59.86 3,552 $ 54.35 Granted 1,301 $ 160.16 1,234 $ 136.75 276 $ 108.89 Exercised (579 ) $ 65.34 $ 68 (640 ) $ 52.50 $ 55 (543 ) $ 51.22 $ 33 Canceled (72 ) $ 140.36 (47 ) $ 104.57 (143 ) $ 50.54 Outstanding, end of period 4,339 $ 110.34 $ 316 3,689 $ 86.29 3,142 $ 59.86 Weighted average remaining contractual life 7 years 7 years 7 years Options exercisable, end of period 1,354 $ 55.95 $ 172 1,317 $ 55.65 1,128 $ 52.07 Options expected to vest, end of period 2,730 $ 132.41 $ 139 Weighted average fair value of options granted $ 59.86 $ 55.08 $ 41.52 |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of restricted stock activity | A summary of the activity for the Company’s restricted stock for the years ended December 31, 2015 , 2014 and 2013 , is as follows (shares in thousands, except per share data): Year Ended December 31, 2015 2014 2013 Shares Weighted Average Grant Price Shares Weighted Average Grant Price Shares Weighted Average Grant Price Outstanding, beginning of period 431 $ 57.24 653 $ 56.14 928 $ 54.16 Granted 7 $ 182.05 9 $ 138.57 13 $ 101.81 Vested (220 ) $ 58.92 (231 ) $ 57.35 (280 ) $ 51.62 Canceled — $ — — $ — (8 ) $ 56.50 Outstanding, end of period 218 $ 59.50 431 $ 57.24 653 $ 56.14 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of restricted stock activity | A summary of the activity for the Company’s restricted stock units for the years ended December 31, 2015 , 2014 and 2013 , is as follows (shares in thousands, except per share data): Year Ended December 31, 2015 2014 2013 Shares Weighted Average Grant Price Shares Weighted Average Grant Price Shares Weighted Average Grant Price Outstanding, beginning of period 325 $ 104.01 288 $ 74.73 327 $ 61.79 Granted 164 $ 162.01 153 $ 136.54 73 $ 109.96 Vested (99 ) $ 71.12 (104 ) $ 70.23 (88 ) $ 61.17 Canceled (17 ) $ 140.55 (12 ) $ 112.53 (24 ) $ 55.28 Outstanding, end of period 373 $ 136.51 325 $ 104.01 288 $ 74.73 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Current and deferred income tax benefit (expense) | Current and deferred income tax benefit (expense) is as follows: Year Ended December 31, 2015 2014 2013 Current expense: Federal income taxes $ (1 ) $ (1 ) $ (1 ) State income taxes (4 ) (2 ) (7 ) Current income tax expense (5 ) (3 ) (8 ) Deferred benefit (expense): Federal income taxes 53 (192 ) (101 ) State income taxes 12 (41 ) (11 ) Deferred income tax benefit (expense) 65 (233 ) (112 ) Income tax benefit (expense) $ 60 $ (236 ) $ (120 ) |
Effective tax rate differences from applicable federal income tax rate | The Company’s effective tax rate differs from that derived by applying the applicable federal income tax rate of 35% for the years ended December 31, 2015 , 2014 , and 2013 , respectively, as follows: Year Ended December 31, 2015 2014 2013 Statutory federal income taxes $ 116 $ (18 ) $ 17 Statutory state income taxes, net (4 ) (2 ) (7 ) Nondeductible expenses (12 ) (10 ) (3 ) Change in valuation allowance (250 ) (203 ) (127 ) Organizational restructuring 187 — — Federal tax credit 18 — — State rate changes 4 (3 ) 4 Other 1 — (4 ) Income tax benefit (expense) $ 60 $ (236 ) $ (120 ) |
Deferred tax assets and liabilities | The tax effects of these temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2015 and 2014 are presented below. December 31, 2015 2014 Deferred tax assets: Goodwill $ 315 $ 251 Investment in partnership — 293 Loss carryforwards 4,247 3,595 Other intangibles 211 112 Accrued and other 227 172 Total gross deferred tax assets 5,000 4,423 Less: valuation allowance (3,186 ) (3,149 ) Deferred tax assets $ 1,814 $ 1,274 Deferred tax liabilities: Indefinite life intangibles $ (1,582 ) $ (1,428 ) Property, plant and equipment (1,822 ) (1,247 ) Indirect corporate subsidiaries: Indefinite life intangibles — (122 ) Other — (125 ) Deferred tax liabilities (3,404 ) (2,922 ) Net deferred tax liabilities $ (1,590 ) $ (1,648 ) |
Commitments and Contingencies48
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Company Payment Obligations | The following table summarizes the Company’s payment obligations as of December 31, 2015 for its contractual obligations. Total 2016 2017 2018 2019 2020 Thereafter Contractual Obligations Operating Lease Obligations (1) $ 183 $ 51 $ 46 $ 32 $ 23 12 $ 19 Programming Minimum Commitments (2) 545 265 239 13 14 11 3 Other (3) 435 397 19 10 3 2 4 Total $ 1,163 $ 713 $ 304 $ 55 $ 40 $ 25 $ 26 (1) The Company leases certain facilities and equipment under non-cancelable operating leases. Leases and rental costs charged to expense for the years ended December 31, 2015 , 2014 and 2013 were $49 million , $43 million , $34 million , respectively. (2) The Company pays programming fees under multi-year contracts ranging from three to ten years, typically based on a flat fee per customer, which may be fixed for the term, or may in some cases escalate over the term. Programming costs included in the accompanying statement of operations were $2.7 billion , $2.5 billion and $2.1 billion for the years ended December 31, 2015 , 2014 , and 2013 respectively. Certain of the Company’s programming agreements are based on a flat fee per month or have guaranteed minimum payments. The table sets forth the aggregate guaranteed minimum commitments under the Company’s programming contracts. (3) “Other” represents other guaranteed minimum commitments, which consist primarily of commitments to the Company's customer premise equipment vendors. |
Unaudited Quarterly Financial49
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following table presents quarterly data for the periods presented on the consolidated statement of operations: Year Ended December 31, 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 2,362 $ 2,430 $ 2,450 $ 2,512 Income from operations $ 249 $ 269 $ 273 $ 323 Net income (loss) $ (81 ) $ (122 ) $ 54 $ (122 ) Earnings (loss) per common share: Basic $ (0.73 ) $ (1.09 ) $ 0.48 $ (1.09 ) Diluted $ (0.73 ) $ (1.09 ) $ 0.48 (1.09 ) Weighted average common share outstanding: Basic 111,655,617 111,783,504 111,928,113 112,106,255 Diluted 111,655,617 111,783,504 113,339,885 112,106,255 Year Ended December 31, 2014 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 2,202 $ 2,259 $ 2,287 $ 2,360 Income from operations $ 240 $ 236 $ 218 $ 277 Net loss $ (37 ) $ (45 ) $ (53 ) $ (48 ) Loss per common share, basic and diluted $ (0.35 ) $ (0.42 ) $ (0.49 ) $ (0.44 ) Weighted average common shares 106,439,198 107,975,937 108,792,605 110,242,507 |
Consolidating Schedules (Tables
Consolidating Schedules (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Condensed Consolidating Balance Sheet | onsolidating financial statements as of December 31, 2015 and 2014 and for the years ended December 31, 2015 , 2014 and 2013 follow. Charter Communications, Inc. Consolidating Balance Sheet As of December 31, 2015 Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary - CCO Safari Eliminations Charter Consolidated ASSETS CURRENT ASSETS: Cash and cash equivalents $ — $ — $ — $ — $ 5 $ — $ — $ 5 Accounts receivable, net 8 7 — — 264 — — 279 Receivables from related party 51 297 — 14 — — (362 ) — Prepaid expenses and other current assets — 6 — — 55 — — 61 Total current assets 59 310 — 14 324 — (362 ) 345 RESTRICTED CASH AND CASH EQUIVALENTS — — 22,264 — — — — 22,264 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 28 — — 8,317 — — 8,345 Franchises — — — — 6,006 — — 6,006 Customer relationships, net — — — — 856 — — 856 Goodwill — — — — 1,168 — — 1,168 Total investment in cable properties, net — 28 — — 16,347 — — 16,375 INVESTMENT IN SUBSIDIARIES 1,468 816 — 11,303 — — (13,587 ) — LOANS RECEIVABLE – RELATED PARTY — 333 — 613 563 — (1,509 ) — OTHER NONCURRENT ASSETS — 216 — — 116 — — 332 Total assets $ 1,527 $ 1,703 $ 22,264 $ 11,930 $ 17,350 $ — $ (15,458 ) $ 39,316 LIABILITIES AND SHAREHOLDERS’/MEMBER’S EQUITY (DEFICIT) CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 11 $ 203 $ 282 $ 165 $ 1,311 $ — $ — $ 1,972 Payables to related party — — 17 — 345 — (362 ) — Total current liabilities 11 203 299 165 1,656 — (362 ) 1,972 LONG-TERM DEBT — — 21,778 10,443 3,502 — — 35,723 LOANS PAYABLE – RELATED PARTY — — 693 — 816 — (1,509 ) — DEFERRED INCOME TAXES 1,562 — — — 28 — — 1,590 OTHER LONG-TERM LIABILITIES — 32 — — 45 — — 77 SHAREHOLDERS'/MEMBER'S EQUITY (DEFICIT) (46 ) 1,468 (506 ) 1,322 11,303 — (13,587 ) (46 ) Total liabilities and shareholders’/member’s equity (deficit) $ 1,527 $ 1,703 $ 22,264 $ 11,930 $ 17,350 $ — $ (15,458 ) $ 39,316 Charter Communications, Inc. Consolidating Balance Sheet As of December 31, 2014 Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary - CCO Safari Eliminations Charter Consolidated ASSETS CURRENT ASSETS: Cash and cash equivalents $ 3 $ — $ — $ — $ — $ — $ — $ 3 Accounts receivable, net 4 6 — — 275 — — 285 Receivables from related party 55 221 — 11 — — (287 ) — Prepaid expenses and other current assets — 10 — — 47 — — 57 Total current assets 62 237 — 11 322 — (287 ) 345 RESTRICTED CASH AND CASH EQUIVALENTS — — 3,597 — — 3,514 — 7,111 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 29 — — 8,344 — — 8,373 Franchises — — — — 6,006 — — 6,006 Customer relationships, net — — — — 1,105 — — 1,105 Goodwill — — — — 1,168 — — 1,168 Total investment in cable properties, net — 29 — — 16,623 — — 16,652 CC VIII PREFERRED INTEREST — 436 — — — — (436 ) — INVESTMENT IN SUBSIDIARIES 1,509 482 — 10,331 27 — (12,349 ) — LOANS RECEIVABLE – RELATED PARTY — 326 — 584 — — (910 ) — OTHER NONCURRENT ASSETS — 166 1 — 113 — — 280 Total assets $ 1,571 $ 1,676 $ 3,598 $ 10,926 $ 17,085 $ 3,514 $ (13,982 ) $ 24,388 LIABILITIES AND SHAREHOLDERS’/MEMBER’S EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 11 $ 152 $ 18 $ 187 $ 1,259 $ 8 $ — $ 1,635 Payables to related party — — — — 287 — (287 ) — Total current liabilities 11 152 18 187 1,546 8 (287 ) 1,635 LONG-TERM DEBT — — 3,498 10,227 3,683 3,479 — 20,887 LOANS PAYABLE – RELATED PARTY — — 112 — 798 — (910 ) — DEFERRED INCOME TAXES 1,414 — — — 234 — — 1,648 OTHER LONG-TERM LIABILITIES — 15 — — 57 — — 72 Shareholders’/Member’s equity 146 1,509 (30 ) 512 10,331 27 (12,349 ) 146 Non-controlling interest — — — — 436 — (436 ) — Total shareholders’/member’s equity 146 1,509 (30 ) 512 10,767 27 (12,785 ) 146 Total liabilities and shareholders’/member’s equity $ 1,571 $ 1,676 $ 3,598 $ 10,926 $ 17,085 $ 3,514 $ (13,982 ) $ 24,388 |
Schedule of Condensed Consolidating Statement of Operations | Charter Communications, Inc. Consolidating Statement of Operations For the year ended December 31, 2015 Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary - CCO Safari Eliminations Charter Consolidated REVENUES $ 25 $ 299 $ — $ — $ 9,754 $ — $ (324 ) $ 9,754 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 25 299 — — 6,426 — (324 ) 6,426 Depreciation and amortization — — — — 2,125 — — 2,125 Other operating expenses, net — — — — 89 — — 89 25 299 — — 8,640 — (324 ) 8,640 Income from operations — — — — 1,114 — — 1,114 OTHER INCOME AND (EXPENSES): Interest expense, net — 8 (474 ) (642 ) (151 ) (47 ) — (1,306 ) Loss on extinguishment of debt — — (2 ) (123 ) — (3 ) — (128 ) Loss on derivative instruments, net — — — — (4 ) — — (4 ) Other expense, net — (7 ) — — — — — (7 ) Equity in income (loss) of subsidiaries (121 ) (168 ) — 1,073 (50 ) — (734 ) — (121 ) (167 ) (476 ) 308 (205 ) (50 ) (734 ) (1,445 ) Income (loss) before income taxes (121 ) (167 ) (476 ) 308 909 (50 ) (734 ) (331 ) INCOME TAX BENEFIT (EXPENSE) (150 ) — — — 210 — — 60 Consolidated net income (loss) (271 ) (167 ) (476 ) 308 1,119 (50 ) (734 ) (271 ) Less: Net (income) loss – non-controlling interest — 46 — — (46 ) — — — Net income (loss) $ (271 ) $ (121 ) $ (476 ) $ 308 $ 1,073 $ (50 ) $ (734 ) $ (271 ) Charter Communications, Inc. Consolidating Statement of Operations For the year ended December 31, 2014 Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary - CCO Safari Eliminations Charter Consolidated REVENUES $ 22 $ 235 $ — $ — $ 9,108 $ — $ (257 ) $ 9,108 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 22 235 — — 5,973 — (257 ) 5,973 Depreciation and amortization — — — — 2,102 — — 2,102 Other operating expenses, net — — — — 62 — — 62 22 235 — — 8,137 — (257 ) 8,137 Income from operations — — — — 971 — — 971 OTHER INCOME AND (EXPENSES): Interest expense, net — 8 (30 ) (679 ) (165 ) (45 ) — (911 ) Loss on derivative instruments, net — — — — (7 ) — — (7 ) Equity in income (loss) of subsidiaries 40 (12 ) — 697 (45 ) — (680 ) — 40 (4 ) (30 ) 18 (217 ) (45 ) (680 ) (918 ) Income (loss) before income taxes 40 (4 ) (30 ) 18 754 (45 ) (680 ) 53 INCOME TAX EXPENSE (223 ) — — — (13 ) — — (236 ) Consolidated net income (loss) (183 ) (4 ) (30 ) 18 741 (45 ) (680 ) (183 ) Less: Net (income) loss – non-controlling interest — 44 — — (44 ) — — — Net income (loss) $ (183 ) $ 40 $ (30 ) $ 18 $ 697 $ (45 ) $ (680 ) $ (183 ) Charter Communications, Inc. Consolidating Statement of Operations For the year ended December 31, 2013 Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary - CCO Safari Eliminations Charter Consolidated REVENUES $ 22 $ 188 $ — $ — $ 8,155 $ — $ (210 ) $ 8,155 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 22 188 — — 5,345 — (210 ) 5,345 Depreciation and amortization — — — — 1,854 — — 1,854 Other operating expenses, net — — — — 47 — — 47 22 188 — — 7,246 — (210 ) 7,246 Income from operations — — — — 909 — — 909 OTHER INCOME AND (EXPENSES): Interest expense, net — 8 — (681 ) (173 ) — — (846 ) Loss on extinguishment of debt — — — (65 ) (58 ) — — (123 ) Gain on derivative instruments, net — — — — 11 — — 11 Equity in income (loss) of subsidiaries (75 ) (114 ) — 632 — — (443 ) — (75 ) (106 ) — (114 ) (220 ) — (443 ) (958 ) Income (loss) before income taxes (75 ) (106 ) — (114 ) 689 — (443 ) (49 ) INCOME TAX EXPENSE (108 ) (1 ) — — (11 ) — — (120 ) Consolidated net income (loss) (183 ) (107 ) — (114 ) 678 — (443 ) (169 ) Less: Net (income) loss – non-controlling interest 14 32 — — (46 ) — — — Net income (loss) $ (169 ) $ (75 ) $ — $ (114 ) $ 632 $ — $ (443 ) $ (169 ) |
Schedule of Condensed Consolidating Statement of Comprehensive Income (Loss) | Charter Communications, Inc. Consolidating Statement of Comprehensive Income (Loss) For the year ended December 31, 2015 Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary - CCO Safari Eliminations Charter Consolidated Consolidated net income (loss) $ (271 ) $ (167 ) $ (476 ) $ 308 $ 1,119 $ (50 ) $ (734 ) $ (271 ) Net impact of interest rate derivative instruments, net of tax 9 9 9 9 9 — (36 ) 9 Comprehensive income (loss) $ (262 ) $ (158 ) $ (467 ) $ 317 $ 1,128 $ (50 ) $ (770 ) $ (262 ) Charter Communications, Inc. Consolidating Statement of Comprehensive Income (Loss) For the year ended December 31, 2014 Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary - CCO Safari Eliminations Charter Consolidated Consolidated net income (loss) $ (183 ) $ (4 ) $ (30 ) $ 18 $ 741 $ (45 ) $ (680 ) $ (183 ) Net impact of interest rate derivative instruments, net of tax 19 19 19 19 19 — (76 ) 19 Comprehensive income (loss) $ (164 ) $ 15 $ (11 ) $ 37 $ 760 $ (45 ) $ (756 ) $ (164 ) Charter Communications, Inc. Consolidating Statement of Comprehensive Income (Loss) For the year ended December 31, 2013 Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary - CCO Safari Eliminations Charter Consolidated Consolidated net income (loss) $ (183 ) $ (107 ) $ — $ (114 ) $ 678 $ — $ (443 ) $ (169 ) Net impact of interest rate derivative instruments, net of tax 34 34 — 34 34 — (102 ) 34 Comprehensive income (loss) $ (149 ) $ (73 ) $ — $ (80 ) $ 712 $ — $ (545 ) $ (135 ) |
Schedule of Condensed Consolidating Statement of Cash Flows | Charter Communications, Inc. Consolidating Statement of Cash Flows For the year ended December 31, 2015 Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary - CCO Safari Eliminations Charter Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Consolidated net income (loss) $ (271 ) $ (167 ) $ (476 ) $ 308 $ 1,119 $ (50 ) $ (734 ) $ (271 ) Adjustments to reconcile net income (loss) to net cash flows from operating activities: Depreciation and amortization — — — — 2,125 — — 2,125 Noncash interest expense — — — 16 12 — — 28 Loss on extinguishment of debt — — 2 123 — 3 — 128 Loss on derivative instruments, net — — — — 4 — — 4 Deferred income taxes 149 — — — (214 ) — — (65 ) Equity in (income) losses of subsidiaries 121 168 — (1,073 ) 50 — 734 — Other, net — 7 — — 82 — — 89 Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: Accounts receivable (4 ) (1 ) — — 10 — — 5 Prepaid expenses and other assets — 2 — — (5 ) — — (3 ) Accounts payable, accrued liabilities and other — 68 265 (23 ) 17 (8 ) — 319 Receivables from and payables to related party 4 (82 ) 17 (14 ) 75 — — — Net cash flows from operating activities (1 ) (5 ) (192 ) (663 ) 3,275 (55 ) — 2,359 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — — — — (1,840 ) — — (1,840 ) Change in accrued expenses related to capital expenditures — — — — 28 — — 28 Contribution to subsidiary (20 ) (90 ) — (46 ) (24 ) — 180 — Distributions from subsidiary 26 376 — 715 — — (1,117 ) — Change in restricted cash and cash equivalents — — (18,667 ) — — 3,514 — (15,153 ) Other, net — (55 ) — — (12 ) — — (67 ) Net cash flows from investing activities 6 231 (18,667 ) 669 (1,848 ) 3,514 (937 ) (17,032 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — 21,790 2,700 1,555 — — 26,045 Repayments of long-term debt — — (3,500 ) (2,598 ) (1,745 ) (3,483 ) — (11,326 ) Borrowings (payments) loans payable - related parties — — 581 (18 ) (563 ) — — — Payment for debt issuance costs — — (12 ) (24 ) — — — (36 ) Purchase of treasury stock (38 ) — — — — — — (38 ) Proceeds from exercise of options 30 — — — — — — 30 Contributions from parent — 95 — 15 46 24 (180 ) — Distributions to parent — (321 ) — (81 ) (715 ) — 1,117 — Other, net — — — — — — — — Net cash flows from financing activities (8 ) (226 ) 18,859 (6 ) (1,422 ) (3,459 ) 937 14,675 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (3 ) — — — 5 — — 2 CASH AND CASH EQUIVALENTS, beginning of period 3 — — — — — — 3 CASH AND CASH EQUIVALENTS, end of period $ — $ — $ — $ — $ 5 $ — $ — $ 5 Charter Communications, Inc. Consolidating Statement of Cash Flows For the year ended December 31, 2014 Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary - CCO Safari Eliminations Charter Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Consolidated net income (loss) $ (183 ) $ (4 ) $ (30 ) $ 18 $ 741 $ (45 ) $ (680 ) $ (183 ) Adjustments to reconcile net income (loss) to net cash flows from operating activities: Depreciation and amortization — — — — 2,102 — — 2,102 Noncash interest expense — — — 25 12 — — 37 Loss on derivative instruments, net — — — — 7 — — 7 Deferred income taxes 223 — — — 10 — — 233 Equity in (income) losses of subsidiaries (40 ) 12 — (697 ) 45 — 680 — Other, net — (2 ) — — 67 — — 65 Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: Accounts receivable — (2 ) — — (49 ) — — (51 ) Prepaid expenses and other assets — (1 ) — — (8 ) — — (9 ) Accounts payable, accrued liabilities and other — 41 18 — 91 8 — 158 Receivables from and payables to related party — (57 ) — (11 ) 68 — — — Net cash flows from operating activities — (13 ) (12 ) (665 ) 3,086 (37 ) — 2,359 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — — — — (2,221 ) — — (2,221 ) Change in accrued expenses related to capital expenditures — — — — 33 — — 33 Sales of cable systems, net — — — — 11 — — 11 Contribution to subsidiary (106 ) (600 ) — (100 ) (71 ) — 877 — Distributions from subsidiary 5 30 — 1,132 — — (1,167 ) — Change in restricted cash and cash equivalents — — (3,598 ) — — (3,513 ) — (7,111 ) Other, net — (5 ) — — (11 ) — — (16 ) Net cash flows from investing activities (101 ) (575 ) (3,598 ) 1,032 (2,259 ) (3,513 ) (290 ) (9,304 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — 3,500 — 1,823 3,483 — 8,806 Repayments of long-term debt — — — (350 ) (1,630 ) — — (1,980 ) Borrowings (payments) loans payable - related parties — — 112 (112 ) — — — — Payment for debt issuance costs — — (2 ) — — (4 ) — (6 ) Purchase of treasury stock (19 ) — — — — — — (19 ) Proceeds from exercise of options and warrants 123 — — — — — — 123 Contributions from parent — 606 — 100 100 71 (877 ) — Distributions to parent — (30 ) — (5 ) (1,132 ) — 1,167 — Other, net — 7 — — (4 ) — — 3 Net cash flows from financing activities 104 583 3,610 (367 ) (843 ) 3,550 290 6,927 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 3 (5 ) — — (16 ) — — (18 ) CASH AND CASH EQUIVALENTS, beginning of period — 5 — — 16 — — 21 CASH AND CASH EQUIVALENTS, end of period $ 3 $ — $ — $ — $ — $ — $ — $ 3 Charter Communications, Inc. Consolidating Statement of Cash Flows For the year ended December 31, 2013 Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary - CCO Safari Eliminations Charter Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Consolidated net income (loss) $ (183 ) $ (107 ) $ — $ (114 ) $ 678 $ — $ (443 ) $ (169 ) Adjustments to reconcile net income (loss) to net cash flows from operating activities: Depreciation and amortization — — — — 1,854 — — 1,854 Noncash interest expense — — — 27 16 — — 43 Loss on extinguishment of debt — — — 65 58 — — 123 Gain on derivative instruments, net — — — — (11 ) — — (11 ) Deferred income taxes 105 — — — 7 — — 112 Equity in (income) losses of subsidiaries 75 114 — (632 ) — — 443 — Other, net — — — — 82 — — 82 Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: Accounts receivable (3 ) (1 ) — — 14 — — 10 Prepaid expenses and other assets — 1 — — (1 ) — — — Accounts payable, accrued liabilities and other — (3 ) — 41 76 — — 114 Receivables from and payables to related party 5 (1 ) — (10 ) 6 — — — Net cash flows from operating activities (1 ) 3 — (623 ) 2,779 — — 2,158 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — — — — (1,825 ) — — (1,825 ) Change in accrued expenses related to capital expenditures — — — — 76 — — 76 Purchases of cable systems, net — — — — (676 ) — — (676 ) Contribution to subsidiary (89 ) (534 ) — (1,022 ) — — 1,645 — Distributions from subsidiary — 6 — 630 — — (636 ) — Other, net — 1 — — (19 ) — — (18 ) Net cash flows from investing activities (89 ) (527 ) — (392 ) (2,444 ) — 1,009 (2,443 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — — 2,000 4,782 — — 6,782 Repayments of long-term debt — — — (955 ) (5,565 ) — — (6,520 ) Borrowings (payments) loans payable - related parties — — — (93 ) 93 — — — Payment for debt issuance costs — — — (25 ) (25 ) — — (50 ) Purchase of treasury stock (15 ) — — — — — — (15 ) Proceeds from exercise of options and warrants 104 — — — — — — 104 Contributions from parent — 534 — 89 1,022 — (1,645 ) — Distributions to parent — (5 ) — (1 ) (630 ) — 636 — Other, net — — — — (2 ) — — (2 ) Net cash flows from financing activities 89 529 — 1,015 (325 ) — (1,009 ) 299 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1 ) 5 — — 10 — — 14 CASH AND CASH EQUIVALENTS, beginning of period 1 — — — 6 — — 7 CASH AND CASH EQUIVALENTS, end of period $ — $ 5 $ — $ — $ 16 $ — $ — $ 21 |
Organization and Basis of Pre51
Organization and Basis of Presentation (Details) | Dec. 31, 2015 |
Charter Holdco [Member] | |
Entity Information [Line Items] | |
Charter's equity interest in Charter Holdco (percentage) | 100.00% |
Summary of Significant Accoun52
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Significant Accounting Policies | |||
Impairment of long-lived assets held-for-use | $ 0 | $ 0 | $ 0 |
Governmental imposed fees passed through to the customer | 255,000,000 | 248,000,000 | 234,000,000 |
Programming fee incentive | 19,000,000 | 19,000,000 | 7,000,000 |
Programming | 2,678,000,000 | 2,459,000,000 | 2,146,000,000 |
Advertising costs | 389,000,000 | 380,000,000 | 357,000,000 |
Stock compensation expense | $ 78,000,000 | $ 55,000,000 | $ 48,000,000 |
Risk free interest rate (percentage) | 1.50% | 2.00% | 1.50% |
Volatility rate (percentage) | 34.70% | 36.90% | 37.80% |
Expected lives (in years) | 6 years 6 months | 6 years 6 months | 6 years 4 months |
Cost of equity (percentage) | 16.20% | ||
Minimum [Member] | Cable distribution systems [Member] | |||
Significant Accounting Policies | |||
Property, plant and equipment, useful life (in years) | 7 years | ||
Minimum [Member] | Customer premise equipment and installations [Member] | |||
Significant Accounting Policies | |||
Property, plant and equipment, useful life (in years) | 3 years | ||
Minimum [Member] | Vehicles and equipment [Member] | |||
Significant Accounting Policies | |||
Property, plant and equipment, useful life (in years) | 3 years | ||
Minimum [Member] | Buildings and improvements [Member] | |||
Significant Accounting Policies | |||
Property, plant and equipment, useful life (in years) | 15 years | ||
Minimum [Member] | Furniture, fixtures and equipment [Member] | |||
Significant Accounting Policies | |||
Property, plant and equipment, useful life (in years) | 6 years | ||
Maximum [Member] | Cable distribution systems [Member] | |||
Significant Accounting Policies | |||
Property, plant and equipment, useful life (in years) | 20 years | ||
Maximum [Member] | Customer premise equipment and installations [Member] | |||
Significant Accounting Policies | |||
Property, plant and equipment, useful life (in years) | 8 years | ||
Maximum [Member] | Vehicles and equipment [Member] | |||
Significant Accounting Policies | |||
Property, plant and equipment, useful life (in years) | 6 years | ||
Maximum [Member] | Buildings and improvements [Member] | |||
Significant Accounting Policies | |||
Property, plant and equipment, useful life (in years) | 40 years | ||
Maximum [Member] | Furniture, fixtures and equipment [Member] | |||
Significant Accounting Policies | |||
Property, plant and equipment, useful life (in years) | 10 years |
Summary of Significant Accoun53
Summary of Significant Accounting Policies (Revenue By Product Line) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Product Information | |||||||||||
Revenues | $ 2,512 | $ 2,450 | $ 2,430 | $ 2,362 | $ 2,360 | $ 2,287 | $ 2,259 | $ 2,202 | $ 9,754 | $ 9,108 | $ 8,155 |
Video [Member] | |||||||||||
Product Information | |||||||||||
Revenues | 4,587 | 4,443 | 4,040 | ||||||||
Internet [Member] | |||||||||||
Product Information | |||||||||||
Revenues | 3,003 | 2,576 | 2,186 | ||||||||
Voice [Member] | |||||||||||
Product Information | |||||||||||
Revenues | 539 | 575 | 644 | ||||||||
Residential revenue [Member] | |||||||||||
Product Information | |||||||||||
Revenues | 8,129 | 7,594 | 6,870 | ||||||||
Small and medium business [Member] | |||||||||||
Product Information | |||||||||||
Revenues | 764 | 676 | 553 | ||||||||
Enterprise [Member] | |||||||||||
Product Information | |||||||||||
Revenues | 363 | 317 | 259 | ||||||||
Commercial revenue [Member] | |||||||||||
Product Information | |||||||||||
Revenues | 1,127 | 993 | 812 | ||||||||
Advertising sales [Member] | |||||||||||
Product Information | |||||||||||
Revenues | 309 | 341 | 291 | ||||||||
Other [Member] | |||||||||||
Product Information | |||||||||||
Revenues | $ 189 | $ 180 | $ 182 |
Mergers and Acquisitions (Detai
Mergers and Acquisitions (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2014 | Jul. 01, 2013 | |
Business Acquisition [Line Items] | ||||
Principal Amount | $ 35,902,000,000 | $ 21,092,000,000 | ||
Remaining commitments from banks | 2,700,000,000 | |||
Credit Facility Availability | 1,700,000,000 | |||
TWC Transaction [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash portion of purchase price for TWC Transaction - Option A (dollars per share) | $ 100 | |||
Equity portion of purchase price for TWC Transaction - Option A | 0.5409 | |||
Cash portion of purchase price for TWC Transaction - Option B (dollars per share) | $ 115 | |||
Equity portion of purchase price for TWC Transaction - Option B | 0.4562 | |||
Total value consideration to be paid to TWC stockholders upon consummation of the TWC Transaction | $ 79,000,000,000 | |||
Cash portion of the consideration for the TWC Transaction | 28,000,000,000 | |||
Liberty purchase price of New Charter common stock | 4,300,000,000 | |||
Bank commitment - bridge facility amount | 4,300,000,000 | |||
Bright House Transaction [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash portion for Bright House Transaction | 2,000,000,000 | |||
Face amount of convertible preferred units | $ 2,500,000,000 | |||
Preferred Stock, Dividend Rate, Percentage | 6.00% | |||
Number of common units issued to A/N in connection with the purchase of Bright House | 34,300,000 | |||
Value of common units issued to A/N in connection with the purchase of Bright House | $ 6,000,000,000 | |||
Liberty purchase price of New Charter common stock | 700,000,000 | |||
Bresnan [Member] | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 1,625,000,000 | |||
Pro forma revenues | $ 8,419,000,000 | |||
Pro forma net loss | $ (194,000,000) | |||
Pro forma loss per common share, basic and diluted (in dollars per share) | $ (1.90) | |||
CCO Safari II [Member] | Senior secured notes [Member] | TWC Transaction [Member] | ||||
Business Acquisition [Line Items] | ||||
Principal Amount | 15,500,000,000 | |||
CCO Safari III [Member] | Senior secured bank loans [Member] | TWC Transaction [Member] | ||||
Business Acquisition [Line Items] | ||||
Principal Amount | 3,800,000,000 | 0 | ||
CCOH Safari, LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Principal Amount | 3,500,000,000 | |||
CCOH Safari, LLC [Member] | 5.75% senior notes due February 15, 2026 [Member] | TWC Transaction [Member] | ||||
Business Acquisition [Line Items] | ||||
Principal Amount | 2,500,000,000 | $ 0 | ||
Charter Operating [Member] | Term Loan E [Member] | ||||
Business Acquisition [Line Items] | ||||
Principal Amount | $ 1,500,000,000 | |||
Charter Operating [Member] | Term Loan E [Member] | Bresnan [Member] | ||||
Business Acquisition [Line Items] | ||||
Principal Amount | $ 1,500,000,000 |
Allowance for Doubtful Accoun55
Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance, beginning of period | $ 22 | $ 19 | $ 14 |
Charged to expense | 135 | 122 | 101 |
Uncollected balances written off, net of recoveries | (136) | (119) | (96) |
Balance, end of period | $ 21 | $ 22 | $ 19 |
Property, Plant and Equipment56
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 14,863 | $ 13,857 | |
Less: accumulated depreciation | (6,518) | (5,484) | |
Property, Plant and Equipment, Net | 8,345 | 8,373 | |
Depreciation expense | 1,900 | 1,800 | $ 1,600 |
Cable distributions systems [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 8,158 | 7,919 | |
Customer premise equipment and installations [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 4,632 | 4,388 | |
Vehicles and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 384 | 335 | |
Buildings and improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 570 | 499 | |
Furniture, fixtures and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 1,119 | $ 716 |
Franchises, Goodwill and Othe57
Franchises, Goodwill and Other Intangible Assets Indefinite and Finite-Lived Intangibles (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Indefinite-lived intangible assets: [Abstract] | ||
Goodwill | $ 1,168 | $ 1,168 |
Total indefinite lived intangible assets | 7,337 | 7,337 |
Finite-lived intangible assets [Abstract] | ||
Gross carrying amount | 2,789 | 2,767 |
Accumulated amortization | 1,842 | 1,571 |
Net carrying amount | 947 | 1,196 |
Customer Relationships [Member] | ||
Finite-lived intangible assets [Abstract] | ||
Gross carrying amount | 2,616 | 2,616 |
Accumulated amortization | 1,760 | 1,511 |
Net carrying amount | 856 | 1,105 |
Other Intangible Assets [Member] | ||
Finite-lived intangible assets [Abstract] | ||
Gross carrying amount | 173 | 151 |
Accumulated amortization | 82 | 60 |
Net carrying amount | 91 | 91 |
Franchises [Member] | ||
Indefinite-lived intangible assets: [Abstract] | ||
Indefinite lived intangible assets, gross | 6,006 | 6,006 |
Goodwill [Member] | ||
Indefinite-lived intangible assets: [Abstract] | ||
Goodwill | 1,168 | 1,168 |
Trademarks [Member] | ||
Indefinite-lived intangible assets: [Abstract] | ||
Indefinite lived intangible assets, gross | 159 | 159 |
Other Intangible Assets [Member] | ||
Indefinite-lived intangible assets: [Abstract] | ||
Indefinite lived intangible assets, gross | $ 4 | $ 4 |
Minimum [Member] | Customer Relationships [Member] | ||
Finite-lived intangible assets [Abstract] | ||
Customer relationships, useful life (in years) | 8 years | |
Maximum [Member] | Customer Relationships [Member] | ||
Finite-lived intangible assets [Abstract] | ||
Customer relationships, useful life (in years) | 15 years |
Franchises, Goodwill and Othe58
Franchises, Goodwill and Other Intangible Assets Other Intangible Assets Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 271 | $ 299 | $ 299 |
Future Amortization Expense (De
Future Amortization Expense (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,016 | $ 237 | |
2,017 | 204 | |
2,018 | 169 | |
2,019 | 133 | |
2,020 | 95 | |
Thereafter | 109 | |
Net carrying amount | $ 947 | $ 1,196 |
Accounts Payable and Accrued 60
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Accounts payable - trade | $ 134 | $ 140 |
Accrued capital expenditures | 296 | 268 |
Deferred revenue | 96 | 85 |
Accrued liabilities: | ||
Interest | 445 | 212 |
Programming costs | 451 | 430 |
Franchise related fees | 65 | 65 |
Compensation | 186 | 169 |
Other | 299 | 266 |
Total | $ 1,972 | $ 1,635 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 30, 2015 | |
Debt Instrument [Line Items] | ||||
Principal Amount | $ 35,902 | $ 21,092 | ||
Accreted Value | 35,723 | 20,887 | ||
Credit Facility Availability | 1,700 | |||
Loss on extinguishment of debt | 128 | 0 | $ 123 | |
2,016 | 121 | |||
2,017 | 140 | |||
2,018 | 844 | |||
2,019 | 665 | |||
2,020 | 4,202 | |||
Thereafter | 29,930 | |||
CCOH Safari, LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | 3,500 | |||
CCO Holdings [Member] | ||||
Debt Instrument [Line Items] | ||||
Loss on extinguishment of debt | $ 123 | 0 | 65 | |
Maximum Redemption Percentage (percentage) | 40.00% | |||
Redemption Premium Percent (percentage) | 101.00% | |||
CCOH Safari and CCO Safari [Member] | ||||
Debt Instrument [Line Items] | ||||
Loss on extinguishment of debt | $ 5 | 0 | 0 | |
5.50% senior notes due December 1, 2022 [Member] | CCOH Safari, LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | 0 | 1,500 | ||
Accreted Value | $ 0 | 1,499 | ||
Stated interest rate (percentage) | 5.50% | |||
5.75% senior notes due December 1, 2024 [Member] | CCOH Safari, LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 0 | 2,000 | ||
Accreted Value | $ 0 | 1,999 | ||
Stated interest rate (percentage) | 5.75% | |||
5.75% senior notes due February 15, 2026 [Member] | CCOH Safari, LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percentage) | 5.75% | |||
Debt Issuance Cost | $ 40 | |||
3.579% senior secured notes due July 23, 2020 [Member] | CCO Safari II [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | 2,000 | 0 | ||
Accreted Value | $ 1,999 | 0 | ||
Stated interest rate (percentage) | 3.579% | |||
4.464% senior secured notes due July 23, 2022 [Member] | CCO Safari II [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 3,000 | 0 | ||
Accreted Value | $ 2,998 | 0 | ||
Stated interest rate (percentage) | 4.464% | |||
4.908% senior secured notes due July 23, 2025 [Member] | CCO Safari II [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 4,500 | 0 | ||
Accreted Value | $ 4,497 | 0 | ||
Stated interest rate (percentage) | 4.908% | |||
6.384% senior secured notes due October 23, 2035 [Member] | CCO Safari II [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 2,000 | 0 | ||
Accreted Value | $ 1,999 | 0 | ||
Stated interest rate (percentage) | 6.384% | |||
6.484% senior secured notes due October 23, 2045 [Member] | CCO Safari II [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 3,500 | 0 | ||
Accreted Value | $ 3,498 | 0 | ||
Stated interest rate (percentage) | 6.484% | |||
6.834% senior secured notes due October 23, 2055 [Member] | CCO Safari II [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 500 | 0 | ||
Accreted Value | $ 500 | 0 | ||
Stated interest rate (percentage) | 6.834% | |||
Senior secured bank loans [Member] | CCO Safari III [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Issuance Cost | $ 34 | |||
Redemption Price (Percentage) | 99.75% | |||
7.250% senior notes due October 30, 2017 [Member] | CCO Holdings [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 0 | 1,000 | ||
Accreted Value | $ 0 | 992 | ||
Stated interest rate (percentage) | 7.25% | |||
Debt Instrument, Repurchased Face Amount | $ 1,000 | |||
7.000% senior notes due January 15, 2019 [Member] | CCO Holdings [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 600 | 1,400 | ||
Accreted Value | $ 594 | 1,381 | ||
Stated interest rate (percentage) | 7.00% | |||
Debt Instrument, Repurchased Face Amount | 800 | |||
8.125% senior notes due April 30, 2020 [Member] | CCO Holdings [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 0 | 700 | ||
Accreted Value | $ 0 | 692 | ||
Stated interest rate (percentage) | 8.125% | |||
Debt Instrument, Repurchased Face Amount | $ 700 | |||
7.375% senior notes due June 1, 2020 [Member] | CCO Holdings [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 750 | 750 | ||
Accreted Value | $ 744 | 742 | ||
Stated interest rate (percentage) | 7.375% | |||
5.250% senior notes due March 15, 2021 [Member] | CCO Holdings [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 500 | 500 | ||
Accreted Value | $ 496 | 495 | ||
Stated interest rate (percentage) | 5.25% | |||
6.500% senior notes due April 30, 2021 [Member] | CCO Holdings [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 1,500 | 1,500 | ||
Accreted Value | $ 1,487 | 1,485 | ||
Stated interest rate (percentage) | 6.50% | |||
6.625% senior notes due January 31, 2022 [Member] | CCO Holdings [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 750 | 750 | ||
Accreted Value | $ 740 | 739 | ||
Stated interest rate (percentage) | 6.625% | |||
5.250% senior notes due September 30, 2022 [Member] | CCO Holdings [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 1,250 | 1,250 | ||
Accreted Value | $ 1,229 | 1,228 | ||
Stated interest rate (percentage) | 5.25% | |||
5.125% Senior Notes Due February 15, 2023 [Member] | CCO Holdings [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 1,000 | 1,000 | ||
Accreted Value | $ 990 | 989 | ||
Stated interest rate (percentage) | 5.125% | |||
5.125% senior notes due May 1, 2023 [Member] | CCO Holdings [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 1,150 | 0 | ||
Accreted Value | $ 1,140 | 0 | ||
Stated interest rate (percentage) | 5.125% | |||
5.750% senior notes due September 1, 2023 [Member] | CCO Holdings [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 500 | 500 | ||
Accreted Value | $ 495 | 495 | ||
Stated interest rate (percentage) | 5.75% | |||
5.750% senior notes due January 15, 2024 [Member] | CCO Holdings [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 1,000 | 1,000 | ||
Accreted Value | $ 990 | 989 | ||
Stated interest rate (percentage) | 5.75% | |||
5.375% senior notes due May 1, 2025 [Member] | CCO Holdings [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 750 | 0 | ||
Accreted Value | $ 744 | 0 | ||
Stated interest rate (percentage) | 5.375% | |||
5.875% senior notes due May 1, 2027 [Member] | CCO Holdings [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 800 | 0 | ||
Accreted Value | $ 794 | 0 | ||
Stated interest rate (percentage) | 5.875% | |||
Charter Operating Credit Facilities [Member] | Charter Operating [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 3,552 | 3,742 | ||
Accreted Value | 3,502 | 3,683 | ||
Credit Facility Availability | 961 | |||
Loss on extinguishment of debt | 0 | 0 | $ 58 | |
Debt Default, Minimum Principal Amount, Failure Pay By Entity Subsidiaries | $ 100 | |||
Charter Operating Credit Facilities [Member] | Charter Operating [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Leverage Ratio | 3.5 | |||
Charter Operating Credit Facilities [Member] | Charter Operating [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Change of control threshold for voting stock in event of debt default (percentage) | 50.00% | |||
Term Loan G [Member] | CCO Safari [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 0 | 3,500 | ||
Accreted Value | 0 | $ 3,479 | ||
Senior secured notes [Member] | CCO Safari II [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Issuance Cost | $ 143 | |||
Redemption Price (Percentage) | 101.00% | |||
Term H Loan [Member] | CCO Safari III [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 1,000 | |||
Basis Spread on Variable Rate (percentage) | 2.50% | |||
Debt Discount, Percentage of Principal (percentage) | 99.75% | |||
Libor Floor (percentage) | 0.75% | |||
Term I Loan [Member] | CCO Safari III [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 2,800 | |||
Basis Spread on Variable Rate (percentage) | 2.75% | |||
Debt Discount, Percentage of Principal (percentage) | 99.75% | |||
Libor Floor (percentage) | 0.75% | |||
Term Loan A [Member] | Charter Operating [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 647 | |||
2,016 | 66 | |||
2,017 | 75 | |||
Term Loan E [Member] | Charter Operating [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | 1,500 | |||
Periodic Payment | 15 | |||
Term Loan F [Member] | Charter Operating [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | 1,200 | |||
Periodic Payment | 12 | |||
Revolving Loan due 2018 [Member] | Charter Operating [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | 273 | |||
Maximum Borrowing Capacity | $ 1,300 | |||
Commitment Fee Percentage (percentage) | 0.30% | |||
Senior Notes Payable [Member] | CCO Holdings [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Leverage Ratio | 6 | |||
Senior Notes Payable [Member] | CCO Holdings [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Leverage Ratio | 1 | |||
Senior Notes Payable [Member] | CCO Holdings [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum Redemption Percentage (percentage) | 35.00% | |||
Redemption Premium Percent (percentage) | 101.00% | |||
Senior Notes Payable [Member] | CCO Holdings [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Redemption Price (Percentage) | 100.00% | |||
Senior Notes Payable issued in April 2015 [Member] [Member] | CCO Holdings [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum Redemption Percentage (percentage) | 40.00% | |||
London Interbank Offered Rate (LIBOR) [Member] | Charter Operating Credit Facilities [Member] | Charter Operating [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest Rate at Period End (percentage) | 0.42% | 0.17% | ||
London Interbank Offered Rate (LIBOR) [Member] | Term Loan A [Member] | Charter Operating [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis Spread on Variable Rate (percentage) | 2.00% | |||
London Interbank Offered Rate (LIBOR) [Member] | Term Loan E [Member] | Charter Operating [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis Spread on Variable Rate (percentage) | 2.25% | |||
London Interbank Offered Rate (LIBOR) [Member] | Term Loan E [Member] | Charter Operating [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Libor Floor (percentage) | 0.75% | |||
London Interbank Offered Rate (LIBOR) [Member] | Term Loan F [Member] | Charter Operating [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis Spread on Variable Rate (percentage) | 2.25% | |||
London Interbank Offered Rate (LIBOR) [Member] | Term Loan F [Member] | Charter Operating [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Libor Floor (percentage) | 0.75% | |||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Loan due 2018 [Member] | Charter Operating [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis Spread on Variable Rate (percentage) | 2.00% | |||
Consolidated leverage ratio [Member] | Charter Operating Credit Facilities [Member] | Charter Operating [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Leverage Ratio | 5 | |||
Consolidated leverage ratio [Member] | Charter Operating Credit Facilities [Member] | Charter Operating [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Leverage Ratio | 1 | |||
Consolidated first lien leverage ratio [Member] | Charter Operating Credit Facilities [Member] | Charter Operating [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Leverage Ratio | 4 | |||
Consolidated first lien leverage ratio [Member] | Charter Operating Credit Facilities [Member] | Charter Operating [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Leverage Ratio | 1 | |||
TWC Transaction [Member] | 5.75% senior notes due February 15, 2026 [Member] | CCOH Safari, LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 2,500 | $ 0 | ||
Accreted Value | 2,499 | 0 | ||
TWC Transaction [Member] | Senior secured bank loans [Member] | CCO Safari III [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | 3,800 | 0 | ||
Accreted Value | 3,788 | $ 0 | ||
TWC Transaction [Member] | Senior secured notes [Member] | CCO Safari II [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 15,500 |
Treasury Stock (Details)
Treasury Stock (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity, Class of Treasury Stock [Line Items] | |||
Total consideration of stock purchase | $ 38 | $ 19 | $ 15 |
Class A Common Stock [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares withheld in payment of exercise cost owed by employees (in shares) | 49,260 | ||
Treasury Stock, Shares, Retired (in shares) | 245,783 | 141,257 | |
Class A Common Stock [Member] | Income Tax Withholding [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares withheld in payment of income tax withholding owed by employees (in shares) | 196,523 | 141,257 | 150,258 |
Total consideration of stock purchase | $ 38 | $ 19 | $ 15 |
Common Stock (Details)
Common Stock (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Class A Common Stock [Member] | |||
Common Stock [Line Items] | |||
Votes per share (in votes) | 1 | ||
Stock issuances from exercise of warrants (in shares) | 5,243,167 | 4,481,656 | |
Proceeds from Warrant Exercises | $ 90 | $ 76 | |
Class B Common Stock [Member] | |||
Common Stock [Line Items] | |||
Common stock voting interest (percentage) | 35.00% | ||
Stock issuances from exercise of warrants (in shares) | 0 | 0 |
Common Stock Activity (Details)
Common Stock Activity (Details) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Class A Common Stock [Member] | |||
Common Stock [Roll Forward] | |||
BALANCE | 111,999,687 | 106,144,075 | 101,176,247 |
Option exercises | 579,173 | 640,342 | 543,221 |
Restricted Stock issuances, net of cancellations | 6,920 | 9,090 | 4,879 |
Stock issuances from exercise of warrants | 5,243,167 | 4,481,656 | |
Restricted stock unit vesting | 98,831 | 104,270 | 88,330 |
Purchase of treasury stock (see Note 9) | (245,783) | (141,257) | (150,258) |
BALANCE | 112,438,828 | 111,999,687 | 106,144,075 |
Class B Common Stock [Member] | |||
Common Stock [Roll Forward] | |||
BALANCE | 0 | 0 | 0 |
Option exercises | 0 | 0 | 0 |
Restricted Stock issuances, net of cancellations | 0 | 0 | 0 |
Stock issuances from exercise of warrants | 0 | 0 | |
Restricted stock unit vesting | 0 | 0 | 0 |
Purchase of treasury stock (see Note 9) | 0 | 0 | 0 |
BALANCE | 0 | 0 | 0 |
Derivative instruments effect o
Derivative instruments effect on the Company's consolidated balance sheets (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Accumulated other comprehensive loss | $ (13) | $ (22) |
Accrued interest [Member] | Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of interest rate derivatives not designated as hedges | 3 | 2 |
Other long-term liabilities [Member] | Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of interest rate derivatives not designated as hedges | 10 | 16 |
Accumulated other comprehensive loss [Member] | Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Accumulated other comprehensive loss | $ (13) | $ (22) |
Derivative instruments effect66
Derivative instruments effect on the Company's consolidated statement of operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivatives, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative instruments, net | $ (4) | $ (7) | $ 11 |
Not Designated as Hedging Instrument [Member] | Gain (loss) on derivative instruments, net [Member] | Interest Rate Swap [Member] | Cash Flow Hedging [Member] | |||
Derivatives, Gain (Loss) [Line Items] | |||
Change in fair value of interest rate derivative instruments not designated as cash flow hedges | 5 | 12 | 38 |
Loss reclassified from accumulated other comprehensive loss into earnings as a result of cash flow hedge discontinuance | (9) | (19) | (27) |
Gain (loss) on derivative instruments, net | $ (4) | $ (7) | $ 11 |
Accounting for Derivative Ins67
Accounting for Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Cash Flow Hedge Loss to be Reclassified within Twelve Months | $ 8 | |
Derivative, Notional Amount | 1,100 | $ 1,400 |
Derivative, Notional Amount that expires in future period | $ 250 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Maximum amount invested in financial instrument per investment policy | $ 1,500 | $ 550 | |
Weighted average pay rate for the Company's interest rate swap agreements (percentage) | 1.61% | 1.87% | |
Carrying Value | $ 35,723 | $ 20,887 | |
Asset Impairment Charges | 0 | 0 | $ 0 |
Senior Notes Payable [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | 28,433 | 13,725 | |
Credit facilities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | 7,290 | 7,162 | |
Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money Market Funds | 14,330 | 4,112 | |
Commercial Paper | 0 | 0 | |
Interest Rate Derivatives | 0 | 0 | |
Fair Value, Inputs, Level 1 [Member] | Senior Notes Payable [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 28,744 | 14,205 | |
Fair Value, Inputs, Level 1 [Member] | Credit facilities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 7,274 | 7,186 | |
Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money Market Funds | 0 | 0 | |
Commercial Paper | 7,934 | 2,999 | |
Interest Rate Derivatives | 13 | 18 | |
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money Market Funds | 0 | 0 | |
Commercial Paper | 0 | 0 | |
Interest Rate Derivatives | $ 0 | $ 0 |
Operating Costs and Expenses (D
Operating Costs and Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Costs and Expenses [Abstract] | |||
Programming | $ 2,678 | $ 2,459 | $ 2,146 |
Franchise, Regulatory and Connectivity | 435 | 428 | 399 |
Cost to Service Customers | 1,705 | 1,679 | 1,575 |
Marketing | 619 | 610 | 557 |
Transition Costs | 72 | 14 | 0 |
Other | 917 | 783 | 668 |
Operating costs and expenses | $ 6,426 | $ 5,973 | $ 5,345 |
Other Operating Expenses, Net70
Other Operating Expenses, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Income and Expenses [Abstract] | |||
Merger and acquisition costs | $ 70 | $ 38 | $ 16 |
Special charges, net | 15 | 14 | 23 |
Loss on sale of assets, net | 4 | 10 | 8 |
Other Operating Expenses, Net | $ 89 | $ 62 | $ 47 |
Stock Compensation Plan - Other
Stock Compensation Plan - Other Disclosures (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized under 2009 Stock Incentive Plan (in shares) | 14 | ||
Stock compensation expense | $ 78 | $ 55 | $ 48 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period, options (in years) | 10 years | ||
Total compensation cost not yet recognized | $ 89 | ||
Total compensation cost not yet recognized, period for recognition (in years) | 2 years | ||
Stock Options [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 4 years | ||
Stock Options [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 3 years | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation cost not yet recognized | $ 2 | ||
Total compensation cost not yet recognized, period for recognition (in years) | 3 months | ||
Restricted Stock [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 4 years | ||
Restricted Stock [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 1 year | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation cost not yet recognized | $ 31 | ||
Total compensation cost not yet recognized, period for recognition (in years) | 2 years | ||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 4 years | ||
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 3 years |
Activity for the Company's stoc
Activity for the Company's stock options (Details) - Stock Options [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, beginning of period, shares | 3,689 | 3,142 | 3,552 |
Granted, shares | 1,301 | 1,234 | 276 |
Exercised, shares | (579) | (640) | (543) |
Canceled, shares | (72) | (47) | (143) |
Outstanding, end of period, shares | 4,339 | 3,689 | 3,142 |
Weighted average remaining contractual life (in years) | 7 years | 7 years | 7 years |
Options exercisable, end of period, shares | 1,354 | 1,317 | 1,128 |
Options expected to vest, end of period, shares | 2,730 | ||
Weighted average fair value of options granted (in dollars per share) | $ 59.86 | $ 55.08 | $ 41.52 |
Outstanding, beginning of period, weighted average exercise price (in dollars per share) | 86.29 | 59.86 | 54.35 |
Granted, weighted average exercise price (in dollars per share) | 160.16 | 136.75 | 108.89 |
Exercised, weighted average exercise price (in dollars per share) | 65.34 | 52.50 | 51.22 |
Canceled, weighted average exercise price (in dollars per share) | 140.36 | 104.57 | 50.54 |
Outstanding, end of period, weighted average exercise price (in dollars per share) | 110.34 | 86.29 | 59.86 |
Options exercisable, end of period, weighted average exercise price (in dollars per share) | 55.95 | $ 55.65 | $ 52.07 |
Options expected to vest, end of period, weighted average exercise price (in dollars per share) | $ 132.41 | ||
Exercised, aggregate intrinsic value | $ 68 | $ 55 | $ 33 |
Outstanding, end of period, aggregate intrinsic value | 316 | ||
Options exercisable, end of period, aggregate intrinsic value | 172 | ||
Options expected to vest, end of period, aggregate intrinsic value | $ 139 |
Activity for the Company's rest
Activity for the Company's restricted stock and restricted stock units (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding, beginning of period, shares | 431 | 653 | 928 |
Granted, shares | 7 | 9 | 13 |
Vested, shares | (220) | (231) | (280) |
Canceled, shares | 0 | 0 | (8) |
Outstanding, end of period, shares | 218 | 431 | 653 |
Outstanding, beginning of period, weighted average grant price (in dollars per share) | $ 57.24 | $ 56.14 | $ 54.16 |
Granted, weighted average grant price (in dollars per share) | 182.05 | 138.57 | 101.81 |
Vested, weighted average grant price (in dollars per share) | 58.92 | 57.35 | 51.62 |
Canceled, weighted average grant price (in dollars per share) | 0 | 0 | 56.50 |
Outstanding, end of period, weighted average grant price (in dollars per share) | $ 59.50 | $ 57.24 | $ 56.14 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding, beginning of period, shares | 325 | 288 | 327 |
Granted, shares | 164 | 153 | 73 |
Vested, shares | (99) | (104) | (88) |
Canceled, shares | (17) | (12) | (24) |
Outstanding, end of period, shares | 373 | 325 | 288 |
Outstanding, beginning of period, weighted average grant price (in dollars per share) | $ 104.01 | $ 74.73 | $ 61.79 |
Granted, weighted average grant price (in dollars per share) | 162.01 | 136.54 | 109.96 |
Vested, weighted average grant price (in dollars per share) | 71.12 | 70.23 | 61.17 |
Canceled, weighted average grant price (in dollars per share) | 140.55 | 112.53 | 55.28 |
Outstanding, end of period, weighted average grant price (in dollars per share) | $ 136.51 | $ 104.01 | $ 74.73 |
Income Taxes - Current and defe
Income Taxes - Current and deferred income tax expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current expense: | |||
Federal income taxes | $ (1) | $ (1) | $ (1) |
State income taxes | (4) | (2) | (7) |
Current income tax expense | (5) | (3) | (8) |
Deferred benefit (expense): | |||
Federal income taxes | 53 | (192) | (101) |
State income taxes | 12 | (41) | (11) |
Deferred income tax benefit (expense) | 65 | (233) | (112) |
Income tax benefit (expense) | $ 60 | $ (236) | $ (120) |
Income Taxes - Effective tax ra
Income Taxes - Effective tax rate differences from the applicable federal rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax [Line Items] | |||
Federal income tax rate (percentage) | 35.00% | 35.00% | 35.00% |
Statutory federal income taxes | $ 116 | $ (18) | $ 17 |
Statutory state income taxes, net | (4) | (2) | (7) |
Nondeductible expenses | (12) | (10) | (3) |
Change in valuation allowance | (250) | (203) | (127) |
Organizational restructuring | 187 | 0 | 0 |
Federal tax credit | 18 | 0 | 0 |
State rate changes | 4 | (3) | 4 |
Other | 1 | 0 | (4) |
Income tax benefit (expense) | $ 60 | $ (236) | $ (120) |
Income Taxes - Deferred tax ass
Income Taxes - Deferred tax assets and liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Goodwill | $ 315 | $ 251 |
Investment in partnership | 0 | 293 |
Loss carryforwards | 4,247 | 3,595 |
Other intangibles | 211 | 112 |
Accrued and other | 227 | 172 |
Total gross deferred tax assets | 5,000 | 4,423 |
Less: valuation allowance | (3,186) | (3,149) |
Deferred tax assets | 1,814 | 1,274 |
Indefinite life intangibles | 1,582 | 1,428 |
Property, plant and equipment | (1,822) | (1,247) |
Deferred tax liabilities | (3,404) | (2,922) |
Net deferred tax liabilities | (1,590) | (1,648) |
Indirect corporate subsidiaries [Member] | ||
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Indefinite life intangibles | 0 | 122 |
Other | 0 | (125) |
Net deferred tax liabilities | $ (28) | $ (234) |
Income Taxes - Textuals (Detail
Income Taxes - Textuals (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | May. 01, 2013 | |
Income Tax Contingency [Line Items] | ||||
Income tax benefit | $ (60) | $ 236 | $ 120 | |
Decrease in deferred tax liabilities | (137) | |||
Deferred income tax benefit | 65 | (233) | (112) | |
Net deferred tax liabilities | 1,590 | $ 1,648 | ||
Operating Loss Carryforwards | 11,300 | |||
Operating loss carryforwards that expire through year 2023 | 560 | |||
Operating loss carryforwards that expire between years 2024 and 2028 | 5,700 | |||
Operating loss carryforwards that expire after year 2028 | 5,000 | |||
Unrecognized Tax Benefits | 5 | |||
Restrictions expire in 2016 [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Operating Loss Carryforwards | 400 | |||
Restrictions expire in 2017 and thereafter [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Operating Loss Carryforwards | 226 | |||
Unrestricted [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Operating Loss Carryforwards | 9,100 | |||
Restricted [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Operating Loss Carryforwards | 2,200 | |||
Liberty Media [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Equity Method Investment, Ownership Percentage (percentage) | 27.00% | |||
Tax benefit to be recorded through equity when realized as a reduction of income tax payable [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Operating Loss Carryforwards | 222 | |||
Federal income taxes | ||||
Income Tax Contingency [Line Items] | ||||
Deferred tax assets subject to expiration | 4,000 | |||
State income taxes [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Deferred tax assets subject to expiration | 365 | |||
The Election [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Increase in tax basis | 638 | |||
Income tax benefit | $ (187) | |||
Repayment of Charter Operating Credit Facility [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Deferred income tax benefit | 101 | |||
Partnership Restructuring [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Deferred income tax benefit | 36 | |||
Step-up in tax basis, intangible assets | $ 405 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | ||||
Equity losses of investee | $ 0 | $ 0 | $ 0 | |
Dr. John Malone's, a member of Charter's board of directors, ownership percentage in Discovery Communications, Inc. (percentage) | 4.80% | |||
Dr. John Malone's, a member of Charter's board of directors, voting interest in Discovery Communications, Inc. for election of directors (percentage) | 28.70% | |||
Dr. John Malone's, a member of Charter's board of directors, ownership percentage in Starz (percentage) | 10.80% | |||
Dr. John Malone's, a member of Charter's board of directors, voting interest in Starz (percentage) | 47.20% | |||
AVN [Member] | ||||
Related Party Transaction [Line Items] | ||||
Equity Method Investment, Ownership Percentage (percentage) | 35.00% | |||
Payments to Acquire Investments | $ 55 | |||
AVN and other investments [Member] | ||||
Related Party Transaction [Line Items] | ||||
Equity losses of investee | 7 | |||
Payments to related party | 28 | |||
Liberty Interactive [Member] | ||||
Related Party Transaction [Line Items] | ||||
Payments to related party | $ 10 | $ 17 | $ 14 | |
Dr. John Malone's, a member of Charter's board of directors, voting interest in Liberty Interactive Corp. (percentage) | 36.80% | |||
Liberty Interactive Corp.'s ownership percentage in HSN, Inc. (percentage) | 38.00% | |||
Percent of board members Liberty Interactive Corp. can elect to HSN Inc.'s board (percentage) | 20.00% | |||
Maximum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Percent of total operating costs and expenses paid to Discovery and Starz (percentage) | 3.00% | 3.00% | 3.00% |
Commitments and Contingencies79
Commitments and Contingencies (Schedule of Company Payment Obligations) (Details) $ in Millions | Dec. 31, 2015USD ($) | |
Contractual Obligation [Line Items] | ||
Contractual Obligations | $ 1,163 | |
Contractual Obligation, Due 2016 | 713 | |
Contractual Obligation, Due 2017 | 304 | |
Contractual Obligation, Due 2018 | 55 | |
Contractual Obligation, Due 2019 | 40 | |
Contractual Obligation, Due 2020 | 25 | |
Contractual Obligation, Due Thereafter | 26 | |
Operating Lease Obligations [Member] | ||
Contractual Obligation [Line Items] | ||
Contractual Obligations | 183 | [1] |
Contractual Obligation, Due 2016 | 51 | [1] |
Contractual Obligation, Due 2017 | 46 | [1] |
Contractual Obligation, Due 2018 | 32 | [1] |
Contractual Obligation, Due 2019 | 23 | [1] |
Contractual Obligation, Due 2020 | 12 | [1] |
Contractual Obligation, Due Thereafter | 19 | [1] |
Programming Minimum Commitments [Member] | ||
Contractual Obligation [Line Items] | ||
Contractual Obligations | 545 | [2] |
Contractual Obligation, Due 2016 | 265 | [2] |
Contractual Obligation, Due 2017 | 239 | [2] |
Contractual Obligation, Due 2018 | 13 | [2] |
Contractual Obligation, Due 2019 | 14 | [2] |
Contractual Obligation, Due 2020 | 11 | [2] |
Contractual Obligation, Due Thereafter | 3 | [2] |
Other [Member] | ||
Contractual Obligation [Line Items] | ||
Contractual Obligations | 435 | [3] |
Contractual Obligation, Due 2016 | 397 | [3] |
Contractual Obligation, Due 2017 | 19 | [3] |
Contractual Obligation, Due 2018 | 10 | [3] |
Contractual Obligation, Due 2019 | 3 | [3] |
Contractual Obligation, Due 2020 | 2 | [3] |
Contractual Obligation, Due Thereafter | $ 4 | [3] |
[1] | The Company leases certain facilities and equipment under non-cancelable operating leases. Leases and rental costs charged to expense for the years ended December 31, 2015, 2014 and 2013 were $49 million, $43 million, $34 million, respectively. | |
[2] | The Company pays programming fees under multi-year contracts ranging from three to ten years, typically based on a flat fee per customer, which may be fixed for the term, or may in some cases escalate over the term. Programming costs included in the accompanying statement of operations were $2.7 billion, $2.5 billion and $2.1 billion for the years ended December 31, 2015, 2014, and 2013 respectively. Certain of the Company’s programming agreements are based on a flat fee per month or have guaranteed minimum payments. The table sets forth the aggregate guaranteed minimum commitments under the Company’s programming contracts. | |
[3] | “Other” represents other guaranteed minimum commitments, which consist primarily of commitments to the Company's customer premise equipment vendors. |
Commitments and Contingencies80
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies [Line Items] | |||
Programming | $ 2,678 | $ 2,459 | $ 2,146 |
Franchise fees and other franchise-related costs | 212 | 208 | 190 |
Letters of credit, amount | $ 67 | ||
Minimum [Member] | |||
Commitments and Contingencies [Line Items] | |||
Programming fee term (in years) | 3 years | ||
Maximum [Member] | |||
Commitments and Contingencies [Line Items] | |||
Programming fee term (in years) | 10 years | ||
Operating Leases and Rentals [Member] | |||
Commitments and Contingencies [Line Items] | |||
Lease and rental costs charged to expense | $ 49 | 43 | 34 |
Utility Pole Rental Agreement [Member] | |||
Commitments and Contingencies [Line Items] | |||
Lease and rental costs charged to expense | $ 53 | 49 | $ 49 |
Montana Department of Revenue [Member] | |||
Commitments and Contingencies [Line Items] | |||
Property Tax Assessment on Cable Companies (percentage) | 3.00% | ||
Property Tax Assessment on Phone Companies (percentage) | 6.00% | ||
Reduction in Bresnan acquisition liabilities | 8 | ||
Reduction in expenses for post-acquisition settlements | $ 3 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Percent | 50.00% | ||
Defined Contribution Plan, Minimum Annual Contribution Per Employee, Percent | 1.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent | 50.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 6.00% | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 23 | $ 19 | $ 16 |
Recently Issued Accounting Stan
Recently Issued Accounting Standards (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2014USD ($) | |
ASU 2015-03 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Prior Period Reclassification Adjustment | $ 136 |
ASU 2015-17 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Prior Period Reclassification Adjustment | $ 26 |
Unaudited Quarterly Financial83
Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 2,512 | $ 2,450 | $ 2,430 | $ 2,362 | $ 2,360 | $ 2,287 | $ 2,259 | $ 2,202 | $ 9,754 | $ 9,108 | $ 8,155 |
Income from operations | 323 | 273 | 269 | 249 | 277 | 218 | 236 | 240 | 1,114 | 971 | 909 |
Net income (loss) | $ (122) | $ 54 | $ (122) | $ (81) | $ (48) | $ (53) | $ (45) | $ (37) | $ (271) | $ (183) | $ (169) |
Earnings per common share, basic (in dollars per share) | $ (1.09) | $ 0.48 | $ (1.09) | $ (0.73) | |||||||
Earnings per common share, diluted (in dollars per share) | $ (1.09) | $ 0.48 | $ (1.09) | $ (0.73) | |||||||
Weighted average common shares outstanding, basic (in shares) | 112,106,255 | 111,928,113 | 111,783,504 | 111,655,617 | |||||||
Weighted average common shares outstanding, diluted (in shares) | 112,106,255 | 113,339,885 | 111,783,504 | 111,655,617 | |||||||
LOSS PER COMMON SHARE, BASIC AND DILUTED (in dollars per share) | $ (0.44) | $ (0.49) | $ (0.42) | $ (0.35) | $ (2.43) | $ (1.70) | $ (1.65) | ||||
Weighted average common shares outstanding, basic and diluted (in shares) | 110,242,507 | 108,792,605 | 107,975,937 | 106,439,198 | 111,869,771 | 108,374,160 | 101,934,630 |
Condensed Consolidating Balance
Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CURRENT ASSETS: | ||||
Cash and cash equivalents | $ 5 | $ 3 | $ 21 | $ 7 |
Accounts receivable, net | 279 | 285 | ||
Receivables from related party | 0 | 0 | ||
Prepaid expenses and other current assets | 61 | 57 | ||
Total current assets | 345 | 345 | ||
RESTRICTED CASH AND CASH EQUIVALENTS | 22,264 | 7,111 | ||
INVESTMENT IN CABLE PROPERTIES: | ||||
Property, plant and equipment, net | 8,345 | 8,373 | ||
Franchises | 6,006 | 6,006 | ||
Customer relationships, net | 856 | 1,105 | ||
Goodwill | 1,168 | 1,168 | ||
Total investment in cable properties, net | 16,375 | 16,652 | ||
CC VIII PREFERRED INTEREST | 0 | |||
INVESTMENT IN SUBSIDIARIES | 0 | 0 | ||
LOANS RECEIVABLE - RELATED PARTY | 0 | 0 | ||
OTHER NONCURRENT ASSETS | 332 | 280 | ||
Total assets | 39,316 | 24,388 | ||
CURRENT LIABILITIES: | ||||
Accounts payable and accrued liabilities | 1,972 | 1,635 | ||
Payables to related party | 0 | 0 | ||
Total current liabilities | 1,972 | 1,635 | ||
LONG-TERM DEBT | 35,723 | 20,887 | ||
LOANS PAYABLE - RELATED PARTY | 0 | 0 | ||
DEFERRED INCOME TAXES | 1,590 | 1,648 | ||
OTHER LONG-TERM LIABILITIES | 77 | 72 | ||
Shareholders'/member's equity | 146 | |||
Non-controlling interest | 0 | |||
Total shareholders'/member's equity | (46) | 146 | 151 | 149 |
Total liabilities and shareholders'/member's equity | 39,316 | 24,388 | ||
Charter [Member] | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 0 | 3 | 0 | 1 |
Accounts receivable, net | 8 | 4 | ||
Receivables from related party | 51 | 55 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | 59 | 62 | ||
RESTRICTED CASH AND CASH EQUIVALENTS | 0 | 0 | ||
INVESTMENT IN CABLE PROPERTIES: | ||||
Property, plant and equipment, net | 0 | 0 | ||
Franchises | 0 | 0 | ||
Customer relationships, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Total investment in cable properties, net | 0 | 0 | ||
CC VIII PREFERRED INTEREST | 0 | |||
INVESTMENT IN SUBSIDIARIES | 1,468 | 1,509 | ||
LOANS RECEIVABLE - RELATED PARTY | 0 | 0 | ||
OTHER NONCURRENT ASSETS | 0 | 0 | ||
Total assets | 1,527 | 1,571 | ||
CURRENT LIABILITIES: | ||||
Accounts payable and accrued liabilities | 11 | 11 | ||
Payables to related party | 0 | 0 | ||
Total current liabilities | 11 | 11 | ||
LONG-TERM DEBT | 0 | 0 | ||
LOANS PAYABLE - RELATED PARTY | 0 | 0 | ||
DEFERRED INCOME TAXES | 1,562 | 1,414 | ||
OTHER LONG-TERM LIABILITIES | 0 | 0 | ||
Shareholders'/member's equity | 146 | |||
Non-controlling interest | 0 | |||
Total shareholders'/member's equity | (46) | 146 | ||
Total liabilities and shareholders'/member's equity | 1,527 | 1,571 | ||
Intermediate Holding Companies [Member] | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 0 | 0 | 5 | 0 |
Accounts receivable, net | 7 | 6 | ||
Receivables from related party | 297 | 221 | ||
Prepaid expenses and other current assets | 6 | 10 | ||
Total current assets | 310 | 237 | ||
RESTRICTED CASH AND CASH EQUIVALENTS | 0 | 0 | ||
INVESTMENT IN CABLE PROPERTIES: | ||||
Property, plant and equipment, net | 28 | 29 | ||
Franchises | 0 | 0 | ||
Customer relationships, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Total investment in cable properties, net | 28 | 29 | ||
CC VIII PREFERRED INTEREST | 436 | |||
INVESTMENT IN SUBSIDIARIES | 816 | 482 | ||
LOANS RECEIVABLE - RELATED PARTY | 333 | 326 | ||
OTHER NONCURRENT ASSETS | 216 | 166 | ||
Total assets | 1,703 | 1,676 | ||
CURRENT LIABILITIES: | ||||
Accounts payable and accrued liabilities | 203 | 152 | ||
Payables to related party | 0 | 0 | ||
Total current liabilities | 203 | 152 | ||
LONG-TERM DEBT | 0 | 0 | ||
LOANS PAYABLE - RELATED PARTY | 0 | 0 | ||
DEFERRED INCOME TAXES | 0 | 0 | ||
OTHER LONG-TERM LIABILITIES | 32 | 15 | ||
Shareholders'/member's equity | 1,509 | |||
Non-controlling interest | 0 | |||
Total shareholders'/member's equity | 1,468 | 1,509 | ||
Total liabilities and shareholders'/member's equity | 1,703 | 1,676 | ||
Safari Escrow Entities [Member] | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Receivables from related party | 0 | 0 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
RESTRICTED CASH AND CASH EQUIVALENTS | 22,264 | 3,597 | ||
INVESTMENT IN CABLE PROPERTIES: | ||||
Property, plant and equipment, net | 0 | 0 | ||
Franchises | 0 | 0 | ||
Customer relationships, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Total investment in cable properties, net | 0 | 0 | ||
CC VIII PREFERRED INTEREST | 0 | |||
INVESTMENT IN SUBSIDIARIES | 0 | 0 | ||
LOANS RECEIVABLE - RELATED PARTY | 0 | 0 | ||
OTHER NONCURRENT ASSETS | 0 | 1 | ||
Total assets | 22,264 | 3,598 | ||
CURRENT LIABILITIES: | ||||
Accounts payable and accrued liabilities | 282 | 18 | ||
Payables to related party | 17 | 0 | ||
Total current liabilities | 299 | 18 | ||
LONG-TERM DEBT | 21,778 | 3,498 | ||
LOANS PAYABLE - RELATED PARTY | 693 | 112 | ||
DEFERRED INCOME TAXES | 0 | 0 | ||
OTHER LONG-TERM LIABILITIES | 0 | 0 | ||
Shareholders'/member's equity | (30) | |||
Non-controlling interest | 0 | |||
Total shareholders'/member's equity | (506) | (30) | ||
Total liabilities and shareholders'/member's equity | 22,264 | 3,598 | ||
CCO Holdings [Member] | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Receivables from related party | 14 | 11 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | 14 | 11 | ||
RESTRICTED CASH AND CASH EQUIVALENTS | 0 | 0 | ||
INVESTMENT IN CABLE PROPERTIES: | ||||
Property, plant and equipment, net | 0 | 0 | ||
Franchises | 0 | 0 | ||
Customer relationships, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Total investment in cable properties, net | 0 | 0 | ||
CC VIII PREFERRED INTEREST | 0 | |||
INVESTMENT IN SUBSIDIARIES | 11,303 | 10,331 | ||
LOANS RECEIVABLE - RELATED PARTY | 613 | 584 | ||
OTHER NONCURRENT ASSETS | 0 | 0 | ||
Total assets | 11,930 | 10,926 | ||
CURRENT LIABILITIES: | ||||
Accounts payable and accrued liabilities | 165 | 187 | ||
Payables to related party | 0 | 0 | ||
Total current liabilities | 165 | 187 | ||
LONG-TERM DEBT | 10,443 | 10,227 | ||
LOANS PAYABLE - RELATED PARTY | 0 | 0 | ||
DEFERRED INCOME TAXES | 0 | 0 | ||
OTHER LONG-TERM LIABILITIES | 0 | 0 | ||
Shareholders'/member's equity | 512 | |||
Non-controlling interest | 0 | |||
Total shareholders'/member's equity | 1,322 | 512 | ||
Total liabilities and shareholders'/member's equity | 11,930 | 10,926 | ||
Charter Operating and Restricted Subsidiaries [Member] | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 5 | 0 | 16 | 6 |
Accounts receivable, net | 264 | 275 | ||
Receivables from related party | 0 | 0 | ||
Prepaid expenses and other current assets | 55 | 47 | ||
Total current assets | 324 | 322 | ||
RESTRICTED CASH AND CASH EQUIVALENTS | 0 | 0 | ||
INVESTMENT IN CABLE PROPERTIES: | ||||
Property, plant and equipment, net | 8,317 | 8,344 | ||
Franchises | 6,006 | 6,006 | ||
Customer relationships, net | 856 | 1,105 | ||
Goodwill | 1,168 | 1,168 | ||
Total investment in cable properties, net | 16,347 | 16,623 | ||
CC VIII PREFERRED INTEREST | 0 | |||
INVESTMENT IN SUBSIDIARIES | 0 | 27 | ||
LOANS RECEIVABLE - RELATED PARTY | 563 | 0 | ||
OTHER NONCURRENT ASSETS | 116 | 113 | ||
Total assets | 17,350 | 17,085 | ||
CURRENT LIABILITIES: | ||||
Accounts payable and accrued liabilities | 1,311 | 1,259 | ||
Payables to related party | 345 | 287 | ||
Total current liabilities | 1,656 | 1,546 | ||
LONG-TERM DEBT | 3,502 | 3,683 | ||
LOANS PAYABLE - RELATED PARTY | 816 | 798 | ||
DEFERRED INCOME TAXES | 28 | 234 | ||
OTHER LONG-TERM LIABILITIES | 45 | 57 | ||
Shareholders'/member's equity | 10,331 | |||
Non-controlling interest | 436 | |||
Total shareholders'/member's equity | 11,303 | 10,767 | ||
Total liabilities and shareholders'/member's equity | 17,350 | 17,085 | ||
Unrestricted Subisidiary – CCO Safari [Member] | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Receivables from related party | 0 | 0 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
RESTRICTED CASH AND CASH EQUIVALENTS | 0 | 3,514 | ||
INVESTMENT IN CABLE PROPERTIES: | ||||
Property, plant and equipment, net | 0 | 0 | ||
Franchises | 0 | 0 | ||
Customer relationships, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Total investment in cable properties, net | 0 | 0 | ||
CC VIII PREFERRED INTEREST | 0 | |||
INVESTMENT IN SUBSIDIARIES | 0 | 0 | ||
LOANS RECEIVABLE - RELATED PARTY | 0 | 0 | ||
OTHER NONCURRENT ASSETS | 0 | 0 | ||
Total assets | 0 | 3,514 | ||
CURRENT LIABILITIES: | ||||
Accounts payable and accrued liabilities | 0 | 8 | ||
Payables to related party | 0 | 0 | ||
Total current liabilities | 0 | 8 | ||
LONG-TERM DEBT | 0 | 3,479 | ||
LOANS PAYABLE - RELATED PARTY | 0 | 0 | ||
DEFERRED INCOME TAXES | 0 | 0 | ||
OTHER LONG-TERM LIABILITIES | 0 | 0 | ||
Shareholders'/member's equity | 27 | |||
Non-controlling interest | 0 | |||
Total shareholders'/member's equity | 0 | 27 | ||
Total liabilities and shareholders'/member's equity | 0 | 3,514 | ||
Eliminations [Member] | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts receivable, net | 0 | 0 | ||
Receivables from related party | (362) | (287) | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | (362) | (287) | ||
RESTRICTED CASH AND CASH EQUIVALENTS | 0 | 0 | ||
INVESTMENT IN CABLE PROPERTIES: | ||||
Property, plant and equipment, net | 0 | 0 | ||
Franchises | 0 | 0 | ||
Customer relationships, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Total investment in cable properties, net | 0 | 0 | ||
CC VIII PREFERRED INTEREST | (436) | |||
INVESTMENT IN SUBSIDIARIES | (13,587) | (12,349) | ||
LOANS RECEIVABLE - RELATED PARTY | (1,509) | (910) | ||
OTHER NONCURRENT ASSETS | 0 | 0 | ||
Total assets | (15,458) | (13,982) | ||
CURRENT LIABILITIES: | ||||
Accounts payable and accrued liabilities | 0 | 0 | ||
Payables to related party | (362) | (287) | ||
Total current liabilities | (362) | (287) | ||
LONG-TERM DEBT | 0 | 0 | ||
LOANS PAYABLE - RELATED PARTY | (1,509) | (910) | ||
DEFERRED INCOME TAXES | 0 | 0 | ||
OTHER LONG-TERM LIABILITIES | 0 | 0 | ||
Shareholders'/member's equity | (12,349) | |||
Non-controlling interest | (436) | |||
Total shareholders'/member's equity | (13,587) | (12,785) | ||
Total liabilities and shareholders'/member's equity | $ (15,458) | $ (13,982) |
Condensed Consolidating Stateme
Condensed Consolidating Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
REVENUES | $ 2,512 | $ 2,450 | $ 2,430 | $ 2,362 | $ 2,360 | $ 2,287 | $ 2,259 | $ 2,202 | $ 9,754 | $ 9,108 | $ 8,155 |
COSTS AND EXPENSES: | |||||||||||
Operating costs and expenses (exclusive of items shown separately below) | 6,426 | 5,973 | 5,345 | ||||||||
Depreciation and amortization | 2,125 | 2,102 | 1,854 | ||||||||
Other operating expenses, net | 89 | 62 | 47 | ||||||||
Total costs and expenses | 8,640 | 8,137 | 7,246 | ||||||||
Income from operations | 323 | 273 | 269 | 249 | 277 | 218 | 236 | 240 | 1,114 | 971 | 909 |
OTHER INCOME (EXPENSES): | |||||||||||
Interest expense, net | (1,306) | (911) | (846) | ||||||||
Loss on extinguishment of debt | (128) | 0 | (123) | ||||||||
Gain (loss) on derivative instruments, net | (4) | (7) | 11 | ||||||||
Other expense, net | (7) | 0 | 0 | ||||||||
Equity in income (loss) of subisidiaries | 0 | 0 | 0 | ||||||||
Total other expenses | (1,445) | (918) | (958) | ||||||||
Income (loss) before income taxes | (331) | 53 | (49) | ||||||||
Income tax benefit (expense) | 60 | (236) | (120) | ||||||||
Consolidated net income (loss) | $ (122) | $ 54 | $ (122) | $ (81) | $ (48) | $ (53) | $ (45) | $ (37) | (271) | (183) | (169) |
Less: Net (income) loss – noncontrolling interest | 0 | 0 | 0 | ||||||||
Net income (loss) | (271) | (183) | (169) | ||||||||
Charter [Member] | |||||||||||
REVENUES | 25 | 22 | 22 | ||||||||
COSTS AND EXPENSES: | |||||||||||
Operating costs and expenses (exclusive of items shown separately below) | 25 | 22 | 22 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Other operating expenses, net | 0 | 0 | 0 | ||||||||
Total costs and expenses | 25 | 22 | 22 | ||||||||
Income from operations | 0 | 0 | 0 | ||||||||
OTHER INCOME (EXPENSES): | |||||||||||
Interest expense, net | 0 | 0 | 0 | ||||||||
Loss on extinguishment of debt | 0 | 0 | |||||||||
Gain (loss) on derivative instruments, net | 0 | 0 | 0 | ||||||||
Other expense, net | 0 | ||||||||||
Equity in income (loss) of subisidiaries | (121) | 40 | (75) | ||||||||
Total other expenses | (121) | 40 | (75) | ||||||||
Income (loss) before income taxes | (121) | 40 | (75) | ||||||||
Income tax benefit (expense) | (150) | (223) | (108) | ||||||||
Consolidated net income (loss) | (271) | (183) | (183) | ||||||||
Less: Net (income) loss – noncontrolling interest | 0 | 0 | 14 | ||||||||
Net income (loss) | (271) | (183) | (169) | ||||||||
Intermediate Holding Companies [Member] | |||||||||||
REVENUES | 299 | 235 | 188 | ||||||||
COSTS AND EXPENSES: | |||||||||||
Operating costs and expenses (exclusive of items shown separately below) | 299 | 235 | 188 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Other operating expenses, net | 0 | 0 | 0 | ||||||||
Total costs and expenses | 299 | 235 | 188 | ||||||||
Income from operations | 0 | 0 | 0 | ||||||||
OTHER INCOME (EXPENSES): | |||||||||||
Interest expense, net | 8 | 8 | 8 | ||||||||
Loss on extinguishment of debt | 0 | 0 | |||||||||
Gain (loss) on derivative instruments, net | 0 | 0 | 0 | ||||||||
Other expense, net | (7) | ||||||||||
Equity in income (loss) of subisidiaries | (168) | (12) | (114) | ||||||||
Total other expenses | (167) | (4) | (106) | ||||||||
Income (loss) before income taxes | (167) | (4) | (106) | ||||||||
Income tax benefit (expense) | 0 | 0 | (1) | ||||||||
Consolidated net income (loss) | (167) | (4) | (107) | ||||||||
Less: Net (income) loss – noncontrolling interest | 46 | 44 | 32 | ||||||||
Net income (loss) | (121) | 40 | (75) | ||||||||
Safari Escrow Entities [Member] | |||||||||||
REVENUES | 0 | 0 | 0 | ||||||||
COSTS AND EXPENSES: | |||||||||||
Operating costs and expenses (exclusive of items shown separately below) | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Other operating expenses, net | 0 | 0 | 0 | ||||||||
Total costs and expenses | 0 | 0 | 0 | ||||||||
Income from operations | 0 | 0 | 0 | ||||||||
OTHER INCOME (EXPENSES): | |||||||||||
Interest expense, net | (474) | (30) | 0 | ||||||||
Loss on extinguishment of debt | (2) | 0 | |||||||||
Gain (loss) on derivative instruments, net | 0 | 0 | 0 | ||||||||
Other expense, net | 0 | ||||||||||
Equity in income (loss) of subisidiaries | 0 | 0 | 0 | ||||||||
Total other expenses | (476) | (30) | 0 | ||||||||
Income (loss) before income taxes | (476) | (30) | 0 | ||||||||
Income tax benefit (expense) | 0 | 0 | 0 | ||||||||
Consolidated net income (loss) | (476) | (30) | 0 | ||||||||
Less: Net (income) loss – noncontrolling interest | 0 | 0 | 0 | ||||||||
Net income (loss) | (476) | (30) | 0 | ||||||||
CCO Holdings [Member] | |||||||||||
REVENUES | 0 | 0 | 0 | ||||||||
COSTS AND EXPENSES: | |||||||||||
Operating costs and expenses (exclusive of items shown separately below) | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Other operating expenses, net | 0 | 0 | 0 | ||||||||
Total costs and expenses | 0 | 0 | 0 | ||||||||
Income from operations | 0 | 0 | 0 | ||||||||
OTHER INCOME (EXPENSES): | |||||||||||
Interest expense, net | (642) | (679) | (681) | ||||||||
Loss on extinguishment of debt | (123) | 0 | (65) | ||||||||
Gain (loss) on derivative instruments, net | 0 | 0 | 0 | ||||||||
Other expense, net | 0 | ||||||||||
Equity in income (loss) of subisidiaries | 1,073 | 697 | 632 | ||||||||
Total other expenses | 308 | 18 | (114) | ||||||||
Income (loss) before income taxes | 308 | 18 | (114) | ||||||||
Income tax benefit (expense) | 0 | 0 | 0 | ||||||||
Consolidated net income (loss) | 308 | 18 | (114) | ||||||||
Less: Net (income) loss – noncontrolling interest | 0 | 0 | 0 | ||||||||
Net income (loss) | 308 | 18 | (114) | ||||||||
Charter Operating and Restricted Subsidiaries [Member] | |||||||||||
REVENUES | 9,754 | 9,108 | 8,155 | ||||||||
COSTS AND EXPENSES: | |||||||||||
Operating costs and expenses (exclusive of items shown separately below) | 6,426 | 5,973 | 5,345 | ||||||||
Depreciation and amortization | 2,125 | 2,102 | 1,854 | ||||||||
Other operating expenses, net | 89 | 62 | 47 | ||||||||
Total costs and expenses | 8,640 | 8,137 | 7,246 | ||||||||
Income from operations | 1,114 | 971 | 909 | ||||||||
OTHER INCOME (EXPENSES): | |||||||||||
Interest expense, net | (151) | (165) | (173) | ||||||||
Loss on extinguishment of debt | 0 | (58) | |||||||||
Gain (loss) on derivative instruments, net | (4) | (7) | 11 | ||||||||
Other expense, net | 0 | ||||||||||
Equity in income (loss) of subisidiaries | (50) | (45) | 0 | ||||||||
Total other expenses | (205) | (217) | (220) | ||||||||
Income (loss) before income taxes | 909 | 754 | 689 | ||||||||
Income tax benefit (expense) | 210 | (13) | (11) | ||||||||
Consolidated net income (loss) | 1,119 | 741 | 678 | ||||||||
Less: Net (income) loss – noncontrolling interest | (46) | (44) | (46) | ||||||||
Net income (loss) | 1,073 | 697 | 632 | ||||||||
Unrestricted Subisidiary – CCO Safari [Member] | |||||||||||
REVENUES | 0 | 0 | 0 | ||||||||
COSTS AND EXPENSES: | |||||||||||
Operating costs and expenses (exclusive of items shown separately below) | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Other operating expenses, net | 0 | 0 | 0 | ||||||||
Total costs and expenses | 0 | 0 | 0 | ||||||||
Income from operations | 0 | 0 | 0 | ||||||||
OTHER INCOME (EXPENSES): | |||||||||||
Interest expense, net | (47) | (45) | 0 | ||||||||
Loss on extinguishment of debt | (3) | 0 | |||||||||
Gain (loss) on derivative instruments, net | 0 | 0 | 0 | ||||||||
Other expense, net | 0 | ||||||||||
Equity in income (loss) of subisidiaries | 0 | 0 | 0 | ||||||||
Total other expenses | (50) | (45) | 0 | ||||||||
Income (loss) before income taxes | (50) | (45) | 0 | ||||||||
Income tax benefit (expense) | 0 | 0 | 0 | ||||||||
Consolidated net income (loss) | (50) | (45) | 0 | ||||||||
Less: Net (income) loss – noncontrolling interest | 0 | 0 | 0 | ||||||||
Net income (loss) | (50) | (45) | 0 | ||||||||
Eliminations [Member] | |||||||||||
REVENUES | (324) | (257) | (210) | ||||||||
COSTS AND EXPENSES: | |||||||||||
Operating costs and expenses (exclusive of items shown separately below) | (324) | (257) | (210) | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Other operating expenses, net | 0 | 0 | 0 | ||||||||
Total costs and expenses | (324) | (257) | (210) | ||||||||
Income from operations | 0 | 0 | 0 | ||||||||
OTHER INCOME (EXPENSES): | |||||||||||
Interest expense, net | 0 | 0 | 0 | ||||||||
Loss on extinguishment of debt | 0 | 0 | |||||||||
Gain (loss) on derivative instruments, net | 0 | 0 | 0 | ||||||||
Other expense, net | 0 | ||||||||||
Equity in income (loss) of subisidiaries | (734) | (680) | (443) | ||||||||
Total other expenses | (734) | (680) | (443) | ||||||||
Income (loss) before income taxes | (734) | (680) | (443) | ||||||||
Income tax benefit (expense) | 0 | 0 | 0 | ||||||||
Consolidated net income (loss) | (734) | (680) | (443) | ||||||||
Less: Net (income) loss – noncontrolling interest | 0 | 0 | 0 | ||||||||
Net income (loss) | $ (734) | $ (680) | $ (443) |
Condensed Consolidating State86
Condensed Consolidating Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated net income (loss) | $ (122) | $ 54 | $ (122) | $ (81) | $ (48) | $ (53) | $ (45) | $ (37) | $ (271) | $ (183) | $ (169) |
Net impact of interest rate derivative instruments, net of tax | 9 | 19 | 34 | ||||||||
Comprehensive income (loss) | (262) | (164) | (135) | ||||||||
Charter [Member] | |||||||||||
Consolidated net income (loss) | (271) | (183) | (183) | ||||||||
Net impact of interest rate derivative instruments, net of tax | 9 | 19 | 34 | ||||||||
Comprehensive income (loss) | (262) | (164) | (149) | ||||||||
Intermediate Holding Companies [Member] | |||||||||||
Consolidated net income (loss) | (167) | (4) | (107) | ||||||||
Net impact of interest rate derivative instruments, net of tax | 9 | 19 | 34 | ||||||||
Comprehensive income (loss) | (158) | 15 | (73) | ||||||||
Safari Escrow Entities [Member] | |||||||||||
Consolidated net income (loss) | (476) | (30) | 0 | ||||||||
Net impact of interest rate derivative instruments, net of tax | 9 | 19 | 0 | ||||||||
Comprehensive income (loss) | (467) | (11) | 0 | ||||||||
CCO Holdings [Member] | |||||||||||
Consolidated net income (loss) | 308 | 18 | (114) | ||||||||
Net impact of interest rate derivative instruments, net of tax | 9 | 19 | 34 | ||||||||
Comprehensive income (loss) | 317 | 37 | (80) | ||||||||
Charter Operating and Restricted Subsidiaries [Member] | |||||||||||
Consolidated net income (loss) | 1,119 | 741 | 678 | ||||||||
Net impact of interest rate derivative instruments, net of tax | 9 | 19 | 34 | ||||||||
Comprehensive income (loss) | 1,128 | 760 | 712 | ||||||||
Unrestricted Subisidiary – CCO Safari [Member] | |||||||||||
Consolidated net income (loss) | (50) | (45) | 0 | ||||||||
Net impact of interest rate derivative instruments, net of tax | 0 | 0 | 0 | ||||||||
Comprehensive income (loss) | (50) | (45) | 0 | ||||||||
Eliminations [Member] | |||||||||||
Consolidated net income (loss) | (734) | (680) | (443) | ||||||||
Net impact of interest rate derivative instruments, net of tax | (36) | (76) | (102) | ||||||||
Comprehensive income (loss) | $ (770) | $ (756) | $ (545) |
Condensed Consolidating State87
Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Consolidated net income (loss) | $ (122) | $ 54 | $ (122) | $ (81) | $ (48) | $ (53) | $ (45) | $ (37) | $ (271) | $ (183) | $ (169) |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||||||||||
Depreciation and amortization | 2,125 | 2,102 | 1,854 | ||||||||
Noncash interest expense | 28 | 37 | 43 | ||||||||
Loss on extinguishment of debt | 128 | 0 | 123 | ||||||||
(Gain) loss on derivative instruments, net | 4 | 7 | (11) | ||||||||
Deferred income taxes | (65) | 233 | 112 | ||||||||
Equity in (income) loss of subisidiaries | 0 | 0 | 0 | ||||||||
Other, net | 89 | 65 | 82 | ||||||||
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: | |||||||||||
Accounts receivable | 5 | (51) | 10 | ||||||||
Prepaid expenses and other assets | (3) | (9) | 0 | ||||||||
Accounts payable, accrued liabilities and other | 319 | 158 | 114 | ||||||||
Receivables from and payables to related party | 0 | 0 | 0 | ||||||||
Net cash flows from operating activities | 2,359 | 2,359 | 2,158 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchases of property, plant and equipment | (1,840) | (2,221) | (1,825) | ||||||||
Change in accrued expenses related to capital expenditures | 28 | 33 | 76 | ||||||||
Sales (purchases) of cable systems, net | 0 | 11 | (676) | ||||||||
Contribution to subsidiary | 0 | 0 | 0 | ||||||||
Distributions from subsidiary | 0 | 0 | 0 | ||||||||
Change in restricted cash and cash equivalents | (15,153) | (7,111) | 0 | ||||||||
Other, net | (67) | (16) | (18) | ||||||||
Net cash flows from investing activities | (17,032) | (9,304) | (2,443) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Borrowings of long-term debt | 26,045 | 8,806 | 6,782 | ||||||||
Repayments of long-term debt | (11,326) | (1,980) | (6,520) | ||||||||
Borrowings (payments) loans payable - related parties | 0 | 0 | 0 | ||||||||
Payments for debt issuance costs | (36) | (6) | (50) | ||||||||
Purchase of treasury stock | (38) | (19) | (15) | ||||||||
Proceeds from exercise of options | 30 | ||||||||||
Proceeds from exercise of options and warrants | 30 | 123 | 104 | ||||||||
Contributions from parent | 0 | 0 | 0 | ||||||||
Distributions to parent | 0 | 0 | 0 | ||||||||
Other, net | 0 | 3 | (2) | ||||||||
Net cash flows from financing activities | 14,675 | 6,927 | 299 | ||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 2 | (18) | 14 | ||||||||
CASH AND CASH EQUIVALENTS, beginning of period | 3 | 21 | 3 | 21 | 7 | ||||||
CASH AND CASH EQUIVALENTS, end of period | 5 | 3 | 5 | 3 | 21 | ||||||
Charter [Member] | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Consolidated net income (loss) | (271) | (183) | (183) | ||||||||
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Noncash interest expense | 0 | 0 | 0 | ||||||||
Loss on extinguishment of debt | 0 | 0 | |||||||||
(Gain) loss on derivative instruments, net | 0 | 0 | 0 | ||||||||
Deferred income taxes | 149 | 223 | 105 | ||||||||
Equity in (income) loss of subisidiaries | 121 | (40) | 75 | ||||||||
Other, net | 0 | 0 | 0 | ||||||||
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: | |||||||||||
Accounts receivable | (4) | 0 | (3) | ||||||||
Prepaid expenses and other assets | 0 | 0 | 0 | ||||||||
Accounts payable, accrued liabilities and other | 0 | 0 | 0 | ||||||||
Receivables from and payables to related party | 4 | 0 | 5 | ||||||||
Net cash flows from operating activities | (1) | 0 | (1) | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchases of property, plant and equipment | 0 | 0 | 0 | ||||||||
Change in accrued expenses related to capital expenditures | 0 | 0 | 0 | ||||||||
Sales (purchases) of cable systems, net | 0 | 0 | |||||||||
Contribution to subsidiary | (20) | (106) | (89) | ||||||||
Distributions from subsidiary | 26 | 5 | 0 | ||||||||
Change in restricted cash and cash equivalents | 0 | 0 | |||||||||
Other, net | 0 | 0 | 0 | ||||||||
Net cash flows from investing activities | 6 | (101) | (89) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Borrowings of long-term debt | 0 | 0 | 0 | ||||||||
Repayments of long-term debt | 0 | 0 | 0 | ||||||||
Borrowings (payments) loans payable - related parties | 0 | 0 | 0 | ||||||||
Payments for debt issuance costs | 0 | 0 | 0 | ||||||||
Purchase of treasury stock | (38) | (19) | (15) | ||||||||
Proceeds from exercise of options | 30 | ||||||||||
Proceeds from exercise of options and warrants | 123 | 104 | |||||||||
Contributions from parent | 0 | 0 | 0 | ||||||||
Distributions to parent | 0 | 0 | 0 | ||||||||
Other, net | 0 | 0 | 0 | ||||||||
Net cash flows from financing activities | (8) | 104 | 89 | ||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (3) | 3 | (1) | ||||||||
CASH AND CASH EQUIVALENTS, beginning of period | 3 | 0 | 3 | 0 | 1 | ||||||
CASH AND CASH EQUIVALENTS, end of period | 0 | 3 | 0 | 3 | 0 | ||||||
Intermediate Holding Companies [Member] | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Consolidated net income (loss) | (167) | (4) | (107) | ||||||||
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Noncash interest expense | 0 | 0 | 0 | ||||||||
Loss on extinguishment of debt | 0 | 0 | |||||||||
(Gain) loss on derivative instruments, net | 0 | 0 | 0 | ||||||||
Deferred income taxes | 0 | 0 | 0 | ||||||||
Equity in (income) loss of subisidiaries | 168 | 12 | 114 | ||||||||
Other, net | 7 | (2) | 0 | ||||||||
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: | |||||||||||
Accounts receivable | (1) | (2) | (1) | ||||||||
Prepaid expenses and other assets | 2 | (1) | 1 | ||||||||
Accounts payable, accrued liabilities and other | 68 | 41 | (3) | ||||||||
Receivables from and payables to related party | (82) | (57) | (1) | ||||||||
Net cash flows from operating activities | (5) | (13) | 3 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchases of property, plant and equipment | 0 | 0 | 0 | ||||||||
Change in accrued expenses related to capital expenditures | 0 | 0 | 0 | ||||||||
Sales (purchases) of cable systems, net | 0 | 0 | |||||||||
Contribution to subsidiary | (90) | (600) | (534) | ||||||||
Distributions from subsidiary | 376 | 30 | 6 | ||||||||
Change in restricted cash and cash equivalents | 0 | 0 | |||||||||
Other, net | (55) | (5) | 1 | ||||||||
Net cash flows from investing activities | 231 | (575) | (527) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Borrowings of long-term debt | 0 | 0 | 0 | ||||||||
Repayments of long-term debt | 0 | 0 | 0 | ||||||||
Borrowings (payments) loans payable - related parties | 0 | 0 | 0 | ||||||||
Payments for debt issuance costs | 0 | 0 | 0 | ||||||||
Purchase of treasury stock | 0 | 0 | 0 | ||||||||
Proceeds from exercise of options | 0 | ||||||||||
Proceeds from exercise of options and warrants | 0 | 0 | |||||||||
Contributions from parent | 95 | 606 | 534 | ||||||||
Distributions to parent | (321) | (30) | (5) | ||||||||
Other, net | 0 | 7 | 0 | ||||||||
Net cash flows from financing activities | (226) | 583 | 529 | ||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 0 | (5) | 5 | ||||||||
CASH AND CASH EQUIVALENTS, beginning of period | 0 | 5 | 0 | 5 | 0 | ||||||
CASH AND CASH EQUIVALENTS, end of period | 0 | 0 | 0 | 0 | 5 | ||||||
Safari Escrow Entities [Member] | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Consolidated net income (loss) | (476) | (30) | 0 | ||||||||
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Noncash interest expense | 0 | 0 | 0 | ||||||||
Loss on extinguishment of debt | 2 | 0 | |||||||||
(Gain) loss on derivative instruments, net | 0 | 0 | 0 | ||||||||
Deferred income taxes | 0 | 0 | 0 | ||||||||
Equity in (income) loss of subisidiaries | 0 | 0 | 0 | ||||||||
Other, net | 0 | 0 | 0 | ||||||||
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: | |||||||||||
Accounts receivable | 0 | 0 | 0 | ||||||||
Prepaid expenses and other assets | 0 | 0 | 0 | ||||||||
Accounts payable, accrued liabilities and other | 265 | 18 | 0 | ||||||||
Receivables from and payables to related party | 17 | 0 | 0 | ||||||||
Net cash flows from operating activities | (192) | (12) | 0 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchases of property, plant and equipment | 0 | 0 | 0 | ||||||||
Change in accrued expenses related to capital expenditures | 0 | 0 | 0 | ||||||||
Sales (purchases) of cable systems, net | 0 | 0 | |||||||||
Contribution to subsidiary | 0 | 0 | 0 | ||||||||
Distributions from subsidiary | 0 | 0 | 0 | ||||||||
Change in restricted cash and cash equivalents | (18,667) | (3,598) | |||||||||
Other, net | 0 | 0 | 0 | ||||||||
Net cash flows from investing activities | (18,667) | (3,598) | 0 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Borrowings of long-term debt | 21,790 | 3,500 | 0 | ||||||||
Repayments of long-term debt | (3,500) | 0 | 0 | ||||||||
Borrowings (payments) loans payable - related parties | 581 | 112 | 0 | ||||||||
Payments for debt issuance costs | (12) | (2) | 0 | ||||||||
Purchase of treasury stock | 0 | 0 | 0 | ||||||||
Proceeds from exercise of options | 0 | ||||||||||
Proceeds from exercise of options and warrants | 0 | 0 | |||||||||
Contributions from parent | 0 | 0 | 0 | ||||||||
Distributions to parent | 0 | 0 | 0 | ||||||||
Other, net | 0 | 0 | 0 | ||||||||
Net cash flows from financing activities | 18,859 | 3,610 | 0 | ||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 0 | 0 | 0 | ||||||||
CASH AND CASH EQUIVALENTS, beginning of period | 0 | 0 | 0 | 0 | 0 | ||||||
CASH AND CASH EQUIVALENTS, end of period | 0 | 0 | 0 | 0 | 0 | ||||||
CCO Holdings [Member] | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Consolidated net income (loss) | 308 | 18 | (114) | ||||||||
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Noncash interest expense | 16 | 25 | 27 | ||||||||
Loss on extinguishment of debt | 123 | 0 | 65 | ||||||||
(Gain) loss on derivative instruments, net | 0 | 0 | 0 | ||||||||
Deferred income taxes | 0 | 0 | 0 | ||||||||
Equity in (income) loss of subisidiaries | (1,073) | (697) | (632) | ||||||||
Other, net | 0 | 0 | 0 | ||||||||
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: | |||||||||||
Accounts receivable | 0 | 0 | 0 | ||||||||
Prepaid expenses and other assets | 0 | 0 | 0 | ||||||||
Accounts payable, accrued liabilities and other | (23) | 0 | 41 | ||||||||
Receivables from and payables to related party | (14) | (11) | (10) | ||||||||
Net cash flows from operating activities | (663) | (665) | (623) | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchases of property, plant and equipment | 0 | 0 | 0 | ||||||||
Change in accrued expenses related to capital expenditures | 0 | 0 | 0 | ||||||||
Sales (purchases) of cable systems, net | 0 | 0 | |||||||||
Contribution to subsidiary | (46) | (100) | (1,022) | ||||||||
Distributions from subsidiary | 715 | 1,132 | 630 | ||||||||
Change in restricted cash and cash equivalents | 0 | 0 | |||||||||
Other, net | 0 | 0 | 0 | ||||||||
Net cash flows from investing activities | 669 | 1,032 | (392) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Borrowings of long-term debt | 2,700 | 0 | 2,000 | ||||||||
Repayments of long-term debt | (2,598) | (350) | (955) | ||||||||
Borrowings (payments) loans payable - related parties | (18) | (112) | (93) | ||||||||
Payments for debt issuance costs | (24) | 0 | (25) | ||||||||
Purchase of treasury stock | 0 | 0 | 0 | ||||||||
Proceeds from exercise of options | 0 | ||||||||||
Proceeds from exercise of options and warrants | 0 | 0 | |||||||||
Contributions from parent | 15 | 100 | 89 | ||||||||
Distributions to parent | (81) | (5) | (1) | ||||||||
Other, net | 0 | 0 | 0 | ||||||||
Net cash flows from financing activities | (6) | (367) | 1,015 | ||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 0 | 0 | 0 | ||||||||
CASH AND CASH EQUIVALENTS, beginning of period | 0 | 0 | 0 | 0 | 0 | ||||||
CASH AND CASH EQUIVALENTS, end of period | 0 | 0 | 0 | 0 | 0 | ||||||
Charter Operating and Restricted Subsidiaries [Member] | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Consolidated net income (loss) | 1,119 | 741 | 678 | ||||||||
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||||||||||
Depreciation and amortization | 2,125 | 2,102 | 1,854 | ||||||||
Noncash interest expense | 12 | 12 | 16 | ||||||||
Loss on extinguishment of debt | 0 | 58 | |||||||||
(Gain) loss on derivative instruments, net | 4 | 7 | (11) | ||||||||
Deferred income taxes | (214) | 10 | 7 | ||||||||
Equity in (income) loss of subisidiaries | 50 | 45 | 0 | ||||||||
Other, net | 82 | 67 | 82 | ||||||||
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: | |||||||||||
Accounts receivable | 10 | (49) | 14 | ||||||||
Prepaid expenses and other assets | (5) | (8) | (1) | ||||||||
Accounts payable, accrued liabilities and other | 17 | 91 | 76 | ||||||||
Receivables from and payables to related party | 75 | 68 | 6 | ||||||||
Net cash flows from operating activities | 3,275 | 3,086 | 2,779 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchases of property, plant and equipment | (1,840) | (2,221) | (1,825) | ||||||||
Change in accrued expenses related to capital expenditures | 28 | 33 | 76 | ||||||||
Sales (purchases) of cable systems, net | 11 | (676) | |||||||||
Contribution to subsidiary | (24) | (71) | 0 | ||||||||
Distributions from subsidiary | 0 | 0 | 0 | ||||||||
Change in restricted cash and cash equivalents | 0 | 0 | |||||||||
Other, net | (12) | (11) | (19) | ||||||||
Net cash flows from investing activities | (1,848) | (2,259) | (2,444) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Borrowings of long-term debt | 1,555 | 1,823 | 4,782 | ||||||||
Repayments of long-term debt | (1,745) | (1,630) | (5,565) | ||||||||
Borrowings (payments) loans payable - related parties | (563) | 0 | 93 | ||||||||
Payments for debt issuance costs | 0 | 0 | (25) | ||||||||
Purchase of treasury stock | 0 | 0 | 0 | ||||||||
Proceeds from exercise of options | 0 | ||||||||||
Proceeds from exercise of options and warrants | 0 | 0 | |||||||||
Contributions from parent | 46 | 100 | 1,022 | ||||||||
Distributions to parent | (715) | (1,132) | (630) | ||||||||
Other, net | 0 | (4) | (2) | ||||||||
Net cash flows from financing activities | (1,422) | (843) | (325) | ||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 5 | (16) | 10 | ||||||||
CASH AND CASH EQUIVALENTS, beginning of period | 0 | 16 | 0 | 16 | 6 | ||||||
CASH AND CASH EQUIVALENTS, end of period | 5 | 0 | 5 | 0 | 16 | ||||||
Unrestricted Subisidiary – CCO Safari [Member] | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Consolidated net income (loss) | (50) | (45) | 0 | ||||||||
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Noncash interest expense | 0 | 0 | 0 | ||||||||
Loss on extinguishment of debt | 3 | 0 | |||||||||
(Gain) loss on derivative instruments, net | 0 | 0 | 0 | ||||||||
Deferred income taxes | 0 | 0 | 0 | ||||||||
Equity in (income) loss of subisidiaries | 0 | 0 | 0 | ||||||||
Other, net | 0 | 0 | 0 | ||||||||
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: | |||||||||||
Accounts receivable | 0 | 0 | 0 | ||||||||
Prepaid expenses and other assets | 0 | 0 | 0 | ||||||||
Accounts payable, accrued liabilities and other | (8) | 8 | 0 | ||||||||
Receivables from and payables to related party | 0 | 0 | 0 | ||||||||
Net cash flows from operating activities | (55) | (37) | 0 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchases of property, plant and equipment | 0 | 0 | 0 | ||||||||
Change in accrued expenses related to capital expenditures | 0 | 0 | 0 | ||||||||
Sales (purchases) of cable systems, net | 0 | 0 | |||||||||
Contribution to subsidiary | 0 | 0 | 0 | ||||||||
Distributions from subsidiary | 0 | 0 | 0 | ||||||||
Change in restricted cash and cash equivalents | 3,514 | (3,513) | |||||||||
Other, net | 0 | 0 | 0 | ||||||||
Net cash flows from investing activities | 3,514 | (3,513) | 0 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Borrowings of long-term debt | 0 | 3,483 | 0 | ||||||||
Repayments of long-term debt | (3,483) | 0 | 0 | ||||||||
Borrowings (payments) loans payable - related parties | 0 | 0 | 0 | ||||||||
Payments for debt issuance costs | 0 | (4) | 0 | ||||||||
Purchase of treasury stock | 0 | 0 | 0 | ||||||||
Proceeds from exercise of options | 0 | ||||||||||
Proceeds from exercise of options and warrants | 0 | 0 | |||||||||
Contributions from parent | 24 | 71 | 0 | ||||||||
Distributions to parent | 0 | 0 | 0 | ||||||||
Other, net | 0 | 0 | 0 | ||||||||
Net cash flows from financing activities | (3,459) | 3,550 | 0 | ||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 0 | 0 | 0 | ||||||||
CASH AND CASH EQUIVALENTS, beginning of period | 0 | 0 | 0 | 0 | 0 | ||||||
CASH AND CASH EQUIVALENTS, end of period | 0 | 0 | 0 | 0 | 0 | ||||||
Eliminations [Member] | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Consolidated net income (loss) | (734) | (680) | (443) | ||||||||
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Noncash interest expense | 0 | 0 | 0 | ||||||||
Loss on extinguishment of debt | 0 | 0 | |||||||||
(Gain) loss on derivative instruments, net | 0 | 0 | 0 | ||||||||
Deferred income taxes | 0 | 0 | 0 | ||||||||
Equity in (income) loss of subisidiaries | 734 | 680 | 443 | ||||||||
Other, net | 0 | 0 | 0 | ||||||||
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: | |||||||||||
Accounts receivable | 0 | 0 | 0 | ||||||||
Prepaid expenses and other assets | 0 | 0 | 0 | ||||||||
Accounts payable, accrued liabilities and other | 0 | 0 | 0 | ||||||||
Receivables from and payables to related party | 0 | 0 | 0 | ||||||||
Net cash flows from operating activities | 0 | 0 | 0 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchases of property, plant and equipment | 0 | 0 | 0 | ||||||||
Change in accrued expenses related to capital expenditures | 0 | 0 | 0 | ||||||||
Sales (purchases) of cable systems, net | 0 | 0 | |||||||||
Contribution to subsidiary | 180 | 877 | 1,645 | ||||||||
Distributions from subsidiary | (1,117) | (1,167) | (636) | ||||||||
Change in restricted cash and cash equivalents | 0 | 0 | |||||||||
Other, net | 0 | 0 | 0 | ||||||||
Net cash flows from investing activities | (937) | (290) | 1,009 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Borrowings of long-term debt | 0 | 0 | 0 | ||||||||
Repayments of long-term debt | 0 | 0 | 0 | ||||||||
Borrowings (payments) loans payable - related parties | 0 | 0 | 0 | ||||||||
Payments for debt issuance costs | 0 | 0 | 0 | ||||||||
Purchase of treasury stock | 0 | 0 | 0 | ||||||||
Proceeds from exercise of options | 0 | ||||||||||
Proceeds from exercise of options and warrants | 0 | 0 | |||||||||
Contributions from parent | (180) | (877) | (1,645) | ||||||||
Distributions to parent | 1,117 | 1,167 | 636 | ||||||||
Other, net | 0 | 0 | 0 | ||||||||
Net cash flows from financing activities | 937 | 290 | (1,009) | ||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 0 | 0 | 0 | ||||||||
CASH AND CASH EQUIVALENTS, beginning of period | $ 0 | $ 0 | 0 | 0 | 0 | ||||||
CASH AND CASH EQUIVALENTS, end of period | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Feb. 01, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Subsequent Event [Line Items] | |||
Principal Amount | $ 35,902,000,000 | $ 21,092,000,000 | |
CCO Holdings [Member] | Senior notes 5.875% due April 1, 2024 [Member] | February 2016 Financing [Member] | |||
Subsequent Event [Line Items] | |||
Principal Amount | $ 1,700,000,000 | ||
Stated interest rate (percentage) | 5.875% | ||
CCO Holdings [Member] | 7.000% senior notes due January 15, 2019 [Member] | |||
Subsequent Event [Line Items] | |||
Principal Amount | $ 600,000,000 | 1,400,000,000 | |
Stated interest rate (percentage) | 7.00% | ||
CCO Holdings [Member] | 7.000% senior notes due January 15, 2019 [Member] | February 2016 Financing [Member] | |||
Subsequent Event [Line Items] | |||
Stated interest rate (percentage) | 7.00% | ||
CCO Holdings [Member] | 7.375% senior notes due June 1, 2020 [Member] | |||
Subsequent Event [Line Items] | |||
Principal Amount | $ 750,000,000 | $ 750,000,000 | |
Stated interest rate (percentage) | 7.375% | ||
CCO Holdings [Member] | 7.375% senior notes due June 1, 2020 [Member] | February 2016 Financing [Member] | |||
Subsequent Event [Line Items] | |||
Stated interest rate (percentage) | 7.375% | ||
TWC Transaction [Member] | |||
Subsequent Event [Line Items] | |||
Cash portion of purchase price for TWC Transaction - Option B (dollars per share) | $ 115 | ||
Cash portion of purchase price for TWC Transaction - Option A (dollars per share) | $ 100 | ||
TWC Transaction [Member] | February 2016 Financing [Member] | |||
Subsequent Event [Line Items] | |||
Cash portion of purchase price for TWC Transaction - Option B (dollars per share) | $ 115 | ||
Cash portion of purchase price for TWC Transaction - Option A (dollars per share) | $ 100 |