Consolidating Schedules | Consolidating Schedules Each of Charter Operating, TWC, LLC, TWCE, CCO Holdings and certain subsidiaries jointly, severally, fully and unconditionally guarantee the outstanding debt securities of the others (other than the CCO Holdings notes) on an unsecured senior basis and the condensed consolidating financial information has been prepared and presented pursuant to SEC Regulation S-X Rule 3-10, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered. Certain Charter Operating subsidiaries that are regulated telephone entities only become guarantor subsidiaries upon approval by regulators. 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 “Charter Operating and Restricted Subsidiaries” column is presented to comply with the terms of the Credit Agreement. The “Safari Escrow Entities” column included in the condensed consolidating financial statements as of December 31, 2015 and for the years ended December 31, 2015 and 2014 consists of CCOH Safari, CCO Safari II and CCO Safari III. CCOH Safari, CCO Safari II and CCO Safari III issued the CCOH Safari notes, CCO Safari II notes and the CCO Safari III credit facilities, respectively. Upon closing of the TWC Transaction, the CCOH Safari notes became obligations of CCO Holdings and CCO Holdings Capital and the CCO Safari II notes and CCO Safari III credit facilities became obligations of Charter Operating and Charter Communications Operating Capital Corp. CCOH Safari merged into CCO Holdings and CCO Safari II and CCO Safari III merged into Charter Operating. The “Unrestricted Subsidiary” column included in the condensed consolidating financial statements for the years ended December 31, 2016 and 2015 consists of CCO Safari which was a non-recourse subsidiary under the Credit Agreement and held the CCO Safari Term G Loans that were repaid in April 2015. Condensed consolidating financial statements as of December 31, 2016 and 2015 and for the years ended December 31, 2016 , 2015 and 2014 follow. Charter Communications, Inc. Condensed Consolidating Balance Sheet As of December 31, 2016 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated ASSETS CURRENT ASSETS: Cash and cash equivalents $ 57 $ 154 $ — $ 1,324 $ — $ 1,535 Accounts receivable, net 34 11 — 1,387 — 1,432 Receivables from related party 170 451 62 — (683 ) — Prepaid expenses and other current assets — 33 — 300 — 333 Total current assets 261 649 62 3,011 (683 ) 3,300 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 245 — 32,718 — 32,963 Customer relationships, net — — — 14,608 — 14,608 Franchises — — — 67,316 — 67,316 Goodwill — — — 29,509 — 29,509 Total investment in cable properties, net — 245 — 144,151 — 144,396 INVESTMENT IN SUBSIDIARIES 66,692 75,838 88,760 — (231,290 ) — LOANS RECEIVABLE – RELATED PARTY — 640 494 — (1,134 ) — OTHER NONCURRENT ASSETS — 214 — 1,157 — 1,371 Total assets $ 66,953 $ 77,586 $ 89,316 $ 148,319 $ (233,107 ) $ 149,067 LIABILITIES AND SHAREHOLDERS’/MEMBER’S EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 22 $ 625 $ 219 $ 6,678 $ — $ 7,544 Payables to related party — — — 683 (683 ) — Current portion of long-term debt — — — 2,028 — 2,028 Total current liabilities 22 625 219 9,389 (683 ) 9,572 LONG-TERM DEBT — — 13,259 46,460 — 59,719 LOANS PAYABLE – RELATED PARTY — — — 1,134 (1,134 ) — DEFERRED INCOME TAXES 26,637 3 — 25 — 26,665 OTHER LONG-TERM LIABILITIES 155 64 — 2,526 — 2,745 SHAREHOLDERS’/MEMBER’S EQUITY Controlling interest 40,139 66,692 75,838 88,760 (231,290 ) 40,139 Noncontrolling interests — 10,202 — 25 — 10,227 Total shareholders’/member’s equity 40,139 76,894 75,838 88,785 (231,290 ) 50,366 Total liabilities and shareholders’/member’s equity $ 66,953 $ 77,586 $ 89,316 $ 148,319 $ (233,107 ) $ 149,067 Charter Communications, Inc. Condensed Consolidating Balance Sheet As of December 31, 2015 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries 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 Customer relationships, net — — — — 856 — 856 Franchises — — — — 6,006 — 6,006 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. Condensed Consolidating Statement of Operations For the year ended December 31, 2016 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated REVENUES $ 251 $ 1,004 $ — $ — $ 29,003 $ (1,255 ) $ 29,003 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 251 989 — — 18,670 (1,255 ) 18,655 Depreciation and amortization — 5 — — 6,902 — 6,907 Other operating (income) expenses, net 262 1 — — (177 ) — 86 513 995 — — 25,395 (1,255 ) 25,648 Income (loss) from operations (262 ) 9 — — 3,608 — 3,355 OTHER INCOME (EXPENSES): Interest income (expense), net — 14 (390 ) (727 ) (1,396 ) — (2,499 ) Loss on extinguishment of debt — — — (110 ) (1 ) — (111 ) Gain on financial instruments, net — — — — 89 — 89 Other expense, net — (11 ) — — (3 ) — (14 ) Equity in income of subsidiaries 851 1,066 — 2,293 — (4,210 ) — 851 1,069 (390 ) 1,456 (1,311 ) (4,210 ) (2,535 ) Income (loss) before income taxes 589 1,078 (390 ) 1,456 2,297 (4,210 ) 820 INCOME TAX BENEFIT (EXPENSE) 2,933 (5 ) — — (3 ) — 2,925 Consolidated net income (loss) 3,522 1,073 (390 ) 1,456 2,294 (4,210 ) 3,745 Less: Net income – noncontrolling interests — (222 ) — — (1 ) — (223 ) Net income (loss) $ 3,522 $ 851 $ (390 ) $ 1,456 $ 2,293 $ (4,210 ) $ 3,522 Charter Communications, Inc. Condensed Consolidating Statement of Operations For the year ended December 31, 2015 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary 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 (EXPENSES): Interest income (expense), net — 8 (474 ) (642 ) (151 ) (47 ) — (1,306 ) Loss on extinguishment of debt — — (2 ) (123 ) — (3 ) — (128 ) Loss on financial 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 – noncontrolling interest — 46 — — (46 ) — — — Net income (loss) $ (271 ) $ (121 ) $ (476 ) $ 308 $ 1,073 $ (50 ) $ (734 ) $ (271 ) Charter Communications, Inc. Condensed Consolidating Statement of Operations For the year ended December 31, 2014 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary 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 income (expense), net — 8 (30 ) (679 ) (165 ) (45 ) — (911 ) Loss on financial 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 – noncontrolling interest — 44 — — (44 ) — — — Net income (loss) $ (183 ) $ 40 $ (30 ) $ 18 $ 697 $ (45 ) $ (680 ) $ (183 ) Charter Communications, Inc. Condensed Consolidating Statement of Comprehensive Income (Loss) For the year ended December 31, 2016 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated Consolidated net income (loss) $ 3,522 $ 1,073 $ (390 ) $ 1,456 $ 2,294 $ (4,210 ) $ 3,745 Net impact of interest rate derivative instruments 8 8 8 8 8 (32 ) 8 Foreign currency translation adjustment (2 ) (2 ) (2 ) (2 ) (2 ) 8 (2 ) Consolidated comprehensive income (loss) 3,528 1,079 (384 ) 1,462 2,300 (4,234 ) 3,751 Less: Comprehensive income attributable to noncontrolling interests — (222 ) — — (1 ) — (223 ) Comprehensive income (loss) $ 3,528 $ 857 $ (384 ) $ 1,462 $ 2,299 $ (4,234 ) $ 3,528 Charter Communications, Inc. Condensed Consolidating Statement of Comprehensive Income (Loss) For the year ended December 31, 2015 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary Eliminations Charter Consolidated Consolidated net income (loss) $ (271 ) $ (167 ) $ (476 ) $ 308 $ 1,119 $ (50 ) $ (734 ) $ (271 ) Net impact of interest rate derivative instruments 9 9 9 9 9 — (36 ) 9 Consolidated comprehensive income (loss) (262 ) (158 ) (467 ) 317 1,128 (50 ) (770 ) (262 ) Less: Comprehensive (income) loss attributable to noncontrolling interests — 46 — — (46 ) — — — Comprehensive income (loss) $ (262 ) $ (112 ) $ (467 ) $ 317 $ 1,082 $ (50 ) $ (770 ) $ (262 ) Charter Communications, Inc. Condensed Consolidating Statement of Comprehensive Income (Loss) For the year ended December 31, 2014 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary Eliminations Charter Consolidated Consolidated net income (loss) $ (183 ) $ (4 ) $ (30 ) $ 18 $ 741 $ (45 ) $ (680 ) $ (183 ) Net impact of interest rate derivative instruments 19 19 19 19 19 — (76 ) 19 Consolidated comprehensive income (loss) (164 ) 15 (11 ) 37 760 (45 ) (756 ) (164 ) Less: Comprehensive (income) loss attributable to noncontrolling interests — 44 — — (44 ) — — — Comprehensive income (loss) $ (164 ) $ 59 $ (11 ) $ 37 $ 716 $ (45 ) $ (756 ) $ (164 ) Charter Communications, Inc. Condensed Consolidating Statement of Cash Flows For the year ended December 31, 2016 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated NET CASH FLOWS FROM OPERATING ACTIVITIES $ (225 ) $ (36 ) $ (463 ) $ (711 ) $ 9,476 $ — $ 8,041 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — — — — (5,325 ) — (5,325 ) Change in accrued expenses related to capital expenditures — — — — 603 — 603 Purchases of cable systems, net (26,781 ) (2,022 ) — — (7 ) — (28,810 ) Contribution to subsidiaries (1,013 ) (478 ) — (437 ) — 1,928 — Distributions from subsidiaries 24,552 26,899 — 5,096 — (56,547 ) — Change in restricted cash and cash equivalents — — 22,264 — — — 22,264 Other, net — — — — (22 ) — (22 ) Net cash flows from investing activities (3,242 ) 24,399 22,264 4,659 (4,751 ) (54,619 ) (11,290 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — — 3,201 9,143 — 12,344 Repayments of long-term debt — — — (2,937 ) (7,584 ) — (10,521 ) Borrowings (payments) loans payable - related parties — (300 ) 553 (71 ) (182 ) — — Payment for debt issuance costs — — — (73 ) (211 ) — (284 ) Issuance of equity 5,000 — — — — — 5,000 Purchase of treasury stock (1,562 ) — — — — — (1,562 ) Proceeds from exercise of stock options 86 — — — — — 86 Settlement of restricted stock units — (59 ) — — — — (59 ) Purchase of noncontrolling interest — (218 ) — — — — (218 ) Distributions to noncontrolling interest — (96 ) — — — — (96 ) Proceeds from termination of interest rate derivatives — — — — 88 — 88 Contributions from parent — 1,013 — 478 437 (1,928 ) — Distributions to parent — (24,552 ) (22,353 ) (4,546 ) (5,096 ) 56,547 — Other, net — 3 (1 ) — (1 ) — 1 Net cash flows from financing activities 3,524 (24,209 ) (21,801 ) (3,948 ) (3,406 ) 54,619 4,779 NET INCREASE IN CASH AND CASH EQUIVALENTS 57 154 — — 1,319 — 1,530 CASH AND CASH EQUIVALENTS, beginning of period — — — — 5 — 5 CASH AND CASH EQUIVALENTS, end of period $ 57 $ 154 $ — $ — $ 1,324 $ — $ 1,535 Charter Communications, Inc. Condensed Consolidating Statement of Cash Flows For the year ended December 31, 2015 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary Eliminations Charter Consolidated 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 subsidiaries (20 ) (90 ) — (46 ) (24 ) — 180 — Distributions from subsidiaries 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 stock options 30 — — — — — — 30 Contributions from parent — 95 — 15 46 24 (180 ) — Distributions to parent — (321 ) — (81 ) (715 ) — 1,117 — 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. Condensed Consolidating Statement of Cash Flows For the year ended December 31, 2014 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary Eliminations Charter Consolidated 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 subsidiaries (106 ) (600 ) — (100 ) (71 ) — 877 — Distributions from subsidiaries 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 |