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 for the three months ended March 31, 2016 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. Condensed consolidating financial statements as of March 31, 2017 and December 31, 2016 and for the three months ended March 31, 2017 and 2016 follow. Charter Communications, Inc. and Subsidiaries Condensed Consolidating Balance Sheets As of March 31, 2017 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 $ 25 $ 155 $ 872 $ 1,868 $ — $ 2,920 Accounts receivable, net 46 14 — 1,251 — 1,311 Receivables from related party — 602 48 — (650 ) — Prepaid expenses and other current assets — 50 — 385 — 435 Total current assets 71 821 920 3,504 (650 ) 4,666 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 240 — 32,459 — 32,699 Franchises — — — 67,316 — 67,316 Customer relationships, net — — — 13,904 — 13,904 Goodwill — — — 29,526 — 29,526 Total investment in cable properties, net — 240 — 143,205 — 143,445 INVESTMENT IN SUBSIDIARIES 66,165 75,302 88,568 — (230,035 ) — LOANS RECEIVABLE – RELATED PARTY 178 655 511 — (1,344 ) — OTHER NONCURRENT ASSETS — 215 — 1,118 — 1,333 Total assets $ 66,414 $ 77,233 $ 89,999 $ 147,827 $ (232,029 ) $ 149,444 LIABILITIES AND SHAREHOLDERS’/MEMBER’S EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 11 $ 805 $ 205 $ 6,492 $ — $ 7,513 Payables to related party 11 — — 639 (650 ) — Current portion of long-term debt — — — 2,007 — 2,007 Total current liabilities 22 805 205 9,138 (650 ) 9,520 LONG-TERM DEBT — — 14,492 46,345 — 60,837 LOANS PAYABLE – RELATED PARTY — — — 1,344 (1,344 ) — DEFERRED INCOME TAXES 26,516 21 — 39 — 26,576 OTHER LONG-TERM LIABILITIES 156 83 — 2,368 — 2,607 SHAREHOLDERS’/MEMBER’S EQUITY Controlling interest 39,720 66,165 75,302 88,568 (230,035 ) 39,720 Noncontrolling interests — 10,159 — 25 — 10,184 Total shareholders’/member’s equity 39,720 76,324 75,302 88,593 (230,035 ) 49,904 Total liabilities and shareholders’/member’s equity $ 66,414 $ 77,233 $ 89,999 $ 147,827 $ (232,029 ) $ 149,444 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Balance Sheets 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 Franchises — — — 67,316 — 67,316 Customer relationships, net — — — 14,608 — 14,608 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. and Subsidiaries Condensed Consolidating Statements of Operations For the three months ended March 31, 2017 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated REVENUES $ 29 $ 313 $ — $ 10,164 $ (342 ) $ 10,164 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 29 308 — 6,584 (342 ) 6,579 Depreciation and amortization — 2 — 2,548 — 2,550 Other operating expenses, net — — — 94 — 94 29 310 — 9,226 (342 ) 9,223 Income from operations — 3 — 938 — 941 OTHER INCOME (EXPENSES): Interest income (expense), net 1 5 (190 ) (529 ) — (713 ) Loss on extinguishment of debt — — (33 ) (1 ) — (34 ) Gain on financial instruments, net — — — 38 — 38 Other income (expense), net — (9 ) — 13 — 4 Equity in income of subsidiaries 158 217 440 — (815 ) — 159 213 217 (479 ) (815 ) (705 ) Income before income taxes 159 216 217 459 (815 ) 236 INCOME TAX EXPENSE (4 ) (2 ) — (19 ) — (25 ) Consolidated net income 155 214 217 440 (815 ) 211 Less: Net income attributable to noncontrolling interests — (56 ) — — — (56 ) Net income $ 155 $ 158 $ 217 $ 440 $ (815 ) $ 155 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Operations For the three months ended March 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 $ 7 $ 96 $ — $ — $ 2,530 $ (103 ) $ 2,530 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 7 96 — — 1,671 (103 ) 1,671 Depreciation and amortization — — — — 539 — 539 Other operating expenses, net — — — — 18 — 18 7 96 — — 2,228 (103 ) 2,228 Income from operations — — — — 302 — 302 OTHER INCOME (EXPENSES): Interest income (expense), net — 3 (257 ) (165 ) (35 ) — (454 ) Loss on financial instruments, net — — — — (5 ) — (5 ) Other expense, net — (3 ) — — — — (3 ) Equity in income (loss) of subsidiaries (160 ) (160 ) — 262 — 58 — (160 ) (160 ) (257 ) 97 (40 ) 58 (462 ) Income (loss) before income taxes (160 ) (160 ) (257 ) 97 262 58 (160 ) INCOME TAX EXPENSE (28 ) — — — — — (28 ) Net income (loss) $ (188 ) $ (160 ) $ (257 ) $ 97 $ 262 $ 58 $ (188 ) Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Comprehensive Income (Loss) For the three months ended March 31, 2017 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated Consolidated net income $ 155 $ 214 $ 217 $ 440 $ (815 ) $ 211 Net impact of interest rate derivative instruments 1 1 1 1 (3 ) 1 Consolidated comprehensive income 156 215 218 441 (818 ) 212 Less: Comprehensive income attributable to noncontrolling interests — (56 ) — — — (56 ) Comprehensive income $ 156 $ 159 $ 218 $ 441 $ (818 ) $ 156 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Comprehensive Income (Loss) For the three months ended March 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) $ (188 ) $ (160 ) $ (257 ) $ 97 $ 262 $ 58 $ (188 ) Net impact of interest rate derivative instruments 2 2 2 2 2 (8 ) 2 Comprehensive income (loss) $ (186 ) $ (158 ) $ (255 ) $ 99 $ 264 $ 50 $ (186 ) Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Cash Flows For the three months ended March 31, 2017 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated NET CASH FLOWS FROM OPERATING ACTIVITIES $ 146 $ 33 $ (204 ) $ 2,868 $ — $ 2,843 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — — — (1,555 ) — (1,555 ) Change in accrued expenses related to capital expenditures — — — (150 ) — (150 ) Contributions to subsidiaries (72 ) — — — 72 — Distributions from subsidiaries 895 856 737 — (2,488 ) — Other, net — — — (7 ) — (7 ) Net cash flows from investing activities 823 856 737 (1,712 ) (2,416 ) (1,712 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — 1,990 2,650 — 4,640 Repayments of long-term debt — — (775 ) (2,700 ) — (3,475 ) Borrowings (repayments) loans payable - related parties (178 ) — — 178 — — Payments for debt issuance costs — — (20 ) (1 ) — (21 ) Purchase of treasury stock (895 ) — — — — (895 ) Purchase of noncontrolling interest — (27 ) — — — (27 ) Distributions to noncontrolling interest — (38 ) — — — (38 ) Proceeds from exercise of stock options 72 — — — — 72 Contributions from parent — 72 — — (72 ) — Distributions to parent — (895 ) (856 ) (737 ) 2,488 — Other, net — — (2 ) — (2 ) Net cash flows from financing activities (1,001 ) (888 ) 339 (612 ) 2,416 254 NET INCREASE IN CASH AND CASH EQUIVALENTS (32 ) 1 872 544 — 1,385 CASH AND CASH EQUIVALENTS, beginning of period 57 154 — 1,324 — 1,535 CASH AND CASH EQUIVALENTS, end of period $ 25 $ 155 $ 872 $ 1,868 $ — $ 2,920 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Cash Flows For the three months ended March 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 $ 1 $ 1 $ (259 ) $ (158 ) $ 839 $ — $ 424 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — — — — (429 ) — (429 ) Change in accrued expenses related to capital expenditures — — — — (56 ) — (56 ) Distributions from subsidiaries 14 84 — 246 — (344 ) — Change in restricted cash and cash equivalents — — (49 ) — — — (49 ) Other, net — — — — (2 ) — (2 ) Net cash flows from investing activities 14 84 (49 ) 246 (487 ) (344 ) (536 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — — 1,700 439 — 2,139 Repayments of long-term debt — — — — (727 ) — (727 ) Borrowings (payments) loans payable - related parties — — 308 (546 ) 238 — — Payments for debt issuance costs — — — (17 ) — — (17 ) Purchase of treasury stock (16 ) — — — — — (16 ) Proceeds from exercise of stock options 5 — — — — — 5 Distributions to parent — (84 ) — (14 ) (246 ) 344 — Other, net — 1 — — — — 1 Net cash flows from financing activities (11 ) (83 ) 308 1,123 (296 ) 344 1,385 NET INCREASE IN CASH AND CASH EQUIVALENTS 4 2 — 1,211 56 — 1,273 CASH AND CASH EQUIVALENTS, beginning of period — — — — 5 — 5 CASH AND CASH EQUIVALENTS, end of period $ 4 $ 2 $ — $ 1,211 $ 61 $ — $ 1,278 |