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 six months ended June 30, 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 June 30, 2017 and December 31, 2016 and for the six months ended June 30, 2017 and 2016 follow. Charter Communications, Inc. and Subsidiaries Condensed Consolidating Balance Sheets As of June 30, 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 $ 23 $ 150 $ — $ 521 $ — $ 694 Accounts receivable, net 46 27 — 1,416 — 1,489 Receivables from related party — 585 51 — (636 ) — Prepaid expenses and other current assets — 62 — 319 — 381 Total current assets 69 824 51 2,256 (636 ) 2,564 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 237 — 32,711 — 32,948 Customer relationships, net — — — 13,231 — 13,231 Franchises — — — 67,316 — 67,316 Goodwill — — — 29,554 — 29,554 Total investment in cable properties, net — 237 — 142,812 — 143,049 INVESTMENT IN SUBSIDIARIES 63,084 71,843 87,289 — (222,216 ) — LOANS RECEIVABLE – RELATED PARTY 178 655 511 — (1,344 ) — OTHER NONCURRENT ASSETS — 215 — 1,132 — 1,347 Total assets $ 63,331 $ 73,774 $ 87,851 $ 146,200 $ (224,196 ) $ 146,960 LIABILITIES AND SHAREHOLDERS’/MEMBER’S EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 14 $ 782 $ 267 $ 7,060 $ — $ 8,123 Payables to related party 19 — — 617 (636 ) — Total current liabilities 33 782 267 7,677 (636 ) 8,123 LONG-TERM DEBT — — 15,741 47,507 — 63,248 LOANS PAYABLE – RELATED PARTY — — — 1,344 (1,344 ) — DEFERRED INCOME TAXES 26,513 22 — 39 — 26,574 OTHER LONG-TERM LIABILITIES 157 105 — 2,320 — 2,582 SHAREHOLDERS’/MEMBER’S EQUITY Controlling interest 36,628 63,084 71,843 87,289 (222,216 ) 36,628 Noncontrolling interests — 9,781 — 24 — 9,805 Total shareholders’/member’s equity 36,628 72,865 71,843 87,313 (222,216 ) 46,433 Total liabilities and shareholders’/member’s equity $ 63,331 $ 73,774 $ 87,851 $ 146,200 $ (224,196 ) $ 146,960 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 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. and Subsidiaries Condensed Consolidating Statements of Operations For the six months ended June 30, 2017 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated REVENUES $ 61 $ 619 $ — $ 20,521 $ (680 ) $ 20,521 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 61 607 — 13,166 (680 ) 13,154 Depreciation and amortization — 5 — 5,140 — 5,145 Other operating expenses, net — — — 229 — 229 61 612 — 18,535 (680 ) 18,528 Income from operations — 7 — 1,986 — 1,993 OTHER INCOME (EXPENSES): Interest income (expense), net 2 9 (404 ) (1,069 ) — (1,462 ) Loss on extinguishment of debt — — (33 ) (2 ) — (35 ) Loss on financial instruments, net — — — (32 ) — (32 ) Other pension benefits — — — 26 — 26 Other expense, net — (11 ) — — — (11 ) Equity in income of subsidiaries 327 442 879 — (1,648 ) — 329 440 442 (1,077 ) (1,648 ) (1,514 ) Income before income taxes 329 447 442 909 (1,648 ) 479 INCOME TAX EXPENSE (35 ) (9 ) — (29 ) — (73 ) Consolidated net income 294 438 442 880 (1,648 ) 406 Less: Net income attributable to noncontrolling interests — (111 ) — (1 ) — (112 ) Net income $ 294 $ 327 $ 442 $ 879 $ (1,648 ) $ 294 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Operations For the six months ended June 30, 2016 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated REVENUES $ 162 $ 391 $ — $ — $ 8,691 $ (553 ) $ 8,691 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 162 383 — — 5,683 (553 ) 5,675 Depreciation and amortization — 1 — — 1,974 — 1,975 Other operating expenses, net 262 — — — 307 — 569 424 384 — — 7,964 (553 ) 8,219 Income (loss) from operations (262 ) 7 — — 727 — 472 OTHER INCOME (EXPENSES): Interest income (expense), net — 5 (390 ) (350 ) (312 ) — (1,047 ) Loss on extinguishment of debt — — — (110 ) — — (110 ) Loss on financial instruments, net — — — — (55 ) — (55 ) Other pension benefits — — — — 520 — 520 Other expense, net — (5 ) — — — — (5 ) Equity in income (loss) of subsidiaries (19 ) 23 — 873 — (877 ) — (19 ) 23 (390 ) 413 153 (877 ) (697 ) Income (loss) before income taxes (281 ) 30 (390 ) 413 880 (877 ) (225 ) INCOME TAX BENEFIT (EXPENSE) 3,160 (2 ) — — (7 ) — 3,151 Consolidated net income (loss) 2,879 28 (390 ) 413 873 (877 ) 2,926 Less: Net income attributable to noncontrolling interests — (47 ) — — — — (47 ) Net income (loss) $ 2,879 $ (19 ) $ (390 ) $ 413 $ 873 $ (877 ) $ 2,879 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Comprehensive Income (Loss) For the six months ended June 30, 2017 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated Consolidated net income $ 294 $ 438 $ 442 $ 880 $ (1,648 ) $ 406 Net impact of interest rate derivative instruments 3 3 3 3 (9 ) 3 Consolidated comprehensive income 297 441 445 883 (1,657 ) 409 Less: Comprehensive income attributable to noncontrolling interests — (111 ) — (1 ) — (112 ) Comprehensive income $ 297 $ 330 $ 445 $ 882 $ (1,657 ) $ 297 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Comprehensive Income (Loss) For the six months ended June 30, 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) $ 2,879 $ 28 $ (390 ) $ 413 $ 873 $ (877 ) $ 2,926 Net impact of interest rate derivative instruments 4 4 — 4 4 (12 ) 4 Consolidated comprehensive income (loss) $ 2,883 $ 32 $ (390 ) $ 417 $ 877 $ (889 ) $ 2,930 Less: Comprehensive income attributable to noncontrolling interests — (47 ) — — — — (47 ) Comprehensive income (loss) $ 2,883 $ (15 ) $ (390 ) $ 417 $ 877 $ (889 ) $ 2,883 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Cash Flows For the six months ended June 30, 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 $ 135 $ 25 $ (353 ) $ 5,981 $ — $ 5,788 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — — — (3,703 ) — (3,703 ) Change in accrued expenses related to capital expenditures — — — 197 — 197 Contributions to subsidiaries (87 ) — (693 ) — 780 — Distributions from subsidiaries 4,233 4,622 3,228 — (12,083 ) — Other, net — — — (49 ) — (49 ) Net cash flows from investing activities 4,146 4,622 2,535 (3,555 ) (11,303 ) (3,555 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — 3,246 3,900 — 7,146 Repayments of long-term debt — — (775 ) (4,754 ) — (5,529 ) Borrowings (repayments) loans payable - related parties (178 ) — — 178 — — Payments for debt issuance costs — — (31 ) (11 ) — (42 ) Purchase of treasury stock (4,223 ) — — — — (4,223 ) Proceeds from exercise of stock options 86 — — — — 86 Purchase of noncontrolling interest — (429 ) — — — (429 ) Distributions to noncontrolling interest — (75 ) — — — (75 ) Contributions from parent — 87 — 693 (780 ) — Distributions to parent — (4,233 ) (4,622 ) (3,228 ) 12,083 — Other, net — (1 ) — (7 ) — (8 ) Net cash flows from financing activities (4,315 ) (4,651 ) (2,182 ) (3,229 ) 11,303 (3,074 ) NET DECREASE IN CASH AND CASH EQUIVALENTS (34 ) (4 ) — (803 ) — (841 ) CASH AND CASH EQUIVALENTS, beginning of period 57 154 — 1,324 — 1,535 CASH AND CASH EQUIVALENTS, end of period $ 23 $ 150 $ — $ 521 $ — $ 694 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Cash Flows For the six months ended June 30, 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 $ (258 ) $ (13 ) $ (463 ) $ (321 ) $ 3,069 $ — $ 2,014 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — — — — (1,689 ) — (1,689 ) Change in accrued expenses related to capital expenditures — — — — 138 — 138 Purchases of cable systems, net of cash acquired (26,781 ) (2,021 ) — — (8 ) — (28,810 ) Contribution to subsidiary (949 ) (478 ) — (437 ) — 1,864 — Distributions from subsidiaries 23,069 25,072 — 2,878 — (51,019 ) — Change in restricted cash and cash equivalents — — 22,264 — — — 22,264 Other, net — — — — (6 ) — (6 ) Net cash flows from investing activities (4,661 ) 22,573 22,264 2,441 (1,565 ) (49,155 ) (8,103 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — — 3,201 2,796 — 5,997 Repayments of long-term debt — — — (2,937 ) (1,133 ) — (4,070 ) Borrowings (payments) loans payable - related parties — (300 ) 553 (71 ) (182 ) — — Payments for debt issuance costs — — — (73 ) (210 ) — (283 ) Issuance of equity 5,000 — — — — — 5,000 Purchase of treasury stock (99 ) — — — — — (99 ) Proceeds from exercise of stock options 24 — — — — — 24 Distributions to noncontrolling interest — (18 ) — — — — (18 ) Proceeds from termination of interest rate derivatives — — — — 88 — 88 Contributions from parent — 949 — 478 437 (1,864 ) — Distributions to parent — (23,069 ) (22,353 ) (2,719 ) (2,878 ) 51,019 — Other, net — 2 (1 ) 1 (2 ) — — Net cash flows from financing activities 4,925 (22,436 ) (21,801 ) (2,120 ) (1,084 ) 49,155 6,639 NET INCREASE IN CASH AND CASH EQUIVALENTS 6 124 — — 420 — 550 CASH AND CASH EQUIVALENTS, beginning of period — — — — 5 — 5 CASH AND CASH EQUIVALENTS, end of period $ 6 $ 124 $ — $ — $ 425 $ — $ 555 |