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 nine months ended September 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 September 30, 2017 and December 31, 2016 and for the nine months ended September 30, 2017 and 2016 follow. Charter Communications, Inc. and Subsidiaries Condensed Consolidating Balance Sheets As of September 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 $ — $ 190 $ — $ 1,974 $ — $ 2,164 Accounts receivable, net 46 33 — 1,573 — 1,652 Receivables from related party 20 616 51 — (687 ) — Prepaid expenses and other current assets — 41 — 275 — 316 Total current assets 66 880 51 3,822 (687 ) 4,132 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 234 — 33,066 — 33,300 Customer relationships, net — — — 12,589 — 12,589 Franchises — — — 67,316 — 67,316 Goodwill — — — 29,554 — 29,554 Total investment in cable properties, net — 234 — 142,525 — 142,759 INVESTMENT IN SUBSIDIARIES 59,684 68,003 85,011 — (212,698 ) — LOANS RECEIVABLE – RELATED PARTY 163 655 511 — (1,329 ) — OTHER NONCURRENT ASSETS — 222 — 1,115 — 1,337 Total assets $ 59,913 $ 69,994 $ 85,573 $ 147,462 $ (214,714 ) $ 148,228 LIABILITIES AND SHAREHOLDERS’/MEMBER’S EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 13 $ 835 $ 339 $ 7,164 $ — $ 8,351 Payables to related party — — — 687 (687 ) — Current portion of long-term debt — — — 2,068 — 2,068 Total current liabilities 13 835 339 9,919 (687 ) 10,419 LONG-TERM DEBT — — 17,231 48,833 — 66,064 LOANS PAYABLE – RELATED PARTY — — — 1,329 (1,329 ) — DEFERRED INCOME TAXES 26,514 23 — 39 — 26,576 OTHER LONG-TERM LIABILITIES 157 127 — 2,307 — 2,591 SHAREHOLDERS’/MEMBER’S EQUITY Controlling interest 33,229 59,684 68,003 85,011 (212,698 ) 33,229 Noncontrolling interests — 9,325 — 24 — 9,349 Total shareholders’/member’s equity 33,229 69,009 68,003 85,035 (212,698 ) 42,578 Total liabilities and shareholders’/member’s equity $ 59,913 $ 69,994 $ 85,573 $ 147,462 $ (214,714 ) $ 148,228 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 nine months ended September 30, 2017 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated REVENUES $ 79 $ 897 $ — $ 30,979 $ (976 ) $ 30,979 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 79 883 — 19,871 (976 ) 19,857 Depreciation and amortization — 7 — 7,839 — 7,846 Other operating expenses, net — — — 374 — 374 79 890 — 28,084 (976 ) 28,077 Income from operations — 7 — 2,895 — 2,902 OTHER INCOME (EXPENSES): Interest income (expense), net 4 14 (631 ) (1,637 ) — (2,250 ) Loss on extinguishment of debt — — (33 ) (2 ) — (35 ) Loss on financial instruments, net — — — (15 ) — (15 ) Other pension benefits — — — 9 — 9 Other expense, net — (12 ) — (2 ) — (14 ) Equity in income of subsidiaries 390 548 1,212 — (2,150 ) — 394 550 548 (1,647 ) (2,150 ) (2,305 ) Income before income taxes 394 557 548 1,248 (2,150 ) 597 INCOME TAX EXPENSE (52 ) (12 ) — (35 ) — (99 ) Consolidated net income 342 545 548 1,213 (2,150 ) 498 Less: Net income attributable to noncontrolling interests — (155 ) — (1 ) — (156 ) Net income $ 342 $ 390 $ 548 $ 1,212 $ (2,150 ) $ 342 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Operations For the nine months ended September 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 $ 231 $ 797 $ — $ — $ 18,728 $ (1,028 ) $ 18,728 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 231 781 — — 12,173 (1,028 ) 12,157 Depreciation and amortization — 3 — — 4,409 — 4,412 Other operating expenses, net 262 1 — — 513 — 776 493 785 — — 17,095 (1,028 ) 17,345 Income (loss) from operations (262 ) 12 — — 1,633 — 1,383 OTHER INCOME (EXPENSES): Interest income (expense), net — 10 (390 ) (539 ) (852 ) — (1,771 ) Loss on extinguishment of debt — — — (110 ) — — (110 ) Gain on financial instruments, net — — — — 16 — 16 Other pension benefits — — — — 533 — 533 Other expense, net — (8 ) — — (2 ) — (10 ) Equity in income (loss) of subsidiaries 188 288 — 1,327 — (1,803 ) — 188 290 (390 ) 678 (305 ) (1,803 ) (1,342 ) Income (loss) before income taxes (74 ) 302 (390 ) 678 1,328 (1,803 ) 41 INCOME TAX BENEFIT (EXPENSE) 3,142 (7 ) — — — — 3,135 Consolidated net income (loss) 3,068 295 (390 ) 678 1,328 (1,803 ) 3,176 Less: Net income attributable to noncontrolling interests — (107 ) — — (1 ) — (108 ) Net income (loss) $ 3,068 $ 188 $ (390 ) $ 678 $ 1,327 $ (1,803 ) $ 3,068 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Comprehensive Income (Loss) For the nine months ended September 30, 2017 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated Consolidated net income $ 342 $ 545 $ 548 $ 1,213 $ (2,150 ) $ 498 Net impact of interest rate derivative instruments 4 4 4 4 (12 ) 4 Foreign currency translation adjustment 1 1 1 1 (3 ) 1 Consolidated comprehensive income 347 550 553 1,218 (2,165 ) 503 Less: Comprehensive income attributable to noncontrolling interests — (155 ) — (1 ) — (156 ) Comprehensive income $ 347 $ 395 $ 553 $ 1,217 $ (2,165 ) $ 347 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Comprehensive Income (Loss) For the nine months ended September 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) $ 3,068 $ 295 $ (390 ) $ 678 $ 1,328 $ (1,803 ) $ 3,176 Net impact of interest rate derivative instruments 6 6 — 6 6 (18 ) 6 Foreign currency translation adjustment (1 ) (1 ) — (1 ) (1 ) 3 (1 ) Consolidated comprehensive income (loss) $ 3,073 $ 300 $ (390 ) $ 683 $ 1,333 $ (1,818 ) $ 3,181 Less: Comprehensive income attributable to noncontrolling interests — (107 ) — — (1 ) — (108 ) Comprehensive income (loss) $ 3,073 $ 193 $ (390 ) $ 683 $ 1,332 $ (1,818 ) $ 3,073 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Cash Flows For the nine months ended September 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 $ 95 $ 80 $ (504 ) $ 9,025 $ — $ 8,696 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — — — (6,096 ) — (6,096 ) Change in accrued expenses related to capital expenditures — — — 276 — 276 Contributions to subsidiaries (111 ) — (693 ) — 804 — Distributions from subsidiaries 7,759 8,641 5,912 — (22,312 ) — Other, net — — — (63 ) — (63 ) Net cash flows from investing activities 7,648 8,641 5,219 (5,883 ) (21,508 ) (5,883 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — 4,747 7,368 — 12,115 Repayments of long-term debt — — (775 ) (4,759 ) — (5,534 ) Borrowings (repayments) loans payable - related parties (163 ) — — 163 — — Payments for debt issuance costs — — (46 ) (37 ) — (83 ) Purchase of treasury stock (7,748 ) — — — — (7,748 ) Proceeds from exercise of stock options 111 — — — — 111 Purchase of noncontrolling interest — (922 ) — — — (922 ) Distributions to noncontrolling interest — (115 ) — — — (115 ) Contributions from parent — 111 — 693 (804 ) — Distributions to parent — (7,759 ) (8,641 ) (5,912 ) 22,312 — Other, net — — — (8 ) — (8 ) Net cash flows from financing activities (7,800 ) (8,685 ) (4,715 ) (2,492 ) 21,508 (2,184 ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (57 ) 36 — 650 — 629 CASH AND CASH EQUIVALENTS, beginning of period 57 154 — 1,324 — 1,535 CASH AND CASH EQUIVALENTS, end of period $ — $ 190 $ — $ 1,974 $ — $ 2,164 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Cash Flows For the nine months ended September 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 $ (233 ) $ (27 ) $ (463 ) $ (533 ) $ 6,071 $ — $ 4,815 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — — — — (3,437 ) — (3,437 ) Change in accrued expenses related to capital expenditures — — — — 86 — 86 Purchases of cable systems, net of cash acquired (26,781 ) (2,022 ) — — (7 ) — (28,810 ) Contribution to subsidiary (996 ) (478 ) — (437 ) — 1,911 — Distributions from subsidiaries 23,417 25,437 — 3,455 — (52,309 ) — Change in restricted cash and cash equivalents — — 22,264 — — — 22,264 Other, net — — — — (8 ) — (8 ) Net cash flows from investing activities (4,360 ) 22,937 22,264 3,018 (3,366 ) (50,398 ) (9,905 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — — 3,201 2,796 — 5,997 Repayments of long-term debt — — — (2,937 ) (1,183 ) — (4,120 ) 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 (448 ) — — — — — (448 ) Proceeds from exercise of stock options 71 — — — — — 71 Distributions to noncontrolling interest — (55 ) — — — — (55 ) Proceeds from termination of interest rate derivatives — — — — 88 — 88 Contributions from parent — 996 — 478 437 (1,911 ) — Distributions to parent — (23,417 ) (22,353 ) (3,084 ) (3,455 ) 52,309 — Other, net — 5 (1 ) 1 (5 ) — — Net cash flows from financing activities 4,623 (22,771 ) (21,801 ) (2,485 ) (1,714 ) 50,398 6,250 NET INCREASE IN CASH AND CASH EQUIVALENTS 30 139 — — 991 — 1,160 CASH AND CASH EQUIVALENTS, beginning of period — — — — 5 — 5 CASH AND CASH EQUIVALENTS, end of period $ 30 $ 139 $ — $ — $ 996 $ — $ 1,165 |