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 "Intermediate Holding Companies" column includes the assets and liabilities of the captive insurance company, a company wholly-owned by Charter outside of Charter Holdings and which does not, directly or indirectly, own any interest in Charter Holdings. The “Charter Operating and Restricted Subsidiaries” column is presented to comply with the terms of the Credit Agreement. Condensed consolidating financial statements as of September 30, 2018 and December 31, 2017 and for the nine months ended September 30, 2018 and 2017 follow. Charter Communications, Inc. and Subsidiaries Condensed Consolidating Balance Sheets As of September 30, 2018 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 $ — $ 261 $ — $ 351 $ — $ 612 Accounts receivable, net — 29 — 1,707 — 1,736 Receivables from related party 25 498 53 — (576 ) — Prepaid expenses and other current assets 7 39 — 335 — 381 Total current assets 32 827 53 2,393 (576 ) 2,729 RESTRICTED CASH — 48 — — — 48 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 447 — 34,293 — 34,740 Customer relationships, net — — — 10,136 — 10,136 Franchises — — — 67,319 — 67,319 Goodwill — — — 29,554 — 29,554 Total investment in cable properties, net — 447 — 141,302 — 141,749 INVESTMENT IN SUBSIDIARIES 54,440 61,513 79,969 — (195,922 ) — LOANS RECEIVABLE – RELATED PARTY 246 674 526 — (1,446 ) — OTHER NONCURRENT ASSETS — 215 — 1,347 (3 ) 1,559 Total assets $ 54,718 $ 63,724 $ 80,548 $ 145,042 $ (197,947 ) $ 146,085 LIABILITIES AND SHAREHOLDERS’/MEMBER’S EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 4 $ 861 $ 311 $ 7,335 $ — $ 8,511 Payables to related party — — — 576 (576 ) — Current portion of long-term debt — — — 3,339 — 3,339 Total current liabilities 4 861 311 11,250 (576 ) 11,850 LONG-TERM DEBT — — 18,724 50,411 — 69,135 LOANS PAYABLE – RELATED PARTY — — — 1,446 (1,446 ) — DEFERRED INCOME TAXES 17,408 16 — — (3 ) 17,421 OTHER LONG-TERM LIABILITIES 201 308 — 1,942 — 2,451 SHAREHOLDERS’/MEMBER’S EQUITY Controlling interest 37,105 54,440 61,513 79,969 (195,922 ) 37,105 Noncontrolling interests — 8,099 — 24 — 8,123 Total shareholders’/member’s equity 37,105 62,539 61,513 79,993 (195,922 ) 45,228 Total liabilities and shareholders’/member’s equity $ 54,718 $ 63,724 $ 80,548 $ 145,042 $ (197,947 ) $ 146,085 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Balance Sheets As of December 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 $ — $ 291 $ — $ 330 $ — $ 621 Accounts receivable, net — 24 — 1,611 — 1,635 Receivables from related party 22 613 55 — (690 ) — Prepaid expenses and other current assets 22 34 — 243 — 299 Total current assets 44 962 55 2,184 (690 ) 2,555 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 336 — 33,552 — 33,888 Customer relationships, net — — — 11,951 — 11,951 Franchises — — — 67,319 — 67,319 Goodwill — — — 29,554 — 29,554 Total investment in cable properties, net — 336 — 142,376 — 142,712 INVESTMENT IN SUBSIDIARIES 56,263 63,558 81,980 — (201,801 ) — LOANS RECEIVABLE – RELATED PARTY 233 655 511 — (1,399 ) — OTHER NONCURRENT ASSETS — 223 — 1,133 — 1,356 Total assets $ 56,540 $ 65,734 $ 82,546 $ 145,693 $ (203,890 ) $ 146,623 LIABILITIES AND SHAREHOLDERS’/MEMBER’S EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 4 $ 900 $ 280 $ 7,861 $ — $ 9,045 Payables to related party — — — 690 (690 ) — Current portion of long-term debt — — — 2,045 — 2,045 Total current liabilities 4 900 280 10,596 (690 ) 11,090 LONG-TERM DEBT — — 18,708 49,478 — 68,186 LOANS PAYABLE – RELATED PARTY — — — 1,399 (1,399 ) — DEFERRED INCOME TAXES 17,268 14 — 32 — 17,314 OTHER LONG-TERM LIABILITIES 184 134 — 2,184 — 2,502 SHAREHOLDERS’/MEMBER’S EQUITY Controlling interest 39,084 56,263 63,558 81,980 (201,801 ) 39,084 Noncontrolling interests — 8,423 — 24 — 8,447 Total shareholders’/member’s equity 39,084 64,686 63,558 82,004 (201,801 ) 47,531 Total liabilities and shareholders’/member’s equity $ 56,540 $ 65,734 $ 82,546 $ 145,693 $ (203,890 ) $ 146,623 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Operations For the nine months ended September 30, 2018 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated REVENUES $ 37 $ 844 $ — $ 32,390 $ (868 ) $ 32,403 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 37 810 — 20,742 (868 ) 20,721 Depreciation and amortization — 8 — 7,776 — 7,784 Other operating expenses, net — 4 — 112 — 116 37 822 — 28,630 (868 ) 28,621 Income from operations — 22 — 3,760 — 3,782 OTHER INCOME (EXPENSES): Interest income (expense), net 7 21 (762 ) (1,896 ) — (2,630 ) Other pension benefits — — — 247 — 247 Other expense, net — (26 ) — (49 ) — (75 ) Equity in income of subsidiaries 1,085 1,286 2,048 — (4,419 ) — 1,092 1,281 1,286 (1,698 ) (4,419 ) (2,458 ) Income before income taxes 1,092 1,303 1,286 2,062 (4,419 ) 1,324 Income tax expense (158 ) (7 ) — (13 ) — (178 ) Consolidated net income 934 1,296 1,286 2,049 (4,419 ) 1,146 Less: Net income attributable to noncontrolling interests — (211 ) — (1 ) — (212 ) Net income $ 934 $ 1,085 $ 1,286 $ 2,048 $ (4,419 ) $ 934 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 Comprehensive Income For the nine months ended September 30, 2018 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated Consolidated net income $ 934 $ 1,296 $ 1,286 $ 2,049 $ (4,419 ) $ 1,146 Foreign currency translation adjustment (1 ) (1 ) (1 ) (1 ) 3 (1 ) Consolidated comprehensive income 933 1,295 1,285 2,048 (4,416 ) 1,145 Less: Comprehensive income attributable to noncontrolling interests — (211 ) — (1 ) — (212 ) Comprehensive income $ 933 $ 1,084 $ 1,285 $ 2,047 $ (4,416 ) $ 933 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Comprehensive Income 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 Cash Flows For the nine months ended September 30, 2018 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 $ 4 $ 91 $ (728 ) $ 9,232 $ — $ 8,599 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — — — (6,692 ) — (6,692 ) Change in accrued expenses related to capital expenditures — — — (620 ) — (620 ) Real estate investments through variable interest entities — (15 ) — — — (15 ) Contributions to subsidiaries (56 ) (127 ) (127 ) — 310 — Distributions from subsidiaries 3,217 3,763 4,491 — (11,471 ) — Other, net — (10 ) — (93 ) — (103 ) Net cash flows from investing activities 3,161 3,611 4,364 (7,405 ) (11,161 ) (7,430 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — — 11,552 — 11,552 Repayments of long-term debt — — — (8,964 ) — (8,964 ) Borrowings (repayments) loans payable - related parties (7 ) — — 7 — — Payments for debt issuance costs — — — (29 ) — (29 ) Purchase of treasury stock (3,214 ) — — — — (3,214 ) Proceeds from exercise of stock options 56 — — — — 56 Purchase of noncontrolling interest — (473 ) — — — (473 ) Distributions to noncontrolling interest — (113 ) — (1 ) — (114 ) Contributions from parent — 56 127 127 (310 ) — Distributions to parent — (3,217 ) (3,763 ) (4,491 ) 11,471 — Borrowings for real estate investments through variable interest entities — 170 — — — 170 Distributions to variable interest entities noncontrolling interest — (107 ) — — — (107 ) Other, net — — — (7 ) — (7 ) Net cash flows from financing activities (3,165 ) (3,684 ) (3,636 ) (1,806 ) 11,161 (1,130 ) NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH — 18 — 21 — 39 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period — 291 — 330 — 621 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period $ — $ 309 $ — $ 351 $ — $ 660 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 Contribution to subsidiary (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, CASH EQUIVALENTS AND RESTRICTED CASH (57 ) 36 — 650 — 629 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period 57 154 — 1,324 — 1,535 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period $ — $ 190 $ — $ 1,974 $ — $ 2,164 |