Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 9 Months Ended | |
Sep. 30, 2018 | Jun. 30, 2017 | |
Entity Information [Line Items] | ||
Entity Registrant Name | CHARTER COMMUNICATIONS, INC. /MO/ | |
Entity Central Index Key | 1,091,667 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | CHTR | |
Entity Current Reporting Status | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Amendment Flag | false | |
Entity Public Float | $ 68 | |
Class A Common Stock [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 228,917,692 | |
Class B Common Stock [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 612 | $ 621 |
Accounts receivable, less allowance for doubtful accounts of $125 and $113, respectively | 1,736 | 1,635 |
Prepaid expenses and other current assets | 381 | 299 |
Total current assets | 2,729 | 2,555 |
RESTRICTED CASH | 48 | 0 |
INVESTMENT IN CABLE PROPERTIES: | ||
Property, plant and equipment, net of accumulated depreciation of $21,513 and $18,077, respectively | 34,740 | 33,888 |
Customer relationships, net | 10,136 | 11,951 |
Franchises | 67,319 | 67,319 |
Goodwill | 29,554 | 29,554 |
Total investment in cable properties, net | 141,749 | 142,712 |
OTHER NONCURRENT ASSETS | 1,559 | 1,356 |
Total assets | 146,085 | 146,623 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued liabilities | 8,511 | 9,045 |
Current portion of long-term debt | 3,339 | 2,045 |
Total current liabilities | 11,850 | 11,090 |
LONG-TERM DEBT | 69,135 | 68,186 |
DEFERRED INCOME TAXES | 17,421 | 17,314 |
OTHER LONG-TERM LIABILITIES | 2,451 | 2,502 |
SHAREHOLDERS' EQUITY: | ||
Preferred stock; $.001 par value; 250 million shares authorized; no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 35,493 | 35,253 |
Retained earnings | 4,828 | 3,832 |
Treasury stock at cost; 10,574,233 and no shares, respectively | (3,214) | 0 |
Accumulated other comprehensive loss | (2) | (1) |
Total Charter shareholders' equity | 37,105 | 39,084 |
Noncontrolling interests | 8,123 | 8,447 |
Total shareholders' equity | 45,228 | 47,531 |
Total liabilities and shareholders' equity | 146,085 | 146,623 |
Class A Common Stock [Member] | ||
SHAREHOLDERS' EQUITY: | ||
Common stock | 0 | 0 |
Class B Common Stock [Member] | ||
SHAREHOLDERS' EQUITY: | ||
Common stock | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEET (PAR
CONSOLIDATED BALANCE SHEET (PARENTHETICALS) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Allowance for doubtful accounts | $ 125 | $ 113 |
INVESTMENT IN CABLE PROPERTIES: | ||
Property, plant and equipment, accumulated depreciation | $ 21,513 | $ 18,077 |
SHAREHOLDERS' EQUITY: | ||
Preferred stock, par value (dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (shares) | 250,000,000 | 250,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Treasury stock, shares (shares) | 10,574,233 | 0 |
Class A Common Stock [Member] | ||
SHAREHOLDERS' EQUITY: | ||
Common stock, par value (dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (shares) | 900,000,000 | 900,000,000 |
Common stock, shares issued (shares) | 239,491,925 | 238,506,059 |
Common stock, shares outstanding (shares) | 228,917,692 | 238,506,059 |
Class B Common Stock [Member] | ||
SHAREHOLDERS' EQUITY: | ||
Common stock, par value (dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (shares) | 1,000 | 1,000 |
Common stock, shares issued (shares) | 1 | 1 |
Common stock, shares outstanding (shares) | 1 | 1 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
REVENUES | $ 10,892 | $ 10,458 | $ 32,403 | $ 30,979 |
COSTS AND EXPENSES: | ||||
Operating costs and expenses (exclusive of items shown separately below) | 7,012 | 6,703 | 20,721 | 19,857 |
Depreciation and amortization | 2,482 | 2,701 | 7,784 | 7,846 |
Other operating expenses, net | 18 | 145 | 116 | 374 |
Total costs and expenses | 9,512 | 9,549 | 28,621 | 28,077 |
Income from operations | 1,380 | 909 | 3,782 | 2,902 |
OTHER EXPENSES: | ||||
Interest expense, net | (901) | (788) | (2,630) | (2,250) |
Loss on extinguishment of debt | 0 | 0 | 0 | (35) |
Gain (loss) on financial instruments, net | 12 | 17 | 0 | (15) |
Other pension benefits (costs) | 207 | (17) | 247 | 9 |
Other expense, net | (5) | (3) | (75) | (14) |
Total other income (expense) | (687) | (791) | (2,458) | (2,305) |
Income before income taxes | 693 | 118 | 1,324 | 597 |
Income tax expense | (109) | (26) | (178) | (99) |
Consolidated net income | 584 | 92 | 1,146 | 498 |
Less: Net income attributable to noncontrolling interests | (91) | (44) | (212) | (156) |
Net income attributable to Charter shareholders | $ 493 | $ 48 | $ 934 | $ 342 |
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CHARTER SHAREHOLDERS: | ||||
Basic (dollars per share) | $ 2.14 | $ 0.19 | $ 3.99 | $ 1.31 |
Diluted (dollars per share) | $ 2.11 | $ 0.19 | $ 3.93 | $ 1.29 |
Weighted average common shares outstanding, basic (shares) | 230,554,633 | 253,923,805 | 234,159,830 | 262,074,603 |
Weighted average common shares outstanding, diluted (shares) | 233,607,414 | 258,341,851 | 237,343,924 | 266,363,602 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Consolidated net income | $ 584 | $ 92 | $ 1,146 | $ 498 |
Foreign Currency Translation Adjustment | 0 | 1 | (1) | 1 |
Net impact of interest rate derivative instruments | 0 | 1 | 0 | 4 |
Consolidated comprehensive income | 584 | 94 | 1,145 | 503 |
Less: Comprehensive income attributable to noncontrolling interests | (91) | (44) | (212) | (156) |
Comprehensive income attributable to Charter shareholders | $ 493 | $ 50 | $ 933 | $ 347 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Consolidated net income | $ 1,146 | $ 498 |
Adjustments to reconcile consolidated net income to net cash flows from operating activities: | ||
Depreciation and amortization | 7,784 | 7,846 |
Stock compensation expense | 213 | 198 |
Accelerated vesting of equity awards | 5 | 43 |
Noncash interest income, net | (242) | (283) |
Other pension benefits | (247) | (9) |
Loss on extinguishment of debt | 0 | 35 |
Loss on financial instruments, net | 0 | 15 |
Deferred income taxes | 137 | 53 |
Other, net | 81 | 93 |
Changes in operating assets and liabilities, net of effects from acquisitions: | ||
Accounts receivable | (101) | (101) |
Prepaid expenses and other assets | (97) | 37 |
Accounts payable, accrued liabilities and other | (80) | 271 |
Net cash flows from operating activities | 8,599 | 8,696 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (6,692) | (6,096) |
Change in accrued expenses related to capital expenditures | (620) | 276 |
Real estate investment through variable interest entity | (15) | 0 |
Other, net | (103) | (63) |
Net cash flows from investing activities | (7,430) | (5,883) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 11,552 | 12,115 |
Repayments of long-term debt | (8,964) | (5,534) |
Payments for debt issuance costs | (29) | (83) |
Purchase of treasury stock | (3,214) | (7,748) |
Proceeds from exercise of stock options | 56 | 111 |
Purchase of noncontrolling interest | (473) | (922) |
Distributions to noncontrolling interest | (114) | (115) |
Borrowings from real estate investments through variable interest entities | 170 | 0 |
Distributions to variable interest entities noncontrolling interest | (107) | 0 |
Other, net | (7) | (8) |
Net cash flows from financing activities | (1,130) | (2,184) |
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 39 | 629 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 621 | 1,535 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | 660 | 2,164 |
CASH PAID FOR INTEREST | 2,920 | 2,544 |
CASH PAID FOR TAXES | $ 27 | $ 38 |
Organization and Basis of Prese
Organization and Basis of Presentation (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Organization and Basis of Presentation [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Organization Charter Communications, Inc. (together with its controlled subsidiaries, “Charter,” or the “Company”) is the second largest cable operator in the United States and a leading broadband communications company providing video, Internet and voice services to residential and business customers. The Company also recently launched its mobile service to residential customers. In addition, the Company sells video and online advertising inventory to local, regional and national advertising customers and fiber-delivered communications and managed information technology solutions to larger enterprise customers. The Company also owns and operates regional sports networks and local sports, news and lifestyle channels and sells security and home management services to the residential marketplace. Charter is a holding company whose principal asset is a controlling equity interest in Charter Communications Holdings, LLC (“Charter Holdings”), an indirect owner of Charter Communications Operating, LLC (“Charter Operating”) under which substantially all of the operations reside. All significant intercompany accounts and transactions among consolidated entities have been eliminated. The Company’s operations are managed and reported to its Chairman and Chief Executive Officer (“CEO”), the Company’s chief operating decision maker, on a consolidated basis. The CEO assesses performance and allocates resources based on the consolidated results of operations. Under this organizational and reporting structure, the Company has one reportable segment, cable services. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, certain information and footnote disclosures typically included in Charter’s Annual Report on Form 10-K have been condensed or omitted for this quarterly report. The accompanying consolidated financial statements are unaudited and are subject to review by regulatory authorities. However, in the opinion of management, such financial statements include all adjustments, which consist of only normal recurring adjustments, necessary for a fair presentation of the results for the periods presented. Interim results are not necessarily indicative of results for a full year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Areas involving significant judgments and estimates include capitalization of labor and overhead costs; depreciation and amortization costs; impairments of property, plant and equipment, intangibles and goodwill; pension benefits; income taxes; contingencies and programming expense. Actual results could differ from those estimates. Certain prior period amounts have been reclassified to conform with the 2018 presentation. |
Franchises, Goodwill and Other
Franchises, Goodwill and Other Intangible Assets (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Franchises, Goodwill and Other Intangible Assets [Abstract] | |
Franchises, Goodwill and Other Intangible Assets | Franchises, Goodwill and Other Intangible Assets Indefinite-lived and finite-lived intangible assets consist of the following as of September 30, 2018 and December 31, 2017 : September 30, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Indefinite-lived intangible assets: Franchises $ 67,319 $ — $ 67,319 $ 67,319 $ — $ 67,319 Goodwill 29,554 — 29,554 29,554 — 29,554 Trademarks 159 — 159 159 — 159 $ 97,032 $ — $ 97,032 $ 97,032 $ — $ 97,032 Finite-lived intangible assets: Customer relationships $ 18,229 $ (8,093 ) $ 10,136 $ 18,229 $ (6,278 ) $ 11,951 Other intangible assets 397 (82 ) 315 731 (201 ) 530 $ 18,626 $ (8,175 ) $ 10,451 $ 18,960 $ (6,479 ) $ 12,481 Amortization expense related to customer relationships and other intangible assets for the three and nine months ended September 30, 2018 was $583 million and $1.8 billion , respectively, and $664 million and $2.1 billion for the three and nine months ended September 30, 2017 , respectively. Effective January 1, 2018 with the adoption of Accounting Standards Update (“ASU”) 2014-09, up-front fees paid to market and serve customers who reside in residential multiple dwelling units (“MDUs”) are no longer recorded as intangibles and amortized to depreciation and amortization expense, but are now being recorded as noncurrent assets and are amortized to operating costs and expenses. See Note 18. The Company expects amortization expense on its finite-lived intangible assets will be as follows: Three months ended December 31, 2018 $ 582 2019 2,153 2020 1,871 2021 1,596 2022 1,326 Thereafter 2,923 $ 10,451 Actual amortization expense in future periods will differ from these estimates as a result of new intangible asset acquisitions or divestitures, changes in useful lives, impairments and other relevant factors. |
Real Estate Investments through
Real Estate Investments through Variable Interest Entities (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Real Estate Investment through Variable Interest Entities [Abstract] | |
Real Estate Investments through Variable Interest Entities | Real Estate Investments through Variable Interest Entities In July 2018, the Company's build-to-suit lease arrangement with a single-asset special purpose entity ("SPE") to build a new Charter headquarters in Stamford, Connecticut obtained all approvals and was made effective. The SPE obtained a first-lien mortgage note to finance the construction with fixed monthly payments through July 15, 2035 with a 5.612% coupon interest rate. All payments of the mortgage note are guaranteed by Charter. The initial term of the lease is 15 years commencing August 1, 2020, with no termination options. At the end of the lease term there is a mirrored put option for the SPE to sell the property and call option for Charter to purchase the property for a fixed purchase price. As the Company has determined the SPE is a variable interest entity ("VIE") of which it became the primary beneficiary upon the effectiveness of the arrangement, the Company has consolidated the assets and liabilities of the SPE in its consolidated balance sheet as of September 30, 2018 as follows. September 30, 2018 Assets Current assets $ 3 Restricted cash $ 48 Property, plant and equipment $ 122 Liabilities Other long-term liabilities $ 173 Property, plant and equipment includes land, a parking garage and building construction costs, including the capitalization of qualifying interest. Other long-term liabilities include $170 million in VIE's mortgage note liability and $3 million in liability-classified noncontrolling interest representing the residual initial fair value upon consolidation (that remained after the distribution described below), along with accretion towards settlement of the put/call option in the lease. The consolidated statement of cash flows for the nine months ended September 30, 2018 includes an increase to restricted cash of $48 million as a result of activity in the VIE including borrowings of $170 million by the VIE on the mortgage note liability offset by distributions by the VIE to the noncontrolling interest of $107 million for the contributed land and parking garage and $15 million incurred by the VIE for building construction costs. In December 2018, an additional $172 million is contractually scheduled to be borrowed by the SPE under the mortgage note construction financing. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities consist of the following as of September 30, 2018 and December 31, 2017 : September 30, 2018 December 31, 2017 Accounts payable – trade $ 604 $ 740 Deferred revenue 498 395 Accrued liabilities: Programming costs 2,055 1,907 Labor 1,012 1,109 Capital expenditures 1,318 1,935 Interest 1,011 1,054 Taxes and regulatory fees 575 556 Property and casualty 426 408 Other 1,012 941 $ 8,511 $ 9,045 |
Long-Term Debt (Notes)
Long-Term Debt (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following as of September 30, 2018 and December 31, 2017 : September 30, 2018 December 31, 2017 Principal Amount Accreted Value Principal Amount Accreted Value CCO Holdings, LLC: 5.250% senior notes due March 15, 2021 $ 500 $ 498 $ 500 $ 497 5.250% senior notes due September 30, 2022 1,250 1,237 1,250 1,235 5.125% senior notes due February 15, 2023 1,000 993 1,000 993 4.000% senior notes due March 1, 2023 500 496 500 495 5.125% senior notes due May 1, 2023 1,150 1,143 1,150 1,143 5.750% senior notes due September 1, 2023 500 497 500 496 5.750% senior notes due January 15, 2024 1,000 993 1,000 992 5.875% senior notes due April 1, 2024 1,700 1,688 1,700 1,687 5.375% senior notes due May 1, 2025 750 745 750 745 5.750% senior notes due February 15, 2026 2,500 2,466 2,500 2,464 5.500% senior notes due May 1, 2026 1,500 1,490 1,500 1,489 5.875% senior notes due May 1, 2027 800 795 800 794 5.125% senior notes due May 1, 2027 3,250 3,218 3,250 3,216 5.000% senior notes due February 1, 2028 2,500 2,465 2,500 2,462 Charter Communications Operating, LLC: 3.579% senior notes due July 23, 2020 2,000 1,991 2,000 1,988 4.464% senior notes due July 23, 2022 3,000 2,981 3,000 2,977 Senior floating rate notes due February 1, 2024 900 903 — — 4.500% senior notes due February 1, 2024 1,100 1,091 — — 4.908% senior notes due July 23, 2025 4,500 4,465 4,500 4,462 3.750% senior notes due February 15, 2028 1,000 986 1,000 985 4.200% senior notes due March 15, 2028 1,250 1,239 1,250 1,238 6.384% senior notes due October 23, 2035 2,000 1,982 2,000 1,981 5.375% senior notes due April 1, 2038 800 785 — — 6.484% senior notes due October 23, 2045 3,500 3,466 3,500 3,466 5.375% senior notes due May 1, 2047 2,500 2,506 2,500 2,506 5.750% senior notes due April 1, 2048 1,700 1,683 — — 6.834% senior notes due October 23, 2055 500 495 500 495 Credit facilities 9,576 9,493 9,479 9,387 Time Warner Cable, LLC: 6.750% senior notes due July 1, 2018 — — 2,000 2,045 8.750% senior notes due February 14, 2019 1,250 1,279 1,250 1,337 8.250% senior notes due April 1, 2019 2,000 2,060 2,000 2,148 5.000% senior notes due February 1, 2020 1,500 1,551 1,500 1,579 4.125% senior notes due February 15, 2021 700 723 700 730 4.000% senior notes due September 1, 2021 1,000 1,036 1,000 1,045 5.750% sterling senior notes due June 2, 2031 (a) 815 876 845 912 6.550% senior debentures due May 1, 2037 1,500 1,682 1,500 1,686 7.300% senior debentures due July 1, 2038 1,500 1,782 1,500 1,788 6.750% senior debentures due June 15, 2039 1,500 1,720 1,500 1,724 5.875% senior debentures due November 15, 2040 1,200 1,257 1,200 1,258 5.500% senior debentures due September 1, 2041 1,250 1,258 1,250 1,258 5.250% sterling senior notes due July 15, 2042 (b) 847 817 879 847 4.500% senior debentures due September 15, 2042 1,250 1,139 1,250 1,137 Time Warner Cable Enterprises LLC: 8.375% senior debentures due March 15, 2023 1,000 1,202 1,000 1,232 8.375% senior debentures due July 15, 2033 1,000 1,302 1,000 1,312 Total debt 71,538 72,474 69,003 70,231 Less current portion: 6.750% senior notes due July 1, 2018 — — (2,000 ) (2,045 ) 8.750% senior notes due February 14, 2019 (1,250 ) (1,279 ) — — 8.250% senior notes due April 1, 2019 (2,000 ) (2,060 ) — — Long-term debt $ 68,288 $ 69,135 $ 67,003 $ 68,186 (a) Principal amount includes £625 million remeasured at $815 million and $845 million as of September 30, 2018 and December 31, 2017 , respectively, using the exchange rate at the respective dates. (b) Principal amount includes £650 million remeasured at $847 million and $879 million as of September 30, 2018 and December 31, 2017 , respectively, using the exchange rate at the respective dates. The accreted values presented in the table above represent the principal amount of the debt less the original issue discount at the time of sale, deferred financing costs, and, in regards to Time Warner Cable, LLC and Time Warner Cable Enterprises LLC debt assumed, fair value premium adjustments as a result of applying acquisition accounting plus the accretion of those amounts to the balance sheet date. However, the amount that is currently payable if the debt becomes immediately due is equal to the principal amount of the debt. In regards to the fixed-rate British pound sterling denominated notes (the “Sterling Notes”), the principal amount of the debt and any premium or discount is remeasured into U.S. dollars as of each balance sheet date. See Note 8. The Company has availability under the Charter Operating credit facilities of approximately $3.4 billion as of September 30, 2018 . In April 2018, Charter Operating and Charter Communications Operating Capital Corp. jointly issued $800 million aggregate principal amount of 5.375% senior notes due April 1, 2038 at a price of 98.846% of the aggregate principal amount and $1.7 billion aggregate principal amount of 5.750% senior notes due April 1, 2048 at a price of 99.706% of the aggregate principal amount. The net proceeds, together with cash on hand, were used to repay certain existing indebtedness, including the redemption of all of the outstanding $2.0 billion in aggregate principal amount of Time Warner Cable, LLC’s 6.750% notes due July 1, 2018, to pay related fees and expenses and for general corporate purposes, including funding buybacks of Charter Class A common stock and Charter Holdings common units. In July 2018, Charter Operating and Charter Communications Operating Capital Corp. jointly issued $400 million aggregate principal amount of senior floating rate notes due February 1, 2024 at par and $1.1 billion aggregate principal amount of 4.500% senior notes due February 1, 2024 at a price of 99.893% of the aggregate principal amount. In August 2018, Charter Operating and Charter Communications Operating Capital Corp. jointly issued an additional $500 million aggregate principal amount of senior floating rate notes due February 1, 2024 at a price of 101.479% of the aggregate principal amount. Interest on the floating rate notes accrues at LIBOR plus 1.650% . The net proceeds were used to pay related fees and expenses and for general corporate purposes, including funding buybacks of Charter Class A common stock and Charter Holdings common units. The Charter Operating notes are guaranteed by CCO Holdings, LLC (“CCO Holdings”) and substantially all of the operating subsidiaries of Charter Operating. In addition, the Charter Operating notes are secured by a perfected first priority security interest in substantially all of the assets of Charter Operating to the extent such liens can be perfected under the Uniform Commercial Code by the filing of a financing statement and the liens rank equally with the liens on the collateral securing obligations under the Charter Operating credit facilities. Charter Operating may redeem some or all of the Charter Operating notes at any time at a premium. The Charter Operating notes are subject to the terms and conditions of the indenture governing the Charter Operating notes. The Charter Operating notes contain customary representations and warranties and affirmative covenants with limited negative covenants. The Charter Operating indenture also contains customary events of default. Loss on extinguishment of debt consisted of the following for the nine months ended September 30, 2017 . Nine Months Ended September 30, 2017 CCO Holdings notes redemption $ (33 ) Time Warner Cable, LLC notes redemption (1 ) Charter Operating credit facility refinancing (1 ) $ (35 ) |
Common Stock (Notes)
Common Stock (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Common Stock [Abstract] | |
Common Stock | Common Stock The following represents the Company's purchase of Charter Class A common stock and the effect on the consolidated statements of cash flows during the three and nine months ended September 30, 2018 and 2017 . Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Shares $ Shares $ Shares $ Shares $ Share buybacks 3,046,346 $ 929 9,521,958 $ 3,513 10,349,639 $ 3,142 21,940,797 $ 7,611 Income tax withholding 12,703 4 32,283 12 209,394 72 424,148 137 Exercise cost 8,785 1,433 15,200 41,978 3,067,834 $ 933 9,555,674 $ 3,525 10,574,233 $ 3,214 22,406,923 $ 7,748 As of September 30, 2018 , Charter had remaining board authority to purchase an additional $788 million of Charter’s Class A common stock and/or Charter Holdings common units. The Company also withholds shares of its Class A common stock in payment of income tax withholding owed by employees upon vesting of equity awards as well as exercise costs owed by employees upon exercise of stock options. In 2017, Charter’s board of directors approved the retirement of the then currently held treasury stock and those shares were retired as of December 31, 2017. The Company accounts for treasury stock using the cost method and includes treasury stock as a component of total shareholders’ equity. |
Noncontrolling Interests (Notes
Noncontrolling Interests (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Noncontrolling Interests [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests Noncontrolling interests represents consolidated subsidiaries of which the Company owns less than 100% . The Company is a holding company whose principal asset is a controlling equity interest in Charter Holdings, the indirect owner of the Company’s cable systems. Noncontrolling interests on the Company’s balance sheet consist primarily of Advance/Newhouse Partnership's (“A/N”) equity interests in Charter Holdings, which is comprised of a common ownership interest and a convertible preferred ownership interest. Net income of Charter Holdings attributable to A/N’s common noncontrolling interest for financial reporting purposes is based on the effective common ownership interest of approximately 8% during 2018 and 9% during 2017, and was $54 million and $99 million for the three and nine months ended September 30, 2018 , respectively, and $6 million and $42 million for the three and nine months ended September 30, 2017 , respectively. Net income of Charter Holdings attributable to A/N's preferred noncontrolling interest for financial reporting purposes is based on the preferred dividend which was $37 million and $112 million for each of the three and nine months ended September 30, 2018 and 2017, respectively. The following table represents Charter Holdings' purchase of Charter Holdings common units from A/N pursuant to the Letter Agreement (see Note 14) and the effect on total shareholders' equity during the three and nine months ended September 30, 2018 and 2017 . Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Number of units purchased 495,447 1,385,404 1,546,475 2,700,849 Average price per unit $ 292.81 $ 355.83 $ 306.11 $ 341.49 Amount of units purchased $ 145 $ 493 $ 473 $ 922 Decrease in noncontrolling interest based on carrying value $ (122 ) $ (292 ) $ (376 ) $ (582 ) Decrease in additional paid-in-capital, net of tax $ (17 ) $ (123 ) $ (73 ) $ (209 ) Total shareholders' equity was also adjusted during the three and nine months ended September 30, 2018 and 2017 due to the changes in Charter Holdings' ownership as follows. Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Decrease in noncontrolling interest $ (10 ) $ (170 ) $ (53 ) $ (336 ) Increase in additional paid-in-capital, net of tax $ 7 $ 106 $ 39 $ 208 |
Accounting for Derivative Instr
Accounting for Derivative Instruments and Hedging Activities (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting for Derivative Instruments and Hedging Activities [Abstract] | |
Accounting for Derivative Instruments and Hedging Activities | Accounting for Derivative Instruments and Hedging Activities The Company uses derivative instruments to manage foreign exchange risk on the Sterling Notes, and does not hold or issue derivative instruments for speculative trading purposes. Cross-currency derivative instruments are used to effectively convert £1.275 billion aggregate principal amount of fixed-rate British pound sterling denominated debt, including annual interest payments and the payment of principal at maturity, to fixed-rate U.S. dollar denominated debt. The cross-currency swaps have maturities of June 2031 and July 2042. The Company is required to post collateral on the cross-currency derivative instruments when the derivative contracts are in a liability position. In May 2016, the Company entered into a collateral holiday agreement for 80% of both the 2031 and 2042 cross-currency swaps, which eliminates the requirement to post collateral for three years. The fair value of the Company's cross-currency derivatives on its consolidated balance sheets was $88 million and $25 million included in other long-term liabilities as of September 30, 2018 and December 31, 2017 , respectively. The Company’s derivative instruments are not designated as hedges and are marked to fair value each period, with the impact recorded as a gain or loss on financial instruments, net in the consolidated statements of operations. While these derivative instruments are not designated as hedges for accounting purposes, management continues to believe such instruments are closely correlated with the respective debt, thus managing associated risk. The effect of financial instruments on the consolidated statements of operations is presented in the table below. Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Gain (Loss) on Financial Instruments, Net: Change in fair value of cross-currency derivative instruments (10 ) 68 $ (63 ) $ 126 Foreign currency remeasurement of Sterling Notes to U.S. dollars 22 (50 ) 63 (141 ) Other, net — (1 ) — — $ 12 $ 17 $ — $ (15 ) |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Fair Value Measurements Accounting guidance establishes a three-level hierarchy for disclosure of fair value measurements, based on the transparency of inputs to the valuation of an asset or liability as of the measurement date, as follows: • Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement. Financial Assets and Liabilities The Company has estimated the fair value of its financial instruments as of September 30, 2018 and December 31, 2017 using available market information or other appropriate valuation methodologies. Considerable judgment, however, is required in interpreting market data to develop the estimates of fair value. Accordingly, the estimates presented in the accompanying consolidated financial statements are not necessarily indicative of the amounts the Company would realize in a current market exchange. The carrying amounts of cash and cash equivalents, restricted cash, receivables, payables and other current assets and liabilities approximate fair value because of the short maturity of those instruments. A portion of the Company’s cash and cash equivalents as of September 30, 2018 and December 31, 2017 were invested in money market funds. The money market funds are valued at the closing price reported by the fund sponsor from an actively traded exchange which approximates fair value. The money market funds potentially subject the Company to concentration of credit risk. The amount invested within any one financial instrument did not exceed $300 million as of September 30, 2018 and December 31, 2017 . As of September 30, 2018 and December 31, 2017 , there were no significant concentrations of financial instruments in a single investee, industry or geographic location. Financial instruments accounted for at fair value on a recurring basis are presented in the table below. September 30, 2018 December 31, 2017 Level 1 Level 2 Level 1 Level 2 Assets Money market funds $ 15 $ — $ 291 $ — Liabilities Cross-currency derivative instruments $ — $ 88 $ — $ 25 A summary of the carrying value and fair value of debt as of September 30, 2018 and December 31, 2017 is as follows: September 30, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Senior notes and debentures $ 62,981 $ 62,966 $ 60,844 $ 63,443 Credit facilities $ 9,493 $ 9,577 $ 9,387 $ 9,440 The estimated fair value of the Company’s senior notes and debentures as of September 30, 2018 and December 31, 2017 is based on quoted market prices in active markets and is classified within Level 1 of the valuation hierarchy, while the estimated fair value of the Company’s credit facilities is based on quoted market prices in inactive markets and is classified within Level 2. The carrying amount of the consolidated variable interest entity's mortgage note liability approximates fair value. Nonfinancial Assets and Liabilities The Company’s nonfinancial assets such as equity-method investments, franchises, property, plant, and equipment, and other intangible assets are not measured at fair value on a recurring basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence that an impairment may exist. No material impairments were recorded during the three and nine months ended September 30, 2018 and 2017 . |
Operating Costs and Expenses (N
Operating Costs and Expenses (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Operating Costs and Expenses [Abstract] | |
Operating Costs and Expenses | Operating Costs and Expenses Operating costs and expenses, exclusive of items shown separately in the consolidated statements of operations, consist of the following for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Programming $ 2,778 $ 2,699 $ 8,333 $ 7,952 Regulatory, connectivity and produced content 546 523 1,639 1,553 Costs to service customers 1,854 1,823 5,492 5,385 Marketing 790 761 2,310 2,286 Mobile 94 — 135 — Other 950 897 2,812 2,681 $ 7,012 $ 6,703 $ 20,721 $ 19,857 Programming costs consist primarily of costs paid to programmers for basic, premium, digital, video on demand and pay-per-view programming. Regulatory, connectivity and produced content costs represent payments to franchise and regulatory authorities, costs directly related to providing video, Internet and voice services as well as payments for sports, local and news content produced by the Company. Included in regulatory, connectivity and produced content costs is content acquisition costs for the Los Angeles Lakers’ basketball games and Los Angeles Dodgers’ baseball games, which are recorded as games are exhibited over the applicable season. Costs to service customers include costs related to field operations, network operations and customer care for the Company’s residential and small and medium business customers, including internal and third-party labor for the non-capitalizable portion of installations, service and repairs, maintenance, bad debt expense, billing and collection, occupancy and vehicle costs. Marketing costs represent the costs of marketing to current and potential commercial and residential customers including labor costs. Mobile costs represent costs associated with the Company's mobile service such as device and service costs, marketing, sales and commissions, retail stores, personnel costs and taxes, among others. Other includes corporate overhead, advertising sales expenses, indirect costs associated with the Company’s enterprise business customers and regional sports and news networks, property tax and insurance expense and stock compensation expense, among others. |
Other Operating Expenses, Net (
Other Operating Expenses, Net (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Other Operating Expenses, Net [Abstract] | |
Other Operating Expenses, Net | Other Operating Expenses, Net Other operating expenses, net consist of the following for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Merger and restructuring costs $ 14 $ 67 $ 90 $ 293 Special charges, net — 80 35 86 (Gain) loss on sale of assets, net 4 (2 ) (9 ) (5 ) $ 18 $ 145 $ 116 $ 374 Merger and restructuring costs Merger and restructuring costs represent costs incurred in connection with merger and acquisition transactions and related restructuring, such as advisory, legal and accounting fees, employee retention costs, employee termination costs related to the acquisition in 2016 of Time Warner Cable Inc. ("TWC") and Bright House Networks, LLC ("Bright House") and other exit costs. Changes in accruals for merger and restructuring costs are presented below: Employee Retention Costs Employee Termination Costs Transaction and Advisory Costs Other Costs Total Liability, December 31, 2016 $ 7 $ 244 $ 25 $ — $ 276 Costs incurred 4 226 4 68 302 Cash paid (10 ) (298 ) (12 ) (60 ) (380 ) Remaining liability, December 31, 2017 1 172 17 8 198 Costs incurred — 59 1 25 85 Cash paid — (155 ) — (23 ) (178 ) Remaining liability, September 30, 2018 $ 1 $ 76 $ 18 $ 10 $ 105 In addition to the costs incurred indicated above, the Company recorded $5 million of expense related to accelerated vesting of equity awards of terminated employees during the nine months ended September 30, 2018 , and $6 million and $43 million during the three and nine months ended September 30, 2017 , respectively. Special charges, net Special charges, net primarily includes employee termination costs not related to the acquisition of TWC and Bright House and net amounts of litigation settlements. The nine months ended September 30, 2018 includes a $22 million charge related to the Company's withdrawal liability from a multiemployer pension plan while the three and nine months ended September 30, 2017 includes an $83 million charge related to the Company's withdrawal liability from a multiemployer pension plan. (Gain) loss on sale of assets, net (Gain) loss on sale of assets, net represents the net (gain) loss recognized on the sales and disposals of fixed assets and cable systems. |
Income Taxes (Notes)
Income Taxes (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | Income Taxes Substantially all of the Company’s operations are held through Charter Holdings and its direct and indirect subsidiaries. Charter Holdings and the majority of its subsidiaries are limited liability companies that are generally not subject to income tax. However, certain of these limited liability companies are subject to state income tax. In addition, the subsidiaries that are corporations are subject to income tax. Generally, the taxable income, gains, losses, deductions and credits of Charter Holdings are passed through to its members, Charter and A/N. Charter is responsible for its share of taxable income or loss of Charter Holdings allocated to it in accordance with the Charter Holdings Limited Liability Company Agreement (“LLC Agreement”) and partnership tax rules and regulations. As a result, Charter's primary deferred tax component recorded in the consolidated balance sheets relates to its excess financial reporting outside basis, excluding amounts attributable to nondeductible goodwill, over Charter's tax basis in the investment in Charter Holdings. The Company recorded income tax expense of $109 million and $178 million for the three and nine months ended September 30, 2018 , respectively, and $26 million and $99 million for the three and nine months ended September 30, 2017 , respectively. Income tax expense increased year over year as a result of higher pretax income offset by the impacts of federal tax reform . The Company has reported provisional amounts for the income tax effects of Tax Cuts & Jobs Act (“Tax Reform”) for which the accounting is incomplete but a reasonable estimate could be determined. There were no specific impacts of Tax Reform that could not be reasonably estimated which the Company accounted for under prior tax law. Based on a continued analysis of the estimates and further guidance on the application of the law, it is anticipated that additional revisions may occur throughout the allowable measurement period. During the three months ended September 30, 2018, a $12 million income tax benefit was recorded to update existing estimates reflecting more complete information. The final update is expected during the fourth quarter of 2018. Charter Holdings, the indirect owner of the Company’s cable systems, generally allocates its taxable income, gains, losses, deductions and credits proportionately according to the members’ respective ownership interests, except for special allocations required under Section 704(c) of the Internal Revenue Code and the Treasury Regulations (“Section 704(c)”). Pursuant to Section 704(c) and the LLC Agreement, each item of income, gain, loss and deduction with respect to any property contributed to the capital of the partnership shall, solely for tax purposes, be allocated among the members so as to take into account any variation between the adjusted basis of such property to the partnership for U.S. federal income tax purposes and its initial gross asset value using the “traditional method” as described in the Treasury Regulations. In determining the Company’s tax provision for financial reporting purposes, the Company establishes a reserve for uncertain tax positions unless such positions are determined to be “more likely than not” of being sustained upon examination, based on their technical merits. There is considerable judgment involved in making such a determination. The Company has recorded unrecognized tax benefits totaling approximately $171 million and $164 million , excluding interest and penalties, as of September 30, 2018 and December 31, 2017 , respectively. The Company does not currently anticipate that its reserve for uncertain tax positions will significantly increase or decrease during 2018; however, various events could cause the Company’s current expectations to change in the future. These uncertain tax positions, if ever recognized in the financial statements, would be recorded in the consolidated statements of operations as part of the income tax provision. No tax years for Charter or Charter Communications Holding Company, LLC for income tax purposes, are currently under examination by the Internal Revenue Service ("IRS"). Charter's 2016 and 2017 tax years remain open for examination and assessment. Charter’s tax years ending 2015 through the short period return dated May 17, 2016 (prior to the acquisition of TWC and Bright House) remain subject to examination and assessment. Years prior to 2015 remain open solely for purposes of examination of Charter’s loss and credit carryforwards. The IRS is currently examining Charter Holdings’ income tax return for 2016. Charter Holdings’ 2017 tax year remains open for examination. The IRS is currently examining TWC’s income tax returns for 2011 through 2014. TWC’s tax year 2015 remains subject to examination and assessment. Prior to TWC’s separation from Time Warner Inc. (“Time Warner”) in March 2009 (the “Separation”), TWC was included in the consolidated U.S. federal and certain state income tax returns of Time Warner. The IRS is currently examining Time Warner’s 2008 through 2010 income tax returns. The Company does not anticipate that these examinations will have a material impact on the Company’s consolidated financial position or results of operations. In addition, the Company is also subject to ongoing examinations of the Company’s tax returns by state and local tax authorities for various periods. Activity related to these state and local examinations did not have a material impact on the Company’s consolidated financial position or results of operations during the three and nine months ended September 30, 2018 , nor does the Company anticipate a material impact in the future. |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings (Loss) Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings Per Share Basic earnings per common share is computed by dividing net income attributable to Charter shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share considers the impact of potentially dilutive securities using the treasury stock and if-converted methods and is based on the weighted average number of shares used for the basic earnings per share calculation, adjusted for the dilutive effect of stock options, restricted stock, restricted stock units, equity awards with market conditions and Charter Holdings convertible preferred units and common units. Charter Holdings common and convertible preferred units of 30 million and 31 million for the three and nine months ended September 30, 2018 , respectively, and 35 million and 37 million for the three and nine months ended September 30, 2017 , respectively, were not included in the computation of diluted earnings per share as their effect would have been antidilutive. The following is the computation of diluted earnings per common share for the three and nine months ended September 30, 2018 and 2017 . Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Numerator: Net income attributable to Charter shareholders $ 493 $ 48 $ 934 $ 342 Denominator: Weighted average common shares outstanding, basic 230,554,633 253,923,805 234,159,830 262,074,603 Effect of dilutive securities: Assumed exercise or issuance of shares relating to stock plans 3,052,781 4,418,046 3,184,094 4,288,999 Weighted average common shares outstanding, diluted 233,607,414 258,341,851 237,343,924 266,363,602 Basic earnings per common share attributable to Charter shareholders $ 2.14 $ 0.19 $ 3.99 $ 1.31 Diluted earnings per common share attributable to Charter shareholders $ 2.11 $ 0.19 $ 3.93 $ 1.29 |
Related Party Transactions (Not
Related Party Transactions (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The following sets forth certain transactions in which the Company and the directors, executive officers, and affiliates of the Company are involved. Liberty Broadband and A/N Under the terms of the Amended and Restated Stockholders Agreement with Liberty Broadband Corporation (“Liberty Broadband”), A/N and Charter, dated May 23, 2015, the number of Charter’s directors is fixed at 13, and includes its CEO. Two designees selected by A/N are members of the board of directors of Charter and three designees selected by Liberty Broadband are members of the board of directors of Charter. The remaining eight directors are not affiliated with either A/N or Liberty Broadband. Each of A/N and Liberty Broadband is entitled to nominate at least one director to each of the committees of Charter’s board of directors, subject to applicable stock exchange listing rules and certain specified voting or equity ownership thresholds for each of A/N and Liberty Broadband, and provided that the Nominating and Corporate Governance Committee and the Compensation and Benefit Committee each have at least a majority of directors independent from A/N, Liberty Broadband and Charter (referred to as the “unaffiliated directors”). Each of the Nominating and Corporate Governance Committee and the Compensation and Benefits Committee is currently comprised of three unaffiliated directors and one designee of each of A/N and Liberty Broadband. A/N and Liberty Broadband also have certain other committee designation and other governance rights. Mr. Thomas Rutledge, the Company’s CEO, is the chairman of the board of Charter. In December 2017, Charter and A/N entered into an amendment to the letter agreement (the “Letter Agreement”) that requires A/N to sell to Charter or to Charter Holdings, on a monthly basis, a number of shares of Charter Class A common stock or Charter Holdings common units that represents a pro rata participation by A/N and its affiliates in any repurchases of shares of Charter Class A common stock from persons other than A/N effected by Charter during the immediately preceding calendar month, at a purchase price equal to the average price paid by Charter for the shares repurchased from persons other than A/N during such immediately preceding calendar month. A/N and Charter both have the right to terminate or suspend the pro rata repurchase arrangement on a prospective basis once Charter or Charter Holdings have repurchased shares of Class A common stock or Charter Holdings common units from A/N and its affiliates for an aggregate purchase price of $400 million which threshold has been reached. The Company is aware that Dr. John Malone, a director emeritus of Charter and Chairman of the board of directors and holder of 47.1% of voting interest in Liberty Broadband, may be deemed to have a 37.5% voting interest in Qurate Retail, Inc. ("Qurate," formerly known as Liberty Interactive Corporation) and is on the board of directors of Qurate. Qurate wholly owns HSN, Inc. (“HSN”) and QVC, Inc. (“QVC”). The Company has programming relationships with HSN and QVC. For the three and nine months ended September 30, 2018 , the Company recorded revenue in aggregate of approximately $18 million and $51 million , respectively, and for the three and nine months ended September 30, 2017 , the Company recorded revenue in aggregate of approximately $17 million and $50 million , respectively, from HSN and QVC as part of channel carriage fees and revenue sharing arrangements for home shopping sales made to customers in the Company’s footprint. Dr. Malone and Mr. Steven Miron, a member of Charter’s board of directors, also serve on the board of directors of Discovery Communications, Inc., (“Discovery”). The Company is aware that Dr. Malone owns 93.6% of the series B common stock of Discovery, 6% of the series C common stock of Discovery and has a 28% voting interest in Discovery for the election of directors. The Company is aware that Advance/Newhouse Programming Partnership (“A/N PP”), an affiliate of A/N and of which Mr. Miron is the CEO, owns 100% of the Series A-1 preferred stock of Discovery and 100% of the Series C-1 preferred stock of Discovery and has a 24.2% voting interest for the election of directors. A/N PP has the right to appoint three directors out of a total of eleven directors to Discovery’s board to be elected by the holders of Discovery’s Series A-1 preferred stock. The Company purchases programming from Discovery pursuant to agreements entered into prior to Dr. Malone and Mr. Miron joining Charter’s board of directors. Based on publicly available information, the Company does not believe that Discovery would currently be considered a related party. The amount paid in the aggregate to Discovery represents less than 3% of total operating costs and expenses for the three and nine months ended September 30, 2018 and 2017 . Equity Investments The Company has agreements with certain equity-method investees pursuant to which the Company has made or received related party transaction payments. The Company recorded payments to equity-method investees totaling $99 million and $248 million during the three and nine months ended September 30, 2018 , respectively, and $62 million and $208 million during the three and nine months ended September 30, 2017 , respectively. |
Contingencies (Notes)
Contingencies (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies [Abstract] | |
Contingencies | Contingencies In August 2015, a purported stockholder of Charter, Matthew Sciabacucchi, filed a lawsuit in the Delaware Court of Chancery, on behalf of a putative class of Charter stockholders, challenging the transactions involving Charter, TWC, A/N, and Liberty Broadband announced by Charter on May 26, 2015. The lawsuit, which named as defendants Charter and its board of directors, alleged that the transactions resulted from breaches of fiduciary duty by Charter’s directors and that Liberty Broadband improperly benefited from the challenged transactions at the expense of other Charter stockholders. The lawsuit has proceeded to the discovery phase. Charter denies any liability, believes that it has substantial defenses, and intends to vigorously defend this lawsuit. Although Charter is unable to predict the outcome of this lawsuit, it does not expect the outcome will have a material effect on its operations, financial condition or cash flows. The California Attorney General and the Alameda County, California District Attorney are investigating whether certain of Charter’s waste disposal policies, procedures and practices are in violation of the California Business and Professions Code and the California Health and Safety Code. That investigation was commenced in January 2014. A similar investigation involving TWC was initiated in February 2012. Charter is cooperating with these investigations. While the Company is unable to predict the outcome of these investigations, it does not expect that the outcome will have a material effect on its operations, financial condition, or cash flows. On December 19, 2011, Sprint Communications Company L.P. (“Sprint”) filed a complaint in the U.S. District Court for the District of Kansas alleging that TWC infringed certain U.S. patents purportedly relating to Voice over Internet Protocol (“VoIP”) services. A trial began on February 13, 2017. On March 3, 2017 the jury returned a verdict of $140 million against TWC and further concluded that TWC had willfully infringed Sprint’s patents. The court subsequently declined to enhance the damage award as a result of the purported willful infringement and awarded Sprint an additional $6 million , representing pre-judgment interest on the damages award. The Company has appealed the case to the United States Court of Appeals for the Federal Circuit. In addition to its appeal, the Company continues to pursue indemnity from one of its vendors and has brought a patent suit against Sprint (TC Tech, LLC v. Sprint) in the U.S. District Court for the District of Delaware implicating Sprint's LTE technology. The impact of the Sprint verdict was reflected in the measurement period adjustments to net current liabilities. The Company does not expect that the outcome of this litigation will have a material adverse effect on its operations or financial condition. The ultimate outcome of this litigation or the pursuit of indemnity against the Company’s vendor cannot be predicted. Sprint filed a second suit against Charter on December 2, 2017 in the United States District Court for the District of Delaware. This suit alleges infringement of 15 patents related to the Company's provision of VoIP services (ten of which were already asserted against Legacy TWC in the matter described above). Charter will vigorously defend this case. While the Company is unable to predict the outcome of this Sprint suit, it does not expect that this litigation will have a material effect on its operations, financial condition, or cash flows. Sprint filed a third suit against Charter on May 17, 2018 in the United States District Court for the Eastern District of Virginia. This suit alleges infringement of three patents related to the Company's video on demand services. The Company will vigorously defend this case. While the Company is unable to predict the outcome of this litigation, it does not expect that this litigation will have a material effect on its operations, financial condition, or cash flows. The New York Public Service Commission (the “PSC”) has issued multiple orders against Charter including two orders on July 27, 2018 relating to the agreement by which the PSC approved Charter’s merger with TWC. One order finds that Charter had failed to satisfy one of its merger conditions by not extending its high speed broadband network according to the PSC’s recent interpretation of which homes and businesses Charter built to should count, and it directs the initiation of a court action to impose financial and other penalties on Charter. The second order, rescinds the PSC’s January 2016 approval of Charter’s acquisition of TWC’s New York operations and directs Charter to submit a plan to effect an orderly transition to a successor provider or providers for Charter to cease operations in New York within six months of the order. As the PSC and Charter have entered into discussions with the possibility of resolving the PSC related matters, the PSC has extended such deadline on three occasions with the last extension requiring submission of an exit plan by December 24, 2018. On July 30, 2018, the PSC filed a petition for penalties and injunctive relief in the Supreme Court of the State of New York seeking penalties of $100,000 per day from June 18, 2018 and until Charter complies with the PSC order and also seeks injunctive relief from the court to enjoin failure to comply with the New York Public Service Laws or any regulation or order of the PSC. While the Company believes the actions by the PSC are without merit and intends to defend the actions vigorously and does not believe the results of the proceedings will have a material adverse effect on Charter, no assurance can be given that, should an adverse outcome result, it would not be material to its consolidated financial condition, results of operations or liquidity. The Company cannot predict the outcome of the PSC claims, including any negotiations, nor can it reasonably estimate a range of possible loss in the event of an adverse result. On October 23, 2015, the New York Office of the Attorney General (the “NY AG”) began an investigation of TWC's advertised Internet speeds and other Internet product advertising. On February 1, 2017, the NY AG filed suit in the Supreme Court for the State of New York alleging that TWC's advertising of Internet speeds was false and misleading. The suit seeks restitution and injunctive relief. The Company continues to defend itself vigorously. Although no assurances can be made that such defenses would ultimately be successful, the Company does not expect that the outcome of this litigation will have a material adverse effect on its operations, financial condition or cash flows. In addition to the Sprint litigation described above, the Company is a defendant or co-defendant in several additional lawsuits involving alleged infringement of various patents relating to various aspects of its businesses. Other industry participants are also defendants in certain of these cases. In the event that a court ultimately determines that the Company infringes on any intellectual property rights, the Company may be subject to substantial damages and/or an injunction that could require the Company or its vendors to modify certain products and services the Company offers to its subscribers, as well as negotiate royalty or license agreements with respect to the patents at issue. While the Company believes the lawsuits are without merit and intends to defend the actions vigorously, no assurance can be given that any adverse outcome would not be material to the Company’s consolidated financial condition, results of operations, or liquidity. The Company cannot predict the outcome of any such claims nor can it reasonably estimate a range of possible loss. The Company is party to other lawsuits, claims and regulatory inquiries that arise in the ordinary course of conducting its business. The ultimate outcome of these other legal matters pending against the Company cannot be predicted, and although such lawsuits and claims are not expected individually to have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity, such lawsuits could have, in the aggregate, a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity. Whether or not the Company ultimately prevails in any particular lawsuit or claim, litigation can be time consuming and costly and injure the Company’s reputation. |
Stock Compensation Plans (Notes
Stock Compensation Plans (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Stock Compensation Plans [Abstract] | |
Stock Compensation Plans | Stock Compensation Plans Charter’s 2009 Stock Incentive Plan provides for grants of nonqualified stock options, incentive stock options, stock appreciation rights, dividend equivalent rights, performance units and performance shares, share awards, phantom stock, restricted stock units and restricted stock. Directors, officers and other employees of the Company and its subsidiaries, as well as others performing consulting services for the Company, are eligible for grants under the 2009 Stock Incentive Plan. Charter granted the following equity awards for the periods presented. Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Stock options 24,200 20,900 1,490,700 1,167,100 Restricted stock 500 — 10,200 9,500 Restricted stock units 13,500 5,100 518,900 283,000 Charter stock options and restricted stock units generally cliff vest upon the three year anniversary of each grant. Certain stock options and restricted stock units vest based on achievement of stock price hurdles. Stock options generally expire ten years from the grant date and restricted stock units have no voting rights. Restricted stock generally vests one year from the date of grant. TWC restricted stock units that were converted into Charter restricted stock units generally vest 50% on each of the third and fourth anniversary of the grant date. As of September 30, 2018 , total unrecognized compensation remaining to be recognized in future periods totaled $235 million for stock options, $2 million for restricted stock and $224 million for restricted stock units and the weighted average period over which they are expected to be recognized is two years for stock options, one year for restricted stock and two years for restricted stock units. The Company recorded $71 million and $213 million of stock compensation expense for the three and nine months ended September 30, 2018 , respectively, and $64 million and $198 million or the three and nine months ended and September 30, 2017 , respectively, which is included in operating costs and expenses. The Company also recorded $5 million for the nine months ended September 30, 2018 , and $6 million and $43 million for the three and nine months ended September 30, 2017 , respectively, of expense related to accelerated vesting of equity awards of terminated employees, which is recorded in merger and restructuring costs in other operating expenses, net in the consolidated statements of operations. |
Employee Benefit Plans (Notes)
Employee Benefit Plans (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company sponsors two qualified defined benefit pension plans, the TWC Pension Plan and the TWC Union Pension Plan, that provide pension benefits to a majority of employees who were employed by TWC before the acquisition of TWC. The Company also provides a nonqualified defined benefit pension plan for certain employees under the TWC Excess Pension Plan. Pension benefits are based on formulas that reflect the employees’ years of service and compensation during their employment period. Actuarial gains or losses are changes in the amount of either the benefit obligation or the fair value of plan assets resulting from experience different from that assumed or from changes in assumptions. The Company has elected to follow a mark-to-market pension accounting policy for recording the actuarial gains or losses annually during the fourth quarter, or earlier if a remeasurement event occurs during an interim period. No future compensation increases or future service will be credited to participants of the pension plans given the frozen nature of the plans. The components of net periodic pension benefit (costs) for the three and nine months ended September 30, 2018 and 2017 are recorded in other pension benefits (costs) in the consolidated statements of operations and consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Interest cost $ (32 ) $ (33 ) $ (96 ) $ (101 ) Expected return on plan assets 52 46 156 140 Remeasurement gain (loss), net 187 (30 ) 187 (30 ) Net periodic pension benefit (costs) $ 207 $ (17 ) $ 247 $ 9 During the three and nine months ended September 30, 2018 and 2017, settlements for lump-sum distributions to qualified and nonqualified pension plan participants exceeded the estimated annual interest cost of the plans. As a result, the pension liability and pension asset values were reassessed as of September 30, 2018 and 2017 utilizing remeasurement date assumptions in accordance with the Company's mark-to-market pension accounting policy to record gains and losses in the period in which a remeasurement event occurs. The $187 million remeasurement gain recorded during the three and nine months ended September 30, 2018 was primarily driven by the effects of an increase of the discount rate from 3.68% at December 31, 2017 to 4.24% at September 30, 2018. This was partially offset by a loss to record pension assets to fair value at September 30, 2018. The $30 million remeasurement loss recorded during the three and nine months ended September 30, 2017 was primarily driven by the adoption of the revised lump sum conversion mortality tables published by the Internal Revenue Service effective January 1, 2018, and the effects of a decrease of the discount rate from 4.20% at December 31, 2016 to 3.88% at September 30, 2017. The effects of these changes were partially offset by a gain to record pension assets to fair value at September 30, 2017. The expected long-term rate of return on plan assets has decreased from 6.50% at December 31, 2017 to 5.75% at September 30, 2018 reflecting changes in the mix of plan assets. The Company made no cash contributions to the qualified pension plans during the three and nine months ended September 30, 2018 and 2017 ; however, the Company may make discretionary cash contributions to the qualified pension plans in the future. Such contributions will be dependent on a variety of factors, including current and expected interest rates, asset performance, the funded status of the qualified pension plans and management’s judgment. For the nonqualified unfunded pension plan, the Company will continue to make contributions during 2018 to the extent benefits are paid. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Recently Issued Accounting Standards [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Accounting Standards Adopted January 1, 2018 ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”) In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09 which is a comprehensive revenue recognition standard that superseded nearly all revenue recognition guidance under U.S. GAAP. ASU 2014-09 provides a single principles-based, five step model to be applied to all contracts with customers, which steps are to (1) identify the contract(s) with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when each performance obligation is satisfied. The Company adopted ASU 2014-09 as of January 1, 2018 using the modified retrospective transition method with a cumulative-effect adjustment to equity. The adoption of ASU 2014-09 did not have a material impact on the Company’s financial position or results of operation. Previously reported results will not be restated under this transition method. The adoption results in the deferral of residential and small and medium business installation revenues and enterprise commission expenses over a period of time instead of recognized immediately. The adoption also results in the reclassification of the amortization of up-front fees paid to market and serve customers who reside in residential MDUs to operating costs and expenses instead of amortized as an intangible to depreciation and amortization expense. The January 1, 2018 adoption cumulative-effect adjustment consisted of an increase to other noncurrent assets of $120 million , an increase to accounts payable and accrued liabilities of $71 million , an increase to deferred income tax liabilities of $11 million and an increase to total shareholders’ equity of $38 million . The Company applied the cumulative-effect adjustment to all contracts as of January 1, 2018. Operating results for the three and nine months ended September 30, 2018 are not materially different than results that would have been reported under guidance in effect before application of ASU 2014-09. Nature of Services Residential Services Residential customers are offered video, Internet and voice services primarily on a subscription basis. Residential customers may generally cancel their subscriptions at any time without penalty. Each subscription service provided is accounted for as a distinct performance obligation and revenue is recognized ratably over a one month service period as the subscription services are delivered. Each optional service purchased is generally accounted for as a distinct performance obligation when purchased and revenue is recognized when the service is provided. Residential video customers have the option to purchase additional tiers of services, as well as video-on-demand (“VOD”) programming and pay-per-view programming on a per-event basis. Video revenues consist primarily of revenues from the selected programming service tier, as well as VOD fees, pay-per-view fees, retransmission fees, regulatory fees, equipment service fees and video installation fees. Residential Internet customers receive data download and upload services with speeds dependent on the selected tier of service. Customers are also offered a security suite, an in-home WiFi product, and an out-of-home WiFi service. Internet revenues consist primarily of data services, WiFi service fees and Internet installation fees. Residential voice customers receive unlimited local and long distance calling to United States, Canada, Mexico, and Puerto Rico, voicemail, call waiting, caller ID, call forward and other features. Customers may also purchase international calling either by the minute, or through packages of minutes per month. Voice revenues consist primarily of voice services and regulatory fees. Small and Medium Business Small and medium business customers are offered video, Internet and voice services similar to those provided to residential customers. Small and medium business customers may generally cancel their subscriptions at any time without penalty. Each subscription service provided is accounted for as a distinct performance obligation and revenue is recognized ratably over a one month service period as the subscription services are delivered. Enterprise Solutions Enterprise Solutions include fiber-delivered communications and managed information technology solutions to larger businesses, as well as high-capacity last-mile data connectivity services to mobile and wireline carriers, Internet service providers, and other competitive carriers on a wholesale basis. Services are primarily offered on a subscription basis with a contractually specified and non-cancelable service period. The non-cancelable contract terms for enterprise services generally range from two to seven years. Each subscription service provided is accounted for as a distinct performance obligation and revenue is recognized ratably over the contract period as the subscription services are delivered. Enterprise subscription services are billed as monthly recurring charges to customers and related installation services, if applicable, are billed upon completion of the customer installation. Installation services are not accounted for as distinct performance obligations, but rather a component of the connectivity services, and therefore upfront installation fees are deferred and recognized as revenue over the related contract period. Advertising Services The Company offers local, regional and national businesses the opportunity to advertise in individual and multiple markets on cable television networks and digital outlets. Placement of advertising is accounted for as a distinct performance obligation and revenue is recognized at the point in time when the advertising is distributed. In some markets, the Company has formed advertising interconnects or entered into representation agreements with other video distributors, under which the Company sells advertising on behalf of those distributors. In other markets, the Company has entered into representation agreements under which another operator in the area will sell advertising on the Company’s behalf. For representation arrangements in which the Company controls the sale of advertising and acts as the principal to the transaction, the Company recognizes revenue earned from the advertising customer on a gross basis and the amount remitted to the distributor as an operating expense. For other representation arrangements in which the Company does not control the sale of advertising and acts as an agent to the transaction, the Company recognizes revenue net of any fee remitted to the distributor. Mobile At the end of the second quarter of 2018, the Company launched its mobile product which is available to residential customers subscribing to its Internet service. Mobile services are sold under an unlimited data plan or a by-the-gig data usage plan and revenue is recognized as the services are provided. Customers can purchase mobile devices and accessory products and have the option to pay for devices under an installment plan. Revenue is recognized from the sale of devices at the time of shipment. The Company’s revenues by product line are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Video $ 4,332 $ 4,208 $ 12,987 $ 12,401 Internet 3,809 3,555 11,286 10,464 Voice 512 611 1,599 1,955 Residential revenue 8,653 8,374 25,872 24,820 Small and medium business 922 896 2,737 2,652 Enterprise 632 594 1,881 1,761 Commercial revenue 1,554 1,490 4,618 4,413 Advertising sales 440 373 1,223 1,091 Mobile 17 — 17 — Other 228 221 673 655 $ 10,892 $ 10,458 $ 32,403 $ 30,979 Fees imposed on the Company by various governmental authorities are passed through on a monthly basis to the Company’s customers and are periodically remitted to authorities. Fees of $239 million and $730 million for the three and nine months ended September 30, 2018 , respectively, and $244 million and $717 million for the three and nine months ended September 30, 2017 , respectively, are reported in video, voice, mobile and commercial revenues, on a gross basis with a corresponding operating expense because the Company is acting as a principal. Certain taxes, such as sales taxes imposed on the Company’s customers, collected and remitted to state and local authorities, are recorded on a net basis because the Company is acting as an agent in such situation. A significant portion of our revenue is derived from customers who may generally cancel their subscriptions at any time without penalty. As such, the amount of revenue related to unsatisfied performance obligations is not necessarily indicative of the future revenue to be recognized from our existing customer base. Revenue from customers with a contractually specified term and non-cancelable service period will be recognized over the term of such contracts, which is generally two to seven years for our enterprise contracts. Significant Judgments The Company often provides multiple services to a customer. Provision of customer premise equipment, installation services, and additional service tiers may have a significant level of integration and interdependency with the subscription video, Internet, voice, or connectivity services provided. Judgment is required to determine whether provision of customer premise equipment, installation services, and additional service tiers are considered distinct and accounted for separately, or not distinct and accounted for together with the subscription services. Allocation of the transaction price to the distinct performance obligations in bundled residential service subscriptions requires judgment. The transaction price for a bundle of residential services is frequently less than the sum of the standalone selling prices of each individual service. The Company allocates the residential services bundle discount among the services to which the discount relates based on the relative standalone selling prices of those services. Standalone selling prices for the Company’s residential video and Internet services are directly observable, while standalone selling price for the Company’s residential voice service is estimated using the adjusted market assessment approach which relies upon information from peers and competitors who sell residential voice services individually. The Company believes residential and small and medium business non-refundable upfront installation fees charged to customers result in a material right to renew the contract as such fees are not required to be paid upon subsequent renewals. The residential and small and medium business upfront fee is deferred over the period the fee remains material to the customer, which the Company has estimated to be approximately six months. Estimation of the period the fee remains material to the customer requires consideration of both quantitative and qualitative factors including average installation fee, average revenue per customer, and customer behavior, among others. Contract Liabilities Timing of revenue recognition may differ from the timing of invoicing to customers. Residential, small and medium business, and enterprise customers are invoiced for subscription services in advance of the service period. Deferred revenue liabilities, or contract liabilities, are recorded when the Company collects payments in advance of performing the services. Deferred revenue liabilities, or contract liabilities, are also recorded when the Company invoices customers upfront for installation services that are recognized as revenue over time. Residential and small and medium business installation revenues are deferred over the period the fee remains material to the customer. Enterprise installation revenues are deferred using a portfolio approach over the average contract life of each enterprise service category. As of September 30, 2018 , current deferred revenue liabilities consisting of refundable customer prepayments of $410 million and upfront installation fees of $88 million were included in accounts payable and accrued liabilities. As of September 30, 2018 , long-term deferred revenue liabilities consisting of enterprise upfront installation fees of $34 million were included in other long-term liabilities. Contract Costs The Company recognizes an asset for incremental costs of obtaining a contract with a customer if the amortization period of those costs is expected to be longer than one year and the costs are expected to be recovered. Enterprise sales commission costs meet the requirements to be deferred and, as a result, are recognized using a portfolio approach over a commission expense weighted-average enterprise contract period. Deferred enterprise commission costs are included in other noncurrent assets in the consolidated balance sheet and totaled $138 million as of September 30, 2018 . As the amortization period of residential and small and medium business commissions costs is less than one year, the Company applies the practical expedient that allows such costs to be expensed as incurred. The Company has determined that the amortization period associated with residential and small and medium business commission costs is less than one year based on qualitative and quantitative factors. The Company recognizes an asset for costs incurred to fulfill a contract when those costs are directly related to services provided under the contract, generate or enhance resources of the entity that will be used in performing service obligations under the contract, and are expected to be recovered. Up-front fees paid to MDUs, such as apartment building owners, in order to gain access to market and serve tenants who reside within the MDU meet the requirements to be deferred and, as a result, are recognized over the term of the MDU contract. Deferred upfront MDU fees are amortized on a straight-line basis and are included in other noncurrent assets in the consolidated balance sheet and totaled $266 million as of September 30, 2018 . Amortization expense of $16 million and $46 million was included in regulatory, connectivity and produced content within operating expenses in the consolidated statements of operations for the three and nine months ended September 30, 2018 , respectively. Residential and small and medium business installation costs not capitalized into property, plant and equipment are expensed as incurred under cable industry-specific guidance. ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”) In August 2016, the FASB issued ASU 2016-15 which clarifies how entities should classify cash receipts and cash payments related to eight specific cash flow matters on the statement of cash flows, with the objective of reducing existing diversity in practice. The Company adopted ASU 2016-15 on January 1, 2018. The adoption of ASU 2016-15 did not have a material impact to the Company’s consolidated financial statements. ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory ("ASU 2016-16") In October 2016, the FASB issued ASU 2016-16 which requires both the selling entity and the buying entity in an intra-entity asset transfer (other than the transfer of inventory) to immediately recognize the current and deferred income tax consequences of the transaction. Income tax effects of intra-entity transfers of inventory will continue to be deferred until the inventory has been sold to a third party. The Company adopted the standard on January 1, 2018, using a modified retrospective approach, with the cumulative-effect adjustment recognized directly to shareholders equity for the income tax effects of intra-entity asset transfers (other than transfers of inventory) that happened before the adoption date. The Company identified a $31 million increase to total shareholders' equity and corresponding increase to deferred tax assets related to the adoption, which was recorded during the three months ended September 30, 2018. ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”) In November 2016, the FASB issued ASU 2016-18 which requires that amounts generally described as restricted cash to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 does not provide a definition of restricted cash or restricted cash equivalents. The Company adopted ASU 2016-18 on January 1, 2018. The new guidance will only be applicable to amounts described by the Company as restricted cash. As a result of the adoption of ASU 2016-18, $48 million of restricted cash was included in ending period cash, cash equivalents and restricted cash in the Company's consolidated statement of cash flow for the nine months ended September 30, 2018 . The Company's consolidated statement of cash flows for the year ended December 31, 2016 will also be recast to present $22.3 billion of restricted cash as beginning of period cash, cash equivalents and restricted cash. ASU No. 2017-09, Scope of Modification Accounting (“ASU 2017-09”) In May 2017, the FASB issued ASU 2017-09 which amends the scope of modification accounting for share-based payment arrangements. The ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting. ASU 2017-09 is applied prospectively to awards modified on or after the effective date. The Company adopted ASU 2017-09 on January 1, 2018. The adoption of ASU 2017-09 did not have a material impact to the Company’s consolidated financial statements. Accounting Standards Not Yet Adopted ASU No. 2016-02, Leases (“ASU 2016-02”) In February 2016, the FASB issued ASU 2016-02 which requires lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. Lessees are allowed to account for short-term leases (i.e., leases with a term of 12 months or less) off-balance sheet, consistent with current operating lease accounting. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. The Company plans to adopt ASU 2016-02 using the modified retrospective approach with a cumulative-effect adjustment recorded at the beginning of the period of adoption (January 1, 2019). Therefore, upon adoption, the Company will recognize and measure operating leases on the consolidated balance sheet without revising comparative period information or disclosure. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. The Company anticipates electing the transition package practical expedient which would eliminate the reassessment of past leases, classification and initial direct costs. The Company anticipates adopting the land easements practical expedient which allows adopters the ability not to retrospectively treat land easements as leases; however, must apply lease accounting prospectively to land easements if they meet the definition of a lease. The Company’s adoption process of ASU 2016-02 is ongoing, including evaluating and quantifying the impact on its consolidated financial statements, identifying the population of leases (and embedded leases), implementing a selected technology solution and collecting and validating lease data. Although the Company has not yet completed the evaluation of the new standard, or quantified its impact, the Company expects its lease obligations designated as operating leases (as disclosed in Note 20 to the audited consolidated financial statements in its most recent Annual Report on Form 10-K) will be reported on the consolidated balance sheet upon adoption. ASU No. 2017-04, Simplifying the Test for Goodwill Impairment (“ASU 2017-04”) In January 2017, the FASB issued ASU 2017-04 which eliminates step two from the goodwill impairment test. Under the new standard, to the extent the carrying amount of a reporting unit exceeds the fair value, the Company will record an impairment charge equal to the difference. The impairment charge recognized should not exceed the total amount of goodwill allocated to the reporting unit. ASU 2017-04 will be effective for interim and annual periods beginning after December 15, 2019 (January 1, 2020 for the Company). Early adoption is permitted for interim or annual goodwill impairment tests performed after January 1, 2017. The Company is currently in the process of evaluating the impact that the adoption of ASU 2017-04 will have on its consolidated financial statements. ASU No. 2018-13, Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13") In August 2018, the FASB issued ASU 2018-13 which amends fair value measurement disclosure requirements aiming to improve the overall usefulness of disclosures to financial statement users and reduce unnecessary costs to companies when preparing the disclosures. ASU 2018-13 will be effective for interim and annual periods beginning after December 15, 2019 (January 1, 2020 for the Company). Early adoption is permitted. The Company does not expect the adoption of ASU 2017-13 to have a material impact on its consolidated financial statements. ASU No. 2018-14, Changes to the Disclosure Requirements for Defined Benefit Plans ("ASU 2018-14") In August 2018, the FASB issued ASU 2018-14 which amends Accounting Standards Codification 715 to add, remove, and clarify disclosure requirements related to defined benefit pension and other postretirement plans. ASU 2018-14 will be effective for interim and annual periods beginning after December 15, 2021 (January 1, 2022 for the Company). Early adoption is permitted. The Company does not expect the adoption of ASU 2017-14 to have a material impact on its consolidated financial statements. ASU No. 2018-15, Customer’s Accounting for Implementation Costs in a Cloud Computing Arrangement That Is a Service Contract ("ASU 2018-15") In August 2018, the FASB issued ASU 2018-15 which requires upfront implementation costs incurred in a cloud computing arrangement (or hosting arrangement) that is a service contract to be amortized to hosting expense over the term of the arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. ASU 2018-15 will be effective for annual and interim periods beginning after December 15, 2019 (January 1, 2020 for the Company). Early adoption is permitted. The Company is currently in the process of evaluating the impact that the adoption of ASU 2018-15 will have on its consolidated financial statements. |
Consolidating Schedules (Notes)
Consolidating Schedules (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Consolidating Schedules [Abstract] | |
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 |
Accounting for Derivative Ins_2
Accounting for Derivative Instruments and Hedging Activities (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting for Derivative Instruments and Hedging Activities [Abstract] | |
Derivatives Policy | The Company uses derivative instruments to manage foreign exchange risk on the Sterling Notes, and does not hold or issue derivative instruments for speculative trading purposes. |
Franchises, Goodwill and Othe_2
Franchises, Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Franchises, Goodwill and Other Intangible Assets [Abstract] | |
Indefinite-lived and Finite-lived Intangible Assets | Indefinite-lived and finite-lived intangible assets consist of the following as of September 30, 2018 and December 31, 2017 : September 30, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Indefinite-lived intangible assets: Franchises $ 67,319 $ — $ 67,319 $ 67,319 $ — $ 67,319 Goodwill 29,554 — 29,554 29,554 — 29,554 Trademarks 159 — 159 159 — 159 $ 97,032 $ — $ 97,032 $ 97,032 $ — $ 97,032 Finite-lived intangible assets: Customer relationships $ 18,229 $ (8,093 ) $ 10,136 $ 18,229 $ (6,278 ) $ 11,951 Other intangible assets 397 (82 ) 315 731 (201 ) 530 $ 18,626 $ (8,175 ) $ 10,451 $ 18,960 $ (6,479 ) $ 12,481 |
Expected Future Amortization Expense | The Company expects amortization expense on its finite-lived intangible assets will be as follows: Three months ended December 31, 2018 $ 582 2019 2,153 2020 1,871 2021 1,596 2022 1,326 Thereafter 2,923 $ 10,451 |
Real Estate Investments throu_2
Real Estate Investments through Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Real Estate Investment through Variable Interest Entities [Abstract] | |
Real Estate Investments through Variable Interest Entities | As the Company has determined the SPE is a variable interest entity ("VIE") of which it became the primary beneficiary upon the effectiveness of the arrangement, the Company has consolidated the assets and liabilities of the SPE in its consolidated balance sheet as of September 30, 2018 as follows. September 30, 2018 Assets Current assets $ 3 Restricted cash $ 48 Property, plant and equipment $ 122 Liabilities Other long-term liabilities $ 173 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consist of the following as of September 30, 2018 and December 31, 2017 : September 30, 2018 December 31, 2017 Accounts payable – trade $ 604 $ 740 Deferred revenue 498 395 Accrued liabilities: Programming costs 2,055 1,907 Labor 1,012 1,109 Capital expenditures 1,318 1,935 Interest 1,011 1,054 Taxes and regulatory fees 575 556 Property and casualty 426 408 Other 1,012 941 $ 8,511 $ 9,045 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt Summary | Long-term debt consists of the following as of September 30, 2018 and December 31, 2017 : September 30, 2018 December 31, 2017 Principal Amount Accreted Value Principal Amount Accreted Value CCO Holdings, LLC: 5.250% senior notes due March 15, 2021 $ 500 $ 498 $ 500 $ 497 5.250% senior notes due September 30, 2022 1,250 1,237 1,250 1,235 5.125% senior notes due February 15, 2023 1,000 993 1,000 993 4.000% senior notes due March 1, 2023 500 496 500 495 5.125% senior notes due May 1, 2023 1,150 1,143 1,150 1,143 5.750% senior notes due September 1, 2023 500 497 500 496 5.750% senior notes due January 15, 2024 1,000 993 1,000 992 5.875% senior notes due April 1, 2024 1,700 1,688 1,700 1,687 5.375% senior notes due May 1, 2025 750 745 750 745 5.750% senior notes due February 15, 2026 2,500 2,466 2,500 2,464 5.500% senior notes due May 1, 2026 1,500 1,490 1,500 1,489 5.875% senior notes due May 1, 2027 800 795 800 794 5.125% senior notes due May 1, 2027 3,250 3,218 3,250 3,216 5.000% senior notes due February 1, 2028 2,500 2,465 2,500 2,462 Charter Communications Operating, LLC: 3.579% senior notes due July 23, 2020 2,000 1,991 2,000 1,988 4.464% senior notes due July 23, 2022 3,000 2,981 3,000 2,977 Senior floating rate notes due February 1, 2024 900 903 — — 4.500% senior notes due February 1, 2024 1,100 1,091 — — 4.908% senior notes due July 23, 2025 4,500 4,465 4,500 4,462 3.750% senior notes due February 15, 2028 1,000 986 1,000 985 4.200% senior notes due March 15, 2028 1,250 1,239 1,250 1,238 6.384% senior notes due October 23, 2035 2,000 1,982 2,000 1,981 5.375% senior notes due April 1, 2038 800 785 — — 6.484% senior notes due October 23, 2045 3,500 3,466 3,500 3,466 5.375% senior notes due May 1, 2047 2,500 2,506 2,500 2,506 5.750% senior notes due April 1, 2048 1,700 1,683 — — 6.834% senior notes due October 23, 2055 500 495 500 495 Credit facilities 9,576 9,493 9,479 9,387 Time Warner Cable, LLC: 6.750% senior notes due July 1, 2018 — — 2,000 2,045 8.750% senior notes due February 14, 2019 1,250 1,279 1,250 1,337 8.250% senior notes due April 1, 2019 2,000 2,060 2,000 2,148 5.000% senior notes due February 1, 2020 1,500 1,551 1,500 1,579 4.125% senior notes due February 15, 2021 700 723 700 730 4.000% senior notes due September 1, 2021 1,000 1,036 1,000 1,045 5.750% sterling senior notes due June 2, 2031 (a) 815 876 845 912 6.550% senior debentures due May 1, 2037 1,500 1,682 1,500 1,686 7.300% senior debentures due July 1, 2038 1,500 1,782 1,500 1,788 6.750% senior debentures due June 15, 2039 1,500 1,720 1,500 1,724 5.875% senior debentures due November 15, 2040 1,200 1,257 1,200 1,258 5.500% senior debentures due September 1, 2041 1,250 1,258 1,250 1,258 5.250% sterling senior notes due July 15, 2042 (b) 847 817 879 847 4.500% senior debentures due September 15, 2042 1,250 1,139 1,250 1,137 Time Warner Cable Enterprises LLC: 8.375% senior debentures due March 15, 2023 1,000 1,202 1,000 1,232 8.375% senior debentures due July 15, 2033 1,000 1,302 1,000 1,312 Total debt 71,538 72,474 69,003 70,231 Less current portion: 6.750% senior notes due July 1, 2018 — — (2,000 ) (2,045 ) 8.750% senior notes due February 14, 2019 (1,250 ) (1,279 ) — — 8.250% senior notes due April 1, 2019 (2,000 ) (2,060 ) — — Long-term debt $ 68,288 $ 69,135 $ 67,003 $ 68,186 (a) Principal amount includes £625 million remeasured at $815 million and $845 million as of September 30, 2018 and December 31, 2017 , respectively, using the exchange rate at the respective dates. (b) Principal amount includes £650 million remeasured at $847 million and $879 million as of September 30, 2018 and December 31, 2017 , respectively, using the exchange rate at the respective dates. |
Schedule of Extinguishment of Debt | Loss on extinguishment of debt consisted of the following for the nine months ended September 30, 2017 . Nine Months Ended September 30, 2017 CCO Holdings notes redemption $ (33 ) Time Warner Cable, LLC notes redemption (1 ) Charter Operating credit facility refinancing (1 ) $ (35 ) |
Common Stock (Tables)
Common Stock (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Common Stock [Abstract] | |
Class of Treasury Stock | The following represents the Company's purchase of Charter Class A common stock and the effect on the consolidated statements of cash flows during the three and nine months ended September 30, 2018 and 2017 . Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Shares $ Shares $ Shares $ Shares $ Share buybacks 3,046,346 $ 929 9,521,958 $ 3,513 10,349,639 $ 3,142 21,940,797 $ 7,611 Income tax withholding 12,703 4 32,283 12 209,394 72 424,148 137 Exercise cost 8,785 1,433 15,200 41,978 3,067,834 $ 933 9,555,674 $ 3,525 10,574,233 $ 3,214 22,406,923 $ 7,748 |
Noncontrolling Interest (Tables
Noncontrolling Interest (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Schedule of Noncontrolling Interest Purchased | The following table represents Charter Holdings' purchase of Charter Holdings common units from A/N pursuant to the Letter Agreement (see Note 14) and the effect on total shareholders' equity during the three and nine months ended September 30, 2018 and 2017 . Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Number of units purchased 495,447 1,385,404 1,546,475 2,700,849 Average price per unit $ 292.81 $ 355.83 $ 306.11 $ 341.49 Amount of units purchased $ 145 $ 493 $ 473 $ 922 Decrease in noncontrolling interest based on carrying value $ (122 ) $ (292 ) $ (376 ) $ (582 ) Decrease in additional paid-in-capital, net of tax $ (17 ) $ (123 ) $ (73 ) $ (209 ) |
Schedule of effects on statement of shareholders' equity due to ownership changes | Total shareholders' equity was also adjusted during the three and nine months ended September 30, 2018 and 2017 due to the changes in Charter Holdings' ownership as follows. Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Decrease in noncontrolling interest $ (10 ) $ (170 ) $ (53 ) $ (336 ) Increase in additional paid-in-capital, net of tax $ 7 $ 106 $ 39 $ 208 |
Accounting for Derivative Ins_3
Accounting for Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting for Derivative Instruments and Hedging Activities [Abstract] | |
Income Statement Effects of Financial Instruments | The effect of financial instruments on the consolidated statements of operations is presented in the table below. Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Gain (Loss) on Financial Instruments, Net: Change in fair value of cross-currency derivative instruments (10 ) 68 $ (63 ) $ 126 Foreign currency remeasurement of Sterling Notes to U.S. dollars 22 (50 ) 63 (141 ) Other, net — (1 ) — — $ 12 $ 17 $ — $ (15 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Measurements [Abstract] | |
Fair Value of Assets and Liabilities Measured on a Recurring Basis | Financial instruments accounted for at fair value on a recurring basis are presented in the table below. September 30, 2018 December 31, 2017 Level 1 Level 2 Level 1 Level 2 Assets Money market funds $ 15 $ — $ 291 $ — Liabilities Cross-currency derivative instruments $ — $ 88 $ — $ 25 |
Carrying Value and Fair Value of Debt | A summary of the carrying value and fair value of debt as of September 30, 2018 and December 31, 2017 is as follows: September 30, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Senior notes and debentures $ 62,981 $ 62,966 $ 60,844 $ 63,443 Credit facilities $ 9,493 $ 9,577 $ 9,387 $ 9,440 |
Operating Costs and Expenses (T
Operating Costs and Expenses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Operating Costs and Expenses [Abstract] | |
Operating Costs and Expenses | Operating costs and expenses, exclusive of items shown separately in the consolidated statements of operations, consist of the following for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Programming $ 2,778 $ 2,699 $ 8,333 $ 7,952 Regulatory, connectivity and produced content 546 523 1,639 1,553 Costs to service customers 1,854 1,823 5,492 5,385 Marketing 790 761 2,310 2,286 Mobile 94 — 135 — Other 950 897 2,812 2,681 $ 7,012 $ 6,703 $ 20,721 $ 19,857 |
Other Operating Expenses, Net_2
Other Operating Expenses, Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Other Operating Expenses, Net [Abstract] | |
Other Operating Expenses, Net | Other operating expenses, net consist of the following for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Merger and restructuring costs $ 14 $ 67 $ 90 $ 293 Special charges, net — 80 35 86 (Gain) loss on sale of assets, net 4 (2 ) (9 ) (5 ) $ 18 $ 145 $ 116 $ 374 |
Accrued Merger and Restructuring Costs by Type of Cost | Changes in accruals for merger and restructuring costs are presented below: Employee Retention Costs Employee Termination Costs Transaction and Advisory Costs Other Costs Total Liability, December 31, 2016 $ 7 $ 244 $ 25 $ — $ 276 Costs incurred 4 226 4 68 302 Cash paid (10 ) (298 ) (12 ) (60 ) (380 ) Remaining liability, December 31, 2017 1 172 17 8 198 Costs incurred — 59 1 25 85 Cash paid — (155 ) — (23 ) (178 ) Remaining liability, September 30, 2018 $ 1 $ 76 $ 18 $ 10 $ 105 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings (Loss) Per Share [Abstract] | |
Earnings Per Share | The following is the computation of diluted earnings per common share for the three and nine months ended September 30, 2018 and 2017 . Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Numerator: Net income attributable to Charter shareholders $ 493 $ 48 $ 934 $ 342 Denominator: Weighted average common shares outstanding, basic 230,554,633 253,923,805 234,159,830 262,074,603 Effect of dilutive securities: Assumed exercise or issuance of shares relating to stock plans 3,052,781 4,418,046 3,184,094 4,288,999 Weighted average common shares outstanding, diluted 233,607,414 258,341,851 237,343,924 266,363,602 Basic earnings per common share attributable to Charter shareholders $ 2.14 $ 0.19 $ 3.99 $ 1.31 Diluted earnings per common share attributable to Charter shareholders $ 2.11 $ 0.19 $ 3.93 $ 1.29 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Stock Compensation Plans [Abstract] | |
Equity Award Grants | Charter granted the following equity awards for the periods presented. Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Stock options 24,200 20,900 1,490,700 1,167,100 Restricted stock 500 — 10,200 9,500 Restricted stock units 13,500 5,100 518,900 283,000 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Employee Benefit Plans [Abstract] | |
Net Periodic Pension Benefit | The components of net periodic pension benefit (costs) for the three and nine months ended September 30, 2018 and 2017 are recorded in other pension benefits (costs) in the consolidated statements of operations and consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Interest cost $ (32 ) $ (33 ) $ (96 ) $ (101 ) Expected return on plan assets 52 46 156 140 Remeasurement gain (loss), net 187 (30 ) 187 (30 ) Net periodic pension benefit (costs) $ 207 $ (17 ) $ 247 $ 9 |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Recently Issued Accounting Standards [Abstract] | |
Schedule of revenues by product line | The Company’s revenues by product line are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Video $ 4,332 $ 4,208 $ 12,987 $ 12,401 Internet 3,809 3,555 11,286 10,464 Voice 512 611 1,599 1,955 Residential revenue 8,653 8,374 25,872 24,820 Small and medium business 922 896 2,737 2,652 Enterprise 632 594 1,881 1,761 Commercial revenue 1,554 1,490 4,618 4,413 Advertising sales 440 373 1,223 1,091 Mobile 17 — 17 — Other 228 221 673 655 $ 10,892 $ 10,458 $ 32,403 $ 30,979 |
Consolidating Schedules (Tables
Consolidating Schedules (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Consolidating Schedules [Abstract] | |
Consolidating Schedules | 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 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details) | 9 Months Ended |
Sep. 30, 2018 | |
Organization and Basis of Presentation [Abstract] | |
Number of reportable segments | 1 |
Franchises, Goodwill and Othe_3
Franchises, Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Indefinite-lived Intangible Assets: | |||||
Goodwill | $ 29,554 | $ 29,554 | $ 29,554 | ||
Indefinite-lived intangible assets and goodwill | 97,032 | 97,032 | 97,032 | ||
Finite-lived Intangible Assets: | |||||
Gross carrying amount | 18,626 | 18,626 | 18,960 | ||
Accumulated Amortization | (8,175) | (8,175) | (6,479) | ||
Net Carrying Amount | 10,451 | 10,451 | 12,481 | ||
Amortization expense | 583 | $ 664 | 1,800 | $ 2,100 | |
Three months ended December 31, 2018 | 582 | 582 | |||
2,019 | 2,153 | 2,153 | |||
2,020 | 1,871 | 1,871 | |||
2,021 | 1,596 | 1,596 | |||
2,022 | 1,326 | 1,326 | |||
Thereafter | 2,923 | 2,923 | |||
Franchises [Member] | |||||
Indefinite-lived Intangible Assets: | |||||
Indefinite-lived intangible assets | 67,319 | 67,319 | 67,319 | ||
Trademarks [Member] | |||||
Indefinite-lived Intangible Assets: | |||||
Indefinite-lived intangible assets | 159 | 159 | 159 | ||
Customer Relationships [Member] | |||||
Finite-lived Intangible Assets: | |||||
Gross carrying amount | 18,229 | 18,229 | 18,229 | ||
Accumulated Amortization | (8,093) | (8,093) | (6,278) | ||
Net Carrying Amount | 10,136 | 10,136 | 11,951 | ||
Other Intangible Assets [Member] | |||||
Finite-lived Intangible Assets: | |||||
Gross carrying amount | 397 | 397 | 731 | ||
Accumulated Amortization | (82) | (82) | (201) | ||
Net Carrying Amount | $ 315 | $ 315 | $ 530 |
Real Estate Investments throu_3
Real Estate Investments through Variable Interest Entities (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | |||
RESTRICTED CASH | $ 48 | $ 0 | |
Borrowings from real estate investments through variable interest entities | 170 | $ 0 | |
Distributions to variable interest entities noncontrolling interest | 107 | 0 | |
Real estate investment through variable interest entity | 15 | $ 0 | |
Contractual obligation under the mortgage note liability | 172 | ||
Current assets [Member] | |||
Variable Interest Entity [Line Items] | |||
Property, plant and equipment | 3 | ||
Restricted cash [Member] | |||
Variable Interest Entity [Line Items] | |||
RESTRICTED CASH | 48 | ||
Property, Plant and Equipment [Member] | |||
Variable Interest Entity [Line Items] | |||
Property, plant and equipment | 122 | ||
Other long-term liabilities [Member] | |||
Variable Interest Entity [Line Items] | |||
Other long-term liabilities | $ 173 | ||
Single-asset special purpose entity (SPE) [Member] | |||
Variable Interest Entity [Line Items] | |||
Stated interest rate (percentage) | 5.612% | ||
Mortgage note liability [Member] | |||
Variable Interest Entity [Line Items] | |||
Other long-term liabilities | $ 170 | ||
Noncontrolling Interest [Member] | |||
Variable Interest Entity [Line Items] | |||
Other long-term liabilities | $ 3 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Accounts payable - trade | $ 604 | $ 740 |
Deferred revenue | 498 | 395 |
Accrued liabilities: | ||
Programming costs | 2,055 | 1,907 |
Labor | 1,012 | 1,109 |
Capital expenditures | 1,318 | 1,935 |
Interest | 1,011 | 1,054 |
Taxes and regulatory fees | 575 | 556 |
Property and casualty | 426 | 408 |
Other | 1,012 | 941 |
Total accounts payable and accrued liabilities | $ 8,511 | $ 9,045 |
Long-Term Debt (Details)
Long-Term Debt (Details) £ in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018GBP (£) | Sep. 30, 2018USD ($) | Aug. 01, 2018USD ($) | Jul. 01, 2018USD ($) | Dec. 31, 2017USD ($) | |
Long-term Debt: | |||||||||
Principal amount | $ 71,538 | $ 69,003 | |||||||
Accreted value | 72,474 | 70,231 | |||||||
Accreted value, current portion | (3,339) | (2,045) | |||||||
Principal amount, noncurrent portion | 68,288 | 67,003 | |||||||
Accreted value, noncurrent portion | 69,135 | 68,186 | |||||||
Loss on extinguishment of debt | $ 0 | $ 0 | $ 0 | $ (35) | |||||
Credit Facilities [Member] | |||||||||
Long-term Debt: | |||||||||
Accreted value | 9,493 | 9,387 | |||||||
CCO Holdings [Member] | |||||||||
Long-term Debt: | |||||||||
Accreted value, current portion | 0 | 0 | |||||||
Accreted value, noncurrent portion | 18,724 | 18,708 | |||||||
Loss on extinguishment of debt | (33) | ||||||||
CCO Holdings [Member] | 5.250% Senior Notes Due March 15, 2021 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | 500 | 500 | |||||||
Accreted value | $ 498 | 497 | |||||||
Stated interest rate (percentage) | 5.25% | 5.25% | |||||||
CCO Holdings [Member] | 5.250% Senior Notes Due September 30, 2022 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 1,250 | 1,250 | |||||||
Accreted value | $ 1,237 | 1,235 | |||||||
Stated interest rate (percentage) | 5.25% | 5.25% | |||||||
CCO Holdings [Member] | 5.125% Senior Notes Due February 15, 2023 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 1,000 | 1,000 | |||||||
Accreted value | $ 993 | 993 | |||||||
Stated interest rate (percentage) | 5.125% | 5.125% | |||||||
CCO Holdings [Member] | 4.000% Senior Notes Due March 1, 2023 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 500 | 500 | |||||||
Accreted value | $ 496 | 495 | |||||||
Stated interest rate (percentage) | 4.00% | 4.00% | |||||||
CCO Holdings [Member] | 5.125% Senior Notes Due May 1, 2023 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 1,150 | 1,150 | |||||||
Accreted value | $ 1,143 | 1,143 | |||||||
Stated interest rate (percentage) | 5.125% | 5.125% | |||||||
CCO Holdings [Member] | 5.750% Senior Notes Due September 1, 2023 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 500 | 500 | |||||||
Accreted value | $ 497 | 496 | |||||||
Stated interest rate (percentage) | 5.75% | 5.75% | |||||||
CCO Holdings [Member] | 5.750% Senior Notes Due January 15, 2024 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 1,000 | 1,000 | |||||||
Accreted value | $ 993 | 992 | |||||||
Stated interest rate (percentage) | 5.75% | 5.75% | |||||||
CCO Holdings [Member] | 5.875% Senior Notes Due April 1, 2024 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 1,700 | 1,700 | |||||||
Accreted value | $ 1,688 | 1,687 | |||||||
Stated interest rate (percentage) | 5.875% | 5.875% | |||||||
CCO Holdings [Member] | 5.375% Senior Notes Due May 1, 2025 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 750 | 750 | |||||||
Accreted value | $ 745 | 745 | |||||||
Stated interest rate (percentage) | 5.375% | 5.375% | |||||||
CCO Holdings [Member] | 5.750% Senior Notes Due February 15, 2026 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 2,500 | 2,500 | |||||||
Accreted value | $ 2,466 | 2,464 | |||||||
Stated interest rate (percentage) | 5.75% | 5.75% | |||||||
CCO Holdings [Member] | 5.500% Senior Notes Due May 1, 2026 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 1,500 | 1,500 | |||||||
Accreted value | $ 1,490 | 1,489 | |||||||
Stated interest rate (percentage) | 5.50% | 5.50% | |||||||
CCO Holdings [Member] | 5.875% Senior Notes Due May 1, 2027 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 800 | 800 | |||||||
Accreted value | $ 795 | 794 | |||||||
Stated interest rate (percentage) | 5.875% | 5.875% | |||||||
CCO Holdings [Member] | 5.125% Senior Notes Due May 1, 2027 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 3,250 | 3,250 | |||||||
Accreted value | $ 3,218 | 3,216 | |||||||
Stated interest rate (percentage) | 5.125% | 5.125% | |||||||
CCO Holdings [Member] | 5.000% Senior Notes Due February 1, 2028 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 2,500 | 2,500 | |||||||
Accreted value | $ 2,465 | 2,462 | |||||||
Stated interest rate (percentage) | 5.00% | 5.00% | |||||||
Charter Operating [Member] | |||||||||
Long-term Debt: | |||||||||
Loss on extinguishment of debt | (1) | ||||||||
Charter Operating [Member] | 3.579% Senior Notes Due July 23, 2020 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 2,000 | 2,000 | |||||||
Accreted value | $ 1,991 | 1,988 | |||||||
Stated interest rate (percentage) | 3.579% | 3.579% | |||||||
Charter Operating [Member] | 4.464% Senior Notes Due July 23, 2022 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 3,000 | 3,000 | |||||||
Accreted value | $ 2,981 | 2,977 | |||||||
Stated interest rate (percentage) | 4.464% | 4.464% | |||||||
Charter Operating [Member] | Senior Floating Rate Notes due February 1, 2024 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 900 | $ 500 | $ 400 | 0 | |||||
Accreted value | 903 | 0 | |||||||
Debt instrument issue price (percentage) | 101.479% | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.65% | ||||||||
Charter Operating [Member] | 4.500% Senior Notes due February 1, 2024 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | 1,100 | 0 | |||||||
Accreted value | $ 1,091 | 0 | |||||||
Stated interest rate (percentage) | 4.50% | 4.50% | |||||||
Debt instrument issue price (percentage) | 99.893% | ||||||||
Charter Operating [Member] | 4.908% Senior Notes Due July 23, 2025 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 4,500 | 4,500 | |||||||
Accreted value | $ 4,465 | 4,462 | |||||||
Stated interest rate (percentage) | 4.908% | 4.908% | |||||||
Charter Operating [Member] | 3.750% Senior Notes Due February 15, 2028 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 1,000 | 1,000 | |||||||
Accreted value | $ 986 | 985 | |||||||
Stated interest rate (percentage) | 3.75% | 3.75% | |||||||
Charter Operating [Member] | 4.200% Senior Notes Due March 15, 2028 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 1,250 | 1,250 | |||||||
Accreted value | $ 1,239 | 1,238 | |||||||
Stated interest rate (percentage) | 4.20% | 4.20% | |||||||
Charter Operating [Member] | 6.384% Senior Notes Due October 23, 2035 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 2,000 | 2,000 | |||||||
Accreted value | $ 1,982 | 1,981 | |||||||
Stated interest rate (percentage) | 6.384% | 6.384% | |||||||
Charter Operating [Member] | 5.375% Senior Notes Due April 1, 2038 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 800 | 0 | |||||||
Accreted value | $ 785 | 0 | |||||||
Stated interest rate (percentage) | 5.375% | 5.375% | |||||||
Debt instrument issue price (percentage) | 98.846% | ||||||||
Charter Operating [Member] | 6.484% Senior Notes Due October 23, 2045 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 3,500 | 3,500 | |||||||
Accreted value | $ 3,466 | 3,466 | |||||||
Stated interest rate (percentage) | 6.484% | 6.484% | |||||||
Charter Operating [Member] | 5.375% Senior Notes Due May 1, 2047 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 2,500 | 2,500 | |||||||
Accreted value | $ 2,506 | 2,506 | |||||||
Stated interest rate (percentage) | 5.375% | 5.375% | |||||||
Charter Operating [Member] | 5.750% Senior Notes due April 1, 2048 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 1,700 | 0 | |||||||
Accreted value | $ 1,683 | 0 | |||||||
Stated interest rate (percentage) | 5.75% | 5.75% | |||||||
Debt instrument issue price (percentage) | 99.706% | ||||||||
Charter Operating [Member] | 6.834% Senior Notes Due October 23, 2055 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 500 | 500 | |||||||
Accreted value | $ 495 | 495 | |||||||
Stated interest rate (percentage) | 6.834% | 6.834% | |||||||
Charter Operating [Member] | Credit Facilities [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 9,576 | 9,479 | |||||||
Accreted value | 9,493 | 9,387 | |||||||
Charter Operating [Member] | Revolving Credit Facility [Member] | |||||||||
Long-term Debt: | |||||||||
Availability under credit facilities | 3,400 | ||||||||
Time Warner Cable [Member] | |||||||||
Long-term Debt: | |||||||||
Loss on extinguishment of debt | $ (1) | ||||||||
Time Warner Cable [Member] | 6.750% Senior Notes Due July 1, 2018 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | 0 | 2,000 | |||||||
Accreted value | 0 | 2,045 | |||||||
Principal amount, current portion | 0 | (2,000) | |||||||
Accreted value, current portion | $ 0 | (2,045) | |||||||
Stated interest rate (percentage) | 6.75% | 6.75% | |||||||
Debt Instrument, Repurchased Face Amount | $ 2,000 | ||||||||
Time Warner Cable [Member] | 8.750% Senior Notes Due February 14, 2019 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | 1,250 | 1,250 | |||||||
Accreted value | 1,279 | 1,337 | |||||||
Principal amount, current portion | (1,250) | 0 | |||||||
Accreted value, current portion | $ (1,279) | 0 | |||||||
Stated interest rate (percentage) | 8.75% | 8.75% | |||||||
Time Warner Cable [Member] | 8.250% Senior Notes Due April 1, 2019 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 2,000 | 2,000 | |||||||
Accreted value | 2,060 | 2,148 | |||||||
Principal amount, current portion | (2,000) | 0 | |||||||
Accreted value, current portion | $ (2,060) | 0 | |||||||
Stated interest rate (percentage) | 8.25% | 8.25% | |||||||
Time Warner Cable [Member] | 5.000% Senior Notes Due February 1, 2020 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 1,500 | 1,500 | |||||||
Accreted value | $ 1,551 | 1,579 | |||||||
Stated interest rate (percentage) | 5.00% | 5.00% | |||||||
Time Warner Cable [Member] | 4.125% Senior Notes Due February 15, 2021 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 700 | 700 | |||||||
Accreted value | $ 723 | 730 | |||||||
Stated interest rate (percentage) | 4.125% | 4.125% | |||||||
Time Warner Cable [Member] | 4.000% Senior Notes Due September 1, 2021 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 1,000 | 1,000 | |||||||
Accreted value | $ 1,036 | 1,045 | |||||||
Stated interest rate (percentage) | 4.00% | 4.00% | |||||||
Time Warner Cable [Member] | 5.750% Sterling Senior Notes Due June 2, 2031 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | £ 625 | $ 815 | 845 | ||||||
Accreted value | $ 876 | 912 | |||||||
Stated interest rate (percentage) | 5.75% | 5.75% | |||||||
Time Warner Cable [Member] | 6.550% Senior Debentures Due May 1, 2037 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 1,500 | 1,500 | |||||||
Accreted value | $ 1,682 | 1,686 | |||||||
Stated interest rate (percentage) | 6.55% | 6.55% | |||||||
Time Warner Cable [Member] | 7.300% Senior Debentures Due July 1, 2038 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 1,500 | 1,500 | |||||||
Accreted value | $ 1,782 | 1,788 | |||||||
Stated interest rate (percentage) | 7.30% | 7.30% | |||||||
Time Warner Cable [Member] | 6.750% Senior Debentures Due June 15, 2039 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 1,500 | 1,500 | |||||||
Accreted value | $ 1,720 | 1,724 | |||||||
Stated interest rate (percentage) | 6.75% | 6.75% | |||||||
Time Warner Cable [Member] | 5.875% Senior Debentures Due November 15, 2040 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 1,200 | 1,200 | |||||||
Accreted value | $ 1,257 | 1,258 | |||||||
Stated interest rate (percentage) | 5.875% | 5.875% | |||||||
Time Warner Cable [Member] | 5.500% Senior Debentures Due September 1, 2041 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 1,250 | 1,250 | |||||||
Accreted value | $ 1,258 | 1,258 | |||||||
Stated interest rate (percentage) | 5.50% | 5.50% | |||||||
Time Warner Cable [Member] | 5.250% Sterling Senior Notes Due July 15, 2042 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | £ 650 | $ 847 | 879 | ||||||
Accreted value | $ 817 | 847 | |||||||
Stated interest rate (percentage) | 5.25% | 5.25% | |||||||
Time Warner Cable [Member] | 4.500% Senior Debentures Due September 15, 2042 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 1,250 | 1,250 | |||||||
Accreted value | $ 1,139 | 1,137 | |||||||
Stated interest rate (percentage) | 4.50% | 4.50% | |||||||
Time Warner Cable Enterprises [Member] | 8.375% Senior Debentures Due March 15, 2023 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 1,000 | 1,000 | |||||||
Accreted value | $ 1,202 | 1,232 | |||||||
Stated interest rate (percentage) | 8.375% | 8.375% | |||||||
Time Warner Cable Enterprises [Member] | 8.375% Senior Debentures Due July 15, 2033 [Member] | |||||||||
Long-term Debt: | |||||||||
Principal amount | $ 1,000 | 1,000 | |||||||
Accreted value | $ 1,302 | $ 1,312 | |||||||
Stated interest rate (percentage) | 8.375% | 8.375% |
Common Stock (Details)
Common Stock (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Class of Stock [Line Items] | ||||
Treasury stock acquired (shares) | 3,067,834 | 9,555,674 | 10,574,233 | 22,406,923 |
Value of treasury stock shares repurchased/withheld | $ 933 | $ 3,525 | $ 3,214 | $ 7,748 |
Remaining authorized repurchase amount | $ 788 | $ 788 | ||
Treasury Stock Acquired - Share buybacks | ||||
Class of Stock [Line Items] | ||||
Treasury stock acquired (shares) | 3,046,346 | 9,521,958 | 10,349,639 | 21,940,797 |
Value of treasury stock shares repurchased/withheld | $ 929 | $ 3,513 | $ 3,142 | $ 7,611 |
Treasury Stock Acquired - Income tax withholding | ||||
Class of Stock [Line Items] | ||||
Treasury stock acquired (shares) | 12,703 | 32,283 | 209,394 | 424,148 |
Value of treasury stock shares repurchased/withheld | $ 4 | $ 12 | $ 72 | $ 137 |
Treasury Stock Acquired - Exercise cost | ||||
Class of Stock [Line Items] | ||||
Treasury stock acquired (shares) | 8,785 | 1,433 | 15,200 | 41,978 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | |
Noncontrolling Interests: | |||||
Noncontrolling interest ownership threshold (percentage) | 100.00% | 100.00% | |||
Net income attributable to noncontrolling interest | $ 91 | $ 44 | $ 212 | $ 156 | |
Common Noncontrolling Interest [Member] | |||||
Noncontrolling Interests: | |||||
Ownership percentage held by noncontrolling interest (percentage) | 8.00% | 8.00% | 9.00% | ||
Net income attributable to noncontrolling interest | $ 54 | $ 6 | $ 99 | $ 42 | |
Purchase of noncontrolling interest (shares) | 495,447 | 1,385,404 | 1,546,475 | 2,700,849 | |
Purchase of noncontrolling interest (price per share) | $ 292.81 | $ 355.83 | $ 306.11 | $ 341.49 | |
Purchase price of noncontrolling interest | $ 145 | $ 493 | $ 473 | $ 922 | |
Preferred Noncontrolling Interest [Member] | |||||
Noncontrolling Interests: | |||||
Distributions to noncontrolling interest | 37 | 37 | 112 | 112 | |
Noncontrolling Interest [Member] | |||||
Noncontrolling Interests: | |||||
Impact Of Change In Subsidiary Ownership Structure | (10) | (170) | (53) | (336) | |
Noncontrolling Interest [Member] | Common Noncontrolling Interest [Member] | |||||
Noncontrolling Interests: | |||||
Carrying value of noncontrolling interst purchased | (122) | (292) | (376) | (582) | |
Additional Paid-in Capital [Member] | |||||
Noncontrolling Interests: | |||||
Impact Of Change In Subsidiary Ownership Structure | 7 | 106 | 39 | 208 | |
Additional Paid-in Capital [Member] | Common Noncontrolling Interest [Member] | |||||
Noncontrolling Interests: | |||||
Impact of noncontrolling interest purchased | $ (17) | $ (123) | $ (73) | $ (209) |
Accounting for Derivative Ins_4
Accounting for Derivative Instruments and Hedging Activities (Details) £ in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018GBP (£) | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Loss on financial instruments, net: | |||||||
Change in fair value of cross-currency derivative instruments | $ (10) | $ 68 | $ (63) | $ 126 | |||
Foreign currency remeasurement of Sterling Notes to U.S. dollars | 22 | (50) | 63 | (141) | |||
Other, net | 0 | (1) | 0 | 0 | |||
Gain (loss) on financial instruments, net | $ 12 | $ 17 | $ 0 | $ (15) | |||
Cross Currency Derivatives [Member] | |||||||
Derivatives: | |||||||
Notional amount | £ | £ 1,275 | ||||||
Collateral holiday agreement, percentage of position covered | 80.00% | 80.00% | |||||
Collateral holiday agreement, term | 3 years | ||||||
Other long-term liabilities [Member] | Cross Currency Derivatives [Member] | |||||||
Derivatives: | |||||||
Liability position cross-currency derivative instruments | $ 88 | $ 25 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Fair Value Measurements: | |||||
Maximum amount allowed to be invested in any single financial instrument (money market funds) per investment policy | $ 300 | $ 300 | $ 300 | ||
Debt, carrying value | 72,474 | 72,474 | 70,231 | ||
Asset impairment charges | 0 | $ 0 | 0 | $ 0 | |
Senior Notes and Debentures [Member] | |||||
Fair Value Measurements: | |||||
Debt, fair value | 62,966 | 62,966 | 63,443 | ||
Debt, carrying value | 62,981 | 62,981 | 60,844 | ||
Credit Facilities [Member] | |||||
Fair Value Measurements: | |||||
Debt, fair value | 9,577 | 9,577 | 9,440 | ||
Debt, carrying value | 9,493 | 9,493 | 9,387 | ||
Level 1 [Member] | |||||
Fair Value Measurements: | |||||
Money market funds | 15 | 15 | 291 | ||
Level 2 [Member] | |||||
Fair Value Measurements: | |||||
Money market funds | 0 | 0 | 0 | ||
Cross Currency Derivatives [Member] | Level 1 [Member] | |||||
Fair Value Measurements: | |||||
Liability position derivative instruments, fair value | 0 | 0 | 0 | ||
Cross Currency Derivatives [Member] | Level 2 [Member] | |||||
Fair Value Measurements: | |||||
Liability position derivative instruments, fair value | $ 88 | $ 88 | $ 25 |
Operating Costs and Expenses (D
Operating Costs and Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Operating Costs and Expenses [Abstract] | ||||
Programming | $ 2,778 | $ 2,699 | $ 8,333 | $ 7,952 |
Regulatory, connectivity and produced content | 546 | 523 | 1,639 | 1,553 |
Costs to service customers | 1,854 | 1,823 | 5,492 | 5,385 |
Marketing | 790 | 761 | 2,310 | 2,286 |
Mobile | 94 | 0 | 135 | 0 |
Other | 950 | 897 | 2,812 | 2,681 |
Operating costs and expenses (exclusive of items shown separately in the consolidated statements of operations) | $ 7,012 | $ 6,703 | $ 20,721 | $ 19,857 |
Other Operating Expenses, Net_3
Other Operating Expenses, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Other Operating Expenses, Net [Abstract] | |||||
Merger and restructuring costs | $ 14 | $ 67 | $ 90 | $ 293 | |
Special charges, net | 0 | 80 | 35 | 86 | |
(Gain) loss on sale of assets, net | 4 | (2) | (9) | (5) | |
Other operating expenses, net | 18 | 145 | 116 | 374 | |
Merger And Restructuring Costs [Roll Forward] | |||||
Accrued merger and restructuring costs, beginning of period | 198 | 276 | $ 276 | ||
Costs incurred | 85 | 302 | |||
Cash paid | (178) | (380) | |||
Accrued merger and restructuring costs, end of period | 105 | 105 | 198 | ||
Stock compensation expense recognized in merger costs | 6 | 5 | 43 | ||
Obligation charge arising from a withdrawal liability from a multi-employer pension plan | $ 83 | 22 | 83 | ||
Employee Retention Costs [Member] | |||||
Merger And Restructuring Costs [Roll Forward] | |||||
Accrued merger and restructuring costs, beginning of period | 1 | 7 | 7 | ||
Costs incurred | 0 | 4 | |||
Cash paid | 0 | (10) | |||
Accrued merger and restructuring costs, end of period | 1 | 1 | 1 | ||
Employee Termination Costs [Member] | |||||
Merger And Restructuring Costs [Roll Forward] | |||||
Accrued merger and restructuring costs, beginning of period | 172 | 244 | 244 | ||
Costs incurred | 59 | 226 | |||
Cash paid | (155) | (298) | |||
Accrued merger and restructuring costs, end of period | 76 | 76 | 172 | ||
Transaction and Advisory Costs [Member] | |||||
Merger And Restructuring Costs [Roll Forward] | |||||
Accrued merger and restructuring costs, beginning of period | 17 | 25 | 25 | ||
Costs incurred | 1 | 4 | |||
Cash paid | 0 | (12) | |||
Accrued merger and restructuring costs, end of period | 18 | 18 | 17 | ||
Other Costs [Member] | |||||
Merger And Restructuring Costs [Roll Forward] | |||||
Accrued merger and restructuring costs, beginning of period | 8 | $ 0 | 0 | ||
Costs incurred | 25 | 68 | |||
Cash paid | (23) | (60) | |||
Accrued merger and restructuring costs, end of period | $ 10 | $ 10 | $ 8 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||||
Income tax expense | $ (109) | $ (26) | $ (178) | $ (99) | |
Income tax benefit to update existing estimate | 12 | ||||
Unrecognized Tax Benefits | $ 171 | $ 171 | $ 164 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings (Loss) Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 30,000,000 | 35,000,000 | 31,000,000 | 37,000,000 |
Net income attributable to Charter shareholders | $ 493 | $ 48 | $ 934 | $ 342 |
Weighted average common shares outstanding, basic (shares) | 230,554,633 | 253,923,805 | 234,159,830 | 262,074,603 |
Effect of assumed exercise or issuance of shares relating to stock plans on denominator (shares) | 3,052,781 | 4,418,046 | 3,184,094 | 4,288,999 |
Weighted average common shares outstanding, diluted (shares) | 233,607,414 | 258,341,851 | 237,343,924 | 266,363,602 |
Basic earnings per common share attributable to Charter shareholders (dollars per share) | $ 2.14 | $ 0.19 | $ 3.99 | $ 1.31 |
Diluted earnings per common share attributable to Charter shareholders (dollars per share) | $ 2.11 | $ 0.19 | $ 3.93 | $ 1.29 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Related Party Transactions: | ||||
Dr. John Malone's voting interest in Liberty Broadband (percentage) | 47.10% | 47.10% | ||
Dr. John Malone's voting interest in Qurate Retail, Inc. (percentage) | 37.50% | 37.50% | ||
Cash payments received from HSN, Inc. and QVC, Inc. | $ 18 | $ 17 | $ 51 | $ 50 |
Dr. John Malone's voting interest in Discovery Communications, Inc. for election of directors (percentage) | 28.00% | 28.00% | ||
Advance Newhouse Programming Partnership's ownership percentage in Series A preferred stock of Discovery Communications, Inc. (percentage) | 100.00% | 100.00% | ||
Advance Newhouse Programming Partnership's ownership percentage in Series C preferred stock of Discovery Communications, Inc. (percentage) | 100.00% | 100.00% | ||
Advance Newhouse Programming Partnership's voting interest in Discovery Communications, Inc. for election of directors | 24.20% | 24.20% | ||
Maximum [Member] | ||||
Related Party Transactions: | ||||
Carrying value of noncontrolling interst purchased | $ 400 | |||
Percent of total operating costs and expenses paid to Discovery Communications, Inc. and Starz (percentage) | 3.00% | 3.00% | 3.00% | 3.00% |
Equity Method Investee [Member] | ||||
Related Party Transactions: | ||||
Payments to related parties | $ 99 | $ 62 | $ 248 | $ 208 |
Class B Common Stock [Member] | ||||
Related Party Transactions: | ||||
Dr. John Malone's ownership percentage in Discovery Communications, Inc. (percentage) | 93.60% | 93.60% | ||
Common Class C [Member] | ||||
Related Party Transactions: | ||||
Dr. John Malone's ownership percentage in Discovery Communications, Inc. (percentage) | 6.00% | 6.00% |
Contingencies (Details)
Contingencies (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Mar. 31, 2017 | Sep. 30, 2018 | |
Commitments and Contingencies [Abstract] | ||
Loss Contingency, Damages Awarded, Value | $ 140,000,000 | |
Litigation Settlement Interest | $ 6,000,000 | |
Loss Contingency, Damages Sought, Value | $ 100,000 |
Stock Compensation Plans (Detai
Stock Compensation Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Stock Compensation Plans: | ||||
Stock compensation expense | $ 71 | $ 64 | $ 213 | $ 198 |
Stock compensation expense recognized in merger costs | $ 6 | $ 5 | $ 43 | |
Stock Option [Member] | ||||
Stock Compensation Plans: | ||||
Stock options granted in period (shares) | 24,200 | 20,900 | 1,490,700 | 1,167,100 |
Award expiration period | 10 years | |||
Unrecognized compensation cost | $ 235 | $ 235 | ||
Remaining period over which to recognize unrecognized compensation expense | 2 years | |||
Restricted Stock [Member] | ||||
Stock Compensation Plans: | ||||
Awards other than stock options granted in period (shares) | 500 | 0 | 10,200 | 9,500 |
Unrecognized compensation cost | $ 2 | $ 2 | ||
Remaining period over which to recognize unrecognized compensation expense | 1 year | |||
Restricted Stock Units [Member] | ||||
Stock Compensation Plans: | ||||
Awards other than stock options granted in period (shares) | 13,500 | 5,100 | 518,900 | 283,000 |
Unrecognized compensation cost | $ 224 | $ 224 | ||
Remaining period over which to recognize unrecognized compensation expense | 2 years | |||
Minimum [Member] | Restricted Stock [Member] | ||||
Stock Compensation Plans: | ||||
Award vesting period | 1 year | |||
Maximum [Member] | Stock Option [Member] | ||||
Stock Compensation Plans: | ||||
Award vesting period | 3 years | |||
Maximum [Member] | Restricted Stock Units [Member] | ||||
Stock Compensation Plans: | ||||
Award vesting period | 3 years | |||
Legacy TWC Awards Converted May 2016 [Member] | Restricted Stock Units [Member] | ||||
Stock Compensation Plans: | ||||
Award vesting percentage | 50.00% |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Benefit Plans [Abstract] | ||||||
Discount Rate (percentage) | 4.24% | 3.88% | 3.68% | 4.20% | ||
Expected long-term rate of return on plan assets (percentage) | 5.75% | 6.50% | ||||
Interest cost | $ (32) | $ (33) | $ (96) | $ (101) | ||
Expected return on plan assets | 52 | 46 | 156 | 140 | ||
Remeasurement gain (loss), net | 187 | (30) | 187 | (30) | ||
Net periodic pension benefit (costs) | $ 207 | $ (17) | $ 247 | $ 9 |
Recently Issued Accounting St_3
Recently Issued Accounting Standards Recently Issued Accounting Standards (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2015 | |
Product Information [Line Items] | |||||
REVENUES | $ 10,892 | $ 10,458 | $ 32,403 | $ 30,979 | |
Governmental imposed fees passed through to the customer | 239 | 244 | 730 | 717 | |
Customer prepayments - account payable and accrued liabilities | 410 | 410 | |||
Upfront installation fees - account payable and accrued liabilities | 88 | 88 | |||
Long-term deferred revenue liabilities - other long-term liabilities | 34 | 34 | |||
Deferred enterprise commission costs - noncurrent asset | 138 | 138 | |||
Deferred upfront MDU fees - noncurrent asset | 266 | 266 | |||
Amortization expense of deferred upfront MDU fees | 16 | 46 | |||
Residential Video Product Line [Member] | |||||
Product Information [Line Items] | |||||
REVENUES | 4,332 | 4,208 | 12,987 | 12,401 | |
Residential Internet Product Line [Member] | |||||
Product Information [Line Items] | |||||
REVENUES | 3,809 | 3,555 | 11,286 | 10,464 | |
Residential Voice Product Line [Member] | |||||
Product Information [Line Items] | |||||
REVENUES | 512 | 611 | 1,599 | 1,955 | |
Residential Product Line [Member] | |||||
Product Information [Line Items] | |||||
REVENUES | 8,653 | 8,374 | 25,872 | 24,820 | |
Commercial Small and Medium Business Product Line [Member] | |||||
Product Information [Line Items] | |||||
REVENUES | 922 | 896 | 2,737 | 2,652 | |
Commercial Enterprise Product Line [Member] | |||||
Product Information [Line Items] | |||||
REVENUES | 632 | 594 | 1,881 | 1,761 | |
Commercial Product Line [Member] | |||||
Product Information [Line Items] | |||||
REVENUES | 1,554 | 1,490 | 4,618 | 4,413 | |
Advertising sales [Member] | |||||
Product Information [Line Items] | |||||
REVENUES | 440 | 373 | 1,223 | 1,091 | |
Mobile [Member] | |||||
Product Information [Line Items] | |||||
REVENUES | 17 | 0 | 17 | 0 | |
Other services [Member] | |||||
Product Information [Line Items] | |||||
REVENUES | $ 228 | $ 221 | 673 | $ 655 | |
Accounting Standards Update 2014-09 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
New Accounting Pronouncement, Effect of Adoption on Noncurrent Assets | 120 | ||||
New Accounting Pronouncement, Effect of Adoption on Accounts Payable and Accrued Liabilities | 71 | ||||
New Accounting Pronouncement, Effect of Adoption on Deferred Income Taxes | 11 | ||||
New Accounting Pronouncement, Effect of Adoption on Total Shareholders' Equity | 38 | ||||
Accounting Standards Update 2016-16 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
New Accounting Pronouncement, Effect of Adoption on Total Shareholders' Equity | 31 | ||||
Accounting Standards Update 2016-18 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 0 | $ 22,300 |
Condensed Consolidating Balance
Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 612 | $ 621 |
Accounts receivable, net | 1,736 | 1,635 |
Receivables from related party | 0 | 0 |
Prepaid expenses and other current assets | 381 | 299 |
Total current assets | 2,729 | 2,555 |
RESTRICTED CASH | 48 | 0 |
INVESTMENT IN CABLE PROPERTIES: | ||
Property, plant and equipment, net | 34,740 | 33,888 |
Customer relationships, net | 10,136 | 11,951 |
Franchises | 67,319 | 67,319 |
Goodwill | 29,554 | 29,554 |
Total investment in cable properties, net | 141,749 | 142,712 |
INVESTMENT IN SUBSIDIARIES | 0 | 0 |
LOANS RECEIVABLE - RELATED PARTY | 0 | 0 |
OTHER NONCURRENT ASSETS | 1,559 | 1,356 |
Total assets | 146,085 | 146,623 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued liabilities | 8,511 | 9,045 |
Payables to related party | 0 | 0 |
Current portion of long-term debt | 3,339 | 2,045 |
Total current liabilities | 11,850 | 11,090 |
LONG-TERM DEBT | 69,135 | 68,186 |
LOANS PAYABLE - RELATED PARTY | 0 | 0 |
DEFERRED INCOME TAXES | 17,421 | 17,314 |
OTHER LONG-TERM LIABILITIES | 2,451 | 2,502 |
SHAREHOLDERS'/MEMBER'S EQUITY | ||
Controlling interest | 37,105 | 39,084 |
Noncontrolling interests | 8,123 | 8,447 |
Total shareholders'/member's equity | 45,228 | 47,531 |
Total liabilities and shareholders'/member's equity | 146,085 | 146,623 |
Eliminations [Member] | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | 0 | 0 |
Accounts receivable, net | 0 | 0 |
Receivables from related party | (576) | (690) |
Prepaid expenses and other current assets | 0 | 0 |
Total current assets | (576) | (690) |
RESTRICTED CASH | 0 | |
INVESTMENT IN CABLE PROPERTIES: | ||
Property, plant and equipment, net | 0 | 0 |
Customer relationships, net | 0 | 0 |
Franchises | 0 | 0 |
Goodwill | 0 | 0 |
Total investment in cable properties, net | 0 | 0 |
INVESTMENT IN SUBSIDIARIES | (195,922) | (201,801) |
LOANS RECEIVABLE - RELATED PARTY | (1,446) | (1,399) |
OTHER NONCURRENT ASSETS | (3) | 0 |
Total assets | (197,947) | (203,890) |
CURRENT LIABILITIES: | ||
Accounts payable and accrued liabilities | 0 | 0 |
Payables to related party | (576) | (690) |
Current portion of long-term debt | 0 | 0 |
Total current liabilities | (576) | (690) |
LONG-TERM DEBT | 0 | 0 |
LOANS PAYABLE - RELATED PARTY | (1,446) | (1,399) |
DEFERRED INCOME TAXES | (3) | 0 |
OTHER LONG-TERM LIABILITIES | 0 | 0 |
SHAREHOLDERS'/MEMBER'S EQUITY | ||
Controlling interest | (195,922) | (201,801) |
Noncontrolling interests | 0 | 0 |
Total shareholders'/member's equity | (195,922) | (201,801) |
Total liabilities and shareholders'/member's equity | (197,947) | (203,890) |
Charter [Member] | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | 0 | 0 |
Accounts receivable, net | 0 | 0 |
Receivables from related party | 25 | 22 |
Prepaid expenses and other current assets | 7 | 22 |
Total current assets | 32 | 44 |
RESTRICTED CASH | 0 | |
INVESTMENT IN CABLE PROPERTIES: | ||
Property, plant and equipment, net | 0 | 0 |
Customer relationships, net | 0 | 0 |
Franchises | 0 | 0 |
Goodwill | 0 | 0 |
Total investment in cable properties, net | 0 | 0 |
INVESTMENT IN SUBSIDIARIES | 54,440 | 56,263 |
LOANS RECEIVABLE - RELATED PARTY | 246 | 233 |
OTHER NONCURRENT ASSETS | 0 | 0 |
Total assets | 54,718 | 56,540 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued liabilities | 4 | 4 |
Payables to related party | 0 | 0 |
Current portion of long-term debt | 0 | 0 |
Total current liabilities | 4 | 4 |
LONG-TERM DEBT | 0 | 0 |
LOANS PAYABLE - RELATED PARTY | 0 | 0 |
DEFERRED INCOME TAXES | 17,408 | 17,268 |
OTHER LONG-TERM LIABILITIES | 201 | 184 |
SHAREHOLDERS'/MEMBER'S EQUITY | ||
Controlling interest | 37,105 | 39,084 |
Noncontrolling interests | 0 | 0 |
Total shareholders'/member's equity | 37,105 | 39,084 |
Total liabilities and shareholders'/member's equity | 54,718 | 56,540 |
Intermediate Holding Companies [Member] | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | 261 | 291 |
Accounts receivable, net | 29 | 24 |
Receivables from related party | 498 | 613 |
Prepaid expenses and other current assets | 39 | 34 |
Total current assets | 827 | 962 |
RESTRICTED CASH | 48 | |
INVESTMENT IN CABLE PROPERTIES: | ||
Property, plant and equipment, net | 447 | 336 |
Customer relationships, net | 0 | 0 |
Franchises | 0 | 0 |
Goodwill | 0 | 0 |
Total investment in cable properties, net | 447 | 336 |
INVESTMENT IN SUBSIDIARIES | 61,513 | 63,558 |
LOANS RECEIVABLE - RELATED PARTY | 674 | 655 |
OTHER NONCURRENT ASSETS | 215 | 223 |
Total assets | 63,724 | 65,734 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued liabilities | 861 | 900 |
Payables to related party | 0 | 0 |
Current portion of long-term debt | 0 | 0 |
Total current liabilities | 861 | 900 |
LONG-TERM DEBT | 0 | 0 |
LOANS PAYABLE - RELATED PARTY | 0 | 0 |
DEFERRED INCOME TAXES | 16 | 14 |
OTHER LONG-TERM LIABILITIES | 308 | 134 |
SHAREHOLDERS'/MEMBER'S EQUITY | ||
Controlling interest | 54,440 | 56,263 |
Noncontrolling interests | 8,099 | 8,423 |
Total shareholders'/member's equity | 62,539 | 64,686 |
Total liabilities and shareholders'/member's equity | 63,724 | 65,734 |
CCO Holdings [Member] | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | 0 | 0 |
Accounts receivable, net | 0 | 0 |
Receivables from related party | 53 | 55 |
Prepaid expenses and other current assets | 0 | 0 |
Total current assets | 53 | 55 |
RESTRICTED CASH | 0 | |
INVESTMENT IN CABLE PROPERTIES: | ||
Property, plant and equipment, net | 0 | 0 |
Customer relationships, net | 0 | 0 |
Franchises | 0 | 0 |
Goodwill | 0 | 0 |
Total investment in cable properties, net | 0 | 0 |
INVESTMENT IN SUBSIDIARIES | 79,969 | 81,980 |
LOANS RECEIVABLE - RELATED PARTY | 526 | 511 |
OTHER NONCURRENT ASSETS | 0 | 0 |
Total assets | 80,548 | 82,546 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued liabilities | 311 | 280 |
Payables to related party | 0 | 0 |
Current portion of long-term debt | 0 | 0 |
Total current liabilities | 311 | 280 |
LONG-TERM DEBT | 18,724 | 18,708 |
LOANS PAYABLE - RELATED PARTY | 0 | 0 |
DEFERRED INCOME TAXES | 0 | 0 |
OTHER LONG-TERM LIABILITIES | 0 | 0 |
SHAREHOLDERS'/MEMBER'S EQUITY | ||
Controlling interest | 61,513 | 63,558 |
Noncontrolling interests | 0 | 0 |
Total shareholders'/member's equity | 61,513 | 63,558 |
Total liabilities and shareholders'/member's equity | 80,548 | 82,546 |
Charter Operating and Restricted Subsidiaries [Member] | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | 351 | 330 |
Accounts receivable, net | 1,707 | 1,611 |
Receivables from related party | 0 | 0 |
Prepaid expenses and other current assets | 335 | 243 |
Total current assets | 2,393 | 2,184 |
RESTRICTED CASH | 0 | |
INVESTMENT IN CABLE PROPERTIES: | ||
Property, plant and equipment, net | 34,293 | 33,552 |
Customer relationships, net | 10,136 | 11,951 |
Franchises | 67,319 | 67,319 |
Goodwill | 29,554 | 29,554 |
Total investment in cable properties, net | 141,302 | 142,376 |
INVESTMENT IN SUBSIDIARIES | 0 | 0 |
LOANS RECEIVABLE - RELATED PARTY | 0 | 0 |
OTHER NONCURRENT ASSETS | 1,347 | 1,133 |
Total assets | 145,042 | 145,693 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued liabilities | 7,335 | 7,861 |
Payables to related party | 576 | 690 |
Current portion of long-term debt | 3,339 | 2,045 |
Total current liabilities | 11,250 | 10,596 |
LONG-TERM DEBT | 50,411 | 49,478 |
LOANS PAYABLE - RELATED PARTY | 1,446 | 1,399 |
DEFERRED INCOME TAXES | 0 | 32 |
OTHER LONG-TERM LIABILITIES | 1,942 | 2,184 |
SHAREHOLDERS'/MEMBER'S EQUITY | ||
Controlling interest | 79,969 | 81,980 |
Noncontrolling interests | 24 | 24 |
Total shareholders'/member's equity | 79,993 | 82,004 |
Total liabilities and shareholders'/member's equity | $ 145,042 | $ 145,693 |
Condensed Consolidating Stateme
Condensed Consolidating Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Condensed Consolidating Statements of Operations | ||||
REVENUES | $ 10,892 | $ 10,458 | $ 32,403 | $ 30,979 |
COSTS AND EXPENSES: | ||||
Operating costs and expenses (exclusive of items shown separately below) | 7,012 | 6,703 | 20,721 | 19,857 |
Depreciation and amortization | 2,482 | 2,701 | 7,784 | 7,846 |
Other operating expenses, net | 18 | 145 | 116 | 374 |
Total costs and expenses | 9,512 | 9,549 | 28,621 | 28,077 |
Income from operations | 1,380 | 909 | 3,782 | 2,902 |
OTHER INCOME (EXPENSES): | ||||
Interest income (expense), net | (901) | (788) | (2,630) | (2,250) |
Loss on extinguishment of debt | 0 | 0 | 0 | (35) |
Loss on financial instruments, net | (12) | (17) | 0 | 15 |
Other pension benefits (costs) | 207 | (17) | 247 | 9 |
Other expense, net | (5) | (3) | (75) | (14) |
Equity in income of subsidiaries | 0 | 0 | ||
Total other income (expense) | (687) | (791) | (2,458) | (2,305) |
Income before income taxes | 693 | 118 | 1,324 | 597 |
Income tax expense | (109) | (26) | (178) | (99) |
Consolidated net income | 584 | 92 | 1,146 | 498 |
Less: Net income attributable to noncontrolling interests | (91) | (44) | (212) | (156) |
Net income | $ 493 | $ 48 | 934 | 342 |
Eliminations [Member] | ||||
Condensed Consolidating Statements of Operations | ||||
REVENUES | (868) | (976) | ||
COSTS AND EXPENSES: | ||||
Operating costs and expenses (exclusive of items shown separately below) | (868) | (976) | ||
Depreciation and amortization | 0 | 0 | ||
Other operating expenses, net | 0 | 0 | ||
Total costs and expenses | (868) | (976) | ||
Income from operations | 0 | 0 | ||
OTHER INCOME (EXPENSES): | ||||
Interest income (expense), net | 0 | 0 | ||
Loss on extinguishment of debt | 0 | |||
Loss on financial instruments, net | 0 | |||
Other pension benefits (costs) | 0 | 0 | ||
Other expense, net | 0 | 0 | ||
Equity in income of subsidiaries | (4,419) | (2,150) | ||
Total other income (expense) | (4,419) | (2,150) | ||
Income before income taxes | (4,419) | (2,150) | ||
Income tax expense | 0 | 0 | ||
Consolidated net income | (4,419) | (2,150) | ||
Less: Net income attributable to noncontrolling interests | 0 | 0 | ||
Net income | (4,419) | (2,150) | ||
Charter [Member] | ||||
Condensed Consolidating Statements of Operations | ||||
REVENUES | 37 | 79 | ||
COSTS AND EXPENSES: | ||||
Operating costs and expenses (exclusive of items shown separately below) | 37 | 79 | ||
Depreciation and amortization | 0 | 0 | ||
Other operating expenses, net | 0 | 0 | ||
Total costs and expenses | 37 | 79 | ||
Income from operations | 0 | 0 | ||
OTHER INCOME (EXPENSES): | ||||
Interest income (expense), net | 7 | 4 | ||
Loss on extinguishment of debt | 0 | |||
Loss on financial instruments, net | 0 | |||
Other pension benefits (costs) | 0 | 0 | ||
Other expense, net | 0 | 0 | ||
Equity in income of subsidiaries | 1,085 | 390 | ||
Total other income (expense) | 1,092 | 394 | ||
Income before income taxes | 1,092 | 394 | ||
Income tax expense | (158) | (52) | ||
Consolidated net income | 934 | 342 | ||
Less: Net income attributable to noncontrolling interests | 0 | 0 | ||
Net income | 934 | 342 | ||
Intermediate Holding Companies [Member] | ||||
Condensed Consolidating Statements of Operations | ||||
REVENUES | 844 | 897 | ||
COSTS AND EXPENSES: | ||||
Operating costs and expenses (exclusive of items shown separately below) | 810 | 883 | ||
Depreciation and amortization | 8 | 7 | ||
Other operating expenses, net | 4 | 0 | ||
Total costs and expenses | 822 | 890 | ||
Income from operations | 22 | 7 | ||
OTHER INCOME (EXPENSES): | ||||
Interest income (expense), net | 21 | 14 | ||
Loss on extinguishment of debt | 0 | |||
Loss on financial instruments, net | 0 | |||
Other pension benefits (costs) | 0 | 0 | ||
Other expense, net | (26) | (12) | ||
Equity in income of subsidiaries | 1,286 | 548 | ||
Total other income (expense) | 1,281 | 550 | ||
Income before income taxes | 1,303 | 557 | ||
Income tax expense | (7) | (12) | ||
Consolidated net income | 1,296 | 545 | ||
Less: Net income attributable to noncontrolling interests | (211) | (155) | ||
Net income | 1,085 | 390 | ||
CCO Holdings [Member] | ||||
Condensed Consolidating Statements of Operations | ||||
REVENUES | 0 | 0 | ||
COSTS AND EXPENSES: | ||||
Operating costs and expenses (exclusive of items shown separately below) | 0 | 0 | ||
Depreciation and amortization | 0 | 0 | ||
Other operating expenses, net | 0 | 0 | ||
Total costs and expenses | 0 | 0 | ||
Income from operations | 0 | 0 | ||
OTHER INCOME (EXPENSES): | ||||
Interest income (expense), net | (762) | (631) | ||
Loss on extinguishment of debt | (33) | |||
Loss on financial instruments, net | 0 | |||
Other pension benefits (costs) | 0 | 0 | ||
Other expense, net | 0 | 0 | ||
Equity in income of subsidiaries | 2,048 | 1,212 | ||
Total other income (expense) | 1,286 | 548 | ||
Income before income taxes | 1,286 | 548 | ||
Income tax expense | 0 | 0 | ||
Consolidated net income | 1,286 | 548 | ||
Less: Net income attributable to noncontrolling interests | 0 | 0 | ||
Net income | 1,286 | 548 | ||
Charter Operating and Restricted Subsidiaries [Member] | ||||
Condensed Consolidating Statements of Operations | ||||
REVENUES | 32,390 | 30,979 | ||
COSTS AND EXPENSES: | ||||
Operating costs and expenses (exclusive of items shown separately below) | 20,742 | 19,871 | ||
Depreciation and amortization | 7,776 | 7,839 | ||
Other operating expenses, net | 112 | 374 | ||
Total costs and expenses | 28,630 | 28,084 | ||
Income from operations | 3,760 | 2,895 | ||
OTHER INCOME (EXPENSES): | ||||
Interest income (expense), net | (1,896) | (1,637) | ||
Loss on extinguishment of debt | (2) | |||
Loss on financial instruments, net | 15 | |||
Other pension benefits (costs) | 247 | 9 | ||
Other expense, net | (49) | (2) | ||
Equity in income of subsidiaries | 0 | 0 | ||
Total other income (expense) | (1,698) | (1,647) | ||
Income before income taxes | 2,062 | 1,248 | ||
Income tax expense | (13) | (35) | ||
Consolidated net income | 2,049 | 1,213 | ||
Less: Net income attributable to noncontrolling interests | (1) | (1) | ||
Net income | $ 2,048 | $ 1,212 |
Condensed Consolidating State_2
Condensed Consolidating Statements of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Condensed Consolidating Statements of Comprehensive Income (Loss) | ||||
Consolidated net income | $ 584 | $ 92 | $ 1,146 | $ 498 |
Net impact of interest rate derivative instruments | 0 | 1 | 0 | 4 |
Foreign Currency Translation Adjustment | 0 | 1 | (1) | 1 |
Consolidated comprehensive income | 584 | 94 | 1,145 | 503 |
Less: Comprehensive income attributable to noncontrolling interests | (91) | (44) | (212) | (156) |
Comprehensive income | $ 493 | $ 50 | 933 | 347 |
Eliminations [Member] | ||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | ||||
Consolidated net income | (4,419) | (2,150) | ||
Net impact of interest rate derivative instruments | (12) | |||
Foreign Currency Translation Adjustment | 3 | (3) | ||
Consolidated comprehensive income | (4,416) | (2,165) | ||
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | ||
Comprehensive income | (4,416) | (2,165) | ||
Charter [Member] | ||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | ||||
Consolidated net income | 934 | 342 | ||
Net impact of interest rate derivative instruments | 4 | |||
Foreign Currency Translation Adjustment | (1) | 1 | ||
Consolidated comprehensive income | 933 | 347 | ||
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | ||
Comprehensive income | 933 | 347 | ||
Intermediate Holding Companies [Member] | ||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | ||||
Consolidated net income | 1,296 | 545 | ||
Net impact of interest rate derivative instruments | 4 | |||
Foreign Currency Translation Adjustment | (1) | 1 | ||
Consolidated comprehensive income | 1,295 | 550 | ||
Less: Comprehensive income attributable to noncontrolling interests | (211) | (155) | ||
Comprehensive income | 1,084 | 395 | ||
CCO Holdings [Member] | ||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | ||||
Consolidated net income | 1,286 | 548 | ||
Net impact of interest rate derivative instruments | 4 | |||
Foreign Currency Translation Adjustment | (1) | 1 | ||
Consolidated comprehensive income | 1,285 | 553 | ||
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | ||
Comprehensive income | 1,285 | 553 | ||
Charter Operating and Restricted Subsidiaries [Member] | ||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | ||||
Consolidated net income | 2,049 | 1,213 | ||
Net impact of interest rate derivative instruments | 4 | |||
Foreign Currency Translation Adjustment | (1) | 1 | ||
Consolidated comprehensive income | 2,048 | 1,218 | ||
Less: Comprehensive income attributable to noncontrolling interests | (1) | (1) | ||
Comprehensive income | $ 2,047 | $ 1,217 |
Condensed Consolidating State_3
Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Condensed Consolidating Statements of Cash Flows | ||
Net cash flows from operating activities | $ 8,599 | $ 8,696 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (6,692) | (6,096) |
Change in accrued expenses related to capital expenditures | (620) | 276 |
Real estate investment through variable interest entity | (15) | 0 |
Contributions to subsidiaries | 0 | 0 |
Distributions from subsidiaries | 0 | 0 |
Other, net | (103) | (63) |
Net cash flows from investing activities | (7,430) | (5,883) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 11,552 | 12,115 |
Repayments of long-term debt | (8,964) | (5,534) |
Borrowings (repayments) loans payable - related parties | 0 | 0 |
Payments for debt issuance costs | (29) | (83) |
Purchase of treasury stock | (3,214) | (7,748) |
Proceeds from exercise of stock options | 56 | 111 |
Purchase of noncontrolling interest | (473) | (922) |
Distributions to noncontrolling interest | (114) | (115) |
Contributions from parent | 0 | 0 |
Distributions to parent | 0 | 0 |
Borrowings from real estate investments through variable interest entities | 170 | 0 |
Distributions to variable interest entities noncontrolling interest | (107) | 0 |
Other, net | (7) | (8) |
Net cash flows from financing activities | (1,130) | (2,184) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 39 | 629 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 621 | 1,535 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | 660 | 2,164 |
Eliminations [Member] | ||
Condensed Consolidating Statements of Cash Flows | ||
Net cash flows from operating activities | 0 | 0 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | 0 | 0 |
Change in accrued expenses related to capital expenditures | 0 | 0 |
Real estate investment through variable interest entity | 0 | |
Contributions to subsidiaries | 310 | 804 |
Distributions from subsidiaries | (11,471) | (22,312) |
Other, net | 0 | 0 |
Net cash flows from investing activities | (11,161) | (21,508) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 0 | 0 |
Repayments of long-term debt | 0 | 0 |
Borrowings (repayments) loans payable - related parties | 0 | 0 |
Payments for debt issuance costs | 0 | 0 |
Purchase of treasury stock | 0 | 0 |
Proceeds from exercise of stock options | 0 | 0 |
Purchase of noncontrolling interest | 0 | 0 |
Distributions to noncontrolling interest | 0 | 0 |
Contributions from parent | (310) | (804) |
Distributions to parent | 11,471 | 22,312 |
Borrowings from real estate investments through variable interest entities | 0 | |
Distributions to variable interest entities noncontrolling interest | 0 | |
Other, net | 0 | 0 |
Net cash flows from financing activities | 11,161 | 21,508 |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 0 | 0 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 0 | 0 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | 0 | 0 |
Charter [Member] | ||
Condensed Consolidating Statements of Cash Flows | ||
Net cash flows from operating activities | 4 | 95 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | 0 | 0 |
Change in accrued expenses related to capital expenditures | 0 | 0 |
Real estate investment through variable interest entity | 0 | |
Contributions to subsidiaries | (56) | (111) |
Distributions from subsidiaries | 3,217 | 7,759 |
Other, net | 0 | 0 |
Net cash flows from investing activities | 3,161 | 7,648 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 0 | 0 |
Repayments of long-term debt | 0 | 0 |
Borrowings (repayments) loans payable - related parties | (7) | (163) |
Payments for debt issuance costs | 0 | 0 |
Purchase of treasury stock | (3,214) | (7,748) |
Proceeds from exercise of stock options | 56 | 111 |
Purchase of noncontrolling interest | 0 | 0 |
Distributions to noncontrolling interest | 0 | 0 |
Contributions from parent | 0 | 0 |
Distributions to parent | 0 | 0 |
Borrowings from real estate investments through variable interest entities | 0 | |
Distributions to variable interest entities noncontrolling interest | 0 | |
Other, net | 0 | 0 |
Net cash flows from financing activities | (3,165) | (7,800) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 0 | (57) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 0 | 57 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | 0 | 0 |
Intermediate Holding Companies [Member] | ||
Condensed Consolidating Statements of Cash Flows | ||
Net cash flows from operating activities | 91 | 80 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | 0 | 0 |
Change in accrued expenses related to capital expenditures | 0 | 0 |
Real estate investment through variable interest entity | (15) | |
Contributions to subsidiaries | (127) | 0 |
Distributions from subsidiaries | 3,763 | 8,641 |
Other, net | (10) | 0 |
Net cash flows from investing activities | 3,611 | 8,641 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 0 | 0 |
Repayments of long-term debt | 0 | 0 |
Borrowings (repayments) loans payable - related parties | 0 | 0 |
Payments for debt issuance costs | 0 | 0 |
Purchase of treasury stock | 0 | 0 |
Proceeds from exercise of stock options | 0 | 0 |
Purchase of noncontrolling interest | (473) | (922) |
Distributions to noncontrolling interest | (113) | (115) |
Contributions from parent | 56 | 111 |
Distributions to parent | (3,217) | (7,759) |
Borrowings from real estate investments through variable interest entities | 170 | |
Distributions to variable interest entities noncontrolling interest | (107) | |
Other, net | 0 | 0 |
Net cash flows from financing activities | (3,684) | (8,685) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 18 | 36 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 291 | 154 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | 309 | 190 |
CCO Holdings [Member] | ||
Condensed Consolidating Statements of Cash Flows | ||
Net cash flows from operating activities | (728) | (504) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | 0 | 0 |
Change in accrued expenses related to capital expenditures | 0 | 0 |
Real estate investment through variable interest entity | 0 | |
Contributions to subsidiaries | (127) | (693) |
Distributions from subsidiaries | 4,491 | 5,912 |
Other, net | 0 | 0 |
Net cash flows from investing activities | 4,364 | 5,219 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 0 | 4,747 |
Repayments of long-term debt | 0 | (775) |
Borrowings (repayments) loans payable - related parties | 0 | 0 |
Payments for debt issuance costs | 0 | (46) |
Purchase of treasury stock | 0 | 0 |
Proceeds from exercise of stock options | 0 | 0 |
Purchase of noncontrolling interest | 0 | 0 |
Distributions to noncontrolling interest | 0 | 0 |
Contributions from parent | 127 | 0 |
Distributions to parent | (3,763) | (8,641) |
Borrowings from real estate investments through variable interest entities | 0 | |
Distributions to variable interest entities noncontrolling interest | 0 | |
Other, net | 0 | 0 |
Net cash flows from financing activities | (3,636) | (4,715) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 0 | 0 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 0 | 0 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | 0 | 0 |
Charter Operating and Restricted Subsidiaries [Member] | ||
Condensed Consolidating Statements of Cash Flows | ||
Net cash flows from operating activities | 9,232 | 9,025 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (6,692) | (6,096) |
Change in accrued expenses related to capital expenditures | (620) | 276 |
Real estate investment through variable interest entity | 0 | |
Contributions to subsidiaries | 0 | 0 |
Distributions from subsidiaries | 0 | 0 |
Other, net | (93) | (63) |
Net cash flows from investing activities | (7,405) | (5,883) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 11,552 | 7,368 |
Repayments of long-term debt | (8,964) | (4,759) |
Borrowings (repayments) loans payable - related parties | 7 | 163 |
Payments for debt issuance costs | (29) | (37) |
Purchase of treasury stock | 0 | 0 |
Proceeds from exercise of stock options | 0 | 0 |
Purchase of noncontrolling interest | 0 | 0 |
Distributions to noncontrolling interest | (1) | 0 |
Contributions from parent | 127 | 693 |
Distributions to parent | (4,491) | (5,912) |
Borrowings from real estate investments through variable interest entities | 0 | |
Distributions to variable interest entities noncontrolling interest | 0 | |
Other, net | (7) | (8) |
Net cash flows from financing activities | (1,806) | (2,492) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 21 | 650 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 330 | 1,324 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | $ 351 | $ 1,974 |