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. Comprehensive income equaled net income attributable to Charter shareholders for the nine months ended September 30, 2019 . Condensed consolidating financial statements as of September 30, 2019 and December 31, 2018 and for the nine months ended September 30, 2019 and 2018 follow. Charter Communications, Inc. and Subsidiaries Condensed Consolidating Balance Sheets As of September 30, 2019 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 $ — $ 218 $ — $ 290 $ — $ 508 Accounts receivable, net 1 31 — 2,252 — 2,284 Receivables from related party 26 463 55 — (544 ) — Prepaid expenses and other current assets 7 41 — 548 — 596 Total current assets 34 753 55 3,090 (544 ) 3,388 RESTRICTED CASH — 89 — — — 89 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 658 — 33,560 — 34,218 Customer relationships, net — — — 7,956 — 7,956 Franchises — — — 67,322 — 67,322 Goodwill — — — 29,554 — 29,554 Total investment in cable properties, net — 658 — 138,392 — 139,050 INVESTMENT IN SUBSIDIARIES 50,471 56,947 76,898 — (184,316 ) — OPERATING LEASE RIGHT-OF-USE ASSETS — 173 — 930 — 1,103 LOANS RECEIVABLE – RELATED PARTY 260 699 545 — (1,504 ) — OTHER NONCURRENT ASSETS 2 237 — 1,398 — 1,637 Total assets $ 50,767 $ 59,556 $ 77,498 $ 143,810 $ (186,364 ) $ 145,267 LIABILITIES AND SHAREHOLDERS’/MEMBER’S EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 26 $ 916 $ 302 $ 7,019 $ — $ 8,263 Operating lease liabilities — 30 — 180 — 210 Payables to related party — — — 544 (544 ) — Current portion of long-term debt — — — 3,509 — 3,509 Total current liabilities 26 946 302 11,252 (544 ) 11,982 LONG-TERM DEBT — — 20,249 51,141 — 71,390 LOANS PAYABLE – RELATED PARTY — — — 1,504 (1,504 ) — DEFERRED INCOME TAXES 17,542 15 — 52 — 17,609 LONG-TERM OPERATING LEASE LIABILITIES — 197 — 794 — 991 OTHER LONG-TERM LIABILITIES 225 402 — 2,146 — 2,773 SHAREHOLDERS’/MEMBER’S EQUITY Controlling interest 32,974 50,471 56,947 76,898 (184,316 ) 32,974 Noncontrolling interests — 7,525 — 23 — 7,548 Total shareholders’/member’s equity 32,974 57,996 56,947 76,921 (184,316 ) 40,522 Total liabilities and shareholders’/member’s equity $ 50,767 $ 59,556 $ 77,498 $ 143,810 $ (186,364 ) $ 145,267 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Balance Sheets As of December 31, 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 $ — $ 251 $ — $ 300 $ — $ 551 Accounts receivable, net 1 33 — 1,699 — 1,733 Receivables from related party 27 518 57 — (602 ) — Prepaid expenses and other current assets 14 32 — 400 — 446 Total current assets 42 834 57 2,399 (602 ) 2,730 RESTRICTED CASH — 214 — — — 214 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 468 — 34,658 — 35,126 Customer relationships, net — — — 9,565 — 9,565 Franchises — — — 67,319 — 67,319 Goodwill — — — 29,554 — 29,554 Total investment in cable properties, net — 468 — 141,096 — 141,564 INVESTMENT IN SUBSIDIARIES 53,592 60,530 78,960 — (193,082 ) — LOANS RECEIVABLE – RELATED PARTY 251 674 526 — (1,451 ) — OTHER NONCURRENT ASSETS — 222 — 1,403 (3 ) 1,622 Total assets $ 53,885 $ 62,942 $ 79,543 $ 144,898 $ (195,138 ) $ 146,130 LIABILITIES AND SHAREHOLDERS’/MEMBER’S EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 9 $ 893 $ 283 $ 7,620 $ — $ 8,805 Payables to related party — — — 602 (602 ) — Current portion of long-term debt — — — 3,290 — 3,290 Total current liabilities 9 893 283 11,512 (602 ) 12,095 LONG-TERM DEBT — — 18,730 50,807 — 69,537 LOANS PAYABLE – RELATED PARTY — — — 1,451 (1,451 ) — DEFERRED INCOME TAXES 17,376 16 — — (3 ) 17,389 OTHER LONG-TERM LIABILITIES 215 478 — 2,144 — 2,837 SHAREHOLDERS’/MEMBER’S EQUITY Controlling interest 36,285 53,592 60,530 78,960 (193,082 ) 36,285 Noncontrolling interests — 7,963 — 24 — 7,987 Total shareholders’/member’s equity 36,285 61,555 60,530 78,984 (193,082 ) 44,272 Total liabilities and shareholders’/member’s equity $ 53,885 $ 62,942 $ 79,543 $ 144,898 $ (195,138 ) $ 146,130 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Operations For the nine months ended September 30, 2019 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated REVENUES $ 39 $ 880 $ — $ 33,997 $ (913 ) $ 34,003 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 39 843 — 21,950 (917 ) 21,915 Depreciation and amortization — 12 — 7,453 — 7,465 Other operating (income) expense, net — (10 ) — 77 4 71 39 845 — 29,480 (913 ) 29,451 Income from operations — 35 — 4,517 — 4,552 OTHER INCOME (EXPENSES): Interest income (expense), net 7 25 (785 ) (2,080 ) — (2,833 ) Loss on financial instruments, net — — — (116 ) — (116 ) Other pension benefits, net — — — 27 — 27 Other expense, net — (2 ) — (129 ) — (131 ) Equity in income of subsidiaries 1,180 1,347 2,132 — (4,659 ) — 1,187 1,370 1,347 (2,298 ) (4,659 ) (3,053 ) Income before income taxes 1,187 1,405 1,347 2,219 (4,659 ) 1,499 Income tax expense (233 ) (10 ) — (86 ) — (329 ) Consolidated net income 954 1,395 1,347 2,133 (4,659 ) 1,170 Less: Net income attributable to noncontrolling interests — (215 ) — (1 ) — (216 ) Net income $ 954 $ 1,180 $ 1,347 $ 2,132 $ (4,659 ) $ 954 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, net — — — 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 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 Cash Flows For the nine months ended September 30, 2019 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 $ (22 ) $ 65 $ (762 ) $ 9,109 $ — $ 8,390 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — (67 ) — (4,913 ) 67 (4,913 ) Change in accrued expenses related to capital expenditures — — — (449 ) — (449 ) Real estate investments through variable interest entities — (125 ) — — — (125 ) Contributions to subsidiaries (117 ) (54 ) (1,559 ) — 1,730 — Distributions from subsidiaries 4,601 5,222 5,988 — (15,811 ) — Other, net — (8 ) — 85 (67 ) 10 Net cash flows from investing activities 4,484 4,968 4,429 (5,277 ) (14,081 ) (5,477 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — 1,515 11,642 — 13,157 Repayments of long-term debt — — — (10,886 ) — (10,886 ) Payments for debt issuance costs — — (14 ) (34 ) — (48 ) Purchase of treasury stock (4,568 ) — — — — (4,568 ) Proceeds from exercise of stock options 106 — — — — 106 Purchase of noncontrolling interest — (593 ) — — — (593 ) Distributions to noncontrolling interest — (114 ) — (2 ) — (116 ) Contributions from parent — 117 54 1,559 (1,730 ) — Distributions to parent — (4,601 ) (5,222 ) (5,988 ) 15,811 — Other, net — — — (133 ) — (133 ) Net cash flows from financing activities (4,462 ) (5,191 ) (3,667 ) (3,842 ) 14,081 (3,081 ) NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH — (158 ) — (10 ) — (168 ) CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period — 465 — 300 — 765 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period $ — $ 307 $ — $ 290 $ — $ 597 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 ) Contribution 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 INCRASE 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 |