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 December 31, 2019 and 2018 and for the years ended December 31, 2019 , 2018 and 2017 follow. Charter Communications, Inc. and Subsidiaries Condensed Consolidating Balance Sheet As of December 31, 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 $ — $ 234 $ 500 $ 2,749 $ — $ 3,483 Accounts receivable, net 1 31 — 2,195 — 2,227 Receivables from related party 34 264 59 — (357 ) — Prepaid expenses and other current assets 10 40 — 711 — 761 Total current assets 45 569 559 5,655 (357 ) 6,471 RESTRICTED CASH — 66 — — — 66 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 683 — 33,908 — 34,591 Customer relationships, net — — — 7,453 — 7,453 Franchises — — — 67,322 — 67,322 Goodwill — — — 29,554 — 29,554 Total investment in cable properties, net — 683 — 138,237 — 138,920 INVESTMENT IN SUBSIDIARIES 49,024 55,266 76,409 — (180,699 ) — OPERATING LEASE RIGHT-OF-USE ASSETS — 167 — 925 — 1,092 LOANS RECEIVABLE – RELATED PARTY 260 699 545 — (1,504 ) — OTHER NONCURRENT ASSETS 2 211 — 1,426 — 1,639 Total assets $ 49,331 $ 57,661 $ 77,513 $ 146,243 $ (182,560 ) $ 148,188 LIABILITIES AND SHAREHOLDERS’/MEMBER’S EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 18 $ 695 $ 296 $ 7,662 $ — $ 8,671 Operating lease liabilities — 30 — 184 — 214 Payables to related party — — — 357 (357 ) — Current portion of long-term debt — — — 3,500 — 3,500 Total current liabilities 18 725 296 11,703 (357 ) 12,385 LONG-TERM DEBT — — 21,951 53,627 — 75,578 LOANS PAYABLE – RELATED PARTY — — — 1,504 (1,504 ) — DEFERRED INCOME TAXES 17,641 15 — 55 — 17,711 LONG-TERM OPERATING LEASE LIABILITIES — 191 — 788 — 979 OTHER LONG-TERM LIABILITIES 227 363 — 2,134 — 2,724 SHAREHOLDERS’/MEMBER’S EQUITY Controlling interest 31,445 49,024 55,266 76,409 (180,699 ) 31,445 Noncontrolling interests — 7,343 — 23 — 7,366 Total shareholders’/member’s equity 31,445 56,367 55,266 76,432 (180,699 ) 38,811 Total liabilities and shareholders’/member’s equity $ 49,331 $ 57,661 $ 77,513 $ 146,243 $ (182,560 ) $ 148,188 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Balance Sheet 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 Statement of Operations For the year ended December 31, 2019 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated REVENUES $ 52 $ 1,170 $ — $ 45,756 $ (1,214 ) $ 45,764 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 52 1,114 — 29,275 (1,217 ) 29,224 Depreciation and amortization — 15 — 9,911 — 9,926 Other operating (income) expenses, net — (11 ) — 111 3 103 52 1,118 — 39,297 (1,214 ) 39,253 Income from operations — 52 — 6,459 — 6,511 OTHER INCOME (EXPENSES): Interest income (expense), net 10 32 (1,067 ) (2,772 ) — (3,797 ) Loss on extinguishment of debt — — (22 ) (3 ) — (25 ) Loss on financial instruments, net — — — (54 ) — (54 ) Other pension costs, net — — — (69 ) — (69 ) Other expense, net — (4 ) — (131 ) — (135 ) Equity in income of subsidiaries 1,998 2,251 3,340 — (7,589 ) — 2,008 2,279 2,251 (3,029 ) (7,589 ) (4,080 ) Income before income taxes 2,008 2,331 2,251 3,430 (7,589 ) 2,431 Income tax expense (340 ) (10 ) — (89 ) — (439 ) Consolidated net income 1,668 2,321 2,251 3,341 (7,589 ) 1,992 Less: Net income attributable to noncontrolling interests — (323 ) — (1 ) — (324 ) Net income $ 1,668 $ 1,998 $ 2,251 $ 3,340 $ (7,589 ) $ 1,668 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statement of Operations For the year ended December 31, 2018 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated REVENUES $ 46 $ 1,141 $ — $ 43,620 $ (1,173 ) $ 43,634 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 46 1,096 — 27,891 (1,173 ) 27,860 Depreciation and amortization — 11 — 10,307 — 10,318 Other operating expenses, net — 5 — 230 — 235 46 1,112 — 38,428 (1,173 ) 38,413 Income from operations — 29 — 5,192 — 5,221 OTHER INCOME (EXPENSES): Interest income (expense), net 9 30 (1,016 ) (2,563 ) — (3,540 ) Loss on financial instruments, net — — — (110 ) — (110 ) Other pension benefits, net — — — 192 — 192 Other expense, net — (31 ) — (46 ) — (77 ) Equity in income of subsidiaries 1,377 1,632 2,648 — (5,657 ) — 1,386 1,631 1,632 (2,527 ) (5,657 ) (3,535 ) Income before income taxes 1,386 1,660 1,632 2,665 (5,657 ) 1,686 Income tax expense (156 ) (8 ) — (16 ) — (180 ) Consolidated net income 1,230 1,652 1,632 2,649 (5,657 ) 1,506 Less: Net income attributable to noncontrolling interests — (275 ) — (1 ) — (276 ) Net income $ 1,230 $ 1,377 $ 1,632 $ 2,648 $ (5,657 ) $ 1,230 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statement of Operations For the year ended December 31, 2017 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated REVENUES $ 90 $ 1,186 $ — $ 41,578 $ (1,273 ) $ 41,581 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 90 1,164 — 26,560 (1,273 ) 26,541 Depreciation and amortization — 9 — 10,579 — 10,588 Other operating (income) expenses, net (101 ) 3 — 444 — 346 (11 ) 1,176 — 37,583 (1,273 ) 37,475 Income from operations 101 10 — 3,995 — 4,106 OTHER INCOME (EXPENSES): Interest income (expense), net 5 20 (883 ) (2,232 ) — (3,090 ) Loss on extinguishment of debt — — (34 ) (6 ) — (40 ) Gain on financial instruments, net — — — 69 — 69 Other pension benefits — — — 1 — 1 Other expense, net — (14 ) — (4 ) — (18 ) Equity in income of subsidiaries 680 882 1,799 — (3,361 ) — 685 888 882 (2,172 ) (3,361 ) (3,078 ) Income before income taxes 786 898 882 1,823 (3,361 ) 1,028 Income tax benefit (expense) 9,109 1 — (23 ) — 9,087 Consolidated net income 9,895 899 882 1,800 (3,361 ) 10,115 Less: Net income attributable to noncontrolling interests — (219 ) — (1 ) — (220 ) Net income $ 9,895 $ 680 $ 882 $ 1,799 $ (3,361 ) $ 9,895 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statement of Comprehensive Income For the year ended December 31, 2019 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated Consolidated net income $ 1,668 $ 2,321 $ 2,251 $ 3,341 $ (7,589 ) $ 1,992 Foreign currency translation adjustment 2 2 2 2 (6 ) 2 Consolidated comprehensive income 1,670 2,323 2,253 3,343 (7,595 ) 1,994 Less: Comprehensive income attributable to noncontrolling interests — (323 ) — (1 ) — (324 ) Comprehensive income $ 1,670 $ 2,000 $ 2,253 $ 3,342 $ (7,595 ) $ 1,670 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statement of Comprehensive Income For the year ended December 31, 2018 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated Consolidated net income $ 1,230 $ 1,652 $ 1,632 $ 2,649 $ (5,657 ) $ 1,506 Foreign currency translation adjustment (1 ) (1 ) (1 ) (1 ) 3 (1 ) Consolidated comprehensive income 1,229 1,651 1,631 2,648 (5,654 ) 1,505 Less: Comprehensive income attributable to noncontrolling interests — (275 ) — (1 ) — (276 ) Comprehensive income $ 1,229 $ 1,376 $ 1,631 $ 2,647 $ (5,654 ) $ 1,229 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statement of Comprehensive Income For the year ended December 31, 2017 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated Consolidated net income $ 9,895 $ 899 $ 882 $ 1,800 $ (3,361 ) $ 10,115 Net impact of interest rate derivative instruments 5 5 5 5 (15 ) 5 Foreign currency translation adjustment 1 1 1 1 (3 ) 1 Consolidated comprehensive income 9,901 905 888 1,806 (3,379 ) 10,121 Less: Comprehensive income attributable to noncontrolling interests — (219 ) — (1 ) — (220 ) Comprehensive income $ 9,901 $ 686 $ 888 $ 1,805 $ (3,379 ) $ 9,901 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statement of Cash Flows For the year ended December 31, 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 $ (36 ) $ 76 $ (1,051 ) $ 12,759 $ — $ 11,748 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — (67 ) — (7,195 ) 67 (7,195 ) Change in accrued expenses related to capital expenditures — — — 55 — 55 Real estate investments through variable interest entities — (148 ) — — — (148 ) Contribution to subsidiaries (119 ) (59 ) (2,860 ) — 3,038 — Distributions from subsidiaries 6,910 7,891 9,068 — (23,869 ) — Other, net — (30 ) — 54 (67 ) (43 ) Net cash flows from investing activities 6,791 7,587 6,208 (7,086 ) (20,831 ) (7,331 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — 4,584 15,101 — 19,685 Repayments of long-term debt — — (1,366 ) (11,943 ) — (13,309 ) Payment for debt issuance costs — — (43 ) (60 ) — (103 ) Purchase of treasury stock (6,873 ) — — — — (6,873 ) Proceeds from exercise of stock options 118 — — — — 118 Purchase of noncontrolling interest — (885 ) — — — (885 ) Distributions to noncontrolling interest — (152 ) — (2 ) — (154 ) Contributions from parent — 119 59 2,860 (3,038 ) — Distributions to parent — (6,910 ) (7,891 ) (9,068 ) 23,869 — Other, net — — — (112 ) — (112 ) Net cash flows from financing activities (6,755 ) (7,828 ) (4,657 ) (3,224 ) 20,831 (1,633 ) NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH — (165 ) 500 2,449 — 2,784 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period — 465 — 300 — 765 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period $ — $ 300 $ 500 $ 2,749 $ — $ 3,549 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statement of Cash Flows For the year ended December 31, 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 $ (10 ) $ 120 $ (1,009 ) $ 12,666 $ — $ 11,767 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — (16 ) — (9,109 ) — (9,125 ) Change in accrued expenses related to capital expenditures — — — (470 ) — (470 ) Real estate investments through variable interest entities — (21 ) — — — (21 ) Contribution to subsidiaries (69 ) (142 ) (142 ) — 353 — Distributions from subsidiaries 4,421 5,178 6,187 — (15,786 ) — Other, net — (20 ) — (100 ) — (120 ) Net cash flows from investing activities 4,352 4,979 6,045 (9,679 ) (15,433 ) (9,736 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — — 13,820 — 13,820 Repayments of long-term debt — — — (10,769 ) — (10,769 ) Borrowings (repayments) of loans payable - related parties (12 ) — — 12 — — Payment for debt issuance costs — — — (29 ) — (29 ) Purchase of treasury stock (4,399 ) — — — — (4,399 ) Proceeds from exercise of stock options 69 — — — — 69 Purchase of noncontrolling interest — (656 ) — — — (656 ) Distributions to noncontrolling interest — (152 ) — (1 ) — (153 ) Contributions from parent — 69 142 142 (353 ) — Distributions to parent — (4,421 ) (5,178 ) (6,187 ) 15,786 — Borrowings for real estate investments through variable interest entities — 342 — — — 342 Distributions to variable interest entities noncontrolling interest — (107 ) — — — (107 ) Other, net — — — (5 ) — (5 ) Net cash flows from financing activities (4,342 ) (4,925 ) (5,036 ) (3,017 ) 15,433 (1,887 ) NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH — 174 — (30 ) — 144 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period — 291 — 330 — 621 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period $ — $ 465 $ — $ 300 $ — $ 765 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statement of Cash Flows For the year ended December 31, 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: $ 159 $ 187 $ (814 ) $ 12,422 $ — $ 11,954 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — — — (8,681 ) — (8,681 ) Change in accrued expenses related to capital expenditures — — — 820 — 820 Real estate investments through variable interest entities — (105 ) — — — (105 ) Contribution to subsidiaries (115 ) — (693 ) — 808 — Distributions from subsidiaries 11,732 13,488 9,598 — (34,818 ) — Other, net — — — (132 ) — (132 ) Net cash flows from investing activities 11,617 13,383 8,905 (7,993 ) (34,010 ) (8,098 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — 6,231 19,045 — 25,276 Repayments of long-term debt — — (775 ) (15,732 ) — (16,507 ) Borrowings (repayments) of loans payable - related parties (234 ) — — 234 — — Payment for debt issuance costs — — (59 ) (52 ) — (111 ) Purchase of treasury stock (11,715 ) — — — — (11,715 ) Proceeds from exercise of stock options 116 — — — — 116 Purchase of noncontrolling interest — (1,665 ) — — — (1,665 ) Distributions to noncontrolling interest — (151 ) — (2 ) — (153 ) Contributions from parent — 115 — 693 (808 ) — Distributions to parent — (11,732 ) (13,488 ) (9,598 ) 34,818 — Other, net — — — (11 ) — (11 ) Net cash flows from financing activities (11,833 ) (13,433 ) (8,091 ) (5,423 ) 34,010 (4,770 ) NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (57 ) 137 — (994 ) — (914 ) CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period 57 154 — 1,324 — 1,535 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period $ — $ 291 $ — $ 330 $ — $ 621 |