Document And Entity Information
Document And Entity Information | 3 Months Ended |
Mar. 31, 2020shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2020 |
Document Transition Report | false |
Entity File Number | 001-33664 |
Entity Registrant Name | Charter Communications, Inc. |
Entity Central Index Key | 0001091667 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 84-1496755 |
Entity Address, Address Line One | 400 Atlantic Street |
Entity Address, City or Town | Stamford |
Entity Address, State or Province | CT |
Entity Address, Postal Zip Code | 06901 |
City Area Code | 203 |
Local Phone Number | 905-7801 |
Title of 12(b) Security | Class A Common Stock $.001 Par Value |
Trading Symbol | CHTR |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Class A Common Stock | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 206,457,540 |
Class B Common Stock | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 2,908 | $ 3,483 |
Accounts receivable, less allowance for doubtful accounts of $175 and $151, respectively | 2,091 | 2,227 |
Prepaid expenses and other current assets | 760 | 761 |
Total current assets | 5,759 | 6,471 |
RESTRICTED CASH | 28 | 66 |
INVESTMENT IN CABLE PROPERTIES: | ||
Property, plant and equipment, net of accumulated depreciation of $29,038 and $27,656, respectively | 34,096 | 34,591 |
Customer relationships, net | 6,955 | 7,453 |
Franchises | 67,322 | 67,322 |
Goodwill | 29,554 | 29,554 |
Total investment in cable properties, net | 137,927 | 138,920 |
OTHER NONCURRENT ASSETS | 2,838 | 2,731 |
Total assets | 146,552 | 148,188 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued liabilities | 8,310 | 8,885 |
Current portion of long-term debt | 4,905 | 3,500 |
Total current liabilities | 13,215 | 12,385 |
LONG-TERM DEBT | 74,787 | 75,578 |
DEFERRED INCOME TAXES | 17,665 | 17,711 |
OTHER LONG-TERM LIABILITIES | 4,163 | 3,703 |
Preferred stock; $0.001 par value; 250 million shares authorized; no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 31,544 | 31,405 |
Retained earnings | 436 | 40 |
Treasury stock at cost; 5,029,955 and no shares, respectively | (2,352) | 0 |
Accumulated other comprehensive loss | 0 | 0 |
Total Charter shareholders’ equity | 29,628 | 31,445 |
Noncontrolling interests | 7,094 | 7,366 |
Total shareholders’ equity | 36,722 | 38,811 |
Total liabilities and shareholders’ equity | 146,552 | 148,188 |
Class A Common Stock | ||
Common stock | $ 0 | $ 0 |
Common Stock, Shares, Issued | 211,487,495 | 209,975,963 |
Class B Common Stock | ||
Common stock | $ 0 | $ 0 |
Common Stock, Shares, Issued | 1 | 1 |
CONSOLIDATED BALANCE SHEET (PAR
CONSOLIDATED BALANCE SHEET (PARENTHETICALS) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Allowance for doubtful accounts | $ 175 | $ 151 |
INVESTMENT IN CABLE PROPERTIES: | ||
Property, plant and equipment, accumulated depreciation | $ 29,038 | $ 27,656 |
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) | 5,029,955 | 0 |
Class A Common Stock | ||
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) | 211,487,495 | 209,975,963 |
Common stock, shares outstanding (shares) | 206,457,540 | 209,975,963 |
Class B Common Stock | ||
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
REVENUES | $ 11,738 | $ 11,206 |
COSTS AND EXPENSES: | ||
Operating costs and expenses (exclusive of items shown separately below) | 7,432 | 7,236 |
Depreciation and amortization | 2,497 | 2,550 |
Other operating (income) expenses, net | 7 | (5) |
Total costs and expenses | 9,936 | 9,781 |
Income from operations | 1,802 | 1,425 |
OTHER INCOME (EXPENSES): | ||
Interest expense, net | (980) | (925) |
Loss on extinguishment of debt | (27) | 0 |
Gain (loss) on financial instruments, net | (318) | 37 |
Other pension benefits, net | 10 | 9 |
Other income (expense), net | 9 | (110) |
Total other income (expense) | (1,306) | (989) |
Income before income taxes | 496 | 436 |
Income tax expense | (29) | (119) |
Consolidated net income | 467 | 317 |
Less: Net income attributable to noncontrolling interests | (71) | (64) |
Net income attributable to Charter shareholders | $ 396 | $ 253 |
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CHARTER SHAREHOLDERS: | ||
Basic (dollars per share) | $ 1.91 | $ 1.13 |
Diluted (dollars per share) | $ 1.86 | $ 1.11 |
Weighted average common shares outstanding, basic (shares) | 207,831,305 | 224,630,122 |
Weighted average common shares outstanding, diluted (shares) | 212,810,613 | 227,595,365 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common StockClass A Common Stock | Common StockClass B Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Charter Shareholders’ Equity | Noncontrolling Interests |
Balance at Dec. 31, 2018 | $ 44,272 | $ 0 | $ 0 | $ 33,507 | $ 2,780 | $ 0 | $ (2) | $ 36,285 | $ 7,987 |
Rollforward of Consolidated Shareholders' Equity: | |||||||||
Consolidated net income | 317 | 0 | 0 | 0 | 253 | 0 | 0 | 253 | 64 |
Stock compensation expense | 85 | 0 | 0 | 85 | 0 | 0 | 0 | 85 | 0 |
Exercise of stock options | 44 | 0 | 0 | 44 | 0 | 0 | 0 | 44 | 0 |
Purchases of treasury stock | (940) | 0 | 0 | 0 | 0 | (940) | 0 | (940) | 0 |
Purchase of noncontrolling interest, net of tax | (89) | 0 | 0 | (15) | 0 | 0 | 0 | (15) | (74) |
Change in noncontrolling interest ownership, net of tax | (7) | 0 | 0 | 22 | 0 | 0 | 0 | 22 | (29) |
Distributions to noncontrolling interest | (39) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (39) |
Balance at Mar. 31, 2019 | 43,643 | 0 | 0 | 33,643 | 3,033 | (940) | (2) | 35,734 | 7,909 |
Balance at Dec. 31, 2019 | 38,811 | 0 | 0 | 31,405 | 40 | 0 | 0 | 31,445 | 7,366 |
Rollforward of Consolidated Shareholders' Equity: | |||||||||
Consolidated net income | 467 | 0 | 0 | 0 | 396 | 0 | 0 | 396 | 71 |
Stock compensation expense | 90 | 0 | 0 | 90 | 0 | 0 | 0 | 90 | 0 |
Exercise of stock options | 93 | 0 | 0 | 93 | 0 | 0 | 0 | 93 | 0 |
Issuance of equity | 23 | 0 | 0 | 23 | 0 | 0 | 0 | 23 | 0 |
Purchases of treasury stock | (2,352) | 0 | 0 | 0 | 0 | (2,352) | 0 | (2,352) | 0 |
Purchase of noncontrolling interest, net of tax | (344) | 0 | 0 | (149) | 0 | 0 | 0 | (149) | (195) |
Change in noncontrolling interest ownership, net of tax | (27) | 0 | 0 | 82 | 0 | 0 | 0 | 82 | (109) |
Distributions to noncontrolling interest | (39) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (39) |
Balance at Mar. 31, 2020 | $ 36,722 | $ 0 | $ 0 | $ 31,544 | $ 436 | $ (2,352) | $ 0 | $ 29,628 | $ 7,094 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Consolidated net income | $ 467 | $ 317 |
Adjustments to reconcile consolidated net income to net cash flows from operating activities: | ||
Depreciation and amortization | 2,497 | 2,550 |
Stock compensation expense | 90 | 85 |
Noncash interest income, net | (12) | (55) |
Other pension benefits, net | (10) | (9) |
Loss on extinguishment of debt | 27 | 0 |
(Gain) loss on financial instruments, net | 318 | (37) |
Deferred income taxes | (14) | 81 |
Other, net | (20) | 98 |
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: | ||
Accounts receivable | 136 | 155 |
Prepaid expenses and other assets | (104) | (300) |
Accounts payable, accrued liabilities and other | (155) | (199) |
Net cash flows from operating activities | 3,220 | 2,686 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (1,461) | (1,665) |
Change in accrued expenses related to capital expenditures | (388) | (376) |
Real estate investments through variable interest entities | (38) | (39) |
Other, net | 37 | 0 |
Net cash flows from investing activities | (1,850) | (2,080) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 4,339 | 6,884 |
Repayments of long-term debt | (3,589) | (5,572) |
Payments for debt issuance costs | (41) | (25) |
Issuance of equity | 23 | 0 |
Purchase of treasury stock | (2,352) | (940) |
Proceeds from exercise of stock options | 93 | 44 |
Purchase of noncontrolling interest | (393) | (93) |
Distributions to noncontrolling interest | (39) | (39) |
Other, net | (24) | (4) |
Net cash flows from financing activities | (1,983) | 255 |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (613) | 861 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 3,549 | 765 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | 2,936 | 1,626 |
CASH PAID FOR INTEREST | 1,050 | 966 |
CASH PAID FOR TAXES | $ 19 | $ 4 |
Organization and Basis of Prese
Organization and Basis of Presentation (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
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 a leading broadband connectivity company and cable operator. Over an advanced communications network, the Company offers a full range of state-of-the-art residential and business services including Spectrum Internet, TV, Mobile and Voice. For small and medium-sized companies, Spectrum Business ® delivers the same suite of broadband products and services coupled with special features and applications to enhance productivity, while for larger businesses and government entities, Spectrum Enterprise provides highly customized, fiber-based solutions. Spectrum Reach ® delivers tailored advertising and production for the modern media landscape. The Company also distributes award-winning news coverage, sports and high-quality original programming to its customers through Spectrum Networks and Spectrum Originals. 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, impairments of franchises and goodwill, pension benefits and income taxes. Actual results could differ from those estimates. Certain prior period amounts have been reclassified to conform with the 2020 presentation. |
Franchises, Goodwill and Other
Franchises, Goodwill and Other Intangible Assets (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [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 March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Indefinite-lived intangible assets: Franchises $ 67,322 $ — $ 67,322 $ 67,322 $ — $ 67,322 Goodwill 29,554 — 29,554 29,554 — 29,554 Trademarks 159 — 159 159 — 159 $ 97,035 $ — $ 97,035 $ 97,035 $ — $ 97,035 Finite-lived intangible assets: Customer relationships $ 18,230 $ (11,275) $ 6,955 $ 18,230 $ (10,777) $ 7,453 Other intangible assets 405 (132) 273 405 (122) 283 $ 18,635 $ (11,407) $ 7,228 $ 18,635 $ (10,899) $ 7,736 Amortization expense related to customer relationships and other intangible assets for the three months ended March 31, 2020 and 2019 was $508 million and $578 million, respectively. The Company expects amortization expense on its finite-lived intangible assets will be as follows: Nine months ended December 31, 2020 $ 1,366 2021 1,599 2022 1,329 2023 1,072 2024 821 Thereafter 1,041 $ 7,228 |
Investments (Notes)
Investments (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Investments [Abstract] | |
Investments | Investments 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 to Charter 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 sheets as of March 31, 2020 and December 31, 2019 as follows. March 31, 2020 December 31, 2019 Assets Restricted cash $ 28 $ 66 Property, plant and equipment $ 335 $ 295 Liabilities Current liabilities $ 13 $ 11 Other long-term liabilities $ 350 $ 350 Property, plant and equipment includes land, a parking garage and building construction costs, including the capitalization of qualifying interest. As of March 31, 2020 and December 31, 2019, other long-term liabilities include $337 million and $339 million, respectively, in VIE's mortgage note liability and $13 million and $11 million, respectively, in liability-classified noncontrolling interest recorded at amortized cost with accretion towards settlement of the put/call option in the lease. The consolidated statements of cash flows for the three months ended March 31, 2020 and 2019 includes a decrease to restricted cash of $38 million and $39 million, respectively, primarily related to building construction costs. Equity Investments The Company recorded impairments on equity investments of approximately $110 million during the three months ended March 31, 2019 which were recorded in other income (expense), net in the consolidated statements of operations. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Accounts payable – trade $ 733 $ 786 Deferred revenue 477 460 Accrued liabilities: Programming costs 2,133 2,042 Labor 869 1,028 Capital expenditures 1,029 1,441 Interest 1,005 1,052 Taxes and regulatory fees 511 537 Property and casualty 468 458 Operating lease liabilities 218 214 Other 867 867 $ 8,310 $ 8,885 |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Operating Leases | Leases Operating lease expenses were $108 million and $107 million for the three months ended March 31, 2020 and 2019, respectively, inclusive of $35 million and $36 million for the three months ended March 31, 2020 and 2019, respectively, of both short-term lease costs and variable lease costs that were not included in the measurement of operating lease liabilities. Cash paid for amounts included in the measurement of operating lease liabilities, recorded as operating cash flows in the statements of cash flows, were $73 million and $71 million, for the three months ended March 31, 2020 and 2019, respectively. Operating lease right-of-use assets obtained in exchange for operating lease obligations were $65 million and $56 million for the three months ended March 31, 2020 and 2019, respectively. Supplemental balance sheet information related to leases is as follows. March 31, 2020 December 31, 2019 Operating lease right-of-use assets: Included within other noncurrent assets $ 1,096 $ 1,092 Operating lease liabilities: Current portion included within accounts payable and accrued liabilities $ 218 $ 214 Long-term portion included within other long-term liabilities 984 979 $ 1,202 $ 1,193 Weighted average remaining lease term for operating leases 6.6 years 6.6 years Weighted average discount rate for operating leases 4.3 % 4.4 % Maturities of lease liabilities are as follows. Operating leases Nine months ended December 31, 2020 $ 195 2021 267 2022 229 2023 201 2024 164 Thereafter 412 Undiscounted lease cash flow commitments 1,468 Reconciling impact from discounting (266) Lease liabilities on consolidated balance sheet as of March 31, 2020 $ 1,202 The Company has $60 million and $62 million of finance lease liabilities recognized in the consolidated balance sheets as of March 31, 2020 and December 31, 2019, respectively, included within accounts payable and accrued liabilities and other long-term liabilities. The related finance lease right-of-use assets are recorded in property, plant and equipment, net. The Company’s finance leases were not considered material for further supplemental lease disclosures. |
Long-Term Debt (Notes)
Long-Term Debt (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following as of March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Principal Amount Accreted Value Principal Amount Accreted Value CCO Holdings, LLC: 5.250% senior notes due September 30, 2022 1,105 1,097 1,250 1,241 5.125% senior notes due February 15, 2023 — — 1,000 995 4.000% senior notes due March 1, 2023 500 497 500 497 5.125% senior notes due May 1, 2023 1,105 1,101 1,150 1,145 5.750% senior notes due September 1, 2023 — — 500 497 5.750% senior notes due January 15, 2024 — — 150 149 5.875% senior notes due April 1, 2024 1,700 1,691 1,700 1,690 5.375% senior notes due May 1, 2025 750 746 750 746 5.750% senior notes due February 15, 2026 2,500 2,472 2,500 2,471 5.500% senior notes due May 1, 2026 1,500 1,491 1,500 1,491 5.875% senior notes due May 1, 2027 800 796 800 796 5.125% senior notes due May 1, 2027 3,250 3,223 3,250 3,222 5.000% senior notes due February 1, 2028 2,500 2,469 2,500 2,469 5.375% senior notes due June 1, 2029 1,500 1,501 1,500 1,501 4.750% senior notes due March 1, 2030 3,050 3,041 3,050 3,041 4.500% senior notes due August 15, 2030 2,750 2,750 — — 4.500% senior notes due May 1, 2032 1,400 1,387 — — Charter Communications Operating, LLC: 3.579% senior notes due July 23, 2020 2,000 1,998 2,000 1,997 4.464% senior notes due July 23, 2022 3,000 2,988 3,000 2,987 Senior floating rate notes due February 1, 2024 900 902 900 902 4.500% senior notes due February 1, 2024 1,100 1,093 1,100 1,093 4.908% senior notes due July 23, 2025 4,500 4,472 4,500 4,471 3.750% senior notes due February 15, 2028 1,000 988 1,000 987 4.200% senior notes due March 15, 2028 1,250 1,241 1,250 1,240 5.050% senior notes due March 30, 2029 1,250 1,241 1,250 1,241 6.384% senior notes due October 23, 2035 2,000 1,983 2,000 1,982 5.375% senior notes due April 1, 2038 800 786 800 786 6.484% senior notes due October 23, 2045 3,500 3,467 3,500 3,467 5.375% senior notes due May 1, 2047 2,500 2,506 2,500 2,506 5.750% senior notes due April 1, 2048 2,450 2,391 2,450 2,391 5.125% senior notes due July 1, 2049 1,250 1,240 1,250 1,240 4.800% senior notes due March 1, 2050 2,800 2,797 2,800 2,798 6.834% senior notes due October 23, 2055 500 495 500 495 Credit facilities 10,357 10,279 10,427 10,345 Time Warner Cable, LLC: 5.000% senior notes due February 1, 2020 — — 1,500 1,503 4.125% senior notes due February 15, 2021 700 709 700 711 4.000% senior notes due September 1, 2021 1,000 1,018 1,000 1,021 5.750% sterling senior notes due June 2, 2031 (a) 776 830 828 886 6.550% senior debentures due May 1, 2037 1,500 1,673 1,500 1,675 7.300% senior debentures due July 1, 2038 1,500 1,770 1,500 1,772 6.750% senior debentures due June 15, 2039 1,500 1,711 1,500 1,713 5.875% senior debentures due November 15, 2040 1,200 1,254 1,200 1,255 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) 807 779 861 831 4.500% senior debentures due September 15, 2042 1,250 1,143 1,250 1,142 Time Warner Cable Enterprises LLC: 8.375% senior debentures due March 15, 2023 1,000 1,137 1,000 1,148 8.375% senior debentures due July 15, 2033 1,000 1,281 1,000 1,284 Total debt 79,050 79,692 78,416 79,078 Less current portion: 5.000% senior notes due February 1, 2020 — — (1,500) (1,503) 3.579% senior notes due July 23, 2020 (2,000) (1,998) (2,000) (1,997) 4.125% senior notes due February 15, 2021 (700) (709) — — 5.250% senior notes due September 30, 2022 (1,105) (1,097) — — 5.125% senior notes due May 1, 2023 (1,105) (1,101) — — Long-term debt 74,140 74,787 74,916 75,578 (a) Principal amount includes £625 million remeasured at $776 million and $828 million as of March 31, 2020 and December 31, 2019, respectively, using the exchange rate at the respective dates. (b) Principal amount includes £650 million remeasured at $807 million and $861 million as of March 31, 2020 and December 31, 2019, respectively, using the exchange rate at the respective dates. The accreted values presented in the table above represent the principal amount of the debt adjusted for original issue discount or premium at the time of sale, deferred financing costs, and, in regards to debt assumed in acquisitions, 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 US dollars as of each balance sheet date. See Note 9. The Company has availability under the Charter Operating credit facilities of approximately $4.7 billion as of March 31, 2020. In February 2020, CCO Holdings, LLC ("CCO Holdings") and CCO Holdings Capital Corp. jointly issued $1.65 billion aggregate principal amount of 4.500% senior unsecured notes due 2030 at par and in March 2020, an additional $1.1 billion of the same series of notes were issued at a price of 102.5% of the aggregate principal amount. Also in March 2020, CCO Holdings and CCO Holdings Capital Corp. issued $1.4 billion aggregate principal amount of 4.500% senior unsecured notes due 2032 at par. The net proceeds were or will be used to pay related fees and expenses and for general corporate purposes, including repaying certain indebtedness, including repayment of all of CCO Holdings' 5.250% senior notes due September 30, 2022, 5.125% senior notes due February 15, 2023, 5.125% senior notes due May 1, 2023, 5.750% senior notes due September 1, 2023 and 5.750% senior notes due January 15, 2024, as well as to fund potential buybacks of Charter Class A common stock and Charter Holdings common units. The Company recorded a loss on extinguishment of debt of $27 million during the three months ended March 31, 2020 related to these transactions. The CCO Holdings notes are senior debt obligations of CCO Holdings and CCO Holdings Capital and rank equally with all other current and future unsecured, unsubordinated obligations of CCO Holdings and CCO Holdings Capital. They are structurally subordinated to all obligations of subsidiaries of CCO Holdings. CCO Holdings may redeem some or all of the notes at any time at a premium. Beginning in 2028 and 2029, the optional redemption price declines to 100% of the principal amount, plus accrued and unpaid interest, if any. In addition, at any time prior to varying dates in 2023, CCO Holdings may redeem up to 40% of the aggregate principal amount of the notes at a premium plus accrued and unpaid interest to the redemption date, with the net cash proceeds of one or more equity offerings (as defined in the indenture); provided that certain conditions are met. In the event of specified change of control events, CCO Holdings must offer to purchase the outstanding notes from the holders at a purchase price equal to 101% of the total principal amount of the notes, plus any accrued and unpaid interest. In April 2020, Charter Operating and Charter Communications Operating Capital Corp. jointly issued $1.6 billion aggregate principal amount of 2.800% senior secured notes due April 2031 at a price of 99.561% of the aggregate principal amount and $1.4 billion aggregate principal amount of 3.700% senior secured notes due April 2051 at a price of 99.217% of the aggregate principal amount. The net proceeds will be used to pay related fees and expenses and for general corporate purposes. The Charter Operating notes are guaranteed by 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. |
Common Stock (Notes)
Common Stock (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
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 months ended March 31, 2020 and 2019. Three Months Ended March 31, 2020 2019 Shares $ Shares $ Share buybacks 4,452,549 $ 2,176 2,615,717 $ 870 Income tax withholding 335,654 176 214,615 70 Exercise cost 241,752 94,219 5,029,955 $ 2,352 2,924,551 $ 940 As of March 31, 2020, Charter had remaining board authority to purchase an additional $286 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 2019, Charter’s board of directors approved the retirement of the then currently held treasury stock and those shares were retired as of December 31, 2019. The Company accounts for treasury stock using the cost method and includes treasury stock as a component of total shareholders’ equity. In March 2020, pursuant to the terms of the Amended and Restated Stockholders Agreement with Liberty Broadband Corporation (“Liberty Broadband”), Advance/Newhouse Partnership (“A/N”) and Charter, dated May 23, 2015, Charter, Liberty and A/N closed on transactions in which Liberty Broadband and A/N exercised their preemptive right to purchase 35,112 and 20,182 shares, respectively, of Charter Class A common stock for a total purchase price of approximately $23 million. |
Noncontrolling Interests (Notes
Noncontrolling Interests (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Noncontrolling Interests [Abstract] | |
Noncontrolling Interests | Noncontrolling InterestsNoncontrolling 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 A/N's 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%, and was $33 million and $26 million for the three months ended March 31, 2020 and 2019, 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 $38 million for each of the three months ended March 31, 2020 and 2019. The following table represents Charter Holdings' purchase of Charter Holdings common units from A/N pursuant to the Letter Agreement (see Note 18) and the effect on total shareholders' equity during the three months ended March 31, 2020 and 2019. Three Months Ended March 31, 2020 2019 Number of units purchased 795,607 302,942 Average price per unit $ 494.54 $ 308.42 Amount of units purchased $ 393 $ 93 Decrease in noncontrolling interest based on carrying value $ (195) $ (74) Decrease in additional paid-in-capital, net of tax $ (149) $ (15) Total shareholders' equity was also adjusted during the three months ended March 31, 2020 and 2019 due to the changes in Charter Holdings' ownership as follows. Three Months Ended March 31, 2020 2019 Decrease in noncontrolling interest $ (109) $ (29) Increase in additional paid-in-capital, net of tax $ 82 $ 22 |
Accounting for Derivative Instr
Accounting for Derivative Instruments and Hedging Activities (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
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 April 2019, the Company entered into a collateral holiday agreement for 60% of both the 2031 and 2042 cross-currency swaps, which eliminates the requirement to post collateral for three years, as well as a ten year collateral cap on the remaining 40% of the cross-currency swaps which limits the required collateral posting on that 40% of the cross-currency swaps to $150 million. The fair value of the Company's cross-currency derivatives was $650 million and $224 million and is included in other long-term liabilities on its consolidated balance sheets as of March 31, 2020 and December 31, 2019, 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 March 31, 2020 2019 Gain (Loss) on Financial Instruments, Net: Change in fair value of cross-currency derivative instruments $ (426) $ 77 Foreign currency remeasurement of Sterling Notes to U.S. dollars 108 (40) $ (318) $ 37 |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 and December 31, 2019 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. Financial instruments accounted for at fair value on a recurring basis and classified within Level 2 of the valuation hierarchy include the Company's cross-currency derivative instruments and were valued at $650 million and $224 million as of March 31, 2020 and December 31, 2019, respectively. The estimated fair value of the Company’s senior notes and debentures as of March 31, 2020 and December 31, 2019 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. A summary of the carrying value and fair value of debt as of March 31, 2020 and December 31, 2019 is as follows: March 31, 2020 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value Senior notes and debentures $ 69,413 $ 72,108 $ 68,733 $ 74,938 Credit facilities $ 10,279 $ 9,610 $ 10,345 $ 10,448 |
Revenue (Notes)
Revenue (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue [Abstract] | |
Revenue | Revenues The Company’s revenues by product line are as follows: Three Months Ended March 31, 2020 2019 Internet $ 4,407 $ 4,024 Video 4,422 4,384 Voice 457 504 Residential revenue 9,286 8,912 Small and medium business 996 945 Enterprise 622 643 Commercial revenue 1,618 1,588 Advertising sales 365 345 Mobile 258 140 Other 211 221 $ 11,738 $ 11,206 |
Operating Costs and Expenses (N
Operating Costs and Expenses (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 2019 Programming $ 2,892 $ 2,865 Regulatory, connectivity and produced content 551 561 Costs to service customers 1,848 1,822 Marketing 766 735 Mobile 374 260 Other 1,001 993 $ 7,432 $ 7,236 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 Internet, video 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 |
Other Operating (Income) Expens
Other Operating (Income) Expenses, Net (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Other Operating Expenses, Net [Abstract] | |
Other Operating Expenses, Net | Other Operating (Income) Expenses, Net Other operating expenses, net consist of the following for the periods presented: Three Months Ended March 31, 2020 2019 Special charges, net $ 16 (4) (Gain) loss on sale of assets, net (9) (1) $ 7 $ (5) Special charges, net Special charges, net primarily includes employee termination costs and net amounts of litigation settlements. (Gain) loss on sale of assets, net |
Stock Compensation Plans (Notes
Stock Compensation Plans (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Stock Compensation Plans [Abstract] | |
Stock Compensation Plans | Stock Compensation Plans Charter’s stock incentive plans provide 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 stock incentive plans. Charter granted the following equity awards for the periods presented. Three Months Ended March 31, 2020 2019 Stock options 1,253,700 1,750,900 Restricted stock units 408,300 673,700 Charter stock options and restricted stock units generally cliff vest three years from the date of 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. As of March 31, 2020, total unrecognized compensation remaining to be recognized in future periods totaled $307 million for stock options, $0.2 million for restricted stock and $358 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 month for restricted stock and two years for restricted stock units. |
Income Taxes (Notes)
Income Taxes (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [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 $29 million and $119 million for the three months ended March 31, 2020 and 2019, respectively. Income tax expense decreased during the three months ended March 31, 2020 compared to the corresponding period in 2019 primarily as a result of increased recognition of excess tax benefits resulting from share-based compensation during 2020 and an internal entity simplification that increased expense in 2019. On March 18, 2020, the Families First Coronavirus Response Act ("FFCR Act"), and on March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") were each enacted in response to the COVID-19 pandemic. The FFCR Act and the CARES Act contain numerous tax provisions, such as deferring payroll payments, establishing a credit for the retention of certain employees, relaxing limitations on the deductibility of interest, and updating the definition of qualified improvement property. This legislation currently has no material impact to the Company’s financial statements. 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 $244 million and $230 million, excluding interest and penalties, as of March 31, 2020 and December 31, 2019, respectively. The Company does not currently anticipate that its reserve for uncertain tax positions will significantly increase or decrease during 2020; 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 are currently under examination by the Internal Revenue Service ("IRS") for income tax purposes. Charter's 2016 through 2019 tax years remain open for examination and assessment. Charter’s short period return dated May 17, 2016 (prior to the Time Warner Cable Inc. ("TWC") and Bright House Networks, LLC ("Bright House") transactions) and prior years 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 through 2019 tax years remain open for examination and assessment. 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, TWC was included in the consolidated U.S. federal and certain state income tax returns of Time Warner. The IRS has examined Time Warner’s 2008 through 2010 income tax returns and the results are under appeal. 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 months ended March 31, 2020, nor does the Company anticipate a material impact in the future. |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings 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 27 million and 31 million for the three months ended March 31, 2020 and 2019, 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 months ended March 31, 2020 and 2019. Three Months Ended March 31, 2020 2019 Numerator: Net income attributable to Charter shareholders $ 396 $ 253 Denominator: Weighted average common shares outstanding, basic 207,831,305 224,630,122 Effect of dilutive securities: Assumed exercise or issuance of shares relating to stock plans 4,979,308 2,965,243 Weighted average common shares outstanding, diluted 212,810,613 227,595,365 Basic earnings per common share attributable to Charter shareholders $ 1.91 $ 1.13 Diluted earnings per common share attributable to Charter shareholders $ 1.86 $ 1.11 |
Comprehensive Income (Notes)
Comprehensive Income (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |
Comprehensive Income | Comprehensive IncomeComprehensive income equaled net income attributable to Charter shareholders for each of the three months ended March 31, 2020 and 2019. |
Related Party Transactions (Not
Related Party Transactions (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
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, 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. The Company is aware that Dr. John Malone, a director emeritus of Charter and Chairman of the board of directors and holder of 48.8% of voting interest in Liberty Broadband, may be deemed to have a 40.9% voting interest in Qurate Retail, Inc. ("Qurate") 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 each of the three months ended March 31, 2020 and 2019, the Company recorded revenue in aggregate of approximately $12 million 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 1.2% of the series A common stock, 93.6% of the series B common stock and 3.6% of the series C common stock of Discovery and has a 27.9% 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 23.9% voting interest for matters other than the election of directors. A/N PP also has the right to appoint three directors out of a total of twelve directors to Discovery’s board. The Company purchases programming from Discovery. 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 2% of total operating costs and expenses for the three months ended March 31, 2020 and 2019. Equity Investments |
Contingencies (Notes)
Contingencies (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [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 is vigorously defending 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 United States District Court for the District of Kansas alleging that TWC infringed certain U.S. patents purportedly relating to Voice over Internet Protocol (“VoIP”) services. At the trial, 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 now paid the verdict, interest and costs in full. 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 United States District Court for the District of Delaware implicating Sprint's LTE technology. The ultimate outcomes of the pursuit of indemnity against the Company’s vendor and the TC Tech litigation cannot be predicted. The Company does not expect the outcome of its indemnity claim nor the outcome of the TC Tech litigation will have a material adverse effect on its operations or financial condition. Sprint filed a second patent suit against Charter and Bright House Networks, LLC on December 2, 2017 in the United States District Court for the District of Delaware. This suit alleges infringement of 11 patents related to the Company's provision of VoIP services (ten of which were asserted against Legacy TWC in the matter described above). On February 18, 2020 Sprint filed a lawsuit against Charter, Bright House, and TWC in the District Court for Johnson County, Kansas. Sprint alleges that Charter misappropriated trade secrets from Sprint years ago through employees hired by Bright House. Sprint asserts that the alleged trade secrets relate to the VoIP business of Charter and Bright House. Charter has removed this case to the United States District Court for the District of Kansas. Sprint filed a third patent suit against Charter on May 17, 2018 in the United States District Court for the Eastern District of Virginia. This suit alleges infringement of two patents related to the Company's video on demand services. The court transferred this case to the United States District Court for the District of Delaware on December 20, 2018 pursuant to an agreement between the parties. While the Company is vigorously defending these suits and is unable to predict the outcome of the Sprint lawsuits, the Company does not expect that the litigation will have a material 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 intellectual property relating to various aspects of its businesses. Other industry participants are also defendants in certain of these cases or related cases. In the event that a court ultimately determines that the Company infringes on any intellectual property, 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 intellectual property 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. |
Employee Benefit Plans (Notes)
Employee Benefit Plans (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Defined Benefit Plan [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company sponsors three qualified defined benefit pension plans and one nonqualified defined benefit pension plan that provide pension benefits to a majority of employees who were employed by TWC before the merger with TWC. 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 months ended March 31, 2020 and 2019 are recorded in other pension benefits, net in the consolidated statements of operations and consisted of the following: Three Months Ended March 31, 2020 2019 Interest cost $ (28) $ (32) Expected return on plan assets 38 41 Net periodic pension benefits $ 10 $ 9 The Company made no cash contributions to the qualified pension plans during the three months ended March 31, 2020 and 2019; 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 2020 to the extent benefits are paid. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Recently Issued Accounting Standards [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Accounting Standards Adopted January 1, 2020 ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, which requires a financial asset (or a group of financial assets) measured at amortized cost basis to be assessed for impairment under the current expected credit loss model rather than an incurred loss model. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amount. The primary financial assets of the Company in scope of ASU 2016-13 include accounts receivables and equipment installment plan notes receivables. The Company adopted ASU 2016-13 on January 1, 2020. The adoption of ASU 2016-13 did not have a material impact to the Company's 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. The Company adopted ASU 2018-15 on January 1, 2020. The adoption of ASU 2018-15 did not have a material impact to the Company's consolidated financial statements. ASU No. 2019-02, Improvements to Accounting for Costs of Films and License Agreements for Program Materials ("ASU 2019-02") In March 2019, the FASB issued ASU 2019-02 which aligns the accounting for production costs of an episodic television series with the accounting for production costs of films regarding cost capitalization, amortization, impairment, presentation and disclosure. The Company adopted ASU 2019-02 on January 1, 2020. The adoption of ASU 2019-02 did not have a material impact to the Company's consolidated financial statements. ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”) In December 2019, the FASB issued ASU 2019-12, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 will be effective for interim and annual periods beginning after December 15, 2020. Early adoption is permitted. The Company elected to early adopt ASU 2019-12 on January 1, 2020. The adoption of ASU 2019-12 did not have a material impact on the Company's consolidated financial statements. |
Consolidating Schedules (Notes)
Consolidating Schedules (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
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. Comprehensive income equaled net income attributable to Charter shareholders for the three months ended March 31, 2020 and 2019. Condensed consolidating financial statements as of March 31, 2020 and December 31, 2019 and for the three months ended March 31, 2020 and 2019 follow. Charter Communications, Inc. and Subsidiaries Condensed Consolidating Balance Sheets As of March 31, 2020 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 $ — $ 248 $ 200 $ 2,460 $ — $ 2,908 Accounts receivable, net — 34 — 2,057 — 2,091 Receivables from related party 18 143 41 — (202) — Prepaid expenses and other current assets 4 57 — 699 — 760 Total current assets 22 482 241 5,216 (202) 5,759 RESTRICTED CASH — 28 — — — 28 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 719 — 33,377 — 34,096 Customer relationships, net — — — 6,955 — 6,955 Franchises — — — 67,322 — 67,322 Goodwill — — — 29,554 — 29,554 Total investment in cable properties, net — 719 — 137,208 — 137,927 INVESTMENT IN SUBSIDIARIES 47,193 53,157 76,925 — (177,275) — LOANS RECEIVABLE – RELATED PARTY 278 727 567 — (1,572) — OTHER NONCURRENT ASSETS 2 372 — 2,464 — 2,838 Total assets $ 47,495 $ 55,485 $ 77,733 $ 144,888 $ (179,049) $ 146,552 LIABILITIES AND SHAREHOLDERS’/MEMBER’S EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 26 $ 656 $ 314 $ 7,314 $ — $ 8,310 Payables to related party — — — 202 (202) — Current portion of long-term debt — — 2,198 2,707 — 4,905 Total current liabilities 26 656 2,512 10,223 (202) 13,215 LONG-TERM DEBT — — 22,064 52,723 — 74,787 LOANS PAYABLE – RELATED PARTY — — — 1,572 (1,572) — DEFERRED INCOME TAXES 17,591 19 — 55 — 17,665 OTHER LONG-TERM LIABILITIES 250 545 — 3,368 — 4,163 SHAREHOLDERS’/MEMBER’S EQUITY Controlling interest 29,628 47,193 53,157 76,925 (177,275) 29,628 Noncontrolling interests — 7,072 — 22 — 7,094 Total shareholders’/member’s equity 29,628 54,265 53,157 76,947 (177,275) 36,722 Total liabilities and shareholders’/member’s equity $ 47,495 $ 55,485 $ 77,733 $ 144,888 $ (179,049) $ 146,552 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Balance Sheets 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) — LOANS RECEIVABLE – RELATED PARTY 260 699 545 — (1,504) — OTHER NONCURRENT ASSETS 2 378 — 2,351 — 2,731 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 $ 725 $ 296 $ 7,846 $ — $ 8,885 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 OTHER LONG-TERM LIABILITIES 227 554 — 2,922 — 3,703 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 Statements of Operations For the three months March 31, 2020 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated REVENUES $ 13 $ 303 $ — $ 11,736 $ (314) $ 11,738 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 13 278 — 7,452 (311) 7,432 Depreciation and amortization — 4 — 2,493 — 2,497 Other operating expense, net — — — 10 (3) 7 13 282 — 9,955 (314) 9,936 Income from operations — 21 — 1,781 — 1,802 OTHER INCOME (EXPENSES): Interest income (expense), net 5 7 (297) (695) — (980) Loss on extinguishment of debt — — (27) — — (27) Loss on financial instruments, net — — — (318) — (318) Other pension benefits, net — — — 10 — 10 Other income (expense), net — (2) — 11 — 9 Equity in income of subsidiaries 405 459 783 — (1,647) — 410 464 459 (992) (1,647) (1,306) Income before income taxes 410 485 459 789 (1,647) 496 Income tax expense (14) (9) — (6) — (29) Consolidated net income 396 476 459 783 (1,647) 467 Less: Net income attributable to noncontrolling interests — (71) — — — (71) Net income $ 396 $ 405 $ 459 $ 783 $ (1,647) $ 396 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Operations For the three months ended March 31, 2019 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated REVENUES $ 12 $ 282 $ — $ 11,203 $ (291) $ 11,206 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 12 282 — 7,242 (300) 7,236 Depreciation and amortization — 3 — 2,547 — 2,550 Other operating income, net — (10) — (4) 9 (5) 12 275 — 9,785 (291) 9,781 Income from operations — 7 — 1,418 — 1,425 OTHER INCOME (EXPENSES): Interest income (expense), net 3 9 (254) (683) — (925) Gain on financial instruments, net — — — 37 — 37 Other pension benefits, net — — — 9 — 9 Other expense, net — — — (110) — (110) Equity in income of subsidiaries 302 350 604 — (1,256) — 305 359 350 (747) (1,256) (989) Income before income taxes 305 366 350 671 (1,256) 436 Income tax expense (52) — — (67) — (119) Consolidated net income 253 366 350 604 (1,256) 317 Less: Net income attributable to noncontrolling interests — (64) — — — (64) Net income $ 253 $ 302 $ 350 $ 604 $ (1,256) $ 253 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Cash Flows For the three months ended March 31, 2020 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 $ 6 $ 24 $ (276) $ 3,466 $ — $ 3,220 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — — — (1,461) — (1,461) Change in accrued expenses related to capital expenditures — — — (388) — (388) Real estate investments through variable interest entities — (38) — — — (38) Contributions to subsidiaries (117) (27) (4,273) — 4,417 — Distributions from subsidiaries 2,352 2,685 4,629 — (9,666) — Other, net — (2) — 39 — 37 Net cash flows from investing activities 2,235 2,618 356 (1,810) (5,249) (1,850) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — 4,177 162 — 4,339 Repayments of long-term debt — — (1,858) (1,731) — (3,589) Borrowings (repayments) of loans payable - related parties (5) — — 5 — — Payments for debt issuance costs — — (41) — — (41) Issuance of equity 23 — — — — 23 Purchase of treasury stock (2,352) — — — — (2,352) Proceeds from exercise of stock options 93 — — — — 93 Purchase of noncontrolling interest — (393) — — — (393) Distributions to noncontrolling interest — (38) — (1) — (39) Contributions from parent — 117 27 4,273 (4,417) — Distributions to parent — (2,352) (2,685) (4,629) 9,666 — Other, net — — — (24) — (24) Net cash flows from financing activities (2,241) (2,666) (380) (1,945) 5,249 (1,983) NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH — (24) (300) (289) — (613) CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period — 300 500 2,749 — 3,549 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period $ — $ 276 $ 200 $ 2,460 $ — $ 2,936 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Cash Flows For the three months ended March 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 $ (1) $ — $ (226) $ 2,913 $ — $ 2,686 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — (67) — (1,665) 67 (1,665) Change in accrued expenses related to capital expenditures — — — (376) — (376) Real estate investments through variable interest entities — (39) — — — (39) Contribution to subsidiaries (44) (9) (9) — 62 — Distributions from subsidiaries 941 1,040 1,266 — (3,247) — Other, net — — — 67 (67) — Net cash flows from investing activities 897 925 1,257 (1,974) (3,185) (2,080) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — — 6,884 — 6,884 Repayments of long-term debt — — — (5,572) — (5,572) Payments for debt issuance costs — — — (25) — (25) Purchase of treasury stock (940) — — — — (940) Proceeds from exercise of stock options 44 — — — — 44 Purchase of noncontrolling interest — (93) — — — (93) Distributions to noncontrolling interest — (38) — (1) — (39) Contributions from parent — 44 9 9 (62) — Distributions to parent — (941) (1,040) (1,266) 3,247 — Other, net — — — (4) — (4) Net cash flows from financing activities (896) (1,028) (1,031) 25 3,185 255 NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH — (103) — 964 — 861 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period — 465 — 300 — 765 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period $ — $ 362 $ — $ 1,264 $ — $ 1,626 |
Accounting for Derivative Ins_2
Accounting for Derivative Instruments and Hedging Activities (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
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) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Indefinite-lived and Finite-lived Intangible Assets | Indefinite-lived and finite-lived intangible assets consist of the following as of March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Indefinite-lived intangible assets: Franchises $ 67,322 $ — $ 67,322 $ 67,322 $ — $ 67,322 Goodwill 29,554 — 29,554 29,554 — 29,554 Trademarks 159 — 159 159 — 159 $ 97,035 $ — $ 97,035 $ 97,035 $ — $ 97,035 Finite-lived intangible assets: Customer relationships $ 18,230 $ (11,275) $ 6,955 $ 18,230 $ (10,777) $ 7,453 Other intangible assets 405 (132) 273 405 (122) 283 $ 18,635 $ (11,407) $ 7,228 $ 18,635 $ (10,899) $ 7,736 |
Expected Future Amortization Expense | The Company expects amortization expense on its finite-lived intangible assets will be as follows: Nine months ended December 31, 2020 $ 1,366 2021 1,599 2022 1,329 2023 1,072 2024 821 Thereafter 1,041 $ 7,228 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments [Abstract] | |
Schedule of 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 sheets as of March 31, 2020 and December 31, 2019 as follows. March 31, 2020 December 31, 2019 Assets Restricted cash $ 28 $ 66 Property, plant and equipment $ 335 $ 295 Liabilities Current liabilities $ 13 $ 11 Other long-term liabilities $ 350 $ 350 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consist of the following as of March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Accounts payable – trade $ 733 $ 786 Deferred revenue 477 460 Accrued liabilities: Programming costs 2,133 2,042 Labor 869 1,028 Capital expenditures 1,029 1,441 Interest 1,005 1,052 Taxes and regulatory fees 511 537 Property and casualty 468 458 Operating lease liabilities 218 214 Other 867 867 $ 8,310 $ 8,885 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of supplemental balance sheet information | Supplemental balance sheet information related to leases is as follows. March 31, 2020 December 31, 2019 Operating lease right-of-use assets: Included within other noncurrent assets $ 1,096 $ 1,092 Operating lease liabilities: Current portion included within accounts payable and accrued liabilities $ 218 $ 214 Long-term portion included within other long-term liabilities 984 979 $ 1,202 $ 1,193 Weighted average remaining lease term for operating leases 6.6 years 6.6 years Weighted average discount rate for operating leases 4.3 % 4.4 % |
Schedule of future minimum lease payments for operating leases | Maturities of lease liabilities are as follows. Operating leases Nine months ended December 31, 2020 $ 195 2021 267 2022 229 2023 201 2024 164 Thereafter 412 Undiscounted lease cash flow commitments 1,468 Reconciling impact from discounting (266) Lease liabilities on consolidated balance sheet as of March 31, 2020 $ 1,202 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt Summary | Long-term debt consists of the following as of March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Principal Amount Accreted Value Principal Amount Accreted Value CCO Holdings, LLC: 5.250% senior notes due September 30, 2022 1,105 1,097 1,250 1,241 5.125% senior notes due February 15, 2023 — — 1,000 995 4.000% senior notes due March 1, 2023 500 497 500 497 5.125% senior notes due May 1, 2023 1,105 1,101 1,150 1,145 5.750% senior notes due September 1, 2023 — — 500 497 5.750% senior notes due January 15, 2024 — — 150 149 5.875% senior notes due April 1, 2024 1,700 1,691 1,700 1,690 5.375% senior notes due May 1, 2025 750 746 750 746 5.750% senior notes due February 15, 2026 2,500 2,472 2,500 2,471 5.500% senior notes due May 1, 2026 1,500 1,491 1,500 1,491 5.875% senior notes due May 1, 2027 800 796 800 796 5.125% senior notes due May 1, 2027 3,250 3,223 3,250 3,222 5.000% senior notes due February 1, 2028 2,500 2,469 2,500 2,469 5.375% senior notes due June 1, 2029 1,500 1,501 1,500 1,501 4.750% senior notes due March 1, 2030 3,050 3,041 3,050 3,041 4.500% senior notes due August 15, 2030 2,750 2,750 — — 4.500% senior notes due May 1, 2032 1,400 1,387 — — Charter Communications Operating, LLC: 3.579% senior notes due July 23, 2020 2,000 1,998 2,000 1,997 4.464% senior notes due July 23, 2022 3,000 2,988 3,000 2,987 Senior floating rate notes due February 1, 2024 900 902 900 902 4.500% senior notes due February 1, 2024 1,100 1,093 1,100 1,093 4.908% senior notes due July 23, 2025 4,500 4,472 4,500 4,471 3.750% senior notes due February 15, 2028 1,000 988 1,000 987 4.200% senior notes due March 15, 2028 1,250 1,241 1,250 1,240 5.050% senior notes due March 30, 2029 1,250 1,241 1,250 1,241 6.384% senior notes due October 23, 2035 2,000 1,983 2,000 1,982 5.375% senior notes due April 1, 2038 800 786 800 786 6.484% senior notes due October 23, 2045 3,500 3,467 3,500 3,467 5.375% senior notes due May 1, 2047 2,500 2,506 2,500 2,506 5.750% senior notes due April 1, 2048 2,450 2,391 2,450 2,391 5.125% senior notes due July 1, 2049 1,250 1,240 1,250 1,240 4.800% senior notes due March 1, 2050 2,800 2,797 2,800 2,798 6.834% senior notes due October 23, 2055 500 495 500 495 Credit facilities 10,357 10,279 10,427 10,345 Time Warner Cable, LLC: 5.000% senior notes due February 1, 2020 — — 1,500 1,503 4.125% senior notes due February 15, 2021 700 709 700 711 4.000% senior notes due September 1, 2021 1,000 1,018 1,000 1,021 5.750% sterling senior notes due June 2, 2031 (a) 776 830 828 886 6.550% senior debentures due May 1, 2037 1,500 1,673 1,500 1,675 7.300% senior debentures due July 1, 2038 1,500 1,770 1,500 1,772 6.750% senior debentures due June 15, 2039 1,500 1,711 1,500 1,713 5.875% senior debentures due November 15, 2040 1,200 1,254 1,200 1,255 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) 807 779 861 831 4.500% senior debentures due September 15, 2042 1,250 1,143 1,250 1,142 Time Warner Cable Enterprises LLC: 8.375% senior debentures due March 15, 2023 1,000 1,137 1,000 1,148 8.375% senior debentures due July 15, 2033 1,000 1,281 1,000 1,284 Total debt 79,050 79,692 78,416 79,078 Less current portion: 5.000% senior notes due February 1, 2020 — — (1,500) (1,503) 3.579% senior notes due July 23, 2020 (2,000) (1,998) (2,000) (1,997) 4.125% senior notes due February 15, 2021 (700) (709) — — 5.250% senior notes due September 30, 2022 (1,105) (1,097) — — 5.125% senior notes due May 1, 2023 (1,105) (1,101) — — Long-term debt 74,140 74,787 74,916 75,578 (a) Principal amount includes £625 million remeasured at $776 million and $828 million as of March 31, 2020 and December 31, 2019, respectively, using the exchange rate at the respective dates. (b) Principal amount includes £650 million remeasured at $807 million and $861 million as of March 31, 2020 and December 31, 2019, respectively, using the exchange rate at the respective dates. |
Common Stock (Tables)
Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 months ended March 31, 2020 and 2019. Three Months Ended March 31, 2020 2019 Shares $ Shares $ Share buybacks 4,452,549 $ 2,176 2,615,717 $ 870 Income tax withholding 335,654 176 214,615 70 Exercise cost 241,752 94,219 5,029,955 $ 2,352 2,924,551 $ 940 |
Noncontrolling Interest (Tables
Noncontrolling Interest (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 18) and the effect on total shareholders' equity during the three months ended March 31, 2020 and 2019. Three Months Ended March 31, 2020 2019 Number of units purchased 795,607 302,942 Average price per unit $ 494.54 $ 308.42 Amount of units purchased $ 393 $ 93 Decrease in noncontrolling interest based on carrying value $ (195) $ (74) Decrease in additional paid-in-capital, net of tax $ (149) $ (15) |
Schedule of effects on statement of shareholders' equity due to ownership changes | Total shareholders' equity was also adjusted during the three months ended March 31, 2020 and 2019 due to the changes in Charter Holdings' ownership as follows. Three Months Ended March 31, 2020 2019 Decrease in noncontrolling interest $ (109) $ (29) Increase in additional paid-in-capital, net of tax $ 82 $ 22 |
Accounting for Derivative Ins_3
Accounting for Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 2019 Gain (Loss) on Financial Instruments, Net: Change in fair value of cross-currency derivative instruments $ (426) $ 77 Foreign currency remeasurement of Sterling Notes to U.S. dollars 108 (40) $ (318) $ 37 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Measurements [Abstract] | |
Carrying Value and Fair Value of Debt | A summary of the carrying value and fair value of debt as of March 31, 2020 and December 31, 2019 is as follows: March 31, 2020 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value Senior notes and debentures $ 69,413 $ 72,108 $ 68,733 $ 74,938 Credit facilities $ 10,279 $ 9,610 $ 10,345 $ 10,448 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue [Abstract] | |
Revenue | The Company’s revenues by product line are as follows: Three Months Ended March 31, 2020 2019 Internet $ 4,407 $ 4,024 Video 4,422 4,384 Voice 457 504 Residential revenue 9,286 8,912 Small and medium business 996 945 Enterprise 622 643 Commercial revenue 1,618 1,588 Advertising sales 365 345 Mobile 258 140 Other 211 221 $ 11,738 $ 11,206 |
Operating Costs and Expenses (T
Operating Costs and Expenses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 2019 Programming $ 2,892 $ 2,865 Regulatory, connectivity and produced content 551 561 Costs to service customers 1,848 1,822 Marketing 766 735 Mobile 374 260 Other 1,001 993 $ 7,432 $ 7,236 |
Other Operating (Income) Expe_2
Other Operating (Income) Expenses, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Operating Expenses, Net [Abstract] | |
Other Operating Expenses, Net | Other operating expenses, net consist of the following for the periods presented: Three Months Ended March 31, 2020 2019 Special charges, net $ 16 (4) (Gain) loss on sale of assets, net (9) (1) $ 7 $ (5) |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Stock Compensation Plans [Abstract] | |
Equity Award Grants | Charter granted the following equity awards for the periods presented. Three Months Ended March 31, 2020 2019 Stock options 1,253,700 1,750,900 Restricted stock units 408,300 673,700 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The following is the computation of diluted earnings per common share for the three months ended March 31, 2020 and 2019. Three Months Ended March 31, 2020 2019 Numerator: Net income attributable to Charter shareholders $ 396 $ 253 Denominator: Weighted average common shares outstanding, basic 207,831,305 224,630,122 Effect of dilutive securities: Assumed exercise or issuance of shares relating to stock plans 4,979,308 2,965,243 Weighted average common shares outstanding, diluted 212,810,613 227,595,365 Basic earnings per common share attributable to Charter shareholders $ 1.91 $ 1.13 Diluted earnings per common share attributable to Charter shareholders $ 1.86 $ 1.11 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Defined Benefit Plan [Abstract] | |
Net Periodic Pension Benefit | The components of net periodic pension benefit (costs) for the three months ended March 31, 2020 and 2019 are recorded in other pension benefits, net in the consolidated statements of operations and consisted of the following: Three Months Ended March 31, 2020 2019 Interest cost $ (28) $ (32) Expected return on plan assets 38 41 Net periodic pension benefits $ 10 $ 9 |
Consolidating Schedules (Tables
Consolidating Schedules (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Consolidating Schedules [Abstract] | |
Consolidating Schedules | Condensed consolidating financial statements as of March 31, 2020 and December 31, 2019 and for the three months ended March 31, 2020 and 2019 follow. Charter Communications, Inc. and Subsidiaries Condensed Consolidating Balance Sheets As of March 31, 2020 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 $ — $ 248 $ 200 $ 2,460 $ — $ 2,908 Accounts receivable, net — 34 — 2,057 — 2,091 Receivables from related party 18 143 41 — (202) — Prepaid expenses and other current assets 4 57 — 699 — 760 Total current assets 22 482 241 5,216 (202) 5,759 RESTRICTED CASH — 28 — — — 28 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 719 — 33,377 — 34,096 Customer relationships, net — — — 6,955 — 6,955 Franchises — — — 67,322 — 67,322 Goodwill — — — 29,554 — 29,554 Total investment in cable properties, net — 719 — 137,208 — 137,927 INVESTMENT IN SUBSIDIARIES 47,193 53,157 76,925 — (177,275) — LOANS RECEIVABLE – RELATED PARTY 278 727 567 — (1,572) — OTHER NONCURRENT ASSETS 2 372 — 2,464 — 2,838 Total assets $ 47,495 $ 55,485 $ 77,733 $ 144,888 $ (179,049) $ 146,552 LIABILITIES AND SHAREHOLDERS’/MEMBER’S EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 26 $ 656 $ 314 $ 7,314 $ — $ 8,310 Payables to related party — — — 202 (202) — Current portion of long-term debt — — 2,198 2,707 — 4,905 Total current liabilities 26 656 2,512 10,223 (202) 13,215 LONG-TERM DEBT — — 22,064 52,723 — 74,787 LOANS PAYABLE – RELATED PARTY — — — 1,572 (1,572) — DEFERRED INCOME TAXES 17,591 19 — 55 — 17,665 OTHER LONG-TERM LIABILITIES 250 545 — 3,368 — 4,163 SHAREHOLDERS’/MEMBER’S EQUITY Controlling interest 29,628 47,193 53,157 76,925 (177,275) 29,628 Noncontrolling interests — 7,072 — 22 — 7,094 Total shareholders’/member’s equity 29,628 54,265 53,157 76,947 (177,275) 36,722 Total liabilities and shareholders’/member’s equity $ 47,495 $ 55,485 $ 77,733 $ 144,888 $ (179,049) $ 146,552 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Balance Sheets 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) — LOANS RECEIVABLE – RELATED PARTY 260 699 545 — (1,504) — OTHER NONCURRENT ASSETS 2 378 — 2,351 — 2,731 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 $ 725 $ 296 $ 7,846 $ — $ 8,885 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 OTHER LONG-TERM LIABILITIES 227 554 — 2,922 — 3,703 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 Statements of Operations For the three months March 31, 2020 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated REVENUES $ 13 $ 303 $ — $ 11,736 $ (314) $ 11,738 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 13 278 — 7,452 (311) 7,432 Depreciation and amortization — 4 — 2,493 — 2,497 Other operating expense, net — — — 10 (3) 7 13 282 — 9,955 (314) 9,936 Income from operations — 21 — 1,781 — 1,802 OTHER INCOME (EXPENSES): Interest income (expense), net 5 7 (297) (695) — (980) Loss on extinguishment of debt — — (27) — — (27) Loss on financial instruments, net — — — (318) — (318) Other pension benefits, net — — — 10 — 10 Other income (expense), net — (2) — 11 — 9 Equity in income of subsidiaries 405 459 783 — (1,647) — 410 464 459 (992) (1,647) (1,306) Income before income taxes 410 485 459 789 (1,647) 496 Income tax expense (14) (9) — (6) — (29) Consolidated net income 396 476 459 783 (1,647) 467 Less: Net income attributable to noncontrolling interests — (71) — — — (71) Net income $ 396 $ 405 $ 459 $ 783 $ (1,647) $ 396 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Operations For the three months ended March 31, 2019 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated REVENUES $ 12 $ 282 $ — $ 11,203 $ (291) $ 11,206 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 12 282 — 7,242 (300) 7,236 Depreciation and amortization — 3 — 2,547 — 2,550 Other operating income, net — (10) — (4) 9 (5) 12 275 — 9,785 (291) 9,781 Income from operations — 7 — 1,418 — 1,425 OTHER INCOME (EXPENSES): Interest income (expense), net 3 9 (254) (683) — (925) Gain on financial instruments, net — — — 37 — 37 Other pension benefits, net — — — 9 — 9 Other expense, net — — — (110) — (110) Equity in income of subsidiaries 302 350 604 — (1,256) — 305 359 350 (747) (1,256) (989) Income before income taxes 305 366 350 671 (1,256) 436 Income tax expense (52) — — (67) — (119) Consolidated net income 253 366 350 604 (1,256) 317 Less: Net income attributable to noncontrolling interests — (64) — — — (64) Net income $ 253 $ 302 $ 350 $ 604 $ (1,256) $ 253 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Cash Flows For the three months ended March 31, 2020 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 $ 6 $ 24 $ (276) $ 3,466 $ — $ 3,220 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — — — (1,461) — (1,461) Change in accrued expenses related to capital expenditures — — — (388) — (388) Real estate investments through variable interest entities — (38) — — — (38) Contributions to subsidiaries (117) (27) (4,273) — 4,417 — Distributions from subsidiaries 2,352 2,685 4,629 — (9,666) — Other, net — (2) — 39 — 37 Net cash flows from investing activities 2,235 2,618 356 (1,810) (5,249) (1,850) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — 4,177 162 — 4,339 Repayments of long-term debt — — (1,858) (1,731) — (3,589) Borrowings (repayments) of loans payable - related parties (5) — — 5 — — Payments for debt issuance costs — — (41) — — (41) Issuance of equity 23 — — — — 23 Purchase of treasury stock (2,352) — — — — (2,352) Proceeds from exercise of stock options 93 — — — — 93 Purchase of noncontrolling interest — (393) — — — (393) Distributions to noncontrolling interest — (38) — (1) — (39) Contributions from parent — 117 27 4,273 (4,417) — Distributions to parent — (2,352) (2,685) (4,629) 9,666 — Other, net — — — (24) — (24) Net cash flows from financing activities (2,241) (2,666) (380) (1,945) 5,249 (1,983) NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH — (24) (300) (289) — (613) CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period — 300 500 2,749 — 3,549 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period $ — $ 276 $ 200 $ 2,460 $ — $ 2,936 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Cash Flows For the three months ended March 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 $ (1) $ — $ (226) $ 2,913 $ — $ 2,686 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — (67) — (1,665) 67 (1,665) Change in accrued expenses related to capital expenditures — — — (376) — (376) Real estate investments through variable interest entities — (39) — — — (39) Contribution to subsidiaries (44) (9) (9) — 62 — Distributions from subsidiaries 941 1,040 1,266 — (3,247) — Other, net — — — 67 (67) — Net cash flows from investing activities 897 925 1,257 (1,974) (3,185) (2,080) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — — 6,884 — 6,884 Repayments of long-term debt — — — (5,572) — (5,572) Payments for debt issuance costs — — — (25) — (25) Purchase of treasury stock (940) — — — — (940) Proceeds from exercise of stock options 44 — — — — 44 Purchase of noncontrolling interest — (93) — — — (93) Distributions to noncontrolling interest — (38) — (1) — (39) Contributions from parent — 44 9 9 (62) — Distributions to parent — (941) (1,040) (1,266) 3,247 — Other, net — — — (4) — (4) Net cash flows from financing activities (896) (1,028) (1,031) 25 3,185 255 NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH — (103) — 964 — 861 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period — 465 — 300 — 765 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period $ — $ 362 $ — $ 1,264 $ — $ 1,626 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2020 | |
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 | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Indefinite-lived Intangible Assets: | |||
Goodwill | $ 29,554 | $ 29,554 | |
Indefinite-lived intangible assets and goodwill | 97,035 | 97,035 | |
Finite-lived Intangible Assets: | |||
Gross Carrying Amount | 18,635 | 18,635 | |
Accumulated Amortization | (11,407) | (10,899) | |
Net Carrying Amount | 7,228 | 7,736 | |
Amortization expense | 508 | $ 578 | |
Nine months ended December 31, 2020 | 1,366 | ||
2021 | 1,599 | ||
2022 | 1,329 | ||
2023 | 1,072 | ||
2024 | 821 | ||
Thereafter | 1,041 | ||
Franchises | |||
Indefinite-lived Intangible Assets: | |||
Indefinite-lived intangible assets | 67,322 | 67,322 | |
Trademarks | |||
Indefinite-lived Intangible Assets: | |||
Indefinite-lived intangible assets | 159 | 159 | |
Customer relationships | |||
Finite-lived Intangible Assets: | |||
Gross Carrying Amount | 18,230 | 18,230 | |
Accumulated Amortization | (11,275) | (10,777) | |
Net Carrying Amount | 6,955 | 7,453 | |
Other intangible assets | |||
Finite-lived Intangible Assets: | |||
Gross Carrying Amount | 405 | 405 | |
Accumulated Amortization | (132) | (122) | |
Net Carrying Amount | $ 273 | $ 283 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | |||
RESTRICTED CASH | $ 28 | $ 66 | |
Property, plant and equipment, net | 34,096 | 34,591 | |
OTHER LONG-TERM LIABILITIES | 4,163 | 3,703 | |
Decrease in Restricted Cash | $ 38 | $ 39 | |
Impairment on equity method investment [Abstract] | |||
Impairment on equity investments | $ 110 | ||
Mortgage note liability | |||
Variable Interest Entity [Line Items] | |||
Stated interest rate (percentage) | 5.612% | ||
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
RESTRICTED CASH | $ 28 | 66 | |
Property, plant and equipment, net | 335 | 295 | |
Current liabilities | 13 | 11 | |
OTHER LONG-TERM LIABILITIES | 350 | 350 | |
Variable Interest Entity, Primary Beneficiary | Mortgage note liability | |||
Variable Interest Entity [Line Items] | |||
OTHER LONG-TERM LIABILITIES | 337 | 339 | |
Variable Interest Entity, Primary Beneficiary | Noncontrolling Interests | |||
Variable Interest Entity [Line Items] | |||
OTHER LONG-TERM LIABILITIES | $ 13 | $ 11 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Accounts payable – trade | $ 733 | $ 786 |
Deferred revenue | 477 | 460 |
Accrued liabilities: | ||
Programming costs | 2,133 | 2,042 |
Labor | 869 | 1,028 |
Capital expenditures | 1,029 | 1,441 |
Interest | 1,005 | 1,052 |
Taxes and regulatory fees | 511 | 537 |
Property and casualty | 468 | 458 |
Operating lease liabilities | 218 | 214 |
Other | 867 | 867 |
Total accounts payable and accrued liabilities | $ 8,310 | $ 8,885 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating Lease Expense | $ 108 | $ 107 | |
short term leases and variable leases costs | 35 | 36 | |
Operating Lease Payments | 73 | 71 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 65 | $ 56 | |
Operating Lease, Right-of-Use Asset | 1,096 | $ 1,092 | |
Operating lease liabilities | 218 | 214 | |
Noncurrent portion of operating lease liability | 984 | 979 | |
Total Operating Lease Liability | $ 1,202 | $ 1,193 | |
Weighted average remaining operating lease term (in years) | 6 years 7 months 6 days | 6 years 7 months 6 days | |
Weighted average discount rate - operating leases (percentage) | 4.30% | 4.40% | |
Finance Lease Liabilities | $ 60 | $ 62 | |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |||
Nine months ended December 31, 2020 | 195 | ||
2021 | 267 | ||
2022 | 229 | ||
2023 | 201 | ||
2024 | 164 | ||
Thereafter | 412 | ||
Undiscounted lease cash flow commitments | 1,468 | ||
Reconciling impact from discounting | $ (266) |
Long-Term Debt (Details)
Long-Term Debt (Details) £ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | ||||||
Apr. 30, 2020 | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Apr. 01, 2020USD ($) | Mar. 31, 2020GBP (£) | Mar. 01, 2020USD ($) | Feb. 01, 2020USD ($) | Dec. 31, 2019USD ($) | |
Long-term Debt: | ||||||||
Principal Amount | $ 79,050 | $ 78,416 | ||||||
Accreted Value | 79,692 | 79,078 | ||||||
Accreted value, current portion | (4,905) | (3,500) | ||||||
Principal amount, noncurrent portion | 74,140 | 74,916 | ||||||
Accreted value, noncurrent portion | 74,787 | 75,578 | ||||||
Loss on extinguishment of debt | 27 | $ 0 | ||||||
Credit facilities | ||||||||
Long-term Debt: | ||||||||
Accreted Value | 10,279 | 10,345 | ||||||
CCO Holdings | ||||||||
Long-term Debt: | ||||||||
Accreted value, current portion | (2,198) | 0 | ||||||
Accreted value, noncurrent portion | 22,064 | 21,951 | ||||||
Loss on extinguishment of debt | $ 27 | |||||||
Debt Instrument Redemption Price (Percentage) | 100.00% | |||||||
Debt instrument, amount of principal that may be redeemed (percentage) | 40.00% | |||||||
Debt instrument redemption price in the event of change of control events (percentage) | 101.00% | |||||||
CCO Holdings | 5.250% senior notes due September 30, 2022 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 1,105 | 1,250 | ||||||
Accreted Value | 1,097 | 1,241 | ||||||
Principal amount, current portion | (1,105) | 0 | ||||||
Accreted value, current portion | $ (1,097) | 0 | ||||||
Stated interest rate (percentage) | 5.25% | 5.25% | ||||||
CCO Holdings | 5.125% senior notes due February 15, 2023 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 0 | 1,000 | ||||||
Accreted Value | $ 0 | 995 | ||||||
Stated interest rate (percentage) | 5.125% | 5.125% | ||||||
CCO Holdings | 4.000% senior notes due March 1, 2023 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 500 | 500 | ||||||
Accreted Value | $ 497 | 497 | ||||||
Stated interest rate (percentage) | 4.00% | 4.00% | ||||||
CCO Holdings | 5.125% senior notes due May 1, 2023 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 1,105 | 1,150 | ||||||
Accreted Value | 1,101 | 1,145 | ||||||
Principal amount, current portion | (1,105) | 0 | ||||||
Accreted value, current portion | $ (1,101) | 0 | ||||||
Stated interest rate (percentage) | 5.125% | 5.125% | ||||||
CCO Holdings | 5.750% senior notes due September 1, 2023 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 0 | 500 | ||||||
Accreted Value | $ 0 | 497 | ||||||
Stated interest rate (percentage) | 5.75% | 5.75% | ||||||
CCO Holdings | 5.750% senior notes due January 15, 2024 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 0 | 150 | ||||||
Accreted Value | $ 0 | 149 | ||||||
Stated interest rate (percentage) | 5.75% | 5.75% | ||||||
CCO Holdings | 5.875% senior notes due April 1, 2024 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 1,700 | 1,700 | ||||||
Accreted Value | $ 1,691 | 1,690 | ||||||
Stated interest rate (percentage) | 5.875% | 5.875% | ||||||
CCO Holdings | 5.375% senior notes due May 1, 2025 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 750 | 750 | ||||||
Accreted Value | $ 746 | 746 | ||||||
Stated interest rate (percentage) | 5.375% | 5.375% | ||||||
CCO Holdings | 5.750% senior notes due February 15, 2026 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 2,500 | 2,500 | ||||||
Accreted Value | $ 2,472 | 2,471 | ||||||
Stated interest rate (percentage) | 5.75% | 5.75% | ||||||
CCO Holdings | 5.500% senior notes due May 1, 2026 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 1,500 | 1,500 | ||||||
Accreted Value | $ 1,491 | 1,491 | ||||||
Stated interest rate (percentage) | 5.50% | 5.50% | ||||||
CCO Holdings | 5.875% senior notes due May 1, 2027 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 800 | 800 | ||||||
Accreted Value | $ 796 | 796 | ||||||
Stated interest rate (percentage) | 5.875% | 5.875% | ||||||
CCO Holdings | 5.125% senior notes due May 1, 2027 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 3,250 | 3,250 | ||||||
Accreted Value | $ 3,223 | 3,222 | ||||||
Stated interest rate (percentage) | 5.125% | 5.125% | ||||||
CCO Holdings | 5.000% senior notes due February 1, 2028 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 2,500 | 2,500 | ||||||
Accreted Value | $ 2,469 | 2,469 | ||||||
Stated interest rate (percentage) | 5.00% | 5.00% | ||||||
CCO Holdings | 5.375% senior notes due June 1, 2029 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 1,500 | 1,500 | ||||||
Accreted Value | $ 1,501 | 1,501 | ||||||
Stated interest rate (percentage) | 5.375% | 5.375% | ||||||
CCO Holdings | 4.750% senior notes due March 1, 2030 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 3,050 | 3,050 | ||||||
Accreted Value | $ 3,041 | 3,041 | ||||||
Stated interest rate (percentage) | 4.75% | 4.75% | ||||||
CCO Holdings | 4.500% senior notes due August 15, 2030 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 2,750 | $ 1,100 | $ 1,650 | 0 | ||||
Accreted Value | $ 2,750 | 0 | ||||||
Stated interest rate (percentage) | 4.50% | 4.50% | ||||||
Debt instrument issue price (percentage) | 102.50% | |||||||
CCO Holdings | 4.500% senior notes due May 1, 2032 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 1,400 | 0 | ||||||
Accreted Value | $ 1,387 | 0 | ||||||
Stated interest rate (percentage) | 4.50% | 4.50% | ||||||
Charter Operating | 3.579% senior notes due July 23, 2020 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 2,000 | 2,000 | ||||||
Accreted Value | 1,998 | 1,997 | ||||||
Principal amount, current portion | (2,000) | (2,000) | ||||||
Accreted value, current portion | $ (1,998) | (1,997) | ||||||
Stated interest rate (percentage) | 3.579% | 3.579% | ||||||
Charter Operating | 4.464% senior notes due July 23, 2022 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 3,000 | 3,000 | ||||||
Accreted Value | $ 2,988 | 2,987 | ||||||
Stated interest rate (percentage) | 4.464% | 4.464% | ||||||
Charter Operating | Senior floating rate notes due February 1, 2024 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 900 | 900 | ||||||
Accreted Value | 902 | 902 | ||||||
Charter Operating | 4.500% senior notes due February 1, 2024 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | 1,100 | 1,100 | ||||||
Accreted Value | $ 1,093 | 1,093 | ||||||
Stated interest rate (percentage) | 4.50% | 4.50% | ||||||
Charter Operating | 4.908% senior notes due July 23, 2025 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 4,500 | 4,500 | ||||||
Accreted Value | $ 4,472 | 4,471 | ||||||
Stated interest rate (percentage) | 4.908% | 4.908% | ||||||
Charter Operating | 3.750% senior notes due February 15, 2028 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 1,000 | 1,000 | ||||||
Accreted Value | $ 988 | 987 | ||||||
Stated interest rate (percentage) | 3.75% | 3.75% | ||||||
Charter Operating | 4.200% senior notes due March 15, 2028 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 1,250 | 1,250 | ||||||
Accreted Value | $ 1,241 | 1,240 | ||||||
Stated interest rate (percentage) | 4.20% | 4.20% | ||||||
Charter Operating | 5.050% senior notes due March 30, 2029 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 1,250 | 1,250 | ||||||
Accreted Value | $ 1,241 | 1,241 | ||||||
Stated interest rate (percentage) | 5.05% | 5.05% | ||||||
Charter Operating | 6.384% senior notes due October 23, 2035 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 2,000 | 2,000 | ||||||
Accreted Value | $ 1,983 | 1,982 | ||||||
Stated interest rate (percentage) | 6.384% | 6.384% | ||||||
Charter Operating | 5.375% senior notes due April 1, 2038 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 800 | 800 | ||||||
Accreted Value | $ 786 | 786 | ||||||
Stated interest rate (percentage) | 5.375% | 5.375% | ||||||
Charter Operating | 6.484% senior notes due October 23, 2045 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 3,500 | 3,500 | ||||||
Accreted Value | $ 3,467 | 3,467 | ||||||
Stated interest rate (percentage) | 6.484% | 6.484% | ||||||
Charter Operating | 5.375% senior notes due May 1, 2047 | ||||||||
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 | 5.750% senior notes due April 1, 2048 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 2,450 | 2,450 | ||||||
Accreted Value | $ 2,391 | 2,391 | ||||||
Stated interest rate (percentage) | 5.75% | 5.75% | ||||||
Charter Operating | 5.125% senior notes due July 1, 2049 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 1,250 | 1,250 | ||||||
Accreted Value | $ 1,240 | 1,240 | ||||||
Stated interest rate (percentage) | 5.125% | 5.125% | ||||||
Charter Operating | 4.800% senior notes due March 1, 2050 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 2,800 | 2,800 | ||||||
Accreted Value | $ 2,797 | 2,798 | ||||||
Stated interest rate (percentage) | 4.80% | 4.80% | ||||||
Charter Operating | 6.834% senior notes due October 23, 2055 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 500 | 500 | ||||||
Accreted Value | $ 495 | 495 | ||||||
Stated interest rate (percentage) | 6.834% | 6.834% | ||||||
Charter Operating | Credit facilities | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 10,357 | 10,427 | ||||||
Accreted Value | 10,279 | 10,345 | ||||||
Charter Operating | Revolving Credit Facility | ||||||||
Long-term Debt: | ||||||||
Availability under credit facilities | 4,700 | |||||||
Charter Operating | 2.800% senior notes due April 1, 2031 [Member] | Subsequent Event [Member] | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 1,600 | |||||||
Stated interest rate (percentage) | 2.80% | |||||||
Debt instrument issue price (percentage) | 99.561% | |||||||
Charter Operating | 3.700% senior notes due April 1, 2051 [Member] | Subsequent Event [Member] | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 1,400 | |||||||
Stated interest rate (percentage) | 3.70% | |||||||
Debt instrument issue price (percentage) | 99.217% | |||||||
Time Warner Cable | 5.000% senior notes due February 1, 2020 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | 0 | 1,500 | ||||||
Accreted Value | 0 | 1,503 | ||||||
Principal amount, current portion | 0 | (1,500) | ||||||
Accreted value, current portion | $ 0 | (1,503) | ||||||
Stated interest rate (percentage) | 5.00% | 5.00% | ||||||
Time Warner Cable | 4.125% senior notes due February 15, 2021 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 700 | 700 | ||||||
Accreted Value | 709 | 711 | ||||||
Principal amount, current portion | (700) | 0 | ||||||
Accreted value, current portion | $ (709) | 0 | ||||||
Stated interest rate (percentage) | 4.125% | 4.125% | ||||||
Time Warner Cable | 4.000% senior notes due September 1, 2021 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 1,000 | 1,000 | ||||||
Accreted Value | $ 1,018 | 1,021 | ||||||
Stated interest rate (percentage) | 4.00% | 4.00% | ||||||
Time Warner Cable | 5.750% sterling senior notes due June 2, 2031 (a) | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 776 | £ 625 | 828 | |||||
Accreted Value | $ 830 | 886 | ||||||
Stated interest rate (percentage) | 5.75% | 5.75% | ||||||
Time Warner Cable | 6.550% senior debentures due May 1, 2037 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 1,500 | 1,500 | ||||||
Accreted Value | $ 1,673 | 1,675 | ||||||
Stated interest rate (percentage) | 6.55% | 6.55% | ||||||
Time Warner Cable | 7.300% senior debentures due July 1, 2038 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 1,500 | 1,500 | ||||||
Accreted Value | $ 1,770 | 1,772 | ||||||
Stated interest rate (percentage) | 7.30% | 7.30% | ||||||
Time Warner Cable | 6.750% senior debentures due June 15, 2039 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 1,500 | 1,500 | ||||||
Accreted Value | $ 1,711 | 1,713 | ||||||
Stated interest rate (percentage) | 6.75% | 6.75% | ||||||
Time Warner Cable | 5.875% senior debentures due November 15, 2040 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 1,200 | 1,200 | ||||||
Accreted Value | $ 1,254 | 1,255 | ||||||
Stated interest rate (percentage) | 5.875% | 5.875% | ||||||
Time Warner Cable | 5.500% senior debentures due September 1, 2041 | ||||||||
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 | 5.250% sterling senior notes due July 15, 2042 (b) | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 807 | £ 650 | 861 | |||||
Accreted Value | $ 779 | 831 | ||||||
Stated interest rate (percentage) | 5.25% | 5.25% | ||||||
Time Warner Cable | 4.500% senior debentures due September 15, 2042 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 1,250 | 1,250 | ||||||
Accreted Value | $ 1,143 | 1,142 | ||||||
Stated interest rate (percentage) | 4.50% | 4.50% | ||||||
Time Warner Cable Enterprises | 8.375% senior debentures due March 15, 2023 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 1,000 | 1,000 | ||||||
Accreted Value | $ 1,137 | 1,148 | ||||||
Stated interest rate (percentage) | 8.375% | 8.375% | ||||||
Time Warner Cable Enterprises | 8.375% senior debentures due July 15, 2033 | ||||||||
Long-term Debt: | ||||||||
Principal Amount | $ 1,000 | 1,000 | ||||||
Accreted Value | $ 1,281 | $ 1,284 | ||||||
Stated interest rate (percentage) | 8.375% | 8.375% |
Common Stock (Details)
Common Stock (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Class of Stock [Line Items] | ||
Treasury stock acquired (shares) | 5,029,955 | 2,924,551 |
Value of treasury stock shares repurchased/withheld | $ 2,352 | $ 940 |
Remaining authorized repurchase amount | 286 | |
Issuance of equity | $ 23 | |
Liberty Broadband [Member] | ||
Class of Stock [Line Items] | ||
Issuance of equity, shares | 35,112 | |
A/N | ||
Class of Stock [Line Items] | ||
Issuance of equity, shares | 20,182 | |
Share buybacks | ||
Class of Stock [Line Items] | ||
Treasury stock acquired (shares) | 4,452,549 | 2,615,717 |
Value of treasury stock shares repurchased/withheld | $ 2,176 | $ 870 |
Income tax withholding | ||
Class of Stock [Line Items] | ||
Treasury stock acquired (shares) | 335,654 | 214,615 |
Value of treasury stock shares repurchased/withheld | $ 176 | $ 70 |
Exercise cost | ||
Class of Stock [Line Items] | ||
Treasury stock acquired (shares) | 241,752 | 94,219 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Noncontrolling Interests: | ||
Net income attributable to noncontrolling interest | $ 71 | $ 64 |
Distributions to noncontrolling interest | 39 | 39 |
Purchase of noncontrolling interest, net of tax | (344) | (89) |
Change in noncontrolling interest ownership, net of tax | (27) | (7) |
Common Noncontrolling Interest | ||
Noncontrolling Interests: | ||
Net income attributable to noncontrolling interest | $ 33 | $ 26 |
Purchase of noncontrolling interest (shares) | 795,607 | 302,942 |
Purchase of noncontrolling interest (price per share) | $ 494.54 | $ 308.42 |
Purchase price of noncontrolling interest | $ 393 | $ 93 |
Common Noncontrolling Interest | A/N | ||
Noncontrolling Interests: | ||
Ownership percentage held by noncontrolling interest (percentage) | 8.00% | |
Preferred Noncontrolling Interest | ||
Noncontrolling Interests: | ||
Distributions to noncontrolling interest | $ 38 | 38 |
Noncontrolling Interests | ||
Noncontrolling Interests: | ||
Distributions to noncontrolling interest | 39 | 39 |
Purchase of noncontrolling interest, net of tax | (195) | (74) |
Change in noncontrolling interest ownership, net of tax | (109) | (29) |
Noncontrolling Interests | Common Noncontrolling Interest | ||
Noncontrolling Interests: | ||
Purchase of noncontrolling interest, net of tax | (195) | (74) |
Additional Paid-in Capital | ||
Noncontrolling Interests: | ||
Distributions to noncontrolling interest | 0 | 0 |
Purchase of noncontrolling interest, net of tax | (149) | (15) |
Change in noncontrolling interest ownership, net of tax | 82 | 22 |
Additional Paid-in Capital | Common Noncontrolling Interest | ||
Noncontrolling Interests: | ||
Impact of noncontrolling interest purchased | $ (149) | $ (15) |
Maximum | Charter | ||
Noncontrolling Interests: | ||
Minority Interest Ownership Percentage Threshold | 100.00% |
Accounting for Derivative Ins_4
Accounting for Derivative Instruments and Hedging Activities (Details) £ in Millions, $ in Millions | 3 Months Ended | |||
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2020GBP (£) | Dec. 31, 2019USD ($) | |
Gain (Loss) On Financial Instruments, Net | ||||
Change in fair value of cross-currency derivative instruments | $ (426) | $ 77 | ||
Foreign currency remeasurement of Sterling Notes to U.S. dollars | 108 | (40) | ||
Gain (loss) on financial instruments, net | $ (318) | $ 37 | ||
Cross Currency Derivatives | ||||
Derivatives: | ||||
Notional amount | £ | £ 1,275 | |||
Collateral holiday agreement, percentage of position covered | 60.00% | 60.00% | ||
Collateral holiday agreement, term | 3 years | |||
collateral cap term | 10 years | |||
Collateral cap, percentage of position covered | 40.00% | 40.00% | ||
Maximum amount of collateral required to be posted | $ 150 | |||
Level 2 | Cross Currency Derivatives | ||||
Derivatives: | ||||
Derivative Liability | $ 650 | $ 224 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value Measurements: | ||
Carrying Value | $ 79,692 | $ 79,078 |
Senior notes and debentures | ||
Fair Value Measurements: | ||
Carrying Value | 69,413 | 68,733 |
Credit facilities | ||
Fair Value Measurements: | ||
Carrying Value | 10,279 | 10,345 |
Level 1 | Senior notes and debentures | ||
Fair Value Measurements: | ||
Fair Value | 72,108 | 74,938 |
Level 2 | Credit facilities | ||
Fair Value Measurements: | ||
Fair Value | 9,610 | 10,448 |
Cross Currency Derivatives | Level 2 | ||
Fair Value Measurements: | ||
Derivative Liability | $ 650 | $ 224 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Product Information [Line Items] | ||
REVENUES | $ 11,738 | $ 11,206 |
Video | ||
Product Information [Line Items] | ||
REVENUES | 4,422 | 4,384 |
Internet | ||
Product Information [Line Items] | ||
REVENUES | 4,407 | 4,024 |
Voice | ||
Product Information [Line Items] | ||
REVENUES | 457 | 504 |
Residential revenue | ||
Product Information [Line Items] | ||
REVENUES | 9,286 | 8,912 |
Small and medium business | ||
Product Information [Line Items] | ||
REVENUES | 996 | 945 |
Enterprise | ||
Product Information [Line Items] | ||
REVENUES | 622 | 643 |
Commercial revenue | ||
Product Information [Line Items] | ||
REVENUES | 1,618 | 1,588 |
Advertising sales | ||
Product Information [Line Items] | ||
REVENUES | 365 | 345 |
Mobile | ||
Product Information [Line Items] | ||
REVENUES | 258 | 140 |
Other | ||
Product Information [Line Items] | ||
REVENUES | $ 211 | $ 221 |
Operating Costs and Expenses (D
Operating Costs and Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating Costs and Expenses [Abstract] | ||
Programming | $ 2,892 | $ 2,865 |
Regulatory, connectivity and produced content | 551 | 561 |
Costs to service customers | 1,848 | 1,822 |
Marketing | 766 | 735 |
Mobile | 374 | 260 |
Other | 1,001 | 993 |
Operating costs and expenses (exclusive of items shown separately in the consolidated statements of operations) | $ 7,432 | $ 7,236 |
Other Operating (Income) Expe_3
Other Operating (Income) Expenses, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other Operating Expenses, Net [Abstract] | ||
Special charges, net | $ 16 | $ (4) |
(Gain) loss on sale of assets, net | (9) | (1) |
Other operating (income) expenses, net | $ 7 | $ (5) |
Stock Compensation Plans (Detai
Stock Compensation Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Stock Compensation Plans: | ||
Stock compensation expense | $ 90 | $ 85 |
Stock options | ||
Stock Compensation Plans: | ||
Stock options granted in period (shares) | 1,253,700 | 1,750,900 |
Award vesting period | 3 years | |
Award expiration period | 10 years | |
Unrecognized compensation cost | $ 307 | |
Remaining period over which to recognize unrecognized compensation expense | 2 years | |
Restricted stock | ||
Stock Compensation Plans: | ||
Award vesting period | 1 year | |
Unrecognized compensation cost | $ 0.2 | |
Remaining period over which to recognize unrecognized compensation expense | 1 month | |
Restricted stock units | ||
Stock Compensation Plans: | ||
Awards other than stock options granted in period (shares) | 408,300 | 673,700 |
Award vesting period | 3 years | |
Unrecognized compensation cost | $ 358 | |
Remaining period over which to recognize unrecognized compensation expense | 2 years |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 29 | $ 119 | |
Unrecognized Tax Benefits | $ 244 | $ 230 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 27,000,000 | 31,000,000 |
Net income attributable to Charter shareholders | $ 396 | $ 253 |
Weighted average common shares outstanding, basic (shares) | 207,831,305 | 224,630,122 |
Assumed exercise or issuance of shares relating to stock plans | 4,979,308 | 2,965,243 |
Weighted average common shares outstanding, diluted (shares) | 212,810,613 | 227,595,365 |
Basic earnings per common share attributable to Charter shareholders (dollars per share) | $ 1.91 | $ 1.13 |
Diluted earnings per common share attributable to Charter shareholders (dollars per share) | $ 1.86 | $ 1.11 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Related Party Transactions: | ||
Dr. John Malone's voting interest in Liberty Broadband (percentage) | 48.80% | |
Dr. John Malone's voting interest in Qurate Retail, Inc. (percentage) | 40.90% | |
Cash payments received from HSN, Inc. and QVC, Inc. | $ 12 | $ 12 |
Dr. John Malone's voting interest in Discovery Communications, Inc. for election of directors (percentage) | 27.90% | |
Advance Newhouse Programming Partnership's ownership percentage in Series A preferred stock of Discovery Communications, Inc. (percentage) | 100.00% | |
Advance Newhouse Programming Partnership's ownership percentage in Series C preferred stock of Discovery Communications, Inc. (percentage) | 100.00% | |
Advance Newhouse Programming Partnership's voting interest in Discovery Communications, Inc. for election of directors (percentage) | 23.90% | |
Maximum | ||
Related Party Transactions: | ||
Percent of total operating costs and expenses paid to Discovery Communications, Inc. and Starz (percentage) | 2.00% | 2.00% |
Equity Method Investee | ||
Related Party Transactions: | ||
Payments to related parties | $ 63 | $ 86 |
Class A Common Stock | ||
Related Party Transactions: | ||
Dr. John Malone's ownership percentage in Discovery Communications, Inc. (percentage) | 1.20% | |
Class B Common Stock | ||
Related Party Transactions: | ||
Dr. John Malone's ownership percentage in Discovery Communications, Inc. (percentage) | 93.60% | |
Class C Common Stock | ||
Related Party Transactions: | ||
Dr. John Malone's ownership percentage in Discovery Communications, Inc. (percentage) | 3.60% |
Contingencies (Details)
Contingencies (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Loss Contingency, Damages Awarded, Value | $ 140 |
Litigation Settlement Interest | $ 6 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Benefit Plan [Abstract] | ||
Interest cost | $ (28) | $ (32) |
Expected return on plan assets | 38 | 41 |
Net periodic pension benefits | $ 10 | $ 9 |
Condensed Consolidating Balance
Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||||
Cash and cash equivalents | $ 2,908 | $ 3,483 | ||
Accounts receivable, net | 2,091 | 2,227 | ||
Receivables from related party | 0 | 0 | ||
Prepaid expenses and other current assets | 760 | 761 | ||
Total current assets | 5,759 | 6,471 | ||
RESTRICTED CASH | 28 | 66 | ||
INVESTMENT IN CABLE PROPERTIES: | ||||
Property, plant and equipment, net | 34,096 | 34,591 | ||
Customer relationships, net | 6,955 | 7,453 | ||
Franchises | 67,322 | 67,322 | ||
Goodwill | 29,554 | 29,554 | ||
Total investment in cable properties, net | 137,927 | 138,920 | ||
INVESTMENT IN SUBSIDIARIES | 0 | 0 | ||
LOANS RECEIVABLE – RELATED PARTY | 0 | 0 | ||
OTHER NONCURRENT ASSETS | 2,838 | 2,731 | ||
Total assets | 146,552 | 148,188 | ||
CURRENT LIABILITIES: | ||||
Accounts payable and accrued liabilities | 8,310 | 8,885 | ||
Payables to related party | 0 | 0 | ||
Current portion of long-term debt | 4,905 | 3,500 | ||
Total current liabilities | 13,215 | 12,385 | ||
LONG-TERM DEBT | 74,787 | 75,578 | ||
LOANS PAYABLE – RELATED PARTY | 0 | 0 | ||
DEFERRED INCOME TAXES | 17,665 | 17,711 | ||
OTHER LONG-TERM LIABILITIES | 4,163 | 3,703 | ||
SHAREHOLDERS’/MEMBER’S EQUITY | ||||
Controlling interest | 29,628 | 31,445 | ||
Noncontrolling interests | 7,094 | 7,366 | ||
Total shareholders’/member’s equity | 36,722 | 38,811 | $ 43,643 | $ 44,272 |
Total liabilities and shareholders’/member’s equity | 146,552 | 148,188 | ||
Eliminations | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Receivables from related party | (202) | (357) | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | (202) | (357) | ||
RESTRICTED CASH | 0 | 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 | (177,275) | (180,699) | ||
LOANS RECEIVABLE – RELATED PARTY | (1,572) | (1,504) | ||
OTHER NONCURRENT ASSETS | 0 | 0 | ||
Total assets | (179,049) | (182,560) | ||
CURRENT LIABILITIES: | ||||
Accounts payable and accrued liabilities | 0 | 0 | ||
Payables to related party | (202) | (357) | ||
Current portion of long-term debt | 0 | 0 | ||
Total current liabilities | (202) | (357) | ||
LONG-TERM DEBT | 0 | 0 | ||
LOANS PAYABLE – RELATED PARTY | (1,572) | (1,504) | ||
DEFERRED INCOME TAXES | 0 | 0 | ||
OTHER LONG-TERM LIABILITIES | 0 | 0 | ||
SHAREHOLDERS’/MEMBER’S EQUITY | ||||
Controlling interest | (177,275) | (180,699) | ||
Noncontrolling interests | 0 | 0 | ||
Total shareholders’/member’s equity | (177,275) | (180,699) | ||
Total liabilities and shareholders’/member’s equity | (179,049) | (182,560) | ||
Charter | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 0 | 0 | ||
Accounts receivable, net | 0 | 1 | ||
Receivables from related party | 18 | 34 | ||
Prepaid expenses and other current assets | 4 | 10 | ||
Total current assets | 22 | 45 | ||
RESTRICTED CASH | 0 | 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 | 47,193 | 49,024 | ||
LOANS RECEIVABLE – RELATED PARTY | 278 | 260 | ||
OTHER NONCURRENT ASSETS | 2 | 2 | ||
Total assets | 47,495 | 49,331 | ||
CURRENT LIABILITIES: | ||||
Accounts payable and accrued liabilities | 26 | 18 | ||
Payables to related party | 0 | 0 | ||
Current portion of long-term debt | 0 | 0 | ||
Total current liabilities | 26 | 18 | ||
LONG-TERM DEBT | 0 | 0 | ||
LOANS PAYABLE – RELATED PARTY | 0 | 0 | ||
DEFERRED INCOME TAXES | 17,591 | 17,641 | ||
OTHER LONG-TERM LIABILITIES | 250 | 227 | ||
SHAREHOLDERS’/MEMBER’S EQUITY | ||||
Controlling interest | 29,628 | 31,445 | ||
Noncontrolling interests | 0 | 0 | ||
Total shareholders’/member’s equity | 29,628 | 31,445 | ||
Total liabilities and shareholders’/member’s equity | 47,495 | 49,331 | ||
Intermediate Holding Companies | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 248 | 234 | ||
Accounts receivable, net | 34 | 31 | ||
Receivables from related party | 143 | 264 | ||
Prepaid expenses and other current assets | 57 | 40 | ||
Total current assets | 482 | 569 | ||
RESTRICTED CASH | 28 | 66 | ||
INVESTMENT IN CABLE PROPERTIES: | ||||
Property, plant and equipment, net | 719 | 683 | ||
Customer relationships, net | 0 | 0 | ||
Franchises | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Total investment in cable properties, net | 719 | 683 | ||
INVESTMENT IN SUBSIDIARIES | 53,157 | 55,266 | ||
LOANS RECEIVABLE – RELATED PARTY | 727 | 699 | ||
OTHER NONCURRENT ASSETS | 372 | 378 | ||
Total assets | 55,485 | 57,661 | ||
CURRENT LIABILITIES: | ||||
Accounts payable and accrued liabilities | 656 | 725 | ||
Payables to related party | 0 | 0 | ||
Current portion of long-term debt | 0 | 0 | ||
Total current liabilities | 656 | 725 | ||
LONG-TERM DEBT | 0 | 0 | ||
LOANS PAYABLE – RELATED PARTY | 0 | 0 | ||
DEFERRED INCOME TAXES | 19 | 15 | ||
OTHER LONG-TERM LIABILITIES | 545 | 554 | ||
SHAREHOLDERS’/MEMBER’S EQUITY | ||||
Controlling interest | 47,193 | 49,024 | ||
Noncontrolling interests | 7,072 | 7,343 | ||
Total shareholders’/member’s equity | 54,265 | 56,367 | ||
Total liabilities and shareholders’/member’s equity | 55,485 | 57,661 | ||
CCO Holdings | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 200 | 500 | ||
Accounts receivable, net | 0 | 0 | ||
Receivables from related party | 41 | 59 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | 241 | 559 | ||
RESTRICTED CASH | 0 | 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 | 76,925 | 76,409 | ||
LOANS RECEIVABLE – RELATED PARTY | 567 | 545 | ||
OTHER NONCURRENT ASSETS | 0 | 0 | ||
Total assets | 77,733 | 77,513 | ||
CURRENT LIABILITIES: | ||||
Accounts payable and accrued liabilities | 314 | 296 | ||
Payables to related party | 0 | 0 | ||
Current portion of long-term debt | 2,198 | 0 | ||
Total current liabilities | 2,512 | 296 | ||
LONG-TERM DEBT | 22,064 | 21,951 | ||
LOANS PAYABLE – RELATED PARTY | 0 | 0 | ||
DEFERRED INCOME TAXES | 0 | 0 | ||
OTHER LONG-TERM LIABILITIES | 0 | 0 | ||
SHAREHOLDERS’/MEMBER’S EQUITY | ||||
Controlling interest | 53,157 | 55,266 | ||
Noncontrolling interests | 0 | 0 | ||
Total shareholders’/member’s equity | 53,157 | 55,266 | ||
Total liabilities and shareholders’/member’s equity | 77,733 | 77,513 | ||
Charter Operating and Restricted Subsidiaries | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 2,460 | 2,749 | ||
Accounts receivable, net | 2,057 | 2,195 | ||
Receivables from related party | 0 | 0 | ||
Prepaid expenses and other current assets | 699 | 711 | ||
Total current assets | 5,216 | 5,655 | ||
RESTRICTED CASH | 0 | 0 | ||
INVESTMENT IN CABLE PROPERTIES: | ||||
Property, plant and equipment, net | 33,377 | 33,908 | ||
Customer relationships, net | 6,955 | 7,453 | ||
Franchises | 67,322 | 67,322 | ||
Goodwill | 29,554 | 29,554 | ||
Total investment in cable properties, net | 137,208 | 138,237 | ||
INVESTMENT IN SUBSIDIARIES | 0 | 0 | ||
LOANS RECEIVABLE – RELATED PARTY | 0 | 0 | ||
OTHER NONCURRENT ASSETS | 2,464 | 2,351 | ||
Total assets | 144,888 | 146,243 | ||
CURRENT LIABILITIES: | ||||
Accounts payable and accrued liabilities | 7,314 | 7,846 | ||
Payables to related party | 202 | 357 | ||
Current portion of long-term debt | 2,707 | 3,500 | ||
Total current liabilities | 10,223 | 11,703 | ||
LONG-TERM DEBT | 52,723 | 53,627 | ||
LOANS PAYABLE – RELATED PARTY | 1,572 | 1,504 | ||
DEFERRED INCOME TAXES | 55 | 55 | ||
OTHER LONG-TERM LIABILITIES | 3,368 | 2,922 | ||
SHAREHOLDERS’/MEMBER’S EQUITY | ||||
Controlling interest | 76,925 | 76,409 | ||
Noncontrolling interests | 22 | 23 | ||
Total shareholders’/member’s equity | 76,947 | 76,432 | ||
Total liabilities and shareholders’/member’s equity | $ 144,888 | $ 146,243 |
Condensed Consolidating Stateme
Condensed Consolidating Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Condensed Consolidating Statements of Operations | ||
REVENUES | $ 11,738 | $ 11,206 |
COSTS AND EXPENSES: | ||
Operating costs and expenses (exclusive of items shown separately below) | 7,432 | 7,236 |
Depreciation and amortization | 2,497 | 2,550 |
Other operating (income) expenses, net | 7 | (5) |
Total costs and expenses | 9,936 | 9,781 |
Income from operations | 1,802 | 1,425 |
OTHER INCOME (EXPENSES): | ||
Interest income (expense), net | (980) | (925) |
Loss on extinguishment of debt | (27) | 0 |
Gain (loss) on financial instruments, net | (318) | 37 |
Other pension benefits, net | 10 | 9 |
Other income (expense), net | 9 | (110) |
Equity in income of subsidiaries | 0 | 0 |
Total other income (expense) | (1,306) | (989) |
Income before income taxes | 496 | 436 |
Income tax expense | (29) | (119) |
Consolidated net income | 467 | 317 |
Less: Net income attributable to noncontrolling interests | (71) | (64) |
Net income | 396 | 253 |
Eliminations | ||
Condensed Consolidating Statements of Operations | ||
REVENUES | (314) | (291) |
COSTS AND EXPENSES: | ||
Operating costs and expenses (exclusive of items shown separately below) | (311) | (300) |
Depreciation and amortization | 0 | 0 |
Other operating (income) expenses, net | (3) | 9 |
Total costs and expenses | (314) | (291) |
Income from operations | 0 | 0 |
OTHER INCOME (EXPENSES): | ||
Interest income (expense), net | 0 | 0 |
Loss on extinguishment of debt | 0 | |
Gain (loss) on financial instruments, net | 0 | 0 |
Other pension benefits, net | 0 | 0 |
Other income (expense), net | 0 | 0 |
Equity in income of subsidiaries | (1,647) | (1,256) |
Total other income (expense) | (1,647) | (1,256) |
Income before income taxes | (1,647) | (1,256) |
Income tax expense | 0 | 0 |
Consolidated net income | (1,647) | (1,256) |
Less: Net income attributable to noncontrolling interests | 0 | 0 |
Net income | (1,647) | (1,256) |
Charter | ||
Condensed Consolidating Statements of Operations | ||
REVENUES | 13 | 12 |
COSTS AND EXPENSES: | ||
Operating costs and expenses (exclusive of items shown separately below) | 13 | 12 |
Depreciation and amortization | 0 | 0 |
Other operating (income) expenses, net | 0 | 0 |
Total costs and expenses | 13 | 12 |
Income from operations | 0 | 0 |
OTHER INCOME (EXPENSES): | ||
Interest income (expense), net | 5 | 3 |
Loss on extinguishment of debt | 0 | |
Gain (loss) on financial instruments, net | 0 | 0 |
Other pension benefits, net | 0 | 0 |
Other income (expense), net | 0 | 0 |
Equity in income of subsidiaries | 405 | 302 |
Total other income (expense) | 410 | 305 |
Income before income taxes | 410 | 305 |
Income tax expense | (14) | (52) |
Consolidated net income | 396 | 253 |
Less: Net income attributable to noncontrolling interests | 0 | 0 |
Net income | 396 | 253 |
Intermediate Holding Companies | ||
Condensed Consolidating Statements of Operations | ||
REVENUES | 303 | 282 |
COSTS AND EXPENSES: | ||
Operating costs and expenses (exclusive of items shown separately below) | 278 | 282 |
Depreciation and amortization | 4 | 3 |
Other operating (income) expenses, net | 0 | (10) |
Total costs and expenses | 282 | 275 |
Income from operations | 21 | 7 |
OTHER INCOME (EXPENSES): | ||
Interest income (expense), net | 7 | 9 |
Loss on extinguishment of debt | 0 | |
Gain (loss) on financial instruments, net | 0 | 0 |
Other pension benefits, net | 0 | 0 |
Other income (expense), net | (2) | 0 |
Equity in income of subsidiaries | 459 | 350 |
Total other income (expense) | 464 | 359 |
Income before income taxes | 485 | 366 |
Income tax expense | (9) | 0 |
Consolidated net income | 476 | 366 |
Less: Net income attributable to noncontrolling interests | (71) | (64) |
Net income | 405 | 302 |
CCO Holdings | ||
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 (income) expenses, net | 0 | 0 |
Total costs and expenses | 0 | 0 |
Income from operations | 0 | 0 |
OTHER INCOME (EXPENSES): | ||
Interest income (expense), net | (297) | (254) |
Loss on extinguishment of debt | (27) | |
Gain (loss) on financial instruments, net | 0 | 0 |
Other pension benefits, net | 0 | 0 |
Other income (expense), net | 0 | 0 |
Equity in income of subsidiaries | 783 | 604 |
Total other income (expense) | 459 | 350 |
Income before income taxes | 459 | 350 |
Income tax expense | 0 | 0 |
Consolidated net income | 459 | 350 |
Less: Net income attributable to noncontrolling interests | 0 | 0 |
Net income | 459 | 350 |
Charter Operating and Restricted Subsidiaries | ||
Condensed Consolidating Statements of Operations | ||
REVENUES | 11,736 | 11,203 |
COSTS AND EXPENSES: | ||
Operating costs and expenses (exclusive of items shown separately below) | 7,452 | 7,242 |
Depreciation and amortization | 2,493 | 2,547 |
Other operating (income) expenses, net | 10 | (4) |
Total costs and expenses | 9,955 | 9,785 |
Income from operations | 1,781 | 1,418 |
OTHER INCOME (EXPENSES): | ||
Interest income (expense), net | (695) | (683) |
Loss on extinguishment of debt | 0 | |
Gain (loss) on financial instruments, net | (318) | 37 |
Other pension benefits, net | 10 | 9 |
Other income (expense), net | 11 | (110) |
Equity in income of subsidiaries | 0 | 0 |
Total other income (expense) | (992) | (747) |
Income before income taxes | 789 | 671 |
Income tax expense | (6) | (67) |
Consolidated net income | 783 | 604 |
Less: Net income attributable to noncontrolling interests | 0 | 0 |
Net income | $ 783 | $ 604 |
Condensed Consolidating State_2
Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Condensed Consolidating Statements of Cash Flows | ||
NET CASH FLOWS FROM OPERATING ACTIVITIES | $ 3,220 | $ 2,686 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (1,461) | (1,665) |
Change in accrued expenses related to capital expenditures | (388) | (376) |
Real estate investments through variable interest entities | (38) | (39) |
Contributions to subsidiaries | 0 | 0 |
Distributions from subsidiaries | 0 | 0 |
Other, net | 37 | 0 |
Net cash flows from investing activities | (1,850) | (2,080) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 4,339 | 6,884 |
Repayments of long-term debt | (3,589) | (5,572) |
Borrowings (repayments) of loans payable - related parties | 0 | |
Payments for debt issuance costs | (41) | (25) |
Issuance of equity | 23 | 0 |
Purchase of treasury stock | (2,352) | (940) |
Proceeds from exercise of stock options | 93 | 44 |
Purchase of noncontrolling interest | (393) | (93) |
Distributions to noncontrolling interest | (39) | (39) |
Contributions from parent | 0 | 0 |
Distributions to parent | 0 | 0 |
Other, net | (24) | (4) |
Net cash flows from financing activities | (1,983) | 255 |
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (613) | 861 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 3,549 | 765 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | 2,936 | 1,626 |
Eliminations | ||
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 | 67 |
Change in accrued expenses related to capital expenditures | 0 | 0 |
Real estate investments through variable interest entities | 0 | 0 |
Contributions to subsidiaries | 4,417 | 62 |
Distributions from subsidiaries | (9,666) | (3,247) |
Other, net | 0 | (67) |
Net cash flows from investing activities | (5,249) | (3,185) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 0 | 0 |
Repayments of long-term debt | 0 | 0 |
Borrowings (repayments) of loans payable - related parties | 0 | |
Payments for debt issuance costs | 0 | 0 |
Issuance of equity | 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 | (4,417) | (62) |
Distributions to parent | 9,666 | 3,247 |
Other, net | 0 | 0 |
Net cash flows from financing activities | 5,249 | 3,185 |
NET 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 | ||
Condensed Consolidating Statements of Cash Flows | ||
NET CASH FLOWS FROM OPERATING ACTIVITIES | 6 | (1) |
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 investments through variable interest entities | 0 | 0 |
Contributions to subsidiaries | (117) | (44) |
Distributions from subsidiaries | 2,352 | 941 |
Other, net | 0 | 0 |
Net cash flows from investing activities | 2,235 | 897 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 0 | 0 |
Repayments of long-term debt | 0 | 0 |
Borrowings (repayments) of loans payable - related parties | (5) | |
Payments for debt issuance costs | 0 | 0 |
Issuance of equity | 23 | |
Purchase of treasury stock | (2,352) | (940) |
Proceeds from exercise of stock options | 93 | 44 |
Purchase of noncontrolling interest | 0 | 0 |
Distributions to noncontrolling interest | 0 | 0 |
Contributions from parent | 0 | 0 |
Distributions to parent | 0 | 0 |
Other, net | 0 | 0 |
Net cash flows from financing activities | (2,241) | (896) |
NET 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 |
Intermediate Holding Companies | ||
Condensed Consolidating Statements of Cash Flows | ||
NET CASH FLOWS FROM OPERATING ACTIVITIES | 24 | 0 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | 0 | (67) |
Change in accrued expenses related to capital expenditures | 0 | 0 |
Real estate investments through variable interest entities | (38) | (39) |
Contributions to subsidiaries | (27) | (9) |
Distributions from subsidiaries | 2,685 | 1,040 |
Other, net | (2) | 0 |
Net cash flows from investing activities | 2,618 | 925 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 0 | 0 |
Repayments of long-term debt | 0 | 0 |
Borrowings (repayments) of loans payable - related parties | 0 | |
Payments for debt issuance costs | 0 | 0 |
Issuance of equity | 0 | |
Purchase of treasury stock | 0 | 0 |
Proceeds from exercise of stock options | 0 | 0 |
Purchase of noncontrolling interest | (393) | (93) |
Distributions to noncontrolling interest | (38) | (38) |
Contributions from parent | 117 | 44 |
Distributions to parent | (2,352) | (941) |
Other, net | 0 | 0 |
Net cash flows from financing activities | (2,666) | (1,028) |
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (24) | (103) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 300 | 465 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | 276 | 362 |
CCO Holdings | ||
Condensed Consolidating Statements of Cash Flows | ||
NET CASH FLOWS FROM OPERATING ACTIVITIES | (276) | (226) |
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 investments through variable interest entities | 0 | 0 |
Contributions to subsidiaries | (4,273) | (9) |
Distributions from subsidiaries | 4,629 | 1,266 |
Other, net | 0 | 0 |
Net cash flows from investing activities | 356 | 1,257 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 4,177 | 0 |
Repayments of long-term debt | (1,858) | 0 |
Borrowings (repayments) of loans payable - related parties | 0 | |
Payments for debt issuance costs | (41) | 0 |
Issuance of equity | 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 | 27 | 9 |
Distributions to parent | (2,685) | (1,040) |
Other, net | 0 | 0 |
Net cash flows from financing activities | (380) | (1,031) |
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (300) | 0 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 500 | 0 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | 200 | 0 |
Charter Operating and Restricted Subsidiaries | ||
Condensed Consolidating Statements of Cash Flows | ||
NET CASH FLOWS FROM OPERATING ACTIVITIES | 3,466 | 2,913 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (1,461) | (1,665) |
Change in accrued expenses related to capital expenditures | (388) | (376) |
Real estate investments through variable interest entities | 0 | 0 |
Contributions to subsidiaries | 0 | 0 |
Distributions from subsidiaries | 0 | 0 |
Other, net | 39 | 67 |
Net cash flows from investing activities | (1,810) | (1,974) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 162 | 6,884 |
Repayments of long-term debt | (1,731) | (5,572) |
Borrowings (repayments) of loans payable - related parties | 5 | |
Payments for debt issuance costs | 0 | (25) |
Issuance of equity | 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 | (1) | (1) |
Contributions from parent | 4,273 | 9 |
Distributions to parent | (4,629) | (1,266) |
Other, net | (24) | (4) |
Net cash flows from financing activities | (1,945) | 25 |
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (289) | 964 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 2,749 | 300 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | $ 2,460 | $ 1,264 |