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 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 six months ended June 30, 2020 and 2019. Condensed consolidating financial statements as of June 30, 2020 and December 31, 2019 and for the six months ended June 30, 2020 and 2019 follow. Charter Communications, Inc. and Subsidiaries Condensed Consolidating Balance Sheets As of June 30, 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 $ — $ 239 $ 200 $ 1,658 $ — $ 2,097 Accounts receivable, net — 33 — 1,961 — 1,994 Receivables from related party 31 107 43 — (181) — Prepaid expenses and other current assets 4 45 — 625 — 674 Total current assets 35 424 243 4,244 (181) 4,765 RESTRICTED CASH — 5 — — — 5 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 770 — 33,304 — 34,074 Customer relationships, net — — — 6,486 — 6,486 Franchises — — — 67,322 — 67,322 Goodwill — — — 29,554 — 29,554 Total investment in cable properties, net — 770 — 136,666 — 137,436 INVESTMENT IN SUBSIDIARIES 47,040 52,975 74,548 — (174,563) — LOANS RECEIVABLE – RELATED PARTY 297 727 567 — (1,591) — OTHER NONCURRENT ASSETS 2 364 — 2,564 — 2,930 Total assets $ 47,374 $ 55,265 $ 75,358 $ 143,474 $ (176,335) $ 145,136 LIABILITIES AND SHAREHOLDERS’/MEMBER’S EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 51 $ 628 $ 314 $ 7,443 $ — $ 8,436 Payables to related party — — — 181 (181) — Current portion of long-term debt — — — 706 — 706 Total current liabilities 51 628 314 8,330 (181) 9,142 LONG-TERM DEBT — — 22,069 55,594 — 77,663 LOANS PAYABLE – RELATED PARTY — — — 1,591 (1,591) — DEFERRED INCOME TAXES 17,717 17 — 55 — 17,789 OTHER LONG-TERM LIABILITIES 250 558 — 3,333 — 4,141 SHAREHOLDERS’/MEMBER’S EQUITY Controlling interest 29,356 47,040 52,975 74,548 (174,563) 29,356 Noncontrolling interests — 7,022 — 23 — 7,045 Total shareholders’/member’s equity 29,356 54,062 52,975 74,571 (174,563) 36,401 Total liabilities and shareholders’/member’s equity $ 47,374 $ 55,265 $ 75,358 $ 143,474 $ (176,335) $ 145,136 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 six months June 30, 2020 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated REVENUES $ 29 $ 597 $ — $ 23,430 $ (622) $ 23,434 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 29 545 — 14,774 (619) 14,729 Depreciation and amortization — 8 — 4,917 — 4,925 Other operating expense, net — — — 12 (3) 9 29 553 — 19,703 (622) 19,663 Income from operations — 44 — 3,727 — 3,771 OTHER INCOME (EXPENSES): Interest income (expense), net 8 12 (587) (1,370) — (1,937) Loss on extinguishment of debt — — (63) — — (63) Loss on financial instruments, net — — — (254) — (254) Other pension benefits, net — — — 21 — 21 Other income (expense), net — (5) — 5 — — Equity in income of subsidiaries 1,313 1,465 2,115 — (4,893) — 1,321 1,472 1,465 (1,598) (4,893) (2,233) Income before income taxes 1,321 1,516 1,465 2,129 (4,893) 1,538 Income tax expense (159) (23) — (13) — (195) Consolidated net income 1,162 1,493 1,465 2,116 (4,893) 1,343 Less: Net income attributable to noncontrolling interests — (180) — (1) — (181) Net income $ 1,162 $ 1,313 $ 1,465 $ 2,115 $ (4,893) $ 1,162 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Operations For the six months ended June 30, 2019 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated REVENUES $ 23 $ 575 $ — $ 22,548 $ (593) $ 22,553 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 23 556 — 14,500 (599) 14,480 Depreciation and amortization — 8 — 5,042 — 5,050 Other operating expense (income), net — (8) — 59 6 57 23 556 — 19,601 (593) 19,587 Income from operations — 19 — 2,947 — 2,966 OTHER INCOME (EXPENSES): Interest income (expense), net 5 17 (511) (1,381) — (1,870) Loss on financial instruments, net — — — (82) — (82) Other pension benefits, net — — — 18 — 18 Other expense, net — — — (126) — (126) Equity in income of subsidiaries 685 788 1,299 — (2,772) — 690 805 788 (1,571) (2,772) (2,060) Income before income taxes 690 824 788 1,376 (2,772) 906 Income tax expense (123) (4) — (76) — (203) Consolidated net income 567 820 788 1,300 (2,772) 703 Less: Net income attributable to noncontrolling interests — (135) — (1) — (136) Net income $ 567 $ 685 $ 788 $ 1,299 $ (2,772) $ 567 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Cash Flows For the six months ended June 30, 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 $ 3 $ 51 $ (565) $ 7,260 $ — $ 6,749 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — — — (3,338) — (3,338) Change in accrued expenses related to capital expenditures — — — (174) — (174) Real estate investments through variable interest entities — (81) — — — (81) Contributions to subsidiaries (145) (39) (4,385) — 4,569 — Distributions from subsidiaries 3,530 3,975 8,541 — (16,046) — Other, net — (3) — (5) — (8) Net cash flows from investing activities 3,385 3,852 4,156 (3,517) (11,477) (3,601) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — 4,178 3,144 — 7,322 Repayments of long-term debt — — (4,092) (3,800) — (7,892) Borrowings (repayments) of loans payable - related parties (25) — — 25 — — Payments for debt issuance costs — — (41) (21) — (62) Issuance of equity 23 — — — — 23 Purchase of treasury stock (3,507) — — — — (3,507) Proceeds from exercise of stock options 121 — — — — 121 Purchase of noncontrolling interest — (518) — — — (518) Distributions to noncontrolling interest — (76) — (1) — (77) Contributions from parent — 145 39 4,385 (4,569) — Distributions to parent — (3,530) (3,975) (8,541) 16,046 — Borrowings for real estate investments through variable interest entities — 24 — — — 24 Distributions to variable interest entities noncontrolling interest — (4) — — — (4) Other, net — — — (25) — (25) Net cash flows from financing activities (3,388) (3,959) (3,891) (4,834) 11,477 (4,595) NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH — (56) (300) (1,091) — (1,447) CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period — 300 500 2,749 — 3,549 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period $ — $ 244 $ 200 $ 1,658 $ — $ 2,102 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Cash Flows For the six months ended June 30, 2019 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated NET CASH FLOWS FROM OPERATING ACTIVITIES $ (18) $ 55 $ (509) $ 5,919 $ — $ 5,447 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — (67) — (3,262) 67 (3,262) Change in accrued expenses related to capital expenditures — — — (428) — (428) Real estate investments through variable interest entities — (64) — — — (64) Contribution to subsidiaries (91) (51) (792) — 934 — Distributions from subsidiaries 1,829 2,084 2,591 — (6,504) — Other, net — (5) — 80 (67) 8 Net cash flows from investing activities 1,738 1,897 1,799 (3,610) (5,570) (3,746) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — 750 9,964 — 10,714 Repayments of long-term debt — — — (10,123) — (10,123) Payments for debt issuance costs — — (7) (25) — (32) Purchase of treasury stock (1,801) — — — — (1,801) Proceeds from exercise of stock options 81 — — — — 81 Purchase of noncontrolling interest — (254) — — — (254) Distributions to noncontrolling interest — (77) — (1) — (78) Contributions from parent — 91 51 792 (934) — Distributions to parent — (1,829) (2,084) (2,591) 6,504 — Other, net — — — (127) — (127) Net cash flows from financing activities (1,720) (2,069) (1,290) (2,111) 5,570 (1,620) NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH — (117) — 198 — 81 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period — 465 — 300 — 765 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period $ — $ 348 $ — $ 498 $ — $ 846 |