Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2022 shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2022 |
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 | 2022 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 84-1496755 |
Entity Address, Address Line One | 400 Washington Blvd. |
Entity Address, City or Town | Stamford |
Entity Address, State or Province | CT |
Entity Address, Postal Zip Code | 06902 |
City Area Code | 203 |
Local Phone Number | 905-7801 |
Title of 12(b) Security | Class A Common Stock $.001 Par Value |
Trading Symbol | CHTR |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Class A Common Stock | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 160,654,746 |
Class B Common Stock | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 483 | $ 601 |
Accounts receivable, less allowance for doubtful accounts of $219 and $157, respectively | 2,779 | 2,579 |
Prepaid expenses and other current assets | 476 | 386 |
Total current assets | 3,738 | 3,566 |
INVESTMENT IN CABLE PROPERTIES: | ||
Property, plant and equipment, net of accumulated depreciation of $34,676 and $34,253, respectively | 34,472 | 34,310 |
Customer relationships, net of accumulated amortization of $14,875 and $14,180, respectively | 3,373 | 4,060 |
Franchises | 67,354 | 67,346 |
Goodwill | 29,563 | 29,562 |
Total investment in cable properties, net | 134,762 | 135,278 |
OTHER NONCURRENT ASSETS | 4,758 | 3,647 |
Total assets | 143,258 | 142,491 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued liabilities | 9,862 | 9,461 |
Current portion of long-term debt | 1,533 | 2,997 |
Total current liabilities | 11,395 | 12,458 |
LONG-TERM DEBT | 94,468 | 88,564 |
DEFERRED INCOME TAXES | 19,123 | 19,096 |
OTHER LONG-TERM LIABILITIES | 4,759 | 4,217 |
Preferred stock; $0.001 par value; 250 million shares authorized; no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 26,900 | 26,725 |
Accumulated deficit | (10,001) | (12,675) |
Treasury stock at cost; 13,109,385 and no shares, respectively | (7,020) | 0 |
Total Charter shareholders’ equity | 9,879 | 14,050 |
Noncontrolling interests | 3,634 | 4,106 |
Total shareholders’ equity | 13,513 | 18,156 |
Total liabilities and shareholders’ equity | 143,258 | 142,491 |
Class A Common Stock | ||
Common stock | 0 | 0 |
Class B Common Stock | ||
Common stock | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEET (PAR
CONSOLIDATED BALANCE SHEET (PARENTHETICALS) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
CURRENT ASSETS: | ||
Allowance for doubtful accounts | $ 219 | $ 157 |
INVESTMENT IN CABLE PROPERTIES: | ||
Property, plant and equipment, accumulated depreciation | 34,676 | 34,253 |
Customer relationships, accumulated amortization | $ 14,875 | $ 14,180 |
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) | 13,109,385 | 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) | 173,764,131 | 172,741,236 |
Common stock, shares outstanding (shares) | 160,654,746 | 172,741,236 |
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
REVENUES | $ 13,598 | $ 12,802 | $ 26,798 | $ 25,324 |
COSTS AND EXPENSES: | ||||
Operating costs and expenses (exclusive of items shown separately below) | 8,193 | 7,882 | 16,327 | 15,593 |
Depreciation and amortization | 2,240 | 2,354 | 4,534 | 4,795 |
Other operating (income) expenses, net | (62) | (9) | (61) | 293 |
Total costs and expenses | 10,371 | 10,227 | 20,800 | 20,681 |
Income from operations | 3,227 | 2,575 | 5,998 | 4,643 |
OTHER INCOME (EXPENSES): | ||||
Interest expense, net | (1,109) | (1,004) | (2,169) | (1,987) |
Other income (expenses), net | 79 | (132) | 102 | (80) |
Total other income (expenses), net | (1,030) | (1,136) | (2,067) | (2,067) |
Income before income taxes | 2,197 | 1,439 | 3,931 | 2,576 |
Income tax expense | (489) | (281) | (834) | (497) |
Consolidated net income | 1,708 | 1,158 | 3,097 | 2,079 |
Less: Net income attributable to noncontrolling interests | (237) | (138) | (423) | (252) |
Net income attributable to Charter shareholders | $ 1,471 | $ 1,020 | $ 2,674 | $ 1,827 |
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CHARTER SHAREHOLDERS: | ||||
Basic (dollars per share) | $ 8.96 | $ 5.48 | $ 15.98 | $ 9.69 |
Diluted (dollars per share) | $ 8.80 | $ 5.29 | $ 15.66 | $ 9.37 |
Weighted average common shares outstanding, basic (shares) | 164,049,619 | 185,916,505 | 167,350,535 | 188,645,356 |
Weighted average common shares outstanding, diluted (shares) | 167,090,925 | 199,077,390 | 170,741,462 | 202,458,265 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock Class A Common Stock | Common Stock Class B Common Stock | Additional Paid-in Capital | Accumulated Deficit | Treasury Stock | Total Charter Shareholders’ Equity | Noncontrolling Interests |
Balance at Dec. 31, 2020 | $ 30,281 | $ 0 | $ 0 | $ 29,000 | $ (5,195) | $ 0 | $ 23,805 | $ 6,476 |
Rollforward of Consolidated Shareholders' Equity: | ||||||||
Consolidated net income | 921 | 0 | 0 | 0 | 807 | 0 | 807 | 114 |
Stock compensation expense | 134 | 0 | 0 | 134 | 0 | 0 | 134 | 0 |
Exercise of stock options | 9 | 0 | 0 | 9 | 0 | 0 | 9 | 0 |
Purchases of treasury stock | (3,652) | 0 | 0 | 0 | 0 | (3,652) | (3,652) | 0 |
Purchase of noncontrolling interest, net of tax | (429) | 0 | 0 | (237) | 0 | 0 | (237) | (192) |
Change in noncontrolling interest ownership, net of tax | (44) | 0 | 0 | 131 | 0 | 0 | 131 | (175) |
Distributions to noncontrolling interest | (39) | 0 | 0 | 0 | 0 | 0 | 0 | (39) |
Balance at Mar. 31, 2021 | 27,181 | 0 | 0 | 29,037 | (4,388) | (3,652) | 20,997 | 6,184 |
Balance at Dec. 31, 2020 | 30,281 | 0 | 0 | 29,000 | (5,195) | 0 | 23,805 | 6,476 |
Rollforward of Consolidated Shareholders' Equity: | ||||||||
Consolidated net income | 2,079 | |||||||
Purchases of treasury stock | (7,168) | |||||||
Balance at Jun. 30, 2021 | 24,086 | 0 | 0 | 29,878 | (3,368) | (7,168) | 19,342 | 4,744 |
Balance at Mar. 31, 2021 | 27,181 | 0 | 0 | 29,037 | (4,388) | (3,652) | 20,997 | 6,184 |
Rollforward of Consolidated Shareholders' Equity: | ||||||||
Consolidated net income | 1,158 | 0 | 0 | 0 | 1,020 | 0 | 1,020 | 138 |
Stock compensation expense | 100 | 0 | 0 | 100 | 0 | 0 | 100 | 0 |
Exercise of stock options | 17 | 0 | 0 | 17 | 0 | 0 | 17 | 0 |
Purchases of treasury stock | (3,516) | 0 | 0 | 0 | 0 | (3,516) | (3,516) | 0 |
Purchase of noncontrolling interest, net of tax | (492) | 0 | 0 | (279) | 0 | 0 | (279) | (213) |
Change in noncontrolling interest ownership, net of tax | (330) | 0 | 0 | 1,003 | 0 | 0 | 1,003 | (1,333) |
Distributions to noncontrolling interest | (32) | 0 | 0 | 0 | 0 | 0 | 0 | (32) |
Balance at Jun. 30, 2021 | 24,086 | 0 | 0 | 29,878 | (3,368) | (7,168) | 19,342 | 4,744 |
Balance at Dec. 31, 2021 | 18,156 | 0 | 0 | 26,725 | (12,675) | 0 | 14,050 | 4,106 |
Rollforward of Consolidated Shareholders' Equity: | ||||||||
Consolidated net income | 1,389 | 0 | 0 | 0 | 1,203 | 0 | 1,203 | 186 |
Stock compensation expense | 147 | 0 | 0 | 147 | 0 | 0 | 147 | 0 |
Exercise of stock options | 1 | 0 | 0 | 1 | 0 | 0 | 1 | 0 |
Purchases of treasury stock | (3,333) | 0 | 0 | 0 | 0 | (3,333) | (3,333) | 0 |
Purchase of noncontrolling interest, net of tax | (353) | 0 | 0 | (197) | 0 | 0 | (197) | (156) |
Change in noncontrolling interest ownership, net of tax | (61) | 0 | 0 | 189 | 0 | 0 | 189 | (250) |
Distributions to noncontrolling interest | (2) | 0 | 0 | 0 | 0 | 0 | 0 | (2) |
Balance at Mar. 31, 2022 | 15,944 | 0 | 0 | 26,865 | (11,472) | (3,333) | 12,060 | 3,884 |
Balance at Dec. 31, 2021 | 18,156 | 0 | 0 | 26,725 | (12,675) | 0 | 14,050 | 4,106 |
Rollforward of Consolidated Shareholders' Equity: | ||||||||
Consolidated net income | 3,097 | |||||||
Purchases of treasury stock | (7,020) | |||||||
Balance at Jun. 30, 2022 | 13,513 | 0 | 0 | 26,900 | (10,001) | (7,020) | 9,879 | 3,634 |
Balance at Mar. 31, 2022 | 15,944 | 0 | 0 | 26,865 | (11,472) | (3,333) | 12,060 | 3,884 |
Rollforward of Consolidated Shareholders' Equity: | ||||||||
Consolidated net income | 1,708 | 0 | 0 | 0 | 1,471 | 0 | 1,471 | 237 |
Stock compensation expense | 104 | 0 | 0 | 104 | 0 | 0 | 104 | 0 |
Exercise of stock options | 4 | 0 | 0 | 4 | 0 | 0 | 4 | 0 |
Purchases of treasury stock | (3,687) | 0 | 0 | 0 | 0 | (3,687) | (3,687) | 0 |
Purchase of noncontrolling interest, net of tax | (494) | 0 | 0 | (256) | 0 | 0 | (256) | (238) |
Change in noncontrolling interest ownership, net of tax | (61) | 0 | 0 | 183 | 0 | 0 | 183 | (244) |
Distributions to noncontrolling interest | (5) | 0 | 0 | 0 | 0 | 0 | 0 | (5) |
Balance at Jun. 30, 2022 | $ 13,513 | $ 0 | $ 0 | $ 26,900 | $ (10,001) | $ (7,020) | $ 9,879 | $ 3,634 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Consolidated net income | $ 3,097 | $ 2,079 |
Adjustments to reconcile consolidated net income to net cash flows from operating activities: | ||
Depreciation and amortization | 4,534 | 4,795 |
Stock compensation expense | 251 | 234 |
Noncash interest income, net | (7) | (15) |
Deferred income taxes | 115 | 371 |
Other, net | (153) | 124 |
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: | ||
Accounts receivable | (200) | (44) |
Prepaid expenses and other assets | (133) | (113) |
Accounts payable, accrued liabilities and other | (123) | 319 |
Net cash flows from operating activities | 7,381 | 7,750 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (4,050) | (3,702) |
Change in accrued expenses related to capital expenditures | 128 | (125) |
Other, net | (160) | (145) |
Net cash flows from investing activities | (4,082) | (3,972) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 16,631 | 10,958 |
Repayments of long-term debt | (11,947) | (5,759) |
Payments for debt issuance costs | (57) | (58) |
Purchase of treasury stock | (7,020) | (7,168) |
Proceeds from exercise of stock options | 5 | 26 |
Purchase of noncontrolling interest | (994) | (1,090) |
Distributions to noncontrolling interest | (7) | (71) |
Other, net | (28) | 94 |
Net cash flows from financing activities | (3,417) | (3,068) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (118) | 710 |
CASH AND CASH EQUIVALENTS, beginning of period | 601 | 1,001 |
CASH AND CASH EQUIVALENTS, end of period | 483 | 1,711 |
CASH PAID FOR INTEREST | 2,150 | 1,996 |
CASH PAID FOR TAXES | $ 470 | $ 69 |
Organization and Basis of Prese
Organization and Basis of Presentation (Notes) | 6 Months Ended |
Jun. 30, 2022 | |
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 high-capacity, two-way telecommunications 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 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. 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 the Company'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, pension benefits and income taxes. Actual results could differ from those estimates. Comprehensive income equaled net income attributable to Charter shareholders for the three and six months ended June 30, 2022 and 2021. |
Investments (Notes)
Investments (Notes) | 6 Months Ended |
Jun. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments In June 2022, the Company and Comcast Corporation ("Comcast") entered into a 50/50 joint venture to develop and offer a next-generation streaming platform on a variety of streaming devices and smart TVs. Comcast licensed its streaming platform and hardware to the joint venture and contributed the retail business for XClass TVs and Xumo, a streaming service it acquired in 2020. The Company's initial investment will be approximately $979 million with $175 million paid in June 2022 and with the remaining non-cancelable required contributions to be paid over multiple years and recorded as accrued obligations as of June 30, 2022. The Company accounted for the investment as an equity method investment and will record investment income (loss) on its share of the joint venture income (loss). |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities (Notes) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 Accounts payable – trade $ 718 $ 724 Deferred revenue 533 461 Accrued liabilities: Programming costs 2,061 2,036 Labor 1,128 1,304 Capital expenditures 1,400 1,281 Interest 1,124 1,099 Taxes and regulatory fees 813 592 Property and casualty 502 490 Operating lease liabilities 281 269 Other 1,302 1,205 $ 9,862 $ 9,461 |
Long-Term Debt (Notes)
Long-Term Debt (Notes) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt A summary of our debt as of June 30, 2022 and December 31, 2021 is as follows: June 30, 2022 December 31, 2021 Principal Amount Carrying Value Fair Value Principal Amount Carrying Value Fair Value Senior unsecured notes $ 25,150 $ 25,075 $ 21,535 $ 23,950 $ 23,882 $ 24,630 Senior secured notes and debentures (a) 56,852 57,258 49,843 56,525 57,011 64,346 Credit facilities (b) 13,729 13,668 13,026 10,723 10,668 10,665 $ 95,731 $ 96,001 $ 84,404 $ 91,198 $ 91,561 $ 99,641 (a) Includes the Company's £625 million and £650 million fixed-rate British pound sterling denominated notes (the “Sterling Notes”) remeasured using the exchange rate at the respective dates. (b) The Company has availability under the Charter Operating credit facilities of approximately $4.4 billion as of June 30, 2022. The estimated fair value of the Company’s senior unsecured and secured notes and debentures as of June 30, 2022 and December 31, 2021 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. In January 2022, CCO Holdings, LLC ("CCO Holdings") and CCO Holdings Capital Corp. jointly issued $1.2 billion of 4.750% senior unsecured notes due February 2032 at par. The net proceeds were used for general corporate purposes, including to fund buybacks of Charter Class A common stock and Charter Holdings common units, to repay certain indebtedness and to pay related fees and expenses. In March 2022, Charter Operating and Charter Communications Operating Capital Corp. jointly issued $1.0 billion aggregate principal amount of 4.400% senior secured notes due April 2033 at a price of 99.634% of the aggregate principal amount, $1.5 billion aggregate principal amount of 5.250% senior secured notes due April 2053 at a price of 99.300% of the aggregate principal amount and $1.0 billion aggregate principal amount of 5.500% senior secured notes due April 2063 at a price of 99.255% of the aggregate principal amount. The net proceeds were used for general corporate purposes, including to fund buybacks of Charter Class A common stock and Charter Holdings common units, to repay certain indebtedness and to pay related fees and expenses. In May and June 2022, Charter Operating and Charter Communications Operating Capital Corp. redeemed all of their outstanding 4.464% senior notes due July 2022. In May 2022, Charter Operating entered into an amendment to its credit agreement (the "Amendment") to: (i) upsize term A loans by $2.3 billion to $6.05 billion and extend the maturity to August 31, 2027 from March 31, 2023 and February 1, 2025, (ii) create and borrow a new tranche of $500 million of term A-6 loans maturing August 31, 2028, (iii) increase the size of Charter Operating's revolving credit facility and extend the maturity date to August 31, 2027 from March 31, 2023 and February 1, 2025 and (iv) make certain other amendments to the credit agreement. The Company used a portion of the proceeds from the Amendment to repay all of the term A-2 loans, term A-4 loans and borrowings under the revolving credit facility outstanding prior to the effective date of the Amendment. After giving effect to the Amendment: (i) the aggregate principal amount of term A-5 loans outstanding is $6.05 billion with a pricing of Secured Overnight Financing Rate ("SOFR") plus 1.25%, (ii) the aggregate principal amount of term A-6 loans outstanding is $500 million with a pricing of SOFR plus 1.50% and (iii) the aggregate amount of the revolving credit facility increased to a total capacity of $5.5 billion and the interest rate benchmark changed from London Interbank Offering Rate ("LIBOR") to SOFR, with a pricing of SOFR plus 1.25%. The aggregate principal amount of term B-1 loans (maturing April 30, 2025) and term B-2 loans (maturing February 1, 2027) outstanding are $2.4 billion and $3.7 billion, respectively, with LIBOR-based pricing unchanged. The Amendment also removed mandatory prepayment requirements upon asset sales and property or casualty insurance recoveries, made changes to the affirmative covenants, including changes to the financial reporting covenants, and made changes to the negative covenants, including removal of certain negative covenants in their entirety. Losses on extinguishment of debt are recorded in other income (expenses), net in the consolidated statements of operations and consisted of the following. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 CCO Holdings notes redemption $ — $ (46) $ — $ (75) Charter Operating credit facility refinancing (2) — (2) — Charter Operating notes redemption (1) — (1) — $ (3) $ (46) $ (3) $ (75) |
Common Stock (Notes)
Common Stock (Notes) | 6 Months Ended |
Jun. 30, 2022 | |
Common Stock [Abstract] | |
Common Stock | Common Stock The following represents the Company's purchase of Charter Class A common stock and the effect on the consolidated statements of cash flows during the three and six months ended June 30, 2022 and 2021. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Shares $ Shares $ Shares $ Shares $ Share buybacks 7,264,833 $ 3,675 5,147,257 $ 3,392 12,590,427 $ 6,847 10,703,575 $ 6,866 Income tax withholding 24,630 12 183,357 124 289,475 173 467,920 302 Exercise cost 80,826 185,698 229,483 495,513 7,370,289 $ 3,687 5,516,312 $ 3,516 13,109,385 $ 7,020 11,667,008 $ 7,168 Share buybacks above include shares of Charter Class A common stock purchased from Liberty Broadband Corporation (“Liberty Broadband”) as follows. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Number of shares purchased 2,257,443 1,927,032 3,227,684 2,761,608 Amount of shares purchased $ 1,204 $ 1,244 $ 1,806 $ 1,762 In July 2022, the Company purchased from Liberty Broadband an additional 0.8 million shares of Charter Class A common stock for approximately $363 million. As of June 30, 2022, Charter had remaining board authority to purchase an additional $673 million of Charter’s Class A common stock and/or Charter Holdings common units, excluding purchases from Liberty Broadband. 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. |
Noncontrolling Interests (Notes
Noncontrolling Interests (Notes) | 6 Months Ended |
Jun. 30, 2022 | |
Noncontrolling Interests [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests Noncontrolling interests represents consolidated subsidiaries of which the Company owns less than 100%. The Company is a holding company whose principal asset is a controlling equity interest in Charter Holdings, the indirect owner of the Company’s cable systems. Noncontrolling interests on the Company’s balance sheet consist primarily of Advance/Newhouse Partnership's (“A/N”) equity interests in Charter Holdings, which is comprised of a common ownership interest and prior to June 18, 2021, 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 weighted average effective common ownership interest of approximately 11% during 2022 and 7% prior to conversion of the preferred units and 11% after conversion during 2021, and was $236 million and $422 million for the three and six months ended June 30, 2022, respectively, and $105 million and $181 million for the three and six months ended June 30, 2021, 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 $32 million and $70 million for the three and six months ended June 30, 2021, respectively. In June 2021, the Company caused the conversion of all of A/N's Charter Holdings convertible preferred units into Charter Holdings common units. The following table represents Charter Holdings' purchase of Charter Holdings common units from A/N and the effect on total shareholders' equity during the three and six months ended June 30, 2022 and 2021. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Number of units purchased 1,063,333 912,034 1,720,601 1,704,688 Amount of units purchased $ 578 $ 583 $ 994 $ 1,090 Decrease in noncontrolling interest based on carrying value $ (238) $ (213) $ (394) $ (405) Decrease in additional paid-in-capital, net of tax $ (256) $ (279) $ (453) $ (516) Total shareholders' equity was also adjusted during the three and six months ended June 30, 2022 and 2021 due to the changes in Charter Holdings' ownership including the impact of the preferred unit conversion in June 2021 as follows. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Decrease in noncontrolling interest $ (244) $ (1,333) $ (494) $ (1,508) Increase in additional paid-in-capital, net of tax $ 183 $ 1,003 $ 372 $ 1,134 |
Accounting for Derivative Instr
Accounting for Derivative Instruments and Hedging Activities (Notes) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting for Derivative Instruments and Hedging Activities [Abstract] | |
Accounting for Derivative Instruments and Hedging Activities | Accounting for Derivative Instruments and Hedging Activities Cross-currency derivative instruments are used to manage foreign exchange risk on the Sterling Notes by effectively converting £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 fair value of the Company's cross-currency derivatives, which are classified within Level 2 of the valuation hierarchy, was $450 million and $290 million and is included in other long-term liabilities on its consolidated balance sheets as of June 30, 2022 and December 31, 2021, respectively. The effect of financial instruments are recorded in other income (expenses), net in the consolidated statements of operations and consisted of the following. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Change in fair value of cross-currency derivative instruments $ (124) $ (85) $ (160) $ (22) Foreign currency remeasurement of Sterling Notes to U.S. dollars 125 (6) 175 (21) Gain (loss) on financial instruments, net $ 1 $ (91) $ 15 $ (43) |
Revenue (Notes)
Revenue (Notes) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue [Abstract] | |
Revenue | Revenues The Company’s revenues by product line are as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Internet $ 5,562 $ 5,221 $ 11,014 $ 10,307 Video 4,484 4,378 8,830 8,722 Voice 398 394 789 793 Residential revenue 10,444 9,993 20,633 19,822 Small and medium business 1,080 1,042 2,139 2,054 Enterprise 669 636 1,330 1,274 Commercial revenue 1,749 1,678 3,469 3,328 Advertising sales 460 411 843 755 Mobile 726 519 1,416 1,011 Other 219 201 437 408 $ 13,598 $ 12,802 $ 26,798 $ 25,324 As of June 30, 2022 and December 31, 2021, accounts receivable, net on the consolidated balance sheets includes approximately $477 million and $391 million of current equipment installment plan receivables, respectively, and other |
Operating Costs and Expenses (N
Operating Costs and Expenses (Notes) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Programming $ 2,972 $ 2,978 $ 5,949 $ 5,966 Regulatory, connectivity and produced content 599 668 1,155 1,268 Costs to service customers 1,920 1,827 3,819 3,631 Marketing 806 741 1,632 1,492 Mobile 797 586 1,557 1,158 Other 1,099 1,082 2,215 2,078 $ 8,193 $ 7,882 $ 16,327 $ 15,593 Programming costs consist primarily of costs paid to programmers for basic, premium, digital, video on demand and pay-per-view programming. Regulatory, connectivity and produced content costs represent payments to franchise and regulatory authorities, costs directly related to providing video, Internet and voice services as well as payments for sports, local and news content produced by the Company. Included in regulatory, connectivity and produced content costs is content acquisition costs for the Los Angeles Lakers’ basketball games and Los Angeles Dodgers’ baseball games, which are recorded as games are exhibited over the contract period. Costs to service customers include costs related to field operations, network operations and customer care for the Company’s residential and SMB 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 residential and commercial customers including labor costs. Mobile costs represent costs associated with the Company's mobile service such as device and service costs, marketing, sales and commissions, retail stores, personnel costs, taxes, among others. Other includes corporate overhead, advertising sales expenses, indirect costs associated with the Company’s enterprise business customers and regional sports and news networks, property tax and insurance expense and stock compensation expense, among others. |
Other Operating (Income) Expens
Other Operating (Income) Expenses, Net (Notes) | 6 Months Ended |
Jun. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Other Operating (Income) Expenses, Net | Other Operating (Income) Expenses, Net Other operating (income) expenses, net consist of the following for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Special charges, net $ (63) $ (6) $ (64) $ 249 (Gain) loss on disposal of assets, net 1 (3) 3 44 $ (62) $ (9) $ (61) $ 293 Special charges, net |
Other Income, Net (Notes)
Other Income, Net (Notes) | 6 Months Ended |
Jun. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Other Income (Expenses), Net | Other Income (Expenses), Net Other income (expenses), net consist of the following for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Loss on extinguishment of debt (see Note 4) $ (3) $ (46) $ (3) $ (75) Gain (loss) on financial instruments, net (see Note 7) 1 (91) 15 (43) Net periodic pension benefits 17 173 34 191 Gain (loss) on equity investments, net 64 (168) 56 (153) $ 79 $ (132) $ 102 $ (80) Net periodic pension benefits During the three and six months ended June 30, 2021, settlements for lump-sum distributions to pension plan participants exceeded the estimated annual interest cost of the plans. As a result, the pension liability and pension asset values were reassessed as of June 30, 2021 utilizing remeasurement date assumptions in accordance with the Company's mark-to-market pension accounting policy to record gains and losses in the period in which a remeasurement event occurs. Net periodic pension benefits includes a $155 million remeasurement gain recorded during the three and six months ended June 30, 2021, which was primarily driven by changes in the discount rate. Gain (loss) on equity investments, net Gain (loss) on equity investments, net includes impairments on equity investments of approximately $165 million for the three and six months ended June 30, 2021. |
Stock Compensation Plans (Notes
Stock Compensation Plans (Notes) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Stock options 32,000 16,800 1,404,400 1,241,800 Restricted stock 6,800 4,600 6,800 4,600 Restricted stock units 19,500 9,100 443,100 354,200 Stock options and restricted stock units generally cliff vest three years from the date of grant. 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 June 30, 2022, total unrecognized compensation remaining to be recognized in future periods totaled $323 million for stock options, $0.3 million for restricted stock and $323 million for restricted stock units and the weighted average period over which they are expected to be recognized is two years for stock options, ten months for restricted stock and two years for restricted stock units. |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 6 Months Ended |
Jun. 30, 2022 | |
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 units of 20 million for the three and six months ended June 30, 2022 and 15 million for the three and six months ended June 30, 2021 were not included in the computation of diluted earnings per share as their effect would have been antidilutive. The following is the computation of diluted earnings per common share for the three and six months ended June 30, 2022 and 2021. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net income attributable to Charter shareholders $ 1,471 $ 1,020 $ 2,674 $ 1,827 Effect of dilutive securities: Charter Holdings convertible preferred units — 32 — 70 Net income attributable to Charter shareholders after assumed conversions $ 1,471 $ 1,052 $ 2,674 $ 1,897 Denominator: Weighted average common shares outstanding, basic 164,049,619 185,916,505 167,350,535 188,645,356 Effect of dilutive securities: Assumed exercise or issuance of shares relating to stock plans 3,041,306 5,058,176 3,390,927 5,098,205 Weighted average Charter Holdings convertible preferred units — 8,102,709 — 8,714,704 Weighted average common shares outstanding, diluted 167,090,925 199,077,390 170,741,462 202,458,265 Basic earnings per common share attributable to Charter shareholders $ 8.96 $ 5.48 $ 15.98 $ 9.69 Diluted earnings per common share attributable to Charter shareholders $ 8.80 $ 5.29 $ 15.66 $ 9.37 |
Contingencies (Notes)
Contingencies (Notes) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies In March 2020, Charter Communications, LLC (“CC, LLC”), an indirect subsidiary of the Company, was named as a defendant in a lawsuit filed in Dallas, Texas related to the fatal stabbing of an individual in her home by an off duty CC, LLC technician: William Goff, as Personal Representative of Betty Jo McClain Thomas, deceased, et al. v. Roy James Holden, Jr. and Charter Communications, LLC, Case No. CC-20-01579-E, pending in County Court at Law No. 5 for Dallas County, Texas. The complaint alleged that CC, LLC was responsible for the plaintiff’s death. Following a two phase trial, the jury returned a verdict finding CC, LLC at fault for plaintiff’s death, and awarded compensatory damages of $375 million to plaintiff’s estate and then awarded $7.0 billion in punitive damages to plaintiff’s estate on July 26, 2022. The Company will continue to vigorously defend this lawsuit including pursuing all available appeals. The Company has considered various factors, including the legal and factual circumstances of the case, the trial record, the jury verdicts, the status of the proceedings, applicable law, the views of legal counsel, the court’s rulings in advance of and during the trial, along with upcoming post-trial motions of the parties in determining the various grounds for appeal that the Company expects to vigorously pursue and the likelihood of a successful appeal. Based on these factors, the Company has concluded that a loss from this case is not probable and reasonably estimable. Therefore, the Company has not accrued a liability for the adverse verdict in its financial statements as of June 30, 2022. The Company is a defendant or co-defendant in several 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. |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consist of the following as of June 30, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 Accounts payable – trade $ 718 $ 724 Deferred revenue 533 461 Accrued liabilities: Programming costs 2,061 2,036 Labor 1,128 1,304 Capital expenditures 1,400 1,281 Interest 1,124 1,099 Taxes and regulatory fees 813 592 Property and casualty 502 490 Operating lease liabilities 281 269 Other 1,302 1,205 $ 9,862 $ 9,461 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt Summary | A summary of our debt as of June 30, 2022 and December 31, 2021 is as follows: June 30, 2022 December 31, 2021 Principal Amount Carrying Value Fair Value Principal Amount Carrying Value Fair Value Senior unsecured notes $ 25,150 $ 25,075 $ 21,535 $ 23,950 $ 23,882 $ 24,630 Senior secured notes and debentures (a) 56,852 57,258 49,843 56,525 57,011 64,346 Credit facilities (b) 13,729 13,668 13,026 10,723 10,668 10,665 $ 95,731 $ 96,001 $ 84,404 $ 91,198 $ 91,561 $ 99,641 (a) Includes the Company's £625 million and £650 million fixed-rate British pound sterling denominated notes (the “Sterling Notes”) remeasured using the exchange rate at the respective dates. |
Schedule of Extinguishment of Debt | Losses on extinguishment of debt are recorded in other income (expenses), net in the consolidated statements of operations and consisted of the following. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 CCO Holdings notes redemption $ — $ (46) $ — $ (75) Charter Operating credit facility refinancing (2) — (2) — Charter Operating notes redemption (1) — (1) — $ (3) $ (46) $ (3) $ (75) |
Common Stock (Tables)
Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Common Stock [Abstract] | |
Class of Treasury Stock | The following represents the Company's purchase of Charter Class A common stock and the effect on the consolidated statements of cash flows during the three and six months ended June 30, 2022 and 2021. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Shares $ Shares $ Shares $ Shares $ Share buybacks 7,264,833 $ 3,675 5,147,257 $ 3,392 12,590,427 $ 6,847 10,703,575 $ 6,866 Income tax withholding 24,630 12 183,357 124 289,475 173 467,920 302 Exercise cost 80,826 185,698 229,483 495,513 7,370,289 $ 3,687 5,516,312 $ 3,516 13,109,385 $ 7,020 11,667,008 $ 7,168 Share buybacks above include shares of Charter Class A common stock purchased from Liberty Broadband Corporation (“Liberty Broadband”) as follows. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Number of shares purchased 2,257,443 1,927,032 3,227,684 2,761,608 Amount of shares purchased $ 1,204 $ 1,244 $ 1,806 $ 1,762 |
Noncontrolling Interest (Tables
Noncontrolling Interest (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Noncontrolling Interest [Abstract] | |
Schedule of Noncontrolling Interest Purchased | The following table represents Charter Holdings' purchase of Charter Holdings common units from A/N and the effect on total shareholders' equity during the three and six months ended June 30, 2022 and 2021. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Number of units purchased 1,063,333 912,034 1,720,601 1,704,688 Amount of units purchased $ 578 $ 583 $ 994 $ 1,090 Decrease in noncontrolling interest based on carrying value $ (238) $ (213) $ (394) $ (405) Decrease in additional paid-in-capital, net of tax $ (256) $ (279) $ (453) $ (516) |
Schedule of effects on statement of shareholders' equity due to ownership changes | Total shareholders' equity was also adjusted during the three and six months ended June 30, 2022 and 2021 due to the changes in Charter Holdings' ownership including the impact of the preferred unit conversion in June 2021 as follows. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Decrease in noncontrolling interest $ (244) $ (1,333) $ (494) $ (1,508) Increase in additional paid-in-capital, net of tax $ 183 $ 1,003 $ 372 $ 1,134 |
Accounting for Derivative Ins_2
Accounting for Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting for Derivative Instruments and Hedging Activities [Abstract] | |
Income Statement Effects of Financial Instruments | The effect of financial instruments are recorded in other income (expenses), net in the consolidated statements of operations and consisted of the following. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Change in fair value of cross-currency derivative instruments $ (124) $ (85) $ (160) $ (22) Foreign currency remeasurement of Sterling Notes to U.S. dollars 125 (6) 175 (21) Gain (loss) on financial instruments, net $ 1 $ (91) $ 15 $ (43) |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue [Abstract] | |
Revenue | The Company’s revenues by product line are as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Internet $ 5,562 $ 5,221 $ 11,014 $ 10,307 Video 4,484 4,378 8,830 8,722 Voice 398 394 789 793 Residential revenue 10,444 9,993 20,633 19,822 Small and medium business 1,080 1,042 2,139 2,054 Enterprise 669 636 1,330 1,274 Commercial revenue 1,749 1,678 3,469 3,328 Advertising sales 460 411 843 755 Mobile 726 519 1,416 1,011 Other 219 201 437 408 $ 13,598 $ 12,802 $ 26,798 $ 25,324 |
Operating Costs and Expenses (T
Operating Costs and Expenses (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Programming $ 2,972 $ 2,978 $ 5,949 $ 5,966 Regulatory, connectivity and produced content 599 668 1,155 1,268 Costs to service customers 1,920 1,827 3,819 3,631 Marketing 806 741 1,632 1,492 Mobile 797 586 1,557 1,158 Other 1,099 1,082 2,215 2,078 $ 8,193 $ 7,882 $ 16,327 $ 15,593 |
Other Operating (Income) Expe_2
Other Operating (Income) Expenses, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Other Operating (Income) Expenses, Net | Other operating (income) expenses, net consist of the following for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Special charges, net $ (63) $ (6) $ (64) $ 249 (Gain) loss on disposal of assets, net 1 (3) 3 44 $ (62) $ (9) $ (61) $ 293 |
Other Income (Expenses), Net (T
Other Income (Expenses), Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Other Income (Expenses), Net | Other income (expenses), net consist of the following for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Loss on extinguishment of debt (see Note 4) $ (3) $ (46) $ (3) $ (75) Gain (loss) on financial instruments, net (see Note 7) 1 (91) 15 (43) Net periodic pension benefits 17 173 34 191 Gain (loss) on equity investments, net 64 (168) 56 (153) $ 79 $ (132) $ 102 $ (80) |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Stock Compensation Plans [Abstract] | |
Equity Award Grants | Charter granted the following equity awards for the periods presented. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Stock options 32,000 16,800 1,404,400 1,241,800 Restricted stock 6,800 4,600 6,800 4,600 Restricted stock units 19,500 9,100 443,100 354,200 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The following is the computation of diluted earnings per common share for the three and six months ended June 30, 2022 and 2021. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net income attributable to Charter shareholders $ 1,471 $ 1,020 $ 2,674 $ 1,827 Effect of dilutive securities: Charter Holdings convertible preferred units — 32 — 70 Net income attributable to Charter shareholders after assumed conversions $ 1,471 $ 1,052 $ 2,674 $ 1,897 Denominator: Weighted average common shares outstanding, basic 164,049,619 185,916,505 167,350,535 188,645,356 Effect of dilutive securities: Assumed exercise or issuance of shares relating to stock plans 3,041,306 5,058,176 3,390,927 5,098,205 Weighted average Charter Holdings convertible preferred units — 8,102,709 — 8,714,704 Weighted average common shares outstanding, diluted 167,090,925 199,077,390 170,741,462 202,458,265 Basic earnings per common share attributable to Charter shareholders $ 8.96 $ 5.48 $ 15.98 $ 9.69 Diluted earnings per common share attributable to Charter shareholders $ 8.80 $ 5.29 $ 15.66 $ 9.37 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Organization and Basis of Presentation [Abstract] | |
Number of reportable segments | 1 |
Investments (Details)
Investments (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2022 USD ($) | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | $ 979 |
Investment contribution | $ 175 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Accounts payable – trade | $ 718 | $ 724 |
Deferred revenue | 533 | 461 |
Accrued liabilities: | ||
Programming costs | 2,061 | 2,036 |
Labor | 1,128 | 1,304 |
Capital expenditures | 1,400 | 1,281 |
Interest | 1,124 | 1,099 |
Taxes and regulatory fees | 813 | 592 |
Property and casualty | 502 | 490 |
Operating lease liabilities | 281 | 269 |
Other | 1,302 | 1,205 |
Total accounts payable and accrued liabilities | $ 9,862 | $ 9,461 |
Long-Term Debt (Details)
Long-Term Debt (Details) £ in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 GBP (£) | Dec. 31, 2021 USD ($) | |
Long-term Debt: | ||||||
Principal Amount | $ 95,731 | $ 95,731 | $ 91,198 | |||
Carrying Value | 96,001 | 96,001 | 91,561 | |||
Fair Value | 84,404 | 84,404 | 99,641 | |||
Borrowings of long-term debt | 16,631 | $ 10,958 | ||||
Loss on Extinguishment of Debt | (3) | $ (46) | (3) | (75) | ||
Senior unsecured notes | ||||||
Long-term Debt: | ||||||
Principal Amount | 25,150 | 25,150 | 23,950 | |||
Carrying Value | 25,075 | 25,075 | 23,882 | |||
Senior unsecured notes | Level 1 | ||||||
Long-term Debt: | ||||||
Fair Value | 21,535 | 21,535 | 24,630 | |||
Senior secured notes and debentures(a) | ||||||
Long-term Debt: | ||||||
Principal Amount | 56,852 | 56,852 | 56,525 | |||
Carrying Value | 57,258 | 57,258 | 57,011 | |||
Senior secured notes and debentures(a) | Level 1 | ||||||
Long-term Debt: | ||||||
Fair Value | 49,843 | 49,843 | 64,346 | |||
Credit facilities(b) | ||||||
Long-term Debt: | ||||||
Principal Amount | 13,729 | 13,729 | 10,723 | |||
Carrying Value | 13,668 | 13,668 | 10,668 | |||
Credit facilities(b) | Level 2 | ||||||
Long-term Debt: | ||||||
Fair Value | 13,026 | 13,026 | $ 10,665 | |||
Term Loan A-5 | ||||||
Long-term Debt: | ||||||
Borrowings of long-term debt | 2,300 | |||||
CCO Holdings | ||||||
Long-term Debt: | ||||||
Loss on Extinguishment of Debt | 0 | (46) | 0 | (75) | ||
CCO Holdings | 4.750% Senior Notes due February 1, 2032 | ||||||
Long-term Debt: | ||||||
Principal Amount | $ 1,200 | $ 1,200 | ||||
Stated interest rate (percentage) | 4.75% | 4.75% | 4.75% | |||
Charter Operating | ||||||
Long-term Debt: | ||||||
Availability under credit facilities | $ 4,400 | $ 4,400 | ||||
Charter Operating | Senior secured notes and debentures(a) | ||||||
Long-term Debt: | ||||||
Loss on Extinguishment of Debt | (1) | 0 | (1) | 0 | ||
Charter Operating | Credit facilities(b) | ||||||
Long-term Debt: | ||||||
Loss on Extinguishment of Debt | (2) | $ 0 | (2) | $ 0 | ||
Charter Operating | 4.400% senior secured notes due April 2033 | ||||||
Long-term Debt: | ||||||
Principal Amount | $ 1,000 | $ 1,000 | ||||
Stated interest rate (percentage) | 4.40% | 4.40% | 4.40% | |||
Debt instrument issue price (percentage) | 99.634% | |||||
Charter Operating | 5.250% senior secured notes due April 2053 | ||||||
Long-term Debt: | ||||||
Principal Amount | $ 1,500 | $ 1,500 | ||||
Stated interest rate (percentage) | 5.25% | 5.25% | 5.25% | |||
Debt instrument issue price (percentage) | 99.30% | |||||
Charter Operating | 5.500% senior secured notes due April 2063 | ||||||
Long-term Debt: | ||||||
Principal Amount | $ 1,000 | $ 1,000 | ||||
Stated interest rate (percentage) | 5.50% | 5.50% | 5.50% | |||
Debt instrument issue price (percentage) | 99.255% | |||||
Charter Operating | 4.464% Senior Notes Due July 23, 2022 | ||||||
Long-term Debt: | ||||||
Stated interest rate (percentage) | 4.464% | 4.464% | 4.464% | |||
Charter Operating | Term Loan A-5 | ||||||
Long-term Debt: | ||||||
Principal Amount | $ 6,050 | $ 6,050 | ||||
SOFR spread | 1.25% | |||||
Charter Operating | Term Loan A-6 | ||||||
Long-term Debt: | ||||||
Principal Amount | 500 | $ 500 | ||||
SOFR spread | 1.50% | |||||
Charter Operating | Revolving Credit Facility | ||||||
Long-term Debt: | ||||||
Revolving loan borrowing capacity | 5,500 | $ 5,500 | ||||
SOFR spread | 1.25% | |||||
Charter Operating | Term Loan B-1 | ||||||
Long-term Debt: | ||||||
Principal Amount | 2,400 | $ 2,400 | ||||
Charter Operating | Term Loan B-2 | ||||||
Long-term Debt: | ||||||
Principal Amount | $ 3,700 | $ 3,700 | ||||
Time Warner Cable | 5.750% Sterling Senior Notes Due June 2, 2031 | ||||||
Long-term Debt: | ||||||
Principal Amount | £ | £ 625 | |||||
Time Warner Cable | 5.250% Sterling Senior Notes Due July 15, 2042 | ||||||
Long-term Debt: | ||||||
Principal Amount | £ | £ 650 |
Common Stock (Details)
Common Stock (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jul. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Class of Stock [Line Items] | |||||||
Treasury stock acquired (shares) | 7,370,289 | 5,516,312 | 13,109,385 | 11,667,008 | |||
Value of treasury stock shares repurchased/withheld | $ 3,687 | $ 3,333 | $ 3,516 | $ 3,652 | $ 7,020 | $ 7,168 | |
Remaining authorized repurchase amount | $ 673 | $ 673 | |||||
Share buybacks | |||||||
Class of Stock [Line Items] | |||||||
Treasury stock acquired (shares) | 7,264,833 | 5,147,257 | 12,590,427 | 10,703,575 | |||
Value of treasury stock shares repurchased/withheld | $ 3,675 | $ 3,392 | $ 6,847 | $ 6,866 | |||
Share buybacks | Liberty Broadband | |||||||
Class of Stock [Line Items] | |||||||
Treasury stock acquired (shares) | 2,257,443 | 1,927,032 | 3,227,684 | 2,761,608 | |||
Value of treasury stock shares repurchased/withheld | $ 1,204 | $ 1,244 | $ 1,806 | $ 1,762 | |||
Share buybacks | Liberty Broadband | Subsequent Event | |||||||
Class of Stock [Line Items] | |||||||
Treasury stock acquired (shares) | 800,000 | ||||||
Value of treasury stock shares repurchased/withheld | $ 363 | ||||||
Income tax withholding | |||||||
Class of Stock [Line Items] | |||||||
Treasury stock acquired (shares) | 24,630 | 183,357 | 289,475 | 467,920 | |||
Value of treasury stock shares repurchased/withheld | $ 12 | $ 124 | $ 173 | $ 302 | |||
Exercise cost | |||||||
Class of Stock [Line Items] | |||||||
Treasury stock acquired (shares) | 80,826 | 185,698 | 229,483 | 495,513 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Noncontrolling Interests: | ||||||
Net income attributable to noncontrolling interest | $ 237 | $ 138 | $ 423 | $ 252 | ||
Purchase of noncontrolling interest, net of tax | (494) | $ (353) | (492) | $ (429) | ||
Change in noncontrolling interest ownership, net of tax | (61) | (61) | (330) | (44) | ||
Common Noncontrolling Interest | ||||||
Noncontrolling Interests: | ||||||
Net income attributable to noncontrolling interest | $ 236 | $ 105 | $ 422 | $ 181 | ||
Purchase of noncontrolling interest (shares) | 1,063,333 | 912,034 | 1,720,601 | 1,704,688 | ||
Purchase price of noncontrolling interest | $ 578 | $ 583 | $ 994 | $ 1,090 | ||
Common Noncontrolling Interest | A/N | ||||||
Noncontrolling Interests: | ||||||
Ownership percentage held by noncontrolling interest (percentage) | 11% | 7% | 11% | 7% | ||
Preferred Noncontrolling Interest | ||||||
Noncontrolling Interests: | ||||||
Net income attributable to noncontrolling interest | $ 32 | $ 70 | ||||
Noncontrolling Interests | ||||||
Noncontrolling Interests: | ||||||
Purchase of noncontrolling interest, net of tax | $ (238) | (156) | (213) | (192) | ||
Change in noncontrolling interest ownership, net of tax | (244) | (250) | (1,333) | (175) | ||
Noncontrolling Interests | Common Noncontrolling Interest | ||||||
Noncontrolling Interests: | ||||||
Purchase of noncontrolling interest, net of tax | (238) | (213) | $ (394) | (405) | ||
Change in noncontrolling interest ownership, net of tax | (244) | (1,333) | (494) | (1,508) | ||
Additional Paid-in Capital | ||||||
Noncontrolling Interests: | ||||||
Purchase of noncontrolling interest, net of tax | (256) | (197) | (279) | (237) | ||
Change in noncontrolling interest ownership, net of tax | 183 | $ 189 | 1,003 | $ 131 | ||
Additional Paid-in Capital | Common Noncontrolling Interest | ||||||
Noncontrolling Interests: | ||||||
Impact of noncontrolling interest purchased | (256) | (279) | (453) | (516) | ||
Change in noncontrolling interest ownership, net of tax | $ 183 | $ 1,003 | $ 372 | $ 1,134 | ||
Maximum | Charter | ||||||
Noncontrolling Interests: | ||||||
Minority Interest Ownership Percentage Threshold | 100% | 100% |
Accounting for Derivative Ins_3
Accounting for Derivative Instruments and Hedging Activities (Details) £ in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 GBP (£) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Gain (Loss) On Financial Instruments, Net | |||||||
Change in fair value of cross-currency derivative instruments | $ (124) | $ (85) | $ (160) | $ (22) | |||
Foreign currency remeasurement of Sterling Notes to U.S. dollars | 125 | (6) | 175 | (21) | |||
Gain (loss) on financial instruments, net | $ 1 | $ (91) | $ 15 | $ (43) | |||
Cross Currency Derivatives | |||||||
Derivatives: | |||||||
Notional amount | £ | £ 1,275 | ||||||
Level 2 | Cross Currency Derivatives | |||||||
Derivatives: | |||||||
Derivative Liability | $ 450 | $ 290 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Product Information [Line Items] | |||||
REVENUES | $ 13,598 | $ 12,802 | $ 26,798 | $ 25,324 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable, net | 2,779 | 2,779 | $ 2,579 | ||
Other noncurrent assets | 4,758 | 4,758 | 3,647 | ||
Equipment installment plan receivable | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable, net | 477 | 477 | 391 | ||
Other noncurrent assets | 231 | 231 | $ 189 | ||
Internet | |||||
Product Information [Line Items] | |||||
REVENUES | 5,562 | 5,221 | 11,014 | 10,307 | |
Video | |||||
Product Information [Line Items] | |||||
REVENUES | 4,484 | 4,378 | 8,830 | 8,722 | |
Voice | |||||
Product Information [Line Items] | |||||
REVENUES | 398 | 394 | 789 | 793 | |
Residential revenue | |||||
Product Information [Line Items] | |||||
REVENUES | 10,444 | 9,993 | 20,633 | 19,822 | |
Small and medium business | |||||
Product Information [Line Items] | |||||
REVENUES | 1,080 | 1,042 | 2,139 | 2,054 | |
Enterprise | |||||
Product Information [Line Items] | |||||
REVENUES | 669 | 636 | 1,330 | 1,274 | |
Commercial revenue | |||||
Product Information [Line Items] | |||||
REVENUES | 1,749 | 1,678 | 3,469 | 3,328 | |
Advertising sales | |||||
Product Information [Line Items] | |||||
REVENUES | 460 | 411 | 843 | 755 | |
Mobile | |||||
Product Information [Line Items] | |||||
REVENUES | 726 | 519 | 1,416 | 1,011 | |
Other | |||||
Product Information [Line Items] | |||||
REVENUES | $ 219 | $ 201 | $ 437 | $ 408 |
Operating Costs and Expenses (D
Operating Costs and Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating Costs and Expenses [Abstract] | ||||
Programming | $ 2,972 | $ 2,978 | $ 5,949 | $ 5,966 |
Regulatory, connectivity and produced content | 599 | 668 | 1,155 | 1,268 |
Costs to service customers | 1,920 | 1,827 | 3,819 | 3,631 |
Marketing | 806 | 741 | 1,632 | 1,492 |
Mobile | 797 | 586 | 1,557 | 1,158 |
Other | 1,099 | 1,082 | 2,215 | 2,078 |
Operating costs and expenses (exclusive of items shown separately in the consolidated statements of operations) | $ 8,193 | $ 7,882 | $ 16,327 | $ 15,593 |
Other Operating (Income) Expe_3
Other Operating (Income) Expenses, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | ||||
Special charges, net | $ (63) | $ (6) | $ (64) | $ 249 |
(Gain) loss on disposal of assets, net | 1 | (3) | 3 | 44 |
Other operating (income) expenses, net | (62) | $ (9) | (61) | 293 |
Loss Contingency, Damages Awarded, Value | 375 | $ 220 | ||
gain related to settlement of multiemployer pension plan | $ 54 | $ 54 |
Other Income (Expenses), Net (D
Other Income (Expenses), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | ||||
Loss on extinguishment of debt (see Note 4) | $ (3) | $ (46) | $ (3) | $ (75) |
Gain (loss) on financial instruments, net (see Note 7) | 1 | (91) | 15 | (43) |
Net periodic pension benefits | 17 | 173 | 34 | 191 |
Income (Loss) from Equity Method Investments | 64 | (168) | 56 | (153) |
Other income (expenses), net | $ 79 | (132) | $ 102 | (80) |
Remeasurement Gain (Loss) | 155 | 155 | ||
Impairment on equity investments | $ 165 | $ 165 |
Stock Compensation Plans (Detai
Stock Compensation Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Stock Compensation Plans: | ||||
Stock compensation expense | $ 104 | $ 100 | $ 251 | $ 234 |
Stock options | ||||
Stock Compensation Plans: | ||||
Stock options granted in period (shares) | 32,000 | 16,800 | 1,404,400 | 1,241,800 |
Award vesting period | 3 years | |||
Award expiration period | 10 years | |||
Unrecognized compensation cost | $ 323 | $ 323 | ||
Remaining period over which to recognize unrecognized compensation expense | 2 years | |||
Restricted stock | ||||
Stock Compensation Plans: | ||||
Awards other than stock options granted in period (shares) | 6,800 | 4,600 | 6,800 | 4,600 |
Award vesting period | 1 year | |||
Unrecognized compensation cost | $ 0.3 | $ 0.3 | ||
Remaining period over which to recognize unrecognized compensation expense | 10 months | |||
Restricted stock units | ||||
Stock Compensation Plans: | ||||
Awards other than stock options granted in period (shares) | 19,500 | 9,100 | 443,100 | 354,200 |
Award vesting period | 3 years | |||
Unrecognized compensation cost | $ 323 | $ 323 | ||
Remaining period over which to recognize unrecognized compensation expense | 2 years |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 20,000,000 | 15,000,000 | 20,000,000 | 15,000,000 |
Net income attributable to Charter shareholders | $ 1,471 | $ 1,020 | $ 2,674 | $ 1,827 |
Charter Holdings convertible preferred units | 0 | 32 | 0 | 70 |
Net income attributable to Charter shareholders after assumed conversions | $ 1,471 | $ 1,052 | $ 2,674 | $ 1,897 |
Weighted average common shares outstanding, basic (shares) | 164,049,619 | 185,916,505 | 167,350,535 | 188,645,356 |
Assumed exercise or issuance of shares relating to stock plans | 3,041,306 | 5,058,176 | 3,390,927 | 5,098,205 |
Weighted average Charter Holdings convertible preferred units | 0 | 8,102,709 | 0 | 8,714,704 |
Weighted average common shares outstanding, diluted (shares) | 167,090,925 | 199,077,390 | 170,741,462 | 202,458,265 |
Basic earnings per common share attributable to Charter shareholders (dollars per share) | $ 8.96 | $ 5.48 | $ 15.98 | $ 9.69 |
Diluted earnings per common share attributable to Charter shareholders (dollars per share) | $ 8.80 | $ 5.29 | $ 15.66 | $ 9.37 |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended |
Jul. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Loss Contingency, Damages Awarded, Value | $ 375 | $ 220 | |
Loss Contingencies [Line Items] | |||
Loss Contingency, Damages Awarded, Value | $ 375 | $ 220 | |
Subsequent Event | |||
Commitments and Contingencies Disclosure [Abstract] | |||
Loss Contingency, Damages Awarded, Value | $ 7,000 | ||
Loss Contingencies [Line Items] | |||
Loss Contingency, Damages Awarded, Value | $ 7,000 |