Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 3 Months Ended | |
Mar. 31, 2018 | Jun. 30, 2017 | |
Entity Information [Line Items] | ||
Entity Registrant Name | CCO HOLDINGS LLC | |
Entity Central Index Key | 1,271,833 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | CCOH | |
Entity Current Reporting Status | Yes | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 1 | |
Entity Public Float | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 291 | $ 330 |
Accounts receivable, less allowance for doubtful accounts of $120 and $113, respectively | 1,374 | 1,611 |
Prepaid expenses and other current assets | 351 | 243 |
Total current assets | 2,016 | 2,184 |
INVESTMENT IN CABLE PROPERTIES: | ||
Property, plant and equipment, net of accumulated depreciation of $19,764 and $18,049, respectively | 33,668 | 33,552 |
Customer relationships, net | 11,315 | 11,951 |
Franchises | 67,319 | 67,319 |
Goodwill | 29,554 | 29,554 |
Total investment in cable properties, net | 141,856 | 142,376 |
OTHER NONCURRENT ASSETS | 1,353 | 1,133 |
Total assets | 145,225 | 145,693 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued liabilities | 7,457 | 8,141 |
Payables to related party | 429 | 635 |
Current portion of long-term debt | 3,340 | 2,045 |
Total current liabilities | 11,226 | 10,821 |
LONG-TERM DEBT | 67,609 | 68,186 |
LOANS PAYABLE - RELATED PARTY | 911 | 888 |
DEFERRED INCOME TAXES | 32 | 32 |
OTHER LONG-TERM LIABILITIES | 2,152 | 2,184 |
SHAREHOLDERS' EQUITY: | ||
Member's equity | 63,273 | 63,559 |
Accumulated other comprehensive loss | (1) | (1) |
Total CCO Holdings member's equity | 63,272 | 63,558 |
Noncontrolling interest | 23 | 24 |
Total member's equity | 63,295 | 63,582 |
Total liabilities and member's equity | $ 145,225 | $ 145,693 |
CONSOLIDATED BALANCE SHEET (PAR
CONSOLIDATED BALANCE SHEET (PARENTHETICALS) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Allowance for doubtful accounts | $ 120 | $ 113 |
INVESTMENT IN CABLE PROPERTIES: | ||
Property, plant and equipment, accumulated depreciation | $ 19,764 | $ 18,049 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
REVENUES | $ 10,653 | $ 10,164 |
COSTS AND EXPENSES: | ||
Operating costs and expenses (exclusive of items shown separately below) | 6,842 | 6,584 |
Depreciation and amortization | 2,707 | 2,548 |
Other operating expenses, net | 65 | 94 |
Total costs and expenses | 9,614 | 9,226 |
Income from operations | 1,039 | 938 |
OTHER EXPENSES: | ||
Interest expense, net | (858) | (719) |
Loss on extinguishment of debt | 0 | (34) |
Gain on financial instruments, net | 63 | 38 |
Other income, net | 18 | 13 |
Total other expenses, net | (777) | (702) |
Income before income taxes | 262 | 236 |
Income tax benefit (expense) | 2 | (19) |
Consolidated net income | $ 264 | $ 217 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Consolidated net income | $ 264 | $ 217 |
Net impact of interest rate derivative instruments | 0 | 1 |
Consolidated comprehensive income | $ 264 | $ 218 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Consolidated net income | $ 264 | $ 217 |
Adjustments to reconcile consolidated net income to net cash flows from operating activities: | ||
Depreciation and amortization | 2,707 | 2,548 |
Stock compensation expense | 72 | 69 |
Accelerated vesting of equity awards | 5 | 17 |
Noncash interest income, net | (89) | (108) |
Loss on extinguishment of debt | 0 | 34 |
Gain on financial instruments, net | (63) | (38) |
Deferred income taxes | 0 | 14 |
Other, net | (3) | (17) |
Changes in operating assets and liabilities, net of effects from acquisitions: | ||
Accounts receivable | 237 | 241 |
Prepaid expenses and other assets | (117) | (58) |
Accounts payable, accrued liabilities and other | (195) | (244) |
Receivables from and payables to related party, including deferred management fees | (182) | (11) |
Net cash flows from operating activities | 2,636 | 2,664 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (2,183) | (1,555) |
Change in accrued expenses related to capital expenditures | (565) | (150) |
Other, net | 10 | (7) |
Net cash flows from investing activities | (2,738) | (1,712) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 2,929 | 4,640 |
Repayments of long-term debt | (2,185) | (3,475) |
Borrowings (repayments) loans payable - related parties | (2) | 178 |
Payments for debt issuance costs | 0 | (21) |
Contributions from parent | 72 | 0 |
Distributions to parent | 747 | 856 |
Distributions to noncontrolling interest | (1) | 0 |
Other, net | (3) | (2) |
Net cash flows from financing activities | 63 | 464 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (39) | 1,416 |
CASH AND CASH EQUIVALENTS, beginning of period | 330 | 1,324 |
CASH AND CASH EQUIVALENTS, end of period | 291 | 2,740 |
CASH PAID FOR INTEREST | 1,007 | 892 |
CASH PAID FOR TAXES | $ 0 | $ 1 |
Organization and Basis of Prese
Organization and Basis of Presentation (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Organization and Basis of Presentation [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Organization CCO Holdings, LLC (together with its subsidiaries, “CCO Holdings,” or the “Company”) is the second largest cable operator in the United States and a leading broadband communications company providing video, Internet and voice services to residential and business customers. In addition, the Company sells video and online advertising inventory to local, regional and national advertising customers and fiber-delivered communications and managed information technology solutions to larger enterprise customers. The Company also owns and operates regional sports networks and local sports, news and lifestyle channels and sells security and home management services to the residential marketplace. CCO Holdings is a holding company whose principal assets are the equity interests in its operating subsidiaries. CCO Holdings is a direct subsidiary of CCH I Holdings, LLC (“CCH I”), which is an indirect subsidiary of Charter Communications, Inc. (“Charter”), Charter Communications Holdings, LLC (“Charter Holdings”) and Spectrum Management Holding Company, LLC (“Spectrum Management”). The consolidated financial statements include the accounts of CCO Holdings and all of its subsidiaries where the underlying operations reside. All significant intercompany accounts and transactions among consolidated entities have been eliminated. Charter, Charter Holdings and Spectrum Management have performed financing, cash management, treasury and other services for CCO Holdings on a centralized basis. Changes in member’s equity in the consolidated balance sheets related to these activities have been considered cash receipts (contributions) and payments (distributions) for purposes of the consolidated statements of cash flows and are reflected in financing activities. 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, 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 CCO Holdings' 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; depreciation and amortization costs; purchase accounting valuations of assets and liabilities including, but not limited to, property, plant and equipment, intangibles and goodwill; pension benefits; income taxes; contingencies and programming expense. Actual results could differ from those estimates. Certain prior period amounts have been reclassified to conform with the 2018 presentation. |
Franchises, Goodwill and Other
Franchises, Goodwill and Other Intangible Assets (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Franchises, Goodwill and Other Intangible Assets [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, 2018 and December 31, 2017 : March 31, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Indefinite-lived intangible assets: Franchises $ 67,319 $ — $ 67,319 $ 67,319 $ — $ 67,319 Goodwill 29,554 — 29,554 29,554 — 29,554 $ 96,873 $ — $ 96,873 $ 96,873 $ — $ 96,873 Finite-lived intangible assets: Customer relationships $ 18,229 $ (6,914 ) $ 11,315 $ 18,229 $ (6,278 ) $ 11,951 Other intangible assets 341 (63 ) 278 731 (201 ) 530 $ 18,570 $ (6,977 ) $ 11,593 $ 18,960 $ (6,479 ) $ 12,481 Amortization expense related to customer relationships and other intangible assets for the three months ended March 31, 2018 and 2017 was $645 million and $726 million , respectively. Effective January 1, 2018 with the adoption of Accounting Standards Update (“ASU”) 2014-09, up-front fees paid to market and serve customers who reside in residential multiple dwelling units (“MDUs”) are no longer recorded as intangibles and amortized to depreciation and amortization expense, but are now being recorded as noncurrent assets and are amortized to operating costs and expenses. See Note 15. The Company expects amortization expense on its finite-lived intangible assets will be as follows: Nine months ended December 31, 2018 $ 1,776 2019 2,146 2020 1,864 2021 1,589 2022 1,319 Thereafter 2,899 $ 11,593 Actual amortization expense in future periods will differ from these estimates as a result of new intangible asset acquisitions or divestitures, changes in useful lives, impairments and other relevant factors. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 and December 31, 2017 : March 31, 2018 December 31, 2017 Accounts payable – trade $ 575 $ 673 Deferred revenue 472 395 Accrued liabilities: Programming costs 2,070 1,907 Labor 635 747 Capital expenditures 1,363 1,935 Interest 985 1,054 Taxes and regulatory fees 504 548 Other 853 882 $ 7,457 $ 8,141 |
Long-Term Debt (Notes)
Long-Term Debt (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following as of March 31, 2018 and December 31, 2017 : March 31, 2018 December 31, 2017 Principal Amount Accreted Value Principal Amount Accreted Value CCO Holdings, LLC: 5.250% senior notes due March 15, 2021 $ 500 $ 497 $ 500 $ 497 5.250% senior notes due September 30, 2022 1,250 1,235 1,250 1,235 5.125% senior notes due February 15, 2023 1,000 993 1,000 993 4.000% senior notes due March 1, 2023 500 496 500 495 5.125% senior notes due May 1, 2023 1,150 1,143 1,150 1,143 5.750% senior notes due September 1, 2023 500 496 500 496 5.750% senior notes due January 15, 2024 1,000 992 1,000 992 5.875% senior notes due April 1, 2024 1,700 1,687 1,700 1,687 5.375% senior notes due May 1, 2025 750 745 750 745 5.750% senior notes due February 15, 2026 2,500 2,465 2,500 2,464 5.500% senior notes due May 1, 2026 1,500 1,489 1,500 1,489 5.875% senior notes due May 1, 2027 800 795 800 794 5.125% senior notes due May 1, 2027 3,250 3,217 3,250 3,216 5.000% senior notes due February 1, 2028 2,500 2,463 2,500 2,462 Charter Communications Operating, LLC: 3.579% senior notes due July 23, 2020 2,000 1,989 2,000 1,988 4.464% senior notes due July 23, 2022 3,000 2,979 3,000 2,977 4.908% senior notes due July 23, 2025 4,500 4,463 4,500 4,462 3.750% senior notes due February 15, 2028 1,000 985 1,000 985 4.200% senior notes due March 15, 2028 1,250 1,238 1,250 1,238 6.384% senior notes due October 23, 2035 2,000 1,981 2,000 1,981 6.484% senior notes due October 23, 2045 3,500 3,466 3,500 3,466 5.375% senior notes due May 1, 2047 2,500 2,506 2,500 2,506 6.834% senior notes due October 23, 2055 500 495 500 495 Credit facilities 10,223 10,135 9,479 9,387 Time Warner Cable, LLC: 6.750% senior notes due July 1, 2018 2,000 2,023 2,000 2,045 8.750% senior notes due February 14, 2019 1,250 1,317 1,250 1,337 8.250% senior notes due April 1, 2019 2,000 2,119 2,000 2,148 5.000% senior notes due February 1, 2020 1,500 1,569 1,500 1,579 4.125% senior notes due February 15, 2021 700 728 700 730 4.000% senior notes due September 1, 2021 1,000 1,042 1,000 1,045 5.750% sterling senior notes due June 2, 2031 (a) 876 945 845 912 6.550% senior debentures due May 1, 2037 1,500 1,685 1,500 1,686 7.300% senior debentures due July 1, 2038 1,500 1,786 1,500 1,788 6.750% senior debentures due June 15, 2039 1,500 1,723 1,500 1,724 5.875% senior debentures due November 15, 2040 1,200 1,257 1,200 1,258 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) 912 879 879 847 4.500% senior debentures due September 15, 2042 1,250 1,138 1,250 1,137 Time Warner Cable Enterprises LLC: 8.375% senior debentures due March 15, 2023 1,000 1,222 1,000 1,232 8.375% senior debentures due July 15, 2033 1,000 1,308 1,000 1,312 Total debt 69,811 70,949 69,003 70,231 Less current portion: 6.750% senior notes due July 1, 2018 (2,000 ) (2,023 ) (2,000 ) (2,045 ) 8.750% senior notes due February 14, 2019 (1,250 ) (1,317 ) — — Long-term debt $ 66,561 $ 67,609 $ 67,003 $ 68,186 (a) Principal amount includes £625 million valued at $876 million and $845 million as of March 31, 2018 and December 31, 2017 , respectively, using the exchange rate at the respective dates. (b) Principal amount includes £650 million valued at $912 million and $879 million as of March 31, 2018 and December 31, 2017 , respectively, using the exchange rate at the respective dates. The accreted values presented in the table above represent the principal amount of the debt less the original issue discount at the time of sale, deferred financing costs, and, in regards to Time Warner Cable, LLC and Time Warner Cable Enterprises LLC debt assumed, 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 into US dollars is remeasured as of each balance sheet date. See Note 6. The Company has availability under the Charter Operating credit facilities of approximately $2.8 billion as of March 31, 2018 . During the three months ended March 31, 2017 , CCO Holdings and CCO Holdings Capital Corp. jointly issued $2.0 billion aggregate principal amount of 5.125% senior notes due May 1, 2027. The net proceeds, as well as cash on hand, were used in February and April 2017 to repurchase $2.75 billion of various series of senior unsecured notes, pay related fees and expenses as well as for general corporate purposes. For the three months ended March 31, 2017 , the Company recorded a loss on extinguishment of debt of $33 million related to the notes repurchased in February 2017. In January 2017, Charter Operating entered into an amendment to its Amended and Restated Credit Agreement dated May 18, 2016 (the “Credit Agreement”) decreasing the applicable LIBOR margins and eliminating the LIBOR floors on certain term loans outstanding at that time. The Company recorded a loss on extinguishment of debt of $1 million for the three months ended March 31, 2017 related to these transactions. In April 2018, Charter Operating and Charter Communications Operating Capital Corp. jointly issued $800 million aggregate principal amount of 5.375% senior notes due April 1, 2038 at a price of 98.846% of the aggregate principal amount and $1.7 billion aggregate principal amount of 5.750% senior notes due April 1, 2048 at a price of 99.706% of the aggregate principal amount. The net proceeds, together with cash on hand, will be used to repay certain existing indebtedness, including to repurchase or redeem all of the outstanding $2.0 billion in aggregate principal amount of Time Warner Cable, LLC’s 6.750% notes due July 1, 2018, to pay related fees and expenses and for general corporate purposes, including distributions to the Company's parent companies to fund potential buybacks of Charter Class A common stock or Charter Holdings common units. |
Loans Payable - Related Party L
Loans Payable - Related Party Loans Payable - Related Party (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Loans Payable - Related Party [Abstract] | |
Loans Receivable Payable To Related Parties [Text Block] | Loans Payable - Related Party Loans payable - related party as of March 31, 2018 and December 31, 2017 consists of loans from Charter Communications Holdings Company, LLC (“Charter Holdco”) to the Company of $674 million and $655 million , respectively, and loans from Charter to the Company of $237 million and $233 million , respectively. Interest accrues on loans payable - related party at LIBOR plus 1.50% and 1.75% as of March 31, 2018 and December 31, 2017, respectively. |
Accounting for Derivative Instr
Accounting for Derivative Instruments and Hedging Activities (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
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 May 2016, the Company entered into a collateral holiday agreement for 80% of both the 2031 and 2042 cross-currency swaps, which eliminates the requirement to post collateral for three years. The fair value of the Company's cross-currency derivatives on its consolidated balance sheets was $103 million included in other noncurrent assets and $25 million included in other long-term liabilities as of March 31, 2018 and December 31, 2017 , 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, 2018 2017 Gain on Financial Instruments, Net: Change in fair value of cross-currency derivative instruments $ 128 $ 65 Foreign currency remeasurement of Sterling Notes to U.S. dollars (65 ) (28 ) Other, net — 1 $ 63 $ 38 |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Fair Value Measurements The 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, 2018 and December 31, 2017 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, receivables, payables and other current assets and liabilities approximate fair value because of the short maturity of those instruments. As of March 31, 2018 and December 31, 2017 , there were no significant concentrations of financial instruments in a single investee, industry or geographic location. Financial instruments accounted for at fair value on a recurring basis are presented in the table below. March 31, 2018 December 31, 2017 Level 2 Level 2 Assets Cross-currency derivative instruments $ 103 $ — Liabilities Cross-currency derivative instruments $ — $ 25 A summary of the carrying value and fair value of debt as of March 31, 2018 and December 31, 2017 is as follows: March 31, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Senior notes and debentures $ 60,814 $ 61,350 $ 60,844 $ 63,443 Credit facilities $ 10,135 $ 10,235 $ 9,387 $ 9,440 The estimated fair value of the Company’s senior notes and debentures as of March 31, 2018 and December 31, 2017 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. Nonfinancial Assets and Liabilities The Company’s nonfinancial assets such as equity-method investments, franchises, property, plant, and equipment, and other intangible assets are not measured at fair value on a recurring basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence that an impairment may exist. No material impairments were recorded during the three months ended March 31, 2018 and 2017 . |
Operating Costs and Expenses (N
Operating Costs and Expenses (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 2017 Programming $ 2,752 $ 2,604 Regulatory, connectivity and produced content 533 498 Costs to service customers 1,855 1,801 Marketing 751 765 Mobile 8 — Other 943 916 $ 6,842 $ 6,584 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 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 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 and residential customers including labor costs. Mobile costs represent incremental costs incurred to launch the Company's mobile service. 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 Expenses, Net (
Other Operating Expenses, Net (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Other Operating Expenses, Net [Abstract] | |
Other Operating Expenses, Net | Other Operating Expenses, Net Other operating expenses, net consist of the following for the periods presented: Three Months Ended March 31, 2018 2017 Merger and restructuring costs $ 48 $ 95 Special charges, net 24 2 Gain on sale of assets, net (7 ) (3 ) $ 65 $ 94 Merger and restructuring costs Merger and restructuring costs represent costs incurred in connection with merger and acquisition transactions and related restructuring, such as advisory, legal and accounting fees, employee retention costs, employee termination costs related to the acquisition in 2016 of Time Warner Cable Inc. ("TWC") and Bright House Networks, LLC ("Bright House") and other exit costs. The Company expects to incur additional merger and restructuring costs in connection with the acquisition of TWC and Bright House. Changes in accruals for merger and restructuring costs are presented below: Employee Retention Costs Employee Termination Costs Transaction and Advisory Costs Other Costs Total Liability, December 31, 2016 $ 7 $ 244 $ 25 $ — $ 276 Costs incurred 4 226 4 68 302 Cash paid (10 ) (298 ) (12 ) (60 ) (380 ) Remaining liability, December 31, 2017 1 172 17 8 198 Costs incurred — 37 — 6 43 Cash paid — (90 ) — — (90 ) Remaining liability, March 31, 2018 $ 1 $ 119 $ 17 $ 14 $ 151 In addition to the costs incurred indicated above, the Company recorded $5 million and $17 million of expense related to accelerated vesting of equity awards of terminated employees during the three months ended March 31, 2018 and 2017 , respectively. Special charges, net Special charges, net primarily includes a $22 million charge related to the Company's withdrawal liability from a multiemployer pension plan, employee termination costs not related to the acquisition of TWC and Bright House and net amounts of litigation settlements. Gain on sale of assets, net Gain on sale of assets, net represents the net gain recognized on the sales and disposals of fixed assets and cable systems. |
Income Taxes (Notes)
Income Taxes (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | Income Taxes CCO Holdings is a single member limited liability company not subject to income tax. CCO Holdings holds all operations through indirect subsidiaries. The majority of these indirect subsidiaries are limited liability companies that are not subject to income tax. Certain indirect subsidiaries that are required to file separate returns are subject to federal and state tax. CCO Holdings’ tax provision reflects the tax provision of the entities required to file separate returns. Generally, the taxable income, gains, losses, deductions and credits of CCO Holdings are passed through to its indirect members, Charter and A/N. Charter is responsible for its share of taxable income or loss of CCO Holdings allocated to it in accordance with the Charter Holdings Limited Liability Company Agreement (“LLC Agreement”) and partnership tax rules and regulations. Charter also records financial statement deferred tax assets and liabilities related to its investment, and its underlying net assets, in CCO Holdings. For the three months ended March 31, 2018 and 2017 , the Company recorded income tax benefit of $2 million and income tax expense of $19 million , respectively. Income tax expense is generally recognized through increases in deferred tax liabilities as well as through current federal and state income tax expense. The income tax benefit for the three months ended March 31, 2018 was primarily the result of audit settlements previously recorded as uncertain tax positions offset by state income tax accruals. The Company has reported provisional amounts for the income tax effects of Tax Cuts & Jobs Act (“Tax Reform”) for which the accounting is incomplete but a reasonable estimate could be determined. There were no specific impacts of Tax Reform that could not be reasonably estimated which the Company accounted for under prior tax law. Based on a continued analysis of the estimates and further guidance on the application of the law, it is anticipated that additional revisions may occur throughout the allowable measurement period. 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 $125 million and $134 million , excluding interest and penalties, as of March 31, 2018 and December 31, 2017 , respectively. The Company does not currently anticipate that its reserve for uncertain tax positions will significantly increase or decrease during 2018; 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, Charter Holdings, or Charter Holdco, the Company's indirect parent companies, for income tax purposes, are currently under examination by the Internal Revenue Service ("IRS"). Charter and Charter Holdings' 2016 and 2017 tax years remain open for examination and assessment. Charter’s tax years ending 2014 through the short period return dated May 17, 2016 (prior to the acquisition of TWC and Bright House) remain subject to examination and assessment. Years prior to 2014 remain open solely for purposes of examination of Charter’s loss and credit carryforwards. 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 (the “Separation”), TWC was included in the consolidated U.S. federal and certain state income tax returns of Time Warner. The IRS is currently examining Time Warner’s 2008 through 2010 income tax returns. 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, 2018 , nor does the Company anticipate a material impact in the future. |
Related Party Transactions (Not
Related Party Transactions (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
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 and A/N Under the terms of the Amended and Restated Stockholders Agreement with Liberty Broadband Corporation (“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 once Charter or Charter Holdings have repurchased shares of Class A common stock or Charter Holdings common units from A/N and its affiliates for an aggregate purchase price of $400 million . The Company is aware that Dr. John Malone may be deemed to have a 37.5% voting interest in Qurate Retail, Inc. (formerly known as Liberty Interactive Corporation (“Liberty Interactive”)) and is chairman of the board of directors, an executive officer position, of Liberty Interactive. Liberty Interactive wholly owns HSN, Inc. (“HSN”) and QVC, Inc. (“QVC”). The Company has programming relationships with HSN and QVC. For the three months ended March 31, 2018 and 2017 , the Company recorded revenue in aggregate of approximately $16 million and $17 million , respectively, 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, each 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 93.6% of the series B common stock of Discovery, 6% of the series C common stock of Discovery and has a 28% 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 in which Mr. Miron is the CEO, owns 100% of the Series A preferred stock of Discovery and 100% of the Series C preferred stock of Discovery and has a 24.2% voting interest for the election of directors. A/N PP has the right to appoint three directors out of a total of eleven directors to Discovery’s board to be elected by the holders of Discovery’s Series A preferred stock. In addition, Dr. Malone is a member of the board of directors of Lions Gate Entertainment Corp. (“Lions Gate”, parent company of Starz, Inc.) and owns approximately 5.5% in the aggregate of the common stock of Lions Gate and has 7.9% of the voting power, pursuant to his ownership of Lions Gate Class A voting shares. The Company purchases programming from both Discovery and Lions Gate pursuant to agreements entered into prior to Dr. Malone and Mr. Miron joining Charter’s board of directors. Based on publicly available information, the Company does not believe that either Discovery or Lions Gate would currently be considered related parties. The amounts paid in the aggregate to Discovery and Lions Gate represent less than 3% of total operating costs and expenses for the three months ended March 31, 2018 and 2017 . Equity Investments The Company and its parent companies have agreements with certain equity-method investees pursuant to which the Company has made or received related party transaction payments. The Company and its parent companies recorded payments to equity-method investees totaling $63 million and $68 million during the three months ended March 31, 2018 and 2017 , respectively. |
Contingencies (Notes)
Contingencies (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies [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 between Charter, TWC, A/N, and Liberty Broadband announced by Charter on May 26, 2015. The lawsuit names as defendants Liberty Broadband, the board of directors of Charter and Charter. Plaintiff alleges that the transactions with Liberty improperly benefit Liberty Broadband at the expense of other Charter shareholders. Charter filed a motion to dismiss this litigation. The Court of Chancery has not yet made a final ruling on the motion to dismiss. Charter denies any liability, believes that it has substantial defenses, and intends to vigorously defend this suit. 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 U.S. District Court for the District of Kansas alleging that TWC infringed certain U.S. patents purportedly relating to Voice over Internet Protocol (“VoIP”) services. A trial began on February 13, 2017. On March 3, 2017 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 appealed the case to the United States Court of Appeals for the Federal Circuit. In addition to its appeal, 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 U.S. District Court for the District of Delaware implicating Sprint's LTE technology. The impact of the Sprint verdict was reflected in the measurement period adjustments to net current liabilities. The Company does not expect that the outcome of this litigation will have a material adverse effect on its operations or financial condition. The ultimate outcome of this litigation or the pursuit of indemnity against the Company’s vendor cannot be predicted. Subsequently, on December 2, 2017, Sprint filed suit against Charter in the United States District Court for the District of Delaware. The new suit alleges infringement of 15 patents related to the Company's provision of voice services (ten of which were already asserted against Legacy TWC in the matter described above). Charter is investigating the allegations and will vigorously defend this case. While the Company is unable to predict the outcome of its investigations, it does not expect that this litigation will have a material effect on its operations, financial condition, or cash flows. On October 23, 2015, the New York Office of the Attorney General (the “NY AG”) began an investigation of TWC's advertised Internet speeds and other Internet product advertising. On February 1, 2017, the NY AG filed suit in the Supreme Court for the State of New York alleging that TWC's advertising of Internet speeds was false and misleading. The suit seeks restitution and injunctive relief. The Company's motion to dismiss the NY AG’s complaint was denied by the trial court and the Company has appealed the ruling. The Company intends to defend itself vigorously. Although no assurances can be made that such defenses would ultimately be successful, the Company does not expect that the outcome of this litigation will have a material adverse effect on its operations, financial condition or cash flows. In addition to the Sprint litigation described above, the Company and its parent companies are defendants or co-defendants in several additional lawsuits involving alleged infringement of various patents relating to various aspects of their businesses. Other industry participants are also defendants in certain of these cases. In the event that a court ultimately determines that the Company infringes on any intellectual property rights, 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 patents 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 and its parent companies are parties to other lawsuits, claims and regulatory inquiries that arise in the ordinary course of conducting their 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. |
Stock Compensation Plans (Notes
Stock Compensation Plans (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Stock Compensation Plans [Abstract] | |
Stock Compensation Plans | Stock Compensation Plans Charter’s 2009 Stock Incentive Plan provides 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 2009 Stock Incentive Plan. Charter granted the following equity awards for the periods presented. Three Months Ended March 31, 2018 2017 Stock options 1,429,800 1,102,600 Restricted stock — — Restricted stock units 483,700 268,200 Charter stock options and restricted stock units cliff vest upon the three year anniversary of each 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. TWC restricted stock units that were converted into Charter restricted stock units generally vest 50% on each of the third and fourth anniversary of the grant date. As of March 31, 2018 , total unrecognized compensation remaining to be recognized in future periods totaled $309 million for stock options, $0.2 million for restricted stock and $301 million for restricted stock units and the weighted average period over which they are expected to be recognized is three years for stock options, one month for restricted stock and two years for restricted stock units. The Company recorded $72 million and $69 million of stock compensation expense for the three months ended March 31, 2018 and 2017 , respectively, which is included in operating costs and expenses. The Company also recorded $5 million and $17 million of expense for the three months ended March 31, 2018 and 2017 , respectively, related to accelerated vesting of equity awards of terminated employees, which is recorded in merger and restructuring costs. |
Employee Benefit Plans (Notes)
Employee Benefit Plans (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company sponsors two qualified defined benefit pension plans, the TWC Pension Plan and the TWC Union Pension Plan, that provide pension benefits to a majority of employees who were employed by TWC before the acquisition of TWC. The Company also provides a nonqualified defined benefit pension plan for certain employees under the TWC Excess Pension Plan. 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 for the three months ended March 31, 2018 and 2017 are recorded in other income (expense), net in the consolidated statements of operations and consisted of the following: Three Months Ended March 31, 2018 2017 Interest cost $ 32 $ 34 Expected return on plan assets (52 ) (47 ) Net periodic pension benefit $ (20 ) $ (13 ) The Company made no cash contributions to the qualified pension plans during the three months ended March 31, 2018 and 2017 ; 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 2018 to the extent benefits are paid. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Recently Issued Accounting Standards [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Accounting Standards Adopted January 1, 2018 ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”) In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09 which is a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under U.S. GAAP. ASU 2014-09 provides a single principles-based, five step model to be applied to all contracts with customers, which steps are to (1) identify the contract(s) with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when each performance obligation is satisfied. Charter adopted ASU 2014-09 as of January 1, 2018 using the modified retrospective transition method with a cumulative-effect adjustment to equity. The adoption of ASU 2014-09 did not have a material impact on the Company’s financial position or results of operation. Previously reported results will not be restated under this transition method. The adoption results in the deferral of residential and small and medium business installation revenues and enterprise commission expenses over a period of time instead of recognized immediately. The adoption also results in the reclassification of the amortization of up-front fees paid to market and serve customers who reside in residential MDUs to operating costs and expenses instead of amortized as an intangible to depreciation and amortization expense. The January 1, 2018 adoption cumulative-effect adjustment consisted of an increase to other noncurrent assets of $120 million , an increase to accounts payable and accrued liabilities of $71 million , an increase to deferred income tax liabilities of $11 million and an increase to total shareholders’ equity of $38 million . Charter applied the cumulative-effect method to all contracts as of January 1, 2018. Operating results for the three months ended March 31, 2018 are not materially different than results that would have been reported under guidance in effect before application of ASU 2014-09. Nature of Services Residential Services Residential customers are offered video, Internet and voice services primarily on a subscription basis. Residential customers may generally cancel their subscriptions at any time without penalty. Each subscription service provided is accounted for as a distinct performance obligation and revenue is recognized ratably over a one month service period as the subscription services are delivered. Each optional service purchased is generally accounted for as a distinct performance obligation when purchased and revenue is recognized when the service is provided. Residential video customers have the option to purchase additional tiers of services, as well as video-on-demand (“VOD”) programming and pay-per-view programming on a per-event basis. Video revenues consist primarily of revenues from the selected programming service tier, as well as VOD fees, pay-per-view fees, retransmission fees, regulatory fees, equipment service fees and video installation fees. Residential Internet customers receive data download and upload services with speeds dependent on the selected tier of service. Customers are also offered a security suite, an in-home WiFi product, and an out-of-home WiFi service. Internet revenues consist primarily of data services, WiFi service fees and Internet installation fees. Residential voice customers receive unlimited local and long distance calling to United States, Canada, Mexico, and Puerto Rico, voicemail, call waiting, caller ID, call forward and other features. Customers may also purchase international calling either by the minute, or through packages of minutes per month. Voice revenues consist primarily of voice services and regulatory fees. Small and Medium Business Small and medium business customers are offered video, Internet and voice services similar to those provided to residential customers. Small and medium business customers may generally cancel their subscriptions at any time without penalty. Each subscription service provided is accounted for as a distinct performance obligation and revenue is recognized ratably over a one month service period as the subscription services are delivered. Enterprise Solutions Enterprise Solutions include fiber-delivered communications and managed information technology solutions to larger businesses, as well as high-capacity last-mile data connectivity services to wireless and wireline carriers, Internet service providers, and other competitive carriers on a wholesale basis. Services are primarily offered on a subscription basis with a contractually specified and non-cancelable service period. The non-cancelable contract terms for enterprise services generally range from two to seven years. Each subscription service provided is accounted for as a distinct performance obligation and revenue is recognized ratably over the contract period as the subscription services are delivered. Enterprise subscription services are billed as monthly reoccurring charges to customers and related installation services, if applicable, are billed upon completion of the customer installation. Installation services are not accounted for as distinct performance obligations, but rather a component of the connectivity services, and therefore upfront installation fees are deferred and recognized as revenue over the related contract period. Advertising Services The Company offers local, regional and national businesses the opportunity to advertise in individual and multiple markets on cable television networks and digital outlets. Placement of advertising is accounted for as a distinct performance obligation and revenue is recognized at the point in time when the advertising is distributed. In some markets, the Company has formed advertising interconnects or entered into representation agreements with other video distributors, under which the Company sells advertising on behalf of those distributors. In other markets, the Company has entered into representation agreements under which another operator in the area will sell advertising on the Company’s behalf. For representation arrangements in which the Company controls the sale of advertising and acts as the principal to the transaction, the Company recognizes revenue earned from the advertising customer on a gross basis and the amount remitted to the distributor as an operating expense. For other representation arrangements in which the Company does not control the sale of advertising and acts as an agent to the transaction, the Company recognizes revenue net of any fee remitted to the distributor. The Company’s revenues by product line are as follows: Three Months Ended March 31, 2018 2017 Video $ 4,297 $ 4,079 Internet 3,708 3,398 Voice 556 694 Residential revenue 8,561 8,171 Small and medium business 937 900 Enterprise 579 539 Commercial revenue 1,516 1,439 Advertising sales 356 337 Other 220 217 $ 10,653 $ 10,164 Fees imposed on the Company by various governmental authorities are passed through on a monthly basis to the Company’s customers and are periodically remitted to authorities. Fees of $246 million and $235 million for the three months ended March 31, 2018 and 2017 , respectively, are reported in video, voice and commercial revenues, on a gross basis with a corresponding operating expense because the Company is acting as a principal. Certain taxes, such as sales taxes imposed on the Company’s customers, collected and remitted to state and local authorities, are recorded on a net basis because the Company is acting as an agent in such situation. A significant portion of our revenue is derived from customers who may generally cancel their subscriptions at any time without penalty. As such, the amount of revenue related to unsatisfied performance obligations is not necessarily indicative of the future revenue to be recognized from our existing customer base. Revenue from customers with a contractually specified term and non-cancelable service period will be recognized over the term of such contracts, which is generally two to seven years for our enterprise contracts. Significant Judgments The Company often provides multiple services to a customer. Provision of customer premise equipment, installation services, and additional service tiers may have a significant level of integration and interdependency with the subscription video, Internet, voice, or connectivity services provided. Judgment is required to determine whether provision of customer premise equipment, installation services, and additional service tiers are considered distinct and accounted for separately, or not distinct and accounted for together with the subscription services. Allocation of the transaction price to the distinct performance obligations in bundled residential service subscriptions requires judgment. The transaction price for a bundle of residential services is frequently less than the sum of the standalone selling prices of each individual service. The Company allocates the residential services bundle discount among the services to which the discount relates based on the relative standalone selling prices of those services. Standalone selling prices for the Company’s residential video and Internet services are directly observable, while standalone selling price for the Company’s residential voice service is estimated using the adjusted market assessment approach which relies upon information from peers and competitors who sell residential voice services individually. The Company believes residential and small and medium business non-refundable upfront installation fees charged to customers result in a material right to renew the contract as such fees are not required to be paid upon subsequent renewals. The residential and small and medium business upfront fee is deferred over the period the fee remains material to the customer, which the Company has estimated to be approximately six months. Estimation of the period the fee remains material to the customer requires consideration of both quantitative and qualitative factors including average installation fee, average revenue per customer, and customer behavior, among others. Contract Liabilities Timing of revenue recognition may differ from the timing of invoicing to customers. Residential, small and medium business, and enterprise customers are invoiced for subscription services in advance of the service period. Deferred revenue liabilities, or contract liabilities, are recorded when the Company collects payments in advance of performing the services. Deferred revenue liabilities, or contract liabilities, are also recorded when the Company invoices customers upfront for installation services that are recognized as revenue over time. Residential and small and medium business installation revenues are deferred over the period the fee remains material to the customer. Enterprise installation revenues are deferred using a portfolio approach over the average contract life of each enterprise service category. As of March 31, 2018 , current deferred revenue liabilities consisting of refundable customer prepayments of $386 million and upfront installation fees of $86 million were included in accounts payable and accrued liabilities. As of March 31, 2018 , long-term deferred revenue liabilities consisting of enterprise upfront installation fees of $33 million were included in other long-term liabilities. Contract Costs The Company recognizes an asset for incremental costs of obtaining a contract with a customer if the amortization period of those costs is expected to be longer than one year and the costs are expected to be recovered. Enterprise sales commission costs meet the requirements to be deferred and, as a result, are recognized using a portfolio approach over a commission expense weighted-average enterprise contract period. Deferred enterprise commission costs are included in other noncurrent assets in the consolidated balance sheet and totaled $127 million as of March 31, 2018 . As the amortization period of residential and small and medium business commissions costs is less than one year, the Company applies the practical expedient that allows such costs to be expensed as incurred. The Company has determined that the amortization period associated with residential and small and medium business commission costs is less than one year based on qualitative and quantitative factors. The Company recognizes an asset for costs incurred to fulfill a contract when those costs are directly related to services provided under the contract, generate or enhance resources of the entity that will be used in performing service obligations under the contract, and are expected to be recovered. Up-front fees paid to MDUs, such as apartment building owners, in order to gain access to market and serve tenants who reside within the MDU meet the requirements to be deferred and, as a result, are recognized over the term of the MDU contract. Deferred upfront MDU fees are amortized on a straight-line basis and are included in other noncurrent assets in the consolidated balance sheet and totaled $247 million as of March 31, 2018 . Amortization expense of $15 million was included in regulatory, connectivity and produced content within operating expenses in the consolidated statements of operations for the three months ended March 31, 2018. Residential and small and medium business installation costs not capitalized into property, plant and equipment are expensed as incurred under cable industry-specific guidance. ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”) In August 2016, the FASB issued ASU No. 2016-15 which clarifies how entities should classify cash receipts and cash payments related to eight specific cash flow matters on the statement of cash flows, with the objective of reducing existing diversity in practice. The Company adopted ASU 2016-15 on January 1, 2018. The adoption of ASU 2016-15 did not have a material impact to the Company’s consolidated financial statements. ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”) In November 2016, the FASB issued ASU No. 2016-18 which requires that amounts generally described as restricted cash to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 does not provide a definition of restricted cash or restricted cash equivalents. The Company adopted ASU 2016-18 on January 1, 2018. The new guidance will only be applicable to amounts described by the Company as restricted cash. The Company currently does not have amounts described as restricted cash; however, the Company's consolidated statement of cash flows for the year ended December 31, 2016 will be recast to present $22.3 billion of restricted cash as beginning of period cash and cash equivalents. ASU No. 2017-09, Scope of Modification Accounting ("ASU 2017-09") In May 2017, the FASB issued ASU No. 2017-09 which amends the scope of modification accounting for share-based payment arrangements. The ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting. ASU 2017-09 is applied prospectively to awards modified on or after the effective date. The Company adopted ASU 2017-09 on January 1, 2018. The adoption of ASU 2017-09 did not have a material impact to the Company’s consolidated financial statements. Accounting Standards Not Yet Adopted ASU No. 2016-02, Leases (“ASU 2016-02”) In February 2016, the FASB issued ASU No. 2016-02 which requires lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. Lessees are allowed to account for short-term leases (i.e., leases with a term of 12 months or less) off-balance sheet, consistent with current operating lease accounting. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. ASU 2016-02 will be effective for interim and annual periods beginning after December 15, 2018 (January 1, 2019 for the Company). The new standard currently requires a modified retrospective transition through a cumulative-effect adjustment as of the beginning of the earliest period presented in the financial statements, although the FASB recently approved an option for transition relief to not restate or make required disclosures under the new standard in comparative periods in the period of adoption. Along with that transition relief, the FASB also recently approved a practical expedient for lessors to allow for the combined presentation of lease and non-lease revenues when certain conditions are met. The Company’s adoption process of ASU 2016-02 is ongoing, including evaluating and quantifying the impact on its consolidated financial statements, identifying the population of leases (and embedded leases), implementing a selected technology solution and collecting and validating lease data. The Company expects its lease obligations designated as operating leases (as disclosed in Note 18 to the audited consolidated financial statements in its most recent Annual Report on Form 10-K) will be reported on the consolidated balance sheets upon adoption, and is currently evaluating the impact to its consolidated financial statements as it relates to other potential embedded lease arrangements of the business that have otherwise been previously disclosed as a contractual commitment. ASU No. 2017-04, Simplifying the Test for Goodwill Impairment (“ASU 2017-04”) In January 2017, the FASB issued ASU No. 2017-04 which eliminates step two from the goodwill impairment test. Under the new standard, to the extent the carrying amount of a reporting unit exceeds the fair value, the Company will record an impairment charge equal to the difference. The impairment charge recognized should not exceed the total amount of goodwill allocated to the reporting unit. ASU 2017-04 will be effective for interim and annual periods beginning after December 15, 2019 (January 1, 2020 for the Company). Early adoption is permitted for interim or annual goodwill impairment tests performed after January 1, 2017. The Company is currently in the process of evaluating the impact that the adoption of ASU 2017-04 will have on its consolidated financial statements. |
Consolidating Schedules (Notes)
Consolidating Schedules (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
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 “Charter Operating and Restricted Subsidiaries” column is presented to comply with the terms of the Credit Agreement. Comprehensive income equaled consolidated net income for the three months ended March 31, 2018 . Condensed consolidating financial statements as of March 31, 2018 and December 31, 2017 and for the three months ended March 31, 2018 and 2017 follow. CCO Holdings, LLC and Subsidiaries Condensed Consolidating Balance Sheets As of March 31, 2018 Guarantor Subsidiaries CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations CCO Holdings Consolidated ASSETS CURRENT ASSETS: Cash and cash equivalents $ — $ 291 $ — $ 291 Accounts receivable, net — 1,374 — 1,374 Receivables from related party 43 — (43 ) — Prepaid expenses and other current assets — 351 — 351 Total current assets 43 2,016 (43 ) 2,016 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 33,668 — 33,668 Customer relationships, net — 11,315 — 11,315 Franchises — 67,319 — 67,319 Goodwill — 29,554 — 29,554 Total investment in cable properties, net — 141,856 — 141,856 INVESTMENT IN SUBSIDIARIES 81,694 — (81,694 ) — LOANS RECEIVABLE – RELATED PARTY 526 — (526 ) — OTHER NONCURRENT ASSETS — 1,353 — 1,353 Total assets $ 82,263 $ 145,225 $ (82,263 ) $ 145,225 LIABILITIES AND MEMBER’S EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 278 $ 7,179 $ — $ 7,457 Payables to related party — 472 (43 ) 429 Current portion of long-term debt — 3,340 — 3,340 Total current liabilities 278 10,991 (43 ) 11,226 LONG-TERM DEBT 18,713 48,896 — 67,609 LOANS PAYABLE – RELATED PARTY — 1,437 (526 ) 911 DEFERRED INCOME TAXES — 32 — 32 OTHER LONG-TERM LIABILITIES — 2,152 — 2,152 MEMBER’S EQUITY Controlling interest 63,272 81,694 (81,694 ) 63,272 Noncontrolling interests — 23 — 23 Total member’s equity 63,272 81,717 (81,694 ) 63,295 Total liabilities and member’s equity $ 82,263 $ 145,225 $ (82,263 ) $ 145,225 CCO Holdings, LLC and Subsidiaries Condensed Consolidating Balance Sheets As of December 31, 2017 Guarantor Subsidiaries CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations CCO Holdings Consolidated ASSETS CURRENT ASSETS: Cash and cash equivalents $ — $ 330 $ — $ 330 Accounts receivable, net — 1,611 — 1,611 Receivables from related party 55 — (55 ) — Prepaid expenses and other current assets — 243 — 243 Total current assets 55 2,184 (55 ) 2,184 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 33,552 — 33,552 Customer relationships, net — 11,951 — 11,951 Franchises — 67,319 — 67,319 Goodwill — 29,554 — 29,554 Total investment in cable properties, net — 142,376 — 142,376 INVESTMENT IN SUBSIDIARIES 81,980 — (81,980 ) — LOANS RECEIVABLE – RELATED PARTY 511 — (511 ) — OTHER NONCURRENT ASSETS — 1,133 — 1,133 Total assets $ 82,546 $ 145,693 $ (82,546 ) $ 145,693 LIABILITIES AND MEMBER’S EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 280 $ 7,861 $ — $ 8,141 Payables to related party — 690 (55 ) 635 Current portion of long-term debt — 2,045 — 2,045 Total current liabilities 280 10,596 (55 ) 10,821 LONG-TERM DEBT 18,708 49,478 — 68,186 LOANS PAYABLE – RELATED PARTY — 1,399 (511 ) 888 DEFERRED INCOME TAXES — 32 — 32 OTHER LONG-TERM LIABILITIES — 2,184 — 2,184 MEMBER’S EQUITY Controlling interest 63,558 81,980 (81,980 ) 63,558 Noncontrolling interests — 24 — 24 Total member’s equity 63,558 82,004 (81,980 ) 63,582 Total liabilities and member’s equity $ 82,546 $ 145,693 $ (82,546 ) $ 145,693 CCO Holdings, LLC and Subsidiaries Condensed Consolidating Statements of Operations For the three months ended March 31, 2018 Guarantor Subsidiaries CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations CCO Holdings Consolidated REVENUES $ — $ 10,653 $ — $ 10,653 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) — 6,842 — 6,842 Depreciation and amortization — 2,707 — 2,707 Other operating expenses, net — 65 — 65 — 9,614 — 9,614 Income from operations — 1,039 — 1,039 OTHER INCOME (EXPENSES): Interest expense, net (254 ) (604 ) — (858 ) Gain on financial instruments, net — 63 — 63 Other income, net — 18 — 18 Equity in income of subsidiaries 518 — (518 ) — 264 (523 ) (518 ) (777 ) Income before income taxes 264 516 (518 ) 262 INCOME TAX BENEFIT — 2 — 2 Net income $ 264 $ 518 $ (518 ) $ 264 CCO Holdings, LLC and Subsidiaries Condensed Consolidating Statements of Operations For the three months ended March 31, 2017 Guarantor Subsidiaries CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations CCO Holdings Consolidated REVENUES $ — $ 10,164 $ — $ 10,164 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) — 6,584 — 6,584 Depreciation and amortization — 2,548 — 2,548 Other operating expenses, net — 94 — 94 — 9,226 — 9,226 Income from operations — 938 — 938 OTHER INCOME (EXPENSES): Interest expense, net (190 ) (529 ) — (719 ) Loss on extinguishment of debt (33 ) (1 ) — (34 ) Gain on financial instruments, net — 38 — 38 Other income, net — 13 — 13 Equity in income of subsidiaries 440 — (440 ) — 217 (479 ) (440 ) (702 ) Income before income taxes 217 459 (440 ) 236 INCOME TAX EXPENSE — (19 ) — (19 ) Consolidated net income $ 217 $ 440 $ (440 ) $ 217 CCO Holdings, LLC and Subsidiaries Condensed Consolidating Statements of Comprehensive Income For the three months ended March 31, 2017 Guarantor Subsidiaries CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations CCO Holdings Consolidated Consolidated net income $ 217 $ 440 $ (440 ) $ 217 Net impact of interest rate derivative instruments 1 1 (1 ) 1 Consolidated comprehensive income $ 218 $ 441 $ (441 ) $ 218 CCO Holdings, LLC and Subsidiaries Condensed Consolidating Statements of Cash Flows For the three months ended March 31, 2018 Guarantor Subsidiaries CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations CCO Holdings Consolidated NET CASH FLOWS FROM OPERATING ACTIVITIES $ (254 ) $ 2,890 $ — $ 2,636 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — (2,183 ) — (2,183 ) Change in accrued expenses related to capital expenditures — (565 ) — (565 ) Contributions to subsidiaries (72 ) — 72 — Distributions from subsidiaries 1,001 — (1,001 ) — Other, net — 10 — 10 Net cash flows from investing activities 929 (2,738 ) (929 ) (2,738 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — 2,929 — 2,929 Repayments of long-term debt — (2,185 ) — (2,185 ) Repayments loans payable - related parties — (2 ) — (2 ) Distributions to noncontrolling interest — (1 ) — (1 ) Contributions from parent 72 72 (72 ) 72 Distributions to parent (747 ) (1,001 ) 1,001 (747 ) Other, net — (3 ) — (3 ) Net cash flows from financing activities (675 ) (191 ) 929 63 NET DECREASE IN CASH AND CASH EQUIVALENTS — (39 ) — (39 ) CASH AND CASH EQUIVALENTS, beginning of period — 330 — 330 CASH AND CASH EQUIVALENTS, end of period $ — $ 291 $ — $ 291 CCO Holdings, LLC and Subsidiaries Condensed Consolidating Statements of Cash Flows For the three months ended March 31, 2017 Guarantor Subsidiaries CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations CCO Holdings Consolidated NET CASH FLOWS FROM OPERATING ACTIVITIES $ (204 ) $ 2,868 $ — $ 2,664 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — (1,555 ) — (1,555 ) Change in accrued expenses related to capital expenditures — (150 ) — (150 ) Distributions from subsidiaries 737 — (737 ) — Other, net — (7 ) — (7 ) Net cash flows from investing activities 737 (1,712 ) (737 ) (1,712 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt 1,990 2,650 — 4,640 Repayments of long-term debt (775 ) (2,700 ) — (3,475 ) Borrowings loans payable - related parties — 178 — 178 Payments for debt issuance costs (20 ) (1 ) — (21 ) Distributions to parent (856 ) (737 ) 737 (856 ) Other, net — (2 ) — (2 ) Net cash flows from financing activities 339 (612 ) 737 464 NET INCREASE IN CASH AND CASH EQUIVALENTS 872 544 — 1,416 CASH AND CASH EQUIVALENTS, beginning of period — 1,324 — 1,324 CASH AND CASH EQUIVALENTS, end of period $ 872 $ 1,868 $ — $ 2,740 |
Accounting for Derivative Ins23
Accounting for Derivative Instruments and Hedging Activities (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
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 Othe24
Franchises, Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Franchises, Goodwill and Other Intangible Assets [Abstract] | |
Indefinite-lived and Finite-lived Intangible Assets | Indefinite-lived and finite-lived intangible assets consist of the following as of March 31, 2018 and December 31, 2017 : March 31, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Indefinite-lived intangible assets: Franchises $ 67,319 $ — $ 67,319 $ 67,319 $ — $ 67,319 Goodwill 29,554 — 29,554 29,554 — 29,554 $ 96,873 $ — $ 96,873 $ 96,873 $ — $ 96,873 Finite-lived intangible assets: Customer relationships $ 18,229 $ (6,914 ) $ 11,315 $ 18,229 $ (6,278 ) $ 11,951 Other intangible assets 341 (63 ) 278 731 (201 ) 530 $ 18,570 $ (6,977 ) $ 11,593 $ 18,960 $ (6,479 ) $ 12,481 |
Expected Future Amortization Expense | The Company expects amortization expense on its finite-lived intangible assets will be as follows: Nine months ended December 31, 2018 $ 1,776 2019 2,146 2020 1,864 2021 1,589 2022 1,319 Thereafter 2,899 $ 11,593 |
Accounts Payable and Accrued 25
Accounts Payable and Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consist of the following as of March 31, 2018 and December 31, 2017 : March 31, 2018 December 31, 2017 Accounts payable – trade $ 575 $ 673 Deferred revenue 472 395 Accrued liabilities: Programming costs 2,070 1,907 Labor 635 747 Capital expenditures 1,363 1,935 Interest 985 1,054 Taxes and regulatory fees 504 548 Other 853 882 $ 7,457 $ 8,141 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt Summary | Long-term debt consists of the following as of March 31, 2018 and December 31, 2017 : March 31, 2018 December 31, 2017 Principal Amount Accreted Value Principal Amount Accreted Value CCO Holdings, LLC: 5.250% senior notes due March 15, 2021 $ 500 $ 497 $ 500 $ 497 5.250% senior notes due September 30, 2022 1,250 1,235 1,250 1,235 5.125% senior notes due February 15, 2023 1,000 993 1,000 993 4.000% senior notes due March 1, 2023 500 496 500 495 5.125% senior notes due May 1, 2023 1,150 1,143 1,150 1,143 5.750% senior notes due September 1, 2023 500 496 500 496 5.750% senior notes due January 15, 2024 1,000 992 1,000 992 5.875% senior notes due April 1, 2024 1,700 1,687 1,700 1,687 5.375% senior notes due May 1, 2025 750 745 750 745 5.750% senior notes due February 15, 2026 2,500 2,465 2,500 2,464 5.500% senior notes due May 1, 2026 1,500 1,489 1,500 1,489 5.875% senior notes due May 1, 2027 800 795 800 794 5.125% senior notes due May 1, 2027 3,250 3,217 3,250 3,216 5.000% senior notes due February 1, 2028 2,500 2,463 2,500 2,462 Charter Communications Operating, LLC: 3.579% senior notes due July 23, 2020 2,000 1,989 2,000 1,988 4.464% senior notes due July 23, 2022 3,000 2,979 3,000 2,977 4.908% senior notes due July 23, 2025 4,500 4,463 4,500 4,462 3.750% senior notes due February 15, 2028 1,000 985 1,000 985 4.200% senior notes due March 15, 2028 1,250 1,238 1,250 1,238 6.384% senior notes due October 23, 2035 2,000 1,981 2,000 1,981 6.484% senior notes due October 23, 2045 3,500 3,466 3,500 3,466 5.375% senior notes due May 1, 2047 2,500 2,506 2,500 2,506 6.834% senior notes due October 23, 2055 500 495 500 495 Credit facilities 10,223 10,135 9,479 9,387 Time Warner Cable, LLC: 6.750% senior notes due July 1, 2018 2,000 2,023 2,000 2,045 8.750% senior notes due February 14, 2019 1,250 1,317 1,250 1,337 8.250% senior notes due April 1, 2019 2,000 2,119 2,000 2,148 5.000% senior notes due February 1, 2020 1,500 1,569 1,500 1,579 4.125% senior notes due February 15, 2021 700 728 700 730 4.000% senior notes due September 1, 2021 1,000 1,042 1,000 1,045 5.750% sterling senior notes due June 2, 2031 (a) 876 945 845 912 6.550% senior debentures due May 1, 2037 1,500 1,685 1,500 1,686 7.300% senior debentures due July 1, 2038 1,500 1,786 1,500 1,788 6.750% senior debentures due June 15, 2039 1,500 1,723 1,500 1,724 5.875% senior debentures due November 15, 2040 1,200 1,257 1,200 1,258 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) 912 879 879 847 4.500% senior debentures due September 15, 2042 1,250 1,138 1,250 1,137 Time Warner Cable Enterprises LLC: 8.375% senior debentures due March 15, 2023 1,000 1,222 1,000 1,232 8.375% senior debentures due July 15, 2033 1,000 1,308 1,000 1,312 Total debt 69,811 70,949 69,003 70,231 Less current portion: 6.750% senior notes due July 1, 2018 (2,000 ) (2,023 ) (2,000 ) (2,045 ) 8.750% senior notes due February 14, 2019 (1,250 ) (1,317 ) — — Long-term debt $ 66,561 $ 67,609 $ 67,003 $ 68,186 (a) Principal amount includes £625 million valued at $876 million and $845 million as of March 31, 2018 and December 31, 2017 , respectively, using the exchange rate at the respective dates. (b) Principal amount includes £650 million valued at $912 million and $879 million as of March 31, 2018 and December 31, 2017 , respectively, using the exchange rate at the respective dates. |
Accounting for Derivative Ins27
Accounting for Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 2017 Gain on Financial Instruments, Net: Change in fair value of cross-currency derivative instruments $ 128 $ 65 Foreign currency remeasurement of Sterling Notes to U.S. dollars (65 ) (28 ) Other, net — 1 $ 63 $ 38 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Measurements [Abstract] | |
Fair Value of Assets and Liabilities Measured on a Recurring Basis | Financial instruments accounted for at fair value on a recurring basis are presented in the table below. March 31, 2018 December 31, 2017 Level 2 Level 2 Assets Cross-currency derivative instruments $ 103 $ — Liabilities Cross-currency derivative instruments $ — $ 25 |
Carrying Value and Fair Value of Debt | A summary of the carrying value and fair value of debt as of March 31, 2018 and December 31, 2017 is as follows: March 31, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Senior notes and debentures $ 60,814 $ 61,350 $ 60,844 $ 63,443 Credit facilities $ 10,135 $ 10,235 $ 9,387 $ 9,440 |
Operating Costs and Expenses (T
Operating Costs and Expenses (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 2017 Programming $ 2,752 $ 2,604 Regulatory, connectivity and produced content 533 498 Costs to service customers 1,855 1,801 Marketing 751 765 Mobile 8 — Other 943 916 $ 6,842 $ 6,584 |
Other Operating Expenses, Net30
Other Operating Expenses, Net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 2017 Merger and restructuring costs $ 48 $ 95 Special charges, net 24 2 Gain on sale of assets, net (7 ) (3 ) $ 65 $ 94 |
Accrued Merger and Restructuring Costs by Type of Cost | Changes in accruals for merger and restructuring costs are presented below: Employee Retention Costs Employee Termination Costs Transaction and Advisory Costs Other Costs Total Liability, December 31, 2016 $ 7 $ 244 $ 25 $ — $ 276 Costs incurred 4 226 4 68 302 Cash paid (10 ) (298 ) (12 ) (60 ) (380 ) Remaining liability, December 31, 2017 1 172 17 8 198 Costs incurred — 37 — 6 43 Cash paid — (90 ) — — (90 ) Remaining liability, March 31, 2018 $ 1 $ 119 $ 17 $ 14 $ 151 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Stock Compensation Plans [Abstract] | |
Equity Award Grants | Charter granted the following equity awards for the periods presented. Three Months Ended March 31, 2018 2017 Stock options 1,429,800 1,102,600 Restricted stock — — Restricted stock units 483,700 268,200 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Employee Benefit Plans [Abstract] | |
Net Periodic Pension Benefit | The components of net periodic pension benefit for the three months ended March 31, 2018 and 2017 are recorded in other income (expense), net in the consolidated statements of operations and consisted of the following: Three Months Ended March 31, 2018 2017 Interest cost $ 32 $ 34 Expected return on plan assets (52 ) (47 ) Net periodic pension benefit $ (20 ) $ (13 ) |
Recently Issued Accounting St33
Recently Issued Accounting Standards (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Recently Issued Accounting Standards [Abstract] | |
Schedule of revenues by product line | The Company’s revenues by product line are as follows: Three Months Ended March 31, 2018 2017 Video $ 4,297 $ 4,079 Internet 3,708 3,398 Voice 556 694 Residential revenue 8,561 8,171 Small and medium business 937 900 Enterprise 579 539 Commercial revenue 1,516 1,439 Advertising sales 356 337 Other 220 217 $ 10,653 $ 10,164 |
Consolidating Schedules (Tables
Consolidating Schedules (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Consolidating Schedules [Abstract] | |
Consolidating Schedules | Condensed consolidating financial statements as of March 31, 2018 and December 31, 2017 and for the three months ended March 31, 2018 and 2017 follow. CCO Holdings, LLC and Subsidiaries Condensed Consolidating Balance Sheets As of March 31, 2018 Guarantor Subsidiaries CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations CCO Holdings Consolidated ASSETS CURRENT ASSETS: Cash and cash equivalents $ — $ 291 $ — $ 291 Accounts receivable, net — 1,374 — 1,374 Receivables from related party 43 — (43 ) — Prepaid expenses and other current assets — 351 — 351 Total current assets 43 2,016 (43 ) 2,016 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 33,668 — 33,668 Customer relationships, net — 11,315 — 11,315 Franchises — 67,319 — 67,319 Goodwill — 29,554 — 29,554 Total investment in cable properties, net — 141,856 — 141,856 INVESTMENT IN SUBSIDIARIES 81,694 — (81,694 ) — LOANS RECEIVABLE – RELATED PARTY 526 — (526 ) — OTHER NONCURRENT ASSETS — 1,353 — 1,353 Total assets $ 82,263 $ 145,225 $ (82,263 ) $ 145,225 LIABILITIES AND MEMBER’S EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 278 $ 7,179 $ — $ 7,457 Payables to related party — 472 (43 ) 429 Current portion of long-term debt — 3,340 — 3,340 Total current liabilities 278 10,991 (43 ) 11,226 LONG-TERM DEBT 18,713 48,896 — 67,609 LOANS PAYABLE – RELATED PARTY — 1,437 (526 ) 911 DEFERRED INCOME TAXES — 32 — 32 OTHER LONG-TERM LIABILITIES — 2,152 — 2,152 MEMBER’S EQUITY Controlling interest 63,272 81,694 (81,694 ) 63,272 Noncontrolling interests — 23 — 23 Total member’s equity 63,272 81,717 (81,694 ) 63,295 Total liabilities and member’s equity $ 82,263 $ 145,225 $ (82,263 ) $ 145,225 CCO Holdings, LLC and Subsidiaries Condensed Consolidating Balance Sheets As of December 31, 2017 Guarantor Subsidiaries CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations CCO Holdings Consolidated ASSETS CURRENT ASSETS: Cash and cash equivalents $ — $ 330 $ — $ 330 Accounts receivable, net — 1,611 — 1,611 Receivables from related party 55 — (55 ) — Prepaid expenses and other current assets — 243 — 243 Total current assets 55 2,184 (55 ) 2,184 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 33,552 — 33,552 Customer relationships, net — 11,951 — 11,951 Franchises — 67,319 — 67,319 Goodwill — 29,554 — 29,554 Total investment in cable properties, net — 142,376 — 142,376 INVESTMENT IN SUBSIDIARIES 81,980 — (81,980 ) — LOANS RECEIVABLE – RELATED PARTY 511 — (511 ) — OTHER NONCURRENT ASSETS — 1,133 — 1,133 Total assets $ 82,546 $ 145,693 $ (82,546 ) $ 145,693 LIABILITIES AND MEMBER’S EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 280 $ 7,861 $ — $ 8,141 Payables to related party — 690 (55 ) 635 Current portion of long-term debt — 2,045 — 2,045 Total current liabilities 280 10,596 (55 ) 10,821 LONG-TERM DEBT 18,708 49,478 — 68,186 LOANS PAYABLE – RELATED PARTY — 1,399 (511 ) 888 DEFERRED INCOME TAXES — 32 — 32 OTHER LONG-TERM LIABILITIES — 2,184 — 2,184 MEMBER’S EQUITY Controlling interest 63,558 81,980 (81,980 ) 63,558 Noncontrolling interests — 24 — 24 Total member’s equity 63,558 82,004 (81,980 ) 63,582 Total liabilities and member’s equity $ 82,546 $ 145,693 $ (82,546 ) $ 145,693 CCO Holdings, LLC and Subsidiaries Condensed Consolidating Statements of Operations For the three months ended March 31, 2018 Guarantor Subsidiaries CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations CCO Holdings Consolidated REVENUES $ — $ 10,653 $ — $ 10,653 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) — 6,842 — 6,842 Depreciation and amortization — 2,707 — 2,707 Other operating expenses, net — 65 — 65 — 9,614 — 9,614 Income from operations — 1,039 — 1,039 OTHER INCOME (EXPENSES): Interest expense, net (254 ) (604 ) — (858 ) Gain on financial instruments, net — 63 — 63 Other income, net — 18 — 18 Equity in income of subsidiaries 518 — (518 ) — 264 (523 ) (518 ) (777 ) Income before income taxes 264 516 (518 ) 262 INCOME TAX BENEFIT — 2 — 2 Net income $ 264 $ 518 $ (518 ) $ 264 CCO Holdings, LLC and Subsidiaries Condensed Consolidating Statements of Operations For the three months ended March 31, 2017 Guarantor Subsidiaries CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations CCO Holdings Consolidated REVENUES $ — $ 10,164 $ — $ 10,164 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) — 6,584 — 6,584 Depreciation and amortization — 2,548 — 2,548 Other operating expenses, net — 94 — 94 — 9,226 — 9,226 Income from operations — 938 — 938 OTHER INCOME (EXPENSES): Interest expense, net (190 ) (529 ) — (719 ) Loss on extinguishment of debt (33 ) (1 ) — (34 ) Gain on financial instruments, net — 38 — 38 Other income, net — 13 — 13 Equity in income of subsidiaries 440 — (440 ) — 217 (479 ) (440 ) (702 ) Income before income taxes 217 459 (440 ) 236 INCOME TAX EXPENSE — (19 ) — (19 ) Consolidated net income $ 217 $ 440 $ (440 ) $ 217 CCO Holdings, LLC and Subsidiaries Condensed Consolidating Statements of Comprehensive Income For the three months ended March 31, 2017 Guarantor Subsidiaries CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations CCO Holdings Consolidated Consolidated net income $ 217 $ 440 $ (440 ) $ 217 Net impact of interest rate derivative instruments 1 1 (1 ) 1 Consolidated comprehensive income $ 218 $ 441 $ (441 ) $ 218 CCO Holdings, LLC and Subsidiaries Condensed Consolidating Statements of Cash Flows For the three months ended March 31, 2018 Guarantor Subsidiaries CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations CCO Holdings Consolidated NET CASH FLOWS FROM OPERATING ACTIVITIES $ (254 ) $ 2,890 $ — $ 2,636 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — (2,183 ) — (2,183 ) Change in accrued expenses related to capital expenditures — (565 ) — (565 ) Contributions to subsidiaries (72 ) — 72 — Distributions from subsidiaries 1,001 — (1,001 ) — Other, net — 10 — 10 Net cash flows from investing activities 929 (2,738 ) (929 ) (2,738 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — 2,929 — 2,929 Repayments of long-term debt — (2,185 ) — (2,185 ) Repayments loans payable - related parties — (2 ) — (2 ) Distributions to noncontrolling interest — (1 ) — (1 ) Contributions from parent 72 72 (72 ) 72 Distributions to parent (747 ) (1,001 ) 1,001 (747 ) Other, net — (3 ) — (3 ) Net cash flows from financing activities (675 ) (191 ) 929 63 NET DECREASE IN CASH AND CASH EQUIVALENTS — (39 ) — (39 ) CASH AND CASH EQUIVALENTS, beginning of period — 330 — 330 CASH AND CASH EQUIVALENTS, end of period $ — $ 291 $ — $ 291 CCO Holdings, LLC and Subsidiaries Condensed Consolidating Statements of Cash Flows For the three months ended March 31, 2017 Guarantor Subsidiaries CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations CCO Holdings Consolidated NET CASH FLOWS FROM OPERATING ACTIVITIES $ (204 ) $ 2,868 $ — $ 2,664 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — (1,555 ) — (1,555 ) Change in accrued expenses related to capital expenditures — (150 ) — (150 ) Distributions from subsidiaries 737 — (737 ) — Other, net — (7 ) — (7 ) Net cash flows from investing activities 737 (1,712 ) (737 ) (1,712 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt 1,990 2,650 — 4,640 Repayments of long-term debt (775 ) (2,700 ) — (3,475 ) Borrowings loans payable - related parties — 178 — 178 Payments for debt issuance costs (20 ) (1 ) — (21 ) Distributions to parent (856 ) (737 ) 737 (856 ) Other, net — (2 ) — (2 ) Net cash flows from financing activities 339 (612 ) 737 464 NET INCREASE IN CASH AND CASH EQUIVALENTS 872 544 — 1,416 CASH AND CASH EQUIVALENTS, beginning of period — 1,324 — 1,324 CASH AND CASH EQUIVALENTS, end of period $ 872 $ 1,868 $ — $ 2,740 |
Organization and Basis of Pre35
Organization and Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2018 | |
Organization and Basis of Presentation [Abstract] | |
Number of reportable segments | 1 |
Franchises, Goodwill and Othe36
Franchises, Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Indefinite-lived Intangible Assets: | |||
Goodwill | $ 29,554 | $ 29,554 | |
Indefinite-lived intangible assets and goodwill | 96,873 | 96,873 | |
Finite-lived Intangible Assets: | |||
Gross carrying amount | 18,570 | 18,960 | |
Accumulated Amortization | (6,977) | (6,479) | |
Net Carrying Amount | 11,593 | 12,481 | |
Amortization expense | 645 | $ 726 | |
Nine months ended December 31, 2018 | 1,776 | ||
2,019 | 2,146 | ||
2,020 | 1,864 | ||
2,021 | 1,589 | ||
2,022 | 1,319 | ||
Thereafter | 2,899 | ||
Franchises [Member] | |||
Indefinite-lived Intangible Assets: | |||
Indefinite-lived intangible assets | 67,319 | 67,319 | |
Customer Relationships [Member] | |||
Finite-lived Intangible Assets: | |||
Gross carrying amount | 18,229 | 18,229 | |
Accumulated Amortization | (6,914) | (6,278) | |
Net Carrying Amount | 11,315 | 11,951 | |
Other Intangible Assets [Member] | |||
Finite-lived Intangible Assets: | |||
Gross carrying amount | 341 | 731 | |
Accumulated Amortization | (63) | (201) | |
Net Carrying Amount | $ 278 | $ 530 |
Accounts Payable and Accrued 37
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Accounts payable - trade | $ 575 | $ 673 |
Deferred revenue | 472 | 395 |
Accrued liabilities: | ||
Programming costs | 2,070 | 1,907 |
Labor | 635 | 747 |
Capital expenditures | 1,363 | 1,935 |
Interest | 985 | 1,054 |
Taxes and regulatory fees | 504 | 548 |
Other | 853 | 882 |
Total accounts payable and accrued liabilities | $ 7,457 | $ 8,141 |
Long-Term Debt (Details)
Long-Term Debt (Details) £ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | ||||
Apr. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2018GBP (£) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Long-term Debt: | ||||||
Principal amount | $ 69,811 | $ 69,003 | ||||
Accreted value | 70,949 | 70,231 | ||||
Accreted value, current portion | (3,340) | (2,045) | ||||
Principal amount, noncurrent portion | 66,561 | 67,003 | ||||
Accreted value, noncurrent portion | 67,609 | 68,186 | ||||
Loss on extinguishment of debt | $ 0 | $ 34 | ||||
Credit Facilities [Member] | ||||||
Long-term Debt: | ||||||
Accreted value | 10,135 | 9,387 | ||||
CCO Holdings [Member] | ||||||
Long-term Debt: | ||||||
Accreted value, current portion | 0 | 0 | ||||
Accreted value, noncurrent portion | 18,713 | 18,708 | ||||
Debt Instrument, Repurchased Face Amount | 2,750 | |||||
Loss on extinguishment of debt | $ 33 | |||||
CCO Holdings [Member] | 5.250% Senior Notes Due March 15, 2021 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | 500 | 500 | ||||
Accreted value | $ 497 | 497 | ||||
Stated interest rate (percentage) | 5.25% | 5.25% | ||||
CCO Holdings [Member] | 5.250% Senior Notes Due September 30, 2022 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 1,250 | 1,250 | ||||
Accreted value | $ 1,235 | 1,235 | ||||
Stated interest rate (percentage) | 5.25% | 5.25% | ||||
CCO Holdings [Member] | 5.125% Senior Notes Due February 15, 2023 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 1,000 | 1,000 | ||||
Accreted value | $ 993 | 993 | ||||
Stated interest rate (percentage) | 5.125% | 5.125% | ||||
CCO Holdings [Member] | 4.000% Senior Notes Due March 1, 2023 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 500 | 500 | ||||
Accreted value | $ 496 | 495 | ||||
Stated interest rate (percentage) | 4.00% | 4.00% | ||||
CCO Holdings [Member] | 5.125% Senior Notes Due May 1, 2023 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 1,150 | 1,150 | ||||
Accreted value | $ 1,143 | 1,143 | ||||
Stated interest rate (percentage) | 5.125% | 5.125% | ||||
CCO Holdings [Member] | 5.750% Senior Notes Due September 1, 2023 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 500 | 500 | ||||
Accreted value | $ 496 | 496 | ||||
Stated interest rate (percentage) | 5.75% | 5.75% | ||||
CCO Holdings [Member] | 5.750% Senior Notes Due January 15, 2024 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 1,000 | 1,000 | ||||
Accreted value | $ 992 | 992 | ||||
Stated interest rate (percentage) | 5.75% | 5.75% | ||||
CCO Holdings [Member] | 5.875% Senior Notes Due April 1, 2024 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 1,700 | 1,700 | ||||
Accreted value | $ 1,687 | 1,687 | ||||
Stated interest rate (percentage) | 5.875% | 5.875% | ||||
CCO Holdings [Member] | 5.375% Senior Notes Due May 1, 2025 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 750 | 750 | ||||
Accreted value | $ 745 | 745 | ||||
Stated interest rate (percentage) | 5.375% | 5.375% | ||||
CCO Holdings [Member] | 5.750% Senior Notes Due February 15, 2026 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 2,500 | 2,500 | ||||
Accreted value | $ 2,465 | 2,464 | ||||
Stated interest rate (percentage) | 5.75% | 5.75% | ||||
CCO Holdings [Member] | 5.500% Senior Notes Due May 1, 2026 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 1,500 | 1,500 | ||||
Accreted value | $ 1,489 | 1,489 | ||||
Stated interest rate (percentage) | 5.50% | 5.50% | ||||
CCO Holdings [Member] | 5.875% Senior Notes Due May 1, 2027 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 800 | 800 | ||||
Accreted value | $ 795 | 794 | ||||
Stated interest rate (percentage) | 5.875% | 5.875% | ||||
CCO Holdings [Member] | 5.125% Senior Notes Due May 1, 2027 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 3,250 | 3,250 | ||||
Accreted value | $ 3,217 | 3,216 | ||||
Stated interest rate (percentage) | 5.125% | 5.125% | ||||
CCO Holdings [Member] | 5.000% Senior Notes Due February 1, 2028 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 2,500 | 2,500 | ||||
Accreted value | $ 2,463 | 2,462 | ||||
Stated interest rate (percentage) | 5.00% | 5.00% | ||||
CCO Holdings [Member] | 5.125% Senior Notes Due May 1, 2027 issued in March 2017 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 2,000 | |||||
Charter Operating [Member] | ||||||
Long-term Debt: | ||||||
Loss on extinguishment of debt | $ 1 | |||||
Charter Operating [Member] | 3.579% Senior Notes Due July 23, 2020 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | 2,000 | 2,000 | ||||
Accreted value | $ 1,989 | 1,988 | ||||
Stated interest rate (percentage) | 3.579% | 3.579% | ||||
Charter Operating [Member] | 4.464% Senior Notes Due July 23, 2022 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 3,000 | 3,000 | ||||
Accreted value | $ 2,979 | 2,977 | ||||
Stated interest rate (percentage) | 4.464% | 4.464% | ||||
Charter Operating [Member] | 4.908% Senior Notes Due July 23, 2025 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 4,500 | 4,500 | ||||
Accreted value | $ 4,463 | 4,462 | ||||
Stated interest rate (percentage) | 4.908% | 4.908% | ||||
Charter Operating [Member] | 3.750% Senior Notes Due February 15, 2028 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 1,000 | 1,000 | ||||
Accreted value | $ 985 | 985 | ||||
Stated interest rate (percentage) | 3.75% | 3.75% | ||||
Charter Operating [Member] | 4.200% Senior Notes Due March 15, 2028 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 1,250 | 1,250 | ||||
Accreted value | $ 1,238 | 1,238 | ||||
Stated interest rate (percentage) | 4.20% | 4.20% | ||||
Charter Operating [Member] | 6.384% Senior Notes Due October 23, 2035 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 2,000 | 2,000 | ||||
Accreted value | $ 1,981 | 1,981 | ||||
Stated interest rate (percentage) | 6.384% | 6.384% | ||||
Charter Operating [Member] | 6.484% Senior Notes Due October 23, 2045 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 3,500 | 3,500 | ||||
Accreted value | $ 3,466 | 3,466 | ||||
Stated interest rate (percentage) | 6.484% | 6.484% | ||||
Charter Operating [Member] | 5.375% Senior Notes Due May 1, 2047 [Member] | ||||||
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 [Member] | 6.834% Senior Notes Due October 23, 2055 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 500 | 500 | ||||
Accreted value | $ 495 | 495 | ||||
Stated interest rate (percentage) | 6.834% | 6.834% | ||||
Charter Operating [Member] | Credit Facilities [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 10,223 | 9,479 | ||||
Accreted value | 10,135 | 9,387 | ||||
Charter Operating [Member] | Revolving Credit Facility [Member] | ||||||
Long-term Debt: | ||||||
Availability under credit facilities | 2,800 | |||||
Time Warner Cable [Member] | 6.750% Senior Notes Due July 1, 2018 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | 2,000 | 2,000 | ||||
Accreted value | 2,023 | 2,045 | ||||
Principal amount, current portion | (2,000) | (2,000) | ||||
Accreted value, current portion | $ (2,023) | (2,045) | ||||
Stated interest rate (percentage) | 6.75% | 6.75% | ||||
Time Warner Cable [Member] | 8.750% Senior Notes Due February 14, 2019 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 1,250 | 1,250 | ||||
Accreted value | 1,317 | 1,337 | ||||
Principal amount, current portion | (1,250) | 0 | ||||
Accreted value, current portion | $ (1,317) | 0 | ||||
Stated interest rate (percentage) | 8.75% | 8.75% | ||||
Time Warner Cable [Member] | 8.250% Senior Notes Due April 1, 2019 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 2,000 | 2,000 | ||||
Accreted value | $ 2,119 | 2,148 | ||||
Stated interest rate (percentage) | 8.25% | 8.25% | ||||
Time Warner Cable [Member] | 5.000% Senior Notes Due February 1, 2020 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 1,500 | 1,500 | ||||
Accreted value | $ 1,569 | 1,579 | ||||
Stated interest rate (percentage) | 5.00% | 5.00% | ||||
Time Warner Cable [Member] | 4.125% Senior Notes Due February 15, 2021 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 700 | 700 | ||||
Accreted value | $ 728 | 730 | ||||
Stated interest rate (percentage) | 4.125% | 4.125% | ||||
Time Warner Cable [Member] | 4.000% Senior Notes Due September 1, 2021 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 1,000 | 1,000 | ||||
Accreted value | $ 1,042 | 1,045 | ||||
Stated interest rate (percentage) | 4.00% | 4.00% | ||||
Time Warner Cable [Member] | 5.750% Sterling Senior Notes Due June 2, 2031 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | £ 625 | $ 876 | 845 | |||
Accreted value | $ 945 | 912 | ||||
Stated interest rate (percentage) | 5.75% | 5.75% | ||||
Time Warner Cable [Member] | 6.550% Senior Debentures Due May 1, 2037 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 1,500 | 1,500 | ||||
Accreted value | $ 1,685 | 1,686 | ||||
Stated interest rate (percentage) | 6.55% | 6.55% | ||||
Time Warner Cable [Member] | 7.300% Senior Debentures Due July 1, 2038 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 1,500 | 1,500 | ||||
Accreted value | $ 1,786 | 1,788 | ||||
Stated interest rate (percentage) | 7.30% | 7.30% | ||||
Time Warner Cable [Member] | 6.750% Senior Debentures Due June 15, 2039 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 1,500 | 1,500 | ||||
Accreted value | $ 1,723 | 1,724 | ||||
Stated interest rate (percentage) | 6.75% | 6.75% | ||||
Time Warner Cable [Member] | 5.875% Senior Debentures Due November 15, 2040 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 1,200 | 1,200 | ||||
Accreted value | $ 1,257 | 1,258 | ||||
Stated interest rate (percentage) | 5.875% | 5.875% | ||||
Time Warner Cable [Member] | 5.500% Senior Debentures Due September 1, 2041 [Member] | ||||||
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 [Member] | 5.250% Sterling Senior Notes Due July 15, 2042 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | £ 650 | $ 912 | 879 | |||
Accreted value | $ 879 | 847 | ||||
Stated interest rate (percentage) | 5.25% | 5.25% | ||||
Time Warner Cable [Member] | 4.500% Senior Debentures Due September 15, 2042 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 1,250 | 1,250 | ||||
Accreted value | $ 1,138 | 1,137 | ||||
Stated interest rate (percentage) | 4.50% | 4.50% | ||||
Time Warner Cable Enterprises [Member] | 8.375% Senior Debentures Due March 15, 2023 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 1,000 | 1,000 | ||||
Accreted value | $ 1,222 | 1,232 | ||||
Stated interest rate (percentage) | 8.375% | 8.375% | ||||
Time Warner Cable Enterprises [Member] | 8.375% Senior Debentures Due July 15, 2033 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 1,000 | 1,000 | ||||
Accreted value | $ 1,308 | $ 1,312 | ||||
Stated interest rate (percentage) | 8.375% | 8.375% | ||||
Subsequent Event [Member] | Charter Operating [Member] | 5.375% Senior Notes Due April 1, 2038 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 800 | |||||
Stated interest rate (percentage) | 5.375% | |||||
Debt instrument issue price (percentage) | 98.846% | |||||
Subsequent Event [Member] | Charter Operating [Member] | 5.750% Senior Notes due April 1, 2048 [Member] | ||||||
Long-term Debt: | ||||||
Principal amount | $ 1,700 | |||||
Stated interest rate (percentage) | 5.75% | |||||
Debt instrument issue price (percentage) | 99.706% |
Loans Payable - Related Party39
Loans Payable - Related Party Loans Payable - Related Party (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | ||
LOANS PAYABLE - RELATED PARTY | $ 911 | $ 888 |
Debt Instrument, Basis Spread on Variable Rate | 1.50% | 1.75% |
Charter Holdco [Member] | ||
Related Party Transaction [Line Items] | ||
LOANS PAYABLE - RELATED PARTY | $ 674 | $ 655 |
Charter [Member] | ||
Related Party Transaction [Line Items] | ||
LOANS PAYABLE - RELATED PARTY | $ 237 | $ 233 |
Accounting for Derivative Ins40
Accounting for Derivative Instruments and Hedging Activities (Details) £ in Millions, $ in Millions | 3 Months Ended | ||||
Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2018GBP (£) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Gain on financial instruments, net: | |||||
Change in fair value of cross-currency derivative instruments | $ 128 | $ 65 | |||
Foreign currency remeasurement of Sterling Notes to U.S. dollars | (65) | (28) | |||
Other, net | 0 | 1 | |||
Gain on financial instruments, net | $ 63 | $ 38 | |||
Cross Currency Derivatives [Member] | |||||
Derivatives: | |||||
Notional amount | £ | £ 1,275 | ||||
Collateral holiday agreement, percentage of position covered | 80.00% | 80.00% | |||
Collateral holiday agreement, term | 3 years | ||||
Other Noncurrent Assets [Member] | Cross Currency Derivatives [Member] | |||||
Derivatives: | |||||
Asset position cross-currency derivative instruments | $ 103 | ||||
Other Noncurrent Liabilities [Member] | Cross Currency Derivatives [Member] | |||||
Derivatives: | |||||
Liability position cross-currency derivative instruments | $ 25 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Fair Value Measurements: | |||
Debt, carrying value | $ 70,949 | $ 70,231 | |
Asset impairment charges | 0 | $ 0 | |
Senior Notes and Debentures [Member] | |||
Fair Value Measurements: | |||
Debt, fair value | 61,350 | 63,443 | |
Debt, carrying value | 60,814 | 60,844 | |
Credit Facilities [Member] | |||
Fair Value Measurements: | |||
Debt, fair value | 10,235 | 9,440 | |
Debt, carrying value | 10,135 | 9,387 | |
Cross Currency Derivatives [Member] | Level 2 [Member] | |||
Fair Value Measurements: | |||
Asset position derivative instruments, fair value | 103 | 0 | |
Liability position derivative instruments, fair value | $ 0 | $ 25 |
Operating Costs and Expenses (D
Operating Costs and Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Costs and Expenses [Abstract] | ||
Programming | $ 2,752 | $ 2,604 |
Regulatory, connectivity and produced content | 533 | 498 |
Costs to service customers | 1,855 | 1,801 |
Marketing | 751 | 765 |
Mobile | 8 | 0 |
Other | 943 | 916 |
Operating costs and expenses (exclusive of items shown separately in the consolidated statements of operations) | $ 6,842 | $ 6,584 |
Other Operating Expenses, Net43
Other Operating Expenses, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Other Operating Expenses, Net [Abstract] | |||
Merger and restructuring costs | $ 48 | $ 95 | |
Special charges, net | 24 | 2 | |
Gain on sale of assets, net | (7) | (3) | |
Other operating expenses, net | 65 | 94 | |
Merger And Restructuring Costs [Roll Forward] | |||
Accrued merger and restructuring costs, beginning of period | 198 | 276 | $ 276 |
Costs incurred | 43 | 302 | |
Cash paid | (90) | (380) | |
Accrued merger and restructuring costs, end of period | 151 | 198 | |
Stock compensation expense recognized in merger costs | 5 | 17 | |
Obligation charge arising from a withdrawal liability from a multi-employer pension plan | 22 | ||
Employee Retention Costs [Member] | |||
Merger And Restructuring Costs [Roll Forward] | |||
Accrued merger and restructuring costs, beginning of period | 1 | 7 | 7 |
Costs incurred | 0 | 4 | |
Cash paid | 0 | (10) | |
Accrued merger and restructuring costs, end of period | 1 | 1 | |
Employee Termination Costs [Member] | |||
Merger And Restructuring Costs [Roll Forward] | |||
Accrued merger and restructuring costs, beginning of period | 172 | 244 | 244 |
Costs incurred | 37 | 226 | |
Cash paid | (90) | (298) | |
Accrued merger and restructuring costs, end of period | 119 | 172 | |
Transaction and Advisory Costs [Member] | |||
Merger And Restructuring Costs [Roll Forward] | |||
Accrued merger and restructuring costs, beginning of period | 17 | 25 | 25 |
Costs incurred | 0 | 4 | |
Cash paid | 0 | (12) | |
Accrued merger and restructuring costs, end of period | 17 | 17 | |
Other Costs [Member] | |||
Merger And Restructuring Costs [Roll Forward] | |||
Accrued merger and restructuring costs, beginning of period | 8 | $ 0 | 0 |
Costs incurred | 6 | 68 | |
Cash paid | 0 | (60) | |
Accrued merger and restructuring costs, end of period | $ 14 | $ 8 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
Income tax benefit (expense) | $ 2 | $ (19) | |
Unrecognized Tax Benefits | $ 125 | $ 134 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Related Party Transaction [Line Items] | ||
Dr. John Malone's voting interest in Liberty Interactive Corp. (percentage) | 37.50% | |
Cash payments received from HSN, Inc. and QVC, Inc. | $ 16 | $ 17 |
Dr. John Malone's voting interest in Discovery Communications, Inc. for election of directors (percentage) | 28.00% | |
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 | 24.20% | |
Dr. John Malone's ownership percentage in Starz (percentage) | 5.50% | |
Dr. John Malone's voting interest in Starz (percentage) | 7.90% | |
Maximum [Member] | ||
Related Party Transaction [Line Items] | ||
Carrying value of noncontrolling interst purchased | $ 400 | |
Percent of total operating costs and expenses paid to Discovery Communications, Inc. and Starz (percentage) | 3.00% | 3.00% |
Equity Method Investee [Member] | ||
Related Party Transaction [Line Items] | ||
Payments to related parties | $ 63 | $ 68 |
Class B Common Stock [Member] | ||
Related Party Transaction [Line Items] | ||
Dr. John Malone's ownership percentage in Discovery Communications, Inc. (percentage) | 93.60% | |
Common Class C [Member] | ||
Related Party Transaction [Line Items] | ||
Dr. John Malone's ownership percentage in Discovery Communications, Inc. (percentage) | 6.00% |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2017 | Mar. 31, 2017 | |
Commitments and Contingencies [Abstract] | ||
Loss Contingency, Damages Sought, Value | $ 6 | $ 140 |
Stock Compensation Plans (Detai
Stock Compensation Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Stock Compensation Plans: | ||
Stock compensation expense | $ 72 | $ 69 |
Stock compensation expense recognized in merger costs | $ 5 | $ 17 |
Stock Option [Member] | ||
Stock Compensation Plans: | ||
Stock options granted in period (shares) | 1,429,800 | 1,102,600 |
Award expiration period | 10 years | |
Unrecognized compensation cost | $ 309 | |
Remaining period over which to recognize unrecognized compensation expense | 3 years | |
Restricted Stock [Member] | ||
Stock Compensation Plans: | ||
Awards other than stock options granted in period (shares) | 0 | 0 |
Unrecognized compensation cost | $ 0.2 | |
Remaining period over which to recognize unrecognized compensation expense | 1 month | |
Restricted Stock Units [Member] | ||
Stock Compensation Plans: | ||
Awards other than stock options granted in period (shares) | 483,700 | 268,200 |
Unrecognized compensation cost | $ 301 | |
Remaining period over which to recognize unrecognized compensation expense | 2 years | |
Minimum [Member] | Restricted Stock [Member] | ||
Stock Compensation Plans: | ||
Award vesting period | 1 year | |
Maximum [Member] | Stock Option [Member] | ||
Stock Compensation Plans: | ||
Award vesting period | 3 years | |
Maximum [Member] | Restricted Stock Units [Member] | ||
Stock Compensation Plans: | ||
Award vesting period | 3 years | |
Legacy TWC Awards Converted May 2016 [Member] | Restricted Stock Units [Member] | ||
Stock Compensation Plans: | ||
Award vesting percentage | 50.00% |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Employee Benefit Plans [Abstract] | ||
Interest cost | $ 32 | $ 34 |
Expected return on plan assets | (52) | (47) |
Net periodic pension benefit | $ (20) | $ (13) |
Recently Issued Accounting St49
Recently Issued Accounting Standards Recently Issued Accounting Standards (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2015 | |
Product Information [Line Items] | |||
REVENUES | $ 10,653 | $ 10,164 | |
New Accounting Pronouncement, Effect of Adoption on Noncurrent Assets | 120 | ||
New Accounting Pronouncement, Effect of Adoption on Accounts Payable and Accrued Liabilities | 71 | ||
New Accounting Pronouncement, Effect of Adoption on Deferred Income Taxes | 11 | ||
New Accounting Pronouncement, Effect of Adoption on Total Shareholders' Equity | 38 | ||
Governmental imposed fees passed through to the customer | 246 | 235 | |
Customer prepayments - account payable and accrued liabilities | 386 | ||
Upfront installation fees - account payable and accrued liabilities | 86 | ||
Long-term deferred revenue liabilities - other long-term liabilities | 33 | ||
Deferred enterprise commission costs - noncurrent asset | 127 | ||
Deferred upfront MDU fees - noncurrent asset | 247 | ||
Amortization expense of deferred upfront MDU fees | 15 | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 22,300 | ||
Residential Video Product Line [Member] | |||
Product Information [Line Items] | |||
REVENUES | 4,297 | 4,079 | |
Residential Internet Product Line [Member] | |||
Product Information [Line Items] | |||
REVENUES | 3,708 | 3,398 | |
Residential Voice Product Line [Member] | |||
Product Information [Line Items] | |||
REVENUES | 556 | 694 | |
Residential Product Line [Member] | |||
Product Information [Line Items] | |||
REVENUES | 8,561 | 8,171 | |
Commercial Small and Medium Business Product Line [Member] | |||
Product Information [Line Items] | |||
REVENUES | 937 | 900 | |
Commercial Enterprise Product Line [Member] | |||
Product Information [Line Items] | |||
REVENUES | 579 | 539 | |
Commercial Product Line [Member] | |||
Product Information [Line Items] | |||
REVENUES | 1,516 | 1,439 | |
Advertising sales [Member] | |||
Product Information [Line Items] | |||
REVENUES | 356 | 337 | |
Other services [Member] | |||
Product Information [Line Items] | |||
REVENUES | $ 220 | $ 217 |
Condensed Consolidating Balance
Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||||
Cash and cash equivalents | $ 291 | $ 330 | $ 2,740 | $ 1,324 |
Accounts receivable, net | 1,374 | 1,611 | ||
Receivables from related party | 0 | 0 | ||
Prepaid expenses and other current assets | 351 | 243 | ||
Total current assets | 2,016 | 2,184 | ||
INVESTMENT IN CABLE PROPERTIES: | ||||
Property, plant and equipment, net | 33,668 | 33,552 | ||
Customer relationships, net | 11,315 | 11,951 | ||
Franchises | 67,319 | 67,319 | ||
Goodwill | 29,554 | 29,554 | ||
Total investment in cable properties, net | 141,856 | 142,376 | ||
INVESTMENT IN SUBSIDIARIES | 0 | 0 | ||
LOANS RECEIVABLE - RELATED PARTY | 0 | 0 | ||
OTHER NONCURRENT ASSETS | 1,353 | 1,133 | ||
Total assets | 145,225 | 145,693 | ||
CURRENT LIABILITIES: | ||||
Accounts payable and accrued liabilities | 7,457 | 8,141 | ||
Payables to related party | 429 | 635 | ||
Current portion of long-term debt | 3,340 | 2,045 | ||
Total current liabilities | 11,226 | 10,821 | ||
LONG-TERM DEBT | 67,609 | 68,186 | ||
LOANS PAYABLE - RELATED PARTY | 911 | 888 | ||
DEFERRED INCOME TAXES | 32 | 32 | ||
OTHER LONG-TERM LIABILITIES | 2,152 | 2,184 | ||
SHAREHOLDERS'/MEMBER'S EQUITY | ||||
Controlling interest | 63,272 | 63,558 | ||
Noncontrolling interests | 23 | 24 | ||
Total shareholders'/member's equity | 63,295 | 63,582 | ||
Total liabilities and shareholders'/member's equity | 145,225 | 145,693 | ||
Eliminations [Member] | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Receivables from related party | (43) | (55) | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | (43) | (55) | ||
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 | (81,694) | (81,980) | ||
LOANS RECEIVABLE - RELATED PARTY | (526) | (511) | ||
OTHER NONCURRENT ASSETS | 0 | 0 | ||
Total assets | (82,263) | (82,546) | ||
CURRENT LIABILITIES: | ||||
Accounts payable and accrued liabilities | 0 | 0 | ||
Payables to related party | (43) | (55) | ||
Current portion of long-term debt | 0 | 0 | ||
Total current liabilities | (43) | (55) | ||
LONG-TERM DEBT | 0 | 0 | ||
LOANS PAYABLE - RELATED PARTY | (526) | (511) | ||
DEFERRED INCOME TAXES | 0 | 0 | ||
OTHER LONG-TERM LIABILITIES | 0 | 0 | ||
SHAREHOLDERS'/MEMBER'S EQUITY | ||||
Controlling interest | (81,694) | (81,980) | ||
Noncontrolling interests | 0 | 0 | ||
Total shareholders'/member's equity | (81,694) | (81,980) | ||
Total liabilities and shareholders'/member's equity | (82,263) | (82,546) | ||
CCO Holdings [Member] | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 0 | 0 | 872 | 0 |
Accounts receivable, net | 0 | 0 | ||
Receivables from related party | 43 | 55 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | 43 | 55 | ||
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 | 81,694 | 81,980 | ||
LOANS RECEIVABLE - RELATED PARTY | 526 | 511 | ||
OTHER NONCURRENT ASSETS | 0 | 0 | ||
Total assets | 82,263 | 82,546 | ||
CURRENT LIABILITIES: | ||||
Accounts payable and accrued liabilities | 278 | 280 | ||
Payables to related party | 0 | 0 | ||
Current portion of long-term debt | 0 | 0 | ||
Total current liabilities | 278 | 280 | ||
LONG-TERM DEBT | 18,713 | 18,708 | ||
LOANS PAYABLE - RELATED PARTY | 0 | 0 | ||
DEFERRED INCOME TAXES | 0 | 0 | ||
OTHER LONG-TERM LIABILITIES | 0 | 0 | ||
SHAREHOLDERS'/MEMBER'S EQUITY | ||||
Controlling interest | 63,272 | 63,558 | ||
Noncontrolling interests | 0 | 0 | ||
Total shareholders'/member's equity | 63,272 | 63,558 | ||
Total liabilities and shareholders'/member's equity | 82,263 | 82,546 | ||
Charter Operating and Restricted Subsidiaries [Member] | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 291 | 330 | $ 1,868 | $ 1,324 |
Accounts receivable, net | 1,374 | 1,611 | ||
Receivables from related party | 0 | 0 | ||
Prepaid expenses and other current assets | 351 | 243 | ||
Total current assets | 2,016 | 2,184 | ||
INVESTMENT IN CABLE PROPERTIES: | ||||
Property, plant and equipment, net | 33,668 | 33,552 | ||
Customer relationships, net | 11,315 | 11,951 | ||
Franchises | 67,319 | 67,319 | ||
Goodwill | 29,554 | 29,554 | ||
Total investment in cable properties, net | 141,856 | 142,376 | ||
INVESTMENT IN SUBSIDIARIES | 0 | 0 | ||
LOANS RECEIVABLE - RELATED PARTY | 0 | 0 | ||
OTHER NONCURRENT ASSETS | 1,353 | 1,133 | ||
Total assets | 145,225 | 145,693 | ||
CURRENT LIABILITIES: | ||||
Accounts payable and accrued liabilities | 7,179 | 7,861 | ||
Payables to related party | 472 | 690 | ||
Current portion of long-term debt | 3,340 | 2,045 | ||
Total current liabilities | 10,991 | 10,596 | ||
LONG-TERM DEBT | 48,896 | 49,478 | ||
LOANS PAYABLE - RELATED PARTY | 1,437 | 1,399 | ||
DEFERRED INCOME TAXES | 32 | 32 | ||
OTHER LONG-TERM LIABILITIES | 2,152 | 2,184 | ||
SHAREHOLDERS'/MEMBER'S EQUITY | ||||
Controlling interest | 81,694 | 81,980 | ||
Noncontrolling interests | 23 | 24 | ||
Total shareholders'/member's equity | 81,717 | 82,004 | ||
Total liabilities and shareholders'/member's equity | $ 145,225 | $ 145,693 |
Condensed Consolidating Stateme
Condensed Consolidating Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Condensed Consolidating Statements of Operations | ||
REVENUES | $ 10,653 | $ 10,164 |
COSTS AND EXPENSES: | ||
Operating costs and expenses (exclusive of items shown separately below) | 6,842 | 6,584 |
Depreciation and amortization | 2,707 | 2,548 |
Other operating expenses, net | 65 | 94 |
Total costs and expenses | 9,614 | 9,226 |
Income from operations | 1,039 | 938 |
OTHER INCOME (EXPENSES): | ||
Interest income (expense), net | (858) | (719) |
Loss on extinguishment of debt | 0 | (34) |
Gain on financial instruments, net | 63 | 38 |
Other income (expense), net | 18 | 13 |
Equity in income of subsidiaries | 0 | 0 |
Total other income (expense) | (777) | (702) |
Income before income taxes | 262 | 236 |
Income tax benefit (expense) | 2 | (19) |
Consolidated net income | 264 | 217 |
Eliminations [Member] | ||
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 expenses, net | 0 | 0 |
Total costs and expenses | 0 | 0 |
Income from operations | 0 | 0 |
OTHER INCOME (EXPENSES): | ||
Interest income (expense), net | 0 | 0 |
Loss on extinguishment of debt | 0 | |
Gain on financial instruments, net | 0 | 0 |
Other income (expense), net | 0 | 0 |
Equity in income of subsidiaries | (518) | (440) |
Total other income (expense) | (518) | (440) |
Income before income taxes | (518) | (440) |
Income tax benefit (expense) | 0 | 0 |
Consolidated net income | (518) | (440) |
CCO Holdings [Member] | ||
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 expenses, net | 0 | 0 |
Total costs and expenses | 0 | 0 |
Income from operations | 0 | 0 |
OTHER INCOME (EXPENSES): | ||
Interest income (expense), net | (254) | (190) |
Loss on extinguishment of debt | (33) | |
Gain on financial instruments, net | 0 | 0 |
Other income (expense), net | 0 | 0 |
Equity in income of subsidiaries | 518 | 440 |
Total other income (expense) | 264 | 217 |
Income before income taxes | 264 | 217 |
Income tax benefit (expense) | 0 | 0 |
Consolidated net income | 264 | 217 |
Charter Operating and Restricted Subsidiaries [Member] | ||
Condensed Consolidating Statements of Operations | ||
REVENUES | 10,653 | 10,164 |
COSTS AND EXPENSES: | ||
Operating costs and expenses (exclusive of items shown separately below) | 6,842 | 6,584 |
Depreciation and amortization | 2,707 | 2,548 |
Other operating expenses, net | 65 | 94 |
Total costs and expenses | 9,614 | 9,226 |
Income from operations | 1,039 | 938 |
OTHER INCOME (EXPENSES): | ||
Interest income (expense), net | (604) | (529) |
Loss on extinguishment of debt | (1) | |
Gain on financial instruments, net | 63 | 38 |
Other income (expense), net | 18 | 13 |
Equity in income of subsidiaries | 0 | 0 |
Total other income (expense) | (523) | (479) |
Income before income taxes | 516 | 459 |
Income tax benefit (expense) | 2 | (19) |
Consolidated net income | $ 518 | $ 440 |
Condensed Consolidating State52
Condensed Consolidating Statements of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Condensed Consolidating Statements of Comprehensive Income (Loss) | ||
Consolidated net income | $ 264 | $ 217 |
Net impact of interest rate derivative instruments | 0 | 1 |
Consolidated comprehensive income | 264 | 218 |
Eliminations [Member] | ||
Condensed Consolidating Statements of Comprehensive Income (Loss) | ||
Consolidated net income | (518) | (440) |
Net impact of interest rate derivative instruments | (1) | |
Consolidated comprehensive income | (441) | |
CCO Holdings [Member] | ||
Condensed Consolidating Statements of Comprehensive Income (Loss) | ||
Consolidated net income | 264 | 217 |
Net impact of interest rate derivative instruments | 1 | |
Consolidated comprehensive income | 218 | |
Charter Operating and Restricted Subsidiaries [Member] | ||
Condensed Consolidating Statements of Comprehensive Income (Loss) | ||
Consolidated net income | $ 518 | 440 |
Net impact of interest rate derivative instruments | 1 | |
Consolidated comprehensive income | $ 441 |
Condensed Consolidating State53
Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Condensed Consolidating Statements of Cash Flows | ||
Net cash flows from operating activities | $ 2,636 | $ 2,664 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (2,183) | (1,555) |
Change in accrued expenses related to capital expenditures | (565) | (150) |
Contributions to subsidiaries | 0 | |
Distributions from subsidiaries | 0 | 0 |
Other, net | 10 | (7) |
Net cash flows from investing activities | (2,738) | (1,712) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 2,929 | 4,640 |
Repayments of long-term debt | (2,185) | (3,475) |
Borrowings (repayments) loans payable - related parties | (2) | 178 |
Payments for debt issuance costs | 0 | (21) |
Distributions to noncontrolling interest | (1) | 0 |
Contributions from parent | 72 | 0 |
Distributions to parent | (747) | (856) |
Other, net | (3) | (2) |
Net cash flows from financing activities | 63 | 464 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (39) | 1,416 |
CASH AND CASH EQUIVALENTS, beginning of period | 330 | 1,324 |
CASH AND CASH EQUIVALENTS, end of period | 291 | 2,740 |
Eliminations [Member] | ||
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 | 0 |
Change in accrued expenses related to capital expenditures | 0 | 0 |
Contributions to subsidiaries | 72 | |
Distributions from subsidiaries | (1,001) | (737) |
Other, net | 0 | 0 |
Net cash flows from investing activities | (929) | (737) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 0 | 0 |
Repayments of long-term debt | 0 | 0 |
Borrowings (repayments) loans payable - related parties | 0 | 0 |
Payments for debt issuance costs | 0 | |
Distributions to noncontrolling interest | 0 | |
Contributions from parent | (72) | |
Distributions to parent | 1,001 | 737 |
Other, net | 0 | 0 |
Net cash flows from financing activities | 929 | 737 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 0 | 0 |
CASH AND CASH EQUIVALENTS, beginning of period | 0 | 0 |
CASH AND CASH EQUIVALENTS, end of period | 0 | 0 |
CCO Holdings [Member] | ||
Condensed Consolidating Statements of Cash Flows | ||
Net cash flows from operating activities | (254) | (204) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | 0 | 0 |
Change in accrued expenses related to capital expenditures | 0 | 0 |
Contributions to subsidiaries | (72) | |
Distributions from subsidiaries | 1,001 | 737 |
Other, net | 0 | 0 |
Net cash flows from investing activities | 929 | 737 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 0 | 1,990 |
Repayments of long-term debt | 0 | (775) |
Borrowings (repayments) loans payable - related parties | 0 | 0 |
Payments for debt issuance costs | (20) | |
Distributions to noncontrolling interest | 0 | |
Contributions from parent | 72 | |
Distributions to parent | (747) | (856) |
Other, net | 0 | 0 |
Net cash flows from financing activities | (675) | 339 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 0 | 872 |
CASH AND CASH EQUIVALENTS, beginning of period | 0 | 0 |
CASH AND CASH EQUIVALENTS, end of period | 0 | 872 |
Charter Operating and Restricted Subsidiaries [Member] | ||
Condensed Consolidating Statements of Cash Flows | ||
Net cash flows from operating activities | 2,890 | 2,868 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (2,183) | (1,555) |
Change in accrued expenses related to capital expenditures | (565) | (150) |
Contributions to subsidiaries | 0 | |
Distributions from subsidiaries | 0 | 0 |
Other, net | 10 | (7) |
Net cash flows from investing activities | (2,738) | (1,712) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 2,929 | 2,650 |
Repayments of long-term debt | (2,185) | (2,700) |
Borrowings (repayments) loans payable - related parties | (2) | 178 |
Payments for debt issuance costs | (1) | |
Distributions to noncontrolling interest | (1) | |
Contributions from parent | 72 | |
Distributions to parent | (1,001) | (737) |
Other, net | (3) | (2) |
Net cash flows from financing activities | (191) | (612) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (39) | 544 |
CASH AND CASH EQUIVALENTS, beginning of period | 330 | 1,324 |
CASH AND CASH EQUIVALENTS, end of period | $ 291 | $ 1,868 |