Document And Entity Information
Document And Entity Information | 3 Months Ended |
Mar. 31, 2022shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2022 |
Document Transition Report | false |
Entity File Number | 001-37789 |
Entity Registrant Name | CCO Holdings, LLC |
Entity Central Index Key | 0001271833 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 86-1067239 |
Entity Address, Address Line One | 400 Washington Blvd. |
Entity Address, City or Town | Stamford |
Entity Address, State or Province | CT |
Entity Address, Postal Zip Code | 06902 |
City Area Code | 203 |
Local Phone Number | 905-7801 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 1 |
CCO Holdings Capital Corp. | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2022 |
Document Transition Report | false |
Entity File Number | 333-112593-01 |
Entity Registrant Name | CCO Holdings Capital Corp. |
Entity Central Index Key | 0001271834 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 20-0257904 |
Entity Address, Address Line One | 400 Washington Blvd. |
Entity Address, City or Town | Stamford |
Entity Address, State or Province | CT |
Entity Address, Postal Zip Code | 06902 |
City Area Code | 203 |
Local Phone Number | 905-7801 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 2,142 | $ 321 |
Accounts receivable, less allowance for doubtful accounts of $161 and $157, respectively | 2,483 | 2,539 |
Receivables from related party | 37 | 0 |
Prepaid expenses and other current assets | 492 | 341 |
Total current assets | 5,154 | 3,201 |
INVESTMENT IN CABLE PROPERTIES: | ||
Property, plant and equipment, net of accumulated depreciation of $34,791 and $34,108, respectively | 33,260 | 33,327 |
Customer relationships, net of accumulated amortization of $14,542 and $14,180, respectively | 3,699 | 4,060 |
Franchises | 67,347 | 67,346 |
Goodwill | 29,563 | 29,562 |
Total investment in cable properties, net | 133,869 | 134,295 |
OTHER NONCURRENT ASSETS | 3,209 | 3,215 |
Total assets | 142,232 | 140,711 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued liabilities | 8,438 | 8,771 |
Payables to related party | 0 | 1 |
Current portion of long-term debt | 4,543 | 2,997 |
Total current liabilities | 12,981 | 11,769 |
LONG-TERM DEBT | 90,679 | 88,564 |
LOANS PAYABLE - RELATED PARTY | 1,044 | 1,027 |
DEFERRED INCOME TAXES | 57 | 57 |
OTHER LONG-TERM LIABILITIES | 3,083 | 3,067 |
MEMBER’S EQUITY: | ||
CCO Holdings member's equity | 34,365 | 36,203 |
Noncontrolling interests | 23 | 24 |
Total member’s equity | 34,388 | 36,227 |
Total liabilities and member’s equity | $ 142,232 | $ 140,711 |
CONSOLIDATED BALANCE SHEET (PAR
CONSOLIDATED BALANCE SHEET (PARENTHETICALS) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
CURRENT ASSETS: | ||
Allowance for doubtful accounts | $ 161 | $ 157 |
INVESTMENT IN CABLE PROPERTIES: | ||
Property, plant and equipment, accumulated depreciation | 34,791 | 34,108 |
Customer relationships, accumulated amortization | $ 14,542 | $ 14,180 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
REVENUES | $ 13,198 | $ 12,519 |
COSTS AND EXPENSES: | ||
Operating costs and expenses (exclusive of items shown separately below) | 8,158 | 7,731 |
Depreciation and amortization | 2,286 | 2,436 |
Other operating expenses, net | 3 | 304 |
Total costs and expenses | 10,447 | 10,471 |
Income from operations | 2,751 | 2,048 |
OTHER INCOME (EXPENSES): | ||
Interest expense, net | (1,053) | (981) |
Other income, net | 24 | 42 |
Total other income (expenses), net | (1,029) | (939) |
Income before income taxes | 1,722 | 1,109 |
Income tax expense | (13) | (10) |
Consolidated net income | $ 1,709 | $ 1,099 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN MEMBER'S EQUITY - USD ($) $ in Millions | Total | CCO Holdings Member’s Equity | Noncontrolling Interests |
Balance at Dec. 31, 2020 | $ 47,208 | $ 47,185 | $ 23 |
Rollforward of Consolidated Member's Equity: | |||
Consolidated net income | 1,099 | 1,099 | 0 |
Stock compensation expense | 134 | 134 | 0 |
Distributions to parent | (4,244) | (4,244) | 0 |
Distributions to noncontrolling interest | (1) | 0 | (1) |
Balance at Mar. 31, 2021 | 44,196 | 44,174 | 22 |
Balance at Dec. 31, 2021 | 36,227 | 36,203 | 24 |
Rollforward of Consolidated Member's Equity: | |||
Consolidated net income | 1,709 | 1,709 | 0 |
Stock compensation expense | 147 | 147 | 0 |
Contributions from parent | 81 | 81 | 0 |
Distributions to parent | (3,775) | (3,775) | 0 |
Distributions to noncontrolling interest | (1) | 0 | (1) |
Balance at Mar. 31, 2022 | $ 34,388 | $ 34,365 | $ 23 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Consolidated net income | $ 1,709 | $ 1,099 |
Adjustments to reconcile consolidated net income to net cash flows from operating activities: | ||
Depreciation and amortization | 2,286 | 2,436 |
Stock compensation expense | 147 | 134 |
Noncash interest income, net | (7) | (9) |
Other, net | (24) | 5 |
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: | ||
Accounts receivable | 56 | 151 |
Prepaid expenses and other assets | (169) | (167) |
Accounts payable, accrued liabilities and other | (342) | 87 |
Receivables from and payables to related party | (12) | (4) |
Net cash flows from operating activities | 3,644 | 3,732 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (1,857) | (1,821) |
Change in accrued expenses related to capital expenditures | 10 | (75) |
Other, net | (4) | 53 |
Net cash flows from investing activities | (1,851) | (1,843) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 6,713 | 5,289 |
Repayments of long-term debt | (2,954) | (3,164) |
Borrowings of loans payable - related parties | 0 | 48 |
Payments for debt issuance costs | (37) | (22) |
Distributions to parent | (3,775) | (4,244) |
Contributions from parent | 81 | 0 |
Distributions to noncontrolling interest | (1) | (1) |
Other, net | 1 | 14 |
Net cash flows from financing activities | 28 | (2,080) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,821 | (191) |
CASH AND CASH EQUIVALENTS, beginning of period | 321 | 710 |
CASH AND CASH EQUIVALENTS, end of period | 2,142 | 519 |
CASH PAID FOR INTEREST | 975 | 1,012 |
CASH PAID FOR TAXES | $ 2 | $ 2 |
Organization and Basis of Prese
Organization and Basis of Presentation (Notes) | 3 Months Ended |
Mar. 31, 2022 | |
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 a leading broadband connectivity company and cable operator. Over an advanced high-capacity, two-way telecommunications network, the Company offers a full range of state-of-the-art residential and business services including Spectrum Internet ® , TV, Mobile and Voice. For small and medium-sized companies, Spectrum Business ® delivers the same suite of broadband products and services coupled with special features and applications to enhance productivity, while for larger businesses and government entities, Spectrum Enterprise provides highly customized, fiber-based solutions. Spectrum Reach ® delivers tailored advertising and production for the modern media landscape. The Company also distributes award-winning news coverage, sports and high-quality original programming to its customers through Spectrum Networks and Spectrum Originals. 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, which is an indirect subsidiary of Charter Communications, Inc. (“Charter”), Charter Communications Holdings, LLC (“Charter Holdings”) and Spectrum Management Holding Company, LLC (“Spectrum Management”). All of the outstanding capital stock of CCO Holdings Capital Corp. is owned by CCO Holdings. 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. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, certain information and footnote disclosures typically included in the Company's Annual Report on Form 10-K have been condensed or omitted for this quarterly report. The accompanying consolidated financial statements are unaudited and are subject to review by regulatory authorities. However, in the opinion of management, such financial statements include all adjustments, which consist of only normal recurring adjustments, necessary for a fair presentation of the results for the periods presented. Interim results are not necessarily indicative of results for a full year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Areas involving significant judgments and estimates include capitalization of labor and overhead costs and pension benefits. Actual results could differ from those estimates. Comprehensive income equaled consolidated net income for the three months ended March 31, 2022 and 2021. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities (Notes) | 3 Months Ended |
Mar. 31, 2022 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities consist of the following as of March 31, 2022 and December 31, 2021: March 31, 2022 December 31, 2021 Accounts payable – trade $ 679 $ 706 Deferred revenue 478 458 Accrued liabilities: Programming costs 2,117 2,036 Labor 1,034 1,299 Capital expenditures 1,294 1,281 Interest 1,179 1,099 Taxes and regulatory fees 535 533 Operating lease liabilities 243 237 Other 879 1,122 $ 8,438 $ 8,771 |
Long-Term Debt (Notes)
Long-Term Debt (Notes) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt A summary of our debt as of March 31, 2022 and December 31, 2021 is as follows: March 31, 2022 December 31, 2021 Principal Amount Carrying Value Fair Value Principal Amount Carrying Value Fair Value Senior unsecured notes $ 25,150 $ 25,072 $ 23,755 $ 23,950 $ 23,882 $ 24,630 Senior secured notes and debentures (a) 59,975 60,398 60,198 56,525 57,011 64,346 Credit facilities (b) 9,804 9,752 9,741 10,723 10,668 10,665 $ 94,929 $ 95,222 $ 93,694 $ 91,198 $ 91,561 $ 99,641 (a) Includes the Company's £625 million and £650 million fixed-rate British pound sterling denominated notes (the “Sterling Notes”) remeasured using the exchange rate at the respective dates. (b) The Company has availability under the Charter Communications Operating, LLC ("Charter Operating") credit facilities of approximately $4.7 billion as of March 31, 2022. The estimated fair value of the Company’s senior unsecured and secured notes and debentures as of March 31, 2022 and December 31, 2021 is based on quoted market prices in active markets and is classified within Level 1 of the valuation hierarchy, while the estimated fair value of the Company’s credit facilities is based on quoted market prices in inactive markets and is classified within Level 2. In January 2022, CCO Holdings and CCO Holdings Capital Corp. jointly issued $1.2 billion of 4.750% senior unsecured notes due February 2032 at par. The net proceeds were used for general corporate purposes, including distributions to the Company's parent companies to fund buybacks of Charter Class A common stock and Charter Holdings common units, to repay certain indebtedness and to pay related fees and expenses. In March 2022, Charter Operating and Charter Communications Operating Capital Corp. jointly issued $1.0 billion aggregate principal amount of 4.400% senior secured notes due April 2033 at a price of 99.634% of the aggregate principal amount, $1.5 billion aggregate principal amount of 5.250% senior secured notes due April 2053 at a price of 99.300% of the aggregate principal amount and $1.0 billion aggregate principal amount of 5.500% senior secured notes due April 2063 at a price of 99.255% of the aggregate principal amount. The net proceeds were used for general corporate purposes, including distributions |
Loans Payable - Related Party (
Loans Payable - Related Party (Notes) | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Loans Payable - Related Party | Loans Payable - Related PartyLoans payable - related party as of March 31, 2022 and December 31, 2021 consists of loans from Charter Communications Holding Company, LLC (“Charter Holdco”) to Charter Operating of $753 million and $743 million, respectively, and loans from Charter to Charter Operating of $291 million and $284 million, respectively. Interest accrued at LIBOR plus 1.25% on the loans payable from Charter Holdco and LIBOR plus 2.00% on the loans payable from Charter during the periods ending March 31, 2022 and December 31, 2021. |
Accounting for Derivative Instr
Accounting for Derivative Instruments and Hedging Activities (Notes) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting for Derivative Instruments and Hedging Activities [Abstract] | |
Accounting for Derivative Instruments and Hedging Activities | Accounting for Derivative Instruments and Hedging Activities Cross-currency derivative instruments are used to manage foreign exchange risk on the Sterling Notes by effectively converting £1.275 billion aggregate principal amount of fixed-rate British pound sterling denominated debt, including annual interest payments and the payment of principal at maturity, to fixed-rate U.S. dollar denominated debt. The fair value of the Company's cross-currency derivatives, which are classified within Level 2 of the valuation hierarchy, was $326 million and $290 million and is included in other long-term liabilities on its consolidated balance sheets as of March 31, 2022 and December 31, 2021, respectively. The effect of financial instruments are recorded in other income, net in the consolidated statements of operations and consisted of the following. Three Months Ended March 31, 2022 2021 Change in fair value of cross-currency derivative instruments $ (36) $ 63 Foreign currency remeasurement of Sterling Notes to U.S. dollars 50 (15) Gain on financial instruments, net $ 14 $ 48 |
Revenue (Notes)
Revenue (Notes) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue [Abstract] | |
Revenue | Revenues The Company’s revenues by product line are as follows: Three Months Ended March 31, 2022 2021 Internet $ 5,452 $ 5,086 Video 4,346 4,344 Voice 391 399 Residential revenue 10,189 9,829 Small and medium business 1,059 1,012 Enterprise 661 638 Commercial revenue 1,720 1,650 Advertising sales 383 344 Mobile 690 492 Other 216 204 $ 13,198 $ 12,519 As of March 31, 2022 and December 31, 2021, accounts receivable, net on the consolidated balance sheets includes approximately $392 million and $391 million of current equipment installment plan receivables, respectively, and other noncurrent assets includes approximately $209 million and $189 million of noncurrent equipment installment plan receivables, respectively. |
Operating Costs and Expenses (N
Operating Costs and Expenses (Notes) | 3 Months Ended |
Mar. 31, 2022 | |
Operating Costs and Expenses [Abstract] | |
Operating Costs and Expenses | Operating Costs and Expenses Operating costs and expenses, exclusive of items shown separately in the consolidated statements of operations, consist of the following for the periods presented: Three Months Ended March 31, 2022 2021 Programming $ 2,977 $ 2,988 Regulatory, connectivity and produced content 556 600 Costs to service customers 1,899 1,804 Marketing 826 751 Mobile 760 572 Other 1,140 1,016 $ 8,158 $ 7,731 Programming costs consist primarily of costs paid to programmers for basic, premium, digital, video on demand and pay-per-view programming. Regulatory, connectivity and produced content costs represent payments to franchise and regulatory authorities, costs directly related to providing video, Internet and voice services as well as payments for sports, local and news content produced by the Company. Included in regulatory, connectivity and produced content costs is content acquisition costs for the Los Angeles Lakers’ basketball games and Los Angeles Dodgers’ baseball games, which are recorded as games are exhibited over the contract period. Costs to service customers include costs related to field operations, network operations and customer care for the Company’s residential and SMB customers, including internal and third-party labor for the non-capitalizable portion of installations, service and repairs, maintenance, bad debt expense, billing and collection, occupancy and vehicle costs. Marketing costs represent the costs of marketing to current and potential residential and commercial customers including labor costs. Mobile costs represent costs associated with the Company's mobile service such as device and service |
Other Operating Expenses, Net (
Other Operating Expenses, Net (Notes) | 3 Months Ended |
Mar. 31, 2022 | |
Other Income and Expenses [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, 2022 2021 Special charges, net $ 3 $ 257 Loss on disposal of assets, net — 47 $ 3 $ 304 Special charges, net Special charges, net primarily includes net amounts of litigation settlements, including the $220 million settlement with Sprint Communications Company L.P. (“Sprint”) and T-Mobile USA, Inc. ("T-Mobile") for the three months ended March 31, 2021 discussed in Note 11, and employee termination costs. Loss on disposal of assets, net |
Other Income, Net (Notes)
Other Income, Net (Notes) | 3 Months Ended |
Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other Expenses, Net | Other Income, Net Other income, net consist of the following for the periods presented: Three Months Ended March 31, 2022 2021 Loss on extinguishment of debt (see Note 3) $ — $ (29) Gain on financial instruments, net (see Note 5) 14 48 Net periodic pension benefits 17 18 Gain (loss) on equity investments, net (7) 5 $ 24 $ 42 |
Stock Compensation Plans (Notes
Stock Compensation Plans (Notes) | 3 Months Ended |
Mar. 31, 2022 | |
Stock Compensation Plans [Abstract] | |
Stock Compensation Plans | Stock Compensation Plans Charter’s stock incentive plans provide for grants of nonqualified stock options, incentive stock options, stock appreciation rights, dividend equivalent rights, performance units and performance shares, share awards, phantom stock, restricted stock units and restricted stock. Directors, officers and other employees of the Company and its subsidiaries, as well as others performing consulting services for the Company, are eligible for grants under the stock incentive plans. Charter granted the following equity awards for the periods presented. Three Months Ended March 31, 2022 2021 Stock options 1,372,400 1,225,000 Restricted stock units 423,600 345,100 Stock options and restricted stock units generally cliff vest three years from the date of grant. Stock options generally expire ten years from the grant date and restricted stock units have no voting rights. Restricted stock generally vests one year from the date of grant. As of March 31, 2022, total unrecognized compensation remaining to be recognized in future periods totaled $380 million for stock options, $0.2 million for restricted stock and $378 million for restricted stock units and the weighted average period over which they are expected to be recognized is two years for stock options, one month for restricted stock and two years for restricted stock units. |
Contingencies (Notes)
Contingencies (Notes) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Sprint filed a patent suit against Charter and Bright House Networks, LLC ("Bright House") on December 2, 2017 in the United States District Court for the District of Delaware. The Company brought a patent suit against Sprint (TC Tech, LLC v. Sprint) in the United States District Court for the District of Delaware implicating Sprint's LTE technology and a similar suit against T-Mobile in the United States District Court for the Western District of Texas. Sprint filed a subsequent patent suit against Charter on May 17, 2018. On February 18, 2020, Sprint filed a lawsuit against Charter, Bright House and Time Warner Cable Inc. in the United States District Court for the District of Kansas alleging that Charter misappropriated trade secrets from Sprint years ago through employees hired by Bright House. Charter, T-Mobile and Sprint have reached a settlement of all of the foregoing suits that resulted in a payment of $220 million in 2022 by Charter to T-Mobile, and all of the cases have been dismissed with prejudice. The Company and its parent companies are defendants or co-defendants in several lawsuits involving alleged infringement of various intellectual property relating to various aspects of their businesses. Other industry participants are also defendants in certain of these cases or related cases. In the event that a court ultimately determines that the Company infringes on any intellectual property, the Company may be subject to substantial damages and/or an injunction that could require the Company or its vendors to modify certain products and services the Company offers to its subscribers, as well as negotiate royalty or license agreements with respect to the intellectual property at issue. While the Company believes the lawsuits are without merit and intends to defend the actions vigorously, no assurance can be given that any adverse outcome would not be material to the Company’s consolidated financial condition, results of operations, or liquidity. The Company cannot predict the outcome of any such claims nor can it reasonably estimate a range of possible loss. The Company and its parent companies are party 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. |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consist of the following as of March 31, 2022 and December 31, 2021: March 31, 2022 December 31, 2021 Accounts payable – trade $ 679 $ 706 Deferred revenue 478 458 Accrued liabilities: Programming costs 2,117 2,036 Labor 1,034 1,299 Capital expenditures 1,294 1,281 Interest 1,179 1,099 Taxes and regulatory fees 535 533 Operating lease liabilities 243 237 Other 879 1,122 $ 8,438 $ 8,771 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt Summary | A summary of our debt as of March 31, 2022 and December 31, 2021 is as follows: March 31, 2022 December 31, 2021 Principal Amount Carrying Value Fair Value Principal Amount Carrying Value Fair Value Senior unsecured notes $ 25,150 $ 25,072 $ 23,755 $ 23,950 $ 23,882 $ 24,630 Senior secured notes and debentures (a) 59,975 60,398 60,198 56,525 57,011 64,346 Credit facilities (b) 9,804 9,752 9,741 10,723 10,668 10,665 $ 94,929 $ 95,222 $ 93,694 $ 91,198 $ 91,561 $ 99,641 (a) Includes the Company's £625 million and £650 million fixed-rate British pound sterling denominated notes (the “Sterling Notes”) remeasured using the exchange rate at the respective dates. |
Accounting for Derivative Ins_2
Accounting for Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting for Derivative Instruments and Hedging Activities [Abstract] | |
Income Statement Effects of Financial Instruments | The effect of financial instruments are recorded in other income, net in the consolidated statements of operations and consisted of the following. Three Months Ended March 31, 2022 2021 Change in fair value of cross-currency derivative instruments $ (36) $ 63 Foreign currency remeasurement of Sterling Notes to U.S. dollars 50 (15) Gain on financial instruments, net $ 14 $ 48 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue [Abstract] | |
Revenue | The Company’s revenues by product line are as follows: Three Months Ended March 31, 2022 2021 Internet $ 5,452 $ 5,086 Video 4,346 4,344 Voice 391 399 Residential revenue 10,189 9,829 Small and medium business 1,059 1,012 Enterprise 661 638 Commercial revenue 1,720 1,650 Advertising sales 383 344 Mobile 690 492 Other 216 204 $ 13,198 $ 12,519 |
Operating Costs and Expenses (T
Operating Costs and Expenses (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Operating Costs and Expenses [Abstract] | |
Operating Costs and Expenses | Operating costs and expenses, exclusive of items shown separately in the consolidated statements of operations, consist of the following for the periods presented: Three Months Ended March 31, 2022 2021 Programming $ 2,977 $ 2,988 Regulatory, connectivity and produced content 556 600 Costs to service customers 1,899 1,804 Marketing 826 751 Mobile 760 572 Other 1,140 1,016 $ 8,158 $ 7,731 |
Other Operating Expenses, Net_2
Other Operating Expenses, Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other Operating Expenses, Net | Other operating expenses, net consist of the following for the periods presented: Three Months Ended March 31, 2022 2021 Special charges, net $ 3 $ 257 Loss on disposal of assets, net — 47 $ 3 $ 304 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other Expenses, Net | Other income, net consist of the following for the periods presented: Three Months Ended March 31, 2022 2021 Loss on extinguishment of debt (see Note 3) $ — $ (29) Gain on financial instruments, net (see Note 5) 14 48 Net periodic pension benefits 17 18 Gain (loss) on equity investments, net (7) 5 $ 24 $ 42 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Stock Compensation Plans [Abstract] | |
Equity Award Grants | Charter granted the following equity awards for the periods presented. Three Months Ended March 31, 2022 2021 Stock options 1,372,400 1,225,000 Restricted stock units 423,600 345,100 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2022 | |
Organization and Basis of Presentation [Abstract] | |
Number of reportable segments | 1 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Accounts payable – trade | $ 679 | $ 706 |
Deferred revenue | 478 | 458 |
Accrued liabilities: | ||
Programming costs | 2,117 | 2,036 |
Labor | 1,034 | 1,299 |
Capital expenditures | 1,294 | 1,281 |
Interest | 1,179 | 1,099 |
Taxes and regulatory fees | 535 | 533 |
Operating lease liabilities | 243 | 237 |
Other | 879 | 1,122 |
Total accounts payable and accrued liabilities | $ 8,438 | $ 8,771 |
Long-Term Debt (Details)
Long-Term Debt (Details) £ in Millions, $ in Millions | 3 Months Ended | |||
Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022GBP (£) | Dec. 31, 2021USD ($) | |
Long-term Debt: | ||||
Principal Amount | $ 94,929 | $ 91,198 | ||
Carrying Value | 95,222 | 91,561 | ||
Fair Value | 93,694 | 99,641 | ||
Loss on Extinguishment of Debt | 0 | $ (29) | ||
Senior unsecured notes | ||||
Long-term Debt: | ||||
Principal Amount | 25,150 | 23,950 | ||
Carrying Value | 25,072 | 23,882 | ||
Senior unsecured notes | Level 1 | ||||
Long-term Debt: | ||||
Fair Value | 23,755 | 24,630 | ||
Senior secured notes and debentures(a) | ||||
Long-term Debt: | ||||
Principal Amount | 59,975 | 56,525 | ||
Carrying Value | 60,398 | 57,011 | ||
Senior secured notes and debentures(a) | Level 1 | ||||
Long-term Debt: | ||||
Fair Value | 60,198 | 64,346 | ||
Credit facilities(b) | ||||
Long-term Debt: | ||||
Principal Amount | 9,804 | 10,723 | ||
Carrying Value | 9,752 | 10,668 | ||
Credit facilities(b) | Level 2 | ||||
Long-term Debt: | ||||
Fair Value | 9,741 | $ 10,665 | ||
CCO Holdings | ||||
Long-term Debt: | ||||
Loss on Extinguishment of Debt | $ (29) | |||
CCO Holdings | 4.750% Senior Notes due February 1, 2032 | ||||
Long-term Debt: | ||||
Principal Amount | $ 1,200 | |||
Stated interest rate (percentage) | 4.75% | 4.75% | ||
Charter Operating | ||||
Long-term Debt: | ||||
Availability under credit facilities | $ 4,700 | |||
Charter Operating | 4.400% senior secured notes due April 2033 | ||||
Long-term Debt: | ||||
Principal Amount | $ 1,000 | |||
Stated interest rate (percentage) | 4.40% | 4.40% | ||
Debt instrument issue price (percentage) | 99.634% | |||
Charter Operating | 5.250% senior secured notes due April 2053 | ||||
Long-term Debt: | ||||
Principal Amount | $ 1,500 | |||
Stated interest rate (percentage) | 5.25% | 5.25% | ||
Debt instrument issue price (percentage) | 99.30% | |||
Charter Operating | 5.500% senior secured notes due April 2063 | ||||
Long-term Debt: | ||||
Principal Amount | $ 1,000 | |||
Stated interest rate (percentage) | 5.50% | 5.50% | ||
Debt instrument issue price (percentage) | 99.255% | |||
Time Warner Cable | 5.750% Sterling Senior Notes Due June 2, 2031 | ||||
Long-term Debt: | ||||
Principal Amount | £ | £ 625 | |||
Time Warner Cable | 5.250% Sterling Senior Notes Due July 15, 2042 | ||||
Long-term Debt: | ||||
Principal Amount | £ | £ 650 |
Loans Payable - Related Party_2
Loans Payable - Related Party (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Related Party Transactions: | ||
LOANS PAYABLE - RELATED PARTY | $ 1,044 | $ 1,027 |
Charter Holdco | ||
Related Party Transactions: | ||
LOANS PAYABLE - RELATED PARTY | $ 753 | $ 743 |
LIBOR spread | 1.25% | 1.25% |
Charter Operating | ||
Related Party Transactions: | ||
LOANS PAYABLE - RELATED PARTY | $ 291 | $ 284 |
LIBOR spread | 2.00% | 2.00% |
Accounting for Derivative Ins_3
Accounting for Derivative Instruments and Hedging Activities (Details) £ in Millions, $ in Millions | 3 Months Ended | ||||
Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022GBP (£) | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | |
Gain (Loss) On Financial Instruments, Net | |||||
Change in fair value of cross-currency derivative instruments | $ (36) | $ 63 | |||
Foreign currency remeasurement of Sterling Notes to U.S. dollars | 50 | (15) | |||
Gain (loss) on financial instruments, net | $ 14 | $ 48 | |||
Cross Currency Derivatives | |||||
Derivatives: | |||||
Notional amount | £ | £ 1,275 | ||||
Level 2 | Cross Currency Derivatives | |||||
Derivatives: | |||||
Derivative Liability | $ 326 | $ 290 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Product Information [Line Items] | |||
REVENUES | $ 13,198 | $ 12,519 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable, net | 2,483 | $ 2,539 | |
Other noncurrent assets | 3,209 | 3,215 | |
Equipment installment plan receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable, net | 392 | 391 | |
Other noncurrent assets | 209 | $ 189 | |
Internet | |||
Product Information [Line Items] | |||
REVENUES | 5,452 | 5,086 | |
Video | |||
Product Information [Line Items] | |||
REVENUES | 4,346 | 4,344 | |
Voice | |||
Product Information [Line Items] | |||
REVENUES | 391 | 399 | |
Residential revenue | |||
Product Information [Line Items] | |||
REVENUES | 10,189 | 9,829 | |
Small and medium business | |||
Product Information [Line Items] | |||
REVENUES | 1,059 | 1,012 | |
Enterprise | |||
Product Information [Line Items] | |||
REVENUES | 661 | 638 | |
Commercial revenue | |||
Product Information [Line Items] | |||
REVENUES | 1,720 | 1,650 | |
Advertising sales | |||
Product Information [Line Items] | |||
REVENUES | 383 | 344 | |
Mobile | |||
Product Information [Line Items] | |||
REVENUES | 690 | 492 | |
Other | |||
Product Information [Line Items] | |||
REVENUES | $ 216 | $ 204 |
Operating Costs and Expenses (D
Operating Costs and Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating Costs and Expenses [Abstract] | ||
Programming | $ 2,977 | $ 2,988 |
Regulatory, connectivity and produced content | 556 | 600 |
Costs to service customers | 1,899 | 1,804 |
Marketing | 826 | 751 |
Mobile | 760 | 572 |
Other | 1,140 | 1,016 |
Operating costs and expenses (exclusive of items shown separately in the consolidated statements of operations) | $ 8,158 | $ 7,731 |
Other Operating Expenses, Net_3
Other Operating Expenses, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | ||
Special charges, net | $ 3 | $ 257 |
Loss on disposal of assets, net | 0 | 47 |
Other operating expenses, net | 3 | 304 |
Loss Contingency, Damages Awarded, Value | $ 220 | $ 220 |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | ||
Loss on extinguishment of debt (see Note 3) | $ 0 | $ (29) |
Gain on financial instruments, net (see Note 5) | 14 | 48 |
Net periodic pension benefits | 17 | 18 |
Income (Loss) from Equity Method Investments | (7) | 5 |
Other income, net | $ 24 | $ 42 |
Stock Compensation Plans (Detai
Stock Compensation Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Stock Compensation Plans: | ||
Stock compensation expense | $ 147 | $ 134 |
Stock options | ||
Stock Compensation Plans: | ||
Stock options granted in period (shares) | 1,372,400 | 1,225,000 |
Award vesting period | 3 years | |
Award expiration period | 10 years | |
Unrecognized compensation cost | $ 380 | |
Remaining period over which to recognize unrecognized compensation expense | 2 years | |
Restricted stock | ||
Stock Compensation Plans: | ||
Award vesting period | 1 year | |
Unrecognized compensation cost | $ 0.2 | |
Remaining period over which to recognize unrecognized compensation expense | 1 month | |
Restricted stock units | ||
Stock Compensation Plans: | ||
Awards other than stock options granted in period (shares) | 423,600 | 345,100 |
Award vesting period | 3 years | |
Unrecognized compensation cost | $ 378 | |
Remaining period over which to recognize unrecognized compensation expense | 2 years |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Loss Contingency, Damages Awarded, Value | $ 220 | $ 220 |