☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended | June 30, |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from | to |
Commission File Number | Registrant; State of Incorporation; Address and Telephone Number | IRS Employer Identification No. | ||||||||||||||||||||||||
001-38126 | 38-3980194 | |||||||||||||||||||||||||
Altice USA, Inc. | ||||||||||||||||||||||||||
Delaware | ||||||||||||||||||||||||||
1 Court Square West | ||||||||||||||||||||||||||
Long Island City, | New York | 11101 | ||||||||||||||||||||||||
(516) | 803-2300 |
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | ||||||||||||||||||||||||||||||||
Yes | ☒ | No | ☐ |
Indicate by check mark whether the Registrant has submitted electronically | ||||||||||||||||||||||
Yes | ☒ | No | ☐ |
Indicate by check mark whether | ||||||||||||||||||
Large Accelerated Filer | ☒ | Accelerated filer | ☐ | |||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||
(Do not check if a smaller reporting company) | Emerging growth company | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ |
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act). | Yes | ☐ | No | ☒ |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Class A Common Stock, par value $0.01 per share | ATUS |
Number of shares of common stock outstanding as of July |
Page | |||||||||||
PART I. FINANCIAL INFORMATION | |||||||||||
Item 1. Financial Statements | |||||||||||
ALTICE USA, INC. AND SUBSIDIARIES | |||||||||||
Consolidated Balance Sheets - June 30, 2020 (Unaudited) and December 31, 2019 | |||||||||||
Consolidated Statements of Operations - Three and six months ended June 30, 2020 and 2019 (Unaudited) | |||||||||||
Consolidated Statements of Comprehensive Income - Three and six months ended June 30, 2020 and 2019 (Unaudited) | |||||||||||
Consolidated Statements of Cash Flows - Six months ended June 30, 2020 and 2019 (Unaudited) | |||||||||||
Combined Notes to Consolidated Financial Statements | |||||||||||
Supplemental Financial Statements Furnished: | |||||||||||
CSC HOLDINGS, INC. AND SUBSIDIARIES | |||||||||||
Consolidated Financial Statements | |||||||||||
Consolidated Balance Sheets - June 30, | |||||||||||
Consolidated Statements of Operations - Three and six months ended June 30, | |||||||||||
Consolidated Statements of Comprehensive Income | |||||||||||
Consolidated Statements of | |||||||||||
Consolidated Statements of Cash Flows - Six months ended June 30, | |||||||||||
Combined Notes to Consolidated Financial Statements (Unaudited) | |||||||||||
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | |||||||||||
Item 3. Quantitative and Qualitative Disclosures About Market Risk | |||||||||||
Item 4. Controls and Procedures | |||||||||||
PART II. OTHER INFORMATION | |||||||||||
Item 1. Legal Proceedings | |||||||||||
Item 1A. Risk Factors | |||||||||||
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | |||||||||||
Item 6. Exhibits | |||||||||||
SIGNATURES | |||||||||||
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) | ||||||||||||||||||||
June 30, 2020 (Unaudited) | December 31, 2019 | |||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 1,952,142 | $ | 701,898 | ||||||||||||||||
Restricted cash | 264 | 262 | ||||||||||||||||||
Accounts receivable, trade (less allowance for doubtful accounts of $32,441 and $14,683) | 387,739 | 457,118 | ||||||||||||||||||
Prepaid expenses and other current assets | 209,916 | 215,304 | ||||||||||||||||||
Amounts due from affiliates | 3,452 | 6,774 | ||||||||||||||||||
Total current assets | 2,553,513 | 1,381,356 | ||||||||||||||||||
Property, plant and equipment, net of accumulated depreciation of $5,880,504 and $5,276,921 | 5,723,109 | 5,753,401 | ||||||||||||||||||
Right-of-use operating lease assets | 270,592 | 280,340 | ||||||||||||||||||
Investment securities pledged as collateral | 1,674,395 | 1,931,697 | ||||||||||||||||||
Derivative contracts | 225,791 | 25,207 | ||||||||||||||||||
Other assets | 106,840 | 92,622 | ||||||||||||||||||
Amortizable intangibles, net of accumulated amortization of $4,054,809 and $3,670,679 | 3,097,216 | 3,481,109 | ||||||||||||||||||
Indefinite-lived cable television franchises | 13,020,081 | 13,020,081 | ||||||||||||||||||
Goodwill | 8,142,309 | 8,142,309 | ||||||||||||||||||
Total assets | $ | 34,813,846 | $ | 34,108,122 |
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) | |||||||
ASSETS | June 30, 2019 (Unaudited) | December 31, 2018 | |||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 138,715 | $ | 298,781 | |||
Restricted cash | 260 | 257 | |||||
Accounts receivable, trade (less allowance for doubtful accounts of $15,881 and $13,520) | 420,321 | 448,399 | |||||
Prepaid expenses and other current assets | 182,401 | 136,285 | |||||
Amounts due from affiliates | 1,222 | 17,557 | |||||
Derivative contracts | — | 1,975 | |||||
Total current assets | 742,919 | 903,254 | |||||
Property, plant and equipment, net of accumulated depreciation of $4,704,512 and $4,044,671 | 5,814,965 | 5,828,881 | |||||
Right-of-use operating lease assets | 289,932 | — | |||||
Investment securities pledged as collateral | 1,816,147 | 1,462,626 | |||||
Derivative contracts | — | 109,344 | |||||
Other assets | 92,518 | 84,382 | |||||
Amortizable intangibles, net of accumulated amortization of $3,284,685 and $2,882,787 | 3,865,003 | 4,192,824 | |||||
Indefinite-lived cable television franchises | 13,020,081 | 13,020,081 | |||||
Goodwill | 8,138,086 | 8,012,416 | |||||
Total assets | $ | 33,779,651 | $ | 33,613,808 |
June 30, 2020 (Unaudited) | December 31, 2019 | ||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Current Liabilities: | |||||||||||
Accounts payable | $ | 832,011 | $ | 799,618 | |||||||
Interest payable | 381,482 | 385,655 | |||||||||
Accrued employee related costs | 109,334 | 111,337 | |||||||||
Amounts due to affiliates | 5,722 | 7,456 | |||||||||
Deferred revenue | 117,925 | 124,777 | |||||||||
Debt | 1,859,290 | 170,682 | |||||||||
Other current liabilities | 387,212 | 378,954 | |||||||||
Total current liabilities | 3,692,976 | 1,978,479 | |||||||||
Other liabilities | 215,781 | 204,904 | |||||||||
Deferred tax liability | 4,833,305 | 4,762,595 | |||||||||
Liabilities under derivative contracts | 312,916 | 255,666 | |||||||||
Right-of-use operating lease liability | 259,297 | 269,062 | |||||||||
Long-term debt, net of current maturities | 24,326,397 | 24,249,603 | |||||||||
Total liabilities | 33,640,672 | 31,720,309 | |||||||||
Commitments and contingencies (Note 16) | |||||||||||
Redeemable equity | 15,495 | 108,551 | |||||||||
Stockholders' Equity: | |||||||||||
Preferred stock, $0.01 par value, 100,000,000 shares authorized, 0 shares issued and outstanding | — | — | |||||||||
Class A common stock: $0.01 par value, 4,000,000,000 shares authorized, 400,531,285 shares issued and 393,596,028 shares outstanding as of June 30, 2020 and 457,207,079 shares issued and 446,749,307 shares outstanding as of December 31, 2019 | 4,005 | 4,572 | |||||||||
Class B common stock: $0.01 par value, 1,000,000,000 shares authorized, 490,086,674 issued, 186,194,357 shares outstanding as of June 30, 2020 and 186,245,832 shares outstanding as of December 31, 2019 | 1,862 | 1,862 | |||||||||
Class C common stock: $0.01 par value, 4,000,000,000 shares authorized, 0 shares issued and outstanding | — | — | |||||||||
Paid-in capital | 817,796 | 2,039,918 | |||||||||
Retained earnings | 501,172 | 390,766 | |||||||||
1,324,835 | 2,437,118 | ||||||||||
Treasury stock, at cost (6,935,257 and 10,457,772 Class A common shares at June 30, 2020 and December 31, 2019, respectively) | (163,869) | (163,904) | |||||||||
Accumulated other comprehensive loss | (12,118) | (3,250) | |||||||||
Total stockholders' equity | 1,148,848 | 2,269,964 | |||||||||
Noncontrolling interest | 8,831 | 9,298 | |||||||||
Total stockholders' equity | 1,157,679 | 2,279,262 | |||||||||
$ | 34,813,846 | $ | 34,108,122 |
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (continued) (In thousands, except share and per share amounts) | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | June 30, 2019 (Unaudited) | December 31, 2018 | |||||
Current Liabilities: | |||||||
Accounts payable | $ | 909,120 | $ | 857,502 | |||
Interest payable | 335,063 | 386,475 | |||||
Accrued employee related costs | 133,817 | 139,806 | |||||
Amounts due to affiliates | 6,479 | 26,096 | |||||
Deferred revenue | 141,546 | 140,053 | |||||
Debt | 660,223 | 158,625 | |||||
Other current liabilities | 332,692 | 312,634 | |||||
Total current liabilities | 2,518,940 | 2,021,191 | |||||
Other liabilities | 238,872 | 271,554 | |||||
Deferred tax liability | 4,765,958 | 4,723,937 | |||||
Liabilities under derivative contracts | 289,156 | 132,908 | |||||
Right-of-use operating lease liability | 277,744 | — | |||||
Long-term debt, net of current maturities | 22,980,286 | 22,653,975 | |||||
Total liabilities | 31,070,956 | 29,803,565 | |||||
Commitments and contingencies (Note 16) | |||||||
Redeemable equity | 174,931 | 130,007 | |||||
Stockholders' Equity: | |||||||
Preferred stock, $.01 par value, 100,000,000 shares authorized, no shares issued and outstanding | — | — | |||||
Class A common stock: $0.01 par value, 4,000,000,000 shares authorized, 468,084,705 shares issued and 468,068,226 shares outstanding as of June 30, 2019 and 496,064,027 shares issued and outstanding as of December 31, 2018 | 4,681 | 4,961 | |||||
Class B common stock: $0.01 par value, 1,000,000,000 shares authorized, 490,086,674 shares issued and 187,157,804 shares outstanding as of June 30, 2019 and 212,976,259 shares outstanding as of December 31, 2018 | 1,872 | 2,130 | |||||
Class C common stock: $0.01 par value, 4,000,000,000 shares authorized, no shares issued and outstanding | — | — | |||||
Paid-in capital | 2,220,348 | 3,423,803 | |||||
Retained earnings | 313,198 | 251,830 | |||||
2,540,099 | 3,682,724 | ||||||
Treasury stock, at cost (16,479 Altice USA Class A common shares) | — | — | |||||
Accumulated other comprehensive loss | (14,474 | ) | (11,783 | ) | |||
Total stockholders' equity | 2,525,625 | 3,670,941 | |||||
Noncontrolling interest | 8,139 | 9,295 | |||||
Total stockholders' equity | 2,533,764 | 3,680,236 | |||||
$ | 33,779,651 | $ | 33,613,808 |
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenue (including revenue from affiliates of $496, $727, $1,088 and $852, respectively) (See Note 15) | $ | 2,451,081 | $ | 2,364,153 | $ | 4,847,648 | $ | 4,693,867 | |||||||
Operating expenses: | |||||||||||||||
Programming and other direct costs (including charges from affiliates of $2,087, $3,865, $3,774 and $5,019 respectively) (See Note 15) | 818,994 | 795,127 | 1,631,979 | 1,582,488 | |||||||||||
Other operating expenses (including charges from affiliates of $2,020, $6,255, $4,266 and $14,249, respectively) (See Note 15) | 569,459 | 575,749 | 1,133,891 | 1,158,772 | |||||||||||
Restructuring and other expense | 11,465 | 9,691 | 26,709 | 13,278 | |||||||||||
Depreciation and amortization (including impairments) | 568,620 | 648,527 | 1,130,048 | 1,291,232 | |||||||||||
1,968,538 | 2,029,094 | 3,922,627 | 4,045,770 | ||||||||||||
Operating income | 482,543 | 335,059 | 925,021 | 648,097 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense | (381,218 | ) | (390,543 | ) | (769,501 | ) | (767,801 | ) | |||||||
Interest income | 605 | 5,313 | 2,424 | 8,416 | |||||||||||
Gain (loss) on investments and sale of affiliate interests, net | 103,146 | (45,113 | ) | 357,871 | (293,715 | ) | |||||||||
Gain (loss) on derivative contracts, net | (49,624 | ) | 42,159 | (226,653 | ) | 210,511 | |||||||||
Loss on interest rate swap contracts | (26,900 | ) | (12,929 | ) | (50,572 | ) | (44,851 | ) | |||||||
Loss on extinguishment of debt and write-off of deferred financing costs | (1,194 | ) | (36,911 | ) | (159,096 | ) | (41,616 | ) | |||||||
Other income (expense), net | 212 | (629 | ) | 292 | (12,287 | ) | |||||||||
(354,973 | ) | (438,653 | ) | (845,235 | ) | (941,343 | ) | ||||||||
Income (loss) before income taxes | 127,570 | (103,594 | ) | 79,786 | (293,246 | ) | |||||||||
Income tax benefit (expense) | (41,160 | ) | 5,590 | (18,574 | ) | 66,293 | |||||||||
Net income (loss) | 86,410 | (98,004 | ) | 61,212 | (226,953 | ) | |||||||||
Net loss (income) attributable to noncontrolling interests | (43 | ) | 149 | 156 | 147 | ||||||||||
Net income (loss) attributable to Altice USA, Inc. stockholders | $ | 86,367 | $ | (97,855 | ) | $ | 61,368 | $ | (226,806 | ) | |||||
Income (loss) per share: | |||||||||||||||
Basic income (loss) per share | $ | 0.13 | $ | (0.13 | ) | $ | 0.09 | $ | (0.31 | ) | |||||
Basic weighted average common shares (in thousands) | 668,031 | 737,069 | 681,703 | 737,069 | |||||||||||
Diluted income (loss) per share: | $ | 0.13 | $ | (0.13 | ) | $ | 0.09 | $ | (0.31 | ) | |||||
Diluted weighted average common shares (in thousands) | 668,648 | 737,069 | 682,014 | 737,069 | |||||||||||
Cash dividends declared per common share | $ | — | $ | — | $ | — | $ | — |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Revenue (including revenue from affiliates of $3,379, $496, $6,867, and $1,088 respectively) (See Note 15) | $ | 2,474,979 | $ | 2,451,081 | $ | 4,925,235 | $ | 4,847,648 | |||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Programming and other direct costs (including charges from affiliates of $1,738, $2,087, $3,927 and $3,774, respectively) (See Note 15) | 860,875 | 818,994 | 1,725,389 | 1,631,979 | |||||||||||||||||||||||||||||||
Other operating expenses (including charges from affiliates of $2,161, $2,020, $6,102 and $4,266, respectively) (See Note 15) | 542,637 | 569,459 | 1,124,946 | 1,133,891 | |||||||||||||||||||||||||||||||
Restructuring and other expense | 40,966 | 11,465 | 48,260 | 26,709 | |||||||||||||||||||||||||||||||
Depreciation and amortization (including impairments) | 521,794 | 568,620 | 1,069,363 | 1,130,048 | |||||||||||||||||||||||||||||||
1,966,272 | 1,968,538 | 3,967,958 | 3,922,627 | ||||||||||||||||||||||||||||||||
Operating income | 508,707 | 482,543 | 957,277 | 925,021 | |||||||||||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||||||||||||||
Interest expense | (351,025) | (381,218) | (716,236) | (769,501) | |||||||||||||||||||||||||||||||
Interest income | 151 | 605 | 1,810 | 2,424 | |||||||||||||||||||||||||||||||
Gain (loss) on investments and sale of affiliate interests, net | 197,597 | 103,146 | (257,876) | 357,871 | |||||||||||||||||||||||||||||||
Gain (loss) on derivative contracts, net | (152,061) | (49,624) | 287,800 | (226,653) | |||||||||||||||||||||||||||||||
Loss on interest rate swap contracts, net | (33,735) | (26,900) | (88,567) | (50,572) | |||||||||||||||||||||||||||||||
Loss on extinguishment of debt and write-off of deferred financing costs | — | (1,194) | — | (159,096) | |||||||||||||||||||||||||||||||
Other income, net | 669 | 212 | 1,592 | 292 | |||||||||||||||||||||||||||||||
(338,404) | (354,973) | (771,477) | (845,235) | ||||||||||||||||||||||||||||||||
Income before income taxes | 170,303 | 127,570 | 185,800 | 79,786 | |||||||||||||||||||||||||||||||
Income tax expense | (58,826) | (41,160) | (75,861) | (18,574) | |||||||||||||||||||||||||||||||
Net income | 111,477 | 86,410 | 109,939 | 61,212 | |||||||||||||||||||||||||||||||
Net loss (income) attributable to noncontrolling interests | (213) | (43) | 467 | 156 | |||||||||||||||||||||||||||||||
Net income attributable to Altice USA, Inc. stockholders | $ | 111,264 | $ | 86,367 | $ | 110,406 | $ | 61,368 | |||||||||||||||||||||||||||
Income per share: | |||||||||||||||||||||||||||||||||||
Basic income per share | $ | 0.19 | $ | 0.13 | $ | 0.18 | $ | 0.09 | |||||||||||||||||||||||||||
Basic weighted average common shares (in thousands) | 587,587 | 668,031 | 604,500 | 681,703 | |||||||||||||||||||||||||||||||
Diluted income per share | $ | 0.19 | $ | 0.13 | $ | 0.18 | $ | 0.09 | |||||||||||||||||||||||||||
Diluted weighted average common shares (in thousands) | 589,466 | 668,648 | 606,597 | 682,014 | |||||||||||||||||||||||||||||||
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (In thousands) (Unaudited) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income (loss) | $ | 86,410 | $ | (98,004 | ) | $ | 61,212 | $ | (226,953 | ) | |||||
Other comprehensive income (loss): | |||||||||||||||
Defined benefit pension plans: | |||||||||||||||
Unrecognized actuarial gain (loss) | (8,567 | ) | (359 | ) | (3,648 | ) | 4,192 | ||||||||
Applicable income taxes | 2,282 | 97 | 989 | (1,131 | ) | ||||||||||
Unrecognized actuarial gain (loss) arising during period, net of income taxes | (6,285 | ) | (262 | ) | (2,659 | ) | 3,061 | ||||||||
Settlement loss included in other expense, net | 367 | 258 | 538 | 864 | |||||||||||
Applicable income taxes | (101 | ) | (70 | ) | (147 | ) | (234 | ) | |||||||
Settlement loss included in other expense, net, net of income taxes | 266 | 188 | 391 | 630 | |||||||||||
Foreign currency translation adjustment | (336 | ) | 914 | (580 | ) | 914 | |||||||||
Applicable income taxes | 93 | (338 | ) | 157 | (338 | ) | |||||||||
Foreign currency translation adjustment, net | (243 | ) | 576 | (423 | ) | 576 | |||||||||
Other comprehensive income (loss) | (6,262 | ) | 502 | (2,691 | ) | 4,267 | |||||||||
Comprehensive income (loss) | 80,148 | (97,502 | ) | 58,521 | (222,686 | ) | |||||||||
Comprehensive loss (income) attributable to noncontrolling interests | (43 | ) | 149 | 156 | 147 | ||||||||||
Comprehensive income (loss) attributable to Altice USA, Inc. stockholders | $ | 80,105 | $ | (97,353 | ) | $ | 58,677 | $ | (222,539 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||
Net income | $ | 111,477 | $ | 86,410 | $ | 109,939 | $ | 61,212 | ||||||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||||||||
Defined benefit pension plans: | ||||||||||||||||||||||||||||||||||||||
Unrecognized actuarial gain (loss) | 1,880 | (8,567) | (11,589) | (3,648) | ||||||||||||||||||||||||||||||||||
Applicable income taxes | (503) | 2,282 | 3,096 | 989 | ||||||||||||||||||||||||||||||||||
Unrecognized gain (loss) arising during period, net of income taxes | 1,377 | (6,285) | (8,493) | (2,659) | ||||||||||||||||||||||||||||||||||
Settlement loss included in other expense, net | 271 | 367 | 773 | 538 | ||||||||||||||||||||||||||||||||||
Applicable income taxes | (72) | (101) | (207) | (147) | ||||||||||||||||||||||||||||||||||
Settlement loss included in other expense, net, net of income taxes | 199 | 266 | 566 | 391 | ||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | (517) | (336) | (941) | (580) | ||||||||||||||||||||||||||||||||||
Applicable income taxes | — | 93 | — | 157 | ||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net | (517) | (243) | (941) | (423) | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 1,059 | (6,262) | (8,868) | (2,691) | ||||||||||||||||||||||||||||||||||
Comprehensive income | 112,536 | 80,148 | 101,071 | 58,521 | ||||||||||||||||||||||||||||||||||
Comprehensive loss (income) attributable to noncontrolling interests | (213) | (43) | 467 | 156 | ||||||||||||||||||||||||||||||||||
Comprehensive income attributable to Altice USA, Inc. stockholders | $ | 112,323 | $ | 80,105 | $ | 101,538 | $ | 58,677 |
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (In thousands) (Unaudited) | |||||||||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Stockholders' Equity | Non-controlling Interest | Total Equity | |||||||||||||||||||||||||||
Balance at January 1, 2019 | $ | 4,961 | $ | 2,130 | $ | 3,423,803 | $ | 251,830 | $ | — | $ | (11,783 | ) | $ | 3,670,941 | $ | 9,295 | $ | 3,680,236 | ||||||||||||||||
Net loss attributable to stockholders | — | — | — | (24,999 | ) | — | — | (24,999 | ) | — | (24,999 | ) | |||||||||||||||||||||||
Net loss attributable to noncontrolling interests | — | — | — | — | — | — | — | (199 | ) | (199 | ) | ||||||||||||||||||||||||
Distributions from noncontrolling interests | — | — | — | — | — | — | — | (1,000 | ) | (1,000 | ) | ||||||||||||||||||||||||
Pension liability adjustments, net of income taxes | — | — | — | — | — | 3,752 | 3,752 | — | 3,752 | ||||||||||||||||||||||||||
Foreign currency translation adjustment, net of income taxes | — | — | — | — | — | (181 | ) | (181 | ) | — | (181 | ) | |||||||||||||||||||||||
Share-based compensation expense | — | — | 13,790 | — | — | — | 13,790 | — | 13,790 | ||||||||||||||||||||||||||
Redeemable equity vested | — | — | 1,364 | — | — | — | 1,364 | — | 1,364 | ||||||||||||||||||||||||||
Change in redeemable equity | — | — | (61,696 | ) | — | — | — | (61,696 | ) | — | (61,696 | ) | |||||||||||||||||||||||
Class A shares acquired through share repurchase program and retired | (294 | ) | — | (599,707 | ) | — | — | — | (600,001 | ) | — | (600,001 | ) | ||||||||||||||||||||||
Conversion of Class B to Class A shares | 242 | (242 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Balance at March 31, 2019 | $ | 4,909 | $ | 1,888 | $ | 2,777,554 | $ | 226,831 | $ | — | $ | (8,212 | ) | $ | 3,002,970 | $ | 8,096 | $ | 3,011,066 | ||||||||||||||||
See accompanying notes to consolidated financial statements. |
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (In thousands) (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Stockholders' Equity | Non-controlling Interest | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2020 | $ | 4,572 | $ | 1,862 | $ | 2,039,918 | $ | 390,766 | $ | (163,904) | $ | (3,250) | $ | 2,269,964 | $ | 9,298 | $ | 2,279,262 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss attributable to stockholders | — | — | — | (858) | — | — | (858) | — | (858) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | — | — | — | — | — | — | — | (680) | (680) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension liability adjustments, net of income taxes | — | — | — | — | — | (9,503) | (9,503) | — | (9,503) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of income taxes | — | — | — | — | — | (424) | (424) | — | (424) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | 27,370 | — | — | — | 27,370 | — | 27,370 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable equity vested | — | — | 29,479 | — | — | — | 29,479 | — | 29,479 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in redeemable equity | — | — | 13,260 | — | — | — | 13,260 | — | 13,260 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A shares acquired through share repurchase program and retired | (312) | — | (749,686) | — | — | — | (749,998) | — | (749,998) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares pursuant to employee long term incentive plan | 1 | — | 2,495 | — | 11 | — | 2,507 | — | 2,507 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | $ | 4,261 | $ | 1,862 | $ | 1,362,836 | $ | 389,908 | $ | (163,893) | $ | (13,177) | $ | 1,581,797 | $ | 8,618 | $ | 1,590,415 |
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (In thousands) (Unaudited) | |||||||||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Stockholders' Equity | Non-controlling Interest | Total Equity | |||||||||||||||||||||||||||
Balance at March 31, 2019 | $ | 4,909 | $ | 1,888 | $ | 2,777,554 | $ | 226,831 | $ | — | $ | (8,212 | ) | $ | 3,002,970 | $ | 8,096 | $ | 3,011,066 | ||||||||||||||||
Net income attributable to stockholders | — | — | — | 86,367 | — | — | 86,367 | — | 86,367 | ||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | — | — | 43 | 43 | ||||||||||||||||||||||||||
Pension liability adjustments, net of income taxes | — | — | — | — | — | (6,019 | ) | (6,019 | ) | — | (6,019 | ) | |||||||||||||||||||||||
Foreign currency translation adjustment, net of income taxes | — | — | — | — | — | (243 | ) | (243 | ) | — | (243 | ) | |||||||||||||||||||||||
Share-based compensation expense (equity classified) | — | — | 16,077 | — | — | — | 16,077 | — | 16,077 | ||||||||||||||||||||||||||
Redeemable equity vested | — | — | 61,702 | — | — | — | 61,702 | — | 61,702 | ||||||||||||||||||||||||||
Change in redeemable equity | — | — | (46,294 | ) | — | — | — | (46,294 | ) | — | (46,294 | ) | |||||||||||||||||||||||
Class A shares acquired through share repurchase program and retired | (249 | ) | — | (599,703 | ) | — | — | — | (599,952 | ) | — | (599,952 | ) | ||||||||||||||||||||||
Conversion of Class B to Class A shares | 16 | (16 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Issuance of common shares pursuant to employee long term incentive plan | — | — | 244 | — | — | — | 244 | — | 244 | ||||||||||||||||||||||||||
Class A shares issued in connection with acquisition | 5 | — | 10,768 | — | — | — | 10,773 | — | 10,773 | ||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | 4,681 | $ | 1,872 | $ | 2,220,348 | $ | 313,198 | $ | — | $ | (14,474 | ) | $ | 2,525,625 | $ | 8,139 | $ | 2,533,764 |
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (continued) (In thousands) (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Stockholders' Equity | Non-controlling Interest | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | $ | 4,261 | $ | 1,862 | $ | 1,362,836 | $ | 389,908 | $ | (163,893) | $ | (13,177) | $ | 1,581,797 | $ | 8,618 | $ | 1,590,415 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to stockholders | — | — | — | 111,264 | — | — | 111,264 | — | 111,264 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | — | — | — | — | — | — | — | 213 | 213 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension liability adjustments, net of income taxes | — | — | — | — | — | 1,576 | 1,576 | — | 1,576 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of income taxes | — | — | — | — | — | (517) | (517) | — | (517) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | 33,683 | — | — | — | 33,683 | — | 33,683 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable equity vested | — | — | 59,081 | — | — | — | 59,081 | — | 59,081 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in redeemable equity | — | — | (8,764) | — | — | — | (8,764) | — | (8,764) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A shares acquired through share repurchase program and retired | (258) | — | (630,979) | — | — | — | (631,237) | — | (631,237) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares pursuant to employee long term incentive plan | 2 | — | 1,939 | — | 24 | — | 1,965 | — | 1,965 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | 4,005 | $ | 1,862 | $ | 817,796 | $ | 501,172 | $ | (163,869) | $ | (12,118) | $ | 1,148,848 | $ | 8,831 | $ | 1,157,679 |
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Continued) (In thousands) (Unaudited) | |||||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Stockholders' Equity | Non-controlling Interest | Total Equity | ||||||||||||||||||||||||
Balance at January 1, 2018, as adjusted | $ | 2,470 | $ | 4,901 | $ | 4,665,229 | $ | 840,636 | $ | (10,022 | ) | $ | 5,503,214 | $ | 1,539 | $ | 5,504,753 | ||||||||||||||
Net loss attributable to stockholders | — | — | — | (128,951 | ) | — | (128,951 | ) | — | (128,951 | ) | ||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | — | 2 | 2 | |||||||||||||||||||||||
Pension liability adjustments, net of income taxes | — | — | — | — | 3,765 | 3,765 | — | 3,765 | |||||||||||||||||||||||
Share-based compensation expense | — | — | 21,623 | — | — | 21,623 | — | 21,623 | |||||||||||||||||||||||
Change in redeemable equity | — | — | (3,347 | ) | — | — | (3,347 | ) | — | (3,347 | ) | ||||||||||||||||||||
Other changes to equity | — | — | (859 | ) | — | — | (859 | ) | — | (859 | ) | ||||||||||||||||||||
Adoption of ASU No. 2018-02 | — | — | — | 2,163 | (2,163 | ) | — | — | — | ||||||||||||||||||||||
Balance at March 31, 2018 | 2,470 | 4,901 | 4,682,646 | 713,848 | (8,420 | ) | 5,395,445 | 1,541 | 5,396,986 | ||||||||||||||||||||||
Net loss attributable to stockholders | — | — | — | (97,855 | ) | — | (97,855 | ) | — | (97,855 | ) | ||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | — | (149 | ) | (149 | ) | |||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | — | — | — | 5,995 | 5,995 | |||||||||||||||||||||||
Pension liability adjustments, net of income taxes | — | — | — | — | (74 | ) | (74 | ) | — | (74 | ) | ||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | 576 | 576 | — | 576 | |||||||||||||||||||||||
Share-based compensation expense | — | — | 12,226 | — | — | 12,226 | — | 12,226 | |||||||||||||||||||||||
Redeemable equity vested | — | — | 111,521 | — | — | 111,521 | — | 111,521 | |||||||||||||||||||||||
Change in redeemable equity | — | — | (47,049 | ) | — | — | (47,049 | ) | — | (47,049 | ) | ||||||||||||||||||||
Dividend payment | — | — | (963,711 | ) | (536,224 | ) | — | (1,499,935 | ) | — | (1,499,935 | ) | |||||||||||||||||||
Conversion of Class B to Class A shares, including $2,424 in connection with the Distribution | 2,458 | (2,458 | ) | — | — | — | — | — | — | ||||||||||||||||||||||
Impact of i24 Acquisition | — | — | 61,049 | (73,578 | ) | (2,520 | ) | (15,049 | ) | — | (15,049 | ) | |||||||||||||||||||
Balance at June 30, 2018 | $ | 4,928 | $ | 2,443 | $ | 3,856,682 | $ | 6,191 | $ | (10,438 | ) | $ | 3,859,806 | $ | 7,387 | $ | 3,867,193 |
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | |||||||
Six Months Ended June 30, | |||||||
2019 | 2018 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | 61,212 | $ | (226,953 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation and amortization (including impairments) | 1,130,048 | 1,291,232 | |||||
Equity in net loss of affiliates | — | 10,849 | |||||
Loss (gain) on investments and sale of affiliate interests, net | (357,871 | ) | 293,715 | ||||
Loss (gain) on derivative contracts, net | 226,653 | (210,511 | ) | ||||
Loss on extinguishment of debt and write-off of deferred financing costs | 159,096 | 41,616 | |||||
Amortization of deferred financing costs and discounts (premiums) on indebtedness | 53,876 | 36,971 | |||||
Settlement loss related to pension plan | 538 | 864 | |||||
Share-based compensation expense related to equity classified awards | 29,867 | 33,849 | |||||
Deferred income taxes | 19,604 | (80,280 | ) | ||||
Provision for doubtful accounts | 34,814 | 29,462 | |||||
Change in assets and liabilities, net of effects of acquisitions and dispositions: | |||||||
Accounts receivable, trade | 1,804 | (37,224 | ) | ||||
Other receivables | 2,740 | (5,926 | ) | ||||
Prepaid expenses and other assets | (39,477 | ) | (31,951 | ) | |||
Amounts due from and due to affiliates | (3,282 | ) | 8,573 | ||||
Accounts payable | 18,549 | 49,449 | |||||
Interest payable, accrued employee related costs and other liabilities | (98,551 | ) | (110,227 | ) | |||
Deferred revenue | 12,022 | 20,536 | |||||
Liabilities related to interest rate swap and derivative contracts | 41,322 | 45,199 | |||||
Net cash provided by operating activities | 1,292,964 | 1,159,243 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (657,253 | ) | (498,297 | ) | |||
Payment for acquisitions, net of cash acquired | (172,659 | ) | (5,308 | ) | |||
Sale of affiliate interest | — | (3,537 | ) | ||||
Proceeds related to sale of equipment, including costs of disposal | 898 | 6,858 | |||||
Increase in other investments | — | (2,500 | ) | ||||
Additions to other intangible assets | (867 | ) | — | ||||
Net cash used in investing activities | (829,881 | ) | (502,784 | ) | |||
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (continued) (In thousands) (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Stockholders' Equity | Non-controlling Interest | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2019 | $ | 4,961 | $ | 2,130 | $ | 3,423,803 | $ | 251,830 | $ | — | $ | (11,783) | $ | 3,670,941 | $ | 9,295 | $ | 3,680,236 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss attributable to stockholders | — | — | — | (24,999) | — | — | (24,999) | — | (24,999) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | — | — | — | — | — | — | — | (199) | (199) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | (1,000) | (1,000) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension liability adjustments, net of income taxes | — | — | — | — | — | 3,752 | 3,752 | — | 3,752 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of income taxes | — | — | — | — | — | (181) | (181) | — | (181) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense (equity classified) | — | — | 13,790 | — | — | — | 13,790 | — | 13,790 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable equity vested | — | — | 1,364 | — | — | 1,364 | — | 1,364 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in redeemable equity | — | — | (61,696) | — | — | — | (61,696) | — | (61,696) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A shares acquired through share repurchase program and retired | (294) | — | (599,707) | — | — | — | (600,001) | — | (600,001) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Class B to Class A shares | 242 | (242) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2019 | $ | 4,909 | $ | 1,888 | $ | 2,777,554 | $ | 226,831 | $ | — | $ | (8,212) | $ | 3,002,970 | $ | 8,096 | $ | 3,011,066 |
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) (In thousands) (Unaudited) | |||||||
Six Months Ended June 30, | |||||||
2019 | 2018 | ||||||
Cash flows from financing activities: | |||||||
Proceeds from credit facility debt, net of discounts | $ | 1,940,000 | $ | 1,642,500 | |||
Repayment of credit facility debt | (602,830 | ) | (621,325 | ) | |||
Issuance of senior notes and debentures, including premiums | 1,754,375 | 2,050,000 | |||||
Redemption of senior notes, including premiums and fees | (2,462,692 | ) | (2,123,756 | ) | |||
Proceeds from collateralized indebtedness, net | — | 337,124 | |||||
Repayment of collateralized indebtedness and related derivative contracts, net | — | (337,124 | ) | ||||
Dividends to stockholders | — | (1,499,935 | ) | ||||
Proceeds from notes payable | 39,856 | — | |||||
Repayment of notes payable | (74,061 | ) | (446 | ) | |||
Principal payments on finance lease obligations | (3,273 | ) | (6,019 | ) | |||
Purchase of shares of Class A common stock, pursuant to a share repurchase program | (1,199,953 | ) | — | ||||
Additions to deferred financing costs | (12,488 | ) | (22,277 | ) | |||
Contingent payment for acquisition | (500 | ) | (28,940 | ) | |||
Contributions from (distributions to) noncontrolling interests | (1,000 | ) | 5,995 | ||||
Other | — | (859 | ) | ||||
Net cash used in financing activities | (622,566 | ) | (605,062 | ) | |||
Net increase (decrease) in cash and cash equivalents | (159,483 | ) | 51,397 | ||||
Effect of exchange rate changes on cash and cash equivalents | (580 | ) | (104 | ) | |||
Net increase (decrease) in cash and cash equivalents | (160,063 | ) | 51,293 | ||||
Cash, cash equivalents and restricted cash at beginning of year | 299,038 | 330,100 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 138,975 | $ | 381,393 |
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (continued) (In thousands) (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Stockholders' Equity | Non-controlling Interest | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2019 | $ | 4,909 | $ | 1,888 | $ | 2,777,554 | $ | 226,831 | $ | — | $ | (8,212) | $ | 3,002,970 | $ | 8,096 | $ | 3,011,066 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to stockholders | — | — | — | 86,367 | — | — | 86,367 | — | 86,367 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | — | — | 43 | 43 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension liability adjustments, net of income taxes | — | — | — | — | — | (6,019) | (6,019) | — | (6,019) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of income taxes | — | — | — | — | — | (243) | (243) | — | (243) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense (equity classified) | — | — | 16,077 | — | — | — | 16,077 | — | 16,077 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable equity vested | — | — | 61,702 | — | — | 61,702 | — | 61,702 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in redeemable equity | — | — | (46,294) | — | — | — | (46,294) | — | (46,294) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A shares acquired through share repurchase program and retired | (249) | — | (599,703) | — | — | — | (599,952) | — | (599,952) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Class B to Class A shares | 16 | (16) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares pursuant to employee long term incentive plan | — | — | 244 | — | — | — | 244 | — | 244 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A shares issued in connection with acquisition | 5 | — | 10,768 | — | — | — | 10,773 | — | 10,773 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | 4,681 | $ | 1,872 | $ | 2,220,348 | $ | 313,198 | $ | — | $ | (14,474) | $ | 2,525,625 | $ | 8,139 | $ | 2,533,764 |
Six Months Ended June 30, | ||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||||
Net income | $ | 109,939 | $ | 61,212 | ||||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||||||||
Depreciation and amortization (including impairments) | 1,069,363 | 1,130,048 | ||||||||||||||||||||||||
Non-cash restructuring charges | 2,383 | 10,014 | ||||||||||||||||||||||||
Loss (gain) on investments and sale of affiliate interests, net | 257,876 | (357,871) | ||||||||||||||||||||||||
Loss (gain) on derivative contracts, net | (287,800) | 226,653 | ||||||||||||||||||||||||
Loss on extinguishment of debt and write-off of deferred financing costs | — | 159,096 | ||||||||||||||||||||||||
Amortization of deferred financing costs and discounts (premiums) on indebtedness | 48,217 | 53,876 | ||||||||||||||||||||||||
Settlement loss related to pension plan | 773 | 538 | ||||||||||||||||||||||||
Share-based compensation expense related to equity classified awards | 61,053 | 29,867 | ||||||||||||||||||||||||
Deferred income taxes | 51,105 | 19,604 | ||||||||||||||||||||||||
Decrease in right-of-use assets | 23,071 | 23,147 | ||||||||||||||||||||||||
Provision for doubtful accounts | 41,857 | 34,814 | ||||||||||||||||||||||||
Change in assets and liabilities, net of effects of acquisitions and dispositions: | ||||||||||||||||||||||||||
Accounts receivable, trade | 27,522 | 1,804 | ||||||||||||||||||||||||
Other receivables | — | 2,740 | ||||||||||||||||||||||||
Prepaid expenses and other assets | (5,577) | (72,638) | ||||||||||||||||||||||||
Amounts due from and due to affiliates | 1,588 | (3,282) | ||||||||||||||||||||||||
Accounts payable | 10,256 | 18,549 | ||||||||||||||||||||||||
Accrued liabilities | (12,796) | (98,551) | ||||||||||||||||||||||||
Deferred revenue | (17,302) | 12,022 | ||||||||||||||||||||||||
Liabilities related to interest rate swap contracts | 148,013 | 41,322 | ||||||||||||||||||||||||
Net cash provided by operating activities | 1,529,541 | 1,292,964 | ||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||
Capital expenditures | (527,805) | (657,253) | ||||||||||||||||||||||||
Payment for acquisitions, net of cash acquired | — | (172,659) | ||||||||||||||||||||||||
Proceeds related to sale of equipment and costs of disposal | (1,846) | 898 | ||||||||||||||||||||||||
Decrease in other investments | 4,008 | — | ||||||||||||||||||||||||
Additions to other intangible assets | (237) | (867) | ||||||||||||||||||||||||
Net cash used in investing activities | (525,880) | (829,881) | ||||||||||||||||||||||||
See accompanying notes to consolidated financial statements. | ||||||||||||||||||||||||||
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) (In thousands) (Unaudited) | ||||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||
Proceeds from credit facility debt, net of discounts | 200,000 | 1,940,000 | ||||||||||||||||||||||||
Repayment of credit facility debt | (228,875) | (602,830) | ||||||||||||||||||||||||
Issuance of senior notes, including premiums | 1,725,000 | 1,754,375 | ||||||||||||||||||||||||
Redemption of senior notes, including premiums and fees | — | (2,462,692) | ||||||||||||||||||||||||
Proceeds from notes payable | — | 39,856 | ||||||||||||||||||||||||
Repayment of notes payable | (48,239) | (74,061) | ||||||||||||||||||||||||
Principal payments on finance lease obligations | (11,935) | (3,273) | ||||||||||||||||||||||||
Purchase of shares of Altice USA Class A common stock pursuant to a share repurchase program | (1,381,235) | (1,199,953) | ||||||||||||||||||||||||
Additions to deferred financing costs | (5,894) | (12,488) | ||||||||||||||||||||||||
Proceeds from stock option exercises | 3,650 | — | ||||||||||||||||||||||||
Contingent payment for acquisition | (4,947) | (500) | ||||||||||||||||||||||||
Distributions to noncontrolling interests, net | — | (1,000) | ||||||||||||||||||||||||
Net cash provided by (used in) financing activities | 247,525 | (622,566) | ||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents excluding effect of exchange rate changes | 1,251,186 | (159,483) | ||||||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (940) | (580) | ||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 1,250,246 | (160,063) | ||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of year | 702,160 | 299,038 | ||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 1,952,406 | $ | 138,975 |
CSC HOLDINGS, LLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) | ||||||||||||||||||||
June 30, 2020 (Unaudited) | December 31, 2019 | |||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 1,952,128 | $ | 697,741 | ||||||||||||||||
Restricted cash | 264 | 262 | ||||||||||||||||||
Accounts receivable, trade (less allowance for doubtful accounts of $32,441 and $14,683) | 387,739 | 457,118 | ||||||||||||||||||
Prepaid expenses and other current assets | 209,916 | 211,642 | ||||||||||||||||||
Amounts due from affiliates | 3,322 | 6,774 | ||||||||||||||||||
Total current assets | 2,553,369 | 1,373,537 | ||||||||||||||||||
Property, plant and equipment, net of accumulated depreciation of $5,880,504 and $5,276,921 | 5,723,109 | 5,753,401 | ||||||||||||||||||
Right-of-use operating lease assets | 270,592 | 280,340 | ||||||||||||||||||
Investment securities pledged as collateral | 1,674,395 | 1,931,697 | ||||||||||||||||||
Derivative contracts | 225,791 | 25,207 | ||||||||||||||||||
Other assets | 106,840 | 92,622 | ||||||||||||||||||
Amortizable intangibles, net of accumulated amortization of $4,054,809 and $3,670,679 | 3,097,216 | 3,481,109 | ||||||||||||||||||
Indefinite-lived cable television franchises | 13,020,081 | 13,020,081 | ||||||||||||||||||
Goodwill | 8,142,309 | 8,142,309 | ||||||||||||||||||
Total assets | $ | 34,813,702 | $ | 34,100,303 |
CSC HOLDINGS, LLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (continued) (In thousands, except per membership unit amounts) | ||||||||||||||||||||
June 30, 2020 (Unaudited) | December 31, 2019 | |||||||||||||||||||
LIABILITIES AND MEMBER'S EQUITY | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Accounts payable | $ | 832,011 | $ | 799,618 | ||||||||||||||||
Interest payable | 381,482 | 385,655 | ||||||||||||||||||
Accrued employee related costs | 109,334 | 111,337 | ||||||||||||||||||
Amounts due to affiliates | 5,722 | 7,456 | ||||||||||||||||||
Deferred revenue | 117,925 | 124,777 | ||||||||||||||||||
Debt | 1,859,290 | 170,682 | ||||||||||||||||||
Other current liabilities | 387,212 | 378,948 | ||||||||||||||||||
Total current liabilities | 3,692,976 | 1,978,473 | ||||||||||||||||||
Other liabilities | 215,779 | 204,904 | ||||||||||||||||||
Deferred tax liability | 5,156,281 | 4,980,599 | ||||||||||||||||||
Liabilities under derivative contracts | 312,916 | 255,666 | ||||||||||||||||||
Right-of-use operating lease liability | 259,297 | 269,062 | ||||||||||||||||||
Long-term debt, net of current maturities | 24,326,397 | 24,249,603 | ||||||||||||||||||
Total liabilities | 33,963,646 | 31,938,307 | ||||||||||||||||||
Commitments and contingencies (Note 16) | ||||||||||||||||||||
Redeemable equity | 15,495 | 108,551 | ||||||||||||||||||
Member's Equity: | ||||||||||||||||||||
Retained earnings | 7,480 | 13,515 | ||||||||||||||||||
Other member's equity (100 membership units issued and outstanding) | 830,368 | 2,033,882 | ||||||||||||||||||
837,848 | 2,047,397 | |||||||||||||||||||
Accumulated other comprehensive loss | (12,118) | (3,250) | ||||||||||||||||||
Total member's equity | 825,730 | 2,044,147 | ||||||||||||||||||
Noncontrolling interest | 8,831 | 9,298 | ||||||||||||||||||
Total member's equity | 834,561 | 2,053,445 | ||||||||||||||||||
$ | 34,813,702 | $ | 34,100,303 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Revenue (including revenue from affiliates of $3,379, $496, $6,867, and $1,088 respectively) (See Note 15) | $ | 2,474,979 | $ | 2,451,081 | $ | 4,925,235 | $ | 4,847,648 | |||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Programming and other direct costs (including charges from affiliates of $1,738, $2,087, $3,927 and $3,774, respectively) (See Note 15) | 860,875 | 818,994 | 1,725,389 | 1,631,979 | |||||||||||||||||||||||||||||||
Other operating expenses (including charges from affiliates of $2,161, $2,020, $6,102 and $4,266, respectively) (See Note 15) | 542,637 | 569,459 | 1,124,946 | 1,133,891 | |||||||||||||||||||||||||||||||
Restructuring and other expense | 40,966 | 11,465 | 48,260 | 26,709 | |||||||||||||||||||||||||||||||
Depreciation and amortization (including impairments) | 521,794 | 568,620 | 1,069,363 | 1,130,048 | |||||||||||||||||||||||||||||||
1,966,272 | 1,968,538 | 3,967,958 | 3,922,627 | ||||||||||||||||||||||||||||||||
Operating income | 508,707 | 482,543 | 957,277 | 925,021 | |||||||||||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||||||||||||||
Interest expense | (351,025) | (356,818) | (716,236) | (720,857) | |||||||||||||||||||||||||||||||
Interest income | 151 | 605 | 1,810 | 2,424 | |||||||||||||||||||||||||||||||
Gain (loss) on investments and sale of affiliate interests, net | 197,596 | 103,146 | (258,223) | 357,871 | |||||||||||||||||||||||||||||||
Gain (loss) on derivative contracts, net | (152,061) | (49,624) | 287,800 | (226,653) | |||||||||||||||||||||||||||||||
Loss on interest rate swap contracts, net | (33,735) | (26,900) | (88,567) | (50,572) | |||||||||||||||||||||||||||||||
Loss on extinguishment of debt and write-off of deferred financing costs | — | (1,194) | — | (159,096) | |||||||||||||||||||||||||||||||
Other income, net | 669 | 212 | 1,592 | 292 | |||||||||||||||||||||||||||||||
(338,405) | (330,573) | (771,824) | (796,591) | ||||||||||||||||||||||||||||||||
Income before income taxes | 170,302 | 151,970 | 185,453 | 128,430 | |||||||||||||||||||||||||||||||
Income tax expense | (56,629) | (47,828) | (61,658) | (32,152) | |||||||||||||||||||||||||||||||
Net income | 113,673 | 104,142 | 123,795 | 96,278 | |||||||||||||||||||||||||||||||
Net loss (income) attributable to noncontrolling interests | (213) | (43) | 467 | 156 | |||||||||||||||||||||||||||||||
Net income attributable to CSC Holdings, LLC sole member | $ | 113,460 | $ | 104,099 | $ | 124,262 | $ | 96,434 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Net income | $ | 113,673 | $ | 104,142 | $ | 123,795 | $ | 96,278 | |||||||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||
Defined benefit pension plans: | |||||||||||||||||||||||||||||||||||
Unrecognized actuarial gain (loss) | 1,880 | (8,567) | (11,589) | (3,648) | |||||||||||||||||||||||||||||||
Applicable income taxes | (503) | 2,282 | 3,096 | 989 | |||||||||||||||||||||||||||||||
Unrecognized gain (loss) arising during period, net of income taxes | 1,377 | (6,285) | (8,493) | (2,659) | |||||||||||||||||||||||||||||||
Settlement loss included in other expense, net | 271 | 367 | 773 | 538 | |||||||||||||||||||||||||||||||
Applicable income taxes | (72) | (101) | (207) | (147) | |||||||||||||||||||||||||||||||
Settlement loss included in other expense, net, net of income taxes | 199 | 266 | 566 | 391 | |||||||||||||||||||||||||||||||
Foreign currency translation adjustment | (517) | (336) | (941) | (580) | |||||||||||||||||||||||||||||||
Applicable income taxes | — | 93 | — | 157 | |||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net | (517) | (243) | (941) | (423) | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 1,059 | (6,262) | (8,868) | (2,691) | |||||||||||||||||||||||||||||||
Comprehensive income | 114,732 | 97,880 | 114,927 | 93,587 | |||||||||||||||||||||||||||||||
Comprehensive loss (income) attributable to noncontrolling interests | (213) | (43) | 467 | 156 | |||||||||||||||||||||||||||||||
Comprehensive income attributable to CSC Holdings, LLC's sole member | $ | 114,519 | $ | 97,837 | $ | 115,394 | $ | 93,743 |
Retained Earnings | Other Member's Equity | Accumulated Other Comprehensive Income (Loss) | Total Member's Equity | Noncontrolling Interest | Total Equity | ||||||||||||||||||||||||||||||
Balance at January 1, 2020 | $ | 13,515 | $ | 2,033,882 | $ | (3,250) | $ | 2,044,147 | $ | 9,298 | $ | 2,053,445 | |||||||||||||||||||||||
Net income attributable to CSC Holdings' sole member | 10,802 | — | — | 10,802 | — | 10,802 | |||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | — | — | — | — | (680) | (680) | |||||||||||||||||||||||||||||
Pension liability adjustments, net of income taxes | — | — | (9,503) | (9,503) | — | (9,503) | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | (424) | (424) | — | (424) | |||||||||||||||||||||||||||||
Share-based compensation expense | — | 27,370 | — | 27,370 | — | 27,370 | |||||||||||||||||||||||||||||
Redeemable equity vested | — | 29,479 | — | 29,479 | — | 29,479 | |||||||||||||||||||||||||||||
Change in redeemable equity | — | 13,260 | — | 13,260 | — | 13,260 | |||||||||||||||||||||||||||||
Cash distributions to parent | (24,317) | (696,033) | — | (720,350) | — | (720,350) | |||||||||||||||||||||||||||||
Non-cash distributions to parent | — | (150,602) | — | (150,602) | — | (150,602) | |||||||||||||||||||||||||||||
Balance at March 31, 2020 | — | 1,257,356 | (13,177) | 1,244,179 | 8,618 | 1,252,797 | |||||||||||||||||||||||||||||
Net income attributable to CSC Holdings' sole member | 113,460 | — | — | 113,460 | — | 113,460 | |||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | — | — | — | — | 213 | 213 | |||||||||||||||||||||||||||||
Pension liability adjustments, net of income taxes | — | — | 1,576 | 1,576 | — | 1,576 | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | (517) | (517) | — | (517) | |||||||||||||||||||||||||||||
Share-based compensation expense | — | 33,683 | — | 33,683 | — | 33,683 | |||||||||||||||||||||||||||||
Redeemable equity vested | — | 59,081 | — | 59,081 | — | 59,081 | |||||||||||||||||||||||||||||
Change in redeemable equity | — | (8,764) | — | (8,764) | — | (8,764) | |||||||||||||||||||||||||||||
Cash distributions to parent | (105,980) | (546,403) | — | (652,383) | — | (652,383) | |||||||||||||||||||||||||||||
Non-cash contributions from parent | — | 35,415 | — | 35,415 | — | 35,415 | |||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | 7,480 | $ | 830,368 | $ | (12,118) | $ | 825,730 | $ | 8,831 | $ | 834,561 |
Retained Earnings | Other Member's Equity | Accumulated Other Comprehensive Loss | Total Member's Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||
Balance at January 1, 2019 | $ | 549,691 | $ | 3,451,937 | $ | (11,783) | $ | 3,989,845 | $ | 9,295 | $ | 3,999,140 | |||||||||||||||||||||||
Net loss attributable to CSC Holdings' sole member | (7,665) | — | — | (7,665) | — | (7,665) | |||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | — | — | — | — | (199) | (199) | |||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | (1,000) | (1,000) | |||||||||||||||||||||||||||||
Pension liability adjustments, net of income taxes | — | — | 3,752 | 3,752 | — | 3,752 | |||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of income taxes | — | — | (181) | (181) | — | (181) | |||||||||||||||||||||||||||||
Share-based compensation expense | — | 13,790 | — | 13,790 | — | 13,790 | |||||||||||||||||||||||||||||
Redeemable equity vested | — | 1,364 | — | 1,364 | — | 1,364 | |||||||||||||||||||||||||||||
Change in redeemable equity | — | (61,696) | — | (61,696) | — | (61,696) | |||||||||||||||||||||||||||||
Cash distributions to parent | (543,217) | (51,245) | — | (594,462) | — | (594,462) | |||||||||||||||||||||||||||||
Other | — | (276) | — | (276) | — | (276) | |||||||||||||||||||||||||||||
Balance at March 31, 2019 | (1,191) | 3,353,874 | (8,212) | 3,344,471 | 8,096 | 3,352,567 | |||||||||||||||||||||||||||||
Net income attributable to CSC Holdings' sole member | 104,099 | — | — | 104,099 | — | 104,099 | |||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | 43 | 43 | |||||||||||||||||||||||||||||
Pension liability adjustments, net of income taxes | — | — | (6,019) | (6,019) | — | (6,019) | |||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of income taxes | — | — | (243) | (243) | — | (243) | |||||||||||||||||||||||||||||
Share-based compensation expense | — | 16,077 | — | 16,077 | — | 16,077 | |||||||||||||||||||||||||||||
Redeemable equity vested | — | 61,702 | — | 61,702 | — | 61,702 | |||||||||||||||||||||||||||||
Change in redeemable equity | — | (46,294) | — | (46,294) | — | (46,294) | |||||||||||||||||||||||||||||
Cash distributions to parent | (90,324) | (544,704) | — | (635,028) | — | (635,028) | |||||||||||||||||||||||||||||
Impact of Cheddar acquisition | — | 10,773 | — | 10,773 | — | 10,773 | |||||||||||||||||||||||||||||
Other | — | 244 | — | 244 | — | 244 | |||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | 12,584 | $ | 2,851,672 | $ | (14,474) | $ | 2,849,782 | $ | 8,139 | $ | 2,857,921 |
Six Months Ended June 30, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income | $ | 123,795 | $ | 96,278 | ||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization (including impairments) | 1,069,363 | 1,130,048 | ||||||||||||||||||
Non-cash restructuring charges | 2,383 | 10,014 | ||||||||||||||||||
Loss (gain) on investments and sale of affiliate interests, net | 258,223 | (357,871) | ||||||||||||||||||
Loss (gain) on derivative contracts, net | (287,800) | 226,653 | ||||||||||||||||||
Loss on extinguishment of debt and write-off of deferred financing costs | — | 159,096 | ||||||||||||||||||
Amortization of deferred financing costs and discounts (premiums) on indebtedness | 48,217 | 44,751 | ||||||||||||||||||
Settlement loss related to pension plan | 773 | 538 | ||||||||||||||||||
Share-based compensation expense related to equity classified awards | 61,053 | 29,867 | ||||||||||||||||||
Deferred income taxes | 156,077 | 33,183 | ||||||||||||||||||
Decrease in right-of-use assets | 23,071 | 23,147 | ||||||||||||||||||
Provision for doubtful accounts | 41,857 | 34,814 | ||||||||||||||||||
Change in assets and liabilities, net of effects of acquisitions and dispositions: | ||||||||||||||||||||
Accounts receivable, trade | 27,522 | 1,804 | ||||||||||||||||||
Other receivables | — | 2,740 | ||||||||||||||||||
Prepaid expenses and other assets | (9,239) | (72,638) | ||||||||||||||||||
Amounts due from and due to affiliates | (114,290) | (13,668) | ||||||||||||||||||
Accounts payable | 10,256 | 18,349 | ||||||||||||||||||
Accrued liabilities | (12,794) | (98,673) | ||||||||||||||||||
Deferred revenue | (17,302) | 12,022 | ||||||||||||||||||
Liabilities related to interest rate swap contracts | 148,013 | 41,322 | ||||||||||||||||||
Net cash provided by operating activities | 1,529,178 | 1,321,776 | ||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Capital expenditures | (527,805) | (657,253) | ||||||||||||||||||
Payment for acquisitions, net of cash acquired | — | (172,659) | ||||||||||||||||||
Proceeds related to sale of equipment and costs of disposal | (1,846) | 898 | ||||||||||||||||||
Decrease in other investments | 3,662 | — | ||||||||||||||||||
Additions to other intangible assets | (237) | (867) | ||||||||||||||||||
Net cash used in investing activities | (526,226) | (829,881) | ||||||||||||||||||
See accompanying notes to consolidated financial statements. | ||||||||||||||||||||
CSC HOLDINGS LLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) (In thousands) (Unaudited) | ||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from credit facility debt, net of discounts | $ | 200,000 | $ | 1,940,000 | ||||||||||||||||
Repayment of credit facility debt | (228,875) | (602,830) | ||||||||||||||||||
Issuance of senior notes, including premiums | 1,725,000 | 1,754,375 | ||||||||||||||||||
Redemption of senior notes, including premiums and fees | — | (2,462,692) | ||||||||||||||||||
Distributions to parent | (1,372,733) | (1,229,489) | ||||||||||||||||||
Proceeds from notes payable | — | 39,856 | ||||||||||||||||||
Repayment of notes payable | (48,239) | (74,061) | ||||||||||||||||||
Principal payments on finance lease obligations | (11,935) | (3,273) | ||||||||||||||||||
Additions to deferred financing costs | (5,894) | (12,488) | ||||||||||||||||||
Contingent payment for acquisition | (4,947) | (500) | ||||||||||||||||||
Distributions to noncontrolling interests, net | — | (1,000) | ||||||||||||||||||
Net cash provided by (used in) financing activities | 252,377 | (652,102) | ||||||||||||||||||
Net increase (decrease) in cash and cash equivalents excluding effect of exchange rate changes | 1,255,329 | (160,207) | ||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (940) | (580) | ||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 1,254,389 | (160,787) | ||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of year | 698,003 | 298,784 | ||||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 1,952,392 | $ | 137,997 |
Shares of Common Stock Outstanding | |||||||||||||||||
Class A Common Stock | Class B Common Stock | ||||||||||||||||
Balance at December 31, 2019 | 446,749,307 | 186,245,832 | |||||||||||||||
Conversion of Class B common stock to Class A common stock | 51,475 | (51,475) | |||||||||||||||
Shares issued in connection with stock option exercises | 209,105 | — | |||||||||||||||
Retirement of Class A common shares in connection with the Company's stock repurchase plan (see Note 1) | (56,956,374) | — | |||||||||||||||
Shares issued from treasury upon vesting of redeemable equity and restricted awards | 3,542,515 | — | |||||||||||||||
Balance at June 30, 2020 | 393,596,028 | 186,194,357 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||||||||
Broadband | $ | 920,363 | $ | 806,250 | $ | 1,805,892 | $ | 1,581,823 | |||||||||||||||||||||||||||
Video | 952,526 | 1,018,426 | 1,899,587 | 2,035,756 | |||||||||||||||||||||||||||||||
Telephony | 117,322 | 150,232 | 242,352 | 304,696 | |||||||||||||||||||||||||||||||
Business services and wholesale | 365,564 | 357,806 | 730,094 | 708,495 | |||||||||||||||||||||||||||||||
News and advertising | 96,631 | 114,450 | 202,171 | 209,188 | |||||||||||||||||||||||||||||||
Mobile | 19,866 | — | 38,222 | — | |||||||||||||||||||||||||||||||
Other | 2,707 | 3,917 | 6,917 | 7,690 | |||||||||||||||||||||||||||||||
Total revenue | $ | 2,474,979 | $ | 2,451,081 | $ | 4,925,235 | $ | 4,847,648 |
June 30, 2020 | December 31, 2019 | ||||||||||
Customer contract costs (a) | $ | 21,724 | $ | 30,758 | |||||||
Deferred revenue (b) | 164,732 | 182,034 |
Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | |||||
(in thousands) | ||||||
Basic weighted average shares outstanding | 668,031 | 681,703 | ||||
Effect of dilution: | ||||||
Stock options | 566 | 285 | ||||
Restricted stock | 51 | 26 | ||||
Diluted weighted average shares outstanding | 668,648 | 682,014 |
Three Months Ended June 30, 2020 | Six Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | ||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Basic weighted average shares outstanding | 587,587 | 604,500 | 668,031 | 681,703 | |||||||||||||||||||||||||||||||||||||
Effect of dilution: | |||||||||||||||||||||||||||||||||||||||||
Stock options | 1,857 | 2,079 | 566 | 285 | |||||||||||||||||||||||||||||||||||||
Restricted stock | 22 | 18 | 51 | 26 | |||||||||||||||||||||||||||||||||||||
Diluted weighted average shares outstanding | 589,466 | 606,597 | 668,648 | 682,014 | |||||||||||||||||||||||||||||||||||||
Weighted average shares excluded from diluted weighted average shares outstanding: | |||||||||||||||||||||||||||||||||||||||||
Anti-dilutive shares | 28,514 | 24,362 | 1,292 | 6,350 | |||||||||||||||||||||||||||||||||||||
Performance stock units and restricted stock whose performance metrics have not been achieved. | 8,943 | 7,758 | — | — |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Residential: | |||||||||||||||
Video | $ | 1,018,426 | $ | 1,034,404 | $ | 2,035,756 | $ | 2,068,112 | |||||||
Broadband | 806,250 | 712,202 | 1,581,823 | 1,413,823 | |||||||||||
Telephony | 150,232 | 163,499 | 304,696 | 329,537 | |||||||||||
Business services and wholesale | 357,806 | 337,388 | 708,495 | 670,478 | |||||||||||
Advertising | 112,953 | 109,898 | 206,498 | 197,480 | |||||||||||
Other | 5,414 | 6,762 | 10,380 | 14,437 | |||||||||||
Total revenue | $ | 2,451,081 | $ | 2,364,153 | $ | 4,847,648 | $ | 4,693,867 |
June 30, 2019 | December 31, 2018 | ||||||
Contract assets (a) | $ | 28,236 | $ | 26,405 | |||
Deferred revenue (b) | 204,440 | 190,056 |
Six Months Ended June 30, | |||||||
2019 | 2018 | ||||||
Non-Cash Investing and Financing Activities: | |||||||
Property and equipment accrued but unpaid | $ | 245,692 | $ | 120,958 | |||
Leasehold improvements paid by landlord | — | 350 | |||||
Notes payable issued to vendor for the purchase of equipment | 16,204 | 44,466 | |||||
Right-of-use assets acquired in exchange for finance lease obligations | 6,501 | 1,349 | |||||
Deferred financing costs accrued but unpaid | 853 | — | |||||
Supplemental Data: | |||||||
Cash interest paid | 763,819 | 732,231 | |||||
Income taxes paid (refunded), net | 6,247 | 8,940 |
Six Months Ended June 30, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Non-Cash Investing and Financing Activities: | ||||||||||||||||||||
Altice USA and CSC Holdings: | ||||||||||||||||||||
Property and equipment accrued but unpaid | $ | 210,204 | $ | 245,692 | ||||||||||||||||
Notes payable issued to vendor for the purchase of equipment and other assets | 11,582 | 16,204 | ||||||||||||||||||
Right-of-use assets acquired in exchange for finance lease obligations | 78,564 | 6,501 | ||||||||||||||||||
Deferred financing costs accrued but unpaid | 1,644 | 853 | ||||||||||||||||||
CSC Holdings: | ||||||||||||||||||||
Distributions to parent | 115,187 | — | ||||||||||||||||||
Supplemental Data: | ||||||||||||||||||||
Altice USA: | ||||||||||||||||||||
Cash interest paid | 673,222 | 763,819 | ||||||||||||||||||
Income taxes paid, net | 28,406 | 6,247 | ||||||||||||||||||
CSC Holdings: | ||||||||||||||||||||
Cash interest paid | 673,222 | 724,299 | ||||||||||||||||||
Income taxes paid, net | 28,406 | 6,247 |
The following table summarizes the activity for the 2016 Restructuring Plan: | The following table summarizes the activity for the 2016 Restructuring Plan: | The following table summarizes the activity for the 2016 Restructuring Plan: | |||||||||||||||||||||||||||||||||||
Severance and Other Employee Related Costs | Facility Realignment and Other Costs | Total | Severance and Other Employee Related Costs | Facility Realignment and Other Costs | Total | ||||||||||||||||||||||||||||||||
Accrual balance at December 31, 2018 | $ | 21,454 | $ | 13,615 | $ | 35,069 | |||||||||||||||||||||||||||||||
Accrual balance at December 31, 2019 | Accrual balance at December 31, 2019 | $ | 1,676 | $ | 2,332 | $ | 4,008 | ||||||||||||||||||||||||||||||
Restructuring charges | 6,363 | 5,140 | 11,503 | Restructuring charges | — | 2,059 | 2,059 | ||||||||||||||||||||||||||||||
Payments and other | (20,749 | ) | (1,734 | ) | (22,483 | ) | Payments and other | (1,639) | (1,813) | (3,452) | |||||||||||||||||||||||||||
Impact of the adoption of ASC 842 (a) | — | (13,849 | ) | (13,849 | ) | ||||||||||||||||||||||||||||||||
Accrual balance at June 30, 2019 | $ | 7,068 | $ | 3,172 | $ | 10,240 | |||||||||||||||||||||||||||||||
Accrual balance at June 30, 2020 | Accrual balance at June 30, 2020 | $ | 37 | $ | 2,578 | $ | 2,615 |
The following table summarizes the activity for the 2019 Restructuring Plan: | |||||
Severance and Other Employee Related Costs | |||||
Accrual balance at December 31, 2019 | $ | 37,946 | |||
Restructuring charges | 3,180 | ||||
Payments and other | (18,186) | ||||
Accrual balance at June 30, 2020 | $ | 22,940 |
Balance Sheet location | June 30, 2020 | December 31, 2019 | |||||||||||||||
Operating leases: | |||||||||||||||||
Right-of-use lease assets | Right-of-use operating lease assets | $ | 270,592 | $ | 280,340 | ||||||||||||
Right-of-use lease liability, current | Other current liabilities | 40,440 | 38,836 | ||||||||||||||
Right-of-use lease liability, long-term | Right-of-use operating lease liability | 259,297�� | 269,062 | ||||||||||||||
Finance leases: | |||||||||||||||||
Right-of-use lease assets | Property, plant and equipment | 137,370 | 70,339 | ||||||||||||||
Right-of-use lease liability, current | Current portion of long-term debt | 49,478 | 22,017 | ||||||||||||||
Right-of-use lease liability, long-term | Long-term debt | 86,571 | 47,403 |
June 30, | January 1, | December 31, | |||||||||||
Balance Sheet location | 2019 | 2019 | 2018 | ||||||||||
Operating leases: | |||||||||||||
Right-of-use lease assets | Right-of-use operating lease assets | $ | 289,932 | $ | 274,292 | $ | — | ||||||
Right-of-use lease liability, current | Other current liabilities | 39,123 | 48,033 | — | |||||||||
Right-of-use lease liability, long-term | Right-of-use operating lease liability | 277,744 | 251,867 | — | |||||||||
Finance leases: | |||||||||||||
Right-of-use lease assets | Property, plant and equipment | 28,460 | 30,891 | 30,891 | |||||||||
Right-of-use lease liability, current | Current portion of long-term debt | 6,464 | 5,928 | 5,928 | |||||||||
Right-of-use lease liability, long-term | Long-term debt | 20,632 | 19,262 | 19,262 |
Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | ||||||
Operating lease expense, net | $ | 14,948 | $ | 30,226 | |||
Finance lease expense: | |||||||
Amortization of assets | 1,630 | 3,192 | |||||
Interest on lease liabilities | 388 | 746 | |||||
Total finance lease expense | 2,018 | 3,938 | |||||
$ | 16,966 | $ | 34,164 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Operating lease expense, net | $ | 14,849 | $ | 14,948 | $ | 29,853 | $ | 30,226 | |||||||||||||||||||||||||||
Finance lease expense: | |||||||||||||||||||||||||||||||||||
Amortization of assets | 6,960 | 1,630 | 11,420 | 3,192 | |||||||||||||||||||||||||||||||
Interest on lease liabilities | 1,477 | 388 | 2,504 | 746 | |||||||||||||||||||||||||||||||
Total finance lease expense | 8,437 | $ | 2,018 | 13,924 | 3,938 | ||||||||||||||||||||||||||||||
$ | 23,286 | $ | 16,966 | $ | 43,777 | $ | 34,164 |
As of June 30, | |||
2019 | |||
Right-of-use assets acquired in exchange for operating lease obligations | $ | 43,441 | |
Cash Paid For Amounts Included In Measurement of Liabilities: | |||
Operating cash flows from finance leases | 746 | ||
Operating cash flows from operating leases | 32,481 | ||
Weighted Average Remaining Lease Term: | |||
Operating leases | 9.6 years | ||
Finance leases | 4.6 years | ||
Weighted Average Discount Rate: | |||
Operating leases | 6.06 | % | |
Finance leases | 5.86 | % |
As of June 30, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Right-of-use assets acquired in exchange for operating lease obligations | $ | 15,430 | $ | 43,441 | |||||||||||||
Cash Paid For Amounts Included In Measurement of Liabilities: | |||||||||||||||||
Operating cash flows related to finance leases | 2,504 | 746 | |||||||||||||||
Operating cash flows related to operating leases | 32,126 | 32,481 | |||||||||||||||
Weighted Average Remaining Lease Term: | |||||||||||||||||
Operating leases | 9.3 years | 9.6 years | |||||||||||||||
Finance leases | 2.9 years | 4.6 years | |||||||||||||||
Weighted Average Discount Rate: | |||||||||||||||||
Operating leases | 5.86 | % | 6.06 | % | |||||||||||||
Finance leases | 5.66 | % | 5.86 | % |
Finance leases | Operating leases | ||||||||||
2020 (excluding the six months ended June 30, 2020) | $ | 30,527 | $ | 27,389 | |||||||
2021 | 50,543 | 43,615 | |||||||||
2022 | 46,298 | 49,668 | |||||||||
2023 | 15,501 | 39,694 | |||||||||
2024 | 3,413 | 35,261 | |||||||||
Thereafter | 300 | 200,665 | |||||||||
Total future minimum lease payments, undiscounted | 146,582 | 396,292 | |||||||||
Less: Imputed interest | (10,533) | (96,555) | |||||||||
Present value of future minimum lease payments | $ | 136,049 | $ | 299,737 |
Financing leases | Operating leases | ||||||
2019 (excluding the six months ended June 30, 2019) | $ | 3,874 | $ | 27,832 | |||
2020 | 7,173 | 50,248 | |||||
2021 | 5,853 | 45,440 | |||||
2022 | 5,824 | 47,024 | |||||
2023 | 5,282 | 36,869 | |||||
Thereafter | 2,884 | 218,129 | |||||
Total future minimum lease payments, undiscounted | 30,890 | 425,542 | |||||
Less: Imputed interest | (3,794 | ) | (108,675 | ) | |||
Present value of future minimum lease payments | $ | 27,096 | $ | 316,867 |
Financing leases | Operating leases | ||||||
2019 | $ | 5,928 | $ | 47,905 | |||
2020 | 5,087 | 50,356 | |||||
2021 | 3,969 | 43,362 | |||||
2022 | 4,146 | 34,882 | |||||
2023 | 3,828 | 25,234 | |||||
Thereafter | 2,232 | 167,941 |
As of June 30, 2019 | As of December 31, 2018 | ||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Estimated Useful Lives | |||||||||||||||||||
Customer relationships | $ | 6,017,994 | $ | (2,512,269 | ) | $ | 3,505,725 | $ | 5,970,884 | $ | (2,162,110 | ) | $ | 3,808,774 | 8 to 18 years | ||||||||||
Trade names | 1,081,083 | (749,615 | ) | 331,468 | 1,067,083 | (701,998 | ) | 365,085 | 2 to 5 years | ||||||||||||||||
Other amortizable intangibles | 50,611 | (22,801 | ) | 27,810 | 37,644 | (18,679 | ) | 18,965 | 1 to 15 years | ||||||||||||||||
$ | 7,149,688 | $ | (3,284,685 | ) | $ | 3,865,003 | $ | 7,075,611 | $ | (2,882,787 | ) | $ | 4,192,824 |
As of June 30, 2020 | As of December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Estimated Useful Lives | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer relationships | $ | 6,017,524 | $ | (3,174,454) | $ | 2,843,070 | $ | 6,017,524 | $ | (2,843,561) | $ | 3,173,963 | 8 to 18 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Trade names | 1,081,083 | (846,929) | 234,154 | 1,081,083 | (798,484) | 282,599 | 2 to 5 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other amortizable intangibles | 53,418 | (33,426) | 19,992 | 53,181 | (28,634) | 24,547 | 1 to 15 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 7,152,025 | $ | (4,054,809) | $ | 3,097,216 | $ | 7,151,788 | $ | (3,670,679) | $ | 3,481,109 |
Goodwill as of December 31, 2018 | $ | 8,012,416 | |
Goodwill recorded in connection with the acquisition of Cheddar Inc. | 125,651 | ||
Adjustments to purchase accounting | 19 | ||
Goodwill as of June 30, 2019 | $ | 8,138,086 |
Interest Rate | June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Date Issued | Maturity Date | Principal Amount | Carrying Amount (a) | Principal Amount | Carrying Amount (a) | ||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
November 15, 2011 | November 15, 2021 | 6.750 | % | $ | 1,000,000 | $ | 984,412 | $ | 1,000,000 | $ | 979,178 | ||||||||||||||||||||||||||||||||||||||||||
September 27, 2012 | September 15, 2022 | 5.875 | % | 649,024 | 608,861 | 649,024 | 600,849 | ||||||||||||||||||||||||||||||||||||||||||||||
May 23, 2014 | June 1, 2024 | 5.250 | % | 750,000 | 690,331 | 750,000 | 683,940 | ||||||||||||||||||||||||||||||||||||||||||||||
October 18, 2018 | July 15, 2025 | 7.750 | % | (e) | 1,740 | 1,698 | 1,740 | 1,695 | |||||||||||||||||||||||||||||||||||||||||||||
October 9, 2015 | October 15, 2025 | 10.875 | % | 1,684,221 | 1,666,435 | 1,684,221 | 1,665,237 | ||||||||||||||||||||||||||||||||||||||||||||||
October 18, 2018 | April 1, 2028 | 7.500 | % | 4,118 | 4,112 | 4,118 | 4,112 | ||||||||||||||||||||||||||||||||||||||||||||||
November 27, 2018 | July 15, 2025 | 7.750 | % | (e) | 617,881 | 606,479 | 617,881 | 605,583 | |||||||||||||||||||||||||||||||||||||||||||||
November 27, 2018 | April 1, 2028 | 7.500 | % | 1,045,882 | 1,044,349 | 1,045,882 | 1,044,278 | ||||||||||||||||||||||||||||||||||||||||||||||
July 10 and October 7, 2019 | January 15, 2030 | 5.750 | % | 2,250,000 | 2,287,660 | 2,250,000 | 2,289,168 | ||||||||||||||||||||||||||||||||||||||||||||||
June 16, 2020 | December 1, 2030 | 4.625 | % | 625,000 | 622,176 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Senior Guaranteed Notes: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
October 9, 2015 | October 15, 2025 | 6.625 | % | 1,000,000 | 990,233 | 1,000,000 | 989,483 | ||||||||||||||||||||||||||||||||||||||||||||||
September 23, 2016 | April 15, 2027 | 5.500 | % | 1,310,000 | 1,305,688 | 1,310,000 | 1,305,430 | ||||||||||||||||||||||||||||||||||||||||||||||
January 29, 2018 | February 1, 2028 | 5.375 | % | 1,000,000 | 993,116 | 1,000,000 | 992,757 | ||||||||||||||||||||||||||||||||||||||||||||||
November 27, 2018 | July 15, 2023 | 5.375 | % | (e) | 1,095,825 | 1,083,676 | 1,095,825 | 1,081,879 | |||||||||||||||||||||||||||||||||||||||||||||
November 27, 2018 | May 15, 2026 | 5.500 | % | 1,498,806 | 1,486,760 | 1,498,806 | 1,485,911 | ||||||||||||||||||||||||||||||||||||||||||||||
January 24, 2019 | February 1, 2029 | 6.500 | % | 1,750,000 | 1,747,118 | 1,750,000 | 1,746,996 | ||||||||||||||||||||||||||||||||||||||||||||||
June 16, 2020 | December 1, 2030 | 4.125 | % | 1,100,000 | 1,095,311 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
17,382,497 | 17,218,415 | 15,657,497 | 15,476,496 | ||||||||||||||||||||||||||||||||||||||||||||||||||
CSC Holdings Restricted Group: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Revolving Credit Facility | (c) | (c) | (b) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Term Loan B | July 17, 2025 | 2.435 | % | 2,910,000 | 2,897,887 | 2,925,000 | 2,911,729 | ||||||||||||||||||||||||||||||||||||||||||||||
Incremental Term Loan B-3 | January 15, 2026 | 2.435 | % | 1,259,063 | 1,254,243 | 1,265,438 | 1,260,200 | ||||||||||||||||||||||||||||||||||||||||||||||
Incremental Term Loan B-5 | April 15, 2027 | 2.685 | % | 2,992,500 | 2,970,328 | 3,000,000 | 2,976,358 | ||||||||||||||||||||||||||||||||||||||||||||||
7,161,563 | 7,122,458 | 7,190,438 | 7,148,287 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Collateralized indebtedness (see Note 11) | 1,699,566 | 1,601,107 | 1,699,566 | 1,585,088 | |||||||||||||||||||||||||||||||||||||||||||||||||
Finance lease obligations (see Note 8) | 136,049 | 136,049 | 69,420 | 69,420 | |||||||||||||||||||||||||||||||||||||||||||||||||
Notes payable and supply chain financing (d) | 119,889 | 107,658 | 156,519 | 140,994 | |||||||||||||||||||||||||||||||||||||||||||||||||
26,499,564 | 26,185,687 | 24,773,440 | 24,420,285 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Less: current portion of credit facility debt | (72,750) | (72,750) | (65,250) | (65,250) | |||||||||||||||||||||||||||||||||||||||||||||||||
Less: current portion of senior guaranteed notes | (1,095,825) | (1,083,676) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Less: current portion of senior notes | (619,621) | (608,177) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Less: current portion of finance lease obligations | (49,478) | (49,478) | (22,017) | (22,017) | |||||||||||||||||||||||||||||||||||||||||||||||||
Less: current portion of notes payable and supply chain financing | (45,209) | (45,209) | (83,415) | (83,415) | |||||||||||||||||||||||||||||||||||||||||||||||||
(1,882,883) | (1,859,290) | (170,682) | (170,682) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | $ | 24,616,681 | $ | 24,326,397 | $ | 24,602,758 | $ | 24,249,603 |
Interest Rate at June 30, 2019 | June 30, 2019 | December 31, 2018 | |||||||||||||||||||
Date Issued | Maturity Date | Principal Amount | Carrying Amount (a) | Principal Amount | Carrying Amount (a) | ||||||||||||||||
CSC Holdings Senior Notes: | |||||||||||||||||||||
February 12, 2009 | February 15, 2019 | 8.625 | % | $ | — | $ | — | $ | 526,000 | $ | 527,749 | ||||||||||
November 15, 2011 | November 15, 2021 | 6.750 | % | 1,000,000 | 974,093 | 1,000,000 | 969,285 | ||||||||||||||
May 23, 2014 | June 1, 2024 | 5.250 | % | 750,000 | 677,720 | 750,000 | 671,829 | ||||||||||||||
October 9, 2015 | January 15, 2023 | 10.125 | % | — | — | 1,800,000 | 1,781,424 | ||||||||||||||
October 9, 2015 | October 15, 2025 | 10.875 | % | 1,684,221 | 1,664,092 | 1,684,221 | 1,663,027 | ||||||||||||||
November 27, 2018 | December 15, 2021 | 5.125 | % | 1,240,762 | 1,168,267 | 1,240,762 | 1,155,264 | ||||||||||||||
November 27, 2018 | July 15, 2025 | 7.750 | % | 617,881 | 604,712 | 617,881 | 603,889 | ||||||||||||||
November 27, 2018 | April 1, 2028 | 7.500 | % | 1,045,882 | 1,044,209 | 1,045,882 | 1,044,143 | ||||||||||||||
CSC Holdings Senior Guaranteed Notes: | |||||||||||||||||||||
October 9, 2015 | October 15, 2025 | 6.625 | % | 1,000,000 | 988,750 | 1,000,000 | 988,052 | ||||||||||||||
September 23, 2016 | April 15, 2027 | 5.500 | % | 1,310,000 | 1,305,177 | 1,310,000 | 1,304,936 | ||||||||||||||
January 29, 2018 | February 1, 2028 | 5.375 | % | 1,000,000 | 992,403 | 1,000,000 | 992,064 | ||||||||||||||
November 27, 2018 | July 15, 2023 | 5.375 | % | 1,095,825 | 1,080,114 | 1,095,825 | 1,078,428 | ||||||||||||||
November 27, 2018 | May 15, 2026 | 5.500 | % | 1,498,806 | 1,485,076 | 1,498,806 | 1,484,278 | ||||||||||||||
January 24, 2019 | February 1, 2029 | 6.500 | % | 1,750,000 | 1,746,881 | — | — | ||||||||||||||
Cablevision Senior Notes (b): | |||||||||||||||||||||
April 15, 2010 | April 15, 2020 | 8.000 | % | 500,000 | 497,045 | 500,000 | 495,302 | ||||||||||||||
September 27, 2012 | September 15, 2022 | 5.875 | % | 649,024 | 593,104 | 649,024 | 585,817 | ||||||||||||||
October 19, 2018 | December 15, 2021 (e) | 5.125 | % | 8,886 | 8,367 | 8,886 | 8,274 | ||||||||||||||
October 19, 2018 | July 15, 2025 | 7.750 | % | 1,740 | 1,692 | 1,740 | 1,690 | ||||||||||||||
October 19, 2018 | April 1, 2028 | 7.500 | % | 4,118 | 4,111 | 4,118 | 4,110 | ||||||||||||||
15,157,145 | 14,835,813 | 15,733,145 | 15,359,561 | ||||||||||||||||||
CSC Holdings Credit Facility Debt (Restricted Group): | |||||||||||||||||||||
Revolving Credit Facility (c) (d) | 4.730 | % | 622,857 | 609,754 | 250,000 | 231,425 | |||||||||||||||
Term Loan B | July 17, 2025 | 4.644 | % | 2,940,000 | 2,925,564 | 2,955,000 | 2,939,425 | ||||||||||||||
Incremental Term Loan B-2 | January 25, 2026 | 4.894 | % | 1,485,000 | 1,469,340 | 1,492,500 | 1,475,778 | ||||||||||||||
Incremental Term Loan B-3 | January 15, 2026 | 4.644 | % | 1,271,813 | 1,266,155 | 1,275,000 | 1,268,931 | ||||||||||||||
Incremental Term Loan B-4 | April 15, 2027 | 5.394 | % | 1,000,000 | 986,518 | — | — | ||||||||||||||
7,319,670 | 7,257,331 | 5,972,500 | 5,915,559 | ||||||||||||||||||
Collateralized indebtedness (see Note 11) | 1,459,638 | 1,417,647 | 1,459,638 | 1,406,182 | |||||||||||||||||
Finance lease obligations (see Note 8) | 27,096 | 27,096 | 25,190 | 25,190 | |||||||||||||||||
Notes payable and supply chain financing (f) | 102,622 | 102,622 | 106,108 | 106,108 | |||||||||||||||||
24,066,171 | 23,640,509 | 23,296,581 | 22,812,600 | ||||||||||||||||||
Less: current portion of senior notes debt | (508,886 | ) | (505,412 | ) | — | — | |||||||||||||||
Less: current portion of credit facility debt | (67,750 | ) | (67,750 | ) | (54,563 | ) | (54,563 | ) | |||||||||||||
Less: current portion of notes payable and supply chain financing | (80,597 | ) | (80,597 | ) | (98,134 | ) | (98,134 | ) | |||||||||||||
Less: current portion of finance lease obligations | (6,464 | ) | (6,464 | ) | (5,928 | ) | (5,928 | ) | |||||||||||||
(663,697 | ) | (660,223 | ) | (158,625 | ) | (158,625 | ) | ||||||||||||||
Long-term debt | $ | 23,402,474 | $ | 22,980,286 | $ | 23,137,956 | $ | 22,653,975 |
Three months ended June 30, 2019 | Six months ended June 30, 2019 | ||||||||||
CSC Holdings 10.125% Senior Notes due 2023 | $ | — | $ | 154,666 | |||||||
Refinancing and subsequent amendment to CSC Holdings credit facility | 1,194 | 4,430 | |||||||||
$ | 1,194 | $ | 159,096 | ||||||||
Three Months Ended | Six Months Ended | ||||||
June 30, 2019 | |||||||
CSC Holdings 10.125% Senior Notes due 2023 | $ | — | $ | 154,666 | |||
Refinancing and subsequent amendment to CSC Holdings credit facility | 1,194 | 4,430 | |||||
$ | 1,194 | $ | 159,096 | ||||
Three Months Ended | Six Months Ended | ||||||
June 30, 2018 | |||||||
Cablevision 7.75% Senior Notes due 2018 | $ | 1 | $ | 4,706 | |||
Cequel 6.375% Senior Notes due 2020 | 36,910 | 36,910 | |||||
$ | 36,911 | $ | 41,616 |
2020 (excluding the six months ended June 30, 2020) (a) | $ | 1,782,180 | ||||||||||||||||||
2021 | 1,092,181 | |||||||||||||||||||
2022 | 728,667 | |||||||||||||||||||
2023 | 1,835,383 | |||||||||||||||||||
2024 | 822,889 | |||||||||||||||||||
Thereafter | 20,102,215 |
2019 (excluding the six months ended June 30, 2019) | $ | 74,124 | |
2020 | 623,128 | ||
2021 | 3,776,104 | ||
2022 | 723,807 | ||
2023 | 1,164,330 | ||
Thereafter | 17,677,582 |
Derivatives Not Designated as Hedging Instruments | Balance Sheet Location | Fair Value at | ||||||||
June 30, 2019 | December 31, 2018 | |||||||||
Asset Derivatives: | ||||||||||
Interest rate swap contracts | Derivative contracts, current | $ | — | $ | 1,975 | |||||
Prepaid forward contracts | Derivative contracts, long-term | — | 109,344 | |||||||
— | 111,319 | |||||||||
Liability Derivatives: | ||||||||||
Interest rate swap contracts | Other current liabilities | (478 | ) | (70 | ) | |||||
Prepaid forward contracts | Liabilities under derivative contracts, long-term | (117,309 | ) | — | ||||||
Interest rate swap contracts | Liabilities under derivative contracts, long-term | (171,847 | ) | (132,908 | ) | |||||
$ | (289,634 | ) | $ | (132,978 | ) |
Derivatives Not Designated as Hedging Instruments | Balance Sheet Location | Fair Value at | ||||||||||||||||||||||||
June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||
Asset Derivatives: | ||||||||||||||||||||||||||
Interest rate swap contracts | Derivative contracts, long-term | $ | 4,058 | $ | — | |||||||||||||||||||||
Prepaid forward contracts | Derivative contracts, long-term | 221,733 | 25,207 | |||||||||||||||||||||||
225,791 | 25,207 | |||||||||||||||||||||||||
Liability Derivatives: | ||||||||||||||||||||||||||
Interest rate swap contracts | Other current liabilities | (4,016) | (469) | |||||||||||||||||||||||
Prepaid forward contracts | Liabilities under derivative contracts, long-term | (3,520) | (94,795) | �� | ||||||||||||||||||||||
Interest rate swap contracts | Liabilities under derivative contracts, long-term | (309,396) | (160,871) | |||||||||||||||||||||||
$ | (316,932) | $ | (256,135) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Gain (loss) on derivative contracts related to change in the value of equity derivative contracts related to Comcast common stock | $ | (152,061) | $ | (49,624) | $ | 287,800 | $ | (226,653) | |||||||||||||||||||||||||||
Change in the fair value of Comcast common stock included in gain (loss) on investments | 197,594 | 98,794 | (257,302) | 353,519 | |||||||||||||||||||||||||||||||
Loss on interest rate swap contracts, net of a gain of $74,835 recorded in the 2020 six month period in connection with the early termination of the swap agreements discussed below | (33,735) | (26,900) | (88,567) | (50,572) |
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||
June 30, 2019 | June 30, 2018 | |||||||||||||||
Gain (loss) on derivative contracts (related to change in the value of equity derivative contracts related to Comcast common stock) | $ | (49,624 | ) | $ | (226,653 | ) | $ | 42,159 | $ | 210,511 | ||||||
Change in fair value of Comcast common stock included in gain (loss) on investments | 98,794 | 353,519 | (58,420 | ) | (310,996 | ) | ||||||||||
Loss on interest rate swap contracts | (26,900 | ) | (50,572 | ) | (12,929 | ) | (44,851 | ) |
Trade Date | Maturity Date | Notional Amount | Company Pays | Company Receives | ||||||||||||||||||||||
December 2018 | January 2025 | $ | 500,000 | Fixed rate of 1.53% | Three-month LIBOR | |||||||||||||||||||||
December 2018 | January 2022 | 500,000 | Fixed rate of 2.733% | Three-month LIBOR | ||||||||||||||||||||||
December 2018 | January 2025 | 500,000 | Fixed rate of 1.625% | Three-month LIBOR | ||||||||||||||||||||||
December 2018 | December 2026 | 750,000 | Fixed rate of 2.9155% | Three-month LIBOR | ||||||||||||||||||||||
December 2018 | December 2026 | 750,000 | Fixed rate of 2.9025% | Three-month LIBOR | ||||||||||||||||||||||
March 2020 | January 2025 | 500,000 | Fixed rate of 1.458% | Three-month LIBOR | ||||||||||||||||||||||
March 2020 | January 2022 | 500,000 | Three-month LIBOR | Fixed rate of 2.733% | ||||||||||||||||||||||
April 2020 | April 2021 | 2,850,000 | Six-month LIBOR minus 0.5185% | One-month LIBOR |
Fair Value Hierarchy | June 30, 2019 | December 31, 2018 | |||||||
Assets: | |||||||||
Money market funds | Level I | $ | 26,280 | $ | 91,852 | ||||
Investment securities pledged as collateral | Level I | 1,816,147 | 1,462,626 | ||||||
Prepaid forward contracts | Level II | — | 109,344 | ||||||
Interest rate swap contracts | Level II | — | 1,975 | ||||||
Liabilities: | |||||||||
Prepaid forward contracts | Level II | 117,309 | — | ||||||
Interest rate swap contracts | Level II | 172,325 | 132,978 | ||||||
Contingent consideration related to 2017 and 2018 acquisitions | Level III | 5,139 | 6,195 |
Fair Value Hierarchy | June 30, 2020 | December 31, 2019 | |||||||||||||||
Assets: | |||||||||||||||||
Money market funds | Level I | $ | 1,842,086 | $ | 563,704 | ||||||||||||
Investment securities pledged as collateral | Level I | 1,674,395 | 1,931,697 | ||||||||||||||
Prepaid forward contracts | Level II | 221,733 | 25,207 | ||||||||||||||
Interest rate swap contracts | Level II | 4,058 | — | ||||||||||||||
Liabilities: | |||||||||||||||||
Prepaid forward contracts | Level II | 3,520 | 94,795 | ||||||||||||||
Interest rate swap contracts | Level II | 313,412 | 161,340 | ||||||||||||||
Contingent consideration related to 2017 and 2018 acquisitions | Level III | 1,767 | 7,250 |
June 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||
Fair Value Hierarchy | Carrying Amount (a) | Estimated Fair Value | Carrying Amount (a) | Estimated Fair Value | |||||||||||||||||||||||||||||||||||||
Credit facility debt | Level II | $ | 7,122,458 | $ | 7,161,563 | $ | 7,148,287 | $ | 7,190,438 | ||||||||||||||||||||||||||||||||
Collateralized indebtedness | Level II | 1,601,107 | 1,696,376 | 1,585,088 | 1,611,095 | ||||||||||||||||||||||||||||||||||||
Senior guaranteed notes | Level II | 8,701,902 | 9,094,711 | 7,602,456 | 8,220,518 | ||||||||||||||||||||||||||||||||||||
Senior notes | Level II | 8,516,513 | 9,037,404 | 7,874,040 | 8,728,870 | ||||||||||||||||||||||||||||||||||||
Notes payable and supply chain financing | Level II | 107,658 | 108,619 | 140,994 | 141,713 | ||||||||||||||||||||||||||||||||||||
$ | 26,049,638 | $ | 27,098,673 | $ | 24,350,865 | $ | 25,892,634 |
June 30, 2019 | December 31, 2018 | ||||||||||||||||
Fair Value Hierarchy | Carrying Amount (a) | Estimated Fair Value | Carrying Amount (a) | Estimated Fair Value | |||||||||||||
CSC Holdings debt instruments: | |||||||||||||||||
Credit facility debt | Level II | $ | 7,257,331 | $ | 7,319,670 | $ | 5,915,559 | $ | 5,972,500 | ||||||||
Collateralized indebtedness | Level II | 1,417,647 | 1,413,259 | 1,406,182 | 1,374,203 | ||||||||||||
Senior guaranteed notes | Level II | 7,598,401 | 8,038,302 | 5,847,758 | 5,646,468 | ||||||||||||
Senior notes and debentures | Level II | 6,133,093 | 6,824,137 | 8,416,610 | 8,972,722 | ||||||||||||
Notes payable and supply chain financing | Level II | 102,622 | 103,341 | 106,108 | 105,836 | ||||||||||||
Cablevision debt instruments: | |||||||||||||||||
Senior notes and debentures | Level II | 1,104,319 | 1,213,355 | 1,095,193 | 1,163,843 | ||||||||||||
$ | 23,613,413 | $ | 24,912,064 | $ | 22,787,410 | $ | 23,235,572 |
Number of Time Vesting Awards | Number of Performance Based Vesting Awards | Weighted Average Grant Date Fair Value | |||||||
Balance, December 31, 2018 | 83,575,000 | 10,000,000 | $ | 1.14 | |||||
Vested | (21,918,750 | ) | — | 0.79 | |||||
Forfeited | (3,000,000 | ) | — | 0.91 | |||||
Balance, June 30, 2019 | 58,656,250 | 10,000,000 | $ | 1.31 |
Number of Time Vesting Awards | Weighted Average Grant Date Fair Value | ||||||||||
Balance, December 31, 2019 | 37,518,750 | $ | 2.35 | ||||||||
Vested | (27,343,750) | 2.31 | |||||||||
Forfeited | (212,500) | 0.56 | |||||||||
Balance, June 30, 2020 | 9,962,500 | $ | 2.71 |
Shares Under Option | Weighted Average Exercise Price Per Share | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (a) | ||||||||||||||||||||||||||
Balance at December 31, 2019 | 14,083,741 | $ | 19.12 | 8.74 | $ | 112,915 | |||||||||||||||||||||||
Granted | 26,093,256 | 28.32 | |||||||||||||||||||||||||||
Exercised | (209,105) | 17.46 | |||||||||||||||||||||||||||
Forfeited | (1,749,476) | 21.44 | |||||||||||||||||||||||||||
Balance at June 30, 2020 | 38,218,416 | 25.31 | 9.14 | 49,108,141 | |||||||||||||||||||||||||
Options exercisable at June 30, 2020 | 788,053 | $ | 17.70 | 7.17 | $ | 3,848,578 |
Shares Under Option | Weighted Average Exercise Price Per Share | Weighted Average Remaining Contractual Term (in years) | ||||||||||||||
Time Vesting | Performance Based Vesting | Aggregate Intrinsic Value (a) | ||||||||||||||
Balance at December 31, 2018 | 11,230,168 | 73,639 | $ | 17.50 | 9.47 | $ | — | |||||||||
Granted | 2,489,542 | — | 22.45 | |||||||||||||
Forfeited | (288,734 | ) | (16,736 | ) | 17.63 | |||||||||||
Balance at June 30, 2019 | 13,430,976 | 56,903 | 18.41 | 9.11 | 80,126 | |||||||||||
Options exercisable at June 30, 2019 | — | — | — | — | — |
Risk-free interest rate | 1.45% | ||||
Expected life (in years) | 6.38 | ||||
Dividend yield | —% | ||||
Volatility | 28.46% | ||||
Grant date fair value | $7.74 |
Risk-free interest rate | 1.46% | ||||
Expected life (in years) | 4 and 6 | ||||
Dividend yield | —% | ||||
Volatility | 34.22% |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenue | $ | 496 | $ | 727 | $ | 1,088 | $ | 852 | |||||||
Operating expenses: | |||||||||||||||
Programming and other direct costs | $ | (2,087 | ) | $ | (3,865 | ) | $ | (3,774 | ) | $ | (5,019 | ) | |||
Other operating expenses, net | (2,020 | ) | (6,255 | ) | (4,266 | ) | (14,249 | ) | |||||||
Operating expenses, net | (4,107 | ) | (10,120 | ) | (8,040 | ) | (19,268 | ) | |||||||
Other income, net | — | 149 | — | 149 | |||||||||||
Net charges | $ | (3,611 | ) | $ | (9,244 | ) | $ | (6,952 | ) | $ | (18,267 | ) | |||
Capital Expenditures | $ | 2,536 | $ | 1,108 | $ | 5,890 | $ | 2,734 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Revenue | $ | 3,379 | $ | 496 | $ | 6,867 | $ | 1,088 | |||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Programming and other direct costs | $ | (1,738) | $ | (2,087) | $ | (3,927) | $ | (3,774) | |||||||||||||||||||||||||||
Other operating expenses, net | (2,161) | (2,020) | (6,102) | (4,266) | |||||||||||||||||||||||||||||||
Operating expenses, net | (3,899) | (4,107) | (10,029) | (8,040) | |||||||||||||||||||||||||||||||
Net charges - Altice USA | $ | (520) | $ | (3,611) | $ | (3,162) | $ | (6,952) | |||||||||||||||||||||||||||
Capital Expenditures | $ | 3,676 | $ | 2,536 | $ | 10,901 | $ | 5,890 |
June 30, 2019 | December 31, 2018 | ||||||
Due from: | |||||||
CVC 3 (a) | $ | — | $ | 13,100 | |||
Newsday (b) | 476 | 490 | |||||
Altice Europe (b) | 332 | 1,271 | |||||
Altice Dominican Republic (b) | — | 2,550 | |||||
Other Altice Europe subsidiaries (b) | 414 | 146 | |||||
$ | 1,222 | $ | 17,557 | ||||
Due to: | |||||||
Newsday (b) | $ | — | $ | 22 | |||
Altice Europe (c) | — | 15,235 | |||||
Altice Labs S.A. (d) | 1,935 | 4,864 | |||||
Other Altice Europe subsidiaries (d) | 4,544 | 5,975 | |||||
$ | 6,479 | $ | 26,096 |
Altice USA | CSC Holdings | Altice USA and CSC Holdings | ||||||||||||||||||||||||
June 30, 2020 | June 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||
Due from: | ||||||||||||||||||||||||||
Altice Europe | $ | 432 | $ | 302 | $ | 4,076 | ||||||||||||||||||||
Other affiliates and related parties | 3,020 | 3,020 | 2,698 | |||||||||||||||||||||||
$ | 3,452 | $ | 3,322 | $ | 6,774 | |||||||||||||||||||||
Due to: | ||||||||||||||||||||||||||
Altice Europe | $ | 5,722 | $ | 5,722 | $ | 7,456 | ||||||||||||||||||||
$ | 5,722 | $ | 5,722 | $ | 7,456 |
Amounts due from affiliates presented in the table above represent amounts paid by the Company on behalf of or for services provided |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenue: | |||||||||||||||
Residential: | |||||||||||||||
Video | $ | 1,018,426 | $ | 1,034,404 | $ | 2,035,756 | $ | 2,068,112 | |||||||
Broadband | 806,250 | 712,202 | 1,581,823 | 1,413,823 | |||||||||||
Telephony | 150,232 | 163,499 | 304,696 | 329,537 | |||||||||||
Business services and wholesale | 357,806 | 337,388 | 708,495 | 670,478 | |||||||||||
Advertising | 112,953 | 109,898 | 206,498 | 197,480 | |||||||||||
Other | 5,414 | 6,762 | 10,380 | 14,437 | |||||||||||
Total revenue | 2,451,081 | 2,364,153 | 4,847,648 | 4,693,867 | |||||||||||
Operating expenses: | |||||||||||||||
Programming and other direct costs | 818,994 | 795,127 | 1,631,979 | 1,582,488 | |||||||||||
Other operating expenses | 569,459 | 575,749 | 1,133,891 | 1,158,772 | |||||||||||
Restructuring and other expense | 11,465 | 9,691 | 26,709 | 13,278 | |||||||||||
Depreciation and amortization (including impairments) | 568,620 | 648,527 | 1,130,048 | 1,291,232 | |||||||||||
Operating income | 482,543 | 335,059 | 925,021 | 648,097 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense, net | (380,613 | ) | (385,230 | ) | (767,077 | ) | (759,385 | ) | |||||||
Gain (loss) on investments and sale of affiliate interests, net | 103,146 | (45,113 | ) | 357,871 | (293,715 | ) | |||||||||
Gain (loss) on derivative contracts, net | (49,624 | ) | 42,159 | (226,653 | ) | 210,511 | |||||||||
Loss on interest rate swap contracts | (26,900 | ) | (12,929 | ) | (50,572 | ) | (44,851 | ) | |||||||
Loss on extinguishment of debt and write-off of deferred financing costs | (1,194 | ) | (36,911 | ) | (159,096 | ) | (41,616 | ) | |||||||
Other income (expense), net | 212 | (629 | ) | 292 | (12,287 | ) | |||||||||
Income (loss) before income taxes | 127,570 | (103,594 | ) | 79,786 | (293,246 | ) | |||||||||
Income tax benefit (expense) | (41,160 | ) | 5,590 | (18,574 | ) | 66,293 | |||||||||
Net income (loss) | 86,410 | (98,004 | ) | 61,212 | (226,953 | ) | |||||||||
Net loss (income) attributable to noncontrolling interests | (43 | ) | 149 | 156 | 147 | ||||||||||
Net income (loss) attributable to Altice USA, Inc. stockholders | $ | 86,367 | $ | (97,855 | ) | $ | 61,368 | $ | (226,806 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||||||||
Broadband | $ | 920,363 | $ | 806,250 | $ | 1,805,892 | $ | 1,581,823 | |||||||||||||||||||||||||||
Video | 952,526 | 1,018,426 | 1,899,587 | 2,035,756 | |||||||||||||||||||||||||||||||
Telephony | 117,322 | 150,232 | 242,352 | 304,696 | |||||||||||||||||||||||||||||||
Business services and wholesale | 365,564 | 357,806 | 730,094 | 708,495 | |||||||||||||||||||||||||||||||
News and advertising | 96,631 | 114,450 | 202,171 | 209,188 | |||||||||||||||||||||||||||||||
Mobile | 19,866 | — | 38,222 | — | |||||||||||||||||||||||||||||||
Other | 2,707 | 3,917 | 6,917 | 7,690 | |||||||||||||||||||||||||||||||
Total revenue | 2,474,979 | 2,451,081 | 4,925,235 | 4,847,648 | |||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Programming and other direct costs | 860,875 | 818,994 | 1,725,389 | 1,631,979 | |||||||||||||||||||||||||||||||
Other operating expenses | 542,637 | 569,459 | 1,124,946 | 1,133,891 | |||||||||||||||||||||||||||||||
Restructuring and other expense | 40,966 | 11,465 | 48,260 | 26,709 | |||||||||||||||||||||||||||||||
Depreciation and amortization (including impairments) | 521,794 | 568,620 | 1,069,363 | 1,130,048 | |||||||||||||||||||||||||||||||
Operating income | 508,707 | 482,543 | 957,277 | 925,021 | |||||||||||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||||||||||||||
Interest expense, net | (350,874) | (380,613) | (714,426) | (767,077) | |||||||||||||||||||||||||||||||
Gain (loss) on investments and sale of affiliate interests, net | 197,597 | 103,146 | (257,876) | 357,871 | |||||||||||||||||||||||||||||||
Gain (loss) on derivative contracts, net | (152,061) | (49,624) | 287,800 | (226,653) | |||||||||||||||||||||||||||||||
Loss on interest rate swap contracts, net | (33,735) | (26,900) | (88,567) | (50,572) | |||||||||||||||||||||||||||||||
Loss on extinguishment of debt and write-off of deferred financing costs | — | (1,194) | — | (159,096) | |||||||||||||||||||||||||||||||
Other income, net | 669 | 212 | 1,592 | 292 | |||||||||||||||||||||||||||||||
Income before income taxes | 170,303 | 127,570 | 185,800 | 79,786 | |||||||||||||||||||||||||||||||
Income tax expense | (58,826) | (41,160) | (75,861) | (18,574) | |||||||||||||||||||||||||||||||
Net income | 111,477 | 86,410 | 109,939 | 61,212 | |||||||||||||||||||||||||||||||
Net loss (income) attributable to noncontrolling interests | (213) | (43) | 467 | 156 | |||||||||||||||||||||||||||||||
Net income attributable to Altice USA, Inc. stockholders | $ | 111,264 | $ | 86,367 | $ | 110,406 | $ | 61,368 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Net income | $ | 111,477 | $ | 86,410 | $ | 109,939 | $ | 61,212 | |||||||||||||||||||||||||||
Income tax expense | 58,826 | 41,160 | 75,861 | 18,574 | |||||||||||||||||||||||||||||||
Other income, net | (669) | (212) | (1,592) | (292) | |||||||||||||||||||||||||||||||
Loss on interest rate swap contracts, net | 33,735 | 26,900 | 88,567 | 50,572 | |||||||||||||||||||||||||||||||
Loss (gain) on derivative contracts, net | 152,061 | 49,624 | (287,800) | 226,653 | |||||||||||||||||||||||||||||||
Loss (gain) on investments and sales of affiliate interests, net | (197,597) | (103,146) | 257,876 | (357,871) | |||||||||||||||||||||||||||||||
Loss on extinguishment of debt and write-off of deferred financing costs | — | 1,194 | — | 159,096 | |||||||||||||||||||||||||||||||
Interest expense, net | 350,874 | 380,613 | 714,426 | 767,077 | |||||||||||||||||||||||||||||||
Depreciation and amortization | 521,794 | 568,620 | 1,069,363 | 1,130,048 | |||||||||||||||||||||||||||||||
Restructuring and other expense | 40,966 | 11,465 | 48,260 | 26,709 | |||||||||||||||||||||||||||||||
Share-based compensation | 34,318 | 16,535 | 62,264 | 30,325 | |||||||||||||||||||||||||||||||
Adjusted EBITDA | 1,105,785 | 1,079,163 | 2,137,164 | 2,112,103 | |||||||||||||||||||||||||||||||
Capital expenditures (cash) | 228,723 | 316,867 | 527,805 | 657,253 | |||||||||||||||||||||||||||||||
Operating Free Cash Flow | $ | 877,062 | $ | 762,296 | $ | 1,609,359 | $ | 1,454,850 | |||||||||||||||||||||||||||
Net cash flows from operating activities | $ | 935,976 | $ | 788,970 | $ | 1,529,541 | $ | 1,292,964 | |||||||||||||||||||||||||||
Capital expenditures (cash) | 228,723 | 316,867 | 527,805 | 657,253 | |||||||||||||||||||||||||||||||
Free Cash Flow | $ | 707,253 | $ | 472,103 | $ | 1,001,736 | $ | 635,711 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income (loss) | $ | 86,410 | $ | (98,004 | ) | $ | 61,212 | $ | (226,953 | ) | |||||
Income tax expense (benefit) | 41,160 | (5,590 | ) | 18,574 | (66,293 | ) | |||||||||
Other expense (income), net (a) | (212 | ) | 629 | (292 | ) | 12,287 | |||||||||
Loss on interest rate swap contracts | 26,900 | 12,929 | 50,572 | 44,851 | |||||||||||
Loss (gain) on derivative contracts, net | 49,624 | (42,159 | ) | 226,653 | (210,511 | ) | |||||||||
Loss (gain) on investments and sales of affiliate interests, net | (103,146 | ) | 45,113 | (357,871 | ) | 293,715 | |||||||||
Loss on extinguishment of debt and write-off of deferred financing costs | 1,194 | 36,911 | 159,096 | 41,616 | |||||||||||
Interest expense, net | 380,613 | 385,230 | 767,077 | 759,385 | |||||||||||
Depreciation and amortization | 568,620 | 648,527 | 1,130,048 | 1,291,232 | |||||||||||
Restructuring and other expense | 11,465 | 9,691 | 26,709 | 13,278 | |||||||||||
Share-based compensation | 16,535 | 12,226 | 30,325 | 33,849 | |||||||||||
Adjusted EBITDA | $ | 1,079,163 | $ | 1,005,503 | $ | 2,112,103 | $ | 1,986,456 |
June 30, | March 31, | June 30, | |||||||||||||||||||||||||||
2020 (f) | 2020 (f) | 2019 (g) | |||||||||||||||||||||||||||
Homes passed (a) | 8,880.1 | 8,834.8 | 8,750.4 | ||||||||||||||||||||||||||
Total customer relationships (b)(c) | 4,997.1 | 4,950.1 | 4,923.2 | ||||||||||||||||||||||||||
Residential | 4,621.4 | 4,568.4 | 4,538.9 | ||||||||||||||||||||||||||
SMB | 375.7 | 381.7 | 384.4 | ||||||||||||||||||||||||||
Residential customers: | |||||||||||||||||||||||||||||
Broadband | 4,307.8 | 4,237.4 | 4,165.4 | ||||||||||||||||||||||||||
Video | 3,102.9 | 3,137.5 | 3,255.3 | ||||||||||||||||||||||||||
Telephony | 2,337.1 | 2,359.8 | 2,485.8 | ||||||||||||||||||||||||||
Penetration of homes passed (d) | 56.3 | % | 56.0 | % | 56.3 | % | |||||||||||||||||||||||
ARPU(e) | $ | 144.38 | $ | 143.39 | $ | 145.02 |
As of June 30, 2019 | As of March 31, 2019 | As of June 30, 2018 | |||||||||
Homes passed (a) | 8,788.6 | 8,761.9 | 8,671.0 | ||||||||
Total customer relationships (b)(c) | 4,942.2 | 4,942.1 | 4,915.1 | ||||||||
Residential | 4,562.6 | 4,563.7 | 4,539.8 | ||||||||
SMB | 379.6 | 378.4 | 375.3 | ||||||||
Residential customers: | |||||||||||
Video | 3,276.5 | 3,297.3 | 3,350.9 | ||||||||
Broadband | 4,168.1 | 4,155.0 | 4,082.1 | ||||||||
Telephony | 2,486.8 | 2,511.1 | 2,545.6 | ||||||||
Residential triple product customer penetration (d) | 48.4 | % | 48.9 | % | 49.8 | % | |||||
Penetration of homes passed (e) | 56.2 | % | 56.4 | % | 56.7 | % | |||||
ARPU(f) | $ | 144.27 | $ | 142.57 | $ | 140.19 |
June 30, 2020 | March 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Pledge and NJ Order (i) | Altice Advantage Customers | Pledge | Altice Advantage Customers | ||||||||||||||||||||||||||||||||||||||||||||||||||
Included | (Excluded) | Included | (Excluded) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total customer relationships | 18.7 | (17.8) | 0.0 | (9.3) | |||||||||||||||||||||||||||||||||||||||||||||||||
Residential | 18.1 | (17.8) | 0.0 | (9.3) | |||||||||||||||||||||||||||||||||||||||||||||||||
SMB | 0.6 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Residential customers: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Broadband | 17.9 | (17.8) | 0.0 | (9.3) | |||||||||||||||||||||||||||||||||||||||||||||||||
Video | 8.0 | — | 0.0 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Telephony | 8.9 | — | 0.0 | — |
June 30, 2019 |
Total customer relationships | (19.0) | ||||||||||||||||||||||
Residential | (23.7) | ||||||||||||||||||||||
SMB | 4.8 | ||||||||||||||||||||||
Residential customers: | |||||||||||||||||||||||
Broadband | (2.7) | ||||||||||||||||||||||
Video | (21.2) | ||||||||||||||||||||||
Telephony | (1.0) | ||||||||||||||||||||||
ARPU | $ | 0.75 |
Three Months | Six Months | ||||||
Increase in programming costs due primarily to contractual rate increases, partially offset by lower video customers | $ | 22,338 | $ | 52,319 | |||
Increase primarily in costs of digital media and linear advertising spots for resale | 2,877 | 4,984 | |||||
Decrease in call completion and transport costs primarily due to lower level of activity | (3,484 | ) | (7,085 | ) | |||
Other net increases (decreases) (net of an increase in costs related to i24NEWS of $1,493 during the six-month period) | 2,136 | (727 | ) | ||||
$ | 23,867 | $ | 49,491 |
Three Months | Six Months | ||||||||||
Increase in programming costs due primarily to net contractual rate increases, partially offset by lower video customers | $ | 19,718 | $ | 47,899 | |||||||
Costs of mobile devices | 14,581 | 25,646 | |||||||||
Increase in call completion and transfer costs primarily related to our mobile business ($6,358 and $13,199 for the three and six months) and an increase in call activity | 8,132 | 13,724 | |||||||||
Increase (decrease) primarily relating to costs of digital media and linear advertising spots for resale | (828) | 6,759 | |||||||||
Other net increase (decrease) | 278 | (618) | |||||||||
$ | 41,881 | $ | 93,410 |
Three Months | Six Months | ||||||
Decrease in management fee relating to certain executive, administrative and managerial services provided to the Company from Altice Europe prior to separation in June 2018 | $ | (5,750 | ) | $ | (13,250 | ) | |
Increase (decrease) in share-based compensation | 4,308 | (3,525 | ) | ||||
Decrease in marketing costs | (7,216 | ) | (12,447 | ) | |||
Decrease in repairs and maintenance costs relating to our operations | (6,186 | ) | (7,493 | ) | |||
Increase in labor costs and benefits (includes an increase in costs related to i24NEWS of $6,425 during the six-month period), net of an increase in capitalizable activity | 5,136 | 3,197 | |||||
Increase in bad debt | 3,760 | 5,352 | |||||
Other net increases (decreases) (includes an increase in costs related to i24NEWS of $3,027 during the six-month period) | (342 | ) | 3,285 | ||||
$ | (6,290 | ) | $ | (24,881 | ) |
Three Months | Six Months | ||||||||||
Net decrease in labor costs and benefits (offset by an increase in costs related to Cheddar of $3,402 and $10,565 for the three and six months, which was acquired in June 2019), offset by a decrease in capitalizable activity | $ | (33,584) | $ | (42,286) | |||||||
Decrease in sales and marketing | (14,455) | (13,148) | |||||||||
Decrease in billing costs, primarily due to systems integration | (3,160) | (8,810) | |||||||||
Increase in share-based compensation | 17,783 | 31,939 | |||||||||
Increase in bad debt expense | 2,254 | 7,043 | |||||||||
Increase in rent and property taxes | 3,100 | 7,520 | |||||||||
Other net increases | 1,240 | 8,797 | |||||||||
$ | (26,822) | $ | (8,945) |
Three Months | Six Months | ||||||
Decrease due to changes in average debt balances and interest rates on our indebtedness and collateralized debt | $ | (17,892 | ) | $ | (17,940 | ) | |
Lower interest income | 4,708 | 5,992 | |||||
Other net increases, primarily amortization of deferred financing costs and original issue discounts | 8,567 | 19,640 | |||||
$ | (4,617 | ) | $ | 7,692 |
Three Months | Six Months | ||||||||||||||||
Decrease due to changes in average debt balances and interest rates on our indebtedness, including our collateralized debt | $ | (28,782) | $ | (48,129) | |||||||||||||
Lower interest income | 454 | 614 | |||||||||||||||
Other net decreases, primarily amortization of deferred financing costs and original issue discounts | (1,411) | (5,136) | |||||||||||||||
$ | (29,739) | $ | (52,651) |
Three Months Ended | Six Months Ended | |||||||||||||||||
June 30, 2019 | Three months ended June 30, 2019 | Six months ended June 30, 2019 | ||||||||||||||||
CSC Holdings 10.125% Senior Notes due 2023 | $ | — | $ | 154,666 | CSC Holdings 10.125% Senior Notes due 2023 | $ | — | $ | 154,666 | |||||||||
Refinancing and subsequent amendment to CSC Holdings credit facility | 1,194 | 4,430 | Refinancing and subsequent amendment to CSC Holdings credit facility | 1,194 | 4,430 | |||||||||||||
$ | 1,194 | $ | 159,096 | $ | 1,194 | $ | 159,096 | |||||||||||
June 30, 2018 | ||||||||||||||||||
Cablevision 7.75% Senior Notes due 2018 | $ | 1 | $ | 4,706 | ||||||||||||||
Cequel 6.375% Senior Notes due 2020 | 36,910 | 36,910 | ||||||||||||||||
$ | 36,911 | $ | 41,616 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||||||||||
Net income attributable to Altice USA shareholders | $ | 111,264 | $ | 86,367 | $ | 110,406 | $ | 61,368 | |||||||||||||||||||||||||||||||||
Less: items included in Altice USA's consolidated statements of operations: | |||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 2,197 | (6,668) | 14,203 | (13,578) | |||||||||||||||||||||||||||||||||||||
Interest expense relating to Cablevision senior notes | — | 24,400 | — | 48,644 | |||||||||||||||||||||||||||||||||||||
Gain on investments and sale of affiliate interest recorded by Altice USA | (1) | — | (347) | — | |||||||||||||||||||||||||||||||||||||
Net income attributable to CSC Holdings' sole member | $ | 113,460 | $ | 104,099 | $ | 124,262 | $ | 96,434 | |||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Net income | $ | 113,673 | $ | 104,142 | $ | 123,795 | $ | 96,278 | |||||||||||||||||||||||||||
Income tax expense | 56,629 | 47,828 | 61,658 | 32,152 | |||||||||||||||||||||||||||||||
Other income, net | (669) | (212) | (1,592) | (292) | |||||||||||||||||||||||||||||||
Loss on interest rate swap contracts, net | 33,735 | 26,900 | 88,567 | 50,572 | |||||||||||||||||||||||||||||||
Loss (gain) on derivative contracts, net | 152,061 | 49,624 | (287,800) | 226,653 | |||||||||||||||||||||||||||||||
Loss (gain) on investments and sales of affiliate interests, net | (197,596) | (103,146) | 258,223 | (357,871) | |||||||||||||||||||||||||||||||
Loss on extinguishment of debt and write-off of deferred financing costs | — | 1,194 | — | 159,096 | |||||||||||||||||||||||||||||||
Interest expense, net | 350,874 | 356,213 | 714,426 | 718,433 | |||||||||||||||||||||||||||||||
Depreciation and amortization | 521,794 | 568,620 | 1,069,363 | 1,130,048 | |||||||||||||||||||||||||||||||
Restructuring and other expense | 40,966 | 11,465 | 48,260 | 26,709 | |||||||||||||||||||||||||||||||
Share-based compensation | 34,318 | 16,535 | 62,264 | 30,325 | |||||||||||||||||||||||||||||||
Adjusted EBITDA | 1,105,785 | 1,079,163 | 2,137,164 | 2,112,103 | |||||||||||||||||||||||||||||||
Capital expenditures (cash) | 228,723 | 316,867 | 527,805 | 657,253 | |||||||||||||||||||||||||||||||
Operating Free Cash Flow | $ | 877,062 | $ | 762,296 | $ | 1,609,359 | $ | 1,454,850 | |||||||||||||||||||||||||||
Net cash flows from operating activities | $ | 932,069 | $ | 809,873 | $ | 1,529,178 | $ | 1,321,776 | |||||||||||||||||||||||||||
Capital expenditures (cash) | 228,723 | 316,867 | 527,805 | 657,253 | |||||||||||||||||||||||||||||||
Free Cash Flow | $ | 703,346 | $ | 493,006 | $ | 1,001,373 | $ | 664,523 |
As of June 30, 2020 | |||||
Debt outstanding: | |||||
Credit facility debt | $ | 7,122,458 | |||
Senior guaranteed notes | 8,701,902 | ||||
Senior notes | 8,516,513 | ||||
Subtotal | 24,340,873 | ||||
Finance lease obligations | 136,049 | ||||
Notes payable and supply chain financing | 107,658 | ||||
Subtotal | 24,584,580 | ||||
Collateralized indebtedness relating to stock monetizations (a) | 1,601,107 | ||||
Total debt | $ | 26,185,687 | |||
Interest expense: | |||||
Credit facility debt, senior notes, finance leases, notes payable and supply chain financing | $ | 680,112 | |||
Collateralized indebtedness relating to stock monetizations (a) | 36,124 | ||||
Total interest expense | $ | 716,236 |
As of June 30, 2019 | |||||||||||
CSC Holdings | Cablevision | Total | |||||||||
Debt outstanding: | |||||||||||
Credit facility debt | $ | 7,257,331 | $ | — | $ | 7,257,331 | |||||
Senior guaranteed notes | 7,598,401 | — | 7,598,401 | ||||||||
Senior notes and debentures | 6,133,093 | 1,104,319 | 7,237,412 | ||||||||
Subtotal | 20,988,825 | 1,104,319 | 22,093,144 | ||||||||
Finance lease obligations | 27,096 | — | 27,096 | ||||||||
Notes payable and supply chain financing | 102,622 | — | 102,622 | ||||||||
Subtotal | 21,118,543 | 1,104,319 | 22,222,862 | ||||||||
Collateralized indebtedness relating to stock monetizations (a) | 1,417,647 | — | 1,417,647 | ||||||||
Total debt | $ | 22,536,190 | $ | 1,104,319 | $ | 23,640,509 | |||||
Interest expense: | |||||||||||
Credit facility debt, senior notes, finance leases, notes payable and supply chain financing | $ | 689,966 | $ | 48,645 | $ | 738,611 | |||||
Collateralized indebtedness relating to stock monetizations (a) | 30,890 | — | 30,890 | ||||||||
Total interest expense | $ | 720,856 | $ | 48,645 | $ | 769,501 |
Maturity Date | Interest Rate | Principal | Carrying Value | ||||||||||||||||||||
Revolving Credit Facility (a) | (b) | —% | $ | — | $ | — | |||||||||||||||||
Term Loan B | July 17, 2025 | 2.43% | 2,910,000 | 2,897,887 | |||||||||||||||||||
Incremental Term Loan B-3 | January 15, 2026 | 2.43% | 1,259,063 | 1,254,243 | |||||||||||||||||||
Incremental Term Loan B-5 | April 15, 2027 | 2.68% | 2,992,500 | 2,970,328 | |||||||||||||||||||
$ | 7,161,563 | $ | 7,122,458 |
Maturity Date | Interest Rate | Principal | Carrying Value | ||||||||
CSC Holdings Revolving Credit Facility (a) | $200,000 on November 30, 2021, remaining balance of $2,275,000 on January 31, 2024 | 4.730% | $ | 622,857 | $ | 609,754 | |||||
CSC Holdings Term Loan B | July 17, 2025 | 4.644% | 2,940,000 | 2,925,564 | |||||||
CSC Holdings Incremental Term Loan B-2 | January 25, 2026 | 4.894% | 1,485,000 | 1,469,340 | |||||||
CSC Holdings Incremental Term Loan B-3 | January 15, 2026 | 4.644% | 1,271,813 | 1,266,155 | |||||||
CSC Holdings Incremental Term Loan B-4 | April 15, 2027 | 5.394% | 1,000,000 | 986,518 | |||||||
$ | 7,319,670 | $ | 7,257,331 |
2020 (excluding the six months ended June 30, 2020) | $ | 2,473,003 | |||
2021 | 2,361,262 | ||||
2022 | 1,916,841 | ||||
2023 (a) | 2,971,720 | ||||
2024 | 1,918,533 | ||||
Thereafter | 23,208,032 | ||||
Total | $ | 34,849,391 |
Total | ||||
2019 | $ | 785,404 | ||
2020 | 2,023,344 | |||
2021 (a) | 5,132,583 | |||
2022 | 1,923,029 | |||
2023 | 2,330,861 | |||
Thereafter (b) | 20,850,393 | |||
Total | $ | 33,045,614 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||
Customer premise equipment | $ | 102,890 | $ | 80,675 | $ | 177,827 | $ | 161,402 | Customer premise equipment | $ | 45,848 | $ | 102,890 | $ | 109,183 | $ | 177,827 | |||||||||||||||||||||||||||||||||
Network infrastructure | 138,548 | 82,042 | 278,526 | 154,883 | Network infrastructure | 115,139 | 138,548 | 255,202 | 278,526 | |||||||||||||||||||||||||||||||||||||||||
Support and other | 29,256 | 36,671 | 123,033 | 99,513 | Support and other | 39,226 | 29,256 | 99,852 | 123,033 | |||||||||||||||||||||||||||||||||||||||||
Business services | 46,173 | 41,294 | 77,867 | 82,499 | Business services | 28,510 | 46,173 | 63,568 | 77,867 | |||||||||||||||||||||||||||||||||||||||||
Capital purchases (cash basis) | $ | 316,867 | $ | 240,682 | $ | 657,253 | $ | 498,297 | Capital purchases (cash basis) | $ | 228,723 | $ | 316,867 | $ | 527,805 | $ | 657,253 | |||||||||||||||||||||||||||||||||
Capital purchases (including accrued not paid and financed capital) | $ | 406,065 | $ | 277,042 | $ | 711,715 | $ | 493,707 | Capital purchases (including accrued not paid and financed capital) | $ | 279,878 | $ | 406,065 | $ | 652,846 | $ | 711,715 |
Fair Value of Equity Derivative Contracts | |||
Fair value as of December 31, 2018, net asset position | $ | 109,344 | |
Change in fair value, net | (226,653 | ) | |
Fair value as of June 30, 2019, net liability position | $ | (117,309 | ) |
Fair Value of Equity Derivative Contracts | |||||
Fair value as of December 31, 2019, net liability position | $ | (69,588) | |||
Change in fair value, net | 287,800 | ||||
Fair value as of June 30, 2020, net asset position | $ | 218,212 |
Hedge Price | Cap Price (b) | |||||||||||||||||||||||||||||||
# of Shares Deliverable | Maturity | per Share (a) | Low | High | ||||||||||||||||||||||||||||
42,955,236 | 2023 | $40.95 | $ | 49.55 | $ | 49.55 |
Hedge Price | Cap Price (b) | |||||||||||
# of Shares Deliverable (a) | Maturity | per Share (a) | Low | High | ||||||||
42,955,236 | 2021 | $29.25- $35.47 | $ | 43.88 | $ | 44.80 |
Trade Date | Maturity Date | Notional Amount | Company Pays | Company Receives | ||||||
May 2016 | May 2026 | $ | 750,000 | Six- month LIBOR | Fixed rate of 1.665% | |||||
June 2016 | May 2026 | 750,000 | Six- month LIBOR | Fixed rate of 1.68% | ||||||
April 2019 | April 2020 | 1,255,513 | Three- month LIBOR minus 0.1075% | One-month LIBOR | ||||||
December 2018 | January 2022 | 500,000 | Fixed rate of 2.7177% | Three-month LIBOR | ||||||
December 2018 | January 2022 | 500,000 | Fixed rate of 2.733% | Three-month LIBOR | ||||||
December 2018 | January 2022 | 500,000 | Fixed rate of 2.722% | Three-month LIBOR | ||||||
December 2018 | December 2026 | 750,000 | Fixed rate of 2.9155% | Three-month LIBOR | ||||||
December 2018 | December 2026 | 750,000 | Fixed rate of 2.9025% | Three-month LIBOR |
Trade Date | Maturity Date | Notional Amount | Company Pays | Company Receives | ||||||||||||||||||||||
December 2018 | January 2025 | $ | 500,000 | Fixed rate of 1.53% | Three-month LIBOR | |||||||||||||||||||||
December 2018 | January 2022 | 500,000 | Fixed rate of 2.733% | Three-month LIBOR | ||||||||||||||||||||||
December 2018 | January 2025 | 500,000 | Fixed rate of 1.625% | Three-month LIBOR | ||||||||||||||||||||||
December 2018 | December 2026 | 750,000 | Fixed rate of 2.9155% | Three-month LIBOR | ||||||||||||||||||||||
December 2018 | December 2026 | 750,000 | Fixed rate of 2.9025% | Three-month LIBOR | ||||||||||||||||||||||
March 2020 | January 2025 | 500,000 | Fixed rate of 1.458% | Three-month LIBOR | ||||||||||||||||||||||
March 2020 | January 2022 | 500,000 | Three-month LIBOR | Fixed rate of 2.733% | ||||||||||||||||||||||
April 2020 | April 2021 | 2,850,000 | Six-month LIBOR minus 0.5185% | One-month LIBOR |
Derivatives Not Designated as Hedging Instruments | Balance Sheet Location | Fair Value at | ||||||||||||
June 30, 2020 | ||||||||||||||
Asset Derivatives: | ||||||||||||||
Interest rate swap contracts | Derivative contracts, long-term | $ | 4,058 | |||||||||||
Prepaid forward contracts | Derivative contracts, long-term | 221,733 | ||||||||||||
225,791 | ||||||||||||||
Liability Derivatives: | ||||||||||||||
Interest rate swap contracts | Other current liabilities | (4,016) | ||||||||||||
Prepaid forward contracts | Liabilities under derivative contracts, long-term | (3,520) | ||||||||||||
Interest rate swap contracts | Liabilities under derivative contracts, long-term | (309,396) | ||||||||||||
$ | (316,932) |
(a) Sales of Unregistered Securities |
(a) Total Number of Shares (or Units) Purchased | (b) Average Price Paid per Share (or Unit) | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs (1)(2) | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs (1) | ||||||||||||||||||||
April 1- April 30 | 11,731,882 | $ | 24.83 | 143,645,533 | 3,771,824,497 | ||||||||||||||||||
May 1- May 31 | 5,974,344 | 23.94 | 149,619,877 | 3,628,791,681 | |||||||||||||||||||
June 1 - June 30 | 8,033,889 | 24.51 | 157,653,766 | 3,431,890,638 |
(a) Total Number of Shares (or Units) Purchased | (b) Average Price Paid per Share (or Unit) | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs (1)(2) | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs (1) | ||||||||||
April 1 - April 30 | 5,347,302 | $ | 23.05 | 62,631,656 | $ | 776,721,702 | |||||||
May 1- May 31 | 9,276,181 | 24.21 | 71,907,837 | 552,136,601 | |||||||||
June 1 - June 30 | 10,375,518 | 24.30 | 82,283,355 | 300,046,502 |
(1)On June 8, 2018, the Company's Board of Directors authorized the repurchase of up to $2.0 billion of Altice USA Class A common stock. |
EXHIBIT NO. | DESCRIPTION | |||||||
Section 302 Certification of the CEO. | ||||||||
Section 302 Certification of the CFO. | ||||||||
Section 906 Certifications of the CEO and CFO. | ||||||||
101 | The following financial statements from Altice USA's Quarterly Report on Form 10-Q for the quarterly period ended June 30, | |||||||
104 | The cover page from this quarterly report on Form 10-Q formatted in Inline XBRL. |
ALTICE USA, INC. | |||||||||||||||||
Date: | July | /s/ | |||||||||||||||
By: | Michael J. Grau Chief Financial Officer |