QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended | September 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 every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). | |||||||||||||||||||||||
Yes | ☒ | No | ☐ |
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one) | ||||||||||||||
Large Accelerated Filer | ☒ | Accelerated filer | ☐ | |||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||
Emerging growth company | ☐ |
If an emerging growth company, |
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 | NYSE |
Number of shares of common stock outstanding as of October |
Page | ||||||||
PART I. FINANCIAL INFORMATION | ||||||||
Item 1. Financial Statements | ||||||||
ALTICE USA, INC. AND SUBSIDIARIES | ||||||||
Consolidated Balance Sheets - September 30, | ||||||||
Consolidated | ||||||||
Consolidated Statements of Comprehensive Income | ||||||||
Consolidated | ||||||||
Consolidated | ||||||||
Combined Notes to Consolidated Financial Statements | ||||||||
Supplemental Financial Statements Furnished: | ||||||||
CSC HOLDINGS, LLC AND SUBSIDIARIES | ||||||||
Consolidated Financial Statements | ||||||||
Consolidated Balance Sheets - September 30, 2022 (Unaudited) and December 31, 2021 | ||||||||
Consolidated Statements of Operations - Three and nine months ended September 30, 2022 and 2021 (Unaudited) | ||||||||
Consolidated Statements of Comprehensive Income - Three and nine months ended September 30, 2022 and 2021 (Unaudited) | ||||||||
Consolidated Statements of Member's Deficiency - Three and nine months ended September 30, 2022 and 2021 (Unaudited) | ||||||||
Consolidated Statements of Cash Flows - Nine months ended September 30, 2022 and 2021 (Unaudited) | ||||||||
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 | ||||||||
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) | |||||||
ASSETS | |||||||
September 30, 2017 | December 31, 2016 | ||||||
(Unaudited) | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 550,131 | $ | 486,792 | |||
Restricted cash | 45,205 | 16,301 | |||||
Accounts receivable, trade (less allowance for doubtful accounts of $14,018 and $11,677) | 344,742 | 349,626 | |||||
Prepaid expenses and other current assets (including a prepayment to an affiliate of $11,296 in 2017) (See Note 14) | 109,652 | 88,151 | |||||
Amounts due from affiliates | 21,153 | 22,182 | |||||
Investment securities pledged as collateral | — | 741,515 | |||||
Derivative contracts | 54,578 | 352 | |||||
Total current assets | 1,125,461 | 1,704,919 | |||||
Property, plant and equipment, net of accumulated depreciation of $2,181,306 and $1,039,297 | 6,161,511 | 6,597,635 | |||||
Investment in affiliates | 1,694 | 5,606 | |||||
Investment securities pledged as collateral | 1,652,917 | 741,515 | |||||
Derivative contracts | — | 10,604 | |||||
Other assets (including a prepayment to an affiliate of $2,570 in 2017) (See Note 14) | 49,394 | 48,545 | |||||
Amortizable customer relationships, net of accumulated amortization of $1,207,217 and $580,276 | 4,763,667 | 5,345,608 | |||||
Amortizable trade names, net of accumulated amortization of $432,402 and $83,397 | 634,681 | 983,386 | |||||
Other amortizable intangibles, net of accumulated amortization of $8,805 and $3,093 | 28,247 | 23,650 | |||||
Indefinite-lived cable television franchises | 13,020,081 | 13,020,081 | |||||
Goodwill | 7,993,499 | 7,992,700 | |||||
Total assets | $ | 35,431,152 | $ | 36,474,249 |
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) | |||||||||||
September 30, 2022 (Unaudited) | December 31, 2021 | ||||||||||
ASSETS | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | $ | 250,576 | $ | 195,711 | |||||||
Restricted cash | 265 | 264 | |||||||||
Accounts receivable, trade (less allowance for doubtful accounts of $37,900 and $27,931, respectively) | 343,355 | 406,952 | |||||||||
Prepaid expenses and other current assets ($519 and $3,776 due from affiliates, respectively) | 164,412 | 183,714 | |||||||||
Derivative contracts | 481,914 | 2,993 | |||||||||
Investment securities pledged as collateral | 1,259,877 | — | |||||||||
Total current assets | 2,500,399 | 789,634 | |||||||||
Property, plant and equipment, net of accumulated depreciation of $7,649,014 and $7,142,852, respectively | 7,077,966 | 6,340,467 | |||||||||
Right-of-use operating lease assets | 234,707 | 222,124 | |||||||||
Investment securities pledged as collateral | — | 2,161,937 | |||||||||
Other assets | 264,974 | 76,653 | |||||||||
Amortizable intangibles, net of accumulated amortization of $5,421,667 and $5,051,149, respectively | 1,782,300 | 2,202,001 | |||||||||
Indefinite-lived cable television franchises | 13,216,355 | 13,216,355 | |||||||||
Goodwill | 8,205,863 | 8,205,863 | |||||||||
Total assets | $ | 33,282,564 | $ | 33,215,034 | |||||||
LIABILITIES AND STOCKHOLDERS' DEFICIENCY | |||||||||||
Current Liabilities: | |||||||||||
Accounts payable | $ | 1,084,737 | $ | 1,023,045 | |||||||
Interest payable | 224,278 | 244,934 | |||||||||
Accrued employee related costs | 155,384 | 124,941 | |||||||||
Deferred revenue | 90,040 | 94,943 | |||||||||
Debt | 2,062,295 | 917,313 | |||||||||
Other current liabilities ($26,821 and $31,810 due to affiliates, respectively) | 352,772 | 329,943 | |||||||||
Total current liabilities | 3,969,506 | 2,735,119 | |||||||||
Other liabilities | 160,716 | 159,082 | |||||||||
Deferred tax liability | 4,956,050 | 5,048,129 | |||||||||
Liabilities under derivative contracts | — | 276,933 | |||||||||
Right-of-use operating lease liability | 245,360 | 237,226 | |||||||||
Long-term debt, net of current maturities | 24,290,003 | 25,629,447 | |||||||||
Total liabilities | 33,621,635 | 34,085,936 | |||||||||
Commitments and contingencies (Note 14) | |||||||||||
Stockholders' Deficiency: | |||||||||||
Preferred stock, $0.01 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, 270,358,014 shares issued and 270,338,751 shares outstanding as of September 30, 2022 and 270,341,685 shares issued and 270,320,798 shares outstanding as of December 31, 2021 | 2,704 | 2,703 | |||||||||
Class B common stock: $0.01 par value, 1,000,000,000 shares authorized, 490,086,674 issued, 184,329,677 shares outstanding as of September 30, 2022 and 184,333,342 shares outstanding as of December 31, 2021 | 1,843 | 1,843 | |||||||||
Class C common stock: $0.01 par value, 4,000,000,000 shares authorized, no shares issued and outstanding | — | — | |||||||||
Paid-in capital | 137,660 | 18,005 | |||||||||
Accumulated deficit | (461,160) | (848,836) | |||||||||
(318,953) | (826,285) | ||||||||||
Treasury stock, at cost (19,263 and 20,887 Class A common shares, respectively) | — | — | |||||||||
Accumulated other comprehensive income | 5,432 | 6,497 | |||||||||
Total Altice USA stockholders' deficiency | (313,521) | (819,788) | |||||||||
Noncontrolling interests | (25,550) | (51,114) | |||||||||
Total stockholders' deficiency | (339,071) | (870,902) | |||||||||
Total liabilities and stockholders' deficiency | $ | 33,282,564 | $ | 33,215,034 |
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (continued) (In thousands, except share and per share amounts) | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | September 30, 2017 | December 31, 2016 | |||||
(Unaudited) | |||||||
Current Liabilities: | |||||||
Accounts payable | $ | 685,026 | $ | 705,672 | |||
Accrued liabilities: | |||||||
Interest | 315,467 | 576,778 | |||||
Employee related costs | 130,640 | 232,864 | |||||
Other accrued expenses | 412,949 | 352,315 | |||||
Amounts due to affiliates | 29,002 | 127,363 | |||||
Deferred revenue | 101,577 | 94,816 | |||||
Liabilities under derivative contracts | 102,904 | 13,158 | |||||
Collateralized indebtedness | — | 622,332 | |||||
Credit facility debt | 92,650 | 33,150 | |||||
Senior notes and debentures | 1,572,358 | 926,045 | |||||
Capital lease obligations | 10,376 | 15,013 | |||||
Notes payable | 30,211 | 5,427 | |||||
Total current liabilities | 3,483,160 | 3,704,933 | |||||
Defined benefit plan obligations | 93,849 | 84,106 | |||||
Notes payable to affiliates and related parties | — | 1,750,000 | |||||
Other liabilities | 144,601 | 113,485 | |||||
Deferred tax liability | 7,194,065 | 7,966,815 | |||||
Liabilities under derivative contracts | 121,759 | 78,823 | |||||
Collateralized indebtedness | 1,314,788 | 663,737 | |||||
Credit facility debt | 5,284,252 | 3,411,640 | |||||
Senior notes and debentures | 14,280,817 | 16,581,280 | |||||
Capital lease obligations | 5,857 | 13,142 | |||||
Notes payable | 49,314 | 8,299 | |||||
Total liabilities | 31,972,462 | 34,376,260 | |||||
Commitments and contingencies | |||||||
Redeemable equity | 390,268 | 68,147 | |||||
Stockholders' Equity: | |||||||
Preferred Stock, $.01 par value, 100,000,000 shares authorized, no shares issued and outstanding at September 30, 2017 | — | — | |||||
Class A common stock: $0.01 par value, 4,000,000,000 shares authorized, 246,982,292 issued and outstanding at September 30, 2017 | 2,470 | — | |||||
Class B common stock: $0.01 par value, 1,000,000,000 shares authorized, 490,086,674 issued and outstanding at September 30, 2017 | 4,901 | — | |||||
Class C common stock: $0.01 par value, 4,000,000,000 shares authorized, no shares issued and outstanding at September 30, 2017 | — | — | |||||
Common Stock, $.01 par value, 1,000 shares authorized, 100 shares issued and outstanding at December 31, 2016 | — | — | |||||
Paid-in capital | 4,466,040 | 3,003,554 | |||||
Accumulated deficit | (1,401,548 | ) | (975,978 | ) | |||
3,071,863 | 2,027,576 | ||||||
Accumulated other comprehensive income (loss) | (4,130 | ) | 1,979 | ||||
Total stockholders' equity | 3,067,733 | 2,029,555 | |||||
Noncontrolling interest | 689 | 287 | |||||
Total stockholders' equity | 3,068,422 | 2,029,842 | |||||
$ | 35,431,152 | $ | 36,474,249 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenue (including revenue from affiliates of $649, $3,277, $1,765, and $9,718, respectively) (See Note 13) | $ | 2,393,552 | $ | 2,574,882 | $ | 7,278,463 | $ | 7,569,711 | |||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Programming and other direct costs (including charges from affiliates of $4,086, $5,294, $11,419, and $12,026, respectively) (See Note 13) | 782,121 | 843,909 | 2,429,925 | 2,545,645 | |||||||||||||||||||
Other operating expenses (including charges from affiliates of $3,111, $3,274, $9,243 and $9,149, respectively) (See Note 13) | 694,390 | 590,519 | 2,009,760 | 1,760,132 | |||||||||||||||||||
Restructuring and other expense | 4,007 | 1,885 | 10,058 | 10,958 | |||||||||||||||||||
Depreciation and amortization (including impairments) | 445,769 | 447,958 | 1,327,243 | 1,327,142 | |||||||||||||||||||
1,926,287 | 1,884,271 | 5,776,986 | 5,643,877 | ||||||||||||||||||||
Operating income | 467,265 | 690,611 | 1,501,477 | 1,925,834 | |||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest expense, net | (340,989) | (319,001) | (954,564) | (954,684) | |||||||||||||||||||
Gain (loss) on investments | (425,686) | (46,821) | (902,060) | 151,651 | |||||||||||||||||||
Gain (loss) on derivative contracts, net | 323,668 | 43,385 | 643,856 | (109,020) | |||||||||||||||||||
Gain on interest rate swap contracts, net | 105,945 | 5,521 | 268,960 | 59,600 | |||||||||||||||||||
Loss on extinguishment of debt and write-off of deferred financing costs | — | — | — | (51,712) | |||||||||||||||||||
Other income, net | 3,245 | 2,280 | 8,196 | 7,606 | |||||||||||||||||||
(333,817) | (314,636) | (935,612) | (896,559) | ||||||||||||||||||||
Income before income taxes | 133,448 | 375,975 | 565,865 | 1,029,275 | |||||||||||||||||||
Income tax expense | (35,827) | (105,226) | (152,563) | (279,053) | |||||||||||||||||||
Net income | 97,621 | 270,749 | 413,302 | 750,222 | |||||||||||||||||||
Net income attributable to noncontrolling interests | (12,670) | (3,896) | (25,626) | (11,573) | |||||||||||||||||||
Net income attributable to Altice USA, Inc. stockholders | $ | 84,951 | $ | 266,853 | $ | 387,676 | $ | 738,649 | |||||||||||||||
Income per share: | |||||||||||||||||||||||
Basic income per share | $ | 0.19 | $ | 0.59 | $ | 0.86 | $ | 1.61 | |||||||||||||||
Basic weighted average common shares (in thousands) | 453,239 | 454,049 | 453,233 | 460,023 | |||||||||||||||||||
Diluted income per share | $ | 0.19 | $ | 0.58 | $ | 0.86 | $ | 1.59 | |||||||||||||||
Diluted weighted average common shares (in thousands) | 453,390 | 457,163 | 453,284 | 465,349 | |||||||||||||||||||
Cash dividends declared per common share | $ | — | $ | — | $ | — | $ | — |
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS (In thousands, except per share amounts) (Unaudited) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue (including revenue from affiliates of $986 and $1,380 in 2017 and $720 in both 2016 periods) (See Note 14) | $ | 2,327,175 | $ | 2,260,221 | $ | 6,961,192 | $ | 3,711,311 | |||||||
Operating expenses: | |||||||||||||||
Programming and other direct costs (including charges from affiliates of $1,196 and $3,026 in 2017 and $642 in both 2016 periods) (See Note 14) | 755,101 | 738,390 | 2,272,147 | 1,177,808 | |||||||||||
Other operating expenses (including charges from affiliates of $28,332 and $73,263 in 2017 and $8,056 and $13,056 in 2016) (See Note 14) | 560,497 | 660,307 | 1,767,624 | 1,050,046 | |||||||||||
Restructuring and other expense | 53,448 | 47,816 | 142,765 | 155,086 | |||||||||||
Depreciation and amortization (including impairments) | 823,265 | 670,929 | 2,138,776 | 1,085,929 | |||||||||||
2,192,311 | 2,117,442 | 6,321,312 | 3,468,869 | ||||||||||||
Operating income | 134,864 | 142,779 | 639,880 | 242,442 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense (including interest expense to affiliates and related parties of $90,405 in 2017 and $48,617 and $53,922 in 2016) (See Note 14) | (379,064 | ) | (446,242 | ) | (1,232,730 | ) | (1,015,866 | ) | |||||||
Interest income | 961 | 404 | 1,373 | 12,787 | |||||||||||
Gain (loss) on investments, net | (18,900 | ) | 24,833 | 169,888 | 83,467 | ||||||||||
Gain (loss) on derivative contracts, net | (16,763 | ) | 773 | (154,270 | ) | (26,572 | ) | ||||||||
Gain (loss) on interest rate swap contracts | 1,051 | (15,861 | ) | 12,539 | 24,380 | ||||||||||
Loss on extinguishment of debt and write-off of deferred financing costs (including $513,723 related to affiliates and related parties for the nine months ended September 30, 2017) (See Note 14) | (38,858 | ) | — | (600,240 | ) | (19,948 | ) | ||||||||
Other income (expense), net | (65 | ) | 2,531 | 832 | 2,548 | ||||||||||
(451,638 | ) | (433,562 | ) | (1,802,608 | ) | (939,204 | ) | ||||||||
Loss before income taxes | (316,774 | ) | (290,783 | ) | (1,162,728 | ) | (696,762 | ) | |||||||
Income tax benefit | 134,688 | 118,230 | 429,664 | 101,332 | |||||||||||
Net loss | (182,086 | ) | (172,553 | ) | (733,064 | ) | (595,430 | ) | |||||||
Net loss (income) attributable to noncontrolling interests | (135 | ) | (256 | ) | (737 | ) | 108 | ||||||||
Net loss attributable to Altice USA, Inc. stockholders | $ | (182,221 | ) | $ | (172,809 | ) | $ | (733,801 | ) | $ | (595,322 | ) | |||
Basic and diluted net loss per share | $ | (0.25 | ) | $ | (0.27 | ) | $ | (1.08 | ) | $ | (0.92 | ) | |||
Basic and diluted weighted average common shares (in thousands) | 737,069 | 649,525 | 682,234 | 649,525 |
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (In thousands) (Unaudited) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net loss | $ | (182,086 | ) | $ | (172,553 | ) | $ | (733,064 | ) | $ | (595,430 | ) | |||
Other comprehensive income (loss): | |||||||||||||||
Defined benefit pension plans: | |||||||||||||||
Unrecognized actuarial gain (loss) | (4,056 | ) | 5,016 | (8,389 | ) | 4,034 | |||||||||
Applicable income taxes | 1,622 | (2,006 | ) | 3,356 | (1,613 | ) | |||||||||
Unrecognized gain (loss) arising during period, net of income taxes | (2,434 | ) | 3,010 | (5,033 | ) | 2,421 | |||||||||
Curtailment loss, net of settlement losses of $1,014 and $1,403 for the three and nine months ended September 30, 2017 included in net periodic benefit cost | 1,014 | (33 | ) | (1,792 | ) | (33 | ) | ||||||||
Applicable income taxes | (406 | ) | 13 | 716 | 13 | ||||||||||
Curtailment loss, net of settlement losses included in net periodic benefit cost, net of income taxes | 608 | (20 | ) | (1,076 | ) | (20 | ) | ||||||||
Other comprehensive gain (loss) | (1,826 | ) | 2,990 | (6,109 | ) | 2,401 | |||||||||
Comprehensive loss | (183,912 | ) | (169,563 | ) | (739,173 | ) | (593,029 | ) | |||||||
Comprehensive loss (income) attributable to noncontrolling interests | (135 | ) | (256 | ) | (737 | ) | 108 | ||||||||
Comprehensive loss attributable to Altice USA, Inc. stockholders | $ | (184,047 | ) | $ | (169,819 | ) | $ | (739,910 | ) | $ | (592,921 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net income | $ | 97,621 | $ | 270,749 | $ | 413,302 | $ | 750,222 | |||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Defined benefit pension plans | 540 | (2,084) | (1,515) | 8,056 | |||||||||||||||||||
Applicable income taxes | (143) | 555 | 400 | (2,142) | |||||||||||||||||||
Defined benefit pension plans, net of income taxes | 397 | (1,529) | (1,115) | 5,914 | |||||||||||||||||||
Foreign currency translation adjustment | 159 | (619) | 50 | (140) | |||||||||||||||||||
Applicable income taxes | — | — | — | — | |||||||||||||||||||
Foreign currency translation adjustment, net of income taxes | 159 | (619) | 50 | (140) | |||||||||||||||||||
Other comprehensive income (loss) | 556 | (2,148) | (1,065) | 5,774 | |||||||||||||||||||
Comprehensive income | 98,177 | 268,601 | 412,237 | 755,996 | |||||||||||||||||||
Comprehensive income attributable to noncontrolling interests | (12,670) | (3,896) | (25,626) | (11,573) | |||||||||||||||||||
Comprehensive income attributable to Altice USA, Inc. stockholders | $ | 85,507 | $ | 264,705 | $ | 386,611 | $ | 744,423 |
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIENCY (In thousands) (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | Paid-in Capital | Accumulated Deficit | Treasury Stock | Accumulated Other Comprehensive Income | Total Altice USA Stockholders' Deficiency | Non-controlling Interests | Total Deficiency | |||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2022 | $ | 2,703 | $ | 1,843 | $ | 18,005 | $ | (848,836) | $ | — | $ | 6,497 | $ | (819,788) | $ | (51,114) | $ | (870,902) | |||||||||||||||||||||||||||||||||||
Net income attributable to stockholders | — | — | — | 196,551 | — | — | 196,551 | — | 196,551 | ||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | — | — | 5,590 | 5,590 | ||||||||||||||||||||||||||||||||||||||||||||
Pension liability adjustments, net of income taxes | — | — | — | — | — | 1,843 | 1,843 | — | 1,843 | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of income taxes | — | — | — | — | — | (170) | (170) | — | (170) | ||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense (equity classified) | — | — | 40,512 | — | — | — | 40,512 | — | 40,512 | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares pursuant to employee long term incentive plan | — | — | 10 | — | — | — | 10 | — | 10 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | 2,703 | 1,843 | 58,527 | (652,285) | — | 8,170 | (581,042) | (45,524) | (626,566) | ||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to stockholders | — | — | — | 106,174 | — | — | 106,174 | — | 106,174 | ||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | — | — | 7,366 | 7,366 | ||||||||||||||||||||||||||||||||||||||||||||
Pension liability adjustments, net of income taxes | — | — | — | — | — | (3,355) | (3,355) | — | (3,355) | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of income taxes | — | — | — | — | — | 61 | 61 | — | 61 | ||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense (equity classified) | — | — | 41,680 | — | — | — | 41,680 | — | 41,680 | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares pursuant to employee long term incentive plan | — | — | 6 | — | — | — | 6 | — | 6 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | 2,703 | $ | 1,843 | $ | 100,213 | $ | (546,111) | $ | — | $ | 4,876 | $ | (436,476) | $ | (38,158) | $ | (474,634) |
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (In thousands) (Unaudited) | |||||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Total Stockholders' Equity | Non-controlling Interest | Total Equity | ||||||||||||||||||||||||
Balance at January 1, 2017 | $ | — | $ | — | $ | 3,003,554 | $ | (975,978 | ) | $ | 1,979 | $ | 2,029,555 | $ | 287 | $ | 2,029,842 | ||||||||||||||
Net loss attributable to stockholders | — | — | — | (733,801 | ) | — | (733,801 | ) | — | (733,801 | ) | ||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | — | 737 | 737 | |||||||||||||||||||||||
Pension liability adjustments, net of income taxes | — | — | — | — | (6,109 | ) | (6,109 | ) | — | (6,109 | ) | ||||||||||||||||||||
Share-based compensation expense | — | — | 40,932 | — | — | 40,932 | — | 40,932 | |||||||||||||||||||||||
Change in fair value of redeemable equity | — | — | (322,121 | ) | — | — | (322,121 | ) | — | (322,121 | ) | ||||||||||||||||||||
Contributions from stockholders | — | — | 1,135 | — | �� | — | 1,135 | — | 1,135 | ||||||||||||||||||||||
Cash distributions to stockholders | — | — | (839,700 | ) | — | — | (839,700 | ) | (335 | ) | (840,035 | ) | |||||||||||||||||||
Transfer of goodwill | — | — | (23,101 | ) | — | — | (23,101 | ) | — | (23,101 | ) | ||||||||||||||||||||
Recognition of previously unrealized excess tax benefits related to share-based awards in connection with the adoption of ASU 2016-09 | — | — | — | 308,231 | — | 308,231 | — | 308,231 | |||||||||||||||||||||||
Issuance of common stock pursuant to organizational transactions prior to IPO | 2,349 | 4,901 | 2,257,002 | — | — | 2,264,252 | — | 2,264,252 | |||||||||||||||||||||||
Issuance of common stock pursuant to IPO | 121 | — | 348,339 | — | — | 348,460 | — | 348,460 | |||||||||||||||||||||||
Balance at September 30, 2017 | $ | 2,470 | $ | 4,901 | $ | 4,466,040 | $ | (1,401,548 | ) | $ | (4,130 | ) | $ | 3,067,733 | $ | 689 | $ | 3,068,422 |
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | |||||||
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (733,064 | ) | $ | (595,430 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization (including impairments) | 2,138,776 | 1,085,929 | |||||
Gain on sale of affiliate interests | — | (206 | ) | ||||
Equity in net loss of affiliates | 5,697 | 400 | |||||
Gain on investments, net | (169,888 | ) | (83,467 | ) | |||
Loss on derivative contracts, net | 154,270 | 26,572 | |||||
Loss on extinguishment of debt and write-off of deferred financing costs | 600,240 | 19,948 | |||||
Amortization of deferred financing costs and discounts (premiums) on indebtedness | 18,517 | 25,831 | |||||
Settlement loss (gain) related to pension plan | 1,403 | (33 | ) | ||||
Share-based compensation expense | 40,932 | 1,670 | |||||
Deferred income taxes | (458,608 | ) | (105,468 | ) | |||
Excess tax benefit on share-based awards | — | 82 | |||||
Provision for doubtful accounts | 54,501 | 32,569 | |||||
Change in assets and liabilities, net of effects of acquisitions and dispositions: | |||||||
Accounts receivable, trade | (45,493 | ) | (39,651 | ) | |||
Other receivables | (5,517 | ) | 9,203 | ||||
Prepaid expenses and other assets | (13,275 | ) | 27,142 | ||||
Amounts due from and due to affiliates | (97,440 | ) | (213 | ) | |||
Accounts payable | 50,649 | 37,472 | |||||
Accrued liabilities | (324,537 | ) | 103,409 | ||||
Deferred revenue | 9,382 | 9,549 | |||||
Liabilities related to interest rate swap contracts | (9,552 | ) | (24,380 | ) | |||
Net cash provided by operating activities | 1,216,993 | 530,928 | |||||
Cash flows from investing activities: | |||||||
Payment for acquisition, net of cash acquired | (43,608 | ) | (8,988,774 | ) | |||
Net proceeds from sale of affiliate interests | — | 13,825 | |||||
Capital expenditures | (763,298 | ) | (377,726 | ) | |||
Proceeds related to sale of equipment, including costs of disposal | 3,398 | 1,584 | |||||
Increase in other investments | (4,800 | ) | (2,866 | ) | |||
Settlement of put-call options | (24,039 | ) | — | ||||
Additions to other intangible assets | (1,700 | ) | — | ||||
Net cash used in investing activities | (834,047 | ) | (9,353,957 | ) | |||
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIENCY (In thousands) (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | Paid-in Capital | Accumulated Deficit | Treasury Stock | Accumulated Other Comprehensive Income | Total Altice USA Stockholders'Deficiency | Non-controlling Interests | Total Deficiency | |||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | 2,703 | $ | 1,843 | $ | 100,213 | $ | (546,111) | $ | — | $ | 4,876 | $ | (436,476) | $ | (38,158) | $ | (474,634) | |||||||||||||||||||||||||||||||||||
Net income attributable to stockholders | — | — | — | 84,951 | — | — | 84,951 | — | 84,951 | ||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | — | — | 12,670 | 12,670 | ||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | (62) | (62) | ||||||||||||||||||||||||||||||||||||||||||||
Pension liability adjustments, net of income taxes | — | — | — | — | — | 397 | 397 | — | 397 | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of income taxes | — | — | — | — | — | 159 | 159 | — | 159 | ||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense (equity classified) | — | — | 37,527 | — | — | — | 37,527 | — | 37,527 | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares pursuant to employee long term incentive plan | 1 | — | (80) | — | — | — | (79) | — | (79) | ||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2022 | $ | 2,704 | $ | 1,843 | $ | 137,660 | $ | (461,160) | $ | — | $ | 5,432 | $ | (313,521) | $ | (25,550) | $ | (339,071) |
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) (In thousands) | |||||||
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Cash flows from financing activities: | |||||||
Proceeds from credit facility debt | 5,602,425 | 2,195,256 | |||||
Repayment of credit facility debt | (3,684,668 | ) | (4,327,466 | ) | |||
Proceeds from notes payable to affiliates and related parties | — | 1,750,000 | |||||
Issuance of senior notes and debentures | — | 1,310,000 | |||||
Proceeds from collateralized indebtedness | 662,724 | 179,388 | |||||
Repayment of collateralized indebtedness and related derivative contracts | (654,989 | ) | (143,102 | ) | |||
Distributions to stockholders | (839,700 | ) | — | ||||
Redemption of senior notes, including premiums and fees | (1,729,400 | ) | — | ||||
Proceeds from notes payable | 24,649 | — | |||||
Excess tax benefit on share-based awards | — | (82 | ) | ||||
Principal payments on capital lease obligations | (11,518 | ) | (11,376 | ) | |||
Additions to deferred financing costs | (9,486 | ) | (193,705 | ) | |||
Proceeds from IPO, net of fees | 348,460 | — | |||||
Contributions from stockholders | 1,135 | 1,246,498 | |||||
Distributions to noncontrolling interests, net | (335 | ) | — | ||||
Net cash provided by (used in) financing activities | (290,703 | ) | 2,005,411 | ||||
Net increase (decrease) in cash and cash equivalents | 92,243 | (6,817,618 | ) | ||||
Cash, cash equivalents and restricted cash at beginning of year | 503,093 | 8,786,536 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 595,336 | $ | 1,968,918 |
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIENCY (In thousands) (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | Paid-in Capital | Accumulated Deficit | Treasury Stock | Accumulated Other Comprehensive Income | Total Altice USA Stockholders'Deficiency | Non-controlling Interests | Total Deficiency | |||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2021 | $ | 2,972 | $ | 1,859 | $ | — | $ | (985,641) | $ | (163,866) | $ | 3,646 | $ | (1,141,030) | $ | (62,109) | $ | (1,203,139) | |||||||||||||||||||||||||||||||||||
Net income attributable to stockholders | — | — | — | 274,136 | — | — | 274,136 | — | 274,136 | ||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | — | — | 4,403 | 4,403 | ||||||||||||||||||||||||||||||||||||||||||||
Pension liability adjustments, net of income taxes | — | — | — | — | — | 6,356 | 6,356 | — | 6,356 | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of income taxes | — | — | — | — | — | 619 | 619 | — | 619 | ||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense (equity classified) | — | — | — | 27,964 | — | — | 27,964 | — | 27,964 | ||||||||||||||||||||||||||||||||||||||||||||
Redeemable equity vested | — | — | — | 20,131 | — | — | 20,131 | — | 20,131 | ||||||||||||||||||||||||||||||||||||||||||||
Change in redeemable equity | — | — | — | 2,528 | — | — | 2,528 | — | 2,528 | ||||||||||||||||||||||||||||||||||||||||||||
Class A shares acquired through share repurchase program and retired | (152) | — | — | (522,521) | — | — | (522,673) | — | (522,673) | ||||||||||||||||||||||||||||||||||||||||||||
Conversion of Class B to Class A shares | 1 | (1) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares pursuant to employee long term incentive plan | 1 | — | — | 2,037 | 6 | — | 2,044 | — | 2,044 | ||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | (4,244) | — | — | (4,244) | 4,302 | 58 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | 2,822 | $ | 1,858 | $ | — | $ | (1,185,610) | $ | (163,860) | $ | 10,621 | $ | (1,334,169) | $ | (53,404) | $ | (1,387,573) |
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIENCY (In thousands) (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | Paid-in Capital | Accumulated Deficit | Treasury Stock | Accumulated Other Comprehensive Income | Total Altice USA Stockholders'Deficiency | Non-controlling Interests | Total Deficiency | |||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | 2,822 | $ | 1,858 | $ | — | $ | (1,185,610) | $ | (163,860) | $ | 10,621 | $ | (1,334,169) | $ | (53,404) | $ | (1,387,573) | |||||||||||||||||||||||||||||||||||
Net income attributable to stockholders | — | — | — | 197,660 | — | — | 197,660 | — | 197,660 | ||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | — | — | 3,274 | 3,274 | ||||||||||||||||||||||||||||||||||||||||||||
Pension liability adjustments, net of income taxes | — | — | — | — | — | 1,088 | 1,088 | — | 1,088 | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of income taxes | — | — | — | — | — | (140) | (140) | — | (140) | ||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense (equity classified) | — | — | — | 27,385 | — | — | 27,385 | — | 27,385 | ||||||||||||||||||||||||||||||||||||||||||||
Redeemable equity vested | — | — | — | 3,618 | — | — | 3,618 | — | 3,618 | ||||||||||||||||||||||||||||||||||||||||||||
Change in redeemable equity | — | — | — | (514) | — | — | (514) | — | (514) | ||||||||||||||||||||||||||||||||||||||||||||
Class A shares acquired through share repurchase program and retired | (58) | — | — | (202,787) | — | — | (202,845) | — | (202,845) | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares pursuant to employee long term incentive plan | 8 | — | — | (488) | 9,365 | — | 8,885 | — | 8,885 | ||||||||||||||||||||||||||||||||||||||||||||
Retirement of treasury stock | (59) | — | — | (154,436) | 154,495 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | 92 | — | — | 92 | 76 | 168 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | 2,713 | $ | 1,858 | $ | — | $ | (1,315,080) | $ | — | $ | 11,569 | $ | (1,298,940) | $ | (50,054) | $ | (1,348,994) |
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIENCY (In thousands) (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | Paid-in Capital | Accumulated Deficit | Treasury Stock | Accumulated Other Comprehensive Income | Total Altice USA Stockholders'Deficiency | Non-controlling Interests | Total Deficiency | |||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | 2,713 | $ | 1,858 | $ | — | $ | (1,315,080) | $ | — | $ | 11,569 | $ | (1,298,940) | $ | (50,054) | $ | (1,348,994) | |||||||||||||||||||||||||||||||||||
Net income attributable to stockholders | — | — | — | 266,853 | — | — | 266,853 | — | 266,853 | ||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | — | — | 3,896 | 3,896 | ||||||||||||||||||||||||||||||||||||||||||||
Pension liability adjustments, net of income taxes | — | — | — | — | — | (1,529) | (1,529) | — | (1,529) | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of income taxes | — | — | — | — | — | (619) | (619) | — | (619) | ||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense (equity classified) | — | — | — | 24,172 | — | — | 24,172 | — | 24,172 | ||||||||||||||||||||||||||||||||||||||||||||
Class A shares acquired through share repurchase program and retired | (26) | — | — | (79,384) | — | — | (79,410) | — | (79,410) | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares pursuant to employee long term incentive plan | 2 | — | — | 2,956 | — | — | 2,958 | — | 2,958 | ||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | (14) | — | — | (14) | — | (14) | ||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | $ | 2,689 | $ | 1,858 | $ | — | $ | (1,100,497) | $ | — | $ | 9,421 | $ | (1,086,529) | $ | (46,158) | $ | (1,132,687) |
Nine Months Ended September 30, | ||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income | $ | 413,302 | $ | 750,222 | ||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization (including impairments) | 1,327,243 | 1,327,142 | ||||||||||||||||||
Loss (gain) on investments | 902,060 | (151,651) | ||||||||||||||||||
Loss (gain) on derivative contracts, net | (643,856) | 109,020 | ||||||||||||||||||
Loss on extinguishment of debt and write-off of deferred financing costs | — | 51,712 | ||||||||||||||||||
Amortization of deferred financing costs and discounts (premiums) on indebtedness | 61,447 | 69,176 | ||||||||||||||||||
Share-based compensation expense | 114,410 | 80,277 | ||||||||||||||||||
Deferred income taxes | (89,240) | 97,046 | ||||||||||||||||||
Decrease in right-of-use assets | 33,315 | 32,694 | ||||||||||||||||||
Provision for doubtful accounts | 65,281 | 46,448 | ||||||||||||||||||
Other | (492) | 1,434 | ||||||||||||||||||
Change in assets and liabilities, net of effects of acquisitions and dispositions: | ||||||||||||||||||||
Accounts receivable, trade | 389 | (35,077) | ||||||||||||||||||
Prepaid expenses and other assets | 15,730 | 33,381 | ||||||||||||||||||
Amounts due from and due to affiliates | (1,732) | 12,804 | ||||||||||||||||||
Accounts payable and accrued liabilities | 17,776 | (121,503) | ||||||||||||||||||
Deferred revenue | (5,508) | (24,829) | ||||||||||||||||||
Liabilities related to interest rate swap contracts | (304,409) | (100,817) | ||||||||||||||||||
Net cash provided by operating activities | 1,905,716 | 2,177,479 | ||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Capital expenditures | (1,371,056) | (845,067) | ||||||||||||||||||
Payments for acquisitions, net of cash acquired | (2,060) | (340,444) | ||||||||||||||||||
Other, net | (2,985) | (2,285) | ||||||||||||||||||
Net cash used in investing activities | (1,376,101) | (1,187,796) | ||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from long-term debt | 1,565,000 | 3,310,000 | ||||||||||||||||||
Repayment of debt | (1,942,428) | (3,483,026) | ||||||||||||||||||
Proceeds from collateralized indebtedness and related derivative contracts, net | — | 185,105 | ||||||||||||||||||
Repayment of collateralized indebtedness and related derivative contracts, net | — | (185,105) | ||||||||||||||||||
Principal payments on finance lease obligations | (97,165) | (60,257) | ||||||||||||||||||
Purchase of shares of Altice USA Class A common stock, pursuant to a share repurchase program | — | (804,928) | ||||||||||||||||||
Other | (207) | 2,698 | ||||||||||||||||||
Net cash used in financing activities | (474,800) | (1,035,513) | ||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 54,815 | (45,830) | ||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 51 | (140) | ||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 54,866 | (45,970) | ||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of year | 195,975 | 278,686 | ||||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 250,841 | $ | 232,716 |
CSC HOLDINGS, LLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) | |||||||||||
September 30, 2022 (Unaudited) | December 31, 2021 | ||||||||||
ASSETS | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | $ | 248,019 | $ | 193,154 | |||||||
Restricted cash | 265 | 264 | |||||||||
Accounts receivable, trade (less allowance for doubtful accounts of $37,900 and $27,931, respectively) | 343,355 | 406,952 | |||||||||
Prepaid expenses and other current assets ($519 and $3,776 due from affiliates, respectively) | 164,412 | 183,714 | |||||||||
Derivative contracts | 481,914 | 2,993 | |||||||||
Investment securities pledged as collateral | 1,259,877 | — | |||||||||
Total current assets | 2,497,842 | 787,077 | |||||||||
Property, plant and equipment, net of accumulated depreciation of $7,649,014 and $7,142,852, respectively | 7,077,966 | 6,340,467 | |||||||||
Right-of-use operating lease assets | 234,707 | 222,124 | |||||||||
Investment securities pledged as collateral | — | 2,161,937 | |||||||||
Other assets | 264,974 | 76,653 | |||||||||
Amortizable intangibles, net of accumulated amortization of $5,421,667 and $5,051,149, respectively | 1,782,300 | 2,202,001 | |||||||||
Indefinite-lived cable television franchises | 13,216,355 | 13,216,355 | |||||||||
Goodwill | 8,205,863 | 8,205,863 | |||||||||
Total assets | $ | 33,280,007 | $ | 33,212,477 |
LIABILITIES AND MEMBER'S DEFICIENCY | |||||||||||
Current Liabilities: | |||||||||||
Accounts payable | $ | 1,084,737 | $ | 1,023,045 | |||||||
Interest payable | 224,278 | 244,934 | |||||||||
Accrued employee related costs | 155,384 | 124,941 | |||||||||
Deferred revenue | 90,040 | 94,943 | |||||||||
Debt | 2,062,295 | 917,313 | |||||||||
Other current liabilities ($26,821 and $31,810 due to affiliates, respectively) | 352,773 | 329,944 | |||||||||
Total current liabilities | 3,969,507 | 2,735,120 | |||||||||
Other liabilities | 160,716 | 159,082 | |||||||||
Deferred tax liability | 4,975,363 | 5,067,442 | |||||||||
Liabilities under derivative contracts | — | 276,933 | |||||||||
Right-of-use operating lease liability | 245,360 | 237,226 | |||||||||
Long-term debt, net of current maturities | 24,290,003 | 25,629,447 | |||||||||
Total liabilities | 33,640,949 | 34,105,250 | |||||||||
Commitments and contingencies (Note 14) | |||||||||||
Member's deficiency (100 membership units issued and outstanding) | (340,824) | (848,156) | |||||||||
Accumulated other comprehensive income | 5,432 | 6,497 | |||||||||
Total member's deficiency | (335,392) | (841,659) | |||||||||
Noncontrolling interest | (25,550) | (51,114) | |||||||||
Total deficiency | (360,942) | (892,773) | |||||||||
Total liabilities and member's deficiency | $ | 33,280,007 | $ | 33,212,477 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenue (including revenue from affiliates of $649, $3,277, $1,765, and $9,718, respectively) (See Note 13) | $ | 2,393,552 | $ | 2,574,882 | $ | 7,278,463 | $ | 7,569,711 | |||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Programming and other direct costs (including charges from affiliates of $4,086, $5,294, $11,419 and $12,026, respectively) (See Note 13) | 782,121 | 843,909 | 2,429,925 | 2,545,645 | |||||||||||||||||||
Other operating expenses (including charges from affiliates of $3,111, $3,274, $9,243 and $9,149 respectively) (See Note 13) | 694,390 | 590,519 | 2,009,760 | 1,760,132 | |||||||||||||||||||
Restructuring and other expense | 4,007 | 1,885 | 10,058 | 10,958 | |||||||||||||||||||
Depreciation and amortization (including impairments) | 445,769 | 447,958 | 1,327,243 | 1,327,142 | |||||||||||||||||||
1,926,287 | 1,884,271 | 5,776,986 | 5,643,877 | ||||||||||||||||||||
Operating income | 467,265 | 690,611 | 1,501,477 | 1,925,834 | |||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest expense, net | (340,989) | (319,001) | (954,564) | (954,684) | |||||||||||||||||||
Gain (loss) on investments | (425,686) | (46,821) | (902,060) | 151,651 | |||||||||||||||||||
Gain (loss) on derivative contracts, net | 323,668 | 43,385 | 643,856 | (109,020) | |||||||||||||||||||
Gain on interest rate swap contracts, net | 105,945 | 5,521 | 268,960 | 59,600 | |||||||||||||||||||
Loss on extinguishment of debt and write-off of deferred financing costs | — | — | — | (51,712) | |||||||||||||||||||
Other income, net | 3,245 | 2,280 | 8,196 | 7,606 | |||||||||||||||||||
(333,817) | (314,636) | (935,612) | (896,559) | ||||||||||||||||||||
Income before income taxes | 133,448 | 375,975 | 565,865 | 1,029,275 | |||||||||||||||||||
Income tax expense | (35,827) | (105,226) | (152,563) | (276,756) | |||||||||||||||||||
Net income | 97,621 | 270,749 | 413,302 | 752,519 | |||||||||||||||||||
Net income attributable to noncontrolling interests | (12,670) | (3,896) | (25,626) | (11,573) | |||||||||||||||||||
Net income attributable to CSC Holdings, LLC sole member | $ | 84,951 | $ | 266,853 | $ | 387,676 | $ | 740,946 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net income | $ | 97,621 | $ | 270,749 | $ | 413,302 | $ | 752,519 | |||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Defined benefit pension plans | 540 | (2,084) | (1,515) | 8,056 | |||||||||||||||||||
Applicable income taxes | (143) | 555 | 400 | (2,142) | |||||||||||||||||||
Defined benefit pension plans, net of income taxes | 397 | (1,529) | (1,115) | 5,914 | |||||||||||||||||||
Foreign currency translation adjustment | 159 | (619) | 50 | (140) | |||||||||||||||||||
Applicable income taxes | — | — | — | — | |||||||||||||||||||
Foreign currency translation adjustment, net of income taxes | 159 | (619) | 50 | (140) | |||||||||||||||||||
Other comprehensive income (loss) | 556 | (2,148) | (1,065) | 5,774 | |||||||||||||||||||
Comprehensive income | 98,177 | 268,601 | 412,237 | 758,293 | |||||||||||||||||||
Comprehensive income attributable to noncontrolling interests | (12,670) | (3,896) | (25,626) | (11,573) | |||||||||||||||||||
Comprehensive income attributable to CSC Holdings, LLC's sole member | $ | 85,507 | $ | 264,705 | $ | 386,611 | $ | 746,720 |
Member's Deficiency | Accumulated Other Comprehensive Income | Total Member's Deficiency | Noncontrolling Interests | Total Deficiency | |||||||||||||||||||||||||
Balance at January 1, 2022 | $ | (848,156) | $ | 6,497 | $ | (841,659) | $ | (51,114) | $ | (892,773) | |||||||||||||||||||
Net income attributable to CSC Holdings' sole member | 196,551 | — | 196,551 | — | 196,551 | ||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | 5,590 | 5,590 | ||||||||||||||||||||||||
Pension liability adjustments, net of income taxes | — | 1,843 | 1,843 | — | 1,843 | ||||||||||||||||||||||||
Foreign currency translation adjustment, net of income taxes | — | (170) | (170) | — | (170) | ||||||||||||||||||||||||
Share-based compensation expense (equity classified) | 40,512 | — | 40,512 | — | 40,512 | ||||||||||||||||||||||||
Non-cash contribution from parent | 11 | — | 11 | — | 11 | ||||||||||||||||||||||||
Balance at March 31, 2022 | (611,082) | 8,170 | (602,912) | (45,524) | (648,436) | ||||||||||||||||||||||||
Net income attributable to CSC Holdings' sole member | 106,174 | — | 106,174 | — | 106,174 | ||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | 7,366 | 7,366 | ||||||||||||||||||||||||
Pension liability adjustments, net of income taxes | — | (3,355) | (3,355) | — | (3,355) | ||||||||||||||||||||||||
Foreign currency translation adjustment, net of income taxes | — | 61 | 61 | — | 61 | ||||||||||||||||||||||||
Share-based compensation expense (equity classified) | 41,680 | — | 41,680 | — | 41,680 | ||||||||||||||||||||||||
Non-cash contribution from parent | 5 | — | 5 | — | 5 | ||||||||||||||||||||||||
Balance at June 30, 2022 | (463,223) | 4,876 | (458,347) | (38,158) | (496,505) | ||||||||||||||||||||||||
Net income attributable to CSC Holdings' sole member | 84,951 | — | 84,951 | — | 84,951 | ||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | 12,670 | 12,670 | ||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | (62) | (62) | ||||||||||||||||||||||||
Pension liability adjustments, net of income taxes | — | 397 | 397 | — | 397 | ||||||||||||||||||||||||
Foreign currency translation adjustment, net of income taxes | — | 159 | 159 | — | 159 | ||||||||||||||||||||||||
Share-based compensation expense (equity classified) | 37,527 | — | 37,527 | — | 37,527 | ||||||||||||||||||||||||
Non-cash distributions to parent, net | (79) | — | (79) | — | (79) | ||||||||||||||||||||||||
Balance at September 30, 2022 | $ | (340,824) | $ | 5,432 | $ | (335,392) | $ | (25,550) | $ | (360,942) |
Member's Deficiency | Accumulated Other Comprehensive Income | Total Member's Deficiency | Noncontrolling Interests | Total Deficiency | |||||||||||||||||||||||||||||||
Balance at January 1, 2021 | $ | (1,172,505) | $ | 3,646 | $ | (1,168,859) | $ | (62,109) | $ | (1,230,968) | |||||||||||||||||||||||||
Net income attributable to CSC Holdings' sole member | 274,136 | — | 274,136 | — | 274,136 | ||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | 4,403 | 4,403 | ||||||||||||||||||||||||||||||
Pension liability adjustments, net of income taxes | — | 6,356 | 6,356 | — | 6,356 | ||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of income taxes | — | 619 | 619 | — | 619 | ||||||||||||||||||||||||||||||
Share-based compensation expense (equity classified) | 27,964 | — | 27,964 | — | 27,964 | ||||||||||||||||||||||||||||||
Redeemable equity vested | 20,131 | — | 20,131 | — | 20,131 | ||||||||||||||||||||||||||||||
Change in redeemable equity | 2,528 | — | 2,528 | — | 2,528 | ||||||||||||||||||||||||||||||
Cash distributions to parent | (501,000) | — | (501,000) | — | (501,000) | ||||||||||||||||||||||||||||||
Non-cash distributions to parent | (748) | — | (748) | — | (748) | ||||||||||||||||||||||||||||||
Other | (4,056) | — | (4,056) | 4,302 | 246 | ||||||||||||||||||||||||||||||
Balance at March 31, 2021 | (1,353,550) | 10,621 | (1,342,929) | (53,404) | (1,396,333) | ||||||||||||||||||||||||||||||
Net income attributable to CSC Holdings' sole member | 199,957 | — | 199,957 | — | 199,957 | ||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | 3,274 | 3,274 | ||||||||||||||||||||||||||||||
Pension liability adjustments, net of income taxes | — | 1,088 | 1,088 | — | 1,088 | ||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of income taxes | — | (140) | (140) | — | (140) | ||||||||||||||||||||||||||||||
Share-based compensation expense (equity classified) | 27,385 | — | 27,385 | — | 27,385 | ||||||||||||||||||||||||||||||
Redeemable equity vested | 3,618 | — | 3,618 | — | 3,618 | ||||||||||||||||||||||||||||||
Change in redeemable equity | (514) | — | (514) | — | (514) | ||||||||||||||||||||||||||||||
Cash distributions to parent | (184,478) | — | (184,478) | — | (184,478) | ||||||||||||||||||||||||||||||
Non-cash distributions to parent | (19,660) | (19,660) | (19,660) | ||||||||||||||||||||||||||||||||
Other | 257 | — | 257 | 76 | 333 | ||||||||||||||||||||||||||||||
Balance at June 30, 2021 | (1,326,985) | 11,569 | (1,315,416) | (50,054) | (1,365,470) | ||||||||||||||||||||||||||||||
Net income attributable to CSC Holdings' sole member | 266,853 | — | 266,853 | — | 266,853 | ||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | 3,896 | 3,896 | ||||||||||||||||||||||||||||||
Pension liability adjustments, net of income taxes | — | (1,529) | (1,529) | — | (1,529) | ||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | (619) | (619) | — | (619) | ||||||||||||||||||||||||||||||
Share-based compensation expense | 24,172 | — | 24,172 | — | 24,172 | ||||||||||||||||||||||||||||||
Cash distributions to parent | (77,957) | — | (77,957) | — | (77,957) | ||||||||||||||||||||||||||||||
Non-cash distributions to parent | (754) | (754) | (754) | ||||||||||||||||||||||||||||||||
Other | 98 | — | 98 | — | 98 | ||||||||||||||||||||||||||||||
Balance at September 30, 2021 | $ | (1,114,573) | $ | 9,421 | $ | (1,105,152) | $ | (46,158) | $ | (1,151,310) |
Nine Months Ended September 30, | ||||||||||||||
2022 | 2021 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net income | $ | 413,302 | $ | 752,519 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization (including impairments) | 1,327,243 | 1,327,142 | ||||||||||||
Loss (gain) on investments | 902,060 | (151,651) | ||||||||||||
Loss (gain) on derivative contracts, net | (643,856) | 109,020 | ||||||||||||
Loss on extinguishment of debt and write-off of deferred financing costs | — | 51,712 | ||||||||||||
Amortization of deferred financing costs and discounts (premiums) on indebtedness | 61,447 | 69,176 | ||||||||||||
Share-based compensation expense | 114,410 | 80,277 | ||||||||||||
Deferred income taxes | (89,240) | 85,298 | ||||||||||||
Decrease in right-of-use assets | 33,315 | 32,694 | ||||||||||||
Provision for doubtful accounts | 65,281 | 46,448 | ||||||||||||
Other | (492) | 1,434 | ||||||||||||
Change in assets and liabilities, net of effects of acquisitions and dispositions: | ||||||||||||||
Accounts receivable, trade | 389 | (35,077) | ||||||||||||
Prepaid expenses and other assets | 15,730 | 33,281 | ||||||||||||
Amounts due from and due to affiliates | (1,732) | (8,358) | ||||||||||||
Accounts payable and accrued liabilities | 17,776 | (120,934) | ||||||||||||
Deferred revenue | (5,508) | (24,829) | ||||||||||||
Liabilities related to interest rate swap contracts | (304,409) | (100,817) | ||||||||||||
Net cash provided by operating activities | 1,905,716 | 2,147,335 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||
Capital expenditures | (1,371,056) | (845,067) | ||||||||||||
Payments for acquisitions, net of cash acquired | (2,060) | (340,444) | ||||||||||||
Other, net | (2,985) | (2,285) | ||||||||||||
Net cash used in investing activities | (1,376,101) | (1,187,796) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||
Proceeds from long-term debt | 1,565,000 | 3,310,000 | ||||||||||||
Repayment of debt | (1,942,428) | (3,483,026) | ||||||||||||
Proceeds from collateralized indebtedness and related derivative contracts, net | — | 185,105 | ||||||||||||
Repayment of collateralized indebtedness and related derivative contracts, net | — | (185,105) | ||||||||||||
Distributions to parent | — | (763,435) | ||||||||||||
Principal payments on finance lease obligations | (97,165) | (60,257) | ||||||||||||
Other | (207) | (10,724) | ||||||||||||
Net cash used in financing activities | (474,800) | (1,007,442) | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 54,815 | (47,903) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 51 | (140) | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 54,866 | (48,043) | ||||||||||||
Cash, cash equivalents and restricted cash at beginning of year | 193,418 | 278,202 | ||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 248,284 | $ | 230,159 |
Fair Values | Estimated Useful Lives | ||||
Current assets | $ | 1,923,071 | |||
Accounts receivable | 271,305 | ||||
Property, plant and equipment | 4,864,621 | 2-18 years | |||
Goodwill | 5,842,172 | ||||
Indefinite-lived cable television franchises | 8,113,575 | Indefinite-lived | |||
Customer relationships | 4,850,000 | 8 to 18 years | |||
Trade names (a) | 1,010,000 | 12 years | |||
Amortizable intangible assets | 23,296 | 1-15 years | |||
Other non-current assets | 748,998 | ||||
Current liabilities | (2,311,201 | ) | |||
Long-term debt | (8,355,386 | ) | |||
Deferred income taxes. | (6,832,773 | ) | |||
Other non-current liabilities | (189,355 | ) | |||
Total | $ | 9,958,323 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Broadband | $ | 981,842 | $ | 989,410 | $ | 2,970,039 | $ | 2,952,136 | |||||||||||||||
Video | 816,001 | 877,422 | 2,499,437 | 2,675,861 | |||||||||||||||||||
Telephony | 83,097 | 99,943 | 252,952 | 310,298 | |||||||||||||||||||
Residential | 1,880,940 | 1,966,775 | 5,722,428 | 5,938,295 | |||||||||||||||||||
Business services and wholesale | 366,554 | 440,813 | 1,105,579 | 1,180,039 | |||||||||||||||||||
News and advertising | 120,522 | 143,625 | 368,447 | 380,462 | |||||||||||||||||||
Mobile | 22,837 | 20,456 | 73,312 | 60,355 | |||||||||||||||||||
Other | 2,699 | 3,213 | 8,697 | 10,560 | |||||||||||||||||||
Total revenue | $ | 2,393,552 | $ | 2,574,882 | $ | 7,278,463 | $ | 7,569,711 |
Nine Months Ended September 30, 2016 | |||
Revenue | $ | 6,848,916 | |
Net loss | $ | (527,851 | ) |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Non-Cash Investing and Financing Activities: | |||||||
Continuing Operations: | |||||||
Conversion of notes payable to affiliates and related parties of $1,750,000 (together with accrued and unpaid interest and applicable premium) to common stock (See Note 9) | $ | 2,264,252 | $ | — | |||
Property and equipment accrued but unpaid | 84,847 | 83,722 | |||||
Leasehold improvements paid by landlord | 3,998 | — | |||||
Notes payable to vendor | 25,879 | — | |||||
Supplemental Data: | |||||||
Cash interest paid | 1,481,363 | 931,345 | |||||
Income taxes paid, net | 26,396 | 5,342 |
The following table summarizes the activity for the 2016 Restructuring Plan during 2017: | |||||||||||
Severance and Other Employee Related Costs | Facility Realignment and Other Costs | Total | |||||||||
Accrual balance at December 31, 2016 | $ | 102,119 | $ | 8,397 | $ | 110,516 | |||||
Restructuring charges | 140,071 | 1,007 | 141,078 | ||||||||
Payments and other | (92,905 | ) | (3,833 | ) | (96,738 | ) | |||||
Accrual balance at September 30, 2017 | $ | 149,285 | $ | 5,571 | $ | 154,856 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Basic weighted average shares outstanding | 453,239 | 454,049 | 453,233 | 460,023 | |||||||||||||||||||
Effect of dilution: | |||||||||||||||||||||||
Stock options | — | 3,114 | — | 5,311 | |||||||||||||||||||
Restricted stock units | 151 | — | 51 | 15 | |||||||||||||||||||
Diluted weighted average shares outstanding | 453,390 | 457,163 | 453,284 | 465,349 | |||||||||||||||||||
Weighted average shares excluded from diluted weighted average shares outstanding: | |||||||||||||||||||||||
Anti-dilutive shares | 57,538 | 26,453 | 57,950 | 9,381 | |||||||||||||||||||
Performance stock units and restricted stock whose performance metrics have not been achieved. | 7,298 | 8,618 | 7,481 | 8,704 |
Nine Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
Non-Cash Investing and Financing Activities: | |||||||||||
Altice USA and CSC Holdings: | |||||||||||
Property and equipment accrued but unpaid and other | $ | 380,898 | $ | 238,163 | |||||||
Notes payable issued for the purchase of equipment and other assets | 88,181 | 61,316 | |||||||||
Right-of-use assets acquired in exchange for finance lease obligations | 130,861 | 107,708 | |||||||||
Other non-cash investing and financing transactions | 500 | 500 | |||||||||
CSC Holdings: | |||||||||||
Distributions to parent | — | 21,162 | |||||||||
Supplemental Data: | |||||||||||
Altice USA and CSC Holdings: | |||||||||||
Cash interest paid, net of capitalized interest | 913,963 | 897,404 | |||||||||
Income taxes paid, net | 203,714 | 177,218 | |||||||||
As of September 30, 2022 | As of December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Estimated Useful Lives | |||||||||||||||||||||||||||||||||||
Customer relationships | $ | 6,119,298 | $ | (4,373,246) | $ | 1,746,052 | $ | 6,113,669 | $ | (4,020,282) | $ | 2,093,387 | 3 to 18 years | ||||||||||||||||||||||||||||
Trade names | 1,024,300 | (1,002,395) | 21,905 | 1,081,083 | (988,563) | 92,520 | 4 to 10 years | ||||||||||||||||||||||||||||||||||
Other amortizable intangibles | 60,369 | (46,026) | 14,343 | 58,398 | (42,304) | 16,094 | 1 to 15 years | ||||||||||||||||||||||||||||||||||
$ | 7,203,967 | $ | (5,421,667) | $ | 1,782,300 | $ | 7,253,150 | $ | (5,051,149) | $ | 2,202,001 |
Amortizable Intangible Assets | |||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Estimated Useful Lives | ||||||||||
Customer relationships | $ | 5,970,884 | (1,207,217 | ) | $ | 4,763,667 | 8 to 18 years | ||||||
Trade names (a) | 1,067,083 | (432,402 | ) | 634,681 | 2 to 4 years | ||||||||
Other amortizable intangibles | 37,052 | (8,805 | ) | 28,247 | 1 to 15 years | ||||||||
$ | 7,075,019 | $ | (1,648,424 | ) | $ | 5,426,595 |
Cablevision | Cequel | Total | |||||||||
Cable television franchises | $ | 8,113,575 | $ | 4,906,506 | $ | 13,020,081 | |||||
Goodwill | 5,839,757 | 2,153,742 | 7,993,499 | ||||||||
Total | $ | 13,953,332 | $ | 7,060,248 | $ | 21,013,580 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Amortization expense related to amortizable intangible assets | $ | 134,709 | $ | 155,223 | $ | 427,301 | $ | 482,331 |
Gross goodwill as of January 1, 2017 | $ | 7,992,700 | |
Goodwill recorded in connection with acquisition in first quarter 2017 (Cablevision Segment) | 20,687 | ||
Adjustments to purchase accounting relating to Cablevision Acquisition | 3,213 | ||
Transfer of Cablevision goodwill related to Altice Technical Services US Corp. (See Note 14 for further details) | (23,101 | ) | |
Net goodwill as of September 30, 2017 | $ | 7,993,499 |
Interest Rate | September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||
Date Issued | Maturity Date | Principal Amount | Carrying Amount (a) | Principal Amount | Carrying Amount (a) | |||||||||||||||||||||||||||||||||
CSC Holdings Senior Notes: | ||||||||||||||||||||||||||||||||||||||
September 27, 2012 | September 15, 2022 | 5.875 | % | $ | — | $ | — | $ | 649,024 | $ | 635,310 | |||||||||||||||||||||||||||
May 23, 2014 | June 1, 2024 | 5.250 | % | 750,000 | 722,401 | 750,000 | 711,137 | |||||||||||||||||||||||||||||||
October 18, 2018 | April 1, 2028 | 7.500 | % | 4,118 | 4,113 | 4,118 | 4,113 | |||||||||||||||||||||||||||||||
November 27, 2018 | April 1, 2028 | 7.500 | % | 1,045,882 | 1,044,707 | 1,045,882 | 1,044,582 | |||||||||||||||||||||||||||||||
July 10 and October 7, 2019 | January 15, 2030 | 5.750 | % | 2,250,000 | 2,280,354 | 2,250,000 | 2,282,875 | |||||||||||||||||||||||||||||||
June 16 and August 17, 2020 | December 1, 2030 | 4.625 | % | 2,325,000 | 2,364,059 | 2,325,000 | 2,366,886 | |||||||||||||||||||||||||||||||
May 13, 2021 | November 15, 2031 | 5.000 | % | 500,000 | 498,340 | 500,000 | 498,234 | |||||||||||||||||||||||||||||||
6,875,000 | 6,913,974 | 7,524,024 | 7,543,137 | |||||||||||||||||||||||||||||||||||
CSC Holdings Senior Guaranteed Notes: | ||||||||||||||||||||||||||||||||||||||
September 23, 2016 | April 15, 2027 | 5.500 | % | 1,310,000 | 1,306,941 | 1,310,000 | 1,306,508 | |||||||||||||||||||||||||||||||
January 29, 2018 | February 1, 2028 | 5.375 | % | 1,000,000 | 994,868 | 1,000,000 | 994,262 | |||||||||||||||||||||||||||||||
January 24, 2019 | February 1, 2029 | 6.500 | % | 1,750,000 | 1,747,721 | 1,750,000 | 1,747,511 | |||||||||||||||||||||||||||||||
June 16, 2020 | December 1, 2030 | 4.125 | % | 1,100,000 | 1,095,973 | 1,100,000 | 1,095,672 | |||||||||||||||||||||||||||||||
August 17, 2020 | February 15, 2031 | 3.375 | % | 1,000,000 | 997,185 | 1,000,000 | 996,970 | |||||||||||||||||||||||||||||||
May 13, 2021 | November 15, 2031 | 4.500 | % | 1,500,000 | 1,495,033 | 1,500,000 | 1,494,710 | |||||||||||||||||||||||||||||||
7,660,000 | 7,637,721 | 7,660,000 | 7,635,633 | |||||||||||||||||||||||||||||||||||
CSC Holdings Restricted Group Credit Facility: | ||||||||||||||||||||||||||||||||||||||
Revolving Credit Facility (b) (c) | July 13, 2027 | 5.171 | % | 1,300,000 | 1,295,506 | 900,000 | 893,864 | |||||||||||||||||||||||||||||||
Term Loan B | July 17, 2025 | 5.068 | % | 2,842,500 | 2,835,701 | 2,865,000 | 2,856,421 | |||||||||||||||||||||||||||||||
Incremental Term Loan B-3 | January 15, 2026 | 5.068 | % | 1,230,375 | 1,227,474 | 1,239,938 | 1,236,394 | |||||||||||||||||||||||||||||||
Incremental Term Loan B-5 | April 15, 2027 | 5.318 | % | 2,925,000 | 2,909,628 | 2,947,500 | 2,929,813 | |||||||||||||||||||||||||||||||
8,297,875 | 8,268,309 | 7,952,438 | 7,916,492 | |||||||||||||||||||||||||||||||||||
Lightpath Senior Notes: | ||||||||||||||||||||||||||||||||||||||
September 29, 2020 | September 15, 2028 | 5.625 | % | 415,000 | 407,836 | 415,000 | 407,104 | |||||||||||||||||||||||||||||||
Lightpath Senior Secured Notes: | ||||||||||||||||||||||||||||||||||||||
September 29, 2020 | September 15, 2027 | 3.875 | % | 450,000 | 442,712 | 450,000 | 441,739 | |||||||||||||||||||||||||||||||
Lightpath Term Loan | November 30, 2027 | 6.068 | % | 589,500 | 576,378 | 594,000 | 579,119 | |||||||||||||||||||||||||||||||
Lightpath Revolving Credit Facility | November 30, 2025 | (d) | — | — | — | — | ||||||||||||||||||||||||||||||||
1,454,500 | 1,426,926 | 1,459,000 | 1,427,962 | |||||||||||||||||||||||||||||||||||
Collateralized indebtedness (see Note 9) (f) | 1,759,017 | 1,736,294 | 1,759,017 | 1,706,997 | ||||||||||||||||||||||||||||||||||
Finance lease obligations | 252,430 | 252,430 | 218,735 | 218,735 | ||||||||||||||||||||||||||||||||||
Notes payable and supply chain financing (e) | 116,644 | 116,644 | 97,804 | 97,804 | ||||||||||||||||||||||||||||||||||
26,415,466 | 26,352,298 | 26,671,018 | 26,546,760 | |||||||||||||||||||||||||||||||||||
Less: current portion of credit facility debt | (78,750) | (78,750) | (78,750) | (78,750) | ||||||||||||||||||||||||||||||||||
Less: current portion of senior notes | — | — | (649,024) | (635,310) | ||||||||||||||||||||||||||||||||||
Less: current portion of collateralized indebtedness (f) | (1,759,017) | (1,736,294) | — | — | ||||||||||||||||||||||||||||||||||
Less: current portion of finance lease obligations | (131,020) | (131,020) | (109,204) | (109,204) | ||||||||||||||||||||||||||||||||||
Less: current portion of notes payable and supply chain financing | (116,231) | (116,231) | (94,049) | (94,049) | ||||||||||||||||||||||||||||||||||
(2,085,018) | (2,062,295) | (931,027) | (917,313) | |||||||||||||||||||||||||||||||||||
Long-term debt | $ | 24,330,448 | $ | 24,290,003 | $ | 25,739,991 | $ | 25,629,447 |
Carrying Amount (a) | |||||||||||||||
Maturity Date | Interest Rate | Principal | September 30, 2017 | December 31, 2016 | |||||||||||
CSC Holdings Restricted Group: | |||||||||||||||
Revolving Credit Facility (b) | $20,000 on October 9, 2020, remaining balance on November 30, 2021 | 4.49% | $ | 1,175,000 | $ | 1,149,024 | $ | 145,013 | |||||||
Term Loan Facility | July 17, 2025 | 3.48% | 2,992,500 | 2,974,768 | 2,486,874 | ||||||||||
Cequel: | |||||||||||||||
Revolving Credit Facility (c) | November 30, 2021 | — | — | — | — | ||||||||||
Term Loan Facility | July 28, 2025 | 3.49% | 1,261,838 | 1,253,110 | 812,903 | ||||||||||
$ | 5,429,338 | 5,376,902 | 3,444,790 | ||||||||||||
Less: Current portion | 92,650 | 33,150 | |||||||||||||
Long-term debt | $ | 5,284,252 | $ | 3,411,640 |
Interest Rate | Principal Amount | Carrying Amount (a) | ||||||||||||||||
Issuer | Date Issued | Maturity Date | September 30, 2017 | December 31, 2016 | ||||||||||||||
CSC Holdings (b)(f) | February 6, 1998 | February 15, 2018 | 7.875 | % | $ | 300,000 | $ | 303,531 | $ | 310,334 | ||||||||
CSC Holdings (b)(f) | July 21, 1998 | July 15, 2018 | 7.625 | % | 500,000 | 511,312 | 521,654 | |||||||||||
CSC Holdings (c)(f) | February 12, 2009 | February 15, 2019 | 8.625 | % | 526,000 | 544,422 | 553,804 | |||||||||||
CSC Holdings (c)(f) | November 15, 2011 | November 15, 2021 | 6.750 | % | 1,000,000 | 957,954 | 951,702 | |||||||||||
CSC Holdings (c)(f) | May 23, 2014 | June 1, 2024 | 5.250 | % | 750,000 | 657,903 | 650,193 | |||||||||||
CSC Holdings (e) | October 9, 2015 | January 15, 2023 | 10.125 | % | 1,800,000 | 1,777,085 | 1,774,750 | |||||||||||
CSC Holdings (e)(l) | October 9, 2015 | October 15, 2025 | 10.875 | % | 1,684,221 | 1,660,583 | 1,970,379 | |||||||||||
CSC Holdings (e) | October 9, 2015 | October 15, 2025 | 6.625 | % | 1,000,000 | 986,394 | 985,469 | |||||||||||
CSC Holdings (g) | September 23, 2016 | April 15, 2027 | 5.500 | % | 1,310,000 | 1,304,353 | 1,304,025 | |||||||||||
Cablevision (k) | September 23, 2009 | September 15, 2017 | 8.625 | % | — | — | 926,045 | |||||||||||
Cablevision (c)(f) | April 15, 2010 | April 15, 2018 | 7.750 | % | 750,000 | 757,515 | 767,545 | |||||||||||
Cablevision (c)(f) | April 15, 2010 | April 15, 2020 | 8.000 | % | 500,000 | 491,224 | 488,992 | |||||||||||
Cablevision (c)(f) | September 27, 2012 | September 15, 2022 | 5.875 | % | 649,024 | 568,796 | 559,500 | |||||||||||
Cequel and Cequel Capital Senior Notes (d)(m) | Oct. 25, 2012 Dec. 28, 2012 | September 15, 2020 | 6.375 | % | 1,050,000 | 1,025,616 | 1,457,439 | |||||||||||
Cequel and Cequel Capital Senior Notes (d) | May 16, 2013 Sept. 9, 2014 | December 15, 2021 | 5.125 | % | 1,250,000 | 1,132,926 | 1,115,767 | |||||||||||
Altice US Finance I Corporation Senior Secured Notes (h) | June 12, 2015 | July 15, 2023 | 5.375 | % | 1,100,000 | 1,081,815 | 1,079,869 | |||||||||||
Cequel and Cequel Capital Senior Secured Notes (i) | June 12, 2015 | July 15, 2025 | 7.750 | % | 620,000 | 604,001 | 602,925 | |||||||||||
Altice US Finance I Corporation Senior Notes (j) | April 26, 2016 | May 15, 2026 | 5.500 | % | 1,500,000 | 1,487,745 | 1,486,933 | |||||||||||
$ | 16,289,245 | 15,853,175 | 17,507,325 | |||||||||||||||
Less: Current portion | 1,572,358 | 926,045 | ||||||||||||||||
Long-term debt | $ | 14,280,817 | $ | 16,581,280 |
2022 | $ | 52,965 | ||||||||||||||||||
2023 | 1,920,994 | |||||||||||||||||||
2024 | 828,889 | |||||||||||||||||||
2025 | 2,823,750 | |||||||||||||||||||
2026 | 1,224,938 | |||||||||||||||||||
Thereafter | 19,311,500 |
Years Ending December 31, | Cablevision | Cequel | Total | ||||||||
2017 | $ | 29,925 | $ | 5,256 | $ | 35,181 | |||||
2018 | 1,598,699 | 14,421 | 1,613,120 | ||||||||
2019 | 561,995 | 12,713 | 574,708 | ||||||||
2020 | 530,007 | 1,062,723 | 1,592,730 | ||||||||
2021 | 3,664,638 | 1,263,578 | 4,928,216 | ||||||||
Thereafter | 10,058,245 | 4,428,075 | 14,486,320 |
Derivatives Not Designated as Hedging Instruments | Balance Sheet Location | Fair Value at | ||||||||||||||||||
September 30, 2022 | December 31, 2021 | |||||||||||||||||||
Asset Derivatives: | ||||||||||||||||||||
Interest rate swap contracts | Prepaid expenses and other current assets | $ | — | $ | 2,993 | |||||||||||||||
Prepaid forward contracts | Derivative contracts | 481,914 | — | |||||||||||||||||
Interest rate swap contracts | Other asset, long-term | 188,970 | — | |||||||||||||||||
670,884 | 2,993 | |||||||||||||||||||
Liability Derivatives: | ||||||||||||||||||||
Interest rate swap contracts | Other current liabilities | — | (3,441) | |||||||||||||||||
Prepaid forward contracts | Liabilities under derivative contracts, long-term | — | (161,942) | |||||||||||||||||
Interest rate swap contracts | Liabilities under derivative contracts, long-term | — | (114,991) | |||||||||||||||||
$ | — | $ | (280,374) |
Asset Derivatives | Liability Derivatives | |||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Balance Sheet Location | Fair Value at September 30, 2017 | Fair Value at December 31, 2016 | Fair Value at September 30, 2017 | Fair Value at December 31, 2016 | |||||||||||||
Prepaid forward contracts | Derivative contracts, current | $ | 54,578 | $ | 352 | $ | (54,578 | ) | $ | (13,158 | ) | |||||||
Prepaid forward contracts | Derivative contracts, long-term | — | 10,604 | (52,488 | ) | — | ||||||||||||
Put/Call options | Liabilities under derivative contracts, current | — | — | (48,326 | ) | — | ||||||||||||
Interest rate swap contracts | Liabilities under derivative contracts, long-term | — | — | (69,271 | ) | (78,823 | ) | |||||||||||
$ | 54,578 | $ | 10,956 | $ | (224,663 | ) | $ | (91,981 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Gain (loss) on derivative contracts related to change in the value of equity derivative contracts related to Comcast common stock | $ | 323,668 | $ | 43,385 | $ | 643,856 | $ | (109,020) | |||||||||||||||
Change in the fair value of Comcast common stock included in gain (loss) on investments | (425,686) | (46,821) | (902,060) | 151,632 | |||||||||||||||||||
Gain on interest rate swap contracts, net | 105,945 | 5,521 | 268,960 | 59,600 |
Number of shares (a) | 21,477,618 | ||
Collateralized indebtedness settled | $ | (617,151 | ) |
Derivatives contracts settled | (37,838 | ) | |
(654,989 | ) | ||
Proceeds from new monetization contracts | 662,724 | ||
Net cash proceeds | $ | 7,735 |
Maturity Date | Notional Amount | Company Pays | Company Receives | |||||||||||||||||||||||
CSC Holdings: | ||||||||||||||||||||||||||
January 2025 | $ | 500,000 | Fixed rate of 1.53% | Three-month LIBOR | ||||||||||||||||||||||
January 2025 | 500,000 | Fixed rate of 1.625% | Three-month LIBOR | |||||||||||||||||||||||
January 2025 | 500,000 | Fixed rate of 1.458% | Three-month LIBOR | |||||||||||||||||||||||
December 2026 | 750,000 | Fixed rate of 2.9155% | Three-month LIBOR | |||||||||||||||||||||||
December 2026 | 750,000 | Fixed rate of 2.9025% | Three-month LIBOR | |||||||||||||||||||||||
Lightpath: | ||||||||||||||||||||||||||
December 2026 (a) | 300,000 | Fixed rate of 2.161% | One-month LIBOR | |||||||||||||||||||||||
Fair Value Hierarchy | September 30, 2022 | December 31, 2021 | |||||||||||||||
Assets: | |||||||||||||||||
Money market funds | Level I | $ | 128,616 | $ | 100,015 | ||||||||||||
Investment securities pledged as collateral | Level I | 1,259,877 | 2,161,937 | ||||||||||||||
Prepaid forward contracts | Level II | 481,914 | — | ||||||||||||||
Interest rate swap contracts | Level II | 188,970 | 2,993 | ||||||||||||||
Liabilities: | |||||||||||||||||
Prepaid forward contracts | Level II | — | 161,942 | ||||||||||||||
Interest rate swap contracts | Level II | — | 118,432 | ||||||||||||||
Contingent consideration related to acquisition | Level III | 6,698 | — |
Fair Value Hierarchy | September 30, 2017 | December 31, 2016 | |||||||
Assets: | |||||||||
Money market funds (of which $14,700 is classified as restricted cash as of December 31, 2016) | Level I | $ | 65,801 | $ | 100,139 | ||||
Investment securities pledged as collateral | Level I | 1,652,917 | 1,483,030 | ||||||
Prepaid forward contracts | Level II | 54,578 | 10,956 | ||||||
Liabilities: | |||||||||
Prepaid forward contracts | Level II | 107,066 | 13,158 | ||||||
Put/Call Options | Level II | 48,326 | — | ||||||
Interest rate swap contracts | Level II | 69,271 | 78,823 | ||||||
Contingent consideration related to 2017 acquisition | Level III | 30,000 | — |
September 30, 2017 | December 31, 2016 | ||||||||||||||||
Fair Value Hierarchy | Carrying Amount (a) | Estimated Fair Value | Carrying Amount (a) | Estimated Fair Value | |||||||||||||
Altice USA debt instruments: | |||||||||||||||||
Notes payable to affiliates and related parties | Level II | $ | — | $ | — | $ | 1,750,000 | $ | 1,837,876 | ||||||||
CSC Holdings debt instruments: | |||||||||||||||||
Credit facility debt | Level II | 4,123,792 | 4,167,500 | 2,631,887 | 2,675,256 | ||||||||||||
Collateralized indebtedness | Level II | 1,314,788 | 1,286,557 | 1,286,069 | 1,280,048 | ||||||||||||
Senior guaranteed notes | Level II | 2,290,748 | 2,460,675 | 2,289,494 | 2,416,375 | ||||||||||||
Senior notes and debentures | Level II | 6,412,789 | 7,421,261 | 6,732,816 | 7,731,150 | ||||||||||||
Notes payable | Level II | 76,442 | 72,802 | 13,726 | 13,260 | ||||||||||||
Cablevision senior notes: | Level II | 1,817,536 | 1,998,340 | 2,742,082 | 2,920,056 | ||||||||||||
Cequel debt instruments: | |||||||||||||||||
Cequel credit facility | Level II | 1,253,110 | 1,261,838 | 812,903 | 815,000 | ||||||||||||
Senior secured notes | Level II | 2,569,559 | 2,745,750 | 2,566,802 | 2,689,750 | ||||||||||||
Senior notes | Level II | 2,762,543 | 3,036,850 | 3,176,131 | 3,517,275 | ||||||||||||
Notes payable | Level II | 3,083 | 3,083 | — | — | ||||||||||||
$ | 22,624,390 | $ | 24,454,656 | $ | 24,001,910 | $ | 25,896,046 |
September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||
Fair Value Hierarchy | Carrying Amount (a) | Estimated Fair Value | Carrying Amount (a) | Estimated Fair Value | |||||||||||||||||||||||||
Credit facility debt | Level II | $ | 8,844,687 | $ | 8,887,375 | $ | 8,495,611 | $ | 8,546,438 | ||||||||||||||||||||
Collateralized indebtedness | Level II | 1,736,294 | 1,717,146 | 1,706,997 | 1,741,710 | ||||||||||||||||||||||||
Senior guaranteed notes and senior secured notes | Level II | 8,080,433 | 6,568,450 | 8,077,372 | 8,180,813 | ||||||||||||||||||||||||
Senior notes | Level II | 7,321,810 | 5,391,150 | 7,950,241 | 7,883,071 | ||||||||||||||||||||||||
Notes payable and supply chain financing | Level II | 116,644 | 116,231 | 97,804 | 97,588 | ||||||||||||||||||||||||
$ | 26,099,868 | $ | 22,680,352 | $ | 26,328,025 | $ | 26,449,620 |
Share-Based Compensation | Unrecognized Compensation Cost As of September 30, 2022 | ||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
Awards issued pursuant to LTIP (a): | |||||||||||||||||||||||||||||
Stock Option Awards | $ | 19,904 | $ | 21,886 | $ | 62,311 | $ | 70,582 | $ | 87,564 | |||||||||||||||||||
Performance Stock Units | 1,593 | 2,286 | 5,220 | 8,136 | 32,855 | ||||||||||||||||||||||||
Restricted Share Units | 15,852 | 178 | 46,879 | 756 | 70,616 | ||||||||||||||||||||||||
Other awards | — | — | — | $ | 803 | — | |||||||||||||||||||||||
$ | 37,349 | $ | 24,350 | $ | 114,410 | $ | 80,277 | $ | 191,035 |
Shares Under Option | Weighted Average Exercise Price Per Share | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (a) | ||||||||||||||||||||||||||
Balance at December 31, 2021 | 50,998,816 | $ | 22.51 | 8.29 | $ | 6,801 | |||||||||||||||||||||||
Granted | 4,073,692 | 12.74 | |||||||||||||||||||||||||||
Forfeited | (5,134,398) | 23.44 | |||||||||||||||||||||||||||
Balance at September 30, 2022 | 49,938,110 | $ | 21.62 | 7.80 | — | ||||||||||||||||||||||||
Options exercisable at September 30, 2022 | 18,868,299 | $ | 24.14 | 6.39 | $ | — |
Risk-free interest rate | 2.71% | ||||
Expected life (in years) | 6.15 | ||||
Dividend yield | —% | ||||
Volatility | 39.38% |
Number of PSUs | |||||||||||
Balance at December 31, 2021 | 6,361,894 | ||||||||||
Forfeited | (635,148) | ||||||||||
Balance at September 30, 2022 | 5,726,746 |
Number of Units | |||||||||||
Balance at December 31, 2021 | 6,617,837 | ||||||||||
Granted | 1,511,357 | ||||||||||
Vested | (19,804) | ||||||||||
Forfeited | (496,364) | ||||||||||
Balance at September 30, 2022 | 7,613,026 |
Number of Time Vesting Awards | Number of Performance Based Vesting Awards | Weighted Average Grant Date Fair Value | |||||||
Balance, December 31, 2016 | 192,800,000 | 10,000,000 | $ | 0.37 | |||||
Granted | 28,025,000 | — | 3.14 | ||||||
Forfeited | (4,229,166 | ) | — | 0.37 | |||||
Balance, September 30, 2017 | 216,595,834 | 10,000,000 | 0.71 | ||||||
Awards vested at September 30, 2017 | — | — |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenue | $ | 649 | $ | 3,277 | $ | 1,765 | $ | 9,718 | |||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Programming and other direct costs | $ | (4,086) | $ | (5,294) | $ | (11,419) | $ | (12,026) | |||||||||||||||
Other operating expenses, net | (3,111) | (3,274) | (9,243) | (9,149) | |||||||||||||||||||
Operating expenses, net | (7,197) | (8,568) | (20,662) | (21,175) | |||||||||||||||||||
Net charges | $ | (6,548) | $ | (5,291) | $ | (18,897) | $ | (11,457) | |||||||||||||||
Capital expenditures | $ | 31,228 | $ | 11,320 | $ | 71,321 | $ | 31,530 |
September 30, 2022 | December 31, 2021 | ||||||||||
Due from: | |||||||||||
Altice Europe | $ | 476 | $ | 241 | |||||||
Other affiliates and related parties | 43 | 3,535 | |||||||||
$ | 519 | $ | 3,776 | ||||||||
Due to: | |||||||||||
Altice Europe | $ | 26,074 | $ | 30,604 | |||||||
Other affiliates and related parties | 747 | 1,206 | |||||||||
$ | 26,821 | $ | 31,810 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Cash distribution payments to Altice USA | $ | — | $ | (77,957) | $ | — | $ | (763,435) | |||||||||||||||
Non-cash equity distributions, net to Altice USA | (79) | (754) | (63) | (21,162) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue | $ | 986 | $ | 720 | $ | 1,380 | $ | 720 | |||||||
Operating expenses: | |||||||||||||||
Programming and other direct costs | $ | (1,196 | ) | $ | (642 | ) | $ | (3,026 | ) | $ | (642 | ) | |||
Other operating expenses, net | (28,332 | ) | (8,056 | ) | (73,263 | ) | (13,056 | ) | |||||||
Operating expenses, net | (29,528 | ) | (8,698 | ) | (76,289 | ) | (13,698 | ) | |||||||
Interest expense (a) | — | (48,617 | ) | (90,405 | ) | (53,922 | ) | ||||||||
Loss on extinguishment of debt and write-off of deferred financing costs | — | — | (513,723 | ) | — | ||||||||||
Net charges | $ | (28,542 | ) | $ | (56,595 | ) | $ | (679,037 | ) | $ | (66,900 | ) | |||
Capital Expenditures | $ | 72,185 | $ | — | $ | 98,234 | $ | — |
September 30, 2017 | December 31, 2016 | ||||||
Due from: | |||||||
Altice US Finance S.A. (a) | $ | 12,951 | $ | 12,951 | |||
Newsday (b) | 4,177 | 6,114 | |||||
Altice Management Americas (b) | 615 | 3,117 | |||||
i24NEWS (b) | 3,373 | — | |||||
Other Altice N.V. subsidiaries (b) | 37 | — | |||||
$ | 21,153 | $ | 22,182 | ||||
Due to: | |||||||
CVC 3BV (c) | — | 71,655 | |||||
Neptune Holdings US LP (c) | — | 7,962 | |||||
Altice Management International (d) | — | 44,121 | |||||
ATS (b)(e) | 22,541 | — | |||||
Newsday (b) | 103 | 275 | |||||
Other Altice N.V. subsidiaries (f) | 6,358 | 3,350 | |||||
$ | 29,002 | $ | 127,363 |
Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | ||||||||||||||||||||||
Cablevision | Cequel | Total | Cablevision (a) | Cequel | Total | ||||||||||||||||||
Operating income (loss) | $ | 11,185 | $ | 123,679 | $ | 134,864 | $ | 39,947 | $ | 102,832 | $ | 142,779 | |||||||||||
Share-based compensation | 11,555 | 3,450 | 15,005 | 1,091 | 579 | 1,670 | |||||||||||||||||
Restructuring and other expense | 35,364 | 18,084 | 53,448 | 45,176 | 2,640 | 47,816 | |||||||||||||||||
Depreciation and amortization (including impairments) | 656,102 | 167,163 | 823,265 | 481,497 | 189,432 | 670,929 | |||||||||||||||||
Adjusted EBITDA | $ | 714,206 | $ | 312,376 | $ | 1,026,582 | $ | 567,711 | $ | 295,483 | $ | 863,194 |
Nine months ended September 30, 2017 | Nine months ended September 30, 2016 | ||||||||||||||||||||||
Cablevision | Cequel | Total | Cablevision (a) | Cequel | Total | ||||||||||||||||||
Operating income (loss) | $ | 244,667 | $ | 395,213 | $ | 639,880 | $ | (32,133 | ) | $ | 274,575 | $ | 242,442 | ||||||||||
Share-based compensation | 28,597 | 12,335 | 40,932 | 1,091 | 579 | 1,670 | |||||||||||||||||
Restructuring and other expense | 105,182 | 37,583 | 142,765 | 143,891 | 11,195 | 155,086 | |||||||||||||||||
Depreciation and amortization (including impairments) | 1,641,477 | 497,299 | 2,138,776 | 526,057 | 559,872 | 1,085,929 | |||||||||||||||||
Adjusted EBITDA | $ | 2,019,923 | $ | 942,430 | $ | 2,962,353 | $ | 638,906 | $ | 846,221 | $ | 1,485,127 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Operating income for reportable segments | $ | 134,864 | $ | 142,779 | $ | 639,880 | $ | 242,442 | |||||||
Items excluded from operating income: | |||||||||||||||
Interest expense | (379,064 | ) | (446,242 | ) | (1,232,730 | ) | (1,015,866 | ) | |||||||
Interest income | 961 | 404 | 1,373 | 12,787 | |||||||||||
Gain (loss) on investments, net | (18,900 | ) | 24,833 | 169,888 | 83,467 | ||||||||||
Gain (loss) on derivative contracts, net | (16,763 | ) | 773 | (154,270 | ) | (26,572 | ) | ||||||||
Gain (loss) on interest rate swap contracts | 1,051 | (15,861 | ) | 12,539 | 24,380 | ||||||||||
Loss on extinguishment of debt and write-off of deferred financing costs | (38,858 | ) | — | (600,240 | ) | (19,948 | ) | ||||||||
Other income (expense), net | (65 | ) | 2,531 | 832 | 2,548 | ||||||||||
Loss before income taxes | $ | (316,774 | ) | $ | (290,783 | ) | $ | (1,162,728 | ) | $ | (696,762 | ) |
Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | ||||||||||||||||||||||||||
Cablevision | Cequel | Eliminations | Total | Cablevision (a) | Cequel | Total | |||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||
Pay TV | $ | 782,214 | $ | 272,178 | $ | — | $ | 1,054,392 | $ | 772,886 | $ | 279,109 | $ | 1,051,995 | |||||||||||||
Broadband | 404,153 | 241,941 | — | 646,094 | 366,166 | 212,439 | 578,605 | ||||||||||||||||||||
Telephony | 172,904 | 31,849 | — | 204,753 | 178,000 | 38,186 | 216,186 | ||||||||||||||||||||
Business services and wholesale | 230,274 | 94,486 | — | 324,760 | 220,352 | 89,014 | 309,366 | ||||||||||||||||||||
Advertising | 67,563 | 17,456 | (480 | ) | 84,539 | 67,815 | 20,944 | 88,759 | |||||||||||||||||||
Other | 7,211 | 5,426 | — | 12,637 | 9,480 | 5,830 | 15,310 | ||||||||||||||||||||
Total Revenue | $ | 1,664,319 | $ | 663,336 | $ | (480 | ) | $ | 2,327,175 | $ | 1,614,699 | $ | 645,522 | $ | 2,260,221 |
Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | ||||||||||||||||||||||||||
Cablevision (a) | Cequel | Eliminations | Total | Cablevision (a) | Cequel | Total | |||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||
Pay TV | $ | 2,356,230 | $ | 829,380 | $ | — | $ | 3,185,610 | $ | 859,932 | $ | 840,354 | $ | 1,700,286 | |||||||||||||
Broadband | 1,177,731 | 709,548 | — | 1,887,279 | 406,057 | 613,012 | 1,019,069 | ||||||||||||||||||||
Telephony | 524,696 | 99,381 | — | 624,077 | 198,282 | 116,855 | 315,137 | ||||||||||||||||||||
Business services and wholesale | 690,168 | 278,123 | — | 968,291 | 244,685 | 260,278 | 504,963 | ||||||||||||||||||||
Advertising | 203,351 | 54,384 | (480 | ) | 257,255 | 75,458 | 63,476 | 138,934 | |||||||||||||||||||
Other | 21,366 | 17,314 | — | 38,680 | 14,145 | 18,777 | 32,922 | ||||||||||||||||||||
Total Revenue | $ | 4,973,542 | $ | 1,988,130 | $ | (480 | ) | $ | 6,961,192 | $ | 1,798,559 | $ | 1,912,752 | $ | 3,711,311 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Cablevision | $ | 228,594 | $ | 150,815 | $ | 550,231 | $ | 150,965 | |||||||
Cequel | 75,042 | 97,341 | 213,067 | 226,761 | |||||||||||
$ | 303,636 | $ | 248,156 | $ | 763,298 | $ | 377,726 |
Three Months Ended September 30, | Favorable (Unfavorable) | Nine Months Ended September 30, | Favorable (Unfavorable) | ||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||||
Broadband | $ | 981,842 | $ | 989,410 | $ | (7,568) | $ | 2,970,039 | $ | 2,952,136 | $ | 17,903 | |||||||||||||||||||||||
Video | 816,001 | 877,422 | (61,421) | 2,499,437 | 2,675,861 | (176,424) | |||||||||||||||||||||||||||||
Telephony | 83,097 | 99,943 | (16,846) | 252,952 | 310,298 | (57,346) | |||||||||||||||||||||||||||||
Residential revenue | 1,880,940 | 1,966,775 | (85,835) | 5,722,428 | 5,938,295 | (215,867) | |||||||||||||||||||||||||||||
Business services and wholesale revenue | 366,554 | 440,813 | (74,259) | 1,105,579 | 1,180,039 | (74,460) | |||||||||||||||||||||||||||||
News and advertising | 120,522 | 143,625 | (23,103) | 368,447 | 380,462 | (12,015) | |||||||||||||||||||||||||||||
Mobile | 22,837 | 20,456 | 2,381 | 73,312 | 60,355 | 12,957 | |||||||||||||||||||||||||||||
Other | 2,699 | 3,213 | (514) | 8,697 | 10,560 | (1,863) | |||||||||||||||||||||||||||||
Total revenue | 2,393,552 | 2,574,882 | (181,330) | 7,278,463 | 7,569,711 | (291,248) | |||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Programming and other direct costs | 782,121 | 843,909 | 61,788 | 2,429,925 | 2,545,645 | 115,720 | |||||||||||||||||||||||||||||
Other operating expenses | 694,390 | 590,519 | (103,871) | 2,009,760 | 1,760,132 | (249,628) | |||||||||||||||||||||||||||||
Restructuring and other expense | 4,007 | 1,885 | (2,122) | 10,058 | 10,958 | 900 | |||||||||||||||||||||||||||||
Depreciation and amortization (including impairments) | 445,769 | 447,958 | 2,189 | 1,327,243 | 1,327,142 | (101) | |||||||||||||||||||||||||||||
Operating income | 467,265 | 690,611 | (223,346) | 1,501,477 | 1,925,834 | (424,357) | |||||||||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||||||||||||||
Interest expense, net | (340,989) | (319,001) | (21,988) | (954,564) | (954,684) | 120 | |||||||||||||||||||||||||||||
Gain (loss) on investments | (425,686) | (46,821) | (378,865) | (902,060) | 151,651 | (1,053,711) | |||||||||||||||||||||||||||||
Gain (loss) on derivative contracts, net | 323,668 | 43,385 | 280,283 | 643,856 | (109,020) | 752,876 | |||||||||||||||||||||||||||||
Gain on interest rate swap contracts, net | 105,945 | 5,521 | 100,424 | 268,960 | 59,600 | 209,360 | |||||||||||||||||||||||||||||
Loss on extinguishment of debt and write-off of deferred financing costs | — | — | — | — | (51,712) | 51,712 | |||||||||||||||||||||||||||||
Other income, net | 3,245 | 2,280 | 965 | 8,196 | 7,606 | 590 | |||||||||||||||||||||||||||||
Income before income taxes | 133,448 | 375,975 | (242,527) | 565,865 | 1,029,275 | (463,410) | |||||||||||||||||||||||||||||
Income tax expense | (35,827) | (105,226) | 69,399 | (152,563) | (279,053) | 126,490 | |||||||||||||||||||||||||||||
Net income | 97,621 | 270,749 | (173,128) | 413,302 | 750,222 | (336,920) | |||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | (12,670) | (3,896) | (8,774) | (25,626) | (11,573) | (14,053) | |||||||||||||||||||||||||||||
Net income attributable to Altice USA, Inc. stockholders | $ | 84,951 | $ | 266,853 | $ | (181,902) | $ | 387,676 | $ | 738,649 | $ | (350,973) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2016 | |||||||||||||||
Historical | Historical | Pro Forma | Historical | ||||||||||||||||
Revenue: | |||||||||||||||||||
Residential: | |||||||||||||||||||
Pay TV | $ | 1,054,392 | $ | 1,051,995 | $ | 3,185,610 | $ | 3,168,292 | $ | 1,700,286 | |||||||||
Broadband | 646,094 | 578,605 | 1,887,279 | 1,692,079 | 1,019,069 | ||||||||||||||
Telephony | 204,753 | 216,186 | 624,077 | 657,279 | 315,137 | ||||||||||||||
Business services and wholesale | 324,760 | 309,366 | 968,291 | 916,065 | 504,963 | ||||||||||||||
Advertising | 84,539 | 88,759 | 257,255 | 258,661 | 138,934 | ||||||||||||||
Other | 12,637 | 15,310 | 38,680 | 156,540 | 32,922 | ||||||||||||||
Total revenue | 2,327,175 | 2,260,221 | 6,961,192 | 6,848,916 | 3,711,311 | ||||||||||||||
Operating expenses: | |||||||||||||||||||
Programming and other direct costs | 755,101 | 738,390 | 2,272,147 | 2,266,365 | 1,177,808 | ||||||||||||||
Other operating expenses | 560,497 | 660,307 | 1,767,624 | 2,187,015 | 1,050,046 | ||||||||||||||
Restructuring and other expense | 53,448 | 47,816 | 142,765 | 162,491 | 155,086 | ||||||||||||||
Depreciation and amortization | 823,265 | 670,929 | 2,138,776 | 1,918,678 | 1,085,929 | ||||||||||||||
Operating income | 134,864 | 142,779 | 639,880 | 314,367 | 242,442 | ||||||||||||||
Other income (expense): | |||||||||||||||||||
Interest expense, net | (378,103 | ) | (445,838 | ) | (1,231,357 | ) | (1,324,832 | ) | (1,003,079 | ) | |||||||||
Gain (loss) on investments, net | (18,900 | ) | 24,833 | 169,888 | 213,457 | 83,467 | |||||||||||||
Gain (loss) on derivative contracts, net | (16,763 | ) | 773 | (154,270 | ) | (62,855 | ) | (26,572 | ) | ||||||||||
Gain (loss) on interest rate swap contracts | 1,051 | (15,861 | ) | 12,539 | 24,380 | 24,380 | |||||||||||||
Loss on extinguishment of debt and write-off of deferred financing costs | (38,858 | ) | — | (600,240 | ) | (19,948 | ) | (19,948 | ) | ||||||||||
Other income (loss), net | (65 | ) | 2,531 | 832 | 7,392 | 2,548 | |||||||||||||
Loss before income taxes | (316,774 | ) | (290,783 | ) | (1,162,728 | ) | (848,039 | ) | (696,762 | ) | |||||||||
Income tax benefit | 134,688 | 118,230 | 429,664 | 320,188 | 101,332 | ||||||||||||||
Net loss | (182,086 | ) | (172,553 | ) | (733,064 | ) | (527,851 | ) | (595,430 | ) | |||||||||
Net loss (income) attributable to noncontrolling interests | (135 | ) | (256 | ) | (737 | ) | 108 | 108 | |||||||||||
Net loss attributable to Altice USA, Inc. stockholders | $ | (182,221 | ) | $ | (172,809 | ) | $ | (733,801 | ) | $ | (527,743 | ) | $ | (595,322 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net income | $ | 97,621 | $ | 270,749 | $ | 413,302 | $ | 750,222 | |||||||||||||||
Income tax expense | 35,827 | 105,226 | 152,563 | 279,053 | |||||||||||||||||||
Other income, net | (3,245) | (2,280) | (8,196) | (7,606) | |||||||||||||||||||
Gain on interest rate swap contracts, net | (105,945) | (5,521) | (268,960) | (59,600) | |||||||||||||||||||
Loss (gain) on derivative contracts, net | (323,668) | (43,385) | (643,856) | 109,020 | |||||||||||||||||||
Loss (gain) on investments | 425,686 | 46,821 | 902,060 | (151,651) | |||||||||||||||||||
Loss on extinguishment of debt and write-off of deferred financing costs | — | — | — | 51,712 | |||||||||||||||||||
Interest expense, net | 340,989 | 319,001 | 954,564 | 954,684 | |||||||||||||||||||
Depreciation and amortization (including impairments) | 445,769 | 447,958 | 1,327,243 | 1,327,142 | |||||||||||||||||||
Restructuring and other expense | 4,007 | 1,885 | 10,058 | 10,958 | |||||||||||||||||||
Share-based compensation | 37,349 | 24,350 | 114,410 | 80,277 | |||||||||||||||||||
Adjusted EBITDA | 954,390 | 1,164,804 | 2,953,188 | 3,344,211 | |||||||||||||||||||
Less: Capital expenditures (cash) | 493,559 | 309,172 | 1,371,056 | 845,067 | |||||||||||||||||||
Operating Free Cash Flow | $ | 460,831 | $ | 855,632 | $ | 1,582,132 | $ | 2,499,144 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net cash flows from operating activities | $ | 629,162 | $ | 698,314 | $ | 1,905,716 | $ | 2,177,479 | |||||||||||||||
Less: Capital expenditures (cash) | 493,559 | 309,172 | 1,371,056 | 845,067 | |||||||||||||||||||
Free Cash Flow | $ | 135,603 | $ | 389,142 | $ | 534,660 | $ | 1,332,412 |
Altice USA | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2016 | |||||||||||||||
Historical | Historical | Pro Forma | Historical | ||||||||||||||||
Net loss | $ | (182,086 | ) | $ | (172,553 | ) | $ | (733,064 | ) | $ | (527,851 | ) | $ | (595,430 | ) | ||||
Income tax benefit | (134,688 | ) | (118,230 | ) | (429,664 | ) | (320,188 | ) | (101,332 | ) | |||||||||
Other expense (income), net (a) | 65 | (2,531 | ) | (832 | ) | (7,392 | ) | (2,548 | ) | ||||||||||
Loss (gain) on interest rate swap contracts | (1,051 | ) | 15,861 | (12,539 | ) | (24,380 | ) | (24,380 | ) | ||||||||||
Loss (gain) on derivative contracts, net (b) | 16,763 | (773 | ) | 154,270 | 62,855 | 26,572 | |||||||||||||
Loss (gain) on investments, net | 18,900 | (24,833 | ) | (169,888 | ) | (213,457 | ) | (83,467 | ) | ||||||||||
Loss on extinguishment of debt and write-off of deferred financing costs | 38,858 | — | 600,240 | 19,948 | 19,948 | ||||||||||||||
Interest expense, net | 378,103 | 445,838 | 1,231,357 | 1,324,832 | 1,003,079 | ||||||||||||||
Depreciation and amortization | 823,265 | 670,929 | 2,138,776 | 1,918,678 | 1,085,929 | ||||||||||||||
Restructuring and other expense | 53,448 | 47,816 | 142,765 | 162,491 | 155,086 | ||||||||||||||
Share-based compensation | 15,005 | 1,670 | 40,932 | 26,901 | 1,670 | ||||||||||||||
Adjusted EBITDA | $ | 1,026,582 | $ | 863,194 | $ | 2,962,353 | $ | 2,422,437 | $ | 1,485,127 |
September 30, 2022 | June 30, 2022 | September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
September 30, 2017 | June 30, 2017 | September 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||
Cablevision | Cequel | Total | Cablevision | Cequel | Total | Cablevision | Cequel | Total | (in thousands) | |||||||||||||||||||||||||||||||||||||
(in thousands, except per customer amounts) | ||||||||||||||||||||||||||||||||||||||||||||||
Homes passed (a) | 5,134 | 3,443 | 8,577 | 5,140 | 3,430 | 8,570 | 5,105 | 3,389 | 8,494 | |||||||||||||||||||||||||||||||||||||
Total passings (a) | Total passings (a) | 9,414.9 | 9,363.1 | 9,212.5 | ||||||||||||||||||||||||||||||||||||||||||
Total customer relationships (b)(c) | 3,149 | 1,749 | 4,898 | 3,151 | 1,753 | 4,904 | 3,135 | 1,736 | 4,871 | Total customer relationships (b)(c) | 4,897.2 | 4,947.3 | 5,027.6 | |||||||||||||||||||||||||||||||||
Residential | 2,887 | 1,642 | 4,529 | 2,889 | 1,648 | 4,537 | 2,873 | 1,636 | 4,510 | Residential | 4,514.7 | 4,564.2 | 4,646.0 | |||||||||||||||||||||||||||||||||
SMB | 262 | 107 | 369 | 262 | 106 | 367 | 261 | 100 | 361 | SMB | 382.5 | 383.1 | 381.6 | |||||||||||||||||||||||||||||||||
Residential customers: | Residential customers: | |||||||||||||||||||||||||||||||||||||||||||||
Pay TV | 2,382 | 1,048 | 3,430 | 2,401 | 1,062 | 3,463 | 2,443 | 1,113 | 3,556 | |||||||||||||||||||||||||||||||||||||
Broadband | 2,653 | 1,368 | 4,021 | 2,646 | 1,358 | 4,004 | 2,603 | 1,324 | 3,927 | Broadband | 4,290.6 | 4,333.6 | 4,388.1 | |||||||||||||||||||||||||||||||||
Video | Video | 2,491.8 | 2,574.2 | 2,803.0 | ||||||||||||||||||||||||||||||||||||||||||
Telephony | 1,959 | 588 | 2,547 | 1,954 | 590 | 2,544 | 1,969 | 594 | 2,563 | Telephony | 1,818.9 | 1,886.9 | 2,057.1 | |||||||||||||||||||||||||||||||||
Residential triple product customer penetration (d): | 64.3 | % | 25.4 | % | 50.2 | % | 64.3 | % | 25.3 | % | 50.1 | % | 65.3 | % | 25.6 | % | 50.9 | % | ||||||||||||||||||||||||||||
Penetration of homes passed (e): | 61.3 | % | 50.8 | % | 57.1 | % | 61.3 | % | 51.1 | % | 57.2 | % | 61.4 | % | 51.2 | % | 57.3 | % | ||||||||||||||||||||||||||||
ARPU(f) | $ | 156.88 | $ | 110.64 | $ | 140.10 | $ | 156.00 | $ | 110.01 | $ | 139.25 | $ | 152.55 | $ | 108.19 | $ | 136.50 | ||||||||||||||||||||||||||||
Penetration of total passings (d) | Penetration of total passings (d) | 52.0 | % | 52.8 | % | 54.6 | % | |||||||||||||||||||||||||||||||||||||||
ARPU (e) | ARPU (e) | $ | 138.12 | $ | 140.13 | $ | 140.73 | |||||||||||||||||||||||||||||||||||||||
FTTH total passings (f) | FTTH total passings (f) | 1,908.2 | 1,587.1 | 1,026.6 | ||||||||||||||||||||||||||||||||||||||||||
FTTH customer relationships (g)(h) | FTTH customer relationships (g)(h) | 135.3 | 104.4 | 58.9 | ||||||||||||||||||||||||||||||||||||||||||
FTTH Residential | FTTH Residential | 134.2 | 103.7 | 58.7 | ||||||||||||||||||||||||||||||||||||||||||
FTTH SMB | FTTH SMB | 1.2 | 0.7 | 0.2 | ||||||||||||||||||||||||||||||||||||||||||
Penetration of FTTH total passings (i) | Penetration of FTTH total passings (i) | 7.1 | % | 6.6 | % | 5.7 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
(in thousands) | |||||||||||
Total customer relationships | (6.1 | ) | 1.6 | 6.3 | 43.5 | ||||||
Residential | (7.9 | ) | (0.7 | ) | 0.8 | 34.2 | |||||
SMB | 1.8 | 2.3 | 5.5 | 9.3 | |||||||
Residential customers: | |||||||||||
Pay TV | (32.5 | ) | (40.1 | ) | (104.4 | ) | (84.5 | ) | |||
Broadband | 16.5 | 17.5 | 58.4 | 88.7 | |||||||
Telephony | 3.4 | (27.1 | ) | (11.8 | ) | (25.7 | ) |
Historical | |||||||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||||||||
Cablevision | Cequel | Eliminations | Total | Cablevision | Cequel | Total | |||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||
Pay TV | $ | 782,214 | $ | 272,178 | $ | — | $ | 1,054,392 | $ | 772,886 | $ | 279,109 | $ | 1,051,995 | |||||||||||||
Broadband | 404,153 | 241,941 | — | 646,094 | 366,166 | 212,439 | 578,605 | ||||||||||||||||||||
Telephony | 172,904 | 31,849 | — | 204,753 | 178,000 | 38,186 | 216,186 | ||||||||||||||||||||
Business services and wholesale | 230,274 | 94,486 | — | 324,760 | 220,352 | 89,014 | 309,366 | ||||||||||||||||||||
Advertising | 67,563 | 17,456 | (480 | ) | 84,539 | 67,815 | 20,944 | 88,759 | |||||||||||||||||||
Other | 7,211 | 5,426 | — | 12,637 | 9,480 | 5,830 | 15,310 | ||||||||||||||||||||
Total revenue | 1,664,319 | 663,336 | (480 | ) | 2,327,175 | 1,614,699 | 645,522 | 2,260,221 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||
Programming and other direct costs | 570,995 | 184,283 | (177 | ) | 755,101 | 554,370 | 184,020 | 738,390 | |||||||||||||||||||
Other operating expenses | 390,673 | 170,127 | (303 | ) | 560,497 | 493,709 | 166,598 | 660,307 | |||||||||||||||||||
Restructuring and other expense | 35,364 | 18,084 | — | 53,448 | 45,176 | 2,640 | 47,816 | ||||||||||||||||||||
Depreciation and amortization | 656,102 | 167,163 | — | 823,265 | 481,497 | 189,432 | 670,929 | ||||||||||||||||||||
Operating income | $ | 11,185 | $ | 123,679 | $ | — | $ | 134,864 | $ | 39,947 | $ | 102,832 | $ | 142,779 |
Historical | |||||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||||||||
Cablevision | Cequel | Eliminations | Total | Cablevision | Cequel | Total | |||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||
Pay TV | $ | 2,356,230 | $ | 829,380 | $ | — | $ | 3,185,610 | $ | 859,932 | $ | 840,354 | $ | 1,700,286 | |||||||||||||
Broadband | 1,177,731 | 709,548 | — | 1,887,279 | 406,057 | 613,012 | 1,019,069 | ||||||||||||||||||||
Telephony | 524,696 | 99,381 | — | 624,077 | 198,282 | 116,855 | 315,137 | ||||||||||||||||||||
Business services and wholesale | 690,168 | 278,123 | — | 968,291 | 244,685 | 260,278 | 504,963 | ||||||||||||||||||||
Advertising | 203,351 | 54,384 | (480 | ) | 257,255 | 75,458 | 63,476 | 138,934 | |||||||||||||||||||
Other | 21,366 | 17,314 | — | 38,680 | 14,145 | 18,777 | 32,922 | ||||||||||||||||||||
Total revenue | 4,973,542 | 1,988,130 | (480 | ) | 6,961,192 | 1,798,559 | 1,912,752 | 3,711,311 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||
Programming and other direct costs | 1,710,245 | 562,079 | (177 | ) | 2,272,147 | 616,860 | 560,948 | 1,177,808 | |||||||||||||||||||
Other operating expenses | 1,271,971 | 495,956 | (303 | ) | 1,767,624 | 543,884 | 506,162 | 1,050,046 | |||||||||||||||||||
Restructuring and other expense | 105,182 | 37,583 | — | 142,765 | 143,891 | 11,195 | 155,086 | ||||||||||||||||||||
Depreciation and amortization | 1,641,477 | 497,299 | — | 2,138,776 | 526,057 | 559,872 | 1,085,929 | ||||||||||||||||||||
Operating income (loss) | $ | 244,667 | $ | 395,213 | $ | — | $ | 639,880 | $ | (32,133 | ) | $ | 274,575 | $ | 242,442 |
Pro Forma | |||||||||||
Nine Months Ended September 30, 2016 | |||||||||||
Cablevision | Cequel | Total | |||||||||
Revenue: | |||||||||||
Residential: | |||||||||||
Pay TV | $ | 2,327,938 | $ | 840,354 | $ | 3,168,292 | |||||
Broadband | 1,079,067 | 613,012 | 1,692,079 | ||||||||
Telephony | 540,424 | 116,855 | 657,279 | ||||||||
Business services and wholesale | 655,787 | 260,278 | 916,065 | ||||||||
Advertising | 195,185 | 63,476 | 258,661 | ||||||||
Other | 137,763 | 18,777 | 156,540 | ||||||||
Total revenue | 4,936,164 | 1,912,752 | 6,848,916 | ||||||||
Operating expenses: | |||||||||||
Programming and other direct costs | 1,705,417 | 560,948 | 2,266,365 | ||||||||
Other operating expenses | 1,680,853 | 506,162 | 2,187,015 | ||||||||
Restructuring and other expense | 151,296 | 11,195 | 162,491 | ||||||||
Depreciation and amortization | 1,358,806 | 559,872 | 1,918,678 | ||||||||
Operating income | $ | 39,792 | $ | 274,575 | $ | 314,367 |
Cablevision segment: | |||
Increase in programming costs due primarily to contractual rate increases and an increase in pay-per-view costs primarily from an event in August 2017, partially offset by lower pay television customers and lower video-on-demand costs | $ | 16,517 | |
Increase in costs of digital media advertising spots for resale | 5,251 | ||
Decrease in call completion and transport costs primarily due to lower level of activity | (3,205 | ) | |
Decrease in costs primarily related to the sale of Newsday in July 2016 | (1,731 | ) | |
Other net decreases | (207 | ) | |
16,625 | |||
Cequel segment: | |||
Increase in programming costs due primarily to contractual rate increases and an increase in pay-per-view costs primarily from an event in August 2017, partially offset by lower pay television customers and lower video-on-demand costs | 2,057 | ||
Decrease in franchise costs due to lower pay television customers | (1,113 | ) | |
Other net decreases | (681 | ) | |
263 | |||
Inter-segment eliminations | (177 | ) | |
$ | 16,711 |
Cablevision segment: | |||
Increase in programming costs due primarily to contractual rate increases and an increase in pay-per-view costs primarily from an event in August 2017, partially offset by lower pay television customers and lower video-on-demand costs | $ | 46,340 | |
Increase in costs of digital media advertising spots for resale | 10,761 | ||
Decrease in costs primarily related to the sale of Newsday in July 2016 | (33,889 | ) | |
Decrease in call completion and transport costs primarily due to lower level of activity | (15,297 | ) | |
Decrease in cost of sales (which includes the bulk sale of handset inventory of $5,445 during the first quarter of 2016) | (4,543 | ) | |
Other net increases | 1,456 | ||
4,828 | |||
Cequel segment: | |||
Increase in programming costs due primarily to contractual rate increases and an increase in pay-per-view costs primary from an event in August 2017, partially offset by lower pay television customers and lower video-on-demand costs | 7,195 | ||
Decrease in franchise costs due to lower pay television customers | (2,976 | ) | |
Decrease in media cost of sales | (1,156 | ) | |
Net decrease in call completion and interconnection costs due to lower level of activity | (1,065 | ) | |
Other net decreases | (867 | ) | |
1,131 | |||
Inter-segment eliminations | (177 | ) | |
$ | 5,782 |
Three Months | Nine Months | ||||||||||
Decrease in programming costs primarily due to lower video customers, partially offset by net contractual rate increases | $ | (31,010) | $ | (69,015) | |||||||
Decrease in taxes and surcharges | (14,131) | (20,347) | |||||||||
Decrease in digital media and linear advertising spots for resale costs | (9,989) | (13,210) | |||||||||
Decrease in franchise fee costs due to lower video revenue | (3,298) | (10,159) | |||||||||
Other net decreases | (3,360) | (2,989) | |||||||||
$ | (61,788) | $ | (115,720) |
Cablevision segment: | |||
Decrease primarily in employee related costs related to the elimination of certain positions (including the impact of the decline in headcount resulting from the ATS agreement), and lower net benefits, partially offset by merit increases | $ | (126,269 | ) |
Decrease in rent and insurance (including the impact of the decline in headcount resulting from the ATS agreement) | (9,693 | ) | |
Decrease in repairs and maintenance costs relating to our operations | (8,382 | ) | |
Decrease in product development costs and product consulting fees | (6,368 | ) | |
Decrease in costs primarily related to the sale of Newsday in July 2016 | (3,788 | ) | |
Increase in contractor costs due primarily to the execution of the ATS agreement | 43,298 | ||
Increase in share-based compensation and long-term incentive plan awards expense | 11,298 | ||
Other net decreases | (3,132 | ) | |
(103,036 | ) | ||
Cequel segment: | |||
Decrease primarily in salaries and benefits related to the elimination of certain positions in connection with the initiatives to simplify the Company's organizational structure, partially offset by a decrease in capitalizable activity | (9,891 | ) | |
Decrease in insurance costs | (1,824 | ) | |
Decrease in contract labor costs | (295 | ) | |
Increase in consulting and professional fees | 6,803 | ||
Increase in share-based compensation and long-term incentive plan awards expense | 4,174 | ||
Increase in sales and marketing costs | 3,761 | ||
Other net increases | 801 | ||
3,529 | |||
Inter-segment eliminations | (303 | ) | |
$ | (99,810 | ) |
Cablevision segment: | |||
Decrease primarily in employee related costs related to the elimination of certain positions (including the impact of the decline in headcount resulting from the ATS agreement), and lower net benefits, partially offset by merit increases | $ | (336,241 | ) |
Decrease in costs primarily related to the sale of Newsday in July 2016 | (95,262 | ) | |
Decrease in repairs and maintenance costs relating to our operations | (28,649 | ) | |
Decrease in product development costs and product consulting fees | (25,365 | ) | |
Increase in capitalization of certain costs primarily due to a change to the asset-based approach for estimating capitalization | (16,471 | ) | |
Decrease in rent and insurance (including the impact of the decline in headcount resulting from the ATS agreement) | (15,438 | ) | |
Increase in contractor costs due primarily to the execution of the ATS agreement | 85,443 | ||
Increase in sales and marketing costs | 21,559 | ||
Increase in fees for certain executive services provided by our parent entity (nine months in 2017 compared to approximately six months in 2016) | 9,444 | ||
Other net decreases | (7,902 | ) | |
(408,882 | ) | ||
Cequel segment: | |||
Decrease primarily in salaries and benefits related to the elimination of certain positions in connection with the initiatives to simplify the Company's organizational structure, partially offset by a decrease in capitalizable activity | (39,191 | ) | |
Decrease in insurance costs | (5,433 | ) | |
Decrease in contract labor costs | (3,260 | ) | |
Increase in consulting and professional fees | 15,530 | ||
Increase in share-based compensation and long-term incentive plan awards expense | 14,930 | ||
Increase in sales and marketing costs | 5,536 | ||
Other net increases | 1,682 | ||
(10,206 | ) | ||
Inter-segment eliminations | (303 | ) | |
$ | (419,391 | ) |
Three Months | Nine Months | ||||||||||
Net increase in labor costs and benefits, partially offset by an increase in capitalizable activity | $ | 35,402 | $ | 101,249 | |||||||
Increase in repairs and maintenance costs, net of capitalizable activity, including costs to rebrand our Suddenlink services to Optimum | 13,640 | 36,343 | |||||||||
Increase in marketing costs, primarily due to costs to rebrand our Suddenlink services to Optimum | 11,425 | 35,043 | |||||||||
Increase in share-based compensation costs | 12,999 | 34,133 | |||||||||
Increase in bad debt | 10,149 | 18,834 | |||||||||
Other net increases, net of capitalizable activity | 20,256 | 24,026 | |||||||||
$ | 103,871 | $ | 249,628 |
Three Months | Nine Months | ||||||
Ended September 30, 2017 | |||||||
Increase (decrease) due to changes in average debt balances and interest rates on our indebtedness and collateralized debt | $ | (73,710 | ) | $ | 222,971 | ||
Lower (higher) interest income | (557 | ) | 11,414 | ||||
Other net increases (decreases), primarily amortization of deferred financing costs and original issue discounts | 6,532 | (6,107 | ) | ||||
$ | (67,735 | ) | $ | 228,278 |
Decrease due to decline in average debt balances and interest rates on our indebtedness and collateralized debt | $ | (94,917 | ) |
Lower interest income | 867 | ||
Other net decreases, primarily amortization of deferred financing costs and original issue discounts | 575 | ||
$ | (93,475 | ) |
Three Months | Nine Months | ||||||||||||||||
Increase primarily due to an increase in interest rates, offset by a decrease in average debt balances | $ | 31,234 | $ | 17,868 | |||||||||||||
Capitalized interest related to FTTH network construction | (4,296) | (9,544) | |||||||||||||||
Higher interest income | (964) | (1,312) | |||||||||||||||
Other net decreases, primarily lower amortization of deferred financing costs and original issue discounts | (3,986) | (7,132) | |||||||||||||||
$ | 21,988 | $ | (120) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net cash flows from operating activities | $ | 629,162 | $ | 697,575 | $ | 1,905,716 | $ | 2,147,335 | |||||||||||||||
Less: Capital expenditures (cash) | 493,559 | 309,172 | 1,371,056 | 845,067 | |||||||||||||||||||
Free Cash Flow | $ | 135,603 | $ | 388,403 | $ | 534,660 | $ | 1,302,268 |
As of September 30, 2017 | |||||||||||||||||||
Cablevision | Cequel | Altice USA | Eliminations | Total | |||||||||||||||
Debt outstanding: | |||||||||||||||||||
Credit facility debt | $ | 4,123,792 | $ | 1,253,110 | $ | — | $ | — | $ | 5,376,902 | |||||||||
Senior guaranteed notes | 2,290,748 | — | — | — | 2,290,748 | ||||||||||||||
Senior secured notes | — | 2,569,559 | — | — | 2,569,559 | ||||||||||||||
Senior notes and debentures (a) | 8,230,325 | 2,762,543 | — | — | 10,992,868 | ||||||||||||||
Capital lease obligations | 14,388 | 1,845 | — | — | 16,233 | ||||||||||||||
Notes payable (includes $43,706 related to collateralized debt) | 76,442 | 3,083 | — | — | 79,525 | ||||||||||||||
Subtotal | 14,735,695 | 6,590,140 | — | — | 21,325,835 | ||||||||||||||
Notes payable to affiliates and related parties | — | — | — | — | — | ||||||||||||||
Collateralized indebtedness relating to stock monetizations (a) | 1,314,788 | — | — | — | 1,314,788 | ||||||||||||||
Total debt | $ | 16,050,483 | $ | 6,590,140 | $ | — | $ | — | $ | 22,640,623 | |||||||||
Interest expense: | |||||||||||||||||||
Credit facility debt, senior notes, capital leases and notes payable | $ | 779,265 | $ | 308,788 | $ | 4,888 | $ | (4,882 | ) | $ | 1,088,059 | ||||||||
Notes payable to affiliates and related parties | — | — | 90,405 | — | 90,405 | ||||||||||||||
Collateralized indebtedness and notes payable relating to stock monetizations (a) | 54,266 | — | — | — | 54,266 | ||||||||||||||
Total interest expense | $ | 833,531 | $ | 308,788 | $ | 95,293 | $ | (4,882 | ) | $ | 1,232,730 |
CSC Holdings Restricted Group | Lightpath | Other Unrestricted Entities | Altice USA/CSC Holdings | ||||||||||||||||||||
Debt outstanding: | |||||||||||||||||||||||
Credit facility debt | $ | 8,268,309 | $ | 576,378 | $ | — | $ | 8,844,687 | |||||||||||||||
Senior guaranteed notes | 7,637,721 | — | — | 7,637,721 | |||||||||||||||||||
Senior secured notes | — | 442,712 | — | 442,712 | |||||||||||||||||||
Senior notes | 6,913,974 | 407,836 | — | 7,321,810 | |||||||||||||||||||
Subtotal | 22,820,004 | 1,426,926 | — | 24,246,930 | |||||||||||||||||||
Finance lease obligations | 252,430 | — | — | 252,430 | |||||||||||||||||||
Notes payable and supply chain financing | 116,644 | — | — | 116,644 | |||||||||||||||||||
Subtotal | 23,189,078 | 1,426,926 | — | 24,616,004 | |||||||||||||||||||
Collateralized indebtedness relating to stock monetizations (a) | — | — | 1,736,294 | 1,736,294 | |||||||||||||||||||
Total debt | $ | 23,189,078 | $ | 1,426,926 | $ | 1,736,294 | $ | 26,352,298 | |||||||||||||||
Interest expense: | |||||||||||||||||||||||
Credit facility debt, senior notes, finance leases, notes payable and supply chain financing | $ | 843,244 | $ | 54,371 | $ | — | $ | 897,615 | |||||||||||||||
Collateralized indebtedness relating to stock monetizations (a) | — | — | 58,384 | 58,384 | |||||||||||||||||||
Total interest expense | $ | 843,244 | $ | 54,371 | $ | 58,384 | $ | 955,999 |
(a)This indebtedness is collateralized by shares |
Maturity Date | Interest Rate | Principal | Carrying Value (a) | ||||||||
Cablevision: | |||||||||||
CSC Holdings Revolving Credit Facility (b) | $20,000 on October 9, 2020, remaining balance on November 30, 2021 | 4.49% | $ | 1,175,000 | $ | 1,149,024 | |||||
CSC Holdings Term Credit Facility | July 17, 2025 | 3.48% | 2,992,500 | 2,974,768 | |||||||
Cequel: | |||||||||||
Revolving Credit Facility (c) | November 30, 2021 | — | — | — | |||||||
Term Credit Facility | July 28, 2025 | 3.49% | 1,261,838 | 1,253,110 | |||||||
$ | 5,429,338 | $ | 5,376,902 |
Cablevision (a) | Cequel | Total | |||||||||
2017 | $ | 217,983 | $ | 89,865 | $ | 307,848 | |||||
2018 | 2,607,892 | 379,744 | 2,987,636 | ||||||||
2019 | 1,468,595 | 377,393 | 1,845,988 | ||||||||
2020 | 1,393,295 | 1,427,053 | 2,820,348 | ||||||||
2021 | 4,494,253 | 1,560,775 | 6,055,028 | ||||||||
Thereafter | 12,189,577 | 5,259,730 | 17,449,307 | ||||||||
Total | $ | 22,371,595 | $ | 9,094,560 | $ | 31,466,155 |
CSC Holdings Restricted Group | Lightpath | Other Unrestricted Entities (a) | Altice USA/ CSC Holdings | ||||||||||||||||||||
2022 | $ | 337,790 | $ | 10,342 | $ | 8,541 | $ | 356,673 | |||||||||||||||
2023 | 1,335,747 | 80,621 | 1,776,378 | 3,192,746 | |||||||||||||||||||
2024 | 1,978,792 | 80,537 | — | 2,059,329 | |||||||||||||||||||
2025 | 3,924,559 | 80,087 | — | 4,004,646 | |||||||||||||||||||
2026 | 2,171,473 | 76,741 | — | 2,248,214 | |||||||||||||||||||
Thereafter | 20,207,982 | 1,532,022 | — | 21,740,004 | |||||||||||||||||||
Total | $ | 29,956,343 | $ | 1,860,350 | $ | 1,784,919 | $ | 33,601,612 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||
Customer premise equipment | $ | 75,857 | $ | 61,154 | $ | 237,707 | $ | 153,389 | |||||||||||||||||||||||||||
Network infrastructure | 301,251 | 153,528 | 848,140 | 430,811 | |||||||||||||||||||||||||||||||
Support and other | 70,616 | 63,701 | 168,780 | 171,595 | |||||||||||||||||||||||||||||||
Business Services | 45,835 | 30,789 | 116,429 | 89,272 | |||||||||||||||||||||||||||||||
Capital purchases (cash basis) | 493,559 | 309,172 | 1,371,056 | 845,067 | |||||||||||||||||||||||||||||||
Right-of-use assets acquired in exchange for finance lease obligations | 36,090 | 29,993 | 130,861 | 107,708 | |||||||||||||||||||||||||||||||
Notes payable issued to vendor for the purchase of equipment and other assets | 36,680 | 27,498 | 88,181 | 61,316 | |||||||||||||||||||||||||||||||
Change in accrued and unpaid purchases and other | 39,585 | (6,000) | 45,218 | 31,502 | |||||||||||||||||||||||||||||||
Capital purchases (accrual basis) | $ | 605,914 | $ | 360,663 | $ | 1,635,316 | $ | 1,045,593 |
Three Months Ended September 30, | |||||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||||
Cablevision | Cequel | Total | Cablevision | Cequel | Total | ||||||||||||||||||
Customer premise equipment | $ | 61,272 | $ | 26,552 | $ | 87,824 | $ | 38,236 | $ | 42,999 | $ | 81,235 | |||||||||||
Network infrastructure | 99,414 | 21,391 | 120,805 | 51,768 | 26,278 | 78,046 | |||||||||||||||||
Support and other | 35,255 | 17,810 | 53,065 | 39,257 | 15,227 | 54,484 | |||||||||||||||||
Business services | 32,653 | 9,289 | 41,942 | 21,554 | 12,837 | 34,391 | |||||||||||||||||
Capital purchases (cash basis) | $ | 228,594 | $ | 75,042 | $ | 303,636 | $ | 150,815 | $ | 97,341 | $ | 248,156 | |||||||||||
Capital purchases (including accrued not paid) (a) | $ | 199,662 | $ | 90,656 | $ | 290,318 | $ | 134,177 | $ | 82,550 | $ | 216,727 |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2017 | 2016 | Pro forma 2016 (a) | |||||||||||||||||||||||||||||||||
Cablevision | Cequel | Total | Cablevision | Cequel | Total | Cablevision | Cequel | Total | |||||||||||||||||||||||||||
Customer premise equipment | $ | 160,242 | $ | 78,885 | $ | 239,127 | $ | 38,276 | $ | 121,007 | $ | 159,283 | $ | 106,694 | $ | 121,007 | $ | 227,701 | |||||||||||||||||
Network infra-structure | 210,312 | 67,375 | 277,687 | 51,872 | 44,700 | 96,572 | 201,124 | 44,700 | 245,824 | ||||||||||||||||||||||||||
Support and other | 102,031 | 39,882 | 141,913 | 39,257 | 28,451 | 67,708 | 107,581 | 28,451 | 136,032 | ||||||||||||||||||||||||||
Business services | 77,646 | 26,925 | 104,571 | 21,560 | 32,603 | 54,163 | 65,697 | 32,603 | 98,300 | ||||||||||||||||||||||||||
Capital purchases (cash basis) | $ | 550,231 | $ | 213,067 | $ | 763,298 | $ | 150,965 | $ | 226,761 | $ | 377,726 | $ | 481,096 | $ | 226,761 | $ | 707,857 | |||||||||||||||||
Capital purchases (including accrued not paid) (b) | $ | 470,103 | $ | 211,230 | $ | 681,333 | $ | 144,425 | $ | 236,338 | $ | 380,763 | $ | 479,288 | $ | 236,338 | $ | 715,626 |
Number of shares (a) | 21,477,618 | ||
Collateralized indebtedness settled | $ | (617,151 | ) |
Derivative contracts settled | (37,838 | ) | |
(654,989 | ) | ||
Proceeds from new monetization contracts | 662,724 | ||
Net cash payment | $ | 7,735 |
Fair Value of Equity Derivative Contracts | |||
Fair value as of December 31, 2016, net liability position | $ | (2,202 | ) |
Fair value of new equity derivative contracts | 31,619 | ||
Change in fair value, net | (81,905 | ) | |
Fair value as of September 30, 2017, net liability position | $ | (52,488 | ) |
Fair Value of Equity Derivative Contracts | |||||
Fair value as of December 31, 2021, net liability position | $ | (161,942) | |||
Change in fair value, net | 643,856 | ||||
Fair value as of September 30, 2022, net asset position | $ | 481,914 |
Hedge Price | Cap Price (b) | |||||||||||
# of Shares Deliverable (a) | Maturity | per Share (a) | Low | High | ||||||||
5,337,750 | 2017 | $29.52 | $ | 35.42 | $ | 35.42 | ||||||
16,139,868 | 2018 | $30.84-$33.61 | $ | 37.00 | $ | 40.33 | ||||||
21,477,618 | 2021 | $29.25- $35.47 | $ | 43.88 | $ | 44.80 |
# of Shares Deliverable | Maturity | Hedge Price per Share (a) | Cap Price (b) | |||||||||||||||||
42,955,236 | 2023 | $40.95 | $49.55 |
Derivatives Not Designated as Hedging Instruments | Balance Sheet Location | Fair Value at September 30, 2022 | ||||||||||||
Asset Derivatives: | ||||||||||||||
Prepaid forward contracts | Derivative contracts | $ | 481,914 | |||||||||||
Interest rate swap contracts | Other assets, long-term | 188,970 | ||||||||||||
$ | 670,884 | |||||||||||||
DESCRIPTION | ||||||||
Transition Agreement, dated September 6, 2022, between Altice USA, Inc. and Dexter Goei. | ||||||||
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 September 30, | |||||||
104 | The cover page from this quarterly report on Form 10-Q formatted in Inline XBRL. |
ALTICE USA, INC. | ||||||||||||||
Date: | November 2, 2022 | /s/ Michael J. Grau | ||||||||||||
By: | ||||||||||||||
Michael J. Grau Chief Financial Officer |