Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2016 | Jun. 30, 2016 | |
Entity Information [Line Items] | ||
Entity Registrant Name | CHARTER COMMUNICATIONS, INC. /MO/ | |
Entity Central Index Key | 1,091,667 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-K | |
Document Period End Date | Dec. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | FY | |
Trading Symbol | CHTR | |
Entity Current Reporting Status | Yes | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Amendment Flag | false | |
Entity Public Float | $ 49.1 | |
Class A Common Stock [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 268,897,792 | |
Class B Common Stock [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 1,535 | $ 5 |
Accounts receivable, less allowance for doubtful accounts of $124 and $21, respectively | 1,432 | 279 |
Prepaid expenses and other current assets | 333 | 61 |
Total current assets | 3,300 | 345 |
RESTRICTED CASH AND CASH EQUIVALENTS | 0 | 22,264 |
INVESTMENT IN CABLE PROPERTIES: | ||
Property, plant and equipment, net of accumulated depreciation of $11,103 and $6,518, respectively | 32,963 | 8,345 |
Customer relationships, net | 14,608 | 856 |
Franchises | 67,316 | 6,006 |
Goodwill | 29,509 | 1,168 |
Total investment in cable properties, net | 144,396 | 16,375 |
OTHER NONCURRENT ASSETS | 1,371 | 332 |
Total assets | 149,067 | 39,316 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued liabilities | 7,544 | 1,972 |
Current portion of long-term debt | 2,028 | 0 |
Total current liabilities | 9,572 | 1,972 |
LONG-TERM DEBT | 59,719 | 35,723 |
DEFERRED INCOME TAXES | 26,665 | 1,590 |
OTHER LONG-TERM LIABILITIES | 2,745 | 77 |
Preferred stock; $.001 par value; 250 million shares authorized; no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 39,413 | 2,028 |
Retained earnings (accumulated deficit) | 733 | (2,061) |
Accumulated other comprehensive loss | (7) | (13) |
Total Charter shareholders' equity (deficit) | 40,139 | (46) |
Noncontrolling interests | 10,227 | 0 |
Total shareholders' equity (deficit) | 50,366 | (46) |
Total liabilities and shareholders' equity (deficit) | 149,067 | 39,316 |
Class A Common Stock [Member] | ||
Common stock | 0 | 0 |
Class B Common Stock [Member] | ||
Common stock | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEET (PAR
CONSOLIDATED BALANCE SHEET (PARENTHETICALS) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
CURRENT ASSETS: | ||
Accounts receivable, allowance for doubtful accounts | $ 124 | $ 21 |
INVESTMENT IN CABLE PROPERTIES: | ||
Property, plant and equipment, accumulated depreciation | $ 11,103 | $ 6,518 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Class A Common Stock [Member] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 900,000,000 | 900,000,000 |
Common stock, shares issued (in shares) | 268,897,792 | 112,438,828 |
Common stock, shares outstanding (in shares) | 268,897,792 | 112,438,828 |
Class B Common Stock [Member] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 1,000 | 25,000,000 |
Common stock, shares issued (in shares) | 1 | 0 |
Common stock, shares outstanding (in shares) | 1 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||||||||||
REVENUES | $ 10,275 | $ 10,037 | $ 6,161 | $ 2,530 | $ 2,512 | $ 2,450 | $ 2,430 | $ 2,362 | $ 29,003 | $ 9,754 | $ 9,108 |
COSTS AND EXPENSES: | |||||||||||
Operating costs and expenses (exclusive of items shown separately below) | 18,655 | 6,426 | 5,973 | ||||||||
Depreciation and amortization | 6,907 | 2,125 | 2,102 | ||||||||
Other operating expenses, net | 86 | 89 | 62 | ||||||||
Total costs and expenses | 25,648 | 8,640 | 8,137 | ||||||||
Income from operations | 1,439 | 924 | 690 | 302 | 323 | 273 | 269 | 249 | 3,355 | 1,114 | 971 |
OTHER EXPENSES: | |||||||||||
Interest expense, net | (2,499) | (1,306) | (911) | ||||||||
Loss on extinguishment of debt | (111) | (128) | 0 | ||||||||
Gain (loss) on financial instruments, net | 89 | (4) | (7) | ||||||||
Other expense, net | (14) | (7) | 0 | ||||||||
Total other expenses | (2,535) | (1,445) | (918) | ||||||||
Income (loss) before income taxes | 820 | (331) | 53 | ||||||||
Income tax benefit (expense) | 2,925 | 60 | (236) | ||||||||
Consolidated net income (loss) | 3,745 | (271) | (183) | ||||||||
Less: Net income attributable to noncontrolling interests | (223) | 0 | 0 | ||||||||
Net income (loss) attributable to Charter shareholders | $ 454 | $ 189 | $ 3,067 | $ (188) | $ (122) | $ 54 | $ (122) | $ (81) | $ 3,522 | $ (271) | $ (183) |
EARNINGS (LOSS) PER COMMON SHARE ATTRIBUTABLE TO CHARTER SHAREHOLDERS: | |||||||||||
Basic (in dollars per share) | $ 1.69 | $ 0.70 | $ 16.73 | $ (1.86) | $ (1.21) | $ 0.54 | $ (1.21) | $ (0.81) | $ 17.05 | $ (2.68) | $ (1.88) |
Diluted (in dollars per share) | $ 1.67 | $ 0.69 | $ 15.17 | $ (1.86) | $ (1.21) | $ 0.53 | $ (1.21) | $ (0.81) | $ 15.94 | $ (2.68) | $ (1.88) |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||||||
Basic (in shares) | 268,584,368 | 271,263,259 | 183,362,776 | 101,552,093 | 101,366,476 | 101,205,400 | 101,074,644 | 100,959,008 | 206,539,100 | 101,152,647 | 97,991,915 |
Diluted (in shares) | 272,624,270 | 275,373,202 | 205,214,266 | 101,552,093 | 101,366,476 | 102,481,924 | 101,074,644 | 100,959,008 | 234,791,439 | 101,152,647 | 97,991,915 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Consolidated net income (loss) | $ 3,745 | $ (271) | $ (183) |
Net impact of interest rate derivative instruments, net of tax | 8 | 9 | 19 |
Foreign currency translation adjustment | (2) | 0 | 0 |
Consolidated comprehensive income (loss) | 3,751 | (262) | (164) |
Less: Comprehensive income attributable to noncontrolling interests | (223) | 0 | 0 |
Comprehensive income (loss) attributable to Charter shareholders | $ 3,528 | $ (262) | $ (164) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Millions | Total | Common Stock [Member]Class A Common Stock [Member] | Common Stock [Member]Class B Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Loss [Member] | Total Charter Shareholders' Equity (Deficit) [Member] | Noncontrolling Interests [Member] |
Balance at Dec. 31, 2013 | $ 151 | $ 0 | $ 0 | $ 1,760 | $ (1,568) | $ 0 | $ (41) | $ 151 | |
Roll Forward of Consolidated Shareholders' Equity (Deficit): | |||||||||
Consolidated net income (loss) | (183) | 0 | 0 | 0 | (183) | 0 | 0 | (183) | $ 0 |
Changes in accumulated other comprehensive loss, net | 19 | 0 | 0 | 0 | 0 | 0 | 19 | 19 | 0 |
Stock compensation expense, net | 55 | 0 | 0 | 55 | 0 | 0 | 0 | ||
Exercise of stock options and warrants | 123 | 0 | 0 | 123 | 0 | 0 | 0 | ||
Purchase of treasury stock | (19) | 0 | 0 | 0 | 0 | (19) | 0 | (19) | |
Retirement of treasury stock | 0 | 0 | 0 | (8) | (11) | 19 | 0 | 0 | 0 |
Balance at Dec. 31, 2014 | 146 | 0 | 0 | 1,930 | (1,762) | 0 | (22) | 146 | |
Roll Forward of Consolidated Shareholders' Equity (Deficit): | |||||||||
Consolidated net income (loss) | (271) | 0 | 0 | 0 | (271) | 0 | 0 | (271) | |
Changes in accumulated other comprehensive loss, net | 9 | 0 | 0 | 0 | 0 | 0 | 9 | 9 | |
Stock compensation expense, net | 78 | 0 | 0 | 78 | 0 | 0 | 0 | ||
Exercise of stock options and warrants | 30 | 0 | 0 | 30 | 0 | 0 | 0 | ||
Purchase of treasury stock | (38) | 0 | 0 | 0 | 0 | (38) | 0 | (38) | |
Retirement of treasury stock | 0 | 0 | 0 | (10) | (28) | 38 | 0 | 0 | 0 |
Balance at Dec. 31, 2015 | (46) | 0 | 0 | 2,028 | (2,061) | 0 | (13) | (46) | |
Roll Forward of Consolidated Shareholders' Equity (Deficit): | |||||||||
Consolidated net income (loss) | 3,745 | 0 | 0 | 0 | 3,522 | 0 | 0 | 3,522 | 223 |
Changes in accumulated other comprehensive loss, net | 6 | 0 | 0 | 0 | 0 | 0 | 6 | 6 | |
Stock compensation expense, net | 244 | 0 | 0 | 244 | 0 | 0 | 0 | 244 | |
Accelerated vesting of equity awards | 248 | 0 | 0 | 248 | 0 | 0 | 0 | 248 | 0 |
Settlement of restricted stock units | (59) | 0 | 0 | (59) | 0 | 0 | 0 | (59) | 0 |
Exercise of stock options and warrants | 86 | 0 | 0 | 86 | 0 | 0 | 0 | 86 | |
Purchase of treasury stock | (1,562) | 0 | 0 | 0 | 0 | (1,562) | 0 | (1,562) | |
Retirement of treasury stock | 0 | 0 | 0 | (834) | (728) | 1,562 | 0 | 0 | 0 |
Issuance of shares to Liberty Broadband for cash | 5,000 | 0 | 0 | 5,000 | 0 | 0 | 0 | 5,000 | 0 |
Converted TWC Awards in the TWC Transaction | 514 | 0 | 0 | 514 | 0 | 0 | 0 | 514 | 0 |
Issuance of shares in TWC Transaction | 32,164 | 0 | 0 | 32,164 | 0 | 0 | 0 | 32,164 | 0 |
Issuance of subsidiary equity in Bright House Transaction | 10,134 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 10,134 |
Partnership formation and change in ownership, net of tax | 225 | 0 | 0 | (364) | 0 | 0 | 0 | (364) | 589 |
Purchase of noncontrolling interest, net of tax | (206) | 0 | 0 | (19) | 0 | 0 | 0 | (19) | (187) |
Exchange of Charter Holdings units held by A/N, net of tax and TRA effects | (55) | 0 | 0 | 405 | 0 | 0 | 0 | 405 | (460) |
Distributions to noncontrolling interest | (96) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (96) |
Noncontrolling interests assumed in acquisitions | 24 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 24 |
Balance at Dec. 31, 2016 | $ 50,366 | $ 0 | $ 0 | $ 39,413 | $ 733 | $ 0 | $ (7) | $ 40,139 | $ 10,227 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Consolidated net income (loss) | $ 3,745 | $ (271) | $ (183) |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||
Depreciation and amortization | 6,907 | 2,125 | 2,102 |
Stock compensation expense | 244 | 78 | 55 |
Accelerated vesting of equity awards | 248 | 0 | 0 |
Noncash interest (income) expense | (256) | 28 | 37 |
Other pension benefits | (899) | 0 | 0 |
Loss on extinguishment of debt | 111 | 128 | 0 |
(Gain) loss on financial instruments, net | (89) | 4 | 7 |
Deferred income taxes | (2,958) | (65) | 233 |
Other, net | 8 | 11 | 10 |
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: | |||
Accounts receivable | (160) | 5 | (51) |
Prepaid expenses and other assets | 111 | (3) | (9) |
Accounts payable, accrued liabilities and other | 1,029 | 319 | 158 |
Net cash flows from operating activities | 8,041 | 2,359 | 2,359 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property, plant and equipment | (5,325) | (1,840) | (2,221) |
Change in accrued expenses related to capital expenditures | 603 | 28 | 33 |
Sales (purchases) of cable systems, net | (28,810) | 0 | 11 |
Change in restricted cash and cash equivalents | 22,264 | (15,153) | (7,111) |
Other, net | (22) | (67) | (16) |
Net cash flows from investing activities | (11,290) | (17,032) | (9,304) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings of long-term debt | 12,344 | 26,045 | 8,806 |
Repayments of long-term debt | (10,521) | (11,326) | (1,980) |
Payments for debt issuance costs | (284) | (36) | (6) |
Issuance of equity | 5,000 | 0 | 0 |
Purchase of treasury stock | (1,562) | (38) | (19) |
Proceeds from exercise of stock options and warrants | 86 | 30 | 123 |
Settlement of restricted stock units | (59) | 0 | 0 |
Purchase of noncontrolling interest | (218) | 0 | 0 |
Distributions to noncontrolling interest | (96) | 0 | 0 |
Proceeds from termination of interest rate derivatives | 88 | 0 | 0 |
Other, net | 1 | 0 | 3 |
Net cash flows from financing activities | 4,779 | 14,675 | 6,927 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,530 | 2 | (18) |
CASH AND CASH EQUIVALENTS, beginning of period | 5 | 3 | 21 |
CASH AND CASH EQUIVALENTS, end of period | 1,535 | 5 | 3 |
CASH PAID FOR INTEREST | 2,685 | 1,064 | 851 |
CASH PAID FOR TAXES | $ 63 | $ 3 | $ 13 |
Mergers and Acquisitions (Notes
Mergers and Acquisitions (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Mergers and Acquisitions [Abstract] | |
Mergers and Acquisitions | Mergers and Acquisitions TWC Transaction On May 18, 2016, the transactions contemplated by the Agreement and Plan of Mergers dated as of May 23, 2015 (the “Merger Agreement”), by and among Time Warner Cable Inc. (“Legacy TWC”), Charter Communications, Inc. prior to the closing of the Merger Agreement (“Legacy Charter”), CCH I, LLC, previously a wholly owned subsidiary of Legacy Charter (“New Charter”) and certain other subsidiaries of New Charter were completed (the “TWC Transaction,” and together with the Bright House Transaction described below, the “Transactions”). As a result of the TWC Transaction, New Charter became the new public parent company that holds the operations of the combined companies and was renamed Charter Communications, Inc. Pursuant to the terms of the Merger Agreement, upon consummation of the TWC Transaction, each outstanding share of Legacy TWC common stock (other than Legacy TWC common stock held by Liberty Broadband Corporation (“Liberty Broadband”) and Liberty Interactive Corporation (“Liberty Interactive” and, collectively, the “Liberty Parties”)), was converted into the right to receive, at the option of each such holder of Legacy TWC common stock, either (a) $100 in cash and Charter Class A common stock equivalent to 0.5409 shares of Legacy Charter Class A common stock (the “Option A Consideration”) or (b) $115 in cash and Charter Class A common stock equivalent to 0.4562 shares of Legacy Charter Class A common stock (the “Option B Consideration”). The actual number of shares of Charter Class A common stock that Legacy TWC stockholders received, excluding the Liberty Parties, was calculated by multiplying the exchange ratios of 0.5409 or 0.4562 specified above by 0.9042 (the “Parent Merger Exchange Ratio”), which was also the exchange ratio that was used to determine the number of shares of Charter Class A common stock that Legacy Charter stockholders received per share of Legacy Charter Class A common stock. Such exchange ratio did not impact the aggregate value represented by the shares of Charter Class A common stock issued in the TWC Transaction; however, it did impact the actual number of shares issued in the TWC Transaction. Out of approximately 277 million shares of TWC common stock outstanding at the closing of the TWC Transaction, excluding TWC common stock held by the Liberty Parties, approximately 274 million shares were converted into the right to receive the Option A Consideration and approximately 3 million shares were converted into the right to receive the Option B Consideration. The Liberty Parties received approximately one share of Charter Class A common stock for each share of Legacy TWC common stock they owned (equivalent to 1.106 shares of Legacy Charter Class A common stock multiplied by the Parent Merger Exchange Ratio). As of the date of completion of the Transactions, the total value of the TWC Transaction was approximately $85 billion , including cash, equity and Legacy TWC assumed debt. The purchase price also includes an estimated pre-combination vesting period fair value of $514 million for Legacy TWC equity awards converted into Charter awards upon closing of the TWC Transaction (“Converted TWC Awards”) and $69 million of cash paid to former Legacy TWC employees and non-employee directors who held equity awards, whether vested or not vested. Bright House Transaction Also, on May 18, 2016, Legacy Charter and Advance/Newhouse Partnership (“A/N”), the former parent of Bright House Networks, LLC (“Bright House”), completed their previously announced transaction, pursuant to a definitive Contribution Agreement (the “Contribution Agreement”), under which Charter acquired Bright House (the “Bright House Transaction”). Pursuant to the Bright House Transaction, Charter became the owner of the membership interests in Bright House and the other assets primarily related to Bright House (other than certain excluded assets and liabilities and non-operating cash). As of the date of acquisition, the purchase price totaled approximately $12.2 billion consisting of (a) $2.0 billion in cash, (b) 25 million convertible preferred units of Charter Holdings with a face amount of $2.5 billion that pay a 6% annual preferential dividend, (c) approximately 31.0 million common units of Charter Holdings that are exchangeable into Charter Class A common stock on a one-for-one basis and (d) one share of Charter Class B common stock. These Charter Holdings common and convertible preferred units held by A/N are recorded in noncontrolling interests as permanent equity in the consolidated balance sheet. See Note 11 for conversion features of the Charter Holdings common and preferred units and Note 10 for the terms of the Charter Class B common stock. Liberty Transaction In connection with the TWC Transaction, Legacy Charter and Liberty Broadband completed their previously announced transactions pursuant to their investment agreement, in which Liberty Broadband purchased for cash approximately 22.0 million shares of Charter Class A common stock valued at $4.3 billion at the closing of the TWC Transaction to partially finance the cash portion of the TWC Transaction consideration, and in connection with the Bright House Transaction, Liberty Broadband purchased approximately 3.7 million shares of Charter Class A common stock valued at $700 million at the closing of the Bright House Transaction (the “Liberty Transaction”). Financing for the Transactions Charter partially financed the cash portion of the purchase price of the Transactions with additional indebtedness and cash on hand. In 2015, Legacy Charter issued $15.5 billion aggregate principal amount of CCO Safari II, LLC (“CCO Safari II”) senior secured notes, $3.8 billion aggregate principal amount of CCO Safari III, LLC (“CCO Safari III”) senior secured bank loans and $2.5 billion aggregate principal amount of CCOH Safari, LLC (“CCOH Safari”) senior unsecured notes. The net proceeds were initially deposited into escrow accounts. Upon closing of the TWC Transaction, the proceeds were released from escrow and the CCOH Safari notes became obligations of CCO Holdings, LLC (“CCO Holdings”), an indirect wholly-owned subsidiary of Charter Holdings, and CCO Holdings Capital Corp. (“CCO Holdings Capital”), and the CCO Safari II notes and CCO Safari III credit facilities became obligations of Charter Operating and Charter Communications Operating Capital Corp. CCOH Safari merged into CCO Holdings and CCO Safari II and CCO Safari III merged into Charter Operating. In connection with the closing of the Bright House Transaction, Charter Operating closed on a $2.6 billion aggregate principal amount term loan A facility (“Term Loan A”) pursuant to the terms of Charter Operating’s Amended and Restated Credit Agreement dated May 18, 2016 (the “Credit Agreement”) of which $2.0 billion was used to fund the cash portion of the Bright House Transaction and $638 million was used to prepay and terminate Charter Operating’s existing Term A-1 Loans. See Note 9. Acquisition Accounting The Transactions enable Charter to apply its operating strategy to a larger set of assets, accelerate product development and innovation through greater scale as well as more effectively compete in medium and large commercial markets. The operating results of Legacy TWC and Legacy Bright House have been included in the Company’s consolidated statements of operations for the period from the date of the Transactions through December 31, 2016 . Revenues included in the Company's consolidated statements of operations were $16.0 billion and $2.6 billion for Legacy TWC and Legacy Bright House, respectively, for the year ended December 31, 2016. Charter applied acquisition accounting to the Transactions. The total purchase price was allocated to the identifiable tangible and intangible assets acquired and the liabilities assumed based on their estimated fair values. The fair values were primarily based on third-party valuations using assumptions developed by management and other information compiled by management including, but not limited to, future expected cash flows. The excess of the purchase price over those fair values was recorded as goodwill. Goodwill recognized in the Transactions is representative of resources that do not meet the definition of an identifiable intangible asset and include buy-side synergies, economies of scale of the combined operations, increased market share, assembled workforces and improved credit rating. The fair values of the assets acquired and liabilities assumed were preliminarily determined using the income, cost and market approaches. The fair values were primarily based on significant inputs that are not observable in the market and thus represent a Level 3 measurement, other than long-term debt assumed in the TWC Transaction, which represents a Level 1 measurement. See Note 13. Property, plant and equipment was valued utilizing the cost approach. The cost approach considers the amount required to replace an asset by constructing or purchasing a new asset with similar utility, then adjusts the value in consideration of all forms of depreciation as of the appraisal date as described below: • Physical depreciation - the loss in value or usefulness attributable solely to use of the asset and physical causes such as wear and tear and exposure to the elements. • Functional obsolescence - the loss in value due to factors inherent in the asset itself and due to changes in technology, design or process resulting in inadequacy, overcapacity, lack of functional utility or excess operating costs. • Economic obsolescence - the loss in value due to unfavorable external conditions such as economics of the industry or geographic area, or change in ordinances. The cost approach relies on assumptions regarding current material and labor costs required to rebuild and repurchase significant components of property, plant and equipment along with assumptions regarding the age and estimated useful lives of property, plant and equipment. Franchise rights and customer relationships were valued using an income approach model based on the present value of the estimated discrete future cash flows attributable to each of the intangible assets identified. See Note 6 for more information on the income approach model. The weighted average life of customer relationships acquired in the TWC Transaction and Bright House Transaction was 11 years and 10 years, respectively. The fair value of equity investments was based on either applying implied multiples to estimated cash flows or utilizing a discounted cash flow model. The implied multiples were estimated based on precedent transactions and comparable companies. The discounted cash flow model required estimating the present value of future cash flows of the investee. Legacy TWC long-term debt assumed was adjusted to fair value based on quoted market prices. At the acquisition date, the quoted market values of all but two of Legacy TWC’s bonds were higher than the principal amount of the related debt instrument, which resulted in the recognition of a net debt premium of approximately $2.4 billion . The quoted market value of a debt instrument is higher than the principal amount of the debt when the market interest rates are lower than the stated interest rate of the debt. This debt premium is amortized as a reduction to interest expense over the remaining life of the applicable debt. Generally, no fair value adjustments were reflected in current assets and current liabilities as carrying value is estimated to approximate fair value because of the short-term nature of the items, except for risk management obligations. Risk management obligations assumed including various claims for workers compensation, employment practices, and auto and general liabilities were measured at fair value as of the acquisition date based on an actuarially determined study. Fair value adjustments were reflected in other noncurrent assets and other long-term liabilities relating to contract-based assets and liabilities, capital lease obligations, deferred liabilities and net pension liabilities. Out-of-market contract-based assets and liabilities relating to non-cancelable executory contracts and operating leases were recognized based on discounted cash flow models to the extent the terms of the non-cancelable contracts are favorable or unfavorable compared with the relative market terms of the same or similar contract at the acquisition date. The out-of-market element will be amortized as if the contract were consummated at market terms on the acquisition date. Capital lease obligations were measured at fair value based on the present value of amounts to be paid under the lease agreement using a market participant discount rate. Deferred liabilities were not recorded in acquisition accounting to the extent there was no associated payment obligation or substantive performance obligation. The net pension liabilities assumed in the TWC Transaction were measured at fair value based on an actuarially determined projected benefit obligation, less the fair value of pension investments, as of the acquisition date. See Note 21 for fair value assumptions considered in acquisition accounting for the net pension liabilities. Deferred tax assets and liabilities were recorded for the deferred tax impact of acquisition accounting adjustments primarily related to property, plant and equipment, franchises, customer relationships and assumed Legacy TWC long-term debt. The incremental deferred tax liabilities were calculated primarily based on the tax effect of the step-up in book basis of net assets of Legacy TWC excluding the amount attributable to nondeductible goodwill. The Charter Class A common stock issued to Legacy TWC stockholders and Charter Holdings common units issued to A/N were valued based on the opening share price of Charter Class A common stock on the acquisition date. The convertible preferred units of Charter Holdings issued to A/N were valued at approximately $3.2 billion based on a binomial lattice model for convertible bonds that models the future changes in the common equity value of Charter. The valuation relies on management’s assumptions including risk-free interest rate, volatility and discount yield. The pre-combination vesting period fair value of the Converted TWC Awards was based on the portion of the requisite service period completed at the acquisition date by Legacy TWC employee award holders applied to the total fair value of the Converted TWC Awards. The allocation of the purchase price to certain assets and liabilities is preliminary and is subject to change based on additional information that may be obtained during the measurement period primarily related to working capital measurement. The Company will continue to obtain information to assist in finalizing the fair value of net assets acquired and liabilities assumed, which is not expected to differ materially from the preliminary estimates herein. The Company will apply any measurement period adjustments, including any related impacts to net income (loss), in the reporting period in which the adjustments are determined. The tables below present the calculation of the purchase price and the preliminary allocation of the purchase price to the assets acquired and liabilities assumed in the Transactions. TWC Purchase Price Shares of Charter Class A common stock issued (including the Liberty Parties) (in millions) 143.0 Charter Class A common stock closing price per share $ 224.91 Fair value of Charter Class A common stock issued $ 32,164 Cash paid to Legacy TWC stockholders (excluding the Liberty Parties) $ 27,770 Pre-combination vesting period fair value of Converted TWC Awards 514 Cash paid for Legacy TWC non-employee equity awards 69 Total purchase price $ 60,517 TWC Preliminary Allocation of Purchase Price Cash and cash equivalents $ 1,058 Current assets 1,308 Property, plant and equipment 21,413 Customer relationships 13,460 Franchises 54,085 Goodwill 28,292 Other noncurrent assets 1,040 Accounts payable and accrued liabilities (3,925 ) Debt (24,900 ) Deferred income taxes (28,148 ) Other long-term liabilities (3,162 ) Noncontrolling interests (4 ) $ 60,517 Since completion of the initial estimates in the second quarter of 2016, the Company made measurement period adjustments to the fair value of certain assets acquired and liabilities assumed in the TWC Transaction, including a decrease of $163 million to property, plant and equipment; a decrease of $240 million to customer relationships; an increase of $690 million to franchises; an increase to other operating net liabilities of $215 million ; and a decrease of $4 million to deferred income taxes; resulting in a net decrease to goodwill of $76 million . These adjustments were made primarily to reflect updated appraisal results. The measurement period adjustment to intangibles resulted in a decrease of $20 million in amortization expense relating to the prior quarters that was recorded in the fourth quarter of 2016. The measurement period adjustment to property, plant and equipment resulted in an increase of $12 million in depreciation expense relating to the second quarter that was recorded in the third quarter of 2016. The Company may record additional measurement period adjustments in future periods. Bright House Purchase Price Charter Holdings common units issued to A/N (in millions) 31.0 Charter Class A common stock closing price per share $ 224.91 Fair value of Charter Holdings common units issued to A/N $ 6,971 Fair value of Charter Holdings convertible preferred units issued to A/N 3,163 Cash paid to A/N 2,022 Total purchase price $ 12,156 Bright House Preliminary Allocation of Purchase Price Current assets $ 131 Property, plant and equipment 2,884 Customer relationships 2,150 Franchises 7,225 Goodwill 44 Other noncurrent assets 86 Accounts payable and accrued liabilities (330 ) Other long-term liabilities (12 ) Noncontrolling interests (22 ) $ 12,156 Since completion of the initial estimates in the second quarter of 2016, the Company made measurement period adjustments to the fair value of certain assets acquired and liabilities assumed in the Bright House Transaction, including a decrease of $382 million to property, plant and equipment; an increase of $110 million to customer relationships; an increase of $381 million to franchises; and a decrease of $1 million to current assets resulting in a decrease to goodwill of $108 million . These adjustments were made primarily to reflect updated appraisal results. The measurement period adjustment to intangibles resulted in an increase of $7 million in amortization expense relating to the prior quarters that was recorded in the fourth quarter of 2016. The measurement period adjustment to property, plant and equipment in the third quarter had an inconsequential impact on depreciation expense recorded in the prior quarter. The Company may record additional measurement period adjustments in future periods. Selected Pro Forma Financial Information The following unaudited pro forma financial information of the Company is based on the historical consolidated financial statements of Legacy Charter, Legacy TWC and Legacy Bright House and is intended to provide information about how the Transactions and related financing may have affected the Company’s historical consolidated financial statements if they had closed as of January 1, 2015. The pro forma financial information below is based on available information and assumptions that the Company believes are reasonable. The pro forma financial information is for illustrative and informational purposes only and is not intended to represent or be indicative of what the Company’s financial condition or results of operations would have been had the transactions described above occurred on the date indicated. The pro forma financial information also should not be considered representative of the Company’s future financial condition or results of operations. Year Ended December 31, 2016 2015 Revenues $ 40,023 $ 37,394 Net income attributable to Charter shareholders $ 1,070 $ 159 Earnings per common share attributable to Charter shareholders: Basic $ 3.97 $ 0.59 Diluted $ 3.91 $ 0.58 |
Organization and Basis of Prese
Organization and Basis of Presentation (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Organization and Basis of Presentation [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Organization Charter Communications, Inc. (together with its controlled subsidiaries, “Charter,” or the “Company”) is the second largest cable operator in the United States and a leading broadband communications company providing video, Internet and voice services to residential and business customers. In addition, the Company sells video and online advertising inventory to local, regional and national advertising customers and fiber-delivered communications and managed information technology solutions to larger enterprise customers. The Company also owns and operates regional sports networks and local sports, news and lifestyle channels and sells security and home management services to the residential marketplace. Charter is a holding company whose principal asset is a controlling equity interest in Charter Communications Holdings, LLC (“Charter Holdings”), an indirect owner of Charter Communications Operating, LLC (“Charter Operating”) under which substantially all of the operations reside. All significant intercompany accounts and transactions among consolidated entities have been eliminated. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Areas involving significant judgments and estimates include capitalization of labor and overhead costs; depreciation and amortization costs; purchase accounting valuations of assets and liabilities including, but not limited to, property, plant and equipment, intangibles and goodwill; pension benefits; income taxes; contingencies and programming expense. Actual results could differ from those estimates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Consolidation The accompanying consolidated financial statements include the accounts of Charter and all entities in which Charter has a controlling interest. The Company consolidates based upon evaluation of the Company’s power, through voting rights or similar rights, to direct the activities of another entity that most significantly impact the entity’s economic performance; its obligation to absorb the expected losses of the entity; and its right to receive the expected residual returns of the entity. Charter controls and consolidates Charter Holdings. The noncontrolling interest on the Company’s balance sheet primarily represents A/N’s minority equity interests in Charter Holdings. See Note 11. All significant inter-company accounts and transactions among consolidated entities have been eliminated in consolidation. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. These investments are carried at cost, which approximates market value. Cash and cash equivalents consist primarily of money market funds and commercial paper. Restricted Cash and Cash Equivalents Proceeds from the issuance of certain long-term debt were deposited into escrow accounts and were used for acquisition financing and were contractually restricted as to their withdrawal or use. See Note 2. The amounts held in escrow were classified as noncurrent restricted cash and cash equivalents in the Company’s consolidated balance sheets as of December 31, 2015. The Company’s restricted cash and cash equivalents were primarily invested in money market funds and 90-day or less commercial paper. The changes in restricted cash and cash equivalents are presented as an investing activity in the Company’s consolidated statements of cash flows. Property, Plant and Equipment Additions to property, plant and equipment are recorded at cost, including all material, labor and certain indirect costs associated with the construction of cable transmission and distribution facilities. While the Company’s capitalization is based on specific activities, once capitalized, costs are tracked on a composite basis by fixed asset category at the cable system level and not on a specific asset basis. For assets that are sold or retired, the estimated historical cost and related accumulated depreciation is removed. Costs associated with the initial placement of the customer drop to the dwelling and the initial placement of outlets within a dwelling along with the costs associated with the initial deployment of customer premise equipment necessary to provide video, Internet or voice services are capitalized. Costs capitalized include materials, direct labor, and certain indirect costs. Indirect costs are associated with the activities of the Company’s personnel who assist in installation activities and consist of compensation and other costs associated with these support functions. Indirect costs primarily include employee benefits and payroll taxes, vehicle and occupancy costs, and the costs of sales and dispatch personnel associated with capitalizable activities. The costs of disconnecting service and removing customer premise equipment from a dwelling and the costs to reconnect a customer drop or to redeploy previously installed customer premise equipment are charged to operating expensed as incurred. Costs for repairs and maintenance are charged to operating expense as incurred, while plant and equipment replacement, including replacement of certain components, betterments, including replacement of cable drops and outlets, are capitalized. Depreciation is recorded using the straight-line composite method over management’s estimate of the useful lives of the related assets as follows: Cable distribution systems 7-20 years Customer premise equipment and installations 3-8 years Vehicles and equipment 3-6 years Buildings and improvements 15-40 years Furniture, fixtures and equipment 6-10 years Asset Retirement Obligations Certain of the Company’s franchise agreements and leases contain provisions requiring the Company to restore facilities or remove equipment in the event that the franchise or lease agreement is not renewed. The Company expects to continually renew its franchise agreements and therefore cannot reasonably estimate any liabilities associated with such agreements. A remote possibility exists that franchise agreements could be terminated unexpectedly, which could result in the Company incurring significant expense in complying with restoration or removal provisions. The Company does not have any significant liabilities related to asset retirements recorded in its consolidated financial statements. Valuation of Long-Lived Assets The Company evaluates the recoverability of long-lived assets (e.g., property, plant and equipment and finite-lived intangible assets) to be held and used when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Such events or changes in circumstances could include such factors as impairment of the Company’s indefinite life assets, changes in technological advances, fluctuations in the fair value of such assets, adverse changes in relationships with local franchise authorities, adverse changes in market conditions or a deterioration of operating results. If a review indicates that the carrying value of such asset is not recoverable from estimated undiscounted cash flows, the carrying value of such asset is reduced to its estimated fair value. While the Company believes that its estimates of future cash flows are reasonable, different assumptions regarding such cash flows could materially affect its evaluations of asset recoverability. No impairments of long-lived assets to be held and used were recorded in 2016 , 2015 and 2014 . Other Noncurrent Assets Other noncurrent assets primarily include investments, trademarks, right-of-entry costs and other intangible assets. The Company accounts for its investments in less than majority owned investees under either the equity or cost method. The Company applies the equity method to investments when it has the ability to exercise significant influence over the operating and financial policies of the investee. The Company’s share of the investee’s earnings (losses) is included in other expense, net in the consolidated statements of operations. The Company monitors its investments for indicators that a decrease in investment value has occurred that is other than temporary. If it has been determined that an investment has sustained an other than temporary decline in value, the investment is written down to fair value with a charge to earnings. Investments acquired are measured at fair value utilizing the acquisition method of accounting. The difference between the fair value and the amount of underlying equity in net assets for most equity method investments is due to previously unrecognized intangible assets at the investee. These amounts are amortized as a component of equity earnings (losses), recorded within other expense, net over the estimated useful life of the asset. Trademarks have been determined to have an indefinite life and are tested annually for impairment. Right-of-entry costs represent costs incurred related to agreements entered into with landlords, real estate companies or owners to gain access to a building in order to provide cable service. Right-of-entry costs are generally deferred and amortized to amortization expense over the term of the agreement. Revenue Recognition Revenues from residential and commercial video, Internet and voice services are recognized when the related services are provided. Advertising sales are recognized at estimated realizable values in the period that the advertisements are broadcast. In some cases, the Company coordinates the advertising sales efforts of other cable operators in a certain market and remits amounts received from customers less an agreed-upon percentage to such cable operator. For those arrangements in which the Company acts as a principal, the Company records the revenues earned from the advertising customer on a gross basis and the amount remitted to the cable operator as an operating expense. Fees imposed on the Company by various governmental authorities are passed through on a monthly basis to the Company’s customers and are periodically remitted to authorities. Fees of $711 million , $255 million and $248 million for the years ended December 31, 2016 , 2015 and 2014 , respectively, are reported in video, voice and commercial revenues, on a gross basis with a corresponding operating expense because the Company is acting as a principal . Other taxes, such as sales taxes imposed on the Company’s customers, collected and remitted to state and local authorities, are recorded on a net basis because the Company is acting as an agent in such situation. The Company’s revenues by product line are as follows: Year Ended December 31, 2016 2015 2014 Video $ 11,967 $ 4,587 $ 4,443 Internet 9,272 3,003 2,576 Voice 2,005 539 575 Residential revenue 23,244 8,129 7,594 Small and medium business 2,480 764 676 Enterprise 1,429 363 317 Commercial revenue 3,909 1,127 993 Advertising sales 1,235 309 341 Other 615 189 180 $ 29,003 $ 9,754 $ 9,108 Programming Costs The Company has various contracts to obtain video programming from vendors whose compensation is typically based on a flat fee per customer. The cost of the right to exhibit network programming under such arrangements is recorded in operating expenses in the month the programming is available for exhibition. Programming costs are paid each month based on calculations performed by the Company and are subject to periodic audits performed by the programmers. Certain programming contracts contain incentives to be paid by the programmers. The Company receives these payments and recognizes the incentives on a straight-line basis over the life of the programming agreement as a reduction of programming expense. Programming costs included in the statements of operations were $7.0 billion , $2.7 billion and $2.5 billion for the years ended December 31, 2016 , 2015 and 2014 , respectively. Advertising Costs Advertising costs associated with marketing the Company’s products and services are generally expensed as costs are incurred. Multiple-Element Transactions In the normal course of business, the Company enters into multiple-element transactions where it is simultaneously both a customer and a vendor with the same counterparty or in which it purchases multiple products and/or services, or settles outstanding items contemporaneous with the purchase of a product or service from a single counterparty. Transactions, although negotiated contemporaneously, may be documented in one or more contracts. The Company’s policy for accounting for each transaction negotiated contemporaneously is to record each element of the transaction based on the respective estimated fair values of the products or services purchased and the products or services sold. In determining the fair value of the respective elements, the Company refers to quoted market prices (where available), historical transactions or comparable cash transactions. Cash consideration received from a vendor is recorded as a reduction in the price of the vendor’s product unless (i) the consideration is for the reimbursement of a specific, incremental, identifiable cost incurred, in which case the cash consideration received would be recorded as a reduction in such cost (e.g., marketing costs), or (ii) an identifiable benefit in exchange for the consideration is provided, in which case revenue would be recognized for this element. Stock-Based Compensation Restricted stock, restricted stock units, stock options as well as equity awards with market conditions are measured at the grant date fair value and amortized to stock compensation expense over the requisite service period. The fair value of options is estimated on the date of grant using the Black-Scholes option-pricing model and the fair value of equity awards with market conditions is estimated on the date of grant using Monte Carlo simulations. The grant date weighted average assumptions used during the years ended December 31, 2016 , 2015 and 2014 , respectively, were: risk-free interest rate of 1.7% , 1.5% and 2.0% ; expected volatility of 25.4% , 34.7% and 36.9% ; and expected lives of 1.3 years, 6.5 years and 6.5 years. Weighted average assumptions for 2016 include the assumptions used for the Converted TWC Awards. Volatility assumptions were based on historical volatility of Legacy Charter and Legacy TWC. The Company’s volatility assumptions represent management’s best estimate and were partially based on historical volatility of Legacy TWC due to the completion of the Transactions. Expected lives were estimated using historical exercise data. The valuations assume no dividends are paid. Pension Plans The Company sponsors the TWC Pension Plan, TWC Union Pension Plan and TWC Excess Pension Plan (as defined in Note 21). Pension benefits are based on formulas that reflect the employees’ years of service and compensation during their employment period. Actuarial gains or losses are changes in the amount of either the benefit obligation or the fair value of plan assets resulting from experience different from that assumed or from changes in assumptions. The Company has elected to follow a mark-to-market pension accounting policy for recording the actuarial gains or losses annually during the fourth quarter, or earlier if a remeasurement event occurs during an interim period. Income Taxes The Company recognizes deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities and expected benefits of utilizing loss carryforwards. Since substantially all the Company’s operations are held through its partnership interest in Charter Holdings, the primary deferred tax component recorded in the consolidated balance sheet relates to the excess financial reporting outside basis, excluding amounts attributable to nondeductible goodwill, over Charter’s tax basis in its investment in the partnership. Valuation allowances are established when management determines that it is more likely than not that some portion or the entire deferred tax asset will not be realized. The impact on deferred taxes of changes in tax rates and tax law, if any, applied to the years during which temporary differences are expected to be settled, are reflected in the consolidated financial statements in the period of enactment. In determining the Company’s tax provision for financial reporting purposes, the Company establishes a reserve for uncertain tax positions unless such positions are determined to be “more likely than not” of being sustained upon examination, based on their technical merits. There is considerable judgment involved in making such a determination. Interest and penalties are recognized on uncertain income tax positions as part of the income tax provision. See Note 17. Segments The Company’s operations are managed and reported to its Chief Executive Officer (“CEO”), the Company’s chief operating decision maker, on a consolidated basis. The CEO assesses performance and allocates resources based on the consolidated results of operations. Under this organizational and reporting structure, the Company has one reportable segment, cable services. |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Allowance for Doubtful Accounts [Abstract] | |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Activity in the allowance for doubtful accounts is summarized as follows for the years presented: Year Ended December 31, 2016 2015 2014 Balance, beginning of period $ 21 $ 22 $ 19 Charged to expense 328 135 122 Uncollected balances written off, net of recoveries (225 ) (136 ) (119 ) Balance, end of period $ 124 $ 21 $ 22 |
Property, Plant and Equipment (
Property, Plant and Equipment (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consists of the following as of December 31, 2016 and 2015 : December 31, 2016 2015 Cable distribution systems $ 23,317 $ 8,158 Customer premise equipment and installations 12,867 4,632 Vehicles and equipment 1,212 384 Buildings and improvements 3,426 570 Furniture, fixtures and equipment 3,244 1,119 44,066 14,863 Less: accumulated depreciation (11,103 ) (6,518 ) $ 32,963 $ 8,345 The Company periodically evaluates the estimated useful lives used to depreciate its assets and the estimated amount of assets that will be abandoned or have minimal use in the future. A significant change in assumptions about the extent or timing of future asset retirements, or in the Company’s use of new technology and upgrade programs, could materially affect future depreciation expense. Depreciation expense for the years ended December 31, 2016 , 2015 and 2014 was $5.0 billion , $1.9 billion , and $1.8 billion , respectively. Property, plant and equipment increased by $24.3 billion as a result of the Transactions. See Note 2. |
Franchises, Goodwill and Other
Franchises, Goodwill and Other Intangible Assets (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Franchises, Goodwill and Other Intangible Assets [Abstract] | |
Franchises, Goodwill and Other Intangible Assets | Franchises, Goodwill and Other Intangible Assets Franchise rights represent the value attributed to agreements or authorizations with local and state authorities that allow access to homes in cable service areas. For valuation purposes, they are defined as the future economic benefits of the right to solicit and service potential customers (customer marketing rights), and the right to deploy and market new services to potential customers (service marketing rights). Management estimates the fair value of franchise rights at the date of acquisition and determines if the franchise has a finite life or an indefinite life. The Company has concluded that all of its franchises, including those acquired as part of the Transactions, qualify for indefinite life treatment given that there are no legal, regulatory, contractual, competitive, economic or other factors which limit the period over which these rights will contribute to our cash flows. We reassess this determination periodically or whenever events or substantive changes in circumstances occur. The estimated fair value of franchises is determined utilizing an income approach model based on the present value of the estimated discrete future cash flows attributable to each of the intangible assets identified assuming a discount rate. The fair value of franchises is determined based on estimated discrete discounted future cash flows using assumptions consistent with internal forecasts. The franchise after-tax cash flow is calculated as the after-tax cash flow generated by the potential customers obtained. The sum of the present value of the franchises’ after-tax cash flow in years 1 through 10 and the continuing value of the after-tax cash flow beyond year 10 yields the fair value of the franchises. This approach makes use of unobservable factors such as projected revenues, expenses, capital expenditures, customer trends, and a discount rate applied to the estimated cash flows. The determination of the franchise discount rate is derived from the Company’s weighted average cost of capital, which uses a market participant’s cost of equity and after-tax cost of debt and reflects the risks inherent in the cash flows. The Company estimates discounted future cash flows using reasonable and appropriate assumptions including among others, penetration rates for video, Internet, and voice; revenue growth rates; operating margins; and capital expenditures. The assumptions are based on the Company’s and its peers’ historical operating performance adjusted for current and expected competitive and economic factors surrounding the cable industry. The estimates and assumptions made in the Company’s valuations are inherently subject to significant uncertainties, many of which are beyond its control, and there is no assurance that these results can be achieved. The primary assumptions for which there is a reasonable possibility of the occurrence of a variation that would significantly affect the measurement value include the assumptions regarding revenue growth, programming expense growth rates, the amount and timing of capital expenditures, actual customer trends and the discount rate utilized. All franchises are tested for impairment annually or more frequently as warranted by events or changes in circumstances. Franchise assets are aggregated into essentially inseparable units of accounting to conduct valuations. The units of accounting generally represent geographical clustering of our cable systems into groups. The Company assesses qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that an indefinite lived intangible asset has been impaired. If, after this optional qualitative assessment, the Company determines that it is not more likely than not that an indefinite lived intangible asset has been impaired, then no further quantitative testing is necessary. In completing the qualitative impairment testing, the Company evaluates a multitude of factors that affect the fair value of our franchise assets. Examples of such factors include environmental and competitive changes within our operating footprint, actual and projected operating performance, the consistency of our operating margins, equity and debt market trends, including changes in our market capitalization, and changes in our regulatory and political landscape, among other factors. After consideration of the qualitative factors, in 2016 the Company concluded that it is more likely than not that the fair value of the franchise assets in each unit of accounting exceeds the carrying value of such assets and therefore did not perform a quantitative analysis. Periodically, the Company will elect to perform a quantitative analysis for impairment testing. If the Company elects or is required to perform a quantitative analysis to test its franchise assets for impairment, the methodology described above is utilized. The fair value of goodwill is determined using both an income approach and market approach. The Company’s income approach model used for its goodwill valuation is consistent with that used for its franchise valuation noted above except that cash flows from the entire business enterprise are used for the goodwill valuation. The Company’s market approach model estimates the fair value of the reporting unit based on market prices in actual precedent transactions of similar businesses and market valuations of guideline public companies. Goodwill is tested for impairment as of November 30 of each year , or more frequently as warranted by events or changes in circumstances. Accounting guidance also permits an optional qualitative assessment for goodwill to determine whether it is more likely than not that the carrying value of a reporting unit exceeds its fair value. If, after this qualitative assessment, the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount then no further quantitative testing would be necessary. If the Company elects or is required to perform the two-step test under the accounting guidance, the first step involves a comparison of the estimated fair value of the reporting unit to its carrying amount. If the estimated fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered impaired and the second step of the goodwill impairment is not necessary. If the carrying amount of a reporting unit exceeds its estimated fair value, then the second step of the goodwill impairment test must be performed, and a comparison of the implied fair value of the reporting unit’s goodwill is compared to its carrying amount to determine the amount of impairment, if any. As with the Company’s franchise impairment testing, in 2016 the Company elected to perform a qualitative goodwill impairment assessment and concluded that goodwill is not impaired. Customer relationships are recorded at fair value as of the date acquired less accumulated amortization. Customer relationships, for valuation purposes, represent the value of the business relationship with existing customers, and are calculated by projecting the discrete future after-tax cash flows from these customers, including the right to deploy and market additional services to these customers. The present value of these after-tax cash flows yields the fair value of the customer relationships. The use of different valuation assumptions or definitions of franchises or customer relationships, such as our inclusion of the value of selling additional services to our current customers within customer relationships versus franchises, could significantly impact our valuations and any resulting impairment. Customer relationships are amortized on an accelerated sum of years’ digits method over useful lives of 8 - 15 years based on the period over which current customers are expected to generate cash flows. The Company periodically evaluates the remaining useful lives of its customer relationships to determine whether events or circumstances warrant revision to the remaining periods of amortization. Customer relationships are evaluated for impairment upon the occurrence of events or changes in circumstances indicating that the carrying amount of an asset may not be recoverable. Customer relationships are deemed impaired when the carrying value exceeds the projected undiscounted future cash flows associated with the customer relationships. No impairment of customer relationships was recorded in the years ended December 31, 2016 , 2015 or 2014 . The fair value of trademarks is determined using the relief-from-royalty method, a variation of the income approach, which applies a fair royalty rate to estimated revenue derived under the Company’s trademarks. The fair value of the intangible is estimated to be the present value of the royalty saved because the Company owns the trademarks. Royalty rates are estimated based on a review of market royalty rates in the communications and entertainment industries. As the Company expects to continue to use each trademark indefinitely, trademarks have been assigned an indefinite life and are tested annually for impairment using either a qualitative analysis or quantitative analysis as elected by management. As with the Company’s franchise impairment testing, in 2016 the Company elected to perform a qualitative trademark impairment assessment and concluded that trademarks are not impaired. As of December 31, 2016 and 2015 , indefinite-lived and finite-lived intangible assets are presented in the following table: December 31, 2016 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Indefinite-lived intangible assets: Franchises $ 67,316 $ — $ 67,316 $ 6,006 $ — $ 6,006 Goodwill 29,509 — 29,509 1,168 — 1,168 Trademarks 159 — 159 159 — 159 Other intangible assets 4 — 4 4 — 4 $ 96,988 $ — $ 96,988 $ 7,337 $ — $ 7,337 Finite-lived intangible assets: Customer relationships $ 18,226 $ (3,618 ) $ 14,608 $ 2,616 $ (1,760 ) $ 856 Other intangible assets 615 (128 ) 487 173 (82 ) 91 $ 18,841 $ (3,746 ) $ 15,095 $ 2,789 $ (1,842 ) $ 947 Other intangible assets consist primarily of right-of-entry costs. Amortization expense related to customer relationships and other intangible assets for the years ended December 31, 2016 , 2015 and 2014 was $1.9 billion , $271 million and $299 million , respectively. Franchises, goodwill and customer relationships increased by $61.3 billion , $28.3 billion and $15.6 billion , respectively, as a result of the Transactions. See Note 2. The Company expects amortization expense on its finite-lived intangible assets will be as follows. 2017 $ 2,743 2018 2,461 2019 2,178 2020 1,886 2021 1,602 Thereafter 4,225 $ 15,095 Actual amortization expense in future periods could differ from these estimates as a result of new intangible asset acquisitions or divestitures, changes in useful lives, impairments and other relevant factors. |
Investments (Notes)
Investments (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Investments [Abstract] | |
Investments | Investments In connection with the Transactions, the Company acquired approximately $508 million of Legacy TWC and Legacy Bright House equity-method and cost-method investments, which were adjusted to fair value as a result of applying acquisition accounting. The equity-method investments acquired include Sterling Entertainment Enterprises, LLC (“Sterling” - d/b/a SportsNet New York - 26.8% owned), MLB Network, LLC (“MLB Network” - 6.4% owned), iN Demand L.L.C. (“iN Demand” - 39.8% owned) and National Cable Communications LLC (“NCC” - 20.0% owned), among other less significant equity-method and cost-method investments. Sterling and MLB Network are primarily engaged in the development of sports programming services. iN Demand provides programming on a video on demand, pay-per-view and subscription basis. NCC represents multi-video program distributors to advertisers. Investments consisted of the following as of December 31, 2016 and 2015 : December 31, 2016 2015 Equity-method investments 519 53 Other investments 11 2 Total investments $ 530 $ 55 The Company's equity-method investments balance as of December 31, 2016 reflected in the table above includes differences between the acquisition date fair value of certain investments acquired in the Transactions and the underlying equity in the net assets of the investee, referred to as a basis difference. As discussed in Note 2, this basis difference is amortized as a component of equity earnings. The remaining unamortized basis difference is $436 million as of December 31, 2016 . The Company applies the equity method of accounting to these and other less significant equity-method investments, all of which are recorded in other noncurrent assets in the consolidated balance sheets as of December 31, 2016 and 2015 . For the years ended December 31, 2016 and 2015 , net losses from equity-method investments were $14 million and $7 million , respectively, which were recorded in other expense, net in the consolidated statements of operations. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities consist of the following as of December 31, 2016 and 2015 : December 31, 2016 2015 Accounts payable – trade $ 454 $ 134 Deferred revenue 352 96 Accrued liabilities: Programming costs 1,783 451 Compensation 1,111 191 Capital expenditures 1,107 296 Interest 958 445 Taxes and regulatory fees 538 128 Property and casualty 394 74 Other 847 157 $ 7,544 $ 1,972 |
Long-Term Debt (Notes)
Long-Term Debt (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following as of December 31, 2016 and 2015 : December 31, 2016 2015 Principal Amount Accreted Value Principal Amount Accreted Value CCOH Safari, LLC: 5.750% senior notes due February 15, 2026 $ — $ — $ 2,500 $ 2,499 CCO Safari II, LLC: 3.579% senior notes due July 23, 2020 — — 2,000 1,999 4.464% senior notes due July 23, 2022 — — 3,000 2,998 4.908% senior notes due July 23, 2025 — — 4,500 4,497 6.384% senior notes due October 23, 2035 — — 2,000 1,999 6.484% senior notes due October 23, 2045 — — 3,500 3,498 6.834% senior notes due October 23, 2055 — — 500 500 CCO Safari III, LLC: Credit facilities — — 3,800 3,788 CCO Holdings, LLC: 7.000% senior notes due January 15, 2019 — — 600 594 7.375% senior notes due June 1, 2020 — — 750 744 5.250% senior notes due March 15, 2021 500 496 500 496 6.500% senior notes due April 30, 2021 — — 1,500 1,487 6.625% senior notes due January 31, 2022 750 741 750 740 5.250% senior notes due September 30, 2022 1,250 1,232 1,250 1,229 5.125% senior notes due February 15, 2023 1,000 992 1,000 990 5.125% senior notes due May 1, 2023 1,150 1,141 1,150 1,140 5.750% senior notes due September 1, 2023 500 496 500 495 5.750% senior notes due January 15, 2024 1,000 991 1,000 990 5.875% senior notes due April 1, 2024 1,700 1,685 — — 5.375% senior notes due May 1, 2025 750 744 750 744 5.750% senior notes due February 15, 2026 2,500 2,460 — — 5.500% senior notes due May 1, 2026 1,500 1,487 — — 5.875% senior notes due May 1, 2027 800 794 800 794 Charter Communications Operating, LLC: 3.579% senior notes due July 23, 2020 2,000 1,983 — — 4.464% senior notes due July 23, 2022 3,000 2,973 — — 4.908% senior notes due July 23, 2025 4,500 4,458 — — 6.384% senior notes due October 23, 2035 2,000 1,980 — — 6.484% senior notes due October 23, 2045 3,500 3,466 — — 6.834% senior notes due October 23, 2055 500 495 — — Credit facilities 8,916 8,814 3,552 3,502 Time Warner Cable, LLC: 5.850% senior notes due May 1, 2017 2,000 2,028 — — 6.750% senior notes due July 1, 2018 2,000 2,135 — — 8.750% senior notes due February 14, 2019 1,250 1,412 — — 8.250% senior notes due April 1, 2019 2,000 2,264 — — 5.000% senior notes due February 1, 2020 1,500 1,615 — — 4.125% senior notes due February 15, 2021 700 739 — — 4.000% senior notes due September 1, 2021 1,000 1,056 — — 5.750% sterling senior notes due June 2, 2031 (a) 770 834 — — 6.550% senior debentures due May 1, 2037 1,500 1,691 — — 7.300% senior debentures due July 1, 2038 1,500 1,795 — — 6.750% senior debentures due June 15, 2039 1,500 1,730 — — 5.875% senior debentures due November 15, 2040 1,200 1,259 — — 5.500% senior debentures due September 1, 2041 1,250 1,258 — — 5.250% sterling senior notes due July 15, 2042 (b) 800 771 — — 4.500% senior debentures due September 15, 2042 1,250 1,135 — — Time Warner Cable Enterprises LLC: 8.375% senior debentures due March 15, 2023 1,000 1,273 — — 8.375% senior debentures due July 15, 2033 1,000 1,324 — — Total debt 60,036 61,747 35,902 35,723 Less current portion: 5.850% senior notes due May 1, 2017 (2,000 ) (2,028 ) — — Long-term debt $ 58,036 $ 59,719 $ 35,902 $ 35,723 (a) Principal amount includes £625 million valued at $770 million as of December 31, 2016 using the exchange rate at that date. (b) Principal amount includes £650 million valued at $800 million as of December 31, 2016 using the exchange rate at that date. The accreted values presented in the table above represent the principal amount of the debt less the original issue discount at the time of sale, deferred financing costs, and, (i) in regards to the Legacy TWC debt assumed, a fair value premium adjustment as a result of applying acquisition accounting plus/minus the accretion of those amounts to the balance sheet date and (ii) in regards to the fixed-rate British pound sterling denominated notes (the “Sterling Notes”), a remeasurement of the principal amount of the debt and any premium or discount into US dollars as of the balance sheet date. See Note 12. However, the amount that is currently payable if the debt becomes immediately due is equal to the principal amount of the debt. The Company has availability under the Charter Operating credit facilities of approximately $2.8 billion as of December 31, 2016 . In December 2016, Charter Operating entered into an amendment to its Credit Agreement decreasing the applicable LIBOR margin on the term loan A, term loan H, term loan I and revolver to 1.75% , 2.00% , 2.25% and 1.75% , respectively, eliminating the LIBOR floor on the term loan H and term loan I and extending the maturity of term loan H to 2022 and term loan I to 2024. The Company recorded a loss on extinguishment of debt of $1 million for the year ended December 31, 2016 related to these transactions. In February 2016, CCO Holdings and CCO Holdings Capital jointly issued $1.7 billion aggregate principal amount of 5.875% senior notes due 2024 (the “2024 Notes”) and, in April 2016, they issued $1.5 billion aggregate principal amount of 5.500% senior notes due 2026 (the “2026 Notes”) at a price of 100.075% of the aggregate principal amount. The net proceeds from both issuances were used to repurchase all of CCO Holdings’ 7.000% senior notes due 2019, 7.375% senior notes due 2020 and 6.500% senior notes due 2021 and to pay related fees and expenses and for general corporate purposes. These debt repurchases resulted in a loss on extinguishment of debt of $110 million for the year ended December 31, 2016 . In April 2015, CCO Holdings and CCO Holdings Capital closed on transactions in which they issued $1.15 billion aggregate principal amount of 5.125% senior unsecured notes due 2023 (the “2023 Notes”), $750 million aggregate principal amount of 5.375% senior unsecured notes due 2025 (the “2025 Notes”) and $800 million aggregate principal amount of 5.875% senior unsecured notes due 2027 (the “2027 Notes”). The net proceeds from the issuance of the 2023 Notes and 2025 Notes were used to finance tender offers and a subsequent call in which $1.0 billion aggregate principal amount of CCO Holdings’ outstanding 7.250% senior notes due 2017 and $700 million aggregate principal amount of CCO Holdings’ outstanding 8.125% senior notes due 2020 were repurchased, as well as for general corporate purposes. The net proceeds from the issuance of the 2027 Notes were used to call $800 million of the $1.4 billion aggregate principal amount of CCO Holdings’ outstanding 7.000% senior notes due 2019. These debt repurchases resulted in a loss on extinguishment of debt of $123 million for the year ended December 31, 2015. The Company also recorded a loss on extinguishment of debt of approximately $5 million for the year ended December 31, 2015 as a result of the repayment of debt upon termination of the proposed transactions with Comcast Corporation (“Comcast”). CCO Holdings Notes The CCO Holdings notes are senior debt obligations of CCO Holdings and CCO Holdings Capital and rank equally with all other current and future unsecured, unsubordinated obligations of CCO Holdings and CCO Holdings Capital. They are structurally subordinated to all obligations of subsidiaries of CCO Holdings. CCO Holdings may redeem some or all of the CCO Holdings notes at any time at a premium. The optional redemption price declines to 100% of the respective series’ principal amount, plus accrued and unpaid interest, if any, on or after varying dates in 2017 through 2024. In addition, at any time prior to varying dates in 2017 through 2021, CCO Holdings may redeem up to 35% ( 40% in regards to certain notes issued in 2015 and 2016) of the aggregate principal amount of the notes at a premium plus accrued and unpaid interest to the redemption date, with the net cash proceeds of one or more equity offerings (as defined in the indenture); provided that certain conditions are met. In the event of specified change of control events, CCO Holdings must offer to purchase the outstanding CCO Holdings notes from the holders at a purchase price equal to 101% of the total principal amount of the notes, plus any accrued and unpaid interest. High-Yield Restrictive Covenants; Limitation on Indebtedness. The indentures governing the CCO Holdings notes contain certain covenants that restrict the ability of CCO Holdings, CCO Holdings Capital and all of their restricted subsidiaries to: • incur additional debt; • pay dividends on equity or repurchase equity; • make investments; • sell all or substantially all of their assets or merge with or into other companies; • sell assets; • in the case of restricted subsidiaries, create or permit to exist dividend or payment restrictions with respect to CCO Holdings, guarantee their parent companies debt, or issue specified equity interests; • engage in certain transactions with affiliates; and • grant liens. The above limitations in certain circumstances regarding incurrence of debt, payment of dividends and making investments contained in the indentures of CCO Holdings permit CCO Holdings and its restricted subsidiaries to perform the above, so long as, after giving pro forma effect to the above, the leverage ratio would be below a specified level for the issuer. The leverage ratio under the indentures is 6.0 to 1.0 . Charter Operating Notes The Charter Operating notes are guaranteed by CCO Holdings, TWC, LLC (as defined below), TWCE (as defined below) and substantially all of the operating subsidiaries of Charter Operating (collectively, the “Subsidiary Guarantors”). In addition, the Charter Operating notes are secured by a perfected first priority security interest in substantially all of the assets of Charter Operating to the extent such liens can be perfected under the Uniform Commercial Code by the filing of a financing statement and the liens rank equally with the liens on the collateral securing obligations under the Charter Operating credit facilities. Charter Operating may redeem some or all of the Charter Operating notes at any time at a premium. The Charter Operating notes are subject to the terms and conditions of the indenture governing the Charter Operating notes. The Charter Operating notes contain customary representations and warranties and affirmative covenants with limited negative covenants. The Charter Operating indenture also contains customary events of default. Charter Operating Credit Facilities The Charter Operating credit facilities have an outstanding principal amount of $8.9 billion at December 31, 2016 as follows: • term loan A with a remaining principal amount of $2.5 billion , which is repayable in quarterly installments and aggregating $132 million in 2017 and 2018, $231 million in 2019 and $264 million in 2020, with the remaining balance due at final maturity on May 18, 2021. Pricing on term loan A is LIBOR plus 1.75% ; • term loan E with a remaining principal amount of approximately $1.4 billion , which is repayable in equal quarterly installments and aggregating $15 million in each loan year, with the remaining balance due at final maturity on July 1, 2020. Pricing on term loan E is LIBOR plus 2.25% with a LIBOR floor of 0.75% (see Note 25 for amendments to the Charter Operating credit facilities completed in 2017); • term loan F with a remaining principal amount of approximately $1.2 billion , which is repayable in equal quarterly installments and aggregating $12 million in each loan year, with the remaining balance due at final maturity on January 3, 2021. Pricing on term loan F is LIBOR plus 2.25% with a LIBOR floor of 0.75% (see Note 25 for amendments to the Charter Operating credit facilities completed in 2017); • term loan H with a remaining principal amount of approximately $993 million , which is repayable in equal quarterly installments and aggregating $10 million in each loan year, with the remaining balance due at final maturity on January 15, 2022. Pricing on term loan H is LIBOR plus 2.00% ; • term loan I with a remaining principal amount of approximately $2.8 billion , which is repayable in equal quarterly installments and aggregating $28 million in each loan year, with the remaining balance due at final maturity on January 15, 2024. Pricing on term loan I is LIBOR plus 2.25% ; and • revolving loan allowing for borrowings of up to $3.0 billion , maturing on May 18, 2021. Pricing on the revolving loan is LIBOR plus 1.75% with a commitment fee of 0.30% . As of December 31, 2016 , $220 million of the revolving loan was utilized to collateralize a like principal amount of letters of credit out of $278 million of letters of credit issued on the Company’s behalf. Amounts outstanding under the Charter Operating credit facilities bear interest, at Charter Operating’s election, at a base rate or LIBOR ( 0.77% and 0.42% as of December 31, 2016 and December 31, 2015 , respectively), as defined, plus an applicable margin. The Charter Operating credit facilities also allow us to enter into incremental term loans in the future, with amortization as set forth in the notices establishing such term loans. Although the Charter Operating credit facilities allow for the incurrence of a certain amount of incremental term loans subject to pro forma compliance with its financial maintenance covenants, no assurance can be given that the Company could obtain additional incremental term loans in the future if Charter Operating sought to do so or what amount of incremental term loans would be allowable at any given time under the terms of the Charter Operating credit facilities. The obligations of Charter Operating under the Charter Operating credit facilities are guaranteed by the Subsidiary Guarantors. The obligations are also secured by (i) a lien on substantially all of the assets of Charter Operating and the Subsidiary Guarantors, to the extent such lien can be perfected under the Uniform Commercial Code by the filing of a financing statement, and (ii) a pledge by CCO Holdings of the equity interests owned by it in any of Charter Operating’s subsidiaries, as well as intercompany obligations owing to it by any of such entities. Restrictive Covenants The Charter Operating credit facilities contain representations and warranties, and affirmative and negative covenants customary for financings of this type. The financial covenants measure performance against standards set for leverage to be tested as of the end of each quarter. The Charter Operating credit facilities contain provisions requiring mandatory loan prepayments under specific circumstances, including in connection with certain sales of assets, so long as the proceeds have not been reinvested in the business. Additionally, the Charter Operating credit facilities provisions contain an allowance for restricted payments so long as the consolidated leverage ratio is no greater than 3.5 after giving pro forma effect to such restricted payment. The Charter Operating credit facilities permit Charter Operating and its subsidiaries to make distributions to pay interest on the currently outstanding subordinated and parent company indebtedness, provided that, among other things, no default has occurred and is continuing under the Charter Operating credit facilities. The Charter Operating credit facilities also contain customary events of default. Assumed Legacy TWC Indebtedness The Company assumed approximately $22.4 billion in aggregate principal amount of Time Warner Cable, LLC (successor to Legacy TWC outstanding debt obligations, “TWC, LLC”) senior notes and debentures and Time Warner Cable Enterprises LLC (“TWCE”) senior debentures with varying maturities. The Company applied acquisition accounting to Legacy TWC, and as a result, the debt assumed was adjusted to fair value using quoted market values as of the closing date. This fair value adjustment resulted in recognition of a net debt premium of approximately $2.4 billion . TWC, LLC Senior Notes and Debentures The TWC, LLC senior notes and debentures are guaranteed by CCO Holdings, Charter Operating, TWCE and the Subsidiary Guarantors and rank equally with the liens on the collateral securing obligations under the Charter Operating notes and credit facilities. Interest on each series of TWC, LLC senior notes and debentures is payable semi-annually (with the exception of the Sterling Notes, which is payable annually) in arrears. The TWC, LLC indenture contains customary covenants relating to restrictions on the ability of TWC, LLC or any material subsidiary to create liens and on the ability of TWC, LLC and TWCE to consolidate, merge or convey or transfer substantially all of their assets. The TWC, LLC indenture also contains customary events of default. The TWC, LLC senior notes and debentures may be redeemed in whole or in part at any time at TWC, LLC’s option at a redemption price equal to the greater of (i) all of the applicable principal amount being redeemed and (ii) the sum of the present values of the remaining scheduled payments on the applicable TWC, LLC senior notes and debentures discounted to the redemption date on a semi-annual basis (with the exception of the Sterling Notes, which are on an annual basis), at a comparable government bond rate plus a designated number of basis points as further described in the indenture and the applicable note or debenture, plus, in each case, accrued but unpaid interest to, but not including, the redemption date. The Company may offer to redeem all, but not less than all, of the Sterling Notes in the event of certain changes in the tax laws of the U.S. (or any taxing authority in the U.S.). This redemption would be at a redemption price equal to 100% of the principal amount, together with accrued and unpaid interest on the Sterling Notes to, but not including, the redemption date. TWCE Senior Debentures The TWCE senior debentures are guaranteed by CCO Holdings, Charter Operating, TWC, LLC and the Subsidiary Guarantors and rank equally with the liens on the collateral securing obligations under the Charter Operating notes and credit facilities. Interest on each series of TWCE senior debentures is payable semi-annually in arrears. The TWCE senior debentures are not redeemable before maturity. The TWCE indenture contains customary covenants relating to restrictions on the ability of TWCE or any material subsidiary to create liens and on the ability of TWC, LLC and TWCE to consolidate, merge or convey or transfer substantially all of their assets. The TWCE indenture also contains customary events of default. Limitations on Distributions Distributions by the Company’s subsidiaries to a parent company for payment of principal on parent company notes are restricted under the indentures and credit facilities discussed above, unless there is no default under the applicable indenture and credit facilities, and unless each applicable subsidiary’s leverage ratio test is met at the time of such distribution. As of December 31, 2016 , there was no default under any of these indentures or credit facilities and each subsidiary met its applicable leverage ratio tests based on December 31, 2016 financial results. Such distributions would be restricted, however, if any such subsidiary fails to meet these tests at the time of the contemplated distribution. In the past, certain subsidiaries have from time to time failed to meet their leverage ratio test. There can be no assurance that they will satisfy these tests at the time of the contemplated distribution. Distributions by Charter Operating for payment of principal on parent company notes are further restricted by the covenants in its credit facilities. However, without regard to leverage, during any calendar year or any portion thereof during which the borrower is a flow-through entity for tax purposes, and so long as no event of default exists, the borrower may make distributions to the equity interests of the borrower in an amount sufficient to make permitted tax payments. In addition to the limitation on distributions under the various indentures, distributions by the Company’s subsidiaries may be limited by applicable law, including the Delaware Limited Liability Company Act, under which the Company’s subsidiaries may make distributions if they have “surplus” as defined in the act. Liquidity and Future Principal Payments The Company continues to have significant amounts of debt, and its business requires significant cash to fund principal and interest payments on its debt, capital expenditures and ongoing operations. As set forth below, the Company has significant future principal payments. The Company continues to monitor the capital markets, and it expects to undertake refinancing transactions and utilize free cash flow and cash on hand to further extend or reduce the maturities of its principal obligations. The timing and terms of any refinancing transactions will be subject to market conditions. Based upon outstanding indebtedness as of December 31, 2016 , the amortization of term loans, and the maturity dates for all senior and subordinated notes, total future principal payments on the total borrowings under all debt agreements as of December 31, 2016 , are as follows: Year Amount 2017 $ 2,197 2018 2,197 2019 3,546 2020 5,216 2021 5,128 Thereafter 41,752 $ 60,036 |
Common Stock (Notes)
Common Stock (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Common Stock [Abstract] | |
Common Stock | Common Stock Charter’s Class A common stock and Class B common stock are identical except with respect to certain voting, transfer and conversion rights. Holders of Class A common stock are entitled to one vote per share. Charter’s Class B common stock represents the share issued to A/N in connection with the Bright House Transaction. One share of Charter’s Class B common stock has a number of votes reflecting the voting power of the Charter Holdings common units and Charter Holdings convertible preferred units held by A/N as of the applicable record date on an if-converted, if-exchanged basis, and is generally intended to reflect A/N’s economic interests in Charter Holdings. The following table summarizes our shares outstanding for the three years ended December 31, 2016 : Class A Common Stock Class B Common Stock BALANCE, December 31, 2013 106,144,075 — Exercise of stock options 640,342 — Restricted stock issuances, net of cancellations 9,090 — Stock issuances from exercise of warrants 5,243,167 — Restricted stock unit vesting 104,270 — Purchase of treasury stock (141,257 ) — BALANCE, December 31, 2014 111,999,687 — Exercise of stock options 579,173 — Restricted stock issuances, net of cancellations 6,920 — Restricted stock unit vesting 98,831 — Purchase of treasury stock (245,783 ) — BALANCE, December 31, 2015 112,438,828 — Reorganization of common stock (10,771,404 ) — Issuance of shares in TWC Transaction 143,012,155 — Issuance of shares to Liberty Broadband for cash 25,631,339 — Issuance of share to A/N in Bright House Transaction — 1 Exchange of Charter Holdings units held by A/N 1,852,832 — Exercise of stock options 1,014,664 — Restricted stock issuances, net of cancellations 9,811 — Restricted stock unit vesting 1,738,792 — Purchase of treasury stock (6,029,225 ) — BALANCE, December 31, 2016 268,897,792 1 The shares outstanding balances shown above as of and prior to December 31, 2015 represent historical shares outstanding of Legacy Charter before applying the Parent Merger Exchange Ratio. The 10.8 million shares associated with the reorganization of Charter Class A common stock represents the reduction to Legacy Charter Class A common shares outstanding as of the acquisition date as a result of applying the Parent Merger Exchange Ratio. See Note 2. In December 2016, A/N exchanged 1.9 million Charter Holdings common units for Charter Class A common stock. See Note 11. Share Repurchases In 2016, the Company purchased approximately 5.1 million shares of Charter Class A common stock for approximately $1.3 billion pursuant to authorizations by Charter’s board of directors of $3 billion . Accordingly, as of December 31, 2016 and provided Charter’s leverage ratio remains at 4 to 4.5 times and Charter Operating’s leverage remains below 3.5 times, management has authority to cause the Company to purchase an additional $1.7 billion of Charter’s Class A common stock without taking into account shares or units that may be purchased from A/N. Effective November 1, 2016, Charter's board of directors granted authority for a new $750 million of Class A common stock buybacks under the rolling six-month authority without taking into account any Class A common stock purchased prior to November 1. As a result, a portion of the $1.7 billion of authority is under the authority of management to approve up to $750 million for Class A common stock buybacks in any six-month period. During the years ended December 31, 2016 , 2015 and 2014 , the Company withheld 908,066 , 177,696 and 127,725 shares, respectively, of its common stock in payment of $216 million , $38 million and $19 million , respectively, of tax withholdings owed by employees upon vesting of restricted shares and stock options. During the years ended December 31, 2016 and 2015 , Company also withheld 50,503 shares and 44,541 shares, respectively, of its Class A common stock representing the exercise costs owed by employees upon exercise of stock options. In December 31, 2016 and 2015 , Charter’s board of directors approved the retirement of the then currently outstanding treasury stock and those shares were retired as of December 31, 2016 and 2015 . The Company accounted for treasury stock using the cost method and the treasury shares upon repurchase were reflected on the Company’s consolidated balance sheets as a component of total shareholders’ equity. Upon retirement, these treasury shares are allocated between additional paid-in capital and accumulated deficit based on the cost of original issue included in additional paid-in capital. In 2014, the Company issued approximately 5.2 million shares of Charter Class A common stock as a result of exercises by holders who received warrants pursuant to the Joint Plan of Reorganization upon the Company’s emergence from bankruptcy in 2009. The exercises resulted in proceeds to the Company of approximately $90 million . As of December 31, 2016 and 2015, there were no warrants outstanding. |
Noncontrolling Interests (Notes
Noncontrolling Interests (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Noncontrolling Interests [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests Noncontrolling interests represents consolidated subsidiaries of which the Company owns less than 100% . The Company is a holding company whose principal asset is a controlling equity interest in Charter Holdings, the indirect owner of the Company’s cable systems. Noncontrolling interests on the Company’s balance sheet primarily includes A/N’s equity interests in Charter Holdings, which is comprised of a common ownership interest and a convertible preferred ownership interest. In connection with the closing of the Bright House Transaction, Charter Holdings issued approximately 31.0 million common units to A/N, which are exchangeable at any time into either Charter Class A common stock on a one-for-one basis, or, at Charter’s option, cash, based on the then current market price of Charter Class A common stock. Net income (loss) of Charter Holdings attributable to A/N’s common noncontrolling interest for financial reporting purposes is based on the weighted average effective common ownership interest of approximately 10% which was $129 million for the year ended December 31, 2016 . Charter Holdings distributed $3 million to A/N as a pro rata tax distribution on its common units during the year ended December 31, 2016 . Charter Holdings also issued approximately 25 million convertible preferred units to A/N with a face amount of $2.5 billion that pay a 6% annual preferred dividend. The 6% annual preferred dividend is paid quarterly in cash, if and when declared, provided that, if dividends are suspended at any time, the dividends will accrue until they are paid. Net income (loss) of Charter Holdings attributable to the preferred noncontrolling interest for financial reporting purposes is based on the preferred dividend which was $93 million for the year ended December 31, 2016 . Each convertible preferred unit is convertible into either 0.37334 of a Charter Holdings common unit (if then held by A/N) or 0.37334 of a share of Charter Class A common stock (if then held by a third party), representing a conversion price of $267.85 per unit, based on a conversion feature as defined in the Limited Liability Company Agreement of Charter Holdings. After May 18, 2021, Charter may redeem the convertible preferred units if the price of Charter Class A common stock exceeds 130% of the conversion price. These Charter Holdings common and convertible preferred units held by A/N are recorded in noncontrolling interests as permanent equity in the consolidated balance sheet. The common units and convertible preferred units issued to A/N as consideration for the Bright House Transaction were initially measured at their fair value of $7.0 billion and $3.2 billion , respectively, in accordance with acquisition accounting. However, upon formation of Charter Holdings and subsequent to the acquisition, the carrying amounts of the controlling and noncontrolling interests were adjusted to reflect the relative effective common ownership interest in Charter Holdings. This resulted in an increase to noncontrolling interest of approximately $589 million and a corresponding decrease to additional paid-in capital of $589 million , net of $225 million of deferred income taxes, for the year ended December 31, 2016 . In December 2016, Charter and A/N entered into a letter agreement (the "Letter Agreement") pursuant to which A/N exchanged 1.9 million Charter Holdings common units held by A/N for shares of Charter Class A common stock for an aggregate purchase price of $537 million . The common units exchanged had a net carrying value in noncontrolling interest of approximately $460 million . The exchange of A/N common units resulted in a tax step-up of the assets of Charter Holdings which is further discussed in Note 17. The Letter Agreement also requires A/N to sell to Charter or to Charter Holdings, on a monthly basis, a number of shares of Charter Class A common stock or Charter Holdings common units that represents a pro rata participation by A/N and its affiliates in any repurchases of shares of Charter Class A common stock from persons other than A/N effected by Charter during the immediately preceding calendar month, at a purchase price equal to the average price paid by Charter for the shares repurchased from persons other than A/N during such immediately preceding calendar month. Pursuant to the Letter Agreement, Charter Holdings purchased from A/N 752,767 Charter Holdings common units at a price per unit of $289.83 , or $218 million . The common units purchased had a net carrying value in noncontrolling interest of approximately $187 million . As of December 31, 2016 , A/N held 28.4 million Charter Holdings common units. |
Accounting for Derivative Instr
Accounting for Derivative Instruments and Hedging Activities (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting for Derivative Instruments and Hedging Activities [Abstract] | |
Accounting for Derivative Instruments and Hedging Activities | Accounting for Derivative Instruments and Hedging Activities The Company uses derivative instruments to manage interest rate risk on variable debt and foreign exchange risk on the Sterling Notes, and does not hold or issue derivative instruments for speculative trading purposes. Interest rate derivative instruments are used to manage interest costs and to reduce the Company’s exposure to increases in floating interest rates. The Company manages its exposure to fluctuations in interest rates by maintaining a mix of fixed and variable rate debt. Using interest rate derivative instruments, the Company agrees to exchange, at specified intervals through 2017, the difference between fixed and variable interest amounts calculated by reference to agreed-upon notional principal amounts. As of December 31, 2016 and 2015 , the Company had $850 million and $1.1 billion , respectively, in notional amounts of interest rate derivative instruments outstanding. The notional amounts of interest rate derivative instruments do not represent amounts exchanged by the parties and, thus, are not a measure of exposure to credit loss. The amounts exchanged were determined by reference to the notional amount and the other terms of the contracts. Upon closing of the TWC Transaction, the Company acquired interest rate derivative instrument assets with a fair value of $85 million (excluding accrued interest), which were terminated and settled with their respective counterparties in the second quarter of 2016 with an $88 million cash payment to the Company of which $14 million was for interest accrued through the date of termination. The termination resulted in an $11 million loss for the year ended December 31, 2016 which was recorded in gain (loss) on financial instruments, net in the consolidated statements of operations. Upon closing of the TWC Transaction, the Company assumed cross-currency derivative instrument liabilities with a fair value of $72 million (excluding accrued interest). Cross-currency derivative instruments are used to effectively convert £1.275 billion aggregate principal amount of fixed-rate British pound sterling denominated debt, including annual interest payments and the payment of principal at maturity, to fixed-rate U.S. dollar denominated debt. The cross-currency swaps have maturities of June 2031 and July 2042. The Company is required to post collateral on the cross-currency derivative instruments when the derivative contracts are in a liability position. In May 2016, the Company entered into a collateral holiday agreement for 80% of both the 2031 and 2042 cross-currency swaps, which eliminates the requirement to post collateral for three years. The effect of derivative instruments on the consolidated balance sheets is presented in the table below: December 31, 2016 2015 Interest Rate Derivatives Accrued interest $ 5 $ 3 Other long-term liabilities $ — $ 10 Accumulated other comprehensive loss $ (5 ) $ (13 ) Cross-Currency Derivatives Other long-term liabilities $ 251 $ — The Company’s interest rate and cross-currency derivative instruments are not designated as hedges and are marked to fair value each period, with the impact recorded as a gain or loss on financial instruments, net in the consolidated statements of operations. While these derivative instruments are not designated as cash flow hedges for accounting purposes, management continues to believe such instruments are correlated with the respective debt, thus managing associated risk. The effect of financial instruments on the consolidated statements of operations is presented in the table below. Year Ended December 31, 2016 2015 2014 Gain (Loss) on Financial Instruments, Net: Change in fair value of interest rate derivative instruments $ 8 $ 5 $ 12 Change in fair value of cross-currency derivative instruments (179 ) — — Remeasurement of Sterling Notes to U.S. dollars 279 — — Loss on termination of interest rate derivative instruments (11 ) — — Loss reclassified from accumulated other comprehensive loss due to discontinuance of hedge accounting (8 ) (9 ) (19 ) $ 89 $ (4 ) $ (7 ) |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Fair Value Measurements The accounting guidance establishes a three-level hierarchy for disclosure of fair value measurements, based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date, as follows: • Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement. Financial Assets and Liabilities The Company has estimated the fair value of its financial instruments as of December 31, 2016 and 2015 using available market information or other appropriate valuation methodologies. Considerable judgment, however, is required in interpreting market data to develop the estimates of fair value. Accordingly, the estimates presented in the accompanying consolidated financial statements are not necessarily indicative of the amounts the Company would realize in a current market exchange. The carrying amounts of cash and cash equivalents, receivables, payables and other current assets and liabilities approximate fair value because of the short maturity of those instruments. The Company’s cash and cash equivalents as of December 31, 2016 and restricted cash and cash equivalents as of December 31, 2015 were primarily invested in money market funds and 90 day or less commercial paper. The money market funds are valued at the closing price reported by the fund sponsor from an actively traded exchange and commercial paper is valued at cost plus the accretion of the discount on a yield to maturity basis, which approximated fair value. The money market funds and commercial paper potentially subject the Company to concentration of credit risk. The amount invested within any one financial instrument did not exceed $250 million and $1.5 billion as of December 31, 2016 and December 31, 2015, respectively. As of December 31, 2016 and 2015, there were no significant concentrations of financial instruments in a single investee, industry or geographic location. Interest rate derivative instruments are valued using a present value calculation based on an implied forward LIBOR curve (adjusted for Charter Operating’s and counterparties’ credit risk). The weighted average pay rate for the Company’s currently effective interest rate derivative instruments was 1.59% and 1.61% at December 31, 2016 and 2015 , respectively (exclusive of applicable spreads). The Company’s financial instruments that are accounted for at fair value on a recurring basis are presented in the table below. December 31, 2016 December 31, 2015 Level 1 Level 2 Level 1 Level 2 Assets Money market funds $ 1,205 $ — $ 14,330 $ — Commercial paper $ — $ — $ — $ 7,934 Liabilities Interest rate derivative instruments $ — $ 5 $ — $ 13 Cross-currency derivative instruments $ — $ 251 $ — $ — A summary of the carrying value and fair value of the Company’s debt at December 31, 2016 and 2015 is as follows: December 31, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Debt Senior notes and debentures $ 52,933 $ 55,203 $ 28,433 $ 28,744 Credit facilities $ 8,814 $ 8,943 $ 7,290 $ 7,274 The estimated fair value of the Company’s senior notes and debentures as of December 31, 2016 and 2015 is based on quoted market prices in active markets and is classified within Level 1 of the valuation hierarchy, while the estimated fair value of the Company’s credit facilities is based on quoted market prices in inactive markets and is classified within Level 2. Non-financial Assets and Liabilities The Company’s nonfinancial assets such as equity-method investments, franchises, property, plant, and equipment, and other intangible assets are not measured at fair value on a recurring basis; however, they are subject to fair value adjustments in certain circumstances, such as upon a business combination and when there is evidence that an impairment may exist. No impairments were recorded in 2016 , 2015 and 2014 . Upon closing of the Transactions, all of Legacy TWC and Legacy Bright House nonfinancial assets and liabilities were recorded at fair values. See Note 2. |
Operating Costs and Expenses (N
Operating Costs and Expenses (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Operating Costs and Expenses [Abstract] | |
Operating Costs and Expenses | Operating Costs and Expenses Operating costs and expenses, exclusive of items shown separately in the consolidated statements of operations, consist of the following for the periods presented: Year Ended December 31, 2016 2015 2014 Programming $ 7,034 $ 2,678 $ 2,459 Regulatory, connectivity and produced content 1,467 435 428 Costs to service customers 5,173 1,705 1,679 Marketing 1,699 628 617 Transition costs 156 72 14 Other 3,126 908 776 $ 18,655 $ 6,426 $ 5,973 Programming costs consist primarily of costs paid to programmers for basic, premium, digital, video on demand, and pay-per-view programming. Regulatory, connectivity and produced content costs represent payments to franchise and regulatory authorities, costs directly related to providing video, Internet and voice services as well as payments for sports, local and news content produced by the Company. Included in regulatory, connectivity and produced content costs is content acquisition costs for the Los Angeles Lakers’ basketball games and Los Angeles Dodgers’ baseball games which are recorded as games are exhibited over the applicable season. Costs to service customers include costs related to field operations, network operations and customer care for the Company’s residential and small and medium business customers, including internal and third-party labor for installations, service and repairs, maintenance, billing and collection, occupancy and vehicle costs. Marketing costs represent the costs of marketing to current and potential commercial and residential customers including labor costs. Transition costs represent incremental costs incurred to integrate the TWC and Bright House operations and to increase the scale of the Company’s business as a result of the Transactions. See Note 2. Other includes bad debt expense, corporate overhead, advertising sales expenses, indirect costs associated with the Company’s enterprise business customers and regional sports and news networks, property tax expense and insurance expense and stock compensation expense, among others. |
Other Operating Expenses, Net (
Other Operating Expenses, Net (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Other Operating Expenses, Net [Abstract] | |
Other Operating Expenses, Net | Other Operating Expenses, Net Other operating expenses, net consist of the following for the years presented: Year Ended December 31, 2016 2015 2014 Merger and restructuring costs $ 970 $ 70 $ 38 Other pension benefits (899 ) — — Special charges, net 17 15 14 (Gain) loss on sale of assets, net (2 ) 4 10 $ 86 $ 89 $ 62 Merger and restructuring costs Merger and restructuring costs represent costs incurred in connection with merger and acquisition transactions and related restructuring, such as advisory, legal and accounting fees, employee retention costs, employee termination costs related to the Transactions and other exit costs. The Company expects to incur additional merger and restructuring costs in connection with the Transactions. Changes in accruals for merger and restructuring costs from January 1, 2016 through December 31, 2016 are presented below: Employee Retention Costs Employee Termination Costs Transaction and Advisory Costs Other Costs Total Liability, December 31, 2015 $ — $ — $ 33 $ — $ 33 Liability assumed in the Transactions 80 9 3 — 92 Costs incurred 26 337 318 41 722 Cash paid (99 ) (102 ) (329 ) (41 ) (571 ) Remaining liability, December 31, 2016 $ 7 $ 244 $ 25 $ — $ 276 In addition to the costs indicated above, the Company recorded $248 million of expense related to accelerated vesting of equity awards of terminated employees for the year ended December 31, 2016 . Other pension benefits Other pension benefits include the pension curtailment gain, remeasurement gain, expected return on plan assets and interest cost components of net periodic pension benefit. See Note 21. Special charges, net Special charges, net primarily includes employee termination costs not related to the Transactions and net amounts of litigation settlements. (Gain) loss on sale of assets, net (Gain) loss on sale of assets, net represents the net (gain) loss recognized on the sales and disposals of fixed assets and cable systems. |
Stock Compensation Plans (Notes
Stock Compensation Plans (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Stock Compensation Plans [Abstract] | |
Stock Compensation Plans | Stock Compensation Plans Legacy Charter’s 2009 Stock Incentive Plan (assumed by Charter upon closing of the Transactions) provides for grants of nonqualified stock options, incentive stock options, stock appreciation rights, dividend equivalent rights, performance units and performance shares, share awards, phantom stock, restricted stock units and restricted stock. Directors, officers and other employees of the Company and its subsidiaries, as well as others performing consulting services for the Company, are eligible for grants under the 2009 Stock Incentive Plan. In April 2016, Charter’s board of directors and stockholders approved an additional 9 million shares of Charter Class A common stock (or units convertible into Charter Class A common stock) under the 2009 Stock Incentive Plan which now allows for the issuance of up to 21 million shares of Charter Class A common stock (or units convertible into Charter Class A common stock). At the closing of the TWC Transaction, Legacy TWC employee equity awards were converted into Charter Class A common stock equity awards on the same terms and conditions as were applicable under the Legacy TWC equity awards, except that the number of shares covered by each award and the option exercise prices were adjusted for the Stock Award Exchange Ratio (as defined in the Merger Agreement) such that the intrinsic value of the Converted TWC Awards was approximately equal to that of the original awards at the closing of the Transactions. The Converted TWC Awards represented approximately 4.2 million Charter restricted stock units and 0.8 million Charter stock options ( 0.5 million of which were exercisable at the time of conversion) and continue to be subject to the terms of the Legacy TWC equity plans. The Converted TWC Awards were measured at their fair value as of the closing of the TWC Transaction. Of that fair value, $514 million related to Legacy TWC employee pre-combination service and was treated as consideration transferred in the TWC Transaction (see Note 2), while $539 million relates to post-combination service and is being amortized to stock compensation expense over the remaining vesting period of the awards. The fair values of the Converted TWC Awards were based on a valuation using assumptions developed by management and other information compiled by management including, but not limited to, historical volatility and exercise trends of Legacy Charter and Legacy TWC. The Parent Merger Exchange Ratio was also applied to outstanding Legacy Charter equity awards and option exercise prices; however, the terms of the equity awards did not change as a result of the Transactions. Legacy Charter Stock options and restricted stock units cliff vest upon the three year anniversary of each grant. Stock options generally expire ten years from the grant date and restricted stock units have no voting rights. Certain stock options and restricted stock units vest based on achievement of stock price hurdles. Restricted stock generally vests annually over one year beginning from the date of grant. Legacy TWC restricted stock units that were converted into Charter restricted stock units generally vest 50% on each of the third and fourth anniversary of the grant date. Legacy TWC stock options that were converted into Charter stock options vest ratably over a four -year period and expire ten years from the grant date. As of December 31, 2016 , total unrecognized compensation remaining to be recognized in future periods totaled $262 million for stock options, $1 million for restricted stock and $279 million for restricted stock units and the weighted average period over which they are expected to be recognized is 4 years for stock options, 4 months for restricted stock and 3 years for restricted stock units. The Company recorded $244 million , $78 million and $55 million of stock compensation expense for the years ended December 31, 2016 , 2015 and 2014 , respectively, which is included in operating costs and expenses. The Company also recorded $248 million of expense for the year ended December 31, 2016 related to accelerated vesting of equity awards of terminated employees which is recorded in merger and restructuring costs. A summary of the activity for the Company’s stock options (after applying the Parent Merger Exchange Ratio) for the years ended December 31, 2016 , 2015 and 2014 , is as follows (shares in thousands, except per share data): Year Ended December 31, 2016 2015 2014 Shares Weighted Average Exercise Price Aggregate Intrinsic Value Shares Weighted Average Exercise Price Aggregate Intrinsic Value Shares Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding, beginning of period 3,923 $ 122.03 3,336 $ 95.44 2,841 $ 66.20 Granted 5,999 $ 218.91 1,176 $ 177.14 1,116 $ 151.24 Converted TWC Awards 839 $ 86.46 — $ — — $ — Exercised (1,015 ) $ 96.33 $ 146 (524 ) $ 72.27 $ 68 (579 ) $ 58.07 $ 55 Canceled (154 ) $ 173.98 (65 ) $ 155.23 (42 ) $ 115.65 Outstanding, end of period 9,592 $ 181.39 $ 1,022 3,923 $ 122.03 3,336 $ 95.44 Weighted average remaining contractual life 8 years 7 years 7 years Options exercisable, end of period 1,665 $ 71.71 $ 360 1,224 $ 61.88 1,193 $ 61.76 Options expected to vest, end of period 7,686 $ 205.49 $ 634 Weighted average fair value of options granted $ 47.42 $ 66.20 $ 60.92 A summary of the activity for the Company’s restricted stock (after applying the Parent Merger Exchange Ratio) for the years ended December 31, 2016 , 2015 and 2014 , is as follows (shares in thousands, except per share data): Year Ended December 31, 2016 2015 2014 Shares Weighted Average Grant Price Shares Weighted Average Grant Price Shares Weighted Average Grant Price Outstanding, beginning of period 197 $ 65.79 390 $ 63.30 590 $ 62.09 Granted 10 $ 231.83 6 $ 201.34 8 $ 153.25 Vested (197 ) $ 65.79 (199 ) $ 65.16 (208 ) $ 63.43 Canceled — $ — — $ — — $ — Outstanding, end of period 10 $ 231.81 197 $ 65.79 390 $ 63.30 A summary of the activity for the Company’s restricted stock units (after applying the Parent Merger Exchange Ratio) for the years ended December 31, 2016 , 2015 and 2014 , is as follows (shares in thousands, except per share data): Year Ended December 31, 2016 2015 2014 Shares Weighted Average Grant Price Shares Weighted Average Grant Price Shares Weighted Average Grant Price Outstanding, beginning of period 337 $ 150.96 294 $ 115.01 260 $ 82.64 Granted 895 $ 213.09 148 $ 179.17 139 $ 151.00 Converted TWC Awards 4,162 $ 224.90 — $ — — $ — Vested (1,739 ) $ 219.60 (90 ) $ 78.65 (94 ) $ 77.67 Canceled (342 ) $ 219.91 (15 ) $ 155.43 (11 ) $ 124.44 Outstanding, end of period 3,313 $ 192.41 337 $ 150.96 294 $ 115.01 |
Income Taxes (Notes)
Income Taxes (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | Income Taxes Substantially all of the Company’s operations are held through Charter Holdings and its direct and indirect subsidiaries. Charter Holdings and the majority of its subsidiaries are generally limited liability companies that are not subject to income tax. However, certain of these limited liability companies are subject to state income tax. In addition, the subsidiaries that are corporations are subject to income tax. Generally, the taxable income, gains, losses, deductions and credits of Charter Holdings are passed through to its members, Charter and A/N. Charter is responsible for its share of taxable income or loss of Charter Holdings allocated to it in accordance with the LLC Agreement and partnership tax rules and regulations. As a result, Charter's primary deferred tax component recorded in the consolidated balance sheets relates to its excess financial reporting outside basis, excluding amounts attributable to nondeductible goodwill, over Charter's tax basis in the investment in Charter Holdings. Charter Holdings, the indirect owner of the Company’s cable systems, generally allocates its taxable income, gains, losses, deductions and credits proportionately according to the members’ respective ownership interests, except for special allocations required under Section 704(c) of the Internal Revenue Code and the Treasury Regulations (“Section 704(c)”). Pursuant to Section 704(c) and the LLC Agreement, each item of income, gain, loss and deduction with respect to any property contributed to the capital of the partnership shall, solely for tax purposes, be allocated among the members so as to take into account any variation between the adjusted basis of such property to the partnership for U.S. federal income tax purposes and its initial gross asset value using the “traditional method” as described in the Treasury Regulations. Income Tax Benefit (Expense) For the years ended December 31, 2016 , 2015 , and 2014 , the Company recorded deferred income tax benefit (expense) as shown below. The tax provision in future periods will vary based on current and future temporary differences, as well as future operating results. Year Ended December 31, 2016 2015 2014 Current expense: Federal income taxes $ (4 ) $ (1 ) $ (1 ) State income taxes (29 ) (4 ) (2 ) Current income tax expense (33 ) (5 ) (3 ) Deferred benefit (expense): Federal income taxes 2,549 53 (192 ) State income taxes 409 12 (41 ) Deferred income tax benefit (expense) 2,958 65 (233 ) Income tax benefit (expense) $ 2,925 $ 60 $ (236 ) Income tax benefit for the year ended December 31, 2016 was recognized primarily through the reversal of approximately $3.3 billion of valuation allowance (see further discussion below), net of tax effect of permanent differences, a decrease to the anticipated blended state rate applied to Legacy Charter deferred tax balances as a result of the Transactions, a change in a state tax law, and prior to the closing of the Transactions, increases (decreases) in deferred tax liabilities related to Charter’s franchises which are characterized as indefinite-lived for book financial reporting purposes. Prior to July 2, 2015, Charter Communications Holding Company, LLC ("Charter Holdco") was treated as a partnership for tax purposes. Effective on July 2, 2015, Charter elected to treat two of its wholly owned subsidiaries as disregarded entities for federal and state income tax purposes (the “Election”). The subsidiaries that made the Election were two of the three partners in Charter Holdco. This Election resulted in a deemed liquidation of Charter Holdco into Charter solely for federal and state income tax purposes, and resulted in a net increase of $638 million to the tax basis of Charter Holdco’s amortizable and depreciable assets. After the Election, all taxable income, gains, losses, deductions and credits of Charter Holdco and its indirect limited liability company subsidiaries were treated as income of Charter. In addition, the indirect subsidiaries of Charter Holdco that are corporations joined the Charter consolidated group. The impact of the Election to the Charter income tax provision, net of valuation allowance, was $187 million of income tax benefit recorded as a discrete tax event during the year ended December 31, 2015. The Company’s effective tax rate differs from that derived by applying the applicable federal income tax rate of 35% for the years ended December 31, 2016 , 2015 , and 2014 , respectively, as follows: Year Ended December 31, 2016 2015 2014 Statutory federal income taxes $ (288 ) $ 116 $ (18 ) Statutory state income taxes, net (36 ) (4 ) (2 ) Nondeductible expenses (62 ) (12 ) (10 ) Net income attributable to noncontrolling interest 78 — — Change in valuation allowance 3,171 (250 ) (203 ) Organizational restructuring — 187 — Federal tax credits 16 18 — State rate changes 65 4 (3 ) Other (19 ) 1 — Income tax benefit (expense) $ 2,925 $ 60 $ (236 ) The change in the valuation allowance above differs from the change between the beginning and ending deferred tax position due to a change in deferred tax assets and the establishment of a valuation allowance on the net operating losses which results in no impact to the consolidated statements of operations. Deferred Tax Assets (Liabilities) The tax effects of these temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2016 and 2015 are presented below. December 31, 2016 2015 Deferred tax assets: Loss carryforwards $ 4,127 $ 4,247 Goodwill — 315 Other intangibles — 211 Accrued and other 243 227 Total gross deferred tax assets 4,370 5,000 Less: valuation allowance (200 ) (3,186 ) Deferred tax assets $ 4,170 $ 1,814 Deferred tax liabilities: Investment in partnership $ (30,832 ) $ — Indefinite-lived intangibles — (1,582 ) Property, plant and equipment — (1,822 ) Accrued and other (3 ) — Deferred tax liabilities (30,835 ) (3,404 ) Net deferred tax liabilities $ (26,665 ) $ (1,590 ) Net deferred tax liabilities included approximately $25 million and $28 million at December 31, 2016 and 2015 , respectively, relating to certain indirect subsidiaries that file separate income tax returns. Valuation Allowance In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. In evaluating the need for a valuation allowance, management takes into account various factors, including the expected level of future taxable income, available tax planning strategies and reversals of existing taxable temporary differences. Due to Legacy Charter’s history of losses, Legacy Charter was historically unable to assume future taxable income in its analysis and accordingly valuation allowances were established against the deferred tax assets, net of deferred tax liabilities, from definite-lived assets for book accounting purposes. However, as a result of the TWC Transaction, deferred tax liabilities resulting from the book fair value adjustment increased significantly and future taxable income that will result from the reversal of existing temporary differences for which deferred tax liabilities are recognized, is sufficient to conclude it is more likely than not that the Company will realize substantially all of its deferred tax assets. As a result, Charter reversed approximately $3.3 billion of its valuation allowance and recognized a corresponding income tax benefit in the consolidated statements of operations for the year ended December 31, 2016 . Approximately $145 million of valuation allowance associated with federal tax net operating loss carryforwards acquired in the TWC Transaction and approximately $55 million of valuation allowance associated with state tax loss carryforwards and other miscellaneous deferred tax assets remains on the December 31, 2016 consolidated balance sheet. Net Operating Loss Carryforwards As of December 31, 2016 , Charter had approximately $11.2 billion of federal tax net operating loss carryforwards resulting in a gross deferred tax asset of approximately $3.9 billion . Federal tax net operating loss carryforwards expire in the years 2018 through 2035. These losses resulted from the operations of Charter Holdco and its subsidiaries. In addition, as of December 31, 2016 , Charter had state tax net operating loss carryforwards, resulting in a gross deferred tax asset (net of federal tax benefit) of approximately $304 million . State tax net operating loss carryforwards generally expire in the years 2017 through 2035. Upon closing of the TWC Transaction, Charter experienced a third “ownership change” as defined in Section 382 of the Internal Revenue Code; resulting in a third set of limitations on Charter’s use of its existing federal and state net operating losses, capital losses, and tax credit carryforwards. Both the first ownership change limitations that applied as a result of Legacy Charter’s emergence from bankruptcy in 2009 and second ownership change limitations that applied as a result of Liberty Media Corporation’s purchase in 2013 of a 27% beneficial interest in Legacy Charter will also continue to apply. As of December 31, 2016 , all of Charter's federal tax loss carryforwards are subject to Section 382 and other restrictions. Pursuant to these restrictions, Charter estimates that approximately $5.4 billion in 2017, $3.8 billion in 2018, $432 million in 2019 and an additional $226 million annually over each of the next five years of federal tax loss carryforwards should become unrestricted and available for Charter’s use. An additional $415 million is currently subject to a valuation allowance. Since the limitation amounts accumulate for future use to the extent they are not utilized in any given year, Charter believes its loss carryforwards should become fully available to offset future taxable income. Charter’s state loss carryforwards are subject to similar, but varying, limitations on their future use. If Charter was to experience another “ownership change” in the future, its ability to use its loss carryforwards could be subject to further limitations. Tax Receivable Agreement Under the LLC Agreement, A/N has rights to: (1) convert at any time some or all of its preferred units in Charter Holdings for common units in Charter Holdings, and (2) exchange at any time some or all of its common units in Charter Holdings for Charter’s Class A common stock or cash, at Charter’s option. Pursuant to a Tax Receivable Agreement ("TRA") between Charter and A/N, Charter must pay to A/N 50% of the tax benefit when realized by Charter from the step-up in tax basis resulting from any future exchange or sale of the preferred and common units. Charter did not record a liability for this obligation as of the acquisition date since the tax benefit is dependent on uncertain future events that are outside of Charter’s control, such as the timing of a conversion or exchange. A future exchange or sale is not based on a fixed and determinable date and the exchange or sale is not certain to occur. If all of A/N's partnership units were to be exchanged or sold in the future, the undiscounted value of the obligation is currently estimated to be in the range of zero to $3 billion depending on measurement of the tax step-up in the future and Charter’s ability to realize the tax benefit in the periods following the exchange or sale. Factors impacting these calculations include, but are not limited to, the fair value of the equity at the time of the exchange and the effective tax rates when the benefits are realized. In connection with the Letter Agreement between Charter and A/N whereby 1.9 million Charter Holdings common units held by A/N were exchanged for shares of Charter Class A common stock for an aggregate purchase price of $537 million , an immediate step-up of $580 million in the tax basis of the assets of Charter Holdings occurred. As it relates to the exchange and tax step-up, a net deferred tax asset of approximately $82 million was recorded and a resulting TRA liability owed to A/N of $137 million which, as a transaction with a shareholder, was recorded directly to additional paid in capital. The TRA liability is recorded on an iterative, undiscounted basis and included in other long-term liabilities on the consolidated balance sheets as of December 31, 2016. Uncertain Tax Positions In connection with the TWC Transaction, the Company assumed $181 million of gross unrecognized tax benefits, exclusive of interest and penalties, which are recorded within other long-term liabilities. The net amount of the unrecognized tax benefits that could impact the effective tax rate is $154 million . The Company has determined that it is reasonably possible that its existing reserve for uncertain tax positions as of December 31, 2016 could decrease by $35 million during the year ended December 31, 2017 related to various ongoing audits, settlement discussions and expiration of statute of limitations with various state and local agencies; however, various events could cause the Company’s current expectations to change in the future. These uncertain tax positions, if ever recognized in the financial statements, would be recorded in the consolidated statements of operations as part of the income tax provision. A reconciliation of the beginning and ending amount of unrecognized tax benefits, exclusive of interest and penalties, included in other long-term liabilities on the accompanying consolidated balance sheets of the Company is as follows: BALANCE, December 31, 2014 $ — Additions on current year tax positions 5 BALANCE, December 31, 2015 5 Additions on prior year tax positions 1 Additions on current year tax positions 7 Additions on tax positions assumed in the TWC Transaction 181 Reductions on settlements and expirations with taxing authorities (22 ) BALANCE, December 31, 2016 $ 172 No tax years for Charter, Charter Holdings, or Charter Communications Holding Company, LLC for income tax purposes, are currently under examination by the IRS. Legacy Charter’s tax years ending 2013 through the short period return dated May 17, 2016 remain subject to examination and assessment. Years prior to 2013 remain open solely for purposes of examination of Legacy Charter’s loss and credit carryforwards. The IRS is currently examining Legacy TWC’s income tax returns for 2011 and 2012. Legacy TWC’s tax years ending 2013 through 2015 remain subject to examination and assessment. Prior to Legacy TWC’s separation from Time Warner Inc. (“Time Warner”) in March 2009 (the “Separation”), Legacy TWC was included in the consolidated U.S. federal and certain state income tax returns of Time Warner. The IRS is currently examining Time Warner’s 2008 through 2010 income tax returns. Time Warner’s income tax returns for 2005 to 2007, which are periods prior to the Separation, were settled with the exception of an immaterial item that has been referred to the IRS Appeals Division. The Company does not anticipate that these examinations will have a material impact on the Company’s consolidated financial position or results of operations. In addition, the Company is also subject to ongoing examinations of the Company’s tax returns by state and local tax authorities for various periods. Activity related to these state and local examinations did not have a material impact on the Company’s consolidated financial position or results of operations in 2016 , nor does the Company anticipate a material impact in the future. |
Earnings (Loss) Per Share (Note
Earnings (Loss) Per Share (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings (Loss) Per Share [Abstract] | |
Earnings (Loss) per Share | Earnings (Loss) Per Share Basic earnings (loss) per common share is computed by dividing net income (loss) attributable to Charter shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share considers the impact of potentially dilutive securities using the treasury stock and if-converted methods and is based on the weighted average number of shares used for the basic earnings per share calculation, adjusted for the dilutive effect of stock options, restricted stock, restricted stock units, equity awards with market conditions and Charter Holdings convertible preferred units and common units. Weighted average number of shares outstanding for all periods presented has been recast to reflect the application of the Parent Merger Exchange Ratio. Basic loss per common share equaled diluted loss per common share for the years ended December 31, 2015 and 2014 because the Company incurred a net loss during those periods. The following is the computation of diluted earnings per common share for the year ended December 31, 2016 . 2016 Numerator: Net income attributable to Charter shareholders $ 3,522 Effect of dilutive securities: Charter Holdings common units 129 Charter Holdings convertible preferred units 93 Net income attributable to Charter shareholders after assumed conversions $ 3,744 Denominator: Weighted average common shares outstanding, basic 206,539,100 Effect of dilutive securities: Assumed exercise or issuance of shares relating to stock plans 3,088,871 Weighted average Charter Holdings common units 19,333,227 Weighted average Charter Holdings convertible preferred units 5,830,241 Weighted average common shares outstanding, diluted 234,791,439 Basic earnings per common share attributable to Charter shareholders $ 17.05 Diluted earnings per common share attributable to Charter shareholders $ 15.94 |
Related Party Transactions (Not
Related Party Transactions (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The following sets forth certain transactions in which the Company and the directors, executive officers, and affiliates of the Company are involved or, in the case of the management arrangements, subsidiaries that are debt issuers that pay certain of their parent companies for services. Charter is a party to management arrangements with Spectrum Management Holding Company, LLC ("Spectrum Management") and certain of their subsidiaries. Under these agreements, Charter, Spectrum Management and Charter Holdco provide management services for the cable systems owned or operated by their subsidiaries. Costs associated with providing these services are charged directly to the Company’s operating subsidiaries. All other costs incurred on behalf of Charter’s operating subsidiaries are considered a part of the management fee. These costs are recorded as a component of operating costs and expenses, in the accompanying consolidated financial statements. The management fee charged to the Company’s operating subsidiaries approximated the expenses incurred by Spectrum Management, Charter Holdco and Charter on behalf of the Company’s operating subsidiaries in 2016 , 2015 and 2014 . Liberty Broadband and A/N On May 23, 2015, in connection with the execution of the Merger Agreement and the amendment of the Contribution Agreement, Charter entered into the Amended and Restated Stockholders Agreement with Liberty Broadband, A/N and Legacy Charter (the “Stockholders Agreement”) and the Charter Holdings Limited Liability Operating Agreement (“LLC Agreement”) with Liberty Broadband and A/N. As of the closing of the Merger Agreement and the Contribution Agreement on May 18, 2016, the Stockholders Agreement replaced Legacy Charter’s existing stockholders agreement with Liberty Broadband, dated September 29, 2014, and superseded the amended and restated stockholders agreement among Legacy Charter, Charter, Liberty Broadband and A/N, dated March 31, 2015. Under the terms of the Stockholders Agreement, the number of Charter’s directors is fixed at 13, and includes its chief executive officer. Upon the closing of the Bright House Transaction, two designees selected by A/N became members of the board of directors of Charter and three designees selected by Liberty Broadband continued as members of the board of directors of Charter. The remaining eight directors are not affiliated with either A/N or Liberty Broadband. Each of A/N and Liberty Broadband is entitled to nominate at least one director to each of the committees of Charter’s board of directors, subject to applicable stock exchange listing rules and certain specified voting or equity ownership thresholds for each of A/N and Liberty Broadband, and provided that the Nominating and Corporate Governance Committee and the Compensation and Benefit Committee each have at least a majority of directors independent from A/N, Liberty Broadband and the Company (referred to as the “unaffiliated directors”). Each of the Nominating and Corporate Governance Committee and the Compensation and Benefits Committee is currently comprised of three unaffiliated directors and one designee of each of A/N and Liberty Broadband. A/N and Liberty Broadband also have certain other committee designation and other governance rights. Upon the closing of the Bright House Transaction, Mr. Thomas Rutledge, the Company’s Chief Executive Officer (“CEO”), became the chairman of the board of Charter. In December 2016, the Company and A/N entered into the Letter Agreement in which A/N exchanged Charter Holdings common units for shares of Charter Class A common stock and the Company purchased from A/N Charter Holdings common units. The Letter Agreement also requires pro rata participation by A/N and its affiliates in any repurchases of shares of Charter Class A common stock until A/N has sold shares or units totaling $537 million ( $218 million has already been completed), subject to Liberty Broadband's right of first refusal to purchase shares or units from A/N upon A/N's sale to any third party, excluding the Company. See Note 11 for more information. Pursuant to the TRA between Charter and A/N, Charter must pay to A/N 50% of the tax benefit when realized by Charter from the step-up in tax basis resulting from any future exchange or sale of the preferred and common units. See Note 17 for more information. The Company is aware that Dr. John Malone may be deemed to have a 36.4% voting interest in Liberty Interactive and is Chairman of the board of directors, an executive officer position, of Liberty Interactive. Liberty Interactive owns 38.3% of the common stock of HSN, Inc. (“HSN”) and has the right to elect 20% of the board members of HSN. Liberty Interactive wholly owns QVC, Inc. (“QVC”). The Company has programming relationships with HSN and QVC which pre-date the transaction with Liberty Media. For the years ended December 31, 2016 , 2015 and 2014 , the Company recorded payments in aggregate of approximately $53 million , $17 million and $14 million , respectively, from HSN and QVC as part of channel carriage fees and revenue sharing arrangements for home shopping sales made to customers in the Company’s footprint. Dr. Malone and Mr. Steven Miron, each a member of Charter’s board of directors, also serve on the board of directors of Discovery Communications, Inc., (“Discovery”) and the Company is aware that Dr. Malone owns 5.2% in the aggregate of the common stock of Discovery and has a 28.7% voting interest in Discovery for the election of directors. The Company is aware that Advance/Newhouse Programming Partnership (“A/N PP”), an affiliate of A/N and in which Mr. Miron is the CEO, owns 100% of the Series A preferred stock of Discovery and 100% of the Series C preferred stock of Discovery, representing approximately 34.0% of the outstanding equity of Discovery’s stock, on an as-converted basis. A/N PP has the right to appoint three directors out of a total of ten directors to Discovery’s board to be elected by the holders of Discovery’s Series A preferred stock. In addition, Dr. Malone is a member of the board of directors of Lions Gate Entertainment Corp. ("Lions Gate", parent company of Starz, Inc.) and owns approximately 5.9% in the aggregate of the common stock of Lions Gate and has 8.1% of the voting power, pursuant to his ownership of Lions Gate Class A voting shares. The Company purchases programming from both Discovery and Lions Gate pursuant to agreements entered into prior to Dr. Malone and Mr. Miron joining Charter’s board of directors. Based on publicly available information, the Company does not believe that either Discovery or Lions Gate would currently be considered related parties. The amounts paid in the aggregate to Discovery and Lions Gate represent less than 3% of total operating costs and expenses for the years ended December 31, 2016 , 2015 and 2014 . Equity Investments The Company has agreements with certain equity-method investees (see Note 7) pursuant to which the Company has made or received related party transaction payments. The Company recorded payments to equity-method investees totaling $171 million and $28 million during the years ended December 31, 2016 and 2015 , respectively. The Company recorded advertising revenues from transactions with equity-method investees totaling $7 million during the year ended December 31, 2016 . The Company has loans outstanding to investees of $5 million as of December 31, 2016 . |
Commitments and Contingencies (
Commitments and Contingencies (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments The following table summarizes the Company’s payment obligations as of December 31, 2016 for its contractual obligations. Total 2017 2018 2019 2020 2021 Thereafter Capital and Operating Lease Obligations (a) $ 1,324 $ 259 $ 225 $ 180 $ 142 108 $ 410 Programming Minimum Commitments (b) 310 225 37 26 22 — — Other (c) 13,187 1,334 810 704 664 539 9,136 $ 14,821 $ 1,818 $ 1,072 $ 910 $ 828 $ 647 $ 9,546 (a) The Company leases certain facilities and equipment under non-cancelable capital and operating leases. Leases and rental costs charged to expense for the years ended December 31, 2016 , 2015 and 2014 were $215 million , $49 million , $43 million , respectively. (b) The Company pays programming fees under multi-year contracts ranging from three to ten years, typically based on a flat fee per customer, which may be fixed for the term, or may in some cases escalate over the term. Programming costs included in the statement of operations were $7.0 billion , $2.7 billion and $2.5 billion for the years ended December 31, 2016 , 2015 and 2014 respectively. Certain of the Company’s programming agreements are based on a flat fee per month or have guaranteed minimum payments. The table sets forth the aggregate guaranteed minimum commitments under the Company’s programming contracts. (c) “Other” represents other guaranteed minimum commitments, including rights negotiated directly with content owners for distribution on Company-owned channels or networks and commitments related to the Company’s role as an advertising and distribution sales agent for third party-owned channels or networks as well as commitments to the Company’s customer premise equipment vendors. The following items are not included in the contractual obligation table due to various factors discussed below. However, the Company incurs these costs as part of its operations: • The Company rents utility poles used in its operations. Generally, pole rentals are cancelable on short notice, but the Company anticipates that such rentals will recur. Rent expense incurred for pole rental attachments for the years ended December 31, 2016 , 2015 and 2014 was $115 million , $53 million and $49 million , respectively. • The Company pays franchise fees under multi-year franchise agreements based on a percentage of revenues generated from video service per year. The Company also pays other franchise related costs, such as public education grants, under multi-year agreements. Franchise fees and other franchise-related costs included in the accompanying statement of operations were $534 million , $212 million and $208 million for the years ended December 31, 2016 , 2015 and 2014 respectively. • The Company also has $278 million in letters of credit, of which $220 million is secured under the Charter Operating credit facility, primarily to its various casualty carriers as collateral for reimbursement of workers' compensation, auto liability and general liability claims. • Minimum pension funding requirements have not been presented in the table above as such amounts have not been determined beyond 2016 . The Company made no cash contributions to the qualified pension plans in 2016 ; however, the Company is permitted to make discretionary cash contributions to the qualified pension plans in 2017 . For the nonqualified pension plan, the Company contributed $5 million during 2016 and will continue to make contributions in 2017 to the extent benefits are paid. Legal Proceedings In 2014, following an announcement by Comcast and Legacy TWC of their intent to merge, Breffni Barrett and others filed suit in the Supreme Court of the State of New York for the County of New York against Comcast, Legacy TWC and their respective officers and directors. Later five similar class actions were consolidated with this matter (the “NY Actions”). The NY Actions were settled in July 2014, however, such settlement was terminated following the termination of the Comcast and TWC merger in April 2015. In May 2015, Charter and TWC announced their intent to merge. Subsequently, the parties in the NY Actions filed a Second Consolidated Class Action Complaint (the “Second Amended Complaint”), removing Comcast as a defendant and naming TWC, the members of the TWC board of directors, Charter and the merger subsidiaries as defendants. The Second Amended Complaint generally alleges, among other things, that the members of the TWC board of directors breached their fiduciary duties to TWC stockholders during the Charter merger negotiations and by entering into the merger agreement and approving the mergers, and that Charter aided and abetted such breaches of fiduciary duties. The complaint sought, among other relief, injunctive relief enjoining the stockholder vote on the mergers, unspecified declaratory and equitable relief, compensatory damages in an unspecified amount, and costs and attorneys’ fees. In September 2015, the parties entered into a memorandum of understanding (“MOU”) to settle the action. Pursuant to the MOU, the defendants issued certain supplemental disclosures relating to the mergers on a Form 8-K, and plaintiffs agreed to release with prejudice all claims that could have been asserted against defendants in connection with the mergers. The settlement is conditioned on, among other things, approval by the New York Supreme Court. That court gave preliminary approval to the settlement in October 2016. A hearing to consider final approval of this settlement is set for March 2017. In the event that the New York Supreme Court does not approve the settlement, Charter intends to vigorously defend this case. In August 2015, a purported stockholder of Charter, Matthew Sciabacucchi, filed a lawsuit in the Delaware Court of Chancery, on behalf of a putative class of Charter stockholders, challenging the transactions between Charter, TWC, A/N, and Liberty Broadband announced by Charter on May 26, 2015 (collectively, the “Transactions”). The lawsuit names as defendants Liberty Broadband, Charter, the board of directors of Charter, and New Charter. Plaintiff alleged that the Transactions improperly benefit Liberty Broadband at the expense of other Charter shareholders, and that Charter issued a false and misleading proxy statement in connection with the Transactions. Plaintiff requested, among other things, that the Delaware Court of Chancery enjoin the September 21, 2015 special meeting of Charter stockholders at which Charter stockholders were asked to vote on the Transactions until the defendants disclosed certain information relating to Charter and the Transactions. The disclosures demanded by the plaintiff included (i) certain unlevered free cash flow projections for Charter and (ii) a Form of Proxy and Right of First Refusal Agreement (“Proxy”) by and among Liberty Broadband, A/N, Charter and New Charter, which was referenced in the description of the Second Amended and Restated Stockholders Agreement, dated May 23, 2015, among Charter, New Charter, Liberty Broadband and A/N. On September 9, 2015, Charter issued supplemental disclosures containing unlevered free cash flow projections for Charter. In return, the plaintiff agreed its disclosure claims were moot and withdrew its application to enjoin the Charter stockholder vote on the Transactions. Charter has filed a motion to dismiss this litigation but the court has not yet ruled upon it. Charter denies any liability, believes that it has substantial defenses, and intends to vigorously defend this suit. The California Attorney General and the Alameda County, California District Attorney are investigating whether certain of Legacy Charter’s waste disposal policies, procedures and practices are in violation of the California Business and Professions Code and the California Health and Safety Code. That investigation was commenced in January 2014. A similar investigation involving Legacy TWC was initiated in February 2012. Charter is cooperating with these investigations. While the Company is unable to predict the outcome of these investigations, it does not expect that the outcome will have a material effect on its operations, financial condition, or cash flows. On December 19, 2011, Sprint Communications Company L.P. (“Sprint”) filed a complaint in the U.S. District Court for the District of Kansas alleging that Legacy TWC infringes 12 U.S. patents purportedly relating to Voice over Internet Protocol (“VoIP”) services. Over the course of the litigation Sprint dismissed its claims relating to five of the asserted patents, and shortly before trial Sprint dropped its claims with respect to two additional patents. A trial on the remaining five patents is scheduled to begin on February 13, 2017. The plaintiff is seeking monetary damages of approximately $150 million . The plaintiff is also claiming that TWC willfully infringed the patents, and may seek up to treble damages as well as attorneys’ fees and costs. Charter intends to vigorously defend against this lawsuit. However, no assurances can be made that such defenses would ultimately be successful. At this time, the Company does not expect that the outcome of this litigation will have a material adverse effect on its operations, financial condition or cash flows although the ultimate outcome of the litigation cannot be predicted. On October 23, 2015, the New York Office of the Attorney General (the “NY AG”) began an investigation of Legacy TWC's advertised Internet speeds and other Internet product advertising. On February 1, 2017, the NY AG filed suit in the Supreme Court for the State of New York alleging that Legacy TWC's advertising of Internet speeds was false and misleading. The suit seeks restitution and injunctive relief. The Company denies that Legacy TWC engaged in any wrongdoing and the Company intends to defend itself vigorously. However, no assurances can be made that such defenses would ultimately be successful. At this time, the Company does not expect that the outcome of this litigation will have a material adverse effect on its operations, financial condition or cash flows. The Company is a defendant or co-defendant in several lawsuits involving alleged infringement of various patents relating to various aspects of its businesses. Other industry participants are also defendants in certain of these cases. In the event that a court ultimately determines that the Company infringes on any intellectual property rights, the Company may be subject to substantial damages and/or an injunction that could require the Company or its vendors to modify certain products and services the Company offers to its subscribers, as well as negotiate royalty or license agreements with respect to the patents at issue. While the Company believes the lawsuits are without merit and intends to defend the actions vigorously, no assurance can be given that any adverse outcome would not be material to the Company’s consolidated financial condition, results of operations, or liquidity. The Company cannot predict the outcome of any such claims nor can it reasonably estimate a range of possible loss. The Company is party to lawsuits, claims and regulatory inquiries that arise in the ordinary course of conducting its business, including lawsuits claiming violation of wage and hour laws and breach of contract by vendors, including by three programmers. The ultimate outcome of these other legal matters pending against the Company cannot be predicted, and although such lawsuits and claims are not expected individually to have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity, such lawsuits could have, in the aggregate, a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity. Whether or not the Company ultimately prevails in any particular lawsuit or claim, litigation can be time consuming and costly and injure the Company’s reputation. |
Employee Benefit Plans (Notes)
Employee Benefit Plans (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Pension Plans Upon completion of the TWC Transaction, Charter assumed sponsorship of Legacy TWC’s pension plans. The Company sponsors two qualified defined benefit pension plans, the TWC Pension Plan and the TWC Union Pension Plan, that provide pension benefits to a majority of Legacy TWC employees. The Company also provides a nonqualified defined benefit pension plan for certain employees under the TWC Excess Pension Plan. Changes in the projected benefit obligation, fair value of plan assets and funded status of the pension plans from January 1, 2016 through December 31, 2016 are presented below: 2016 Projected benefit obligation at beginning of year $ — Benefit obligation assumed in the TWC Transaction 4,009 Service cost 86 Interest cost 87 Curtailment amendment (675 ) Actuarial gain (149 ) Benefits paid (98 ) Projected benefit obligation at end of year $ 3,260 Accumulated benefit obligation at end of year $ 3,260 Fair value of plan assets at beginning of year $ — Fair value of plan assets acquired in the TWC Transaction 2,877 Actual return on plan assets 162 Employer contributions 5 Benefits paid (98 ) Fair value of plan assets at end of year $ 2,946 Funded status $ (314 ) The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the qualified pension plans and the nonqualified pension plan as of December 31, 2016 consisted of the following: Qualified Pension Plans Nonqualified Pension Plan December 31, 2016 Projected benefit obligation $ 3,204 $ 56 Accumulated benefit obligation $ 3,204 $ 56 Fair value of plan assets $ 2,946 $ — Pretax amounts recognized in the consolidated balance sheet as of December 31, 2016 consisted of the following: December 31, 2016 Noncurrent asset $ 1 Current liability (6 ) Long-term liability (309 ) Net amounts recognized in consolidated balance sheet $ (314 ) The components of net periodic benefit costs for the year ended December 31, 2016 consisted of the following: Year Ended December 31, 2016 Service cost $ 86 Interest cost 87 Expected return on plan assets (116 ) Pension curtailment gain (675 ) Remeasurement gain (195 ) Net periodic pension benefit $ (813 ) The $195 million remeasurement gain recorded during the year ended December 31, 2016 was primarily driven by the effects of an increase of the discount rate from 3.99% at the closing date of the TWC Transaction to 4.20% at December 31, 2016 and a gain to record pension assets at December 31, 2016 fair values. Weighted average assumptions used to determine benefit obligations as of December 31, 2016 consisted of the following: December 31, 2016 Discount rate 4.20 % Rate of compensation increase — % The weighted average of discount rates used to measure the projected benefit obligation at the closing date of the TWC Transaction was 3.99% . The rate of compensation increase used to measure the projected benefit obligation as of the closing of the TWC Transaction was an age-graded average increase of 4.25% . The Company utilized the RP 2015/MP2015 mortality tables published by the Society of Actuaries to measure the benefit obligations as of December 31, 2016 and the closing date of the TWC Transaction. Weighted average assumptions used to determine net periodic benefit costs for the year ended December 31, 2016 consisted of the following: Year Ended December 31, 2016 Expected long-term rate of return on plan assets 6.50 % Discount rate (a) 3.72 % Rate of compensation increase (b) — % (a) The discount rate used to determine net periodic pension benefit was 3.99% from the closing date of the TWC Transaction through remeasurement date (June 30, 2016), and was 3.72% from remeasurement date through December 31, 2016 . (b) The rate of compensation increase used to determine net periodic pension benefit was 4.25% from the closing date of the TWC Transaction through remeasurement date (June 30, 2016), and 0% thereafter. See “Pension Plan Curtailment Amendment” below for further discussion. In developing the expected long-term rate of return on plan assets, the Company considered the pension portfolio’s composition, past average rate of earnings and the Company’s future asset allocation targets. The weighted average expected long-term rate of return on plan assets used to determine net periodic pension benefit for the year ended December 31, 2017 is expected to be 6.50% . The Company determined the discount rates used to determine benefit obligations and net periodic pension benefit based on the yield of a large population of high quality corporate bonds with cash flows sufficient in timing and amount to settle projected future defined benefit payments. Pension Plan Curtailment Amendment Following the closing of the TWC Transaction, Charter amended the pension plans to freeze future benefit accruals to current active plan participants as of August 31, 2016. Effective September 1, 2016, no future compensation increases or future service will be credited to participants of the pension plans and new hires are not eligible to participate in the plans. Upon announcement and approval of the plan amendment, the assumptions underlying the pension liability and pension asset values were reassessed utilizing remeasurement date assumptions in accordance with Charter’s mark-to-market pension accounting policy to record gains and losses in the period in which a remeasurement event occurs. The $675 million curtailment gain recorded during the year ended December 31, 2016 was primarily driven by the reduction of the compensation rate assumption to 0% in accordance with the terms of the plan amendment, reflecting the pension liability at its accumulated benefit obligation instead of its projected benefit obligation at the remeasurement date. Pension Plan Assets The assets of the qualified pension plans are held in a master trust in which the qualified pension plans are the only participating plans (the “Master Trust”). The investment policy for the qualified pension plans is to achieve a reasonable long-term rate of return on plan assets with an acceptable level of risk in order to maintain adequate funding levels. The investment portfolio is a mix of fixed-income and equity securities with the objective of matching plan liability performance, diversifying risk and achieving a target investment return. The pension plan’s Investment Committee establishes risk mitigation policies and regularly monitors investment performance, investment allocation policies, and the execution of these strategies. The Investment Committee engages a third-party investment firm with responsibility of executing the directives of the Investment Committee, monitoring the performance of individual investment managers of the Master Trust, and making adjustments and changes within defined parameters when necessary. On a periodic basis, the Investment Committee conducts a broad strategic review of its portfolio construction and investment allocation policies. Neither the Company, the Investment Committee, nor the third-party investment firm manages any assets internally or directly utilizes derivative instruments or hedging; however, the investment mandate of some investment managers allows the use of derivatives as components of their standard portfolio management strategies. Pension assets are managed in a balanced portfolio comprised of two major components: a return-seeking portion and a liability-matching portion. The expected role of return-seeking investments is to achieve a reasonable long-term growth of pension assets with a prudent level of risk, while the role of liability-matching investments is to provide a partial hedge against liability performance associated with changes in interest rates. The objective within return-seeking investments is to achieve asset diversity in order to balance return and volatility. The Company adopted an investment strategy referred to as a de-risking glide path to increase the fixed income allocation as the funded status of the qualified pension plans improves. As the qualified pension plans reach set funded status milestones, the assets will be rebalanced to shift more assets from equity to fixed income. Based on the progress with this strategy, the target investment allocation for pension fund assets is permitted to vary within specified ranges subject to Investment Committee approval for return-seeking securities and liability-matching securities. The target and actual investment allocation of the qualified pension plans by asset category as of December 31, 2016 consisted of the following: Target Actual Allocation Allocation December 31, 2016 Return-seeking securities 75.0 % 64.4 % Liability-matching securtties 25.0 % 35.4 % Other investments — % 0.2 % The following table sets forth the investment assets of the qualified pension plans, which exclude accrued investment income and other receivables, accrued liabilities, and investments with a fair value measured at net asset value per share as a practical expedient, by level within the fair value hierarchy as of December 31, 2016 : December 31, 2016 Fair Value Level 1 Level 2 Level 3 Cash $ 2 $ 2 $ — $ — Common stocks: Domestic (a) 1,065 1,065 — — International (a) 391 391 — — Commingled equity funds (b) 348 — 348 — Other equity securities (c) 3 3 — — Corporate debt securities (d) 394 — 394 — Commingled bond funds (b) 273 — 273 — U.S. Treasury debt securities (a) 260 260 — — Collective trust funds (e) 75 — 75 — U.S. government agency asset-backed debt securities (f) 53 — 53 — Corporate asset-backed debt securities (g) 2 — 2 — Other fixed-income securities (h) 89 — 89 — Total investment assets 2,955 $ 1,721 $ 1,234 $ — Accrued investment income and other receivables (i) 107 Accrued liabilities (i) (120 ) Investments measured at net asset value (j) 4 Fair value of plan assets $ 2,946 (a) Common stocks, mutual funds and U.S. Treasury debt securities are valued at the closing price reported on the active market on which the individual securities are traded. No single industry comprised a significant portion of common stock held by the qualified pension plan as of December 31, 2016 . (b) Commingled equity funds and commingled bond funds are valued using the net asset value provided by the administrator of the fund. The net asset value is based on the readily determinable value of the underlying assets owned by the fund, less liabilities, and then divided by the number of units outstanding. (c) Other equity securities consist of preferred stocks, which are valued at the closing price reported on the active market on which the individual securities are traded. (d) Corporate debt securities are valued based on observable prices from the new issue market, benchmark quotes, secondary trading and dealer quotes. An option adjusted spread model is incorporated to adjust spreads of issues that have early redemption features and final spreads are added to the U.S. Treasury curve. (e) Collective trust funds primarily consist of short-term investment strategies comprised of instruments issued or fully guaranteed by the U.S. government and/or its agencies and are valued using the net asset value provided by the administrator of the fund. The net asset value is based on the readily determinable value of the underlying assets owned by the fund, less liabilities, and then divided by the number of units outstanding. (f) U.S. government agency asset-backed debt securities consist of pass-through mortgage-backed securities issued by the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association valued using available trade information, dealer quotes, market indices and research reports, spreads, bids and offers. (g) Corporate asset-backed debt securities primarily consist of pass-through mortgage-backed securities issued by U.S. and foreign corporations valued using available trade information, dealer quotes, market indices and research reports, spreads, bids and offers. (h) Other fixed-income securities consist of foreign government debt securities, municipal bonds and U.S. government agency debt securities, which are valued based on observable prices from the new issue market, benchmark quotes, secondary trading and dealer quotes. An option adjusted spread model is incorporated to adjust spreads of issues that have early redemption features and final spreads are added to the U.S. Treasury curve. (i) Accrued investment income and other receivables includes amounts receivable under foreign exchange contracts of $70 million as of December 31, 2016 . Accrued liabilities includes amounts accrued under foreign exchange contracts of $71 million as of December 31, 2016 . The fair value of the assets and liabilities associated with these foreign exchange contracts are presented on a gross basis and are valued using the exchange rates in effect for the applicable currencies as of the valuation date (a Level 1 fair value measurement). (j) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. These investments primarily consist of hedge funds valued utilizing net asset value provided by the administrator of the fund, which is based on the value of the underlying assets owned by the fund, less liabilities, and then divided by the number of units outstanding. Shares of the fund are not redeemable and the underlying assets are anticipated to be liquidated and distributed to investors in the near term. There are no material unfunded commitments with respect to these investments. The fair value amounts presented in this table are intended to permit the reconciliation of the fair value hierarchy to the total fair value of plan assets discussed throughout this footnote. Pension Plan Contributions The Company made no cash contributions to the qualified pension plans during the year ended December 31, 2016 ; however, the Company may make discretionary cash contributions to the qualified pension plans in the future. Such contributions will be dependent on a variety of factors, including current and expected interest rates, asset performance, the funded status of the qualified pension plans and management’s judgment. For the nonqualified unfunded pension plan, the Company will continue to make contributions during 2017 to the extent benefits are paid. Benefit payments for the pension plans are expected to be $170 million in 2017 , $174 million in 2018 , $177 million in 2019 , $180 million in 2020 , $182 million in 2021 and $911 million in 2022 to 2026. Multiemployer Plans Upon completion of the TWC Transaction, Charter assumed Legacy TWC’s multiemployer plans. The Company contributes to a number of multiemployer plans under the terms of collective-bargaining agreements that cover its union-represented employees. Such multiemployer plans provide medical, pension and retirement savings benefits to active employees and retirees. The Company made contributions to multiemployer plans of $31 million for the year ended December 31, 2016 . The risks of participating in multiemployer pension plans are different from single-employer pension plans in the following aspects: (a) assets contributed to a multiemployer pension plan by one employer may be used to provide benefits to employees of other participating employers, (b) if a participating employer stops contributing to the multiemployer pension plan, the unfunded obligations of the plan may be borne by the remaining participating employers and (c) if the Company chooses to stop participating in any of the multiemployer pension plans, it may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. The multiemployer pension plans to which the Company contributes each received a Pension Protection Act “green” zone status in 2015. The zone status is based on the most recent information the Company received from the plan and is certified by the plan’s actuary. Among other factors, plans in the green zone are at least 80% funded. Defined Contribution Benefit Plans The Company’s employees may participate in the Charter Communications, Inc. 401(k) Plan (the “401(k) Plan”). Upon completion of the TWC Transaction, Charter assumed Legacy TWC’s defined contribution plan, the TWC Savings Plan. In June 2016, the Company announced changes to both the 401(k) Plan and the TWC Savings Plan that were effective September 1, 2016 and effective January 1, 2017, the 401(k) Plan and TWC Savings Plan merged into one plan. Employees that qualify for participation can contribute up to 50% of their salary, on a pre-tax basis, subject to a maximum contribution limit as determined by the Internal Revenue Service. The Company’s matching contribution is discretionary and is equal to 100% of the amount of the salary reduction the participant elects to defer (up to 6% of the participant’s eligible compensation), excluding any catch-up contributions and is paid by the Company on a per pay period basis. The Company made contributions to the 401(k) plans totaling $147 million , $23 million and $19 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. For employees who are not eligible to participate in the Company’s long-term incentive plan and who are not covered by a collective bargaining agreement, the Company offers a contribution to the new Retirement Accumulation Plan ("RAP"), equal to 3% of eligible pay. The Company made contributions to the RAP totaling $48 million for the year ended December 31, 2016 . |
Recently Issued Accounting Stan
Recently Issued Accounting Standards (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Recently Issued Accounting Standards [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which is a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The new standard provides a single principles-based, five-step model to be applied to all contracts with customers, which steps are to (1) identify the contract(s) with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when each performance obligation is satisfied. More specifically, revenue will be recognized when promised goods or services are transferred to the customer in an amount that reflects the consideration expected in exchange for those goods or services. ASU 2014-09 will be effective, reflecting the one-year deferral, for interim and annual periods beginning after December 15, 2017 (January 1, 2018 for the Company). Early adoption of the standard is permitted but not before the original effective date. Companies can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company is currently in the process of evaluating which method of transition will be utilized. The Company is continuing to assess all potential impacts that the adoption of ASU 2014-09 will have on its consolidated financial statements, including developing new accounting policies, internal controls and processes to facilitate the adoption of the standard. The most significant impacts upon adoption are anticipated to result from the deferral over a period of time instead of recognized immediately of (1) the residential installation revenues which represent nonrefundable up-front fees that convey a material right to the customer and (2) the internal and external commission expenses which represent costs of obtaining a contract. In April 2015, the FASB issued ASU No. 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (“ASU 2015-05”), which provides guidance in determining whether fees for purchasing cloud computing services (or hosted software solutions) are considered internal-use software or should be considered a service contract. The cloud computing agreement that includes a software license should be accounted for in the same manner as internal-use software if customer has contractual right to take possession of the software during the hosting period without significant penalty and it is feasible to either run the software on customer’s hardware or contract with another vendor to host the software. Arrangements that don’t meet the requirements for internal-use software should be accounted for as a service contract. ASU 2015-05 was effective for interim and annual periods beginning after December 15, 2015 (January 1, 2016 for the Company). The adoption of ASU 2015-05 did not have a material impact on the Company’s financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”), which requires lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. Lessees are allowed to account for short-term leases (i.e., leases with a term of 12 months or less) off-balance sheet, consistent with current operating lease accounting. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. ASU 2016-02 will be effective for interim and annual periods beginning after December 15, 2018 (January 1, 2019 for the Company). Early adoption is permitted. The new standard requires a modified retrospective transition through a cumulative-effect adjustment as of the beginning of the earliest period presented in the financial statements. The Company is currently in the process of evaluating the impact that the adoption of ASU 2016-02 will have on its consolidated financial statements including identifying the population of leases, evaluating technology solutions and collecting lease data. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which includes multiple provisions intended to simplify various aspects of the accounting for share-based payments. The new standard (1) requires all excess tax benefits and deficiencies to be recognized as income tax expense or benefit in the income statement in the period in which they occur regardless of whether the benefit reduces taxes payable in the current period, (2) requires classification of excess tax benefits as an operating activity on the statements of cash flows, (3) allows an entity to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur and (4) causes the threshold under which employee share-based awards partially settled in cash can qualify for equity classification to increase to the maximum statutory tax rates in the applicable jurisdiction. ASU 2016-09 will be effective for interim and annual periods after December 15, 2016 (January 1, 2017 for the Company). The new standard generally requires a modified retrospective transition through a cumulative-effect adjustment as of the beginning of the period of adoption, with certain provisions requiring either a prospective or retrospective transition. The Company adopted ASU 2016-09 on January 1, 2017. Upon adoption of ASU 2016-09, the Company will recognize excess tax benefits of approximately $136 million in deferred tax assets that were previously not recognized in a cumulative-effect adjustment to retained earnings. The Company will prospectively record a deferred tax benefit or expense associated with the difference between book and tax for stock compensation expense. On January 1, 2017, the Company will also establish an accounting policy election to assume zero forfeitures for stock award grants and account for forfeitures when they occur which will prospectively impact stock compensation expense. Other aspects of adoption ASU 2016-09 are not anticipated to have a material impact to the Company’s consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which clarifies how entities should classify cash receipts and cash payments related to eight specific cash flow matters on the statement of cash flows, with the objective of reducing existing diversity in practice. ASU 2016-15 will be effective for interim and annual periods beginning after December 15, 2017 (January 1, 2018 for the Company). Early adoption is permitted. The Company is currently in the process of evaluating the impact that the adoption of ASU 2016-15 will have on its consolidated financial statements. |
Unaudited Quarterly Financial D
Unaudited Quarterly Financial Data (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Unaudited Quarterly Financial Data [Abstract] | |
Unaudited Quarterly Financial Data | Unaudited Quarterly Financial Data The following table presents quarterly data for the periods presented in the consolidated statement of operations: Year Ended December 31, 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 2,530 $ 6,161 $ 10,037 $ 10,275 Income from operations $ 302 $ 690 $ 924 $ 1,439 Net income (loss) attributable to Charter shareholders $ (188 ) $ 3,067 $ 189 $ 454 Earnings (loss) per common share attributable to Charter shareholders: Basic $ (1.86 ) $ 16.73 $ 0.70 $ 1.69 Diluted $ (1.86 ) $ 15.17 $ 0.69 $ 1.67 Weighted average common share outstanding: Basic 101,552,093 183,362,776 271,263,259 268,584,368 Diluted 101,552,093 205,214,266 275,373,202 272,624,270 Year Ended December 31, 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 2,362 $ 2,430 $ 2,450 $ 2,512 Income from operations $ 249 $ 269 $ 273 $ 323 Net income (loss) attributable to Charter shareholders $ (81 ) $ (122 ) $ 54 $ (122 ) Earnings (loss) per common share attributable to Charter shareholders: Basic $ (0.81 ) $ (1.21 ) $ 0.54 $ (1.21 ) Diluted $ (0.81 ) $ (1.21 ) $ 0.53 $ (1.21 ) Weighted average common share outstanding: Basic 100,959,008 101,074,644 101,205,400 101,366,476 Diluted 100,959,008 101,074,644 102,481,924 101,366,476 |
Consolidating Schedules (Notes)
Consolidating Schedules (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Consolidating Schedules [Abstract] | |
Consolidating Schedules | Consolidating Schedules Each of Charter Operating, TWC, LLC, TWCE, CCO Holdings and certain subsidiaries jointly, severally, fully and unconditionally guarantee the outstanding debt securities of the others (other than the CCO Holdings notes) on an unsecured senior basis and the condensed consolidating financial information has been prepared and presented pursuant to SEC Regulation S-X Rule 3-10, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered. Certain Charter Operating subsidiaries that are regulated telephone entities only become guarantor subsidiaries upon approval by regulators. This information is not intended to present the financial position, results of operations and cash flows of the individual companies or groups of companies in accordance with generally accepted accounting principles. The “Charter Operating and Restricted Subsidiaries” column is presented to comply with the terms of the Credit Agreement. The “Safari Escrow Entities” column included in the condensed consolidating financial statements as of December 31, 2015 and for the years ended December 31, 2015 and 2014 consists of CCOH Safari, CCO Safari II and CCO Safari III. CCOH Safari, CCO Safari II and CCO Safari III issued the CCOH Safari notes, CCO Safari II notes and the CCO Safari III credit facilities, respectively. Upon closing of the TWC Transaction, the CCOH Safari notes became obligations of CCO Holdings and CCO Holdings Capital and the CCO Safari II notes and CCO Safari III credit facilities became obligations of Charter Operating and Charter Communications Operating Capital Corp. CCOH Safari merged into CCO Holdings and CCO Safari II and CCO Safari III merged into Charter Operating. The “Unrestricted Subsidiary” column included in the condensed consolidating financial statements for the years ended December 31, 2016 and 2015 consists of CCO Safari which was a non-recourse subsidiary under the Credit Agreement and held the CCO Safari Term G Loans that were repaid in April 2015. Condensed consolidating financial statements as of December 31, 2016 and 2015 and for the years ended December 31, 2016 , 2015 and 2014 follow. Charter Communications, Inc. Condensed Consolidating Balance Sheet As of December 31, 2016 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated ASSETS CURRENT ASSETS: Cash and cash equivalents $ 57 $ 154 $ — $ 1,324 $ — $ 1,535 Accounts receivable, net 34 11 — 1,387 — 1,432 Receivables from related party 170 451 62 — (683 ) — Prepaid expenses and other current assets — 33 — 300 — 333 Total current assets 261 649 62 3,011 (683 ) 3,300 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 245 — 32,718 — 32,963 Customer relationships, net — — — 14,608 — 14,608 Franchises — — — 67,316 — 67,316 Goodwill — — — 29,509 — 29,509 Total investment in cable properties, net — 245 — 144,151 — 144,396 INVESTMENT IN SUBSIDIARIES 66,692 75,838 88,760 — (231,290 ) — LOANS RECEIVABLE – RELATED PARTY — 640 494 — (1,134 ) — OTHER NONCURRENT ASSETS — 214 — 1,157 — 1,371 Total assets $ 66,953 $ 77,586 $ 89,316 $ 148,319 $ (233,107 ) $ 149,067 LIABILITIES AND SHAREHOLDERS’/MEMBER’S EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 22 $ 625 $ 219 $ 6,678 $ — $ 7,544 Payables to related party — — — 683 (683 ) — Current portion of long-term debt — — — 2,028 — 2,028 Total current liabilities 22 625 219 9,389 (683 ) 9,572 LONG-TERM DEBT — — 13,259 46,460 — 59,719 LOANS PAYABLE – RELATED PARTY — — — 1,134 (1,134 ) — DEFERRED INCOME TAXES 26,637 3 — 25 — 26,665 OTHER LONG-TERM LIABILITIES 155 64 — 2,526 — 2,745 SHAREHOLDERS’/MEMBER’S EQUITY Controlling interest 40,139 66,692 75,838 88,760 (231,290 ) 40,139 Noncontrolling interests — 10,202 — 25 — 10,227 Total shareholders’/member’s equity 40,139 76,894 75,838 88,785 (231,290 ) 50,366 Total liabilities and shareholders’/member’s equity $ 66,953 $ 77,586 $ 89,316 $ 148,319 $ (233,107 ) $ 149,067 Charter Communications, Inc. Condensed Consolidating Balance Sheet As of December 31, 2015 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated ASSETS CURRENT ASSETS: Cash and cash equivalents $ — $ — $ — $ — $ 5 $ — $ 5 Accounts receivable, net 8 7 — — 264 — 279 Receivables from related party 51 297 — 14 — (362 ) — Prepaid expenses and other current assets — 6 — — 55 — 61 Total current assets 59 310 — 14 324 (362 ) 345 RESTRICTED CASH AND CASH EQUIVALENTS — — 22,264 — — — 22,264 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 28 — — 8,317 — 8,345 Customer relationships, net — — — — 856 — 856 Franchises — — — — 6,006 — 6,006 Goodwill — — — — 1,168 — 1,168 Total investment in cable properties, net — 28 — — 16,347 — 16,375 INVESTMENT IN SUBSIDIARIES 1,468 816 — 11,303 — (13,587 ) — LOANS RECEIVABLE – RELATED PARTY — 333 — 613 563 (1,509 ) — OTHER NONCURRENT ASSETS — 216 — — 116 — 332 Total assets $ 1,527 $ 1,703 $ 22,264 $ 11,930 $ 17,350 $ (15,458 ) $ 39,316 LIABILITIES AND SHAREHOLDERS’/MEMBER’S EQUITY (DEFICIT) CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 11 $ 203 $ 282 $ 165 $ 1,311 $ — $ 1,972 Payables to related party — — 17 — 345 (362 ) — Total current liabilities 11 203 299 165 1,656 (362 ) 1,972 LONG-TERM DEBT — — 21,778 10,443 3,502 — 35,723 LOANS PAYABLE – RELATED PARTY — — 693 — 816 (1,509 ) — DEFERRED INCOME TAXES 1,562 — — — 28 — 1,590 OTHER LONG-TERM LIABILITIES — 32 — — 45 — 77 SHAREHOLDERS’/MEMBER’S EQUITY (DEFICIT) (46 ) 1,468 (506 ) 1,322 11,303 (13,587 ) (46 ) Total liabilities and shareholders’/member’s equity (deficit) $ 1,527 $ 1,703 $ 22,264 $ 11,930 $ 17,350 $ (15,458 ) $ 39,316 Charter Communications, Inc. Condensed Consolidating Statement of Operations For the year ended December 31, 2016 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated REVENUES $ 251 $ 1,004 $ — $ — $ 29,003 $ (1,255 ) $ 29,003 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 251 989 — — 18,670 (1,255 ) 18,655 Depreciation and amortization — 5 — — 6,902 — 6,907 Other operating (income) expenses, net 262 1 — — (177 ) — 86 513 995 — — 25,395 (1,255 ) 25,648 Income (loss) from operations (262 ) 9 — — 3,608 — 3,355 OTHER INCOME (EXPENSES): Interest income (expense), net — 14 (390 ) (727 ) (1,396 ) — (2,499 ) Loss on extinguishment of debt — — — (110 ) (1 ) — (111 ) Gain on financial instruments, net — — — — 89 — 89 Other expense, net — (11 ) — — (3 ) — (14 ) Equity in income of subsidiaries 851 1,066 — 2,293 — (4,210 ) — 851 1,069 (390 ) 1,456 (1,311 ) (4,210 ) (2,535 ) Income (loss) before income taxes 589 1,078 (390 ) 1,456 2,297 (4,210 ) 820 INCOME TAX BENEFIT (EXPENSE) 2,933 (5 ) — — (3 ) — 2,925 Consolidated net income (loss) 3,522 1,073 (390 ) 1,456 2,294 (4,210 ) 3,745 Less: Net income – noncontrolling interests — (222 ) — — (1 ) — (223 ) Net income (loss) $ 3,522 $ 851 $ (390 ) $ 1,456 $ 2,293 $ (4,210 ) $ 3,522 Charter Communications, Inc. Condensed Consolidating Statement of Operations For the year ended December 31, 2015 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary Eliminations Charter Consolidated REVENUES $ 25 $ 299 $ — $ — $ 9,754 $ — $ (324 ) $ 9,754 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 25 299 — — 6,426 — (324 ) 6,426 Depreciation and amortization — — — — 2,125 — — 2,125 Other operating expenses, net — — — — 89 — — 89 25 299 — — 8,640 — (324 ) 8,640 Income from operations — — — — 1,114 — — 1,114 OTHER INCOME (EXPENSES): Interest income (expense), net — 8 (474 ) (642 ) (151 ) (47 ) — (1,306 ) Loss on extinguishment of debt — — (2 ) (123 ) — (3 ) — (128 ) Loss on financial instruments, net — — — — (4 ) — — (4 ) Other expense, net — (7 ) — — — — — (7 ) Equity in income (loss) of subsidiaries (121 ) (168 ) — 1,073 (50 ) — (734 ) — (121 ) (167 ) (476 ) 308 (205 ) (50 ) (734 ) (1,445 ) Income (loss) before income taxes (121 ) (167 ) (476 ) 308 909 (50 ) (734 ) (331 ) INCOME TAX BENEFIT (EXPENSE) (150 ) — — — 210 — — 60 Consolidated net income (loss) (271 ) (167 ) (476 ) 308 1,119 (50 ) (734 ) (271 ) Less: Net (income) loss – noncontrolling interest — 46 — — (46 ) — — — Net income (loss) $ (271 ) $ (121 ) $ (476 ) $ 308 $ 1,073 $ (50 ) $ (734 ) $ (271 ) Charter Communications, Inc. Condensed Consolidating Statement of Operations For the year ended December 31, 2014 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary Eliminations Charter Consolidated REVENUES $ 22 $ 235 $ — $ — $ 9,108 $ — $ (257 ) $ 9,108 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 22 235 — — 5,973 — (257 ) 5,973 Depreciation and amortization — — — — 2,102 — — 2,102 Other operating expenses, net — — — — 62 — — 62 22 235 — — 8,137 — (257 ) 8,137 Income from operations — — — — 971 — — 971 OTHER INCOME AND (EXPENSES): Interest income (expense), net — 8 (30 ) (679 ) (165 ) (45 ) — (911 ) Loss on financial instruments, net — — — — (7 ) — — (7 ) Equity in income (loss) of subsidiaries 40 (12 ) — 697 (45 ) — (680 ) — 40 (4 ) (30 ) 18 (217 ) (45 ) (680 ) (918 ) Income (loss) before income taxes 40 (4 ) (30 ) 18 754 (45 ) (680 ) 53 INCOME TAX EXPENSE (223 ) — — — (13 ) — — (236 ) Consolidated net income (loss) (183 ) (4 ) (30 ) 18 741 (45 ) (680 ) (183 ) Less: Net (income) loss – noncontrolling interest — 44 — — (44 ) — — — Net income (loss) $ (183 ) $ 40 $ (30 ) $ 18 $ 697 $ (45 ) $ (680 ) $ (183 ) Charter Communications, Inc. Condensed Consolidating Statement of Comprehensive Income (Loss) For the year ended December 31, 2016 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated Consolidated net income (loss) $ 3,522 $ 1,073 $ (390 ) $ 1,456 $ 2,294 $ (4,210 ) $ 3,745 Net impact of interest rate derivative instruments 8 8 8 8 8 (32 ) 8 Foreign currency translation adjustment (2 ) (2 ) (2 ) (2 ) (2 ) 8 (2 ) Consolidated comprehensive income (loss) 3,528 1,079 (384 ) 1,462 2,300 (4,234 ) 3,751 Less: Comprehensive income attributable to noncontrolling interests — (222 ) — — (1 ) — (223 ) Comprehensive income (loss) $ 3,528 $ 857 $ (384 ) $ 1,462 $ 2,299 $ (4,234 ) $ 3,528 Charter Communications, Inc. Condensed Consolidating Statement of Comprehensive Income (Loss) For the year ended December 31, 2015 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary Eliminations Charter Consolidated Consolidated net income (loss) $ (271 ) $ (167 ) $ (476 ) $ 308 $ 1,119 $ (50 ) $ (734 ) $ (271 ) Net impact of interest rate derivative instruments 9 9 9 9 9 — (36 ) 9 Consolidated comprehensive income (loss) (262 ) (158 ) (467 ) 317 1,128 (50 ) (770 ) (262 ) Less: Comprehensive (income) loss attributable to noncontrolling interests — 46 — — (46 ) — — — Comprehensive income (loss) $ (262 ) $ (112 ) $ (467 ) $ 317 $ 1,082 $ (50 ) $ (770 ) $ (262 ) Charter Communications, Inc. Condensed Consolidating Statement of Comprehensive Income (Loss) For the year ended December 31, 2014 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary Eliminations Charter Consolidated Consolidated net income (loss) $ (183 ) $ (4 ) $ (30 ) $ 18 $ 741 $ (45 ) $ (680 ) $ (183 ) Net impact of interest rate derivative instruments 19 19 19 19 19 — (76 ) 19 Consolidated comprehensive income (loss) (164 ) 15 (11 ) 37 760 (45 ) (756 ) (164 ) Less: Comprehensive (income) loss attributable to noncontrolling interests — 44 — — (44 ) — — — Comprehensive income (loss) $ (164 ) $ 59 $ (11 ) $ 37 $ 716 $ (45 ) $ (756 ) $ (164 ) Charter Communications, Inc. Condensed Consolidating Statement of Cash Flows For the year ended December 31, 2016 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated NET CASH FLOWS FROM OPERATING ACTIVITIES $ (225 ) $ (36 ) $ (463 ) $ (711 ) $ 9,476 $ — $ 8,041 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — — — — (5,325 ) — (5,325 ) Change in accrued expenses related to capital expenditures — — — — 603 — 603 Purchases of cable systems, net (26,781 ) (2,022 ) — — (7 ) — (28,810 ) Contribution to subsidiaries (1,013 ) (478 ) — (437 ) — 1,928 — Distributions from subsidiaries 24,552 26,899 — 5,096 — (56,547 ) — Change in restricted cash and cash equivalents — — 22,264 — — — 22,264 Other, net — — — — (22 ) — (22 ) Net cash flows from investing activities (3,242 ) 24,399 22,264 4,659 (4,751 ) (54,619 ) (11,290 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — — 3,201 9,143 — 12,344 Repayments of long-term debt — — — (2,937 ) (7,584 ) — (10,521 ) Borrowings (payments) loans payable - related parties — (300 ) 553 (71 ) (182 ) — — Payment for debt issuance costs — — — (73 ) (211 ) — (284 ) Issuance of equity 5,000 — — — — — 5,000 Purchase of treasury stock (1,562 ) — — — — — (1,562 ) Proceeds from exercise of stock options 86 — — — — — 86 Settlement of restricted stock units — (59 ) — — — — (59 ) Purchase of noncontrolling interest — (218 ) — — — — (218 ) Distributions to noncontrolling interest — (96 ) — — — — (96 ) Proceeds from termination of interest rate derivatives — — — — 88 — 88 Contributions from parent — 1,013 — 478 437 (1,928 ) — Distributions to parent — (24,552 ) (22,353 ) (4,546 ) (5,096 ) 56,547 — Other, net — 3 (1 ) — (1 ) — 1 Net cash flows from financing activities 3,524 (24,209 ) (21,801 ) (3,948 ) (3,406 ) 54,619 4,779 NET INCREASE IN CASH AND CASH EQUIVALENTS 57 154 — — 1,319 — 1,530 CASH AND CASH EQUIVALENTS, beginning of period — — — — 5 — 5 CASH AND CASH EQUIVALENTS, end of period $ 57 $ 154 $ — $ — $ 1,324 $ — $ 1,535 Charter Communications, Inc. Condensed Consolidating Statement of Cash Flows For the year ended December 31, 2015 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary Eliminations Charter Consolidated NET CASH FLOWS FROM OPERATING ACTIVITIES $ (1 ) $ (5 ) $ (192 ) $ (663 ) $ 3,275 $ (55 ) $ — $ 2,359 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — — — — (1,840 ) — — (1,840 ) Change in accrued expenses related to capital expenditures — — — — 28 — — 28 Contribution to subsidiaries (20 ) (90 ) — (46 ) (24 ) — 180 — Distributions from subsidiaries 26 376 — 715 — — (1,117 ) — Change in restricted cash and cash equivalents — — (18,667 ) — — 3,514 — (15,153 ) Other, net — (55 ) — — (12 ) — — (67 ) Net cash flows from investing activities 6 231 (18,667 ) 669 (1,848 ) 3,514 (937 ) (17,032 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — 21,790 2,700 1,555 — — 26,045 Repayments of long-term debt — — (3,500 ) (2,598 ) (1,745 ) (3,483 ) — (11,326 ) Borrowings (payments) loans payable - related parties — — 581 (18 ) (563 ) — — — Payment for debt issuance costs — — (12 ) (24 ) — — — (36 ) Purchase of treasury stock (38 ) — — — — — — (38 ) Proceeds from exercise of stock options 30 — — — — — — 30 Contributions from parent — 95 — 15 46 24 (180 ) — Distributions to parent — (321 ) — (81 ) (715 ) — 1,117 — Net cash flows from financing activities (8 ) (226 ) 18,859 (6 ) (1,422 ) (3,459 ) 937 14,675 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (3 ) — — — 5 — — 2 CASH AND CASH EQUIVALENTS, beginning of period 3 — — — — — — 3 CASH AND CASH EQUIVALENTS, end of period $ — $ — $ — $ — $ 5 $ — $ — $ 5 Charter Communications, Inc. Condensed Consolidating Statement of Cash Flows For the year ended December 31, 2014 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary Eliminations Charter Consolidated NET CASH FLOWS FROM OPERATING ACTIVITIES: $ — $ (13 ) $ (12 ) $ (665 ) $ 3,086 $ (37 ) $ — $ 2,359 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — — — — (2,221 ) — — (2,221 ) Change in accrued expenses related to capital expenditures — — — — 33 — — 33 Sales of cable systems, net — — — — 11 — — 11 Contribution to subsidiaries (106 ) (600 ) — (100 ) (71 ) — 877 — Distributions from subsidiaries 5 30 — 1,132 — — (1,167 ) — Change in restricted cash and cash equivalents — — (3,598 ) — — (3,513 ) — (7,111 ) Other, net — (5 ) — — (11 ) — — (16 ) Net cash flows from investing activities (101 ) (575 ) (3,598 ) 1,032 (2,259 ) (3,513 ) (290 ) (9,304 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — 3,500 — 1,823 3,483 — 8,806 Repayments of long-term debt — — — (350 ) (1,630 ) — — (1,980 ) Borrowings (payments) loans payable - related parties — — 112 (112 ) — — — — Payment for debt issuance costs — — (2 ) — — (4 ) — (6 ) Purchase of treasury stock (19 ) — — — — — — (19 ) Proceeds from exercise of options and warrants 123 — — — — — — 123 Contributions from parent — 606 — 100 100 71 (877 ) — Distributions to parent — (30 ) — (5 ) (1,132 ) — 1,167 — Other, net — 7 — — (4 ) — — 3 Net cash flows from financing activities 104 583 3,610 (367 ) (843 ) 3,550 290 6,927 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 3 (5 ) — — (16 ) — — (18 ) CASH AND CASH EQUIVALENTS, beginning of period — 5 — — 16 — — 21 CASH AND CASH EQUIVALENTS, end of period $ 3 $ — $ — $ — $ — $ — $ — $ 3 |
Subsequent Events (Notes)
Subsequent Events (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In January 2017, Charter Operating entered into an amendment to its Credit Agreement decreasing the applicable LIBOR margin on both the term loan E and term loan F to 2.00% and eliminating the LIBOR floor. In February 2017, CCO Holdings and CCO Holdings Capital Corp. closed on transactions in which they issued $1.0 billion aggregate principal amount of 5.125% senior notes due May 1, 2027. The net proceeds will be used to redeem CCO Holdings’ 6.625% senior notes due 2022, pay related fees and expenses and for general corporate purposes. |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Consolidation Policy | Consolidation The accompanying consolidated financial statements include the accounts of Charter and all entities in which Charter has a controlling interest. The Company consolidates based upon evaluation of the Company’s power, through voting rights or similar rights, to direct the activities of another entity that most significantly impact the entity’s economic performance; its obligation to absorb the expected losses of the entity; and its right to receive the expected residual returns of the entity. Charter controls and consolidates Charter Holdings. The noncontrolling interest on the Company’s balance sheet primarily represents A/N’s minority equity interests in Charter Holdings. See Note 11. All significant inter-company accounts and transactions among consolidated entities have been eliminated in consolidation. |
Cash and Cash Equivalents Policy | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. These investments are carried at cost, which approximates market value. Cash and cash equivalents consist primarily of money market funds and commercial paper. |
Restricted Cash and Cash Equivalents Policy | Restricted Cash and Cash Equivalents Proceeds from the issuance of certain long-term debt were deposited into escrow accounts and were used for acquisition financing and were contractually restricted as to their withdrawal or use. See Note 2. The amounts held in escrow were classified as noncurrent restricted cash and cash equivalents in the Company’s consolidated balance sheets as of December 31, 2015. The Company’s restricted cash and cash equivalents were primarily invested in money market funds and 90-day or less commercial paper. The changes in restricted cash and cash equivalents are presented as an investing activity in the Company’s consolidated statements of cash flows. |
Property, Plant and Equipment Policy | Property, Plant and Equipment Additions to property, plant and equipment are recorded at cost, including all material, labor and certain indirect costs associated with the construction of cable transmission and distribution facilities. While the Company’s capitalization is based on specific activities, once capitalized, costs are tracked on a composite basis by fixed asset category at the cable system level and not on a specific asset basis. For assets that are sold or retired, the estimated historical cost and related accumulated depreciation is removed. Costs associated with the initial placement of the customer drop to the dwelling and the initial placement of outlets within a dwelling along with the costs associated with the initial deployment of customer premise equipment necessary to provide video, Internet or voice services are capitalized. Costs capitalized include materials, direct labor, and certain indirect costs. Indirect costs are associated with the activities of the Company’s personnel who assist in installation activities and consist of compensation and other costs associated with these support functions. Indirect costs primarily include employee benefits and payroll taxes, vehicle and occupancy costs, and the costs of sales and dispatch personnel associated with capitalizable activities. The costs of disconnecting service and removing customer premise equipment from a dwelling and the costs to reconnect a customer drop or to redeploy previously installed customer premise equipment are charged to operating expensed as incurred. Costs for repairs and maintenance are charged to operating expense as incurred, while plant and equipment replacement, including replacement of certain components, betterments, including replacement of cable drops and outlets, are capitalized. Depreciation is recorded using the straight-line composite method over management’s estimate of the useful lives of the related assets as follows: Cable distribution systems 7-20 years Customer premise equipment and installations 3-8 years Vehicles and equipment 3-6 years Buildings and improvements 15-40 years Furniture, fixtures and equipment 6-10 years |
Asset Retirement Obligations Policy | Asset Retirement Obligations Certain of the Company’s franchise agreements and leases contain provisions requiring the Company to restore facilities or remove equipment in the event that the franchise or lease agreement is not renewed. The Company expects to continually renew its franchise agreements and therefore cannot reasonably estimate any liabilities associated with such agreements. A remote possibility exists that franchise agreements could be terminated unexpectedly, which could result in the Company incurring significant expense in complying with restoration or removal provisions. The Company does not have any significant liabilities related to asset retirements recorded in its consolidated financial statements. |
Valuation of Long-Lived Assets Policy | Valuation of Long-Lived Assets The Company evaluates the recoverability of long-lived assets (e.g., property, plant and equipment and finite-lived intangible assets) to be held and used when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Such events or changes in circumstances could include such factors as impairment of the Company’s indefinite life assets, changes in technological advances, fluctuations in the fair value of such assets, adverse changes in relationships with local franchise authorities, adverse changes in market conditions or a deterioration of operating results. If a review indicates that the carrying value of such asset is not recoverable from estimated undiscounted cash flows, the carrying value of such asset is reduced to its estimated fair value. While the Company believes that its estimates of future cash flows are reasonable, different assumptions regarding such cash flows could materially affect its evaluations of asset recoverability. No impairments of long-lived assets to be held and used were recorded in 2016 , 2015 and 2014 . |
Other Noncurrent Assets Policy | Other Noncurrent Assets Other noncurrent assets primarily include investments, trademarks, right-of-entry costs and other intangible assets. The Company accounts for its investments in less than majority owned investees under either the equity or cost method. The Company applies the equity method to investments when it has the ability to exercise significant influence over the operating and financial policies of the investee. The Company’s share of the investee’s earnings (losses) is included in other expense, net in the consolidated statements of operations. The Company monitors its investments for indicators that a decrease in investment value has occurred that is other than temporary. If it has been determined that an investment has sustained an other than temporary decline in value, the investment is written down to fair value with a charge to earnings. Investments acquired are measured at fair value utilizing the acquisition method of accounting. The difference between the fair value and the amount of underlying equity in net assets for most equity method investments is due to previously unrecognized intangible assets at the investee. These amounts are amortized as a component of equity earnings (losses), recorded within other expense, net over the estimated useful life of the asset. Trademarks have been determined to have an indefinite life and are tested annually for impairment. Right-of-entry costs represent costs incurred related to agreements entered into with landlords, real estate companies or owners to gain access to a building in order to provide cable service. Right-of-entry costs are generally deferred and amortized to amortization expense over the term of the agreement. |
Revenue Recognition Policy | Revenue Recognition Revenues from residential and commercial video, Internet and voice services are recognized when the related services are provided. Advertising sales are recognized at estimated realizable values in the period that the advertisements are broadcast. In some cases, the Company coordinates the advertising sales efforts of other cable operators in a certain market and remits amounts received from customers less an agreed-upon percentage to such cable operator. For those arrangements in which the Company acts as a principal, the Company records the revenues earned from the advertising customer on a gross basis and the amount remitted to the cable operator as an operating expense. Fees imposed on the Company by various governmental authorities are passed through on a monthly basis to the Company’s customers and are periodically remitted to authorities. Fees of $711 million , $255 million and $248 million for the years ended December 31, 2016 , 2015 and 2014 , respectively, are reported in video, voice and commercial revenues, on a gross basis with a corresponding operating expense because the Company is acting as a principal . Other taxes, such as sales taxes imposed on the Company’s customers, collected and remitted to state and local authorities, are recorded on a net basis because the Company is acting as an agent in such situation. The Company’s revenues by product line are as follows: Year Ended December 31, 2016 2015 2014 Video $ 11,967 $ 4,587 $ 4,443 Internet 9,272 3,003 2,576 Voice 2,005 539 575 Residential revenue 23,244 8,129 7,594 Small and medium business 2,480 764 676 Enterprise 1,429 363 317 Commercial revenue 3,909 1,127 993 Advertising sales 1,235 309 341 Other 615 189 180 $ 29,003 $ 9,754 $ 9,108 |
Programming Costs Policy | Programming Costs The Company has various contracts to obtain video programming from vendors whose compensation is typically based on a flat fee per customer. The cost of the right to exhibit network programming under such arrangements is recorded in operating expenses in the month the programming is available for exhibition. Programming costs are paid each month based on calculations performed by the Company and are subject to periodic audits performed by the programmers. Certain programming contracts contain incentives to be paid by the programmers. The Company receives these payments and recognizes the incentives on a straight-line basis over the life of the programming agreement as a reduction of programming expense. Programming costs included in the statements of operations were $7.0 billion , $2.7 billion and $2.5 billion for the years ended December 31, 2016 , 2015 and 2014 , respectively. |
Advertising Costs Policy | Advertising Costs Advertising costs associated with marketing the Company’s products and services are generally expensed as costs are incurred. |
Multiple-Element Transactions Policy | Multiple-Element Transactions In the normal course of business, the Company enters into multiple-element transactions where it is simultaneously both a customer and a vendor with the same counterparty or in which it purchases multiple products and/or services, or settles outstanding items contemporaneous with the purchase of a product or service from a single counterparty. Transactions, although negotiated contemporaneously, may be documented in one or more contracts. The Company’s policy for accounting for each transaction negotiated contemporaneously is to record each element of the transaction based on the respective estimated fair values of the products or services purchased and the products or services sold. In determining the fair value of the respective elements, the Company refers to quoted market prices (where available), historical transactions or comparable cash transactions. |
Stock-Based Compensation Policy | Stock-Based Compensation Restricted stock, restricted stock units, stock options as well as equity awards with market conditions are measured at the grant date fair value and amortized to stock compensation expense over the requisite service period. The fair value of options is estimated on the date of grant using the Black-Scholes option-pricing model and the fair value of equity awards with market conditions is estimated on the date of grant using Monte Carlo simulations. The grant date weighted average assumptions used during the years ended December 31, 2016 , 2015 and 2014 , respectively, were: risk-free interest rate of 1.7% , 1.5% and 2.0% ; expected volatility of 25.4% , 34.7% and 36.9% ; and expected lives of 1.3 years, 6.5 years and 6.5 years. Weighted average assumptions for 2016 include the assumptions used for the Converted TWC Awards. Volatility assumptions were based on historical volatility of Legacy Charter and Legacy TWC. The Company’s volatility assumptions represent management’s best estimate and were partially based on historical volatility of Legacy TWC due to the completion of the Transactions. Expected lives were estimated using historical exercise data. The valuations assume no dividends are paid. |
Pension Plans Policy | Pension Plans The Company sponsors the TWC Pension Plan, TWC Union Pension Plan and TWC Excess Pension Plan (as defined in Note 21). Pension benefits are based on formulas that reflect the employees’ years of service and compensation during their employment period. Actuarial gains or losses are changes in the amount of either the benefit obligation or the fair value of plan assets resulting from experience different from that assumed or from changes in assumptions. The Company has elected to follow a mark-to-market pension accounting policy for recording the actuarial gains or losses annually during the fourth quarter, or earlier if a remeasurement event occurs during an interim period. |
Income Taxes Policy | Income Taxes The Company recognizes deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities and expected benefits of utilizing loss carryforwards. Since substantially all the Company’s operations are held through its partnership interest in Charter Holdings, the primary deferred tax component recorded in the consolidated balance sheet relates to the excess financial reporting outside basis, excluding amounts attributable to nondeductible goodwill, over Charter’s tax basis in its investment in the partnership. Valuation allowances are established when management determines that it is more likely than not that some portion or the entire deferred tax asset will not be realized. The impact on deferred taxes of changes in tax rates and tax law, if any, applied to the years during which temporary differences are expected to be settled, are reflected in the consolidated financial statements in the period of enactment. In determining the Company’s tax provision for financial reporting purposes, the Company establishes a reserve for uncertain tax positions unless such positions are determined to be “more likely than not” of being sustained upon examination, based on their technical merits. There is considerable judgment involved in making such a determination. Interest and penalties are recognized on uncertain income tax positions as part of the income tax provision. See Note 17. |
Segments Policy | Segments The Company’s operations are managed and reported to its Chief Executive Officer (“CEO”), the Company’s chief operating decision maker, on a consolidated basis. The CEO assesses performance and allocates resources based on the consolidated results of operations. Under this organizational and reporting structure, the Company has one reportable segment, cable services. |
Franchises, Goodwill and Othe34
Franchises, Goodwill and Other Intangible Assets (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Franchises, Goodwill and Other Intangible Assets [Abstract] | |
Goodwill and Intangible Assets Policy | Franchise rights represent the value attributed to agreements or authorizations with local and state authorities that allow access to homes in cable service areas. For valuation purposes, they are defined as the future economic benefits of the right to solicit and service potential customers (customer marketing rights), and the right to deploy and market new services to potential customers (service marketing rights). Management estimates the fair value of franchise rights at the date of acquisition and determines if the franchise has a finite life or an indefinite life. The Company has concluded that all of its franchises, including those acquired as part of the Transactions, qualify for indefinite life treatment given that there are no legal, regulatory, contractual, competitive, economic or other factors which limit the period over which these rights will contribute to our cash flows. We reassess this determination periodically or whenever events or substantive changes in circumstances occur. The estimated fair value of franchises is determined utilizing an income approach model based on the present value of the estimated discrete future cash flows attributable to each of the intangible assets identified assuming a discount rate. The fair value of franchises is determined based on estimated discrete discounted future cash flows using assumptions consistent with internal forecasts. The franchise after-tax cash flow is calculated as the after-tax cash flow generated by the potential customers obtained. The sum of the present value of the franchises’ after-tax cash flow in years 1 through 10 and the continuing value of the after-tax cash flow beyond year 10 yields the fair value of the franchises. This approach makes use of unobservable factors such as projected revenues, expenses, capital expenditures, customer trends, and a discount rate applied to the estimated cash flows. The determination of the franchise discount rate is derived from the Company’s weighted average cost of capital, which uses a market participant’s cost of equity and after-tax cost of debt and reflects the risks inherent in the cash flows. The Company estimates discounted future cash flows using reasonable and appropriate assumptions including among others, penetration rates for video, Internet, and voice; revenue growth rates; operating margins; and capital expenditures. The assumptions are based on the Company’s and its peers’ historical operating performance adjusted for current and expected competitive and economic factors surrounding the cable industry. The estimates and assumptions made in the Company’s valuations are inherently subject to significant uncertainties, many of which are beyond its control, and there is no assurance that these results can be achieved. The primary assumptions for which there is a reasonable possibility of the occurrence of a variation that would significantly affect the measurement value include the assumptions regarding revenue growth, programming expense growth rates, the amount and timing of capital expenditures, actual customer trends and the discount rate utilized. All franchises are tested for impairment annually or more frequently as warranted by events or changes in circumstances. Franchise assets are aggregated into essentially inseparable units of accounting to conduct valuations. The units of accounting generally represent geographical clustering of our cable systems into groups. The Company assesses qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that an indefinite lived intangible asset has been impaired. If, after this optional qualitative assessment, the Company determines that it is not more likely than not that an indefinite lived intangible asset has been impaired, then no further quantitative testing is necessary. In completing the qualitative impairment testing, the Company evaluates a multitude of factors that affect the fair value of our franchise assets. Examples of such factors include environmental and competitive changes within our operating footprint, actual and projected operating performance, the consistency of our operating margins, equity and debt market trends, including changes in our market capitalization, and changes in our regulatory and political landscape, among other factors. After consideration of the qualitative factors, in 2016 the Company concluded that it is more likely than not that the fair value of the franchise assets in each unit of accounting exceeds the carrying value of such assets and therefore did not perform a quantitative analysis. Periodically, the Company will elect to perform a quantitative analysis for impairment testing. If the Company elects or is required to perform a quantitative analysis to test its franchise assets for impairment, the methodology described above is utilized. The fair value of goodwill is determined using both an income approach and market approach. The Company’s income approach model used for its goodwill valuation is consistent with that used for its franchise valuation noted above except that cash flows from the entire business enterprise are used for the goodwill valuation. The Company’s market approach model estimates the fair value of the reporting unit based on market prices in actual precedent transactions of similar businesses and market valuations of guideline public companies. Goodwill is tested for impairment as of November 30 of each year , or more frequently as warranted by events or changes in circumstances. Accounting guidance also permits an optional qualitative assessment for goodwill to determine whether it is more likely than not that the carrying value of a reporting unit exceeds its fair value. If, after this qualitative assessment, the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount then no further quantitative testing would be necessary. If the Company elects or is required to perform the two-step test under the accounting guidance, the first step involves a comparison of the estimated fair value of the reporting unit to its carrying amount. If the estimated fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered impaired and the second step of the goodwill impairment is not necessary. If the carrying amount of a reporting unit exceeds its estimated fair value, then the second step of the goodwill impairment test must be performed, and a comparison of the implied fair value of the reporting unit’s goodwill is compared to its carrying amount to determine the amount of impairment, if any. As with the Company’s franchise impairment testing, in 2016 the Company elected to perform a qualitative goodwill impairment assessment and concluded that goodwill is not impaired. Customer relationships are recorded at fair value as of the date acquired less accumulated amortization. Customer relationships, for valuation purposes, represent the value of the business relationship with existing customers, and are calculated by projecting the discrete future after-tax cash flows from these customers, including the right to deploy and market additional services to these customers. The present value of these after-tax cash flows yields the fair value of the customer relationships. The use of different valuation assumptions or definitions of franchises or customer relationships, such as our inclusion of the value of selling additional services to our current customers within customer relationships versus franchises, could significantly impact our valuations and any resulting impairment. Customer relationships are amortized on an accelerated sum of years’ digits method over useful lives of 8 - 15 years based on the period over which current customers are expected to generate cash flows. The Company periodically evaluates the remaining useful lives of its customer relationships to determine whether events or circumstances warrant revision to the remaining periods of amortization. Customer relationships are evaluated for impairment upon the occurrence of events or changes in circumstances indicating that the carrying amount of an asset may not be recoverable. Customer relationships are deemed impaired when the carrying value exceeds the projected undiscounted future cash flows associated with the customer relationships. No impairment of customer relationships was recorded in the years ended December 31, 2016 , 2015 or 2014 . The fair value of trademarks is determined using the relief-from-royalty method, a variation of the income approach, which applies a fair royalty rate to estimated revenue derived under the Company’s trademarks. The fair value of the intangible is estimated to be the present value of the royalty saved because the Company owns the trademarks. Royalty rates are estimated based on a review of market royalty rates in the communications and entertainment industries. As the Company expects to continue to use each trademark indefinitely, trademarks have been assigned an indefinite life and are tested annually for impairment using either a qualitative analysis or quantitative analysis as elected by management. |
Accounting for Derivative Ins35
Accounting for Derivative Instruments and Hedging Activities (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting for Derivative Instruments and Hedging Activities [Abstract] | |
Derivative Instruments Policy | The Company uses derivative instruments to manage interest rate risk on variable debt and foreign exchange risk on the Sterling Notes, and does not hold or issue derivative instruments for speculative trading purposes. |
Mergers and Acquisitions (Table
Mergers and Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Mergers and Acquisitions: | |
Schedule of Pro Forma Financial Information | The pro forma financial information also should not be considered representative of the Company’s future financial condition or results of operations. Year Ended December 31, 2016 2015 Revenues $ 40,023 $ 37,394 Net income attributable to Charter shareholders $ 1,070 $ 159 Earnings per common share attributable to Charter shareholders: Basic $ 3.97 $ 0.59 Diluted $ 3.91 $ 0.58 |
TWC Transaction [Member] | |
Mergers and Acquisitions: | |
Schedule of Calculation and Preliminary Allocation of Purchase Price | TWC Purchase Price Shares of Charter Class A common stock issued (including the Liberty Parties) (in millions) 143.0 Charter Class A common stock closing price per share $ 224.91 Fair value of Charter Class A common stock issued $ 32,164 Cash paid to Legacy TWC stockholders (excluding the Liberty Parties) $ 27,770 Pre-combination vesting period fair value of Converted TWC Awards 514 Cash paid for Legacy TWC non-employee equity awards 69 Total purchase price $ 60,517 TWC Preliminary Allocation of Purchase Price Cash and cash equivalents $ 1,058 Current assets 1,308 Property, plant and equipment 21,413 Customer relationships 13,460 Franchises 54,085 Goodwill 28,292 Other noncurrent assets 1,040 Accounts payable and accrued liabilities (3,925 ) Debt (24,900 ) Deferred income taxes (28,148 ) Other long-term liabilities (3,162 ) Noncontrolling interests (4 ) $ 60,517 |
Bright House Transaction [Member] | |
Mergers and Acquisitions: | |
Schedule of Calculation and Preliminary Allocation of Purchase Price | Bright House Purchase Price Charter Holdings common units issued to A/N (in millions) 31.0 Charter Class A common stock closing price per share $ 224.91 Fair value of Charter Holdings common units issued to A/N $ 6,971 Fair value of Charter Holdings convertible preferred units issued to A/N 3,163 Cash paid to A/N 2,022 Total purchase price $ 12,156 Bright House Preliminary Allocation of Purchase Price Current assets $ 131 Property, plant and equipment 2,884 Customer relationships 2,150 Franchises 7,225 Goodwill 44 Other noncurrent assets 86 Accounts payable and accrued liabilities (330 ) Other long-term liabilities (12 ) Noncontrolling interests (22 ) $ 12,156 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Property, Plant and Equipment Useful Lives | Depreciation is recorded using the straight-line composite method over management’s estimate of the useful lives of the related assets as follows: Cable distribution systems 7-20 years Customer premise equipment and installations 3-8 years Vehicles and equipment 3-6 years Buildings and improvements 15-40 years Furniture, fixtures and equipment 6-10 years |
Schedule of Revenues by Product Line | The Company’s revenues by product line are as follows: Year Ended December 31, 2016 2015 2014 Video $ 11,967 $ 4,587 $ 4,443 Internet 9,272 3,003 2,576 Voice 2,005 539 575 Residential revenue 23,244 8,129 7,594 Small and medium business 2,480 764 676 Enterprise 1,429 363 317 Commercial revenue 3,909 1,127 993 Advertising sales 1,235 309 341 Other 615 189 180 $ 29,003 $ 9,754 $ 9,108 |
Allowance for Doubtful Accoun38
Allowance for Doubtful Accounts (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Allowance for Doubtful Accounts [Abstract] | |
Schedule of Allowance for Doubtful Accounts | Activity in the allowance for doubtful accounts is summarized as follows for the years presented: Year Ended December 31, 2016 2015 2014 Balance, beginning of period $ 21 $ 22 $ 19 Charged to expense 328 135 122 Uncollected balances written off, net of recoveries (225 ) (136 ) (119 ) Balance, end of period $ 124 $ 21 $ 22 |
Property, Plant and Equipment39
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consists of the following as of December 31, 2016 and 2015 : December 31, 2016 2015 Cable distribution systems $ 23,317 $ 8,158 Customer premise equipment and installations 12,867 4,632 Vehicles and equipment 1,212 384 Buildings and improvements 3,426 570 Furniture, fixtures and equipment 3,244 1,119 44,066 14,863 Less: accumulated depreciation (11,103 ) (6,518 ) $ 32,963 $ 8,345 |
Franchises, Goodwill and Othe40
Franchises, Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Franchises, Goodwill and Other Intangible Assets [Abstract] | |
Schedule of Intangible Assets | As of December 31, 2016 and 2015 , indefinite-lived and finite-lived intangible assets are presented in the following table: December 31, 2016 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Indefinite-lived intangible assets: Franchises $ 67,316 $ — $ 67,316 $ 6,006 $ — $ 6,006 Goodwill 29,509 — 29,509 1,168 — 1,168 Trademarks 159 — 159 159 — 159 Other intangible assets 4 — 4 4 — 4 $ 96,988 $ — $ 96,988 $ 7,337 $ — $ 7,337 Finite-lived intangible assets: Customer relationships $ 18,226 $ (3,618 ) $ 14,608 $ 2,616 $ (1,760 ) $ 856 Other intangible assets 615 (128 ) 487 173 (82 ) 91 $ 18,841 $ (3,746 ) $ 15,095 $ 2,789 $ (1,842 ) $ 947 |
Schedule of Expected Future Amortization Expense | The Company expects amortization expense on its finite-lived intangible assets will be as follows. 2017 $ 2,743 2018 2,461 2019 2,178 2020 1,886 2021 1,602 Thereafter 4,225 $ 15,095 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments [Abstract] | |
Schedule of investments | Investments consisted of the following as of December 31, 2016 and 2015 : December 31, 2016 2015 Equity-method investments 519 53 Other investments 11 2 Total investments $ 530 $ 55 |
Accounts Payable and Accrued 42
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consist of the following as of December 31, 2016 and 2015 : December 31, 2016 2015 Accounts payable – trade $ 454 $ 134 Deferred revenue 352 96 Accrued liabilities: Programming costs 1,783 451 Compensation 1,111 191 Capital expenditures 1,107 296 Interest 958 445 Taxes and regulatory fees 538 128 Property and casualty 394 74 Other 847 157 $ 7,544 $ 1,972 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following as of December 31, 2016 and 2015 : December 31, 2016 2015 Principal Amount Accreted Value Principal Amount Accreted Value CCOH Safari, LLC: 5.750% senior notes due February 15, 2026 $ — $ — $ 2,500 $ 2,499 CCO Safari II, LLC: 3.579% senior notes due July 23, 2020 — — 2,000 1,999 4.464% senior notes due July 23, 2022 — — 3,000 2,998 4.908% senior notes due July 23, 2025 — — 4,500 4,497 6.384% senior notes due October 23, 2035 — — 2,000 1,999 6.484% senior notes due October 23, 2045 — — 3,500 3,498 6.834% senior notes due October 23, 2055 — — 500 500 CCO Safari III, LLC: Credit facilities — — 3,800 3,788 CCO Holdings, LLC: 7.000% senior notes due January 15, 2019 — — 600 594 7.375% senior notes due June 1, 2020 — — 750 744 5.250% senior notes due March 15, 2021 500 496 500 496 6.500% senior notes due April 30, 2021 — — 1,500 1,487 6.625% senior notes due January 31, 2022 750 741 750 740 5.250% senior notes due September 30, 2022 1,250 1,232 1,250 1,229 5.125% senior notes due February 15, 2023 1,000 992 1,000 990 5.125% senior notes due May 1, 2023 1,150 1,141 1,150 1,140 5.750% senior notes due September 1, 2023 500 496 500 495 5.750% senior notes due January 15, 2024 1,000 991 1,000 990 5.875% senior notes due April 1, 2024 1,700 1,685 — — 5.375% senior notes due May 1, 2025 750 744 750 744 5.750% senior notes due February 15, 2026 2,500 2,460 — — 5.500% senior notes due May 1, 2026 1,500 1,487 — — 5.875% senior notes due May 1, 2027 800 794 800 794 Charter Communications Operating, LLC: 3.579% senior notes due July 23, 2020 2,000 1,983 — — 4.464% senior notes due July 23, 2022 3,000 2,973 — — 4.908% senior notes due July 23, 2025 4,500 4,458 — — 6.384% senior notes due October 23, 2035 2,000 1,980 — — 6.484% senior notes due October 23, 2045 3,500 3,466 — — 6.834% senior notes due October 23, 2055 500 495 — — Credit facilities 8,916 8,814 3,552 3,502 Time Warner Cable, LLC: 5.850% senior notes due May 1, 2017 2,000 2,028 — — 6.750% senior notes due July 1, 2018 2,000 2,135 — — 8.750% senior notes due February 14, 2019 1,250 1,412 — — 8.250% senior notes due April 1, 2019 2,000 2,264 — — 5.000% senior notes due February 1, 2020 1,500 1,615 — — 4.125% senior notes due February 15, 2021 700 739 — — 4.000% senior notes due September 1, 2021 1,000 1,056 — — 5.750% sterling senior notes due June 2, 2031 (a) 770 834 — — 6.550% senior debentures due May 1, 2037 1,500 1,691 — — 7.300% senior debentures due July 1, 2038 1,500 1,795 — — 6.750% senior debentures due June 15, 2039 1,500 1,730 — — 5.875% senior debentures due November 15, 2040 1,200 1,259 — — 5.500% senior debentures due September 1, 2041 1,250 1,258 — — 5.250% sterling senior notes due July 15, 2042 (b) 800 771 — — 4.500% senior debentures due September 15, 2042 1,250 1,135 — — Time Warner Cable Enterprises LLC: 8.375% senior debentures due March 15, 2023 1,000 1,273 — — 8.375% senior debentures due July 15, 2033 1,000 1,324 — — Total debt 60,036 61,747 35,902 35,723 Less current portion: 5.850% senior notes due May 1, 2017 (2,000 ) (2,028 ) — — Long-term debt $ 58,036 $ 59,719 $ 35,902 $ 35,723 (a) Principal amount includes £625 million valued at $770 million as of December 31, 2016 using the exchange rate at that date. (b) Principal amount includes £650 million valued at $800 million as of December 31, 2016 using the exchange rate at that date. |
Schedule of Long-Term Debt Future Principal Payments | Based upon outstanding indebtedness as of December 31, 2016 , the amortization of term loans, and the maturity dates for all senior and subordinated notes, total future principal payments on the total borrowings under all debt agreements as of December 31, 2016 , are as follows: Year Amount 2017 $ 2,197 2018 2,197 2019 3,546 2020 5,216 2021 5,128 Thereafter 41,752 $ 60,036 |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Common Stock [Abstract] | |
Schedule of Changes in Common Stock Outstanding | The following table summarizes our shares outstanding for the three years ended December 31, 2016 : Class A Common Stock Class B Common Stock BALANCE, December 31, 2013 106,144,075 — Exercise of stock options 640,342 — Restricted stock issuances, net of cancellations 9,090 — Stock issuances from exercise of warrants 5,243,167 — Restricted stock unit vesting 104,270 — Purchase of treasury stock (141,257 ) — BALANCE, December 31, 2014 111,999,687 — Exercise of stock options 579,173 — Restricted stock issuances, net of cancellations 6,920 — Restricted stock unit vesting 98,831 — Purchase of treasury stock (245,783 ) — BALANCE, December 31, 2015 112,438,828 — Reorganization of common stock (10,771,404 ) — Issuance of shares in TWC Transaction 143,012,155 — Issuance of shares to Liberty Broadband for cash 25,631,339 — Issuance of share to A/N in Bright House Transaction — 1 Exchange of Charter Holdings units held by A/N 1,852,832 — Exercise of stock options 1,014,664 — Restricted stock issuances, net of cancellations 9,811 — Restricted stock unit vesting 1,738,792 — Purchase of treasury stock (6,029,225 ) — BALANCE, December 31, 2016 268,897,792 1 |
Accounting for Derivative Ins45
Accounting for Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting for Derivative Instruments and Hedging Activities [Abstract] | |
Schedule of Derivative Instruments Effect on Balance Sheet | December 31, 2016 2015 Interest Rate Derivatives Accrued interest $ 5 $ 3 Other long-term liabilities $ — $ 10 Accumulated other comprehensive loss $ (5 ) $ (13 ) Cross-Currency Derivatives Other long-term liabilities $ 251 $ — |
Schedule of Gain (Loss) on Financial Instruments, Net | The effect of financial instruments on the consolidated statements of operations is presented in the table below. Year Ended December 31, 2016 2015 2014 Gain (Loss) on Financial Instruments, Net: Change in fair value of interest rate derivative instruments $ 8 $ 5 $ 12 Change in fair value of cross-currency derivative instruments (179 ) — — Remeasurement of Sterling Notes to U.S. dollars 279 — — Loss on termination of interest rate derivative instruments (11 ) — — Loss reclassified from accumulated other comprehensive loss due to discontinuance of hedge accounting (8 ) (9 ) (19 ) $ 89 $ (4 ) $ (7 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Measurements [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The Company’s financial instruments that are accounted for at fair value on a recurring basis are presented in the table below. December 31, 2016 December 31, 2015 Level 1 Level 2 Level 1 Level 2 Assets Money market funds $ 1,205 $ — $ 14,330 $ — Commercial paper $ — $ — $ — $ 7,934 Liabilities Interest rate derivative instruments $ — $ 5 $ — $ 13 Cross-currency derivative instruments $ — $ 251 $ — $ — |
Summary of Carrying and Fair Value of Debt | A summary of the carrying value and fair value of the Company’s debt at December 31, 2016 and 2015 is as follows: December 31, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Debt Senior notes and debentures $ 52,933 $ 55,203 $ 28,433 $ 28,744 Credit facilities $ 8,814 $ 8,943 $ 7,290 $ 7,274 |
Operating Costs and Expenses (T
Operating Costs and Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Operating Costs and Expenses [Abstract] | |
Schedule of Operating Costs and Expenses | : Year Ended December 31, 2016 2015 2014 Programming $ 7,034 $ 2,678 $ 2,459 Regulatory, connectivity and produced content 1,467 435 428 Costs to service customers 5,173 1,705 1,679 Marketing 1,699 628 617 Transition costs 156 72 14 Other 3,126 908 776 $ 18,655 $ 6,426 $ 5,973 |
Other Operating Expenses, Net48
Other Operating Expenses, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Operating Expenses, Net [Abstract] | |
Schedule of Other Operating Expenses, Net | Other operating expenses, net consist of the following for the years presented: Year Ended December 31, 2016 2015 2014 Merger and restructuring costs $ 970 $ 70 $ 38 Other pension benefits (899 ) — — Special charges, net 17 15 14 (Gain) loss on sale of assets, net (2 ) 4 10 $ 86 $ 89 $ 62 |
Schedule of Accrued Merger And Restructuring Costs by Type of Cost | Changes in accruals for merger and restructuring costs from January 1, 2016 through December 31, 2016 are presented below: Employee Retention Costs Employee Termination Costs Transaction and Advisory Costs Other Costs Total Liability, December 31, 2015 $ — $ — $ 33 $ — $ 33 Liability assumed in the Transactions 80 9 3 — 92 Costs incurred 26 337 318 41 722 Cash paid (99 ) (102 ) (329 ) (41 ) (571 ) Remaining liability, December 31, 2016 $ 7 $ 244 $ 25 $ — $ 276 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stock Compensation Plans [Abstract] | |
Schedule of Stock Option Activity | A summary of the activity for the Company’s stock options (after applying the Parent Merger Exchange Ratio) for the years ended December 31, 2016 , 2015 and 2014 , is as follows (shares in thousands, except per share data): Year Ended December 31, 2016 2015 2014 Shares Weighted Average Exercise Price Aggregate Intrinsic Value Shares Weighted Average Exercise Price Aggregate Intrinsic Value Shares Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding, beginning of period 3,923 $ 122.03 3,336 $ 95.44 2,841 $ 66.20 Granted 5,999 $ 218.91 1,176 $ 177.14 1,116 $ 151.24 Converted TWC Awards 839 $ 86.46 — $ — — $ — Exercised (1,015 ) $ 96.33 $ 146 (524 ) $ 72.27 $ 68 (579 ) $ 58.07 $ 55 Canceled (154 ) $ 173.98 (65 ) $ 155.23 (42 ) $ 115.65 Outstanding, end of period 9,592 $ 181.39 $ 1,022 3,923 $ 122.03 3,336 $ 95.44 Weighted average remaining contractual life 8 years 7 years 7 years Options exercisable, end of period 1,665 $ 71.71 $ 360 1,224 $ 61.88 1,193 $ 61.76 Options expected to vest, end of period 7,686 $ 205.49 $ 634 Weighted average fair value of options granted $ 47.42 $ 66.20 $ 60.92 |
Schedule of Restricted Stock Activity | A summary of the activity for the Company’s restricted stock (after applying the Parent Merger Exchange Ratio) for the years ended December 31, 2016 , 2015 and 2014 , is as follows (shares in thousands, except per share data): Year Ended December 31, 2016 2015 2014 Shares Weighted Average Grant Price Shares Weighted Average Grant Price Shares Weighted Average Grant Price Outstanding, beginning of period 197 $ 65.79 390 $ 63.30 590 $ 62.09 Granted 10 $ 231.83 6 $ 201.34 8 $ 153.25 Vested (197 ) $ 65.79 (199 ) $ 65.16 (208 ) $ 63.43 Canceled — $ — — $ — — $ — Outstanding, end of period 10 $ 231.81 197 $ 65.79 390 $ 63.30 |
Schedule of Restricted Stock Unit Activity | A summary of the activity for the Company’s restricted stock units (after applying the Parent Merger Exchange Ratio) for the years ended December 31, 2016 , 2015 and 2014 , is as follows (shares in thousands, except per share data): Year Ended December 31, 2016 2015 2014 Shares Weighted Average Grant Price Shares Weighted Average Grant Price Shares Weighted Average Grant Price Outstanding, beginning of period 337 $ 150.96 294 $ 115.01 260 $ 82.64 Granted 895 $ 213.09 148 $ 179.17 139 $ 151.00 Converted TWC Awards 4,162 $ 224.90 — $ — — $ — Vested (1,739 ) $ 219.60 (90 ) $ 78.65 (94 ) $ 77.67 Canceled (342 ) $ 219.91 (15 ) $ 155.43 (11 ) $ 124.44 Outstanding, end of period 3,313 $ 192.41 337 $ 150.96 294 $ 115.01 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Schedule of Income Tax Benefit (Expense) | For the years ended December 31, 2016 , 2015 , and 2014 , the Company recorded deferred income tax benefit (expense) as shown below. The tax provision in future periods will vary based on current and future temporary differences, as well as future operating results. Year Ended December 31, 2016 2015 2014 Current expense: Federal income taxes $ (4 ) $ (1 ) $ (1 ) State income taxes (29 ) (4 ) (2 ) Current income tax expense (33 ) (5 ) (3 ) Deferred benefit (expense): Federal income taxes 2,549 53 (192 ) State income taxes 409 12 (41 ) Deferred income tax benefit (expense) 2,958 65 (233 ) Income tax benefit (expense) $ 2,925 $ 60 $ (236 ) |
Schedule of Effective Tax Rate Reconciliation | The Company’s effective tax rate differs from that derived by applying the applicable federal income tax rate of 35% for the years ended December 31, 2016 , 2015 , and 2014 , respectively, as follows: Year Ended December 31, 2016 2015 2014 Statutory federal income taxes $ (288 ) $ 116 $ (18 ) Statutory state income taxes, net (36 ) (4 ) (2 ) Nondeductible expenses (62 ) (12 ) (10 ) Net income attributable to noncontrolling interest 78 — — Change in valuation allowance 3,171 (250 ) (203 ) Organizational restructuring — 187 — Federal tax credits 16 18 — State rate changes 65 4 (3 ) Other (19 ) 1 — Income tax benefit (expense) $ 2,925 $ 60 $ (236 ) |
Schedule of Deferred Tax Assets (Liabilities) | The tax effects of these temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2016 and 2015 are presented below. December 31, 2016 2015 Deferred tax assets: Loss carryforwards $ 4,127 $ 4,247 Goodwill — 315 Other intangibles — 211 Accrued and other 243 227 Total gross deferred tax assets 4,370 5,000 Less: valuation allowance (200 ) (3,186 ) Deferred tax assets $ 4,170 $ 1,814 Deferred tax liabilities: Investment in partnership $ (30,832 ) $ — Indefinite-lived intangibles — (1,582 ) Property, plant and equipment — (1,822 ) Accrued and other (3 ) — Deferred tax liabilities (30,835 ) (3,404 ) Net deferred tax liabilities $ (26,665 ) $ (1,590 ) |
Roll Forward of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits, exclusive of interest and penalties, included in other long-term liabilities on the accompanying consolidated balance sheets of the Company is as follows: BALANCE, December 31, 2014 $ — Additions on current year tax positions 5 BALANCE, December 31, 2015 5 Additions on prior year tax positions 1 Additions on current year tax positions 7 Additions on tax positions assumed in the TWC Transaction 181 Reductions on settlements and expirations with taxing authorities (22 ) BALANCE, December 31, 2016 $ 172 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings (Loss) Per Share [Abstract] | |
Schedule of Earnings (Loss) per Share | The following is the computation of diluted earnings per common share for the year ended December 31, 2016 . 2016 Numerator: Net income attributable to Charter shareholders $ 3,522 Effect of dilutive securities: Charter Holdings common units 129 Charter Holdings convertible preferred units 93 Net income attributable to Charter shareholders after assumed conversions $ 3,744 Denominator: Weighted average common shares outstanding, basic 206,539,100 Effect of dilutive securities: Assumed exercise or issuance of shares relating to stock plans 3,088,871 Weighted average Charter Holdings common units 19,333,227 Weighted average Charter Holdings convertible preferred units 5,830,241 Weighted average common shares outstanding, diluted 234,791,439 Basic earnings per common share attributable to Charter shareholders $ 17.05 Diluted earnings per common share attributable to Charter shareholders $ 15.94 |
Commitments and Contingencies52
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
Schedule of Contractual Obligation Payments | The following table summarizes the Company’s payment obligations as of December 31, 2016 for its contractual obligations. Total 2017 2018 2019 2020 2021 Thereafter Capital and Operating Lease Obligations (a) $ 1,324 $ 259 $ 225 $ 180 $ 142 108 $ 410 Programming Minimum Commitments (b) 310 225 37 26 22 — — Other (c) 13,187 1,334 810 704 664 539 9,136 $ 14,821 $ 1,818 $ 1,072 $ 910 $ 828 $ 647 $ 9,546 (a) The Company leases certain facilities and equipment under non-cancelable capital and operating leases. Leases and rental costs charged to expense for the years ended December 31, 2016 , 2015 and 2014 were $215 million , $49 million , $43 million , respectively. (b) The Company pays programming fees under multi-year contracts ranging from three to ten years, typically based on a flat fee per customer, which may be fixed for the term, or may in some cases escalate over the term. Programming costs included in the statement of operations were $7.0 billion , $2.7 billion and $2.5 billion for the years ended December 31, 2016 , 2015 and 2014 respectively. Certain of the Company’s programming agreements are based on a flat fee per month or have guaranteed minimum payments. The table sets forth the aggregate guaranteed minimum commitments under the Company’s programming contracts. (c) “Other” represents other guaranteed minimum commitments, including rights negotiated directly with content owners for distribution on Company-owned channels or networks and commitments related to the Company’s role as an advertising and distribution sales agent for third party-owned channels or networks as well as commitments to the Company’s customer premise equipment vendors. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Employee Benefit Plans [Abstract] | |
Schedule of Changes in Projected Benefit Obligations and Fair Value of Plan Assets | Changes in the projected benefit obligation, fair value of plan assets and funded status of the pension plans from January 1, 2016 through December 31, 2016 are presented below: 2016 Projected benefit obligation at beginning of year $ — Benefit obligation assumed in the TWC Transaction 4,009 Service cost 86 Interest cost 87 Curtailment amendment (675 ) Actuarial gain (149 ) Benefits paid (98 ) Projected benefit obligation at end of year $ 3,260 Accumulated benefit obligation at end of year $ 3,260 Fair value of plan assets at beginning of year $ — Fair value of plan assets acquired in the TWC Transaction 2,877 Actual return on plan assets 162 Employer contributions 5 Benefits paid (98 ) Fair value of plan assets at end of year $ 2,946 Funded status $ (314 ) The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the qualified pension plans and the nonqualified pension plan as of December 31, 2016 consisted of the following: Qualified Pension Plans Nonqualified Pension Plan December 31, 2016 Projected benefit obligation $ 3,204 $ 56 Accumulated benefit obligation $ 3,204 $ 56 Fair value of plan assets $ 2,946 $ — |
Schedule of Amounts Recognized in the Balance Sheet | Pretax amounts recognized in the consolidated balance sheet as of December 31, 2016 consisted of the following: December 31, 2016 Noncurrent asset $ 1 Current liability (6 ) Long-term liability (309 ) Net amounts recognized in consolidated balance sheet $ (314 ) |
Schedule of Net Benefit Costs | The components of net periodic benefit costs for the year ended December 31, 2016 consisted of the following: Year Ended December 31, 2016 Service cost $ 86 Interest cost 87 Expected return on plan assets (116 ) Pension curtailment gain (675 ) Remeasurement gain (195 ) Net periodic pension benefit $ (813 ) |
Schedule of Assumptions Used in the Calculation of Benefit Obligations | Weighted average assumptions used to determine benefit obligations as of December 31, 2016 consisted of the following: December 31, 2016 Discount rate 4.20 % Rate of compensation increase — % |
Schedule of Assumptions Used in the Calculation of Net Benefit Cost | Weighted average assumptions used to determine net periodic benefit costs for the year ended December 31, 2016 consisted of the following: Year Ended December 31, 2016 Expected long-term rate of return on plan assets 6.50 % Discount rate (a) 3.72 % Rate of compensation increase (b) — % (a) The discount rate used to determine net periodic pension benefit was 3.99% from the closing date of the TWC Transaction through remeasurement date (June 30, 2016), and was 3.72% from remeasurement date through December 31, 2016 . (b) The rate of compensation increase used to determine net periodic pension benefit was 4.25% from the closing date of the TWC Transaction through remeasurement date (June 30, 2016), and 0% thereafter. See “Pension Plan Curtailment Amendment” below for further discussion. |
Schedule of Allocation of Plan Assets | The target and actual investment allocation of the qualified pension plans by asset category as of December 31, 2016 consisted of the following: Target Actual Allocation Allocation December 31, 2016 Return-seeking securities 75.0 % 64.4 % Liability-matching securtties 25.0 % 35.4 % Other investments — % 0.2 % The following table sets forth the investment assets of the qualified pension plans, which exclude accrued investment income and other receivables, accrued liabilities, and investments with a fair value measured at net asset value per share as a practical expedient, by level within the fair value hierarchy as of December 31, 2016 : December 31, 2016 Fair Value Level 1 Level 2 Level 3 Cash $ 2 $ 2 $ — $ — Common stocks: Domestic (a) 1,065 1,065 — — International (a) 391 391 — — Commingled equity funds (b) 348 — 348 — Other equity securities (c) 3 3 — — Corporate debt securities (d) 394 — 394 — Commingled bond funds (b) 273 — 273 — U.S. Treasury debt securities (a) 260 260 — — Collective trust funds (e) 75 — 75 — U.S. government agency asset-backed debt securities (f) 53 — 53 — Corporate asset-backed debt securities (g) 2 — 2 — Other fixed-income securities (h) 89 — 89 — Total investment assets 2,955 $ 1,721 $ 1,234 $ — Accrued investment income and other receivables (i) 107 Accrued liabilities (i) (120 ) Investments measured at net asset value (j) 4 Fair value of plan assets $ 2,946 (a) Common stocks, mutual funds and U.S. Treasury debt securities are valued at the closing price reported on the active market on which the individual securities are traded. No single industry comprised a significant portion of common stock held by the qualified pension plan as of December 31, 2016 . (b) Commingled equity funds and commingled bond funds are valued using the net asset value provided by the administrator of the fund. The net asset value is based on the readily determinable value of the underlying assets owned by the fund, less liabilities, and then divided by the number of units outstanding. (c) Other equity securities consist of preferred stocks, which are valued at the closing price reported on the active market on which the individual securities are traded. (d) Corporate debt securities are valued based on observable prices from the new issue market, benchmark quotes, secondary trading and dealer quotes. An option adjusted spread model is incorporated to adjust spreads of issues that have early redemption features and final spreads are added to the U.S. Treasury curve. (e) Collective trust funds primarily consist of short-term investment strategies comprised of instruments issued or fully guaranteed by the U.S. government and/or its agencies and are valued using the net asset value provided by the administrator of the fund. The net asset value is based on the readily determinable value of the underlying assets owned by the fund, less liabilities, and then divided by the number of units outstanding. (f) U.S. government agency asset-backed debt securities consist of pass-through mortgage-backed securities issued by the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association valued using available trade information, dealer quotes, market indices and research reports, spreads, bids and offers. (g) Corporate asset-backed debt securities primarily consist of pass-through mortgage-backed securities issued by U.S. and foreign corporations valued using available trade information, dealer quotes, market indices and research reports, spreads, bids and offers. (h) Other fixed-income securities consist of foreign government debt securities, municipal bonds and U.S. government agency debt securities, which are valued based on observable prices from the new issue market, benchmark quotes, secondary trading and dealer quotes. An option adjusted spread model is incorporated to adjust spreads of issues that have early redemption features and final spreads are added to the U.S. Treasury curve. (i) Accrued investment income and other receivables includes amounts receivable under foreign exchange contracts of $70 million as of December 31, 2016 . Accrued liabilities includes amounts accrued under foreign exchange contracts of $71 million as of December 31, 2016 . The fair value of the assets and liabilities associated with these foreign exchange contracts are presented on a gross basis and are valued using the exchange rates in effect for the applicable currencies as of the valuation date (a Level 1 fair value measurement). (j) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. These investments primarily consist of hedge funds valued utilizing net asset value provided by the administrator of the fund, which is based on the value of the underlying assets owned by the fund, less liabilities, and then divided by the number of units outstanding. Shares of the fund are not redeemable and the underlying assets are anticipated to be liquidated and distributed to investors in the near term. There are no material unfunded commitments with respect to these investments. The fair value amounts presented in this table are intended to permit the reconciliation of the fair value hierarchy to the total fair value of plan assets discussed throughout this footnote. |
Unaudited Quarterly Financial54
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Unaudited Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | The following table presents quarterly data for the periods presented in the consolidated statement of operations: Year Ended December 31, 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 2,530 $ 6,161 $ 10,037 $ 10,275 Income from operations $ 302 $ 690 $ 924 $ 1,439 Net income (loss) attributable to Charter shareholders $ (188 ) $ 3,067 $ 189 $ 454 Earnings (loss) per common share attributable to Charter shareholders: Basic $ (1.86 ) $ 16.73 $ 0.70 $ 1.69 Diluted $ (1.86 ) $ 15.17 $ 0.69 $ 1.67 Weighted average common share outstanding: Basic 101,552,093 183,362,776 271,263,259 268,584,368 Diluted 101,552,093 205,214,266 275,373,202 272,624,270 Year Ended December 31, 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 2,362 $ 2,430 $ 2,450 $ 2,512 Income from operations $ 249 $ 269 $ 273 $ 323 Net income (loss) attributable to Charter shareholders $ (81 ) $ (122 ) $ 54 $ (122 ) Earnings (loss) per common share attributable to Charter shareholders: Basic $ (0.81 ) $ (1.21 ) $ 0.54 $ (1.21 ) Diluted $ (0.81 ) $ (1.21 ) $ 0.53 $ (1.21 ) Weighted average common share outstanding: Basic 100,959,008 101,074,644 101,205,400 101,366,476 Diluted 100,959,008 101,074,644 102,481,924 101,366,476 |
Consolidating Schedules (Tables
Consolidating Schedules (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Consolidating Schedules [Abstract] | |
Schedule of Consolidating Schedules | Condensed consolidating financial statements as of December 31, 2016 and 2015 and for the years ended December 31, 2016 , 2015 and 2014 follow. Charter Communications, Inc. Condensed Consolidating Balance Sheet As of December 31, 2016 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated ASSETS CURRENT ASSETS: Cash and cash equivalents $ 57 $ 154 $ — $ 1,324 $ — $ 1,535 Accounts receivable, net 34 11 — 1,387 — 1,432 Receivables from related party 170 451 62 — (683 ) — Prepaid expenses and other current assets — 33 — 300 — 333 Total current assets 261 649 62 3,011 (683 ) 3,300 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 245 — 32,718 — 32,963 Customer relationships, net — — — 14,608 — 14,608 Franchises — — — 67,316 — 67,316 Goodwill — — — 29,509 — 29,509 Total investment in cable properties, net — 245 — 144,151 — 144,396 INVESTMENT IN SUBSIDIARIES 66,692 75,838 88,760 — (231,290 ) — LOANS RECEIVABLE – RELATED PARTY — 640 494 — (1,134 ) — OTHER NONCURRENT ASSETS — 214 — 1,157 — 1,371 Total assets $ 66,953 $ 77,586 $ 89,316 $ 148,319 $ (233,107 ) $ 149,067 LIABILITIES AND SHAREHOLDERS’/MEMBER’S EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 22 $ 625 $ 219 $ 6,678 $ — $ 7,544 Payables to related party — — — 683 (683 ) — Current portion of long-term debt — — — 2,028 — 2,028 Total current liabilities 22 625 219 9,389 (683 ) 9,572 LONG-TERM DEBT — — 13,259 46,460 — 59,719 LOANS PAYABLE – RELATED PARTY — — — 1,134 (1,134 ) — DEFERRED INCOME TAXES 26,637 3 — 25 — 26,665 OTHER LONG-TERM LIABILITIES 155 64 — 2,526 — 2,745 SHAREHOLDERS’/MEMBER’S EQUITY Controlling interest 40,139 66,692 75,838 88,760 (231,290 ) 40,139 Noncontrolling interests — 10,202 — 25 — 10,227 Total shareholders’/member’s equity 40,139 76,894 75,838 88,785 (231,290 ) 50,366 Total liabilities and shareholders’/member’s equity $ 66,953 $ 77,586 $ 89,316 $ 148,319 $ (233,107 ) $ 149,067 Charter Communications, Inc. Condensed Consolidating Balance Sheet As of December 31, 2015 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated ASSETS CURRENT ASSETS: Cash and cash equivalents $ — $ — $ — $ — $ 5 $ — $ 5 Accounts receivable, net 8 7 — — 264 — 279 Receivables from related party 51 297 — 14 — (362 ) — Prepaid expenses and other current assets — 6 — — 55 — 61 Total current assets 59 310 — 14 324 (362 ) 345 RESTRICTED CASH AND CASH EQUIVALENTS — — 22,264 — — — 22,264 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 28 — — 8,317 — 8,345 Customer relationships, net — — — — 856 — 856 Franchises — — — — 6,006 — 6,006 Goodwill — — — — 1,168 — 1,168 Total investment in cable properties, net — 28 — — 16,347 — 16,375 INVESTMENT IN SUBSIDIARIES 1,468 816 — 11,303 — (13,587 ) — LOANS RECEIVABLE – RELATED PARTY — 333 — 613 563 (1,509 ) — OTHER NONCURRENT ASSETS — 216 — — 116 — 332 Total assets $ 1,527 $ 1,703 $ 22,264 $ 11,930 $ 17,350 $ (15,458 ) $ 39,316 LIABILITIES AND SHAREHOLDERS’/MEMBER’S EQUITY (DEFICIT) CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 11 $ 203 $ 282 $ 165 $ 1,311 $ — $ 1,972 Payables to related party — — 17 — 345 (362 ) — Total current liabilities 11 203 299 165 1,656 (362 ) 1,972 LONG-TERM DEBT — — 21,778 10,443 3,502 — 35,723 LOANS PAYABLE – RELATED PARTY — — 693 — 816 (1,509 ) — DEFERRED INCOME TAXES 1,562 — — — 28 — 1,590 OTHER LONG-TERM LIABILITIES — 32 — — 45 — 77 SHAREHOLDERS’/MEMBER’S EQUITY (DEFICIT) (46 ) 1,468 (506 ) 1,322 11,303 (13,587 ) (46 ) Total liabilities and shareholders’/member’s equity (deficit) $ 1,527 $ 1,703 $ 22,264 $ 11,930 $ 17,350 $ (15,458 ) $ 39,316 Charter Communications, Inc. Condensed Consolidating Statement of Operations For the year ended December 31, 2016 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated REVENUES $ 251 $ 1,004 $ — $ — $ 29,003 $ (1,255 ) $ 29,003 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 251 989 — — 18,670 (1,255 ) 18,655 Depreciation and amortization — 5 — — 6,902 — 6,907 Other operating (income) expenses, net 262 1 — — (177 ) — 86 513 995 — — 25,395 (1,255 ) 25,648 Income (loss) from operations (262 ) 9 — — 3,608 — 3,355 OTHER INCOME (EXPENSES): Interest income (expense), net — 14 (390 ) (727 ) (1,396 ) — (2,499 ) Loss on extinguishment of debt — — — (110 ) (1 ) — (111 ) Gain on financial instruments, net — — — — 89 — 89 Other expense, net — (11 ) — — (3 ) — (14 ) Equity in income of subsidiaries 851 1,066 — 2,293 — (4,210 ) — 851 1,069 (390 ) 1,456 (1,311 ) (4,210 ) (2,535 ) Income (loss) before income taxes 589 1,078 (390 ) 1,456 2,297 (4,210 ) 820 INCOME TAX BENEFIT (EXPENSE) 2,933 (5 ) — — (3 ) — 2,925 Consolidated net income (loss) 3,522 1,073 (390 ) 1,456 2,294 (4,210 ) 3,745 Less: Net income – noncontrolling interests — (222 ) — — (1 ) — (223 ) Net income (loss) $ 3,522 $ 851 $ (390 ) $ 1,456 $ 2,293 $ (4,210 ) $ 3,522 Charter Communications, Inc. Condensed Consolidating Statement of Operations For the year ended December 31, 2015 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary Eliminations Charter Consolidated REVENUES $ 25 $ 299 $ — $ — $ 9,754 $ — $ (324 ) $ 9,754 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 25 299 — — 6,426 — (324 ) 6,426 Depreciation and amortization — — — — 2,125 — — 2,125 Other operating expenses, net — — — — 89 — — 89 25 299 — — 8,640 — (324 ) 8,640 Income from operations — — — — 1,114 — — 1,114 OTHER INCOME (EXPENSES): Interest income (expense), net — 8 (474 ) (642 ) (151 ) (47 ) — (1,306 ) Loss on extinguishment of debt — — (2 ) (123 ) — (3 ) — (128 ) Loss on financial instruments, net — — — — (4 ) — — (4 ) Other expense, net — (7 ) — — — — — (7 ) Equity in income (loss) of subsidiaries (121 ) (168 ) — 1,073 (50 ) — (734 ) — (121 ) (167 ) (476 ) 308 (205 ) (50 ) (734 ) (1,445 ) Income (loss) before income taxes (121 ) (167 ) (476 ) 308 909 (50 ) (734 ) (331 ) INCOME TAX BENEFIT (EXPENSE) (150 ) — — — 210 — — 60 Consolidated net income (loss) (271 ) (167 ) (476 ) 308 1,119 (50 ) (734 ) (271 ) Less: Net (income) loss – noncontrolling interest — 46 — — (46 ) — — — Net income (loss) $ (271 ) $ (121 ) $ (476 ) $ 308 $ 1,073 $ (50 ) $ (734 ) $ (271 ) Charter Communications, Inc. Condensed Consolidating Statement of Operations For the year ended December 31, 2014 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary Eliminations Charter Consolidated REVENUES $ 22 $ 235 $ — $ — $ 9,108 $ — $ (257 ) $ 9,108 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 22 235 — — 5,973 — (257 ) 5,973 Depreciation and amortization — — — — 2,102 — — 2,102 Other operating expenses, net — — — — 62 — — 62 22 235 — — 8,137 — (257 ) 8,137 Income from operations — — — — 971 — — 971 OTHER INCOME AND (EXPENSES): Interest income (expense), net — 8 (30 ) (679 ) (165 ) (45 ) — (911 ) Loss on financial instruments, net — — — — (7 ) — — (7 ) Equity in income (loss) of subsidiaries 40 (12 ) — 697 (45 ) — (680 ) — 40 (4 ) (30 ) 18 (217 ) (45 ) (680 ) (918 ) Income (loss) before income taxes 40 (4 ) (30 ) 18 754 (45 ) (680 ) 53 INCOME TAX EXPENSE (223 ) — — — (13 ) — — (236 ) Consolidated net income (loss) (183 ) (4 ) (30 ) 18 741 (45 ) (680 ) (183 ) Less: Net (income) loss – noncontrolling interest — 44 — — (44 ) — — — Net income (loss) $ (183 ) $ 40 $ (30 ) $ 18 $ 697 $ (45 ) $ (680 ) $ (183 ) Charter Communications, Inc. Condensed Consolidating Statement of Comprehensive Income (Loss) For the year ended December 31, 2016 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated Consolidated net income (loss) $ 3,522 $ 1,073 $ (390 ) $ 1,456 $ 2,294 $ (4,210 ) $ 3,745 Net impact of interest rate derivative instruments 8 8 8 8 8 (32 ) 8 Foreign currency translation adjustment (2 ) (2 ) (2 ) (2 ) (2 ) 8 (2 ) Consolidated comprehensive income (loss) 3,528 1,079 (384 ) 1,462 2,300 (4,234 ) 3,751 Less: Comprehensive income attributable to noncontrolling interests — (222 ) — — (1 ) — (223 ) Comprehensive income (loss) $ 3,528 $ 857 $ (384 ) $ 1,462 $ 2,299 $ (4,234 ) $ 3,528 Charter Communications, Inc. Condensed Consolidating Statement of Comprehensive Income (Loss) For the year ended December 31, 2015 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary Eliminations Charter Consolidated Consolidated net income (loss) $ (271 ) $ (167 ) $ (476 ) $ 308 $ 1,119 $ (50 ) $ (734 ) $ (271 ) Net impact of interest rate derivative instruments 9 9 9 9 9 — (36 ) 9 Consolidated comprehensive income (loss) (262 ) (158 ) (467 ) 317 1,128 (50 ) (770 ) (262 ) Less: Comprehensive (income) loss attributable to noncontrolling interests — 46 — — (46 ) — — — Comprehensive income (loss) $ (262 ) $ (112 ) $ (467 ) $ 317 $ 1,082 $ (50 ) $ (770 ) $ (262 ) Charter Communications, Inc. Condensed Consolidating Statement of Comprehensive Income (Loss) For the year ended December 31, 2014 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary Eliminations Charter Consolidated Consolidated net income (loss) $ (183 ) $ (4 ) $ (30 ) $ 18 $ 741 $ (45 ) $ (680 ) $ (183 ) Net impact of interest rate derivative instruments 19 19 19 19 19 — (76 ) 19 Consolidated comprehensive income (loss) (164 ) 15 (11 ) 37 760 (45 ) (756 ) (164 ) Less: Comprehensive (income) loss attributable to noncontrolling interests — 44 — — (44 ) — — — Comprehensive income (loss) $ (164 ) $ 59 $ (11 ) $ 37 $ 716 $ (45 ) $ (756 ) $ (164 ) Charter Communications, Inc. Condensed Consolidating Statement of Cash Flows For the year ended December 31, 2016 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated NET CASH FLOWS FROM OPERATING ACTIVITIES $ (225 ) $ (36 ) $ (463 ) $ (711 ) $ 9,476 $ — $ 8,041 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — — — — (5,325 ) — (5,325 ) Change in accrued expenses related to capital expenditures — — — — 603 — 603 Purchases of cable systems, net (26,781 ) (2,022 ) — — (7 ) — (28,810 ) Contribution to subsidiaries (1,013 ) (478 ) — (437 ) — 1,928 — Distributions from subsidiaries 24,552 26,899 — 5,096 — (56,547 ) — Change in restricted cash and cash equivalents — — 22,264 — — — 22,264 Other, net — — — — (22 ) — (22 ) Net cash flows from investing activities (3,242 ) 24,399 22,264 4,659 (4,751 ) (54,619 ) (11,290 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — — 3,201 9,143 — 12,344 Repayments of long-term debt — — — (2,937 ) (7,584 ) — (10,521 ) Borrowings (payments) loans payable - related parties — (300 ) 553 (71 ) (182 ) — — Payment for debt issuance costs — — — (73 ) (211 ) — (284 ) Issuance of equity 5,000 — — — — — 5,000 Purchase of treasury stock (1,562 ) — — — — — (1,562 ) Proceeds from exercise of stock options 86 — — — — — 86 Settlement of restricted stock units — (59 ) — — — — (59 ) Purchase of noncontrolling interest — (218 ) — — — — (218 ) Distributions to noncontrolling interest — (96 ) — — — — (96 ) Proceeds from termination of interest rate derivatives — — — — 88 — 88 Contributions from parent — 1,013 — 478 437 (1,928 ) — Distributions to parent — (24,552 ) (22,353 ) (4,546 ) (5,096 ) 56,547 — Other, net — 3 (1 ) — (1 ) — 1 Net cash flows from financing activities 3,524 (24,209 ) (21,801 ) (3,948 ) (3,406 ) 54,619 4,779 NET INCREASE IN CASH AND CASH EQUIVALENTS 57 154 — — 1,319 — 1,530 CASH AND CASH EQUIVALENTS, beginning of period — — — — 5 — 5 CASH AND CASH EQUIVALENTS, end of period $ 57 $ 154 $ — $ — $ 1,324 $ — $ 1,535 Charter Communications, Inc. Condensed Consolidating Statement of Cash Flows For the year ended December 31, 2015 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary Eliminations Charter Consolidated NET CASH FLOWS FROM OPERATING ACTIVITIES $ (1 ) $ (5 ) $ (192 ) $ (663 ) $ 3,275 $ (55 ) $ — $ 2,359 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — — — — (1,840 ) — — (1,840 ) Change in accrued expenses related to capital expenditures — — — — 28 — — 28 Contribution to subsidiaries (20 ) (90 ) — (46 ) (24 ) — 180 — Distributions from subsidiaries 26 376 — 715 — — (1,117 ) — Change in restricted cash and cash equivalents — — (18,667 ) — — 3,514 — (15,153 ) Other, net — (55 ) — — (12 ) — — (67 ) Net cash flows from investing activities 6 231 (18,667 ) 669 (1,848 ) 3,514 (937 ) (17,032 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — 21,790 2,700 1,555 — — 26,045 Repayments of long-term debt — — (3,500 ) (2,598 ) (1,745 ) (3,483 ) — (11,326 ) Borrowings (payments) loans payable - related parties — — 581 (18 ) (563 ) — — — Payment for debt issuance costs — — (12 ) (24 ) — — — (36 ) Purchase of treasury stock (38 ) — — — — — — (38 ) Proceeds from exercise of stock options 30 — — — — — — 30 Contributions from parent — 95 — 15 46 24 (180 ) — Distributions to parent — (321 ) — (81 ) (715 ) — 1,117 — Net cash flows from financing activities (8 ) (226 ) 18,859 (6 ) (1,422 ) (3,459 ) 937 14,675 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (3 ) — — — 5 — — 2 CASH AND CASH EQUIVALENTS, beginning of period 3 — — — — — — 3 CASH AND CASH EQUIVALENTS, end of period $ — $ — $ — $ — $ 5 $ — $ — $ 5 Charter Communications, Inc. Condensed Consolidating Statement of Cash Flows For the year ended December 31, 2014 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies Safari Escrow Entities CCO Holdings Charter Operating and Restricted Subsidiaries Unrestricted Subsidiary Eliminations Charter Consolidated NET CASH FLOWS FROM OPERATING ACTIVITIES: $ — $ (13 ) $ (12 ) $ (665 ) $ 3,086 $ (37 ) $ — $ 2,359 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — — — — (2,221 ) — — (2,221 ) Change in accrued expenses related to capital expenditures — — — — 33 — — 33 Sales of cable systems, net — — — — 11 — — 11 Contribution to subsidiaries (106 ) (600 ) — (100 ) (71 ) — 877 — Distributions from subsidiaries 5 30 — 1,132 — — (1,167 ) — Change in restricted cash and cash equivalents — — (3,598 ) — — (3,513 ) — (7,111 ) Other, net — (5 ) — — (11 ) — — (16 ) Net cash flows from investing activities (101 ) (575 ) (3,598 ) 1,032 (2,259 ) (3,513 ) (290 ) (9,304 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — 3,500 — 1,823 3,483 — 8,806 Repayments of long-term debt — — — (350 ) (1,630 ) — — (1,980 ) Borrowings (payments) loans payable - related parties — — 112 (112 ) — — — — Payment for debt issuance costs — — (2 ) — — (4 ) — (6 ) Purchase of treasury stock (19 ) — — — — — — (19 ) Proceeds from exercise of options and warrants 123 — — — — — — 123 Contributions from parent — 606 — 100 100 71 (877 ) — Distributions to parent — (30 ) — (5 ) (1,132 ) — 1,167 — Other, net — 7 — — (4 ) — — 3 Net cash flows from financing activities 104 583 3,610 (367 ) (843 ) 3,550 290 6,927 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 3 (5 ) — — (16 ) — — (18 ) CASH AND CASH EQUIVALENTS, beginning of period — 5 — — 16 — — 21 CASH AND CASH EQUIVALENTS, end of period $ 3 $ — $ — $ — $ — $ — $ — $ 3 |
Mergers and Acquisitions (Detai
Mergers and Acquisitions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Mergers and Acquisitions: | |||
Value of common shares issued to Liberty Broadband to finance business acquisition | $ 5,000,000,000 | ||
Repayments of long-term debt | 10,521,000,000 | $ 11,326,000,000 | $ 1,980,000,000 |
Purchase price: | |||
Pre-combination vesting period fair value of Converted TWC Awards | 514,000,000 | ||
Preliminary allocation of purchase price: | |||
Goodwill | 29,509,000,000 | 1,168,000,000 | |
Pro forma financial information: | |||
Pro forma revenues | 40,023,000,000 | 37,394,000,000 | |
Pro forma net income | $ 1,070,000,000 | $ 159,000,000 | |
Earnings per common share, basic | $ 3.97 | $ 0.59 | |
Earnings per common share, diluted | $ 3.91 | $ 0.58 | |
CCO Safari II [Member] | |||
Mergers and Acquisitions: | |||
Principal amount of debt issued to finance business acquisition | $ 15,500,000,000 | ||
CCO Safari III [Member] | Credit Facilities [Member] | |||
Mergers and Acquisitions: | |||
Principal amount of debt issued to finance business acquisition | 3,800,000,000 | ||
CCOH Safari, LLC [Member] | 5.750% Senior Notes Due February 15, 2026 [Member] | |||
Mergers and Acquisitions: | |||
Principal amount of debt issued to finance business acquisition | $ 2,500,000,000 | ||
Charter Operating [Member] | Term Loan A-2 [Member] | |||
Mergers and Acquisitions: | |||
Principal amount of debt issued to finance business acquisition | $ 2,600,000,000 | ||
TWC Transaction [Member] | |||
Mergers and Acquisitions: | |||
Cash portion of purchase price - Option A | $ 100 | ||
Equity portion of purchase price - Option A | 0.5409 | ||
Cash portion of purchase price - Option B | $ 115 | ||
Equity portion of purchase price - Option B | 0.4562 | ||
Exchange ratio used to determine number of shares | 0.9042 | ||
Shares of TWC common stock outstanding as of the date of election | 277,000,000 | ||
Shares of TWC common stock outstanding as of the date of election - Option A elected | 274,000,000 | ||
Shares of TWC common stock outstanding as of the date of election - Option B elected | 3,000,000 | ||
Shares of Charter Class A common stock received by the Liberty Parties for each share of Legacy TWC common stock owned | 1 | ||
Shares of Legacy Charter Class A common stock received by the Liberty Parties for each share of Legacy TWC common stock owned | 1.106 | ||
TWC enterprise value including cash, equity and debt assumed | $ 85,000,000,000 | ||
Revenues of acquiree from the date of acquisition | 16,000,000,000 | ||
Fair value adjustment to TWC long-term debt assumed (debt premium) | 2,400,000,000 | ||
Purchase price: | |||
Cash paid to acquire business | 27,770,000,000 | ||
Pre-combination vesting period fair value of Converted TWC Awards | 514,000,000 | ||
Cash paid for Legacy TWC non-employee equity awards | 69,000,000 | ||
Total purchase price | 60,517,000,000 | ||
Preliminary allocation of purchase price: | |||
Assets acquired, cash and cash equivalents | 1,058,000,000 | ||
Assets acquired, current assets | 1,308,000,000 | ||
Assets acquired, property, plant and equipment | 21,413,000,000 | ||
Assets acquired, customer relationships | 13,460,000,000 | ||
Assets acquired, franchises | 54,085,000,000 | ||
Goodwill | 28,292,000,000 | ||
Assets acquired, other noncurrent assets | 1,040,000,000 | ||
Liabilities assumed, accounts payable and accrued liabilities | (3,925,000,000) | ||
Liabilities assumed, debt | (24,900,000,000) | ||
Liabilities assumed, deferred income taxes | (28,148,000,000) | ||
Liabilities assumed, other long-term liabilities | (3,162,000,000) | ||
Noncontrolling interests acquired | (4,000,000) | ||
Total assets acquired plus goodwill less liabilities assumed and noncontrolling interests acquired | 60,517,000,000 | ||
Measurement period adjustment, property, plant and equipment | 163,000,000 | ||
Measurement period adjustment, accrued liabilities | 215,000,000 | ||
Measurement period adjustment, deferred income taxes | 4,000,000 | ||
Measurement period adjustments impact on goodwill | 76,000,000 | ||
Measurement period adjustments impact on amortization expense | 20,000,000 | ||
Measurement period adjustments impact on depreciation | $ 12,000,000 | ||
TWC Transaction [Member] | Customer Relationships [Member] | |||
Mergers and Acquisitions: | |||
Weighted-average useful life of finite-lived intangible assets acquired | 11 years | ||
Preliminary allocation of purchase price: | |||
Measurement period adjustment, intangible assets | $ 240,000,000 | ||
TWC Transaction [Member] | Franchises [Member] | |||
Preliminary allocation of purchase price: | |||
Measurement period adjustment, intangible assets | $ 690,000,000 | ||
TWC Transaction [Member] | Class A Common Stock [Member] | |||
Mergers and Acquisitions: | |||
Number of common shares issued to Liberty Broadband to finance business acquisition | 22,000,000 | ||
Value of common shares issued to Liberty Broadband to finance business acquisition | $ 4,300,000,000 | ||
Purchase price: | |||
Number of shares/units issued | 143,012,155 | ||
Price per share/unit of shares/units issued | $ 224.91 | ||
Fair value of shares/units issued to acquire business | $ 32,164,000,000 | ||
TWC Transaction [Member] | Class B Common Stock [Member] | |||
Purchase price: | |||
Number of shares/units issued | 0 | ||
Bright House Transaction [Member] | |||
Mergers and Acquisitions: | |||
Revenues of acquiree from the date of acquisition | $ 2,600,000,000 | ||
Purchase price: | |||
Cash paid to acquire business | 2,022,000,000 | ||
Total purchase price | 12,156,000,000 | ||
Preliminary allocation of purchase price: | |||
Assets acquired, current assets | 131,000,000 | ||
Assets acquired, property, plant and equipment | 2,884,000,000 | ||
Assets acquired, customer relationships | 2,150,000,000 | ||
Assets acquired, franchises | 7,225,000,000 | ||
Goodwill | 44,000,000 | ||
Assets acquired, other noncurrent assets | 86,000,000 | ||
Liabilities assumed, accounts payable and accrued liabilities | (330,000,000) | ||
Liabilities assumed, other long-term liabilities | (12,000,000) | ||
Noncontrolling interests acquired | (22,000,000) | ||
Total assets acquired plus goodwill less liabilities assumed and noncontrolling interests acquired | 12,156,000,000 | ||
Measurement period adjustment, property, plant and equipment | 382,000,000 | ||
Measurement period adjustment, current assets | 1,000,000 | ||
Measurement period adjustments impact on goodwill | 108,000,000 | ||
Measurement period adjustments impact on amortization expense | $ 7,000,000 | ||
Bright House Transaction [Member] | Customer Relationships [Member] | |||
Mergers and Acquisitions: | |||
Weighted-average useful life of finite-lived intangible assets acquired | 10 years | ||
Preliminary allocation of purchase price: | |||
Measurement period adjustment, intangible assets | $ 110,000,000 | ||
Bright House Transaction [Member] | Franchises [Member] | |||
Preliminary allocation of purchase price: | |||
Measurement period adjustment, intangible assets | 381,000,000 | ||
Bright House Transaction [Member] | Term Loan A-1 [Member] | |||
Mergers and Acquisitions: | |||
Repayments of long-term debt | $ 638,000,000 | ||
Bright House Transaction [Member] | Class A Common Stock [Member] | |||
Mergers and Acquisitions: | |||
Number of common shares issued to Liberty Broadband to finance business acquisition | 3,700,000 | ||
Value of common shares issued to Liberty Broadband to finance business acquisition | $ 700,000,000 | ||
Purchase price: | |||
Number of shares/units issued | 0 | ||
Bright House Transaction [Member] | Class B Common Stock [Member] | |||
Purchase price: | |||
Number of shares/units issued | 1 | ||
Bright House Transaction [Member] | Preferred Stock [Member] | |||
Mergers and Acquisitions: | |||
Convertible units, face amount | $ 2,500,000,000 | ||
Convertible units, dividend rate | 6.00% | ||
Purchase price: | |||
Number of shares/units issued | 25,000,000 | ||
Fair value of shares/units issued to acquire business | $ 3,163,000,000 | ||
Bright House Transaction [Member] | Common Stock [Member] | |||
Purchase price: | |||
Number of shares/units issued | 31,000,000 | ||
Price per share/unit of shares/units issued | $ 224.91 | ||
Fair value of shares/units issued to acquire business | $ 6,971,000,000 |
Summary of Significant Accoun57
Summary of Significant Accounting Policies (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Property, Plant and Equipment | |||||||||||
Impairment of long-lived assets held-for-use | $ 0 | $ 0 | $ 0 | ||||||||
Governmental imposed fees passed through to the customer | 711,000,000 | 255,000,000 | 248,000,000 | ||||||||
Revenue by Product Line | |||||||||||
Revenues | $ 10,275,000,000 | $ 10,037,000,000 | $ 6,161,000,000 | $ 2,530,000,000 | $ 2,512,000,000 | $ 2,450,000,000 | $ 2,430,000,000 | $ 2,362,000,000 | 29,003,000,000 | 9,754,000,000 | 9,108,000,000 |
Programming costs | $ 7,034,000,000 | $ 2,678,000,000 | $ 2,459,000,000 | ||||||||
Weighted average assumptions used to estimate the fair value of stock options at the date of grant: | |||||||||||
Risk-free interest rate (percentage) | 1.70% | 1.50% | 2.00% | ||||||||
Expected volatility rate (percentage) | 25.40% | 34.70% | 36.90% | ||||||||
Expected life (in years) | 1 year 4 months | 6 years 6 months | 6 years 6 months | ||||||||
Number of reportable segments | 1 | ||||||||||
Cable Distribution Systems [Member] | Minimum [Member] | |||||||||||
Property, Plant and Equipment | |||||||||||
Property, plant and equipment, useful life (in years) | 7 years | ||||||||||
Cable Distribution Systems [Member] | Maximum [Member] | |||||||||||
Property, Plant and Equipment | |||||||||||
Property, plant and equipment, useful life (in years) | 20 years | ||||||||||
Customer Equipment and Installations [Member] | Minimum [Member] | |||||||||||
Property, Plant and Equipment | |||||||||||
Property, plant and equipment, useful life (in years) | 3 years | ||||||||||
Customer Equipment and Installations [Member] | Maximum [Member] | |||||||||||
Property, Plant and Equipment | |||||||||||
Property, plant and equipment, useful life (in years) | 8 years | ||||||||||
Vehicles and Equipment [Member] | Minimum [Member] | |||||||||||
Property, Plant and Equipment | |||||||||||
Property, plant and equipment, useful life (in years) | 3 years | ||||||||||
Vehicles and Equipment [Member] | Maximum [Member] | |||||||||||
Property, Plant and Equipment | |||||||||||
Property, plant and equipment, useful life (in years) | 6 years | ||||||||||
Buildings and Improvements [Member] | Minimum [Member] | |||||||||||
Property, Plant and Equipment | |||||||||||
Property, plant and equipment, useful life (in years) | 15 years | ||||||||||
Buildings and Improvements [Member] | Maximum [Member] | |||||||||||
Property, Plant and Equipment | |||||||||||
Property, plant and equipment, useful life (in years) | 40 years | ||||||||||
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | |||||||||||
Property, Plant and Equipment | |||||||||||
Property, plant and equipment, useful life (in years) | 6 years | ||||||||||
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | |||||||||||
Property, Plant and Equipment | |||||||||||
Property, plant and equipment, useful life (in years) | 10 years | ||||||||||
Residential Video [Member] | |||||||||||
Revenue by Product Line | |||||||||||
Revenues | $ 11,967,000,000 | $ 4,587,000,000 | $ 4,443,000,000 | ||||||||
Residential Internet [Member] | |||||||||||
Revenue by Product Line | |||||||||||
Revenues | 9,272,000,000 | 3,003,000,000 | 2,576,000,000 | ||||||||
Residential Voice [Member] | |||||||||||
Revenue by Product Line | |||||||||||
Revenues | 2,005,000,000 | 539,000,000 | 575,000,000 | ||||||||
Residential [Member] | |||||||||||
Revenue by Product Line | |||||||||||
Revenues | 23,244,000,000 | 8,129,000,000 | 7,594,000,000 | ||||||||
Commercial Small and Medium Business [Member] | |||||||||||
Revenue by Product Line | |||||||||||
Revenues | 2,480,000,000 | 764,000,000 | 676,000,000 | ||||||||
Commercial Enterprise [Member] | |||||||||||
Revenue by Product Line | |||||||||||
Revenues | 1,429,000,000 | 363,000,000 | 317,000,000 | ||||||||
Commercial [Member] | |||||||||||
Revenue by Product Line | |||||||||||
Revenues | 3,909,000,000 | 1,127,000,000 | 993,000,000 | ||||||||
Advertising Sales [Member] | |||||||||||
Revenue by Product Line | |||||||||||
Revenues | 1,235,000,000 | 309,000,000 | 341,000,000 | ||||||||
Other Services [Member] | |||||||||||
Revenue by Product Line | |||||||||||
Revenues | $ 615,000,000 | $ 189,000,000 | $ 180,000,000 |
Allowance for Doubtful Accoun58
Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Doubtful Accounts [Roll Forward] | |||
Balance, beginning of period | $ 21 | $ 22 | $ 19 |
Charged to expense | 328 | 135 | 122 |
Uncollected balances written off, net of recoveries | (225) | (136) | (119) |
Balance, end of period | $ 124 | $ 21 | $ 22 |
Property, Plant and Equipment59
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $ 44,066 | $ 14,863 | |
Less: accumulated depreciation | (11,103) | (6,518) | |
Property, plant and equipment, net | 32,963 | 8,345 | |
Depreciation expense | 5,000 | 1,900 | $ 1,800 |
Property, plant and equipment acquired | 24,300 | ||
Cable Distribution Systems [Member] | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 23,317 | 8,158 | |
Customer Equipment and Installations [Member] | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 12,867 | 4,632 | |
Vehicles and Equipment [Member] | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 1,212 | 384 | |
Buildings and Improvements [Member] | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 3,426 | 570 | |
Furniture, Fixtures and Equipment [Member] | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $ 3,244 | $ 1,119 |
Franchises, Goodwill and Othe60
Franchises, Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Indefinite-lived Intangible Assets: | |||
Goodwill | $ 29,509 | $ 1,168 | |
Indefinite-lived intangible assets and goodwill | 96,988 | 7,337 | |
Goodwill, period increase | 28,300 | ||
Finite-Lived Intangible Assets: | |||
Finite-lived intangible assets, gross | 18,841 | 2,789 | |
Finite-lived intangible assets, accumulated amortization | (3,746) | (1,842) | |
Finite-lived intangible assets, net | 15,095 | 947 | |
Amortization expense | 1,900 | 271 | $ 299 |
Expected amortization expense, 2017 | 2,743 | ||
Expected amortization expense, 2018 | 2,461 | ||
Expected amortization expense, 2019 | 2,178 | ||
Expected amortization expense, 2020 | 1,886 | ||
Expected amortization expense, 2021 | 1,602 | ||
Expected amortization expense, 2022 and thereafter | 4,225 | ||
Franchises [Member] | |||
Indefinite-lived Intangible Assets: | |||
Indefinite-lived intangible assets | 67,316 | 6,006 | |
Indefinite-lived intangible assets acquired | 61,300 | ||
Trademarks [Member] | |||
Indefinite-lived Intangible Assets: | |||
Indefinite-lived intangible assets | 159 | 159 | |
Other Intangible Assets [Member] | |||
Indefinite-lived Intangible Assets: | |||
Indefinite-lived intangible assets | 4 | 4 | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets: | |||
Finite-lived intangible assets, gross | 18,226 | 2,616 | |
Finite-lived intangible assets, accumulated amortization | (3,618) | (1,760) | |
Finite-lived intangible assets, net | 14,608 | 856 | |
Finite-lived intangible assets acquired | $ 15,600 | ||
Customer Relationships [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets: | |||
Customer relationships, useful life | 8 years | ||
Customer Relationships [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets: | |||
Customer relationships, useful life | 15 years | ||
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets: | |||
Finite-lived intangible assets, gross | $ 615 | 173 | |
Finite-lived intangible assets, accumulated amortization | (128) | (82) | |
Finite-lived intangible assets, net | $ 487 | $ 91 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Investments [Abstract] | ||
Equity-method and cost-method investments acquired | $ 508 | |
Investments: | ||
Equity-method investments | 519 | $ 53 |
Other investments | 11 | 2 |
Total investments | 530 | 55 |
Unamortized basis difference for equity-method investments acquired | 436 | |
Net losses from equity-method investments | $ 14 | $ 7 |
Sterling [Member] | ||
Investments: | ||
Equity-method investment, ownership percentage | 26.80% | |
MLB Network [Member] | ||
Investments: | ||
Equity-method investment, ownership percentage | 6.40% | |
iN Demand [Member] | ||
Investments: | ||
Equity-method investment, ownership percentage | 39.80% | |
NCC [Member] | ||
Investments: | ||
Equity-method investment, ownership percentage | 20.00% |
Accounts Payable and Accrued 62
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Accounts payable - trade | $ 454 | $ 134 |
Deferred revenue | 352 | 96 |
Accrued liabilities: | ||
Programming costs | 1,783 | 451 |
Compensation | 1,111 | 191 |
Capital expenditures | 1,107 | 296 |
Interest | 958 | 445 |
Taxes and regulatory fees | 538 | 128 |
Property and casualty | 394 | 74 |
Other | 847 | 157 |
Total | $ 7,544 | $ 1,972 |
Long-Term Debt (Details)
Long-Term Debt (Details) £ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016GBP (£) | Apr. 30, 2015USD ($) | |
Long-Term Debt: | |||||
Principal amount | $ 60,036 | $ 35,902 | |||
Accreted value | 61,747 | 35,723 | |||
Principal amount, current portion | (2,000) | 0 | |||
Accreted value, current portion | (2,028) | 0 | |||
Principal amount, noncurrent portion | 58,036 | 35,902 | |||
Accreted value, noncurrent portion | 59,719 | 35,723 | |||
Loss on extinguishment of debt | 111 | 128 | $ 0 | ||
Letters of credit outstanding secured under the Charter Operating credit facility | 220 | ||||
Letters of credit, amount | 278 | ||||
Long-term debt maturities, 2017 | 2,197 | ||||
Long-term debt maturities, 2018 | 2,197 | ||||
Long-term debt maturities, 2019 | 3,546 | ||||
Long-term debt maturities, 2020 | 5,216 | ||||
Long-term debt maturities, 2021 | 5,128 | ||||
Long-term debt maturities, 2022 and thereafter | 41,752 | ||||
CCO Holdings [Member] | |||||
Long-Term Debt: | |||||
Accreted value, current portion | 0 | ||||
Accreted value, noncurrent portion | 13,259 | 10,443 | |||
Loss on extinguishment of debt | $ 110 | 123 | |||
Debt instrument redemption price (percentage) | 100.00% | ||||
Debt instrument, amount of principal that may be redeemed (percentage) | 40.00% | ||||
Debt instrument redemption price in the event of change of control events (percentage) | 101.00% | ||||
CCO Holdings [Member] | Maximum [Member] | |||||
Long-Term Debt: | |||||
Leverage ratio | 6 | 6 | |||
CCO Holdings [Member] | Minimum [Member] | |||||
Long-Term Debt: | |||||
Leverage ratio | 1 | 1 | |||
Charter Operating [Member] | |||||
Long-Term Debt: | |||||
Loss on extinguishment of debt | $ 1 | ||||
CCOH Safari and CCO Safari [Member] | |||||
Long-Term Debt: | |||||
Loss on extinguishment of debt | 5 | ||||
5.750% Senior Notes Due February 15, 2026 [Member] | CCOH Safari, LLC [Member] | |||||
Long-Term Debt: | |||||
Principal amount | 0 | 2,500 | |||
Accreted value | $ 0 | 2,499 | |||
Stated interest rate (percentage) | 5.75% | 5.75% | |||
5.750% Senior Notes Due February 15, 2026 [Member] | CCO Holdings [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 2,500 | 0 | |||
Accreted value | $ 2,460 | 0 | |||
Stated interest rate (percentage) | 5.75% | 5.75% | |||
3.579% Senior Notes Due July 23, 2020 [Member] | CCO Safari II [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 0 | 2,000 | |||
Accreted value | $ 0 | 1,999 | |||
Stated interest rate (percentage) | 3.579% | 3.579% | |||
3.579% Senior Notes Due July 23, 2020 [Member] | Charter Operating [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 2,000 | 0 | |||
Accreted value | $ 1,983 | 0 | |||
Stated interest rate (percentage) | 3.579% | 3.579% | |||
4.464% Senior Notes Due July 23, 2022 [Member] | CCO Safari II [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 0 | 3,000 | |||
Accreted value | $ 0 | 2,998 | |||
Stated interest rate (percentage) | 4.464% | 4.464% | |||
4.464% Senior Notes Due July 23, 2022 [Member] | Charter Operating [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 3,000 | 0 | |||
Accreted value | $ 2,973 | 0 | |||
Stated interest rate (percentage) | 4.464% | 4.464% | |||
4.908% Senior Notes Due July 23, 2025 [Member] | CCO Safari II [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 0 | 4,500 | |||
Accreted value | $ 0 | 4,497 | |||
Stated interest rate (percentage) | 4.908% | 4.908% | |||
4.908% Senior Notes Due July 23, 2025 [Member] | Charter Operating [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 4,500 | 0 | |||
Accreted value | $ 4,458 | 0 | |||
Stated interest rate (percentage) | 4.908% | 4.908% | |||
6.384% Senior Notes Due October 23, 2035 [Member] | CCO Safari II [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 0 | 2,000 | |||
Accreted value | $ 0 | 1,999 | |||
Stated interest rate (percentage) | 6.384% | 6.384% | |||
6.384% Senior Notes Due October 23, 2035 [Member] | Charter Operating [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 2,000 | 0 | |||
Accreted value | $ 1,980 | 0 | |||
Stated interest rate (percentage) | 6.384% | 6.384% | |||
6.484% Senior Notes Due October 23, 2045 [Member] | CCO Safari II [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 0 | 3,500 | |||
Accreted value | $ 0 | 3,498 | |||
Stated interest rate (percentage) | 6.484% | 6.484% | |||
6.484% Senior Notes Due October 23, 2045 [Member] | Charter Operating [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 3,500 | 0 | |||
Accreted value | $ 3,466 | 0 | |||
Stated interest rate (percentage) | 6.484% | 6.484% | |||
6.834% Senior Notes Due October 23, 2055 [Member] | CCO Safari II [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 0 | 500 | |||
Accreted value | $ 0 | 500 | |||
Stated interest rate (percentage) | 6.834% | 6.834% | |||
6.834% Senior Notes Due October 23, 2055 [Member] | Charter Operating [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 500 | 0 | |||
Accreted value | $ 495 | 0 | |||
Stated interest rate (percentage) | 6.834% | 6.834% | |||
7.000% Senior Notes Due January 15, 2019 [Member] | CCO Holdings [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 0 | 600 | $ 1,400 | ||
Accreted value | 0 | $ 594 | |||
Stated interest rate (percentage) | 7.00% | ||||
7.375% Senior Notes Due June 1, 2020 [Member] | CCO Holdings [Member] | |||||
Long-Term Debt: | |||||
Principal amount | 0 | $ 750 | |||
Accreted value | 0 | $ 744 | |||
Stated interest rate (percentage) | 7.375% | ||||
5.250% Senior Notes Due March 15, 2021 [Member] | CCO Holdings [Member] | |||||
Long-Term Debt: | |||||
Principal amount | 500 | $ 500 | |||
Accreted value | $ 496 | 496 | |||
Stated interest rate (percentage) | 5.25% | 5.25% | |||
6.500% Senior Notes Due April 30, 2021 [Member] | CCO Holdings [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 0 | 1,500 | |||
Accreted value | 0 | $ 1,487 | |||
Stated interest rate (percentage) | 6.50% | ||||
6.625% Senior Notes Due January 31, 2022 [Member] | CCO Holdings [Member] | |||||
Long-Term Debt: | |||||
Principal amount | 750 | $ 750 | |||
Accreted value | $ 741 | 740 | |||
Stated interest rate (percentage) | 6.625% | 6.625% | |||
5.250% Senior Notes Due September 30, 2022 [Member] | CCO Holdings [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 1,250 | 1,250 | |||
Accreted value | $ 1,232 | 1,229 | |||
Stated interest rate (percentage) | 5.25% | 5.25% | |||
5.125% Senior Notes Due February 15, 2023 [Member] | CCO Holdings [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 1,000 | 1,000 | |||
Accreted value | $ 992 | 990 | |||
Stated interest rate (percentage) | 5.125% | 5.125% | |||
5.125% Senior Notes Due May 1, 2023 [Member] | CCO Holdings [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 1,150 | 1,150 | |||
Accreted value | $ 1,141 | 1,140 | |||
Stated interest rate (percentage) | 5.125% | 5.125% | |||
5.750% Senior Notes Due September 1, 2023 [Member] | CCO Holdings [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 500 | 500 | |||
Accreted value | $ 496 | 495 | |||
Stated interest rate (percentage) | 5.75% | 5.75% | |||
5.750% Senior Notes Due January 15, 2024 [Member] | CCO Holdings [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 1,000 | 1,000 | |||
Accreted value | $ 991 | 990 | |||
Stated interest rate (percentage) | 5.75% | 5.75% | |||
5.875% Senior Notes Due April 1, 2024 [Member] | CCO Holdings [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 1,700 | 0 | |||
Accreted value | $ 1,685 | 0 | |||
Stated interest rate (percentage) | 5.875% | 5.875% | |||
5.375% Senior Notes Due May 1, 2025 [Member] | CCO Holdings [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 750 | 750 | |||
Accreted value | $ 744 | 744 | |||
Stated interest rate (percentage) | 5.375% | 5.375% | |||
5.500% Senior Notes Due May 1, 2026 [Member] | CCO Holdings [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 1,500 | 0 | |||
Accreted value | $ 1,487 | 0 | |||
Stated interest rate (percentage) | 5.50% | 5.50% | |||
Debt instrument issue price (percentage) | 100.075% | ||||
5.875% Senior Notes Due May 1, 2027 [Member] | CCO Holdings [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 800 | 800 | |||
Accreted value | $ 794 | 794 | |||
Stated interest rate (percentage) | 5.875% | 5.875% | |||
Credit Facilities [Member] | |||||
Long-Term Debt: | |||||
Accreted value | $ 8,814 | 7,290 | |||
Credit Facilities [Member] | CCO Safari III [Member] | |||||
Long-Term Debt: | |||||
Principal amount | 0 | 3,800 | |||
Accreted value | 0 | 3,788 | |||
Credit Facilities [Member] | Charter Operating [Member] | |||||
Long-Term Debt: | |||||
Principal amount | 8,916 | 3,552 | |||
Accreted value | 8,814 | $ 3,502 | |||
Availability under credit facilities | $ 2,800 | ||||
Variable interest rate at end of period (percentage) | 0.77% | 0.42% | 0.77% | ||
Credit Facilities [Member] | Charter Operating [Member] | Maximum [Member] | |||||
Long-Term Debt: | |||||
Leverage ratio | 3.5 | 3.5 | |||
5.850% Senior Notes Due May 1, 2017 [Member] | Time Warner Cable LLC [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 2,000 | $ 0 | |||
Accreted value | $ 2,028 | 0 | |||
Stated interest rate (percentage) | 5.85% | 5.85% | |||
6.750% Senior Notes Due July 1, 2018 [Member] | Time Warner Cable LLC [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 2,000 | 0 | |||
Accreted value | $ 2,135 | 0 | |||
Stated interest rate (percentage) | 6.75% | 6.75% | |||
8.750% Senior Notes Due February 14, 2019 [Member] | Time Warner Cable LLC [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 1,250 | 0 | |||
Accreted value | $ 1,412 | 0 | |||
Stated interest rate (percentage) | 8.75% | 8.75% | |||
8.250% Senior Notes Due April 1, 2019 [Member] | Time Warner Cable LLC [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 2,000 | 0 | |||
Accreted value | $ 2,264 | 0 | |||
Stated interest rate (percentage) | 8.25% | 8.25% | |||
5.000% Senior Notes Due February 1, 2020 [Member] | Time Warner Cable LLC [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 1,500 | 0 | |||
Accreted value | $ 1,615 | 0 | |||
Stated interest rate (percentage) | 5.00% | 5.00% | |||
4.125% Senior Notes Due February 15, 2021 [Member] | Time Warner Cable LLC [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 700 | 0 | |||
Accreted value | $ 739 | 0 | |||
Stated interest rate (percentage) | 4.125% | 4.125% | |||
4.000% Senior Notes Due September 1, 2021 [Member] | Time Warner Cable LLC [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 1,000 | 0 | |||
Accreted value | $ 1,056 | 0 | |||
Stated interest rate (percentage) | 4.00% | 4.00% | |||
5.750% Sterling Senior Notes Due June 2, 2031 [Member] | Time Warner Cable LLC [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 770 | 0 | £ 625 | ||
Accreted value | $ 834 | 0 | |||
Stated interest rate (percentage) | 5.75% | 5.75% | |||
6.550% Senior Debentures Due May 1, 2037 [Member] | Time Warner Cable LLC [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 1,500 | 0 | |||
Accreted value | $ 1,691 | 0 | |||
Stated interest rate (percentage) | 6.55% | 6.55% | |||
7.300% Senior Debentures Due July 1, 2038 [Member] | Time Warner Cable LLC [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 1,500 | 0 | |||
Accreted value | $ 1,795 | 0 | |||
Stated interest rate (percentage) | 7.30% | 7.30% | |||
6.750% Senior Debentures Due June 15, 2039 [Member] | Time Warner Cable LLC [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 1,500 | 0 | |||
Accreted value | $ 1,730 | 0 | |||
Stated interest rate (percentage) | 6.75% | 6.75% | |||
5.875% Senior Debentures Due November 15, 2040 [Member] | Time Warner Cable LLC [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 1,200 | 0 | |||
Accreted value | $ 1,259 | 0 | |||
Stated interest rate (percentage) | 5.875% | 5.875% | |||
5.500% Senior Debentures Due September 1, 2041 [Member] | Time Warner Cable LLC [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 1,250 | 0 | |||
Accreted value | $ 1,258 | 0 | |||
Stated interest rate (percentage) | 5.50% | 5.50% | |||
5.250% Sterling Senior Notes Due July 15, 2042 [Member] | Time Warner Cable LLC [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 800 | 0 | £ 650 | ||
Accreted value | $ 771 | 0 | |||
Stated interest rate (percentage) | 5.25% | 5.25% | |||
4.500% Senior Debentures Due September 15, 2042 [Member] | Time Warner Cable LLC [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 1,250 | 0 | |||
Accreted value | $ 1,135 | 0 | |||
Stated interest rate (percentage) | 4.50% | 4.50% | |||
8.375% Senior Debentures Due March 15, 2023 [Member] | Time Warner Cable Enterprises LLC [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 1,000 | 0 | |||
Accreted value | $ 1,273 | 0 | |||
Stated interest rate (percentage) | 8.375% | 8.375% | |||
8.375% Senior Debentures Due July 15, 2033 [Member] | Time Warner Cable Enterprises LLC [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 1,000 | 0 | |||
Accreted value | $ 1,324 | $ 0 | |||
Stated interest rate (percentage) | 8.375% | 8.375% | |||
7.250% Senior Notes Due October 30, 2017 [Member] | CCO Holdings [Member] | |||||
Long-Term Debt: | |||||
Stated interest rate (percentage) | 7.25% | ||||
Principal amount, repurchased | $ 1,000 | ||||
8.125% Senior Notes Due April 30, 2020 [Member] | CCO Holdings [Member] | |||||
Long-Term Debt: | |||||
Stated interest rate (percentage) | 8.125% | ||||
Principal amount, repurchased | 700 | ||||
7.000% Senior Notes Due January 15, 2019 [Member] | CCO Holdings [Member] | |||||
Long-Term Debt: | |||||
Principal amount, repurchased | $ 800 | ||||
Term Loan A Due April 22, 2018 [Member] | Charter Operating [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 2,500 | ||||
Debt instrument, required periodic principal payments in 2017 | 132 | ||||
Debt instrument, required periodic principal payments in 2018 | 132 | ||||
Debt instrument, required periodic principal payments in 2019 | 231 | ||||
Debt instrument, required periodic principal payments in 2020 | $ 264 | ||||
Basis spread on variable interest rate (percentage) | 1.75% | ||||
Term Loan E Due July 1, 2020 [Member] | Charter Operating [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 1,400 | ||||
Debt instrument, required periodic principal payments | $ 15 | ||||
Basis spread on variable interest rate (percentage) | 2.25% | ||||
Term Loan E Due July 1, 2020 [Member] | Charter Operating [Member] | Minimum [Member] | |||||
Long-Term Debt: | |||||
Variable interest rate (percentage) | 0.75% | 0.75% | |||
Term Loan F Due January 3, 2021 [Member] | Charter Operating [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 1,200 | ||||
Debt instrument, required periodic principal payments | $ 12 | ||||
Basis spread on variable interest rate (percentage) | 2.25% | ||||
Term Loan F Due January 3, 2021 [Member] | Charter Operating [Member] | Minimum [Member] | |||||
Long-Term Debt: | |||||
Variable interest rate (percentage) | 0.75% | 0.75% | |||
Term Loan H Due August 24, 2021 [Member] | Charter Operating [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 993 | ||||
Debt instrument, required periodic principal payments | $ 10 | ||||
Basis spread on variable interest rate (percentage) | 2.00% | ||||
Term Loan I Due January 24, 2023 [Member] | Charter Operating [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 2,800 | ||||
Debt instrument, required periodic principal payments | $ 28 | ||||
Basis spread on variable interest rate (percentage) | 2.25% | ||||
Revolving Loan Due May 1, 2018 [Member] | Charter Operating [Member] | |||||
Long-Term Debt: | |||||
Basis spread on variable interest rate (percentage) | 1.75% | ||||
Maximum borrowing capacity | $ 3,000 | ||||
Commitment fee (percentage) | 0.30% | ||||
Sterling Senior Notes [Member] | |||||
Long-Term Debt: | |||||
Debt instrument redemption price (percentage) | 100.00% | ||||
Notes Issued in 2015 and 2016 [Member] | CCO Holdings [Member] | |||||
Long-Term Debt: | |||||
Debt instrument, amount of principal that may be redeemed (percentage) | 35.00% | ||||
TWC Transaction [Member] | |||||
Long-Term Debt: | |||||
Principal amount | $ 22,400 | ||||
Fair value adjustment to TWC long-term debt assumed (debt premium) | $ 2,400 |
Common Stock (Details)
Common Stock (Details) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2016shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | Nov. 01, 2016USD ($) | |
Roll Forward of Common Shares: | |||||
Exchange of Charter Holdings units held by A/N (in shares) | 1,900,000 | ||||
Exercise of stock options (in shares) | 1,015,000 | 524,000 | 579,000 | ||
Value of Class A common stock shares authorized to be repurchased | $ | $ 3,000 | $ 750 | |||
Remaining value of Class A common stock shares authorized to be repurchased | $ | 1,700 | ||||
Value of treasury stock shares repurchased/withheld | $ | $ 1,562 | $ 38 | $ 19 | ||
Treasury Stock Acquired Shares Repurchased [Member] | |||||
Roll Forward of Common Shares: | |||||
Purchase of treasury stock (in shares) | (5,100,000) | ||||
Value of treasury stock shares repurchased/withheld | $ | $ 1,300 | ||||
Treasury Stock Acquired Shares Withheld Upon Vesting of Equity Awards | |||||
Roll Forward of Common Shares: | |||||
Purchase of treasury stock (in shares) | (908,066) | (177,696) | (127,725) | ||
Value of treasury stock shares repurchased/withheld | $ | $ 216 | $ 38 | $ 19 | ||
Treasury Stock Acquired Shares Withheld Upon Exercise of Stock Options | |||||
Roll Forward of Common Shares: | |||||
Purchase of treasury stock (in shares) | (50,503) | (44,541) | |||
Minimum [Member] | Charter [Member] | |||||
Roll Forward of Common Shares: | |||||
Leverage ratio restriction for share repurchases | 4 | ||||
Maximum [Member] | Charter [Member] | |||||
Roll Forward of Common Shares: | |||||
Leverage ratio restriction for share repurchases | 4.5 | ||||
Maximum [Member] | Charter Operating [Member] | |||||
Roll Forward of Common Shares: | |||||
Leverage ratio restriction for share repurchases | 3.5 | ||||
Class A Common Stock [Member] | |||||
Common Stock: | |||||
Votes per share (in votes) | 1 | ||||
Roll Forward of Common Shares: | |||||
Shares outstanding, beginning of period (in shares) | 112,438,828 | 112,438,828 | 111,999,687 | 106,144,075 | |
Reorganization of common stock (in shares) | (10,771,404) | ||||
Exchange of Charter Holdings units held by A/N (in shares) | 1,852,832 | ||||
Exercise of stock options (in shares) | 1,014,664 | 579,173 | 640,342 | ||
Restricted stock issuances, net of cancellations (in shares) | 9,811 | 6,920 | 9,090 | ||
Stock issuances from exercise of warrants (in shares) | 5,243,167 | ||||
Restricted stock unit vesting (in shares) | 1,738,792 | 98,831 | 104,270 | ||
Purchase of treasury stock (in shares) | (6,029,225) | (245,783) | (141,257) | ||
Shares outstanding, end of period (in shares) | 268,897,792 | 112,438,828 | 111,999,687 | ||
Proceeds from the exercise of warrants | $ | $ 90 | ||||
Class A Common Stock [Member] | TWC Transaction [Member] | |||||
Roll Forward of Common Shares: | |||||
Issuance of shares in acquisitions (in shares) | 143,012,155 | ||||
Issuance of shares (in shares) | 22,000,000 | ||||
Class A Common Stock [Member] | Bright House Transaction [Member] | |||||
Roll Forward of Common Shares: | |||||
Issuance of shares in acquisitions (in shares) | 0 | ||||
Issuance of shares (in shares) | 3,700,000 | ||||
Class A Common Stock [Member] | Liberty Broadband [Member] | |||||
Roll Forward of Common Shares: | |||||
Issuance of shares (in shares) | 25,631,339 | ||||
Class B Common Stock [Member] | |||||
Roll Forward of Common Shares: | |||||
Shares outstanding, beginning of period (in shares) | 0 | 0 | 0 | 0 | |
Reorganization of common stock (in shares) | 0 | ||||
Exchange of Charter Holdings units held by A/N (in shares) | 0 | ||||
Exercise of stock options (in shares) | 0 | 0 | 0 | ||
Restricted stock issuances, net of cancellations (in shares) | 0 | 0 | 0 | ||
Stock issuances from exercise of warrants (in shares) | 0 | ||||
Restricted stock unit vesting (in shares) | 0 | 0 | 0 | ||
Purchase of treasury stock (in shares) | 0 | 0 | 0 | ||
Shares outstanding, end of period (in shares) | 1 | 0 | 0 | ||
Class B Common Stock [Member] | TWC Transaction [Member] | |||||
Roll Forward of Common Shares: | |||||
Issuance of shares in acquisitions (in shares) | 0 | ||||
Class B Common Stock [Member] | Bright House Transaction [Member] | |||||
Roll Forward of Common Shares: | |||||
Issuance of shares in acquisitions (in shares) | 1 | ||||
Class B Common Stock [Member] | Liberty Broadband [Member] | |||||
Roll Forward of Common Shares: | |||||
Issuance of shares (in shares) | 0 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Noncontrolling Interests: | |
Noncontrolling interest ownership threshold (percentage) | 100.00% |
Distributions to noncontrolling interest | $ 96 |
Tax effect of change in subsidiary ownership structure | $ 225 |
Number of Charter Holdings common units held by A/N exchanged for shares of Charter Class A common stock (in shares) | shares | 1,900,000 |
Purchase price of Charter Holdings common units held by A/N exchanged for shares of Charter Class A common stock | $ 537 |
Exchange of Charter Holdings common units held by A/N, net of tax and TRA effects | $ 55 |
Number of Charter Holdings units purchased from A/N | shares | 752,767 |
Price per share at which Charter Holdings units were purchased from A/N | $ / shares | $ 289.83 |
Purchase price of Charter Holdings units purchased from A/N | $ 218 |
Value of Charter Holdings units purchased from A/N | $ 206 |
Number of Charter Holdings units held by A/N | shares | 28,400,000 |
Noncontrolling Interest [Member] | |
Noncontrolling Interests: | |
Distributions to noncontrolling interest | $ 96 |
Pretax impact of change in subsidiary ownership structure | 589 |
Exchange of Charter Holdings common units held by A/N, net of tax and TRA effects | 460 |
Value of Charter Holdings units purchased from A/N | 187 |
Additional Paid-in Capital [Member] | |
Noncontrolling Interests: | |
Distributions to noncontrolling interest | 0 |
Pretax impact of change in subsidiary ownership structure | 589 |
Exchange of Charter Holdings common units held by A/N, net of tax and TRA effects | (405) |
Value of Charter Holdings units purchased from A/N | 19 |
Common Stock [Member] | |
Noncontrolling Interests: | |
Effective value of ownership percentage held by noncontrolling interest | $ 129 |
Class A Common Stock [Member] | |
Noncontrolling Interests: | |
Number of Charter Holdings common units held by A/N exchanged for shares of Charter Class A common stock (in shares) | shares | 1,852,832 |
Bright House Transaction [Member] | Common Stock [Member] | |
Noncontrolling Interests: | |
Number of shares/units issued | shares | 31,000,000 |
Fair value of shares/units issued to acquire business | $ 6,971 |
Bright House Transaction [Member] | Preferred Stock [Member] | |
Noncontrolling Interests: | |
Number of shares/units issued | shares | 25,000,000 |
Convertible units, face amount | $ 2,500 |
Convertible units, dividend rate | 6.00% |
Number of units to be received upon conversion to Charter Holdings common units (in units) | shares | 0.37334 |
Number of shares to be received upon conversion to Charter Class A common stock (in shares) | shares | 0.37334 |
Convertible units, conversion price | $ / shares | $ 267.85 |
Convertible units, conversion price threshold (percentage) | 130.00% |
Fair value of shares/units issued to acquire business | $ 3,163 |
Bright House Transaction [Member] | Class A Common Stock [Member] | |
Noncontrolling Interests: | |
Number of shares/units issued | shares | 0 |
A/N [Member] | |
Noncontrolling Interests: | |
Ownership percentage held by noncontrolling interest (percentage) | 10.00% |
Distributions to noncontrolling interest | $ 3 |
A/N [Member] | Preferred Stock [Member] | |
Noncontrolling Interests: | |
Distributions to noncontrolling interest | $ 93 |
Accounting for Derivative Ins66
Accounting for Derivative Instruments and Hedging Activities (Details) £ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016GBP (£) | May 18, 2016USD ($) | |
Derivatives: | |||||
Asset position interest rate derivatives | $ 85 | ||||
Proceeds from termination of interest rate derivatives | $ 88 | $ 0 | $ 0 | ||
Proceeds from termination of interest rate derivatives, accrued interest portion | 14 | ||||
Unrealized loss on interest rate derivatives included in accumulated other comprehensive loss | (5) | (13) | |||
Liability position cross-currency derivative instruments | $ 72 | ||||
Gain (loss) on financial instruments, net: | |||||
Change in fair value of interest rate derivative instruments | 8 | 5 | 12 | ||
Change in fair value of cross-currency derivative instruments | (179) | 0 | 0 | ||
Remeasurement of Sterling Notes to U.S. dollars | 279 | 0 | 0 | ||
Loss on termination of interest rate derivative instruments | (11) | 0 | 0 | ||
Loss reclassified from accumulated other comprehensive loss due to discontinuance of hedge accounting | (8) | (9) | (19) | ||
Gain (loss) on financial instruments, net | 89 | (4) | $ (7) | ||
Accrued Interest [Member] | |||||
Derivatives: | |||||
Liability position interest rate derivative instruments | 5 | 3 | |||
Other Long-Term Liabilities [Member] | |||||
Derivatives: | |||||
Liability position interest rate derivative instruments | 0 | 10 | |||
Liability position cross-currency derivative instruments | 251 | 0 | |||
Interest Rate Derivatives [Member] | |||||
Derivatives: | |||||
Notional amount | $ 850 | $ 1,100 | |||
Cross Currency Derivatives [Member] | |||||
Derivatives: | |||||
Notional amount | £ | £ 1,275 | ||||
Collateral holiday agreement, position covered (percentage) | 80.00% | 80.00% | |||
Collateral holiday agreement, term | 3 years |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Measurements: | |||
Maximum amount invested in financial instrument per investment policy | $ 250 | $ 1,500 | |
Debt, carrying value | 61,747 | 35,723 | |
Asset impairment charges | 0 | 0 | $ 0 |
Senior Notes and Debentures [Member] | |||
Fair Value Measurements: | |||
Debt, carrying value | 52,933 | 28,433 | |
Debt, fair value | 55,203 | 28,744 | |
Credit Facilities [Member] | |||
Fair Value Measurements: | |||
Debt, carrying value | 8,814 | 7,290 | |
Debt, fair value | $ 8,943 | $ 7,274 | |
Interest Rate Derivatives [Member] | |||
Fair Value Measurements: | |||
Weighted average pay rate for the Company's interest rate swap agreements (percentage) | 1.59% | 1.61% | |
Interest Rate Derivatives [Member] | Level 1 [Member] | |||
Fair Value Measurements: | |||
Liability position derivative instruments, fair value | $ 0 | $ 0 | |
Interest Rate Derivatives [Member] | Level 2 [Member] | |||
Fair Value Measurements: | |||
Liability position derivative instruments, fair value | 5 | 13 | |
Cross Currency Derivatives [Member] | Level 1 [Member] | |||
Fair Value Measurements: | |||
Liability position derivative instruments, fair value | 0 | 0 | |
Cross Currency Derivatives [Member] | Level 2 [Member] | |||
Fair Value Measurements: | |||
Liability position derivative instruments, fair value | 251 | 0 | |
Money Market Funds [Member] | Level 1 [Member] | |||
Fair Value Measurements: | |||
Cash and cash equivalents, fair value | 1,205 | 14,330 | |
Money Market Funds [Member] | Level 2 [Member] | |||
Fair Value Measurements: | |||
Cash and cash equivalents, fair value | 0 | 0 | |
Commercial Paper [Member] | Level 1 [Member] | |||
Fair Value Measurements: | |||
Cash and cash equivalents, fair value | 0 | 0 | |
Commercial Paper [Member] | Level 2 [Member] | |||
Fair Value Measurements: | |||
Cash and cash equivalents, fair value | $ 0 | $ 7,934 |
Operating Costs and Expenses (D
Operating Costs and Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Costs and Expenses [Abstract] | |||
Programming | $ 7,034 | $ 2,678 | $ 2,459 |
Franchise, regulatory and connectivity | 1,467 | 435 | 428 |
Cost to service customers | 5,173 | 1,705 | 1,679 |
Marketing | 1,699 | 628 | 617 |
Transition costs | 156 | 72 | 14 |
Other | 3,126 | 908 | 776 |
Operating costs and expenses | $ 18,655 | $ 6,426 | $ 5,973 |
Other Operating Expenses, Net69
Other Operating Expenses, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Operating Expenses, Net [Abstract] | |||
Merger and restructuring costs | $ 970 | $ 70 | $ 38 |
Other pension benefits | (899) | 0 | 0 |
Special charges, net | 17 | 15 | 14 |
(Gain) loss on sale of assets, net | (2) | 4 | 10 |
Other operating expenses, net | 86 | 89 | $ 62 |
Merger and Restructuring Costs [Roll Forward] | |||
Accrued merger and restructuring costs, beginning of period | 33 | ||
Liability assumed in the Transactions | 92 | ||
Costs incurred | 722 | ||
Cash paid | (571) | ||
Accrued merger and restructuring costs, end of period | 276 | 33 | |
Stock compensation expense recognized in merger costs | 248 | ||
Employee Retention Costs [Member] | |||
Merger and Restructuring Costs [Roll Forward] | |||
Accrued merger and restructuring costs, beginning of period | 0 | ||
Liability assumed in the Transactions | 80 | ||
Costs incurred | 26 | ||
Cash paid | (99) | ||
Accrued merger and restructuring costs, end of period | 7 | 0 | |
Employee Termination Costs [Member] | |||
Merger and Restructuring Costs [Roll Forward] | |||
Accrued merger and restructuring costs, beginning of period | 0 | ||
Liability assumed in the Transactions | 9 | ||
Costs incurred | 337 | ||
Cash paid | (102) | ||
Accrued merger and restructuring costs, end of period | 244 | 0 | |
Transaction and Advisory Costs [Member] | |||
Merger and Restructuring Costs [Roll Forward] | |||
Accrued merger and restructuring costs, beginning of period | 33 | ||
Liability assumed in the Transactions | 3 | ||
Costs incurred | 318 | ||
Cash paid | (329) | ||
Accrued merger and restructuring costs, end of period | 25 | 33 | |
Other Costs [Member] | |||
Merger and Restructuring Costs [Roll Forward] | |||
Accrued merger and restructuring costs, beginning of period | 0 | ||
Liability assumed in the Transactions | 0 | ||
Costs incurred | 41 | ||
Cash paid | (41) | ||
Accrued merger and restructuring costs, end of period | $ 0 | $ 0 |
Stock Compensation Plans (Detai
Stock Compensation Plans (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock Compensation Plans: | |||
Converted TWC Awards issued, stock options exercisable (in shares) | 500,000 | ||
Pre-combination vesting period fair value of Converted TWC Awards | $ 514 | ||
Unrecognized compensation cost, outstanding Converted TWC Awards | 539 | ||
Stock compensation expense | 244 | $ 78 | $ 55 |
Stock compensation expense recognized in merger costs | $ 248 | ||
Roll Forward of Stock Options Outstanding: | |||
Stock options outstanding, beginning of period (in shares) | 3,923,000 | 3,336,000 | 2,841,000 |
Stock options granted (in shares) | 5,999,000 | 1,176,000 | 1,116,000 |
TWC stock options converted (in shares) | 839,000 | 0 | 0 |
Stock options exercised (in shares) | (1,015,000) | (524,000) | (579,000) |
Stock options canceled (in shares) | (154,000) | (65,000) | (42,000) |
Stock options outstanding, end of period (in shares) | 9,592,000 | 3,923,000 | 3,336,000 |
Stock options outstanding weighted average exercise price, beginning of period | $ 122.03 | $ 95.44 | $ 66.20 |
Stock options granted weighted average exercise price | 218.91 | 177.14 | 151.24 |
TWC stock options converted weighted average exercise price | 86.46 | 0 | 0 |
Stock options exercised weighted average exercise price | 96.33 | 72.27 | 58.07 |
Stock options canceled weighted average exercise price | 173.98 | 155.23 | 115.65 |
Stock options outstanding weighted average exercise price, end of period | $ 181.39 | $ 122.03 | $ 95.44 |
Stock options exercised aggregate intrinsic value | $ 146 | $ 68 | $ 55 |
Stock options outstanding aggregate intrinsic value | $ 1,022 | ||
Stock options outstanding weighted average remaining contractual life (in years) | 8 years | 7 years | 7 years |
Stock options exercisable, end of period (in shares) | 1,665,000 | 1,224,000 | 1,193,000 |
Stock options exercisable weighted average exercise price, end of period | $ 71.71 | $ 61.88 | $ 61.76 |
Stock options exercisable aggregate intrinsic value, end of period | $ 360 | ||
Stock options expected to vest, end of period (in shares) | 7,686,000 | ||
Stock options expected to vest weighted average exercise price, end of period | $ 205.49 | ||
Stock options expected to vest aggregate intrinsic value, end of period | $ 634 | ||
Stock options granted weighted average grant date fair value | $ 47.42 | $ 66.20 | $ 60.92 |
Restricted Stock [Member] | |||
Stock Compensation Plans: | |||
Unrecognized compensation expense | $ 1 | ||
Remaining period over which unrecognized compensation expense is expected to be recognized (in years) | 4 months | ||
Roll Forward of Restricted Stock and Restricted Stock Units Outstanding: | |||
Awards other than stock options outstanding, beginning of period (in shares) | 197,000 | 390,000 | 590,000 |
Awards other than stock options, granted (in shares) | 10,000 | 6,000 | 8,000 |
Awards other than stock options, vested (in shares) | (197,000) | (199,000) | (208,000) |
Awards other than stock options, canceled (in shares) | 0 | 0 | 0 |
Awards other than stock options outstanding, end of period (in shares) | 10,000 | 197,000 | 390,000 |
Awards other than stock options outstanding weighted average grant price, beginning of period | $ 65.79 | $ 63.30 | $ 62.09 |
Awards other than stock options granted weighted average grant price | 231.83 | 201.34 | 153.25 |
Awards other than stock options vested weighted average grant price | 65.79 | 65.16 | 63.43 |
Awards other than stock options canceled weighted average grant price | 0 | 0 | 0 |
Awards other than stock options outstanding weighted average grant price, end of period | $ 231.81 | $ 65.79 | $ 63.30 |
Restricted Stock [Member] | Minimum [Member] | |||
Stock Compensation Plans: | |||
Award vesting period (in years) | 1 year | ||
Restricted Stock Units (RSUs) [Member] | |||
Stock Compensation Plans: | |||
Unrecognized compensation expense | $ 279 | ||
Remaining period over which unrecognized compensation expense is expected to be recognized (in years) | 3 years | ||
Roll Forward of Restricted Stock and Restricted Stock Units Outstanding: | |||
Awards other than stock options outstanding, beginning of period (in shares) | 337,000 | 294,000 | 260,000 |
Awards other than stock options, granted (in shares) | 895,000 | 148,000 | 139,000 |
TWC awards other than stock options converted (in shares) | 4,162,000 | 0 | 0 |
Awards other than stock options, vested (in shares) | (1,739,000) | (90,000) | (94,000) |
Awards other than stock options, canceled (in shares) | (342,000) | (15,000) | (11,000) |
Awards other than stock options outstanding, end of period (in shares) | 3,313,000 | 337,000 | 294,000 |
Awards other than stock options outstanding weighted average grant price, beginning of period | $ 150.96 | $ 115.01 | $ 82.64 |
Awards other than stock options granted weighted average grant price | 213.09 | 179.17 | 151 |
TWC awards other than stock options converted weighted average grant price | 224.90 | 0 | 0 |
Awards other than stock options vested weighted average grant price | 219.60 | 78.65 | 77.67 |
Awards other than stock options canceled weighted average grant price | 219.91 | 155.43 | 124.44 |
Awards other than stock options outstanding weighted average grant price, end of period | $ 192.41 | $ 150.96 | $ 115.01 |
Restricted Stock Units (RSUs) [Member] | Legacy Charter Pre 2014 Awards [Member] | Maximum [Member] | |||
Stock Compensation Plans: | |||
Award vesting period (in years) | 3 years | ||
Restricted Stock Units (RSUs) [Member] | Legacy TWC Awards Converted May 2016 [Member] | |||
Stock Compensation Plans: | |||
Award vesting (percentage) | 50.00% | ||
Stock Options [Member] | |||
Stock Compensation Plans: | |||
Award expiration period (in years) | 10 years | ||
Unrecognized compensation expense | $ 262 | ||
Remaining period over which unrecognized compensation expense is expected to be recognized (in years) | 4 years | ||
Stock Options [Member] | Legacy Charter Pre 2014 Awards [Member] | Maximum [Member] | |||
Stock Compensation Plans: | |||
Award vesting period (in years) | 3 years | ||
Stock Options [Member] | Legacy TWC Awards Converted May 2016 [Member] | |||
Stock Compensation Plans: | |||
Award vesting period (in years) | 4 years | ||
Award expiration period (in years) | 10 years | ||
Class A Common Stock [Member] | |||
Stock Compensation Plans: | |||
Additional shares authorized under the 2009 Stock Incentive Plan (in shares) | 9,000,000 | ||
Shares authorized under the 2009 Stock Incentive Plan (in shares) | 21,000,000 | ||
Roll Forward of Stock Options Outstanding: | |||
Stock options exercised (in shares) | (1,014,664) | (579,173) | (640,342) |
Roll Forward of Restricted Stock and Restricted Stock Units Outstanding: | |||
Awards other than stock options, vested (in shares) | (1,738,792) | (98,831) | (104,270) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Components of Income Tax Benefit (Expense) and Effective Tax Rate Reconciliation: | |||
Current federal income tax expense | $ (4,000,000) | $ (1,000,000) | $ (1,000,000) |
Current state income tax expense | (29,000,000) | (4,000,000) | (2,000,000) |
Current income tax expense | (33,000,000) | (5,000,000) | (3,000,000) |
Deferred federal income tax benefit (expense) | 2,549,000,000 | 53,000,000 | (192,000,000) |
Deferred state income tax benefit (expense) | 409,000,000 | 12,000,000 | (41,000,000) |
Deferred income tax benefit (expense) | 2,958,000,000 | 65,000,000 | (233,000,000) |
Income tax benefit (expense) | $ 2,925,000,000 | 60,000,000 | (236,000,000) |
Increase in tax basis of amortizable and depreciable assets | 638,000,000 | ||
Federal income tax rate (percentage) | 35.00% | ||
Rate reconciliation, statutory federal income tax (benefit) expense | $ (288,000,000) | 116,000,000 | (18,000,000) |
Rate reconciliation, statutory state income tax expense, net | (36,000,000) | (4,000,000) | (2,000,000) |
Rate reconciliation, nondeductible expenses | (62,000,000) | (12,000,000) | (10,000,000) |
Rate reconciliation, net income attributable to noncontrolling interest | 78,000,000 | 0 | 0 |
Rate reconciliation, change in valuation allowance | 3,171,000,000 | (250,000,000) | (203,000,000) |
Rate reconciliation, organization restructuring | 0 | 187,000,000 | 0 |
Rate reconciliation, federal tax credits | 16,000,000 | 18,000,000 | 0 |
Rate reconciliation, state rate changes | 65,000,000 | 4,000,000 | (3,000,000) |
Rate reconciliation, other changes | (19,000,000) | 1,000,000 | 0 |
Components of Deferred Tax Assets (Liabilities): | |||
Deferred tax assets, loss carryforwards | 4,127,000,000 | 4,247,000,000 | |
Deferred tax assets, goodwill | 0 | 315,000,000 | |
Deferred tax assets, other intangibles | 0 | 211,000,000 | |
Deferred tax assets, accrued and other | 243,000,000 | 227,000,000 | |
Total gross deferred tax assets | 4,370,000,000 | 5,000,000,000 | |
Valuation Allowance: | |||
Deferred tax assets, valuation allowance | (200,000,000) | (3,186,000,000) | |
Deferred tax assets | 4,170,000,000 | 1,814,000,000 | |
Deferred tax liabilities, investment in partnership | (30,832,000,000) | 0 | |
Deferred tax liabilities, indefinite-lived intangibles | 0 | (1,582,000,000) | |
Deferred tax liabilities, property, plant and equipment | 0 | (1,822,000,000) | |
Deferred tax liabilities, accrued and other | (3,000,000) | 0 | |
Deferred tax liabilities | (30,835,000,000) | (3,404,000,000) | |
Net deferred tax liabilities | (26,665,000,000) | (1,590,000,000) | |
Net deferred tax liabilities related to certain indirect subsidiaries that file separate income tax returns | $ 25,000,000 | 28,000,000 | |
Net Operating Loss Carryforwards: | |||
Liberty Media Corporation’s beneficial interest in Legacy Charter (percentage) | 27.00% | ||
Net operating loss carryforwards for which the use is limited through 2017 | $ 5,400,000,000 | ||
Net operating loss carryforwards for which the use is limited through 2018 | 3,800,000,000 | ||
Net operating loss carryforwards for which the use is limited through 2019 | 432,000,000 | ||
Net operating loss carryforwards for which the use is limited through 2020 | 226,000,000 | ||
Net operating loss carryforwards for which the use is limited through 2021 | 226,000,000 | ||
Net operating loss carryforwards for which the use is limited through 2022 | 226,000,000 | ||
Net operating loss carryforward for which the use is limited through 2022 | 226,000,000 | ||
Net operating loss carryforward for which the use is limited through 2023 | 226,000,000 | ||
Net operating loss carryforward subject to a valuation allowance | $ 415,000,000 | ||
Tax Receivable Agreement: | |||
A/N’s share of the tax benefit realized by Charter pursuant to the Tax Receivable Agreement (percentage) | 50.00% | ||
Minimum estimated obligation due to A/N under the Tax Receivable Agreement | $ 0 | ||
Maximum estimated obligation due to A/N under the Tax Receivable Agreement | 3,000,000,000 | ||
Exchange of Charter Holdings common units held by A/N, net of tax and TRA effects | $ 55,000,000 | ||
Number of Charter Holdings common units held by A/N exchanged for shares of Charter Class A common stock (in shares) | 1,900,000 | ||
Purchase price of Charter Holdings common units held by A/N exchanged for shares of Charter Class A common stock | $ 537,000,000 | ||
Step-up in the tax basis of Charter Holdings’ assets resulting from the exchange of common units held by A/N for shares of Charter Class A common stock | 580,000,000 | ||
Deferred tax asset resulting from the exchange of common units held by A/N for shares of Charter Class A common stock | 82,000,000 | ||
Obligation due to A/N resulting from the exchange of common units held by A/N for shares of Charter Class A common stock | 137,000,000 | ||
Uncertain Tax Positions: | |||
Unrecognized tax benefits, beginning balance | 5,000,000 | 0 | |
Additions on prior year tax positions | 1,000,000 | ||
Additions on current year tax positions | 7,000,000 | 5,000,000 | |
Additions on tax positions assumed in business acquisitions | 181,000,000 | ||
Reductions on settlements and expirations with taxing authorities | (22,000,000) | ||
Unrecognized tax benefits, ending balance | 172,000,000 | $ 5,000,000 | $ 0 |
Unrecognized tax benefits that would impact the effective tax rate | 154,000,000 | ||
Decrease in unrecognized tax benefits that is reasonably possible in 2017 | $ 35,000,000 | ||
Class A Common Stock [Member] | |||
Tax Receivable Agreement: | |||
Number of Charter Holdings common units held by A/N exchanged for shares of Charter Class A common stock (in shares) | 1,852,832 | ||
TWC Transaction [Member] | |||
Valuation Allowance: | |||
Decrease in valuation allowance | $ 3,300,000,000 | ||
Operating Loss Carryforwards [Member] | TWC Transaction [Member] | |||
Valuation Allowance: | |||
Deferred tax assets, valuation allowance | (145,000,000) | ||
State Operating Loss Carryforwards and Other [Member] | |||
Valuation Allowance: | |||
Deferred tax assets, valuation allowance | (55,000,000) | ||
Internal Revenue Service (IRS) [Member] | |||
Net Operating Loss Carryforwards: | |||
Net operating loss carryforwards | 11,200,000,000 | ||
Deferred tax assets, operating loss carryforwards subject to expiration | 3,900,000,000 | ||
State and Local Jurisdiction [Member] | |||
Net Operating Loss Carryforwards: | |||
Deferred tax assets, operating loss carryforwards subject to expiration | 304,000,000 | ||
Noncontrolling Interest [Member] | |||
Tax Receivable Agreement: | |||
Exchange of Charter Holdings common units held by A/N, net of tax and TRA effects | $ 460,000,000 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings (Loss) Per Share | |||||||||||
Net income (loss) attributable to Charter shareholders | $ 454 | $ 189 | $ 3,067 | $ (188) | $ (122) | $ 54 | $ (122) | $ (81) | $ 3,522 | $ (271) | $ (183) |
Net income attributable to Charter shareholders after assumed conversions | $ 3,744 | ||||||||||
Weighted average common shares outstanding, basic (in shares) | 268,584,368 | 271,263,259 | 183,362,776 | 101,552,093 | 101,366,476 | 101,205,400 | 101,074,644 | 100,959,008 | 206,539,100 | 101,152,647 | 97,991,915 |
Effect of assumed exercise or issuance of shares related to stock plans on denominator (in shares) | 3,088,871 | ||||||||||
Weighted average common shares outstanding, diluted (in shares) | 272,624,270 | 275,373,202 | 205,214,266 | 101,552,093 | 101,366,476 | 102,481,924 | 101,074,644 | 100,959,008 | 234,791,439 | 101,152,647 | 97,991,915 |
Earnings per common share, basic | $ 1.69 | $ 0.70 | $ 16.73 | $ (1.86) | $ (1.21) | $ 0.54 | $ (1.21) | $ (0.81) | $ 17.05 | $ (2.68) | $ (1.88) |
Earnings per common share, diluted | $ 1.67 | $ 0.69 | $ 15.17 | $ (1.86) | $ (1.21) | $ 0.53 | $ (1.21) | $ (0.81) | $ 15.94 | $ (2.68) | $ (1.88) |
Common Units [Member] | |||||||||||
Earnings (Loss) Per Share | |||||||||||
Effect of Charter Holdings dilutive securities on numerator | $ 129 | ||||||||||
Effect of Charter Holdings dilutive securities on denominator (in shares) | 19,333,227 | ||||||||||
Convertible Preferred Units [Member] | |||||||||||
Earnings (Loss) Per Share | |||||||||||
Effect of Charter Holdings dilutive securities on numerator | $ 93 | ||||||||||
Effect of Charter Holdings dilutive securities on denominator (in shares) | 5,830,241 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transactions: | |||
Value of Charter Holdings units purchased from A/N | $ 206 | ||
A/N’s share of the tax benefit realized by Charter pursuant to the Tax Receivable Agreement (percentage) | 50.00% | ||
Dr. John Malone's voting interest in Liberty Interactive Corp. (percentage) | 36.40% | ||
Liberty Interactive Corp.'s ownership percentage in HSN, Inc. (percentage) | 38.30% | ||
Percent of board members Liberty Interactive Corp. can elect to HSN Inc.'s board (percentage) | 20.00% | ||
Cash payments received from HSN, Inc. and QVC, Inc. | $ 53 | $ 17 | $ 14 |
Dr. John Malone's ownership percentage in Discovery Communications, Inc. (percentage) | 5.20% | ||
Dr. John Malone's voting interest in Discovery Communications, Inc. for election of directors (percentage) | 28.70% | ||
Advance Newhouse Programming Partnership's ownership percentage in Series A preferred stock of Discovery Communications, Inc. (percentage) | 100.00% | ||
Advance Newhouse Programming Partnership's ownership percentage in Series C preferred stock of Discovery Communications, Inc. (percentage) | 100.00% | ||
Advance Newhouse Programming Partnership's ownership percentage in Discovery (percentage) | 34.00% | ||
Dr. John Malone's ownership percentage in Starz (percentage) | 5.90% | ||
Dr. John Malone's voting interest in Starz (percentage) | 8.10% | ||
Maximum [Member] | |||
Related Party Transactions: | |||
Value of Charter Holdings units purchased from A/N | $ 537 | ||
Percent of total operating costs and expenses paid to Discovery Communications, Inc. and Starz (percentage) | 3.00% | 3.00% | 3.00% |
Equity Method Investee [Member] | |||
Related Party Transactions: | |||
Payments to related parties | $ 171 | $ 28 | |
Revenue from related parties | 7 | ||
Loans due from related parties | $ 5 |
Commitments and Contingencies74
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Contractual Obligations | |||
Total contractual obligations future minimum payments | $ 14,821 | ||
Contractual obligations future minimum payments, 2017 | 1,818 | ||
Contractual obligations future minimum payments, 2018 | 1,072 | ||
Contractual obligations future minimum payments, 2019 | 910 | ||
Contractual obligations future minimum payments, 2020 | 828 | ||
Contractual obligations future minimum payments, 2021 | 647 | ||
Contractual obligations future minimum payments, 2022 and threafter | 9,546 | ||
Rent expense recognized under operating leases | 215 | $ 49 | $ 43 |
Programming costs | 7,034 | 2,678 | 2,459 |
Utility pole rental fees | 115 | 53 | 49 |
Franchise fees and other franchise-related costs | 534 | $ 212 | $ 208 |
Letters of credit outstanding | 278 | ||
Letters of credit outstanding secured under the Charter Operating credit facility | 220 | ||
Pension plan contributions | 5 | ||
Monetary damages sought by plaintiff in Sprint litigation | 150 | ||
Capital and Operating Lease Obligations [Member] | |||
Contractual Obligations | |||
Total contractual obligations future minimum payments | 1,324 | ||
Contractual obligations future minimum payments, 2017 | 259 | ||
Contractual obligations future minimum payments, 2018 | 225 | ||
Contractual obligations future minimum payments, 2019 | 180 | ||
Contractual obligations future minimum payments, 2020 | 142 | ||
Contractual obligations future minimum payments, 2021 | 108 | ||
Contractual obligations future minimum payments, 2022 and threafter | 410 | ||
Programming Minimum Commitments [Member] | |||
Contractual Obligations | |||
Total contractual obligations future minimum payments | 310 | ||
Contractual obligations future minimum payments, 2017 | 225 | ||
Contractual obligations future minimum payments, 2018 | 37 | ||
Contractual obligations future minimum payments, 2019 | 26 | ||
Contractual obligations future minimum payments, 2020 | 22 | ||
Contractual obligations future minimum payments, 2021 | 0 | ||
Contractual obligations future minimum payments, 2022 and threafter | 0 | ||
Other Contractual Obligations [Member] | |||
Contractual Obligations | |||
Total contractual obligations future minimum payments | 13,187 | ||
Contractual obligations future minimum payments, 2017 | 1,334 | ||
Contractual obligations future minimum payments, 2018 | 810 | ||
Contractual obligations future minimum payments, 2019 | 704 | ||
Contractual obligations future minimum payments, 2020 | 664 | ||
Contractual obligations future minimum payments, 2021 | 539 | ||
Contractual obligations future minimum payments, 2022 and threafter | $ 9,136 | ||
Minimum [Member] | |||
Contractual Obligations | |||
Programming fee term | 3 years | ||
Maximum [Member] | |||
Contractual Obligations | |||
Programming fee term | 10 years |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | May 18, 2016 | |
Change in Benefit Obligation [Roll Forward] | |||||||
Projected benefit obligation, beginning of year | $ 0 | ||||||
Benefit obligation assumed in the TWC Transaction | 4,009 | ||||||
Service cost | 86 | ||||||
Interest cost | 87 | ||||||
Curtailment amendment | (675) | ||||||
Actuarial gain | (149) | ||||||
Benefits paid | (98) | ||||||
Projected benefit obligation, end of year | $ 3,260 | 3,260 | $ 0 | ||||
Accumulated benefit obligation, end of year | $ 3,260 | ||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Fair value of plan assets, beginning of year | 0 | ||||||
Fair value of plan assets acquired in the TWC Transaction | 2,877 | ||||||
Actual return on plan assets | 162 | ||||||
Employer contributions | 5 | ||||||
Benefits paid | (98) | ||||||
Fair value of plan assets, end of year | $ 2,946 | 2,946 | 0 | ||||
Funded status | (314) | ||||||
Projected benefit obligation, qualified plans | 3,204 | ||||||
Accumulated benefit obligation, qualified plans | 3,204 | ||||||
Fair value of plan assets, qualified plans | 2,946 | ||||||
Projected benefit obligation, nonqualfied plan | 56 | ||||||
Accumulated benefit obligation, nonqualified plan | 56 | ||||||
Fair value of plan assets, nonqualified plan | 0 | ||||||
Amounts recognized in consolidated balance sheet, noncurrent asset | 1 | ||||||
Amounts recognized in consolidated balance sheet, current liability | (6) | ||||||
Amounts recognized in consolidated balance sheet, long-term liability | (309) | ||||||
Net amounts recognized in consolidated balance sheet | $ (314) | ||||||
Service cost | 86 | ||||||
Expected return on plan assets | (116) | ||||||
Pension curtailment gain | (675) | ||||||
Remeasurement gain | (195) | ||||||
Net periodic pension benefit | $ (813) | ||||||
Discount rate assumption used to calculate benefit obligation (percentage) | 4.20% | 3.99% | |||||
Rate of compensation increase assumption used to calculate benefit obligation (percentage) | 0.00% | 4.25% | |||||
Expected long-term rate of return on plan assets assumption used to calculate net periodic benefit cost (percentage) | 6.50% | ||||||
Discount rate assumption used to calculate net periodic benefit cost (percentage) | 3.99% | 3.72% | 3.72% | ||||
Rate of compensation increase assumption used to calculate net periodic benefit cost (percentage) | 4.25% | 0.00% | 0.00% | ||||
Expected long-term rate of return on plan assets in next fiscal year assumption used to calculate net periodic benefit cost (percentage) | 6.50% | ||||||
Pension plan investment assets | $ 2,955 | ||||||
Pension plan investment assets, accrued investment income and other receivables | 107 | ||||||
Pension plan investment assets, accrued liabilties | (120) | ||||||
Pension plan investment assets measured at net asset value | 4 | ||||||
Fair value of plan assets | $ 2,946 | $ 0 | 0 | 2,946 | |||
Pension plan expected future benefit payments, 2017 | 170 | ||||||
Pension plan expected future benefit payments, 2018 | 174 | ||||||
Pension plan expected future benefit payments, 2019 | 177 | ||||||
Pension plan expected future benefit payments, 2020 | 180 | ||||||
Pension plan expected future benefit payments, 2021 | 182 | ||||||
Pension plan expected future benefit payments, 2022 and thereafter | 911 | ||||||
Employer contributions to multiemployer plans | $ 31 | ||||||
Level 1 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 1,721 | ||||||
Level 2 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 1,234 | ||||||
Level 3 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 0 | ||||||
401(k) Plan [Member] | |||||||
Defined Contribution Plan Disclosure [Line Items] | |||||||
Defined contribution plan, maximum annual contributions per employee (percentage) | 50.00% | ||||||
Defined contribution plan, employer matching contribution (percentage) | 100.00% | ||||||
Defined contribution plan, employer matching contribution percent of employees' gross pay (percentage) | 6.00% | ||||||
Defined contribution plan, employer's contributions | $ 147 | $ 23 | $ 19 | ||||
Retirement Accumulation Plan [Member] | |||||||
Defined Contribution Plan Disclosure [Line Items] | |||||||
Defined contribution plan, employer's contribution percent of employees' eligible pay (percentage) | 3.00% | ||||||
Defined contribution plan, employer's contributions | $ 48 | ||||||
Cash [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 2 | ||||||
Cash [Member] | Level 1 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 2 | ||||||
Cash [Member] | Level 2 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 0 | ||||||
Cash [Member] | Level 3 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 0 | ||||||
Domestic Common Stocks [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 1,065 | ||||||
Domestic Common Stocks [Member] | Level 1 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 1,065 | ||||||
Domestic Common Stocks [Member] | Level 2 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 0 | ||||||
Domestic Common Stocks [Member] | Level 3 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 0 | ||||||
International Common Stocks [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 391 | ||||||
International Common Stocks [Member] | Level 1 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 391 | ||||||
International Common Stocks [Member] | Level 2 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 0 | ||||||
International Common Stocks [Member] | Level 3 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 0 | ||||||
Commingled Equity Funds [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 348 | ||||||
Commingled Equity Funds [Member] | Level 1 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 0 | ||||||
Commingled Equity Funds [Member] | Level 2 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 348 | ||||||
Commingled Equity Funds [Member] | Level 3 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 0 | ||||||
Other Equity Securities [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 3 | ||||||
Other Equity Securities [Member] | Level 1 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 3 | ||||||
Other Equity Securities [Member] | Level 2 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 0 | ||||||
Other Equity Securities [Member] | Level 3 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 0 | ||||||
Corporate Debt Securities [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 394 | ||||||
Corporate Debt Securities [Member] | Level 1 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 0 | ||||||
Corporate Debt Securities [Member] | Level 2 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 394 | ||||||
Corporate Debt Securities [Member] | Level 3 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 0 | ||||||
Commingled Bond Funds [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 273 | ||||||
Commingled Bond Funds [Member] | Level 1 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 0 | ||||||
Commingled Bond Funds [Member] | Level 2 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 273 | ||||||
Commingled Bond Funds [Member] | Level 3 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 0 | ||||||
U.S. Treasury Debt Securities [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 260 | ||||||
U.S. Treasury Debt Securities [Member] | Level 1 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 260 | ||||||
U.S. Treasury Debt Securities [Member] | Level 2 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 0 | ||||||
U.S. Treasury Debt Securities [Member] | Level 3 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 0 | ||||||
Collective Trust Funds [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 75 | ||||||
Collective Trust Funds [Member] | Level 1 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 0 | ||||||
Collective Trust Funds [Member] | Level 2 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 75 | ||||||
Collective Trust Funds [Member] | Level 3 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 0 | ||||||
U.S. Government Agency Asset-Backed Debt Securities [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 53 | ||||||
U.S. Government Agency Asset-Backed Debt Securities [Member] | Level 1 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 0 | ||||||
U.S. Government Agency Asset-Backed Debt Securities [Member] | Level 2 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 53 | ||||||
U.S. Government Agency Asset-Backed Debt Securities [Member] | Level 3 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 0 | ||||||
Corporate Asset-Backed Debt Securities [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 2 | ||||||
Corporate Asset-Backed Debt Securities [Member] | Level 1 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 0 | ||||||
Corporate Asset-Backed Debt Securities [Member] | Level 2 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 2 | ||||||
Corporate Asset-Backed Debt Securities [Member] | Level 3 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 0 | ||||||
Other Fixed-Income Securities [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 89 | ||||||
Other Fixed-Income Securities [Member] | Level 1 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 0 | ||||||
Other Fixed-Income Securities [Member] | Level 2 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 89 | ||||||
Other Fixed-Income Securities [Member] | Level 3 [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets | 0 | ||||||
Foreign Exchange Contract [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Pension plan investment assets, accrued investment income and other receivables | 70 | ||||||
Pension plan investment assets, accrued liabilties | $ (71) | ||||||
Return Seeking Securities [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Target pension plan asset allocation | 75.00% | ||||||
Actual pension plan asset allocation | 64.40% | ||||||
Liability Matching Securities [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Target pension plan asset allocation | 25.00% | ||||||
Actual pension plan asset allocation | 35.40% | ||||||
Other Investments [Member] | |||||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Target pension plan asset allocation | 0.00% | ||||||
Actual pension plan asset allocation | 0.20% |
Recently Issued Accounting St76
Recently Issued Accounting Standards (Details) $ in Millions | Jan. 01, 2017USD ($) |
Subsequent Event [Member] | |
Recently Issued Accounting Standards: | |
Cumulative-effect adjustment to retained earnings recorded upon adoption of ASU 2016-09 | $ 136 |
Unaudited Quarterly Financial77
Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Unaudited Quarterly Financial Data [Abstract] | |||||||||||
Revenues | $ 10,275 | $ 10,037 | $ 6,161 | $ 2,530 | $ 2,512 | $ 2,450 | $ 2,430 | $ 2,362 | $ 29,003 | $ 9,754 | $ 9,108 |
Income from operations | 1,439 | 924 | 690 | 302 | 323 | 273 | 269 | 249 | 3,355 | 1,114 | 971 |
Net income (loss) attributable to Charter shareholders | $ 454 | $ 189 | $ 3,067 | $ (188) | $ (122) | $ 54 | $ (122) | $ (81) | $ 3,522 | $ (271) | $ (183) |
Earnings per common share, basic | $ 1.69 | $ 0.70 | $ 16.73 | $ (1.86) | $ (1.21) | $ 0.54 | $ (1.21) | $ (0.81) | $ 17.05 | $ (2.68) | $ (1.88) |
Earnings per common share, diluted | $ 1.67 | $ 0.69 | $ 15.17 | $ (1.86) | $ (1.21) | $ 0.53 | $ (1.21) | $ (0.81) | $ 15.94 | $ (2.68) | $ (1.88) |
Weighted average common shares outstanding, basic (in shares) | 268,584,368 | 271,263,259 | 183,362,776 | 101,552,093 | 101,366,476 | 101,205,400 | 101,074,644 | 100,959,008 | 206,539,100 | 101,152,647 | 97,991,915 |
Weighted average common shares outstanding, diluted (in shares) | 272,624,270 | 275,373,202 | 205,214,266 | 101,552,093 | 101,366,476 | 102,481,924 | 101,074,644 | 100,959,008 | 234,791,439 | 101,152,647 | 97,991,915 |
Condensed Consolidating Balance
Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
CURRENT ASSETS: | ||||
Cash and cash equivalents | $ 1,535 | $ 5 | $ 3 | $ 21 |
Accounts receivable, net | 1,432 | 279 | ||
Receivables from related party | 0 | 0 | ||
Prepaid expenses and other current assets | 333 | 61 | ||
Total current assets | 3,300 | 345 | ||
RESTRICTED CASH AND CASH EQUIVALENTS | 0 | 22,264 | ||
INVESTMENT IN CABLE PROPERTIES: | ||||
Property, plant and equipment, net | 32,963 | 8,345 | ||
Customer relationships, net | 14,608 | 856 | ||
Franchises | 67,316 | 6,006 | ||
Goodwill | 29,509 | 1,168 | ||
Total investment in cable properties, net | 144,396 | 16,375 | ||
INVESTMENT IN SUBSIDIARIES | 0 | 0 | ||
LOANS RECEIVABLE - RELATED PARTY | 0 | 0 | ||
OTHER NONCURRENT ASSETS | 1,371 | 332 | ||
Total assets | 149,067 | 39,316 | ||
CURRENT LIABILITIES: | ||||
Accounts payable and accrued liabilities | 7,544 | 1,972 | ||
Payables to related party | 0 | 0 | ||
Current portion of long-term debt | 2,028 | 0 | ||
Total current liabilities | 9,572 | 1,972 | ||
LONG-TERM DEBT | 59,719 | 35,723 | ||
LOANS PAYABLE - RELATED PARTY | 0 | 0 | ||
DEFERRED INCOME TAXES | 26,665 | 1,590 | ||
OTHER LONG-TERM LIABILITIES | 2,745 | 77 | ||
SHAREHOLDERS'/MEMBER'S EQUITY | ||||
Controlling interest | 40,139 | (46) | ||
Noncontrolling interests | 10,227 | 0 | ||
Total shareholders'/member's equity | 50,366 | (46) | 146 | 151 |
Total liabilities and shareholders'/member's equity | 149,067 | 39,316 | ||
Eliminations [Member] | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Receivables from related party | (683) | (362) | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | (683) | (362) | ||
RESTRICTED CASH AND CASH EQUIVALENTS | 0 | |||
INVESTMENT IN CABLE PROPERTIES: | ||||
Property, plant and equipment, net | 0 | 0 | ||
Customer relationships, net | 0 | 0 | ||
Franchises | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Total investment in cable properties, net | 0 | 0 | ||
INVESTMENT IN SUBSIDIARIES | (231,290) | (13,587) | ||
LOANS RECEIVABLE - RELATED PARTY | (1,134) | (1,509) | ||
OTHER NONCURRENT ASSETS | 0 | 0 | ||
Total assets | (233,107) | (15,458) | ||
CURRENT LIABILITIES: | ||||
Accounts payable and accrued liabilities | 0 | 0 | ||
Payables to related party | (683) | (362) | ||
Current portion of long-term debt | 0 | |||
Total current liabilities | (683) | (362) | ||
LONG-TERM DEBT | 0 | 0 | ||
LOANS PAYABLE - RELATED PARTY | (1,134) | (1,509) | ||
DEFERRED INCOME TAXES | 0 | 0 | ||
OTHER LONG-TERM LIABILITIES | 0 | 0 | ||
SHAREHOLDERS'/MEMBER'S EQUITY | ||||
Controlling interest | (231,290) | |||
Noncontrolling interests | 0 | |||
Total shareholders'/member's equity | (231,290) | (13,587) | ||
Total liabilities and shareholders'/member's equity | (233,107) | (15,458) | ||
Charter [Member] | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 57 | 0 | 3 | 0 |
Accounts receivable, net | 34 | 8 | ||
Receivables from related party | 170 | 51 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | 261 | 59 | ||
RESTRICTED CASH AND CASH EQUIVALENTS | 0 | |||
INVESTMENT IN CABLE PROPERTIES: | ||||
Property, plant and equipment, net | 0 | 0 | ||
Customer relationships, net | 0 | 0 | ||
Franchises | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Total investment in cable properties, net | 0 | 0 | ||
INVESTMENT IN SUBSIDIARIES | 66,692 | 1,468 | ||
LOANS RECEIVABLE - RELATED PARTY | 0 | 0 | ||
OTHER NONCURRENT ASSETS | 0 | 0 | ||
Total assets | 66,953 | 1,527 | ||
CURRENT LIABILITIES: | ||||
Accounts payable and accrued liabilities | 22 | 11 | ||
Payables to related party | 0 | 0 | ||
Current portion of long-term debt | 0 | |||
Total current liabilities | 22 | 11 | ||
LONG-TERM DEBT | 0 | 0 | ||
LOANS PAYABLE - RELATED PARTY | 0 | 0 | ||
DEFERRED INCOME TAXES | 26,637 | 1,562 | ||
OTHER LONG-TERM LIABILITIES | 155 | 0 | ||
SHAREHOLDERS'/MEMBER'S EQUITY | ||||
Controlling interest | 40,139 | |||
Noncontrolling interests | 0 | |||
Total shareholders'/member's equity | 40,139 | (46) | ||
Total liabilities and shareholders'/member's equity | 66,953 | 1,527 | ||
Intermediate Holding Companies [Member] | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 154 | 0 | 0 | 5 |
Accounts receivable, net | 11 | 7 | ||
Receivables from related party | 451 | 297 | ||
Prepaid expenses and other current assets | 33 | 6 | ||
Total current assets | 649 | 310 | ||
RESTRICTED CASH AND CASH EQUIVALENTS | 0 | |||
INVESTMENT IN CABLE PROPERTIES: | ||||
Property, plant and equipment, net | 245 | 28 | ||
Customer relationships, net | 0 | 0 | ||
Franchises | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Total investment in cable properties, net | 245 | 28 | ||
INVESTMENT IN SUBSIDIARIES | 75,838 | 816 | ||
LOANS RECEIVABLE - RELATED PARTY | 640 | 333 | ||
OTHER NONCURRENT ASSETS | 214 | 216 | ||
Total assets | 77,586 | 1,703 | ||
CURRENT LIABILITIES: | ||||
Accounts payable and accrued liabilities | 625 | 203 | ||
Payables to related party | 0 | 0 | ||
Current portion of long-term debt | 0 | |||
Total current liabilities | 625 | 203 | ||
LONG-TERM DEBT | 0 | 0 | ||
LOANS PAYABLE - RELATED PARTY | 0 | 0 | ||
DEFERRED INCOME TAXES | 3 | 0 | ||
OTHER LONG-TERM LIABILITIES | 64 | 32 | ||
SHAREHOLDERS'/MEMBER'S EQUITY | ||||
Controlling interest | 66,692 | |||
Noncontrolling interests | 10,202 | |||
Total shareholders'/member's equity | 76,894 | 1,468 | ||
Total liabilities and shareholders'/member's equity | 77,586 | 1,703 | ||
Safari Escrow Entities [Member] | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | |||
Receivables from related party | 0 | |||
Prepaid expenses and other current assets | 0 | |||
Total current assets | 0 | |||
RESTRICTED CASH AND CASH EQUIVALENTS | 22,264 | |||
INVESTMENT IN CABLE PROPERTIES: | ||||
Property, plant and equipment, net | 0 | |||
Customer relationships, net | 0 | |||
Franchises | 0 | |||
Goodwill | 0 | |||
Total investment in cable properties, net | 0 | |||
INVESTMENT IN SUBSIDIARIES | 0 | |||
LOANS RECEIVABLE - RELATED PARTY | 0 | |||
OTHER NONCURRENT ASSETS | 0 | |||
Total assets | 22,264 | |||
CURRENT LIABILITIES: | ||||
Accounts payable and accrued liabilities | 282 | |||
Payables to related party | 17 | |||
Total current liabilities | 299 | |||
LONG-TERM DEBT | 21,778 | |||
LOANS PAYABLE - RELATED PARTY | 693 | |||
DEFERRED INCOME TAXES | 0 | |||
OTHER LONG-TERM LIABILITIES | 0 | |||
SHAREHOLDERS'/MEMBER'S EQUITY | ||||
Total shareholders'/member's equity | (506) | |||
Total liabilities and shareholders'/member's equity | 22,264 | |||
CCO Holdings [Member] | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Receivables from related party | 62 | 14 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | 62 | 14 | ||
RESTRICTED CASH AND CASH EQUIVALENTS | 0 | |||
INVESTMENT IN CABLE PROPERTIES: | ||||
Property, plant and equipment, net | 0 | 0 | ||
Customer relationships, net | 0 | 0 | ||
Franchises | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Total investment in cable properties, net | 0 | 0 | ||
INVESTMENT IN SUBSIDIARIES | 88,760 | 11,303 | ||
LOANS RECEIVABLE - RELATED PARTY | 494 | 613 | ||
OTHER NONCURRENT ASSETS | 0 | 0 | ||
Total assets | 89,316 | 11,930 | ||
CURRENT LIABILITIES: | ||||
Accounts payable and accrued liabilities | 219 | 165 | ||
Payables to related party | 0 | 0 | ||
Current portion of long-term debt | 0 | |||
Total current liabilities | 219 | 165 | ||
LONG-TERM DEBT | 13,259 | 10,443 | ||
LOANS PAYABLE - RELATED PARTY | 0 | 0 | ||
DEFERRED INCOME TAXES | 0 | 0 | ||
OTHER LONG-TERM LIABILITIES | 0 | 0 | ||
SHAREHOLDERS'/MEMBER'S EQUITY | ||||
Controlling interest | 75,838 | |||
Noncontrolling interests | 0 | |||
Total shareholders'/member's equity | 75,838 | 1,322 | ||
Total liabilities and shareholders'/member's equity | 89,316 | 11,930 | ||
Charter Operating and Restricted Subsidiaries [Member] | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 1,324 | 5 | $ 0 | $ 16 |
Accounts receivable, net | 1,387 | 264 | ||
Receivables from related party | 0 | 0 | ||
Prepaid expenses and other current assets | 300 | 55 | ||
Total current assets | 3,011 | 324 | ||
RESTRICTED CASH AND CASH EQUIVALENTS | 0 | |||
INVESTMENT IN CABLE PROPERTIES: | ||||
Property, plant and equipment, net | 32,718 | 8,317 | ||
Customer relationships, net | 14,608 | 856 | ||
Franchises | 67,316 | 6,006 | ||
Goodwill | 29,509 | 1,168 | ||
Total investment in cable properties, net | 144,151 | 16,347 | ||
INVESTMENT IN SUBSIDIARIES | 0 | 0 | ||
LOANS RECEIVABLE - RELATED PARTY | 0 | 563 | ||
OTHER NONCURRENT ASSETS | 1,157 | 116 | ||
Total assets | 148,319 | 17,350 | ||
CURRENT LIABILITIES: | ||||
Accounts payable and accrued liabilities | 6,678 | 1,311 | ||
Payables to related party | 683 | 345 | ||
Current portion of long-term debt | 2,028 | |||
Total current liabilities | 9,389 | 1,656 | ||
LONG-TERM DEBT | 46,460 | 3,502 | ||
LOANS PAYABLE - RELATED PARTY | 1,134 | 816 | ||
DEFERRED INCOME TAXES | 25 | 28 | ||
OTHER LONG-TERM LIABILITIES | 2,526 | 45 | ||
SHAREHOLDERS'/MEMBER'S EQUITY | ||||
Controlling interest | 88,760 | |||
Noncontrolling interests | 25 | |||
Total shareholders'/member's equity | 88,785 | 11,303 | ||
Total liabilities and shareholders'/member's equity | $ 148,319 | $ 17,350 |
Condensed Consolidating Stateme
Condensed Consolidating Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
REVENUES | $ 10,275 | $ 10,037 | $ 6,161 | $ 2,530 | $ 2,512 | $ 2,450 | $ 2,430 | $ 2,362 | $ 29,003 | $ 9,754 | $ 9,108 |
COSTS AND EXPENSES: | |||||||||||
Operating costs and expenses (exclusive of items shown separately below) | 18,655 | 6,426 | 5,973 | ||||||||
Depreciation and amortization | 6,907 | 2,125 | 2,102 | ||||||||
Other operating (income) expenses, net | 86 | 89 | 62 | ||||||||
Total costs and expenses | 25,648 | 8,640 | 8,137 | ||||||||
Income (loss) from operations | 1,439 | 924 | 690 | 302 | 323 | 273 | 269 | 249 | 3,355 | 1,114 | 971 |
OTHER INCOME (EXPENSES): | |||||||||||
Interest income (expense), net | (2,499) | (1,306) | (911) | ||||||||
Loss on extinguishment of debt | (111) | (128) | 0 | ||||||||
Gain (loss) on financial instruments, net | 89 | (4) | (7) | ||||||||
Other expense, net | (14) | (7) | 0 | ||||||||
Equity in income (loss) of subisidiaries | 0 | 0 | 0 | ||||||||
Total other income (expenses) | (2,535) | (1,445) | (918) | ||||||||
Income (loss) before income taxes | 820 | (331) | 53 | ||||||||
INCOME TAX BENEFIT (EXPENSE) | 2,925 | 60 | (236) | ||||||||
Consolidated net income (loss) | 3,745 | (271) | (183) | ||||||||
Less: Net (income) loss – noncontrolling interests | (223) | 0 | 0 | ||||||||
Net income (loss) | $ 454 | $ 189 | $ 3,067 | $ (188) | $ (122) | $ 54 | $ (122) | $ (81) | 3,522 | (271) | (183) |
Eliminations [Member] | |||||||||||
REVENUES | (1,255) | (324) | (257) | ||||||||
COSTS AND EXPENSES: | |||||||||||
Operating costs and expenses (exclusive of items shown separately below) | (1,255) | (324) | (257) | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Other operating (income) expenses, net | 0 | 0 | 0 | ||||||||
Total costs and expenses | (1,255) | (324) | (257) | ||||||||
Income (loss) from operations | 0 | 0 | 0 | ||||||||
OTHER INCOME (EXPENSES): | |||||||||||
Interest income (expense), net | 0 | 0 | 0 | ||||||||
Loss on extinguishment of debt | 0 | 0 | |||||||||
Gain (loss) on financial instruments, net | 0 | 0 | 0 | ||||||||
Other expense, net | 0 | 0 | |||||||||
Equity in income (loss) of subisidiaries | (4,210) | (734) | (680) | ||||||||
Total other income (expenses) | (4,210) | (734) | (680) | ||||||||
Income (loss) before income taxes | (4,210) | (734) | (680) | ||||||||
INCOME TAX BENEFIT (EXPENSE) | 0 | 0 | 0 | ||||||||
Consolidated net income (loss) | (4,210) | (734) | (680) | ||||||||
Less: Net (income) loss – noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) | (4,210) | (734) | (680) | ||||||||
Charter [Member] | |||||||||||
REVENUES | 251 | 25 | 22 | ||||||||
COSTS AND EXPENSES: | |||||||||||
Operating costs and expenses (exclusive of items shown separately below) | 251 | 25 | 22 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Other operating (income) expenses, net | 262 | 0 | 0 | ||||||||
Total costs and expenses | 513 | 25 | 22 | ||||||||
Income (loss) from operations | (262) | 0 | 0 | ||||||||
OTHER INCOME (EXPENSES): | |||||||||||
Interest income (expense), net | 0 | 0 | 0 | ||||||||
Loss on extinguishment of debt | 0 | 0 | |||||||||
Gain (loss) on financial instruments, net | 0 | 0 | 0 | ||||||||
Other expense, net | 0 | 0 | |||||||||
Equity in income (loss) of subisidiaries | 851 | (121) | 40 | ||||||||
Total other income (expenses) | 851 | (121) | 40 | ||||||||
Income (loss) before income taxes | 589 | (121) | 40 | ||||||||
INCOME TAX BENEFIT (EXPENSE) | 2,933 | (150) | (223) | ||||||||
Consolidated net income (loss) | 3,522 | (271) | (183) | ||||||||
Less: Net (income) loss – noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) | 3,522 | (271) | (183) | ||||||||
Intermediate Holding Companies [Member] | |||||||||||
REVENUES | 1,004 | 299 | 235 | ||||||||
COSTS AND EXPENSES: | |||||||||||
Operating costs and expenses (exclusive of items shown separately below) | 989 | 299 | 235 | ||||||||
Depreciation and amortization | 5 | 0 | 0 | ||||||||
Other operating (income) expenses, net | 1 | 0 | 0 | ||||||||
Total costs and expenses | 995 | 299 | 235 | ||||||||
Income (loss) from operations | 9 | 0 | 0 | ||||||||
OTHER INCOME (EXPENSES): | |||||||||||
Interest income (expense), net | 14 | 8 | 8 | ||||||||
Loss on extinguishment of debt | 0 | 0 | |||||||||
Gain (loss) on financial instruments, net | 0 | 0 | 0 | ||||||||
Other expense, net | (11) | (7) | |||||||||
Equity in income (loss) of subisidiaries | 1,066 | (168) | (12) | ||||||||
Total other income (expenses) | 1,069 | (167) | (4) | ||||||||
Income (loss) before income taxes | 1,078 | (167) | (4) | ||||||||
INCOME TAX BENEFIT (EXPENSE) | (5) | 0 | 0 | ||||||||
Consolidated net income (loss) | 1,073 | (167) | (4) | ||||||||
Less: Net (income) loss – noncontrolling interests | (222) | 46 | 44 | ||||||||
Net income (loss) | 851 | (121) | 40 | ||||||||
Safari Escrow Entities [Member] | |||||||||||
REVENUES | 0 | 0 | 0 | ||||||||
COSTS AND EXPENSES: | |||||||||||
Operating costs and expenses (exclusive of items shown separately below) | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Other operating (income) expenses, net | 0 | 0 | 0 | ||||||||
Total costs and expenses | 0 | 0 | 0 | ||||||||
Income (loss) from operations | 0 | 0 | 0 | ||||||||
OTHER INCOME (EXPENSES): | |||||||||||
Interest income (expense), net | (390) | (474) | (30) | ||||||||
Loss on extinguishment of debt | 0 | (2) | |||||||||
Gain (loss) on financial instruments, net | 0 | 0 | 0 | ||||||||
Other expense, net | 0 | 0 | |||||||||
Equity in income (loss) of subisidiaries | 0 | 0 | 0 | ||||||||
Total other income (expenses) | (390) | (476) | (30) | ||||||||
Income (loss) before income taxes | (390) | (476) | (30) | ||||||||
INCOME TAX BENEFIT (EXPENSE) | 0 | 0 | 0 | ||||||||
Consolidated net income (loss) | (390) | (476) | (30) | ||||||||
Less: Net (income) loss – noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) | (390) | (476) | (30) | ||||||||
CCO Holdings [Member] | |||||||||||
REVENUES | 0 | 0 | 0 | ||||||||
COSTS AND EXPENSES: | |||||||||||
Operating costs and expenses (exclusive of items shown separately below) | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Other operating (income) expenses, net | 0 | 0 | 0 | ||||||||
Total costs and expenses | 0 | 0 | 0 | ||||||||
Income (loss) from operations | 0 | 0 | 0 | ||||||||
OTHER INCOME (EXPENSES): | |||||||||||
Interest income (expense), net | (727) | (642) | (679) | ||||||||
Loss on extinguishment of debt | (110) | (123) | |||||||||
Gain (loss) on financial instruments, net | 0 | 0 | 0 | ||||||||
Other expense, net | 0 | 0 | |||||||||
Equity in income (loss) of subisidiaries | 2,293 | 1,073 | 697 | ||||||||
Total other income (expenses) | 1,456 | 308 | 18 | ||||||||
Income (loss) before income taxes | 1,456 | 308 | 18 | ||||||||
INCOME TAX BENEFIT (EXPENSE) | 0 | 0 | 0 | ||||||||
Consolidated net income (loss) | 1,456 | 308 | 18 | ||||||||
Less: Net (income) loss – noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) | 1,456 | 308 | 18 | ||||||||
Charter Operating and Restricted Subsidiaries [Member] | |||||||||||
REVENUES | 29,003 | 9,754 | 9,108 | ||||||||
COSTS AND EXPENSES: | |||||||||||
Operating costs and expenses (exclusive of items shown separately below) | 18,670 | 6,426 | 5,973 | ||||||||
Depreciation and amortization | 6,902 | 2,125 | 2,102 | ||||||||
Other operating (income) expenses, net | (177) | 89 | 62 | ||||||||
Total costs and expenses | 25,395 | 8,640 | 8,137 | ||||||||
Income (loss) from operations | 3,608 | 1,114 | 971 | ||||||||
OTHER INCOME (EXPENSES): | |||||||||||
Interest income (expense), net | (1,396) | (151) | (165) | ||||||||
Loss on extinguishment of debt | (1) | 0 | |||||||||
Gain (loss) on financial instruments, net | 89 | (4) | (7) | ||||||||
Other expense, net | (3) | 0 | |||||||||
Equity in income (loss) of subisidiaries | 0 | (50) | (45) | ||||||||
Total other income (expenses) | (1,311) | (205) | (217) | ||||||||
Income (loss) before income taxes | 2,297 | 909 | 754 | ||||||||
INCOME TAX BENEFIT (EXPENSE) | (3) | 210 | (13) | ||||||||
Consolidated net income (loss) | 2,294 | 1,119 | 741 | ||||||||
Less: Net (income) loss – noncontrolling interests | (1) | (46) | (44) | ||||||||
Net income (loss) | $ 2,293 | 1,073 | 697 | ||||||||
Unrestricted Subisidiary – CCO Safari [Member] | |||||||||||
REVENUES | 0 | 0 | |||||||||
COSTS AND EXPENSES: | |||||||||||
Operating costs and expenses (exclusive of items shown separately below) | 0 | 0 | |||||||||
Depreciation and amortization | 0 | 0 | |||||||||
Other operating (income) expenses, net | 0 | 0 | |||||||||
Total costs and expenses | 0 | 0 | |||||||||
Income (loss) from operations | 0 | 0 | |||||||||
OTHER INCOME (EXPENSES): | |||||||||||
Interest income (expense), net | (47) | (45) | |||||||||
Loss on extinguishment of debt | (3) | ||||||||||
Gain (loss) on financial instruments, net | 0 | 0 | |||||||||
Other expense, net | 0 | ||||||||||
Equity in income (loss) of subisidiaries | 0 | 0 | |||||||||
Total other income (expenses) | (50) | (45) | |||||||||
Income (loss) before income taxes | (50) | (45) | |||||||||
INCOME TAX BENEFIT (EXPENSE) | 0 | 0 | |||||||||
Consolidated net income (loss) | (50) | (45) | |||||||||
Less: Net (income) loss – noncontrolling interests | 0 | 0 | |||||||||
Net income (loss) | $ (50) | $ (45) |
Condensed Consolidating State80
Condensed Consolidating Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated net income (loss) | $ 3,745 | $ (271) | $ (183) |
Net impact of interest rate derivative instruments, net of tax | 8 | 9 | 19 |
Foreign currency translation adjustment | (2) | 0 | 0 |
Consolidated comprehensive income (loss) | 3,751 | (262) | (164) |
Less: Comprehensive (income) loss attributable to noncontrolling interests | (223) | 0 | 0 |
Comprehensive income (loss) | 3,528 | (262) | (164) |
Eliminations [Member] | |||
Consolidated net income (loss) | (4,210) | (734) | (680) |
Net impact of interest rate derivative instruments, net of tax | (32) | (36) | (76) |
Foreign currency translation adjustment | 8 | ||
Consolidated comprehensive income (loss) | (4,234) | (770) | (756) |
Less: Comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | 0 |
Comprehensive income (loss) | (4,234) | (770) | (756) |
Charter [Member] | |||
Consolidated net income (loss) | 3,522 | (271) | (183) |
Net impact of interest rate derivative instruments, net of tax | 8 | 9 | 19 |
Foreign currency translation adjustment | (2) | ||
Consolidated comprehensive income (loss) | 3,528 | (262) | (164) |
Less: Comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | 0 |
Comprehensive income (loss) | 3,528 | (262) | (164) |
Intermediate Holding Companies [Member] | |||
Consolidated net income (loss) | 1,073 | (167) | (4) |
Net impact of interest rate derivative instruments, net of tax | 8 | 9 | 19 |
Foreign currency translation adjustment | (2) | ||
Consolidated comprehensive income (loss) | 1,079 | (158) | 15 |
Less: Comprehensive (income) loss attributable to noncontrolling interests | (222) | 46 | 44 |
Comprehensive income (loss) | 857 | (112) | 59 |
Safari Escrow Entities [Member] | |||
Consolidated net income (loss) | (390) | (476) | (30) |
Net impact of interest rate derivative instruments, net of tax | 8 | 9 | 19 |
Foreign currency translation adjustment | (2) | ||
Consolidated comprehensive income (loss) | (384) | (467) | (11) |
Less: Comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | 0 |
Comprehensive income (loss) | (384) | (467) | (11) |
CCO Holdings [Member] | |||
Consolidated net income (loss) | 1,456 | 308 | 18 |
Net impact of interest rate derivative instruments, net of tax | 8 | 9 | 19 |
Foreign currency translation adjustment | (2) | ||
Consolidated comprehensive income (loss) | 1,462 | 317 | 37 |
Less: Comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | 0 |
Comprehensive income (loss) | 1,462 | 317 | 37 |
Charter Operating and Restricted Subsidiaries [Member] | |||
Consolidated net income (loss) | 2,294 | 1,119 | 741 |
Net impact of interest rate derivative instruments, net of tax | 8 | 9 | 19 |
Foreign currency translation adjustment | (2) | ||
Consolidated comprehensive income (loss) | 2,300 | 1,128 | 760 |
Less: Comprehensive (income) loss attributable to noncontrolling interests | (1) | (46) | (44) |
Comprehensive income (loss) | $ 2,299 | 1,082 | 716 |
Unrestricted Subisidiary – CCO Safari [Member] | |||
Consolidated net income (loss) | (50) | (45) | |
Net impact of interest rate derivative instruments, net of tax | 0 | 0 | |
Consolidated comprehensive income (loss) | (50) | (45) | |
Less: Comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | |
Comprehensive income (loss) | $ (50) | $ (45) |
Condensed Consolidating State81
Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
NET CASH FLOWS FROM OPERATING ACTIVITIES | $ 8,041 | $ 2,359 | $ 2,359 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property, plant and equipment | (5,325) | (1,840) | (2,221) |
Change in accrued expenses related to capital expenditures | 603 | 28 | 33 |
Sales (purchases) of cable systems, net | (28,810) | 0 | 11 |
Contribution to subsidiaries | 0 | 0 | 0 |
Distributions from subsidiaries | 0 | 0 | 0 |
Change in restricted cash and cash equivalents | 22,264 | (15,153) | (7,111) |
Other, net | (22) | (67) | (16) |
Net cash flows from investing activities | (11,290) | (17,032) | (9,304) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings of long-term debt | 12,344 | 26,045 | 8,806 |
Repayments of long-term debt | (10,521) | (11,326) | (1,980) |
Borrowings (payments) loans payable - related parties | 0 | 0 | 0 |
Payments for debt issuance costs | (284) | (36) | (6) |
Issuance of equity | 5,000 | 0 | 0 |
Purchase of treasury stock | (1,562) | (38) | (19) |
Proceeds from exercise of stock options and warrants | 86 | 30 | 123 |
Settlement of restricted stock units | (59) | 0 | 0 |
Purchase of noncontrolling interest | (218) | 0 | 0 |
Distributions to noncontrolling interest | (96) | 0 | 0 |
Proceeds from termination of interest rate derivatives | 88 | 0 | 0 |
Contributions from parent | 0 | 0 | 0 |
Distributions to parent | 0 | 0 | 0 |
Other, net | 1 | 0 | 3 |
Net cash flows from financing activities | 4,779 | 14,675 | 6,927 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,530 | 2 | (18) |
CASH AND CASH EQUIVALENTS, beginning of period | 5 | 3 | 21 |
CASH AND CASH EQUIVALENTS, end of period | 1,535 | 5 | 3 |
Eliminations [Member] | |||
NET CASH FLOWS FROM OPERATING ACTIVITIES | 0 | 0 | 0 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property, plant and equipment | 0 | 0 | 0 |
Change in accrued expenses related to capital expenditures | 0 | 0 | 0 |
Sales (purchases) of cable systems, net | 0 | 0 | |
Contribution to subsidiaries | 1,928 | 180 | 877 |
Distributions from subsidiaries | (56,547) | (1,117) | (1,167) |
Change in restricted cash and cash equivalents | 0 | 0 | 0 |
Other, net | 0 | 0 | 0 |
Net cash flows from investing activities | (54,619) | (937) | (290) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings of long-term debt | 0 | 0 | 0 |
Repayments of long-term debt | 0 | 0 | 0 |
Borrowings (payments) loans payable - related parties | 0 | 0 | 0 |
Payments for debt issuance costs | 0 | 0 | 0 |
Issuance of equity | 0 | ||
Purchase of treasury stock | 0 | 0 | 0 |
Proceeds from exercise of stock options and warrants | 0 | 0 | 0 |
Settlement of restricted stock units | 0 | ||
Purchase of noncontrolling interest | 0 | ||
Distributions to noncontrolling interest | 0 | ||
Proceeds from termination of interest rate derivatives | 0 | ||
Contributions from parent | (1,928) | (180) | (877) |
Distributions to parent | 56,547 | 1,117 | 1,167 |
Other, net | 0 | 0 | |
Net cash flows from financing activities | 54,619 | 937 | 290 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 0 | 0 | 0 |
CASH AND CASH EQUIVALENTS, beginning of period | 0 | 0 | 0 |
CASH AND CASH EQUIVALENTS, end of period | 0 | 0 | 0 |
Charter [Member] | |||
NET CASH FLOWS FROM OPERATING ACTIVITIES | (225) | (1) | 0 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property, plant and equipment | 0 | 0 | 0 |
Change in accrued expenses related to capital expenditures | 0 | 0 | 0 |
Sales (purchases) of cable systems, net | (26,781) | 0 | |
Contribution to subsidiaries | (1,013) | (20) | (106) |
Distributions from subsidiaries | 24,552 | 26 | 5 |
Change in restricted cash and cash equivalents | 0 | 0 | 0 |
Other, net | 0 | 0 | 0 |
Net cash flows from investing activities | (3,242) | 6 | (101) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings of long-term debt | 0 | 0 | 0 |
Repayments of long-term debt | 0 | 0 | 0 |
Borrowings (payments) loans payable - related parties | 0 | 0 | 0 |
Payments for debt issuance costs | 0 | 0 | 0 |
Issuance of equity | 5,000 | ||
Purchase of treasury stock | (1,562) | (38) | (19) |
Proceeds from exercise of stock options and warrants | 86 | 30 | 123 |
Settlement of restricted stock units | 0 | ||
Purchase of noncontrolling interest | 0 | ||
Distributions to noncontrolling interest | 0 | ||
Proceeds from termination of interest rate derivatives | 0 | ||
Contributions from parent | 0 | 0 | 0 |
Distributions to parent | 0 | 0 | 0 |
Other, net | 0 | 0 | |
Net cash flows from financing activities | 3,524 | (8) | 104 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 57 | (3) | 3 |
CASH AND CASH EQUIVALENTS, beginning of period | 0 | 3 | 0 |
CASH AND CASH EQUIVALENTS, end of period | 57 | 0 | 3 |
Intermediate Holding Companies [Member] | |||
NET CASH FLOWS FROM OPERATING ACTIVITIES | (36) | (5) | (13) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property, plant and equipment | 0 | 0 | 0 |
Change in accrued expenses related to capital expenditures | 0 | 0 | 0 |
Sales (purchases) of cable systems, net | (2,022) | 0 | |
Contribution to subsidiaries | (478) | (90) | (600) |
Distributions from subsidiaries | 26,899 | 376 | 30 |
Change in restricted cash and cash equivalents | 0 | 0 | 0 |
Other, net | 0 | (55) | (5) |
Net cash flows from investing activities | 24,399 | 231 | (575) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings of long-term debt | 0 | 0 | 0 |
Repayments of long-term debt | 0 | 0 | 0 |
Borrowings (payments) loans payable - related parties | (300) | 0 | 0 |
Payments for debt issuance costs | 0 | 0 | 0 |
Issuance of equity | 0 | ||
Purchase of treasury stock | 0 | 0 | 0 |
Proceeds from exercise of stock options and warrants | 0 | 0 | 0 |
Settlement of restricted stock units | (59) | ||
Purchase of noncontrolling interest | (218) | ||
Distributions to noncontrolling interest | (96) | ||
Proceeds from termination of interest rate derivatives | 0 | ||
Contributions from parent | 1,013 | 95 | 606 |
Distributions to parent | (24,552) | (321) | (30) |
Other, net | 3 | 7 | |
Net cash flows from financing activities | (24,209) | (226) | 583 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 154 | 0 | (5) |
CASH AND CASH EQUIVALENTS, beginning of period | 0 | 0 | 5 |
CASH AND CASH EQUIVALENTS, end of period | 154 | 0 | 0 |
Safari Escrow Entities [Member] | |||
NET CASH FLOWS FROM OPERATING ACTIVITIES | (463) | (192) | (12) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property, plant and equipment | 0 | 0 | 0 |
Change in accrued expenses related to capital expenditures | 0 | 0 | 0 |
Sales (purchases) of cable systems, net | 0 | 0 | |
Contribution to subsidiaries | 0 | 0 | 0 |
Distributions from subsidiaries | 0 | 0 | 0 |
Change in restricted cash and cash equivalents | 22,264 | (18,667) | (3,598) |
Other, net | 0 | 0 | 0 |
Net cash flows from investing activities | 22,264 | (18,667) | (3,598) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings of long-term debt | 0 | 21,790 | 3,500 |
Repayments of long-term debt | 0 | (3,500) | 0 |
Borrowings (payments) loans payable - related parties | 553 | 581 | 112 |
Payments for debt issuance costs | 0 | (12) | (2) |
Issuance of equity | 0 | ||
Purchase of treasury stock | 0 | 0 | 0 |
Proceeds from exercise of stock options and warrants | 0 | 0 | 0 |
Settlement of restricted stock units | 0 | ||
Purchase of noncontrolling interest | 0 | ||
Distributions to noncontrolling interest | 0 | ||
Proceeds from termination of interest rate derivatives | 0 | ||
Contributions from parent | 0 | 0 | 0 |
Distributions to parent | (22,353) | 0 | 0 |
Other, net | (1) | 0 | |
Net cash flows from financing activities | (21,801) | 18,859 | 3,610 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 0 | 0 | 0 |
CASH AND CASH EQUIVALENTS, beginning of period | 0 | 0 | 0 |
CASH AND CASH EQUIVALENTS, end of period | 0 | 0 | 0 |
CCO Holdings [Member] | |||
NET CASH FLOWS FROM OPERATING ACTIVITIES | (711) | (663) | (665) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property, plant and equipment | 0 | 0 | 0 |
Change in accrued expenses related to capital expenditures | 0 | 0 | 0 |
Sales (purchases) of cable systems, net | 0 | 0 | |
Contribution to subsidiaries | (437) | (46) | (100) |
Distributions from subsidiaries | 5,096 | 715 | 1,132 |
Change in restricted cash and cash equivalents | 0 | 0 | 0 |
Other, net | 0 | 0 | 0 |
Net cash flows from investing activities | 4,659 | 669 | 1,032 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings of long-term debt | 3,201 | 2,700 | 0 |
Repayments of long-term debt | (2,937) | (2,598) | (350) |
Borrowings (payments) loans payable - related parties | (71) | (18) | (112) |
Payments for debt issuance costs | (73) | (24) | 0 |
Issuance of equity | 0 | ||
Purchase of treasury stock | 0 | 0 | 0 |
Proceeds from exercise of stock options and warrants | 0 | 0 | 0 |
Settlement of restricted stock units | 0 | ||
Purchase of noncontrolling interest | 0 | ||
Distributions to noncontrolling interest | 0 | ||
Proceeds from termination of interest rate derivatives | 0 | ||
Contributions from parent | 478 | 15 | 100 |
Distributions to parent | (4,546) | (81) | (5) |
Other, net | 0 | 0 | |
Net cash flows from financing activities | (3,948) | (6) | (367) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 0 | 0 | 0 |
CASH AND CASH EQUIVALENTS, beginning of period | 0 | 0 | 0 |
CASH AND CASH EQUIVALENTS, end of period | 0 | 0 | 0 |
Charter Operating and Restricted Subsidiaries [Member] | |||
NET CASH FLOWS FROM OPERATING ACTIVITIES | 9,476 | 3,275 | 3,086 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property, plant and equipment | (5,325) | (1,840) | (2,221) |
Change in accrued expenses related to capital expenditures | 603 | 28 | 33 |
Sales (purchases) of cable systems, net | (7) | 11 | |
Contribution to subsidiaries | 0 | (24) | (71) |
Distributions from subsidiaries | 0 | 0 | 0 |
Change in restricted cash and cash equivalents | 0 | 0 | 0 |
Other, net | (22) | (12) | (11) |
Net cash flows from investing activities | (4,751) | (1,848) | (2,259) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings of long-term debt | 9,143 | 1,555 | 1,823 |
Repayments of long-term debt | (7,584) | (1,745) | (1,630) |
Borrowings (payments) loans payable - related parties | (182) | (563) | 0 |
Payments for debt issuance costs | (211) | 0 | 0 |
Issuance of equity | 0 | ||
Purchase of treasury stock | 0 | 0 | 0 |
Proceeds from exercise of stock options and warrants | 0 | 0 | 0 |
Settlement of restricted stock units | 0 | ||
Purchase of noncontrolling interest | 0 | ||
Distributions to noncontrolling interest | 0 | ||
Proceeds from termination of interest rate derivatives | 88 | ||
Contributions from parent | 437 | 46 | 100 |
Distributions to parent | (5,096) | (715) | (1,132) |
Other, net | (1) | (4) | |
Net cash flows from financing activities | (3,406) | (1,422) | (843) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,319 | 5 | (16) |
CASH AND CASH EQUIVALENTS, beginning of period | 5 | 0 | 16 |
CASH AND CASH EQUIVALENTS, end of period | 1,324 | 5 | 0 |
Unrestricted Subisidiary – CCO Safari [Member] | |||
NET CASH FLOWS FROM OPERATING ACTIVITIES | (55) | (37) | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property, plant and equipment | 0 | 0 | |
Change in accrued expenses related to capital expenditures | 0 | 0 | |
Sales (purchases) of cable systems, net | 0 | ||
Contribution to subsidiaries | 0 | 0 | |
Distributions from subsidiaries | 0 | 0 | |
Change in restricted cash and cash equivalents | 3,514 | (3,513) | |
Other, net | 0 | 0 | |
Net cash flows from investing activities | 3,514 | (3,513) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings of long-term debt | 0 | 3,483 | |
Repayments of long-term debt | (3,483) | 0 | |
Borrowings (payments) loans payable - related parties | 0 | 0 | |
Payments for debt issuance costs | 0 | (4) | |
Purchase of treasury stock | 0 | 0 | |
Proceeds from exercise of stock options and warrants | 0 | 0 | |
Contributions from parent | 24 | 71 | |
Distributions to parent | 0 | 0 | |
Other, net | 0 | ||
Net cash flows from financing activities | (3,459) | 3,550 | |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 0 | 0 | |
CASH AND CASH EQUIVALENTS, beginning of period | $ 0 | 0 | 0 |
CASH AND CASH EQUIVALENTS, end of period | $ 0 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2017 | Dec. 31, 2016 | Feb. 06, 2017 | Dec. 31, 2015 | |
Subsequent Events: | ||||
Principal amount | $ 60,036 | $ 35,902 | ||
Term Loan E [Member] | Charter Operating [Member] | ||||
Subsequent Events: | ||||
Basis spread on variable interest rate (percentage) | 2.25% | |||
Principal amount | $ 1,400 | |||
Term Loan E [Member] | Charter Operating [Member] | Subsequent Event [Member] | ||||
Subsequent Events: | ||||
Basis spread on variable interest rate (percentage) | 2.00% | |||
Term Loan F [Member] | Charter Operating [Member] | ||||
Subsequent Events: | ||||
Basis spread on variable interest rate (percentage) | 2.25% | |||
Principal amount | $ 1,200 | |||
Term Loan F [Member] | Charter Operating [Member] | Subsequent Event [Member] | ||||
Subsequent Events: | ||||
Basis spread on variable interest rate (percentage) | 2.00% | |||
5.125% Senior Notes Due May 1, 2027 [Member] | CCO Holdings [Member] | Subsequent Event [Member] | ||||
Subsequent Events: | ||||
Principal amount | $ 1,000 | |||
Stated interest rate (percentage) | 5.125% | |||
6.625% Senior Notes Due January 31, 2022 [Member] | CCO Holdings [Member] | ||||
Subsequent Events: | ||||
Principal amount | $ 750 | $ 750 | ||
Stated interest rate (percentage) | 6.625% |