Document And Entity Information
Document And Entity Information | 9 Months Ended |
Sep. 30, 2019shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2019 |
Document Transition Report | false |
Entity File Number | 001-33664 |
Entity Registrant Name | Charter Communications, Inc. |
Entity Central Index Key | 0001091667 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 84-1496755 |
Entity Address, Address Line One | 400 Atlantic Street |
Entity Address, City or Town | Stamford |
Entity Address, State or Province | CT |
Entity Address, Postal Zip Code | 06901 |
City Area Code | 203 |
Local Phone Number | 905-7801 |
Title of 12(b) Security | Class A Common Stock $.001 Par Value |
Trading Symbol | CHTR |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Class A Common Stock | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 214,780,119 |
Class B Common Stock | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 508 | $ 551 |
Accounts receivable, less allowance for doubtful accounts of $170 and $129, respectively | 2,284 | 1,733 |
Prepaid expenses and other current assets | 596 | 446 |
Total current assets | 3,388 | 2,730 |
RESTRICTED CASH | 89 | 214 |
INVESTMENT IN CABLE PROPERTIES: | ||
Property, plant and equipment, net of accumulated depreciation of $26,365 and $23,075, respectively | 34,218 | 35,126 |
Customer relationships, net | 7,956 | 9,565 |
Franchises | 67,322 | 67,319 |
Goodwill | 29,554 | 29,554 |
Total investment in cable properties, net | 139,050 | 141,564 |
OPERATING LEASE RIGHT-OF-USE ASSETS | 1,103 | 0 |
OTHER NONCURRENT ASSETS | 1,637 | 1,622 |
Total assets | 145,267 | 146,130 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued liabilities | 8,263 | 8,805 |
Operating lease liabilities | 210 | 0 |
Current portion of long-term debt | 3,509 | 3,290 |
Total current liabilities | 11,982 | 12,095 |
LONG-TERM DEBT | 71,390 | 69,537 |
DEFERRED INCOME TAXES | 17,609 | 17,389 |
LONG-TERM OPERATING LEASE LIABILITIES | 991 | 0 |
OTHER LONG-TERM LIABILITIES | 2,773 | 2,837 |
Preferred stock; $.001 par value; 250 million shares authorized; no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 33,810 | 33,507 |
Retained earnings | 3,734 | 2,780 |
Treasury stock at cost; 12,343,135 and no shares, respectively | (4,568) | 0 |
Accumulated other comprehensive loss | (2) | (2) |
Total Charter shareholders’ equity | 32,974 | 36,285 |
Noncontrolling interests | 7,548 | 7,987 |
Total shareholders’ equity | 40,522 | 44,272 |
Total liabilities and shareholders’ equity | 145,267 | 146,130 |
Class A Common Stock | ||
Common stock | 0 | 0 |
Class B Common Stock | ||
Common stock | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEET (PAR
CONSOLIDATED BALANCE SHEET (PARENTHETICALS) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Allowance for doubtful accounts | $ 170 | $ 129 |
INVESTMENT IN CABLE PROPERTIES: | ||
Property, plant and equipment, accumulated depreciation | $ 26,365 | $ 23,075 |
Preferred stock, par value (dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (shares) | 250,000,000 | 250,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Treasury stock, shares (shares) | 12,343,135 | 0 |
Class A Common Stock | ||
Common stock, par value (dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (shares) | 900,000,000 | 900,000,000 |
Common stock, shares issued (shares) | 227,123,254 | 225,353,807 |
Common stock, shares outstanding (shares) | 214,780,119 | 225,353,807 |
Class B Common Stock | ||
Common stock, par value (dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (shares) | 1,000 | 1,000 |
Common stock, shares issued (shares) | 1 | 1 |
Common stock, shares outstanding (shares) | 1 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||||||
REVENUES | $ 11,450 | $ 10,892 | $ 34,003 | $ 32,403 | ||||
COSTS AND EXPENSES: | ||||||||
Operating costs and expenses (exclusive of items shown separately below) | 7,435 | 7,012 | 21,915 | 20,721 | ||||
Depreciation and amortization | 2,415 | 2,482 | 7,465 | 7,784 | ||||
Other operating expenses, net | 14 | 18 | 71 | 116 | ||||
Total costs and expenses | 9,864 | 9,512 | 29,451 | 28,621 | ||||
Income from operations | 1,586 | 1,380 | 4,552 | 3,782 | ||||
OTHER INCOME (EXPENSES): | ||||||||
Interest expense, net | (963) | (901) | (2,833) | (2,630) | ||||
Gain (loss) on financial instruments, net | (34) | 12 | (116) | 0 | ||||
Other pension benefits, net | 9 | 207 | 27 | 247 | ||||
Other expense, net | (5) | (5) | (131) | (75) | ||||
Total other income (expense) | (993) | (687) | (3,053) | (2,458) | ||||
Income before income taxes | 593 | 693 | 1,499 | 1,324 | ||||
Income tax expense | (126) | (109) | (329) | (178) | ||||
Consolidated net income | 467 | $ 386 | $ 317 | 584 | $ 339 | $ 223 | 1,170 | 1,146 |
Less: Net income attributable to noncontrolling interests | (80) | (91) | (216) | (212) | ||||
Net income attributable to Charter shareholders | $ 387 | $ 493 | $ 954 | $ 934 | ||||
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CHARTER SHAREHOLDERS: | ||||||||
Basic (dollars per share) | $ 1.77 | $ 2.14 | $ 4.30 | $ 3.99 | ||||
Diluted (dollars per share) | $ 1.74 | $ 2.11 | $ 4.23 | $ 3.93 | ||||
Weighted average common shares outstanding, basic (shares) | 218,499,213 | 230,554,633 | 221,818,079 | 234,159,830 | ||||
Weighted average common shares outstanding, diluted (shares) | 222,355,867 | 233,607,414 | 225,337,984 | 237,343,924 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common StockClass A Common Stock | Common StockClass B Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Charter Shareholders’ Equity | Noncontrolling Interests |
Balance at Dec. 31, 2017 | $ 47,531 | $ 0 | $ 0 | $ 35,253 | $ 3,832 | $ 0 | $ (1) | $ 39,084 | $ 8,447 |
Rollforward of Consolidated Shareholders' Equity: | |||||||||
Consolidated net income | 223 | 0 | 0 | 0 | 168 | 0 | 0 | 168 | 55 |
Stock compensation expense | 72 | 0 | 0 | 72 | 0 | 0 | 0 | 72 | 0 |
Accelerated vesting of equity awards | 5 | 0 | 0 | 5 | 0 | 0 | 0 | 5 | 0 |
Exercise of stock options | 36 | 0 | 0 | 36 | 0 | 0 | 0 | 36 | 0 |
Cumulative effect of accounting change | 38 | 0 | 0 | 0 | 34 | 0 | 0 | 34 | 4 |
Purchases of treasury stock | (617) | 0 | 0 | 0 | 0 | (617) | 0 | (617) | 0 |
Purchase of noncontrolling interest, net of tax | (118) | 0 | 0 | (28) | 0 | 0 | 0 | (28) | (90) |
Change in noncontrolling interest ownership, net of tax | (6) | 0 | 0 | 14 | 0 | 0 | 0 | 14 | (20) |
Distributions to noncontrolling interest | (39) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (39) |
Balance at Mar. 31, 2018 | 47,125 | 0 | 0 | 35,352 | 4,034 | (617) | (1) | 38,768 | 8,357 |
Balance at Dec. 31, 2017 | 47,531 | 0 | 0 | 35,253 | 3,832 | 0 | (1) | 39,084 | 8,447 |
Rollforward of Consolidated Shareholders' Equity: | |||||||||
Consolidated net income | 1,146 | ||||||||
Purchases of treasury stock | (3,214) | ||||||||
Change in noncontrolling interest ownership, net of tax | 39 | (53) | |||||||
Balance at Sep. 30, 2018 | 45,228 | 0 | 0 | 35,493 | 4,828 | (3,214) | (2) | 37,105 | 8,123 |
Balance at Mar. 31, 2018 | 47,125 | 0 | 0 | 35,352 | 4,034 | (617) | (1) | 38,768 | 8,357 |
Rollforward of Consolidated Shareholders' Equity: | |||||||||
Consolidated net income | 339 | 0 | 0 | 0 | 273 | 0 | 0 | 273 | 66 |
Stock compensation expense | 70 | 0 | 0 | 70 | 0 | 0 | 0 | 70 | 0 |
Exercise of stock options | 7 | 0 | 0 | 7 | 0 | 0 | 0 | 7 | 0 |
Changes in accumulated other comprehensive loss | (1) | 0 | 0 | 0 | 0 | 0 | (1) | (1) | 0 |
Purchases of treasury stock | (1,664) | 0 | 0 | 0 | 0 | (1,664) | 0 | (1,664) | 0 |
Purchase of noncontrolling interest, net of tax | (192) | 0 | 0 | (28) | 0 | 0 | 0 | (28) | (164) |
Change in noncontrolling interest ownership, net of tax | (5) | 0 | 0 | 18 | 0 | 0 | 0 | 18 | (23) |
Distributions to noncontrolling interest | (37) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (37) |
Balance at Jun. 30, 2018 | 45,642 | 0 | 0 | 35,419 | 4,307 | (2,281) | (2) | 37,443 | 8,199 |
Rollforward of Consolidated Shareholders' Equity: | |||||||||
Consolidated net income | 584 | 0 | 0 | 0 | 493 | 0 | 0 | 493 | 91 |
Stock compensation expense | 71 | 0 | 0 | 71 | 0 | 0 | 0 | 71 | 0 |
Exercise of stock options | 13 | 0 | 0 | 13 | 0 | 0 | 0 | 13 | 0 |
Cumulative effect of accounting change | 31 | 0 | 0 | 0 | 28 | 0 | 0 | 28 | 3 |
Purchases of treasury stock | (933) | 0 | 0 | 0 | 0 | (933) | 0 | (933) | 0 |
Purchase of noncontrolling interest, net of tax | (139) | 0 | 0 | (17) | 0 | 0 | 0 | (17) | (122) |
Change in noncontrolling interest ownership, net of tax | (3) | 0 | 0 | 7 | 0 | 0 | 0 | 7 | (10) |
Distributions to noncontrolling interest | (38) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (38) |
Balance at Sep. 30, 2018 | 45,228 | 0 | 0 | 35,493 | 4,828 | (3,214) | (2) | 37,105 | 8,123 |
Balance at Dec. 31, 2018 | 44,272 | 0 | 0 | 33,507 | 2,780 | 0 | (2) | 36,285 | 7,987 |
Rollforward of Consolidated Shareholders' Equity: | |||||||||
Consolidated net income | 317 | 0 | 0 | 0 | 253 | 0 | 0 | 253 | 64 |
Stock compensation expense | 85 | 0 | 0 | 85 | 0 | 0 | 0 | 85 | 0 |
Exercise of stock options | 44 | 0 | 0 | 44 | 0 | 0 | 0 | 44 | 0 |
Purchases of treasury stock | (940) | 0 | 0 | 0 | 0 | (940) | 0 | (940) | 0 |
Purchase of noncontrolling interest, net of tax | (89) | 0 | 0 | (15) | 0 | 0 | 0 | (15) | (74) |
Change in noncontrolling interest ownership, net of tax | (7) | 0 | 0 | 22 | 0 | 0 | 0 | 22 | (29) |
Distributions to noncontrolling interest | (39) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (39) |
Balance at Mar. 31, 2019 | 43,643 | 0 | 0 | 33,643 | 3,033 | (940) | (2) | 35,734 | 7,909 |
Balance at Dec. 31, 2018 | 44,272 | 0 | 0 | 33,507 | 2,780 | 0 | (2) | 36,285 | 7,987 |
Rollforward of Consolidated Shareholders' Equity: | |||||||||
Consolidated net income | 1,170 | ||||||||
Purchases of treasury stock | (4,568) | ||||||||
Change in noncontrolling interest ownership, net of tax | 104 | (139) | |||||||
Balance at Sep. 30, 2019 | 40,522 | 0 | 0 | 33,810 | 3,734 | (4,568) | (2) | 32,974 | 7,548 |
Balance at Mar. 31, 2019 | 43,643 | 0 | 0 | 33,643 | 3,033 | (940) | (2) | 35,734 | 7,909 |
Rollforward of Consolidated Shareholders' Equity: | |||||||||
Consolidated net income | 386 | 0 | 0 | 0 | 314 | 0 | 0 | 314 | 72 |
Stock compensation expense | 82 | 0 | 0 | 82 | 0 | 0 | 0 | 82 | 0 |
Exercise of stock options | 37 | 0 | 0 | 37 | 0 | 0 | 0 | 37 | 0 |
Purchases of treasury stock | (861) | 0 | 0 | 0 | 0 | (861) | 0 | (861) | 0 |
Purchase of noncontrolling interest, net of tax | (148) | 0 | 0 | (37) | 0 | 0 | 0 | (37) | (111) |
Change in noncontrolling interest ownership, net of tax | (6) | 0 | 0 | 17 | 0 | 0 | 0 | 17 | (23) |
Distributions to noncontrolling interest | (39) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (39) |
Balance at Jun. 30, 2019 | 43,094 | 0 | 0 | 33,742 | 3,347 | (1,801) | (2) | 35,286 | 7,808 |
Rollforward of Consolidated Shareholders' Equity: | |||||||||
Consolidated net income | 467 | 0 | 0 | 0 | 387 | 0 | 0 | 387 | 80 |
Stock compensation expense | 71 | 0 | 0 | 71 | 0 | 0 | 0 | 71 | 0 |
Exercise of stock options | 25 | 0 | 0 | 25 | 0 | 0 | 0 | 25 | 0 |
Purchases of treasury stock | (2,767) | 0 | 0 | 0 | 0 | (2,767) | 0 | (2,767) | 0 |
Purchase of noncontrolling interest, net of tax | (308) | 0 | 0 | (93) | 0 | 0 | 0 | (93) | (215) |
Change in noncontrolling interest ownership, net of tax | (22) | 0 | 0 | 65 | 0 | 0 | 0 | 65 | (87) |
Distributions to noncontrolling interest | (38) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (38) |
Balance at Sep. 30, 2019 | $ 40,522 | $ 0 | $ 0 | $ 33,810 | $ 3,734 | $ (4,568) | $ (2) | $ 32,974 | $ 7,548 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Consolidated net income | $ 1,170 | $ 1,146 |
Adjustments to reconcile consolidated net income to net cash flows from operating activities: | ||
Depreciation and amortization | 7,465 | 7,784 |
Stock compensation expense | 238 | 213 |
Accelerated vesting of equity awards | 0 | 5 |
Noncash interest income, net | (89) | (242) |
Other pension benefits, net | (27) | (247) |
Loss on financial instruments, net | 116 | 0 |
Deferred income taxes | 233 | 137 |
Other, net | 148 | 81 |
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: | ||
Accounts receivable | (564) | (101) |
Prepaid expenses and other assets | (225) | (97) |
Accounts payable, accrued liabilities and other | (75) | (80) |
Net cash flows from operating activities | 8,390 | 8,599 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (4,913) | (6,692) |
Change in accrued expenses related to capital expenditures | (449) | (620) |
Real estate investments through variable interest entities | (125) | (15) |
Other, net | 10 | (103) |
Net cash flows from investing activities | (5,477) | (7,430) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 13,157 | 11,552 |
Repayments of long-term debt | (10,886) | (8,964) |
Payments for debt issuance costs | (48) | (29) |
Purchase of treasury stock | (4,568) | (3,214) |
Proceeds from exercise of stock options | 106 | 56 |
Distributions to noncontrolling interest | (593) | (473) |
Distributions to noncontrolling interest | (116) | (114) |
Borrowings for real estate investments through variable interest entities | 0 | 170 |
Distributions to variable interest entities noncontrolling interest | 0 | (107) |
Other, net | (133) | (7) |
Net cash flows from financing activities | (3,081) | (1,130) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (168) | 39 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 765 | 621 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | 597 | 660 |
CASH PAID FOR INTEREST | 3,065 | 2,920 |
CASH PAID FOR TAXES | $ 55 | $ 27 |
Organization and Basis of Prese
Organization and Basis of Presentation (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
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. The Company also offers mobile service to residential customers and recently launched mobile service to a select number of small and medium 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 community channels. 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. The Company’s operations are managed and reported to its Chairman and Chief Executive Officer (“CEO”), the Company’s chief operating decision maker, on a consolidated basis. The CEO assesses performance and allocates resources based on the consolidated results of operations. Under this organizational and reporting structure, the Company has one reportable segment, cable services. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, certain information and footnote disclosures typically included in Charter’s Annual Report on Form 10-K have been condensed or omitted for this quarterly report. The accompanying consolidated financial statements are unaudited and are subject to review by regulatory authorities. However, in the opinion of management, such financial statements include all adjustments, which consist of only normal recurring adjustments, necessary for a fair presentation of the results for the periods presented. Interim results are not necessarily indicative of results for a full year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Areas involving significant judgments and estimates include capitalization of labor and overhead costs; depreciation and amortization costs; impairments of property, plant and equipment, intangibles and goodwill; pension benefits; income taxes; contingencies and programming expense. Actual results could differ from those estimates. |
Franchises, Goodwill and Other
Franchises, Goodwill and Other Intangible Assets (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Franchises, Goodwill and Other Intangible Assets | Franchises, Goodwill and Other Intangible Assets Indefinite-lived and finite-lived intangible assets consist of the following as of September 30, 2019 and December 31, 2018 : September 30, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Indefinite-lived intangible assets: Franchises $ 67,322 $ — $ 67,322 $ 67,319 $ — $ 67,319 Goodwill 29,554 — 29,554 29,554 — 29,554 Trademarks 159 — 159 159 — 159 $ 97,035 $ — $ 97,035 $ 97,032 $ — $ 97,032 Finite-lived intangible assets: Customer relationships $ 18,230 $ (10,274 ) $ 7,956 $ 18,229 $ (8,664 ) $ 9,565 Other intangible assets 405 (111 ) 294 409 (92 ) 317 $ 18,635 $ (10,385 ) $ 8,250 $ 18,638 $ (8,756 ) $ 9,882 Amortization expense related to customer relationships and other intangible assets for the three and nine months ended September 30, 2019 was $516 million and $1.6 billion , respectively, and $583 million and $1.8 billion for the three and nine months ended September 30, 2018 , respectively. The Company expects amortization expense on its finite-lived intangible assets will be as follows: Three months ended December 31, 2019 $ 514 2020 1,875 2021 1,599 2022 1,329 2023 1,072 Thereafter 1,861 $ 8,250 |
Investments (Notes)
Investments (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Investments [Abstract] | |
Investments | Investments Real Estate Investments through Variable Interest Entities In July 2018, the Company's build-to-suit lease arrangement with a single-asset special purpose entity ("SPE") to build a new Charter headquarters in Stamford, Connecticut obtained all approvals and was made effective. The SPE obtained a first-lien mortgage note to finance the construction with fixed monthly payments through July 15, 2035 with a 5.612% coupon interest rate. All payments of the mortgage note are guaranteed by Charter. The initial term of the lease is 15 years commencing August 1, 2020, with no termination options. At the end of the lease term there is a mirrored put option for the SPE to sell the property to Charter and call option for Charter to purchase the property for a fixed purchase price. As the Company has determined the SPE is a variable interest entity ("VIE") of which it became the primary beneficiary upon the effectiveness of the arrangement, the Company has consolidated the assets and liabilities of the SPE in its consolidated balance sheet as of September 30, 2019 and December 31, 2018 as follows. September 30, 2019 December 31, 2018 Assets Current assets $ 2 $ 2 Restricted cash $ 89 $ 214 Property, plant and equipment $ 266 $ 130 Liabilities Current liabilities $ 7 $ — Other long-term liabilities $ 350 $ 346 Property, plant and equipment includes land, a parking garage and building construction costs, including the capitalization of qualifying interest. As of September 30, 2019 and December 31, 2018 , other long-term liabilities include $341 million and $342 million , respectively, in VIE's mortgage note liability and $9 million and $4 million , respectively, in liability-classified noncontrolling interest recorded at amortized cost with accretion towards settlement of the put/call option in the lease. The consolidated statement of cash flows for the nine months ended September 30, 2019 includes a decrease to restricted cash of $125 million primarily related to building construction costs. The consolidated statement of cash flows for the nine months ended September 30, 2018 includes an increase to restricted cash of $48 million as a result of activity in the VIE including borrowings of $170 million by the VIE on the mortgage note liability offset by distributions by the VIE to the noncontrolling interest of $107 million for the contributed land and parking garage and $15 million incurred by the VIE for building construction costs. Equity Investments The Company recorded impairments on equity investments of approximately $121 million and $58 million during the nine months ended September 30, 2019 and 2018, respectively, which was recorded in other expense, net in the consolidated statements of operations. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 and December 31, 2018 : September 30, 2019 December 31, 2018 Accounts payable – trade $ 663 $ 758 Deferred revenue 526 494 Accrued liabilities: Programming costs 2,064 2,044 Labor 1,005 1,052 Capital expenditures 973 1,472 Interest 943 1,045 Taxes and regulatory fees 575 526 Property and casualty 464 424 Other 1,050 990 $ 8,263 $ 8,805 |
Leases (Notes)
Leases (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Finance Leases | Leases The primary leased asset classes of the Company include real estate, dark fiber, colocation facilities and other equipment. The lease agreements include both lease and non-lease components, which the Company accounts for separately depending on the election made for each leased asset class. For real estate and dark fiber leased asset classes, the Company accounts for lease and non-lease components as a single lease component and includes all fixed payments in the measurement of lease liabilities and lease assets. For colocation facilities leased asset class, the Company accounts for lease and non-lease components separately including only the fixed lease payment component in the measurement of lease liabilities and lease assets. In addition to fixed lease payments, certain of the Company’s lease agreements include variable lease payments which are tied to an index or rate such as the change in the Consumer Price Index. These variable payments are not included in the measurement of the lease liabilities and lease assets. Lease assets and lease liabilities are initially recognized based on the present value of the future lease payments over the expected lease term. As for most leases the implicit rate is not readily determinable, the Company uses a discount rate in determining the present value of future payments based on the yield-to-maturity of the Company’s secured publicly traded USD denominated debt instruments interpolating the duration of the debt to the term of the executed lease. The Company’s leases have base rent periods and some have optional renewal periods. Leases with base rent periods of less than 12 months are not recorded on the balance sheet. For purposes of measurement of lease liabilities, the expected lease terms may include renewal options when it is reasonably certain that the Company will exercise such options. Based on conditions of the Company's existing leases and its overall business strategies, the majority of the Company's renewal options are not reasonably certain in determining the expected lease term. The Company will periodically reassess expected lease terms (and purchase options, if applicable) based on significant triggering events or compelling economic reasons to exercise such options. The Company’s primary lease income represents sublease income on certain real estate leases. Sublease income is included in other revenue and presented gross from rent expense. For customer premise equipment ("CPE") where such CPE would qualify as a lease, the Company applies the practical expedient to combine the operating lease with the subscription service revenue as a single performance obligation in accordance with revenue recognition accounting guidance as the subscription service is the predominant component. The components of lease related expenses, net are as follows. Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease expense (a) $ 105 $ 321 Finance lease expense: Amortization of right-of-use assets 3 10 Interest on lease liabilities 1 4 Total finance lease expense 4 14 Sublease income (6 ) (20 ) Total lease related expenses, net $ 103 $ 315 (a) Includes short-term leases and variable leases costs of $31 million and $96 million for the three and nine months ended September 30, 2019 , respectively. Supplemental cash flow information related to leases is as follows. Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 219 Operating cash flows from finance leases $ 4 Financing cash flows from finance leases $ 5 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 209 Finance leases $ 27 Supplemental balance sheet information related to leases is as follows. September 30, 2019 Operating leases: Operating lease right-of-use assets $ 1,103 Current operating lease liabilities $ 210 Long-term operating lease liabilities 991 Total operating lease liabilities $ 1,201 Finance leases: Finance lease right-of-use assets (included within property, plant and equipment, net) $ 165 Current finance lease liabilities (included within accounts payable and accrued liabilities) $ 7 Long-term finance lease liabilities (included within other long-term liabilities) 51 Total finance lease liabilities $ 58 Weighted average remaining lease term Operating leases 6.8 years Finance leases 16.3 years Weighted average discount rate Operating leases 4.5 % Finance leases 5.7 % Maturities of lease liabilities are as follows. Operating leases Finance leases Three months ended December 31, 2019 $ 71 $ 1 2020 280 6 2021 247 6 2022 210 6 2023 182 5 Thereafter 526 59 Undiscounted lease cash flow commitments 1,516 83 Reconciling impact from discounting (315 ) (25 ) Lease liabilities on consolidated balance sheet as of September 30, 2019 $ 1,201 $ 58 The following table presents the Company’s unadjusted lease commitments as of December 31, 2018 as a required disclosure for companies adopting the lease standard prospectively without revising comparative period information. Operating leases Capital leases 2019 $ 286 $ 10 2020 254 9 2021 207 9 2022 170 9 2023 143 10 Thereafter 440 64 $ 1,500 $ 111 |
Operating Leases | The primary leased asset classes of the Company include real estate, dark fiber, colocation facilities and other equipment. The lease agreements include both lease and non-lease components, which the Company accounts for separately depending on the election made for each leased asset class. For real estate and dark fiber leased asset classes, the Company accounts for lease and non-lease components as a single lease component and includes all fixed payments in the measurement of lease liabilities and lease assets. For colocation facilities leased asset class, the Company accounts for lease and non-lease components separately including only the fixed lease payment component in the measurement of lease liabilities and lease assets. In addition to fixed lease payments, certain of the Company’s lease agreements include variable lease payments which are tied to an index or rate such as the change in the Consumer Price Index. These variable payments are not included in the measurement of the lease liabilities and lease assets. Lease assets and lease liabilities are initially recognized based on the present value of the future lease payments over the expected lease term. As for most leases the implicit rate is not readily determinable, the Company uses a discount rate in determining the present value of future payments based on the yield-to-maturity of the Company’s secured publicly traded USD denominated debt instruments interpolating the duration of the debt to the term of the executed lease. The Company’s leases have base rent periods and some have optional renewal periods. Leases with base rent periods of less than 12 months are not recorded on the balance sheet. For purposes of measurement of lease liabilities, the expected lease terms may include renewal options when it is reasonably certain that the Company will exercise such options. Based on conditions of the Company's existing leases and its overall business strategies, the majority of the Company's renewal options are not reasonably certain in determining the expected lease term. The Company will periodically reassess expected lease terms (and purchase options, if applicable) based on significant triggering events or compelling economic reasons to exercise such options. The Company’s primary lease income represents sublease income on certain real estate leases. Sublease income is included in other revenue and presented gross from rent expense. For customer premise equipment ("CPE") where such CPE would qualify as a lease, the Company applies the practical expedient to combine the operating lease with the subscription service revenue as a single performance obligation in accordance with revenue recognition accounting guidance as the subscription service is the predominant component. The components of lease related expenses, net are as follows. Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease expense (a) $ 105 $ 321 Finance lease expense: Amortization of right-of-use assets 3 10 Interest on lease liabilities 1 4 Total finance lease expense 4 14 Sublease income (6 ) (20 ) Total lease related expenses, net $ 103 $ 315 (a) Includes short-term leases and variable leases costs of $31 million and $96 million for the three and nine months ended September 30, 2019 , respectively. Supplemental cash flow information related to leases is as follows. Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 219 Operating cash flows from finance leases $ 4 Financing cash flows from finance leases $ 5 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 209 Finance leases $ 27 Supplemental balance sheet information related to leases is as follows. September 30, 2019 Operating leases: Operating lease right-of-use assets $ 1,103 Current operating lease liabilities $ 210 Long-term operating lease liabilities 991 Total operating lease liabilities $ 1,201 Finance leases: Finance lease right-of-use assets (included within property, plant and equipment, net) $ 165 Current finance lease liabilities (included within accounts payable and accrued liabilities) $ 7 Long-term finance lease liabilities (included within other long-term liabilities) 51 Total finance lease liabilities $ 58 Weighted average remaining lease term Operating leases 6.8 years Finance leases 16.3 years Weighted average discount rate Operating leases 4.5 % Finance leases 5.7 % Maturities of lease liabilities are as follows. Operating leases Finance leases Three months ended December 31, 2019 $ 71 $ 1 2020 280 6 2021 247 6 2022 210 6 2023 182 5 Thereafter 526 59 Undiscounted lease cash flow commitments 1,516 83 Reconciling impact from discounting (315 ) (25 ) Lease liabilities on consolidated balance sheet as of September 30, 2019 $ 1,201 $ 58 The following table presents the Company’s unadjusted lease commitments as of December 31, 2018 as a required disclosure for companies adopting the lease standard prospectively without revising comparative period information. Operating leases Capital leases 2019 $ 286 $ 10 2020 254 9 2021 207 9 2022 170 9 2023 143 10 Thereafter 440 64 $ 1,500 $ 111 |
Long-Term Debt (Notes)
Long-Term Debt (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following as of September 30, 2019 and December 31, 2018 : September 30, 2019 December 31, 2018 Principal Amount Accreted Value Principal Amount Accreted Value CCO Holdings, LLC: 5.250% senior notes due March 15, 2021 $ 500 $ 499 $ 500 $ 498 5.250% senior notes due September 30, 2022 1,250 1,240 1,250 1,238 5.125% senior notes due February 15, 2023 1,000 995 1,000 994 4.000% senior notes due March 1, 2023 500 497 500 496 5.125% senior notes due May 1, 2023 1,150 1,145 1,150 1,144 5.750% senior notes due September 1, 2023 500 497 500 497 5.750% senior notes due January 15, 2024 1,000 994 1,000 993 5.875% senior notes due April 1, 2024 1,700 1,690 1,700 1,688 5.375% senior notes due May 1, 2025 750 746 750 745 5.750% senior notes due February 15, 2026 2,500 2,470 2,500 2,467 5.500% senior notes due May 1, 2026 1,500 1,491 1,500 1,490 5.875% senior notes due May 1, 2027 800 795 800 795 5.125% senior notes due May 1, 2027 3,250 3,221 3,250 3,219 5.000% senior notes due February 1, 2028 2,500 2,468 2,500 2,466 5.375% senior notes due June 1, 2029 1,500 1,501 — — Charter Communications Operating, LLC: 3.579% senior notes due July 23, 2020 2,000 1,996 2,000 1,992 4.464% senior notes due July 23, 2022 3,000 2,985 3,000 2,982 Senior floating rate notes due February 1, 2024 900 902 900 903 4.500% senior notes due February 1, 2024 1,100 1,092 1,100 1,091 4.908% senior notes due July 23, 2025 4,500 4,470 4,500 4,466 3.750% senior notes due February 15, 2028 1,000 987 1,000 986 4.200% senior notes due March 15, 2028 1,250 1,240 1,250 1,240 5.050% senior notes due March 30, 2029 1,250 1,241 — — 6.384% senior notes due October 23, 2035 2,000 1,982 2,000 1,982 5.375% senior notes due April 1, 2038 800 786 800 785 6.484% senior notes due October 23, 2045 3,500 3,467 3,500 3,467 5.375% senior notes due May 1, 2047 2,500 2,506 2,500 2,506 5.750% senior notes due April 1, 2048 2,450 2,391 1,700 1,683 5.125% senior notes due July 1, 2049 1,250 1,240 — — 6.834% senior notes due October 23, 2055 500 495 500 495 Credit facilities 10,834 10,759 10,038 9,959 Time Warner Cable, LLC: 8.750% senior notes due February 14, 2019 — — 1,250 1,260 8.250% senior notes due April 1, 2019 — — 2,000 2,030 5.000% senior notes due February 1, 2020 1,500 1,513 1,500 1,541 4.125% senior notes due February 15, 2021 700 714 700 721 4.000% senior notes due September 1, 2021 1,000 1,024 1,000 1,033 5.750% sterling senior notes due June 2, 2031 (a) 769 823 796 855 6.550% senior debentures due May 1, 2037 1,500 1,676 1,500 1,680 7.300% senior debentures due July 1, 2038 1,500 1,774 1,500 1,780 6.750% senior debentures due June 15, 2039 1,500 1,714 1,500 1,719 5.875% senior debentures due November 15, 2040 1,200 1,255 1,200 1,256 5.500% senior debentures due September 1, 2041 1,250 1,258 1,250 1,258 5.250% sterling senior notes due July 15, 2042 (b) 799 771 827 798 4.500% senior debentures due September 15, 2042 1,250 1,142 1,250 1,140 Time Warner Cable Enterprises LLC: 8.375% senior debentures due March 15, 2023 1,000 1,159 1,000 1,191 8.375% senior debentures due July 15, 2033 1,000 1,288 1,000 1,298 Total debt 74,202 74,899 71,961 72,827 Less current portion: 8.750% senior notes due February 14, 2019 — — (1,250 ) (1,260 ) 8.250% senior notes due April 1, 2019 — — (2,000 ) (2,030 ) 5.000% senior notes due February 1, 2020 (1,500 ) (1,513 ) — — 3.579% senior notes due July 23, 2020 (2,000 ) (1,996 ) — — Long-term debt $ 70,702 $ 71,390 $ 68,711 $ 69,537 (a) Principal amount includes £625 million remeasured at $769 million and $796 million as of September 30, 2019 and December 31, 2018 , respectively, using the exchange rate at the respective dates. (b) Principal amount includes £650 million remeasured at $799 million and $827 million as of September 30, 2019 and December 31, 2018 , respectively, using the exchange rate at the respective dates. The accreted values presented in the table above represent the principal amount of the debt less the original issue discount at the time of sale, deferred financing costs, and, in regards to Time Warner Cable, LLC and Time Warner Cable Enterprises LLC debt assumed, fair value premium adjustments as a result of applying acquisition accounting plus the accretion of those amounts to the balance sheet date. However, the amount that is currently payable if the debt becomes immediately due is equal to the principal amount of the debt. In regards to the fixed-rate British pound sterling denominated notes (the “Sterling Notes”), the principal amount of the debt and any premium or discount is remeasured into U.S. dollars as of each balance sheet date. See Note 9. The Company has availability under the Charter Operating credit facilities of approximately $4.3 billion as of September 30, 2019 . In July 2019, Charter Operating and Charter Communications Operating Capital Corp. jointly issued $1.25 billion aggregate principal amount of 5.125% senior notes due 2049 at a price of 99.880% of the aggregate principal amount. The net proceeds will be used to pay related fees and expenses and for general corporate purposes, including to fund potential buybacks of Charter Class A common stock and Charter Holdings common units as well as repaying certain indebtedness, which may include Time Warner Cable, LLC's 5.000% senior notes due 2020. In October 2019, Charter Operating and Charter Communications Operating Capital Corp. jointly issued $1.5 billion aggregate principal amount of 4.800% senior unsecured notes due 2050 at a price of 99.436% of the aggregate principal amount. The net proceeds will be used to pay related fees and expenses and for general corporate purposes, including to fund potential buybacks of Charter Class A common stock and Charter Holdings common units as well as repaying certain indebtedness. The Charter Operating notes are guaranteed by CCO Holdings, LLC (“CCO Holdings”) and substantially all of the operating subsidiaries of Charter Operating. 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 indentures governing the Charter Operating notes. The Charter Operating notes contain customary representations and warranties and affirmative covenants with limited negative covenants. The Charter Operating indentures also contains customary events of default. In October 2019, Charter Operating entered into an amendment to its Credit Agreement repricing $4.5 billion of its revolving loan and $4.0 billion of term loan A to LIBOR plus 1.25% and its existing term loan B to LIBOR plus 1.75% . In addition, $4.5 billion of the revolving loan and $4.0 billion of term loan A maturities were extended to 2025 and $3.8 billion of term loan B maturities were extended to 2027. In May 2019, CCO Holdings and CCO Holdings Capital Corp. jointly issued $750 million aggregate principal amount of 5.375% senior unsecured notes due 2029 at par and in July 2019, an additional $750 million of the same series of notes were issued at a price of 102.000% of the aggregate principal amount. The net proceeds were used to pay related fees and expenses and for general corporate purposes, including funding buybacks of Charter Class A common stock and Charter Holdings common units as well as repaying certain indebtedness. On October 1, 2019, CCO Holdings and CCO Holdings Capital Corp. jointly issued $1.35 billion aggregate principal amount of 4.750% senior unsecured notes due 2030 at par and on October 24, 2019, an additional $500 million of the same series of notes were issued at a price of 101.250% of the aggregate principal amount. The net proceeds from the October 1, 2019 issuance were used to finance a tender offer and call redemption of $500 million aggregate principal amount of CCO Holdings' 5.250% senior unsecured notes due 2021 and $850 million aggregate principal amount of CCO Holdings' 5.750% senior unsecured notes due 2024, as well as to pay related fees and expenses and for general corporate purposes. The net proceeds from the October 24, 2019 issuance will be used to pay related fees and expenses and for general corporate purposes, including to fund potential buybacks of Charter Class A common stock and Charter Holdings common units as well as repaying certain indebtedness. 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 notes at any time at a premium. Beginning in 2027, the optional redemption price declines to 100% of the principal amount, plus accrued and unpaid interest, if any. In addition, at any time prior to varying dates in 2022, CCO Holdings may redeem up to 40% 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 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. |
Common Stock (Notes)
Common Stock (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Common Stock [Abstract] | |
Common Stock | Common Stock The following represents the Company's purchase of Charter Class A common stock and the effect on the consolidated statements of cash flows during the three and nine months ended September 30, 2019 and 2018 . Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Shares $ Shares $ Shares $ Shares $ Share buybacks 6,894,762 $ 2,748 3,046,346 $ 929 11,757,758 $ 4,455 10,349,639 $ 3,142 Income tax withholding 46,691 19 12,703 4 324,731 113 209,394 72 Exercise cost 75,476 8,785 260,646 15,200 7,016,929 $ 2,767 3,067,834 $ 933 12,343,135 $ 4,568 10,574,233 $ 3,214 As of September 30, 2019 , Charter had remaining board authority to purchase an additional $1.4 billion of Charter’s Class A common stock and/or Charter Holdings common units. The Company also withholds shares of its Class A common stock in payment of income tax withholding owed by employees upon vesting of equity awards as well as exercise costs owed by employees upon exercise of stock options. |
Noncontrolling Interests (Notes
Noncontrolling Interests (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
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 consist primarily of Advance/Newhouse Partnership's (“A/N”) equity interests in Charter Holdings, which is comprised of a common ownership interest and a convertible preferred ownership interest. Net income of Charter Holdings attributable to A/N’s common noncontrolling interest for financial reporting purposes is based on the effective common ownership interest of approximately 8% , and was $43 million and $103 million for the three and nine months ended September 30, 2019 , respectively, and $54 million and $99 million for the three and nine months ended September 30, 2018 , respectively. Net income of Charter Holdings attributable to A/N's preferred noncontrolling interest for financial reporting purposes is based on the preferred dividend which was $37 million and $112 million for each of the three and nine months ended September 30, 2019 and 2018 , respectively. The following table represents Charter Holdings' purchase of Charter Holdings common units from A/N pursuant to the Letter Agreement (see Note 18) and the effect on total shareholders' equity during the three and nine months ended September 30, 2019 and 2018 . Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Number of units purchased 864,826 495,447 1,615,561 1,546,475 Average price per unit $ 391.62 $ 292.81 $ 366.76 $ 306.11 Amount of units purchased $ 339 $ 145 $ 593 $ 473 Decrease in noncontrolling interest based on carrying value $ (215 ) $ (122 ) $ (400 ) $ (376 ) Decrease in additional paid-in-capital, net of tax $ (93 ) $ (17 ) $ (145 ) $ (73 ) Total shareholders' equity was also adjusted during the three and nine months ended September 30, 2019 and 2018 due to the changes in Charter Holdings' ownership as follows. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Decrease in noncontrolling interest $ (87 ) $ (10 ) $ (139 ) $ (53 ) Increase in additional paid-in-capital, net of tax $ 65 $ 7 $ 104 $ 39 |
Accounting for Derivative Instr
Accounting for Derivative Instruments and Hedging Activities (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting for Derivative Instruments and Hedging Activities [Abstract] | |
Accounting for Derivative Instruments and Hedging Activities | Accounting for Derivative Instruments and Hedging Activities The Company uses derivative instruments to manage foreign exchange risk on the Sterling Notes, and does not hold or issue derivative instruments for speculative trading purposes. Cross-currency derivative instruments are used to effectively convert £1.275 billion aggregate principal amount of fixed-rate British pound sterling denominated debt, including annual interest payments and the payment of principal at maturity, to fixed-rate U.S. dollar denominated debt. The cross-currency swaps have maturities of June 2031 and July 2042. The Company is required to post collateral on the cross-currency derivative instruments when the derivative contracts are in a liability position. In April 2019, the Company entered into a collateral holiday agreement for 60% of both the 2031 and 2042 cross-currency swaps, which eliminates the requirement to post collateral for three years , as well as a ten year collateral cap on the remaining 40% of the cross-currency swaps which limits the required collateral posting on that 40% of the cross-currency swaps to $150 million . The fair value of the Company's cross-currency derivatives was $409 million and $237 million and is included in other long-term liabilities on its consolidated balance sheets as of September 30, 2019 and December 31, 2018 , respectively. The Company’s derivative instruments are not designated as hedges and are marked to fair value each period, with the impact recorded as a gain or loss on financial instruments, net in the consolidated statements of operations. While these derivative instruments are not designated as hedges for accounting purposes, management continues to believe such instruments are closely correlated with the respective debt, thus managing associated risk. The effect of financial instruments on the consolidated statements of operations is presented in the table below. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Gain (Loss) on Financial Instruments, Net: Change in fair value of cross-currency derivative instruments $ (86 ) $ (10 ) $ (172 ) $ (63 ) Foreign currency remeasurement of Sterling Notes to U.S. dollars 52 22 56 63 $ (34 ) $ 12 $ (116 ) $ — |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Fair Value Measurements Accounting guidance establishes a three-level hierarchy for disclosure of fair value measurements, based on the transparency of inputs to the valuation of an asset or liability as of the measurement date, as follows: • Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement. Financial Assets and Liabilities The Company has estimated the fair value of its financial instruments as of September 30, 2019 and December 31, 2018 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, restricted cash, receivables, payables and other current assets and liabilities approximate fair value because of the short maturity of those instruments. Financial instruments accounted for at fair value on a recurring basis and classified within Level 2 of the valuation hierarchy include the Company's cross-currency derivative instruments and were valued at $409 million and $237 million as of September 30, 2019 and December 31, 2018 , respectively. The estimated fair value of the Company’s senior notes and debentures as of September 30, 2019 and December 31, 2018 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. The carrying amount of the consolidated variable interest entity's mortgage note liability approximates fair value. A summary of the carrying value and fair value of debt as of September 30, 2019 and December 31, 2018 is as follows: September 30, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value Senior notes and debentures $ 64,140 $ 69,315 $ 62,868 $ 61,087 Credit facilities $ 10,759 $ 10,842 $ 9,959 $ 9,608 Nonfinancial Assets and Liabilities |
Revenue (Notes)
Revenue (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue [Abstract] | |
Revenue | Revenues The Company’s revenues by product line are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Video $ 4,359 $ 4,332 $ 13,134 $ 12,987 Internet 4,195 3,809 12,322 11,286 Voice 477 512 1,470 1,599 Residential revenue 9,031 8,653 26,926 25,872 Small and medium business 974 922 2,882 2,737 Enterprise 644 632 1,939 1,881 Commercial revenue 1,618 1,554 4,821 4,618 Advertising sales 394 440 1,134 1,223 Mobile 192 17 490 17 Other 215 228 632 673 $ 11,450 $ 10,892 $ 34,003 $ 32,403 |
Operating Costs and Expenses (N
Operating Costs and Expenses (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Operating Costs and Expenses [Abstract] | |
Operating Costs and Expenses | Operating Costs and Expenses Operating costs and expenses, exclusive of items shown separately in the consolidated statements of operations, consist of the following for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Programming $ 2,790 $ 2,778 $ 8,482 $ 8,333 Regulatory, connectivity and produced content 612 546 1,770 1,639 Costs to service customers 1,894 1,854 5,483 5,492 Marketing 793 790 2,296 2,310 Mobile 337 94 874 135 Other 1,009 950 3,010 2,812 $ 7,435 $ 7,012 $ 21,915 $ 20,721 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 the non-capitalizable portion of installations, service and repairs, maintenance, bad debt expense, billing and collection, occupancy and vehicle costs. Marketing costs represent the costs of marketing to current and potential commercial and residential customers including labor costs. Mobile costs represent costs associated with the Company's mobile service such as device and service costs, marketing, sales and commissions, retail stores, personnel costs and taxes, among others. Other includes corporate overhead, advertising sales expenses, indirect costs associated with the Company’s enterprise business customers and regional sports and news networks, property tax and insurance expense and stock compensation expense, among others. |
Other Operating Expenses, Net (
Other Operating Expenses, Net (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Other Operating Expenses, Net [Abstract] | |
Other Operating Expenses, Net | Other Operating Expenses, Net Other operating expenses, net consist of the following for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Special charges, net $ 19 $ 14 $ 38 $ 125 (Gain) loss on sale of assets, net (5 ) 4 33 (9 ) $ 14 $ 18 $ 71 $ 116 Special charges, net Special charges, net primarily includes employee termination costs and net amounts of litigation settlements. The three and nine months ended September 30, 2018 includes $14 million and $85 million of merger and restructuring costs, respectively. The nine months ended September 30, 2018 also includes a $22 million charge related to the Company's withdrawal liability from a multiemployer pension plan. 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. The nine months ended September 30, 2019 includes a $41 million impairment of non-strategic assets. |
Stock Compensation Plans (Notes
Stock Compensation Plans (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Stock Compensation Plans [Abstract] | |
Stock Compensation Plans | Stock Compensation Plans Charter’s stock incentive plans provide for grants of nonqualified stock options, incentive stock options, stock appreciation rights, dividend equivalent rights, performance units and performance shares, share awards, phantom stock, restricted stock units and restricted stock. Directors, officers and other employees of the Company and its subsidiaries, as well as others performing consulting services for the Company, are eligible for grants under the stock incentive plans. Charter granted the following equity awards for the periods presented. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Stock options 39,400 24,200 1,821,800 1,490,700 Restricted stock 200 500 8,300 10,200 Restricted stock units 11,300 13,500 698,200 518,900 Charter stock options and restricted stock units generally cliff vest upon the three year anniversary of each grant. Certain stock options and restricted stock units vest based on achievement of stock price hurdles. Stock options generally expire ten years from the grant date and restricted stock units have no voting rights. Restricted stock generally vests one year from the date of grant. Time Warner Cable Inc. ("TWC") restricted stock units that were converted into Charter restricted stock units generally vest 50% on each of the third and fourth anniversary of the grant date. As of September 30, 2019 , total unrecognized compensation remaining to be recognized in future periods totaled $211 million for stock options, $2 million for restricted stock and $246 million for restricted stock units and the weighted average period over which they are expected to be recognized is two years for stock options, seven months for restricted stock and two years for restricted stock units. The Company recorded $71 million and $238 million for the three and nine months ended September 30, 2019 , respectively, and $71 million and $213 million of stock compensation expense for the three and nine months ended September 30, 2018 , respectively, which is included in operating costs and expenses. The Company also recorded $5 million of expense related to accelerated vesting of equity awards of terminated employees, which is recorded in other operating expenses, net in the consolidated statements of operations for the nine months ended September 30, 2018 |
Income Taxes (Notes)
Income Taxes (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [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 limited liability companies that are generally 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 Charter Holdings Limited Liability Company Agreement (“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. The Company recorded income tax expense of $126 million and $329 million for the three and nine months ended September 30, 2019 , respectively, and $109 million and $178 million for the three and nine months ended September 30, 2018 , respectively. Income tax expense increased during the nine months ended September 30, 2019 compared to the corresponding period in 2018 primarily as a result of higher pretax income and lower benefit from state tax law changes . 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. In determining the Company’s tax provision for financial reporting purposes, the Company establishes a reserve for uncertain tax positions unless such positions are determined to be “more likely than not” of being sustained upon examination, based on their technical merits. There is considerable judgment involved in making such a determination. The Company has recorded unrecognized tax benefits totaling approximately $186 million and $180 million , excluding interest and penalties, as of September 30, 2019 and December 31, 2018 , respectively. The Company does not currently anticipate that its reserve for uncertain tax positions will significantly increase or decrease during 2019 ; however, various events could cause the Company’s current expectations to change in the future. These uncertain tax positions, if ever recognized in the financial statements, would be recorded in the consolidated statements of operations as part of the income tax provision. No tax years for Charter are currently under examination by the Internal Revenue Service ("IRS") for income tax purposes. Charter's 2016 through 2018 tax years remain open for examination and assessment. Charter’s short period return dated May 17, 2016 (prior to the acquisition of TWC and Bright House Networks, LLC) remains subject to examination and assessment. Years prior to 2016 remain open solely for purposes of examination of Charter’s loss and credit carryforwards. The IRS is currently examining Charter Holdings’ income tax return for 2016. Charter Holdings’ 2017 and 2018 tax years remain open for examination and assessment. The IRS is currently examining TWC’s income tax returns for 2011 through 2014. TWC’s tax year 2015 remains subject to examination and assessment. Prior to TWC’s separation from Time Warner Inc. (“Time Warner”) in March 2009, TWC was included in the consolidated U.S. federal and certain state income tax returns of Time Warner. The IRS has examined Time Warner’s 2008 through 2010 income tax returns and the results are under appeal. The Company does not anticipate that these examinations will have a material impact on the Company’s consolidated financial position or results of operations. In addition, the Company is also subject to ongoing examinations of the Company’s tax returns by state and local tax authorities for various periods. Activity related to these state and local examinations did not have a material impact on the Company’s consolidated financial position or results of operations during the three and nine months ended September 30, 2019 , nor does the Company anticipate a material impact in the future. |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings Per Share Basic earnings per common share is computed by dividing net income 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. Charter Holdings common and convertible preferred units of 28 million and 29 million for the three and nine months ended September 30, 2019 , respectively, and 30 million and 31 million for the three and nine months ended September 30, 2018 , respectively, were not included in the computation of diluted earnings per share as their effect would have been antidilutive. The following is the computation of diluted earnings per common share for the three and nine months ended September 30, 2019 and 2018 . Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Numerator: Net income attributable to Charter shareholders $ 387 $ 493 $ 954 $ 934 Denominator: Weighted average common shares outstanding, basic 218,499,213 230,554,633 221,818,079 234,159,830 Effect of dilutive securities: Assumed exercise or issuance of shares relating to stock plans 3,856,654 3,052,781 3,519,905 3,184,094 Weighted average common shares outstanding, diluted 222,355,867 233,607,414 225,337,984 237,343,924 Basic earnings per common share attributable to Charter shareholders $ 1.77 $ 2.14 $ 4.30 $ 3.99 Diluted earnings per common share attributable to Charter shareholders $ 1.74 $ 2.11 $ 4.23 $ 3.93 |
Comprehensive Income (Notes)
Comprehensive Income (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | |
Comprehensive Income | Comprehensive Income Comprehensive income equaled net income attributable to Charter shareholders for the three and nine months ended September 30, 2019 and three months ended September 30, 2018. The following table sets forth the consolidated statements of comprehensive income for the nine months ended September 30, 2018. Nine Months Ended September 30, 2018 Consolidated net income $ 1,146 Foreign currency translation adjustment (1 ) Consolidated comprehensive income 1,145 Less: Comprehensive income attributable to noncontrolling interest (212 ) Comprehensive income attributable to Charter shareholders $ 933 |
Related Party Transactions (Not
Related Party Transactions (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The following sets forth certain transactions in which the Company and the directors, executive officers, and affiliates of the Company are involved. Liberty Broadband and A/N Under the terms of the Amended and Restated Stockholders Agreement with Liberty Broadband Corporation (“Liberty Broadband”), A/N and Charter, dated May 23, 2015, the number of Charter’s directors is fixed at 13, and includes its CEO. Two designees selected by A/N are members of the board of directors of Charter and three designees selected by Liberty Broadband are members of the board of directors of Charter. The remaining eight directors are not affiliated with either A/N or Liberty Broadband. Each of A/N and Liberty Broadband is entitled to nominate at least one director to each of the committees of Charter’s board of directors, subject to applicable stock exchange listing rules and certain specified voting or equity ownership thresholds for each of A/N and Liberty Broadband, and provided that the Nominating and Corporate Governance Committee and the Compensation and Benefit Committee each have at least a majority of directors independent from A/N, Liberty Broadband and Charter (referred to as the “unaffiliated directors”). Each of the Nominating and Corporate Governance Committee and the Compensation and Benefits Committee is currently comprised of three unaffiliated directors and one designee of each of A/N and Liberty Broadband. A/N and Liberty Broadband also have certain other committee designation and other governance rights. Mr. Thomas Rutledge, the Company’s CEO, is the chairman of the board of Charter. In December 2017, Charter and A/N entered into an amendment to the letter agreement (the “Letter Agreement”) that requires A/N to sell to Charter or to Charter Holdings, on a monthly basis, a number of shares of Charter Class A common stock or Charter Holdings common units that represents a pro rata participation by A/N and its affiliates in any repurchases of shares of Charter Class A common stock from persons other than A/N effected by Charter during the immediately preceding calendar month, at a purchase price equal to the average price paid by Charter for the shares repurchased from persons other than A/N during such immediately preceding calendar month. A/N and Charter both have the right to terminate or suspend the pro rata repurchase arrangement on a prospective basis. The Company is aware that Dr. John Malone, a director emeritus of Charter and Chairman of the board of directors and holder of 49.0% of voting interest in Liberty Broadband, may be deemed to have a 39.9% voting interest in Qurate Retail, Inc. ("Qurate") and is on the board of directors of Qurate. Qurate wholly owns HSN, Inc. (“HSN”) and QVC, Inc. (“QVC”). The Company has programming relationships with HSN and QVC. For the three and nine months ended September 30, 2019 , the Company recorded revenue in aggregate of approximately $11 million and $35 million , respectively, and for the three and nine months ended September 30, 2018 , the Company recorded revenue in aggregate of approximately $18 million and $51 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, a member of Charter’s board of directors, also serve on the board of directors of Discovery Communications, Inc., (“Discovery”). The Company is aware that Dr. Malone owns 1.2% of the series A common stock, 93.6% of the series B common stock and 2.6% of the series C common stock of Discovery and has a 28.2% 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 of which Mr. Miron is the CEO, owns 100% of the Series A-1 preferred stock of Discovery and 100% of the Series C-1 preferred stock of Discovery and has a 24.1% voting interest for the election of directors. A/N PP has the right to appoint three directors out of a total of eleven directors to Discovery’s board to be elected by the holders of Discovery’s Series A-1 preferred stock. The Company purchases programming from Discovery 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 Discovery would currently be considered a related party. The amount paid in the aggregate to Discovery represents less than 2% of total operating costs and expenses for the three and nine months ended September 30, 2019 and 2018 . Equity Investments The Company has agreements with certain equity investees pursuant to which the Company has made or received related party transaction payments. The Company recorded payments to equity investees totaling $78 million and $245 million during the three and nine months ended September 30, 2019 , respectively, and $99 million and $248 million during the three and nine months ended September 30, 2018 |
Contingencies (Notes)
Contingencies (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies In August 2015, a purported stockholder of Charter, Matthew Sciabacucchi, filed a lawsuit in the Delaware Court of Chancery, on behalf of a putative class of Charter stockholders, challenging the transactions involving Charter, TWC, A/N, and Liberty Broadband announced by Charter on May 26, 2015. The lawsuit, which named as defendants Charter and its board of directors, alleged that the transactions resulted from breaches of fiduciary duty by Charter’s directors and that Liberty Broadband improperly benefited from the challenged transactions at the expense of other Charter stockholders. The lawsuit has proceeded to the discovery phase. Charter denies any liability, believes that it has substantial defenses, and is vigorously defending this lawsuit. Although Charter is unable to predict the outcome of this lawsuit, it does not expect the outcome will have a material effect on its operations, financial condition or cash flows. The California Attorney General and the Alameda County, California District Attorney are investigating whether certain of Charter’s waste disposal policies, procedures and practices are in violation of the California Business and Professions Code and the California Health and Safety Code. That investigation was commenced in January 2014. A similar investigation involving TWC was initiated in February 2012. Charter is cooperating with these investigations. While the Company is unable to predict the outcome of these investigations, it does not expect that the outcome will have a material effect on its operations, financial condition, or cash flows. On December 19, 2011, Sprint Communications Company L.P. (“Sprint”) filed a complaint in the U.S. District Court for the District of Kansas alleging that TWC infringed certain U.S. patents purportedly relating to Voice over Internet Protocol (“VoIP”) services. At the trial, the jury returned a verdict of $140 million against TWC and further concluded that TWC had willfully infringed Sprint’s patents. The court subsequently declined to enhance the damage award as a result of the purported willful infringement and awarded Sprint an additional $6 million , representing pre-judgment interest on the damages award. The Company appealed the case to the United States Court of Appeals for the Federal Circuit where the Company lost the appeal. The Company has filed a petition for writ of certiorari with the United States Supreme Court, and the Company could receive the decision of the Supreme Court as to whether the Court will grant the petition as early as November 2019. In addition to pursuing its appeal, the Company continues to pursue indemnity from one of its vendors and has brought a patent suit against Sprint (TC Tech, LLC v. Sprint) in the U.S. District Court for the District of Delaware implicating Sprint's LTE technology. The expected financial impact of the Sprint verdict has been reflected in the Company's financial statements. The Company does not expect that the outcome of this litigation will have a material adverse effect on its operations or financial condition. The ultimate outcomes of the appeal of the Sprint Kansas case, the pursuit of indemnity against the Company’s vendor and the TC Tech litigation cannot be predicted. Sprint filed a second suit against Charter and Bright House Networks, LLC on December 2, 2017 in the United States District Court for the District of Delaware. This suit alleges infringement of 15 patents related to the Company's provision of VoIP services (ten of which were asserted against Legacy TWC in the matter described above). Charter is vigorously defending this case. While the Company is unable to predict the outcome of this Sprint suit, it does not expect that this litigation will have a material effect on its operations, financial condition, or cash flows. Sprint filed a third suit against Charter on May 17, 2018 in the United States District Court for the Eastern District of Virginia. This suit alleges infringement of three patents related to the Company's video on demand services. The Company is vigorously defending this case. The court transferred this case to the United States District Court for the District of Delaware on December 20, 2018 pursuant to an agreement between the parties. While the Company is unable to predict the outcome of this litigation, it does not expect that this litigation will have a material effect on its operations, financial condition, or cash flows. In addition to the Sprint litigation described above, the Company is a defendant or co-defendant in several additional lawsuits involving alleged infringement of various intellectual property 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, the Company may be subject to substantial damages and/or an injunction that could require the Company or its vendors to modify certain products and services the Company offers to its subscribers, as well as negotiate royalty or license agreements with respect to the intellectual property at issue. While the Company believes the lawsuits are without merit and intends to defend the actions vigorously, no assurance can be given that any adverse outcome would not be material to the Company’s consolidated financial condition, results of operations, or liquidity. The Company cannot predict the outcome of any such claims nor can it reasonably estimate a range of possible loss. The Company is party to other lawsuits, claims and regulatory inquiries that arise in the ordinary course of conducting its business. The ultimate outcome of these other legal matters pending against the Company cannot be predicted, and although such lawsuits and claims are not expected individually to have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity, such lawsuits could have, in the aggregate, a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity. Whether or not the Company ultimately prevails in any particular lawsuit or claim, litigation can be time consuming and costly and injure the Company’s reputation. |
Employee Benefit Plans (Notes)
Employee Benefit Plans (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Defined Benefit Plan [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company sponsors three qualified defined benefit pension plans that provide pension benefits to a majority of employees who were employed by TWC before the acquisition of TWC. The Company also provides a nonqualified defined benefit pension plan. Pension benefits are based on formulas that reflect the employees’ years of service and compensation during their employment period. Actuarial gains or losses are changes in the amount of either the benefit obligation or the fair value of plan assets resulting from experience different from that assumed or from changes in assumptions. The Company has elected to follow a mark-to-market pension accounting policy for recording the actuarial gains or losses annually during the fourth quarter, or earlier if a remeasurement event occurs during an interim period. No future compensation increases or future service will be credited to participants of the pension plans given the frozen nature of the plans. The components of net periodic pension benefit (costs) for the three and nine months ended September 30, 2019 and 2018 are recorded in other pension benefits, net in the consolidated statements of operations and consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Interest cost $ (32 ) $ (32 ) $ (96 ) $ (96 ) Expected return on plan assets 41 52 123 156 Remeasurement gain, net — 187 — 187 Net periodic pension benefits $ 9 $ 207 $ 27 $ 247 During the three and nine months ended September 30, 2018, settlements for lump-sum distributions to qualified and nonqualified pension plan participants exceeded the estimated annual interest cost of the plans. As a result, the pension liability and pension asset values were reassessed as of September 30, 2018 utilizing remeasurement date assumptions in accordance with the Company's mark-to-market pension accounting policy to record gains and losses in the period in which a remeasurement event occurs. The $187 million remeasurement gain recorded during the three and nine months ended September 30, 2018 was primarily driven by the effects of an increase of the discount rate from 3.68% at December 31, 2017 to 4.24% at September 30, 2018. This was partially offset by a loss to record pension assets to fair value at September 30, 2018. The Company made no cash contributions to the qualified pension plans during the three and nine months ended September 30, 2019 and 2018 ; 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 2019 to the extent benefits are paid. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Recently Issued Accounting Standards [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Accounting Standards Adopted January 1, 2018 ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”) Upon adoption of ASU 2014-09, the Company recorded a cumulative-effect adjustment, which included an increase to total shareholders’ equity of $38 million as of January 1, 2018. ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory ("ASU 2016-16") The Company identified a $31 million increase to total shareholders' equity and corresponding increase to deferred tax assets related to the adoption of ASU 2016-16, which was recorded during the three months ended September 30, 2018. Accounting Standards Adopted January 1, 2019 ASU No. 2016-02, Leases (“ASU 2016-02”) In February 2016, the FASB issued ASU 2016-02, which requires lessees to recognize almost all leases on their balance sheet as a lease asset and a lease liability. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification is based on criteria largely similar to the criteria applied under legacy lease accounting, but without explicit bright lines. The Company adopted ASU 2016-02 using the modified retrospective approach with a cumulative-effect adjustment recorded at the beginning of the period of adoption (January 1, 2019). Therefore, the Company recognized and measured operating leases on the consolidated balance sheet without revising comparative period information or disclosure. At transition, the Company elected the package of practical expedients permitted under the transition guidance within the standard, which eliminates the reassessment of past leases, classification and initial direct costs. The Company did not elect to use hindsight to reassess lease terms or impairment at the adoption date. The Company elected the land easements practical expedient which allows the Company not to retrospectively treat land easements as leases; however, must apply lease accounting prospectively to land easements if they meet the definition of a lease. The Company implemented internal controls and key system functionality to enable the preparation of financial information on adoption. The new standard resulted in the recording of leased assets and lease liabilities for the Company’s operating leases of approximately $1.1 billion and $1.2 billion , respectively, as of January 1, 2019. The difference between the leased assets and lease liabilities primarily represents the prior year end deferred rent liabilities balance, resulting from historical straight-lining of operating leases, which was effectively reclassified upon adoption to reduce the measurement of the leased assets. The adoption of the standard did not have an impact on the Company’s shareholders equity and is not anticipated to have an impact on the Company’s results from operations and cash flows. The adoption of the new standard resulted in additional interim and annual lease disclosures. See Note 5 for interim lease disclosures for the three and nine months ended September 30, 2019 . Accounting Standards Not Yet Adopted ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) In June 2016, the FASB issued ASU 2016-13, which requires a financial asset (or a group of financial assets) measured at amortized cost basis to be assessed for impairment under the current expected credit loss model rather than an incurred loss model. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amount. ASU 2016-13 will be effective for interim and annual periods beginning after December 15, 2019 (January 1, 2020 for the Company). The primary financial assets of the Company in scope of ASU 2016-13 include accounts receivables and equipment installment plan notes receivables. The Company is currently in the process of evaluating the impact, if any, the adoption of ASU 2016-13 will have on its consolidated financial statements. ASU No. 2017-04, Simplifying the Test for Goodwill Impairment (“ASU 2017-04”) In January 2017, the FASB issued ASU 2017-04, which eliminates step two from the goodwill impairment test. Under the new standard, to the extent the carrying amount of a reporting unit exceeds the fair value, the Company will record an impairment charge equal to the difference. ASU 2017-04 will be effective for interim and annual periods beginning after December 15, 2019 (January 1, 2020 for the Company). Early adoption is permitted. The Company does not expect the adoption of ASU 2017-04 to have a material impact on its consolidated financial statements. ASU No. 2018-15, Customer’s Accounting for Implementation Costs in a Cloud Computing Arrangement That Is a Service Contract ("ASU 2018-15") In August 2018, the FASB issued ASU 2018-15, which requires upfront implementation costs incurred in a cloud computing arrangement (or hosting arrangement) that is a service contract to be amortized to hosting expense over the term of the arrangement. ASU 2018-15 will be effective for interim and annual periods beginning after December 15, 2019 (January 1, 2020 for the Company). The Company does not expect the adoption of ASU 2018-15 to have a material impact on its consolidated financial statements. ASU No. 2019-02, Improvements to Accounting for Costs of Films and License Agreements for Program Materials ("ASU 2019-02") In March 2019, the FASB issued ASU 2019-02, which aligns the accounting for production costs of an episodic television series with the accounting for production costs of films regarding cost capitalization, amortization, impairment, presentation and disclosure. ASU 2019-02 will be effective for interim and annual periods beginning after December 15, 2019 (January 1, 2020 for the Company). The Company does not expect the adoption of ASU 2019-02 to have a material impact on its consolidated financial statements. |
Consolidating Schedules (Notes)
Consolidating Schedules (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
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 "Intermediate Holding Companies" column includes the assets and liabilities of the captive insurance company, a company wholly-owned by Charter outside of Charter Holdings and which does not, directly or indirectly, own any interest in Charter Holdings. The “Charter Operating and Restricted Subsidiaries” column is presented to comply with the terms of the Credit Agreement. Comprehensive income equaled net income attributable to Charter shareholders for the nine months ended September 30, 2019 . Condensed consolidating financial statements as of September 30, 2019 and December 31, 2018 and for the nine months ended September 30, 2019 and 2018 follow. Charter Communications, Inc. and Subsidiaries Condensed Consolidating Balance Sheets As of September 30, 2019 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 $ — $ 218 $ — $ 290 $ — $ 508 Accounts receivable, net 1 31 — 2,252 — 2,284 Receivables from related party 26 463 55 — (544 ) — Prepaid expenses and other current assets 7 41 — 548 — 596 Total current assets 34 753 55 3,090 (544 ) 3,388 RESTRICTED CASH — 89 — — — 89 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 658 — 33,560 — 34,218 Customer relationships, net — — — 7,956 — 7,956 Franchises — — — 67,322 — 67,322 Goodwill — — — 29,554 — 29,554 Total investment in cable properties, net — 658 — 138,392 — 139,050 INVESTMENT IN SUBSIDIARIES 50,471 56,947 76,898 — (184,316 ) — OPERATING LEASE RIGHT-OF-USE ASSETS — 173 — 930 — 1,103 LOANS RECEIVABLE – RELATED PARTY 260 699 545 — (1,504 ) — OTHER NONCURRENT ASSETS 2 237 — 1,398 — 1,637 Total assets $ 50,767 $ 59,556 $ 77,498 $ 143,810 $ (186,364 ) $ 145,267 LIABILITIES AND SHAREHOLDERS’/MEMBER’S EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 26 $ 916 $ 302 $ 7,019 $ — $ 8,263 Operating lease liabilities — 30 — 180 — 210 Payables to related party — — — 544 (544 ) — Current portion of long-term debt — — — 3,509 — 3,509 Total current liabilities 26 946 302 11,252 (544 ) 11,982 LONG-TERM DEBT — — 20,249 51,141 — 71,390 LOANS PAYABLE – RELATED PARTY — — — 1,504 (1,504 ) — DEFERRED INCOME TAXES 17,542 15 — 52 — 17,609 LONG-TERM OPERATING LEASE LIABILITIES — 197 — 794 — 991 OTHER LONG-TERM LIABILITIES 225 402 — 2,146 — 2,773 SHAREHOLDERS’/MEMBER’S EQUITY Controlling interest 32,974 50,471 56,947 76,898 (184,316 ) 32,974 Noncontrolling interests — 7,525 — 23 — 7,548 Total shareholders’/member’s equity 32,974 57,996 56,947 76,921 (184,316 ) 40,522 Total liabilities and shareholders’/member’s equity $ 50,767 $ 59,556 $ 77,498 $ 143,810 $ (186,364 ) $ 145,267 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Balance Sheets As of December 31, 2018 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 $ — $ 251 $ — $ 300 $ — $ 551 Accounts receivable, net 1 33 — 1,699 — 1,733 Receivables from related party 27 518 57 — (602 ) — Prepaid expenses and other current assets 14 32 — 400 — 446 Total current assets 42 834 57 2,399 (602 ) 2,730 RESTRICTED CASH — 214 — — — 214 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 468 — 34,658 — 35,126 Customer relationships, net — — — 9,565 — 9,565 Franchises — — — 67,319 — 67,319 Goodwill — — — 29,554 — 29,554 Total investment in cable properties, net — 468 — 141,096 — 141,564 INVESTMENT IN SUBSIDIARIES 53,592 60,530 78,960 — (193,082 ) — LOANS RECEIVABLE – RELATED PARTY 251 674 526 — (1,451 ) — OTHER NONCURRENT ASSETS — 222 — 1,403 (3 ) 1,622 Total assets $ 53,885 $ 62,942 $ 79,543 $ 144,898 $ (195,138 ) $ 146,130 LIABILITIES AND SHAREHOLDERS’/MEMBER’S EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 9 $ 893 $ 283 $ 7,620 $ — $ 8,805 Payables to related party — — — 602 (602 ) — Current portion of long-term debt — — — 3,290 — 3,290 Total current liabilities 9 893 283 11,512 (602 ) 12,095 LONG-TERM DEBT — — 18,730 50,807 — 69,537 LOANS PAYABLE – RELATED PARTY — — — 1,451 (1,451 ) — DEFERRED INCOME TAXES 17,376 16 — — (3 ) 17,389 OTHER LONG-TERM LIABILITIES 215 478 — 2,144 — 2,837 SHAREHOLDERS’/MEMBER’S EQUITY Controlling interest 36,285 53,592 60,530 78,960 (193,082 ) 36,285 Noncontrolling interests — 7,963 — 24 — 7,987 Total shareholders’/member’s equity 36,285 61,555 60,530 78,984 (193,082 ) 44,272 Total liabilities and shareholders’/member’s equity $ 53,885 $ 62,942 $ 79,543 $ 144,898 $ (195,138 ) $ 146,130 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Operations For the nine months ended September 30, 2019 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated REVENUES $ 39 $ 880 $ — $ 33,997 $ (913 ) $ 34,003 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 39 843 — 21,950 (917 ) 21,915 Depreciation and amortization — 12 — 7,453 — 7,465 Other operating (income) expense, net — (10 ) — 77 4 71 39 845 — 29,480 (913 ) 29,451 Income from operations — 35 — 4,517 — 4,552 OTHER INCOME (EXPENSES): Interest income (expense), net 7 25 (785 ) (2,080 ) — (2,833 ) Loss on financial instruments, net — — — (116 ) — (116 ) Other pension benefits, net — — — 27 — 27 Other expense, net — (2 ) — (129 ) — (131 ) Equity in income of subsidiaries 1,180 1,347 2,132 — (4,659 ) — 1,187 1,370 1,347 (2,298 ) (4,659 ) (3,053 ) Income before income taxes 1,187 1,405 1,347 2,219 (4,659 ) 1,499 Income tax expense (233 ) (10 ) — (86 ) — (329 ) Consolidated net income 954 1,395 1,347 2,133 (4,659 ) 1,170 Less: Net income attributable to noncontrolling interests — (215 ) — (1 ) — (216 ) Net income $ 954 $ 1,180 $ 1,347 $ 2,132 $ (4,659 ) $ 954 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Operations For the nine months ended September 30, 2018 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated REVENUES $ 37 $ 844 $ — $ 32,390 $ (868 ) $ 32,403 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 37 810 — 20,742 (868 ) 20,721 Depreciation and amortization — 8 — 7,776 — 7,784 Other operating expenses, net — 4 — 112 — 116 37 822 — 28,630 (868 ) 28,621 Income from operations — 22 — 3,760 — 3,782 OTHER INCOME (EXPENSES): Interest income (expense), net 7 21 (762 ) (1,896 ) — (2,630 ) Other pension benefits, net — — — 247 — 247 Other expense, net — (26 ) — (49 ) — (75 ) Equity in income of subsidiaries 1,085 1,286 2,048 — (4,419 ) — 1,092 1,281 1,286 (1,698 ) (4,419 ) (2,458 ) Income before income taxes 1,092 1,303 1,286 2,062 (4,419 ) 1,324 Income tax expense (158 ) (7 ) — (13 ) — (178 ) Consolidated net income 934 1,296 1,286 2,049 (4,419 ) 1,146 Less: Net income attributable to noncontrolling interests — (211 ) — (1 ) — (212 ) Net income $ 934 $ 1,085 $ 1,286 $ 2,048 $ (4,419 ) $ 934 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Comprehensive Income For the nine months ended September 30, 2018 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated Consolidated net income $ 934 $ 1,296 $ 1,286 $ 2,049 $ (4,419 ) $ 1,146 Foreign currency translation adjustment (1 ) (1 ) (1 ) (1 ) 3 (1 ) Consolidated comprehensive income $ 933 $ 1,295 $ 1,285 $ 2,048 $ (4,416 ) $ 1,145 Less: Comprehensive income attributable to noncontrolling interests — (211 ) — (1 ) — (212 ) Comprehensive income $ 933 $ 1,084 $ 1,285 $ 2,047 $ (4,416 ) $ 933 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Cash Flows For the nine months ended September 30, 2019 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated NET CASH FLOWS FROM OPERATING ACTIVITIES $ (22 ) $ 65 $ (762 ) $ 9,109 $ — $ 8,390 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — (67 ) — (4,913 ) 67 (4,913 ) Change in accrued expenses related to capital expenditures — — — (449 ) — (449 ) Real estate investments through variable interest entities — (125 ) — — — (125 ) Contributions to subsidiaries (117 ) (54 ) (1,559 ) — 1,730 — Distributions from subsidiaries 4,601 5,222 5,988 — (15,811 ) — Other, net — (8 ) — 85 (67 ) 10 Net cash flows from investing activities 4,484 4,968 4,429 (5,277 ) (14,081 ) (5,477 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — 1,515 11,642 — 13,157 Repayments of long-term debt — — — (10,886 ) — (10,886 ) Payments for debt issuance costs — — (14 ) (34 ) — (48 ) Purchase of treasury stock (4,568 ) — — — — (4,568 ) Proceeds from exercise of stock options 106 — — — — 106 Purchase of noncontrolling interest — (593 ) — — — (593 ) Distributions to noncontrolling interest — (114 ) — (2 ) — (116 ) Contributions from parent — 117 54 1,559 (1,730 ) — Distributions to parent — (4,601 ) (5,222 ) (5,988 ) 15,811 — Other, net — — — (133 ) — (133 ) Net cash flows from financing activities (4,462 ) (5,191 ) (3,667 ) (3,842 ) 14,081 (3,081 ) NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH — (158 ) — (10 ) — (168 ) CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period — 465 — 300 — 765 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period $ — $ 307 $ — $ 290 $ — $ 597 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Cash Flows For the nine months ended September 30, 2018 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated NET CASH FLOWS FROM OPERATING ACTIVITIES $ 4 $ 91 $ (728 ) $ 9,232 $ — $ 8,599 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — — — (6,692 ) — (6,692 ) Change in accrued expenses related to capital expenditures — — — (620 ) — (620 ) Real estate investments through variable interest entities — (15 ) — — — (15 ) Contribution to subsidiaries (56 ) (127 ) (127 ) — 310 — Distributions from subsidiaries 3,217 3,763 4,491 — (11,471 ) — Other, net — (10 ) — (93 ) — (103 ) Net cash flows from investing activities 3,161 3,611 4,364 (7,405 ) (11,161 ) (7,430 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — — 11,552 — 11,552 Repayments of long-term debt — — — (8,964 ) — (8,964 ) Borrowings (repayments) loans payable - related parties (7 ) — — 7 — — Payments for debt issuance costs — — — (29 ) — (29 ) Purchase of treasury stock (3,214 ) — — — — (3,214 ) Proceeds from exercise of stock options 56 — — — — 56 Purchase of noncontrolling interest — (473 ) — — — (473 ) Distributions to noncontrolling interest — (113 ) — (1 ) — (114 ) Contributions from parent — 56 127 127 (310 ) — Distributions to parent — (3,217 ) (3,763 ) (4,491 ) 11,471 — Borrowings for real estate investments through variable interest entities — 170 — — — 170 Distributions to variable interest entities noncontrolling interest — (107 ) — — — (107 ) Other, net — — — (7 ) — (7 ) Net cash flows from financing activities (3,165 ) (3,684 ) (3,636 ) (1,806 ) 11,161 (1,130 ) NET INCRASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH — 18 — 21 — 39 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period — 291 — 330 — 621 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period $ — $ 309 $ — $ 351 $ — $ 660 |
Accounting for Derivative Ins_2
Accounting for Derivative Instruments and Hedging Activities (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting for Derivative Instruments and Hedging Activities [Abstract] | |
Derivatives Policy | The Company uses derivative instruments to manage foreign exchange risk on the Sterling Notes, and does not hold or issue derivative instruments for speculative trading purposes. |
Franchises, Goodwill and Othe_2
Franchises, Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Indefinite-lived and Finite-lived Intangible Assets | Indefinite-lived and finite-lived intangible assets consist of the following as of September 30, 2019 and December 31, 2018 : September 30, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Indefinite-lived intangible assets: Franchises $ 67,322 $ — $ 67,322 $ 67,319 $ — $ 67,319 Goodwill 29,554 — 29,554 29,554 — 29,554 Trademarks 159 — 159 159 — 159 $ 97,035 $ — $ 97,035 $ 97,032 $ — $ 97,032 Finite-lived intangible assets: Customer relationships $ 18,230 $ (10,274 ) $ 7,956 $ 18,229 $ (8,664 ) $ 9,565 Other intangible assets 405 (111 ) 294 409 (92 ) 317 $ 18,635 $ (10,385 ) $ 8,250 $ 18,638 $ (8,756 ) $ 9,882 |
Expected Future Amortization Expense | The Company expects amortization expense on its finite-lived intangible assets will be as follows: Three months ended December 31, 2019 $ 514 2020 1,875 2021 1,599 2022 1,329 2023 1,072 Thereafter 1,861 $ 8,250 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments [Abstract] | |
Schedule of Variable Interest Entities | As the Company has determined the SPE is a variable interest entity ("VIE") of which it became the primary beneficiary upon the effectiveness of the arrangement, the Company has consolidated the assets and liabilities of the SPE in its consolidated balance sheet as of September 30, 2019 and December 31, 2018 as follows. September 30, 2019 December 31, 2018 Assets Current assets $ 2 $ 2 Restricted cash $ 89 $ 214 Property, plant and equipment $ 266 $ 130 Liabilities Current liabilities $ 7 $ — Other long-term liabilities $ 350 $ 346 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consist of the following as of September 30, 2019 and December 31, 2018 : September 30, 2019 December 31, 2018 Accounts payable – trade $ 663 $ 758 Deferred revenue 526 494 Accrued liabilities: Programming costs 2,064 2,044 Labor 1,005 1,052 Capital expenditures 973 1,472 Interest 943 1,045 Taxes and regulatory fees 575 526 Property and casualty 464 424 Other 1,050 990 $ 8,263 $ 8,805 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of components of lease related expenses | The components of lease related expenses, net are as follows. Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease expense (a) $ 105 $ 321 Finance lease expense: Amortization of right-of-use assets 3 10 Interest on lease liabilities 1 4 Total finance lease expense 4 14 Sublease income (6 ) (20 ) Total lease related expenses, net $ 103 $ 315 (a) Includes short-term leases and variable leases costs of $31 million and $96 million for the three and nine months ended September 30, 2019 , respectively. |
Schedule of supplemental cash flow information | Supplemental cash flow information related to leases is as follows. Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 219 Operating cash flows from finance leases $ 4 Financing cash flows from finance leases $ 5 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 209 Finance leases $ 27 |
Schedule of supplemental balance sheet information | Supplemental balance sheet information related to leases is as follows. September 30, 2019 Operating leases: Operating lease right-of-use assets $ 1,103 Current operating lease liabilities $ 210 Long-term operating lease liabilities 991 Total operating lease liabilities $ 1,201 Finance leases: Finance lease right-of-use assets (included within property, plant and equipment, net) $ 165 Current finance lease liabilities (included within accounts payable and accrued liabilities) $ 7 Long-term finance lease liabilities (included within other long-term liabilities) 51 Total finance lease liabilities $ 58 Weighted average remaining lease term Operating leases 6.8 years Finance leases 16.3 years Weighted average discount rate Operating leases 4.5 % Finance leases 5.7 % |
Schedule of future minimum lease payments for operating leases | Maturities of lease liabilities are as follows. Operating leases Finance leases Three months ended December 31, 2019 $ 71 $ 1 2020 280 6 2021 247 6 2022 210 6 2023 182 5 Thereafter 526 59 Undiscounted lease cash flow commitments 1,516 83 Reconciling impact from discounting (315 ) (25 ) Lease liabilities on consolidated balance sheet as of September 30, 2019 $ 1,201 $ 58 |
Schedule of future minimum lease payments for finance leases | Maturities of lease liabilities are as follows. Operating leases Finance leases Three months ended December 31, 2019 $ 71 $ 1 2020 280 6 2021 247 6 2022 210 6 2023 182 5 Thereafter 526 59 Undiscounted lease cash flow commitments 1,516 83 Reconciling impact from discounting (315 ) (25 ) Lease liabilities on consolidated balance sheet as of September 30, 2019 $ 1,201 $ 58 |
Schedule of future minimum lease payments for operating leases | The following table presents the Company’s unadjusted lease commitments as of December 31, 2018 as a required disclosure for companies adopting the lease standard prospectively without revising comparative period information. Operating leases Capital leases 2019 $ 286 $ 10 2020 254 9 2021 207 9 2022 170 9 2023 143 10 Thereafter 440 64 $ 1,500 $ 111 |
Schedule of future minimum lease payments for capital leases | The following table presents the Company’s unadjusted lease commitments as of December 31, 2018 as a required disclosure for companies adopting the lease standard prospectively without revising comparative period information. Operating leases Capital leases 2019 $ 286 $ 10 2020 254 9 2021 207 9 2022 170 9 2023 143 10 Thereafter 440 64 $ 1,500 $ 111 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt Summary | Long-term debt consists of the following as of September 30, 2019 and December 31, 2018 : September 30, 2019 December 31, 2018 Principal Amount Accreted Value Principal Amount Accreted Value CCO Holdings, LLC: 5.250% senior notes due March 15, 2021 $ 500 $ 499 $ 500 $ 498 5.250% senior notes due September 30, 2022 1,250 1,240 1,250 1,238 5.125% senior notes due February 15, 2023 1,000 995 1,000 994 4.000% senior notes due March 1, 2023 500 497 500 496 5.125% senior notes due May 1, 2023 1,150 1,145 1,150 1,144 5.750% senior notes due September 1, 2023 500 497 500 497 5.750% senior notes due January 15, 2024 1,000 994 1,000 993 5.875% senior notes due April 1, 2024 1,700 1,690 1,700 1,688 5.375% senior notes due May 1, 2025 750 746 750 745 5.750% senior notes due February 15, 2026 2,500 2,470 2,500 2,467 5.500% senior notes due May 1, 2026 1,500 1,491 1,500 1,490 5.875% senior notes due May 1, 2027 800 795 800 795 5.125% senior notes due May 1, 2027 3,250 3,221 3,250 3,219 5.000% senior notes due February 1, 2028 2,500 2,468 2,500 2,466 5.375% senior notes due June 1, 2029 1,500 1,501 — — Charter Communications Operating, LLC: 3.579% senior notes due July 23, 2020 2,000 1,996 2,000 1,992 4.464% senior notes due July 23, 2022 3,000 2,985 3,000 2,982 Senior floating rate notes due February 1, 2024 900 902 900 903 4.500% senior notes due February 1, 2024 1,100 1,092 1,100 1,091 4.908% senior notes due July 23, 2025 4,500 4,470 4,500 4,466 3.750% senior notes due February 15, 2028 1,000 987 1,000 986 4.200% senior notes due March 15, 2028 1,250 1,240 1,250 1,240 5.050% senior notes due March 30, 2029 1,250 1,241 — — 6.384% senior notes due October 23, 2035 2,000 1,982 2,000 1,982 5.375% senior notes due April 1, 2038 800 786 800 785 6.484% senior notes due October 23, 2045 3,500 3,467 3,500 3,467 5.375% senior notes due May 1, 2047 2,500 2,506 2,500 2,506 5.750% senior notes due April 1, 2048 2,450 2,391 1,700 1,683 5.125% senior notes due July 1, 2049 1,250 1,240 — — 6.834% senior notes due October 23, 2055 500 495 500 495 Credit facilities 10,834 10,759 10,038 9,959 Time Warner Cable, LLC: 8.750% senior notes due February 14, 2019 — — 1,250 1,260 8.250% senior notes due April 1, 2019 — — 2,000 2,030 5.000% senior notes due February 1, 2020 1,500 1,513 1,500 1,541 4.125% senior notes due February 15, 2021 700 714 700 721 4.000% senior notes due September 1, 2021 1,000 1,024 1,000 1,033 5.750% sterling senior notes due June 2, 2031 (a) 769 823 796 855 6.550% senior debentures due May 1, 2037 1,500 1,676 1,500 1,680 7.300% senior debentures due July 1, 2038 1,500 1,774 1,500 1,780 6.750% senior debentures due June 15, 2039 1,500 1,714 1,500 1,719 5.875% senior debentures due November 15, 2040 1,200 1,255 1,200 1,256 5.500% senior debentures due September 1, 2041 1,250 1,258 1,250 1,258 5.250% sterling senior notes due July 15, 2042 (b) 799 771 827 798 4.500% senior debentures due September 15, 2042 1,250 1,142 1,250 1,140 Time Warner Cable Enterprises LLC: 8.375% senior debentures due March 15, 2023 1,000 1,159 1,000 1,191 8.375% senior debentures due July 15, 2033 1,000 1,288 1,000 1,298 Total debt 74,202 74,899 71,961 72,827 Less current portion: 8.750% senior notes due February 14, 2019 — — (1,250 ) (1,260 ) 8.250% senior notes due April 1, 2019 — — (2,000 ) (2,030 ) 5.000% senior notes due February 1, 2020 (1,500 ) (1,513 ) — — 3.579% senior notes due July 23, 2020 (2,000 ) (1,996 ) — — Long-term debt $ 70,702 $ 71,390 $ 68,711 $ 69,537 (a) Principal amount includes £625 million remeasured at $769 million and $796 million as of September 30, 2019 and December 31, 2018 , respectively, using the exchange rate at the respective dates. (b) Principal amount includes £650 million remeasured at $799 million and $827 million as of September 30, 2019 and December 31, 2018 , respectively, using the exchange rate at the respective dates. |
Common Stock (Tables)
Common Stock (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Common Stock [Abstract] | |
Class of Treasury Stock | The following represents the Company's purchase of Charter Class A common stock and the effect on the consolidated statements of cash flows during the three and nine months ended September 30, 2019 and 2018 . Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Shares $ Shares $ Shares $ Shares $ Share buybacks 6,894,762 $ 2,748 3,046,346 $ 929 11,757,758 $ 4,455 10,349,639 $ 3,142 Income tax withholding 46,691 19 12,703 4 324,731 113 209,394 72 Exercise cost 75,476 8,785 260,646 15,200 7,016,929 $ 2,767 3,067,834 $ 933 12,343,135 $ 4,568 10,574,233 $ 3,214 |
Noncontrolling Interest (Tables
Noncontrolling Interest (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Schedule of Noncontrolling Interest Purchased | The following table represents Charter Holdings' purchase of Charter Holdings common units from A/N pursuant to the Letter Agreement (see Note 18) and the effect on total shareholders' equity during the three and nine months ended September 30, 2019 and 2018 . Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Number of units purchased 864,826 495,447 1,615,561 1,546,475 Average price per unit $ 391.62 $ 292.81 $ 366.76 $ 306.11 Amount of units purchased $ 339 $ 145 $ 593 $ 473 Decrease in noncontrolling interest based on carrying value $ (215 ) $ (122 ) $ (400 ) $ (376 ) Decrease in additional paid-in-capital, net of tax $ (93 ) $ (17 ) $ (145 ) $ (73 ) |
Schedule of effects on statement of shareholders' equity due to ownership changes | Total shareholders' equity was also adjusted during the three and nine months ended September 30, 2019 and 2018 due to the changes in Charter Holdings' ownership as follows. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Decrease in noncontrolling interest $ (87 ) $ (10 ) $ (139 ) $ (53 ) Increase in additional paid-in-capital, net of tax $ 65 $ 7 $ 104 $ 39 |
Accounting for Derivative Ins_3
Accounting for Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting for Derivative Instruments and Hedging Activities [Abstract] | |
Income Statement Effects of Financial Instruments | The effect of financial instruments on the consolidated statements of operations is presented in the table below. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Gain (Loss) on Financial Instruments, Net: Change in fair value of cross-currency derivative instruments $ (86 ) $ (10 ) $ (172 ) $ (63 ) Foreign currency remeasurement of Sterling Notes to U.S. dollars 52 22 56 63 $ (34 ) $ 12 $ (116 ) $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Measurements [Abstract] | |
Carrying Value and Fair Value of Debt | A summary of the carrying value and fair value of debt as of September 30, 2019 and December 31, 2018 is as follows: September 30, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value Senior notes and debentures $ 64,140 $ 69,315 $ 62,868 $ 61,087 Credit facilities $ 10,759 $ 10,842 $ 9,959 $ 9,608 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue [Abstract] | |
Revenue | The Company’s revenues by product line are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Video $ 4,359 $ 4,332 $ 13,134 $ 12,987 Internet 4,195 3,809 12,322 11,286 Voice 477 512 1,470 1,599 Residential revenue 9,031 8,653 26,926 25,872 Small and medium business 974 922 2,882 2,737 Enterprise 644 632 1,939 1,881 Commercial revenue 1,618 1,554 4,821 4,618 Advertising sales 394 440 1,134 1,223 Mobile 192 17 490 17 Other 215 228 632 673 $ 11,450 $ 10,892 $ 34,003 $ 32,403 |
Operating Costs and Expenses (T
Operating Costs and Expenses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Operating Costs and Expenses [Abstract] | |
Operating Costs and Expenses | Operating costs and expenses, exclusive of items shown separately in the consolidated statements of operations, consist of the following for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Programming $ 2,790 $ 2,778 $ 8,482 $ 8,333 Regulatory, connectivity and produced content 612 546 1,770 1,639 Costs to service customers 1,894 1,854 5,483 5,492 Marketing 793 790 2,296 2,310 Mobile 337 94 874 135 Other 1,009 950 3,010 2,812 $ 7,435 $ 7,012 $ 21,915 $ 20,721 |
Other Operating Expenses, Net_2
Other Operating Expenses, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Operating Expenses, Net [Abstract] | |
Other Operating Expenses, Net | Other operating expenses, net consist of the following for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Special charges, net $ 19 $ 14 $ 38 $ 125 (Gain) loss on sale of assets, net (5 ) 4 33 (9 ) $ 14 $ 18 $ 71 $ 116 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Stock Compensation Plans [Abstract] | |
Equity Award Grants | Charter granted the following equity awards for the periods presented. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Stock options 39,400 24,200 1,821,800 1,490,700 Restricted stock 200 500 8,300 10,200 Restricted stock units 11,300 13,500 698,200 518,900 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The following is the computation of diluted earnings per common share for the three and nine months ended September 30, 2019 and 2018 . Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Numerator: Net income attributable to Charter shareholders $ 387 $ 493 $ 954 $ 934 Denominator: Weighted average common shares outstanding, basic 218,499,213 230,554,633 221,818,079 234,159,830 Effect of dilutive securities: Assumed exercise or issuance of shares relating to stock plans 3,856,654 3,052,781 3,519,905 3,184,094 Weighted average common shares outstanding, diluted 222,355,867 233,607,414 225,337,984 237,343,924 Basic earnings per common share attributable to Charter shareholders $ 1.77 $ 2.14 $ 4.30 $ 3.99 Diluted earnings per common share attributable to Charter shareholders $ 1.74 $ 2.11 $ 4.23 $ 3.93 |
Comprehensive Income Comprehens
Comprehensive Income Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | |
Comprehensive Income | The following table sets forth the consolidated statements of comprehensive income for the nine months ended September 30, 2018. Nine Months Ended September 30, 2018 Consolidated net income $ 1,146 Foreign currency translation adjustment (1 ) Consolidated comprehensive income 1,145 Less: Comprehensive income attributable to noncontrolling interest (212 ) Comprehensive income attributable to Charter shareholders $ 933 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Defined Benefit Plan [Abstract] | |
Net Periodic Pension Benefit | The components of net periodic pension benefit (costs) for the three and nine months ended September 30, 2019 and 2018 are recorded in other pension benefits, net in the consolidated statements of operations and consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Interest cost $ (32 ) $ (32 ) $ (96 ) $ (96 ) Expected return on plan assets 41 52 123 156 Remeasurement gain, net — 187 — 187 Net periodic pension benefits $ 9 $ 207 $ 27 $ 247 |
Consolidating Schedules (Tables
Consolidating Schedules (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Consolidating Schedules [Abstract] | |
Consolidating Schedules | Condensed consolidating financial statements as of September 30, 2019 and December 31, 2018 and for the nine months ended September 30, 2019 and 2018 follow. Charter Communications, Inc. and Subsidiaries Condensed Consolidating Balance Sheets As of September 30, 2019 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 $ — $ 218 $ — $ 290 $ — $ 508 Accounts receivable, net 1 31 — 2,252 — 2,284 Receivables from related party 26 463 55 — (544 ) — Prepaid expenses and other current assets 7 41 — 548 — 596 Total current assets 34 753 55 3,090 (544 ) 3,388 RESTRICTED CASH — 89 — — — 89 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 658 — 33,560 — 34,218 Customer relationships, net — — — 7,956 — 7,956 Franchises — — — 67,322 — 67,322 Goodwill — — — 29,554 — 29,554 Total investment in cable properties, net — 658 — 138,392 — 139,050 INVESTMENT IN SUBSIDIARIES 50,471 56,947 76,898 — (184,316 ) — OPERATING LEASE RIGHT-OF-USE ASSETS — 173 — 930 — 1,103 LOANS RECEIVABLE – RELATED PARTY 260 699 545 — (1,504 ) — OTHER NONCURRENT ASSETS 2 237 — 1,398 — 1,637 Total assets $ 50,767 $ 59,556 $ 77,498 $ 143,810 $ (186,364 ) $ 145,267 LIABILITIES AND SHAREHOLDERS’/MEMBER’S EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 26 $ 916 $ 302 $ 7,019 $ — $ 8,263 Operating lease liabilities — 30 — 180 — 210 Payables to related party — — — 544 (544 ) — Current portion of long-term debt — — — 3,509 — 3,509 Total current liabilities 26 946 302 11,252 (544 ) 11,982 LONG-TERM DEBT — — 20,249 51,141 — 71,390 LOANS PAYABLE – RELATED PARTY — — — 1,504 (1,504 ) — DEFERRED INCOME TAXES 17,542 15 — 52 — 17,609 LONG-TERM OPERATING LEASE LIABILITIES — 197 — 794 — 991 OTHER LONG-TERM LIABILITIES 225 402 — 2,146 — 2,773 SHAREHOLDERS’/MEMBER’S EQUITY Controlling interest 32,974 50,471 56,947 76,898 (184,316 ) 32,974 Noncontrolling interests — 7,525 — 23 — 7,548 Total shareholders’/member’s equity 32,974 57,996 56,947 76,921 (184,316 ) 40,522 Total liabilities and shareholders’/member’s equity $ 50,767 $ 59,556 $ 77,498 $ 143,810 $ (186,364 ) $ 145,267 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Balance Sheets As of December 31, 2018 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 $ — $ 251 $ — $ 300 $ — $ 551 Accounts receivable, net 1 33 — 1,699 — 1,733 Receivables from related party 27 518 57 — (602 ) — Prepaid expenses and other current assets 14 32 — 400 — 446 Total current assets 42 834 57 2,399 (602 ) 2,730 RESTRICTED CASH — 214 — — — 214 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 468 — 34,658 — 35,126 Customer relationships, net — — — 9,565 — 9,565 Franchises — — — 67,319 — 67,319 Goodwill — — — 29,554 — 29,554 Total investment in cable properties, net — 468 — 141,096 — 141,564 INVESTMENT IN SUBSIDIARIES 53,592 60,530 78,960 — (193,082 ) — LOANS RECEIVABLE – RELATED PARTY 251 674 526 — (1,451 ) — OTHER NONCURRENT ASSETS — 222 — 1,403 (3 ) 1,622 Total assets $ 53,885 $ 62,942 $ 79,543 $ 144,898 $ (195,138 ) $ 146,130 LIABILITIES AND SHAREHOLDERS’/MEMBER’S EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 9 $ 893 $ 283 $ 7,620 $ — $ 8,805 Payables to related party — — — 602 (602 ) — Current portion of long-term debt — — — 3,290 — 3,290 Total current liabilities 9 893 283 11,512 (602 ) 12,095 LONG-TERM DEBT — — 18,730 50,807 — 69,537 LOANS PAYABLE – RELATED PARTY — — — 1,451 (1,451 ) — DEFERRED INCOME TAXES 17,376 16 — — (3 ) 17,389 OTHER LONG-TERM LIABILITIES 215 478 — 2,144 — 2,837 SHAREHOLDERS’/MEMBER’S EQUITY Controlling interest 36,285 53,592 60,530 78,960 (193,082 ) 36,285 Noncontrolling interests — 7,963 — 24 — 7,987 Total shareholders’/member’s equity 36,285 61,555 60,530 78,984 (193,082 ) 44,272 Total liabilities and shareholders’/member’s equity $ 53,885 $ 62,942 $ 79,543 $ 144,898 $ (195,138 ) $ 146,130 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Operations For the nine months ended September 30, 2019 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated REVENUES $ 39 $ 880 $ — $ 33,997 $ (913 ) $ 34,003 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 39 843 — 21,950 (917 ) 21,915 Depreciation and amortization — 12 — 7,453 — 7,465 Other operating (income) expense, net — (10 ) — 77 4 71 39 845 — 29,480 (913 ) 29,451 Income from operations — 35 — 4,517 — 4,552 OTHER INCOME (EXPENSES): Interest income (expense), net 7 25 (785 ) (2,080 ) — (2,833 ) Loss on financial instruments, net — — — (116 ) — (116 ) Other pension benefits, net — — — 27 — 27 Other expense, net — (2 ) — (129 ) — (131 ) Equity in income of subsidiaries 1,180 1,347 2,132 — (4,659 ) — 1,187 1,370 1,347 (2,298 ) (4,659 ) (3,053 ) Income before income taxes 1,187 1,405 1,347 2,219 (4,659 ) 1,499 Income tax expense (233 ) (10 ) — (86 ) — (329 ) Consolidated net income 954 1,395 1,347 2,133 (4,659 ) 1,170 Less: Net income attributable to noncontrolling interests — (215 ) — (1 ) — (216 ) Net income $ 954 $ 1,180 $ 1,347 $ 2,132 $ (4,659 ) $ 954 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Operations For the nine months ended September 30, 2018 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated REVENUES $ 37 $ 844 $ — $ 32,390 $ (868 ) $ 32,403 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 37 810 — 20,742 (868 ) 20,721 Depreciation and amortization — 8 — 7,776 — 7,784 Other operating expenses, net — 4 — 112 — 116 37 822 — 28,630 (868 ) 28,621 Income from operations — 22 — 3,760 — 3,782 OTHER INCOME (EXPENSES): Interest income (expense), net 7 21 (762 ) (1,896 ) — (2,630 ) Other pension benefits, net — — — 247 — 247 Other expense, net — (26 ) — (49 ) — (75 ) Equity in income of subsidiaries 1,085 1,286 2,048 — (4,419 ) — 1,092 1,281 1,286 (1,698 ) (4,419 ) (2,458 ) Income before income taxes 1,092 1,303 1,286 2,062 (4,419 ) 1,324 Income tax expense (158 ) (7 ) — (13 ) — (178 ) Consolidated net income 934 1,296 1,286 2,049 (4,419 ) 1,146 Less: Net income attributable to noncontrolling interests — (211 ) — (1 ) — (212 ) Net income $ 934 $ 1,085 $ 1,286 $ 2,048 $ (4,419 ) $ 934 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Comprehensive Income For the nine months ended September 30, 2018 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated Consolidated net income $ 934 $ 1,296 $ 1,286 $ 2,049 $ (4,419 ) $ 1,146 Foreign currency translation adjustment (1 ) (1 ) (1 ) (1 ) 3 (1 ) Consolidated comprehensive income $ 933 $ 1,295 $ 1,285 $ 2,048 $ (4,416 ) $ 1,145 Less: Comprehensive income attributable to noncontrolling interests — (211 ) — (1 ) — (212 ) Comprehensive income $ 933 $ 1,084 $ 1,285 $ 2,047 $ (4,416 ) $ 933 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Cash Flows For the nine months ended September 30, 2019 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated NET CASH FLOWS FROM OPERATING ACTIVITIES $ (22 ) $ 65 $ (762 ) $ 9,109 $ — $ 8,390 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — (67 ) — (4,913 ) 67 (4,913 ) Change in accrued expenses related to capital expenditures — — — (449 ) — (449 ) Real estate investments through variable interest entities — (125 ) — — — (125 ) Contributions to subsidiaries (117 ) (54 ) (1,559 ) — 1,730 — Distributions from subsidiaries 4,601 5,222 5,988 — (15,811 ) — Other, net — (8 ) — 85 (67 ) 10 Net cash flows from investing activities 4,484 4,968 4,429 (5,277 ) (14,081 ) (5,477 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — 1,515 11,642 — 13,157 Repayments of long-term debt — — — (10,886 ) — (10,886 ) Payments for debt issuance costs — — (14 ) (34 ) — (48 ) Purchase of treasury stock (4,568 ) — — — — (4,568 ) Proceeds from exercise of stock options 106 — — — — 106 Purchase of noncontrolling interest — (593 ) — — — (593 ) Distributions to noncontrolling interest — (114 ) — (2 ) — (116 ) Contributions from parent — 117 54 1,559 (1,730 ) — Distributions to parent — (4,601 ) (5,222 ) (5,988 ) 15,811 — Other, net — — — (133 ) — (133 ) Net cash flows from financing activities (4,462 ) (5,191 ) (3,667 ) (3,842 ) 14,081 (3,081 ) NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH — (158 ) — (10 ) — (168 ) CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period — 465 — 300 — 765 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period $ — $ 307 $ — $ 290 $ — $ 597 Charter Communications, Inc. and Subsidiaries Condensed Consolidating Statements of Cash Flows For the nine months ended September 30, 2018 Non-Guarantor Subsidiaries Guarantor Subsidiaries Charter Intermediate Holding Companies CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations Charter Consolidated NET CASH FLOWS FROM OPERATING ACTIVITIES $ 4 $ 91 $ (728 ) $ 9,232 $ — $ 8,599 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — — — (6,692 ) — (6,692 ) Change in accrued expenses related to capital expenditures — — — (620 ) — (620 ) Real estate investments through variable interest entities — (15 ) — — — (15 ) Contribution to subsidiaries (56 ) (127 ) (127 ) — 310 — Distributions from subsidiaries 3,217 3,763 4,491 — (11,471 ) — Other, net — (10 ) — (93 ) — (103 ) Net cash flows from investing activities 3,161 3,611 4,364 (7,405 ) (11,161 ) (7,430 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — — — 11,552 — 11,552 Repayments of long-term debt — — — (8,964 ) — (8,964 ) Borrowings (repayments) loans payable - related parties (7 ) — — 7 — — Payments for debt issuance costs — — — (29 ) — (29 ) Purchase of treasury stock (3,214 ) — — — — (3,214 ) Proceeds from exercise of stock options 56 — — — — 56 Purchase of noncontrolling interest — (473 ) — — — (473 ) Distributions to noncontrolling interest — (113 ) — (1 ) — (114 ) Contributions from parent — 56 127 127 (310 ) — Distributions to parent — (3,217 ) (3,763 ) (4,491 ) 11,471 — Borrowings for real estate investments through variable interest entities — 170 — — — 170 Distributions to variable interest entities noncontrolling interest — (107 ) — — — (107 ) Other, net — — — (7 ) — (7 ) Net cash flows from financing activities (3,165 ) (3,684 ) (3,636 ) (1,806 ) 11,161 (1,130 ) NET INCRASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH — 18 — 21 — 39 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period — 291 — 330 — 621 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period $ — $ 309 $ — $ 351 $ — $ 660 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Organization and Basis of Presentation [Abstract] | |
Number of reportable segments | 1 |
Franchises, Goodwill and Othe_3
Franchises, Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Indefinite-lived Intangible Assets: | |||||
Goodwill | $ 29,554 | $ 29,554 | $ 29,554 | ||
Indefinite-lived intangible assets and goodwill | 97,035 | 97,035 | 97,032 | ||
Finite-lived Intangible Assets: | |||||
Gross Carrying Amount | 18,635 | 18,635 | 18,638 | ||
Accumulated Amortization | (10,385) | (10,385) | (8,756) | ||
Net Carrying Amount | 8,250 | 8,250 | 9,882 | ||
Amortization expense | 516 | $ 583 | 1,600 | $ 1,800 | |
Three months ended December 31, 2019 | 514 | 514 | |||
2020 | 1,875 | 1,875 | |||
2021 | 1,599 | 1,599 | |||
2022 | 1,329 | 1,329 | |||
2023 | 1,072 | 1,072 | |||
Thereafter | 1,861 | 1,861 | |||
Franchises | |||||
Indefinite-lived Intangible Assets: | |||||
Indefinite-lived intangible assets | 67,322 | 67,322 | 67,319 | ||
Trademarks | |||||
Indefinite-lived Intangible Assets: | |||||
Indefinite-lived intangible assets | 159 | 159 | 159 | ||
Customer relationships | |||||
Finite-lived Intangible Assets: | |||||
Gross Carrying Amount | 18,230 | 18,230 | 18,229 | ||
Accumulated Amortization | (10,274) | (10,274) | (8,664) | ||
Net Carrying Amount | 7,956 | 7,956 | 9,565 | ||
Other intangible assets | |||||
Finite-lived Intangible Assets: | |||||
Gross Carrying Amount | 405 | 405 | 409 | ||
Accumulated Amortization | (111) | (111) | (92) | ||
Net Carrying Amount | $ 294 | $ 294 | $ 317 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | |||
RESTRICTED CASH | $ 89 | $ 214 | |
Borrowings for real estate investments through variable interest entities | 0 | $ 170 | |
Distributions to variable interest entities noncontrolling interest | 0 | 107 | |
Real estate investment through variable interest entity | 125 | 15 | |
Impairment on equity method investment [Abstract] | |||
Impairment on equity investments | 121 | 58 | |
Current assets | |||
Variable Interest Entity [Line Items] | |||
VIE assets | 2 | 2 | |
Restricted cash | |||
Variable Interest Entity [Line Items] | |||
RESTRICTED CASH | 89 | 214 | |
Property, plant and equipment | |||
Variable Interest Entity [Line Items] | |||
VIE assets | 266 | 130 | |
Current liabilities | |||
Variable Interest Entity [Line Items] | |||
Current liabilities | 7 | 0 | |
Other long-term liabilities | |||
Variable Interest Entity [Line Items] | |||
Other long-term liabilities | $ 350 | 346 | |
Single-asset special purpose entity (SPE) [Member] | |||
Variable Interest Entity [Line Items] | |||
Stated interest rate (percentage) | 5.612% | ||
Decrease in restricted cash | $ 125 | $ 48 | |
Mortgage note liability [Member] | |||
Variable Interest Entity [Line Items] | |||
Other long-term liabilities | 341 | 342 | |
Noncontrolling Interests | |||
Variable Interest Entity [Line Items] | |||
Other long-term liabilities | $ 9 | $ 4 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Accounts payable – trade | $ 663 | $ 758 |
Deferred revenue | 526 | 494 |
Accrued liabilities: | ||
Programming costs | 2,064 | 2,044 |
Labor | 1,005 | 1,052 |
Capital expenditures | 973 | 1,472 |
Interest | 943 | 1,045 |
Taxes and regulatory fees | 575 | 526 |
Property and casualty | 464 | 424 |
Other | 1,050 | 990 |
Total accounts payable and accrued liabilities | $ 8,263 | $ 8,805 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Operating lease expense (a) | $ 105 | $ 321 | |
Amortization of right-of-use assets | 3 | 10 | |
Interest on lease liabilities | 1 | 4 | |
Total finance lease expense | 4 | 14 | |
Sublease income | (6) | (20) | |
Total lease related expenses, net | 103 | 315 | |
short term leases and variable leases costs | 31 | 96 | |
Operating cash flows from operating leases | 219 | ||
Operating cash flows from finance leases | 4 | ||
Financing cash flows from finance leases | 5 | ||
Operating leases | 209 | ||
Finance leases | 27 | ||
OPERATING LEASE RIGHT-OF-USE ASSETS | 1,103 | 1,103 | $ 0 |
Operating lease liabilities | 210 | 210 | 0 |
LONG-TERM OPERATING LEASE LIABILITIES | 991 | 991 | 0 |
Total operating lease liabilities | 1,201 | 1,201 | |
Finance Lease Right-of-Use Asset | 165 | 165 | |
Current finance lease liabilities (included within accounts payable and accrued liabilities) | 7 | 7 | |
Long-term finance lease liabilities (included within other long-term liabilities) | 51 | 51 | |
Total finance lease liabilities | $ 58 | $ 58 | |
Weighted average remaining operating lease term (in years) | 6 years 9 months 18 days | 6 years 9 months 18 days | |
Weighted average remaining finance lease term (in years) | 16 years 3 months 18 days | 16 years 3 months 18 days | |
Weighted average discount rate - operating leases (percentage) | 4.50% | 4.50% | |
Weighted average discount rate - finance leases (percentage) | 5.70% | 5.70% | |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |||
Three months ended December 31, 2019 | $ 71 | $ 71 | |
2020 | 280 | 280 | |
2021 | 247 | 247 | |
2022 | 210 | 210 | |
2023 | 182 | 182 | |
Thereafter | 526 | 526 | |
Undiscounted lease cash flow commitments | 1,516 | 1,516 | |
Reconciling impact from discounting | (315) | (315) | |
Finance Lease, Liability, Payment, Due [Abstract] | |||
Three months ended December 31, 2019 | 1 | 1 | |
2020 | 6 | 6 | |
2021 | 6 | 6 | |
2022 | 6 | 6 | |
2023 | 5 | 5 | |
Thereafter | 59 | 59 | |
Undiscounted lease cash flow commitments | 83 | 83 | |
Reconciling impact from discounting finance lease liabilities | $ (25) | $ (25) | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2019 | 286 | ||
2020 | 254 | ||
2021 | 207 | ||
2022 | 170 | ||
2023 | 143 | ||
Thereafter | 440 | ||
Operating Leases, Future Minimum Payments Due | 1,500 | ||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2019 | 10 | ||
2020 | 9 | ||
2021 | 9 | ||
2022 | 9 | ||
2023 | 10 | ||
Thereafter | 64 | ||
Capital Leases, Future Minimum Payments Due | $ 111 |
Long-Term Debt (Details)
Long-Term Debt (Details) £ in Millions, $ in Millions | 1 Months Ended | 9 Months Ended | |||||||
Oct. 31, 2019 | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Oct. 24, 2019USD ($) | Oct. 01, 2019USD ($) | Sep. 30, 2019GBP (£) | Jul. 01, 2019USD ($) | May 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
Long-term Debt: | |||||||||
Principal Amount | $ 74,202 | $ 71,961 | |||||||
Accreted Value | 74,899 | 72,827 | |||||||
Accreted value, current portion | (3,509) | (3,290) | |||||||
Principal amount, noncurrent portion | 70,702 | 68,711 | |||||||
Accreted value, noncurrent portion | 71,390 | 69,537 | |||||||
Credit facilities | |||||||||
Long-term Debt: | |||||||||
Accreted Value | 10,759 | 9,959 | |||||||
CCO Holdings | |||||||||
Long-term Debt: | |||||||||
Accreted value, current portion | 0 | 0 | |||||||
Accreted value, noncurrent portion | 20,249 | 18,730 | |||||||
CCO Holdings | 5.250% senior notes due March 15, 2021 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | 500 | 500 | |||||||
Accreted Value | 499 | 498 | |||||||
CCO Holdings | 5.250% senior notes due September 30, 2022 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | 1,250 | 1,250 | |||||||
Accreted Value | $ 1,240 | 1,238 | |||||||
Stated interest rate (percentage) | 5.25% | 5.25% | |||||||
CCO Holdings | 5.125% senior notes due February 15, 2023 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 1,000 | 1,000 | |||||||
Accreted Value | $ 995 | 994 | |||||||
Stated interest rate (percentage) | 5.125% | 5.125% | |||||||
CCO Holdings | 4.000% senior notes due March 1, 2023 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 500 | 500 | |||||||
Accreted Value | $ 497 | 496 | |||||||
Stated interest rate (percentage) | 4.00% | 4.00% | |||||||
CCO Holdings | 5.125% senior notes due May 1, 2023 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 1,150 | 1,150 | |||||||
Accreted Value | $ 1,145 | 1,144 | |||||||
Stated interest rate (percentage) | 5.125% | 5.125% | |||||||
CCO Holdings | 5.750% senior notes due September 1, 2023 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 500 | 500 | |||||||
Accreted Value | $ 497 | 497 | |||||||
Stated interest rate (percentage) | 5.75% | 5.75% | |||||||
CCO Holdings | 5.750% senior notes due January 15, 2024 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 1,000 | 1,000 | |||||||
Accreted Value | 994 | 993 | |||||||
CCO Holdings | 5.875% senior notes due April 1, 2024 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | 1,700 | 1,700 | |||||||
Accreted Value | $ 1,690 | 1,688 | |||||||
Stated interest rate (percentage) | 5.875% | 5.875% | |||||||
CCO Holdings | 5.375% senior notes due May 1, 2025 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 750 | 750 | |||||||
Accreted Value | $ 746 | 745 | |||||||
Stated interest rate (percentage) | 5.375% | 5.375% | |||||||
CCO Holdings | 5.750% senior notes due February 15, 2026 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 2,500 | 2,500 | |||||||
Accreted Value | $ 2,470 | 2,467 | |||||||
Stated interest rate (percentage) | 5.75% | 5.75% | |||||||
CCO Holdings | 5.500% senior notes due May 1, 2026 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 1,500 | 1,500 | |||||||
Accreted Value | $ 1,491 | 1,490 | |||||||
Stated interest rate (percentage) | 5.50% | 5.50% | |||||||
CCO Holdings | 5.875% senior notes due May 1, 2027 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 800 | 800 | |||||||
Accreted Value | $ 795 | 795 | |||||||
Stated interest rate (percentage) | 5.875% | 5.875% | |||||||
CCO Holdings | 5.125% senior notes due May 1, 2027 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 3,250 | 3,250 | |||||||
Accreted Value | $ 3,221 | 3,219 | |||||||
Stated interest rate (percentage) | 5.125% | 5.125% | |||||||
CCO Holdings | 5.000% senior notes due February 1, 2028 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 2,500 | 2,500 | |||||||
Accreted Value | $ 2,468 | 2,466 | |||||||
Stated interest rate (percentage) | 5.00% | 5.00% | |||||||
CCO Holdings | 5.375% senior notes due June 1, 2029 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 1,500 | $ 750 | $ 750 | 0 | |||||
Accreted Value | $ 1,501 | 0 | |||||||
Stated interest rate (percentage) | 5.375% | 5.375% | |||||||
Debt instrument issue price (percentage) | 102.00% | ||||||||
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% | ||||||||
Charter Operating [Member] | 3.579% senior notes due July 23, 2020 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 2,000 | 2,000 | |||||||
Accreted Value | 1,996 | 1,992 | |||||||
Principal amount, current portion | (2,000) | 0 | |||||||
Accreted value, current portion | $ (1,996) | 0 | |||||||
Stated interest rate (percentage) | 3.579% | 3.579% | |||||||
Charter Operating [Member] | 4.464% senior notes due July 23, 2022 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 3,000 | 3,000 | |||||||
Accreted Value | $ 2,985 | 2,982 | |||||||
Stated interest rate (percentage) | 4.464% | 4.464% | |||||||
Charter Operating [Member] | Senior floating rate notes due February 1, 2024 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 900 | 900 | |||||||
Accreted Value | 902 | 903 | |||||||
Charter Operating [Member] | 4.500% senior notes due February 1, 2024 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | 1,100 | 1,100 | |||||||
Accreted Value | $ 1,092 | 1,091 | |||||||
Stated interest rate (percentage) | 4.50% | 4.50% | |||||||
Charter Operating [Member] | 4.908% senior notes due July 23, 2025 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 4,500 | 4,500 | |||||||
Accreted Value | $ 4,470 | 4,466 | |||||||
Stated interest rate (percentage) | 4.908% | 4.908% | |||||||
Charter Operating [Member] | 3.750% senior notes due February 15, 2028 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 1,000 | 1,000 | |||||||
Accreted Value | $ 987 | 986 | |||||||
Stated interest rate (percentage) | 3.75% | 3.75% | |||||||
Charter Operating [Member] | 4.200% senior notes due March 15, 2028 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 1,250 | 1,250 | |||||||
Accreted Value | $ 1,240 | 1,240 | |||||||
Stated interest rate (percentage) | 4.20% | 4.20% | |||||||
Charter Operating [Member] | 5.050% senior notes due March 30, 2029 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 1,250 | 0 | |||||||
Accreted Value | $ 1,241 | 0 | |||||||
Stated interest rate (percentage) | 5.05% | 5.05% | |||||||
Charter Operating [Member] | 6.384% senior notes due October 23, 2035 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 2,000 | 2,000 | |||||||
Accreted Value | $ 1,982 | 1,982 | |||||||
Stated interest rate (percentage) | 6.384% | 6.384% | |||||||
Charter Operating [Member] | 5.375% senior notes due April 1, 2038 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 800 | 800 | |||||||
Accreted Value | $ 786 | 785 | |||||||
Stated interest rate (percentage) | 5.375% | 5.375% | |||||||
Charter Operating [Member] | 6.484% senior notes due October 23, 2045 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 3,500 | 3,500 | |||||||
Accreted Value | $ 3,467 | 3,467 | |||||||
Stated interest rate (percentage) | 6.484% | 6.484% | |||||||
Charter Operating [Member] | 5.375% senior notes due May 1, 2047 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 2,500 | 2,500 | |||||||
Accreted Value | $ 2,506 | 2,506 | |||||||
Stated interest rate (percentage) | 5.375% | 5.375% | |||||||
Charter Operating [Member] | 5.750% senior notes due April 1, 2048 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 2,450 | 1,700 | |||||||
Accreted Value | $ 2,391 | 1,683 | |||||||
Stated interest rate (percentage) | 5.75% | 5.75% | |||||||
Charter Operating [Member] | 5.125% senior notes due July 1, 2049 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 1,250 | 0 | |||||||
Accreted Value | $ 1,240 | 0 | |||||||
Stated interest rate (percentage) | 5.125% | 5.125% | 5.125% | ||||||
Debt instrument issue price (percentage) | 99.88% | ||||||||
Charter Operating [Member] | 6.834% senior notes due October 23, 2055 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 500 | 500 | |||||||
Accreted Value | $ 495 | 495 | |||||||
Stated interest rate (percentage) | 6.834% | 6.834% | |||||||
Charter Operating [Member] | Credit facilities | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 10,834 | 10,038 | |||||||
Accreted Value | 10,759 | 9,959 | |||||||
Charter Operating [Member] | Revolving Credit Facility | |||||||||
Long-term Debt: | |||||||||
Availability under credit facilities | 4,300 | ||||||||
Revolving loan borrowing capacity | $ 4,500 | ||||||||
Time Warner Cable [Member] | 8.750% senior notes due February 14, 2019 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | 0 | 1,250 | |||||||
Accreted Value | 0 | 1,260 | |||||||
Principal amount, current portion | 0 | (1,250) | |||||||
Accreted value, current portion | $ 0 | (1,260) | |||||||
Stated interest rate (percentage) | 8.75% | 8.75% | |||||||
Time Warner Cable [Member] | 8.250% senior notes due April 1, 2019 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 0 | 2,000 | |||||||
Accreted Value | 0 | 2,030 | |||||||
Principal amount, current portion | 0 | (2,000) | |||||||
Accreted value, current portion | $ 0 | (2,030) | |||||||
Stated interest rate (percentage) | 8.25% | 8.25% | |||||||
Time Warner Cable [Member] | 5.000% senior notes due February 1, 2020 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 1,500 | 1,500 | |||||||
Accreted Value | 1,513 | 1,541 | |||||||
Principal amount, current portion | (1,500) | 0 | |||||||
Accreted value, current portion | $ (1,513) | 0 | |||||||
Stated interest rate (percentage) | 5.00% | 5.00% | |||||||
Time Warner Cable [Member] | 4.125% senior notes due February 15, 2021 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 700 | 700 | |||||||
Accreted Value | $ 714 | 721 | |||||||
Stated interest rate (percentage) | 4.125% | 4.125% | |||||||
Time Warner Cable [Member] | 4.000% senior notes due September 1, 2021 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 1,000 | 1,000 | |||||||
Accreted Value | $ 1,024 | 1,033 | |||||||
Stated interest rate (percentage) | 4.00% | 4.00% | |||||||
Time Warner Cable [Member] | 5.750% sterling senior notes due June 2, 2031 (a) | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 769 | £ 625 | 796 | ||||||
Accreted Value | $ 823 | 855 | |||||||
Stated interest rate (percentage) | 5.75% | 5.75% | |||||||
Time Warner Cable [Member] | 6.550% senior debentures due May 1, 2037 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 1,500 | 1,500 | |||||||
Accreted Value | $ 1,676 | 1,680 | |||||||
Stated interest rate (percentage) | 6.55% | 6.55% | |||||||
Time Warner Cable [Member] | 7.300% senior debentures due July 1, 2038 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 1,500 | 1,500 | |||||||
Accreted Value | $ 1,774 | 1,780 | |||||||
Stated interest rate (percentage) | 7.30% | 7.30% | |||||||
Time Warner Cable [Member] | 6.750% senior debentures due June 15, 2039 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 1,500 | 1,500 | |||||||
Accreted Value | $ 1,714 | 1,719 | |||||||
Stated interest rate (percentage) | 6.75% | 6.75% | |||||||
Time Warner Cable [Member] | 5.875% senior debentures due November 15, 2040 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 1,200 | 1,200 | |||||||
Accreted Value | $ 1,255 | 1,256 | |||||||
Stated interest rate (percentage) | 5.875% | 5.875% | |||||||
Time Warner Cable [Member] | 5.500% senior debentures due September 1, 2041 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 1,250 | 1,250 | |||||||
Accreted Value | $ 1,258 | 1,258 | |||||||
Stated interest rate (percentage) | 5.50% | 5.50% | |||||||
Time Warner Cable [Member] | 5.250% sterling senior notes due July 15, 2042 (b) | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 799 | £ 650 | 827 | ||||||
Accreted Value | $ 771 | 798 | |||||||
Stated interest rate (percentage) | 5.25% | 5.25% | |||||||
Time Warner Cable [Member] | 4.500% senior debentures due September 15, 2042 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 1,250 | 1,250 | |||||||
Accreted Value | $ 1,142 | 1,140 | |||||||
Stated interest rate (percentage) | 4.50% | 4.50% | |||||||
Time Warner Cable Enterprises [Member] | 8.375% senior debentures due March 15, 2023 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 1,000 | 1,000 | |||||||
Accreted Value | $ 1,159 | 1,191 | |||||||
Stated interest rate (percentage) | 8.375% | 8.375% | |||||||
Time Warner Cable Enterprises [Member] | 8.375% senior debentures due July 15, 2033 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 1,000 | 1,000 | |||||||
Accreted Value | $ 1,288 | $ 1,298 | |||||||
Stated interest rate (percentage) | 8.375% | 8.375% | |||||||
Subsequent Event [Member] | CCO Holdings | 5.250% senior notes due March 15, 2021 | |||||||||
Long-term Debt: | |||||||||
Stated interest rate (percentage) | 5.25% | ||||||||
Debt Instrument, Repurchased Face Amount | $ 500 | ||||||||
Subsequent Event [Member] | CCO Holdings | 5.750% senior notes due January 15, 2024 | |||||||||
Long-term Debt: | |||||||||
Stated interest rate (percentage) | 5.75% | ||||||||
Debt Instrument, Repurchased Face Amount | $ 850 | ||||||||
Subsequent Event [Member] | CCO Holdings | 4.750% senior notes due March 1, 2030 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 500 | $ 1,350 | |||||||
Stated interest rate (percentage) | 4.75% | ||||||||
Debt instrument issue price (percentage) | 101.25% | ||||||||
Subsequent Event [Member] | Charter Operating [Member] | Revolving Credit Facility | |||||||||
Long-term Debt: | |||||||||
LIBOR spread | 1.25% | ||||||||
Subsequent Event [Member] | Charter Operating [Member] | 4.800% senior notes due March 1, 2050 | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 1,500 | ||||||||
Stated interest rate (percentage) | 4.80% | ||||||||
Debt instrument issue price (percentage) | 99.436% | ||||||||
Subsequent Event [Member] | Charter Operating [Member] | Term Loan A | |||||||||
Long-term Debt: | |||||||||
Principal Amount | 4,000 | ||||||||
LIBOR spread | 1.25% | ||||||||
Subsequent Event [Member] | Charter Operating [Member] | Term Loan B | |||||||||
Long-term Debt: | |||||||||
Principal Amount | $ 3,800 | ||||||||
LIBOR spread | 1.75% |
Common Stock (Details)
Common Stock (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Class of Stock [Line Items] | ||||||||
Treasury stock acquired (shares) | 7,016,929 | 3,067,834 | 12,343,135 | 10,574,233 | ||||
Value of treasury stock shares repurchased/withheld | $ 2,767 | $ 861 | $ 940 | $ 933 | $ 1,664 | $ 617 | $ 4,568 | $ 3,214 |
Remaining authorized repurchase amount | $ 1,400 | $ 1,400 | ||||||
Share buybacks | ||||||||
Class of Stock [Line Items] | ||||||||
Treasury stock acquired (shares) | 6,894,762 | 3,046,346 | 11,757,758 | 10,349,639 | ||||
Value of treasury stock shares repurchased/withheld | $ 2,748 | $ 929 | $ 4,455 | $ 3,142 | ||||
Income tax withholding | ||||||||
Class of Stock [Line Items] | ||||||||
Treasury stock acquired (shares) | 46,691 | 12,703 | 324,731 | 209,394 | ||||
Value of treasury stock shares repurchased/withheld | $ 19 | $ 4 | $ 113 | $ 72 | ||||
Exercise cost | ||||||||
Class of Stock [Line Items] | ||||||||
Treasury stock acquired (shares) | 75,476 | 8,785 | 260,646 | 15,200 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Noncontrolling Interests: | ||||||||
Net income attributable to noncontrolling interest | $ 80 | $ 91 | $ 216 | $ 212 | ||||
Distributions to noncontrolling interest | 38 | $ 39 | $ 39 | 38 | $ 37 | $ 39 | ||
Purchase of noncontrolling interest, net of tax | (308) | (148) | (89) | (139) | (192) | (118) | ||
Change in noncontrolling interest ownership, net of tax | $ (22) | (6) | (7) | (3) | (5) | (6) | ||
Common Noncontrolling Interest | ||||||||
Noncontrolling Interests: | ||||||||
Ownership percentage held by noncontrolling interest (percentage) | 8.00% | 8.00% | ||||||
Net income attributable to noncontrolling interest | $ 43 | $ 54 | $ 103 | $ 99 | ||||
Purchase of noncontrolling interest (shares) | 864,826 | 495,447 | 1,615,561 | 1,546,475 | ||||
Purchase of noncontrolling interest (price per share) | $ 391.62 | $ 292.81 | $ 366.76 | $ 306.11 | ||||
Purchase price of noncontrolling interest | $ 339 | $ 145 | $ 593 | $ 473 | ||||
Preferred Noncontrolling Interest | ||||||||
Noncontrolling Interests: | ||||||||
Distributions to noncontrolling interest | 37 | 37 | 112 | 112 | ||||
Noncontrolling Interests | ||||||||
Noncontrolling Interests: | ||||||||
Distributions to noncontrolling interest | 38 | 39 | 39 | 38 | 37 | 39 | ||
Purchase of noncontrolling interest, net of tax | (215) | (111) | (74) | (122) | (164) | (90) | ||
Change in noncontrolling interest ownership, net of tax | (87) | (23) | (29) | (10) | (23) | (20) | (139) | (53) |
Noncontrolling Interests | Common Noncontrolling Interest | ||||||||
Noncontrolling Interests: | ||||||||
Purchase of noncontrolling interest, net of tax | (215) | (122) | (400) | (376) | ||||
Additional Paid-in Capital | ||||||||
Noncontrolling Interests: | ||||||||
Distributions to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 0 | ||
Purchase of noncontrolling interest, net of tax | (93) | (37) | (15) | (17) | (28) | (28) | ||
Change in noncontrolling interest ownership, net of tax | 65 | $ 17 | $ 22 | 7 | $ 18 | $ 14 | 104 | 39 |
Additional Paid-in Capital | Common Noncontrolling Interest | ||||||||
Noncontrolling Interests: | ||||||||
Impact of noncontrolling interest purchased | $ (93) | $ (17) | $ (145) | $ (73) | ||||
Maximum | ||||||||
Noncontrolling Interests: | ||||||||
Minority Interest Ownership Percentage Threshold | 100.00% | 100.00% |
Accounting for Derivative Ins_4
Accounting for Derivative Instruments and Hedging Activities (Details) £ in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019GBP (£) | Dec. 31, 2018USD ($) | |
Derivatives: | ||||||
collateral cap term | 10 years | |||||
Collateral cap, percentage of position covered | 40.00% | 40.00% | 40.00% | |||
Maximum amount of collateral required to be posted | $ 150 | $ 150 | ||||
Gain (loss) on financial instruments, net: | ||||||
Change in fair value of cross-currency derivative instruments | (86) | $ (10) | (172) | $ (63) | ||
Foreign currency remeasurement of Sterling Notes to U.S. dollars | 52 | 22 | 56 | 63 | ||
Gain (loss) on financial instruments, net | $ (34) | $ 12 | $ (116) | $ 0 | ||
Cross Currency Derivatives | ||||||
Derivatives: | ||||||
Notional amount | £ | £ 1,275 | |||||
Collateral holiday agreement, percentage of position covered | 60.00% | 60.00% | 60.00% | |||
Collateral holiday agreement, term | 3 years | |||||
Level 2 | Cross Currency Derivatives | ||||||
Derivatives: | ||||||
Derivative Liability | $ 409 | $ 409 | $ 237 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value Measurements: | ||
Carrying Value | $ 74,899 | $ 72,827 |
Senior notes and debentures | ||
Fair Value Measurements: | ||
Carrying Value | 64,140 | 62,868 |
Credit facilities | ||
Fair Value Measurements: | ||
Carrying Value | 10,759 | 9,959 |
Level 1 | Senior notes and debentures | ||
Fair Value Measurements: | ||
Fair Value | 69,315 | 61,087 |
Level 2 | Credit facilities | ||
Fair Value Measurements: | ||
Fair Value | 10,842 | 9,608 |
Cross Currency Derivatives | Level 2 | ||
Fair Value Measurements: | ||
Derivative Liability | $ 409 | $ 237 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Product Information [Line Items] | ||||
REVENUES | $ 11,450 | $ 10,892 | $ 34,003 | $ 32,403 |
Video | ||||
Product Information [Line Items] | ||||
REVENUES | 4,359 | 4,332 | 13,134 | 12,987 |
Internet | ||||
Product Information [Line Items] | ||||
REVENUES | 4,195 | 3,809 | 12,322 | 11,286 |
Voice | ||||
Product Information [Line Items] | ||||
REVENUES | 477 | 512 | 1,470 | 1,599 |
Residential revenue | ||||
Product Information [Line Items] | ||||
REVENUES | 9,031 | 8,653 | 26,926 | 25,872 |
Small and medium business | ||||
Product Information [Line Items] | ||||
REVENUES | 974 | 922 | 2,882 | 2,737 |
Enterprise | ||||
Product Information [Line Items] | ||||
REVENUES | 644 | 632 | 1,939 | 1,881 |
Commercial revenue | ||||
Product Information [Line Items] | ||||
REVENUES | 1,618 | 1,554 | 4,821 | 4,618 |
Advertising sales | ||||
Product Information [Line Items] | ||||
REVENUES | 394 | 440 | 1,134 | 1,223 |
Mobile | ||||
Product Information [Line Items] | ||||
REVENUES | 192 | 17 | 490 | 17 |
Other | ||||
Product Information [Line Items] | ||||
REVENUES | $ 215 | $ 228 | $ 632 | $ 673 |
Operating Costs and Expenses (D
Operating Costs and Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Operating Costs and Expenses [Abstract] | ||||
Programming | $ 2,790 | $ 2,778 | $ 8,482 | $ 8,333 |
Regulatory, connectivity and produced content | 612 | 546 | 1,770 | 1,639 |
Costs to service customers | 1,894 | 1,854 | 5,483 | 5,492 |
Marketing | 793 | 790 | 2,296 | 2,310 |
Mobile | 337 | 94 | 874 | 135 |
Other | 1,009 | 950 | 3,010 | 2,812 |
Operating costs and expenses (exclusive of items shown separately in the consolidated statements of operations) | $ 7,435 | $ 7,012 | $ 21,915 | $ 20,721 |
Other Operating Expenses, Net_3
Other Operating Expenses, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Operating Expenses, Net [Abstract] | ||||
Special charges, net | $ 19 | $ 14 | $ 38 | $ 125 |
(Gain) loss on sale of assets, net | (5) | 4 | 33 | (9) |
Other operating (income) expenses, net | $ 14 | 18 | $ 71 | 116 |
Merger and restructuring related costs | $ 14 | 85 | ||
Obligation charge arising from a withdrawal liability from a multi-employer pension plan | 22 | |||
Impairment charge | $ 41 |
Stock Compensation Plans (Detai
Stock Compensation Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Stock Compensation Plans: | ||||
Stock compensation expense | $ 71 | $ 71 | $ 238 | $ 213 |
Stock compensation expense recognized in merger costs | $ 5 | |||
Stock options | ||||
Stock Compensation Plans: | ||||
Stock options granted in period (shares) | 39,400 | 24,200 | 1,821,800 | 1,490,700 |
Award vesting period | 3 years | |||
Award expiration period | 10 years | |||
Unrecognized compensation cost | $ 211 | $ 211 | ||
Remaining period over which to recognize unrecognized compensation expense | 2 years | |||
Restricted stock | ||||
Stock Compensation Plans: | ||||
Awards other than stock options granted in period (shares) | 200 | 500 | 8,300 | 10,200 |
Award vesting period | 1 year | |||
Unrecognized compensation cost | $ 2 | $ 2 | ||
Remaining period over which to recognize unrecognized compensation expense | 7 months | |||
Restricted stock units | ||||
Stock Compensation Plans: | ||||
Awards other than stock options granted in period (shares) | 11,300 | 13,500 | 698,200 | 518,900 |
Award vesting period | 3 years | |||
Unrecognized compensation cost | $ 246 | $ 246 | ||
Remaining period over which to recognize unrecognized compensation expense | 2 years | |||
Legacy TWC Awards Converted May 2016 [Member] | Restricted stock units | ||||
Stock Compensation Plans: | ||||
Award vesting percentage | 50.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense | $ (126) | $ (109) | $ (329) | $ (178) | |
Unrecognized Tax Benefits | $ 186 | $ 186 | $ 180 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 28,000,000 | 30,000,000 | 29,000,000 | 31,000,000 |
Net income attributable to Charter shareholders | $ 387 | $ 493 | $ 954 | $ 934 |
Weighted average common shares outstanding, basic (shares) | 218,499,213 | 230,554,633 | 221,818,079 | 234,159,830 |
Assumed exercise or issuance of shares relating to stock plans | 3,856,654 | 3,052,781 | 3,519,905 | 3,184,094 |
Weighted average common shares outstanding, diluted (shares) | 222,355,867 | 233,607,414 | 225,337,984 | 237,343,924 |
Basic earnings per common share attributable to Charter shareholders (dollars per share) | $ 1.77 | $ 2.14 | $ 4.30 | $ 3.99 |
Diluted earnings per common share attributable to Charter shareholders (dollars per share) | $ 1.74 | $ 2.11 | $ 4.23 | $ 3.93 |
Comprehensive Income (Details)
Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||||||
Consolidated net income | $ 467 | $ 386 | $ 317 | $ 584 | $ 339 | $ 223 | $ 1,170 | $ 1,146 |
Foreign currency translation adjustment | (1) | |||||||
Consolidated comprehensive income | 1,145 | |||||||
Less: Comprehensive income attributable to noncontrolling interest | (212) | |||||||
Comprehensive income attributable to Charter shareholders | $ 933 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Related Party Transactions: | ||||
Dr. John Malone's voting interest in Liberty Broadband (percentage) | 49.00% | 49.00% | ||
Dr. John Malone's voting interest in Qurate Retail, Inc. (percentage) | 39.90% | 39.90% | ||
Cash payments received from HSN, Inc. and QVC, Inc. | $ 11 | $ 18 | $ 35 | $ 51 |
Dr. John Malone's voting interest in Discovery Communications, Inc. for election of directors (percentage) | 28.20% | 28.20% | ||
Advance Newhouse Programming Partnership's ownership percentage in Series A preferred stock of Discovery Communications, Inc. (percentage) | 100.00% | 100.00% | ||
Advance Newhouse Programming Partnership's ownership percentage in Series C preferred stock of Discovery Communications, Inc. (percentage) | 100.00% | 100.00% | ||
Advance Newhouse Programming Partnership's voting interest in Discovery Communications, Inc. for election of directors (percentage) | 24.10% | 24.10% | ||
Maximum | ||||
Related Party Transactions: | ||||
Percent of total operating costs and expenses paid to Discovery Communications, Inc. and Starz (percentage) | 2.00% | 2.00% | 2.00% | 2.00% |
Equity Method Investee | ||||
Related Party Transactions: | ||||
Payments to related parties | $ 78 | $ 99 | $ 245 | $ 248 |
Class A Common Stock | ||||
Related Party Transactions: | ||||
Dr. John Malone's ownership percentage in Discovery Communications, Inc. (percentage) | 1.20% | 1.20% | ||
Class B Common Stock | ||||
Related Party Transactions: | ||||
Dr. John Malone's ownership percentage in Discovery Communications, Inc. (percentage) | 93.60% | 93.60% | ||
Class C Common Stock | ||||
Related Party Transactions: | ||||
Dr. John Malone's ownership percentage in Discovery Communications, Inc. (percentage) | 2.60% | 2.60% |
Contingencies (Details)
Contingencies (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Loss Contingency, Damages Awarded, Value | $ 140 |
Litigation Settlement Interest | $ 6 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan [Abstract] | |||||
Interest cost | $ (32) | $ (32) | $ (96) | $ (96) | |
Expected return on plan assets | 41 | 52 | 123 | 156 | |
Remeasurement gain, net | 0 | 187 | 0 | 187 | |
Net periodic pension benefits | $ 9 | $ 207 | $ 27 | $ 247 | |
Discount Rate | 4.24% | 3.68% |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | |
Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New Accounting Pronouncement, Effect of Adoption on Total Shareholders' Equity | $ 38 | ||
Accounting Standards Update 2016-16 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New Accounting Pronouncement, Effect of Adoption on Total Shareholders' Equity | $ 31 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New Accounting Pronouncement, Effect of Adoption on Noncurrent Assets | $ 1,100 | ||
New Accounting Pronouncement, Effect of Adoption on Noncurrent Liabilities | $ 1,200 |
Condensed Consolidating Balance
Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ 508 | $ 551 | ||||||
Accounts receivable, net | 2,284 | 1,733 | ||||||
Receivables from related party | 0 | 0 | ||||||
Prepaid expenses and other current assets | 596 | 446 | ||||||
Total current assets | 3,388 | 2,730 | ||||||
RESTRICTED CASH | 89 | 214 | ||||||
INVESTMENT IN CABLE PROPERTIES: | ||||||||
Property, plant and equipment, net | 34,218 | 35,126 | ||||||
Customer relationships, net | 7,956 | 9,565 | ||||||
Franchises | 67,322 | 67,319 | ||||||
Goodwill | 29,554 | 29,554 | ||||||
Total investment in cable properties, net | 139,050 | 141,564 | ||||||
INVESTMENT IN SUBSIDIARIES | 0 | 0 | ||||||
OPERATING LEASE RIGHT-OF-USE ASSETS | 1,103 | 0 | ||||||
LOANS RECEIVABLE – RELATED PARTY | 0 | 0 | ||||||
OTHER NONCURRENT ASSETS | 1,637 | 1,622 | ||||||
Total assets | 145,267 | 146,130 | ||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable and accrued liabilities | 8,263 | 8,805 | ||||||
Operating lease liabilities | 210 | 0 | ||||||
Payables to related party | 0 | 0 | ||||||
Current portion of long-term debt | 3,509 | 3,290 | ||||||
Total current liabilities | 11,982 | 12,095 | ||||||
LONG-TERM DEBT | 71,390 | 69,537 | ||||||
LOANS PAYABLE – RELATED PARTY | 0 | 0 | ||||||
DEFERRED INCOME TAXES | 17,609 | 17,389 | ||||||
LONG-TERM OPERATING LEASE LIABILITIES | 991 | 0 | ||||||
OTHER LONG-TERM LIABILITIES | 2,773 | 2,837 | ||||||
SHAREHOLDERS’/MEMBER’S EQUITY | ||||||||
Controlling interest | 32,974 | 36,285 | ||||||
Noncontrolling interests | 7,548 | 7,987 | ||||||
Total shareholders’/member’s equity | 40,522 | $ 43,094 | $ 43,643 | 44,272 | $ 45,228 | $ 45,642 | $ 47,125 | $ 47,531 |
Total liabilities and shareholders’/member’s equity | 145,267 | 146,130 | ||||||
Eliminations | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | 0 | 0 | ||||||
Accounts receivable, net | 0 | 0 | ||||||
Receivables from related party | (544) | (602) | ||||||
Prepaid expenses and other current assets | 0 | 0 | ||||||
Total current assets | (544) | (602) | ||||||
RESTRICTED CASH | 0 | 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 | (184,316) | (193,082) | ||||||
OPERATING LEASE RIGHT-OF-USE ASSETS | 0 | |||||||
LOANS RECEIVABLE – RELATED PARTY | (1,504) | (1,451) | ||||||
OTHER NONCURRENT ASSETS | 0 | (3) | ||||||
Total assets | (186,364) | (195,138) | ||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable and accrued liabilities | 0 | 0 | ||||||
Operating lease liabilities | 0 | |||||||
Payables to related party | (544) | (602) | ||||||
Current portion of long-term debt | 0 | 0 | ||||||
Total current liabilities | (544) | (602) | ||||||
LONG-TERM DEBT | 0 | 0 | ||||||
LOANS PAYABLE – RELATED PARTY | (1,504) | (1,451) | ||||||
DEFERRED INCOME TAXES | 0 | (3) | ||||||
LONG-TERM OPERATING LEASE LIABILITIES | 0 | |||||||
OTHER LONG-TERM LIABILITIES | 0 | 0 | ||||||
SHAREHOLDERS’/MEMBER’S EQUITY | ||||||||
Controlling interest | (184,316) | (193,082) | ||||||
Noncontrolling interests | 0 | 0 | ||||||
Total shareholders’/member’s equity | (184,316) | (193,082) | ||||||
Total liabilities and shareholders’/member’s equity | (186,364) | (195,138) | ||||||
Charter | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | 0 | 0 | ||||||
Accounts receivable, net | 1 | 1 | ||||||
Receivables from related party | 26 | 27 | ||||||
Prepaid expenses and other current assets | 7 | 14 | ||||||
Total current assets | 34 | 42 | ||||||
RESTRICTED CASH | 0 | 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 | 50,471 | 53,592 | ||||||
OPERATING LEASE RIGHT-OF-USE ASSETS | 0 | |||||||
LOANS RECEIVABLE – RELATED PARTY | 260 | 251 | ||||||
OTHER NONCURRENT ASSETS | 2 | 0 | ||||||
Total assets | 50,767 | 53,885 | ||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable and accrued liabilities | 26 | 9 | ||||||
Operating lease liabilities | 0 | |||||||
Payables to related party | 0 | 0 | ||||||
Current portion of long-term debt | 0 | 0 | ||||||
Total current liabilities | 26 | 9 | ||||||
LONG-TERM DEBT | 0 | 0 | ||||||
LOANS PAYABLE – RELATED PARTY | 0 | 0 | ||||||
DEFERRED INCOME TAXES | 17,542 | 17,376 | ||||||
LONG-TERM OPERATING LEASE LIABILITIES | 0 | |||||||
OTHER LONG-TERM LIABILITIES | 225 | 215 | ||||||
SHAREHOLDERS’/MEMBER’S EQUITY | ||||||||
Controlling interest | 32,974 | 36,285 | ||||||
Noncontrolling interests | 0 | 0 | ||||||
Total shareholders’/member’s equity | 32,974 | 36,285 | ||||||
Total liabilities and shareholders’/member’s equity | 50,767 | 53,885 | ||||||
Intermediate Holding Companies | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | 218 | 251 | ||||||
Accounts receivable, net | 31 | 33 | ||||||
Receivables from related party | 463 | 518 | ||||||
Prepaid expenses and other current assets | 41 | 32 | ||||||
Total current assets | 753 | 834 | ||||||
RESTRICTED CASH | 89 | 214 | ||||||
INVESTMENT IN CABLE PROPERTIES: | ||||||||
Property, plant and equipment, net | 658 | 468 | ||||||
Customer relationships, net | 0 | 0 | ||||||
Franchises | 0 | 0 | ||||||
Goodwill | 0 | 0 | ||||||
Total investment in cable properties, net | 658 | 468 | ||||||
INVESTMENT IN SUBSIDIARIES | 56,947 | 60,530 | ||||||
OPERATING LEASE RIGHT-OF-USE ASSETS | 173 | |||||||
LOANS RECEIVABLE – RELATED PARTY | 699 | 674 | ||||||
OTHER NONCURRENT ASSETS | 237 | 222 | ||||||
Total assets | 59,556 | 62,942 | ||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable and accrued liabilities | 916 | 893 | ||||||
Operating lease liabilities | 30 | |||||||
Payables to related party | 0 | 0 | ||||||
Current portion of long-term debt | 0 | 0 | ||||||
Total current liabilities | 946 | 893 | ||||||
LONG-TERM DEBT | 0 | 0 | ||||||
LOANS PAYABLE – RELATED PARTY | 0 | 0 | ||||||
DEFERRED INCOME TAXES | 15 | 16 | ||||||
LONG-TERM OPERATING LEASE LIABILITIES | 197 | |||||||
OTHER LONG-TERM LIABILITIES | 402 | 478 | ||||||
SHAREHOLDERS’/MEMBER’S EQUITY | ||||||||
Controlling interest | 50,471 | 53,592 | ||||||
Noncontrolling interests | 7,525 | 7,963 | ||||||
Total shareholders’/member’s equity | 57,996 | 61,555 | ||||||
Total liabilities and shareholders’/member’s equity | 59,556 | 62,942 | ||||||
CCO Holdings | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | 0 | 0 | ||||||
Accounts receivable, net | 0 | 0 | ||||||
Receivables from related party | 55 | 57 | ||||||
Prepaid expenses and other current assets | 0 | 0 | ||||||
Total current assets | 55 | 57 | ||||||
RESTRICTED CASH | 0 | 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 | 76,898 | 78,960 | ||||||
OPERATING LEASE RIGHT-OF-USE ASSETS | 0 | |||||||
LOANS RECEIVABLE – RELATED PARTY | 545 | 526 | ||||||
OTHER NONCURRENT ASSETS | 0 | 0 | ||||||
Total assets | 77,498 | 79,543 | ||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable and accrued liabilities | 302 | 283 | ||||||
Operating lease liabilities | 0 | |||||||
Payables to related party | 0 | 0 | ||||||
Current portion of long-term debt | 0 | 0 | ||||||
Total current liabilities | 302 | 283 | ||||||
LONG-TERM DEBT | 20,249 | 18,730 | ||||||
LOANS PAYABLE – RELATED PARTY | 0 | 0 | ||||||
DEFERRED INCOME TAXES | 0 | 0 | ||||||
LONG-TERM OPERATING LEASE LIABILITIES | 0 | |||||||
OTHER LONG-TERM LIABILITIES | 0 | 0 | ||||||
SHAREHOLDERS’/MEMBER’S EQUITY | ||||||||
Controlling interest | 56,947 | 60,530 | ||||||
Noncontrolling interests | 0 | 0 | ||||||
Total shareholders’/member’s equity | 56,947 | 60,530 | ||||||
Total liabilities and shareholders’/member’s equity | 77,498 | 79,543 | ||||||
Charter Operating and Restricted Subsidiaries | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | 290 | 300 | ||||||
Accounts receivable, net | 2,252 | 1,699 | ||||||
Receivables from related party | 0 | 0 | ||||||
Prepaid expenses and other current assets | 548 | 400 | ||||||
Total current assets | 3,090 | 2,399 | ||||||
RESTRICTED CASH | 0 | 0 | ||||||
INVESTMENT IN CABLE PROPERTIES: | ||||||||
Property, plant and equipment, net | 33,560 | 34,658 | ||||||
Customer relationships, net | 7,956 | 9,565 | ||||||
Franchises | 67,322 | 67,319 | ||||||
Goodwill | 29,554 | 29,554 | ||||||
Total investment in cable properties, net | 138,392 | 141,096 | ||||||
INVESTMENT IN SUBSIDIARIES | 0 | 0 | ||||||
OPERATING LEASE RIGHT-OF-USE ASSETS | 930 | |||||||
LOANS RECEIVABLE – RELATED PARTY | 0 | 0 | ||||||
OTHER NONCURRENT ASSETS | 1,398 | 1,403 | ||||||
Total assets | 143,810 | 144,898 | ||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable and accrued liabilities | 7,019 | 7,620 | ||||||
Operating lease liabilities | 180 | |||||||
Payables to related party | 544 | 602 | ||||||
Current portion of long-term debt | 3,509 | 3,290 | ||||||
Total current liabilities | 11,252 | 11,512 | ||||||
LONG-TERM DEBT | 51,141 | 50,807 | ||||||
LOANS PAYABLE – RELATED PARTY | 1,504 | 1,451 | ||||||
DEFERRED INCOME TAXES | 52 | 0 | ||||||
LONG-TERM OPERATING LEASE LIABILITIES | 794 | |||||||
OTHER LONG-TERM LIABILITIES | 2,146 | 2,144 | ||||||
SHAREHOLDERS’/MEMBER’S EQUITY | ||||||||
Controlling interest | 76,898 | 78,960 | ||||||
Noncontrolling interests | 23 | 24 | ||||||
Total shareholders’/member’s equity | 76,921 | 78,984 | ||||||
Total liabilities and shareholders’/member’s equity | $ 143,810 | $ 144,898 |
Condensed Consolidating Stateme
Condensed Consolidating Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Consolidating Statements of Operations | ||||||||
REVENUES | $ 11,450 | $ 10,892 | $ 34,003 | $ 32,403 | ||||
COSTS AND EXPENSES: | ||||||||
Operating costs and expenses (exclusive of items shown separately below) | 7,435 | 7,012 | 21,915 | 20,721 | ||||
Depreciation and amortization | 2,415 | 2,482 | 7,465 | 7,784 | ||||
Other operating expenses, net | 14 | 18 | 71 | 116 | ||||
Total costs and expenses | 9,864 | 9,512 | 29,451 | 28,621 | ||||
Income from operations | 1,586 | 1,380 | 4,552 | 3,782 | ||||
OTHER INCOME (EXPENSES): | ||||||||
Interest income (expense), net | (963) | (901) | (2,833) | (2,630) | ||||
Gain (loss) on financial instruments, net | (34) | 12 | (116) | 0 | ||||
Other pension benefits, net | 9 | 207 | 27 | 247 | ||||
Other expense, net | (5) | (5) | (131) | (75) | ||||
Equity in income of subsidiaries | 0 | 0 | ||||||
Total other income (expense) | (993) | (687) | (3,053) | (2,458) | ||||
Income before income taxes | 593 | 693 | 1,499 | 1,324 | ||||
Income tax expense | (126) | (109) | (329) | (178) | ||||
Consolidated net income | 467 | $ 386 | $ 317 | 584 | $ 339 | $ 223 | 1,170 | 1,146 |
Less: Net income attributable to noncontrolling interests | (80) | (91) | (216) | (212) | ||||
Net income | $ 387 | $ 493 | 954 | 934 | ||||
Eliminations | ||||||||
Condensed Consolidating Statements of Operations | ||||||||
REVENUES | (913) | (868) | ||||||
COSTS AND EXPENSES: | ||||||||
Operating costs and expenses (exclusive of items shown separately below) | (917) | (868) | ||||||
Depreciation and amortization | 0 | 0 | ||||||
Other operating expenses, net | 4 | 0 | ||||||
Total costs and expenses | (913) | (868) | ||||||
Income from operations | 0 | 0 | ||||||
OTHER INCOME (EXPENSES): | ||||||||
Interest income (expense), net | 0 | 0 | ||||||
Gain (loss) on financial instruments, net | 0 | |||||||
Other pension benefits, net | 0 | 0 | ||||||
Other expense, net | 0 | 0 | ||||||
Equity in income of subsidiaries | (4,659) | (4,419) | ||||||
Total other income (expense) | (4,659) | (4,419) | ||||||
Income before income taxes | (4,659) | (4,419) | ||||||
Income tax expense | 0 | 0 | ||||||
Consolidated net income | (4,659) | (4,419) | ||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | ||||||
Net income | (4,659) | (4,419) | ||||||
Charter | ||||||||
Condensed Consolidating Statements of Operations | ||||||||
REVENUES | 39 | 37 | ||||||
COSTS AND EXPENSES: | ||||||||
Operating costs and expenses (exclusive of items shown separately below) | 39 | 37 | ||||||
Depreciation and amortization | 0 | 0 | ||||||
Other operating expenses, net | 0 | 0 | ||||||
Total costs and expenses | 39 | 37 | ||||||
Income from operations | 0 | 0 | ||||||
OTHER INCOME (EXPENSES): | ||||||||
Interest income (expense), net | 7 | 7 | ||||||
Gain (loss) on financial instruments, net | 0 | |||||||
Other pension benefits, net | 0 | 0 | ||||||
Other expense, net | 0 | 0 | ||||||
Equity in income of subsidiaries | 1,180 | 1,085 | ||||||
Total other income (expense) | 1,187 | 1,092 | ||||||
Income before income taxes | 1,187 | 1,092 | ||||||
Income tax expense | (233) | (158) | ||||||
Consolidated net income | 954 | 934 | ||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | ||||||
Net income | 954 | 934 | ||||||
Intermediate Holding Companies | ||||||||
Condensed Consolidating Statements of Operations | ||||||||
REVENUES | 880 | 844 | ||||||
COSTS AND EXPENSES: | ||||||||
Operating costs and expenses (exclusive of items shown separately below) | 843 | 810 | ||||||
Depreciation and amortization | 12 | 8 | ||||||
Other operating expenses, net | (10) | 4 | ||||||
Total costs and expenses | 845 | 822 | ||||||
Income from operations | 35 | 22 | ||||||
OTHER INCOME (EXPENSES): | ||||||||
Interest income (expense), net | 25 | 21 | ||||||
Gain (loss) on financial instruments, net | 0 | |||||||
Other pension benefits, net | 0 | 0 | ||||||
Other expense, net | (2) | (26) | ||||||
Equity in income of subsidiaries | 1,347 | 1,286 | ||||||
Total other income (expense) | 1,370 | 1,281 | ||||||
Income before income taxes | 1,405 | 1,303 | ||||||
Income tax expense | (10) | (7) | ||||||
Consolidated net income | 1,395 | 1,296 | ||||||
Less: Net income attributable to noncontrolling interests | (215) | (211) | ||||||
Net income | 1,180 | 1,085 | ||||||
CCO Holdings | ||||||||
Condensed Consolidating Statements of Operations | ||||||||
REVENUES | 0 | 0 | ||||||
COSTS AND EXPENSES: | ||||||||
Operating costs and expenses (exclusive of items shown separately below) | 0 | 0 | ||||||
Depreciation and amortization | 0 | 0 | ||||||
Other operating expenses, net | 0 | 0 | ||||||
Total costs and expenses | 0 | 0 | ||||||
Income from operations | 0 | 0 | ||||||
OTHER INCOME (EXPENSES): | ||||||||
Interest income (expense), net | (785) | (762) | ||||||
Gain (loss) on financial instruments, net | 0 | |||||||
Other pension benefits, net | 0 | 0 | ||||||
Other expense, net | 0 | 0 | ||||||
Equity in income of subsidiaries | 2,132 | 2,048 | ||||||
Total other income (expense) | 1,347 | 1,286 | ||||||
Income before income taxes | 1,347 | 1,286 | ||||||
Income tax expense | 0 | 0 | ||||||
Consolidated net income | 1,347 | 1,286 | ||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | ||||||
Net income | 1,347 | 1,286 | ||||||
Charter Operating and Restricted Subsidiaries | ||||||||
Condensed Consolidating Statements of Operations | ||||||||
REVENUES | 33,997 | 32,390 | ||||||
COSTS AND EXPENSES: | ||||||||
Operating costs and expenses (exclusive of items shown separately below) | 21,950 | 20,742 | ||||||
Depreciation and amortization | 7,453 | 7,776 | ||||||
Other operating expenses, net | 77 | 112 | ||||||
Total costs and expenses | 29,480 | 28,630 | ||||||
Income from operations | 4,517 | 3,760 | ||||||
OTHER INCOME (EXPENSES): | ||||||||
Interest income (expense), net | (2,080) | (1,896) | ||||||
Gain (loss) on financial instruments, net | (116) | |||||||
Other pension benefits, net | 27 | 247 | ||||||
Other expense, net | (129) | (49) | ||||||
Equity in income of subsidiaries | 0 | 0 | ||||||
Total other income (expense) | (2,298) | (1,698) | ||||||
Income before income taxes | 2,219 | 2,062 | ||||||
Income tax expense | (86) | (13) | ||||||
Consolidated net income | 2,133 | 2,049 | ||||||
Less: Net income attributable to noncontrolling interests | (1) | (1) | ||||||
Net income | $ 2,132 | $ 2,048 |
Consolidating Schedules Condens
Consolidating Schedules Condensed Consolidating Statements of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Statement of Income Captions [Line Items] | ||||||||
Consolidated net income | $ 467 | $ 386 | $ 317 | $ 584 | $ 339 | $ 223 | $ 1,170 | $ 1,146 |
Foreign currency translation adjustment | (1) | |||||||
Consolidated comprehensive income | 1,145 | |||||||
Less: Comprehensive income attributable to noncontrolling interest | (212) | |||||||
Comprehensive income | 933 | |||||||
Eliminations | ||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||
Consolidated net income | (4,659) | (4,419) | ||||||
Foreign currency translation adjustment | 3 | |||||||
Consolidated comprehensive income | (4,416) | |||||||
Less: Comprehensive income attributable to noncontrolling interest | 0 | |||||||
Comprehensive income | (4,416) | |||||||
Charter | ||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||
Consolidated net income | 954 | 934 | ||||||
Foreign currency translation adjustment | (1) | |||||||
Consolidated comprehensive income | 933 | |||||||
Less: Comprehensive income attributable to noncontrolling interest | 0 | |||||||
Comprehensive income | 933 | |||||||
Intermediate Holding Companies | ||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||
Consolidated net income | 1,395 | 1,296 | ||||||
Foreign currency translation adjustment | (1) | |||||||
Consolidated comprehensive income | 1,295 | |||||||
Less: Comprehensive income attributable to noncontrolling interest | (211) | |||||||
Comprehensive income | 1,084 | |||||||
CCO Holdings | ||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||
Consolidated net income | 1,347 | 1,286 | ||||||
Foreign currency translation adjustment | (1) | |||||||
Consolidated comprehensive income | 1,285 | |||||||
Less: Comprehensive income attributable to noncontrolling interest | 0 | |||||||
Comprehensive income | 1,285 | |||||||
Charter Operating and Restricted Subsidiaries | ||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||
Consolidated net income | $ 2,133 | 2,049 | ||||||
Foreign currency translation adjustment | (1) | |||||||
Consolidated comprehensive income | 2,048 | |||||||
Less: Comprehensive income attributable to noncontrolling interest | (1) | |||||||
Comprehensive income | $ 2,047 |
Condensed Consolidating State_2
Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Consolidating Statements of Cash Flows | ||
NET CASH FLOWS FROM OPERATING ACTIVITIES | $ 8,390 | $ 8,599 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (4,913) | (6,692) |
Change in accrued expenses related to capital expenditures | (449) | (620) |
Real estate investments through variable interest entities | (125) | (15) |
Contributions to subsidiaries | 0 | 0 |
Distributions from subsidiaries | 0 | 0 |
Other, net | 10 | (103) |
Net cash flows from investing activities | (5,477) | (7,430) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 13,157 | 11,552 |
Repayments of long-term debt | (10,886) | (8,964) |
Borrowings (repayments) loans payable - related parties | 0 | |
Payments for debt issuance costs | (48) | (29) |
Purchase of treasury stock | (4,568) | (3,214) |
Proceeds from exercise of stock options | 106 | 56 |
Distributions to noncontrolling interest | (593) | (473) |
Distributions to noncontrolling interest | (116) | (114) |
Contributions from parent | 0 | 0 |
Distributions to parent | 0 | 0 |
Borrowings for real estate investments through variable interest entities | 0 | 170 |
Distributions to variable interest entities noncontrolling interest | 0 | (107) |
Other, net | (133) | (7) |
Repayments of long-term debt | (3,081) | (1,130) |
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (168) | 39 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 765 | 621 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | 597 | 660 |
Eliminations | ||
Condensed Consolidating Statements of Cash Flows | ||
NET CASH FLOWS FROM OPERATING ACTIVITIES | 0 | 0 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | 67 | 0 |
Change in accrued expenses related to capital expenditures | 0 | 0 |
Real estate investments through variable interest entities | 0 | 0 |
Contributions to subsidiaries | 1,730 | 310 |
Distributions from subsidiaries | (15,811) | (11,471) |
Other, net | (67) | 0 |
Net cash flows from investing activities | (14,081) | (11,161) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 0 | 0 |
Repayments of long-term debt | 0 | 0 |
Borrowings (repayments) loans payable - related parties | 0 | |
Payments for debt issuance costs | 0 | 0 |
Purchase of treasury stock | 0 | 0 |
Proceeds from exercise of stock options | 0 | 0 |
Distributions to noncontrolling interest | 0 | 0 |
Distributions to noncontrolling interest | 0 | 0 |
Contributions from parent | (1,730) | (310) |
Distributions to parent | 15,811 | 11,471 |
Borrowings for real estate investments through variable interest entities | 0 | |
Distributions to variable interest entities noncontrolling interest | 0 | |
Other, net | 0 | 0 |
Repayments of long-term debt | 14,081 | 11,161 |
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 0 | 0 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 0 | 0 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | 0 | 0 |
Charter | ||
Condensed Consolidating Statements of Cash Flows | ||
NET CASH FLOWS FROM OPERATING ACTIVITIES | (22) | 4 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | 0 | 0 |
Change in accrued expenses related to capital expenditures | 0 | 0 |
Real estate investments through variable interest entities | 0 | 0 |
Contributions to subsidiaries | (117) | (56) |
Distributions from subsidiaries | 4,601 | 3,217 |
Other, net | 0 | 0 |
Net cash flows from investing activities | 4,484 | 3,161 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 0 | 0 |
Repayments of long-term debt | 0 | 0 |
Borrowings (repayments) loans payable - related parties | (7) | |
Payments for debt issuance costs | 0 | 0 |
Purchase of treasury stock | (4,568) | (3,214) |
Proceeds from exercise of stock options | 106 | 56 |
Distributions to noncontrolling interest | 0 | 0 |
Distributions to noncontrolling interest | 0 | 0 |
Contributions from parent | 0 | 0 |
Distributions to parent | 0 | 0 |
Borrowings for real estate investments through variable interest entities | 0 | |
Distributions to variable interest entities noncontrolling interest | 0 | |
Other, net | 0 | 0 |
Repayments of long-term debt | (4,462) | (3,165) |
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 0 | 0 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 0 | 0 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | 0 | 0 |
Intermediate Holding Companies | ||
Condensed Consolidating Statements of Cash Flows | ||
NET CASH FLOWS FROM OPERATING ACTIVITIES | 65 | 91 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (67) | 0 |
Change in accrued expenses related to capital expenditures | 0 | 0 |
Real estate investments through variable interest entities | (125) | (15) |
Contributions to subsidiaries | (54) | (127) |
Distributions from subsidiaries | 5,222 | 3,763 |
Other, net | (8) | (10) |
Net cash flows from investing activities | 4,968 | 3,611 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 0 | 0 |
Repayments of long-term debt | 0 | 0 |
Borrowings (repayments) loans payable - related parties | 0 | |
Payments for debt issuance costs | 0 | 0 |
Purchase of treasury stock | 0 | 0 |
Proceeds from exercise of stock options | 0 | 0 |
Distributions to noncontrolling interest | (593) | (473) |
Distributions to noncontrolling interest | (114) | (113) |
Contributions from parent | 117 | 56 |
Distributions to parent | (4,601) | (3,217) |
Borrowings for real estate investments through variable interest entities | 170 | |
Distributions to variable interest entities noncontrolling interest | (107) | |
Other, net | 0 | 0 |
Repayments of long-term debt | (5,191) | (3,684) |
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (158) | 18 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 465 | 291 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | 307 | 309 |
CCO Holdings | ||
Condensed Consolidating Statements of Cash Flows | ||
NET CASH FLOWS FROM OPERATING ACTIVITIES | (762) | (728) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | 0 | 0 |
Change in accrued expenses related to capital expenditures | 0 | 0 |
Real estate investments through variable interest entities | 0 | 0 |
Contributions to subsidiaries | (1,559) | (127) |
Distributions from subsidiaries | 5,988 | 4,491 |
Other, net | 0 | 0 |
Net cash flows from investing activities | 4,429 | 4,364 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 1,515 | 0 |
Repayments of long-term debt | 0 | 0 |
Borrowings (repayments) loans payable - related parties | 0 | |
Payments for debt issuance costs | (14) | 0 |
Purchase of treasury stock | 0 | 0 |
Proceeds from exercise of stock options | 0 | 0 |
Distributions to noncontrolling interest | 0 | 0 |
Distributions to noncontrolling interest | 0 | 0 |
Contributions from parent | 54 | 127 |
Distributions to parent | (5,222) | (3,763) |
Borrowings for real estate investments through variable interest entities | 0 | |
Distributions to variable interest entities noncontrolling interest | 0 | |
Other, net | 0 | 0 |
Repayments of long-term debt | (3,667) | (3,636) |
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 0 | 0 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 0 | 0 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | 0 | 0 |
Charter Operating and Restricted Subsidiaries | ||
Condensed Consolidating Statements of Cash Flows | ||
NET CASH FLOWS FROM OPERATING ACTIVITIES | 9,109 | 9,232 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (4,913) | (6,692) |
Change in accrued expenses related to capital expenditures | (449) | (620) |
Real estate investments through variable interest entities | 0 | 0 |
Contributions to subsidiaries | 0 | 0 |
Distributions from subsidiaries | 0 | 0 |
Other, net | 85 | (93) |
Net cash flows from investing activities | (5,277) | (7,405) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 11,642 | 11,552 |
Repayments of long-term debt | (10,886) | (8,964) |
Borrowings (repayments) loans payable - related parties | 7 | |
Payments for debt issuance costs | (34) | (29) |
Purchase of treasury stock | 0 | 0 |
Proceeds from exercise of stock options | 0 | 0 |
Distributions to noncontrolling interest | 0 | 0 |
Distributions to noncontrolling interest | (2) | (1) |
Contributions from parent | 1,559 | 127 |
Distributions to parent | (5,988) | (4,491) |
Borrowings for real estate investments through variable interest entities | 0 | |
Distributions to variable interest entities noncontrolling interest | 0 | |
Other, net | (133) | (7) |
Repayments of long-term debt | (3,842) | (1,806) |
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (10) | 21 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 300 | 330 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | $ 290 | $ 351 |