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 | 001-37789 |
Entity Registrant Name | CCO Holdings, LLC |
Entity Central Index Key | 0001271833 |
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 | 86-1067239 |
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 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 1 |
CCO Holdings Capital Corp. [Member] | |
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 | 333-112593-01 |
Entity Registrant Name | CCO Holdings Capital Corp. |
Entity Central Index Key | 0001271834 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 20-0257904 |
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 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 290 | $ 300 |
Accounts receivable, less allowance for doubtful accounts of $170 and $129, respectively | 2,252 | 1,699 |
Prepaid expenses and other current assets | 548 | 400 |
Total current assets | 3,090 | 2,399 |
INVESTMENT IN CABLE PROPERTIES: | ||
Property, plant and equipment, net of accumulated depreciation of $26,306 and $23,038, respectively | 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 |
OPERATING LEASE RIGHT-OF-USE ASSETS | 930 | 0 |
OTHER NONCURRENT ASSETS | 1,398 | 1,403 |
Total assets | 143,810 | 144,898 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued liabilities | 7,321 | 7,903 |
Payables to related party | 489 | 545 |
Operating lease liabilities | 180 | 0 |
Current portion of long-term debt | 3,509 | 3,290 |
Total current liabilities | 11,499 | 11,738 |
LONG-TERM DEBT | 71,390 | 69,537 |
LOANS PAYABLE – RELATED PARTY | 959 | 925 |
DEFERRED INCOME TAXES | 52 | 0 |
LONG-TERM OPERATING LEASE LIABILITIES | 794 | 0 |
OTHER LONG-TERM LIABILITIES | 2,146 | 2,144 |
MEMBER’S EQUITY: | ||
Member's equity | 56,949 | 60,532 |
Accumulated other comprehensive loss | (2) | (2) |
Total CCO Holdings member's equity | 56,947 | 60,530 |
Noncontrolling interests | 23 | 24 |
Total member’s equity | 56,970 | 60,554 |
Total liabilities and member’s equity | $ 143,810 | $ 144,898 |
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 | $ 26,306 | $ 23,038 |
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 | $ 11,449 | $ 10,887 | $ 33,997 | $ 32,390 | ||||
COSTS AND EXPENSES: | ||||||||
Operating costs and expenses (exclusive of items shown separately below) | 7,450 | 7,018 | 21,950 | 20,742 | ||||
Depreciation and amortization | 2,411 | 2,479 | 7,453 | 7,776 | ||||
Other operating expenses, net | 18 | 18 | 77 | 112 | ||||
Total costs and expenses | 9,879 | 9,515 | 29,480 | 28,630 | ||||
Income from operations | 1,570 | 1,372 | 4,517 | 3,760 | ||||
OTHER INCOME (EXPENSES): | ||||||||
Interest expense, net | (973) | (912) | (2,865) | (2,658) | ||||
Gain (loss) on financial instruments, net | (34) | 12 | (116) | 0 | ||||
Other pension benefits, net | 9 | 207 | 27 | 247 | ||||
Other expense, net | (3) | (4) | (129) | (49) | ||||
Total other income (expense) | (1,001) | (697) | (3,083) | (2,460) | ||||
Income before income taxes | 569 | 675 | 1,434 | 1,300 | ||||
Income tax expense | (10) | (8) | (86) | (13) | ||||
Consolidated net income | 559 | $ 439 | $ 350 | 667 | $ 356 | $ 264 | 1,348 | 1,287 |
Less: Net income attributable to noncontrolling interests | 0 | 0 | (1) | (1) | ||||
Net income attributable to CCO Holdings member | $ 559 | $ 667 | $ 1,347 | $ 1,286 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN MEMBER'S EQUITY - USD ($) $ in Millions | Total | Member Units [Member] | Accumulated Other Comprehensive Loss | Total CCO Holdings Member’s Equity | Noncontrolling Interests |
Balance at Dec. 31, 2017 | $ 63,582 | $ 63,559 | $ (1) | $ 63,558 | $ 24 |
Rollforward of Consolidated Member's Equity: | |||||
Consolidated net income | 264 | 264 | 0 | 264 | 0 |
Stock compensation expense | 72 | 72 | 0 | 72 | 0 |
Accelerated vesting of equity awards | 5 | 5 | 0 | 5 | 0 |
Cumulative effect of accounting change | 49 | 49 | 0 | 49 | 0 |
Contributions from parent | 72 | 72 | 0 | 72 | 0 |
Distributions to parent | (747) | (747) | 0 | (747) | 0 |
Distributions to noncontrolling interest | (1) | 0 | 0 | 0 | (1) |
Balance at Mar. 31, 2018 | 63,296 | 63,274 | (1) | 63,273 | 23 |
Balance at Dec. 31, 2017 | 63,582 | 63,559 | (1) | 63,558 | 24 |
Rollforward of Consolidated Member's Equity: | |||||
Consolidated net income | 1,287 | ||||
Balance at Sep. 30, 2018 | 61,536 | 61,514 | (2) | 61,512 | 24 |
Balance at Mar. 31, 2018 | 63,296 | 63,274 | (1) | 63,273 | 23 |
Rollforward of Consolidated Member's Equity: | |||||
Consolidated net income | 356 | 355 | 0 | 355 | 1 |
Stock compensation expense | 70 | 70 | 0 | 70 | 0 |
Changes in accumulated other comprehensive loss | (1) | 0 | (1) | (1) | 0 |
Contributions from parent | 5 | 5 | 0 | 5 | 0 |
Distributions to parent | (1,909) | (1,909) | 0 | (1,909) | 0 |
Balance at Jun. 30, 2018 | 61,817 | 61,795 | (2) | 61,793 | 24 |
Rollforward of Consolidated Member's Equity: | |||||
Consolidated net income | 667 | 667 | 0 | 667 | 0 |
Stock compensation expense | 71 | 71 | 0 | 71 | 0 |
Cumulative effect of accounting change | 38 | 38 | 0 | 38 | 0 |
Contributions from parent | 50 | 50 | 0 | 50 | 0 |
Distributions to parent | (1,107) | (1,107) | 0 | (1,107) | 0 |
Balance at Sep. 30, 2018 | 61,536 | 61,514 | (2) | 61,512 | 24 |
Balance at Dec. 31, 2018 | 60,554 | 60,532 | (2) | 60,530 | 24 |
Rollforward of Consolidated Member's Equity: | |||||
Consolidated net income | 350 | 350 | 0 | 350 | 0 |
Stock compensation expense | 85 | 85 | 0 | 85 | 0 |
Contributions from parent | 9 | 9 | 0 | 9 | 0 |
Distributions to parent | (1,040) | (1,040) | 0 | (1,040) | 0 |
Distributions to noncontrolling interest | (1) | 0 | 0 | 0 | (1) |
Balance at Mar. 31, 2019 | 59,957 | 59,936 | (2) | 59,934 | 23 |
Balance at Dec. 31, 2018 | 60,554 | 60,532 | (2) | 60,530 | 24 |
Rollforward of Consolidated Member's Equity: | |||||
Consolidated net income | 1,348 | ||||
Balance at Sep. 30, 2019 | 56,970 | 56,949 | (2) | 56,947 | 23 |
Balance at Mar. 31, 2019 | 59,957 | 59,936 | (2) | 59,934 | 23 |
Rollforward of Consolidated Member's Equity: | |||||
Consolidated net income | 439 | 438 | 0 | 438 | 1 |
Stock compensation expense | 82 | 82 | 0 | 82 | 0 |
Contributions from parent | 42 | 42 | 0 | 42 | 0 |
Distributions to parent | (1,044) | (1,044) | 0 | (1,044) | 0 |
Balance at Jun. 30, 2019 | 59,476 | 59,454 | (2) | 59,452 | 24 |
Rollforward of Consolidated Member's Equity: | |||||
Consolidated net income | 559 | 559 | 0 | 559 | 0 |
Stock compensation expense | 71 | 71 | 0 | 71 | 0 |
Contributions from parent | 3 | 3 | 0 | 3 | 0 |
Distributions to parent | (3,138) | (3,138) | 0 | (3,138) | 0 |
Distributions to noncontrolling interest | (1) | 0 | 0 | 0 | (1) |
Balance at Sep. 30, 2019 | $ 56,970 | $ 56,949 | $ (2) | $ 56,947 | $ 23 |
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 | $ 1,348 | $ 1,287 |
Adjustments to reconcile consolidated net income to net cash flows from operating activities: | ||
Depreciation and amortization | 7,453 | 7,776 |
Stock compensation expense | 238 | 213 |
Accelerated vesting of equity awards | 0 | 5 |
Noncash interest income, net | (89) | (243) |
Other pension benefits, net | (27) | (247) |
Loss on financial instruments, net | 116 | 0 |
Deferred income taxes | 54 | 4 |
Other, net | 155 | 54 |
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: | ||
Accounts receivable | (567) | (96) |
Prepaid expenses and other assets | (207) | (101) |
Accounts payable, accrued liabilities and other | (104) | (60) |
Receivables from and payables to related party | (23) | (88) |
Net cash flows from operating activities | 8,347 | 8,504 |
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) |
Other, net | 85 | (93) |
Net cash flows from investing activities | (5,277) | (7,405) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 13,157 | 11,552 |
Repayments of long-term debt | (10,886) | (8,964) |
Borrowings of loans payable - related parties | 0 | 7 |
Payments for debt issuance costs | (48) | (29) |
Contributions from parent | 54 | 127 |
Distributions to parent | (5,222) | (3,763) |
Distributions to noncontrolling interest | (2) | (1) |
Other, net | (133) | (7) |
Net cash flows from financing activities | (3,080) | (1,078) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (10) | 21 |
CASH AND CASH EQUIVALENTS, beginning of period | 300 | 330 |
CASH AND CASH EQUIVALENTS, end of period | 290 | 351 |
CASH PAID FOR INTEREST | 3,065 | 2,920 |
CASH PAID FOR TAXES | $ 27 | $ 19 |
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 CCO Holdings, LLC (together with its subsidiaries, “CCO Holdings,” 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. CCO Holdings is a holding company whose principal assets are the equity interests in its operating subsidiaries. CCO Holdings is a direct subsidiary of CCH I Holdings, LLC, which is an indirect subsidiary of Charter Communications, Inc. (“Charter”), Charter Communications Holdings, LLC (“Charter Holdings”) and Spectrum Management Holding Company, LLC (“Spectrum Management”). The consolidated financial statements include the accounts of CCO Holdings and all of its subsidiaries where the underlying operations reside. All significant intercompany accounts and transactions among consolidated entities have been eliminated. Charter, Charter Holdings and Spectrum Management have performed financing, cash management, treasury and other services for CCO Holdings on a centralized basis. Changes in member’s equity in the consolidated balance sheets related to these activities have been considered cash receipts (contributions) and payments (distributions) for purposes of the consolidated statements of cash flows and are reflected in financing activities. The Company’s operations are managed and reported to its 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 CCO Holdings' 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 $ 96,876 $ — $ 96,876 $ 96,873 $ — $ 96,873 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 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 $ 610 $ 702 Deferred revenue 526 494 Accrued liabilities: Programming costs 2,064 2,044 Labor 726 705 Capital expenditures 973 1,472 Interest 943 1,045 Taxes and regulatory fees 532 508 Other 947 933 $ 7,321 $ 7,903 |
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) $ 92 $ 281 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 (5 ) (15 ) Total lease related expenses, net $ 91 $ 280 (a) Includes short-term leases and variable leases costs of $31 million and $92 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 $ 185 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 $ 171 Finance leases $ 27 Supplemental balance sheet information related to leases is as follows. September 30, 2019 Operating leases: Operating lease right-of-use assets $ 930 Current operating lease liabilities $ 180 Long-term operating lease liabilities 794 Total operating lease liabilities $ 974 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 $ 59 $ 1 2020 237 6 2021 208 6 2022 173 6 2023 149 5 Thereafter 410 59 Undiscounted lease cash flow commitments 1,236 83 Reconciling impact from discounting (262 ) (25 ) Lease liabilities on consolidated balance sheet as of September 30, 2019 $ 974 $ 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 $ 233 $ 10 2020 215 9 2021 176 9 2022 142 9 2023 119 10 Thereafter 342 64 $ 1,227 $ 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) $ 92 $ 281 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 (5 ) (15 ) Total lease related expenses, net $ 91 $ 280 (a) Includes short-term leases and variable leases costs of $31 million and $92 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 $ 185 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 $ 171 Finance leases $ 27 Supplemental balance sheet information related to leases is as follows. September 30, 2019 Operating leases: Operating lease right-of-use assets $ 930 Current operating lease liabilities $ 180 Long-term operating lease liabilities 794 Total operating lease liabilities $ 974 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 $ 59 $ 1 2020 237 6 2021 208 6 2022 173 6 2023 149 5 Thereafter 410 59 Undiscounted lease cash flow commitments 1,236 83 Reconciling impact from discounting (262 ) (25 ) Lease liabilities on consolidated balance sheet as of September 30, 2019 $ 974 $ 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 $ 233 $ 10 2020 215 9 2021 176 9 2022 142 9 2023 119 10 Thereafter 342 64 $ 1,227 $ 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 8. The Company has availability under the Charter Communications Operating, LLC ("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 distributions to the Company's parent companies 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 distributions to the Company's parent companies 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 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 distributions to the Company's parent companies to fund 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 distributions to the Company's parent companies 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. |
Loans Payable - Related Party (
Loans Payable - Related Party (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Loans Payable - Related Party [Abstract] | |
Loans Payable - Related Party | Loans Payable - Related Party Loans payable - related party as of September 30, 2019 and December 31, 2018 consists of loans from Charter Communications Holding Company, LLC (“Charter Holdco”) to the Company of $699 million and $674 million , respectively, and loans from Charter to the Company of $260 million and $251 million , respectively. Interest accrued on loans payable - related party at LIBOR plus 1.50% |
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, 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. 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 214 223 626 660 $ 11,449 $ 10,887 $ 33,997 $ 32,390 |
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 1,024 956 3,045 2,833 $ 7,450 $ 7,018 $ 21,950 $ 20,742 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 $ 23 $ 14 $ 44 $ 121 (Gain) loss on sale of assets, net (5 ) 4 33 (9 ) $ 18 $ 18 $ 77 $ 112 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 CCO Holdings is a single member limited liability company not subject to income tax. CCO Holdings holds all operations through indirect subsidiaries. The majority of these indirect subsidiaries are limited liability companies that are not subject to income tax. Certain indirect subsidiaries that are required to file separate returns are subject to federal and state tax. CCO Holdings’ tax provision reflects the tax provision of the entities required to file separate returns. Generally, the taxable income, gains, losses, deductions and credits of CCO Holdings are passed through to its indirect members, Charter and Advance/Newhouse Partnership (“A/N”). Charter is responsible for its share of taxable income or loss of CCO Holdings allocated to it in accordance with the Charter Holdings Limited Liability Company Agreement and partnership tax rules and regulations. Charter also records financial statement deferred tax assets and liabilities related to its investment, and its underlying net assets, in CCO Holdings. The Company recorded income tax expense of $10 million and $86 million for the three and nine months ended September 30, 2019 , respectively, and $8 million and $13 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 an internal entity simplification and higher pretax income . 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 $116 million and $119 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. |
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 CCO Holdings member 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 $ 1,287 Foreign currency translation adjustment (1 ) Consolidated comprehensive income 1,286 Less: Comprehensive income attributable to noncontrolling interest (1 ) Comprehensive income attributable to CCO Holdings member $ 1,285 |
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 and its parent companies have agreements with certain equity investees pursuant to which the Company has made or received related party transaction payments. The Company and its parent companies 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 and its parent companies are defendants or co-defendants in several additional lawsuits involving alleged infringement of various intellectual property relating to various aspects of their businesses. Other industry participants are also defendants in certain of these cases. In the event that a court ultimately determines that the Company infringes on any intellectual property, the Company may be subject to substantial damages and/or an injunction that could require the Company or its vendors to modify certain products and services the Company offers to its subscribers, as well as negotiate royalty or license agreements with respect to the intellectual property at issue. While the Company believes the lawsuits are without merit and intends to defend the actions vigorously, no assurance can be given that any adverse outcome would not be material to the Company’s consolidated financial condition, results of operations, or liquidity. The Company cannot predict the outcome of any such claims nor can it reasonably estimate a range of possible loss. The Company and its parent companies are party to other lawsuits, claims and regulatory inquiries that arise in the ordinary course of conducting their business. The ultimate outcome of these other legal matters pending against the Company cannot be predicted, and although such lawsuits and claims are not expected individually to have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity, such lawsuits could have, in the aggregate, a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity. Whether or not the Company ultimately prevails in any particular lawsuit or claim, litigation can be time consuming and costly and injure the Company’s reputation. |
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 member’s equity of $49 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 $38 million increase to total member's 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 $963 million and $990 million , 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 member's 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 “Charter Operating and Restricted Subsidiaries” column is presented to comply with the terms of the Credit Agreement. Comprehensive income equaled net income attributable to CCO Holdings member 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. CCO Holdings, LLC and Subsidiaries Condensed Consolidating Balance Sheets As of September 30, 2019 Guarantor Subsidiaries CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations CCO Holdings Consolidated ASSETS CURRENT ASSETS: Cash and cash equivalents $ — $ 290 $ — $ 290 Accounts receivable, net — 2,252 — 2,252 Receivables from related party 55 — (55 ) — Prepaid expenses and other current assets — 548 — 548 Total current assets 55 3,090 (55 ) 3,090 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 33,560 — 33,560 Customer relationships, net — 7,956 — 7,956 Franchises — 67,322 — 67,322 Goodwill — 29,554 — 29,554 Total investment in cable properties, net — 138,392 — 138,392 INVESTMENT IN SUBSIDIARIES 76,898 — (76,898 ) — OPERATING LEASE RIGHT-OF-USE ASSETS — 930 — 930 LOANS RECEIVABLE – RELATED PARTY 545 — (545 ) — OTHER NONCURRENT ASSETS — 1,398 — 1,398 Total assets $ 77,498 $ 143,810 $ (77,498 ) $ 143,810 LIABILITIES AND MEMBER’S EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 302 $ 7,019 $ — $ 7,321 Operating lease liabilities — 180 — 180 Payables to related party — 544 (55 ) 489 Current portion of long-term debt — 3,509 — 3,509 Total current liabilities 302 11,252 (55 ) 11,499 LONG-TERM DEBT 20,249 51,141 — 71,390 LOANS PAYABLE – RELATED PARTY — 1,504 (545 ) 959 DEFERRED INCOME TAXES — 52 — 52 LONG-TERM OPERATING LEASE LIABILITIES — 794 — 794 OTHER LONG-TERM LIABILITIES — 2,146 — 2,146 MEMBER’S EQUITY Controlling interest 56,947 76,898 (76,898 ) 56,947 Noncontrolling interests — 23 — 23 Total member’s equity 56,947 76,921 (76,898 ) 56,970 Total liabilities and member’s equity $ 77,498 $ 143,810 $ (77,498 ) $ 143,810 CCO Holdings, LLC and Subsidiaries Condensed Consolidating Balance Sheets As of December 31, 2018 Guarantor Subsidiaries CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations CCO Holdings Consolidated ASSETS CURRENT ASSETS: Cash and cash equivalents $ — $ 300 $ — $ 300 Accounts receivable, net — 1,699 — 1,699 Receivables from related party 57 — (57 ) — Prepaid expenses and other current assets — 400 — 400 Total current assets 57 2,399 (57 ) 2,399 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 34,658 — 34,658 Customer relationships, net — 9,565 — 9,565 Franchises — 67,319 — 67,319 Goodwill — 29,554 — 29,554 Total investment in cable properties, net — 141,096 — 141,096 INVESTMENT IN SUBSIDIARIES 78,960 — (78,960 ) — LOANS RECEIVABLE – RELATED PARTY 526 — (526 ) — OTHER NONCURRENT ASSETS — 1,403 — 1,403 Total assets $ 79,543 $ 144,898 $ (79,543 ) $ 144,898 LIABILITIES AND MEMBER’S EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 283 $ 7,620 $ — $ 7,903 Payables to related party — 602 (57 ) 545 Current portion of long-term debt — 3,290 — 3,290 Total current liabilities 283 11,512 (57 ) 11,738 LONG-TERM DEBT 18,730 50,807 — 69,537 LOANS PAYABLE – RELATED PARTY — 1,451 (526 ) 925 OTHER LONG-TERM LIABILITIES — 2,144 — 2,144 MEMBER’S EQUITY Controlling interest 60,530 78,960 (78,960 ) 60,530 Noncontrolling interests — 24 — 24 Total member’s equity 60,530 78,984 (78,960 ) 60,554 Total liabilities and member’s equity $ 79,543 $ 144,898 $ (79,543 ) $ 144,898 CCO Holdings, LLC and Subsidiaries Condensed Consolidating Statements of Operations For the nine months ended September 30, 2019 Guarantor Subsidiaries CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations CCO Holdings Consolidated REVENUES $ — $ 33,997 $ — $ 33,997 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) — 21,950 — 21,950 Depreciation and amortization — 7,453 — 7,453 Other operating expense, net — 77 — 77 — 29,480 — 29,480 Income from operations — 4,517 — 4,517 OTHER INCOME (EXPENSES): Interest expense, net (785 ) (2,080 ) — (2,865 ) Loss on financial instruments, net — (116 ) — (116 ) Other pension benefits, net — 27 — 27 Other expense, net — (129 ) — (129 ) Equity in income of subsidiaries 2,132 — (2,132 ) — 1,347 (2,298 ) (2,132 ) (3,083 ) Income before income taxes 1,347 2,219 (2,132 ) 1,434 Income tax expense — (86 ) — (86 ) Consolidated net income 1,347 2,133 (2,132 ) 1,348 Less: Net income attributable to noncontrolling interests — (1 ) — (1 ) Net income $ 1,347 $ 2,132 $ (2,132 ) $ 1,347 CCO Holdings, LLC and Subsidiaries Condensed Consolidating Statements of Operations For the nine months ended September 30, 2018 Guarantor Subsidiaries CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations CCO Holdings Consolidated REVENUES $ — $ 32,390 $ — $ 32,390 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) — 20,742 — 20,742 Depreciation and amortization — 7,776 — 7,776 Other operating expenses, net — 112 — 112 — 28,630 — 28,630 Income from operations — 3,760 — 3,760 OTHER INCOME (EXPENSES): Interest expense, net (762 ) (1,896 ) — (2,658 ) Other pension benefits, net — 247 — 247 Other expense, net — (49 ) — (49 ) Equity in income of subsidiaries 2,048 — (2,048 ) — 1,286 (1,698 ) (2,048 ) (2,460 ) Income before income taxes 1,286 2,062 (2,048 ) 1,300 Income tax expense — (13 ) — (13 ) Consolidated net income 1,286 2,049 (2,048 ) 1,287 Less: Net income attributable to noncontrolling interests — (1 ) — (1 ) Net income $ 1,286 $ 2,048 $ (2,048 ) $ 1,286 CCO Holdings, LLC and Subsidiaries Condensed Consolidating Statements of Comprehensive Income For the nine months ended September 30, 2018 Guarantor Subsidiaries CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations CCO Holdings Consolidated Consolidated net income $ 1,286 $ 2,049 $ (2,048 ) $ 1,287 Foreign currency translation adjustment (1 ) (1 ) 1 (1 ) Consolidated comprehensive income $ 1,285 $ 2,048 $ (2,047 ) $ 1,286 Less: Comprehensive income attributable to noncontrolling interests — (1 ) — (1 ) Comprehensive income $ 1,285 $ 2,047 $ (2,047 ) $ 1,285 CCO Holdings, LLC and Subsidiaries Condensed Consolidating Statements of Cash Flows For the nine months ended September 30, 2019 Guarantor Subsidiaries CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations CCO Holdings Consolidated NET CASH FLOWS FROM OPERATING ACTIVITIES $ (762 ) $ 9,109 $ — $ 8,347 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — (4,913 ) — (4,913 ) Change in accrued expenses related to capital expenditures — (449 ) — (449 ) Contributions to subsidiaries (1,559 ) — 1,559 — Distributions from subsidiaries 5,988 — (5,988 ) — Other, net — 85 — 85 Net cash flows from investing activities 4,429 (5,277 ) (4,429 ) (5,277 ) 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 ) Distributions to noncontrolling interest — (2 ) — (2 ) Contributions from parent 54 1,559 (1,559 ) 54 Distributions to parent (5,222 ) (5,988 ) 5,988 (5,222 ) Other, net — (133 ) — (133 ) Net cash flows from financing activities (3,667 ) (3,842 ) 4,429 (3,080 ) NET DECREASE IN CASH AND CASH EQUIVALENTS — (10 ) — (10 ) CASH AND CASH EQUIVALENTS, beginning of period — 300 — 300 CASH AND CASH EQUIVALENTS, end of period $ — $ 290 $ — $ 290 CCO Holdings, LLC and Subsidiaries Condensed Consolidating Statements of Cash Flows For the nine months ended September 30, 2018 Guarantor Subsidiaries CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations CCO Holdings Consolidated NET CASH FLOWS FROM OPERATING ACTIVITIES $ (728 ) $ 9,232 $ — $ 8,504 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 ) Contribution to subsidiaries (127 ) — 127 — Distributions from subsidiaries 4,491 — (4,491 ) — Other, net — (93 ) — (93 ) Net cash flows from investing activities 4,364 (7,405 ) (4,364 ) (7,405 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — 11,552 — 11,552 Repayments of long-term debt — (8,964 ) — (8,964 ) Borrowings of loans payable - related parties — 7 — 7 Payments for debt issuance costs — (29 ) — (29 ) Distributions to noncontrolling interest — (1 ) — (1 ) Contributions from parent 127 127 (127 ) 127 Distributions to parent (3,763 ) (4,491 ) 4,491 (3,763 ) Other, net — (7 ) — (7 ) Net cash flows from financing activities (3,636 ) (1,806 ) 4,364 (1,078 ) NET INCREASE IN CASH AND CASH EQUIVALENTS — 21 — 21 CASH AND CASH EQUIVALENTS, beginning of period — 330 — 330 CASH AND CASH EQUIVALENTS, end of period $ — $ 351 $ — $ 351 |
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 $ 96,876 $ — $ 96,876 $ 96,873 $ — $ 96,873 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 |
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 $ 610 $ 702 Deferred revenue 526 494 Accrued liabilities: Programming costs 2,064 2,044 Labor 726 705 Capital expenditures 973 1,472 Interest 943 1,045 Taxes and regulatory fees 532 508 Other 947 933 $ 7,321 $ 7,903 |
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) $ 92 $ 281 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 (5 ) (15 ) Total lease related expenses, net $ 91 $ 280 (a) Includes short-term leases and variable leases costs of $31 million and $92 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 $ 185 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 $ 171 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 $ 930 Current operating lease liabilities $ 180 Long-term operating lease liabilities 794 Total operating lease liabilities $ 974 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 $ 59 $ 1 2020 237 6 2021 208 6 2022 173 6 2023 149 5 Thereafter 410 59 Undiscounted lease cash flow commitments 1,236 83 Reconciling impact from discounting (262 ) (25 ) Lease liabilities on consolidated balance sheet as of September 30, 2019 $ 974 $ 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 $ 59 $ 1 2020 237 6 2021 208 6 2022 173 6 2023 149 5 Thereafter 410 59 Undiscounted lease cash flow commitments 1,236 83 Reconciling impact from discounting (262 ) (25 ) Lease liabilities on consolidated balance sheet as of September 30, 2019 $ 974 $ 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 $ 233 $ 10 2020 215 9 2021 176 9 2022 142 9 2023 119 10 Thereafter 342 64 $ 1,227 $ 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 $ 233 $ 10 2020 215 9 2021 176 9 2022 142 9 2023 119 10 Thereafter 342 64 $ 1,227 $ 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. |
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 214 223 626 660 $ 11,449 $ 10,887 $ 33,997 $ 32,390 |
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 1,024 956 3,045 2,833 $ 7,450 $ 7,018 $ 21,950 $ 20,742 |
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 $ 23 $ 14 $ 44 $ 121 (Gain) loss on sale of assets, net (5 ) 4 33 (9 ) $ 18 $ 18 $ 77 $ 112 |
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 |
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 $ 1,287 Foreign currency translation adjustment (1 ) Consolidated comprehensive income 1,286 Less: Comprehensive income attributable to noncontrolling interest (1 ) Comprehensive income attributable to CCO Holdings member $ 1,285 |
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. CCO Holdings, LLC and Subsidiaries Condensed Consolidating Balance Sheets As of September 30, 2019 Guarantor Subsidiaries CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations CCO Holdings Consolidated ASSETS CURRENT ASSETS: Cash and cash equivalents $ — $ 290 $ — $ 290 Accounts receivable, net — 2,252 — 2,252 Receivables from related party 55 — (55 ) — Prepaid expenses and other current assets — 548 — 548 Total current assets 55 3,090 (55 ) 3,090 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 33,560 — 33,560 Customer relationships, net — 7,956 — 7,956 Franchises — 67,322 — 67,322 Goodwill — 29,554 — 29,554 Total investment in cable properties, net — 138,392 — 138,392 INVESTMENT IN SUBSIDIARIES 76,898 — (76,898 ) — OPERATING LEASE RIGHT-OF-USE ASSETS — 930 — 930 LOANS RECEIVABLE – RELATED PARTY 545 — (545 ) — OTHER NONCURRENT ASSETS — 1,398 — 1,398 Total assets $ 77,498 $ 143,810 $ (77,498 ) $ 143,810 LIABILITIES AND MEMBER’S EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 302 $ 7,019 $ — $ 7,321 Operating lease liabilities — 180 — 180 Payables to related party — 544 (55 ) 489 Current portion of long-term debt — 3,509 — 3,509 Total current liabilities 302 11,252 (55 ) 11,499 LONG-TERM DEBT 20,249 51,141 — 71,390 LOANS PAYABLE – RELATED PARTY — 1,504 (545 ) 959 DEFERRED INCOME TAXES — 52 — 52 LONG-TERM OPERATING LEASE LIABILITIES — 794 — 794 OTHER LONG-TERM LIABILITIES — 2,146 — 2,146 MEMBER’S EQUITY Controlling interest 56,947 76,898 (76,898 ) 56,947 Noncontrolling interests — 23 — 23 Total member’s equity 56,947 76,921 (76,898 ) 56,970 Total liabilities and member’s equity $ 77,498 $ 143,810 $ (77,498 ) $ 143,810 CCO Holdings, LLC and Subsidiaries Condensed Consolidating Balance Sheets As of December 31, 2018 Guarantor Subsidiaries CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations CCO Holdings Consolidated ASSETS CURRENT ASSETS: Cash and cash equivalents $ — $ 300 $ — $ 300 Accounts receivable, net — 1,699 — 1,699 Receivables from related party 57 — (57 ) — Prepaid expenses and other current assets — 400 — 400 Total current assets 57 2,399 (57 ) 2,399 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net — 34,658 — 34,658 Customer relationships, net — 9,565 — 9,565 Franchises — 67,319 — 67,319 Goodwill — 29,554 — 29,554 Total investment in cable properties, net — 141,096 — 141,096 INVESTMENT IN SUBSIDIARIES 78,960 — (78,960 ) — LOANS RECEIVABLE – RELATED PARTY 526 — (526 ) — OTHER NONCURRENT ASSETS — 1,403 — 1,403 Total assets $ 79,543 $ 144,898 $ (79,543 ) $ 144,898 LIABILITIES AND MEMBER’S EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 283 $ 7,620 $ — $ 7,903 Payables to related party — 602 (57 ) 545 Current portion of long-term debt — 3,290 — 3,290 Total current liabilities 283 11,512 (57 ) 11,738 LONG-TERM DEBT 18,730 50,807 — 69,537 LOANS PAYABLE – RELATED PARTY — 1,451 (526 ) 925 OTHER LONG-TERM LIABILITIES — 2,144 — 2,144 MEMBER’S EQUITY Controlling interest 60,530 78,960 (78,960 ) 60,530 Noncontrolling interests — 24 — 24 Total member’s equity 60,530 78,984 (78,960 ) 60,554 Total liabilities and member’s equity $ 79,543 $ 144,898 $ (79,543 ) $ 144,898 CCO Holdings, LLC and Subsidiaries Condensed Consolidating Statements of Operations For the nine months ended September 30, 2019 Guarantor Subsidiaries CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations CCO Holdings Consolidated REVENUES $ — $ 33,997 $ — $ 33,997 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) — 21,950 — 21,950 Depreciation and amortization — 7,453 — 7,453 Other operating expense, net — 77 — 77 — 29,480 — 29,480 Income from operations — 4,517 — 4,517 OTHER INCOME (EXPENSES): Interest expense, net (785 ) (2,080 ) — (2,865 ) Loss on financial instruments, net — (116 ) — (116 ) Other pension benefits, net — 27 — 27 Other expense, net — (129 ) — (129 ) Equity in income of subsidiaries 2,132 — (2,132 ) — 1,347 (2,298 ) (2,132 ) (3,083 ) Income before income taxes 1,347 2,219 (2,132 ) 1,434 Income tax expense — (86 ) — (86 ) Consolidated net income 1,347 2,133 (2,132 ) 1,348 Less: Net income attributable to noncontrolling interests — (1 ) — (1 ) Net income $ 1,347 $ 2,132 $ (2,132 ) $ 1,347 CCO Holdings, LLC and Subsidiaries Condensed Consolidating Statements of Operations For the nine months ended September 30, 2018 Guarantor Subsidiaries CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations CCO Holdings Consolidated REVENUES $ — $ 32,390 $ — $ 32,390 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) — 20,742 — 20,742 Depreciation and amortization — 7,776 — 7,776 Other operating expenses, net — 112 — 112 — 28,630 — 28,630 Income from operations — 3,760 — 3,760 OTHER INCOME (EXPENSES): Interest expense, net (762 ) (1,896 ) — (2,658 ) Other pension benefits, net — 247 — 247 Other expense, net — (49 ) — (49 ) Equity in income of subsidiaries 2,048 — (2,048 ) — 1,286 (1,698 ) (2,048 ) (2,460 ) Income before income taxes 1,286 2,062 (2,048 ) 1,300 Income tax expense — (13 ) — (13 ) Consolidated net income 1,286 2,049 (2,048 ) 1,287 Less: Net income attributable to noncontrolling interests — (1 ) — (1 ) Net income $ 1,286 $ 2,048 $ (2,048 ) $ 1,286 CCO Holdings, LLC and Subsidiaries Condensed Consolidating Statements of Comprehensive Income For the nine months ended September 30, 2018 Guarantor Subsidiaries CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations CCO Holdings Consolidated Consolidated net income $ 1,286 $ 2,049 $ (2,048 ) $ 1,287 Foreign currency translation adjustment (1 ) (1 ) 1 (1 ) Consolidated comprehensive income $ 1,285 $ 2,048 $ (2,047 ) $ 1,286 Less: Comprehensive income attributable to noncontrolling interests — (1 ) — (1 ) Comprehensive income $ 1,285 $ 2,047 $ (2,047 ) $ 1,285 CCO Holdings, LLC and Subsidiaries Condensed Consolidating Statements of Cash Flows For the nine months ended September 30, 2019 Guarantor Subsidiaries CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations CCO Holdings Consolidated NET CASH FLOWS FROM OPERATING ACTIVITIES $ (762 ) $ 9,109 $ — $ 8,347 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment — (4,913 ) — (4,913 ) Change in accrued expenses related to capital expenditures — (449 ) — (449 ) Contributions to subsidiaries (1,559 ) — 1,559 — Distributions from subsidiaries 5,988 — (5,988 ) — Other, net — 85 — 85 Net cash flows from investing activities 4,429 (5,277 ) (4,429 ) (5,277 ) 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 ) Distributions to noncontrolling interest — (2 ) — (2 ) Contributions from parent 54 1,559 (1,559 ) 54 Distributions to parent (5,222 ) (5,988 ) 5,988 (5,222 ) Other, net — (133 ) — (133 ) Net cash flows from financing activities (3,667 ) (3,842 ) 4,429 (3,080 ) NET DECREASE IN CASH AND CASH EQUIVALENTS — (10 ) — (10 ) CASH AND CASH EQUIVALENTS, beginning of period — 300 — 300 CASH AND CASH EQUIVALENTS, end of period $ — $ 290 $ — $ 290 CCO Holdings, LLC and Subsidiaries Condensed Consolidating Statements of Cash Flows For the nine months ended September 30, 2018 Guarantor Subsidiaries CCO Holdings Charter Operating and Restricted Subsidiaries Eliminations CCO Holdings Consolidated NET CASH FLOWS FROM OPERATING ACTIVITIES $ (728 ) $ 9,232 $ — $ 8,504 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 ) Contribution to subsidiaries (127 ) — 127 — Distributions from subsidiaries 4,491 — (4,491 ) — Other, net — (93 ) — (93 ) Net cash flows from investing activities 4,364 (7,405 ) (4,364 ) (7,405 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings of long-term debt — 11,552 — 11,552 Repayments of long-term debt — (8,964 ) — (8,964 ) Borrowings of loans payable - related parties — 7 — 7 Payments for debt issuance costs — (29 ) — (29 ) Distributions to noncontrolling interest — (1 ) — (1 ) Contributions from parent 127 127 (127 ) 127 Distributions to parent (3,763 ) (4,491 ) 4,491 (3,763 ) Other, net — (7 ) — (7 ) Net cash flows from financing activities (3,636 ) (1,806 ) 4,364 (1,078 ) NET INCREASE IN CASH AND CASH EQUIVALENTS — 21 — 21 CASH AND CASH EQUIVALENTS, beginning of period — 330 — 330 CASH AND CASH EQUIVALENTS, end of period $ — $ 351 $ — $ 351 |
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 | 96,876 | 96,876 | 96,873 | ||
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 | ||
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 | |
Investments [Abstract] | ||
Impairment on equity investments | $ 121 | $ 58 |
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 | $ 610 | $ 702 |
Deferred revenue | 526 | 494 |
Accrued liabilities: | ||
Programming costs | 2,064 | 2,044 |
Labor | 726 | 705 |
Capital expenditures | 973 | 1,472 |
Interest | 943 | 1,045 |
Taxes and regulatory fees | 532 | 508 |
Other | 947 | 933 |
Total accounts payable and accrued liabilities | $ 7,321 | $ 7,903 |
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) | $ 92 | $ 281 | |
Amortization of right-of-use assets | 3 | 10 | |
Interest on lease liabilities | 1 | 4 | |
Total finance lease expense | 4 | 14 | |
Sublease income | (5) | (15) | |
Total lease related expenses, net | 91 | 280 | |
short term leases and variable leases costs | 31 | 92 | |
Operating cash flows from operating leases | 185 | ||
Operating cash flows from finance leases | 4 | ||
Financing cash flows from finance leases | 5 | ||
Operating leases | 171 | ||
Finance leases | 27 | ||
OPERATING LEASE RIGHT-OF-USE ASSETS | 930 | 930 | $ 0 |
Operating lease liabilities | 180 | 180 | 0 |
LONG-TERM OPERATING LEASE LIABILITIES | 794 | 794 | 0 |
Total operating lease liabilities | 974 | 974 | |
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 | $ 59 | $ 59 | |
2020 | 237 | 237 | |
2021 | 208 | 208 | |
2022 | 173 | 173 | |
2023 | 149 | 149 | |
Thereafter | 410 | 410 | |
Undiscounted lease cash flow commitments | 1,236 | 1,236 | |
Reconciling impact from discounting | (262) | (262) | |
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 | 233 | ||
2020 | 215 | ||
2021 | 176 | ||
2022 | 142 | ||
2023 | 119 | ||
Thereafter | 342 | ||
Operating Leases, Future Minimum Payments Due | 1,227 | ||
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, 2019GBP (£) | Sep. 30, 2018USD ($) | Oct. 24, 2019USD ($) | Oct. 01, 2019USD ($) | Sep. 30, 2019USD ($) | 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 | |||||||
LIBOR spread | 1.50% | ||||||||
Credit facilities | |||||||||
Long-term Debt: | |||||||||
Accreted Value | 10,759 | 9,959 | |||||||
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 | £ 625 | $ 769 | 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 | £ 650 | $ 799 | 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% |
Loans Payable - Related Party_2
Loans Payable - Related Party (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||
LOANS PAYABLE – RELATED PARTY | $ 959 | $ 925 |
LIBOR spread | 1.50% | |
Charter Holdco [Member] | ||
Related Party Transaction [Line Items] | ||
LOANS PAYABLE – RELATED PARTY | $ 699 | 674 |
Charter [Member] | ||
Related Party Transaction [Line Items] | ||
LOANS PAYABLE – RELATED PARTY | $ 260 | $ 251 |
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 (£) | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Derivatives: | |||||||
collateral cap term | 10 years | ||||||
Collateral cap, percentage of position covered | 40.00% | 40.00% | |||||
Maximum amount of collateral required to be posted | $ 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% | |||||
Collateral holiday agreement, term | 3 years | ||||||
Level 2 | Cross Currency Derivatives | |||||||
Derivatives: | |||||||
Derivative Liability | $ 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 | $ 11,449 | $ 10,887 | $ 33,997 | $ 32,390 |
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 | $ 214 | $ 223 | $ 626 | $ 660 |
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 | 1,024 | 956 | 3,045 | 2,833 |
Operating costs and expenses (exclusive of items shown separately in the consolidated statements of operations) | $ 7,450 | $ 7,018 | $ 21,950 | $ 20,742 |
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 | $ 23 | $ 14 | $ 44 | $ 121 |
(Gain) loss on sale of assets, net | (5) | 4 | 33 | (9) |
Other operating (income) expenses, net | $ 18 | 18 | $ 77 | 112 |
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 | $ (10) | $ (8) | $ (86) | $ (13) | |
Unrecognized Tax Benefits | $ 116 | $ 116 | $ 119 |
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 | $ 559 | $ 439 | $ 350 | $ 667 | $ 356 | $ 264 | $ 1,348 | $ 1,287 |
Foreign currency translation adjustment | (1) | |||||||
Consolidated comprehensive income | 1,286 | |||||||
Less: Comprehensive income attributable to noncontrolling interest | (1) | |||||||
Comprehensive income attributable to CCO Holdings member | $ 1,285 |
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 Transaction [Line Items] | ||||
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 Transaction [Line Items] | ||||
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 Transaction [Line Items] | ||||
Payments to related parties | $ 78 | $ 99 | $ 245 | $ 248 |
Class A Common Stock | ||||
Related Party Transaction [Line Items] | ||||
Dr. John Malone's ownership percentage in Discovery Communications, Inc. (percentage) | 1.20% | 1.20% | ||
Class B Common Stock | ||||
Related Party Transaction [Line Items] | ||||
Dr. John Malone's ownership percentage in Discovery Communications, Inc. (percentage) | 93.60% | 93.60% | ||
Class C Common Stock | ||||
Related Party Transaction [Line Items] | ||||
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 Member's Equity | $ 49 | ||
Accounting Standards Update 2016-16 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New Accounting Pronouncement, Effect of Adoption on Total Member's Equity | $ 38 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New Accounting Pronouncement, Effect of Adoption on Noncurrent Assets | $ 963 | ||
New Accounting Pronouncement, Effect of Adoption on Noncurrent Liabilities | $ 990 |
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 | $ 290 | $ 300 | $ 351 | $ 330 | ||||
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 | ||||||
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 | 0 | ||||||
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 | 7,321 | 7,903 | ||||||
Operating lease liabilities | 180 | 0 | ||||||
Payables to related party | 489 | 545 | ||||||
Current portion of long-term debt | 3,509 | 3,290 | ||||||
Total current liabilities | 11,499 | 11,738 | ||||||
LONG-TERM DEBT | 71,390 | 69,537 | ||||||
LOANS PAYABLE – RELATED PARTY | 959 | 925 | ||||||
DEFERRED INCOME TAXES | 52 | 0 | ||||||
LONG-TERM OPERATING LEASE LIABILITIES | 794 | 0 | ||||||
OTHER LONG-TERM LIABILITIES | 2,146 | 2,144 | ||||||
MEMBER’S EQUITY | ||||||||
Controlling interest | 56,947 | 60,530 | ||||||
Noncontrolling interests | 23 | 24 | ||||||
Total member’s equity | 56,970 | $ 59,476 | $ 59,957 | 60,554 | 61,536 | $ 61,817 | $ 63,296 | 63,582 |
Total liabilities and member’s equity | 143,810 | 144,898 | ||||||
Eliminations | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | 0 | 0 | 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) | ||||||
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 | 0 | 0 | ||||||
Operating lease liabilities | 0 | |||||||
Payables to related party | (55) | (57) | ||||||
Current portion of long-term debt | 0 | 0 | ||||||
Total current liabilities | (55) | (57) | ||||||
LONG-TERM DEBT | 0 | 0 | ||||||
LOANS PAYABLE – RELATED PARTY | (545) | (526) | ||||||
DEFERRED INCOME TAXES | 0 | |||||||
LONG-TERM OPERATING LEASE LIABILITIES | 0 | |||||||
OTHER LONG-TERM LIABILITIES | 0 | 0 | ||||||
MEMBER’S EQUITY | ||||||||
Controlling interest | (76,898) | (78,960) | ||||||
Noncontrolling interests | 0 | 0 | ||||||
Total member’s equity | (76,898) | (78,960) | ||||||
Total liabilities and member’s equity | (77,498) | (79,543) | ||||||
CCO Holdings | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | 0 | 0 | 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 | ||||||
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 | |||||||
LONG-TERM OPERATING LEASE LIABILITIES | 0 | |||||||
OTHER LONG-TERM LIABILITIES | 0 | 0 | ||||||
MEMBER’S EQUITY | ||||||||
Controlling interest | 56,947 | 60,530 | ||||||
Noncontrolling interests | 0 | 0 | ||||||
Total member’s equity | 56,947 | 60,530 | ||||||
Total liabilities and member’s equity | 77,498 | 79,543 | ||||||
Charter Operating and Restricted Subsidiaries | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | 290 | 300 | $ 351 | $ 330 | ||||
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 | ||||||
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 | |||||||
LONG-TERM OPERATING LEASE LIABILITIES | 794 | |||||||
OTHER LONG-TERM LIABILITIES | 2,146 | 2,144 | ||||||
MEMBER’S EQUITY | ||||||||
Controlling interest | 76,898 | 78,960 | ||||||
Noncontrolling interests | 23 | 24 | ||||||
Total member’s equity | 76,921 | 78,984 | ||||||
Total liabilities and 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 | $ 11,449 | $ 10,887 | $ 33,997 | $ 32,390 | ||||
COSTS AND EXPENSES: | ||||||||
Operating costs and expenses (exclusive of items shown separately below) | 7,450 | 7,018 | 21,950 | 20,742 | ||||
Depreciation and amortization | 2,411 | 2,479 | 7,453 | 7,776 | ||||
Other operating expenses, net | 18 | 18 | 77 | 112 | ||||
Total costs and expenses | 9,879 | 9,515 | 29,480 | 28,630 | ||||
Income from operations | 1,570 | 1,372 | 4,517 | 3,760 | ||||
OTHER INCOME (EXPENSES): | ||||||||
Interest expense, net | (973) | (912) | (2,865) | (2,658) | ||||
Gain (loss) on financial instruments, net | (34) | 12 | (116) | 0 | ||||
Other pension benefits, net | 9 | 207 | 27 | 247 | ||||
Other expense, net | (3) | (4) | (129) | (49) | ||||
Equity in income of subsidiaries | 0 | 0 | ||||||
Total other income (expense) | (1,001) | (697) | (3,083) | (2,460) | ||||
Income before income taxes | 569 | 675 | 1,434 | 1,300 | ||||
Income tax expense | (10) | (8) | (86) | (13) | ||||
Consolidated net income | 559 | $ 439 | $ 350 | 667 | $ 356 | $ 264 | 1,348 | 1,287 |
Less: Net income attributable to noncontrolling interests | 0 | 0 | (1) | (1) | ||||
Net income | $ 559 | $ 667 | 1,347 | 1,286 | ||||
Eliminations | ||||||||
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 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 | (2,132) | (2,048) | ||||||
Total other income (expense) | (2,132) | (2,048) | ||||||
Income before income taxes | (2,132) | (2,048) | ||||||
Income tax expense | 0 | 0 | ||||||
Consolidated net income | (2,132) | (2,048) | ||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | ||||||
Net income | (2,132) | (2,048) | ||||||
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 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 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 | $ 559 | $ 439 | $ 350 | $ 667 | $ 356 | $ 264 | $ 1,348 | $ 1,287 |
Foreign currency translation adjustment | (1) | |||||||
Consolidated comprehensive income | 1,286 | |||||||
Less: Comprehensive income attributable to noncontrolling interest | (1) | |||||||
Comprehensive income | 1,285 | |||||||
Eliminations | ||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||
Consolidated net income | (2,132) | (2,048) | ||||||
Foreign currency translation adjustment | 1 | |||||||
Consolidated comprehensive income | (2,047) | |||||||
Less: Comprehensive income attributable to noncontrolling interest | 0 | |||||||
Comprehensive income | (2,047) | |||||||
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 | $ 8,347 | $ 8,504 |
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) |
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 | 13,157 | 11,552 |
Repayments of long-term debt | (10,886) | (8,964) |
Borrowings of loans payable - related parties | 0 | 7 |
Payments for debt issuance costs | (48) | (29) |
Distributions to noncontrolling interest | (2) | (1) |
Contributions from parent | 54 | 127 |
Distributions to parent | (5,222) | (3,763) |
Other, net | (133) | (7) |
Net cash flows from financing activities | (3,080) | (1,078) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (10) | 21 |
CASH AND CASH EQUIVALENTS, beginning of period | 300 | 330 |
CASH AND CASH EQUIVALENTS, end of period | 290 | 351 |
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 | 0 | 0 |
Change in accrued expenses related to capital expenditures | 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 | 0 | 0 |
Repayments of long-term debt | 0 | 0 |
Borrowings of loans payable - related parties | 0 | |
Payments for debt issuance costs | 0 | 0 |
Distributions to noncontrolling interest | 0 | 0 |
Contributions from parent | (1,559) | (127) |
Distributions to parent | 5,988 | 4,491 |
Other, net | 0 | 0 |
Net cash flows from financing activities | 4,429 | 4,364 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 0 | 0 |
CASH AND CASH EQUIVALENTS, beginning of period | 0 | 0 |
CASH AND CASH EQUIVALENTS, end of period | 0 | 0 |
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 |
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 of loans payable - related parties | 0 | |
Payments for debt issuance costs | (14) | 0 |
Distributions to noncontrolling interest | 0 | 0 |
Contributions from parent | 54 | 127 |
Distributions to parent | (5,222) | (3,763) |
Other, net | 0 | 0 |
Net cash flows from financing activities | (3,667) | (3,636) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 0 | 0 |
CASH AND CASH EQUIVALENTS, beginning of period | 0 | 0 |
CASH AND CASH EQUIVALENTS, 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) |
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 of loans payable - related parties | 7 | |
Payments for debt issuance costs | (34) | (29) |
Distributions to noncontrolling interest | (2) | (1) |
Contributions from parent | 1,559 | 127 |
Distributions to parent | (5,988) | (4,491) |
Other, net | (133) | (7) |
Net cash flows from financing activities | (3,842) | (1,806) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (10) | 21 |
CASH AND CASH EQUIVALENTS, beginning of period | 300 | 330 |
CASH AND CASH EQUIVALENTS, end of period | $ 290 | $ 351 |