Document And Entity Information
Document And Entity Information | 9 Months Ended |
Sep. 30, 2023 shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2023 |
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 | 2023 |
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 Washington Blvd. |
Entity Address, City or Town | Stamford |
Entity Address, State or Province | CT |
Entity Address, Postal Zip Code | 06902 |
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. | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2023 |
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 | 2023 |
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 Washington Blvd. |
Entity Address, City or Town | Stamford |
Entity Address, State or Province | CT |
Entity Address, Postal Zip Code | 06902 |
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 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 352 | $ 392 |
Accounts receivable, less allowance for doubtful accounts of $256 and $219, respectively | 2,884 | 2,869 |
Receivables from related party | 23 | 0 |
Prepaid expenses and other current assets | 553 | 402 |
Total current assets | 3,812 | 3,663 |
INVESTMENT IN CABLE PROPERTIES: | ||
Property, plant and equipment, net of accumulated depreciation of $36,732 and $36,035, respectively | 37,748 | 35,147 |
Customer relationships, net of accumulated amortization of $16,285 and $15,478, respectively | 1,983 | 2,772 |
Franchises | 67,396 | 67,363 |
Goodwill | 29,672 | 29,563 |
Total investment in cable properties, net | 136,799 | 134,845 |
OTHER NONCURRENT ASSETS | 4,390 | 4,259 |
Total assets | 145,001 | 142,767 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued liabilities | 9,867 | 9,735 |
Payables to related party | 0 | 11 |
Current portion of long-term debt | 1,999 | 1,510 |
Total current liabilities | 11,866 | 11,256 |
LONG-TERM DEBT | 95,800 | 96,093 |
DEFERRED INCOME TAXES | 54 | 54 |
OTHER LONG-TERM LIABILITIES | 3,137 | 3,471 |
MEMBER’S EQUITY: | ||
CCO Holdings member's equity | 34,120 | 31,868 |
Noncontrolling interests | 24 | 25 |
Total member’s equity | 34,144 | 31,893 |
Total liabilities and member’s equity | $ 145,001 | $ 142,767 |
CONSOLIDATED BALANCE SHEET (PAR
CONSOLIDATED BALANCE SHEET (PARENTHETICALS) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Allowance for doubtful accounts | $ 256 | $ 219 |
INVESTMENT IN CABLE PROPERTIES: | ||
Property, plant and equipment, accumulated depreciation | 36,732 | 36,035 |
Customer relationships, accumulated amortization | $ 16,285 | $ 15,478 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
REVENUES | $ 13,584 | $ 13,550 | $ 40,896 | $ 40,346 |
COSTS AND EXPENSES: | ||||
Operating costs and expenses (exclusive of items shown separately below) | 8,324 | 8,277 | 25,220 | 24,650 |
Depreciation and amortization | 2,123 | 2,169 | 6,486 | 6,688 |
Other operating expense, net | 90 | 204 | 46 | 146 |
Total costs and expenses | 10,537 | 10,650 | 31,752 | 31,484 |
Income from operations | 3,047 | 2,900 | 9,144 | 8,862 |
OTHER INCOME (EXPENSES): | ||||
Interest expense, net | (1,297) | (1,157) | (3,843) | (3,313) |
Other income (expenses), net | (15) | (36) | (192) | 7 |
Total other income (expenses), net | (1,312) | (1,193) | (4,035) | (3,306) |
Income before income taxes | 1,735 | 1,707 | 5,109 | 5,556 |
Income tax expense | (14) | (11) | (43) | (36) |
Consolidated net income | 1,721 | 1,696 | 5,066 | 5,520 |
Less: Net income attributable to noncontrolling interests | 0 | 0 | (1) | (1) |
Net income attributable to CCO Holdings member | $ 1,721 | $ 1,696 | $ 5,065 | $ 5,519 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN MEMBER'S EQUITY - USD ($) $ in Millions | Total | CCO Holdings Member’s Equity | Noncontrolling Interests |
Balance at Dec. 31, 2021 | $ 36,227 | $ 36,203 | $ 24 |
Rollforward of Consolidated Shareholders' Equity: | |||
Consolidated net income | 1,709 | 1,709 | 0 |
Stock compensation expense | 147 | 147 | 0 |
Contributions from parent | 81 | 81 | 0 |
Distributions to parent | (3,775) | (3,775) | 0 |
Distributions to noncontrolling interest | (1) | 0 | (1) |
Balance at Mar. 31, 2022 | 34,388 | 34,365 | 23 |
Balance at Dec. 31, 2021 | 36,227 | 36,203 | 24 |
Rollforward of Consolidated Shareholders' Equity: | |||
Consolidated net income | 5,520 | ||
Balance at Sep. 30, 2022 | 31,058 | 31,034 | 24 |
Balance at Mar. 31, 2022 | 34,388 | 34,365 | 23 |
Rollforward of Consolidated Shareholders' Equity: | |||
Consolidated net income | 2,115 | 2,114 | 1 |
Stock compensation expense | 104 | 104 | 0 |
Contributions from parent | 5 | 5 | 0 |
Distributions to parent | (4,307) | (4,307) | 0 |
Balance at Jun. 30, 2022 | 32,305 | 32,281 | 24 |
Rollforward of Consolidated Shareholders' Equity: | |||
Consolidated net income | 1,696 | 1,696 | 0 |
Stock compensation expense | 109 | 109 | 0 |
Distributions to parent | (3,052) | (3,052) | 0 |
Balance at Sep. 30, 2022 | 31,058 | 31,034 | 24 |
Balance at Dec. 31, 2022 | 31,893 | 31,868 | 25 |
Rollforward of Consolidated Shareholders' Equity: | |||
Consolidated net income | 1,530 | 1,530 | 0 |
Stock compensation expense | 208 | 208 | 0 |
Distributions to parent | (1,094) | (1,094) | 0 |
Distributions to noncontrolling interest | (2) | 0 | (2) |
Balance at Mar. 31, 2023 | 32,535 | 32,512 | 23 |
Balance at Dec. 31, 2022 | 31,893 | 31,868 | 25 |
Rollforward of Consolidated Shareholders' Equity: | |||
Consolidated net income | 5,066 | ||
Balance at Sep. 30, 2023 | 34,144 | 34,120 | 24 |
Balance at Mar. 31, 2023 | 32,535 | 32,512 | 23 |
Rollforward of Consolidated Shareholders' Equity: | |||
Consolidated net income | 1,815 | 1,814 | 1 |
Stock compensation expense | 168 | 168 | 0 |
Contributions from parent | 1 | 1 | 0 |
Distributions to parent | (1,201) | (1,201) | 0 |
Balance at Jun. 30, 2023 | 33,318 | 33,294 | 24 |
Rollforward of Consolidated Shareholders' Equity: | |||
Consolidated net income | 1,721 | 1,721 | 0 |
Stock compensation expense | 164 | 164 | 0 |
Contributions from parent | 72 | 72 | 0 |
Distributions to parent | (1,131) | (1,131) | 0 |
Balance at Sep. 30, 2023 | $ 34,144 | $ 34,120 | $ 24 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Consolidated net income | $ 5,066 | $ 5,520 |
Adjustments to reconcile consolidated net income to net cash flows from operating activities: | ||
Depreciation and amortization | 6,486 | 6,688 |
Stock compensation expense | 540 | 360 |
Noncash interest, net | (1) | (25) |
Other, net | 200 | (56) |
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: | ||
Accounts receivable | (15) | (256) |
Prepaid expenses and other assets | (521) | (79) |
Accounts payable, accrued liabilities and other | (146) | (258) |
Receivables from and payables to related party | (33) | (8) |
Net cash flows from operating activities | 11,576 | 11,886 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (8,259) | (6,456) |
Change in accrued expenses related to capital expenditures | 110 | 284 |
Other, net | (327) | (232) |
Net cash flows from investing activities | (8,476) | (6,404) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 14,591 | 21,528 |
Repayments of long-term debt | (14,385) | (15,659) |
Payments for debt issuance costs | (18) | (71) |
Repayments of loans payable - related parties, net | (3) | (290) |
Distributions to parent | (3,426) | (11,134) |
Contributions from parent | 73 | 86 |
Distributions to noncontrolling interest | (2) | (1) |
Other, net | 30 | (21) |
Net cash flows from financing activities | (3,140) | (5,562) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (40) | (80) |
CASH AND CASH EQUIVALENTS, beginning of period | 392 | 321 |
CASH AND CASH EQUIVALENTS, end of period | 352 | 241 |
CASH PAID FOR INTEREST | 3,645 | 3,230 |
CASH PAID FOR TAXES | $ 25 | $ 37 |
Organization and Basis of Prese
Organization and Basis of Presentation (Notes) | 9 Months Ended |
Sep. 30, 2023 | |
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 a leading broadband connectivity company and cable operator. Over an advanced communications network, the Company offers a full range of state-of-the-art residential and business services including Spectrum Internet ® , TV, Mobile and Voice. For small and medium-sized companies, Spectrum Business ® delivers the same suite of broadband products and services coupled with special features and applications to enhance productivity, while for larger businesses and government entities, Spectrum Enterprise ® provides highly customized, fiber-based solutions. Spectrum Reach ® delivers tailored advertising and production for the modern media landscape. The Company also distributes award-winning news coverage and sports programming to its customers through Spectrum Networks. 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”). All of the outstanding capital stock of CCO Holdings Capital Corp. is owned by CCO Holdings. 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 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. 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 the Company's Annual Report on Form 10-K have been condensed or omitted for this quarterly report. The accompanying consolidated financial statements are unaudited and are subject to review by regulatory authorities. However, in the opinion of management, such financial statements include all adjustments, which consist of only normal recurring adjustments, necessary for a fair presentation of the results for the periods presented. Interim results are not necessarily indicative of results for a full year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Areas involving significant judgments and estimates include capitalization of labor and overhead costs, pension benefits and income taxes. Actual results could differ from those estimates. Certain prior period amounts have been reclassified to conform with the 2023 presentation. Comprehensive income equaled net income attributable to CCO Holdings member for the three and nine months ended September 30, 2023 and 2022. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities (Notes) | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Accounts payable – trade $ 747 $ 914 Deferred revenue 542 511 Accrued liabilities: Programming costs 1,736 1,914 Labor 1,171 1,306 Capital expenditures 1,898 1,792 Interest 1,368 1,165 Taxes and regulatory fees 512 512 Operating lease liabilities 256 261 Other 1,637 1,360 $ 9,867 $ 9,735 |
Total Debt (Notes)
Total Debt (Notes) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Total Debt | Total Debt A summary of our debt as of September 30, 2023 and December 31, 2022 is as follows: September 30, 2023 December 31, 2022 Principal Amount Carrying Value Fair Value Principal Amount Carrying Value Fair Value Senior unsecured notes $ 27,250 $ 27,165 $ 23,083 $ 26,650 $ 26,567 $ 22,426 Senior secured notes and debentures (a) 55,855 56,201 44,541 56,841 57,213 46,905 Credit facilities (b) 14,483 14,433 14,175 13,877 13,823 13,467 $ 97,588 $ 97,799 $ 81,799 $ 97,368 $ 97,603 $ 82,798 (a) Includes the Company's £625 million fixed-rate British pound sterling denominated notes (the “Sterling Notes”) (remeasured at $762 million and $755 million as of September 30, 2023 and December 31, 2022, respectively, using the exchange rate at the respective dates) and the Company's £650 million aggregate principal amount of Sterling Notes (remeasured at $793 million and $786 million as of September 30, 2023 and December 31, 2022, respectively, using the exchange rate at the respective dates). (b) The Company has availability under the Charter Communications Operating, LLC ("Charter Operating") credit facilities of approximately $3.3 billion as of September 30, 2023. The estimated fair value of the Company’s senior unsecured and secured notes and debentures as of September 30, 2023 and December 31, 2022 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. In February 2023, CCO Holdings and CCO Holdings Capital Corp. jointly issued $1.1 billion of 7.375% senior unsecured notes due March 2031 at par. The net proceeds were used for general corporate purposes, including repaying certain indebtedness, distributions to the Company's parent companies to fund buybacks of Charter Class A common stock and Charter Holdings common units and to pay related fees and expenses. In February 2023, Charter Operating entered into an amendment to its credit agreement to replace London Interbank Offering Rate ("LIBOR") as the benchmark rate applicable to the Term B loans with Secured Overnight Financing Rate ("SOFR") and in March 2023, Charter Operating entered into another amendment to its credit agreement to incur a new Term B-3 loan with an aggregate principal amount of $750 million maturing in 2030 concurrently with the cancelation of certain of Charter Operating's existing Term B-1 and B-2 loans, among other amendments. Pricing on the new Term B-3 loan is SOFR plus 2.25%. After giving effect to the amendments, the aggregate principal amount of Term B-1 loans is $2.3 billion with pricing unchanged at SOFR plus 1.75% and the aggregate principal amount of Term B-2 loans is $3.1 billion with pricing unchanged at SOFR plus 1.75%. As of July 1, 2023, the United Kingdom’s Financial Conduct Authority, which regulates LIBOR, ceased publishing remaining U.S. Dollar LIBOR rates. The Charter Operating senior secured floating rate notes due 2024 (the "Floating Rate Notes") used LIBOR as a benchmark for establishing the interest rate of the Floating Rate Notes. As of July 1, 2023, SOFR is being used as the benchmark replacement for calculations of the amount of interest payable on the Floating Rate Notes with respect to interest periods with interest determination dates occurring after June 30, 2023. Losses on extinguishment of debt are recorded in other income (expenses), net in the consolidated statements of operations and for the nine months ended September 30, 2022 was $3 million as a result of the Charter Operating credit facility refinancing and Charter Operating notes redemption. |
Accounting for Derivative Instr
Accounting for Derivative Instruments and Hedging Activities (Notes) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting for Derivative Instruments and Hedging Activities [Abstract] | |
Accounting for Derivative Instruments and Hedging Activities | Accounting for Derivative Instruments and Hedging Activities Cross-currency derivative instruments are used to manage foreign exchange risk on the Sterling Notes by effectively converting £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 fair value of the Company's cross-currency derivatives, which are classified within Level 2 of the valuation hierarchy, was $516 million and $570 million and is included in other long-term liabilities on its consolidated balance sheets as of September 30, 2023 and December 31, 2022, respectively. The effect of financial instruments are recorded in other income (expenses), net in the consolidated statements of operations and consisted of the following. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Change in fair value of cross-currency derivative instruments $ 6 $ (322) $ 54 $ (482) Foreign currency remeasurement of Sterling Notes to U.S. dollars 64 129 (14) 304 Gain (loss) on financial instruments, net $ 70 $ (193) $ 40 $ (178) |
Revenue (Notes)
Revenue (Notes) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue [Abstract] | |
Revenue | Revenues The Company’s revenues by product line are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Internet $ 5,776 $ 5,571 $ 17,227 $ 16,585 Video 4,004 4,379 12,446 13,209 Voice 379 391 1,117 1,180 Mobile service 581 435 1,617 1,237 Residential revenue 10,740 10,776 32,407 32,211 Small and medium business 1,085 1,095 3,270 3,257 Enterprise 698 673 2,070 2,003 Commercial revenue 1,783 1,768 5,340 5,260 Advertising sales 384 481 1,123 1,324 Other 677 525 2,026 1,551 $ 13,584 $ 13,550 $ 40,896 $ 40,346 As of September 30, 2023 and December 31, 2022, accounts receivable, net on the consolidated balance sheets includes approximately $651 million and $577 million of current equipment installment plan receivables, respectively, and other noncurrent assets includes approximately $547 million and $261 million of noncurrent equipment installment plan receivables, respectively. |
Operating Costs and Expenses (N
Operating Costs and Expenses (Notes) | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 2022 2023 2022 Programming $ 2,595 $ 2,871 $ 8,134 $ 8,820 Other costs of revenue 1,385 1,202 4,080 3,495 Costs to service customers 2,142 2,066 6,306 6,022 Sales and marketing 912 925 2,753 2,669 Other expense 1,290 1,213 3,947 3,644 $ 8,324 $ 8,277 $ 25,220 $ 24,650 Programming costs consist primarily of costs paid to programmers for basic, premium, video on demand and pay-per-view programming. Other costs of revenue include costs directly related to providing Internet, video, voice and mobile services including mobile device costs, payments to franchise and regulatory authorities, payments for sports, local and news content produced by the Company and direct costs associated with selling advertising. Also included in other costs of revenue are 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 contract period. Costs to service customers include costs related to field operations, network operations and customer operations for the Company’s products, including mobile, sold to non-bulk residential and small and medium business ("SMB") 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. Sales and |
Other Operating (Income) Expens
Other Operating (Income) Expense, Net (Notes) | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Other Operating (Income) Expense, Net | Other Operating Expense, Net Other operating expense, net consist of the following for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Special charges, net $ 80 $ 200 $ 42 $ 141 Loss on disposal of assets, net 10 4 4 5 $ 90 $ 204 $ 46 $ 146 |
Other Income (Expenses), Net (N
Other Income (Expenses), Net (Notes) | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Other Income (Expenses), Net | Other Income (Expenses), Net Other income (expenses), net consist of the following for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Loss on extinguishment of debt (see Note 3) $ — $ — $ — $ (3) Gain (loss) on financial instruments, net (see Note 4) 70 (193) 40 (178) Net periodic pension benefits 2 207 5 241 Gain (loss) on equity investments, net (87) (50) (237) (53) $ (15) $ (36) $ (192) $ 7 During the three and nine months ended September 30, 2022, settlements for lump-sum distributions to pension plan participants exceeded the estimated annual interest cost of the plans. As a result, the pension liability and pension asset values were reassessed 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. Therefore, net periodic pension benefits includes a $189 million remeasurement gain recorded during the three and nine months ended September 30, 2022 which was primarily driven by changes in the discount rate offset by losses to record assets to fair value. |
Stock Compensation Plans (Notes
Stock Compensation Plans (Notes) | 9 Months Ended |
Sep. 30, 2023 | |
Stock Compensation Plans [Abstract] | |
Stock Compensation Plans | Stock Compensation PlansCharter’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, 2023 2022 2023 2022 Stock options 9,500 50,700 4,266,700 1,455,100 Restricted stock — — 10,300 6,800 Restricted stock units 10,900 175,600 1,546,800 618,700 Stock options and restricted stock units generally cliff vest three years from the date of 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. As of September 30, 2023, total unrecognized compensation remaining to be recognized in future periods totaled $472 million for stock options, $2 million for restricted stock and $524 million for restricted stock units and the weighted average period over which they are expected to be recognized is three years for stock options, seven months for restricted stock and two years for restricted stock units. |
Commitment and Contingencies (N
Commitment and Contingencies (Notes) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies On April 27, 2022, Entropic Communications, LLC (“Entropic”) filed a complaint in the United States District Court for the Eastern District of Texas alleging that Charter infringed six patents relating to the deployment of certain set-top boxes, cable modems and cable modem termination systems. Entropic seeks monetary damages, including future license fees. Trial is scheduled for December 4, 2023. On February 10, 2023, Entropic filed a separate lawsuit against Charter in the United States District Court for the Eastern District of Texas. The lawsuit alleges infringement of two patents that also relate to the deployment of certain set-top boxes and cable modems. Entropic seeks monetary damages. Trial is scheduled for October 7, 2024. On February 10, 2023, Entropic filed two more lawsuits against Charter in the United States District Court for the Eastern District of Texas. The two lawsuits allege infringement of a total of twelve patents that relate to certain set-top boxes. Entropic seeks monetary damages, including future license fees. The two cases have been consolidated for pre-trial purposes. The first trial is scheduled for December 9, 2024. While the Company is vigorously defending these suits and is unable to predict the outcome of the Entropic lawsuits, the Company does not expect that the litigation will have a material effect on its operations, financial condition, or cash flows. In addition to the Entropic litigation described above, the Company and its parent companies are defendants or co-defendants in several 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 or related 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 operations, 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 operations, consolidated financial condition, results of operations or liquidity, such lawsuits could have, in the aggregate, a material adverse effect on the Company’s operations, consolidated financial condition, results of operations or |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consist of the following as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Accounts payable – trade $ 747 $ 914 Deferred revenue 542 511 Accrued liabilities: Programming costs 1,736 1,914 Labor 1,171 1,306 Capital expenditures 1,898 1,792 Interest 1,368 1,165 Taxes and regulatory fees 512 512 Operating lease liabilities 256 261 Other 1,637 1,360 $ 9,867 $ 9,735 |
Total Debt (Tables)
Total Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Total Debt Summary | A summary of our debt as of September 30, 2023 and December 31, 2022 is as follows: September 30, 2023 December 31, 2022 Principal Amount Carrying Value Fair Value Principal Amount Carrying Value Fair Value Senior unsecured notes $ 27,250 $ 27,165 $ 23,083 $ 26,650 $ 26,567 $ 22,426 Senior secured notes and debentures (a) 55,855 56,201 44,541 56,841 57,213 46,905 Credit facilities (b) 14,483 14,433 14,175 13,877 13,823 13,467 $ 97,588 $ 97,799 $ 81,799 $ 97,368 $ 97,603 $ 82,798 (a) Includes the Company's £625 million fixed-rate British pound sterling denominated notes (the “Sterling Notes”) (remeasured at $762 million and $755 million as of September 30, 2023 and December 31, 2022, respectively, using the exchange rate at the respective dates) and the Company's £650 million aggregate principal amount of Sterling Notes (remeasured at $793 million and $786 million as of September 30, 2023 and December 31, 2022, respectively, using the exchange rate at the respective dates). |
Accounting for Derivative Ins_2
Accounting for Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting for Derivative Instruments and Hedging Activities [Abstract] | |
Income Statement Effects of Financial Instruments | The effect of financial instruments are recorded in other income (expenses), net in the consolidated statements of operations and consisted of the following. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Change in fair value of cross-currency derivative instruments $ 6 $ (322) $ 54 $ (482) Foreign currency remeasurement of Sterling Notes to U.S. dollars 64 129 (14) 304 Gain (loss) on financial instruments, net $ 70 $ (193) $ 40 $ (178) |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue [Abstract] | |
Revenue | The Company’s revenues by product line are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Internet $ 5,776 $ 5,571 $ 17,227 $ 16,585 Video 4,004 4,379 12,446 13,209 Voice 379 391 1,117 1,180 Mobile service 581 435 1,617 1,237 Residential revenue 10,740 10,776 32,407 32,211 Small and medium business 1,085 1,095 3,270 3,257 Enterprise 698 673 2,070 2,003 Commercial revenue 1,783 1,768 5,340 5,260 Advertising sales 384 481 1,123 1,324 Other 677 525 2,026 1,551 $ 13,584 $ 13,550 $ 40,896 $ 40,346 |
Operating Costs and Expenses (T
Operating Costs and Expenses (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 2022 2023 2022 Programming $ 2,595 $ 2,871 $ 8,134 $ 8,820 Other costs of revenue 1,385 1,202 4,080 3,495 Costs to service customers 2,142 2,066 6,306 6,022 Sales and marketing 912 925 2,753 2,669 Other expense 1,290 1,213 3,947 3,644 $ 8,324 $ 8,277 $ 25,220 $ 24,650 |
Other Operating (Income) Expe_2
Other Operating (Income) Expense, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Other Operating (Income) Expense, Net | Other operating expense, net consist of the following for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Special charges, net $ 80 $ 200 $ 42 $ 141 Loss on disposal of assets, net 10 4 4 5 $ 90 $ 204 $ 46 $ 146 |
Other Income (Expenses), Net (T
Other Income (Expenses), Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Other Income (Expenses), Net | Other income (expenses), net consist of the following for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Loss on extinguishment of debt (see Note 3) $ — $ — $ — $ (3) Gain (loss) on financial instruments, net (see Note 4) 70 (193) 40 (178) Net periodic pension benefits 2 207 5 241 Gain (loss) on equity investments, net (87) (50) (237) (53) $ (15) $ (36) $ (192) $ 7 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 2022 2023 2022 Stock options 9,500 50,700 4,266,700 1,455,100 Restricted stock — — 10,300 6,800 Restricted stock units 10,900 175,600 1,546,800 618,700 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details) | 9 Months Ended |
Sep. 30, 2023 | |
Organization and Basis of Presentation [Abstract] | |
Number of reportable segments | 1 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Accounts payable – trade | $ 747 | $ 914 |
Deferred revenue | 542 | 511 |
Accrued liabilities: | ||
Programming costs | 1,736 | 1,914 |
Labor | 1,171 | 1,306 |
Capital expenditures | 1,898 | 1,792 |
Interest | 1,368 | 1,165 |
Taxes and regulatory fees | 512 | 512 |
Operating lease liabilities | 256 | 261 |
Other | 1,637 | 1,360 |
Total accounts payable and accrued liabilities | $ 9,867 | $ 9,735 |
Total Debt (Details)
Total Debt (Details) £ in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 GBP (£) | Dec. 31, 2022 USD ($) | |
Long-term Debt: | ||||||
Principal Amount | $ 97,588 | $ 97,588 | $ 97,368 | |||
Carrying Value | 97,799 | 97,799 | 97,603 | |||
Fair Value | 81,799 | 81,799 | 82,798 | |||
Loss on extinguishment of debt | 0 | $ 0 | 0 | $ 3 | ||
Senior unsecured notes | ||||||
Long-term Debt: | ||||||
Principal Amount | 27,250 | 27,250 | 26,650 | |||
Carrying Value | 27,165 | 27,165 | 26,567 | |||
Senior unsecured notes | Level 1 | ||||||
Long-term Debt: | ||||||
Fair Value | 23,083 | 23,083 | 22,426 | |||
Senior secured notes and debentures(a) | ||||||
Long-term Debt: | ||||||
Principal Amount | 55,855 | 55,855 | 56,841 | |||
Carrying Value | 56,201 | 56,201 | 57,213 | |||
Senior secured notes and debentures(a) | Level 1 | ||||||
Long-term Debt: | ||||||
Fair Value | 44,541 | 44,541 | 46,905 | |||
Credit facilities(b) | ||||||
Long-term Debt: | ||||||
Principal Amount | 14,483 | 14,483 | 13,877 | |||
Carrying Value | 14,433 | 14,433 | 13,823 | |||
Credit facilities(b) | Level 2 | ||||||
Long-term Debt: | ||||||
Fair Value | 14,175 | 14,175 | 13,467 | |||
CCO Holdings | 7.375% senior unsecured notes due March 1, 2031 | ||||||
Long-term Debt: | ||||||
Principal Amount | $ 1,100 | $ 1,100 | ||||
Stated interest rate (percentage) | 7.375% | 7.375% | 7.375% | |||
Charter Operating | ||||||
Long-term Debt: | ||||||
Availability under credit facilities | $ 3,300 | $ 3,300 | ||||
Charter Operating | Term Loan B-3 | ||||||
Long-term Debt: | ||||||
Principal Amount | 750 | $ 750 | ||||
SOFR spread (percentage) | 2.25% | |||||
Charter Operating | Term Loan B-1 | ||||||
Long-term Debt: | ||||||
Principal Amount | 2,300 | $ 2,300 | ||||
SOFR spread (percentage) | 1.75% | |||||
Charter Operating | Term Loan B-2 | ||||||
Long-term Debt: | ||||||
Principal Amount | 3,100 | $ 3,100 | ||||
SOFR spread (percentage) | 1.75% | |||||
Time Warner Cable | 5.750% Sterling Senior Notes Due June 2, 2031 | ||||||
Long-term Debt: | ||||||
Principal Amount | 762 | $ 762 | £ 625 | 755 | ||
Time Warner Cable | 5.250% Sterling Senior Notes Due July 15, 2042 | ||||||
Long-term Debt: | ||||||
Principal Amount | $ 793 | $ 793 | £ 650 | $ 786 |
Accounting for Derivative Ins_3
Accounting for Derivative Instruments and Hedging Activities (Details) £ in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 GBP (£) | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Gain (Loss) On Financial Instruments, Net | |||||||
Change in fair value of cross-currency derivative instruments | $ 6 | $ (322) | $ 54 | $ (482) | |||
Foreign currency remeasurement of Sterling Notes to U.S. dollars | 64 | 129 | (14) | 304 | |||
Gain (loss) on financial instruments, net | $ 70 | $ (193) | $ 40 | $ (178) | |||
Cross Currency Derivatives | |||||||
Derivatives: | |||||||
Notional amount | £ | £ 1,275 | ||||||
Level 2 | Cross Currency Derivatives | |||||||
Derivatives: | |||||||
Derivative Liability | $ 516 | $ 570 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Product Information [Line Items] | |||||
REVENUES | $ 13,584 | $ 13,550 | $ 40,896 | $ 40,346 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable, net | 2,884 | 2,884 | $ 2,869 | ||
Other noncurrent assets | 4,390 | 4,390 | 4,259 | ||
Equipment installment plan receivable | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable, net | 651 | 651 | 577 | ||
Other noncurrent assets | 547 | 547 | $ 261 | ||
Internet | |||||
Product Information [Line Items] | |||||
REVENUES | 5,776 | 5,571 | 17,227 | 16,585 | |
Video | |||||
Product Information [Line Items] | |||||
REVENUES | 4,004 | 4,379 | 12,446 | 13,209 | |
Voice | |||||
Product Information [Line Items] | |||||
REVENUES | 379 | 391 | 1,117 | 1,180 | |
Mobile service | |||||
Product Information [Line Items] | |||||
REVENUES | 581 | 435 | 1,617 | 1,237 | |
Residential revenue | |||||
Product Information [Line Items] | |||||
REVENUES | 10,740 | 10,776 | 32,407 | 32,211 | |
Small and medium business | |||||
Product Information [Line Items] | |||||
REVENUES | 1,085 | 1,095 | 3,270 | 3,257 | |
Enterprise | |||||
Product Information [Line Items] | |||||
REVENUES | 698 | 673 | 2,070 | 2,003 | |
Commercial revenue | |||||
Product Information [Line Items] | |||||
REVENUES | 1,783 | 1,768 | 5,340 | 5,260 | |
Advertising sales | |||||
Product Information [Line Items] | |||||
REVENUES | 384 | 481 | 1,123 | 1,324 | |
Other | |||||
Product Information [Line Items] | |||||
REVENUES | $ 677 | $ 525 | $ 2,026 | $ 1,551 |
Operating Costs and Expenses (D
Operating Costs and Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Operating Costs and Expenses [Abstract] | ||||
Programming | $ 2,595 | $ 2,871 | $ 8,134 | $ 8,820 |
Other costs of revenue | 1,385 | 1,202 | 4,080 | 3,495 |
Costs to service customers | 2,142 | 2,066 | 6,306 | 6,022 |
Sales and marketing | 912 | 925 | 2,753 | 2,669 |
Other expense | 1,290 | 1,213 | 3,947 | 3,644 |
Operating costs and expenses (exclusive of items shown separately in the consolidated statements of operations) | $ 8,324 | $ 8,277 | $ 25,220 | $ 24,650 |
Other Operating (Income) Expe_3
Other Operating (Income) Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Other Income and Expenses [Abstract] | ||||
Special charges, net | $ 80 | $ 200 | $ 42 | $ 141 |
Loss on disposal of assets, net | 10 | 4 | 4 | 5 |
Other operating income, net | $ 90 | $ 204 | $ 46 | $ 146 |
Other Income (Expenses), Net (D
Other Income (Expenses), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Other Income and Expenses [Abstract] | ||||
Loss on extinguishment of debt (see Note 3) | $ 0 | $ 0 | $ 0 | $ (3) |
Gain (loss) on financial instruments, net (see Note 4) | 70 | (193) | 40 | (178) |
Net periodic pension benefits | 2 | 207 | 5 | 241 |
Gain (loss) on equity investments, net | (87) | (50) | (237) | (53) |
Other income (expenses), net | $ (15) | (36) | $ (192) | 7 |
Remeasurement Gain | $ 189 | $ 189 |
Stock Compensation Plans (Detai
Stock Compensation Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Stock Compensation Plans: | ||||
Stock compensation expense | $ 164 | $ 109 | $ 540 | $ 360 |
Stock options | ||||
Stock Compensation Plans: | ||||
Stock options granted in period (shares) | 9,500 | 50,700 | 4,266,700 | 1,455,100 |
Award vesting period | 3 years | |||
Award expiration period | 10 years | |||
Unrecognized compensation cost | $ 472 | $ 472 | ||
Remaining period over which to recognize unrecognized compensation expense | 3 years | |||
Restricted stock | ||||
Stock Compensation Plans: | ||||
Awards other than stock options granted in period (shares) | 0 | 0 | 10,300 | 6,800 |
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) | 10,900 | 175,600 | 1,546,800 | 618,700 |
Award vesting period | 3 years | |||
Unrecognized compensation cost | $ 524 | $ 524 | ||
Remaining period over which to recognize unrecognized compensation expense | 2 years |