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Consolidating Schedules (Notes)
6 Months Ended
Jun. 30, 2017
Consolidating Schedules [Abstract]  
Consolidating Schedules
Consolidating Schedules

Each of Charter Operating, TWC, LLC, TWCE, CCO Holdings and certain subsidiaries jointly, severally, fully and unconditionally guarantee the outstanding debt securities of the others (other than the CCO Holdings notes) on an unsecured senior basis and the condensed consolidating financial information has been prepared and presented pursuant to SEC Regulation S-X Rule 3-10, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered. Certain Charter Operating subsidiaries that are regulated telephone entities only become guarantor subsidiaries upon approval by regulators. This information is not intended to present the financial position, results of operations and cash flows of the individual companies or groups of companies in accordance with generally accepted accounting principles.
 
The “Charter Operating and Restricted Subsidiaries” column is presented to comply with the terms of the Credit Agreement.

The “Safari Escrow Entities” column included in the condensed consolidating financial statements for the six months ended June 30, 2016 consists of CCOH Safari, CCO Safari II and CCO Safari III. CCOH Safari, CCO Safari II and CCO Safari III issued the CCOH Safari notes, CCO Safari II notes and the CCO Safari III credit facilities, respectively. Upon closing of the TWC Transaction, the CCOH Safari notes became obligations of CCO Holdings and CCO Holdings Capital and the CCO Safari II notes and CCO Safari III credit facilities became obligations of Charter Operating and Charter Communications Operating Capital Corp. CCOH Safari merged into CCO Holdings and CCO Safari II and CCO Safari III merged into Charter Operating.

Condensed consolidating financial statements as of June 30, 2017 and December 31, 2016 and for the six months ended June 30, 2017 and 2016 follow.
Charter Communications, Inc. and Subsidiaries
Condensed Consolidating Balance Sheets
As of June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Guarantor Subsidiaries
 
Guarantor Subsidiaries
 
 
 
 
 
Charter
 
Intermediate Holding Companies
 
CCO Holdings
 
Charter Operating and Restricted Subsidiaries
 
Eliminations
 
Charter Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
 
CURRENT ASSETS:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
23

 
$
150

 
$

 
$
521

 
$

 
$
694

Accounts receivable, net
46

 
27

 

 
1,416

 

 
1,489

Receivables from related party

 
585

 
51

 

 
(636
)
 

Prepaid expenses and other current assets

 
62

 

 
319

 

 
381

Total current assets
69

 
824

 
51

 
2,256

 
(636
)
 
2,564

 
 
 
 
 
 
 
 
 
 
 
 
INVESTMENT IN CABLE PROPERTIES:
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, net

 
237

 

 
32,711

 

 
32,948

Customer relationships, net

 

 

 
13,231

 

 
13,231

Franchises

 

 

 
67,316

 

 
67,316

Goodwill

 

 

 
29,554

 

 
29,554

Total investment in cable properties, net

 
237

 

 
142,812

 

 
143,049

 
 
 
 
 
 
 
 
 
 
 
 
INVESTMENT IN SUBSIDIARIES
63,084

 
71,843

 
87,289

 

 
(222,216
)
 

LOANS RECEIVABLE – RELATED PARTY
178

 
655

 
511

 

 
(1,344
)
 

OTHER NONCURRENT ASSETS

 
215

 

 
1,132

 

 
1,347

 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
63,331

 
$
73,774

 
$
87,851

 
$
146,200

 
$
(224,196
)
 
$
146,960

 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS’/MEMBER’S EQUITY
 
 
 
 
 
 
CURRENT LIABILITIES:
 
 
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
$
14

 
$
782

 
$
267

 
$
7,060

 
$

 
$
8,123

Payables to related party
19

 

 

 
617

 
(636
)
 

Total current liabilities
33

 
782

 
267

 
7,677

 
(636
)
 
8,123

 
 
 
 
 
 
 
 
 
 
 
 
LONG-TERM DEBT

 

 
15,741

 
47,507

 

 
63,248

LOANS PAYABLE – RELATED PARTY

 

 

 
1,344

 
(1,344
)
 

DEFERRED INCOME TAXES
26,513

 
22

 

 
39

 

 
26,574

OTHER LONG-TERM LIABILITIES
157

 
105

 

 
2,320

 

 
2,582

 
 
 
 
 
 
 
 
 
 
 
 
SHAREHOLDERS’/MEMBER’S EQUITY
 
 
 
 
 
 
 
 
 
 
 
Controlling interest
36,628

 
63,084

 
71,843

 
87,289

 
(222,216
)
 
36,628

Noncontrolling interests

 
9,781

 

 
24

 

 
9,805

Total shareholders’/member’s equity
36,628

 
72,865

 
71,843

 
87,313

 
(222,216
)
 
46,433

 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities and shareholders’/member’s equity
$
63,331

 
$
73,774

 
$
87,851

 
$
146,200

 
$
(224,196
)
 
$
146,960


Charter Communications, Inc. and Subsidiaries
Condensed Consolidating Balance Sheets
As of December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Guarantor Subsidiaries
 
Guarantor Subsidiaries
 
 
 
 
 
Charter
 
Intermediate Holding Companies
 
CCO Holdings
 
Charter Operating and Restricted Subsidiaries
 
Eliminations
 
Charter Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
 
CURRENT ASSETS:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
57

 
$
154

 
$

 
$
1,324

 
$

 
$
1,535

Accounts receivable, net
34

 
11

 

 
1,387

 

 
1,432

Receivables from related party
170

 
451

 
62

 

 
(683
)
 

Prepaid expenses and other current assets

 
33

 

 
300

 

 
333

Total current assets
261

 
649

 
62

 
3,011

 
(683
)
 
3,300

 
 
 
 
 
 
 
 
 
 
 
 
INVESTMENT IN CABLE PROPERTIES:
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, net

 
245

 

 
32,718

 

 
32,963

Customer relationships, net

 

 

 
14,608

 

 
14,608

Franchises

 

 

 
67,316

 

 
67,316

Goodwill

 

 

 
29,509

 

 
29,509

Total investment in cable properties, net

 
245

 

 
144,151

 

 
144,396

 
 
 
 
 
 
 
 
 
 
 
 
INVESTMENT IN SUBSIDIARIES
66,692

 
75,838

 
88,760

 

 
(231,290
)
 

LOANS RECEIVABLE – RELATED PARTY

 
640

 
494

 

 
(1,134
)
 

OTHER NONCURRENT ASSETS

 
214

 

 
1,157

 

 
1,371

 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
66,953

 
$
77,586

 
$
89,316

 
$
148,319

 
$
(233,107
)
 
$
149,067

 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS’/MEMBER’S EQUITY
 
 
 
 
 
 
CURRENT LIABILITIES:
 
 
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
$
22

 
$
625

 
$
219

 
$
6,678

 
$

 
$
7,544

Payables to related party

 

 

 
683

 
(683
)
 

Current portion of long-term debt

 

 

 
2,028

 

 
2,028

Total current liabilities
22

 
625

 
219

 
9,389

 
(683
)
 
9,572

 
 
 
 
 
 
 
 
 
 
 
 
LONG-TERM DEBT

 

 
13,259

 
46,460

 

 
59,719

LOANS PAYABLE – RELATED PARTY

 

 

 
1,134

 
(1,134
)
 

DEFERRED INCOME TAXES
26,637

 
3

 

 
25

 

 
26,665

OTHER LONG-TERM LIABILITIES
155

 
64

 

 
2,526

 

 
2,745

 
 
 
 
 
 
 
 
 
 
 
 
SHAREHOLDERS’/MEMBER’S EQUITY
 
 
 
 
 
 
 
 
 
 
 
Controlling interest
40,139

 
66,692

 
75,838

 
88,760

 
(231,290
)
 
40,139

Noncontrolling interests

 
10,202

 

 
25

 

 
10,227

Total shareholders’/member’s equity
40,139

 
76,894

 
75,838

 
88,785

 
(231,290
)
 
50,366

 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities and shareholders’/member’s equity
$
66,953

 
$
77,586

 
$
89,316

 
$
148,319

 
$
(233,107
)
 
$
149,067



Charter Communications, Inc. and Subsidiaries
Condensed Consolidating Statements of Operations
For the six months ended June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Guarantor Subsidiaries
 
Guarantor Subsidiaries
 
 
 
 
 
Charter
 
Intermediate Holding Companies
 
CCO Holdings
 
Charter Operating and Restricted Subsidiaries
 
Eliminations
 
Charter Consolidated
REVENUES
$
61

 
$
619

 
$

 
$
20,521

 
$
(680
)
 
$
20,521

 
 
 
 
 
 
 
 
 
 
 
 
COSTS AND EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
Operating costs and expenses (exclusive of items shown separately below)
61

 
607

 

 
13,166

 
(680
)
 
13,154

Depreciation and amortization

 
5

 

 
5,140

 

 
5,145

Other operating expenses, net

 

 

 
229

 

 
229

 
61

 
612

 

 
18,535

 
(680
)
 
18,528

Income from operations

 
7

 

 
1,986

 

 
1,993

 
 
 
 
 
 
 
 
 
 
 
 
OTHER INCOME (EXPENSES):
 
 
 
 
 
 
 
 
 
 
 
Interest income (expense), net
2

 
9

 
(404
)
 
(1,069
)
 

 
(1,462
)
Loss on extinguishment of debt

 

 
(33
)
 
(2
)
 

 
(35
)
Loss on financial instruments, net

 

 

 
(32
)
 

 
(32
)
Other pension benefits

 

 

 
26

 

 
26

Other expense, net

 
(11
)
 

 

 

 
(11
)
Equity in income of subsidiaries
327

 
442

 
879

 

 
(1,648
)
 

 
329

 
440

 
442

 
(1,077
)
 
(1,648
)
 
(1,514
)
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
329

 
447

 
442

 
909

 
(1,648
)
 
479

INCOME TAX EXPENSE
(35
)
 
(9
)
 

 
(29
)
 

 
(73
)
Consolidated net income
294

 
438

 
442

 
880

 
(1,648
)
 
406

Less: Net income attributable to noncontrolling interests

 
(111
)
 

 
(1
)
 

 
(112
)
Net income
$
294

 
$
327

 
$
442

 
$
879

 
$
(1,648
)
 
$
294



Charter Communications, Inc. and Subsidiaries
Condensed Consolidating Statements of Operations
For the six months ended June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Guarantor Subsidiaries
 
 
 
Guarantor Subsidiaries
 
 
 
 
 
Charter
 
Intermediate Holding Companies
 
Safari Escrow Entities
 
CCO Holdings
 
Charter Operating and Restricted Subsidiaries
 
Eliminations
 
Charter Consolidated
REVENUES
$
162

 
$
391

 
$

 
$

 
$
8,691

 
$
(553
)
 
$
8,691

 
 
 
 
 
 
 
 
 
 
 
 
 
 
COSTS AND EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating costs and expenses (exclusive of items shown separately below)
162

 
383

 

 

 
5,683

 
(553
)
 
5,675

Depreciation and amortization

 
1

 

 

 
1,974

 

 
1,975

Other operating expenses, net
262

 

 

 

 
307

 

 
569

 
424

 
384

 

 

 
7,964

 
(553
)
 
8,219

Income (loss) from operations
(262
)
 
7

 

 

 
727

 

 
472

 
 
 
 
 
 
 
 
 
 
 
 
 
 
OTHER INCOME (EXPENSES):
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income (expense), net

 
5

 
(390
)
 
(350
)
 
(312
)
 

 
(1,047
)
Loss on extinguishment of debt

 

 

 
(110
)
 

 

 
(110
)
Loss on financial instruments, net

 

 

 

 
(55
)
 

 
(55
)
Other pension benefits

 

 

 

 
520

 

 
520

Other expense, net

 
(5
)
 

 

 

 

 
(5
)
Equity in income (loss) of subsidiaries
(19
)
 
23

 

 
873

 

 
(877
)
 

 
(19
)
 
23

 
(390
)
 
413

 
153

 
(877
)
 
(697
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
(281
)
 
30

 
(390
)
 
413

 
880

 
(877
)
 
(225
)
INCOME TAX BENEFIT (EXPENSE)
3,160

 
(2
)
 

 

 
(7
)
 

 
3,151

Consolidated net income (loss)
2,879

 
28

 
(390
)
 
413

 
873

 
(877
)
 
2,926

Less: Net income attributable to noncontrolling interests

 
(47
)
 

 

 

 

 
(47
)
Net income (loss)
$
2,879

 
$
(19
)
 
$
(390
)
 
$
413

 
$
873

 
$
(877
)
 
$
2,879




Charter Communications, Inc. and Subsidiaries
Condensed Consolidating Statements of Comprehensive Income (Loss)
For the six months ended June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Guarantor Subsidiaries
 
Guarantor Subsidiaries
 
 
 
 
 
Charter
 
Intermediate Holding Companies
 
CCO Holdings
 
Charter Operating and Restricted Subsidiaries
 
Eliminations
 
Charter Consolidated
Consolidated net income
$
294

 
$
438

 
$
442

 
$
880

 
$
(1,648
)
 
$
406

Net impact of interest rate derivative instruments
3

 
3

 
3

 
3

 
(9
)
 
3

Consolidated comprehensive income
297

 
441

 
445

 
883

 
(1,657
)
 
409

Less: Comprehensive income attributable to noncontrolling interests

 
(111
)
 

 
(1
)
 

 
(112
)
Comprehensive income
$
297

 
$
330

 
$
445

 
$
882

 
$
(1,657
)
 
$
297



Charter Communications, Inc. and Subsidiaries
Condensed Consolidating Statements of Comprehensive Income (Loss)
For the six months ended June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Guarantor Subsidiaries
 
 
 
Guarantor Subsidiaries
 
 
 
 
 
Charter
 
Intermediate Holding Companies
 
Safari Escrow Entities
 
CCO Holdings
 
Charter Operating and Restricted Subsidiaries
 
Eliminations
 
Charter Consolidated
Consolidated net income (loss)
$
2,879

 
$
28

 
$
(390
)
 
$
413

 
$
873

 
$
(877
)
 
$
2,926

Net impact of interest rate derivative instruments
4

 
4

 

 
4

 
4

 
(12
)
 
4

Consolidated comprehensive income (loss)
$
2,883

 
$
32

 
$
(390
)
 
$
417

 
$
877

 
$
(889
)
 
$
2,930

Less: Comprehensive income attributable to noncontrolling interests

 
(47
)
 

 

 

 

 
(47
)
Comprehensive income (loss)
$
2,883

 
$
(15
)
 
$
(390
)
 
$
417

 
$
877

 
$
(889
)
 
$
2,883






Charter Communications, Inc. and Subsidiaries
Condensed Consolidating Statements of Cash Flows
For the six months ended June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Guarantor Subsidiaries
 
Guarantor Subsidiaries
 
 
 
 
 
Charter
 
Intermediate Holding Companies
 
CCO Holdings
 
Charter Operating and Restricted Subsidiaries
 
Eliminations
 
Charter Consolidated
NET CASH FLOWS FROM OPERATING ACTIVITIES
$
135

 
$
25

 
$
(353
)
 
$
5,981

 
$

 
$
5,788

 
 
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
 
Purchases of property, plant and equipment

 

 

 
(3,703
)
 

 
(3,703
)
Change in accrued expenses related to capital expenditures

 

 

 
197

 

 
197

Contributions to subsidiaries
(87
)
 

 
(693
)
 

 
780

 

Distributions from subsidiaries
4,233

 
4,622

 
3,228

 

 
(12,083
)
 

Other, net

 

 

 
(49
)
 

 
(49
)
Net cash flows from investing activities
4,146

 
4,622

 
2,535

 
(3,555
)
 
(11,303
)
 
(3,555
)
 
 
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
 
Borrowings of long-term debt

 

 
3,246

 
3,900

 

 
7,146

Repayments of long-term debt

 

 
(775
)
 
(4,754
)
 

 
(5,529
)
Borrowings (repayments) loans payable - related parties
(178
)
 

 

 
178

 

 

Payments for debt issuance costs

 

 
(31
)
 
(11
)
 

 
(42
)
Purchase of treasury stock
(4,223
)
 

 

 

 

 
(4,223
)
Proceeds from exercise of stock options
86

 

 

 

 

 
86

Purchase of noncontrolling interest

 
(429
)
 

 

 

 
(429
)
Distributions to noncontrolling interest

 
(75
)
 

 

 

 
(75
)
Contributions from parent

 
87

 

 
693

 
(780
)
 

Distributions to parent

 
(4,233
)
 
(4,622
)
 
(3,228
)
 
12,083

 

Other, net

 
(1
)
 

 
(7
)
 

 
(8
)
Net cash flows from financing activities
(4,315
)
 
(4,651
)
 
(2,182
)
 
(3,229
)
 
11,303

 
(3,074
)
 
 
 
 
 
 
 
 
 
 
 
 
NET DECREASE IN CASH AND CASH EQUIVALENTS
(34
)
 
(4
)
 

 
(803
)
 

 
(841
)
CASH AND CASH EQUIVALENTS, beginning of period
57

 
154

 

 
1,324

 

 
1,535

 
 
 
 
 
 
 
 
 
 
 
 
CASH AND CASH EQUIVALENTS, end of period
$
23

 
$
150

 
$

 
$
521

 
$

 
$
694


Charter Communications, Inc. and Subsidiaries
Condensed Consolidating Statements of Cash Flows
For the six months ended June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Guarantor Subsidiaries
 
 
 
Guarantor Subsidiaries
 
 
 
 
 
Charter
 
Intermediate Holding Companies
 
Safari Escrow Entities
 
CCO Holdings
 
Charter Operating and Restricted Subsidiaries
 
Eliminations
 
Charter Consolidated
NET CASH FLOWS FROM OPERATING ACTIVITIES
$
(258
)
 
$
(13
)
 
$
(463
)
 
$
(321
)
 
$
3,069

 
$

 
$
2,014

 
 
 
 
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchases of property, plant and equipment

 

 

 

 
(1,689
)
 

 
(1,689
)
Change in accrued expenses related to capital expenditures

 

 

 

 
138

 

 
138

Purchases of cable systems, net of cash acquired
(26,781
)
 
(2,021
)
 

 

 
(8
)
 

 
(28,810
)
Contribution to subsidiary
(949
)
 
(478
)
 

 
(437
)
 

 
1,864

 

Distributions from subsidiaries
23,069

 
25,072

 

 
2,878

 

 
(51,019
)
 

Change in restricted cash and cash equivalents

 

 
22,264

 

 

 

 
22,264

Other, net

 

 

 

 
(6
)
 

 
(6
)
Net cash flows from investing activities
(4,661
)
 
22,573

 
22,264

 
2,441

 
(1,565
)
 
(49,155
)
 
(8,103
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings of long-term debt

 

 

 
3,201

 
2,796

 

 
5,997

Repayments of long-term debt

 

 

 
(2,937
)
 
(1,133
)
 

 
(4,070
)
Borrowings (payments) loans payable - related parties

 
(300
)
 
553

 
(71
)
 
(182
)
 

 

Payments for debt issuance costs

 

 

 
(73
)
 
(210
)
 

 
(283
)
Issuance of equity
5,000

 

 

 

 

 

 
5,000

Purchase of treasury stock
(99
)
 

 

 

 

 

 
(99
)
Proceeds from exercise of stock options
24

 

 

 

 

 

 
24

Distributions to noncontrolling interest

 
(18
)
 

 

 

 

 
(18
)
Proceeds from termination of interest rate derivatives

 

 

 

 
88

 

 
88

Contributions from parent

 
949

 

 
478

 
437

 
(1,864
)
 

Distributions to parent

 
(23,069
)
 
(22,353
)
 
(2,719
)
 
(2,878
)
 
51,019

 

Other, net

 
2

 
(1
)
 
1

 
(2
)
 

 

Net cash flows from financing activities
4,925

 
(22,436
)
 
(21,801
)
 
(2,120
)
 
(1,084
)
 
49,155

 
6,639

 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET INCREASE IN CASH AND CASH EQUIVALENTS
6

 
124

 

 

 
420

 

 
550

CASH AND CASH EQUIVALENTS, beginning of period

 

 

 

 
5

 

 
5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
CASH AND CASH EQUIVALENTS, end of period
$
6

 
$
124

 
$

 
$

 
$
425

 
$

 
$
555