Noncontrolling Interests (Notes)

6 Months Ended

Jun. 30, 2022

Noncontrolling interests represents consolidated subsidiaries of which the Company owns less than 100%. The Company is a holding company whose principal asset is a controlling equity interest in Charter Holdings, the indirect owner of the Company’s cable systems. Noncontrolling interests on the Company’s balance sheet consist primarily of Advance/Newhouse Partnership's (“A/N”) equity interests in Charter Holdings, which is comprised of a common ownership interest and prior to June 18, 2021, a convertible preferred ownership interest.

Net income of Charter Holdings attributable to A/N’s common noncontrolling interest for financial reporting purposes is based on the weighted average effective common ownership interest of approximately 11% during 2022 and 7% prior to conversion of the preferred units and 11% after conversion during 2021, and was $236 million and $422 million for the three and six months ended June 30, 2022, respectively, and $105 million and $181 million for the three and six months ended June 30, 2021, respectively. Net income of Charter Holdings attributable to A/N's preferred noncontrolling interest for financial reporting purposes is based on the preferred dividend which was $32 million and $70 million for the three and six months ended June 30, 2021, respectively. In June 2021, the Company caused the conversion of all of A/N's Charter Holdings convertible preferred units into Charter Holdings common units.

The following table represents Charter Holdings' purchase of Charter Holdings common units from A/N and the effect on total shareholders' equity during the three and six months ended June 30, 2022 and 2021.


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Number of units purchased	1,063,333		912,034		1,720,601		1,704,688

Amount of units purchased	$	578	$	583	$	994	$	1,090
Decrease in noncontrolling interest based on carrying value	$	(238)	$	(213)	$	(394)	$	(405)
Decrease in additional paid-in-capital, net of tax	$	(256)	$	(279)	$	(453)	$	(516)

Total shareholders' equity was also adjusted during the three and six months ended June 30, 2022 and 2021 due to the changes in Charter Holdings' ownership including the impact of the preferred unit conversion in June 2021 as follows.


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Decrease in noncontrolling interest	$	(244)	$	(1,333)	$	(494)	$	(1,508)
Increase in additional paid-in-capital, net of tax	$	183	$	1,003	$	372	$	1,134