Quarterly report pursuant to Section 13 or 15(d)

Investment in Charter Accounted for Using the Equity Method (Tables)

v3.5.0.2
Investment in Charter Accounted for Using the Equity Method (Tables)
6 Months Ended
Jun. 30, 2016
Investments in Affiliates Accounted for Using the Equity Method  
Schedule of allocation of excess basis within memo accounts used for equity accounting purposes

The excess basis is $1,199 million as of June 30, 2016 and has been allocated within memo accounts used for equity accounting purposes as follows (amounts in millions):

 

 

 

 

 

 

Property and equipment

    

$

254

 

Customer relationships

 

 

420

 

Franchise fees

 

 

1,170

 

Trademarks

 

 

29

 

Goodwill

 

 

64

 

Debt

 

 

(43)

 

Deferred income tax liability

 

 

(695)

 

 

 

$

1,199

 

 

Summary of financial information for Charter

Summarized unaudited financial information for Charter is as follows (amounts in millions):

Charter condensed consolidated balance sheet

 

 

 

 

 

 

 

 

 

    

June 30, 2016

 

December 31, 2015

 

Current assets

 

$

2,325

 

345

 

Property and equipment, net

 

 

33,358

 

8,345

 

Goodwill

 

 

29,692

 

1,168

 

Intangible assets, net

 

 

82,399

 

6,862

 

Other assets

 

 

1,421

 

22,596

 

Total assets

 

$

149,195

 

39,316

 

Current liabilities

 

$

8,807

 

1,972

 

Deferred income taxes

 

 

26,339

 

1,590

 

Long-term debt

 

 

60,132

 

35,723

 

Other liabilities

 

 

2,885

 

77

 

Equity

 

 

51,032

 

(46)

 

Total liabilities and shareholders’ equity

 

$

149,195

 

39,316

 

Charter condensed consolidated statement of operations

 

 

 

 

 

 

 

 

 

 

 

Three months ended 

    

Six months ended

 

June 30,

 

June 30,

 

2016

 

2015

 

2016

 

2015

Revenue

$

6,161

 

2,430

 

8,691

 

4,792

Cost and expenses:

 

 

 

 

 

 

 

 

Operating costs and expenses (excluding depreciation and amortization)

 

(4,004)

 

(1,601)

 

(5,675)

 

(3,182)

Depreciation and amortization

 

(1,436)

 

(528)

 

(1,975)

 

(1,042)

Other operating expenses, net

 

(31)

 

(32)

 

(49)

 

(50)

 

 

(5,471)

 

(2,161)

 

(7,699)

 

(4,274)

Operating income

 

690

 

269

 

992

 

518

Interest expense

 

(593)

 

(229)

 

(1,047)

 

(518)

Other income (expense), net

 

(162)

 

(127)

 

(170)

 

(133)

Income tax benefit (expense)

 

3,179

 

(35)

 

3,151

 

(70)

Net income (loss)

 

3,114

 

(122)

 

2,926

 

(203)

Less: Net income attributable to noncontrolling interests

 

47

 

 —

 

47

 

 —

Net income (loss) attributable to Charter shareholders

$

3,067

 

(122)

 

2,879

 

(203)