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8-K
CHARTER COMMUNICATIONS, INC. /MO/ filed this Form 8-K on 07/27/2017
Entire Document
 

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO GAAP MEASURES
(dollars in millions)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
 
Actual
 
Actual
 
Actual
 
Actual
 
 
 
 
 
 
 
 
Consolidated net income
$
195

 
$
3,114

 
$
406

 
$
2,926

Plus: Interest expense, net
749

 
593

 
1,462

 
1,047

Income tax (benefit) expense
48

 
(3,179
)
 
73

 
(3,151
)
Depreciation and amortization
2,595

 
1,436

 
5,145

 
1,975

Stock compensation expense
65

 
63

 
134

 
87

Loss on extinguishment of debt
1

 
110

 
35

 
110

Loss on financial instruments, net
70

 
50

 
32

 
55

Other pension benefits
(13
)
 
(520
)
 
(26
)
 
(520
)
Other, net
137

 
553

 
240

 
574

 
 
 
 
 
 
 
 
Adjusted EBITDA (a)
3,847

 
2,220

 
7,501

 
3,103

Less: Purchases of property, plant and equipment
(2,148
)
 
(1,260
)
 
(3,703
)
 
(1,689
)
 
 
 
 
 
 
 
 
Adjusted EBITDA less capital expenditures
$
1,699

 
$
960

 
$
3,798

 
$
1,414

 
 
 
 
 
 
 
 
Net cash flows from operating activities
$
2,945

 
$
1,590

 
$
5,788

 
$
2,014

Less: Purchases of property, plant and equipment
(2,148
)
 
(1,260
)
 
(3,703
)
 
(1,689
)
Change in accrued expenses related to capital expenditures
347

 
194

 
197

 
138

 
 
 
 
 
 
 
 
Free cash flow
$
1,144

 
$
524

 
$
2,282

 
$
463

 
 
 
 
 
 
 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
 
Actual
 
Pro Forma (b)
 
Actual
 
Pro Forma (b)
 
 
 
 
 
 
 
 
Consolidated net income
$
195

 
$
331

 
$
406

 
$
580

Plus: Interest expense, net
749

 
723

 
1,462

 
1,431

Income tax expense
48

 
157

 
73

 
272

Depreciation and amortization
2,595

 
2,338

 
5,145

 
4,623

Stock compensation expense
65

 
72

 
134

 
138

Loss on extinguishment of debt
1

 
110

 
35

 
110

Loss on financial instruments, net
70

 
50

 
32

 
55

Other pension benefits
(13
)
 
(526
)
 
(26
)
 
(536
)
Other, net
137

 
287

 
240

 
302

 
 
 
 
 
 
 
 
Adjusted EBITDA (a)
3,847

 
3,542

 
7,501

 
6,975

Less: Purchases of property, plant and equipment
(2,148
)
 
(2,075
)
 
(3,703
)
 
(3,909
)
 
 
 
 
 
 
 
 
Adjusted EBITDA less capital expenditures
$
1,699

 
$
1,467

 
$
3,798

 
$
3,066



(a)
See pages 1 and 2 of this addendum for detail of the components included within Adjusted EBITDA.
(b)
Pro forma results reflect certain acquisitions of cable systems in 2016 as if they occurred as of January 1, 2015.

The above schedule is presented in order to reconcile Adjusted EBITDA and free cash flows, both non-GAAP measures, to the most directly comparable GAAP measures in accordance with Section 401(b) of the Sarbanes-Oxley Act.

Addendum to Charter Communications, Inc. Second Quarter 2017 Earnings Release
Page 7 of 8