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SEC Filings

10-Q
CHARTER COMMUNICATIONS, INC. /MO/ filed this Form 10-Q on 07/27/2017
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during the three and six months ended June 30, 2017, respectively, compared to the corresponding periods in 2016 primarily due to a decrease in political and local advertising.

Other revenues consist of revenue from regional sports and news channels (excluding intercompany charges or advertising sales on those channels), home shopping, late payment fees, wire maintenance fees and other miscellaneous revenues. Other revenues increased $87 million and $256 million during the three and six months ended June 30, 2017, respectively, compared to the corresponding periods in 2016 primarily as a result of the Transactions. The Transactions increased other revenues for the three and six months ended June 30, 2017 compared to the corresponding periods in 2016 by $86 million and $255 million, respectively. On a pro forma basis, assuming the Transactions occurred as of January 1, 2015, other revenues decreased by $16 million and $39 million during the three and six months ended June 30, 2017, respectively, compared to the corresponding periods in 2016 primarily due to a settlement incurred in 2016 related to an early contract termination at Legacy TWC and Legacy Bright House.

Operating costs and expenses. The increases in our operating costs and expenses, exclusive of items shown separately in the consolidated statements of operations, are attributable to the following (dollars in millions):

 
Three months ended
June 30, 2017
compared to
three months ended
June 30, 2016
Increase / (Decrease)
 
Six months ended
June 30, 2017
compared to
six months ended
June 30, 2016
Increase / (Decrease)
Programming
$
1,108

 
$
3,009

Regulatory, connectivity and produced content
215

 
601

Costs to service customers
718

 
2,208

Marketing
219

 
636

Transition costs
5

 
35

Other
306

 
990

 
$
2,571

 
$
7,479


Programming costs were approximately $2.6 billion and $1.5 billion, representing 40% and 38% of total operating costs and expenses for the three months ended June 30, 2017 and 2016, respectively, and $5.3 billion and $2.2 billion, representing 40% and 40% of total operating costs and expenses for the six months ended June 30, 2017 and 2016, respectively. The increase in operating costs and expenses for the three and six months ended June 30, 2017 compared to the corresponding prior period was primarily due to the Transactions.

The increase in other expense is attributable to the following (dollars in millions):

 
Three months ended
June 30, 2017
compared to
three months ended
June 30, 2016
Increase / (Decrease)
 
Six months ended
June 30, 2017
compared to
six months ended
June 30, 2016
Increase / (Decrease)
Corporate costs
$
61

 
$
260

Enterprise
80

 
236

Advertising sales expense
84

 
233

Property tax and insurance
39

 
114

Stock compensation expense
2

 
47

Other
40

 
100

 
$
306

 
$
990


The increase in other expense for the three and six months ended June 30, 2017 compared to the corresponding prior period was primarily due to the Transactions.



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