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SEC Filings

10-Q
CCO HOLDINGS LLC filed this Form 10-Q on 10/27/2017
Entire Document
 

CCO HOLDINGS, LLC AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
(dollars in millions, except where indicated)


10.     Other Operating Expenses, Net

Other operating expenses, net consist of the following for the periods presented:

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Merger and restructuring costs
$
67

 
$
205

 
$
293

 
$
513

Special charges, net
80

 
4

 
86

 
10

Gain on sale of assets, net
(2
)
 
(3
)
 
(5
)
 
(10
)
 
$
145

 
$
206

 
$
374

 
$
513


Merger and restructuring costs

Merger and restructuring costs represent costs incurred in connection with merger and acquisition transactions and related restructuring, such as advisory, legal and accounting fees, employee retention costs, employee termination costs related to the Transactions and other exit costs. The Company expects to incur additional merger and restructuring costs in connection with the Transactions. Changes in accruals for merger and restructuring costs from December 31, 2016 through September 30, 2017 are presented below:

 
Employee Retention Costs
 
Employee Termination Costs
 
Transaction and Advisory Costs
 
Other Costs
 
Total
Liability, December 31, 2015
$

 
$

 
$
33

 
$

 
$
33

Liability assumed in the Transactions
80

 
9

 
3

 

 
92

Costs incurred
26

 
337

 
66

 
31

 
460

Cash paid
(99
)
 
(102
)
 
(77
)
 
(31
)
 
(309
)
Remaining liability, December 31, 2016
7

 
244

 
25

 

 
276

 
 
 
 
 
 
 
 
 
 
Costs incurred
4

 
186

 
3

 
57

 
250

Cash paid
(9
)
 
(253
)
 
(4
)
 
(45
)
 
(311
)
Remaining liability, September 30, 2017
$
2

 
$
177

 
$
24

 
$
12

 
$
215


In addition to the costs incurred indicated above, the Company recorded $6 million and $43 million of expense related to accelerated vesting of equity awards of terminated employees during the three and nine months ended September 30, 2017, respectively, and $57 million and $202 million during the three and nine months ended September 30, 2016, respectively.

Special charges, net

Special charges, net primarily includes employee termination costs not related to the Transactions and net amounts of litigation settlements. In 2017, special charges, net also includes an $83 million charge related to the Company's withdrawal liability from a multiemployer pension plan.

Gain on sale of assets, net

Gain on sale of assets, net represents the net gain recognized on the sales and disposals of fixed assets and cable systems.

11.    Income Taxes

CCO Holdings is a single member limited liability company not subject to income tax. CCO Holdings holds all operations through indirect subsidiaries. The majority of these indirect subsidiaries are limited liability companies that are not subject to income tax.


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