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SEC Filings

10-Q
CCO HOLDINGS LLC filed this Form 10-Q on 10/27/2017
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The following tables present our major capital expenditures categories on an actual and pro forma basis, assuming the Transactions occurred as of January 1, 2015, in accordance with National Cable and Telecommunications Association (“NCTA”) disclosure guidelines for the three and nine months ended September 30, 2017 and 2016. The disclosure is intended to provide more consistency in the reporting of capital expenditures among peer companies in the cable industry. These disclosure guidelines are not required disclosures under GAAP, nor do they impact our accounting for capital expenditures under GAAP (dollars in millions):

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
 
Actual
Customer premise equipment (a)
$
855

 
$
662

 
$
2,579

 
$
1,177

Scalable infrastructure (b)
632

 
441

 
1,282

 
937

Line extensions (c)
319

 
249

 
864

 
467

Upgrade/rebuild (d)
163

 
156

 
415

 
307

Support capital (e)
424

 
240

 
956

 
549

Total capital expenditures
$
2,393

 
$
1,748

 
$
6,096

 
$
3,437

 
 
 
 
 
 
 
 
Capital expenditures included in total related to:
 
 
 
 
 
 
 
Commercial services
$
339

 
$
306

 
$
941

 
$
566

Transition (f)
$
125

 
$
109

 
$
287

 
$
273

 
Nine Months Ended September 30, 2016
 
Pro Forma
Customer premise equipment (a)
$
2,074

Scalable infrastructure (b)
1,556

Line extensions (c)
751

Upgrade/rebuild (d)
461

Support capital (e)
815

Total capital expenditures
$
5,657

 
 
Capital expenditures included in total related to:
 
Commercial services
$
931

Transition (f)
$
273


(a)
Customer premise equipment includes costs incurred at the customer residence to secure new customers and revenue generating units. It also includes customer installation costs and customer premise equipment (e.g., set-top boxes and cable modems).
(b)
Scalable infrastructure includes costs not related to customer premise equipment, to secure growth of new customers and revenue generating units, or provide service enhancements (e.g., headend equipment).
(c)
Line extensions include network costs associated with entering new service areas (e.g., fiber/coaxial cable, amplifiers, electronic equipment, make-ready and design engineering).
(d)
Upgrade/rebuild includes costs to modify or replace existing fiber/coaxial cable networks, including betterments.
(e)
Support capital includes costs associated with the replacement or enhancement of non-network assets due to technological and physical obsolescence (e.g., non-network equipment, land, buildings and vehicles).
(f)
Transition represents incremental costs incurred to integrate the Legacy TWC and Legacy Bright House operations and to bring the three companies' systems and processes into a uniform operating structure.

Recently Issued Accounting Standards

See Note 17 to the accompanying consolidated financial statements contained in “Item 1. Financial Statements” for a discussion of recently issued accounting standards.



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