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SEC Filings

10-Q
CHARTER COMMUNICATIONS, INC. /MO/ filed this Form 10-Q on 10/26/2017
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CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
(dollars in millions, except per share amounts and where indicated)


No tax years for Charter, Charter Holdings, or Charter Communications Holding Company, LLC for income tax purposes, are currently under examination by the IRS. Legacy Charter’s tax years ending 2014 through 2016 remain subject to examination and assessment. Years prior to 2014 remain open solely for purposes of examination of Legacy Charter’s loss and credit carryforwards. The IRS is currently examining Legacy TWC’s income tax returns for 2011 through 2014. Legacy TWC’s tax year 2015 remains subject to examination and assessment. Prior to Legacy TWC’s separation from Time Warner Inc. (“Time Warner”) in March 2009 (the “Separation”), Legacy TWC was included in the consolidated U.S. federal and certain state income tax returns of Time Warner. The IRS is currently examining Time Warner’s 2008 through 2010 income tax returns. Time Warner’s income tax returns for 2005 to 2007, which are periods prior to the Separation, were settled with the exception of an immaterial item that has been referred to the IRS Appeals Division. The Company does not anticipate that these examinations will have a material impact on the Company’s consolidated financial position or results of operations. In addition, the Company is also subject to ongoing examinations of the Company’s tax returns by state and local tax authorities for various periods. Activity related to these state and local examinations did not have a material impact on the Company’s consolidated financial position or results of operations during the three and nine months ended September 30, 2017, nor does the Company anticipate a material impact in the future.

13.    Earnings Per Share

Basic earnings per common share is computed by dividing net income attributable to Charter shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share considers the impact of potentially dilutive securities using the treasury stock and if-converted methods and is based on the weighted average number of shares used for the basic earnings per share calculation, adjusted for the dilutive effect of stock options, restricted stock, restricted stock units, equity awards with market conditions and Charter Holdings convertible preferred units and common units. Charter Holdings common and convertible preferred units were not included in the computation of diluted earnings per share for the three and nine months ended September 30, 2017 and for the three months ended September 30, 2016 as their effect was antidilutive. The following is the computation of diluted earnings per common share for the three and nine months ended September 30, 2017 and 2016.

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Numerator:
 
 
 
 
 
 
 
Net income attributable to Charter shareholders
$
48

 
$
189

 
$
342

 
$
3,068

Effect of dilutive securities:
 
 
 
 
 
 
 
Charter Holdings common units

 

 

 
53

Charter Holdings convertible preferred units

 

 

 
55

Net income attributable to Charter shareholders after assumed conversions
$
48

 
$
189

 
$
342

 
$
3,176

 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
Weighted average common shares outstanding, basic
253,923,805

 
271,263,259

 
262,074,603

 
185,706,106

Effect of dilutive securities:
 
 
 
 
 
 
 
Assumed exercise or issuance of shares relating to stock plans
4,418,046

 
4,109,943

 
4,288,999

 
2,736,562

Weighted average Charter Holdings common units

 

 

 
15,384,794

Weighted average Charter Holdings convertible preferred units

 

 

 
4,632,686

Weighted average common shares outstanding, diluted
258,341,851

 
275,373,202

 
266,363,602

 
208,460,148

 
 
 
 
 
 
 
 
Basic earnings per common share attributable to Charter shareholders
$
0.19

 
$
0.70

 
$
1.31

 
$
16.52

Diluted earnings per common share attributable to Charter shareholders
$
0.19

 
$
0.69

 
$
1.29

 
$
15.23




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