☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended | December 31, 2019 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from | to |
Commission File Number | Registrant; State of Incorporation; Address and Telephone Number | IRS Employer Identification No. | ||||||||||||||||||||||||
001-38126 |
|
38-3980194 | ||||||||||||||||||||||||
Altice USA, Inc. | ||||||||||||||||||||||||||
Delaware | ||||||||||||||||||||||||||
1 Court Square West | ||||||||||||||||||||||||||
Long Island City, | New York | 11101 | ||||||||||||||||||||||||
(516) | 803-2300 |
Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act |
Yes
|
☒ |
No
|
☐ | ||||||||||||||||||||||||||||
Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act |
Yes
|
☐ |
No
|
☒ | ||||||||||||||||||||||||||||
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
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||||||||||||||||||||||||||||||||
Yes
|
☒ |
No
|
☐ |
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). | ||||||||||||||||||||||||||||||||||||||
Yes
|
☒ |
No
|
☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
|
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act).
|
Yes | ☐ | No | ☒ |
Aggregate market value of the voting and non-voting common equity held by non-affiliates of Altice USA, Inc. computed by reference to the price at which the common equity was last sold on the New York Stock Exchange as of June 30, 2019:
|
$ | 7,942,908,370 |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Class A Common Stock, par value $0.01 per share | ATUS | NYSE |
Number of shares of common stock outstanding as of February 6, 2020 | 627,953,994 |
Page | |||||||||||
Part I | |||||||||||
1. |
Business
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1A. |
Risk Factors
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1B. |
Unresolved Staff Comments
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2. |
Properties
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3. |
Legal Proceedings
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4. |
Mine Safety Disclosures
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Part II | |||||||||||
5. | Market for the Registrants' Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | ||||||||||
6. |
Selected Financial Data
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7. | Management's Discussion and Analysis of Financial Condition and Results of Operations | ||||||||||
7A. |
Quantitative and Qualitative Disclosures About Market Risk
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8. |
Financial Statements and Supplementary Data
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9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | ||||||||||
9A. |
Controls and Procedures
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9B. |
Other Information
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Part III | |||||||||||
10. | Directors and Executive Officers and Corporate Governance | * | |||||||||
11. |
Executive Compensation
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* | |||||||||
12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholders Matters | * | |||||||||
13. |
Certain Relationships and Related Transactions, and Director Independence
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* | |||||||||
14. |
Principal Accountant Fees and Services
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* | |||||||||
Part IV | |||||||||||
15. |
Exhibits and Financial Statement Schedules
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Years ended December 31, | |||||||||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||||||||
(in thousands, except percentage data) | |||||||||||||||||||||||||||||
Customer Relationships (a) | 4,931.5 | 4,914.7 | 4,898.5 | ||||||||||||||||||||||||||
% growth | 0.3 | % | 0.3 | % | |||||||||||||||||||||||||
Revenue | $ | 9,760,859 | $ | 9,566,608 | $ | 9,306,950 | |||||||||||||||||||||||
Adjusted EBITDA (b) | $ | 4,265,471 | $ | 4,163,078 | $ | 3,981,410 | |||||||||||||||||||||||
% of Revenue | 43.7 | % | 43.5 | % | 42.8 | % | |||||||||||||||||||||||
Net income attributable to stockholders (c)
|
$ | 138,936 | $ | 18,833 | $ | 1,493,177 |
December 31, | |||||||||||||||||||||||||||||
2019 | 2018 (a) | 2017 (a) | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Total residential customer relationships:
|
4,533.3 | 4,518.1 | 4,509.0 | ||||||||||||||||||||||||||
Broadband | 4,187.3 | 4,115.4 | 4,043.2 | ||||||||||||||||||||||||||
Video | 3,179.2 | 3,286.1 | 3,382.6 | ||||||||||||||||||||||||||
Telephony | 2,398.8 | 2,530.1 | 2,556.3 |
December 31, | |||||||||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Residential revenue: | |||||||||||||||||||||||||||||
Broadband | $ | 3,222,605 | $ | 2,887,455 | $ | 2,608,595 | |||||||||||||||||||||||
Video | 3,997,873 | 4,156,428 | 4,274,122 | ||||||||||||||||||||||||||
Telephony | 598,694 | 652,895 | 700,765 |
June 22, 2017 | Dec 31, 2017 | Dec. 31, 2018 | Dec. 31, 2019 | ||||||||||||||||||||
ALTICE USA CLASS A
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$ | 100.00 | $ | 64.90 | $ | 56.30 | $ | 93.17 | |||||||||||||||
S&P 500 INDEX | $ | 100.00 | $ | 109.82 | $ | 102.97 | $ | 132.71 | |||||||||||||||
PEER GROUP INDEX
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$ | 100.00 | $ | 104.17 | $ | 94.78 | $ | 124.33 |
Altice USA | Cablevision (a) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Years ended December 31,
|
January 1, 2016 to June 20, 2016 | Year ended December 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue
|
$ | 9,760,859 | $ | 9,566,608 | $ | 9,306,950 | $ | 6,017,212 | $ | 3,137,604 | $ | 6,545,545 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses
|
7,937,048 | 7,884,229 | 8,465,942 | 5,554,403 | 2,658,667 | 5,684,713 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income
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1,823,811 | 1,682,379 | 841,008 | 462,809 | 478,937 | 860,832 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income (expense):
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|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net
|
(1,530,850) | (1,545,426) | (1,601,211) | (1,442,730) | (285,508) | (584,839) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) on investments and sale of affiliate interests, net
|
473,406 | (250,877) | 237,354 | 142,102 | 129,990 | (30,208) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) on derivative contracts, net
|
(282,713) | 218,848 | (236,330) | (53,696) | (36,283) | 104,927 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) on interest rate swap contracts
|
(53,902) | (61,697) | 5,482 | (72,961) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt and write-off of deferred financing costs
|
(243,806) | (48,804) | (600,240) | (127,649) | — | (1,735) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income (expense), net
|
1,183 | (12,484) | (13,651) | 980 | 1,224 | (6,316) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes
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187,129 | (18,061) | (1,367,588) | (1,091,145) | 288,360 | 342,661 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax benefit (expense) (b)
|
(47,190) | 38,655 | 2,862,352 | 259,666 | (124,848) | (154,872) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income taxes
|
139,939 | 20,594 | 1,494,764 | (831,479) | 163,512 | 187,789 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss from discontinued operations, net of income taxes (c)
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— | — | — | — | — | (12,541) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss)
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139,939 | 20,594 | 1,494,764 | (831,479) | 163,512 | 175,248 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss (income) attributable to noncontrolling interests
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(1,003) | (1,761) | (1,587) | (551) | 236 | 201 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Altice USA / Cablevision stockholders
|
$ | 138,936 | $ | 18,833 | $ | 1,493,177 | $ | (832,030) | $ | 163,748 | $ | 175,449 |
Altice USA | Cablevision (a) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Years ended December 31,
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January 1, 2016 to June 20, 2016 | Year ended December 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME (LOSS) PER SHARE: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic income (loss) per share attributable to Altice USA / Cablevision stockholders:
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|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income taxes
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$ | 0.21 | $ | 0.03 | $ | 2.15 | $ | (1.28) | $ | 0.60 | $ | 0.70 | |||||||||||||||||||||||||||||||||||||||||||||||
Loss from discontinued operations, net of income taxes (c)
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$ | — | $ | — | $ | — | $ | — | $ | — | $ | (0.05) | |||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 0.21 | $ | 0.03 | $ | 2.15 | $ | (1.28) | $ | 0.60 | $ | 0.65 | |||||||||||||||||||||||||||||||||||||||||||||||
Basic weighted average common shares (in thousands)
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660,384 | 730,088 | 696,055 | 649,525 | 272,035 | 269,388 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted income (loss) per share attributable to Altice USA / Cablevision stockholders:
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|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income taxes
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$ | 0.21 | $ | 0.03 | $ | 2.15 | $ | (1.28) | $ | 0.58 | $ | 0.68 | |||||||||||||||||||||||||||||||||||||||||||||||
Loss from discontinued operations, net of income taxes (c)
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$ | — | $ | — | $ | — | $ | — | $ | — | $ | (0.05) | |||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 0.21 | $ | 0.03 | $ | 2.15 | $ | (1.28) | $ | 0.58 | $ | 0.63 | |||||||||||||||||||||||||||||||||||||||||||||||
Diluted weighted average common shares (in thousands)
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662,541 | 730,088 | 696,055 | 649,525 | 280,199 | 276,339 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared per common share (d)
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$ | — | $ | 2.035 | $ | 1.29 | $ | 0.69 | $ | — | $ | 0.45 | |||||||||||||||||||||||||||||||||||||||||||||||
Amounts attributable to Altice USA / Cablevision stockholders:
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|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income taxes
|
$ | 138,936 | $ | 18,833 | $ | 1,493,177 | $ | (832,030) | $ | 163,748 | $ | 187,990 | |||||||||||||||||||||||||||||||||||||||||||||||
Loss from discontinued operations, net of income taxes (c)
|
— | — | — | — | — | (12,541) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 138,936 | $ | 18,833 | $ | 1,493,177 | $ | (832,030) | $ | 163,748 | $ | 175,449 |
CSC Holdings | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Successor Periods | Predecessor Periods (a) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Years ended December 31, | January 1, 2016 to June 20, 2016 | Years ended December 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue
|
$ | 9,760,859 | $ | 9,566,608 | $ | 9,306,950 | $ | 6,017,212 | $ | 3,137,604 | $ | 6,545,545 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses
|
7,937,048 | 7,884,229 | 8,465,824 | 5,553,917 | 2,658,667 | 5,684,713 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income
|
1,823,811 | 1,682,379 | 841,126 | 463,295 | 478,937 | 860,832 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income (expense):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net
|
(1,449,593) | (1,239,948) | (1,127,278) | (1,004,038) | (157,343) | (313,952) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) on investments and sale of affiliate interests, net
|
473,406 | (261,536) | 237,354 | 142,102 | 129,990 | (30,208) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) on derivative contracts, net
|
(282,713) | 218,848 | (138,920) | (53,696) | (36,283) | 104,927 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) on interest rate swap contracts
|
(53,902) | (61,697) | 5,482 | (72,961) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt and write-off of deferred financing costs
|
(228,130) | (7,883) | (53,988) | (127,649) | — | (1,735) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income (expense), net
|
1,181 | (12,274) | (13,651) | 980 | 1,224 | (6,316) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes
|
284,060 | 317,889 | (249,875) | (651,967) | 416,525 | 613,548 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax benefit (expense) (b)
|
(71,243) | (57,563) | 2,827,751 | 86,036 | (179,658) | (269,356) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income taxes
|
212,817 | 260,326 | 2,577,876 | (565,931) | 236,867 | 344,192 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss from discontinued operations, net of income taxes (c)
|
— | — | — | — | — | (12,541) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss)
|
212,817 | 260,326 | 2,577,876 | (565,931) | 236,867 | 331,651 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss (income) attributable to noncontrolling interests
|
(1,003) | (1,761) | (1,587) | (551) | 236 | 201 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to CSC Holdings' sole member
|
$ | 211,814 | $ | 258,565 | $ | 2,576,289 | $ | (566,482) | $ | 237,103 | $ | 331,852 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts attributable to CSC Holdings, LLC's sole member:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income taxes
|
$ | 211,814 | $ | 258,565 | $ | 2,576,289 | $ | (566,482) | $ | 237,103 | $ | 344,393 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss from discontinued operations, net of income taxes
|
— | — | — | — | — | (12,541) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 211,814 | $ | 258,565 | $ | 2,576,289 | $ | (566,482) | $ | 237,103 | $ | 331,852 |
Balance Sheet Data: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Altice USA | Cablevision | ||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 34,108,122 | $ | 33,613,808 | $ | 34,812,082 | $ | 36,498,578 | $ | 6,813,445 | |||||||||||||||||||||||||||||||||||||||||||
Notes payable to affiliates and related parties | — | — | — | 1,750,000 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Credit facility debt | 7,148,287 | 5,915,559 | 4,643,523 | 3,444,790 | 2,514,454 | ||||||||||||||||||||||||||||||||||||||||||||||||
Collateralized indebtedness | 1,585,088 | 1,406,182 | 1,349,474 | 1,286,069 | 1,191,324 | ||||||||||||||||||||||||||||||||||||||||||||||||
Senior guaranteed notes and senior notes and debentures
|
15,476,496 | 15,359,561 | 15,860,432 | 17,507,325 | 5,801,011 | ||||||||||||||||||||||||||||||||||||||||||||||||
Notes payable and other obligations | 140,994 | 106,108 | 65,902 | 13,726 | 14,544 | ||||||||||||||||||||||||||||||||||||||||||||||||
Finance lease obligations | 69,420 | 25,190 | 21,980 | 28,155 | 45,966 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total debt | 24,420,285 | 22,812,600 | 21,941,311 | 24,030,065 | 9,567,299 | ||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable equity | 108,551 | 130,007 | 231,290 | 68,147 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' equity (deficiency) | 2,269,964 | 3,670,941 | 5,503,214 | 2,042,221 | (4,905,955) | ||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | 9,298 | 9,295 | 1,539 | 287 | (268) | ||||||||||||||||||||||||||||||||||||||||||||||||
Total equity (deficiency) | 2,279,262 | 3,680,236 | 5,504,753 | 2,042,508 | (4,906,223) |
CSC Holdings | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Successor Periods | Predecessor Period | ||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, | 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 34,100,303 | $ | 33,586,165 | $ | 34,911,822 | $ | 36,491,490 | $ | 6,788,712 | |||||||||||||||||||||||||||||||||||||||||||
Credit facility debt | 7,148,287 | 5,915,559 | 4,643,523 | 3,444,790 | 2,514,454 | ||||||||||||||||||||||||||||||||||||||||||||||||
Collateralized indebtedness | 1,585,088 | 1,406,182 | 1,349,474 | 1,286,069 | 1,191,324 | ||||||||||||||||||||||||||||||||||||||||||||||||
Senior guaranteed notes and senior notes and debentures
|
15,476,496 | 14,264,368 | 11,271,580 | 11,589,113 | 3,032,252 | ||||||||||||||||||||||||||||||||||||||||||||||||
Notes payable and other obligations | 140,994 | 106,108 | 65,902 | 13,726 | 14,544 | ||||||||||||||||||||||||||||||||||||||||||||||||
Finance lease obligations
|
69,420 | 25,190 | 21,980 | 28,155 | 45,966 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total debt | 24,420,285 | 21,717,407 | 17,352,459 | 16,361,853 | 6,798,540 | ||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable equity | 108,551 | 130,007 | 231,290 | 68,147 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Member's equity (deficiency) | 2,044,147 | 3,989,846 | 9,444,737 | 8,858,483 | (2,445,863) | ||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | 9,298 | 9,295 | 1,539 | 287 | (268) | ||||||||||||||||||||||||||||||||||||||||||||||||
Total equity (deficiency) | 2,053,445 | 3,999,141 | 9,446,276 | 8,858,770 | (2,446,131) |
December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 (h) | 2018 (g) | 2017 (g) | |||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except per customer amounts) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Homes passed (a) | 8,833.7 | 8,714.9 | 8,598.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total customers relationships (b)(c) | 4,931.5 | 4,914.7 | 4,898.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Residential | 4,533.3 | 4,518.1 | 4,509.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||
SMB | 398.2 | 396.6 | 389.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Residential customers: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Broadband | 4,187.3 | 4,115.4 | 4,043.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Video | 3,179.2 | 3,286.1 | 3,382.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Telephony | 2,398.8 | 2,530.1 | 2,556.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Residential triple product customers penetration (d)
|
46.8 | % | 49.8 | % | 50.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Penetration of homes passed (e)
|
55.8 | % | 56.4 | % | 57.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||
ARPU (f)
|
$ | 142.65 | $ | 143.22 | $ | 140.56 |
December 31, | |||||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||||
increase (decrease) | |||||||||||||||||||||||
Homes passed
|
(22.4) | (22.0) | |||||||||||||||||||||
Total customer relationships
|
(4.9) | (7.7) | |||||||||||||||||||||
Residential | (24.0) | (26.0) | |||||||||||||||||||||
SMB | 19.1 | 18.3 | |||||||||||||||||||||
Residential customers:
|
|||||||||||||||||||||||
Broadband | (2.8) | (3.0) | |||||||||||||||||||||
Video | (21.4) | (22.9) | |||||||||||||||||||||
Telephony | (1.1) | (1.1) | |||||||||||||||||||||
ARPU
|
$ | 0.78 | $ | 0.81 |
Altice USA | |||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||
Residential:
|
|||||||||||||||||||||||||||||
Broadband | $ | 3,222,605 | $ | 2,887,455 | $ | 2,608,595 | |||||||||||||||||||||||
Video | 3,997,873 | 4,156,428 | 4,274,122 | ||||||||||||||||||||||||||
Telephony | 598,694 | 652,895 | 700,765 | ||||||||||||||||||||||||||
Business services and wholesale
|
1,428,532 | 1,362,758 | 1,298,213 | ||||||||||||||||||||||||||
News and advertising | 475,904 | 487,264 | 396,187 | ||||||||||||||||||||||||||
Mobile
|
21,264 | — | — | ||||||||||||||||||||||||||
Other | 15,987 | 19,808 | 29,068 | ||||||||||||||||||||||||||
Total revenue | 9,760,859 | 9,566,608 | 9,306,950 | ||||||||||||||||||||||||||
Operating expenses:
|
|||||||||||||||||||||||||||||
Programming and other direct costs
|
3,300,528 | 3,173,076 | 3,035,655 | ||||||||||||||||||||||||||
Other operating expenses
|
2,300,398 | 2,290,266 | 2,347,315 | ||||||||||||||||||||||||||
Restructuring and other expense
|
72,978 | 38,548 | 152,401 | ||||||||||||||||||||||||||
Depreciation and amortization (including impairments)
|
2,263,144 | 2,382,339 | 2,930,571 | ||||||||||||||||||||||||||
Operating income | 1,823,811 | 1,682,379 | 841,008 | ||||||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||||||||
Interest expense, net | (1,530,850) | (1,545,426) | (1,601,211) | ||||||||||||||||||||||||||
Gain (loss) on investments and sale of affiliate interests, net
|
473,406 | (250,877) | 237,354 | ||||||||||||||||||||||||||
Gain (loss) on derivative contracts, net
|
(282,713) | 218,848 | (236,330) | ||||||||||||||||||||||||||
Gain (loss) on interest rate swap contracts | (53,902) | (61,697) | 5,482 | ||||||||||||||||||||||||||
Loss on extinguishment of debt and write-off of deferred financing costs
|
(243,806) | (48,804) | (600,240) | ||||||||||||||||||||||||||
Other income (expense), net | 1,183 | (12,484) | (13,651) | ||||||||||||||||||||||||||
Income (loss) before income taxes | 187,129 | (18,061) | (1,367,588) | ||||||||||||||||||||||||||
Income tax benefit (expense) | (47,190) | 38,655 | 2,862,352 | ||||||||||||||||||||||||||
Net income
|
139,939 | 20,594 | 1,494,764 | ||||||||||||||||||||||||||
Net income attributable to noncontrolling interests
|
(1,003) | (1,761) | (1,587) | ||||||||||||||||||||||||||
Net income attributable to Altice USA, Inc. stockholders
|
$ | 138,936 | $ | 18,833 | $ | 1,493,177 |
Altice USA | |||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||||||||
Net income | $ | 139,939 | $ | 20,594 | $ | 1,494,764 | |||||||||||||||||||||||
Income tax expense (benefit) | 47,190 | (38,655) | (2,862,352) | ||||||||||||||||||||||||||
Other expense (income), net (a)
|
(1,183) | 12,484 | 13,651 | ||||||||||||||||||||||||||
Loss (gain) on interest rate swap contracts
|
53,902 | 61,697 | (5,482) | ||||||||||||||||||||||||||
Loss (gain) on derivative contracts, net | 282,713 | (218,848) | 236,330 | ||||||||||||||||||||||||||
Loss (gain) on investments and sales of affiliate interests, net
|
(473,406) | 250,877 | (237,354) | ||||||||||||||||||||||||||
Loss on extinguishment of debt and write-off of deferred financing costs
|
243,806 | 48,804 | 600,240 | ||||||||||||||||||||||||||
Interest expense, net
|
1,530,850 | 1,545,426 | 1,601,211 | ||||||||||||||||||||||||||
Depreciation and amortization
|
2,263,144 | 2,382,339 | 2,930,571 | ||||||||||||||||||||||||||
Restructuring and other expense
|
72,978 | 38,548 | 152,401 | ||||||||||||||||||||||||||
Share-based compensation
|
105,538 | 59,812 | 57,430 | ||||||||||||||||||||||||||
Adjusted EBITDA | 4,265,471 | 4,163,078 | 3,981,410 | ||||||||||||||||||||||||||
Capital Expenditures (cash) | 1,355,350 | 1,153,589 | 951,349 | ||||||||||||||||||||||||||
Operating Free Cash Flow | $ | 2,910,121 | $ | 3,009,489 | $ | 3,030,061 | |||||||||||||||||||||||
Net cash flows from operating activities | $ | 2,554,169 | $ | 2,508,317 | $ | 2,018,247 | |||||||||||||||||||||||
Capital Expenditures (cash) | 1,355,350 | 1,153,589 | 951,349 | ||||||||||||||||||||||||||
Free Cash Flow | $ | 1,198,819 | $ | 1,354,728 | $ | 1,066,898 |
As of
December 31, 2018 |
As of
December 31, 2017 |
||||||||||||||||||||||
increase (decrease) | |||||||||||||||||||||||
Homes passed
|
(22.4) | (22.0) | |||||||||||||||||||||
Total customer relationships
|
(4.9) | (7.7) | |||||||||||||||||||||
Residential | (24.0) | (26.0) | |||||||||||||||||||||
SMB | 19.1 | 18.3 | |||||||||||||||||||||
Residential customers:
|
|||||||||||||||||||||||
Broadband | (2.8) | (3.0) | |||||||||||||||||||||
Video | (21.4) | (22.9) | |||||||||||||||||||||
Telephony | (1.1) | (1.1) | |||||||||||||||||||||
ARPU
|
$ | 0.78 | $ | 0.81 |
Increase in programming costs due primarily to contractual rate increases, partially offset by lower video customers and lower video-on-demand and pay-per-view costs
|
$ | 102,071 | |||
Costs of mobile devices | 22,379 | ||||
Increase in costs of digital media and linear advertising spots for resale
|
9,488 | ||||
Decrease in call completion and transfer costs primarily due to lower level of activity related to our telephony service, partially offset by an increase in costs related to our mobile service of $3,890
|
(9,975) | ||||
Other net increases
|
3,489 | ||||
$ | 127,452 |
Increase in programming costs due primarily to contractual rate increases, partially offset by lower video customers and lower video-on-demand and pay-per-view costs
|
$ | 87,341 | |||
Increase primarily in costs of digital media and linear advertising spots for resale
|
42,635 | ||||
Other net increases (including an increase of $4,201 in costs related to i24NEWS)
|
7,445 | ||||
$ | 137,421 |
Increase in share-based compensation, including charges related to modifications of awards
|
$ | 45,725 | |||
Increase in bad debt
|
20,095 | ||||
Net decrease in labor costs and benefits (partially offset by an increase in costs related to i24NEWS of $6,425 and an increase of $14,720 related to Cheddar) and an increase in capitalizable activity
|
(33,431) | ||||
Decrease in management fee relating to certain executive, administrative and managerial services provided to the Company from Altice Europe prior to separation in June 2018
|
(13,250) | ||||
Net decrease in marketing costs
|
(7,457) | ||||
Other net decreases (partially offset by an increase in costs of $2,380 relating to Cheddar and $3,027 related to i24NEWS)
|
(1,550) | ||||
$ | 10,132 |
Decrease in labor costs and benefits (net of an increase in costs related to i24NEWS of $18,786), and an increase in capitalizable activity
|
$ | (84,118) | |||
Decrease in management fee relating to certain executive, administrative and managerial services provided to the Company from Altice Europe prior to separation in June 2018
|
(16,750) | ||||
Decrease in legal fees | (6,495) | ||||
Decrease in share-based compensation and long-term incentive plan awards expense | (2,548) | ||||
Increase in marketing costs | 34,683 | ||||
Increase in commissions primarily relating to the NY Interconnect business | 10,438 | ||||
Increase in insurance costs | 1,740 | ||||
Other net increases (includes an increase in costs related to i24NEWS of $9,936)
|
6,001 | ||||
$ | (57,049) |
2019 | 2018 | ||||||||||||||||
Decrease due to changes in average debt balances and interest rates on our indebtedness and
collateralized debt
|
$ | (44,492) | $ | (101,740) | |||||||||||||
Lower (higher) interest income
|
5,147 | (8,935) | |||||||||||||||
Other net increases, primarily amortization of deferred financing costs and original issue discounts
|
24,769 | 54,890 | |||||||||||||||
$ | (14,576) | $ | (55,785) |
2019 | 2018 | 2017 | |||||||||||||||
Cablevision 8.625% Senior Notes due 2017 | $ | — | $ | — | $ | 6,300 | |||||||||||
Cablevision 7.75% Senior Notes due 2018 | — | 4,706 | — | ||||||||||||||
Cequel 6.375% Senior Notes due 2020 | — | 36,910 | 26,229 | ||||||||||||||
Cablevision 8.000% Senior Notes due 2020 | 15,176 | — | — | ||||||||||||||
Cablevision 5.125% Senior Notes due 2021 | 500 | — | — | ||||||||||||||
CSC Holdings 5.125% Senior Notes due 2021 | 65,151 | — | — | ||||||||||||||
CSC Holdings 10.125% Senior Notes due 2023 | 154,666 | — | — | ||||||||||||||
Cablevision 10.875% Senior Notes due 2025 | — | — | 38,858 | ||||||||||||||
Cequel senior and senior secured notes pursuant to an exchange
offer
|
— | (545) | — | ||||||||||||||
Refinancing and subsequent amendment to CSC Holdings credit
facility
|
8,313 | — | 12,675 | ||||||||||||||
Cequel Term Loan Facility | — | 7,733 | 2,455 | ||||||||||||||
Notes payable to affiliates | — | — | 513,723 | ||||||||||||||
$ | 243,806 | $ | 48,804 | $ | 600,240 |
Years ended December 31, | ||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | ||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||
Net income attributable to Altice USA shareholders | $ | 138,936 | $ | 18,833 | $ | 1,493,177 | ||||||||||||||||||||||||||||||||
Less: items included in Altice USA's consolidated
statements of operations: |
||||||||||||||||||||||||||||||||||||||
Income tax benefit | (24,053) | (96,218) | (34,601) | |||||||||||||||||||||||||||||||||||
Interest expense relating to Cablevision senior notes | 81,257 | 303,106 | 377,908 | |||||||||||||||||||||||||||||||||||
Interest expense relating to Altice USA notes payable to
affiliates and related parties
|
— | — | 90,405 | |||||||||||||||||||||||||||||||||||
Gain (loss) on investments and sale of affiliate interests, net
|
— | (10,659) | — | |||||||||||||||||||||||||||||||||||
Interest expense on intercompany loan due to CSC
Holdings
|
— | — | 6,502 | |||||||||||||||||||||||||||||||||||
Interest income related to cash held by Cablevision and
Altice USA
|
— | 2,372 | (882) | |||||||||||||||||||||||||||||||||||
Loss on derivative contracts | — | — | 97,410 | |||||||||||||||||||||||||||||||||||
Other expense (income) | (2) | 210 | — | |||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt and write-off of
deferred financing costs
|
15,676 | 40,921 | 546,252 | |||||||||||||||||||||||||||||||||||
Restructuring and other expense | — | — | 118 | |||||||||||||||||||||||||||||||||||
Net income attributable to CSC Holdings' sole member | $ | 211,814 | $ | 258,565 | $ | 2,576,289 | ||||||||||||||||||||||||||||||||
As of December 31, 2019 | |||||||||||||||||
CSC Holdings | Altice USA | ||||||||||||||||
Debt outstanding:
|
|||||||||||||||||
Credit facility debt
|
$ | 7,148,287 | $ | 7,148,287 | |||||||||||||
Senior guaranteed notes
|
7,602,456 | 7,602,456 | |||||||||||||||
Senior notes | 7,874,040 | 7,874,040 | |||||||||||||||
Subtotal
|
22,624,783 | 22,624,783 | |||||||||||||||
Finance lease obligations
|
69,420 | 69,420 | |||||||||||||||
Notes payable and supply chain financing
|
140,994 | 140,994 | |||||||||||||||
Subtotal
|
22,835,197 | 22,835,197 | |||||||||||||||
Collateralized indebtedness relating to stock monetizations (a)
|
1,585,088 | 1,585,088 | |||||||||||||||
Total debt | $ | 24,420,285 | $ | 24,420,285 | |||||||||||||
Interest expense:
|
|||||||||||||||||
Credit facility debt, senior notes, finance leases, notes payable and supply chain financing
|
$ | 1,392,277 | $ | 1,473,534 | |||||||||||||
Collateralized indebtedness relating to stock monetizations (a)
|
63,025 | 63,025 | |||||||||||||||
Total interest expense | $ | 1,455,302 | $ | 1,536,559 |
Maturity Date | Interest Rate | Principal | Carrying Value | ||||||||||||||||||||
Revolving Credit Facility (a) | (b) | —% | $ | — | $ | — | |||||||||||||||||
Term Loan B | July 17, 2025 | 3.99% | 2,925,000 | 2,911,729 | |||||||||||||||||||
Incremental Term Loan B-3
|
January 15, 2026 | 3.99% | 1,265,438 | 1,260,200 | |||||||||||||||||||
Incremental Term Loan B-5
|
April 15, 2027 | 4.24% | 3,000,000 | 2,976,358 | |||||||||||||||||||
$ | 7,190,438 | $ | 7,148,287 |
2020 | $ | 1,549,109 | |||
2021 | 2,469,607 | ||||
2022 | 2,036,906 | ||||
2023 (a) | 4,183,667 | ||||
2024 | 1,976,193 | ||||
Thereafter | 21,829,511 | ||||
Total | $ | 34,044,993 |
Years Ended December 31, | |||||||||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||||||||
Customer premise equipment
|
$ | 309,413 | $ | 369,236 | $ | 308,500 | |||||||||||||||||||||||
Network infrastructure
|
619,525 | 395,074 | 311,730 | ||||||||||||||||||||||||||
Support and other
|
259,997 | 226,409 | 189,209 | ||||||||||||||||||||||||||
Business services
|
166,415 | 162,870 | 141,910 | ||||||||||||||||||||||||||
Capital purchases (cash basis)
|
$ | 1,355,350 | $ | 1,153,589 | $ | 951,349 | |||||||||||||||||||||||
Capital purchases (including accrued not paid and financed capital)
|
$ | 1,397,977 | $ | 1,305,104 | $ | 1,020,761 |
Payments Due by Period | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total |
Year
1 |
Years
2-3 |
Years
4-5 |
More than
5 years |
Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Off balance sheet arrangements: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase obligations (a) | $ | 8,238,465 | $ | 3,547,239 | $ | 3,685,145 | $ | 837,711 | $ | 168,370 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantees (b) | 37,930 | 37,870 | 60 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Letters of credit (c) | 178,014 | 1,620 | 7,360 | 169,034 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8,454,409 | 3,586,729 | 3,692,565 | 1,006,745 | 168,370 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contractual obligations reflected on the balance sheet:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt obligations (d) | 34,044,993 | 1,549,109 | 4,506,513 | 6,159,860 | 21,829,511 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance lease obligations (e) | 75,701 | 25,500 | 40,787 | 9,131 | 283 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating lease obligations (e) | 410,875 | 48,899 | 96,403 | 72,555 | 193,018 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxes (f) | 4,027 | — | — | — | — | 4,027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
34,535,596 | 1,623,508 | 4,643,703 | 6,241,546 | 22,022,812 | 4,027 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 42,990,005 | $ | 5,210,237 | $ | 8,336,268 | $ | 7,248,291 | $ | 22,191,182 | $ | 4,027 |
Fair Value of Equity Derivative Contracts | |||||
Fair value as of December 31, 2018, net asset position | $ | 109,344 | |||
Fair value of new equity derivative contracts | 103,781 | ||||
Change in fair value, net | (282,713) | ||||
Fair value as of December 31, 2019, net liability position | $ | (69,588) |
Hedge Price | Cap Price (b) | |||||||||||||||||||||||||||||||
# of Shares Deliverable | Maturity | per Share (a) | Low | High | ||||||||||||||||||||||||||||
42,955,236 | 2023 | $40.95 | $ | 49.55 | $ | 49.55 |
Trade Date | Maturity Date | Notional Amount | Company Pays | Company Receives | ||||||||||||||||||||||
May 2016 | May 2026 | $ | 750,000 | Six- month LIBOR | Fixed rate of 1.665% | |||||||||||||||||||||
June 2016 | May 2026 | 750,000 | Six- month LIBOR | Fixed rate of 1.68% | ||||||||||||||||||||||
April 2019 | April 2020 | 1,255,513 |
Three- month LIBOR
minus 0.1075%
|
One- month LIBOR | ||||||||||||||||||||||
December 2018 | January 2022 | 500,000 | Fixed rate of 2.7177% | Three-month LIBOR | ||||||||||||||||||||||
December 2018 | January 2022 | 500,000 | Fixed rate of 2.733% | Three-month LIBOR | ||||||||||||||||||||||
December 2018 | January 2022 | 500,000 | Fixed rate of 2.722% | Three-month LIBOR | ||||||||||||||||||||||
December 2018 | December 2026 | 750,000 | Fixed rate of 2.9155% | Three-month LIBOR | ||||||||||||||||||||||
December 2018 | December 2026 | 750,000 | Fixed rate of 2.9025% | Three-month LIBOR |
Exhibit No. | Exhibit Description | |||||||
Form of Third Amended and Restated Certificate of Incorporation of the Company (incorporated herein by reference to Exhibit 3.3 of the Company's Registration Statement on Form S-1/A (File No. 333-222475) filed on May 21, 2018) | ||||||||
Form of Second Amended and Restated Bylaws of the Company (incorporated herein by reference to Exhibit 3.4 of the Company's Registration Statement on Form S-1/A (File No. 333-222475) filed on May 21, 2018) | ||||||||
4.1 + | Specimen Class A Common Stock Certificate | |||||||
4.2 + | Specimen Class B Common Stock Certificate | |||||||
Amended and Restated Stockholders and Registration Rights Agreement, dated June 7, 2018, by and among Altice USA, Inc. and the stockholders party thereto (incorporated herein by reference to Exhibit 4.1 of the Company's Current Report on Form 8-K (File No. 001-38126) filed on June 13, 2018) | ||||||||
Stockholders’ Agreement, dated June 7, 2018, by and among Altice USA, Inc., Next Alt S.à r.l. and A4 S.A. (incorporated herein by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K (File No. 001-38126) filed on June 13, 2018) | ||||||||
Indenture, dated as of April 2, 2010, relating to Cablevision’s senior debt securities (incorporated herein by reference to Exhibit 4.4 of the Company's Registration Statement on Form S-1/A (File No. 333-217240) filed on May 16, 2017) | ||||||||
Second Supplemental Indenture, dated as of September 27, 2012, to the Indenture dated as of April 2, 2010, relating to Cablevision's 57/8% Senior Notes due 2022 (incorporated herein by reference to Exhibit 4.6 of the Company's Registration Statement on Form S-1/A (File No. 333-217240) filed on May 16, 2017)
|
||||||||
Indenture, dated as of November 15, 2011, relating to CSC Holdings' 63/4% Senior Notes due 2021 and 63/4% Series B Senior Notes due 2021 (incorporated herein by reference to Exhibit 4.10 of the Company's Registration Statement on Form S-1/A (File No. 333-217240) filed on May 16, 2017)
|
||||||||
Indenture, dated as of May 23, 2014, relating to CSC Holdings' 51/4% Senior Notes due 2024 and 51/4% Series B Senior Notes due 2024 (incorporated herein by reference to Exhibit 4.11 of the Company's Registration Statement on Form S-1/A (File No. 333-217240) filed on May 16, 2017)
|
||||||||
Indenture, dated as of October 9, 2015, relating to CSC Holdings' 107/8% Senior Notes due 2025 (incorporated herein by reference to Exhibit 4.12 of the Company's Registration Statement on Form S-1/A (File No. 333-217240) filed on May 16, 2017)
|
||||||||
Supplemental Indenture, dated as of June 21, 2016, to Indenture dated as of October 9, 2015, relating to CSC Holdings' 107/8% Senior Notes due 2025 (incorporated herein by reference to Exhibit 4.13 of the Company’s Registration Statement Form S-1/A (File No. 333-217240) filed on May 16, 2017)
|
||||||||
Indenture, dated as of October 9, 2015, relating to CSC Holdings' 65/8% Senior Guaranteed Notes due 2025 (incorporated herein by reference to Exhibit 4.14 of the Company's Registration Statement on Form S-1/A (File No. 333-217240) filed on May 16, 2017)
|
||||||||
Supplemental Indenture, dated as of June 21, 2016, to the Indenture dated as of October 9, 2015, relating to CSC Holdings' 65/8% Senior Guaranteed Notes due 2025 (incorporated herein by reference to Exhibit 4.15 of the Company's Registration Statement on Form S-1/A (File No. 333-217240) filed on May 16, 2017)
|
||||||||
Indenture, dated as of September 23, 2016, relating to CSC Holdings' 51/2% Senior Guaranteed Notes due 2027 (incorporated herein by reference to Exhibit 4.16 of the Company's Registration Statement on Form S-1/A (File No. 333-217240) filed on May 16, 2017)
|
||||||||
Indenture, dated as of June 12, 2015, relating to Altice US Finance I Corporation's 53/8% Senior Secured Notes due 2023 (incorporated herein by reference to Exhibit 4.17 of the Company's Registration Statement on Form S-1/A (File No. 333-217240) filed on May 16, 2017)
|
||||||||
Supplemental Indenture, dated as of December 21, 2015, to the Indenture, dated as of June 12, 2015, relating to Altice US Finance I Corporation's 53/8% Senior Secured Notes due 2023 (incorporated herein by reference to Exhibit 4.18 of the Company's Registration Statement on Form S-1/A (File No. 333-217240) filed on May 16, 2017)
|
||||||||
Indenture, dated as of April 26, 2016, relating to Altice US Finance I Corporation's 51/2% Senior Secured Notes due 2026 (incorporated herein by reference to Exhibit 4.23 of the Company's Registration Statement on Form S-1/A (File No. 333-217240) filed on May 16, 2017)
|
Exhibit No. | Exhibit Description | |||||||
Indenture, dated as of May 16, 2013, relating to Cequel Communications Holdings I, LLC's and Cequel Capital Corporation's 51/8% Senior Notes due 2021 (incorporated herein by reference to Exhibit 4.29 of the Company's Registration Statement on Form S-1/A (File No. 333-217240) filed on May 16, 2017)
|
||||||||
Indenture, dated as of September 9, 2014, relating to Cequel Communications Holdings I, LLC's and Cequel Capital Corporation's 51/8% Senior Notes due 2021 (incorporated herein by reference to Exhibit 4.30 of the Company's Registration Statement on Form S-1/A (File No. 333-217240) filed on May 16, 2017)
|
||||||||
Indenture, dated as of June 12, 2015, relating to Cequel Communications Holdings I, LLC's and Cequel Capital Corporation's 73/4% Senior Notes due 2025 (incorporated herein by reference to Exhibit 4.31 of the Company's Registration Statement on Form S-1/A (File No. 333-217240) filed on May 16, 2017)
|
||||||||
Supplemental Indenture, dated as of December 21, 2015, to the Indenture, dated as of June 12, 2015, relating to Cequel Communications Holdings I, LLC's and Cequel Capital Corporation's 73/4% Senior Notes due 2025 (incorporated herein by reference to Exhibit 4.32 of the Company's Registration Statement on Form S-1/A (File No. 333-217240) filed on May 16, 2017)
|
||||||||
Indenture, dated as of January 29, 2018, relating to CSC Holdings, LLC's 5.375% Senior Notes due 2028 (incorporated herein by reference to Exhibit 4.1 of the Company's Current Report on Form 8-K (File No. 001-38126) filed on February 2, 2018) | ||||||||
Indenture, dated as of April 5, 2018, relating to Cequel Communications Holdings I, LLC's and Cequel Capital Corporation's 7.500% Senior Notes due 2028 (incorporated herein by reference to Exhibit 4.1 of the Company's Current Report on Form 8-K (File No. 001-38126) filed on April 6, 2018)
|
||||||||
2023 Supplemental Indenture, dated as of October 17, 2018, between Altice US Finance I Corporation, as Issuer and Deutsche Bank Trust Company Americas, as Trustee (incorporated herein by reference to Exhibit 4.1 of the Company's Current Report on Form 8-K (File No. 001-38126) filed on October 19, 2018) | ||||||||
2026 Supplemental Indenture, dated as of October 17, 2018, between Altice US Finance I Corporation, as Issuer and Deutsche Bank Trust Company Americas, as Trustee (incorporated herein by reference to Exhibit 4.2 of the Company's Current Report on Form 8-K (File No. 001-38126) filed on October 19, 2018) | ||||||||
2025 Supplemental Indenture, dated as of October 17, 2018, between Cequel Communications Holdings I, LLC and Cequel Capital Corporation, as Co-Issuers and Deutsche Bank Trust Company Americas, as Trustee (incorporated herein by reference to Exhibit 4.3 of the Company's Current Report on Form 8-K (File No. 001-38126) filed on October 19, 2018) | ||||||||
2028 Supplemental Indenture, dated as of October 17, 2018, between Cequel Communications Holdings I, LLC and Cequel Capital Corporation, as Co-Issuers and Deutsche Bank Trust Company Americas, as Trustee (incorporated herein by reference to Exhibit 4.4 of the Company's Current Report on Form 8-K (File No. 001-38126) filed on October 19, 2018) | ||||||||
|
2023 New Notes Indenture, dated as of October 18, 2018, between, inter alios, Altice US Finance I Corporation, as Issuer and Deutsche Bank Trust Company Americas, as Trustee (incorporated herein by reference to Exhibit 4.5 of the Company's Current Report on Form 8-K (File No. 001-38126) filed on October 19, 2018)
|
|||||||
2026 New Notes Indenture, dated as of October 18, 2018, between, inter alios, Altice US Finance I Corporation, as Issuer and Deutsche Bank Trust Company Americas, as Trustee (incorporated herein by reference to Exhibit 4.6 of the Company's Current Report on Form 8-K (File No. 001-38126) filed on October 19, 2018)
|
||||||||
2021 May New Notes Indenture, dated as of October 18, 2018, between Cequel Communications Holdings I, LLC and Cequel Capital Corporation, as Co-Issuers and Deutsche Bank Trust Company Americas, as Trustee (incorporated herein by reference to Exhibit 4.7 of the Company's Current Report on Form 8-K (File No. 001-38126) filed on October 19, 2018) | ||||||||
2021 September New Notes Indenture, dated as of October 18, 2018, between Cequel Communications Holdings I, LLC and Cequel Capital Corporation, as Co-Issuers and Deutsche Bank Trust Company Americas, as Trustee (incorporated herein by reference to Exhibit 4.8 of the Company's Current Report on Form 8-K (File No. 001-38126) filed on October 19, 2018) | ||||||||
Exhibit No. | Exhibit Description | |||||||
2025 New Notes Indenture, dated as of October 18, 2018, between Cequel Communications Holdings I, LLC and Cequel Capital Corporation, as Co-Issuers and Deutsche Bank Trust Company Americas, as Trustee (incorporated herein by reference to Exhibit 4.9 of the Company's Current Report on Form 8-K (File No. 001-38126) filed on October 19, 2018) | ||||||||
2028 New Notes Indenture, dated as of October 18, 2018, between Cequel Communications Holdings I, LLC and Cequel Capital Corporation, as Co-Issuers and Deutsche Bank Trust Company Americas, as Trustee (incorporated herein by reference to Exhibit 4.10 of the Company's Current Report on Form 8-K (File No. 001-38126) filed on October 19, 2018) | ||||||||
Senior Guaranteed Notes Indenture, dated as of November 27, 2018, between, inter alios, CSC Holdings, LLC, as Issuer and Deutsche Bank Trust Company Americas, as Trustee (incorporated herein by reference to Exhibit 4.1 of the Company's Current Report on Form 8-K (File No. 001-38126) filed on November 28, 2018)
|
||||||||
|
Senior Notes Indenture, dated as of November 27, 2018, between, inter alios, CSC Holdings, LLC, as Issuer and Deutsche Bank Trust Company Americas, as Trustee (incorporated herein by reference to Exhibit 4.2 of the Company's Current Report on Form 8-K (File No. 001-38126) filed on November 28, 2018)
|
|||||||
Supplemental Indenture dated as of November 27, 2018, between, inter alios, CSC, as issuer, the guarantors (named therein) and Deutsche Bank Trust Company Americas, as trustee, to the 2015 Senior Guaranteed Notes Indenture (incorporated herein by reference to Exhibit 4.3 of the Company's Current Report on Form 8-K (File No. 001-38126) filed on November 28, 2018)
|
||||||||
Supplemental Indenture dated as of November 27, 2018, between, inter alios, CSC, as issuer, the guarantors (named therein) and Deutsche Bank Trust Company Americas, as trustee, to the 2016 Senior Guaranteed Notes Indenture (incorporated herein by reference to Exhibit 4.4 of the Company's Current Report on Form 8-K (File No. 001-38126) filed on November 28, 2018)
|
||||||||
Supplemental Indenture dated as of November 27, 2018, between, inter alios, CSC, as issuer, the guarantors (named therein) and Deutsche Bank Trust Company Americas, as trustee, to the 2018 Senior Guaranteed Notes Indenture (incorporated herein by reference to Exhibit 4.5 of the Company's Current Report on Form 8-K (File No. 001-38126) filed on November 28, 2018)
|
||||||||
Joinder Agreement dated as of November 27, 2018, between, inter alios, the additional guarantors (named therein) to the Facility Guaranty (incorporated herein by reference to Exhibit 4.6 of the Company's Current Report on Form 8-K (File No. 001-38126) filed on November 28, 2018)
|
||||||||
Joinder Agreement dated as of November 27, 2018, between, inter alios, the additional pledgors (named therein) to the Pledge Agreement (incorporated herein by reference to Exhibit 4.7 of the Company's Current Report on Form 8-K (File No. 001-38126) filed on November 28, 2018)
|
||||||||
Indenture, dated as of January 31, 2019 between CSC Holdings, LLC, as Issuer, and Deutsche Bank Trust Company Americas, as Trustee (incorporated herein by reference to Exhibit 4.1 of the Company's Current Report on Form 8-K (File No. 001-38126) filed on February 5, 2019) | ||||||||
Indenture, dated as of July 10, 2019 between CSC Holdings, LLC, as Issuer, and Deutsche Bank Trust Company Americas, as Trustee (incorporated herein by reference to Exhibit 4.1 of the Company's Current Report on Form 8-K (File No. 001-38126) filed on July 12, 2019) | ||||||||
Supplemental Indenture, dated as of November 1, 2019, between, inter alios, CSC Holdings, LLC as successor issuer, Cablevision Systems Corporation as original issuer and U.S. Bank National Association, as Trustee, to the Cablevision 2022 Notes Indenture (incorporated herein by reference to Exhibit 4.1 of the Company's Current Report on Form 8-K (File No. 001-38126) filed on November 4, 2019) | ||||||||
4.43*
|
Description of common stock registered pursuant to Section 12 of the Securities Exchange Act of 1934 | |||||||
Exhibit No. | Exhibit Description | |||||||
Credit Agreement, dated as of October 9, 2015, by and among CSC Holdings, LLC (as successor by merger to Neptune Finco Corp.), as borrower, certain lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent and security agent, Barclays Bank plc and BNP Paribas Securities Corp., as co-syndication agents, Credit Agricole Corporate and Investment Bank, Deutsche Bank Securities Inc., Royal Bank of Canada, Societe Generale, TD Securities (USA) LLC and the Bank of Nova Scotia, as co-documentation agents, and J.P. Morgan Securities LLC, Barclays Bank plc, BNP Paribas Securities Corp., Credit Agricole Corporate and Investment Bank, Deutsche Bank Securities Inc., Royal Bank of Canada, Societe Generale, TD Securities (USA) LLC and The Bank of Nova Scotia, as joint bookrunners and lead arrangers (incorporated herein by reference to Exhibit 10.1 of the Company’s Registration Statement on Form S-1/A (File No. 333-217240) filed on May 16, 2017) | ||||||||
First Amendment to Credit Agreement, dated as of June 20, 2016 (incorporated herein by reference to Exhibit 10.2 of the Company’s Registration Statement on Form S-1/A (File No. 333-217240) filed on May 16, 2017) | ||||||||
Incremental Loan Assumption Agreement, dated as of June 21, 2016 (incorporated herein by reference to Exhibit 10.3 of the Company’s Registration Statement on Form S-1/A (File No. 333-217240) filed on May 16, 2017) | ||||||||
Incremental Loan Assumption Agreement, dated as of July 21, 2016 (incorporated herein by reference to Exhibit 10.4 of the Company’s Registration Statement on Form S-1/A (File No. 333-217240) filed on May 16, 2017) | ||||||||
Second Amendment to Credit Agreement (Extension Amendment), dated as of September 9, 2016 (incorporated herein by reference to Exhibit 10.5 of the Company’s Registration Statement on Form S-1/A (File No. 333-217240) filed on May 16, 2017) | ||||||||
Third Amendment to Credit Agreement (Extension Amendment, Incremental Loan Assumption Agreement & Assignment and Acceptance), dated as of December 9, 2016 (incorporated herein by reference to Exhibit 10.6 of the Company’s Registration Statement on Form S-1/A (File No. 333-217240) filed on May 16, 2017) | ||||||||
Fourth Amendment to Credit Agreement (Incremental Loan Assumption Agreement & Refinancing Amendment), dated as of March 15, 2017 (incorporated herein by reference to Exhibit 10.7 of the Company’s Registration Statement on Form S-1/A (File No. 333-217240) filed on May 16, 2017) | ||||||||
Facility Guaranty, dated as of June 21, 2016, by and among the guarantors party thereto and JPMorgan Chase Bank, N.A. (incorporated herein by reference to Exhibit 10.8 of the Company’s Registration Statement on Form S-1/A (File No. 333-217240) filed on May 16, 2017) | ||||||||
Pledge Agreement, dated as of June 21, 2016, by and among CSC Holdings, LLC, certain pledgors party thereto and JPMorgan Chase Bank, N.A. (incorporated herein by reference to Exhibit 10.9 of the Company’s Registration Statement on Form S-1/A (File No. 333-217240) filed on May 16, 2017 | ||||||||
Fifth Amendment to Credit Agreement, dated as of January 12, 2018, by and among the Borrower, the Additional Lenders and Lead Arrangers party thereto and JPMorgan Chase Bank, N.A. as Administrative Agent (incorporated herein by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K (File No. 001-38126) filed on January 16, 2018) | ||||||||
Sixth Amendment, dated as of October 15, 2018, between, inter alios, CSC Holdings, LLC as Borrower, Goldman Sachs Bank USA as Additional Lender and JPMorgan Chase Bank, N.A. as Administrative Agent (incorporated herein by reference to Exhibit 4.11 of the Company's Current Report on Form 8-K (File No. 001-38126) filed on October 19, 2018) | ||||||||
Seventh Amendment to Credit Agreement, dated as of January 24, 2019, by and among the Borrower, each of the other Loan Parties, the Lenders and JPMorgan Chase Bank, N.A. as the Administrative Agent (incorporated herein by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K (File No. 001-38126) filed on January 30, 2019) | ||||||||
Eighth Amendment to Credit Agreement, dated as of February 7, 2019, by and among the Borrower, each of the other Loan Parties, the February 2019 Incremental Term Loan Lenders party thereto and JPMorgan Chase Bank, N.A. as the Administrative Agent (incorporated herein by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K (File No. 001-38126) filed on February 8, 2019) | ||||||||
Exhibit No. | Exhibit Description | |||||||
Eleventh Amendment to Credit Agreement, dated as of October 3, 2019, by and among the Borrower, each of the other Loan Parties, the Additional Lenders party thereto and JPMorgan Chase Bank, N.A. as the Administrative Agent (incorporated herein by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K (File No. 001-38126) filed on October 7, 2019) | ||||||||
Altice USA Short Term Incentive Compensation Plan (incorporated herein by reference to Exhibit 10.21 of the Company's Registration Statement on Form S-1/A (File No. 333-217240) filed on June 12, 2017) | ||||||||
Altice USA 2017 Long Term Incentive Plan, as amended (incorporated herein by reference to Exhibit 99.1 of the Company's Registration Statement on Form S-8 (File No. 333-228907) filed on December 19, 2018) | ||||||||
Altice USA 2017 Long Term Incentive Plan, Form of Nonqualified Stock Option Award Agreement (incorporated herein by reference to Exhibit 99.1 of the Company’s Current Report on Form 8-K (File No. 001-38126) filed on January 3, 2018) | ||||||||
Altice USA 2017 Long Term Incentive Plan, Form of Performance-Based Nonqualified Stock Option Award Agreement (incorporated herein by reference to Exhibit 10.25 of the Company’s Annual Report on Form 10-K (File No. 001-38126) filed on March 6, 2018) | ||||||||
Master Separation Agreement, dated as of May 18, 2018, by and between Altice USA, Inc. and Altice N.V.(incorporated herein by reference to Exhibit 10.25 of the Company's Registration Statement on Form S-1/A (File No. 333-222475) filed on May 21, 2018) | ||||||||
Transition Agreement and Separation Agreement, dated April 8, 2019, by and between Altice USA, Inc. and David Connolly (incorporated herein by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q (File No. 001-38126) filed on July 31, 2019) | ||||||||
Separation Agreement, dated October 28, 2019, by and between Altice USA, Inc. and Charles Stewart | ||||||||
Restriction Agreement, dated December 31, 2019, by and between Altice USA, Inc. and Dexter Goei | ||||||||
21*
|
List of subsidiaries of the Registrant | |||||||
23.1*
|
Consent of Independent Registered Public Accounting Firm. | |||||||
31.1*
|
Section 302 Certification of the CEO. | |||||||
31.2*
|
Section 302 Certification of the CFO. | |||||||
32*
|
Section 906 Certifications of the CEO and CFO. | |||||||
101 | The following financial statements of Altice USA, Inc.as included in the Altice USA Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission on February 14, 2020, formatted in iXBRL (inline eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets; (ii) the Consolidated Statements of Operations; (iii) the Consolidated Statements of Comprehensive Income (Loss); (iv) the Consolidated Statements of Stockholders' Equity; (v) the Consolidated Statements of Cash Flows; and (vi) the Combined Notes to Consolidated Financial Statements. | |||||||
104* | The cover page from this annual report on Form 10-K formatted in Inline XBRL |
Altice USA, Inc. | |||||
By: | /s/ Michael J. Grau | ||||
Name: | Michael J. Grau | ||||
Title: |
Chief Financial Officer
|
Signature | Title | Date | ||||||||||||
/s/ Dexter Goei | Chief Executive Officer and Director | February 14, 2020 | ||||||||||||
Dexter Goei | (Principal Executive Officer) | |||||||||||||
/s/ Michael J. Grau | Chief Financial Officer | February 14, 2020 | ||||||||||||
Michael J. Grau | ||||||||||||||
/s/ Layth Taki | Senior Vice President and Chief Accounting Officer | February 14, 2020 | ||||||||||||
Layth Taki | (Principal Accounting Officer) | |||||||||||||
/s/ Patrick Drahi | Chairman and Director | February 14, 2020 | ||||||||||||
Patrick Drahi | ||||||||||||||
/s/ Gerrit Jan Bakker | Director | February 14, 2020 | ||||||||||||
Gerrit Jan Bakker | ||||||||||||||
/s/ Manon Brouillette | Director | February 14, 2020 | ||||||||||||
Manon Brouillette | ||||||||||||||
/s/ David Drahi | Director | February 14, 2020 | ||||||||||||
David Drahi | ||||||||||||||
/s/ Mark Mullen | Director | February 14, 2020 | ||||||||||||
Mark Mullen | ||||||||||||||
/s/ Dennis Okhuijsen | Director | February 14, 2020 | ||||||||||||
Dennis Okhuijsen | ||||||||||||||
/s/ Charles Stewart | Director | February 14, 2020 | ||||||||||||
Charles Stewart | ||||||||||||||
/s/ Raymond Svider | Director | February 14, 2020 | ||||||||||||
Raymond Svider |
Page | |||||||||||
Reports of Independent Registered Public Accounting Firm | |||||||||||
ALTICE USA, INC. AND SUBSIDIARIES | |||||||||||
Consolidated Financial Statements | |||||||||||
Consolidated Balance Sheets - December 31, 2019 and 2018 | |||||||||||
Consolidated Statements of Operations - years ended December 31, 2019, 2018 and 2017 | |||||||||||
Consolidated Statements of Comprehensive Income (Loss) - years ended December 31, 2019, 2018 and 2017
|
|||||||||||
Consolidated Statements of Stockholders' Equity - years ended December 31, 2019, 2018 and 2017
|
|||||||||||
Consolidated Statements of Cash Flows - years ended December 31, 2019, 2018 and 2017 | |||||||||||
Combined Notes to Consolidated Financial Statements | |||||||||||
Supplemental Financial Statements Furnished: | |||||||||||
CSC HOLDINGS, INC. AND SUBSIDIARIES | |||||||||||
Consolidated Financial Statements | |||||||||||
Consolidated Balance Sheets - December 31, 2019 and 2018 | |||||||||||
Consolidated Statements of Operations - years ended December 31, 2019, 2018 and 2017 | |||||||||||
Consolidated Statements of Comprehensive Income (Loss) - years ended December 31, 2019, 2018 and 2017
|
|||||||||||
Consolidated Statements of Member's Equity - years ended December 31, 2019, 2018 and 2017
|
|||||||||||
Consolidated Statements of Cash Flows - years ended December 31, 2019, 2018 and 2017 | |||||||||||
Combined Notes to Consolidated Financial Statements |
ALTICE USA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS December 31, 2019 and 2018 (In thousands) |
||||||||||||||||||||
ASSETS | ||||||||||||||||||||
December 31, 2019 | December 31, 2018 | |||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 701,898 | $ | 298,781 | ||||||||||||||||
Restricted cash | 262 | 257 | ||||||||||||||||||
Accounts receivable, trade (less allowance for doubtful accounts of $14,683 and $13,520)
|
457,118 | 448,399 | ||||||||||||||||||
Prepaid expenses and other current assets | 215,304 | 136,285 | ||||||||||||||||||
Amounts due from affiliates | 6,774 | 17,557 | ||||||||||||||||||
Derivative contracts | — | 1,975 | ||||||||||||||||||
Total current assets | 1,381,356 | 903,254 | ||||||||||||||||||
Property, plant and equipment, net of accumulated depreciation of $5,276,921 and $4,044,671
|
5,753,401 | 5,828,881 | ||||||||||||||||||
Right-of-use operating lease assets | 280,340 | — | ||||||||||||||||||
Investment securities pledged as collateral | 1,931,697 | 1,462,626 | ||||||||||||||||||
Derivative contracts | 25,207 | 109,344 | ||||||||||||||||||
Other assets
|
92,622 | 84,382 | ||||||||||||||||||
Amortizable intangibles, net of accumulated amortization of $3,670,679 and $2,882,787 | 3,481,109 | 4,192,824 | ||||||||||||||||||
Indefinite-lived cable television franchises | 13,020,081 | 13,020,081 | ||||||||||||||||||
Goodwill | 8,142,309 | 8,012,416 | ||||||||||||||||||
Total assets
|
$ | 34,108,122 | $ | 33,613,808 |
LIABILITIES AND STOCKHOLDERS' EQUITY | December 31, 2019 | December 31, 2018 | |||||||||
Current Liabilities: | |||||||||||
Accounts payable | $ | 799,618 | $ | 857,502 | |||||||
Interest payable | 385,655 | 386,475 | |||||||||
Accrued employee related costs | 111,337 | 139,806 | |||||||||
Amounts due to affiliates | 7,456 | 26,096 | |||||||||
Deferred revenue | 124,777 | 140,053 | |||||||||
Debt | 170,682 | 158,625 | |||||||||
Other current liabilities | 378,954 | 312,634 | |||||||||
Total current liabilities | 1,978,479 | 2,021,191 | |||||||||
Defined benefit plan obligations | 57,190 | 96,794 | |||||||||
Other liabilities | 147,714 | 174,760 | |||||||||
Deferred tax liability | 4,762,595 | 4,723,937 | |||||||||
Liabilities under derivative contracts | 255,666 | 132,908 | |||||||||
Right-of-use operating lease liability | 269,062 | — | |||||||||
Long-term debt, net of current maturities | 24,249,603 | 22,653,975 | |||||||||
Total liabilities | 31,720,309 | 29,803,565 | |||||||||
Commitments and contingencies (Note 17) | |||||||||||
Redeemable equity | 108,551 | 130,007 | |||||||||
Stockholders' Equity: | |||||||||||
Preferred stock, $.01 par value, 100,000,000 shares authorized, no shares issued and
outstanding
|
— | — | |||||||||
Class A common stock: $0.01 par value, 4,000,000,000 shares authorized,
457,207,079 and 446,749,307 issued and outstanding as of December 31,
2019 and 496,064,027 shares issued and outstanding as of December 31, 2018
|
4,572 | 4,961 | |||||||||
Class B common stock: $0.01 par value, 1,000,000,000 shares authorized, 490,086,674
issued, 186,245,832 shares outstanding as of December 31, 2019 and 212,976,259
shares outstanding as of December 31, 2018
|
1,862 | 2,130 | |||||||||
Class C common stock: $0.01 par value, 4,000,000,000 shares authorized, no shares
issued and outstanding
|
— | — | |||||||||
Paid-in capital | 2,039,918 | 3,423,803 | |||||||||
Retained earnings | 390,766 | 251,830 | |||||||||
2,437,118 | 3,682,724 | ||||||||||
Treasury stock, at cost (10,457,772 Class A common shares at December 31, 2019) | (163,904) | — | |||||||||
Accumulated other comprehensive loss | (3,250) | (11,783) | |||||||||
Total stockholders' equity | 2,269,964 | 3,670,941 | |||||||||
Noncontrolling interest | 9,298 | 9,295 | |||||||||
Total stockholders' equity | 2,279,262 | 3,680,236 | |||||||||
$ | 34,108,122 | $ | 33,613,808 |
2019 | 2018 | 2017 | |||||||||||||||
Revenue (including revenue from affiliates of $3,974, $2,575 and $1,100 respectively) (See Note 16)
|
$ | 9,760,859 | $ | 9,566,608 | $ | 9,306,950 | |||||||||||
Operating expenses: | |||||||||||||||||
Programming and other direct costs (including charges from affiliates of $11,580, $7,261 and $4,176 respectively) (See Note 16)
|
3,300,528 | 3,173,076 | 3,035,655 | ||||||||||||||
Other operating expenses (including charges from affiliates of $8,355, $16,307 and $33,140 respectively) (See Note 16)
|
2,300,398 | 2,290,266 | 2,347,315 | ||||||||||||||
Restructuring and other expense
|
72,978 | 38,548 | 152,401 | ||||||||||||||
Depreciation and amortization (including impairments)
|
2,263,144 | 2,382,339 | 2,930,571 | ||||||||||||||
7,937,048 | 7,884,229 | 8,465,942 | |||||||||||||||
Operating income | 1,823,811 | 1,682,379 | 841,008 | ||||||||||||||
Other income (expense): | |||||||||||||||||
Interest expense (including interest expense to affiliates and related parties of $600 and $90,405 in 2018 and 2017, respectively) (See Note 16)
|
(1,536,559) | (1,556,282) | (1,603,132) | ||||||||||||||
Interest income | 5,709 | 10,856 | 1,921 | ||||||||||||||
Gain (loss) on investments and sale of affiliate interests, net | 473,406 | (250,877) | 237,354 | ||||||||||||||
Gain (loss) on derivative contracts, net | (282,713) | 218,848 | (236,330) | ||||||||||||||
Gain (loss) on interest rate swap contracts | (53,902) | (61,697) | 5,482 | ||||||||||||||
Loss on extinguishment of debt and write-off of deferred financing costs (including $513,723 related to affiliates and related parties in 2017) (See Note 16)
|
(243,806) | (48,804) | (600,240) | ||||||||||||||
Other income (expense), net | 1,183 | (12,484) | (13,651) | ||||||||||||||
(1,636,682) | (1,700,440) | (2,208,596) | |||||||||||||||
Income (loss) before income taxes | 187,129 | (18,061) | (1,367,588) | ||||||||||||||
Income tax benefit (expense) | (47,190) | 38,655 | 2,862,352 | ||||||||||||||
Net income | 139,939 | 20,594 | 1,494,764 | ||||||||||||||
Net income attributable to noncontrolling interests
|
(1,003) | (1,761) | (1,587) | ||||||||||||||
Net income attributable to Altice USA, Inc. stockholders
|
$ | 138,936 | $ | 18,833 | $ | 1,493,177 | |||||||||||
Income per share:
|
|||||||||||||||||
Basic income per share
|
$ | 0.21 | $ | 0.03 | $ | 2.15 | |||||||||||
Basic weighted average common shares (in thousands) | 660,384 | 730,088 | 696,055 | ||||||||||||||
Diluted income per share | $ | 0.21 | $ | 0.03 | $ | 2.15 | |||||||||||
Diluted weighted average common shares (in thousands) | 662,541 | 730,088 | 696,055 | ||||||||||||||
Cash dividends declared per common share
|
$ | — | $ | 2.035 | $ | 1.29 |
2019 | 2018 | 2017 | |||||||||||||||
Net income | $ | 139,939 | $ | 20,594 | $ | 1,494,764 | |||||||||||
Other comprehensive income: | |||||||||||||||||
Defined benefit pension plans: | |||||||||||||||||
Unrecognized actuarial gain (loss) | 12,074 | 830 | (18,632) | ||||||||||||||
Applicable income taxes | (3,644) | (220) | 7,441 | ||||||||||||||
Unrecognized gain (loss) arising during period, net of income taxes | 8,430 | 610 | (11,191) | ||||||||||||||
Amortization of actuarial losses | 89 | — | — | ||||||||||||||
Applicable income taxes | (24) | — | — | ||||||||||||||
Amortization of actuarial losses included in other expense, net of tax | 65 | — | — | ||||||||||||||
Settlement loss included in other expense, net | 1,643 | 1,268 | 1,845 | ||||||||||||||
Applicable income taxes | (441) | (342) | (738) | ||||||||||||||
Settlement loss included in other expense, net, net of income taxes | 1,202 | 926 | 1,107 | ||||||||||||||
Curtailment loss | — | — | (3,195) | ||||||||||||||
Applicable income taxes | — | — | 1,278 | ||||||||||||||
Curtailment loss, net of income taxes
|
— | — | (1,917) | ||||||||||||||
Foreign currency translation adjustment | (1,164) | 967 | — | ||||||||||||||
Applicable income taxes | — | (261) | — | ||||||||||||||
Foreign currency translation adjustment, net | (1,164) | 706 | — | ||||||||||||||
Other comprehensive income (loss) | 8,533 | 2,242 | (12,001) | ||||||||||||||
Comprehensive income | 148,472 | 22,836 | 1,482,763 | ||||||||||||||
Comprehensive income attributable to noncontrolling interests | (1,003) | (1,761) | (1,587) | ||||||||||||||
Comprehensive income attributable to Altice USA, Inc. stockholders | $ | 147,469 | $ | 21,075 | $ | 1,481,176 |
ALTICE USA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY Years ended December 31, 2019, 2018 and 2017 (In thousands) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Common Stock |
Class B Common Stock |
Paid-in
Capital |
Retained Earnings (Accumulated
Deficit) |
Accumulated
Other Comprehensive Income (Loss) |
Total
Stockholders' Equity |
Non-controlling
Interest |
Total
Equity |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2017
|
$ | — | $ | — | $ | 3,003,554 | $ | (963,312) | $ | 1,979 | $ | 2,042,221 | $ | 287 | $ | 2,042,508 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to stockholders
|
— | — | — | 1,493,177 | — | 1,493,177 | — | 1,493,177 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests
|
— | — | — | — | — | — | 1,587 | 1,587 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension liability adjustments, net of income taxes
|
— | — | — | — | (12,001) | (12,001) | — | (12,001) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense
|
— | — | 57,430 | — | — | 57,430 | — | 57,430 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in redeemable equity
|
— | — | (163,142) | — | — | (163,142) | — | (163,142) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from stockholders
|
— | — | 51,135 | — | — | 51,135 | — | 51,135 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivable from parent
|
— | — | (50,000) | — | — | (50,000) | — | (50,000) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to stockholders/non-controlling interest
|
— | — | (839,700) | — | — | (839,700) | (335) | (840,035) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognition of previously unrealized excess tax benefits related to share-based awards in connection with the adoption of ASU 2016-09
|
— | — | — | 310,771 | — | 310,771 | — | 310,771 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock pursuant to organizational transactions prior to IPO
|
2,349 | 4,901 | 2,257,002 | — | — | 2,264,252 | — | 2,264,252 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock pursuant to IPO
|
121 | — | 348,950 | — | — | 349,071 | — | 349,071 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2017
|
$ | 2,470 | $ | 4,901 | $ | 4,665,229 | $ | 840,636 | $ | (10,022) | $ | 5,503,214 | $ | 1,539 | $ | 5,504,753 |
ALTICE USA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (continued) Years ended December 31, 2019, 2018 and 2017 (In thousands) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Common Stock |
Class B Common Stock |
Paid-in
Capital |
Retained Earnings (Accumulated
Deficit) |
Accumulated
Other Comprehensive Income (Loss) |
Total
Stockholders' Equity |
Non-controlling
Interest |
Total
Equity |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2018
|
$ | 2,470 | $ | 4,901 | $ | 4,665,229 | $ | 840,636 | $ | (10,022) | $ | 5,503,214 | $ | 1,539 | $ | 5,504,753 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to stockholders
|
— | — | — | 18,833 | — | 18,833 | — | 18,833 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests
|
— | — | — | — | — | — | 1,761 | 1,761 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests
|
— | — | — | — | — | — | 5,995 | 5,995 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension liability adjustments, net of income taxes
|
— | — | — | — | 1,536 | 1,536 | — | 1,536 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of income taxes
|
— | — | — | — | 706 | 706 | — | 706 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense
|
— | — | 59,812 | — | — | 59,812 | — | 59,812 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable equity vested | — | — | 169,452 | — | — | 169,452 | — | 169,452 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in redeemable equity
|
— | — | (68,169) | — | — | (68,169) | — | (68,169) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend payment
|
— | — | (963,711) | (536,224) | — | (1,499,935) | — | (1,499,935) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A shares acquired through share repurchase program and retired
|
(280) | — | (499,720) | — | — | (500,000) | — | (500,000) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Class B to Class A shares, including $2,424 in connection with the Distribution
|
2,771 | (2,771) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of i24 Acquisition | — | — | 61,769 | (73,578) | (1,840) | (13,649) | — | (13,649) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other changes to equity | — | — | (859) | — | — | (859) | — | (859) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption of ASU No. 2018-02
|
— | — | — | 2,163 | (2,163) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018
|
$ | 4,961 | $ | 2,130 | $ | 3,423,803 | $ | 251,830 | $ | (11,783) | $ | 3,670,941 | $ | 9,295 | $ | 3,680,236 |
ALTICE USA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (continued) Years ended December 31, 2019, 2018 and 2017 (In thousands) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Common Stock |
Class B Common Stock |
Paid-in
Capital |
Retained Earnings | Treasury Stock |
Accumulated
Other Comprehensive Loss |
Total
Stockholders' Equity |
Non-controlling
Interest |
Total
Equity |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2019
|
$ | 4,961 | $ | 2,130 | $ | 3,423,803 | $ | 251,830 | $ | — | $ | (11,783) | $ | 3,670,941 | $ | 9,295 | $ | 3,680,236 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to stockholders
|
— | — | — | 138,936 | — | — | 138,936 | — | 138,936 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests
|
— | — | — | — | — | — | — | 1,003 | 1,003 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions
to noncontrolling interests |
— | — | — | — | — | — | (1,000) | (1,000) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension liability adjustments, net of income taxes
|
— | — | — | — | — | 9,697 | 9,697 | — | 9,697 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of income taxes
|
— | — | — | — | — | (1,164) | (1,164) | — | (1,164) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense (equity classified)
|
— | — | 99,077 | — | — | — | 99,077 | — | 99,077 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable equity vested
|
187,966 | — | 187,966 | — | 187,966 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in redeemable equity
|
— | — | (166,511) | — | — | — | (166,511) | — | (166,511) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A shares acquired through share repurchase program and retired
|
(727) | — | (1,686,146) | — | — | — | (1,686,873) | — | (1,686,873) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Class B to Class A shares
|
268 | (268) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares pursuant to employee long term incentive plan
|
65 | — | 7,099 | — | (42) | — | 7,122 | — | 7,122 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of
common shares to
acquire
partnership
interests in
Neptune LP
|
— | — | 163,862 | — | (163,862) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A shares issued in connection with acquisition
|
5 | — | 10,768 | — | — | — | 10,773 | — | 10,773 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019
|
$ | 4,572 | $ | 1,862 | $ | 2,039,918 | $ | 390,766 | $ | (163,904) | $ | (3,250) | $ | 2,269,964 | $ | 9,298 | $ | 2,279,262 |
2019 | 2018 | 2017 | ||||||||||||||||||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||||||||||||||||||
Net income | $ | 139,939 | $ | 20,594 | $ | 1,494,764 | ||||||||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||||||||||||||||||
Depreciation and amortization (including impairments) | 2,263,144 | 2,382,339 | 2,930,571 | |||||||||||||||||||||||||||||
Non-cash restructuring charges | 16,826 | — | — | |||||||||||||||||||||||||||||
Equity in net loss of affiliates | — | 10,849 | 10,040 | |||||||||||||||||||||||||||||
Loss (gain) on investments and sale of affiliate interests, net | (473,406) | 250,877 | (237,354) | |||||||||||||||||||||||||||||
Loss (gain) on derivative contracts, net | 282,713 | (218,848) | 236,330 | |||||||||||||||||||||||||||||
Loss on extinguishment of debt and write-off of deferred financing costs | 243,806 | 48,804 | 600,240 | |||||||||||||||||||||||||||||
Amortization of deferred financing costs and discounts (premiums) on indebtedness
|
106,214 | 85,121 | 31,046 | |||||||||||||||||||||||||||||
Settlement loss related to pension plan
|
1,732 | 1,268 | 1,845 | |||||||||||||||||||||||||||||
Share-based compensation expense related to equity classified awards | 99,078 | 59,812 | 57,430 | |||||||||||||||||||||||||||||
Deferred income taxes | 14,931 | (67,603) | (2,880,154) | |||||||||||||||||||||||||||||
Non-cash lease expense | 46,581 | — | — | |||||||||||||||||||||||||||||
Provision for doubtful accounts | 91,520 | 71,426 | 74,183 | |||||||||||||||||||||||||||||
Change in assets and liabilities, net of effects of acquisitions and dispositions:
|
||||||||||||||||||||||||||||||||
Accounts receivable, trade | (91,718) | (144,079) | (89,683) | |||||||||||||||||||||||||||||
Other receivables | (21,755) | 4,246 | (12,835) | |||||||||||||||||||||||||||||
Prepaid expenses and other assets | (100,343) | (14,889) | (7,426) | |||||||||||||||||||||||||||||
Amounts due from and due to affiliates | (7,857) | 11,049 | (34,326) | |||||||||||||||||||||||||||||
Accounts payable | (33,107) | 12,455 | 73,888 | |||||||||||||||||||||||||||||
Accrued liabilities | (44,083) | (130,631) | (241,701) | |||||||||||||||||||||||||||||
Deferred revenue | (10,384) | 72,426 | 12,310 | |||||||||||||||||||||||||||||
Liabilities related to interest rate swap and derivative contracts | 30,338 | 53,101 | (921) | |||||||||||||||||||||||||||||
Net cash provided by operating activities | 2,554,169 | 2,508,317 | 2,018,247 | |||||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||
Capital expenditures
|
(1,355,350) | (1,153,589) | (951,349) | |||||||||||||||||||||||||||||
Payment for acquisitions, net of cash acquired
|
(172,269) | (10,753) | (46,703) | |||||||||||||||||||||||||||||
Sale of affiliate interest | 1,958 | (3,537) | — | |||||||||||||||||||||||||||||
Proceeds related to sale of equipment, including costs of disposal | 3,909 | 10,779 | 9,743 | |||||||||||||||||||||||||||||
Decrease (increase) in other investments | 354 | 9,327 | (4,773) | |||||||||||||||||||||||||||||
Settlement of put call options | — | — | (97,410) | |||||||||||||||||||||||||||||
Additions to other intangible assets | (4,071) | (584) | (1,707) | |||||||||||||||||||||||||||||
Net cash used in investing activities | (1,525,469) | (1,148,357) | (1,092,199) | |||||||||||||||||||||||||||||
See accompanying notes to consolidated financial statements. |
ALTICE USA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
Years ended December 31, 2019, 2018 and 2017
(In thousands)
|
||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | ||||||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||
Proceeds from credit facility debt, net of discounts | 5,040,000 | 3,489,313 | 5,593,675 | |||||||||||||||||||||||||||||
Repayment of credit facility debt | (3,832,062) | (2,221,175) | (4,411,581) | |||||||||||||||||||||||||||||
Issuance of senior notes, including premiums | 4,054,375 | 2,050,000 | — | |||||||||||||||||||||||||||||
Redemption of senior notes, including premiums and fees | (4,225,786) | (2,628,962) | (1,729,400) | |||||||||||||||||||||||||||||
Proceeds from collateralized indebtedness, net | 93,000 | 516,513 | 838,794 | |||||||||||||||||||||||||||||
Repayment of collateralized indebtedness and related derivative contracts, net
|
— | (516,513) | (831,059) | |||||||||||||||||||||||||||||
Dividends to stockholders | — | (1,499,935) | (919,317) | |||||||||||||||||||||||||||||
Proceeds from notes payable | 65,854 | 15,955 | 33,733 | |||||||||||||||||||||||||||||
Repayment of notes payable | (102,066) | (32,632) | — | |||||||||||||||||||||||||||||
Principal payments on finance lease obligations | (8,980) | (10,228) | (15,157) | |||||||||||||||||||||||||||||
Purchase of shares of Altice USA, Inc. Class A common stock, pursuant to a share repurchase program
|
(1,686,873) | (500,000) | — | |||||||||||||||||||||||||||||
Additions to deferred financing costs | (23,583) | (28,468) | (8,600) | |||||||||||||||||||||||||||||
Other | — | (859) | — | |||||||||||||||||||||||||||||
Proceeds from stock option exercises | 3,209 | — | — | |||||||||||||||||||||||||||||
Contingent payment for acquisition | (500) | (30,000) | — | |||||||||||||||||||||||||||||
Proceeds from IPO, net of fees | — | — | 349,071 | |||||||||||||||||||||||||||||
Contributions from stockholders | — | — | 1,135 | |||||||||||||||||||||||||||||
Contributions from (distributions to) noncontrolling interests, net | (1,000) | 5,995 | (335) | |||||||||||||||||||||||||||||
Net cash used in financing activities | (624,412) | (1,390,996) | (1,099,041) | |||||||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents
|
404,288 | (31,036) | (172,993) | |||||||||||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (1,166) | (26) | — | |||||||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 403,122 | (31,062) | (172,993) | |||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of year | 299,038 | 330,100 | 503,093 | |||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at end of year | $ | 702,160 | $ | 299,038 | $ | 330,100 |
CSC HOLDINGS, LLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS December 31, 2019 and 2018 (In thousands) |
||||||||||||||||||||
ASSETS | ||||||||||||||||||||
December 31, 2019 | December 31, 2018 | |||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 697,741 | $ | 298,527 | ||||||||||||||||
Restricted cash | 262 | 257 | ||||||||||||||||||
Accounts receivable, trade (less allowance for doubtful accounts of $14,683 and $13,520)
|
457,118 | 448,399 | ||||||||||||||||||
Prepaid expenses and other current assets | 211,642 | 141,267 | ||||||||||||||||||
Amounts due from affiliates | 6,774 | 4,385 | ||||||||||||||||||
Derivative contracts | — | 1,975 | ||||||||||||||||||
Total current assets | 1,373,537 | 894,810 | ||||||||||||||||||
Property, plant and equipment, net of accumulated depreciation of $5,276,921 and $4,044,671
|
5,753,401 | 5,828,881 | ||||||||||||||||||
Right-of-use operating lease assets | 280,340 | — | ||||||||||||||||||
Investment securities pledged as collateral | 1,931,697 | 1,462,626 | ||||||||||||||||||
Derivative contracts | 25,207 | 109,344 | ||||||||||||||||||
Other assets
|
92,622 | 65,183 | ||||||||||||||||||
Amortizable intangibles, net of accumulated amortization of $3,670,679 and $2,882,787 | 3,481,109 | 4,192,824 | ||||||||||||||||||
Indefinite-lived cable television franchises | 13,020,081 | 13,020,081 | ||||||||||||||||||
Goodwill | 8,142,309 | 8,012,416 | ||||||||||||||||||
Total assets
|
$ | 34,100,303 | $ | 33,586,165 |
CSC HOLDINGS, LLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (continued)
December 31, 2019 and 2018
(In thousands, except per membership unit amounts)
|
||||||||||||||||||||
LIABILITIES AND MEMBER'S EQUITY | December 31, 2019 | December 31, 2018 | ||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Accounts payable | $ | 799,618 | $ | 857,502 | ||||||||||||||||
Interest Payable | 385,655 | 366,644 | ||||||||||||||||||
Accrued employee related costs | 111,337 | 139,806 | ||||||||||||||||||
Amounts due to affiliates | 7,456 | 179,417 | ||||||||||||||||||
Deferred revenue | 124,777 | 140,053 | ||||||||||||||||||
Debt | 170,682 | 158,625 | ||||||||||||||||||
Other current liabilities | 378,948 | 301,783 | ||||||||||||||||||
Total current liabilities | 1,978,473 | 2,143,830 | ||||||||||||||||||
Defined benefit plan obligations | 57,190 | 96,794 | ||||||||||||||||||
Other liabilities | 147,714 | 174,757 | ||||||||||||||||||
Deferred tax liability | 4,980,599 | 5,349,947 | ||||||||||||||||||
Liabilities under derivative contracts | 255,666 | 132,908 | ||||||||||||||||||
Right-of-use operating lease liability | 269,062 | — | ||||||||||||||||||
Long-term debt, net of current maturities | 24,249,603 | 21,558,782 | ||||||||||||||||||
Total liabilities | 31,938,307 | 29,457,018 | ||||||||||||||||||
Commitments and contingencies (Note 17) | ||||||||||||||||||||
Redeemable equity | 108,551 | 130,007 | ||||||||||||||||||
Member's Equity: | ||||||||||||||||||||
Retained earnings
|
13,515 | 549,691 | ||||||||||||||||||
Other member's equity (100 membership units issued and outstanding) | 2,033,882 | 3,451,937 | ||||||||||||||||||
2,047,397 | 4,001,628 | |||||||||||||||||||
Accumulated other comprehensive loss | (3,250) | (11,783) | ||||||||||||||||||
Total member's equity | 2,044,147 | 3,989,845 | ||||||||||||||||||
Noncontrolling interest | 9,298 | 9,295 | ||||||||||||||||||
Total member's equity | 2,053,445 | 3,999,140 | ||||||||||||||||||
$ | 34,100,303 | $ | 33,586,165 |
2019 | 2018 | 2017 | |||||||||||||||
Revenue (including revenue from affiliates of $3,974, $2,575 and $1,100 respectively) (See Note 16)
|
$ | 9,760,859 | $ | 9,566,608 | $ | 9,306,950 | |||||||||||
Operating expenses: | |||||||||||||||||
Programming and other direct costs (including charges from affiliates of $11,580, $7,261 and $4,176 respectively) (See Note 16)
|
3,300,528 | 3,173,076 | 3,035,655 | ||||||||||||||
Other operating expenses (including charges from affiliates of $8,355, $16,307 and $33,140 respectively) (See Note 16)
|
2,300,398 | 2,290,266 | 2,347,315 | ||||||||||||||
Restructuring and other expense
|
72,978 | 38,548 | 152,283 | ||||||||||||||
Depreciation and amortization (including impairments)
|
2,263,144 | 2,382,339 | 2,930,571 | ||||||||||||||
7,937,048 | 7,884,229 | 8,465,824 | |||||||||||||||
Operating income | 1,823,811 | 1,682,379 | 841,126 | ||||||||||||||
Other income (expense): | |||||||||||||||||
Interest expense (including interest expense to affiliates and related parties of $600 in 2018) (See Note 16)
|
(1,455,302) | (1,253,176) | (1,128,317) | ||||||||||||||
Interest income (including interest income to affiliates and related parties of $2,429 and $6,496 in 2018 and 2017 respectively) (See Note 16)
|
5,709 | 13,228 | 1,039 | ||||||||||||||
Gain (loss) on investments and sale of affiliate interests, net | 473,406 | (261,536) | 237,354 | ||||||||||||||
Gain (loss) on derivative contracts, net | (282,713) | 218,848 | (138,920) | ||||||||||||||
Gain (loss) on interest rate swap contracts | (53,902) | (61,697) | 5,482 | ||||||||||||||
Loss on extinguishment of debt and write-off of deferred financing costs | (228,130) | (7,883) | (53,988) | ||||||||||||||
Other income (expense), net | 1,181 | (12,274) | (13,651) | ||||||||||||||
(1,539,751) | (1,364,490) | (1,091,001) | |||||||||||||||
Income (loss) before income taxes | 284,060 | 317,889 | (249,875) | ||||||||||||||
Income tax benefit (expense) | (71,243) | (57,563) | 2,827,751 | ||||||||||||||
Net income | 212,817 | 260,326 | 2,577,876 | ||||||||||||||
Net income attributable to noncontrolling interests
|
(1,003) | (1,761) | (1,587) | ||||||||||||||
Net income attributable to CSC Holdings, LLC sole member
|
$ | 211,814 | $ | 258,565 | $ | 2,576,289 |
2019 | 2018 | 2017 | |||||||||||||||
Net income | $ | 212,817 | $ | 260,326 | $ | 2,577,876 | |||||||||||
Other comprehensive income: | |||||||||||||||||
Defined benefit pension plans: | |||||||||||||||||
Unrecognized actuarial gain (loss) | 12,074 | 830 | (18,632) | ||||||||||||||
Applicable income taxes | (3,644) | (220) | 7,441 | ||||||||||||||
Unrecognized gain (loss) arising during period, net of income taxes
|
8,430 | 610 | (11,191) | ||||||||||||||
Amortization of actuarial losses | 89 | — | — | ||||||||||||||
Applicable income taxes | (24) | — | — | ||||||||||||||
Amortization of actuarial losses included in other expense, net of tax | 65 | — | — | ||||||||||||||
Settlement loss included in other expense, net
|
1,643 | 1,268 | 1,845 | ||||||||||||||
Applicable income taxes | (441) | (342) | (738) | ||||||||||||||
Settlement loss included in other expense, net, net of income taxes
|
1,202 | 926 | 1,107 | ||||||||||||||
Curtailment loss
|
— | — | (3,195) | ||||||||||||||
Applicable income taxes | — | — | 1,278 | ||||||||||||||
Curtailment loss, net of income taxes
|
— | — | (1,917) | ||||||||||||||
Foreign currency translation adjustment | (1,164) | 967 | — | ||||||||||||||
Applicable income taxes | — | (261) | — | ||||||||||||||
Foreign currency translation adjustment, net | (1,164) | 706 | — | ||||||||||||||
Other comprehensive income (loss) | 8,533 | 2,242 | (12,001) | ||||||||||||||
Comprehensive income | 221,350 | 262,568 | 2,565,875 | ||||||||||||||
Comprehensive income attributable to noncontrolling interests | (1,003) | (1,761) | (1,587) | ||||||||||||||
Comprehensive income attributable to CSC Holdings, LLC's sole member | $ | 220,347 | $ | 260,807 | $ | 2,564,288 |
Accumulated Deficit/Retained Earnings | Other Member's Equity | Accumulated Other Comprehensive Income (Loss) | Total Member's Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||
Balance at January 1, 2017 | $ | (685,576) | $ | 9,542,074 | $ | 1,979 | $ | 8,858,477 | $ | 287 | $ | 8,858,764 | |||||||||||||||||||||||||||||
Net income attributable to CSC
Holdings' sole member
|
2,576,289 | — | — | 2,576,289 | — | 2,576,289 | |||||||||||||||||||||||||||||||||||
Net income attributable to
noncontrolling interests
|
— | — | — | — | 1,587 | 1,587 | |||||||||||||||||||||||||||||||||||
Pension liability adjustments, net of income taxes
|
— | — | (12,001) | (12,001) | — | (12,001) | |||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | 57,430 | — | 57,430 | — | 57,430 | |||||||||||||||||||||||||||||||||||
Change in redeemable equity | — | (163,141) | — | (163,141) | — | (163,141) | |||||||||||||||||||||||||||||||||||
Contributions from Cablevision | — | 761,316 | — | 761,316 | — | 761,316 | |||||||||||||||||||||||||||||||||||
Cash distributions to Cablevision | — | (2,777,498) | — | (2,777,498) | — | (2,777,498) | |||||||||||||||||||||||||||||||||||
Distributions to non-controlling
interest
|
— | — | — | — | (335) | (335) | |||||||||||||||||||||||||||||||||||
Recognition of previously unrealized excess tax benefits of share-based awards in connection with ASU 2016-09
|
143,859 | — | — | 143,859 | — | 143,859 | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | $ | 2,034,572 | $ | 7,420,181 | $ | (10,022) | $ | 9,444,731 | $ | 1,539 | $ | 9,446,270 |
Retained Earnings | Other Member's Equity | Accumulated Other Comprehensive Income (Loss) | Total Member's Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||
Balance at January 1, 2018 | $ | 2,034,572 | $ | 7,420,181 | $ | (10,022) | $ | 9,444,731 | $ | 1,539 | $ | 9,446,270 | |||||||||||||||||||||||
Net income attributable to CSC
Holdings' sole member
|
258,565 | — | — | 258,565 | — | 258,565 | |||||||||||||||||||||||||||||
Net income attributable to
noncontrolling interests
|
— | — | — | — | 1,761 | 1,761 | |||||||||||||||||||||||||||||
Contributions from noncontrolling
interests
|
— | — | — | — | 5,995 | 5,995 | |||||||||||||||||||||||||||||
Pension liability adjustments, net
of income taxes
|
— | — | 1,536 | 1,536 | — | 1,536 | |||||||||||||||||||||||||||||
Foreign currency translation
adjustment, net of income taxes
|
— | — | 706 | 706 | — | 706 | |||||||||||||||||||||||||||||
Share-based compensation
expense
|
— | 59,812 | — | 59,812 | — | 59,812 | |||||||||||||||||||||||||||||
Redeemable equity vested | — | 169,452 | — | 169,452 | — | 169,452 | |||||||||||||||||||||||||||||
Change in redeemable equity | — | (68,169) | — | (68,169) | — | (68,169) | |||||||||||||||||||||||||||||
Cash distributions | (1,672,031) | (1,386,716) | — | (3,058,747) | — | (3,058,747) | |||||||||||||||||||||||||||||
Contributions from Cablevision | — | 50,000 | — | 50,000 | — | 50,000 | |||||||||||||||||||||||||||||
Impact of i24 Acquisition | (73,578) | 61,769 | (1,840) | (13,649) | — | (13,649) | |||||||||||||||||||||||||||||
Adoption of ASU No. 2018-02 | 2,163 | — | (2,163) | — | — | — | |||||||||||||||||||||||||||||
Cequel debt exchanged for CSC
Holdings debt
|
— | (2,854,392) | — | (2,854,392) | — | (2,854,392) | |||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | 549,691 | $ | 3,451,937 | $ | (11,783) | $ | 3,989,845 | $ | 9,295 | $ | 3,999,140 |
Retained Earnings | Other Member's Equity | Accumulated Other Comprehensive Loss | Total Member's Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||
Balance at January 1, 2019 | $ | 549,691 | $ | 3,451,937 | $ | (11,783) | $ | 3,989,845 | $ | 9,295 | $ | 3,999,140 | |||||||||||||||||||||||
Net income attributable to CSC Holdings' sole member
|
211,814 | — | — | 211,814 | — | 211,814 | |||||||||||||||||||||||||||||
Net income attributable to
noncontrolling interests
|
— | — | — | — | 1,003 | 1,003 | |||||||||||||||||||||||||||||
Distributions to noncontrolling
interests
|
— | — | — | — | (1,000) | (1,000) | |||||||||||||||||||||||||||||
Pension liability adjustments, net
of income taxes
|
— | — | 9,697 | 9,697 | — | 9,697 | |||||||||||||||||||||||||||||
Foreign currency translation
adjustment, net of income taxes
|
— | — | (1,164) | (1,164) | — | (1,164) | |||||||||||||||||||||||||||||
Share-based compensation
expense
|
— | 99,077 | — | 99,077 | — | 99,077 | |||||||||||||||||||||||||||||
Redeemable equity vested | — | 187,967 | — | 187,967 | — | 187,967 | |||||||||||||||||||||||||||||
Change in redeemable equity | — | (166,511) | — | (166,511) | — | (166,511) | |||||||||||||||||||||||||||||
Cash distributions to parent | (747,990) | (1,531,482) | — | (2,279,472) | — | (2,279,472) | |||||||||||||||||||||||||||||
Non-cash contributions from
parent |
— | 151,455 | — | 151,455 | — | 151,455 | |||||||||||||||||||||||||||||
Impact of Cheddar acquisition | — | 10,773 | — | 10,773 | — | 10,773 | |||||||||||||||||||||||||||||
Assumption of Cablevision debt
and acquisition of Cablevision
assets
|
— | (169,334) | — | (169,334) | — | (169,334) | |||||||||||||||||||||||||||||
Balance at December 31, 2019 | 13,515 | 2,033,882 | (3,250) | 2,044,147 | 9,298 | 2,053,445 |
2019 | 2018 | 2017 | ||||||||||||||||||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||||||||||||||||||
Net income | $ | 212,817 | $ | 260,326 | $ | 2,577,876 | ||||||||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||||||||||||||||||
Depreciation and amortization (including impairments) | 2,263,144 | 2,382,339 | 2,930,571 | |||||||||||||||||||||||||||||
Non-cash restructuring charges | 16,826 | — | — | |||||||||||||||||||||||||||||
Equity in net loss of affiliates | — | 10,849 | 10,040 | |||||||||||||||||||||||||||||
Loss (gain) on investments and sale of affiliate interests, net | (473,406) | 261,536 | (237,354) | |||||||||||||||||||||||||||||
Loss (gain) on derivative contracts, net | 282,713 | (218,848) | 138,920 | |||||||||||||||||||||||||||||
Loss on extinguishment of debt and write-off of deferred financing costs | 228,130 | 7,883 | 53,988 | |||||||||||||||||||||||||||||
Amortization of deferred financing costs and discounts (premiums) on indebtedness
|
90,706 | 43,135 | 13,226 | |||||||||||||||||||||||||||||
Settlement loss related to pension plan
|
1,732 | 1,268 | 1,845 | |||||||||||||||||||||||||||||
Share-based compensation expense related to equity classified awards | 99,078 | 59,812 | 57,430 | |||||||||||||||||||||||||||||
Deferred income taxes | (238,709) | (251,593) | (3,026,782) | |||||||||||||||||||||||||||||
Non-cash lease expense | 46,581 | — | — | |||||||||||||||||||||||||||||
Provision for doubtful accounts | 91,520 | 71,426 | 74,183 | |||||||||||||||||||||||||||||
Change in assets and liabilities, net of effects of acquisitions and dispositions:
|
||||||||||||||||||||||||||||||||
Accounts receivable, trade | (91,718) | (144,079) | (89,683) | |||||||||||||||||||||||||||||
Other receivables | (12,512) | 4,048 | (12,707) | |||||||||||||||||||||||||||||
Prepaid expenses and other assets | (100,343) | (27,986) | (12,135) | |||||||||||||||||||||||||||||
Amounts due from and due to affiliates | 247,917 | 175,159 | (413,930) | |||||||||||||||||||||||||||||
Accounts payable | (33,107) | 12,455 | 73,888 | |||||||||||||||||||||||||||||
Accrued liabilities | (27,581) | (7,182) | (97,154) | |||||||||||||||||||||||||||||
Deferred revenue | (10,384) | 72,426 | 20,634 | |||||||||||||||||||||||||||||
Liabilities related to interest rate swap and derivative contracts | 30,338 | 53,101 | (921) | |||||||||||||||||||||||||||||
Net cash provided by operating activities | 2,623,742 | 2,766,075 | 2,061,935 | |||||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||
Capital expenditures
|
(1,355,350) | (1,153,589) | (951,349) | |||||||||||||||||||||||||||||
Payment for acquisitions, net of cash acquired
|
(172,269) | (10,753) | (46,703) | |||||||||||||||||||||||||||||
Sale of affiliate interest | 1,958 | (3,537) | — | |||||||||||||||||||||||||||||
Proceeds related to sale of equipment, including costs of disposal | 3,909 | 10,779 | 9,743 | |||||||||||||||||||||||||||||
Decrease (increase) in other investments | 354 | (2,500) | (4,773) | |||||||||||||||||||||||||||||
Additions to other intangible assets | (4,071) | (584) | (1,707) | |||||||||||||||||||||||||||||
Net cash used in investing activities | (1,525,469) | (1,160,184) | (994,789) | |||||||||||||||||||||||||||||
See accompanying notes to consolidated financial statements. |
CSC HOLDINGS LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) Years ended December 31, 2019, 2018 and 2017 |
||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | ||||||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||
Proceeds from credit facility debt, net of discounts | 5,040,000 | 3,489,313 | 5,593,675 | |||||||||||||||||||||||||||||
Repayment of credit facility debt | (3,832,062) | (2,221,175) | (4,411,581) | |||||||||||||||||||||||||||||
Issuance of senior notes, including premiums | 4,054,375 | 1,000,000 | — | |||||||||||||||||||||||||||||
Redemption of senior notes, including premiums and fees
|
(3,703,454) | (805,206) | (350,120) | |||||||||||||||||||||||||||||
Proceeds from collateralized indebtedness, net | 93,000 | 516,513 | 838,794 | |||||||||||||||||||||||||||||
Repayment of collateralized indebtedness and related derivative contracts, net
|
— | (516,513) | (831,059) | |||||||||||||||||||||||||||||
Distributions to parent | (2,279,472) | (3,058,750) | (2,777,497) | |||||||||||||||||||||||||||||
Contributions from parent | — | 50,000 | 761,316 | |||||||||||||||||||||||||||||
Proceeds from notes payable | 65,854 | 15,955 | 33,733 | |||||||||||||||||||||||||||||
Repayment of notes payable | (102,066) | (32,632) | — | |||||||||||||||||||||||||||||
Principal payments on finance lease obligations | (8,980) | (10,228) | (15,157) | |||||||||||||||||||||||||||||
Additions to deferred financing costs | (23,583) | (28,471) | (8,171) | |||||||||||||||||||||||||||||
Contingent payment for acquisition | (500) | (30,000) | — | |||||||||||||||||||||||||||||
Contributions from (distributions to) noncontrolling interests, net | (1,000) | 5,995 | (335) | |||||||||||||||||||||||||||||
Net cash used in financing activities | (697,888) | (1,625,199) | (1,166,402) | |||||||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents
|
400,385 | (19,308) | (99,256) | |||||||||||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (1,166) | (26) | — | |||||||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 399,219 | (19,334) | (99,256) | |||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of year | 298,784 | 318,118 | 417,374 | |||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at end of year | $ | 698,003 | $ | 298,784 | $ | 318,118 |
December 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
Contract assets (a) | $ | 30,758 | $ | 26,405 | |||||||||||||
Deferred revenue (b) | 182,034 | 190,056 |
Years Ended December 31, | |||||||||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||||||||
Residential:
|
|||||||||||||||||||||||||||||
Broadband
|
$ | 3,222,605 | $ | 2,887,455 | $ | 2,608,595 | |||||||||||||||||||||||
Video
|
3,997,873 | 4,156,428 | 4,274,122 | ||||||||||||||||||||||||||
Telephony
|
598,694 | 652,895 | 700,765 | ||||||||||||||||||||||||||
Business services and wholesale
|
1,428,532 | 1,362,758 | 1,298,213 | ||||||||||||||||||||||||||
News and advertising | 475,904 | 487,264 | 396,187 | ||||||||||||||||||||||||||
Mobile | 21,264 | — | — | ||||||||||||||||||||||||||
Other | 15,987 | 19,808 | 29,068 | ||||||||||||||||||||||||||
Total revenue | $ | 9,760,859 | $ | 9,566,608 | $ | 9,306,950 |
Shares of Common Stock Outstanding | |||||||||||||||||
Class A
Common Stock |
Class B
Common Stock |
||||||||||||||||
Balance at June 21, 2017 and December 31, 2017 | 246,982,292 | 490,086,674 | |||||||||||||||
Altice Europe Distribution on June 8, 2018 (see Note 1) | 242,402,231 | (242,402,231) | |||||||||||||||
Conversion of Class B common stock to Class A common stock | 34,708,184 | (34,708,184) | |||||||||||||||
Retirement of Class A common shares in connection with the Company's stock
repurchase plan (see Note 1)
|
(28,028,680) | — | |||||||||||||||
Balance at December 31, 2018 | 496,064,027 | 212,976,259 | |||||||||||||||
Conversion of Class B common stock to Class A common stock | 26,730,427 | (26,730,427) | |||||||||||||||
Issuance of common shares | 6,897,190 | — | |||||||||||||||
Option exercises | 184,147 | — | |||||||||||||||
Retirement of Class A common shares in connection with the Company's stock
repurchase plan (see Note 1)
|
(72,668,712) | — | |||||||||||||||
Treasury shares (a) | (10,457,772) | — | |||||||||||||||
Balance at December 31, 2019 | 446,749,307 | 186,245,832 |
Altice USA | |||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2017 | |||||||||||||||||||||||||||||||||||||||||
As Reported | Impact of ASC 606 | Impact of ASU No. 2017-07 | Impact of ATS Acquisition | As Adjusted | |||||||||||||||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||||||||||||||
Broadband | $ | 2,563,772 | $ | 45,192 | $ | — | $ | (369) | $ | 2,608,595 | |||||||||||||||||||||||||||||||
Video | 4,214,745 | 59,878 | — | (501) | 4,274,122 | ||||||||||||||||||||||||||||||||||||
Telephony | 823,981 | (122,981) | — | (235) | 700,765 | ||||||||||||||||||||||||||||||||||||
Business services and wholesale | 1,298,817 | (604) | — | — | 1,298,213 | ||||||||||||||||||||||||||||||||||||
News and advertising (a) | 396,187 | — | — | — | 396,187 | ||||||||||||||||||||||||||||||||||||
Other (a) | 29,068 | — | — | — | 29,068 | ||||||||||||||||||||||||||||||||||||
Total revenue | 9,326,570 | (18,515) | — | (1,105) | 9,306,950 | ||||||||||||||||||||||||||||||||||||
Programming and other direct costs | 3,035,655 | — | — | — | 3,035,655 | ||||||||||||||||||||||||||||||||||||
Other operating expenses | 2,342,655 | (18,515) | (11,863) | 35,038 | 2,347,315 | ||||||||||||||||||||||||||||||||||||
Restructuring and other expense | 152,401 | — | — | — | 152,401 | ||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 2,930,475 | — | — | 96 | 2,930,571 | ||||||||||||||||||||||||||||||||||||
Operating income | 865,384 | — | 11,863 | (36,239) | 841,008 | ||||||||||||||||||||||||||||||||||||
Other expense, net | (2,196,733) | — | (11,863) | — | (2,208,596) | ||||||||||||||||||||||||||||||||||||
Loss before income taxes | (1,331,349) | — | — | (36,239) | (1,367,588) | ||||||||||||||||||||||||||||||||||||
Income tax benefit | 2,852,967 | — | — | 9,385 | 2,862,352 | ||||||||||||||||||||||||||||||||||||
Net income | $ | 1,521,618 | $ | — | $ | — | $ | (26,854) | $ | 1,494,764 |
CSC Holdings | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||
As Reported | Impact of CCHII Merger | Impact of ASC 606 | Impact of ASU No. 2017-07 | Impact of ATS Acquisition | As Adjusted | ||||||||||||||||||||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||||||||||||||||||||
Broadband | $ | 1,603,015 | $ | 960,757 | $ | 45,192 | $ | — | $ | (369) | $ | 2,608,595 | |||||||||||||||||||||||||||||||||||
Video | 3,113,238 | 1,101,507 | 59,878 | — | (501) | 4,274,122 | |||||||||||||||||||||||||||||||||||||||||
Telephony | 693,478 | 130,503 | (122,981) | — | (235) | 700,765 | |||||||||||||||||||||||||||||||||||||||||
Business services and wholesale | 923,161 | 375,656 | (604) | — | — | 1,298,213 | |||||||||||||||||||||||||||||||||||||||||
Advertising (a) | 325,470 | 70,717 | — | — | — | 396,187 | |||||||||||||||||||||||||||||||||||||||||
Other (a) | 6,426 | 22,642 | — | — | — | 29,068 | |||||||||||||||||||||||||||||||||||||||||
Total revenue | 6,664,788 | 2,661,782 | (18,515) | — | (1,105) | 9,306,950 | |||||||||||||||||||||||||||||||||||||||||
Programming and other direct costs | 2,280,062 | 755,593 | — | — | — | 3,035,655 | |||||||||||||||||||||||||||||||||||||||||
Other operating expenses | 1,675,665 | 666,990 | (18,515) | (11,863) | 35,038 | 2,347,315 | |||||||||||||||||||||||||||||||||||||||||
Restructuring and other expense | 112,384 | 39,899 | — | — | — | 152,283 | |||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 2,251,614 | 678,861 | — | — | 96 | 2,930,571 | |||||||||||||||||||||||||||||||||||||||||
Operating income | 345,063 | 520,439 | — | 11,863 | (36,239) | 841,126 | |||||||||||||||||||||||||||||||||||||||||
Other expense, net | (898,612) | (180,526) | — | (11,863) | — | (1,091,001) | |||||||||||||||||||||||||||||||||||||||||
Loss before income taxes | (553,549) | 339,913 | — | — | (36,239) | (249,875) | |||||||||||||||||||||||||||||||||||||||||
Income tax benefit | 2,233,716 | 584,062 | — | — | 9,973 | 2,827,751 | |||||||||||||||||||||||||||||||||||||||||
Net income | $ | 1,680,167 | $ | 923,975 | $ | — | $ | — | $ | (26,266) | $ | 2,577,876 |
Balance at Beginning of Period | Provision for Bad Debt | Deductions/ Write-Offs and Other Charges | Balance at End of Period | ||||||||||||||||||||
Year Ended December 31, 2019
|
|||||||||||||||||||||||
Allowance for doubtful accounts | $ | 13,520 | $ | 91,520 | $ | (90,357) | $ | 14,683 | |||||||||||||||
Year Ended December 31, 2018
|
|||||||||||||||||||||||
Allowance for doubtful accounts | $ | 13,420 | $ | 71,426 | $ | (71,326) | $ | 13,520 | |||||||||||||||
Year Ended December 31, 2017
|
|||||||||||||||||||||||
Allowance for doubtful accounts | $ | 11,677 | $ | 74,183 | $ | (72,440) | $ | 13,420 |
Years Ended December 31, | |||||||||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||||||||
Non-Cash Investing and Financing Activities:
|
|||||||||||||||||||||||||||||
Altice USA and CSC Holdings: | |||||||||||||||||||||||||||||
Conversion of notes payable to affiliates and related parties of $1,750,000 (together with accrued and unpaid interest and applicable premium) to common stock (See Note 11)
|
$ | — | $ | — | $ | 2,264,252 | |||||||||||||||||||||||
Property and equipment accrued but unpaid | 188,067 | 213,936 | 171,604 | ||||||||||||||||||||||||||
Leasehold improvements paid by landlord | — | 350 | 3,998 | ||||||||||||||||||||||||||
Notes payable issued to vendor for the purchase of equipment and other assets
|
35,124 | 95,394 | 40,131 | ||||||||||||||||||||||||||
Right-of-use assets acquired in exchange for finance lease obligations
|
54,532 | 13,548 | 9,385 | ||||||||||||||||||||||||||
Deferred financing costs accrued but unpaid
|
8 | 1,005 | — | ||||||||||||||||||||||||||
Contingent consideration for acquisitions
|
1,555 | 6,195 | 32,233 | ||||||||||||||||||||||||||
Altice USA: | |||||||||||||||||||||||||||||
Receivable related to the sale of an investment
|
— | 4,015 | — | ||||||||||||||||||||||||||
CSC Holdings: | |||||||||||||||||||||||||||||
Assumption of Cablevision debt, net of the acquisition of Cablevision assets
|
169,334 | — | — | ||||||||||||||||||||||||||
Contributions from parent | 19,697 | — | — | ||||||||||||||||||||||||||
Supplemental Data: | |||||||||||||||||||||||||||||
Altice USA: | |||||||||||||||||||||||||||||
Cash interest paid | 1,436,332 | 1,481,468 | 1,765,126 | ||||||||||||||||||||||||||
Income taxes paid, net | 10,263 | 13,667 | 29,006 | ||||||||||||||||||||||||||
CSC Holdings: | |||||||||||||||||||||||||||||
Cash interest paid | 1,350,756 | 1,163,942 | 1,174,003 | ||||||||||||||||||||||||||
Income taxes paid, net | 10,263 | 13,667 | 352,316 |
The following table summarizes the activity for the 2016 Restructuring Plan: | ||||||||||||||||||||||||||
Severance and Other Employee Related Costs | Facility Realignment and Other Costs | Total | ||||||||||||||||||||||||
Accrual balance at December 31, 2016 | $ | 102,119 | $ | 8,397 | $ | 110,516 | ||||||||||||||||||||
Restructuring charges | 142,679 | 7,243 | 149,922 | |||||||||||||||||||||||
Payments and other | (131,324) | (6,014) | (137,338) | |||||||||||||||||||||||
Accrual balance at December 31, 2017 | 113,474 | 9,626 | 123,100 | |||||||||||||||||||||||
Restructuring charges | 15,580 | 15,447 | 31,027 | |||||||||||||||||||||||
Payments and other | (107,600) | (11,458) | (119,058) | |||||||||||||||||||||||
Accrual balance at December 31, 2018 | 21,454 | 13,615 | 35,069 | |||||||||||||||||||||||
Restructuring charges | 6,606 | 6,317 | 12,923 | |||||||||||||||||||||||
Payments and other | (26,384) | (3,751) | (30,135) | |||||||||||||||||||||||
Impact of the adoption of ASC 842 (a) | — | (13,849) | (13,849) | |||||||||||||||||||||||
Accrual balance at December 31, 2019 | $ | 1,676 | $ | 2,332 | $ | 4,008 |
December 31, 2019 | December 31, 2018 |
Estimated
Useful Lives |
|||||||||||||||
Customer premise equipment | $ | 1,563,729 | $ | 1,354,510 | 3 to 5 years | ||||||||||||
Headends and related equipment | 2,023,684 | 1,852,105 | 5 to 25 years | ||||||||||||||
Infrastructure | 5,314,322 | 4,595,143 | 5 to 25 years | ||||||||||||||
Equipment and software | 1,111,577 | 1,083,166 | 3 to 10 years | ||||||||||||||
Construction in progress (including materials and supplies) | 192,571 | 215,684 | |||||||||||||||
Furniture and fixtures | 63,478 | 57,448 | 5 to 8 years | ||||||||||||||
Transportation equipment | 151,627 | 146,387 | 5 to 10 years | ||||||||||||||
Buildings and building improvements | 457,174 | 411,573 | 10 to 40 years | ||||||||||||||
Leasehold improvements | 103,734 | 109,110 | Term of lease | ||||||||||||||
Land | 48,426 | 48,426 | |||||||||||||||
11,030,322 | 9,873,552 | ||||||||||||||||
Less accumulated depreciation and amortization | (5,276,921) | (4,044,671) | |||||||||||||||
$ | 5,753,401 | $ | 5,828,881 |
Balance Sheet location | December 31, 2019 | January 1, 2019 | December 31, 2018 | ||||||||||||||||||||
Operating leases: | |||||||||||||||||||||||
Right-of-use lease assets | Right-of-use operating lease assets | $ | 280,340 | $ | 274,292 | $ | — | ||||||||||||||||
Right-of-use lease liability, current | Other current liabilities | 38,836 | 48,033 | — | |||||||||||||||||||
Right-of-use lease liability, long-term | Right-of-use operating lease liability | 269,062 | 251,867 | — | |||||||||||||||||||
Finance leases: | |||||||||||||||||||||||
Right-of-use lease assets | Property, plant and equipment | 70,339 | 30,891 | 30,891 | |||||||||||||||||||
Right-of-use lease liability, current | Current portion of long-term debt | 22,017 | 5,928 | 5,928 | |||||||||||||||||||
Right-of-use lease liability, long-term | Long-term debt | 47,403 | 19,262 | 19,262 |
Year Ended
December 31, 2019 |
||||||||
Operating lease expense, net | $ | 60,364 | ||||||
Finance lease expense: | ||||||||
Amortization of assets | 9,347 | |||||||
Interest on lease liabilities | 2,106 | |||||||
Total finance lease expense | 11,453 | |||||||
$ | 71,817 |
As of
December 31, 2019 |
|||||
Right-of-use assets acquired in exchange for operating lease obligations | $ | 61,244 | |||
Cash Paid For Amounts Included In Measurement of Liabilities: | |||||
Operating cash flows from finance leases | 2,106 | ||||
Operating cash flows from operating leases | 65,352 | ||||
Weighted Average Remaining Lease Term: | |||||
Operating leases | 9.4 years | ||||
Finance leases | 3.4 years | ||||
Weighted Average Discount Rate: | |||||
Operating leases | 5.96 | % | |||
Finance leases | 5.49 | % |
Finance leases | Operating leases | ||||||||||
2020 | $ | 25,500 | $ | 48,899 | |||||||
2021 | 22,516 | 47,894 | |||||||||
2022 | 18,271 | 48,509 | |||||||||
2023 | 5,788 | 38,500 | |||||||||
2024 | 3,343 | 34,055 | |||||||||
Thereafter | 283 | 193,018 | |||||||||
Total future minimum lease payments, undiscounted | 75,701 | 410,875 | |||||||||
Less: Imputed interest | (6,281) | (102,977) | |||||||||
Present value of future minimum lease payments | $ | 69,420 | $ | 307,898 |
Finance leases | Operating leases | ||||||||||
2020 | $ | 5,087 | $ | 50,356 | |||||||
2021 | 3,969 | 43,362 | |||||||||
2022 | 4,146 | 34,882 | |||||||||
2023 | 3,828 | 25,234 | |||||||||
Thereafter | 2,232 | 167,941 |
As of December 31, 2019 | As of December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Estimated Useful Lives | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer relationships
|
$ | 6,017,524 | $ | (2,843,561) | $ | 3,173,963 | $ | 5,970,884 | $ | (2,162,110) | $ | 3,808,774 | 8 to 18 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Trade names | 1,081,083 | (798,484) | 282,599 | 1,067,083 | (701,998) | 365,085 | 2 to 5 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other amortizable intangibles
|
53,181 | (28,634) | 24,547 | 37,644 | (18,679) | 18,965 | 1 to 15 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 7,151,788 | $ | (3,670,679) | $ | 3,481,109 | $ | 7,075,611 | $ | (2,882,787) | $ | 4,192,824 |
Estimated amortization expense | |||||
Year Ending December 31, 2020 | $ | 710,537 | |||
Year Ending December 31, 2021 | 629,095 | ||||
Year Ending December 31, 2022 | 542,371 | ||||
Year Ending December 31, 2023 | 378,643 | ||||
Year Ending December 31, 2024 | 300,387 |
Goodwill as of December 31, 2017 | $ | 8,019,861 | |||
Reclassification of goodwill to property, plant and equipment related to Cequel
|
(15,041) | ||||
Goodwill recorded in connection with an acquisition
|
7,608 | ||||
Adjustment to purchase accounting relating to business acquired
|
(12) | ||||
Goodwill as of December 31, 2018 | 8,012,416 | ||||
Goodwill recorded in connection with an acquisition of Cheddar Inc. ("Cheddar") | 130,039 | ||||
Adjustments to purchase accounting relating to business acquired
|
(146) | ||||
Goodwill as of December 31, 2019 | $ | 8,142,309 |
Interest Rate | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Date Issued | Maturity Date | Principal Amount | Carrying Amount (a) | Principal Amount | Carrying Amount (a) | ||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
February 12, 2009 | February 15, 2019 | 8.625 | % | $ | — | $ | — | $ | 526,000 | $ | 527,749 | ||||||||||||||||||||||||||||||||||||||||||
April 15, 2010 | April 15, 2020 | 8.000 | % | (g)(h) | — | — | 500,000 | 495,302 | |||||||||||||||||||||||||||||||||||||||||||||
November 15, 2011 | November 15, 2021 | 6.750 | % | 1,000,000 | 979,178 | 1,000,000 | 969,285 | ||||||||||||||||||||||||||||||||||||||||||||||
September 27, 2012 | September 15, 2022 | 5.875 | % | (h) | 649,024 | 600,849 | 649,024 | 585,817 | |||||||||||||||||||||||||||||||||||||||||||||
May 23, 2014 | June 1, 2024 | 5.250 | % | 750,000 | 683,940 | 750,000 | 671,829 | ||||||||||||||||||||||||||||||||||||||||||||||
October 18, 2018 | July 15, 2025 | 7.750 | % | (h) | 1,740 | 1,695 | 1,740 | 1,690 | |||||||||||||||||||||||||||||||||||||||||||||
October 9, 2015 | January 15, 2023 | 10.125 | % | — | — | 1,800,000 | 1,781,424 | ||||||||||||||||||||||||||||||||||||||||||||||
October 9, 2015 | October 15, 2025 | 10.875 | % | 1,684,221 | 1,665,237 | 1,684,221 | 1,663,027 | ||||||||||||||||||||||||||||||||||||||||||||||
October 18, 2018 | April 1, 2028 | 7.500 | % | (h) | 4,118 | 4,112 | 4,118 | 4,110 | |||||||||||||||||||||||||||||||||||||||||||||
October 18, 2018 | December 15, 2021 | 5.125 | % | (d)(h) | — | — | 8,886 | 8,274 | |||||||||||||||||||||||||||||||||||||||||||||
November 27, 2018 | December 15, 2021 | 5.125 | % | (f) | — | — | 1,240,762 | 1,155,264 | |||||||||||||||||||||||||||||||||||||||||||||
November 27, 2018 | July 15, 2025 | 7.750 | % | 617,881 | 605,583 | 617,881 | 603,889 | ||||||||||||||||||||||||||||||||||||||||||||||
November 27, 2018 | April 1, 2028 | 7.500 | % | 1,045,882 | 1,044,278 | 1,045,882 | 1,044,143 | ||||||||||||||||||||||||||||||||||||||||||||||
July 10 and October 7, 2019 | January 15, 2030 | 5.750 | % | 2,250,000 | 2,289,168 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Senior Guaranteed Notes: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
October 9, 2015 | October 15, 2025 | 6.625 | % | 1,000,000 | 989,483 | 1,000,000 | 988,052 | ||||||||||||||||||||||||||||||||||||||||||||||
September 23, 2016 | April 15, 2027 | 5.500 | % | 1,310,000 | 1,305,430 | 1,310,000 | 1,304,936 | ||||||||||||||||||||||||||||||||||||||||||||||
January 29, 2018 | February 1, 2028 | 5.375 | % | 1,000,000 | 992,757 | 1,000,000 | 992,064 | ||||||||||||||||||||||||||||||||||||||||||||||
November 27, 2018 | July 15, 2023 | 5.375 | % | 1,095,825 | 1,081,879 | 1,095,825 | 1,078,428 | ||||||||||||||||||||||||||||||||||||||||||||||
November 27, 2018 | May 15, 2026 | 5.500 | % | 1,498,806 | 1,485,911 | 1,498,806 | 1,484,278 | ||||||||||||||||||||||||||||||||||||||||||||||
January 24, 2019 | February 1, 2029 | 6.500 | % | 1,750,000 | 1,746,996 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
15,657,497 | 15,476,496 | 15,733,145 | 15,359,561 | ||||||||||||||||||||||||||||||||||||||||||||||||||
CSC Holdings Restricted Group: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Revolving Credit Facility | (c) | (c) | (b) | — | — | 250,000 | 231,425 | ||||||||||||||||||||||||||||||||||||||||||||||
Term Loan B | July 17, 2025 | 3.99% | 2,925,000 | 2,911,729 | 2,955,000 | 2,939,425 | |||||||||||||||||||||||||||||||||||||||||||||||
Incremental Term Loan B-2 | January 25, 2026 | —% | (g) | — | — | 1,492,500 | 1,475,778 | ||||||||||||||||||||||||||||||||||||||||||||||
Incremental Term Loan B-3 | January 15, 2026 | 3.99% | 1,265,438 | 1,260,200 | 1,275,000 | 1,268,931 | |||||||||||||||||||||||||||||||||||||||||||||||
Incremental Term Loan B-5 | April 15, 2027 | 4.24% | 3,000,000 | 2,976,358 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
7,190,438 | 7,148,287 | 5,972,500 | 5,915,559 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Collateralized indebtedness (see Note 12) | 1,759,017 | 1,585,088 | 1,459,638 | 1,406,182 | |||||||||||||||||||||||||||||||||||||||||||||||||
Finance lease obligations (see Note 9) | 69,420 | 69,420 | 25,190 | 25,190 | |||||||||||||||||||||||||||||||||||||||||||||||||
Notes payable and supply chain financing (e) | 140,994 | 140,994 | 106,108 | 106,108 | |||||||||||||||||||||||||||||||||||||||||||||||||
24,817,366 | 24,420,285 | 23,296,581 | 22,812,600 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Less: current portion of credit facility debt | (65,250) | (65,250) | (54,563) | (54,563) | |||||||||||||||||||||||||||||||||||||||||||||||||
Less: current portion of finance lease obligations | (22,017) | (22,017) | (5,928) | (5,928) | |||||||||||||||||||||||||||||||||||||||||||||||||
Less: current portion of notes payable and supply chain financing | (83,415) | (83,415) | (98,134) | (98,134) | |||||||||||||||||||||||||||||||||||||||||||||||||
(170,682) | (170,682) | (158,625) | (158,625) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | $ | 24,646,684 | $ | 24,249,603 | $ | 23,137,956 | $ | 22,653,975 | |||||||||||||||||||||||||||||||||||||||||||||
__________________________________ |
Original Cequel Notes | Remaining Original Cequel Notes | Notes Redeemed in Cash | Principal of New CSC Holdings Notes at December 31, 2018 | ||||||||||||||||||||
5.375% Senior Secured Notes due 2023
|
$ | 1,100,000 | $ | — | $ | 4,157 | $ | 1,095,825 | |||||||||||||||
5.5% Senior Secured Notes due 2026
|
1,500,000 | — | 1,049 | 1,498,806 | |||||||||||||||||||
5.125% Senior Notes due 2021
|
1,250,000 | 8,886 | — | 1,240,762 | |||||||||||||||||||
7.75% Senior Notes due 2025
|
620,000 | 1,740 | — | 617,881 | |||||||||||||||||||
7.5% Senior Notes due 2028
|
1,050,000 | 4,118 | — | 1,045,882 | |||||||||||||||||||
$ | 5,520,000 | $ | 14,744 | $ | 5,206 | $ | 5,499,156 |
For the Year Ended December 31, 2019: | |||||||||||
CSC Holdings 5.125% Senior Notes due 2021 | $ | 65,151 | |||||||||
CSC Holdings 10.125% Senior Notes due 2023 | 154,666 | ||||||||||
Refinancing and subsequent amendment to CSC Holdings credit facility | 8,313 | ||||||||||
Subtotal - CSC Holdings | 228,130 | ||||||||||
Cablevision 5.125% Senior Notes due 2021 | 500 | ||||||||||
Cablevision 8.000% Senior Notes due 2020 | 15,176 | ||||||||||
$ | 243,806 |
For the Year Ended December 31, 2018: | |||||||||||
Cequel Credit Facility | $ | 7,733 | |||||||||
Cequel senior and senior secured notes pursuant to the Exchange Offer discussed above | 150 | ||||||||||
Subtotal - CSC Holdings | 7,883 | ||||||||||
Cequel 6.375% Senior Notes due 2020 | 36,910 | ||||||||||
Cequel senior and senior secured notes pursuant to the Exchange Offer discussed above | (695) | ||||||||||
Cablevision 7.75% Senior Notes due 2018 | 4,706 | ||||||||||
$ | 48,804 |
For the Year Ended December 31, 2017: | |||||||||||
CSC Holdings Term Loan B | $ | 12,675 | |||||||||
CSC Holdings 10.875% Senior Notes due 2025 | 38,858 | ||||||||||
Cequel Term Loan Facility | 2,455 | ||||||||||
Subtotal - CSC Holdings | 53,988 | ||||||||||
Cablevision 8.625% Senior Notes due 2017 | 6,300 | ||||||||||
Cequel 6.375% Senior Notes due 2020 | 26,229 | ||||||||||
Altice USA notes payable to affiliates and related parties | 513,723 | ||||||||||
$ | 600,240 |
Years Ending December 31, | ||||||||||||||||||||
2020 | $ | 148,665 | ||||||||||||||||||
2021 | 1,078,499 | |||||||||||||||||||
2022 | 728,785 | |||||||||||||||||||
2023 | 2,928,347 | |||||||||||||||||||
2024 | 822,888 | |||||||||||||||||||
Thereafter | 18,996,836 |
Trade Date | Maturity Date | Notional Amount | Company Pays | Company Receives | ||||||||||||||||||||||
May 2016 | May 2026 | $ | 750,000 | Six- month LIBOR | Fixed rate of 1.665% | |||||||||||||||||||||
June 2016 | May 2026 | 750,000 | Six- month LIBOR | Fixed rate of 1.68% | ||||||||||||||||||||||
December 2018 | January 2022 | 500,000 | Fixed rate of 2.7177% | Three-month LIBOR | ||||||||||||||||||||||
December 2018 | January 2022 | 500,000 | Fixed rate of 2.733% | Three-month LIBOR | ||||||||||||||||||||||
December 2018 | January 2022 | 500,000 | Fixed rate of 2.722% | Three-month LIBOR | ||||||||||||||||||||||
December 2018 | December 2026 | 750,000 | Fixed rate of 2.9155% | Three-month LIBOR | ||||||||||||||||||||||
December 2018 | December 2026 | 750,000 | Fixed rate of 2.9025% | Three-month LIBOR | ||||||||||||||||||||||
April 2019 | April 2020 | 1,255,513 | Three- month LIBOR minus 0.1075% | One- month LIBOR |
Derivatives Not Designated as Hedging Instruments | Balance Sheet Location | Fair Value at December 31, | ||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||
Asset Derivatives:
|
||||||||||||||||||||||||||
Interest rate swap contracts
|
Derivative contracts, current | $ | — | $ | 1,975 | |||||||||||||||||||||
Prepaid forward contracts
|
Derivative contracts, long-term | 25,207 | 109,344 | |||||||||||||||||||||||
25,207 | 111,319 | |||||||||||||||||||||||||
Liability Derivatives:
|
||||||||||||||||||||||||||
Prepaid forward contracts
|
Other current liabilities | — | — | |||||||||||||||||||||||
Interest rate swap contracts
|
Other current liabilities | (469) | (70) | |||||||||||||||||||||||
Prepaid forward contracts
|
Liabilities under derivative contracts, long-term | (94,795) | — | |||||||||||||||||||||||
Interest rate swap contracts
|
Liabilities under derivative contracts, long-term | (160,871) | (132,908) | |||||||||||||||||||||||
$ | (256,135) | $ | (132,978) |
Years Ended December 31, | |||||||||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||||||||
Gain (loss) on derivative contracts related to change in the value of
equity derivative contracts related to Comcast common stock
|
$ | (282,713) | $ | 218,848 | $ | (138,920) | |||||||||||||||||||||||
Gain (loss) on derivative contracts related to put/call options - Altice
USA
|
— | — | (97,410) | ||||||||||||||||||||||||||
Change in fair value of Comcast common stock included in gain
(loss) on investments
|
469,071 | (261,993) | 237,328 | ||||||||||||||||||||||||||
Gain (loss) on interest rate swap contracts | (53,902) | (61,697) | 5,482 |
Years Ended December 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
Number of shares | — | 16,139,868 | |||||||||||||||
Collateralized indebtedness settled | $ | — | $ | (516,537) | |||||||||||||
Derivatives contracts settled | — | 24 | |||||||||||||||
— | (516,513) | ||||||||||||||||
Proceeds from monetization contracts | 93,000 | 516,513 | |||||||||||||||
Net cash proceeds | $ | 93,000 | $ | — |
Fair Value
Hierarchy |
December 31, 2019 | December 31, 2018 | |||||||||||||||
Assets: | |||||||||||||||||
Money market funds
|
Level I | $ | 563,704 | $ | 91,852 | ||||||||||||
Investment securities pledged as collateral | Level I | 1,931,697 | 1,462,626 | ||||||||||||||
Prepaid forward contracts | Level II | 25,207 | 109,344 | ||||||||||||||
Interest rate swap contracts | Level II | — | 1,975 | ||||||||||||||
Liabilities: | |||||||||||||||||
Prepaid forward contracts | Level II | 94,795 | — | ||||||||||||||
Interest rate swap contracts | Level II | 161,340 | 132,978 | ||||||||||||||
Contingent consideration related to 2017 and 2018 acquisitions | Level III | 7,250 | 6,195 |
December 31, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||
Fair Value
Hierarchy |
Carrying
Amount (a) |
Estimated
Fair Value |
Carrying
Amount (a) |
Estimated
Fair Value |
|||||||||||||||||||||||||||||||||||||
CSC Holdings debt instruments: | |||||||||||||||||||||||||||||||||||||||||
Credit facility debt
|
Level II | $ | 7,148,287 | $ | 7,190,438 | $ | 5,915,559 | $ | 5,972,500 | ||||||||||||||||||||||||||||||||
Collateralized indebtedness
|
Level II | 1,585,088 | 1,611,095 | 1,406,182 | 1,374,203 | ||||||||||||||||||||||||||||||||||||
Senior guaranteed notes
|
Level II | 7,602,456 | 8,220,518 | 5,847,758 | 5,646,468 | ||||||||||||||||||||||||||||||||||||
Senior notes
|
Level II | 7,874,040 | 8,728,870 | 8,416,610 | 8,972,722 | ||||||||||||||||||||||||||||||||||||
Notes payable and supply chain financing
|
Level II | 140,994 | 141,713 | 106,108 | 105,836 | ||||||||||||||||||||||||||||||||||||
Cablevision debt instruments: | |||||||||||||||||||||||||||||||||||||||||
Senior notes
|
Level II | — | — | 1,095,193 | 1,163,843 | ||||||||||||||||||||||||||||||||||||
$ | 24,350,865 | $ | 25,892,634 | $ | 22,787,410 | $ | 23,235,572 |
Altice USA | CSC Holdings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2019 | 2018 | 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current expense (benefit): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal | $ | — | $ | (1,865) | $ | 5,261 | $ | 240,229 | $ | 186,035 | $ | 151,120 | |||||||||||||||||||||||||||||||||||||||||||||||
State | 33,103 | 32,347 | 12,530 | 70,567 | 124,106 | 47,900 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
33,103 | 30,482 | 17,791 | 310,796 | 310,141 | 199,020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred expense (benefit): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal | 43,105 | 26,141 | (2,095,930) | (176,591) | (102,872) | (2,154,344) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
State | (28,174) | (93,744) | (784,224) | (62,118) | (148,721) | (872,438) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
14,931 | (67,603) | (2,880,154) | (238,709) | (251,593) | (3,026,782) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax expense (benefit) relating to uncertain tax positions
|
(844) | (1,534) | 11 | (844) | (985) | 11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | $ | 47,190 | $ | (38,655) | $ | (2,862,352) | $ | 71,243 | $ | 57,563 | $ | (2,827,751) |
Altice USA | CSC Holdings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2019 | 2018 | 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal tax expense (benefit) at statutory rate
|
$ | 39,297 | $ | (3,793) | $ | (478,656) | $ | 59,653 | $ | 66,757 | $ | (83,507) | |||||||||||||||||||||||||||||||||||||||||||||||
State income taxes, net of federal impact | (6,256) | (8,103) | (61,698) | (9,060) | 33,249 | (23,720) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the valuation allowance | 4,079 | 15,987 | (111) | 4,307 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of Federal Tax Reform | — | — | (2,332,677) | — | — | (2,731,324) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the state rates used to measure deferred taxes, net of federal impact
|
(1,046) | (52,915) | (12,896) | 6,532 | (53,493) | (12,999) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax benefit relating to uncertain tax positions
|
(847) | (514) | (253) | (847) | (514) | (253) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-deductible share-based compensation related to the carried unit plan
|
15,642 | 8,677 | 20,101 | 15,642 | 8,677 | 20,101 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other non-deductible expenses
|
1,334 | 2,200 | 3,405 | 1,334 | 2,011 | 3,383 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, net | (5,013) | (194) | 433 | (6,318) | 876 | 568 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit)
|
$ | 47,190 | $ | (38,655) | $ | (2,862,352) | $ | 71,243 | $ | 57,563 | $ | (2,827,751) |
Altice USA | CSC Holdings | ||||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||
Noncurrent | |||||||||||||||||||||||||||||||||||||||||
NOLs and tax credit carry forwards | $ | 309,924 | $ | 571,413 | $ | 74,300 | $ | 16,465 | |||||||||||||||||||||||||||||||||
Compensation and benefit plans | 25,227 | 42,484 | 25,227 | 45,138 | |||||||||||||||||||||||||||||||||||||
Partnership investments | 49,956 | 60,413 | 49,956 | 60,413 | |||||||||||||||||||||||||||||||||||||
Restructuring liability | 11,280 | 9,364 | 11,280 | 9,364 | |||||||||||||||||||||||||||||||||||||
Other liabilities | 42,339 | 38,473 | 42,339 | 36,833 | |||||||||||||||||||||||||||||||||||||
Liabilities under derivative contracts | 43,175 | 20,846 | 43,175 | 20,847 | |||||||||||||||||||||||||||||||||||||
Interest deferred for tax purposes | 333,856 | 166,668 | 333,856 | 34,843 | |||||||||||||||||||||||||||||||||||||
Operating lease Liability | 82,393 | — | 82,393 | — | |||||||||||||||||||||||||||||||||||||
Other | 12,428 | 11,531 | 12,428 | 9,867 | |||||||||||||||||||||||||||||||||||||
Deferred tax asset | 910,578 | 921,192 | 674,954 | 233,770 | |||||||||||||||||||||||||||||||||||||
Valuation allowance | (29,479) | (25,400) | (11,859) | (8,225) | |||||||||||||||||||||||||||||||||||||
Net deferred tax asset, noncurrent | 881,099 | 895,792 | 663,095 | 225,545 | |||||||||||||||||||||||||||||||||||||
Fixed assets and intangibles | (5,384,320) | (5,496,103) | (5,384,320) | (5,473,397) | |||||||||||||||||||||||||||||||||||||
Operating lease Asset | (75,019) | — | (75,019) | — | |||||||||||||||||||||||||||||||||||||
Investments | (116,702) | (71,167) | (116,702) | (71,168) | |||||||||||||||||||||||||||||||||||||
Prepaid expenses | (10,978) | (7,543) | (10,978) | (7,543) | |||||||||||||||||||||||||||||||||||||
Fair value adjustments related to debt and deferred financing costs
|
(56,675) | (40,083) | (56,675) | (18,111) | |||||||||||||||||||||||||||||||||||||
Other | — | (4,833) | — | (5,273) | |||||||||||||||||||||||||||||||||||||
Deferred tax liability, noncurrent | (5,643,694) | (5,619,729) | (5,643,694) | (5,575,492) | |||||||||||||||||||||||||||||||||||||
Total net deferred tax liability | $ | (4,762,595) | $ | (4,723,937) | $ | (4,980,599) | $ | (5,349,947) |
Number of Time
Vesting Awards |
Number of Performance
Based Vesting Awards |
Weighted Average Grant Date Fair Value | |||||||||||||||
Balance, December 31, 2016 | 192,800,000 | 10,000,000 | $ | 0.37 | |||||||||||||
Granted | 28,025,000 | — | 3.14 | ||||||||||||||
Vested | (44,420,833) | — | 0.41 | ||||||||||||||
Forfeited | (7,854,166) | — | 0.37 | ||||||||||||||
Balance, December 31, 2017 | 168,550,001 | 10,000,000 | 0.71 | ||||||||||||||
Vested | (68,037,500) | — | 0.37 | ||||||||||||||
Forfeited | (16,937,501) | — | 0.62 | ||||||||||||||
Balance, December 31, 2018 | 83,575,000 | 10,000,000 | 1.14 | ||||||||||||||
Vested | (42,618,750) | — | 0.83 | ||||||||||||||
Converted to restricted shares | — | (10,000,000) | 0.37 | ||||||||||||||
Forfeited | (3,437,500) | — | 0.84 | ||||||||||||||
Balance, December 31, 2019 | 37,518,750 | — | 2.35 |
Shares Under Option |
Weighted Average
Exercise Price Per Share |
Weighted Average Remaining
Contractual Term (in years) |
|||||||||||||||||||||||||||||||||
Time
Vesting |
Performance
Based Vesting |
Aggregate Intrinsic
Value (a) |
|||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | 5,110,747 | — | $ | 17.45 | 9.97 | $ | 8,331 | ||||||||||||||||||||||||||||
Granted | 6,753,659 | 95,953 | 17.58 | ||||||||||||||||||||||||||||||||
Forfeited | (634,238) | (22,314) | 17.92 | ||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 11,230,168 | 73,639 | 17.50 | 9.47 | $ | — | |||||||||||||||||||||||||||||
Granted | 3,677,076 | — | 23.88 | ||||||||||||||||||||||||||||||||
Exercised | (184,147) | — | 17.43 | ||||||||||||||||||||||||||||||||
Forfeited | (639,356) | (73,639) | 18.42 | ||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 14,083,741 | — | 19.12 | 8.74 | 112,915 | ||||||||||||||||||||||||||||||
Options exercisable at December 31, 2019
|
878,225 | — | 17.65 | 8.08 | 8,512 |
Year Ended December 31, | |||||||||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||||||||
Risk-free interest rate | 2.05% | 2.74% | 2.30% | ||||||||||||||||||||||||||
Expected life (in years) | 6.47 | 6.49 | 6.44 | ||||||||||||||||||||||||||
Dividend yield | —% | —% | —% | ||||||||||||||||||||||||||
Volatility | 28.22% | 35.72% | 33.95% | ||||||||||||||||||||||||||
Grant date fair value | $7.93 | $6.91 | $8.77 |
Years Ended December 31, | |||||||||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||||||||
Revenue | $ | 3,974 | $ | 2,575 | $ | 1,100 | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Programming and other direct costs | $ | (11,580) | $ | (7,261) | $ | (4,176) | |||||||||||||||||||||||
Other operating expenses, net | (8,355) | (16,307) | (33,140) | ||||||||||||||||||||||||||
Operating expenses, net | (19,935) | (23,568) | (37,316) | ||||||||||||||||||||||||||
Interest expense | — | (600) | — | ||||||||||||||||||||||||||
Interest income | — | 2,429 | 6,496 | ||||||||||||||||||||||||||
Net charges - CSC Holdings | (15,961) | (19,164) | (29,720) | ||||||||||||||||||||||||||
Interest expense | — | (2,429) | (96,901) | ||||||||||||||||||||||||||
Other income, net | — | 149 | — | ||||||||||||||||||||||||||
Loss on extinguishment of debt and write-off of deferred financing costs (see Note 11)
|
— | — | (513,723) | ||||||||||||||||||||||||||
Net charges - Altice USA | $ | (15,961) | $ | (21,444) | $ | (640,344) | |||||||||||||||||||||||
Capital Expenditures | $ | 12,167 | $ | 14,951 | $ | 22,012 |
Altice USA | CSC Holdings | ||||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||||||
Due from: | |||||||||||||||||||||||||||||||||||
Altice Europe (a) | $ | 4,076 | $ | 16,995 | $ | 4,076 | $ | 3,821 | |||||||||||||||||||||||||||
Other affiliates and related parties (a) | 2,698 | 562 | 2,698 | 564 | |||||||||||||||||||||||||||||||
$ | 6,774 | $ | 17,557 | $ | 6,774 | $ | 4,385 | ||||||||||||||||||||||||||||
Due to: | |||||||||||||||||||||||||||||||||||
Altice Europe (a) | $ | — | $ | 26,074 | $ | — | $ | 12,419 | |||||||||||||||||||||||||||
Other affiliates and related parties (a) | 7,456 | 22 | 7,456 | 22 | |||||||||||||||||||||||||||||||
Altice USA (b) | — | — | — | 26,578 | |||||||||||||||||||||||||||||||
Cablevision (c) | — | — | — | 140,398 | |||||||||||||||||||||||||||||||
$ | 7,456 | $ | 26,096 | $ | 7,456 | $ | 179,417 |
Payments Due by Period | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Year 1 | Years 2-3 | Years 4-5 |
More than
5 years |
|||||||||||||||||||||||||||||||||||||||||||||||||
Off balance sheet arrangements: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase obligations (a) | $ | 8,238,465 | $ | 3,547,239 | $ | 3,685,145 | $ | 837,711 | $ | 168,370 | |||||||||||||||||||||||||||||||||||||||||||
Guarantees (b) | 37,930 | 37,870 | 60 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Letters of credit (c) | 178,014 | 1,620 | 7,360 | 169,034 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 8,454,409 | $ | 3,586,729 | $ | 3,692,565 | $ | 1,006,745 | $ | 168,370 |
December 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
Change in projected benefit obligation: | |||||||||||||||||
Projected benefit obligation at beginning of year | $ | 264,515 | $ | 299,066 | |||||||||||||
Interest cost | 9,227 | 9,248 | |||||||||||||||
Actuarial gain | (743) | (9,894) | |||||||||||||||
Settlements/curtailments | 1,875 | 2,373 | |||||||||||||||
Benefits paid | (27,112) | (36,278) | |||||||||||||||
Projected benefit obligation at end of year | 247,762 | 264,515 | |||||||||||||||
Change in plan assets: | |||||||||||||||||
Fair value of plan assets at beginning of year | 167,510 | 195,768 | |||||||||||||||
Actual gain (loss) on plan assets, net | 15,892 | (5,705) | |||||||||||||||
Employer contributions | 34,107 | 13,725 | |||||||||||||||
Benefits paid | (27,112) | (36,278) | |||||||||||||||
Fair value of plan assets at end of year | 190,397 | 167,510 | |||||||||||||||
Unfunded status at end of year | $ | (57,365) | $ | (97,005) |
December 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
Defined Benefit Plans | $ | (57,365) | $ | (97,005) | |||||||||||||
Less: Current portion related to nonqualified plans | 175 | 211 | |||||||||||||||
Long-term defined benefit plan obligations | $ | (57,190) | $ | (96,794) |
Years Ended December 31, | |||||||||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||||||||
Interest cost | $ | 9,227 | $ | 9,248 | $ | 11,786 | |||||||||||||||||||||||
Expected return on plan assets, net | (2,685) | (987) | (4,905) | ||||||||||||||||||||||||||
Curtailment loss | — | — | 3,137 | ||||||||||||||||||||||||||
Amortization of actuarial loss (reclassified from accumulated other comprehensive loss) | 89 | — | — | ||||||||||||||||||||||||||
Settlement loss (reclassified from accumulated other comprehensive loss) (a)
|
1,643 | 1,268 | 1,845 | ||||||||||||||||||||||||||
Non-operating pension costs | $ | 8,274 | $ | 9,529 | $ | 11,863 |
Benefit Costs | Benefit Obligations at December 31, | ||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||
Discount rate (a) | 3.70 | % | 3.87 | % | 3.69 | % | 3.10 | % | 4.20 | % | |||||||||||||||||||||||||||||||||||||
Rate of increase in future compensation levels
|
— | % | — | % | — | % | — | % | — | % | |||||||||||||||||||||||||||||||||||||
Expected rate of return on plan assets (Pension Plan only)
|
3.97 | % | 3.67 | % | 3.90 | % | N/A | N/A |
Plan Assets at December 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
Asset Class: | |||||||||||||||||
Mutual funds- fixed income | 28 | % | 29 | % | |||||||||||||
Common collective trust- equities | 27 | — | |||||||||||||||
Fixed income securities | 44 | 65 | |||||||||||||||
Cash equivalents and other | 1 | 6 | |||||||||||||||
100 | % | 100 | % |
Asset Class | Level I | Level II | Level III | Total | |||||||||||||||||||
Mutual funds- fixed income | $ | 52,976 | $ | — | $ | — | $ | 52,976 | |||||||||||||||
Common collective trust- equities | — | 52,214 | — | 52,214 | |||||||||||||||||||
Fixed income securities held in a portfolio: | |||||||||||||||||||||||
Foreign issued corporate debt | — | 7,472 | — | 7,472 | |||||||||||||||||||
U.S. corporate debt | — | 30,267 | — | 30,267 | |||||||||||||||||||
Government debt | — | 2,836 | — | 2,836 | |||||||||||||||||||
U.S. Treasury securities | — | 32,902 | — | 32,902 | |||||||||||||||||||
Asset-backed securities | — | 9,375 | — | 9,375 | |||||||||||||||||||
Other | — | 840 | — | 840 | |||||||||||||||||||
Cash equivalents (a) | 2,188 | 3,278 | — | 5,466 | |||||||||||||||||||
Total (b)
|
$ | 55,164 | $ | 139,184 | $ | — | $ | 194,348 |
Asset Class | Level I | Level II | Level III | Total | |||||||||||||||||||
Mutual funds- fixed income | $ | 49,140 | $ | — | $ | — | $ | 49,140 | |||||||||||||||
Fixed income securities held in a portfolio: | |||||||||||||||||||||||
Foreign issued corporate debt | — | 14,002 | — | 14,002 | |||||||||||||||||||
U.S. corporate debt | — | 43,190 | — | 43,190 | |||||||||||||||||||
Government debt | — | 3,988 | — | 3,988 | |||||||||||||||||||
U.S. Treasury securities | — | 38,657 | — | 38,657 | |||||||||||||||||||
Asset-backed securities | — | 8,907 | — | 8,907 | |||||||||||||||||||
Other | — | 205 | — | 205 | |||||||||||||||||||
Cash equivalents (a) | 4,343 | 3,187 | — | 7,530 | |||||||||||||||||||
Total (b)
|
$ | 53,483 | $ | 112,136 | $ | — | $ | 165,619 |
2020 | $ | 16,500 | |||
2021 | 16,023 | ||||
2022 | 16,349 | ||||
2023 | 18,209 | ||||
2024 | 17,706 | ||||
2025-2029 | 83,159 |
Altice USA | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31,
2019 |
June 30,
2019 |
September 30,
2019 |
December 31,
2019 |
Total
2019 |
|||||||||||||||||||||||||||||||||||||||||||||||||
Residential:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
Broadband
|
$ | 775,573 | $ | 806,250 | $ | 814,328 | $ | 826,454 | $ | 3,222,605 | |||||||||||||||||||||||||||||||||||||||||||
Video
|
1,017,330 | 1,018,426 | 993,158 | 968,959 | 3,997,873 | ||||||||||||||||||||||||||||||||||||||||||||||||
Telephony
|
154,464 | 150,232 | 148,231 | 145,767 | 598,694 | ||||||||||||||||||||||||||||||||||||||||||||||||
Business services and wholesale
|
350,689 | 357,806 | 357,628 | 362,409 | 1,428,532 | ||||||||||||||||||||||||||||||||||||||||||||||||
News and advertising | 94,738 | 114,450 | 118,067 | 148,649 | 475,904 | ||||||||||||||||||||||||||||||||||||||||||||||||
Mobile
|
— | — | 3,174 | 18,090 | 21,264 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other | 3,773 | 3,917 | 4,076 | 4,221 | 15,987 | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | 2,396,567 | 2,451,081 | 2,438,662 | 2,474,549 | 9,760,859 | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses | (1,954,089) | (1,968,538) | (1,967,147) | (2,047,274) | (7,937,048) | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating income | $ | 442,478 | $ | 482,543 | $ | 471,515 | $ | 427,275 | $ | 1,823,811 | |||||||||||||||||||||||||||||||||||||||||||
Net income (loss)
|
$ | (25,198) | $ | 86,410 | $ | 77,396 | $ | 1,331 | $ | 139,939 | |||||||||||||||||||||||||||||||||||||||||||
Net loss (income) attributable to noncontrolling interests
|
199 | (43) | (157) | (1,002) | (1,003) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Altice USA Inc.'s stockholders
|
$ | (24,999) | $ | 86,367 | $ | 77,239 | $ | 329 | $ | 138,936 | |||||||||||||||||||||||||||||||||||||||||||
Basic and diluted net income (loss) per share attributable to Altice USA Inc.'s stockholders
|
$ | (0.04) | $ | 0.13 | $ | 0.12 | $ | — | $ | 0.21 |
Altice USA | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31,
2018 |
June 30,
2018 |
September 30,
2018 |
December 31,
2018 (a) |
Total
2018 |
|||||||||||||||||||||||||||||||||||||||||||||||||
Residential:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
Broadband | $ | 701,621 | $ | 712,202 | $ | 729,907 | $ | 743,725 | $ | 2,887,455 | |||||||||||||||||||||||||||||||||||||||||||
Video | 1,033,708 | 1,034,404 | 1,054,667 | 1,033,649 | 4,156,428 | ||||||||||||||||||||||||||||||||||||||||||||||||
Telephony | 166,038 | 163,499 | 161,351 | 162,007 | 652,895 | ||||||||||||||||||||||||||||||||||||||||||||||||
Business services and wholesale
|
333,090 | 337,388 | 344,193 | 348,087 | 1,362,758 | ||||||||||||||||||||||||||||||||||||||||||||||||
News and advertising | 88,737 | 111,342 | 123,913 | 163,272 | 487,264 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other | 6,520 | 5,318 | 3,770 | 4,200 | 19,808 | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | 2,329,714 | 2,364,153 | 2,417,801 | 2,454,940 | 9,566,608 | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses | (2,016,676) | (2,029,094) | (1,912,243) | (1,926,216) | (7,884,229) | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating income | $ | 313,038 | $ | 335,059 | $ | 505,558 | $ | 528,724 | $ | 1,682,379 | |||||||||||||||||||||||||||||||||||||||||||
Net income (loss)
|
$ | (128,949) | $ | (98,004) | $ | 33,739 | $ | 213,808 | $ | 20,594 | |||||||||||||||||||||||||||||||||||||||||||
Net loss (income) attributable to noncontrolling interests
|
(2) | 149 | (1,186) | (722) | (1,761) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Altice USA, Inc. stockholders
|
$ | (128,951) | $ | (97,855) | $ | 32,553 | $ | 213,086 | $ | 18,833 | |||||||||||||||||||||||||||||||||||||||||||
Basic and diluted net income (loss) per share attributable to Altice USA Inc.'s stockholders
|
$ | (0.17) | $ | (0.13) | $ | 0.04 | $ | 0.30 | $ | 0.03 |
CSC Holdings | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31,
2019 |
June 30,
2019 |
September 30,
2019 |
December 31,
2019 |
Total
2019 |
|||||||||||||||||||||||||||||||||||||||||||||||||
Residential:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
Broadband | $ | 775,573 | $ | 806,250 | $ | 814,328 | $ | 826,454 | $ | 3,222,605 | |||||||||||||||||||||||||||||||||||||||||||
Video | 1,017,330 | 1,018,426 | 993,158 | 968,959 | 3,997,873 | ||||||||||||||||||||||||||||||||||||||||||||||||
Telephony | 154,464 | 150,232 | 148,231 | 145,767 | 598,694 | ||||||||||||||||||||||||||||||||||||||||||||||||
Business services and wholesale
|
350,689 | 357,806 | 357,628 | 362,409 | 1,428,532 | ||||||||||||||||||||||||||||||||||||||||||||||||
News and advertising | 94,738 | 114,450 | 118,067 | 148,649 | 475,904 | ||||||||||||||||||||||||||||||||||||||||||||||||
Mobile
|
— | — | 3,174 | 18,090 | 21,264 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other | 3,773 | 3,917 | 4,076 | 4,221 | 15,987 | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | 2,396,567 | 2,451,081 | 2,438,662 | 2,474,549 | 9,760,859 | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses | (1,954,089) | (1,968,538) | (1,967,147) | (2,047,274) | (7,937,048) | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating income | $ | 442,478 | $ | 482,543 | $ | 471,515 | $ | 427,275 | $ | 1,823,811 | |||||||||||||||||||||||||||||||||||||||||||
Net income (loss)
|
$ | (7,864) | $ | 104,142 | $ | 95,517 | $ | 21,022 | $ | 212,817 | |||||||||||||||||||||||||||||||||||||||||||
Net loss (income) attributable to noncontrolling interests
|
199 | (43) | (157) | (1,002) | (1,003) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to CSC Holdings, LLC's sole member
|
$ | (7,665) | $ | 104,099 | $ | 95,360 | $ | 20,020 | $ | 211,814 |
CSC Holdings | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31,
2018 |
June 30,
2018 |
September 30,
2018 |
December 31,
2018 (a) |
Total
2018 |
|||||||||||||||||||||||||||||||||||||||||||||||||
Residential:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
Broadband
|
$ | 701,621 | $ | 712,202 | $ | 729,907 | $ | 743,725 | $ | 2,887,455 | |||||||||||||||||||||||||||||||||||||||||||
Video
|
1,033,708 | 1,034,404 | 1,054,667 | 1,033,649 | 4,156,428 | ||||||||||||||||||||||||||||||||||||||||||||||||
Telephony
|
166,038 | 163,499 | 161,351 | 162,007 | 652,895 | ||||||||||||||||||||||||||||||||||||||||||||||||
Business services and wholesale
|
333,090 | 337,388 | 344,193 | 348,087 | 1,362,758 | ||||||||||||||||||||||||||||||||||||||||||||||||
News and advertising | 88,737 | 111,342 | 123,913 | 163,272 | 487,264 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other | 6,520 | 5,318 | 3,770 | 4,200 | 19,808 | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | 2,329,714 | 2,364,153 | 2,417,801 | 2,454,940 | 9,566,608 | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses | (2,016,676) | (2,029,094) | (1,912,243) | (1,926,216) | (7,884,229) | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating income | $ | 313,038 | $ | 335,059 | $ | 505,558 | $ | 528,724 | $ | 1,682,379 | |||||||||||||||||||||||||||||||||||||||||||
Net income (loss)
|
$ | (89,968) | $ | 21,527 | $ | 86,747 | $ | 242,020 | $ | 260,326 | |||||||||||||||||||||||||||||||||||||||||||
Net loss (income) attributable to noncontrolling interests
|
(2) | 149 | (1,186) | (722) | (1,761) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to CSC
Holdings, LLC sole member |
$ | (89,970) | $ | 21,676 | $ | 85,561 | $ | 241,298 | $ | 258,565 |
Name of Subsidiary | Jurisdiction of Incorporation or Organization | |||||||
1111 Stewart Corporation | Delaware | |||||||
4Connections LLC | New Jersey | |||||||
a4 Media, LLC | Delaware | |||||||
A R H, LTD. | Colorado | |||||||
Altice Care Holdings Corp. | Delaware | |||||||
Altice/Charter Master Cable Advertising, LLC | Delaware | |||||||
Altice Media Solutions LLC | Delaware | |||||||
Altice News, Inc. | Delaware | |||||||
Altice Real Estate Corporation | New York | |||||||
Altice USA Employee Disaster Relief Fund | Delaware | |||||||
Altice USA News, Inc. | Delaware | |||||||
Altice USA Wireless, Inc. | Delaware | |||||||
ATS Home Security Installers, LLC | Delaware | |||||||
ATS US Holdings, Corp. | Delaware | |||||||
ATS US, LLC | Delaware | |||||||
Audience Partners Canada, Inc. | Canada | |||||||
Audience Partners, LLC | Pennsylvania | |||||||
Audience Partners Worldwide LLC | Delaware | |||||||
A-R Cable Services - NY, Inc. | New York | |||||||
Cable Systems, Inc. | Kansas | |||||||
Cablevision Lightpath CT LLC | Delaware | |||||||
Cablevision Lightpath NJ LLC | Delaware | |||||||
Cablevision Lightpath, Inc. | Delaware | |||||||
Cablevision NYI L.L.C. | Delaware | |||||||
Cablevision of Brookhaven, Inc. | Delaware | |||||||
Cablevision of Hudson County, LLC | Delaware | |||||||
Cablevision of Litchfield, Inc. | Delaware | |||||||
Cablevision of Monmouth, LLC | Delaware | |||||||
Cablevision of New Jersey, LLC | Delaware | |||||||
Cablevision of Newark | New York | |||||||
Cablevision of Oakland, LLC | Delaware | |||||||
Cablevision of Ossining Limited Partnership | Massachusetts | |||||||
Cablevision of Paterson, LLC | Delaware | |||||||
Cablevision of Rockland/Ramapo, LLC | Delaware | |||||||
Cablevision of Southern Westchester, Inc. | New York | |||||||
Cablevision of Wappingers Falls, Inc. | Delaware | |||||||
Cablevision of Warwick, LLC | Delaware | |||||||
Cablevision Systems Brookline Corporation | Delaware | |||||||
Cablevision Systems Corporation | Delaware | |||||||
Cablevision Systems Dutchess Corporation | New York | |||||||
Cablevision Systems East Hampton Corporation | New York | |||||||
Cablevision Systems Great Neck Corporation | New York | |||||||
Cablevision Systems Huntington Corporation | New York | |||||||
Cablevision Systems Islip Corporation | New York | |||||||
Cablevision Systems New York City Corporation | Delaware | |||||||
Cablevision Systems Suffolk Corporation | New York | |||||||
Cablevision Systems Westchester Corporation | New York | |||||||
Cebridge Acquisition, L.P. | Delaware | |||||||
Cebridge Acquisition, LLC | Delaware |
Cebridge Connections Finance Corp. | Delaware | |||||||
Cebridge Connections, Inc. | Delaware | |||||||
Cebridge Corporation | Delaware | |||||||
Cebridge General, LLC | Delaware | |||||||
Cebridge Limited, LLC | Delaware | |||||||
Cebridge Telecom CA, LLC | Delaware | |||||||
Cebridge Telecom General, LLC | Delaware | |||||||
Cebridge Telecom ID, LLC | Delaware | |||||||
Cebridge Telecom IN, LLC | Delaware | |||||||
Cebridge Telecom KS, LLC | Delaware | |||||||
Cebridge Telecom KY, LLC | Delaware | |||||||
Cebridge Telecom LA, LLC | Delaware | |||||||
Cebridge Telecom Limited, LLC | Delaware | |||||||
Cebridge Telecom MO, LLC | Delaware | |||||||
Cebridge Telecom MS, LLC | Delaware | |||||||
Cebridge Telecom NC, LLC | Delaware | |||||||
Cebridge Telecom NM, LLC | Delaware | |||||||
Cebridge Telecom OH, LLC | Delaware | |||||||
Cebridge Telecom OK, LLC | Oklahoma | |||||||
Cebridge Telecom TX, L.P. | Delaware | |||||||
Cebridge Telecom VA, LLC | Delaware | |||||||
Cebridge Telecom WV, LLC | Delaware | |||||||
Cequel Capital Corporation | Delaware | |||||||
Cequel Communications Access Services, LLC | Delaware | |||||||
Cequel Communications Holdco, LLC | Delaware | |||||||
Cequel Communications, LLC | Delaware | |||||||
Cequel Communications II, LLC | Delaware | |||||||
Cequel Communications III, LLC | Delaware | |||||||
Cequel III Communications I, LLC | Delaware | |||||||
Cequel III Communications II, LLC | Delaware | |||||||
Cequel Wireless, LLC | Delaware | |||||||
Classic Cable of Louisiana, L.L.C. | Louisiana | |||||||
Classic Cable of Oklahoma, Inc. | Delaware | |||||||
Classic Cable, Inc. | Delaware | |||||||
Classic Communications, Inc. | Delaware | |||||||
Coram Route 112 Corporation | Delaware | |||||||
CSC Acquisition Corporation | Delaware | |||||||
CSC Acquisition-MA, Inc. | Delaware | |||||||
CSC Acquisition-NY, Inc. | New York | |||||||
CSC Gateway, LLC | Delaware | |||||||
CSC Holdings, LLC | Delaware | |||||||
CSC Investments LLC | Delaware | |||||||
CSC MVDDS LLC | Delaware | |||||||
CSC Nassau II, LLC | Delaware | |||||||
CSC Optimum Holdings, LLC | Delaware | |||||||
CSC T Holdings I, Inc. | Delaware | |||||||
CSC T Holdings II, Inc. | Delaware | |||||||
CSC T Holdings III, Inc. | Delaware | |||||||
CSC T Holdings IV, Inc. | Delaware | |||||||
CSC Technology, LLC | Delaware | |||||||
CSC TKR, LLC | Delaware |
CSC Transport II, Inc. | Delaware | |||||||
CSC Transport III, Inc. | Delaware | |||||||
CSC Transport, Inc. | Delaware | |||||||
CSC VT, Inc. | Vermont | |||||||
CSC Wireless, LLC | Delaware | |||||||
CSC Wireless NY, LLC | Delaware | |||||||
DTV Norwich LLC | Delaware | |||||||
Friendship Cable of Arkansas, Inc. | Texas | |||||||
Friendship Cable of Texas, Inc. | Texas | |||||||
Frowein Road Corporation | Delaware | |||||||
Hornell Television Services, Inc. | New York | |||||||
i24 News France S.A.S. | France | |||||||
i24 News S.a.r.l. | Luxembourg | |||||||
i24 US Corp. | Delaware | |||||||
i24 US, LLC | Delaware | |||||||
Intelcia USA LLC | Delaware | |||||||
Kingwood Holdings, LLC | Delaware | |||||||
Kingwood Security Services, LLC | Delaware | |||||||
Lightpath VoIP, LLC | Delaware | |||||||
Mercury Voice and Data, LLC | Delaware | |||||||
Middle East News | Israel | |||||||
MSGVN LLC | Delaware | |||||||
N12N LLC | Delaware | |||||||
News 12 Company | New York | |||||||
News 12 Connecticut LLC | Delaware | |||||||
News 12 Networks LLC | Delaware | |||||||
News 12 New Jersey Holding LLC | Delaware | |||||||
News 12 New Jersey II Holding LLC | Delaware | |||||||
News 12 New Jersey LLC | Delaware | |||||||
News 12 The Bronx Holding LLC | Delaware | |||||||
News 12 The Bronx, L.L.C. | Delaware | |||||||
News 12 Traffic and Weather LLC | Delaware | |||||||
News 12 Varsity Network LLC | Delaware | |||||||
News 12 Westchester LLC | Delaware | |||||||
Newsday Holdings LLC | Delaware | |||||||
Newsday LLC | Delaware | |||||||
NMG Holdings, Inc. | Delaware | |||||||
NPG Cable, LLC | Delaware | |||||||
NPG Digital Phone, LLC | Delaware | |||||||
nTelligis Holdings, LLC | Delaware | |||||||
NY Interconnect, LLC | Delaware | |||||||
NY OV LLC | Delaware | |||||||
ORBIS1, L.L.C. | Louisiana | |||||||
OV LLC | Delaware | |||||||
Petra Cablevision Corp. | New York | |||||||
Princeton Video Image Israel, Ltd. | Israel | |||||||
Samson Cablevision Corp. | New York | |||||||
SL3TV, LLC | Delaware |
Suffolk Cable Corporation | New York | |||||||
Suffolk Cable of Shelter Island, Inc. | New York | |||||||
Suffolk Cable of Smithtown, Inc. | New York | |||||||
TCA Communications, L.L.C. | Texas | |||||||
Telerama, Inc. | Ohio | |||||||
The New York Interconnect L.L.C. | Delaware | |||||||
Tristate Digital Group LLC | Delaware | |||||||
Universal Cable Holdings, Inc. | Delaware | |||||||
W.K. Communications, Inc. | Kansas |
Date: | February 14, 2020 | By: | /s/ Dexter Goei | |||||||||||
Dexter Goei | ||||||||||||||
Chief Executive Officer and Director |
Date: | February 14, 2020 | By: | /s/ Michael J. Grau | |||||||||||
Michael J. Grau | ||||||||||||||
Chief Financial Officer |
Date: | February 14, 2020 | By: | /s/ Dexter Goei | |||||||||||
Dexter Goei | ||||||||||||||
Chief Executive Officer and Director | ||||||||||||||
Date: | February 14, 2020 | By: | /s/ Michael J. Grau | |||||||||||
Michael J. Grau | ||||||||||||||
Chief Financial Officer |