Investment in Charter Accounted for Using the Equity Method (Tables)

6 Months Ended

Jun. 30, 2020

Investment in Charter Accounted for Using the Equity Method

Schedule of allocation of excess basis within memo accounts used for equity accounting purposes

The excess basis in our investment in Charter of $4,555 million as of June 30, 2020 is allocated within memo accounts used for equity accounting purposes as follows (amounts in millions):

		June 30,	December 31,
		2020	2019
Property and equipment	$	236	225
Customer relationships		1,180	1,043
Franchise fees		2,182	1,996
Trademarks		29	29
Goodwill		1,883	1,630
Debt		(70)	(9)
Deferred income tax liability		(885)	(817)
	$	4,555	4,097

Summary of financial information for Charter

Summarized unaudited financial information for Charter is as follows (amounts in millions):

Charter condensed consolidated balance sheets

	June 30, 2020		December 31, 2019
Current assets	$	4,770	6,537
Property and equipment, net		34,074	34,591
Goodwill		29,554	29,554
Intangible assets, net		73,808	74,775
Other assets		2,930	2,731
Total assets	$	145,136	148,188
Current liabilities		9,142	12,385
Deferred income taxes		17,789	17,711
Long-term debt		77,663	75,578
Other liabilities		4,141	3,703
Equity		36,401	38,811
Total liabilities and shareholders’ equity	$	145,136	148,188

Charter condensed consolidated statements of operations

	Three months ended			Six months ended
	June 30,			June 30,
	2020		2019	2020	2019
Revenue	$	11,696	11,347	23,434	22,553
Cost and expenses:
Operating costs and expenses (excluding depreciation and amortization)		7,297	7,244	14,729	14,480
Depreciation and amortization		2,428	2,500	4,925	5,050
Other operating (income) expenses, net		2	62	9	57
		9,727	9,806	19,663	19,587
Operating income		1,969	1,541	3,771	2,966
Interest expense, net		(957)	(945)	(1,937)	(1,870)
Other income (expense), net		30	(126)	(296)	(190)
Income tax benefit (expense)		(166)	(84)	(195)	(203)
Net income (loss)		876	386	1,343	703
Less: Net income attributable to noncontrolling interests		(110)	(72)	(181)	(136)
Net income (loss) attributable to Charter shareholders	$	766	314	1,162	567