ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended | September 30, 2018 |
o | 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 |
Large accelerated filer | o | Accelerated filer | o | |
Non-accelerated filer | ý | Smaller reporting company | o | |
(Do not check if a smaller reporting company) | Emerging growth company | o |
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act). | Yes | o | No | ý |
Number of shares of common stock outstanding as of November 2, 2018: | 715,100,411 |
ALTICE USA, INC. AND SUBSIDIARIES | ||
FORM 10-Q | ||
TABLE OF CONTENTS | ||
PART I. FINANCIAL INFORMATION | ||
Page | ||
Item 1. Financial Statements of Altice USA, Inc. and Subsidiaries | ||
Condensed Consolidated Balance Sheets - September 30, 2018 (Unaudited) and December 31, 2017 | ||
Condensed Consolidated Statements of Operations - Three and nine months ended September 30, 2018 and 2017 (Unaudited) | ||
Condensed Consolidated Statements of Comprehensive Income (Loss) - Three and nine months ended September 30, 2018 and 2017 (Unaudited) | ||
Condensed Consolidated Statements of Stockholders’ Equity - Nine months ended September 30, 2018 (Unaudited) | ||
Condensed Consolidated Statements of Cash Flows - Nine months ended September 30, 2018 and 2017 (Unaudited) | ||
Notes to Condensed Consolidated Financial Statements (Unaudited) | ||
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | ||
Item 3. Quantitative and Qualitative Disclosures About Market Risk | ||
Item 4. Controls and Procedures | ||
PART II. OTHER INFORMATION | ||
Item 1. Legal Proceedings | ||
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | ||
Item 6. Exhibits | ||
SIGNATURES |
• | competition for broadband, pay television and telephony customers from existing competitors (such as broadband communications companies, direct broadcast satellite ("DBS") providers and Internet‑based providers) and new competitors entering our footprint; |
• | changes in consumer preferences, laws and regulations or technology that may cause us to change our operational strategies; |
• | increased difficulty negotiating programming agreements on favorable terms, if at all, resulting in increased costs to us and/or the loss of popular programming; |
• | increasing programming costs and delivery expenses related to our products and services; |
• | our ability to achieve anticipated customer and revenue growth, to successfully introduce new products and services and to implement our growth strategy; |
• | our ability to complete our capital investment plans on time and on budget, including our plan to build a fiber-to-the-home ("FTTH") network, and deploy Altice One, our new home communications hub; |
• | our ability to develop and deploy mobile voice and data services pursuant to the agreement we entered into with Sprint in the fourth quarter of 2017, and our ability to attract customers to these services; |
• | the effects of economic conditions or other factors which may negatively affect our customers’ demand for our current and future products and services; |
• | the effects of industry conditions; |
• | demand for digital and linear advertising products and services; |
• | our substantial indebtedness and debt service obligations; |
• | adverse changes in the credit market; |
• | changes as a result of any tax reforms that may affect our business; |
• | financial community and rating agency perceptions of our business, operations, financial condition and the industries in which we operate; |
• | the restrictions contained in our financing agreements; |
• | our ability to generate sufficient cash flow to meet our debt service obligations; |
• | fluctuations in interest rates which may cause our interest expense to vary from quarter to quarter; |
• | technical failures, equipment defects, physical or electronic break-ins to our services, computer viruses and similar problems; |
• | the disruption or failure of our network, information systems or technologies as a result of computer hacking, computer viruses, “cyber-attacks,” misappropriation of data, outages, natural disasters and other material events; |
• | our ability to obtain necessary hardware, software, communications equipment and services and other items from our vendors at reasonable costs; |
• | our ability to effectively integrate acquisitions and to maximize expected operating efficiencies from our acquisitions or as a result of the transactions, if any; |
• | significant unanticipated increases in the use of bandwidth-intensive Internet-based services; |
• | the outcome of litigation, government investigations and other proceedings; |
• | our ability to successfully operate our business following the completion of our separation from Altice Europe N.V.; and |
• | other risks and uncertainties inherent in our cable and other broadband communications businesses and our other businesses, including those listed under the caption “Risk Factors” in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 6, 2018 (the "Annual Report"). |
ALTICE USA, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) | |||||||
ASSETS | September 30, 2018 (Unaudited) | December 31, 2017 | |||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 486,208 | $ | 329,848 | |||
Restricted cash | 253 | 252 | |||||
Accounts receivable, trade (less allowance for doubtful accounts of $13,259 and $13,420) | 436,550 | 370,765 | |||||
Prepaid expenses and other current assets | 167,836 | 130,425 | |||||
Amounts due from affiliates | 18,387 | 19,764 | |||||
Derivative contracts | 3,269 | 52,545 | |||||
Total current assets | 1,112,503 | 903,599 | |||||
Property, plant and equipment, net of accumulated depreciation of $3,708,770 and $2,599,579 | 5,760,479 | 6,023,826 | |||||
Investment securities pledged as collateral | 1,521,045 | 1,720,357 | |||||
Derivative contracts | 31,510 | — | |||||
Other assets | 97,537 | 57,904 | |||||
Amortizable customer relationships, net of accumulated amortization of $1,979,595 and $1,409,021 | 3,991,289 | 4,561,863 | |||||
Amortizable trade names, net of accumulated amortization of $678,248 and $588,574 | 388,835 | 478,509 | |||||
Other amortizable intangibles, net of accumulated amortization of $16,772 and $10,978 | 20,872 | 26,082 | |||||
Indefinite-lived cable television franchises | 13,020,081 | 13,020,081 | |||||
Goodwill | 8,012,416 | 8,019,861 | |||||
Total assets | $ | 33,956,567 | $ | 34,812,082 |
ALTICE USA, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (continued) (In thousands, except share and per share amounts) | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | September 30, 2018 (Unaudited) | December 31, 2017 | |||||
Current Liabilities: | |||||||
Accounts payable | $ | 883,408 | $ | 795,128 | |||
Accrued liabilities: | |||||||
Interest | 321,327 | 397,422 | |||||
Employee related costs | 123,387 | 147,727 | |||||
Other accrued expenses | 329,122 | 411,988 | |||||
Amounts due to affiliates | 23,424 | 10,998 | |||||
Deferred revenue | 131,133 | 111,197 | |||||
Liabilities under derivative contracts | — | 52,545 | |||||
Credit facility debt | 57,650 | 42,650 | |||||
Senior notes and debentures | 531,206 | 507,744 | |||||
Capital lease obligations | 4,147 | 9,539 | |||||
Notes payable | 71,873 | 33,424 | |||||
Total current liabilities | 2,476,677 | 2,520,362 | |||||
Defined benefit plan obligations | 84,755 | 103,163 | |||||
Other liabilities | 169,473 | 144,289 | |||||
Deferred tax liability | 4,809,745 | 4,769,286 | |||||
Liabilities under derivative contracts | 153,850 | 187,406 | |||||
Collateralized indebtedness | 1,400,398 | 1,349,474 | |||||
Credit facility debt | 6,163,843 | 4,600,873 | |||||
Senior notes and debentures | 14,824,532 | 15,352,688 | |||||
Capital lease obligations | 17,304 | 12,441 | |||||
Notes payable | 5,218 | 32,478 | |||||
Deficit investment in affiliates | — | 3,579 | |||||
Total liabilities | 30,105,795 | 29,076,039 | |||||
Commitments and contingencies (Note 15) | |||||||
Redeemable equity | 179,799 | 231,290 | |||||
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, 510,702,726 and 246,982,292 issued and outstanding | 5,107 | 2,470 | |||||
Class B common stock: $0.01 par value, 1,000,000,000 shares authorized, 490,086,674 issued and 213,146,331and 490,086,674 outstanding | 2,131 | 4,901 | |||||
Class C common stock: $0.01 par value, 4,000,000,000 shares authorized, no shares issued and outstanding | — | — | |||||
Paid-in capital | 3,618,709 | 4,665,229 | |||||
Retained earnings | 38,744 | 840,636 | |||||
3,664,691 | 5,513,236 | ||||||
Accumulated other comprehensive loss | (2,291 | ) | (10,022 | ) | |||
Total stockholders' equity | 3,662,400 | 5,503,214 | |||||
Noncontrolling interest | 8,573 | 1,539 | |||||
Total stockholders' equity | 3,670,973 | 5,504,753 | |||||
$ | 33,956,567 | $ | 34,812,082 |
ALTICE USA, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenue (including revenue from affiliates of $545, $426, $1,397 and $820, respectively) (See Note 14) | $ | 2,417,801 | $ | 2,322,521 | $ | 7,111,668 | $ | 6,947,142 | |||||||
Operating expenses: | |||||||||||||||
Programming and other direct costs (including charges from affiliates of $1,671, $1,196, $6,690 and $3,026, respectively) (See Note 14) | 790,533 | 755,101 | 2,373,021 | 2,272,147 | |||||||||||
Other operating expenses (including charges from affiliates of $905, $8,302, $15,154 and $24,266, respectively) (See Note 14) | 569,070 | 570,111 | 1,727,842 | 1,769,477 | |||||||||||
Restructuring and other expense | 16,587 | 53,448 | 29,865 | 142,765 | |||||||||||
Depreciation and amortization (including impairments) | 536,053 | 823,286 | 1,827,285 | 2,138,800 | |||||||||||
1,912,243 | 2,201,946 | 5,958,013 | 6,323,189 | ||||||||||||
Operating income | 505,558 | 120,575 | 1,153,655 | 623,953 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense (including $90,405 related to affiliates and related parties in 2017) (See Note 9) | (389,594 | ) | (379,066 | ) | (1,157,395 | ) | (1,232,730 | ) | |||||||
Interest income | 1,427 | 961 | 9,843 | 1,373 | |||||||||||
Gain (loss) on investments and sale of affiliate interests, net | 111,684 | (18,900 | ) | (182,031 | ) | 169,888 | |||||||||
Gain (loss) on derivative contracts, net | (79,628 | ) | (16,763 | ) | 130,883 | (154,270 | ) | ||||||||
Gain (loss) on interest rate swap contracts | (19,554 | ) | 1,051 | (64,405 | ) | 12,539 | |||||||||
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 9) | — | (38,858 | ) | (41,616 | ) | (600,240 | ) | ||||||||
Other expense, net | (186 | ) | (2,984 | ) | (12,473 | ) | (9,019 | ) | |||||||
(375,851 | ) | (454,559 | ) | (1,317,194 | ) | (1,812,459 | ) | ||||||||
Income (loss) before income taxes | 129,707 | (333,984 | ) | (163,539 | ) | (1,188,506 | ) | ||||||||
Income tax benefit (expense) | (95,968 | ) | 141,550 | (29,675 | ) | 439,945 | |||||||||
Net income (loss) | 33,739 | (192,434 | ) | (193,214 | ) | (748,561 | ) | ||||||||
Net income attributable to noncontrolling interests | (1,186 | ) | (135 | ) | (1,039 | ) | (737 | ) | |||||||
Net income (loss) attributable to Altice USA, Inc. stockholders | $ | 32,553 | $ | (192,569 | ) | $ | (194,253 | ) | $ | (749,298 | ) | ||||
INCOME (LOSS) PER SHARE: | |||||||||||||||
Basic income (loss) per share attributable to Altice USA, Inc. stockholders: | |||||||||||||||
Net income (loss) | $ | 0.04 | $ | (0.26 | ) | $ | (0.26 | ) | $ | (1.10 | ) | ||||
Basic weighted average common shares (in thousands) | 732,963 | $ | 737,069 | 735,685 | 682,234 | ||||||||||
Diluted income (loss) per share attributable to Altice USA, Inc. stockholders: | |||||||||||||||
Net income (loss) | $ | 0.04 | $ | (0.26 | ) | $ | (0.26 | ) | $ | (1.10 | ) | ||||
Diluted weighted average common shares (in thousands) | 732,963 | 737,069 | 735,685 | 682,234 |
ALTICE USA, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (In thousands) (Unaudited) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income (loss) | $ | 33,739 | $ | (192,434 | ) | $ | (193,214 | ) | $ | (748,561 | ) | ||||
Other comprehensive income (loss): | |||||||||||||||
Defined benefit pension plans: | |||||||||||||||
Unrecognized actuarial gain (loss) | 9,602 | (4,056 | ) | 13,794 | (8,389 | ) | |||||||||
Applicable income taxes | (2,592 | ) | 1,622 | (3,723 | ) | 3,356 | |||||||||
Unrecognized gain (loss) arising during period, net of income taxes | 7,010 | (2,434 | ) | 10,071 | (5,033 | ) | |||||||||
Settlement loss included in other expense, net | 65 | 1,014 | 929 | 1,403 | |||||||||||
Applicable income taxes | (18 | ) | (406 | ) | (252 | ) | (561 | ) | |||||||
Settlement loss included in other expense, net, net of income taxes | 47 | 608 | 677 | 842 | |||||||||||
Curtailment loss | — | — | — | (3,195 | ) | ||||||||||
Applicable income taxes | — | — | — | 1,278 | |||||||||||
Curtailment loss, net of income taxes | — | — | — | (1,917 | ) | ||||||||||
Foreign currency translation adjustment | 437 | — | 1,351 | — | |||||||||||
Applicable income taxes | (27 | ) | — | (365 | ) | — | |||||||||
Foreign currency translation adjustment, net | 410 | — | 986 | — | |||||||||||
Other comprehensive gain (loss) | 7,467 | (1,826 | ) | 11,734 | (6,108 | ) | |||||||||
Comprehensive income (loss) | 41,206 | (194,260 | ) | (181,480 | ) | (754,669 | ) | ||||||||
Comprehensive income attributable to noncontrolling interests | (1,186 | ) | (135 | ) | (1,039 | ) | (737 | ) | |||||||
Comprehensive income (loss) attributable to Altice USA, Inc. stockholders | $ | 40,020 | $ | (194,395 | ) | $ | (182,519 | ) | $ | (755,406 | ) |
ALTICE USA, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (In thousands) (Unaudited) | |||||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Stockholders' Equity | Non-controlling Interest | Total Equity | ||||||||||||||||||||||||
Balance at January 1, 2018, as reported | $ | 2,470 | $ | 4,901 | $ | 4,642,128 | $ | 854,824 | $ | (10,022 | ) | $ | 5,494,301 | $ | 1,539 | $ | 5,495,840 | ||||||||||||||
Impact of change in accounting policies (See Note 3) | — | — | — | 12,666 | — | 12,666 | — | 12,666 | |||||||||||||||||||||||
Impact of ATS Acquisition (See Note 3) | — | — | 23,101 | (26,854 | ) | — | (3,753 | ) | — | (3,753 | ) | ||||||||||||||||||||
Balance at January 1, 2018, as adjusted | 2,470 | 4,901 | 4,665,229 | 840,636 | (10,022 | ) | 5,503,214 | 1,539 | 5,504,753 | ||||||||||||||||||||||
Net loss attributable to stockholders | — | — | — | (194,253 | ) | — | (194,253 | ) | — | (194,253 | ) | ||||||||||||||||||||
Net loss attributable to noncontrolling interests | — | — | — | — | — | — | 1,039 | 1,039 | |||||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | — | — | — | 5,995 | 5,995 | |||||||||||||||||||||||
Pension liability adjustments, net of income taxes | — | — | — | — | 10,748 | 10,748 | — | 10,748 | |||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | 986 | 986 | — | 986 | |||||||||||||||||||||||
Share-based compensation expense | — | — | 46,176 | — | — | 46,176 | — | 46,176 | |||||||||||||||||||||||
Redeemable equity vested | — | — | 124,415 | — | — | 124,415 | — | 124,415 | |||||||||||||||||||||||
Change in redeemable equity | — | — | (72,924 | ) | — | — | (72,924 | ) | — | (72,924 | ) | ||||||||||||||||||||
Dividend payment | — | — | (963,711 | ) | (536,224 | ) | — | (1,499,935 | ) | — | (1,499,935 | ) | |||||||||||||||||||
Class A shares acquired through share repurchase program and retired | (133 | ) | — | (240,666 | ) | — | — | (240,799 | ) | — | (240,799 | ) | |||||||||||||||||||
Conversion of Class B to Class A shares, including $2,424 in connection with the Distribution | 2,770 | (2,770 | ) | — | — | — | — | — | — | ||||||||||||||||||||||
Impact of i24 Acquisition | — | — | 61,049 | (73,578 | ) | (1,840 | ) | (14,369 | ) | (14,369 | ) | ||||||||||||||||||||
Other changes to equity | — | — | (859 | ) | — | — | (859 | ) | — | (859 | ) | ||||||||||||||||||||
Adoption of ASU No. 2018-02 | — | — | — | 2,163 | (2,163 | ) | — | — | — | ||||||||||||||||||||||
Balance at September 30, 2018 | $ | 5,107 | $ | 2,131 | $ | 3,618,709 | $ | 38,744 | $ | (2,291 | ) | $ | 3,662,400 | $ | 8,573 | $ | 3,670,973 |
ALTICE USA, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | |||||||
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (193,214 | ) | $ | (748,561 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization (including impairments) | 1,827,285 | 2,138,800 | |||||
Equity in net loss of affiliates | 10,849 | 5,697 | |||||
Loss (gain) on investments and sale of affiliate interests, net | 182,031 | (169,888 | ) | ||||
Loss (gain) on derivative contracts, net | (130,883 | ) | 154,270 | ||||
Loss on extinguishment of debt and write-off of deferred financing costs | 41,616 | 600,240 | |||||
Amortization of deferred financing costs and discounts (premiums) on indebtedness | 60,526 | 18,517 | |||||
Settlement loss related to pension plan | 929 | 1,403 | |||||
Share-based compensation expense | 46,176 | 40,932 | |||||
Deferred income taxes | 14,399 | (470,841 | ) | ||||
Provision for doubtful accounts | 50,643 | 54,501 | |||||
Change in assets and liabilities, net of effects of acquisitions and dispositions: | |||||||
Accounts receivable, trade | (111,446 | ) | (45,493 | ) | |||
Other receivables | (138 | ) | (5,520 | ) | |||
Prepaid expenses and other assets | (41,890 | ) | (816 | ) | |||
Amounts due from and due to affiliates | 7,203 | (40,355 | ) | ||||
Accounts payable | 85,497 | 53,433 | |||||
Accrued liabilities | (198,196 | ) | (303,717 | ) | |||
Deferred revenue | 56,326 | 9,382 | |||||
Liabilities related to interest rate swap contracts | 62,549 | (9,552 | ) | ||||
Net cash provided by operating activities | 1,770,262 | 1,282,432 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (832,824 | ) | (718,919 | ) | |||
Payments for acquisitions, net of cash acquired | (10,753 | ) | (43,608 | ) | |||
Sale of affiliate interest | (3,537 | ) | — | ||||
Settlement of put call options | — | (24,039 | ) | ||||
Proceeds related to sale of equipment, including costs of disposal | 7,802 | 3,398 | |||||
Increase in other investments | (2,500 | ) | (4,800 | ) | |||
Additions to other intangible assets | (584 | ) | (1,700 | ) | |||
Net cash used in investing activities | (842,396 | ) | (789,668 | ) | |||
See accompanying notes to condensed consolidated financial statements. |
ALTICE USA, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) (In thousands) | |||||||
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Cash flows from financing activities: | |||||||
Proceeds from credit facility debt, net of discounts | $ | 2,217,500 | $ | 5,602,425 | |||
Repayment of credit facility debt | (635,738 | ) | (3,684,668 | ) | |||
Issuance of senior notes and debentures | 2,050,000 | — | |||||
Redemption of senior notes, including premiums and fees | (2,623,756 | ) | (1,729,400 | ) | |||
Proceeds from collateralized indebtedness, net | 516,513 | 662,724 | |||||
Repayment of collateralized indebtedness and related derivative contracts, net | (516,513 | ) | (654,989 | ) | |||
Dividends to stockholders | (1,499,935 | ) | (919,317 | ) | |||
Proceeds from notes payable | 15,955 | 24,649 | |||||
Repayment of notes payable | (14,089 | ) | — | ||||
Principal payments on capital lease obligations | (8,581 | ) | (11,518 | ) | |||
Purchase of shares of Altice USA, Inc. Class A common stock, pursuant to a share repurchase program | (226,803 | ) | — | ||||
Additions to deferred financing costs | (21,570 | ) | (9,486 | ) | |||
Other | (859 | ) | — | ||||
Contingent payment for acquisition | (30,000 | ) | — | ||||
Contributions from noncontrolling interests, net | 5,995 | 50,800 | |||||
Proceeds from IPO, net of fees | — | 348,460 | |||||
Net cash used in financing activities | (771,881 | ) | (320,320 | ) | |||
Net increase in cash and cash equivalents | 155,985 | 172,444 | |||||
Effect of exchange rate changes on cash and cash equivalents | 376 | — | |||||
Net increase in cash and cash equivalents | 156,361 | 172,444 | |||||
Cash, cash equivalents and restricted cash at beginning of year | 330,100 | 503,093 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 486,461 | $ | 675,537 |
December 31, 2017 | |||||||||||||||
As Reported | Impact of ASC 606 | Impact of ATS Acquisition | As Adjusted | ||||||||||||
Cash and cash equivalents | $ | 273,329 | $ | — | $ | 56,519 | $ | 329,848 | |||||||
Other current assets | 580,231 | 14,068 | (20,548 | ) | 573,751 | ||||||||||
Property, plant and equipment, net | 6,063,829 | — | (40,003 | ) | 6,023,826 | ||||||||||
Goodwill | 7,996,760 | — | 23,101 | 8,019,861 | |||||||||||
Other assets, long-term | 19,861,076 | 10,261 | (6,541 | ) | 19,864,796 | ||||||||||
Total assets | $ | 34,775,225 | $ | 24,329 | $ | 12,528 | $ | 34,812,082 | |||||||
Current liabilities | $ | 2,492,983 | $ | 6,978 | $ | 20,401 | $ | 2,520,362 | |||||||
Deferred tax liability, long-term | 4,775,115 | 4,685 | (10,514 | ) | 4,769,286 | ||||||||||
Liabilities, long-term | 21,779,997 | — | 6,394 | 21,786,391 | |||||||||||
Total liabilities | 29,048,095 | 11,663 | 16,281 | 29,076,039 | |||||||||||
Redeemable equity | 231,290 | — | — | 231,290 | |||||||||||
Paid-in capital | 4,642,128 | — | 23,101 | 4,665,229 | |||||||||||
Retained earnings | 854,824 | 12,666 | (26,854 | ) | 840,636 | ||||||||||
Total stockholders' equity | 5,495,840 | 12,666 | (3,753 | ) | 5,504,753 | ||||||||||
Total liabilities and stockholders' equity | $ | 34,775,225 | $ | 24,329 | $ | 12,528 | $ | 34,812,082 |
Three Months Ended September 30, 2017 | |||||||||||||||||||
As Reported | Impact of ASC 606 | Impact of ASU No. 2017-07 | Impact of ATS Acquisition | As Adjusted | |||||||||||||||
Residential: | |||||||||||||||||||
Pay TV | $ | 1,054,392 | $ | 15,807 | $ | — | $ | (253 | ) | $ | 1,069,946 | ||||||||
Broadband | 646,094 | 12,372 | — | (188 | ) | 658,278 | |||||||||||||
Telephony | 204,753 | (32,155 | ) | — | (119 | ) | 172,479 | ||||||||||||
Business services and wholesale | 324,760 | (118 | ) | — | — | 324,642 | |||||||||||||
Advertising | 89,292 | — | — | — | 89,292 | ||||||||||||||
Other | 7,884 | — | — | — | 7,884 | ||||||||||||||
Total revenue | 2,327,175 | (4,094 | ) | — | (560 | ) | 2,322,521 | ||||||||||||
Programming and other direct costs | 755,101 | — | — | — | 755,101 | ||||||||||||||
Other operating expenses | 560,497 | (4,094 | ) | (2,921 | ) | 16,629 | 570,111 | ||||||||||||
Restructuring and other expense | 53,448 | — | — | — | 53,448 | ||||||||||||||
Depreciation and amortization | 823,265 | — | — | 21 | 823,286 | ||||||||||||||
Operating income | 134,864 | — | 2,921 | (17,210 | ) | 120,575 | |||||||||||||
Other expense, net | (451,638 | ) | — | (2,921 | ) | — | (454,559 | ) | |||||||||||
Loss before income taxes | (316,774 | ) | — | — | (17,210 | ) | (333,984 | ) | |||||||||||
Income tax benefit | 134,688 | — | — | 6,862 | 141,550 | ||||||||||||||
Net loss | $ | (182,086 | ) | $ | — | $ | — | $ | (10,348 | ) | $ | (192,434 | ) |
Nine Months Ended September 30, 2017 | |||||||||||||||||||
As Reported | Impact of ASC 606 | Impact of ASU No. 2017-07 | Impact of ATS Acquisition | As Adjusted | |||||||||||||||
Residential: | |||||||||||||||||||
Pay TV | $ | 3,185,610 | $ | 39,630 | $ | — | $ | (253 | ) | $ | 3,224,987 | ||||||||
Broadband | 1,887,279 | 39,725 | — | (188 | ) | 1,926,816 | |||||||||||||
Telephony | 624,077 | (92,257 | ) | — | (119 | ) | 531,701 | ||||||||||||
Business services and wholesale | 968,291 | (588 | ) | — | — | 967,703 | |||||||||||||
Advertising | 270,154 | — | — | — | 270,154 | ||||||||||||||
Other | 25,781 | — | — | — | 25,781 | ||||||||||||||
Total revenue | 6,961,192 | (13,490 | ) | — | (560 | ) | 6,947,142 | ||||||||||||
Programming and other direct costs | 2,272,147 | — | — | — | 2,272,147 | ||||||||||||||
Other operating expenses | 1,767,624 | (13,490 | ) | (9,852 | ) | 25,195 | 1,769,477 | ||||||||||||
Restructuring and other expense | 142,765 | — | — | — | 142,765 | ||||||||||||||
Depreciation and amortization | 2,138,776 | — | — | 24 | 2,138,800 | ||||||||||||||
Operating income | 639,880 | — | 9,852 | (25,779 | ) | 623,953 | |||||||||||||
Other expense, net | (1,802,608 | ) | — | (9,852 | ) | 1 | (1,812,459 | ) | |||||||||||
Loss before income taxes | (1,162,728 | ) | — | — | (25,778 | ) | (1,188,506 | ) | |||||||||||
Income tax benefit | 429,664 | — | — | 10,281 | 439,945 | ||||||||||||||
Net loss | $ | (733,064 | ) | $ | — | $ | — | $ | (15,497 | ) | $ | (748,561 | ) |
September 30, 2018 | December 31, 2017, as adjusted | ||||||
Contract assets (a) | $ | 25,806 | $ | 24,329 | |||
Deferred revenue (b) | 173,956 | 117,679 |
(a) | Contract assets include primarily sales commissions for enterprise customers that are deferred and amortized over the average contract term. |
(b) | Deferred revenue represents payments received from customers for services that have yet to be provided and installation revenue which is deferred and recognized over the benefit period. The majority of the Company's deferred revenue represents |
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Non-Cash Investing and Financing Activities: | |||||||
Continuing Operations: | |||||||
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 9) | $ | — | $ | 2,264,252 | |||
Property and equipment accrued but unpaid | 166,800 | 84,847 | |||||
Notes payable issued to vendor for the purchase of equipment | 49,780 | 25,879 | |||||
Capital lease obligations | 8,162 | — | |||||
Leasehold improvements paid by landlord | 350 | 3,998 | |||||
Deferred financing costs accrued but unpaid | 1,006 | — | |||||
Contingent consideration for acquisitions | 6,733 | 30,000 | |||||
Receivable related to the sale of an investment | 11,954 | — | |||||
Unsettled purchases of shares of Altice USA, Inc. Class A common stock, pursuant to a share repurchase program | 13,996 | — | |||||
Supplemental Data: | |||||||
Cash interest paid | 1,174,154 | 1,481,363 | |||||
Income taxes paid, net | 12,148 | 26,396 |
The following table summarizes the activity for these initiatives during 2018: | |||||||||||
Severance and Other Employee Related Costs | Facility Realignment and Other Costs | Total | |||||||||
Accrual balance at December 31, 2017 | $ | 113,474 | $ | 9,626 | $ | 123,100 | |||||
Restructuring charges | 4,182 | 3,334 | 7,516 | ||||||||
Payments and other | (65,692 | ) | (5,853 | ) | (71,545 | ) | |||||
Accrual balance at June 30, 2018 | 51,964 | 7,107 | 59,071 | ||||||||
Restructuring charges | 5,841 | 8,826 | 14,667 | ||||||||
Payments and other | (24,991 | ) | (2,613 | ) | (27,604 | ) | |||||
Accrual balance at September 30, 2018 | $ | 32,814 | $ | 13,320 | $ | 46,134 |
September 30, 2018 | December 31, 2017 | ||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Estimated Useful Lives | |||||||||||||||||||
Customer relationships | $ | 5,970,884 | $ | (1,979,595 | ) | $ | 3,991,289 | $ | 5,970,884 | $ | (1,409,021 | ) | $ | 4,561,863 | 8 to 18 years | ||||||||||
Trade names | 1,067,083 | (678,248 | ) | 388,835 | 1,067,083 | (588,574 | ) | 478,509 | 2 to 5 years | ||||||||||||||||
Other amortizable intangibles | 37,644 | (16,772 | ) | 20,872 | 37,060 | (10,978 | ) | 26,082 | 1 to 15 years | ||||||||||||||||
$ | 7,075,611 | $ | (2,674,615 | ) | $ | 4,400,996 | $ | 7,075,027 | $ | (2,008,573 | ) | $ | 5,066,454 |
September 30, 2018 | December 31, 2017 | ||||||||||||||||||||||
Cablevision | Cequel | Total | Cablevision | Cequel | Total | ||||||||||||||||||
Cable television franchises | $ | 8,113,575 | $ | 4,906,506 | $ | 13,020,081 | $ | 8,113,575 | $ | 4,906,506 | $ | 13,020,081 | |||||||||||
Goodwill | 5,873,716 | 2,138,700 | 8,012,416 | 5,866,120 | 2,153,741 | 8,019,861 | |||||||||||||||||
Total | $ | 13,987,291 | $ | 7,045,206 | $ | 21,032,497 | $ | 13,979,695 | $ | 7,060,247 | $ | 21,039,942 |
Gross goodwill as of December 31, 2017, as reported | $ | 7,996,760 | |
ATS goodwill included in Cablevision segment (See Note 3 for further details) | 23,101 | ||
Gross goodwill as of December 31, 2017, as adjusted | 8,019,861 | ||
Goodwill recorded in Cablevision segment in connection with an acquisition during the third quarter of 2018 | 7,608 | ||
Adjustment to Cablevision segment purchase accounting relating to business acquired in fourth quarter of 2017 | (12 | ) | |
Reclassification of Cequel segment goodwill to property, plant and equipment | (15,041 | ) | |
Net goodwill as of September 30, 2018 | $ | 8,012,416 |
September 30, 2018 | December 31, 2017 | |||||||||||||||||||
Maturity Date | Interest Rate | Principal Amount | Carrying Amount (a) | Principal Amount | Carrying Amount (a) | |||||||||||||||
CSC Holdings Restricted Group: | ||||||||||||||||||||
Revolving Credit Facility (b) | $20,000 on October 9, 2020, remaining balance on November 30, 2021 | 5.40 | % | $ | 575,000 | $ | 554,908 | $ | 450,000 | $ | 425,488 | |||||||||
Term Loan Facility | July 17, 2025 | 4.41 | % | 2,962,500 | 2,946,318 | 2,985,000 | 2,967,818 | |||||||||||||
Incremental Term Loan Facility | January 25, 2026 | 4.66 | % | 1,496,250 | 1,478,995 | — | — | |||||||||||||
Cequel: | ||||||||||||||||||||
Revolving Credit Facility (c) | $65,000 on November 30, 2021, and remaining balance on April 5, 2023 | — | % | — | — | — | — | |||||||||||||
Term Loan Facility | July 28, 2025 | 4.49 | % | 1,249,188 | 1,241,272 | 1,258,675 | 1,250,217 | |||||||||||||
$ | 6,282,938 | 6,221,493 | $ | 4,693,675 | 4,643,523 | |||||||||||||||
Less: Current portion | 57,650 | 42,650 | ||||||||||||||||||
Long-term debt | $ | 6,163,843 | $ | 4,600,873 |
(a) | The carrying amount is net of the unamortized deferred financing costs and/or discounts/premiums. |
(b) | At September 30, 2018, $139,929 of the revolving credit facility was restricted for certain letters of credit issued on behalf of the Company and $1,585,071 of the facility was undrawn and available, subject to covenant limitations. |
(c) | At September 30, 2018, $7,636 of the revolving credit facility was restricted for certain letters of credit issued on behalf of the Company and $342,364 of the facility was undrawn and available, subject to covenant limitations. |
September 30, 2018 | December 31, 2017 | ||||||||||||||||||||||
Date Issued | Maturity Date | Interest Rate | Principal Amount | Carrying Amount (a) | Principal Amount | Carrying Amount (a) | |||||||||||||||||
CSC Holdings Senior Notes: | |||||||||||||||||||||||
February 6, 1998 | February 15, 2018 | 7.875 | % | (b) | (f) | (o) | $ | — | $ | — | $ | 300,000 | $ | 301,184 | |||||||||
July 21, 1998 | July 15, 2018 | 7.625 | % | (b) | (f) | (q) | — | — | 500,000 | 507,744 | |||||||||||||
February 12, 2009 | February 15, 2019 | 8.625 | % | (c) | (f) | 526,000 | 531,206 | 526,000 | 541,165 | ||||||||||||||
November 15, 2011 | November 15, 2021 | 6.750 | % | (c) | (f) | 1,000,000 | 966,913 | 1,000,000 | 960,146 | ||||||||||||||
May 23, 2014 | June 1, 2024 | 5.250 | % | (c) | (f) | 750,000 | 668,918 | 750,000 | 660,601 | ||||||||||||||
October 9, 2015 | January 15, 2023 | 10.125 | % | (e) | 1,800,000 | 1,780,504 | 1,800,000 | 1,777,914 | |||||||||||||||
October 9, 2015 | October 15, 2025 | 10.875 | % | (e) | 1,684,221 | 1,662,507 | 1,684,221 | 1,661,135 | |||||||||||||||
CSC Holdings Senior Guaranteed Notes: | |||||||||||||||||||||||
October 9, 2015 | October 15, 2025 | 6.625 | % | (e) | 1,000,000 | 987,707 | 1,000,000 | 986,717 | |||||||||||||||
September 23, 2016 | April 15, 2027 | 5.500 | % | (g) | 1,310,000 | 1,304,816 | 1,310,000 | 1,304,468 | |||||||||||||||
January 29, 2018 | February 1, 2028 | 5.375 | % | (n) | 1,000,000 | 991,896 | — | — | |||||||||||||||
Cablevision Senior Notes (k): | |||||||||||||||||||||||
April 15, 2010 | April 15, 2018 | 7.750 | % | (c) | (f) | (o) | — | — | 750,000 | 754,035 | |||||||||||||
April 15, 2010 | April 15, 2020 | 8.000 | % | (c) | (f) | 500,000 | 494,445 | 500,000 | 492,009 | ||||||||||||||
September 27, 2012 | September 15, 2022 | 5.875 | % | (c) | (f) | 649,024 | 582,236 | 649,024 | 572,071 | ||||||||||||||
Cequel and Cequel Capital Senior Notes (l): | |||||||||||||||||||||||
Oct. 25, 2012 Dec. 28, 2012 | September 15, 2020 | 6.375 | % | (d) | (m) | — | — | 1,050,000 | 1,027,493 | ||||||||||||||
May 16, 2013 Sept. 9, 2014 | December 15, 2021 | 5.125 | % | (d) | 1,250,000 | 1,157,405 | 1,250,000 | 1,138,870 | |||||||||||||||
June 12, 2015 | July 15, 2025 | 7.750 | % | (i) | 620,000 | 605,540 | 620,000 | 604,374 | |||||||||||||||
April 5, 2018 | April 1, 2028 | 7.500 | % | (p) | 1,050,000 | 1,048,222 | — | — | |||||||||||||||
Altice US Finance I Corporation Senior Secured Notes (l): | |||||||||||||||||||||||
June 12, 2015 | July 15, 2023 | 5.375 | % | (h) | 1,100,000 | 1,084,542 | 1,100,000 | 1,082,482 | |||||||||||||||
April 26, 2016 | May 15, 2026 | 5.500 | % | (j) | 1,500,000 | 1,488,881 | 1,500,000 | 1,488,024 | |||||||||||||||
$ | 15,739,245 | 15,355,738 | $ | 16,289,245 | 15,860,432 | ||||||||||||||||||
Less: current portion | 531,206 | 507,744 | |||||||||||||||||||||
Long-term debt | $ | 14,824,532 | $ | 15,352,688 |
(a) | The carrying amount is net of the unamortized deferred financing costs and/or discounts/premiums. |
(b) | The debentures are not redeemable by CSC Holdings prior to maturity. |
(c) | Notes are redeemable at any time at a specified "make-whole" price plus accrued and unpaid interest to the redemption date. |
(d) | The Company may redeem some or more of all the notes at the redemption price set forth in the relevant indenture, plus accrued and unpaid interest. |
(e) | The Company may redeem some or all of the 2023 Notes at any time on or after January 15, 2019, and some or all of the 2025 Notes and 2025 Guaranteed Notes at any time on or after October 15, 2020, at the redemption prices set forth in the relevant indenture, plus accrued and unpaid interest, if any. The Company may also redeem up to 40% of each series of |
(f) | The carrying value of the notes was adjusted to reflect their fair value on the date of the Cablevision Acquisition (aggregate reduction of $52,788 at the date of the acquisition). |
(g) | The 2027 Guaranteed Notes are redeemable at any time on or after April 15, 2022 at the redemption prices set forth in the indenture, plus accrued and unpaid interest, if any. In addition, up to 40% may be redeemed for each series of the 2027 Guaranteed Notes using the proceeds of certain equity offerings before October 15, 2019, at a redemption price equal to 105.500%, plus accrued and unpaid interest. |
(h) | Some or all of these notes may be redeemed at any time on or after July 15, 2018, plus accrued and unpaid interest, if any. |
(i) | Some or all of these notes may be redeemed at any time on or after July 15, 2020, plus accrued and unpaid interest, if any. |
(j) | Some or all of these notes may be redeemed at any time on or after May 15, 2021, plus accrued and unpaid interest, if any. Up to 40% of the notes may be redeemed using the proceeds of certain equity offerings before May 15, 2019, at a redemption price equal to 105.500%. |
(k) | The issuers of these notes have no ability to service interest or principal on the notes, other than through any dividends or distributions received from CSC Holdings. CSC Holdings is restricted, in certain circumstances, from paying dividends or distributions to the issuers by the terms of the CSC Holdings credit facilities agreement. |
(l) | The issuers of these notes have no ability to service interest or principal on the notes, other than through any contributions/distributions from Cequel Communications, LLC (an indirect subsidiary of Cequel and the parent of Altice US Finance I). Cequel Communications, LLC is restricted in certain circumstances, from paying dividends or distributions to the issuers by the terms of the Cequel credit facilities agreement. |
(m) | These notes were repaid in April 2018 with the proceeds from the issuance of new senior notes. |
(n) | The 2028 Guaranteed Notes are redeemable at any time on or after February 1, 2023 at the redemption prices set forth in the indenture, plus accrued and unpaid interest, if any. In addition, up to 40% of the original aggregate principal amount of the notes may be redeemed using the proceeds of certain equity offerings before February 1, 2021, at a redemption price equal to 105.375%, plus accrued and unpaid interest. |
(o) | These notes were repaid in February 2018 with the proceeds from the 2028 Guaranteed Notes (defined below) and with the proceeds from the Incremental Term Loan. |
(p) | The 2028 Senior Notes are redeemable at any time prior to April 1, 2023 at a redemption price equal to 100% of the principal amount thereof plus the applicable premium plus accrued and unpaid interest, if any. Up to 40% of the original aggregate principal amount of the 2028 Senior Notes may be redeemed using the proceeds of certain equity offerings before April 1, 2021, at a redemption price equal to 107.50% of the principal amount, plus accrued and unpaid interest. In addition, the 2028 Senior Notes are redeemable at any time on or after April 1, 2023 at the redemption prices set forth in indenture, plus accrued and unpaid interest. |
(q) | These notes were repaid in July 2018 with borrowings under CSC Holdings revolving credit facility agreement. |
Years Ending December 31, | Cablevision | Cequel | Total | ||||||||
2018 | $ | 30,678 | $ | 6,446 | $ | 37,124 | |||||
2019 | 598,210 | 43,999 | 642,209 | ||||||||
2020 | 550,396 | 12,720 | 563,116 | ||||||||
2021 | 3,083,892 | 1,262,729 | 4,346,621 | ||||||||
2022 | 697,147 | 12,739 | 709,886 | ||||||||
Thereafter | 11,815,174 | 5,466,230 | 17,281,404 |
Asset Derivatives | Liability Derivatives | |||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Balance Sheet Location | Fair Value at September 30, 2018 | Fair Value at December 31, 2017 | Fair Value at September 30, 2018 | Fair Value at December 31, 2017 | |||||||||||||
Interest rate swap contracts | Derivative contracts, current | $ | 3,269 | $ | — | $ | — | $ | — | |||||||||
Prepaid forward contracts | Derivative contracts, current | — | 52,545 | — | (52,545 | ) | ||||||||||||
Prepaid forward contracts | Derivative contracts, long-term | 31,510 | — | (10,131 | ) | (109,504 | ) | |||||||||||
Interest rate swap contracts | Liabilities under derivative contracts, long-term | — | — | (143,719 | ) | (77,902 | ) | |||||||||||
$ | 34,779 | $ | 52,545 | $ | (153,850 | ) | $ | (239,951 | ) |
Number of shares | 16,139,868 | ||
Collateralized indebtedness settled | $ | (516,537 | ) |
Derivatives contracts settled | 24 | ||
(516,513 | ) | ||
Proceeds from new monetization contracts | 516,513 | ||
Net cash proceeds | $ | — |
• | Level I - Quoted prices for identical instruments in active markets. |
• | Level II - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. |
• | Level III - Instruments whose significant value drivers are unobservable. |
Fair Value Hierarchy | September 30, 2018 | December 31, 2017 | |||||||
Assets: | |||||||||
Money market funds | Level I | $ | 296,123 | $ | 5,949 | ||||
Investment securities pledged as collateral | Level I | 1,521,045 | 1,720,357 | ||||||
Prepaid forward contracts | Level II | 31,510 | 52,545 | ||||||
Interest rate swap contracts | Level II | 3,269 | — | ||||||
Liabilities: | |||||||||
Prepaid forward contracts | Level II | 10,131 | 162,049 | ||||||
Interest rate swap contracts | Level II | 143,719 | 77,902 | ||||||
Contingent consideration related to 2017 and 2018 acquisitions | Level III | 6,733 | 32,233 |
September 30, 2018 | December 31, 2017 | ||||||||||||||||
Fair Value Hierarchy | Carrying Amount (a) | Estimated Fair Value | Carrying Amount (a) | Estimated Fair Value | |||||||||||||
CSC Holdings debt instruments: | |||||||||||||||||
Credit facility debt | Level II | $ | 4,980,221 | $ | 5,033,750 | $ | 3,393,306 | $ | 3,435,000 | ||||||||
Collateralized indebtedness | Level II | 1,400,398 | 1,352,771 | 1,349,474 | 1,305,932 | ||||||||||||
Senior guaranteed notes | Level II | 3,284,419 | 3,293,125 | 2,291,185 | 2,420,000 | ||||||||||||
Senior notes and debentures | Level II | 5,610,048 | 6,245,760 | 6,409,889 | 7,221,846 | ||||||||||||
Notes payable | Level II | 42,810 | 42,653 | 56,956 | 55,289 | ||||||||||||
Cablevision senior notes: | |||||||||||||||||
Senior notes and debentures | Level II | 1,076,681 | 1,189,098 | 1,818,115 | 1,931,239 | ||||||||||||
Cequel debt instruments: | |||||||||||||||||
Cequel credit facility debt | Level II | 1,241,272 | 1,249,188 | 1,250,217 | 1,258,675 | ||||||||||||
Senior secured notes | Level II | 2,573,423 | 2,604,930 | 2,570,506 | 2,658,930 | ||||||||||||
Senior notes | Level II | 2,811,167 | 3,013,615 | 2,770,737 | 2,983,615 | ||||||||||||
Notes payable | Level II | 34,281 | 34,281 | 8,946 | 8,946 | ||||||||||||
$ | 23,054,720 | $ | 24,059,171 | $ | 21,919,331 | $ | 23,279,472 |
(a) | Amounts are net of unamortized deferred financing costs, premiums and discounts. |
Number of Time Vesting Awards | Number of Performance Based Vesting Awards | Weighted Average Grant Date Fair Value | |||||||
Balance, December 31, 2017 | 168,550,001 | 10,000,000 | $ | 0.71 | |||||
Vested | (48,337,500 | ) | — | 0.37 | |||||
Forfeited | (15,500,001 | ) | — | 0.56 | |||||
Balance, September 30, 2018 | 104,712,500 | 10,000,000 | 1.01 |
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 | $ | 8,944 | |||||||||
Granted | 2,332,540 | 95,953 | 17.76 | |||||||||||||
Forfeited | (496,491 | ) | (22,314 | ) | 17.76 | |||||||||||
Balance at September 30, 2018 | 6,946,796 | 73,639 | 17.51 | 9.43 | 4,417 | |||||||||||
Options exercisable at September 30, 2018 | — | — | — | — | — |
(a) | The aggregate intrinsic value is calculated as the difference between the exercise price and the closing price of the Company's Class A common stock at the respective date. |
Risk-free interest rate | 2.77% | |
Expected life (in years) | 6.48 | |
Dividend yield | —% | |
Volatility | 35.23% | |
Grant date fair value | $7.12 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenue | $ | 545 | $ | 426 | $ | 1,397 | $ | 820 | |||||||
Operating expenses: | |||||||||||||||
Programming and other direct costs | (1,671 | ) | (1,196 | ) | (6,690 | ) | $ | (3,026 | ) | ||||||
Other operating expenses, net | (905 | ) | (8,302 | ) | (15,154 | ) | (24,266 | ) | |||||||
Operating expenses, net | (2,576 | ) | (9,498 | ) | (21,844 | ) | (27,292 | ) | |||||||
Interest expense (a) | — | — | — | (90,405 | ) | ||||||||||
Other income, net | — | — | 149 | — | |||||||||||
Loss on extinguishment of debt and write-off of deferred financing costs | — | — | — | (513,723 | ) | ||||||||||
Net charges | $ | (2,031 | ) | $ | (9,072 | ) | $ | (20,298 | ) | $ | (630,600 | ) | |||
Capital expenditures | $ | 3,945 | $ | 3,549 | $ | 6,679 | $ | 12,914 |
(a) | In connection with the Company's IPO in June 2017, the Company converted the notes payable to affiliates and related parties into shares of the Company’s common stock at the IPO price. |
September 30, 2018 | December 31, 2017 | ||||||
Due from: | |||||||
Altice US Finance S.A. (a) | $ | 13,100 | $ | 12,951 | |||
Newsday (b) | 541 | 2,713 | |||||
Altice Management Americas (b) | 1,271 | 33 | |||||
Altice Dominican Republic (b) | 2,551 | — | |||||
i24 News (b) | — | 4,036 | |||||
Other Altice Europe subsidiaries (b) | 924 | 31 | |||||
$ | 18,387 | $ | 19,764 | ||||
Due to: | |||||||
Altice Europe (c) | $ | 13,250 | $ | — | |||
Newsday (b) | 32 | 33 | |||||
Altice Labs S.A. (d) | 1,463 | 7,354 | |||||
Other Altice Europe subsidiaries (d) | 8,679 | 3,611 | |||||
$ | 23,424 | $ | 10,998 |
(a) | Represents interest on senior notes paid by the Company on behalf of the affiliate. |
(b) | Represents amounts paid by the Company on behalf of the respective related party, and for Newsday the net amounts due from the related party also include charges for certain transition services provided. |
(c) | Represents amounts due to Altice Europe pursuant to the agreement discussed above. |
(d) | Represents amounts due to affiliates for the purchase of equipment and advertising services, as well as reimbursement for payments made on our behalf. |
Three Months Ended September 30, 2018 | Three Months Ended September 30, 2017 | ||||||||||||||||||||||
Cablevision | Cequel | Total | Cablevision | Cequel | Total | ||||||||||||||||||
Operating income (loss) | $ | 340,455 | $ | 165,103 | $ | 505,558 | $ | (3,103 | ) | $ | 123,678 | $ | 120,575 | ||||||||||
Share-based compensation | 9,038 | 3,289 | 12,327 | 11,555 | 3,450 | 15,005 | |||||||||||||||||
Restructuring and other expense | 14,122 | 2,465 | 16,587 | 35,364 | 18,084 | 53,448 | |||||||||||||||||
Depreciation and amortization (including impairments) | 378,549 | 157,504 | 536,053 | 656,122 | 167,164 | 823,286 | |||||||||||||||||
Adjusted EBITDA | $ | 742,164 | $ | 328,361 | $ | 1,070,525 | $ | 699,938 | $ | 312,376 | $ | 1,012,314 |
Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2017 | ||||||||||||||||||||||
Cablevision | Cequel | Total | Cablevision | Cequel | Total | ||||||||||||||||||
Operating income | $ | 714,413 | $ | 439,242 | $ | 1,153,655 | $ | 228,740 | $ | 395,213 | $ | 623,953 | |||||||||||
Share-based compensation | 35,567 | 10,609 | 46,176 | 28,597 | 12,335 | 40,932 | |||||||||||||||||
Restructuring and other expense | 25,720 | 4,145 | 29,865 | 105,182 | 37,583 | 142,765 | |||||||||||||||||
Depreciation and amortization (including impairments) | 1,337,051 | 490,234 | 1,827,285 | 1,641,501 | 497,299 | 2,138,800 | |||||||||||||||||
Adjusted EBITDA | $ | 2,112,751 | $ | 944,230 | $ | 3,056,981 | $ | 2,004,020 | $ | 942,430 | $ | 2,946,450 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Operating income for reportable segments | $ | 505,558 | $ | 120,575 | $ | 1,153,655 | $ | 623,953 | |||||||
Items excluded from operating income: | |||||||||||||||
Interest expense | (389,594 | ) | (379,066 | ) | (1,157,395 | ) | (1,232,730 | ) | |||||||
Interest income | 1,427 | 961 | 9,843 | 1,373 | |||||||||||
Gain (loss) on investments and sale of affiliate interests, net | 111,684 | (18,900 | ) | (182,031 | ) | 169,888 | |||||||||
Gain (loss) on derivative contracts, net | (79,628 | ) | (16,763 | ) | 130,883 | (154,270 | ) | ||||||||
Gain (loss) on interest rate swap contracts | (19,554 | ) | 1,051 | (64,405 | ) | 12,539 | |||||||||
Loss on extinguishment of debt and write-off of deferred financing costs | — | (38,858 | ) | (41,616 | ) | (600,240 | ) | ||||||||
Other expense, net | (186 | ) | (2,984 | ) | (12,473 | ) | (9,019 | ) | |||||||
Income (loss) before income taxes | $ | 129,707 | $ | (333,984 | ) | $ | (163,539 | ) | $ | (1,188,506 | ) |
Three Months Ended September 30, 2018 | Three Months Ended September 30, 2017 | ||||||||||||||||||||||||||||||
Cablevision | Cequel | Eliminations (a) | Total | Cablevision | Cequel | Eliminations (a) | Total | ||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||||
Pay TV | $ | 783,252 | $ | 271,415 | $ | — | $ | 1,054,667 | $ | 798,583 | $ | 271,363 | $ | — | $ | 1,069,946 | |||||||||||||||
Broadband | 457,709 | 272,198 | — | 729,907 | 416,972 | 241,306 | — | 658,278 | |||||||||||||||||||||||
Telephony | 130,494 | 30,857 | — | 161,351 | 140,830 | 31,649 | — | 172,479 | |||||||||||||||||||||||
Business services and wholesale | 242,305 | 101,888 | — | 344,193 | 230,200 | 94,442 | — | 324,642 | |||||||||||||||||||||||
Advertising | 105,719 | 18,107 | (760 | ) | 123,066 | 72,316 | 17,456 | (480 | ) | 89,292 | |||||||||||||||||||||
Other | 2,209 | 2,408 | — | 4,617 | 2,458 | 5,426 | — | 7,884 | |||||||||||||||||||||||
Total Revenue | $ | 1,721,688 | $ | 696,873 | $ | (760 | ) | $ | 2,417,801 | $ | 1,661,359 | $ | 661,642 | $ | (480 | ) | $ | 2,322,521 |
Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2017 | ||||||||||||||||||||||||||||||
Cablevision | Cequel | Eliminations (a) | Total | Cablevision | Cequel | Eliminations (a) | Total | ||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||||
Pay TV | $ | 2,313,229 | $ | 809,550 | $ | — | $ | 3,122,779 | $ | 2,397,233 | $ | 827,754 | $ | — | $ | 3,224,987 | |||||||||||||||
Broadband | 1,347,486 | 796,244 | — | 2,143,730 | 1,218,504 | 708,312 | — | 1,926,816 | |||||||||||||||||||||||
Telephony | 399,714 | 91,174 | — | 490,888 | 432,710 | 98,991 | — | 531,701 | |||||||||||||||||||||||
Business services and wholesale | 713,240 | 301,431 | — | 1,014,671 | 689,708 | 277,995 | — | 967,703 | |||||||||||||||||||||||
Advertising | 276,343 | 53,541 | (9,338 | ) | 320,546 | 216,250 | 54,384 | (480 | ) | 270,154 | |||||||||||||||||||||
Other | 8,697 | 10,357 | — | 19,054 | 8,467 | 17,314 | — | 25,781 | |||||||||||||||||||||||
Total Revenue | $ | 5,058,709 | $ | 2,062,297 | $ | (9,338 | ) | $ | 7,111,668 | $ | 4,962,872 | $ | 1,984,750 | $ | (480 | ) | $ | 6,947,142 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Cablevision | $ | 217,326 | $ | 180,287 | $ | 554,483 | $ | 505,852 | |||||||
Cequel | 117,201 | 75,042 | 278,341 | 213,067 | |||||||||||
$ | 334,527 | $ | 255,329 | $ | 832,824 | $ | 718,919 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenue: | |||||||||||||||
Residential: | |||||||||||||||
Pay TV | $ | 1,054,667 | $ | 1,069,946 | $ | 3,122,779 | $ | 3,224,987 | |||||||
Broadband | 729,907 | 658,278 | 2,143,730 | 1,926,816 | |||||||||||
Telephony | 161,351 | 172,479 | 490,888 | 531,701 | |||||||||||
Business services and wholesale | 344,193 | 324,642 | 1,014,671 | 967,703 | |||||||||||
Advertising | 123,066 | 89,292 | 320,546 | 270,154 | |||||||||||
Other | 4,617 | 7,884 | 19,054 | 25,781 | |||||||||||
Total revenue | 2,417,801 | 2,322,521 | 7,111,668 | 6,947,142 | |||||||||||
Operating expenses: | |||||||||||||||
Programming and other direct costs | 790,533 | 755,101 | 2,373,021 | 2,272,147 | |||||||||||
Other operating expenses | 569,070 | 570,111 | 1,727,842 | 1,769,477 | |||||||||||
Restructuring and other expense | 16,587 | 53,448 | 29,865 | 142,765 | |||||||||||
Depreciation and amortization (including impairments) | 536,053 | 823,286 | 1,827,285 | 2,138,800 | |||||||||||
Operating income | 505,558 | 120,575 | 1,153,655 | 623,953 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense, net | (388,167 | ) | (378,105 | ) | (1,147,552 | ) | (1,231,357 | ) | |||||||
Gain (loss) on investments and sale of affiliate interests, net | 111,684 | (18,900 | ) | (182,031 | ) | 169,888 | |||||||||
Gain (loss) on derivative contracts, net | (79,628 | ) | (16,763 | ) | 130,883 | (154,270 | ) | ||||||||
Gain (loss) on interest rate swap contracts | (19,554 | ) | 1,051 | (64,405 | ) | 12,539 | |||||||||
Loss on extinguishment of debt and write-off of deferred financing costs | — | (38,858 | ) | (41,616 | ) | (600,240 | ) | ||||||||
Other expense, net | (186 | ) | (2,984 | ) | (12,473 | ) | (9,019 | ) | |||||||
Income (loss) before income taxes | 129,707 | (333,984 | ) | (163,539 | ) | (1,188,506 | ) | ||||||||
Income tax benefit (expense) | (95,968 | ) | 141,550 | (29,675 | ) | 439,945 | |||||||||
Net income (loss) | 33,739 | (192,434 | ) | (193,214 | ) | (748,561 | ) | ||||||||
Net income attributable to noncontrolling interests | (1,186 | ) | (135 | ) | (1,039 | ) | (737 | ) | |||||||
Net income (loss) attributable to Altice USA stockholders | $ | 32,553 | $ | (192,569 | ) | $ | (194,253 | ) | $ | (749,298 | ) |
Altice USA | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income (loss) | $ | 33,739 | $ | (192,434 | ) | $ | (193,214 | ) | $ | (748,561 | ) | ||||
Income tax expense (benefit) | 95,968 | (141,550 | ) | 29,675 | (439,945 | ) | |||||||||
Other expense, net | 186 | 2,984 | 12,473 | 9,019 | |||||||||||
Loss (gain) on interest rate swap contracts | 19,554 | (1,051 | ) | 64,405 | (12,539 | ) | |||||||||
Loss (gain) on derivative contracts, net | 79,628 | 16,763 | (130,883 | ) | 154,270 | ||||||||||
Loss (gain) on investments and sale of affiliate interests, net | (111,684 | ) | 18,900 | 182,031 | (169,888 | ) | |||||||||
Loss on extinguishment of debt and write-off of deferred financing costs | — | 38,858 | 41,616 | 600,240 | |||||||||||
Interest expense, net | 388,167 | 378,105 | 1,147,552 | 1,231,357 | |||||||||||
Depreciation and amortization | 536,053 | 823,286 | 1,827,285 | 2,138,800 | |||||||||||
Restructuring and other expense | 16,587 | 53,448 | 29,865 | 142,765 | |||||||||||
Share-based compensation | 12,327 | 15,005 | 46,176 | 40,932 | |||||||||||
Adjusted EBITDA | $ | 1,070,525 | $ | 1,012,314 | $ | 3,056,981 | $ | 2,946,450 |
September 30, 2018 | June 30, 2018 | September 30, 2017 | |||||||||||||||||||||||||||
Cablevision | Cequel | Total | Cablevision | Cequel | Total | Cablevision | Cequel | Total | |||||||||||||||||||||
(in thousands, except per customer amounts) | |||||||||||||||||||||||||||||
Homes passed (a) | 5,197.3 | 3,504.4 | 8,701.7 | 5,187.3 | 3,483.7 | 8,671.0 | 5,134.4 | 3,442.8 | 8,577.2 | ||||||||||||||||||||
Total customer relationships (b)(c) | 3,145.9 | 1,765.3 | 4,911.2 | 3,153.5 | 1,761.6 | 4,915.1 | 3,148.9 | 1,749.2 | 4,898.1 | ||||||||||||||||||||
Residential | 2,882.8 | 1,652.1 | 4,534.9 | 2,889.7 | 1,650.1 | 4,539.8 | 2,887.0 | 1,642.0 | 4,529.0 | ||||||||||||||||||||
SMB | 263.1 | 113.2 | 376.3 | 263.8 | 111.5 | 375.3 | 261.9 | 107.2 | 369.1 | ||||||||||||||||||||
Residential customers: | |||||||||||||||||||||||||||||
Pay TV | 2,306.6 | 1,016.2 | 3,322.8 | 2,327.3 | 1,023.6 | 3,350.9 | 2,382.2 | 1,048.0 | 3,430.2 | ||||||||||||||||||||
Broadband | 2,682.9 | 1,413.4 | 4,096.3 | 2,681.3 | 1,400.8 | 4,082.1 | 2,653.1 | 1,367.8 | 4,020.9 | ||||||||||||||||||||
Telephony | 1,942.8 | 590.7 | 2,533.5 | 1,949.4 | 596.1 | 2,545.6 | 1,958.8 | 588.4 | 2,547.2 | ||||||||||||||||||||
Residential triple product customer penetration (d): | 63.4 | % | 25.6 | % | 49.6 | % | 63.5 | % | 25.8 | % | 49.8 | % | 64.3 | % | 25.4 | % | 50.2 | % | |||||||||||
Penetration of homes passed (e): | 60.5 | % | 50.4 | % | 56.4 | % | 60.8 | % | 50.6 | % | 56.7 | % | 61.3 | % | 50.8 | % | 57.1 | % | |||||||||||
ARPU(f) | $ | 158.39 | $ | 115.98 | $ | 142.96 | $ | 155.69 | $ | 113.10 | $ | 140.19 | $ | 156.55 | $ | 110.30 | $ | 139.77 |
(a) | Represents the estimated number of single residence homes, apartments and condominium units passed by the cable distribution network in areas serviceable without further extending the transmission lines. In addition, it includes commercial establishments that have connected to our cable distribution network. For Cequel, broadband services were not available to approximately 100 homes passed and telephony services were not available to approximately 500 homes passed. |
(b) | Represents number of households/businesses that receive at least one of the Company's services. |
(c) | Customers represent each customer account (set up and segregated by customer name and address), weighted equally and counted as one customer, regardless of size, revenue generated, or number of boxes, units, or outlets. In calculating the number of customers, we count all customers other than inactive/disconnected customers. Free accounts are included in the customer counts along with all active accounts, but they are limited to a prescribed group. Most of these accounts are also not entirely free, as they typically generate revenue through pay-per-view or other pay services and certain equipment fees. Free status is not granted to regular customers as a promotion. In counting bulk residential customers, such as an apartment building, we count each subscribing family unit within the building as one customer, but do not count the master account for the entire building as a customer. We count a bulk commercial customer, such as a hotel, as one customer, and do not count individual room units at that hotel. |
(d) | Represents the number of customers that subscribe to three of our services divided by total residential customer relationships. |
(e) | Represents the number of total customer relationships divided by homes passed. |
(f) | Calculated by dividing the average monthly revenue for the respective quarter (fourth quarter for annual periods) derived from the sale of broadband, pay television and telephony services to residential customers for the respective quarter by the average number of total residential customers for the same period. |
Segment Results | |||||||||||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||||||||||||
Cablevision | Cequel | Eliminations | Total | Cablevision | Cequel | Eliminations | Total | ||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||||
Pay TV | $ | 783,252 | $ | 271,415 | $ | — | $ | 1,054,667 | $ | 798,583 | $ | 271,363 | $ | — | $ | 1,069,946 | |||||||||||||||
Broadband | 457,709 | 272,198 | — | 729,907 | 416,972 | 241,306 | — | 658,278 | |||||||||||||||||||||||
Telephony | 130,494 | 30,857 | — | 161,351 | 140,830 | 31,649 | — | 172,479 | |||||||||||||||||||||||
Business services and wholesale | 242,305 | 101,888 | — | 344,193 | 230,200 | 94,442 | — | 324,642 | |||||||||||||||||||||||
Advertising | 105,719 | 18,107 | (760 | ) | 123,066 | 72,316 | 17,456 | (480 | ) | 89,292 | |||||||||||||||||||||
Other | 2,209 | 2,408 | — | 4,617 | 2,458 | 5,426 | — | 7,884 | |||||||||||||||||||||||
Total revenue | 1,721,688 | 696,873 | (760 | ) | 2,417,801 | 1,661,359 | 661,642 | (480 | ) | 2,322,521 | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||
Programming and other direct costs | 585,117 | 206,120 | (704 | ) | 790,533 | 570,995 | 184,283 | (177 | ) | 755,101 | |||||||||||||||||||||
Other operating expenses | 403,445 | 165,681 | (56 | ) | 569,070 | 401,981 | 168,433 | (303 | ) | 570,111 | |||||||||||||||||||||
Restructuring and other expense | 14,122 | 2,465 | — | 16,587 | 35,364 | 18,084 | — | 53,448 | |||||||||||||||||||||||
Depreciation and amortization | 378,549 | 157,504 | — | 536,053 | 656,122 | 167,164 | — | 823,286 | |||||||||||||||||||||||
Operating income (loss) | $ | 340,455 | $ | 165,103 | $ | — | $ | 505,558 | $ | (3,103 | ) | $ | 123,678 | $ | — | $ | 120,575 |
Segment Results | |||||||||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||||||||||||
Cablevision | Cequel | Eliminations | Total | Cablevision | Cequel | Eliminations | Total | ||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||||
Pay TV | $ | 2,313,229 | $ | 809,550 | $ | — | $ | 3,122,779 | $ | 2,397,233 | $ | 827,754 | $ | — | $ | 3,224,987 | |||||||||||||||
Broadband | 1,347,486 | 796,244 | — | 2,143,730 | 1,218,504 | 708,312 | — | 1,926,816 | |||||||||||||||||||||||
Telephony | 399,714 | 91,174 | — | 490,888 | 432,710 | 98,991 | — | 531,701 | |||||||||||||||||||||||
Business services and wholesale | 713,240 | 301,431 | — | 1,014,671 | 689,708 | 277,995 | — | 967,703 | |||||||||||||||||||||||
Advertising | 276,343 | 53,541 | (9,338 | ) | 320,546 | 216,250 | 54,384 | (480 | ) | 270,154 | |||||||||||||||||||||
Other | 8,697 | 10,357 | — | 19,054 | 8,467 | 17,314 | — | 25,781 | |||||||||||||||||||||||
Total revenue | 5,058,709 | 2,062,297 | (9,338 | ) | 7,111,668 | 4,962,872 | 1,984,750 | (480 | ) | 6,947,142 | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||
Programming and other direct costs | 1,765,544 | 616,047 | (8,570 | ) | 2,373,021 | 1,710,245 | 562,079 | (177 | ) | 2,272,147 | |||||||||||||||||||||
Other operating expenses | 1,215,981 | 512,629 | (768 | ) | 1,727,842 | 1,277,204 | 492,576 | (303 | ) | 1,769,477 | |||||||||||||||||||||
Restructuring and other expense | 25,720 | 4,145 | — | 29,865 | 105,182 | 37,583 | — | 142,765 | |||||||||||||||||||||||
Depreciation and amortization | 1,337,051 | 490,234 | — | 1,827,285 | 1,641,501 | 497,299 | — | 2,138,800 | |||||||||||||||||||||||
Operating income | $ | 714,413 | $ | 439,242 | $ | — | $ | 1,153,655 | $ | 228,740 | $ | 395,213 | $ | — | $ | 623,953 |
Cablevision segment: | Three Months | Nine Months | |||||
Increase primarily in costs of digital media and linear advertising spots for resale | $ | 10,388 | $ | 32,881 | |||
Increase in programming costs due primarily to contractual rate increases, partially offset by lower pay television customers and lower video-on-demand and pay-per-view costs | 2,306 | 16,863 | |||||
Other net increases (including an increase of $1,400 and $2,666 in costs related to i24NEWS for the three and nine months, respectively) | 1,428 | 5,555 | |||||
14,122 | 55,299 |
Cequel segment: | |||||||
Increase in programming costs due primarily to contractual rate increases and new channel launches, partially offset by lower pay television customers and lower video-on-demand and pay-per-view costs | 21,965 | 52,187 | |||||
Other net increases (decreases) | (128 | ) | 1,781 | ||||
21,837 | 53,968 | ||||||
Inter-segment eliminations | (527 | ) | (8,393 | ) | |||
$ | 35,432 | $ | 100,874 |
Cablevision segment: | Three Months | Nine Months | |||||
Increase in labor costs and benefits (including costs related to i24NEWS of $6,197), partially offset by an increase in capitalizable activity for the three month period. Decrease in labor costs and benefits, net of costs of $12,609 related to i24NEWS, and an increase in capitalizable activity for the nine month period. | $ | 11,219 | $ | (67,413 | ) | ||
Decrease in insurance costs | (419 | ) | (8,351 | ) | |||
Decrease in management fee relating to certain executive, administrative and managerial services provided to Cablevision from Altice N.V. prior to separation in June 2018 | (5,000 | ) | (6,104 | ) | |||
Increase in marketing costs | 2,796 | 8,673 | |||||
Increase (decrease) in share-based compensation and long-term incentive plan awards expense | (2,059 | ) | 5,627 | ||||
Increase in commissions in connection with the New York Interconnect business | 3,868 | 4,620 | |||||
Increase (decrease) in repairs and maintenance costs relating to our operations | (594 | ) | 4,221 | ||||
Other net decrease | (8,347 | ) | (2,496 | ) | |||
1,464 | (61,223 | ) | |||||
Cequel segment: | |||||||
Decrease primarily in labor costs, partially offset by lower capitalizable activity | (2,417 | ) | (10,823 | ) | |||
Decrease in share-based compensation and long-term incentive plan awards expense | (885 | ) | (4,330 | ) | |||
Decrease in management fee relating to certain executive, administrative and managerial services provided to Cequel from Altice N.V. prior to separation in June 2018 | (2,500 | ) | (3,146 | ) | |||
Increase in marketing costs | 2,382 | 19,090 | |||||
Increase (decrease) in repairs and maintenance costs relating to our operations | (2,549 | ) | 2,691 | ||||
Other net increase | 3,217 | 16,571 | |||||
(2,752 | ) | 20,053 | |||||
Inter-segment eliminations | 247 | (465 | ) | ||||
$ | (1,041 | ) | $ | (41,635 | ) |
Three Months | Nine Months | ||||||
Decrease due to changes in average debt balances and interest rates on our indebtedness and collateralized debt | $ | (808 | ) | $ | (114,205 | ) | |
Higher interest income | (466 | ) | (8,470 | ) | |||
Other net increases, primarily amortization of deferred financing costs and original issue discounts | 11,336 | 38,870 | |||||
$ | 10,062 | $ | (83,805 | ) |
As of September 30, 2018 | |||||||||||
Cablevision | Cequel | Total | |||||||||
Debt outstanding: | |||||||||||
Credit facility debt | $ | 4,980,221 | $ | 1,241,272 | $ | 6,221,493 | |||||
Senior guaranteed notes | 3,284,419 | — | 3,284,419 | ||||||||
Senior secured notes | — | 2,573,423 | 2,573,423 | ||||||||
Senior notes and debentures | 6,686,729 | 2,811,167 | 9,497,896 | ||||||||
Subtotal | 14,951,369 | 6,625,862 | 21,577,231 | ||||||||
Capital lease obligations | 20,057 | 1,394 | 21,451 | ||||||||
Notes payable | 42,810 | 34,281 | 77,091 | ||||||||
Subtotal | 15,014,236 | 6,661,537 | 21,675,773 | ||||||||
Collateralized indebtedness relating to stock monetizations (a) | 1,400,398 | — | 1,400,398 | ||||||||
Total debt | $ | 16,414,634 | $ | 6,661,537 | $ | 23,076,171 | |||||
Interest expense: | Nine Months Ended September 30, 2018 | ||||||||||
Credit facility debt, senior notes, capital leases and notes payable | $ | 792,319 | $ | 317,218 | $ | 1,109,537 | |||||
Collateralized indebtedness relating to stock monetizations (a) | 47,858 | — | 47,858 | ||||||||
Total interest expense | $ | 840,177 | $ | 317,218 | $ | 1,157,395 |
(a) | This indebtedness is collateralized by shares of Comcast common stock. We intend to settle this debt by (i) delivering shares of Comcast common stock and the related equity contracts or (ii) delivering cash from the net proceeds on new monetization contracts. |
Maturity Date | Interest Rate | Principal | Carrying Value (a) | ||||||||
Cablevision: | |||||||||||
CSC Holdings Revolving Credit Facility (b) | $20,000 on October 9, 2020, remaining balance on November 30, 2021 | 5.40% | $ | 575,000 | $ | 554,908 | |||||
CSC Holdings Term Loan Facility | July 17, 2025 | 4.41% | 2,962,500 | 2,946,318 | |||||||
CSC Holdings Incremental Term Loan Facility | January 25, 2026 | 4.66% | 1,496,250 | 1,478,995 | |||||||
Cequel: | |||||||||||
Revolving Credit Facility (c) | $65,000 on November 30, 2021, and remaining balance on April 5, 2023 | —% | — | — | |||||||
Term Loan Facility | July 28, 2025 | 4.49% | 1,249,188 | 1,241,272 | |||||||
$ | 6,282,938 | $ | 6,221,493 |
(a) | Carrying amounts are net of unamortized discounts and deferred financing costs. |
(b) | At September 30, 2018, $139,929 of the revolving credit facility was restricted for certain letters of credit issued on behalf of the Company and $1,585,071 of the facility was undrawn and available, subject to covenant limitations. |
(c) | At September 30, 2018, $7,636 of the revolving credit facility was restricted for certain letters of credit issued on behalf of the Company and $342,364 of the facility was undrawn and available, subject to covenant limitations. |
Cablevision (a) | Cequel | Total | |||||||||
2018 | $ | 207,754 | $ | 139,353 | $ | 347,107 | |||||
2019 | 1,631,374 | 447,062 | 2,078,436 | ||||||||
2020 | 1,538,521 | 414,523 | 1,953,044 | ||||||||
2021 | 4,036,257 | 1,663,689 | 5,699,946 | ||||||||
2022 | 1,525,348 | 349,050 | 1,874,398 | ||||||||
Thereafter | 13,960,675 | 6,575,521 | 20,536,196 | ||||||||
Total | $ | 22,899,929 | $ | 9,589,198 | $ | 32,489,127 |
(a) | Includes $1,550,609 related to the Company's collateralized indebtedness (including related interest). This indebtedness is collateralized by shares of Comcast common stock. We intend to settle this debt by (i) delivering shares of Comcast common stock and the related equity contracts or (ii) delivering cash from the net proceeds on new monetization contracts. |
Three Months Ended September 30, | |||||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||||
Cablevision | Cequel | Total | Cablevision | Cequel | Total | ||||||||||||||||||
Customer premise equipment | $ | 72,970 | $ | 39,598 | $ | 112,568 | $ | 61,599 | $ | 26,552 | $ | 88,151 | |||||||||||
Network infrastructure | 87,492 | 42,304 | 129,796 | 50,534 | 21,391 | 71,925 | |||||||||||||||||
Support and other | 40,447 | 14,362 | 54,809 | 35,501 | 17,810 | 53,311 | |||||||||||||||||
Business services | 16,417 | 20,937 | 37,354 | 32,653 | 9,289 | 41,942 | |||||||||||||||||
Capital purchases (cash basis) | $ | 217,326 | $ | 117,201 | $ | 334,527 | $ | 180,287 | $ | 75,042 | $ | 255,329 | |||||||||||
Capital purchases (including accrued not paid) | $ | 262,095 | $ | 130,403 | $ | 392,498 | $ | 192,391 | $ | 90,656 | $ | 283,047 |
Nine Months Ended September 30, | |||||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||||
Cablevision | Cequel | Total | Cablevision | Cequel | Total | ||||||||||||||||||
Customer premise equipment | $ | 192,791 | $ | 81,179 | $ | 273,970 | $ | 161,440 | $ | 78,885 | $ | 240,325 | |||||||||||
Network infrastructure | 180,931 | 103,748 | 284,679 | 164,213 | 67,375 | 231,588 | |||||||||||||||||
Support and other | 107,507 | 46,815 | 154,322 | 102,553 | 39,882 | 142,435 | |||||||||||||||||
Business services | 73,254 | 46,599 | 119,853 | 77,646 | 26,925 | 104,571 | |||||||||||||||||
Capital purchases (cash basis) | $ | 554,483 | $ | 278,341 | $ | 832,824 | $ | 505,852 | $ | 213,067 | $ | 718,919 | |||||||||||
Capital purchases (including accrued not paid) | $ | 582,628 | $ | 303,577 | $ | 886,205 | $ | 466,760 | $ | 211,230 | $ | 677,990 |
Number of shares (a) | 16,139,868 | ||
Collateralized indebtedness settled | $ | (516,537 | ) |
Derivatives contracts settled | 24 | ||
(516,513 | ) | ||
Proceeds from new monetization contracts | 516,513 | ||
Net cash proceeds | $ | — |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Fair Value of Equity Derivative Contracts | |||
Fair value as of December 31, 2017, net liability position | $ | (109,504 | ) |
Change in fair value, net | 130,883 | ||
Fair value as of September 30, 2018, net asset position | $ | 21,379 |
Hedge Price | Cap Price (b) | |||||||||||
# of Shares Deliverable | Maturity | per Share (a) | Low | High | ||||||||
42,955,236 | 2021 | $29.25- $35.47 | $ | 43.88 | $ | 44.80 |
(a) | Represents the price below which we are provided with downside protection and above which we retain upside appreciation. Also represents the price used in determining the cash proceeds payable to us at inception of the contracts. |
(b) | Represents the price up to which we receive the benefit of stock price appreciation. |
(a) Total Number of Shares (or Units) Purchased | (b) Average Price Paid per Share (or Unit) | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs (1)(2) | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs (1) | ||||||||||
August 1 - August 31 | 6,307,121 | $ | 17.80 | 6,307,121 | $ | 1,887,712,634 | |||||||
September 1 - September 30 | 6,912,788 | 18.59 | 13,219,909 | 1,759,200,809 |
(1) | On June 8, 2018, the Company's Board of Directors authorized the repurchase of up to $2.0 billion of Altice USA Class A common stock. Under the repurchase program, shares of Altice USA Class A common stock may be purchased from time to time in the open market. The program does not have an expiration date and may be suspended at any time at the discretion of the Board of Directors. |
(2) | This column reflects the cumulative number of shares acquired pursuant to the repurchase program at the end of the respective period. |
EXHIBIT NO. | DESCRIPTION | |
Section 302 Certification of the CEO. | ||
Section 302 Certification of the CFO. | ||
Section 906 Certifications of the CEO and CFO. | ||
101 | The following financial statements from Altice USA's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2018 filed with the Securities and Exchange Commission on November 6, 2018, formatted in XBRL (eXtensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets; (ii) the Condensed Consolidated Statements of Operations; (iii) the Condensed Consolidated Statements of Comprehensive Income (Loss); (iv) the Condensed Consolidated Statement of Stockholders' Equity; (v) the Condensed Consolidated Statements of Cash Flows; and (vi) the Notes to Condensed Consolidated Financial Statements. |
ALTICE USA, INC. | ||||
Date: | November 6, 2018 | /s/ Charles Stewart | ||
By: | Charles Stewart as Co-President and Chief Financial Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Altice USA, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(c) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | November 6, 2018 | By: | /s/ Dexter Goei | |
Dexter Goei | ||||
Chief Executive Officer and Director |
1. | I have reviewed this Quarterly Report on Form 10-Q of Altice USA, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(c) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | November 6, 2018 | By: | /s/ Charles Stewart | |
Charles Stewart | ||||
Co-President and Chief Financial Officer |
Date: | November 6, 2018 | By: | /s/ Dexter Goei | |
Dexter Goei | ||||
Chief Executive Officer and Director | ||||
Date: | November 6, 2018 | By: | /s/ Charles Stewart | |
Charles Stewart | ||||
Co-President and Chief Financial Officer |
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Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Nov. 02, 2018 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Altice USA, Inc. | |
Entity Central Index Key | 0001702780 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Entity Common Stock, Shares Outstanding | 715,100,411 |
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Income Statement [Abstract] | ||||
Revenue from affiliates | $ 545 | $ 426 | $ 1,397 | $ 820 |
Programming and other direct costs from affiliates | 1,671 | 1,196 | 6,690 | 3,026 |
Other operating expenses, net | 905 | 8,302 | 15,154 | 24,266 |
Interest expense to related parties and affiliates | 0 | 0 | 0 | (90,405) |
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 9) | 0 | (38,858) | (41,616) | (600,240) |
Related Party Transaction, Loss on Extinguishment of Debt of Deferred Financing Costs | $ 0 | $ 0 | $ 0 | $ 513,723 |
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 9 months ended Sep. 30, 2018 - USD ($) $ in Thousands |
Total |
Total Stockholders' Equity |
Paid-in Capital |
Retained Earnings |
Accumulated Other Comprehensive Loss |
Non-controlling Interest |
Common Class A
Common Stock
|
Common Class B [Member]
Common Stock
|
ATS Acquisition |
ATS Acquisition
Total Stockholders' Equity
|
ATS Acquisition
Paid-in Capital
|
ATS Acquisition
Retained Earnings
|
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dividends | $ (1,499,935) | $ (1,499,935) | $ (963,711) | $ (536,224) | ||||||||
Payments for Repurchase of Common Stock | 240,799 | 240,799 | 240,666 | 0 | $ 0 | $ 0 | $ (133) | $ 0 | ||||
Acquisitionofi24 | 14,369 | 14,369 | (61,049) | (73,578) | (1,840) | |||||||
Beginning balance (As Reported) at Dec. 31, 2017 | 5,495,840 | 5,494,301 | 4,642,128 | 854,824 | (10,022) | 1,539 | 2,470 | 4,901 | ||||
Beginning balance (Restatement Adjustment) | $ (3,753) | $ (3,753) | $ 23,101 | $ (26,854) | ||||||||
Beginning balance (Restatement Adjustment, Impact of ASC 606) | 12,666 | 12,666 | 12,666 | |||||||||
Beginning balance at Dec. 31, 2017 | 5,504,753 | 5,503,214 | 4,665,229 | 840,636 | (10,022) | 1,539 | 2,470 | 4,901 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net loss attributable to stockholders | (194,253) | (194,253) | (194,253) | |||||||||
Net loss attributable to noncontrolling interests | 1,039 | 1,039 | ||||||||||
Proceeds from (Payments to) Noncontrolling Interests | 5,995 | 5,995 | ||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss) Due to Settlements, Net of Tax | 10,748 | |||||||||||
Pension liability adjustments, net of income taxes | 11,734 | |||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 986 | |||||||||||
Share-based compensation expense | 46,176 | 46,176 | 46,176 | |||||||||
Redeemable equity vested | (72,924) | (72,924) | (72,924) | |||||||||
Other changes to equity | (859) | (859) | (859) | 0 | ||||||||
Adoption of ASU No. 2018-02 | 2,163 | (2,163) | ||||||||||
Ending balance at Sep. 30, 2018 | 3,670,973 | 3,662,400 | 3,618,709 | $ 38,744 | $ (2,291) | $ 8,573 | 5,107 | 2,131 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Class B Shares Exchanged fro Class A | 0 | $ 2,770 | $ (2,770) | |||||||||
Redeemable Equity Vested | $ 124,415 | $ 124,415 | $ 124,415 |
DESCRIPTION OF BUSINESS AND RELATED MATTERS |
9 Months Ended |
---|---|
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND RELATED MATTERS | DESCRIPTION OF BUSINESS AND RELATED MATTERS The Company and Related Matters Altice USA, Inc. ("Altice USA" or the "Company") was incorporated in Delaware on September 14, 2015. Prior to the Altice N.V. distribution discussed below, Altice USA was majority-owned by Altice N.V., a public company with limited liability (naamloze vennootshcap) under Dutch law. Since the completion of the Altice N.V. distribution discussed below, the Company is no longer majority-owned by Altice N.V. Altice N.V. changed its name to Altice Europe N.V. ("Altice Europe") upon completion of the distribution. The Company provides broadband communications and video services in the United States. It delivers broadband, pay television, telephony services, proprietary content and advertising services to residential and business customers. Altice N.V., through a subsidiary, acquired Cequel Corporation ("Cequel" or "Suddenlink") on December 21, 2015 (the "Cequel Acquisition") and Cequel was contributed to Altice USA on June 9, 2016. Altice USA acquired Cablevision Systems Corporation ("Cablevision" or "Optimum") on June 21, 2016 (the "Cablevision Acquisition"). The Company classifies its operations into two reportable segments: Cablevision, which operates in the New York metropolitan area, and Cequel, which principally operates in markets in the south-central United States. The accompanying condensed combined consolidated financial statements ("condensed consolidated financial statements") include the accounts of the Company and all subsidiaries in which the Company has a controlling interest and gives effect to the ATS Acquisition and the i24 Acquisition discussed below on a combined basis. All significant inter-company accounts and transactions have been eliminated in consolidation. The accompanying condensed consolidated operating results for the three and nine months ended September 30, 2017 reflect the retrospective adoption of Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers and ASU No. 2017-07 Compensation-Retirement Benefits (Topic 715). See Note 3 for further details of the impact on the Company's historical financial statements. In June 2017, the Company completed its initial public offering ("IPO") of 71,724,139 shares of its Class A common stock. The Company’s Class A common stock began trading on June 22, 2017, on the New York Stock Exchange under the symbol "ATUS". Acquisition of Altice Technical Services US Corp ATS was formed in 2017 to provide network construction and maintenance services and commercial and residential installations, disconnections, and maintenance. During the second quarter of 2017, a substantial portion of the Company's technical workforce at the Cablevision segment either accepted employment with ATS or became employees of ATS and ATS commenced operations and began to perform services for the Company. A substantial portion of the Cequel segment technical workforce became employees of ATS in December 2017. In January 2018, the Company acquired 70% of the equity interests in Altice Technical Services US Corp. ("ATS") for $1.00 (the "ATS Acquisition") and the Company became the owner of 100% of the equity interests in ATS in March 2018. ATS was previously owned by Altice N.V. and a member of ATS's management through a holding company. As the acquisition was a combination of businesses under common control, the Company combined the results of operations and related assets and liabilities of ATS for all periods since its formation. See Note 3 for the impact of the ATS Acquisition on the Company's condensed consolidated balance sheet as of December 31, 2017 and on the Company's statement of operations for the three and nine months ended September 30, 2017. Acquisition of i24NEWS In April 2018, Altice N.V. transferred its ownership of i24 US and i24 Europe ("i24NEWS"), Altice N.V.'s 24/7 international news and current affairs channels to the Company for minimal consideration (the "i24 Acquisition"). As the acquisition was a combination of businesses under common control, the Company combined the results of operations and related assets and liabilities of i24NEWS as of April 1, 2018. Operating results for periods prior to April 1, 2018 and the balance sheet as of December 31, 2017 have not been revised to reflect the i24 Acquisition as the impact was deemed immaterial. Altice N.V. Distribution On June 8, 2018, Altice N.V. distributed substantially all of its equity interest in the Company through a distribution in kind to holders of Altice N.V.'s common shares A and common shares B (the “Distribution”). The Distribution took place by way of a special distribution in kind by Altice N.V. of its 67.2% interest in the Company to Altice N.V. shareholders. Each shareholder of Altice N.V. on May 23, 2018, the Distribution record date, received 0.4163 shares of the Company's common stock for every share held by such shareholder in Altice N.V. Between May 24, 2018 and June 4, 2018, each Altice N.V. shareholder was given the opportunity to elect the percentage of shares of the Company's Class A common stock and shares of the Company's Class B common stock such shareholder would receive in the Distribution, whereby the number of shares of the Company's Class B common stock to be distributed was subject to a cap of 50% of the total shares of the Company's common stock being distributed (the “Class B Cap”). Because the Class B Cap had been exceeded, the shares of the Company's Class B common stock delivered to Altice N.V.’s shareholders of record who elected to receive them were subject to proration, and such shareholders received shares of the Company's Class A common stock. Immediately following the Distribution, there were 489,384,523 shares of Altice USA Class A common stock and 247,684,443 shares of Altice USA Class B common stock outstanding. Prior to Altice N.V.'s announcement of the Distribution, the Board of Directors of Altice USA, acting through its independent directors, approved the payment of a $2.035 dividend to all shareholders of record on May 22, 2018. The payment of the dividend, aggregating $1,499,935, was made on June 6, 2018, and was funded with cash at CSC Holdings LLC, a wholly-owned subsidiary of Cablevision, from financings completed in January 2018, and cash generated from operations at Cequel. In connection with the payment of the dividend, the Company recorded a decrease in retained earnings of $536,224, representing the cumulative earnings through the payment date, and a decrease in paid in capital of $963,711. In connection with the Distribution, the Management Advisory and Consulting Services Agreement with Altice N.V. which provided certain consulting, advisory and other services was terminated. Compensation under the terms of the agreement was an annual fee of $30,000 paid by the Company. In addition, the Board of Directors of Altice USA also authorized a share repurchase program of $2.0 billion, effective June 8, 2018. Under the repurchase program, shares of Altice USA Class A common stock may be purchased from time to time in the open market and may include trading plans entered into with one or more brokerage firms in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934. Size and timing of these purchases will be determined based on market conditions and other factors. From inception through September 30, 2018, the Company repurchased an aggregate of 13,219,909 shares for a total purchase price of approximately $240,799. These acquired shares were retired and the cost for these shares was recorded in paid in capital in the Company's condensed consolidated balance sheet. As of September 30, 2018, the Company had approximately $1,759,201 of availability remaining under its stock repurchase program and had 723,849,057 combined Class A and Class B shares outstanding. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
9 Months Ended |
---|---|
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these financial statements do not include all the information and notes required for complete annual financial statements. The interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 and the Company's financial statements and notes thereto included on Form 8-K filed on May 21, 2018. The financial statements presented in this report are unaudited; however, in the opinion of management, such financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results for the periods presented. The results of operations for the interim periods are not necessarily indicative of the results that might be expected for future interim periods or for the full year ending December 31, 2018. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Recently Adopted Accounting Pronouncements In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The primary provision of ASU No. 2018-02 allows for the reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. ASU No. 2018-02 also requires certain disclosures about stranded tax effects. ASU No. 2018-02 is effective for the Company on January 1, 2019, with early adoption permitted and will be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company elected to adopt ASU No. 2018-02 during the first quarter of 2018. The adoption resulted in the reclassification of stranded tax amounts of $2,163 associated with net unrecognized losses from the Company's pension plans from accumulated other comprehensive loss to retained earnings. In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718). ASU No. 2017-09 provides clarity and guidance on which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. ASU No. 2017-09 was adopted by the Company on January 1, 2018 and it had no impact to the Company's condensed consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, Compensation-Retirement Benefits (Topic 715). ASU No. 2017-07 requires that an employer disaggregate the service cost component from the other components of net benefit cost. It also provides guidance on how to present the service cost component and the other components of net benefit cost in the income statement and what component of net benefit cost is eligible for capitalization. ASU No. 2017‑07 was adopted by the Company on January 1, 2018 and was applied retrospectively. As a result of the adoption, the Company reclassified the non-service cost components of the Company's pension expense for the three and nine months ended September 30, 2017 from other operating expenses to other income (expense), net. The Company elected to apply the practical expedient which allowed it to reclassify amounts disclosed previously in the benefits plan note as the basis for applying retrospective presentation for comparative periods, as the Company determined it was impracticable to disaggregate the cost components for amounts capitalized and amortized in those periods. See Note 3 for information on the impact of the adoption of ASU No. 2017-07. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business, which amends Topic 805 to interpret the definition of a business by adding guidance to assist in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The Company adopted the new guidance on January 1, 2018 and it had no impact to the Company's condensed consolidated financial statements. In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, in order to clarify the Codification and to correct any unintended application of the guidance. The amendments in this update affected the guidance in ASC 606. ASC 606 was adopted by the Company on January 1, 2018 on a full retrospective basis, which required the Company to reflect the impact of the updated guidance for all periods presented. The adoption of ASC 606 did not have a material impact on the Company’s financial position or results of operations. See Note 3 for information on the impact of the adoption of ASC 606. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires that the statement of cash flows disclose the change during the period in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. Restricted cash should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of period total amounts shown on the statement of cash flows. ASU No. 2016-18 provides specific guidance on the presentation of restricted cash in the statement of cash flows. ASU No. 2016-18 was adopted by the Company on January 1, 2018 and was applied retrospectively for all periods presented. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments which clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows. ASU No. 2016-15 also clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. The Company adopted the new guidance on January 1, 2018 and it had no impact to the Company's condensed consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities. ASU No. 2016-01 modifies how entities measure certain equity investments and also modifies the recognition of changes in the fair value of financial liabilities measured under the fair value option. Entities will be required to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income. For financial liabilities measured using the fair value option, entities will be required to record changes in fair value caused by a change in instrument-specific credit risk (own credit risk) separately in other comprehensive income. ASU No. 2016-01 was adopted by the Company on January 1, 2018 and it had no impact to the Company's condensed consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers ("ASC 606"), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASC 606 replaced most existing revenue recognition guidance in GAAP (See Note 3). Recently Issued But Not Yet Adopted Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-14, Changes to the Disclosure Requirements for Defined Benefit Plans, which amends ASC 715 to clarify certain disclosure requirements related to defined benefit pension and other postretirement plans. ASU 2018-14 becomes effective for the Company on January 1, 2022, although early adoption is permitted. The Company does not expect the adoption of ASU 2017-14 to have a material impact on its consolidated financial statements. Also in August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs in a Cloud Computing Arrangement That Is a Service Contract, which requires upfront implementation costs incurred in a cloud computing arrangement (or hosting arrangement) that is a service contract to be amortized to hosting expense over the term of the arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. ASU No. 2018-14 becomes effective for the Company on January 1, 2020, although early adoption is permitted. The Company is currently in the process of evaluating the impact that the adoption of ASU No. 2018-15 will have on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350). ASU No. 2017-04 simplifies the subsequent measurement of goodwill by removing the second step of the two‑step impairment test. The amendment requires an entity to perform its annual, or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU No. 2017-04 becomes effective for the Company on January 1, 2020 with early adoption permitted and will be applied prospectively. In February 2016, the FASB issued ASU No. 2016-02, Leases, which increases transparency and comparability by recognizing a lessee’s rights and obligations resulting from leases by recording them on the balance sheet as lease assets and lease liabilities. The new guidance becomes effective for the Company on January 1, 2019. Although the Company has not yet completed its evaluation of the guidance, or quantified its impact, the Company believes the most significant impact will be the recognition of right of use assets and liabilities on its consolidated balance sheet. The Company expects its lease obligations designated as operating leases will be reported on the consolidated balance sheets upon adoption. The Company is also evaluating other potential lease arrangements of the business, including arrangements that have been previously disclosed as a contractual commitment. The Company is currently in the process of collecting and validating lease data and implementing a software solution. In addition, the Company is assessing practical expedients and policy elections offered by the standard, and is evaluating its processes and internal controls to meet the accounting, reporting and disclosure requirements. Reclassifications Certain reclassifications have been made to the 2017 financial statements to conform to the 2018 presentation. |
CHANGE IN ACCOUNTING POLICIES AND ATS ACQUISITION |
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Accounting Changes and Error Corrections [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CHANGE IN ACCOUNTING POLICIES AND ATS ACQUISITION | CHANGE IN ACCOUNTING POLICIES AND ATS ACQUISITION Adoption of ASC 606 - Revenue from Contracts with Customers On January 1, 2018, the Company adopted the guidance pursuant to ASC 606. The Company elected to apply the guidance on a full retrospective basis, which required the Company to reflect the impact of the updated guidance for all periods presented. The adoption of the guidance resulted in the deferral of certain installation revenue, the deferral of certain commission expenses, and a reduction of revenue due to the reclassification of certain third party giveaways and incentives from operating expense. Additionally, the Company made changes in the composition of revenue resulting from the allocation of value related to bundled services sold to residential customers at a discount. Installation Services Revenue Pursuant to ASC 606, the Company's installation services revenue is deferred and recognized over the benefit period. For residential customers, the benefit period is less than one year. For business and wholesale customers, the benefit period is the contract term. Prior to the adoption of ASC 606, the Company recognized installation services revenue for residential and small and medium-sized business ("SMB") customers when installations were completed. As a result of the deferral of installation services revenue for residential and SMB customers, the Company recognized contract liabilities of $6,978 and recorded a cumulative effect adjustment of $5,093 (net of tax of $1,885) to retained earnings. The accounting for installation services revenue related to business and wholesale customers has not changed. Commission Expenses Pursuant to ASC 606, the Company defers commission expenses related to obtaining a contract with a customer when the expected period of benefit is greater than one year and amortizes these costs over the average contract term. For commission expenses related to customer contracts with a term of one year or less, the Company is utilizing the practical expedient and is recognizing the costs when incurred. Prior to the adoption of ASC 606, the Company recognized commission expenses related to the sale of its services when incurred. As a result of the change in the timing of recognition of these commission expenses, the Company recognized contract assets of $24,329 and recorded a cumulative effect adjustment of $17,759 (net of tax of $6,570) to retained earnings. Third Party Product Giveaways and Incentives When the Company acts as the agent in providing certain product giveaways or incentives, revenue is recorded net of the costs of the giveaways and incentives. For the three and nine months ended September 30, 2017, costs of $4,094 and $13,490, respectively for the giveaways and incentives recorded in other operating expense have been reclassified to revenue. Bundled Services The Company provides bundled services at a discounted rate to its customers. Under ASC 606, revenue should be allocated to separate performance obligations within a bundled offering based on the relative stand-alone selling price of each service within the bundle. In connection with the adoption of ASC 606, the Company revised the amounts allocated to each performance obligation within its bundled offerings which reduced previously reported revenue for telephony services and increased previously reported revenue allocated to pay television and broadband services. Adoption of ASU No. 2017-07 - Compensation-Retirement Benefits (Topic 715) On January 1, 2018, the Company adopted the guidance pursuant to ASU No. 2017‑07. ASU No. 2017‑07 requires that an employer disaggregate the service cost component from the other components of net benefit cost. In connection with the adoption of ASU No. 2017‑07, the Company retroactively reclassified certain pension costs from other operating expenses to other income (expense), net. The adoption of ASU No. 2017-07 had no impact on the Company's condensed consolidated balance sheet. Acquisition of ATS As discussed in Note 1, the Company completed the ATS Acquisition in the first quarter of 2018. ATS was previously owned by Altice N.V. and a member of ATS's management through a holding company. As the acquisition is a combination of businesses under common control, the Company combined the results of operations and related assets and liabilities of ATS for all periods since the formation of ATS, including goodwill of $23,101, representing the amount previously transferred to ATS. The following table summarizes the impact of adopting ASC 606 and the impact of the ATS Acquisition on the Company's condensed consolidated balance sheet:
The following table summarizes the impact of adopting ASC 606 and ASU No. 2017-07 and the impact of the ATS Acquisition on the Company's condensed consolidated statements of operations:
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NET LOSS PER SHARE ATTRIBUTABLE TO STOCKHOLDERS |
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Earnings Per Share [Abstract] | |
NET LOSS PER SHARE ATTRIBUTABLE TO STOCKHOLDERS | NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO STOCKHOLDERS Basic net income (loss) per common share attributable to Altice USA stockholders is computed by dividing net income (loss) attributable to Altice USA stockholders by the weighted average number of common shares outstanding during the period. Diluted income per common share attributable to Altice USA stockholders reflects the dilutive effects of stock options. For such awards that are performance based, the diluted effect is reflected upon the achievement of the performance criteria. Diluted net loss per common share attributable to Altice USA excludes the effects of common stock equivalents as they are anti-dilutive. Anti-dilutive shares (options whose exercise price exceeds the average market price of the Company's common stock during the period) totaling approximately 5,841,000 shares, have been excluded from diluted weighted average shares outstanding when calculating diluted net income per share attributable to Altice USA stockholders for the three months ended September 30, 2018. In addition, approximately 73,000 performance based options for the three months ended September 30, 2018, issued pursuant to the Company's employee stock plan have also been excluded from the diluted weighted average shares outstanding as the performance criteria on these awards had not yet been satisfied for the respective period. The weighted average number of shares used to compute basic and diluted net loss per share for the nine months ended September 30, 2017 reflect the retroactive impact of certain organizational transactions that occurred prior to the Company's IPO. |
REVENUE AND CONTRACT ASSETS |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE AND CONTRACT ASSETS | REVENUE AND CONTRACT ASSETS Revenue Recognition Residential Services The Company derives revenue through monthly charges to residential customers of its pay television, broadband, and telephony services, including installation services. In addition, the Company derives revenue from digital video recorder ("DVR"), video-on-demand ("VOD"), pay-per-view, home shopping commissions and equipment fees which are reflected in "Residential pay TV" revenues. The Company recognizes pay television, broadband, and telephony revenues as the services are provided to a customer on a monthly basis. Revenue from the sale of bundled services at a discounted rate is allocated to each product based on the standalone selling price of each performance obligation within the bundled offer. The relative standalone selling price requires judgment and is typically determined based on the current prices at which the separate services are sold by the Company. Installation revenue for the Company's residential services is deferred and recognized over the benefit period, which is estimated to be less than one year. The estimated benefit period takes into account both quantitative and qualitative factors including the significance of average installation fees to total recurring revenue per customer. The Company is assessed non-income related taxes by governmental authorities, including franchising authorities (generally under multi-year agreements), and collects such taxes from its customers. In instances where the tax is being assessed directly on the Company, amounts paid to the governmental authorities are recorded as programming and other direct costs and amounts received from the customers are recorded as revenue. For the three and nine months ended September 30, 2018 the amount of franchise fees and certain other taxes and fees included as a component of revenue aggregated $63,703 and $190,895, respectively. For the three and nine months ended September 30, 2017 the amount of franchise fees and certain other taxes and fees included as a component of revenue aggregated $64,254 and $194,045, respectively. Business and Wholesale Services The Company derives revenue from the sale of products and services to both large enterprise and SMB customers, including broadband, telephony, networking, and pay television services reflected in "Business services and wholesale" revenues. The Company's business services also include Ethernet, data transport, and IP-based virtual private networks. The Company also provides managed services to businesses, including hosted telephony services (cloud based SIP-based private branch exchange), managed Wi-Fi, managed desktop and server backup and managed collaboration services including audio and web conferencing. The Company also offers fiber-to-the-tower services to wireless carriers for cell tower backhaul and enable wireline communications service providers to connect to customers that their own networks do not reach. The Company recognizes revenues for these services as the services are provided to a customer on a monthly basis. Substantially all of our SMB customers are billed monthly and large enterprise customers are billed in accordance with the terms of their contracts which is typically also on a monthly basis. Contracts with large enterprise customers typically range from three to five years. Installation revenue related to our large enterprise customers is deferred and recognized over the average contract term. Installation revenue related to SMB customers is deferred and recognized over the benefit period, which is less than a year. The estimated benefit period for SMB customers takes into account both quantitative and qualitative factors including the significance of average installation fees to total recurring revenue per customer. Advertising As part of the agreements under which the Company acquires pay television programming, the Company typically receives an allocation of scheduled advertising time during such programming into which the Company's cable systems can insert commercials. In several of the markets in which the Company operates, it has entered into agreements commonly referred to as interconnects with other cable operators to jointly sell local advertising. In some of these markets, the Company represents the advertising sales efforts of other cable operators; in other markets, other cable operators represent the Company. Advertising revenues are recognized when commercials are aired. Arrangements in which the Company controls the sale of advertising and acts as the principal to the transaction, the Company recognizes revenue earned from the advertising customer on a gross basis and the amount remitted to the distributor as an operating expense. Arrangements in which the Company does not control the sale of advertising and acts as an agent to the transaction, the Company recognizes revenue net of any fee remitted to the distributor. The Company's advanced advertising businesses provide data-driven, audience-based advertising solutions using advanced analytics tools that provide granular measurement of consumer groups, accurate hyper-local ratings and other insights into target audience behavior not available through traditional sample-based measurement services. Revenue earned from the Company's advanced advertising businesses are recognized when services are provided. Other Revenues derived from other sources are recognized when services are provided or events occur. Contract Assets Incremental costs incurred in obtaining a contract with a customer are deferred and recorded as a contract asset if the period of benefit is expected to be greater than one year. Sales commissions for enterprise and certain SMB customers are deferred and amortized over the average contract term. For sales commission expenses related to residential and SMB customers with a term of one year or less, the Company is utilizing the practical expedient and is recognizing the costs when incurred. Cost of fulfilling a contract with a customer are deferred and recorded as a contract asset if they generate or enhance resources of the Company that will be used in satisfying future performance obligations and are expected to be recovered. Installation costs related to residential and SMB customers that are not capitalized as part of the initial deployment of new customer premise equipment are expensed as incurred pursuant to industry-specific guidance. The following table provides information about contracts assets and contract liabilities related to contracts with customers:
A significant portion of our revenue is derived from residential and SMB customer contracts which are month-to month. As such, the amount of revenue related to unsatisfied performance obligations is not necessarily indicative of the future revenue to be recognized from our existing customer base. Contracts with enterprise and wholesale customers generally range from three to five years, and services may only be terminated in accordance with the contractual terms. |
SUPPLEMENTAL CASH FLOW INFORMATION |
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SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION The Company considers the balance of its investment in funds that substantially hold securities that mature within three months or less from the date the fund purchases these securities to be cash equivalents. The carrying amount of cash and cash equivalents either approximates fair value due to the short-term maturity of these instruments or are at fair value. The Company's non-cash investing and financing activities and other supplemental data were as follows:
The Company’s previously reported statement of cash flows for the three months ended March 31, 2017 reflected distributions to stockholders of $79,617 in cash flows from operating activities. These distributions should have been reflected in cash flows from financing activities. |
RESTRUCTURING COSTS AND OTHER EXPENSE |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING COSTS AND OTHER EXPENSE | RESTRUCTURING COSTS AND OTHER EXPENSE Restructuring Beginning in the first quarter of 2016, the Company commenced restructuring initiatives that were intended to simplify the Company's organizational structure.
The Company recorded restructuring charges of $52,081 and $141,078 for the three and nine months ended September 30, 2017 relating to these restructuring initiatives. Cumulative costs to date relating to these initiatives amounted to $327,521 and $71,162 for our Cablevision and Cequel segments, respectively. Transaction Costs The Company incurred transaction costs of $1,920 and $7,682 for the three and nine months ended September 30, 2018 relating to the Distribution discussed in Note 1 and $1,367 and $1,687 for the three and nine months ended September 30, 2017 related to the acquisition of a business. |
INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INTANGIBLE ASSETS | INTANGIBLE ASSETS The following table summarizes information relating to the Company's acquired amortizable intangible assets:
Amortization expense for the three and nine months ended September 30, 2018 aggregated $208,172 and $666,041, respectively, and for the three and nine months ended September 30, 2017 aggregated $426,419 and $981,657, respectively. The following table summarizes information relating to the Company's acquired indefinite-lived intangible assets:
The carrying amount of goodwill is presented below:
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DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT | DEBT The following table provides details of the Company's outstanding credit facility debt:
In January 2018, CSC Holdings borrowed $150,000 under its revolving credit facility and entered into a new $1,500,000 incremental term loan facility (the "Incremental Term Loan") under its existing credit facilities agreement. The Incremental Term Loan was priced at 99.5% and will mature on January 25, 2026. The Incremental Term Loan is comprised of eurodollar borrowings or alternate base rate borrowings, and bears interest at a rate per annum equal to the adjusted LIBO rate or the alternate base rate, as applicable, plus the applicable margin, where the applicable margin is (i) with respect to any alternate base rate loan, 1.50% per annum and (ii) with respect to any eurodollar loan, 2.50% per annum. The Company made a voluntary repayment of $600,000 under the CSC Holdings revolving credit facility in January 2018. On March 22, 2018, Altice US Finance I Corporation, an indirect wholly-owned subsidiary of the Company, entered into a Fourth Amendment to the Cequel Credit Agreement (Extension Amendment), by and among the borrower, the Revolving Consent Lenders (as defined in the Fourth Amendment) and JPMorgan Chase Bank, N.A., as administrative agent for the lenders (the “Fourth Amendment”). The Fourth Amendment amends and supplements the Borrower’s credit agreement, dated as of June 12, 2015, as amended by the first amendment (refinancing amendment), dated as of October 25, 2016, the second amendment (extension amendment), dated as of December 9, 2016, and the third amendment (incremental loan assumption agreement and refinancing amendment), dated as of March 15, 2017, as so amended and as may be further amended, restated, modified or supplemented from time to time and as further amended by the Fourth Amendment among, inter alios, the borrower, the lenders party thereto and the administrative agent. The Fourth Amendment extends the maturity date of the revolving loans and/or commitments of the Revolving Consent Lenders to April 5, 2023. The Fourth Amendment and the extended maturity date will not apply to the revolving loans and/or commitments of revolving lenders under the Cequel Credit Agreement that are not Revolving Consent Lenders. In July 2018, the Company borrowed $575,000 under the CSC Holdings revolving credit facility agreement and used a portion of the proceeds to repay the $500,000 principal amount of senior notes due July 15, 2018. As of September 30, 2018, the Company was in compliance with all of its financial covenants under the CSC Holdings credit facilities agreement and the Cequel credit facilities agreement. Senior Guaranteed Notes, Senior Secured Notes and Senior Notes and Debentures The following table summarizes the Company's senior guaranteed notes, senior secured notes and senior notes and debentures:
In January 2018, CSC Holdings issued $1,000,000 aggregate principal amount of 5.375% senior guaranteed notes due February 1, 2028 (the "2028 Guaranteed Notes"). The 2028 Guaranteed Notes are senior unsecured obligations and rank pari passu in right of payment with all of the existing and future senior indebtedness, including the existing senior notes and the CVC Credit Facilities and rank senior in right of payment to all of existing and future subordinated indebtedness. The proceeds from the 2028 Guaranteed Notes, together with proceeds from the Incremental Term Loan (discussed above), borrowings under the CVC revolving credit facility and cash on hand, were used in February 2018 to repay $300,000 principal amount of CSC Holdings' senior notes due in February 2018 and $750,000 principal amount of Cablevision senior notes due in April 2018 and a portion was used to fund the dividend of $1,499,935 to the Company's stockholders immediately prior to and in connection with the Distribution discussed in Note 1. In connection with the redemption of Cablevision senior notes, the Company paid a call premium of approximately $7,019, which was recorded as a loss on extinguishment of debt and also recorded a write-off of the unamortized premium of $2,314. In April 2018, Cequel Communications Holdings I, LLC and Cequel Capital Corporation each an indirect, wholly owned subsidiary of the Company, issued $1,050,000 aggregate principal amount of 7.50% senior notes due April 1, 2028 (the "2028 Senior Notes"). The proceeds of these notes were used in April 2018 to redeem the $1,050,000 aggregate principal amount 6 3/8% senior notes due September 15, 2020. In connection with the redemption of these notes, the Company paid a call premium of approximately $16,737, which was recorded as a loss on extinguishment of debt and also recorded a write-off of deferred financings costs aggregating $20,173. The indentures under which the senior notes and debentures were issued contain various covenants. The Company was in compliance with all of its financial covenants under these indentures as of September 30, 2018. Notes Payable to Affiliates and Related Parties On June 21, 2016, in connection with the Cablevision acquisition, the Company issued notes payable to affiliates and related parties aggregating $1,750,000, of which $875,000 bore interest at 10.75% and matured on December 20, 2023 and $875,000 bore interest at 11% and matured on December 20, 2024. In connection with the Company's IPO in June 2017, the Company converted the notes payable to affiliates and related parties (together with accrued and unpaid interest of $529 and applicable premium of $513,723) into shares of the Company’s common stock at the IPO price. The premium was recorded as a loss on extinguishment of debt on the Company's statement of operations in the second quarter of 2017. In connection with the conversion of the notes, the Company recorded a credit to paid in capital of $2,264,252 in the second quarter of 2017. For the nine months ended September 30, 2017, the Company recognized $90,405 of interest expense related to these notes prior to their conversion. Summary of Debt Maturities The future maturities of debt payable by the Company under its various debt obligations outstanding as of September 30, 2018, including notes payable, collateralized indebtedness (see Note 10), and capital leases, are as follows:
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DERIVATIVE CONTRACTS AND COLLATERALIZED INDEBTEDNESS |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE CONTRACTS AND COLLATERALIZED INDEBTEDNESS | DERIVATIVE CONTRACTS AND COLLATERALIZED INDEBTEDNESS Prepaid Forward Contracts The Company has entered into various transactions to limit the exposure against equity price risk on its shares of Comcast Corporation ("Comcast") common stock. The Company has monetized all of its stock holdings in Comcast through the execution of prepaid forward contracts, collateralized by an equivalent amount of the respective underlying stock. At maturity, the contracts provide for the option to deliver cash or shares of Comcast stock with a value determined by reference to the applicable stock price at maturity. These contracts, at maturity, are expected to offset declines in the fair value of these securities below the hedge price per share while allowing the Company to retain upside appreciation from the hedge price per share to the relevant cap price. The Company received cash proceeds upon execution of the prepaid forward contracts discussed above which has been reflected as collateralized indebtedness in the accompanying condensed consolidated balance sheets. In addition, the Company separately accounts for the equity derivative component of the prepaid forward contracts. These equity derivatives have not been designated as hedges for accounting purposes. Therefore, the net fair values of the equity derivatives have been reflected in the accompanying condensed consolidated balance sheets as an asset or liability and the net increases or decreases in the fair value of the equity derivative component of the prepaid forward contracts are included in gain (loss) on derivative contracts in the accompanying condensed consolidated statements of operations. All of the Company's monetization transactions are obligations of its wholly-owned subsidiaries that are not part of the Restricted Group; however, CSC Holdings has provided guarantees of the subsidiaries' ongoing contract payment expense obligations and potential payments that could be due as a result of an early termination event (as defined in the agreements). If any one of these contracts were terminated prior to its scheduled maturity date, the Company would be obligated to repay the fair value of the collateralized indebtedness less the sum of the fair values of the underlying stock and equity collar, calculated at the termination date. As of September 30, 2018, the Company did not have an early termination shortfall relating to any of these contracts. The Company monitors the financial institutions that are counterparties to its equity derivative contracts. All of the counterparties to such transactions carry investment grade credit ratings as of September 30, 2018. Interest Rate Swap Contracts In May 2018, the Company entered into two interest rate swap contracts that mature in April 2019 whereby one contract converts the interest rate on $2,970,000 of the CSC Holdings Term Loan Facility from a one-month LIBO rate to a three-month LIBO rate minus 0.226% and the second contract converts the interest rate on $1,496,250 of the CSC Holdings Incremental Term Loan from a one-month LIBO rate to a three-month LIBO rate minus 0.226%. The objective of these swaps is to potentially pay a lower interest rate than what the Company can elect under the terms of the CSC Holdings credit facilities agreement. In April 2018, the Company entered into an interest rate swap contract that matures in May 2019 which converts the interest rate on $1,255,513 of the Cequel Term Loan B from a one-month LIBO rate to a three-month LIBO rate minus 0.225%. The objective of this swap is to potentially pay a lower interest rate than what the Company can elect under the terms of the Cequel credit facilities agreement. In June 2016, the Company entered into two fixed to floating interest rate swap contracts that mature in May 2026. One fixed to floating interest rate swap is converting $750,000 from a fixed rate of 1.6655% to a six-month LIBO rate and a second tranche of $750,000 from a fixed rate of 1.68% to a six-month LIBO rate. The objective of these swaps is to adjust the proportion of total debt that is subject to fixed and variable interest rates. These swap contracts were not designated as hedges for accounting purposes. Accordingly, the changes in the fair value of these interest rate swap contracts are recorded through the statements of operations. The Company does not hold or issue derivative instruments for trading or speculative purposes. The following represents the location of the assets and liabilities associated with the Company's derivative instruments within the condensed consolidated balance sheets:
Gains (losses) from the Company's derivative contracts related to the Comcast common stock for the three and nine months ended September 30, 2018 of $(79,628) and $130,883, respectively, are reflected in gain (loss) on derivative contracts, net in the Company's condensed consolidated statement of operations. For the three and nine months ended September 30, 2018, the Company recorded a gain (loss) on investments of $111,684 and $(199,312), respectively, representing the net increase (decrease) in the fair values of the investment securities pledged as collateral. For the three and nine months ended September 30, 2018, the Company recorded a loss on interest rate swap contracts of $19,554 and $64,405, respectively. Settlements of Collateralized Indebtedness The following table summarizes the settlement of the Company's collateralized indebtedness relating to Comcast shares that were settled by delivering cash equal to the collateralized loan value, net of the value of the related equity derivative contracts during the nine months ended September 30, 2018:
The cash to settle the collateralized indebtedness was obtained from the proceeds of new monetization contracts covering an equivalent number of Comcast shares. The terms of the new contracts allow the Company to retain upside participation in Comcast shares up to each respective contract's upside appreciation limit with downside exposure limited to the respective hedge price. |
FAIR VALUE MEASUREMENT |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity's pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels:
The following table presents for each of these hierarchy levels, the Company's financial assets and financial liabilities that are measured at fair value on a recurring basis:
The Company's cash equivalents, investment securities and investment securities pledged as collateral are classified within Level I of the fair value hierarchy because they are valued using quoted market prices. The Company's derivative contracts and liabilities under derivative contracts on the Company's balance sheets are valued using market-based inputs to valuation models. These valuation models require a variety of inputs, including contractual terms, market prices, yield curves, and measures of volatility. When appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads and credit risk considerations. Such adjustments are generally based on available market evidence. Since model inputs can generally be verified and do not involve significant management judgment, the Company has concluded that these instruments should be classified within Level II of the fair value hierarchy. The fair value of the contingent consideration as of September 30, 2018 related to the acquisitions in the third quarter of 2018 and fourth quarter of 2017 amounted to approximately $4,500 and $2,233, respectively. The estimated amount recorded as of September 30, 2018 is 100% of the contractual amount related to the acquisition in the third quarter 2018 and 51% of the contractual amount related to the acquisition in the fourth quarter 2017. The fair value of the consideration was estimated based on a probability assessment of attaining the targets as of September 30, 2018. Fair Value of Financial Instruments The following methods and assumptions were used to estimate fair value of each class of financial instruments for which it is practicable to estimate: Credit Facility Debt, Collateralized Indebtedness, Senior Notes and Debentures, Senior Secured Notes, Senior Guaranteed Notes, and Notes Payable The fair values of each of the Company's debt instruments are based on quoted market prices for the same or similar issues or on the current rates offered to the Company for instruments of the same remaining maturities. The fair value of notes payable is based primarily on the present value of the remaining payments discounted at the borrowing cost. The carrying values, estimated fair values, and classification under the fair value hierarchy of the Company's financial instruments, excluding those that are carried at fair value in the accompanying condensed consolidated balance sheets, are summarized as follows:
The fair value estimates related to the Company's debt instruments presented above are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgments and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair Value of Non-financial Assets and Liabilities The Company’s non-financial assets such as cable-television franchises, property, plant, and equipment, other intangible assets and cost-method investments, are not measured at fair value on a recurring basis, however, they are subject to fair value adjustments whenever events or circumstances indicate that the carrying amount of these assets may not be recoverable. No material impairments were recorded during the three and nine months ended September 30, 2018 and 2017. |
INCOME TAXES |
9 Months Ended |
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Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES In general, the Company is required to use an estimated annual effective tax rate ("AETR") to measure the income tax expense or benefit recognized on a year to date basis in an interim period. In addition, certain items included in income tax expense as well as the tax impact of certain items included in pretax income must be treated as discrete items. The income tax expense or benefit associated with these discrete items is fully recognized in the interim period in which the items occur. The Company recorded income tax expense of $95,968 and $29,675 for the three and nine months ended September 30, 2018, respectively. Included in the income tax expense for each period was tax expense of $49,052 as a result of the revaluation of the Company's deferred tax liability in connection with tax law changes in the State of New Jersey. Absent this item, the effective tax rate for the three months ended September 30, 2018 would have been 36%. For the nine months ended September 30, 2018, the tax benefit was more than offset by the $49,052 expense recorded in the period. The tax expense was calculated based upon the actual effective tax rate for the year-to-date period. The Company determined this to represent the best estimate of the annual effective tax rate in light of the magnitude of the expected income and the significant permanent differences. Pursuant to the enactment of the Tax Cuts & Jobs Act ("Tax Reform"), effective on January 1, 2018, the corporate federal income tax rate was reduced to 21% from 35%. The Company is subject to Tax Reform’s limitation on interest deductibility which is based on a limit calculated without regard to depreciation or amortization through 2021. The resulting interest deduction that is deferred can be carried forward indefinitely. Nevertheless, as is the case with any future deductible temporary difference, management will continue to evaluate realizability to determine whether a valuation allowance is required as a result of these limitations. Therefore a valuation allowance may need to be recorded in the future subject to the relative levels of future interest expense versus taxable income. The Company recorded income tax benefit of $141,550 and $439,945 for the three and nine months ended September 30, 2017, reflecting the AETR of approximately 42% and 37%, respectively. As of September 30, 2018, the Company's federal net operating losses (“NOLs”) were approximately $2,419,000. The utilization of certain pre-merger NOLs of Cablevision and Cequel are limited pursuant to Internal Revenue Code Section 382. The Company does not expect such limitations to impact the ability to utilize the NOLs prior to their expiration. |
SHARE BASED COMPENSATION |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE BASED COMPENSATION | SHARE BASED COMPENSATION Certain employees of the Company and its affiliates received awards of units in a carry unit plan of Neptune Management LP, an entity which has an ownership interest in the Company. The awards generally vest as follows: 50% on the second anniversary of June 21, 2016 for Cablevision employees or December 21, 2015 for Cequel employees ("Base Date"), 25% on the third anniversary of the Base Date, and 25% on the fourth anniversary of the Base Date. Neptune Holding US GP LLC, the general partner of Neptune Management LP, has the right to repurchase (or to assign to an affiliate, including the Company, the right to repurchase) vested awards held by employees for sixty days following their termination. For performance-based awards under the plan, vesting occurs upon achievement or satisfaction of a specified performance condition. The Company considered the probability of achieving the established performance targets in determining the share-based compensation with respect to these awards at the end of each reporting period. Beginning on the fourth anniversary of the Base Date, the holders of carry units have an annual opportunity (a sixty day period determined by the administrator of the plan) to sell their units back to Neptune Holding US GP LLC (or affiliate, including the Company, designated by Neptune Holding US GP LLC). Accordingly, the carry units are presented as temporary equity on the consolidated balance sheets at fair value. Adjustments to fair value at each reporting period are recorded in paid-in capital. The right of Neptune Holding US GP LLC to assign to an affiliate, including the Company, the right to repurchase an employee’s vested units during the sixty-day period following termination, or to satisfy its obligation to repurchase an employee’s vested units during annual 60 day periods following the fourth anniversary of the Base Date, may be exercised by Neptune Holding US GP LLC in its discretion at the time a repurchase right or obligation arises. The carry unit plan requires the purchase price payable to the employee or former employee, as the case may be, to be paid in cash, a promissory note (with a term of not more than 3 years and bearing interest at the long-term applicable federal rate under Section 1274(d) of the Internal Revenue Code) or combination thereof, in each case as determined by Neptune Holding US GP LLC in its discretion at the time of the repurchase. Neptune Holding US GP LLC expects that vested units will be redeemed for shares of the Company's Class A common stock upon vesting. The following table summarizes activity relating to carry units:
The weighted average fair value per unit was $2.28 and $2.50 as of September 30, 2018 and December 31, 2017, respectively. For the three and nine months ended September 30, 2018, the Company recognized an expense of $7,510 and $33,004 related to the push down of share-based compensation expense related to the carry unit plan. For the three and nine months ended September 30, 2017, the Company recognized an expense of $15,005 and $40,932 related to the push down of share-based compensation related to the carry unit plan. Stock Option Plan The following table summarizes activity related to employee stock options for the nine months ended September 30, 2018:
The Company recognized share based compensation expense related to employee stock options for the three and nine months ended September 30, 2018 of $4,817 and $13,172, respectively. The following weighted-average assumptions were used to calculate the fair values of stock option awards granted during the nine months ended September 30, 2018:
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AFFILIATE AND RELATED PARTY TRANSACTIONS |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AFFILIATE AND RELATED PARTY TRANSACTIONS | AFFILIATE AND RELATED PARTY TRANSACTIONS Equity Method Investments In April 2018, Altice N.V. transferred its ownership of i24 US and i24 Europe ('i24NEWS"), Altice N.V.'s 24/7 international news and current affairs channels to the Company for minimal consideration (the "i24NEWS Acquisition"). As the acquisition was a combination of businesses under common control, the Company combined the results of operations and related assets and liabilities of i24NEWS as of April 1, 2018. Operating results for periods prior to April 1, 2018 and the balance sheet as of December 31, 2017 have not been revised to reflect the combination of i24NEWS as the impact was deemed immaterial. The Company's equity in the net losses of i24NEWS prior to April 1, 2018 of $1,130 for the nine months ended September 30, 2018 and $541 and $3,126 for three and nine months ended September 30, 2017 were recorded using the equity method and reflected in other expense, net in the Company's statements of operations. The Company's investment in i24NEWS as of December 31, 2017 of $930 is included in investment in affiliates on the Company's condensed consolidated balance sheet. In April 2018, the Company redeemed a 24% interest in Newsday LLC ("Newsday") and recognized a gain of $13,298, reflected in gain (loss) on investments and sale of affiliate interests, net in the Company's statements of operations. For the nine months ended September 30, 2018, the Company recorded equity in the net loss of Newsday of $9,719. For the three and nine months ended September 30, 2017, the Company recorded equity in net loss of Newsday of $1,034 and $2,571, respectively, reflected in other expense, net in the Company's statements of operations. The Company's deficit investment in Newsday as of December 31, 2017 of $3,579 is included in deficit investment in affiliates on the Company's condensed consolidated balance sheets. Affiliate and Related Party Transactions Altice USA is controlled by Patrick Drahi who is also the controlling stockholder of Altice Europe (formerly Altice N.V.) and its subsidiaries. As the transactions discussed below were conducted between entities under common control by Mr. Drahi and equity method investees, amounts charged for certain services may not have represented amounts that might have been received or incurred if the transactions were based upon arm's length negotiations. The following table summarizes the revenue and charges related to services provided to or received from subsidiaries of Altice Europe and Newsday:
Revenue The Company recognized revenue primarily in connection with the sale of advertising to Newsday. Programming and other direct costs Programming and other direct costs include costs incurred by the Company for the transport and termination of voice and data services provided by a subsidiary of Altice Europe. Other operating expenses A subsidiary of Altice Europe provided certain executive services, as well as consulting, advisory and other services, including, prior to the IPO, CEO, CFO and COO services, to the Company. Compensation under the terms of the agreement was an annual fee of $30,000 to be paid by the Company. Fees associated with this agreement recorded by the Company amounted to approximately $13,250 for the nine months ended September 30, 2018 and $7,500 and $22,500 for the three and nine months ended September 30, 2017, respectively. As of June 20, 2017, the CEO, CFO and COO became employees of the Company and the agreement was assigned to Altice Europe. by a subsidiary of Altice Europe. This agreement was terminated upon the completion of the Distribution discussed in Note 1. Other operating expenses also include charges for services provided by other subsidiaries of Altice Europe aggregating $905 and $1,904 for the three and nine months ended September 30, 2018 and $802 and $1,766 for the three and nine months ended September 30, 2017, respectively, net of credits of $76 and $917 for the three and nine months ended September 30, 2017, for transition services provided to Newsday. Capital Expenditures Capital expenditures include $3,945 and $6,679 for the three and nine months ended September 30, 2018 and $3,549 and $12,914, for the three and nine months ended September 30, 2017, respectively, for equipment purchases and software development services provided by subsidiaries of Altice Europe. Aggregate amounts that were due from and due to related parties are summarized below:
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COMMITMENTS AND CONTINGENCIES |
9 Months Ended |
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Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal Matters Following expiration of the affiliation agreements for carriage of certain Fox broadcast stations and cable networks on October 16, 2010, News Corporation terminated delivery of the programming feeds to Cablevision, and as a result, those stations and networks were unavailable on Cablevision's cable television systems. On October 30, 2010, Cablevision and Fox reached an agreement on new affiliation agreements for these stations and networks, and carriage was restored. Several purported class action lawsuits alleging breach of contract, unjust enrichment, and consumer fraud and seeking unspecified compensatory damages, punitive damages and attorneys' fees were subsequently filed on behalf of Cablevision's customers seeking recovery for the lack of Fox programming. Those lawsuits were consolidated in an action before the U. S. District Court for the Eastern District of New York, and a consolidated complaint was filed in that court on February 22, 2011. On March 28, 2012, in ruling on Cablevision's motion to dismiss, the Court dismissed all of plaintiffs’ claims, except for breach of contract. On March 30, 2014, the Court granted plaintiffs’ motion for class certification. The parties have entered into a settlement agreement, which was granted final approval by the Court on May 17, 2018. As of December 31, 2017, the Company had an estimated liability associated with a potential settlement totaling $6,000. The amount ultimately paid in connection with the proposed settlement could exceed the amount recorded. In October 2015, the New York Attorney General began an investigation into whether the major Internet Service Providers in New York State deliver advertised Internet speeds. The Company is cooperating with this investigation and is currently in discussions with the New York Attorney General about resolving the investigation as to the Company, which resolution may involve operational and or financial components. While the Company is unable to predict the outcome of the investigation or these discussions, at this time it does not expect that the outcome will have a material adverse effect on its operations, financial conditions or cash flows. The Company receives notices from third parties and, in some cases, is named as a defendant in certain lawsuits claiming infringement of various patents relating to various aspects of the Company's businesses. In certain of these cases other industry participants are also defendants. In certain of these cases the Company expects that any potential liability would be the responsibility of the Company's equipment vendors pursuant to applicable contractual indemnification provisions. In the event that the Company is found to infringe on any patent rights, the Company may be subject to substantial damages and/or an injunction that could require the Company or its vendors to modify certain products and services the Company offers to its subscribers, as well as enter into royalty or license agreements with respect to the patents at issue. The Company believes that the claims are without merit, but is unable to predict the outcome of these matters or reasonably estimate a range of possible loss. In addition to the matters discussed above, the Company is party to various lawsuits, disputes and investigations, some of which may involve claims for substantial damages, fines or penalties. Although the outcome of these other matters cannot be predicted and the impact of the final resolution of these other matters on the Company's results of operations in a particular subsequent reporting period is not known, management does not believe that the resolution of these other lawsuits will have a material adverse effect on the financial position of the Company or the ability of the Company to meet its financial obligations as they become due. |
SEGMENT INFORMATION |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION The Company classifies its operations into two reportable segments: Cablevision and Cequel. The Company's reportable segments are strategic business units that are managed separately. The Company evaluates segment performance based on several factors, of which the primary financial measure is business segment Adjusted EBITDA, a non-GAAP measure. The Company defines Adjusted EBITDA as net income (loss) excluding income taxes, income (loss) from discontinued operations, non-operating other income or expenses, loss on extinguishment of debt and write-off of deferred financing costs, gain (loss) on interest rate swap contracts, gain (loss) on derivative contracts, gain (loss) on investments, interest expense (including cash interest expense), interest income, depreciation and amortization (including impairments), share-based compensation expense or benefit, restructuring expense or credits and transaction expenses. The Company has presented the components that reconcile Adjusted EBITDA to operating income, an accepted GAAP measure:
A reconciliation of reportable segment amounts to the Company's condensed consolidated balances are as follows:
The following tables present the composition of revenue by reportable segment:
(a) Reflects revenue recognized by Cablevision from the sale of services to Cequel. Capital expenditures (cash basis) by reportable segment are presented below:
Primarily all revenues and assets of the Company's reportable segments are attributed to or located in the United States. Total assets by segment are not provided as such amounts are not regularly reviewed by the chief operating decision makers for purposes of decision making regarding resource allocations. |
SUBSEQUENT EVENT |
9 Months Ended |
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Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENTS Revolver Repayment On October 15, 2018, CSC Holdings made a voluntary repayment under its revolving credit facility of $125,000. Incremental CSC Holdings Term Loan Facility In October 2018, in connection with its intention to combine the Cequel and Cablevision businesses under a single credit silo, the Company commenced an exchange of senior and senior secured notes (see below) and successfully entered into a new $1,275,000 7-year senior secured term loan maturing January 2026 (the “Senior Secured Term Loan B”), providing for the refinancing of the entire principal amount of loans under Cequel’s existing Term Loan Facility and other transaction costs related to the credit silo combination. The new Senior Secured Term Loan B will have a margin of 2.25% over LIBOR and was issued with an original issue discount of 25 basis points. Senior Notes Exchange On October 2, 2018, Cequel, Cequel Capital and Altice US Finance I Corporation (the "Issuers"), commenced offers to exchange (the "Exchange Offers") any and all outstanding senior notes and senior secured notes issued by them (the "Original Notes") for up to $5,520,000 aggregate principal amount of new notes (the "New Notes") and, in the case of the 5.375% secured notes due 2023 and 5.500% secured notes due 2026, cash. These New Notes will be automatically converted into new CSC Holdings notes upon satisfaction (or waiver) of certain conditions set forth in the Exchange Offers. Additionally, in connection with the Exchange Offers, the Issuers solicited consents to amend each of the Original Notes, except the 5.125% Notes due 2021, and the indentures governing such notes. The proposed amendments, which require the consent of a majority in outstanding aggregate principal amount of each series of relevant Original Notes, respectively, will eliminate or waive substantially all of the restrictive covenants, eliminate certain events of default, and modify or eliminate certain other provisions. Each of the Exchange Offers is subject to the condition that there have been validly tendered and not validly withdrawn a majority of the outstanding aggregate principal amount of each of the 5.375% Secured Notes due 2023 and 5.500% Secured Notes due 2026 (the “Minimum Tender Condition”). Eligible holders who validly tendered and did not validly withdraw Original Notes on October 16, 2018 (the "Early Tender Time") received for each $1,000 principal amount of Original Notes tendered and accepted by the applicable Issuer, $1,000 principal amount of New Notes, plus, in the case of the 5.375% secured notes due 2023 and 5.500% secured notes due 2026, at least $2.50 in cash. Eligible holders who didn't validly tender Original Notes after the Early Tender Time, but prior to October 30, 2018 received for each $1,000 principal amount of Original Notes tendered and accepted by the applicable Issuer, $950 principal amount of New Notes. In connection with the Early Tender Time described above, the Issuers exchanged $1,232,328 aggregate principal amount of the 5.125% Senior Notes due 2021, $610,698 aggregate principal amount of the 7.750% Senior Notes due 2025, $1,045,443 aggregate principal amount of the 7.500% Senior Notes due 2028, $1,095,493 aggregate principal amount of the 5.375% Senior Secured Notes due 2023 and $1,495,642 aggregate principal amount of the 5.500% Senior Secured Notes due 2026. For the period subsequent to the Early Tender Time through October 30, 2018, the Issuers exchanged $8,786 aggregate principal amount of the 5.125% Senior Notes due 2021, $7,562 aggregate principal amount of the 7.750% Senior Notes due 2025, $439 aggregate principal amount of the 7.500% Senior Notes due 2028, $350 aggregate principal amount of the 5.375% Senior Secured Notes due 2023 and $3,309 aggregate principal amount of the 5.500% Senior Secured Notes due 2026. The principal amount of the unexchanged Original Notes include $8,886 aggregate principal amount of the 5.125% Senior Notes due 2021, $1,740 aggregate principal amount of the 7.750% Senior Notes due 2025, $4,118 aggregate principal amount of the 7.500% Senior Notes due 2028, $4,157 aggregate principal amount of the 5.375% Senior Secured Notes due 2023 and $1,049 aggregate principal amount of the 5.500% Senior Secured Notes due 2026. Deferred financing costs and unamortized discounts related to the Cequel term loan, senior notes and secured senior notes aggregated $143,326 at September 30, 2018. The Company is evaluating whether the term loan refinancing and the exchange of notes is deemed an extinguishment of debt and whether any of these costs will be written off in the fourth quarter of 2018. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Pronouncements and Recently Issued But Not Yet Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The primary provision of ASU No. 2018-02 allows for the reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. ASU No. 2018-02 also requires certain disclosures about stranded tax effects. ASU No. 2018-02 is effective for the Company on January 1, 2019, with early adoption permitted and will be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company elected to adopt ASU No. 2018-02 during the first quarter of 2018. The adoption resulted in the reclassification of stranded tax amounts of $2,163 associated with net unrecognized losses from the Company's pension plans from accumulated other comprehensive loss to retained earnings. In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718). ASU No. 2017-09 provides clarity and guidance on which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. ASU No. 2017-09 was adopted by the Company on January 1, 2018 and it had no impact to the Company's condensed consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, Compensation-Retirement Benefits (Topic 715). ASU No. 2017-07 requires that an employer disaggregate the service cost component from the other components of net benefit cost. It also provides guidance on how to present the service cost component and the other components of net benefit cost in the income statement and what component of net benefit cost is eligible for capitalization. ASU No. 2017‑07 was adopted by the Company on January 1, 2018 and was applied retrospectively. As a result of the adoption, the Company reclassified the non-service cost components of the Company's pension expense for the three and nine months ended September 30, 2017 from other operating expenses to other income (expense), net. The Company elected to apply the practical expedient which allowed it to reclassify amounts disclosed previously in the benefits plan note as the basis for applying retrospective presentation for comparative periods, as the Company determined it was impracticable to disaggregate the cost components for amounts capitalized and amortized in those periods. See Note 3 for information on the impact of the adoption of ASU No. 2017-07. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business, which amends Topic 805 to interpret the definition of a business by adding guidance to assist in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The Company adopted the new guidance on January 1, 2018 and it had no impact to the Company's condensed consolidated financial statements. In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, in order to clarify the Codification and to correct any unintended application of the guidance. The amendments in this update affected the guidance in ASC 606. ASC 606 was adopted by the Company on January 1, 2018 on a full retrospective basis, which required the Company to reflect the impact of the updated guidance for all periods presented. The adoption of ASC 606 did not have a material impact on the Company’s financial position or results of operations. See Note 3 for information on the impact of the adoption of ASC 606. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires that the statement of cash flows disclose the change during the period in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. Restricted cash should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of period total amounts shown on the statement of cash flows. ASU No. 2016-18 provides specific guidance on the presentation of restricted cash in the statement of cash flows. ASU No. 2016-18 was adopted by the Company on January 1, 2018 and was applied retrospectively for all periods presented. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments which clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows. ASU No. 2016-15 also clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. The Company adopted the new guidance on January 1, 2018 and it had no impact to the Company's condensed consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities. ASU No. 2016-01 modifies how entities measure certain equity investments and also modifies the recognition of changes in the fair value of financial liabilities measured under the fair value option. Entities will be required to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income. For financial liabilities measured using the fair value option, entities will be required to record changes in fair value caused by a change in instrument-specific credit risk (own credit risk) separately in other comprehensive income. ASU No. 2016-01 was adopted by the Company on January 1, 2018 and it had no impact to the Company's condensed consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers ("ASC 606"), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASC 606 replaced most existing revenue recognition guidance in GAAP (See Note 3). Recently Issued But Not Yet Adopted Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-14, Changes to the Disclosure Requirements for Defined Benefit Plans, which amends ASC 715 to clarify certain disclosure requirements related to defined benefit pension and other postretirement plans. ASU 2018-14 becomes effective for the Company on January 1, 2022, although early adoption is permitted. The Company does not expect the adoption of ASU 2017-14 to have a material impact on its consolidated financial statements. Also in August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs in a Cloud Computing Arrangement That Is a Service Contract, which requires upfront implementation costs incurred in a cloud computing arrangement (or hosting arrangement) that is a service contract to be amortized to hosting expense over the term of the arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. ASU No. 2018-14 becomes effective for the Company on January 1, 2020, although early adoption is permitted. The Company is currently in the process of evaluating the impact that the adoption of ASU No. 2018-15 will have on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350). ASU No. 2017-04 simplifies the subsequent measurement of goodwill by removing the second step of the two‑step impairment test. The amendment requires an entity to perform its annual, or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU No. 2017-04 becomes effective for the Company on January 1, 2020 with early adoption permitted and will be applied prospectively. In February 2016, the FASB issued ASU No. 2016-02, Leases, which increases transparency and comparability by recognizing a lessee’s rights and obligations resulting from leases by recording them on the balance sheet as lease assets and lease liabilities. The new guidance becomes effective for the Company on January 1, 2019. Although the Company has not yet completed its evaluation of the guidance, or quantified its impact, the Company believes the most significant impact will be the recognition of right of use assets and liabilities on its consolidated balance sheet. The Company expects its lease obligations designated as operating leases will be reported on the consolidated balance sheets upon adoption. The Company is also evaluating other potential lease arrangements of the business, including arrangements that have been previously disclosed as a contractual commitment. The Company is currently in the process of collecting and validating lease data and implementing a software solution. In addition, the Company is assessing practical expedients and policy elections offered by the standard, and is evaluating its processes and internal controls to meet the accounting, reporting and disclosure requirements. |
CHANGE IN ACCOUNTING POLICIES AND ATS ACQUISITION (Tables) |
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Accounting Changes and Error Corrections [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of New Accounting Pronouncements | The following table summarizes the impact of adopting ASC 606 and the impact of the ATS Acquisition on the Company's condensed consolidated balance sheet:
The following table summarizes the impact of adopting ASC 606 and ASU No. 2017-07 and the impact of the ATS Acquisition on the Company's condensed consolidated statements of operations:
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REVENUE AND CONTRACT ASSETS (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables, Contracts Assets and Contract Liabilities Related To Contracts With Customers | The following table provides information about contracts assets and contract liabilities related to contracts with customers:
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SUPPLEMENTAL CASH FLOW INFORMATION (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Cash Investing and Financing Activities and Other Supplemental Data | The Company's non-cash investing and financing activities and other supplemental data were as follows:
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RESTRUCTURING COSTS AND OTHER EXPENSE (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost Activity |
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INTANGIBLE ASSETS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The following table summarizes information relating to the Company's acquired amortizable intangible assets:
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Schedule of Indefinite-Lived Intangible Assets | The following table summarizes information relating to the Company's acquired indefinite-lived intangible assets:
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Schedule of Goodwill | The carrying amount of goodwill is presented below:
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DEBT (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Line of Credit Facilities | The following table provides details of the Company's outstanding credit facility debt:
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Schedule of Long-term Debt Instruments | The following table summarizes the Company's senior guaranteed notes, senior secured notes and senior notes and debentures:
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Schedule of Maturities of Long-term Debt | The future maturities of debt payable by the Company under its various debt obligations outstanding as of September 30, 2018, including notes payable, collateralized indebtedness (see Note 10), and capital leases, are as follows:
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DERIVATIVE CONTRACTS AND COLLATERALIZED INDEBTEDNESS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Settlement of Collateralized Indebtedness [Table Text Block] | The following table summarizes the settlement of the Company's collateralized indebtedness relating to Comcast shares that were settled by delivering cash equal to the collateralized loan value, net of the value of the related equity derivative contracts during the nine months ended September 30, 2018:
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Location of Assets and Liabilities Associated With Derivative Instruments Within the Condensed Consolidated Balance Sheets | The following represents the location of the assets and liabilities associated with the Company's derivative instruments within the condensed consolidated balance sheets:
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FAIR VALUE MEASUREMENT (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents for each of these hierarchy levels, the Company's financial assets and financial liabilities that are measured at fair value on a recurring basis:
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Schedule of Carrying Values and Estimated Fair Values of Debt Instruments |
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SHARE BASED COMPENSATION (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity for Shares | The following table summarizes activity relating to carry units:
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Stock Option Activity | The following table summarizes activity related to employee stock options for the nine months ended September 30, 2018:
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Aggregate Assumptions Used to Calculated the Fair Values of Stock Options | The following weighted-average assumptions were used to calculate the fair values of stock option awards granted during the nine months ended September 30, 2018:
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RELATED PARTY TRANSACTIONS (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of related party transactions | Aggregate amounts that were due from and due to related parties are summarized below:
The following table summarizes the revenue and charges related to services provided to or received from subsidiaries of Altice Europe and Newsday:
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SEGMENT INFORMATION (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reconciliation of Adjusted EBITDA to Operating Income (Loss) | The Company has presented the components that reconcile Adjusted EBITDA to operating income, an accepted GAAP measure:
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Reconciliation of Reportable Segment Amounts to Cablevision's and CSC Holdings' Consolidated Balances | A reconciliation of reportable segment amounts to the Company's condensed consolidated balances are as follows:
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Schedule of Revenue by Products and Services and Segments | The following tables present the composition of revenue by reportable segment:
(a) Reflects revenue recognized by Cablevision from the sale of services to Cequel. |
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Capital Expenditures by Reportable Segment | Capital expenditures (cash basis) by reportable segment are presented below:
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 9 Months Ended |
---|---|---|---|
Mar. 31, 2018 |
Jun. 30, 2018 |
Sep. 30, 2018 |
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Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Adoption of ASU No. 2018-02 | $ 2,163 | $ 2,163 | |
Accumulated Other Comprehensive Loss | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Adoption of ASU No. 2018-02 | $ (2,163) | $ (2,163) |
NET LOSS PER SHARE ATTRIBUTABLE TO STOCKHOLDERS Dilutive shares (Details) |
3 Months Ended |
---|---|
Sep. 30, 2018
shares
| |
Earnings Per Share [Abstract] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 5,841,000 |
Incremental Common Shares Attributable To Restricted Stock Awards | 73,000 |
REVENUE AND CONTRACT ASSETS - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
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Disaggregation of Revenue [Line Items] | ||||
Franchise fees and other taxes and fees | $ 63,703 | $ 64,254 | $ 190,895 | $ 194,045 |
Minimum | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract term | 3 years | |||
Maximum | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract term | 5 years |
REVENUE AND CONTRACT ASSETS - Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 25,806 | $ 24,329 |
Deferred revenue | $ 173,956 | $ 117,679 |
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Mar. 31, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
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Supplemental Cash Flow Elements [Abstract] | |||
Payments of Dividends | $ 79,617 | $ 1,499,935 | $ 919,317 |
Debt Conversion, Converted Instrument, Amount | 0 | 2,264,252 | |
Continuing Operations: | |||
Property and equipment accrued but unpaid | 166,800 | 84,847 | |
Notes payable issued to vendor for the purchase of equipment | 49,780 | 25,879 | |
Capital lease obligations | 8,162 | 0 | |
Leasehold improvements paid by landlord | 350 | 3,998 | |
Repurchase of shares that were not settled | 13,996 | ||
Supplemental Data: | |||
Cash interest paid | 1,174,154 | 1,481,363 | |
Income taxes paid, net | $ 12,148 | $ 26,396 |
INTANGIBLE ASSETS - Summary of Acquired Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
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Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Amortization of Intangible Assets | $ 208,172 | $ 426,419 | $ 666,041 | $ 981,657 | |
Cable television franchises | 13,020,081 | 13,020,081 | $ 13,020,081 | ||
Goodwill | 8,012,416 | 8,012,416 | 8,019,861 | ||
Total | 21,032,497 | 21,032,497 | 21,039,942 | ||
Cablevision | |||||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Cable television franchises | 8,113,575 | 8,113,575 | 8,113,575 | ||
Goodwill | 5,873,716 | 5,873,716 | 5,866,120 | ||
Total | 13,987,291 | 13,987,291 | 13,979,695 | ||
Cequel | |||||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Cable television franchises | 4,906,506 | 4,906,506 | 4,906,506 | ||
Goodwill | 2,138,700 | 2,138,700 | 2,153,741 | ||
Total | $ 7,045,206 | $ 7,045,206 | $ 7,060,247 |
INTANGIBLE ASSETS - Goodwill (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2018
USD ($)
| |
Goodwill [Line Items] | |
Goodwill, Acquired During Period | $ 7,608 |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 8,019,861 |
Adjustments to purchase accounting relating to Cablevision Acquisition | (12) |
Goodwill, ending balance | 8,012,416 |
As Reported | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 7,996,760 |
ATS Acquisition | Restatement Adjustment | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 23,101 |
Suddenlink [Member] | |
Goodwill [Roll Forward] | |
Adjustments to purchase accounting relating to Cablevision Acquisition | $ (15,041) |
DEBT - Summary of Debt Maturities (Details) $ in Thousands |
Sep. 30, 2018
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
2018 | $ 37,124 |
2020 | 642,209 |
2021 | 563,116 |
2022 | 4,346,621 |
2021 | 709,886 |
Thereafter | 17,281,404 |
Cablevision | |
Debt Instrument [Line Items] | |
2018 | 30,678 |
2020 | 598,210 |
2021 | 550,396 |
2022 | 3,083,892 |
2021 | 697,147 |
Thereafter | 11,815,174 |
Cequel Corp. [Member] | |
Debt Instrument [Line Items] | |
2018 | 6,446 |
2020 | 43,999 |
2021 | 12,720 |
2022 | 1,262,729 |
2021 | 12,739 |
Thereafter | $ 5,466,230 |
FAIR VALUE MEASUREMENT - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value Measured on a Recurring Basis - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Level III | ||
Liabilities: | ||
Contingent consideration related to 2017 and 2018 acquisitions | $ 6,733 | $ 32,233 |
Prepaid forward contracts | Level II | ||
Assets: | ||
Derivative asset | 31,510 | 52,545 |
Liabilities: | ||
Derivative liability | 10,131 | 162,049 |
Interest rate swap contracts | Level II | ||
Assets: | ||
Derivative asset | 3,269 | 0 |
Liabilities: | ||
Derivative liability | 143,719 | 77,902 |
Investment securities pledged as collateral | Level I | ||
Assets: | ||
Investment securities | 1,521,045 | 1,720,357 |
Money market funds | Level I | ||
Assets: | ||
Cash and cash equivalents | $ 296,123 | $ 5,949 |
INCOME TAXES (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ 95,968 | $ (141,550) | $ 29,675 | $ (439,945) |
Change in Tax Law | 49,052 | |||
Effective tax rate (percent) | 42.00% | 37.00% | ||
Federal | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | $ 2,419,000 | $ 2,419,000 |
SHARE BASED COMPENSATION - Stock Options Valuation Assumptions (Details) |
9 Months Ended |
---|---|
Sep. 30, 2018
$ / shares
| |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Risk-free interest rate | 2.77% |
Expected life (in years) | 6 years 5 months 22 days |
Dividend yield | 0.00% |
Volatility | 35.23% |
Grant date fair value (in dollars per share) | $ 7.12 |
AFFILIATE AND RELATED PARTY TRANSACTIONS - Revenue and Related Charges (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Related Party Transactions [Abstract] | ||||
Revenue | $ 545 | $ 426 | $ 1,397 | $ 820 |
Operating expenses: | ||||
Programming and other direct costs | (1,671) | (1,196) | (6,690) | (3,026) |
Other operating expenses, net | (905) | (8,302) | (15,154) | (24,266) |
Operating expenses, net | (2,576) | (9,498) | (21,844) | (27,292) |
Related Party Transaction, Loss on Extinguishment of Debt of Deferred Financing Costs | 0 | 0 | 0 | (513,723) |
Interest expense | 0 | 0 | 0 | (90,405) |
RelatedPartyTransaction,MiscExpense | 0 | 149 | ||
Net charges | (2,031) | (9,072) | (20,298) | (630,600) |
Capital expenditures | $ 3,945 | $ 3,549 | $ 6,679 | $ 12,914 |
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands |
Dec. 31, 2017
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Estimated litigation liability | $ 6,000 |
SEGMENT INFORMATION - Narrative (Details) - segment |
6 Months Ended | 9 Months Ended |
---|---|---|
Jun. 30, 2018 |
Sep. 30, 2018 |
|
Segment Reporting [Abstract] | ||
Number of reportable business segments | 2 | 2 |
SEGMENT INFORMATION - Reconciliation of Reportable Segments to Consolidated Balances (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Segment Reporting [Abstract] | ||||
Operating income for reportable segments | $ 505,558 | $ 120,575 | $ 1,153,655 | $ 623,953 |
Items excluded from operating income: | ||||
Interest expense | (389,594) | (379,066) | (1,157,395) | (1,232,730) |
Interest income | 1,427 | 961 | 9,843 | 1,373 |
Gain (loss) on investments and sale of affiliate interests, net | 111,684 | (18,900) | (182,031) | 169,888 |
Gain (loss) on derivative contracts, net | (79,628) | (16,763) | 130,883 | (154,270) |
Gain (loss) on interest rate swap contracts | (19,554) | 1,051 | (64,405) | 12,539 |
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 9) | 0 | (38,858) | (41,616) | (600,240) |
Other expense, net | (186) | (2,984) | (12,473) | (9,019) |
Income (loss) before income taxes | $ 129,707 | $ (333,984) | $ (163,539) | $ (1,188,506) |
SEGMENT INFORMATION - Capital Expenditures by Reportable Segment (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Segment Reporting Information, Capital Expenditures [Abstract] | ||||
Capital expenditures | $ 334,527 | $ 255,329 | $ 832,824 | $ 718,919 |
Cablevision | ||||
Segment Reporting Information, Capital Expenditures [Abstract] | ||||
Capital expenditures | 217,326 | 180,287 | 554,483 | 505,852 |
Cequel Corp. [Member] | ||||
Segment Reporting Information, Capital Expenditures [Abstract] | ||||
Capital expenditures | $ 117,201 | $ 75,042 | $ 278,341 | $ 213,067 |
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