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:



	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.

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:



	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.