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AFFILIATE AND RELATED PARTY TRANSACTIONS
9 Months Ended
Sep. 30, 2019
Related Party Transactions [Abstract]  
AFFILIATE AND RELATED PARTY TRANSACTIONS AFFILIATE AND RELATED PARTY TRANSACTIONS
Equity Method Investments
In April 2018, Altice Europe transferred its ownership of i24 US and i24 Europe ('i24NEWS"), Altice Europe'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, for the nine months ended September 30, 2018 of $1,130 were recorded using the equity method and reflected in other expense, net in the Company's consolidated statements of operations.
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 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, reflected in other expense, net in the Company's statements of operations. From July 7, 2016 through April 2018, the Company held a 25% ownership interest in Newsday and prior to July 7, 2016, Newsday was a wholly-owned subsidiary of Cablevision.
Affiliate and Related Party Transactions
Altice USA is controlled by Patrick Drahi who is also the controlling stockholder of Altice Europe 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,
 
2019
 
2018
 
2019
 
2018
Revenue
$
70

 
$
545

 
$
1,158

 
$
1,397

Operating expenses:
 
 
 
 
 
 
 
Programming and other direct costs
$
(3,508
)
 
$
(1,671
)
 
$
(7,282
)
 
$
(6,690
)
Other operating expenses, net
(1,602
)
 
(905
)
 
(5,868
)
 
(15,154
)
Operating expenses, net
(5,110
)
 
(2,576
)
 
(13,150
)
 
(21,844
)
 
 
 
 
 
 
 
 
Other income, net

 

 

 
149

Net charges
$
(5,040
)
 
$
(2,031
)
 
$
(11,992
)
 
$
(20,298
)
Capital expenditures
$
3,456

 
$
3,945

 
$
9,346

 
$
6,679


Revenue
The Company recognized revenue primarily from the sale of advertising to a subsidiary of Altice Europe.
Programming and other direct costs
Programming and other direct costs include costs incurred by the Company for advertising services provided by a subsidiary of Altice Europe.
Other operating expenses, net
Altice Europe provided certain executive services, as well as consulting, advisory and other services, including, prior to the Company's initial public offering ("IPO") in June 2017, 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. 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 and other related parties aggregating $1,602 and $5,868, for the three and nine months ended September 30, 2019 and $905 and $1,904 for the three and nine months ended September 30, 2018, respectively.
In addition, in August 2019, the Company issued options to purchase 370,923 shares of Altice USA common stock to a related party for advisory services. The options vest over 4 years, where 50% vest on the second anniversary, 25% on the third anniversary and 25% on the fourth anniversary of the date of grant. The grant date fair value of these options aggregating $3,516 is recorded over the vesting period.
Capital Expenditures
Capital expenditures include $3,456 and $9,346 for the three and nine months ended September 30, 2019 and $3,945 and $6,679, for the three and nine months ended September 30, 2018, 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, 2019
 
December 31, 2018
Due from:
 
 
 
CVC 3 B.V. (a)
$

 
$
13,100

Newsday (b)
475

 
490

Altice Europe (b)
67

 
1,271

Altice Dominican Republic (b)
3,435

 
2,550

Other Altice Europe subsidiaries (b)
577

 
146

 
$
4,554

 
$
17,557

Due to:
 
 
 
Newsday (b)
$

 
$
22

Altice Europe (c)

 
15,235

Altice Labs S.A. (d)
2,418

 
4,864

Other Altice Europe subsidiaries (d)
4,486

 
5,975

 
$
6,904

 
$
26,096

 
(a)
Represents interest on senior notes paid by the Company on behalf of Altice US Finance S.A., which merged into CVC 3 B.V. in 2018.
(b)
Represents amounts paid by the Company on behalf of or for services provided to the respective related party and for Newsday, the net amounts due from the related party also include charges for certain transition services provided.
(c)
Includes $13,250 at December 31, 2018 related 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.
Pursuant to our share repurchase program, the Company purchased approximately 14.9 million Altice USA Class A shares for total consideration of approximately $350,000 during the nine months ended September 30, 2019 from Suddenvision S.A.R.L., an entity controlled by BC Partners LLP.