INCOME TAXES

9 Months Ended

Sep. 30, 2021

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.

Altice USA

For the three and nine months ended September 30, 2021, Altice USA recorded a tax expense of $105,226 and $279,053 on pre-tax income of $375,975 and $1,029,275, respectively, resulting in an effective tax rate that was higher than the U.S. statutory tax rate. The higher tax rate was due to the impact of certain non-deductible expenses and state tax expense.

For the three and nine months ended September 30, 2020, Altice USA recorded a tax expense of $33,186 and $109,047 on pre-tax income of $30,457 and $216,257, respectively, resulting in an effective tax rate that was higher than the U.S. statutory tax rate. The higher tax rate was due to the impact of certain non-deductible expenses and certain state tax expense adjustments, partially offset by a benefit resulting from the Coronavirus Aid, Relief and Economic Security (“CARES Act”) enacted in March 2020. In addition, income tax expense of $16,878 was recognized in the three months ended September 30, 2020 as a result of the reevaluation of the Company's deferred tax liability in connection with the tax rate increase in New Jersey for 2020 through 2023, enacted in September 2020.

CSC Holdings

For the three and nine months ended September 30, 2021, CSC Holdings recorded a tax expense of $105,226 and $276,756 on pre-tax income of $375,975 and $1,029,275, respectively, resulting in an effective tax rate that was

higher than the U.S. statutory tax rate. The higher tax rate was due to the impact of certain non-deductible expenses and state tax expense. For the three and nine months ended September 30, 2020, CSC Holdings recorded a tax expense of $33,132 and $94,790 on pre-tax income of $30,258 and $215,711, respectively, resulting in an effective tax rate that was higher than the U.S. statutory tax rate.