Charter 2011 Annual Report Download - page 106

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2011, 2010 AND 2009
(dollars in millions, except share or per share data or where indicated)
F- 22
Based upon outstanding indebtedness as of December 31, 2011, the amortization of term loans, and the maturity dates for all
senior and subordinated notes, total future principal payments on the total borrowings under all debt agreements as of
December 31, 2011, are as follows:
Year
2012
2013
2014
2015
2016
Thereafter
Amount
$ 531
243
791
490
4,341
6,425
$ 12,821
8. Preferred Stock
On the Effective Date, Charter issued approximately 5.5 million shares of 15% Pay-In-Kind Preferred Stock having an aggregate
liquidation preference of $138 million to holders of Charter convertible notes (the “Preferred Stock”). Pursuant to the terms of
the Preferred Stock, the Company was required to pay a dividend at an annual rate equal to 15% on the liquidation preference of
the Preferred Stock. The liquidation preference of the Preferred Stock was $25 per share. On April 16, 2010, Charter redeemed
all of the shares of the Preferred Stock for a redemption payment of $25.948 per share or a total redemption payment for all shares
of approximately $143 million. The Preferred Stock was recorded at fair value with gains or losses recorded in other income
(expense), net.
9. Treasury Stock
During the years ended December 31, 2011 and 2010 (Successor), the Company withheld 141,175 shares and 176,475 shares,
respectively, of its common stock in payment of income tax withholding owed by employees upon vesting of restricted shares.
On March 22, 2011, the Company purchased, in a private transaction, 4.5 million shares of Charter’s Class A common stock from
funds advised by Franklin Advisers, Inc. The price paid was $46.10 per share for a total of $207 million.
On August 9, 2011, the Company announced that Charter’s board of directors authorized the Company to repurchase up to $200
million of Charter’s Class A common stock and outstanding warrants. Under the repurchase program, shares of Charter’s Class
A common stock and warrants to purchase Charter’s Class A common stock may be purchased from time to time during the course
of the next 12 months. As of December 31, 2011 (Successor), Charter Holdco purchased approximately 4.1 million shares of
Charter’s Class A common stock for a total of approximately $200 million. The average price per share paid was $48.48.
In December 2011, the Company purchased, in a private transaction with a shareholder, 750,000 shares at $55.18 for a total of
$41 million. The Company received 700,668 of the shares prior to December 31, 2011, with 49,332 shares received in January
2012. In December 2011, the Company also entered into stock repurchase agreements for approximately 3.0 million shares of
Charter's Class A common stock from funds advised by Oaktree Capital Management and approximately 2.2 million shares of
Charter's Class A common stock from funds advised by Apollo Management Holdings. The price paid was $54.35 per share for
a total of $163 million for the shares purchased from Oaktree Capital Management and $117 million for the shares purchased from
Apollo Management Holdings.
In December 2011, Charter's board of directors approved the retirement of treasury stock and 14.8 million shares of treasury stock
were retired as of December 31, 2011. The remaining 49,332 shares received in January 2012 were also retired in January 2012.
These transactions were funded from existing cash on hand and available liquidity. The Company accounted for treasury stock
using the cost method and the treasury shares upon repurchase were reflected on the Company’s condensed consolidated balance
sheets as a component of total shareholders’ equity. Upon retirement, these treasury shares were allocated between additional