Charter 2011 Annual Report Download - page 58

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46
Other operating (income) expenses, net. The changes in other operating (income) expenses, net are attributable to the following
(dollars in millions):
Increases (decreases) in gains (losses) on sales of assets
Increases (decreases) in special charges, net
2011 compared
to 2010
$(13)
(5)
$(18)
2010 compared
to 2009
$ 2
57
$ 59
The change in special charges in 2010, as compared to 2009, is a result of litigation settlements received in 2009 which did not
recur in 2010. For more information, see Note 15 to the accompanying consolidated financial statements contained in “Item 8.
Financial Statements and Supplementary Data.”
Interest expense, net. Net interest expense increased by $86 million in 2011 from 2010 and decreased $211 million in 2010 from
2009. Net interest expense increased in 2011 compared to 2010 primarily as a result of an increase in our weighted average interest
rate from 6.2% for the year ended December 31, 2010 to 7.3% for the year ended December 31, 2011 offset by a decrease in our
weighted average debt outstanding from $12.8 billion for the year ended December 31, 2010 to $12.6 billion for the year ended
December 31, 2011. Net interest expense decreased in 2010 compared to 2009 primarily as a result of a decrease in average debt
outstanding as a result of the completion of our reorganization under Chapter 11 of the Bankruptcy Code and the related reduction
of $8 billion principal amount of debt. Because we filed for Chapter 11 bankruptcy on March 27, 2009, we no longer accrued
interest on debt subject to compromise effective March 27, 2009, except on CCH II debt, as we intended to pay the interest under
the Plan. The amount of contractual interest expense not recorded for the year ended December 31, 2009 was approximately $558
million.
Gain due to Plan effects. Gain due to Plan effects represents the net gains recorded as a result of implementing the Plan including
the impact of eliminating $8 billion in debt. For more information, see Note 23 to the accompanying condensed consolidated
financial statements contained in “Item 8. Financial Statements and Supplementary Data.”
Gain due to fresh start accounting adjustments. Upon our emergence from bankruptcy, the Company applied fresh start
accounting. Gain due to fresh start accounting adjustments represents the net gains recognized as a result of adjusting all assets
and liabilities to fair value. For more information, see Note 23 to the accompanying condensed consolidated financial statements
contained in “Item 8. Financial Statements and Supplementary Data.”
Reorganizations items, net. Reorganization items, net of $3 million, $6 million and $647 million for the years ended December
31, 2011, 2010 and 2009, respectively, represent items of income, expense, gain or loss that we realized or incurred related to our
reorganization under Chapter 11 of the Bankruptcy Code. For more information, see Note 23 to the accompanying consolidated
financial statements contained in “Item 8. Financial Statements and Supplementary Data.”
Loss on extinguishment of debt. Loss on extinguishment of debt consists of the following for the years ended December 31,
2011, 2010 and 2009 (dollars in millions):
CCO Holdings notes repurchases / exchanges
Charter Operating notes repurchases
CCH II notes repurchases
Charter Operating credit amendment / prepayments
Successor
2011
$ —
(17)
(6)
(120)
$(143)
Successor
2010
$(17)
(17)
—
(51)
$(85)
Combined
2009
$ —
—
—
—
$ —