Charter 2012 Annual Report Download - page 52

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40
Results of Operations
The following table sets forth the percentages of revenues that items in the accompanying consolidated statements of operations
constituted for the periods presented (dollars in millions, except per share data):
Year Ended December 31,
2012 2011 2010
Revenues $ 7,504 100% $ 7,204 100% $ 7,059 100%
Costs and Expenses:
Operating costs and expenses (excluding
depreciation and amortization) 4,860 65% 4,564 63% 4,486 64%
Depreciation and amortization 1,713 23% 1,592 22% 1,524 22%
Other operating expenses, net 15 —% 7 —% 25 —%
6,588 88% 6,163 86% 6,035 85%
Income from operations 916 12% 1,041 14% 1,024 15%
Interest expense, net (907) (963) (877)
Loss on extinguishment of debt (55) (143) (85)
Other expense, net (1) (5) (4)
Income (loss) before income taxes (47) (70) 58
Income tax expense (257) (299) (295)
Net loss $ (304) $ (369) $ (237)
LOSS PER COMMON SHARE, BASIC AND
DILUTED: $ (3.05) $ (3.39) $ (2.09)
Weighted average common shares outstanding,
basic and diluted 99,657,989 108,948,554 113,138,461
Revenues. Total revenues grew $300 million or 4% in the year ended December 31, 2012 as compared to 2011 and grew $145
million or 2% in the year ended December 31, 2011 as compared to 2010. Revenue growth primarily reflects increases in the
number of residential Internet and commercial business customers, incremental video revenues from DVR and HD television
services and growth in advertising sales, offset by a decrease in basic video customers. Asset sales and acquisitions increased
revenues in 2012 as compared to 2011 by approximately $20 million and decreased revenues in 2011 as compared to 2010 by
approximately $45 million.
Revenues by service offering were as follows (dollars in millions):
Years ended December 31,
2012 2011 2010 2012 over 2011 2011 over 2010
Revenues % of
Revenues Revenues % of
Revenues Revenues % of
Revenues Change %
Change Change %
Change
Video $ 3,639 48% $ 3,639 51% $ 3,729 53% $ — — % $ (90) (2)%
Internet 1,866 25% 1,708 24% 1,609 23% 158 9 % 99 6 %
Telephone 828 11% 858 12% 823 12% (30) (3)% 35 4 %
Commercial 658 9% 544 8% 451 6% 114 21 % 93 21 %
Advertising sales 334 4% 292 4% 291 4% 42 14 % 1 — %
Other 179 2% 163 2% 156 2% 16 10 % 7 4 %
$ 7,504 100% $ 7,204 100% $ 7,059 100% $ 300 4 % $ 145 2 %