Charter 2013 Annual Report Download - page 119

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CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2013, 2012 AND 2011
(dollars in millions, except share or per share data or where indicated)
F- 37
19. Employee Benefit Plan
The Company’s employees may participate in the Charter Communications, Inc. 401(k) Plan. Employees that qualify for
participation can contribute up to 50% of their salary, on a pre-tax basis, subject to a maximum contribution limit as determined
by the Internal Revenue Service. Each payroll period, the Company will contribute to the 401(k) Plan the total amount of the
salary reduction the employee elects to defer between 1% and 50%. The Company’s matching contribution is discretionary and
is equal to 50% of the amount of the salary reduction the participant elects to defer (up to 6% of the participant’s eligible
compensation), excluding any catch-up contributions and is paid by the Company on a per pay period basis. The Company made
contributions to the 401(k) plan totaling $16 million, $8 million and $6 million for the years ended December 31, 2013, 2012 and
2011, respectively.
20. Recently Issued Accounting Standards
In June 2013, the Financial Accounting Standards Board's Emerging Issues Task Force reached a final consensus on Issue 13-C,
Presentation of an Unrecognized Tax Benefit when a Net Operating Loss or Tax Credit Carryforward Exists ("Issue 13-C"). Issue
13-C states that entities should present the unrecognized tax benefit as a reduction of the deferred tax asset for a net operating loss
or similar tax loss or tax credit carryforward rather than as a liability when the uncertain tax position would reduce the net operating
loss or other carryforward under the tax law. Issue 13-C requires prospective application (including accounting for uncertain tax
positions that exist upon date of adoption) with optional retrospective application and is effective for annual and interim periods
beginning after December 15, 2013, with early adoption permitted. The Company adopted Issue 13-C in the second quarter of
2013 and applied it retrospectively. The adoption of Issue 13-C decreased prepaid expenses and other current assets by $3 million
and other long-term liabilities by $202 million and increased deferred income taxes by $199 million as of December 31, 2012.
21. Unaudited Quarterly Financial Data
The following table presents quarterly data for the periods presented on the consolidated statement of operations:
Year Ended December 31, 2013
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Revenues $ 1,917 $ 1,972 $ 2,118 $ 2,148
Income from operations $ 223 $ 236 $ 220 $ 246
Net income (loss) $ (42) $ (96)$ (70)$ 39
Income (loss) per common share:
Basic $ (0.42) $ (0.96)$ (0.68) $ 0.38
Diluted $ (0.42) $ (0.96)$ (0.68) 0.35
Weighted average common shares
outstanding:
Basic 100,327,418 100,600,678 102,924,443 103,836,535
Diluted 100,327,418 100,600,678 102,924,443 111,415,982