Charter 2015 Annual Report Download - page 121

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CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2015, 2014 AND 2013
(dollars in millions, except share or per share data or where indicated)
F- 24
The following table summarizes our shares outstanding for the three years ended December 31, 2015:
Class A
Common
Stock
Class B
Common
Stock
BALANCE, December 31, 2012 101,176,247 —
Option exercises 543,221 —
Restricted stock issuances, net of cancellations 4,879 —
Stock issuances from exercise of warrants 4,481,656 —
Restricted stock unit vesting 88,330 —
Purchase of treasury stock (see Note 9) (150,258)—
BALANCE, December 31, 2013 106,144,075 —
Option exercises 640,342 —
Restricted stock issuances, net of cancellations 9,090 —
Stock issuances from exercise of warrants 5,243,167 —
Restricted stock unit vesting 104,270 —
Purchase of treasury stock (see Note 9) (141,257)—
BALANCE, December 31, 2014 111,999,687 —
Option exercises 579,173 —
Restricted stock issuances, net of cancellations 6,920 —
Restricted stock unit vesting 98,831 —
Purchase of treasury stock (see Note 9) (245,783)—
BALANCE, December 31, 2015 112,438,828 —
11. Accounting for Derivative Instruments and Hedging Activities
The Company uses interest rate derivative instruments to manage its interest costs and reduce the Company’s exposure to increases
in floating interest rates. The Company manages its exposure to fluctuations in interest rates by maintaining a mix of fixed and
variable rate debt. Using interest rate derivative instruments, the Company agrees to exchange, at specified intervals through
2017, the difference between fixed and variable interest amounts calculated by reference to agreed-upon notional principal amounts.
The Company does not hold or issue derivative instruments for speculative trading purposes.
The effect of interest rate derivatives on the Company’s consolidated balance sheets is presented in the table below:
December 31, 2015 December 31, 2014
Accrued interest $3$2
Other long-term liabilities $10$16
Accumulated other comprehensive loss $(13)$ (22)
The Company holds interest rate derivative instruments not designated as hedges which are marked to fair value, with the impact
recorded as a gain or loss on derivative instruments, net in the Company's consolidated statements of operations. While these
interest rate derivative instruments are not designated as cash flow hedges for accounting purposes, management continues to
believe such instruments are closely correlated with the respective debt, thus managing associated risk. These interest rate derivative