Charter 2015 Annual Report Download - page 126

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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- 29
A summary of the activity for the Company’s restricted stock for the years ended December 31, 2015, 2014 and 2013, is as follows
(shares in thousands, except per share data):
Year Ended December 31,
2015 2014 2013
Shares
Weighted
Average
Grant
Price Shares
Weighted
Average
Grant
Price Shares
Weighted
Average
Grant
Price
Outstanding, beginning of period 431 $ 57.24 653 $ 56.14 928 $ 54.16
Granted 7 $ 182.05 9 $ 138.57 13 $ 101.81
Vested (220) $ 58.92 (231) $ 57.35 (280) $ 51.62
Canceled — $ — — $ — (8) $ 56.50
Outstanding, end of period 218 $ 59.50 431 $ 57.24 653 $ 56.14
A summary of the activity for the Company’s restricted stock units for the years ended December 31, 2015, 2014 and 2013, is as
follows (shares in thousands, except per share data):
Year Ended December 31,
2015 2014 2013
Shares
Weighted
Average
Grant
Price Shares
Weighted
Average
Grant
Price Shares
Weighted
Average
Grant
Price
Outstanding, beginning of period 325 $ 104.01 288 $ 74.73 327 $ 61.79
Granted 164 $ 162.01 153 $ 136.54 73 $ 109.96
Vested (99) $ 71.12 (104) $ 70.23 (88) $ 61.17
Canceled (17) $ 140.55 (12) $ 112.53 (24) $ 55.28
Outstanding, end of period 373 $ 136.51 325 $ 104.01 288 $ 74.73
16. Income Taxes
All of Charter’s operations are held through Charter Holdco and its direct and indirect subsidiaries. Prior to July 2, 2015, Charter
Holdco was treated as a partnership for tax purposes. Effective on July 2, 2015, Charter elected to treat two of its wholly owned
subsidiaries as disregarded entities for federal and state income tax purposes (the “Election”). The subsidiaries that made the
Election are two of the three partners in Charter Holdco. This Election resulted in a deemed liquidation of Charter Holdco into
Charter solely for federal and state income tax purposes, and resulted in a net increase of $638 million to the tax basis of Charter
Holdco's amortizable and depreciable assets. After the Election, all taxable income, gains, losses, deductions and credits of Charter
Holdco and its indirect limited liability company subsidiaries will be treated as income of Charter. In addition, the indirect
subsidiaries of Charter Holdco that are corporations joined the Charter consolidated group. The impact of the Election to the
Charter income tax provision, net of valuation allowance, was $187 million of income tax benefit recorded as a discrete tax event
during the year ended December 31, 2015.
For the years ended December 31, 2015, 2014, and 2013, the Company recorded deferred income tax benefit (expense) as shown
below. Income tax benefit (expense) is recognized primarily through decreases (increases) in deferred tax liabilities related to
Charter’s franchises which are characterized as indefinite-lived for book financial reporting purposes, as well as to a lesser extent
through current federal and state income tax expense. The tax provision in future periods will vary based on current and future
temporary differences, as well as future operating results.