Charter 2015 Annual Report Download - page 134

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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- 37
In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"), which
requires the cost of issuing debt to no longer be recorded as a separate asset but rather to be presented on the balance sheet as a
direct reduction to the carrying value of the related debt liability, similar to the presentation of debt discounts. ASU 2015-03 will
be effective for interim and annual periods beginning after December 15, 2015 (January 1, 2016 for the Company) including
retrospective conforming presentation of prior periods presented. Early adoption of the standard is permitted. The Company early
adopted ASU 2015-03 on December 31, 2015. The adoption of this standard resulted in a reclassification of deferred financing
costs which caused a $136 million reduction to both other noncurrent assets and long-term debt on the consolidated balance sheet
as of December 31, 2014; but it had no effect on the Company’s results of operations, financial condition or cash flows.
In April 2015, the FASB issued ASU No. 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement
("ASU 2015-05"), which provides guidance in determining whether fees for purchasing cloud computing services (or hosted
software solutions) are considered internal-use software or should be considered a service contract. The cloud computing agreement
that includes a software license should be accounted for in the same manner as internal-use software if customer has contractual
right to take possession of the software during the hosting period without significant penalty and it is feasible to either run the
software on customer’s hardware or contract with another vendor to host the software. Arrangements that don’t meet the
requirements for internal-use software should be accounted for as a service contract. ASU 2015-05 will be effective for interim
and annual periods beginning after December 15, 2015 (January 1, 2016 for the Company). Early adoption of the standard is
permitted. The Company is currently in the process of evaluating the impact that the adoption of ASU 2015-05 will have on its
consolidated financial statements. This new accounting standard is not anticipated to have a material impact on the Company's
financial statements.
In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”), which
requires that all deferred tax liabilities and assets be classified as noncurrent amounts on the balance sheet. ASU 2015-17 will be
effective for interim and annuals periods beginning after December 15, 2016 (January 1, 2017 for the Company) and may be
applied prospectively or retrospectively. Early adoption of the standard is permitted. The Company early adopted this standard
retrospectively on December 31, 2015. The adoption of this standard resulted in a reclassification of current deferred tax assets
which caused a $26 million reduction to both prepaid expenses and other current assets and deferred income taxes on the Company’s
balance sheet for the year ended December 31, 2014; but had no effect on the Company’s results of operations, financial condition
or cash flows.
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, 2015
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Revenues $ 2,362 $ 2,430 $ 2,450 $ 2,512
Income from operations $ 249 $ 269 $ 273 $ 323
Net income (loss) $ (81)$ (122) $ 54 $ (122)
Earnings (loss) per common share:
Basic $ (0.73)$ (1.09) $ 0.48 $ (1.09)
Diluted $ (0.73)$ (1.09) $ 0.48 (1.09)
Weighted average common share outstanding:
Basic 111,655,617 111,783,504 111,928,113 112,106,255
Diluted 111,655,617 111,783,504 113,339,885 112,106,255