Charter 2015 Annual Report Download - page 78

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depend on a number of factors including the pace of transition planning to service a larger customer base upon closing of the TWC
Transaction and Bright House Transaction and growth rates of both our residential and commercial businesses.
Our capital expenditures are funded primarily from cash flows from operating activities and borrowings on our credit facility. In
addition, our liabilities related to capital expenditures increased by $28 million, $33 million and $76 million for the years ended
December 31, 2015, 2014 and 2013, respectively.
The following table presents our major capital expenditures categories in accordance with NCTA disclosure guidelines for the
years ended December 31, 2015, 2014 and 2013. The disclosure is intended to provide more consistency in the reporting of capital
expenditures among peer companies in the cable industry. These disclosure guidelines are not required disclosures under GAAP,
nor do they impact our accounting for capital expenditures under GAAP (dollars in millions):
Year ended December 31,
2015 2014 2013
Customer premise equipment (a) $ 582 $ 1,082 $ 841
Scalable infrastructure (b) 523 455 352
Line extensions (c) 194 176 219
Upgrade/rebuild (d) 128 167 183
Support capital (e) 413 341 230
Total capital expenditures (f) $ 1,840 $ 2,221 $ 1,825
(a) Customer premise equipment includes costs incurred at the customer residence to secure new customers and revenue generating
units, including customer installation costs and customer premise equipment (e.g., set-top boxes and cable modems).
(b) Scalable infrastructure includes costs not related to customer premise equipment, to secure growth of new customers and
revenue generating units, or provide service enhancements (e.g., headend equipment).
(c) Line extensions include network costs associated with entering new service areas (e.g., fiber/coaxial cable, amplifiers,
electronic equipment, make-ready and design engineering).
(d) Upgrade/rebuild includes costs to modify or replace existing fiber/coaxial cable networks, including betterments.
(e) Support capital includes costs associated with the replacement or enhancement of non-network assets due to technological
and physical obsolescence (e.g., non-network equipment, land, buildings and vehicles).
(f) Total capital expenditures for the years ended December 31, 2015, 2014 and 2013 include the following (dollars in millions):
Year ended December 31,
2015 2014 2013
Capital expenditures related to commercial services $ 260 $ 242 $ 300
Capital expenditures related to transition $ 115 $ 27 $ —
Capital expenditures related to all-digital transition $ — $ 410 $ 88
Description of Our Outstanding Debt
Overview
As of December 31, 2015 and 2014, the blended weighted average interest rate on our debt was 5.1% and 5.4%, respectively. The
interest rate on approximately 83% and 72% of the total principal amount of our debt was effectively fixed, including the effects
of our interest rate hedge agreements as of December 31, 2015 and 2014, respectively. The fair value of our senior notes was
$28.7 billion and $14.2 billion at December 31, 2015 and 2014, respectively. The fair value of our credit facilities was $7.3 billion
and $7.2 billion at December 31, 2015 and 2014, respectively. The fair value of our senior notes and credit facilities were based
on quoted market prices.
The following description is a summary of certain provisions of our credit facilities and our note indentures (the “Debt Agreements”).
The summary does not restate the terms of the Debt Agreements in their entirety, nor does it describe all the terms of the Debt