Optimum Communications, Inc 10-Q for FY2022 Q2

Optimum Communications, Inc. (OPTU)

10-Q 2022-08-04 For: 2022-06-30

Added on April 12, 2026

About this 10-Q

Optimum Communications, Inc filed this 10-Q on August 4, 2022, covering the quarter ended June 30, 2022 (FY2022 Q2).

Headline figures

Quarter ended June 30, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $2.46B; down 2.1% from $2.52B a year earlier
Net income: $106.17M; down 46.3% from net income of $197.66M a year earlier
Diluted EPS: $0.23; down 46.5% from $0.43 a year earlier

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Title of each class	Trading Symbol	Name of each exchange on which registered
Class A Common Stock, par value $0.01 per share	ATUS	NYSE


		Page
PART I. FINANCIAL INFORMATION		2

Item 1. Financial Statements

ALTICE USA, INC. AND SUBSIDIARIES
Consolidated Financial Statements
	Consolidated Balance Sheets - June 30, 2022 (Unaudited) and December 31, 2021	4
	Consolidated Statements of Operations - Three and six months ended June 30, 2022 and 2021 (Unaudited)	5
	Consolidated Statements of Comprehensive Income - Three and six months ended June 30, 2022 and 2021 (Unaudited)	6
	Consolidated Statements of Stockholders' Deficiency - Three and six months ended June 30, 2022 and 2021 (Unaudited)	7
	Consolidated Statements of Cash Flows - Six months ended June 30, 2022 and 2021 (Unaudited)	10
	Combined Notes to Consolidated Financial Statements (Unaudited)	16
Supplemental Financial Statements Furnished:
CSC HOLDINGS, LLC AND SUBSIDIARIES
Consolidated Financial Statements
	Consolidated Balance Sheets - June 30, 2022 (Unaudited) and December 31, 2021	11
	Consolidated Statements of Operations - Three and six months ended June 30, 2022 and 2021 (Unaudited)	12
	Consolidated Statements of Comprehensive Income - Three and six months ended June 30, 2022 and 2021 (Unaudited)	13
	Consolidated Statements of Member's Deficiency - Three and six months ended June 30, 2022 and 2021 (Unaudited)	14
	Consolidated Statements of Cash Flows - Six months ended June 30, 2022 and 2021 (Unaudited)	15
	Combined Notes to Consolidated Financial Statements (Unaudited)	16
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations		30
Item 3. Quantitative and Qualitative Disclosures About Market Risk		45
Item 4. Controls and Procedures		46
PART II. OTHER INFORMATION		47
Item 1. Legal Proceedings		47


Item 6. Exhibits		47
SIGNATURES		48


ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands)
	June 30, 2022 (Unaudited)		December 31, 2021
ASSETS
Current Assets:
Cash and cash equivalents	$	232,966	$	195,711
Restricted cash	264		264
Accounts receivable, trade (less allowance for doubtful accounts of $34,870 and $27,931, respectively)	370,903		406,952

Prepaid expenses and other current assets ($3,790 and $3,776 due from affiliates, respectively)	333,112		186,707
Investment securities pledged as collateral	1,685,563		—




Total current assets	2,622,808		789,634
Property, plant and equipment, net of accumulated depreciation of $7,550,050 and $7,142,852, respectively	6,780,006		6,340,467

Right-of-use operating lease assets	229,275		222,124
Investment securities pledged as collateral	—		2,161,937

Other assets	154,402		76,653
Amortizable intangibles, net of accumulated amortization of $5,343,741 and $5,051,149, respectively	1,910,842		2,202,001
Indefinite-lived cable television franchises	13,216,355		13,216,355
Goodwill	8,205,863		8,205,863
Total assets	$	33,119,551	$	33,215,034
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Current Liabilities:
Accounts payable	$	1,041,996	$	1,023,045
Interest payable	249,974		244,934
Accrued employee related costs	124,911		124,941

Deferred revenue	92,886		94,943
Debt	2,693,690		917,313
Other current liabilities ($25,767 and $31,810 due to affiliates, respectively)	320,921		329,943
Total current liabilities	4,524,378		2,735,119
Other liabilities	158,557		159,082
Deferred tax liability	4,990,046		5,048,129
Liabilities under derivative contracts	—		276,933
Right-of-use operating lease liability	241,794		237,226
Long-term debt, net of current maturities	23,679,410		25,629,447
Total liabilities	33,594,185		34,085,936
Commitments and contingencies (Note 14)
Stockholders' Deficiency:
Preferred stock, $0.01 par value, 100,000,000 shares authorized, no shares issued and outstanding	—		—
Class A common stock: $0.01 par value, 4,000,000,000 shares authorized, 270,345,124 shares issued and 270,325,554 shares outstanding as of June 30, 2022 and 270,341,685 shares issued and 270,320,798 shares outstanding as of December 31, 2021	2,703		2,703
Class B common stock: $0.01 par value, 1,000,000,000 shares authorized, 490,086,674 issued, 184,329,903 shares outstanding as of June 30, 2022 and 184,333,342 shares outstanding as of December 31, 2021	1,843		1,843
Class C common stock: $0.01 par value, 4,000,000,000 shares authorized, no shares issued and outstanding	—		—
Paid-in capital	100,213		18,005
Accumulated deficit	(546,111)		(848,836)
	(441,352)		(826,285)
Treasury stock, at cost (19,570 and 20,887 Class A common shares, respectively)	—		—
Accumulated other comprehensive income	4,876		6,497
Total Altice USA stockholders' deficiency	(436,476)		(819,788)
Noncontrolling interests	(38,158)		(51,114)
Total stockholders' deficiency	(474,634)		(870,902)
Total liabilities and stockholders' deficiency	$	33,119,551	$	33,215,034


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Revenue (including revenue from affiliates of $478, $3,035, $1,116, and $6,441, respectively) (See Note 13)	$	2,463,014	$	2,516,008	$	4,884,911	$	4,994,829
Operating expenses:
Programming and other direct costs (including charges from affiliates of $2,715, $4,504, $7,333, and $6,732, respectively) (See Note 13)	819,011		849,872		1,647,804		1,701,736
Other operating expenses (including charges from affiliates of $3,037, $2,696, $6,132 and $5,875, respectively) (See Note 13)	673,464		589,180		1,315,370		1,169,613
Restructuring and other expense	2,673		5,864		6,051		9,073
Depreciation and amortization (including impairments)	446,125		444,327		881,474		879,184
	1,941,273		1,889,243		3,850,699		3,759,606
Operating income	521,741		626,765		1,034,212		1,235,223
Other income (expense):
Interest expense, net	(310,213)		(319,371)		(613,575)		(635,683)
Gain (loss) on investments	(325,601)		125,019		(476,374)		198,472
Gain (loss) on derivative contracts, net	219,114		(98,840)		320,188		(152,405)
Gain (loss) on interest rate swap contracts, net	39,868		(21,574)		163,015		54,079
Loss on extinguishment of debt and write-off of deferred financing costs	—		(51,712)		—		(51,712)
Other income, net	2,521		2,467		4,951		5,326
	(374,311)		(364,011)		(601,795)		(581,923)
Income before income taxes	147,430		262,754		432,417		653,300
Income tax expense	(33,890)		(61,820)		(116,736)		(173,827)
Net income	113,540		200,934		315,681		479,473
Net income attributable to noncontrolling interests	(7,366)		(3,274)		(12,956)		(7,677)
Net income attributable to Altice USA, Inc. stockholders	$	106,174	$	197,660	$	302,725	$	471,796
Income per share:
Basic income per share	$	0.23	$	0.43	$	0.67	$	1.02
Basic weighted average common shares (in thousands)	453,230		456,955		453,230		463,060

Diluted income per share	$	0.23	$	0.43	$	0.67	$	1.00
Diluted weighted average common shares (in thousands)	453,230		463,637		453,230		469,510
Cash dividends declared per common share	$	—	$	—	$	—	$	—


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net income	$	113,540	$	200,934	$	315,681	$	479,473
Other comprehensive income (loss):
Defined benefit pension plans	(4,559)		1,492		(2,055)		10,140
Applicable income taxes	1,204		(404)		543		(2,696)
Defined benefit pension plans, net of income taxes	(3,355)		1,088		(1,512)		7,444



Foreign currency translation adjustment	61		(140)		(109)		479
Applicable income taxes	—		—		—		—
Foreign currency translation adjustment, net	61		(140)		(109)		479
Other comprehensive income (loss)	(3,294)		948		(1,621)		7,923
Comprehensive income	110,246		201,882		314,060		487,396
Comprehensive income attributable to noncontrolling interests	(7,366)		(3,274)		(12,956)		(7,677)
Comprehensive income attributable to Altice USA, Inc. stockholders	$	102,880	$	198,608	$	301,104	$	479,719


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


Number of shares of common stock outstanding as of July 29, 2022			454,668,222


ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIENCY (In thousands) (Unaudited)
	Class A Common Stock		Class B Common Stock		Paid-in Capital		Accumulated Deficit		Treasury Stock		Accumulated Other Comprehensive Income		Total Stockholders' Deficiency		Non-controlling Interests		Total Deficiency
Balance at January 1, 2022	$	2,703	$	1,843	$	18,005	$	(848,836)	$	—	$	6,497	$	(819,788)	$	(51,114)	$	(870,902)
Net income attributable to stockholders	—		—		—		196,551		—		—		196,551		—		196,551
Net income attributable to noncontrolling interests	—		—		—		—		—		—		—		5,590		5,590

Pension liability adjustments, net of income taxes	—		—		—		—		—		1,843		1,843		—		1,843
Foreign currency translation adjustment, net of income taxes	—		—		—		—		—		(170)		(170)		—		(170)
Share-based compensation expense (equity classified)	—		—		40,512		—		—		—		40,512		—		40,512




Issuance of common shares pursuant to employee long term incentive plan	—		—		10		—		—		—		10		—		10

Balance at March 31, 2022	2,703		1,843		58,527		(652,285)		—		8,170		(581,042)		(45,524)		(626,566)
Net income attributable to stockholders	—		—		—		106,174		—		—		106,174		—		106,174
Net income attributable to noncontrolling interests	—		—		—		—		—		—		—		7,366		7,366

Pension liability adjustments, net of income taxes	—		—		—		—		—		(3,355)		(3,355)		—		(3,355)
Foreign currency translation adjustment, net of income taxes	—		—		—		—		—		61		61		—		61
Share-based compensation expense (equity classified)	—		—		41,680		—		—		—		41,680		—		41,680




Issuance of common shares pursuant to employee long term incentive plan	—		—		6		—		—		—		6		—		6

Balance at June 30, 2022	$	2,703	$	1,843	$	100,213	$	(546,111)	$	—	$	4,876	$	(436,476)	$	(38,158)	$	(474,634)


	Six Months Ended June 30,
	2022		2021
Cash flows from operating activities:
Net income	$	315,681	$	479,473
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including impairments)	881,474		879,184


Loss (gain) on investments	476,374		(198,472)
Loss (gain) on derivative contracts, net	(320,188)		152,405
Loss on extinguishment of debt and write-off of deferred financing costs	—		51,712
Amortization of deferred financing costs and discounts (premiums) on indebtedness	41,150		45,917

Share-based compensation expense	77,061		55,927
Deferred income taxes	(57,720)		98,769
Decrease in right-of-use assets	22,139		21,691
Provision for doubtful accounts	36,839		28,154
Other	(321)		4,344
Change in assets and liabilities, net of effects of acquisitions and dispositions:
Accounts receivable, trade	(790)		13,078
Prepaid expenses and other assets	6,689		31,631
Amounts due from and due to affiliates	(6,057)		6,505
Accounts payable and accrued liabilities	(1,527)		(117,467)
Deferred revenue	(1,906)		5,782
Liabilities related to interest rate swap contracts	(192,344)		(79,468)
Net cash provided by operating activities	1,276,554		1,479,165
Cash flows from investing activities:
Capital expenditures	(877,497)		(535,895)
Payments for acquisitions, net of cash acquired	—		(340,570)




Other, net	(610)		(1,074)
Net cash used in investing activities	(878,107)		(877,539)
Cash flows from financing activities:
Proceeds from long-term debt	460,000		3,160,000
Repayment of long-term debt	(758,861)		(3,057,469)


Proceeds from collateralized indebtedness and related derivative contracts, net	—		185,105
Repayment of collateralized indebtedness and related derivative contracts, net	—		(185,105)



Principal payments on finance lease obligations	(62,221)		(37,560)
Purchase of shares of Altice USA Class A common stock, pursuant to a share repurchase program	—		(725,518)






Other	—		1,339
Net cash used in financing activities	(361,082)		(659,208)
Net increase (decrease) in cash and cash equivalents	37,365		(57,582)
Effect of exchange rate changes on cash and cash equivalents	(110)		479
Net increase (decrease) in cash and cash equivalents	37,255		(57,103)
Cash, cash equivalents and restricted cash at beginning of year	195,975		278,686
Cash, cash equivalents and restricted cash at end of period	$	233,230	$	221,583


CSC HOLDINGS, LLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands)
	June 30, 2022 (Unaudited)		December 31, 2021
ASSETS
Current Assets:
Cash and cash equivalents	$	230,409	$	193,154
Restricted cash	264		264
Accounts receivable, trade (less allowance for doubtful accounts of $34,870 and $27,931, respectively)	370,903		406,952

Prepaid expenses and other current assets ($3,790 and $3,776 due from affiliates, respectively)	333,112		186,707
Investment securities pledged as collateral	1,685,563		—




Total current assets	2,620,251		787,077
Property, plant and equipment, net of accumulated depreciation of $7,550,050 and $7,142,852, respectively	6,780,006		6,340,467

Right-of-use operating lease assets	229,275		222,124
Investment securities pledged as collateral	—		2,161,937

Other assets	154,402		76,653
Amortizable intangibles, net of accumulated amortization of $5,343,741 and $5,051,149, respectively	1,910,842		2,202,001
Indefinite-lived cable television franchises	13,216,355		13,216,355
Goodwill	8,205,863		8,205,863
Total assets	$	33,116,994	$	33,212,477


LIABILITIES AND MEMBER'S DEFICIENCY
Current Liabilities:
Accounts payable	$	1,041,996	$	1,023,045
Interest payable	249,974		244,934
Accrued employee related costs	124,911		124,941

Deferred revenue	92,886		94,943
Debt	2,693,690		917,313
Other current liabilities ($25,767 and $31,810 due to affiliates, respectively)	320,921		329,944
Total current liabilities	4,524,378		2,735,120

Other liabilities	158,557		159,082
Deferred tax liability	5,009,360		5,067,442
Liabilities under derivative contracts	—		276,933
Right-of-use operating lease liability	241,794		237,226
Long-term debt, net of current maturities	23,679,410		25,629,447
Total liabilities	33,613,499		34,105,250
Commitments and contingencies (Note 14)


Member's deficiency (100 membership units issued and outstanding)	(463,223)		(848,156)
Accumulated other comprehensive income	4,876		6,497
Total member's deficiency	(458,347)		(841,659)
Noncontrolling interest	(38,158)		(51,114)
Total deficiency	(496,505)		(892,773)
Total liabilities and member's deficiency	$	33,116,994	$	33,212,477


	Member's Deficiency		Accumulated Other Comprehensive Income		Total Member's Deficiency		Noncontrolling Interests		Total Deficiency

Balance at January 1, 2022	$	(848,156)	$	6,497	$	(841,659)	$	(51,114)	$	(892,773)
Net income attributable to CSC Holdings' sole member	196,551		—		196,551		—		196,551
Net income attributable to noncontrolling interests	—		—		—		5,590		5,590

Pension liability adjustments, net of income taxes	—		1,843		1,843		—		1,843
Foreign currency translation adjustment, net of income taxes	—		(170)		(170)		—		(170)
Share-based compensation expense (equity classified)	40,512		—		40,512		—		40,512




Other	11		—		11		—		11
Balance at March 31, 2022	(611,082)		8,170		(602,912)		(45,524)		(648,436)
Net income attributable to CSC Holdings' sole member	106,174		—		106,174		—		106,174
Net income attributable to noncontrolling interests	—		—		—		7,366		7,366
Pension liability adjustments, net of income taxes	—		(3,355)		(3,355)		—		(3,355)
Foreign currency translation adjustment, net of income taxes	—		61		61		—		61
Share-based compensation expense (equity classified)	41,680		—		41,680		—		41,680
Other	5		—		5		—		5
Balance at June 30, 2022	$	(463,223)	$	4,876	$	(458,347)	$	(38,158)	$	(496,505)




Balance at January 1, 2021	$	(1,172,505)	$	3,646	$	(1,168,859)	$	(62,109)	$	(1,230,968)
Net income attributable to CSC Holdings' sole member	274,136		—		274,136		—		274,136
Net income attributable to noncontrolling interests	—		—		—		4,403		4,403

Pension liability adjustments, net of income taxes	—		6,356		6,356		—		6,356
Foreign currency translation adjustment, net of income taxes	—		619		619		—		619
Share-based compensation expense (equity classified)	27,964		—		27,964		—		27,964
Redeemable equity vested	20,131		—		20,131		—		20,131
Change in redeemable equity	2,528		—		2,528		—		2,528
Cash distributions to parent	(501,000)		—		(501,000)		—		(501,000)
Non-cash distributions to parent	(748)		—		(748)		—		(748)
Other	(4,056)		—		(4,056)		4,302		246
Balance at March 31, 2021	(1,353,550)		10,621		(1,342,929)		(53,404)		(1,396,333)
Net income attributable to CSC Holdings' sole member	199,957		—		199,957		—		199,957
Net income attributable to noncontrolling interests	—		—		—		3,274		3,274
Pension liability adjustments, net of income taxes	—		1,088		1,088		—		1,088
Foreign currency translation adjustment, net of income taxes	—		(140)		(140)		—		(140)
Share-based compensation expense (equity classified)	27,385		—		27,385		—		27,385
Redeemable equity vested	3,618		—		3,618		—		3,618
Change in redeemable equity	(514)		—		(514)		—		(514)
Cash distributions to parent	(184,478)		—		(184,478)		—		(184,478)
Non-cash distributions to parent	(19,660)				(19,660)				(19,660)
Other	257		—		257		76		333
Balance at June 30, 2021	$	(1,326,985)	$	11,569	$	(1,315,416)	$	(50,054)	$	(1,365,470)


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Broadband	$	1,002,680	$	992,155	$	1,988,197	$	1,962,726
Video	841,549		892,605		1,683,436		1,798,439
Telephony	84,621		103,374		169,855		210,355
Residential	1,928,850		1,988,134		3,841,488		3,971,520
Business services and wholesale	371,503		372,010		739,025		739,226
News and advertising	133,250		131,767		247,925		236,837
Mobile	26,440		20,664		50,475		39,899
Other	2,971		3,433		5,998		7,347
Total revenue	$	2,463,014	$	2,516,008	$	4,884,911	$	4,994,829


	As of June 30, 2022						As of December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Estimated Useful Lives
Customer relationships	$	6,113,669	$	(4,263,141)	$	1,850,528	$	6,113,669	$	(4,020,282)	$	2,093,387	3 to 18 years
Trade names	1,081,083		(1,035,675)		45,408		1,081,083		(988,563)		92,520		2 to 10 years
Other amortizable intangibles	59,831		(44,925)		14,906		58,398		(42,304)		16,094		1 to 15 years
	$	7,254,583	$	(5,343,741)	$	1,910,842	$	7,253,150	$	(5,051,149)	$	2,202,001


		Interest Rate			June 30, 2022				December 31, 2021
Date Issued	Maturity Date				Principal Amount		Carrying Amount (a)		Principal Amount		Carrying Amount (a)
CSC Holdings Senior Notes:
September 27, 2012	September 15, 2022	5.875	%		$	649,024	$	644,839	$	649,024	$	635,310
May 23, 2014	June 1, 2024	5.250	%		750,000		718,534		750,000		711,137
October 18, 2018	April 1, 2028	7.500	%		4,118		4,113		4,118		4,113
November 27, 2018	April 1, 2028	7.500	%		1,045,882		1,044,664		1,045,882		1,044,582
July 10 and October 7, 2019	January 15, 2030	5.750	%		2,250,000		2,281,214		2,250,000		2,282,875
June 16 and August 17, 2020	December 1, 2030	4.625	%		2,325,000		2,365,023		2,325,000		2,366,886
May 13, 2021	November 15, 2031	5.000	%		500,000		498,304		500,000		498,234
					7,524,024		7,556,691		7,524,024		7,543,137
CSC Holdings Senior Guaranteed Notes:
September 23, 2016	April 15, 2027	5.500	%		1,310,000		1,306,793		1,310,000		1,306,508
January 29, 2018	February 1, 2028	5.375	%		1,000,000		994,661		1,000,000		994,262
January 24, 2019	February 1, 2029	6.500	%		1,750,000		1,747,649		1,750,000		1,747,511
June 16, 2020	December 1, 2030	4.125	%		1,100,000		1,095,870		1,100,000		1,095,672
August 17, 2020	February 15, 2031	3.375	%		1,000,000		997,112		1,000,000		996,970
May 13, 2021	November 15, 2031	4.500	%		1,500,000		1,494,923		1,500,000		1,494,710
					7,660,000		7,637,008		7,660,000		7,635,633
CSC Holdings Restricted Group Credit Facility:
Revolving Credit Facility	January 31, 2024 (c)	3.574	%	(b)	675,000		670,296		900,000		893,864
Term Loan B	July 17, 2025	3.574	%		2,850,000		2,842,600		2,865,000		2,856,421
Incremental Term Loan B-3	January 15, 2026	3.574	%		1,233,563		1,230,444		1,239,938		1,236,394

Incremental Term Loan B-5	April 15, 2027	3.824	%		2,932,500		2,916,342		2,947,500		2,929,813
					7,691,063		7,659,682		7,952,438		7,916,492
Lightpath Senior Notes:
September 29, 2020	September 15, 2028	5.625	%		415,000		407,586		415,000		407,104
Lightpath Senior Secured Notes:
September 29, 2020	September 15, 2027	3.875	%		450,000		442,381		450,000		441,739
Lightpath Term Loan	November 30, 2027	4.574	%		591,000		577,282		594,000		579,119
Lightpath Revolving Credit Facility	November 30, 2025	(d)			—		—		—		—
					1,456,000		1,427,249		1,459,000		1,427,962
Collateralized indebtedness (see Note 9)					1,759,017		1,726,366		1,759,017		1,706,997
Finance lease obligations					251,285		251,285		218,735		218,735
Notes payable and supply chain financing (e)					114,819		114,819		97,804		97,804
					26,456,208		26,373,100		26,671,018		26,546,760
Less: current portion of credit facility debt					(78,750)		(78,750)		(78,750)		(78,750)
Less: current portion of senior notes					(649,024)		(644,839)		(649,024)		(635,310)


2022	$	756,533
2023	1,884,313
2024	1,503,889
2025	2,823,750
2026	1,224,938
Thereafter	18,011,500


Derivatives Not Designated as Hedging Instruments	Balance Sheet Location	Fair Value at
		June 30, 2022		December 31, 2021

Asset Derivatives:
Interest rate swap contracts	Prepaid expenses and other current assets	$	—	$	2,993
Prepaid forward contracts	Prepaid expenses and other current assets	158,246		—
Interest rate swap contracts	Other asset, long-term	76,905		—

		235,151		2,993
Liability Derivatives:

Interest rate swap contracts	Other current liabilities	—		(3,441)
Prepaid forward contracts	Liabilities under derivative contracts, long-term	—		(161,942)
Interest rate swap contracts	Liabilities under derivative contracts, long-term	—		(114,991)
		$	—	$	(280,374)


	Fair Value Hierarchy	June 30, 2022		December 31, 2021
Assets:
Money market funds	Level I	$	117,940	$	100,015
Investment securities pledged as collateral	Level I	1,685,563		2,161,937
Prepaid forward contracts	Level II	158,246		—
Interest rate swap contracts	Level II	76,905		2,993
Liabilities:
Prepaid forward contracts	Level II	—		161,942
Interest rate swap contracts	Level II	—		118,432


	Share-Based Compensation								Unrecognized Compensation Cost As of June 30, 2022
	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Carry Unit Plan	$	—	$	44	$	—	$	803	$	—
Awards issued pursuant to LTIP (a):
Stock Option Awards	19,910		24,473		42,407		48,696		112,943
Performance Stock Units	1,601		2,868		3,627		5,850		37,133
Restricted Share Units	15,018		261		31,027		578		83,563

	$	36,529	$	27,646	$	77,061	$	55,927	$	233,639


	Shares Under Option	Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (a)
Balance at December 31, 2021	50,998,816	$	22.51	8.29	$	6,801
Granted	3,154,016	13.58

Forfeited	(3,855,252)	22.95
Balance at June 30, 2022	50,297,580	$	21.83	8.12	—
Options exercisable at June 30, 2022	18,581,265	$	24.14	6.88	$	—


Risk-free interest rate			2.49%
Expected life (in years)			6.12
Dividend yield			—%
Volatility			38.42%


			Number of PSUs
Balance at December 31, 2021			6,361,894
Forfeited			(342,117)
Balance at June 30, 2022			6,019,777


			Number of Units
Balance at December 31, 2021			6,617,837
Granted			1,136,256
Forfeited			(213,651)
Balance at June 30, 2022			7,540,442



	June 30, 2022		December 31, 2021


Due from:
Altice Europe	$	385	$	241
Other affiliates and related parties	3,405		3,535
	$	3,790	$	3,776
Due to:
Altice Europe	$	25,484	$	30,604
Other affiliates and related parties	283		1,206
	$	25,767	$	31,810


	Three Months Ended June 30,				Favorable (Unfavorable)		Six Months Ended June 30,				Favorable (Unfavorable)
	2022		2021				2022		2021
Revenue:
Broadband	$	1,002,680	$	992,155	$	10,525	$	1,988,197	$	1,962,726	$	25,471
Video	841,549		892,605		(51,056)		1,683,436		1,798,439		(115,003)
Telephony	84,621		103,374		(18,753)		169,855		210,355		(40,500)
Residential revenue	1,928,850		1,988,134		(59,284)		3,841,488		3,971,520		(130,032)


Business services and wholesale revenue	371,503		372,010		(507)		739,025		739,226		(201)
News and advertising	133,250		131,767		1,483		247,925		236,837		11,088
Mobile	26,440		20,664		5,776		50,475		39,899		10,576
Other	2,971		3,433		(462)		5,998		7,347		(1,349)
Total revenue	2,463,014		2,516,008		(52,994)		4,884,911		4,994,829		(109,918)
Operating expenses:
Programming and other direct costs	819,011		849,872		30,861		1,647,804		1,701,736		53,932
Other operating expenses	673,464		589,180		(84,284)		1,315,370		1,169,613		(145,757)
Restructuring and other expense	2,673		5,864		3,191		6,051		9,073		3,022
Depreciation and amortization (including impairments)	446,125		444,327		(1,798)		881,474		879,184		(2,290)
Operating income	521,741		626,765		(105,024)		1,034,212		1,235,223		(201,011)
Other income (expense):
Interest expense, net	(310,213)		(319,371)		9,158		(613,575)		(635,683)		22,108
Gain (loss) on investments	(325,601)		125,019		(450,620)		(476,374)		198,472		(674,846)
Gain (loss) on derivative contracts, net	219,114		(98,840)		317,954		320,188		(152,405)		472,593
Gain (loss) on interest rate swap contracts, net	39,868		(21,574)		61,442		163,015		54,079		108,936
Loss on extinguishment of debt and write-off of deferred financing costs	—		(51,712)		51,712		—		(51,712)		51,712
Other income, net	2,521		2,467		54		4,951		5,326		(375)
Income before income taxes	147,430		262,754		(115,324)		432,417		653,300		(220,883)
Income tax expense	(33,890)		(61,820)		27,930		(116,736)		(173,827)		57,091
Net income	113,540		200,934		(87,394)		315,681		479,473		(163,792)
Net income attributable to noncontrolling interests	(7,366)		(3,274)		(4,092)		(12,956)		(7,677)		(5,279)
Net income attributable to Altice USA, Inc. stockholders	$	106,174	$	197,660	$	(91,486)	$	302,725	$	471,796	$	(169,071)


	June 30,			March 31,			June 30,
	2022			2022			2021 (j)
	(in thousands)
Total passings (a)	9,363.1			9,304.9			9,195.1
Total customer relationships (b)(c)	4,947.3			4,995.0			5,051.4
Residential	4,564.2			4,612.1			4,670.7
SMB	383.1			382.9			380.7
Residential customers:
Broadband	4,333.6			4,373.2			4,401.3
Video	2,574.2			2,658.7			2,870.5
Telephony	1,886.9			1,951.5			2,118.4
Penetration of total passings (d)	52.8		%	53.7		%	54.9		%
ARPU (e)	$	140.13		$	137.92		$	142.24

FTTH total passings (f)	1,587.1			1,316.6			982.5
FTTH customer relationships (g)(h)	104.4			81.0			47.3
FTTH Residential	103.7			80.4			47.3
FTTH SMB	0.7			0.6			0.1
Penetration of FTTH total passings (i)	6.6		%	6.1		%	4.8		%


	June 30, 2021
	NY Order	Storms
	Included	Included
	(in thousands)
Total customer relationships	8.4	4.0
Residential	7.3	3.7
SMB	1.1	0.3
Residential customers:
Broadband	7.2	3.4
Video	4.1	2.1
Telephony	3.3	1.0


	Three Months		Six Months
Decrease in programming costs primarily due to lower video customers, partially offset by net contractual rate increases	$	(22,698)	$	(38,005)
Decrease in franchise fee costs due to lower video customers	(3,260)		(6,861)
Net decrease in call completion and transfer costs due to a lower level of activity related to our telephony service, partially offset by an increase related to our mobile services	(2,485)		(4,020)
Decrease in taxes and surcharges	(1,902)		(6,216)
Increase in costs of mobile devices	2,547		4,820
Other net decreases	(3,063)		(3,650)
	$	(30,861)	$	(53,932)


	Three Months		Six Months
Net increase in labor costs and benefits, partially offset by an increase in capitalizable activity	$	37,014	$	58,575
Increase in repairs and maintenance costs	11,916		25,178
Increase in marketing costs, including costs of rebranding our services from Suddenlink to Optimum	13,624		23,618
Increase in share-based compensation costs	8,883		21,134
Increase in bad debt	5,080		8,685
Decrease in legal fees, including legal settlements in 2021	(5,521)		(8,593)
Other net increases	13,288		17,160
	$	84,284	$	145,757


	Three Months		Six Months
Decrease due primarily to a decrease in average debt balances for the three and six month periods, partially offset by an increase in interest rates in the three month period	$	(2,125)	$	(13,366)
Capitalized interest related to FTTH network construction	(5,248)		(5,248)
Higher interest income	(323)		(348)
Other net decreases, primarily amortization of deferred financing costs and original issue discounts	(1,462)		(3,146)
	$	(9,158)	$	(22,108)


	CSC Holdings Restricted Group		Lightpath		Other Unrestricted Entities		Altice USA/CSC Holdings
Debt outstanding:
Credit facility debt	$	7,659,682	$	577,282	$	—	$	8,236,964
Senior guaranteed notes	7,637,008		—		—		7,637,008
Senior secured notes	—		442,381		—		442,381
Senior notes	7,556,691		407,586		—		7,964,277
Subtotal	22,853,381		1,427,249		—		24,280,630
Finance lease obligations	251,285		—		—		251,285
Notes payable and supply chain financing	114,819		—		—		114,819
Subtotal	23,219,485		1,427,249		—		24,646,734
Collateralized indebtedness relating to stock monetizations (a)	—		—		1,726,366		1,726,366
Total debt	$	23,219,485	$	1,427,249	$	1,726,366	$	26,373,100
Interest expense, net:
Credit facility debt, senior notes, finance leases, notes payable and supply chain financing	$	540,846	$	34,558	$	—	$	575,404
Collateralized indebtedness relating to stock monetizations (a)	—		—		38,610		38,610
Total interest expense, net	$	540,846	$	34,558	$	38,610	$	614,014


	CSC Holdings Restricted Group (b)		Lightpath		Other Unrestricted Entities (a)		Altice USA/ CSC Holdings
2022	$	1,305,710	$	37,715	$	16,989	$	1,360,414
2023	1,198,827		76,862		1,776,378		3,052,067
2024	2,523,185		75,265		—		2,598,450
2025	3,791,414		75,925		—		3,867,339
2026	2,078,391		73,414		—		2,151,805
Thereafter	18,835,904		1,506,150		—		20,342,054
Total	$	29,733,431	$	1,845,331	$	1,793,367	$	33,372,129


Fair Value of Equity Derivative Contracts
Fair value as of December 31, 2021, net liability position	$	(161,942)
Change in fair value, net	320,188
Fair value as of June 30, 2022, net liability position	$	158,246


# of Shares Deliverable	Maturity	Hedge Price per Share (a)	Cap Price (b)

42,955,236	2023	$40.95	$49.55


EXHIBIT NO.						DESCRIPTION

10.1						Amended and Restated Altice USA 2017 Long Term Incentive Plan, as amended (incorporated herein by reference to Exhibit 99.1 of the Company’s Form S-8 (File No. 333-265631) filed on June 15, 2022).
10.2						Twelfth Amendment to Credit Agreement, dated as of July 13, 2022, by and among the Borrower, each of the other Loan Parties, the Lenders party thereto and JPMorgan Chase Bank, N.A. as the Administrative Agent (incorporated herein by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed on July 14, 2022).
31.1						Section 302 Certification of the CEO.
31.2						Section 302 Certification of the CFO.
32						Section 906 Certifications of the CEO and CFO.
101						The following financial statements from Altice USA's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2022 filed with the Securities and Exchange Commission on August 3, 2022 formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets; (ii) the Consolidated Statements of Operations; (iii) the Consolidated Statements of Comprehensive Income; (iv) the Consolidated Statements of Stockholders' Deficiency; (v) the Consolidated Statements of Cash Flows; and (vi) the Combined Notes to Consolidated Financial Statements.
104						The cover page from this quarterly report on Form 10-Q formatted in Inline XBRL.