Optimum Communications, Inc 10-Q for FY2021 Q1

Optimum Communications, Inc. (OPTU)

10-Q 2021-04-28 For: 2021-03-31

Added on April 12, 2026

About this 10-Q

Optimum Communications, Inc filed this 10-Q on April 28, 2021, covering the quarter ended March 31, 2021 (FY2021 Q1).

Headline figures

Quarter ended March 31, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $2.48B; up 1.2% from $2.45B a year earlier
Net income: $274.14M; compared with a net loss of $858K a year earlier
Diluted EPS: $0.58; compared with $0.00 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 - March 31, 2021 (Unaudited) and December 31, 2020	4
	Consolidated Statements of Operations - Three months ended March 31, 2021 and 2020 (Unaudited)	6
	Consolidated Statements of Comprehensive Income (Loss) - Three months ended March 31, 2021 and 2020 (Unaudited)	7
	Consolidated Statements of Stockholders' Equity (Deficiency) - Three months ended March 31, 2021 and 2020 (Unaudited)	8
	Consolidated Statements of Cash Flows - Three months ended March 31, 2021 and 2020 (Unaudited)	10
	Combined Notes to Consolidated Financial Statements (Unaudited)	17
Supplemental Financial Statements Furnished:
CSC HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Financial Statements
	Consolidated Balance Sheets - March 31, 2021 (Unaudited) and December 31, 2020	11
	Consolidated Statements of Operations - Three months ended March 31, 2021 and 2020 (Unaudited)	13
	Consolidated Statements of Comprehensive Income (Loss) - Three months ended March 31, 2021 and 2020 (Unaudited)	14
	Consolidated Statements of Member's Equity (Deficiency) - Three months ended March 31, 2021 and 2020 (Unaudited)	15
	Consolidated Statements of Cash Flows - Three months ended March 31, 2021 and 2020 Unaudited)	16
	Combined Notes to Consolidated Financial Statements (Unaudited)	17
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations		34
Item 3. Quantitative and Qualitative Disclosures About Market Risk		48
Item 4. Controls and Procedures		50
PART II. OTHER INFORMATION		50
Item 1. Legal Proceedings		50
Item 1A. Risk Factors		50
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		51
Item 6. Exhibits		51
SIGNATURES		52


ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands)

	March 31, 2021 (Unaudited)		December 31, 2020
ASSETS
Current Assets:
Cash and cash equivalents	$	220,571	$	278,422
Restricted cash	264		264
Accounts receivable, trade (less allowance for doubtful accounts of $22,395 and $25,198)	376,155		442,581

Prepaid expenses and other current assets	221,819		200,252
Amounts due from affiliates	3,795		4,262


Derivative contracts	8,252		50,785
Total current assets	830,856		976,566
Property, plant and equipment, net of accumulated depreciation of $6,639,771 and $6,431,843	5,843,572		5,805,996

Right-of-use operating lease assets	234,358		241,342
Investment securities pledged as collateral	2,324,308		2,250,854
Derivative contracts	—		4,774
Other assets	92,137		87,429
Amortizable intangibles, net of accumulated amortization of $4,574,426 and $4,409,312	2,616,017		2,781,116
Indefinite-lived cable television franchises	13,068,017		13,068,017
Goodwill	8,160,566		8,160,566
Total assets	$	33,169,831	$	33,376,660


LIABILITIES AND STOCKHOLDERS' DEFICIENCY	March 31, 2021 (Unaudited)		December 31, 2020

Current Liabilities:
Accounts payable	$	879,032	$	795,576
Interest payable	233,968		252,060
Accrued employee related costs	104,220		142,116
Amounts due to affiliates	12,698		8,538
Deferred revenue	153,032		109,798
Debt	1,258,055		1,245,713
Other current liabilities	550,263		544,302
Total current liabilities	3,191,268		3,098,103

Other liabilities	172,766		192,563
Deferred tax liability	5,037,625		5,006,167
Liabilities under derivative contracts	472,402		523,150
Right-of-use operating lease liability	248,758		257,424
Long-term debt, net of current maturities	25,431,481		25,476,629
Total liabilities	34,554,300		34,554,036
Commitments and contingencies (Note 16)
Redeemable equity	3,104		25,763
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, 282,245,265 shares issued and 276,179,014 shares outstanding as of March 31, 2021 and 297,203,087 shares issued and 290,573,672 shares outstanding as of December 31, 2020	2,822		2,972
Class B common stock: $0.01 par value, 1,000,000,000 shares authorized, 490,086,674 issued, 185,798,393 shares outstanding as of March 31, 2021 and 185,895,903 shares outstanding as of December 31, 2020	1,858		1,859
Class C common stock: $0.01 par value, 4,000,000,000 shares authorized, no shares issued and outstanding	—		—
Paid-in capital	—		—
Accumulated deficit	(1,185,610)		(985,641)
	(1,180,930)		(980,810)
Treasury stock, at cost (6,066,251 and 6,629,415 Class A common shares at March 31, 2021 and December 31, 2020, respectively)	(163,860)		(163,866)
Accumulated other comprehensive income	10,621		3,646
Total Altice USA stockholders' deficiency	(1,334,169)		(1,141,030)
Noncontrolling interests	(53,404)		(62,109)
Total stockholders' deficiency	(1,387,573)		(1,203,139)
Total liabilities and stockholders' deficiency	$	33,169,831	$	33,376,660


	Three Months Ended March 31,
	2021		2020
Revenue (including revenue from affiliates of $3,406 and $3,488 respectively) (See Note 15)	$	2,478,821	$	2,450,256
Operating expenses:
Programming and other direct costs (including charges from affiliates of $2,228 and $2,189 respectively) (See Note 15)	851,864		864,514
Other operating expenses (including charges from affiliates of $3,179 and $3,941 respectively) (See Note 15)	580,433		582,309
Restructuring and other expense	3,209		7,294
Depreciation and amortization (including impairments)	434,857		547,569
	1,870,363		2,001,686
Operating income	608,458		448,570
Other income (expense):
Interest expense	(316,339)		(365,211)
Interest income	27		1,659
Gain (loss) on investments and sale of affiliate interests, net	73,453		(455,473)
Gain (loss) on derivative contracts, net	(53,565)		439,861
Gain (loss) on interest rate swap contracts, net	75,653		(54,832)

Other income, net	2,859		923
	(217,912)		(433,073)
Income before income taxes	390,546		15,497
Income tax expense	(112,007)		(17,035)
Net income (loss)	278,539		(1,538)
Net loss (income) attributable to noncontrolling interests	(4,403)		680
Net income (loss) attributable to Altice USA, Inc. stockholders	$	274,136	$	(858)
Income (loss) per share:
Basic income (loss) per share	$	0.58	$	—
Basic weighted average common shares (in thousands)	469,233		621,414

Diluted income (loss) per share	$	0.58	$	—
Diluted weighted average common shares (in thousands)	475,448		621,414
Cash dividends declared per common share	$	—	$	—


☒			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 April 19, 2021			459,814,587


ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (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, 2021	$	2,972	$	1,859	$	—	$	(985,641)	$	(163,866)	$	3,646	$	(1,141,030)	$	(62,109)	$	(1,203,139)
Net income attributable to stockholders	—		—		—		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
Class A shares acquired through share repurchase program and retired	(152)		—		—		(522,521)		—		—		(522,673)		—		(522,673)
Conversion of Class B to Class A shares	1		(1)		—		—		—		—		—		—		—
Issuance of common shares pursuant to employee long term incentive plan	1		—		—		2,037		6		—		2,044		—		2,044
Other	—		—		—		(4,244)		—		—		(4,244)		4,302		58
Balance at March 31, 2021	$	2,822	$	1,858	$	—	$	(1,185,610)	$	(163,860)	$	10,621	$	(1,334,169)	$	(53,404)	$	(1,387,573)


CSC HOLDINGS, LLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands)

	March 31, 2021 (Unaudited)		December 31, 2020
ASSETS
Current Assets:
Cash and cash equivalents	$	220,214	$	277,938
Restricted cash	264		264
Accounts receivable, trade (less allowance for doubtful accounts of $22,395 and $25,198)	376,155		442,581

Prepaid expenses and other current assets	221,819		200,252
Amounts due from affiliates	3,795		4,262


Derivative contracts	8,252		50,785
Total current assets	830,499		976,082
Property, plant and equipment, net of accumulated depreciation of $6,639,771 and $6,431,843	5,843,572		5,805,996

Right-of-use operating lease assets	234,358		241,342
Investment securities pledged as collateral	2,324,308		2,250,854
Derivative contracts	—		4,774
Other assets	92,137		87,429
Amortizable intangibles, net of accumulated amortization of $4,574,426 and $4,409,312	2,616,017		2,781,116
Indefinite-lived cable television franchises	13,068,017		13,068,017
Goodwill	8,160,566		8,160,566
Total assets	$	33,169,474	$	33,376,176


CSC HOLDINGS, LLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (continued) (In thousands, except per membership unit amounts)
LIABILITIES AND MEMBER'S DEFICIENCY	March 31, 2021 (Unaudited)		December 31, 2020

Current Liabilities:
Accounts payable	$	879,032	$	795,576
Interest payable	233,968		252,060
Accrued employee related costs	104,220		142,116
Amounts due to affiliates	12,698		8,538
Deferred revenue	153,032		109,798
Debt	1,258,055		1,245,713
Other current liabilities	530,853		543,834
Total current liabilities	3,171,858		3,097,635

Other liabilities	172,766		192,563
Deferred tax liability	5,065,438		5,033,980
Liabilities under derivative contracts	472,402		523,150
Right-of-use operating lease liability	248,758		257,424
Long-term debt, net of current maturities	25,431,481		25,476,629
Total liabilities	34,562,703		34,581,381
Commitments and contingencies (Note 16)
Redeemable equity	3,104		25,763

Member's deficiency (100 membership units issued and outstanding)	(1,353,550)		(1,172,505)
Accumulated other comprehensive income	10,621		3,646
Total member's deficiency	(1,342,929)		(1,168,859)
Noncontrolling interest	(53,404)		(62,109)
Total deficiency	(1,396,333)		(1,230,968)
Total liabilities and member's deficiency	$	33,169,474	$	33,376,176


	Member's Equity (Deficiency)		Accumulated Other Comprehensive Income (Loss)		Total Member's Equity (Deficiency)		Noncontrolling Interests		Total Equity (Deficiency)

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)

Other	(4,804)		—		(4,804)		4,302		(502)
Balance at March 31, 2021	$	(1,353,550)	$	10,621	$	(1,342,929)	$	(53,404)	$	(1,396,333)


Balance at January 1, 2020	$	2,047,397	$	(3,250)	$	2,044,147	$	9,298	$	2,053,445
Net income attributable to CSC Holdings' sole member	10,802		—		10,802		—		10,802
Net loss attributable to noncontrolling interests	—		—		—		(680)		(680)

Pension liability adjustments, net of income taxes	—		(9,503)		(9,503)		—		(9,503)
Foreign currency translation adjustment, net of income taxes	—		(424)		(424)		—		(424)
Share-based compensation expense	27,370		—		27,370		—		27,370
Redeemable equity vested	29,479		—		29,479		—		29,479
Change in redeemable equity	13,260		—		13,260		—		13,260
Cash distributions to parent	(720,350)		—		(720,350)		—		(720,350)

Non-cash distributions to parent	(150,602)		—		(150,602)		—		(150,602)
Balance at March 31, 2020	$	1,257,356	$	(13,177)	$	1,244,179	$	8,618	$	1,252,797


	Shares of Common Stock Outstanding
	Class A Common Stock	Class B Common Stock
Balance at December 31, 2020	290,573,672	185,895,903
Conversion of Class B common stock to Class A common stock	97,510	(97,510)

Option exercises	104,365	—
Repurchase and retirement of Class A common shares in connection with the Company's share repurchase plan (discussed above)	(15,179,697)	—
Treasury shares reissued	583,164	—
Balance at March 31, 2021	276,179,014	185,798,393


	Balance Sheet location	March 31, 2021		December 31, 2020
Operating leases:
Right-of-use lease assets	Right-of-use operating lease assets	$	234,358	$	241,342
Right-of-use lease liability, current	Other current liabilities	38,373		38,296
Right-of-use lease liability, long-term	Right-of-use operating lease liability	248,758		257,424

Finance leases:
Right-of-use lease assets	Property, plant and equipment	195,354		170,155
Right-of-use lease liability, current	Current portion of long-term debt	76,123		63,454
Right-of-use lease liability, long-term	Long-term debt	103,532		96,183


	Three Months Ended March 31,
	2021		2020
Broadband	$	970,571	$	885,529
Video	905,834		947,061
Telephony	106,981		125,030
Residential revenue	1,983,386		1,957,620
Business services and wholesale revenue	367,216		364,530
News and advertising	105,070		105,540
Mobile	19,235		18,356
Other	3,914		4,210
Total revenue	$	2,478,821	$	2,450,256


	Three Months Ended March 31,
	2021		2020
Contractual payments for terminated employees	$	1,856	$	3,121
Facility realignment costs	324		1,979
Impairment of right-of-use operating lease assets	405		1,705
Transaction costs related to certain transactions not related to the Company's operations	624		489
	$	3,209	$	7,294


	As of March 31,
	2021			2020
Right-of-use assets acquired in exchange for operating lease obligations	$	2,865		$	12,875

Cash Paid For Amounts Included In Measurement of Liabilities:
Operating cash flows related to finance leases	2,101			1,027
Operating cash flows related to operating leases	15,457			16,659
Weighted Average Remaining Lease Term:
Operating leases	8.8 years			9.3 years
Finance leases	2.4 years			3.1 years
Weighted Average Discount Rate:
Operating leases	5.60		%	5.90		%
Finance leases	5.16		%	5.50		%


	Finance leases		Operating leases
2021 (excluding the three months ended March 31, 2021)	$	62,394	$	30,274
2022	78,946		52,862
2023	43,839		45,139
2024	5,231		41,448
2025	292		33,458
Thereafter	—		167,700
Total future minimum lease payments, undiscounted	190,702		370,881
Less: Imputed interest	(11,047)		(83,750)
Present value of future minimum lease payments	$	179,655	$	287,131


	As of March 31, 2021						As of December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Estimated Useful Lives
Customer relationships	$	6,052,598	$	(3,618,697)	$	2,433,901	$	6,052,598	$	(3,478,742)	$	2,573,856	3 to 18 years
Trade names	1,081,083		(917,820)		163,263		1,081,083		(894,189)		186,894		2 to 5 years
Other amortizable intangibles	56,762		(37,909)		18,853		56,747		(36,381)		20,366		1 to 15 years
	$	7,190,443	$	(4,574,426)	$	2,616,017	$	7,190,428	$	(4,409,312)	$	2,781,116


		Interest Rate			March 31, 2021				December 31, 2020
Date Issued	Maturity Date				Principal Amount		Carrying Amount (a)		Principal Amount		Carrying Amount (a)
CSC Holdings Senior Notes:
November 15, 2011	November 15, 2021	6.750	%		$	1,000,000	$	992,691	$	1,000,000	$	989,917
September 27, 2012	September 15, 2022	5.875	%		649,024		621,617		649,024		617,333
May 23, 2014	June 1, 2024	5.250	%		750,000		700,419		750,000		697,041
October 18, 2018	April 1, 2028	7.500	%		4,118		4,112		4,118		4,112
November 27, 2018	April 1, 2028	7.500	%		1,045,882		1,044,462		1,045,882		1,044,424
July 10 and October 7, 2019	January 15, 2030	5.750	%		2,250,000		2,285,317		2,250,000		2,286,097
June 16, 2020	December 1, 2030	4.625	%		2,325,000		2,369,628		2,325,000		2,370,502
					8,024,024		8,018,246		8,024,024		8,009,426
CSC Holdings Senior Guaranteed Notes:
September 23, 2016	April 15, 2027	5.500	%		1,310,000		1,306,088		1,310,000		1,305,955
January 29, 2018	February 1, 2028	5.375	%		1,000,000		993,677		1,000,000		993,490
November 27, 2018	May 15, 2026	5.500	%		1,498,806		1,488,086		1,498,806		1,487,644
January 24, 2019	February 1, 2029	6.500	%		1,750,000		1,747,309		1,750,000		1,747,245
June 16, 2020	December 1, 2030	4.125	%		1,100,000		1,095,377		1,100,000		1,095,283
August 17, 2020	February 15, 2031	3.375	%		1,000,000		996,760		1,000,000		996,692
					7,658,806		7,627,297		7,658,806		7,626,309
CSC Holdings Restricted Group Credit Facility:
Revolving Credit Facility	(c)	2.358	%	(b)	575,000		566,720		625,000		616,027
Term Loan B	July 17, 2025	2.356	%		2,887,500		2,877,145		2,895,000		2,884,065
Incremental Term Loan B-3	January 15, 2026	2.356	%		1,249,500		1,245,315		1,252,688		1,248,293

Incremental Term Loan B-5	April 15, 2027	2.606	%		2,970,000		2,950,038		2,977,500		2,956,807
					7,682,000		7,639,218		7,750,188		7,705,192
Lightpath Senior Notes:
September 29, 2020	September 15, 2028	5.625	%		415,000		406,400		415,000		406,176
Lightpath Senior Secured Notes:
September 29, 2020	September 15, 2027	3.875	%		450,000		440,791		450,000		440,487
Lightpath Term Loan	November 30, 2027	3.750	%		598,500		581,879		600,000		582,808
Lightpath Revolving Credit Facility		(d)			—		—		—		—
					1,463,500		1,429,070		1,465,000		1,429,471
Collateralized indebtedness (see Note 11)					1,759,017		1,677,985		1,699,566		1,617,506
Finance lease obligations (see Note 8)					179,655		179,655		159,637		159,637
Notes payable and supply chain financing (e)					118,065		118,065		183,690		174,801
					26,885,067		26,689,536		26,940,911		26,722,342
Less: current portion of credit facility debt					(78,750)		(78,750)		(78,750)		(78,750)
Less: current portion of senior notes					(1,000,000)		(992,691)		(1,000,000)		(989,917)
Less: current portion of finance lease obligations					(76,123)		(76,123)		(63,454)		(63,454)
Less: current portion of notes payable and supply chain financing					(110,491)		(110,491)		(113,592)		(113,592)
					(1,265,364)		(1,258,055)		(1,255,796)		(1,245,713)
Long-term debt					$	25,619,703	$	25,431,481	$	25,685,115	$	25,476,629


2021	$	1,166,479
2022	734,667
2023	1,841,383
2024	1,403,889
2025	2,823,750
Thereafter	18,735,244


Derivatives Not Designated as Hedging Instruments	Balance Sheet Location	Fair Value at
		March 31, 2021		December 31, 2020

Asset Derivatives:
Interest rate swap contracts	Derivative contracts, short-term	$	8,252	$	5,132
Prepaid forward contracts	Derivative contracts, short-term	—		45,653
Interest rate swap contracts	Derivative contracts, long-term	—		4,774

		8,252		55,559
Liability Derivatives:
Prepaid forward contracts	Other current liabilities	—		(45,653)
Interest rate swap contracts	Other current liabilities	(12,861)		—
Prepaid forward contracts	Liabilities under derivative contracts, long-term	(301,418)		(247,853)
Interest rate swap contracts	Liabilities under derivative contracts, long-term	(170,984)		(275,297)
		$	(485,263)	$	(568,803)


	Fair Value Hierarchy	March 31, 2021		December 31, 2020
Assets:
Money market funds	Level I	$	150,965	$	50,236
Investment securities pledged as collateral	Level I	2,324,308		2,250,854
Prepaid forward contracts	Level II	—		45,653
Interest rate swap contracts	Level II	8,252		9,906
Liabilities:
Prepaid forward contracts	Level II	(301,418)		293,506
Interest rate swap contracts	Level II	(183,845)		275,297


	Share-Based Compensation				Unrecognized Compensation Costs
	Three Months Ended March 31,
	2021		2020		As of March 31, 2021
Carry Unit Plan	$	759	$	3,120	$	44
Awards issued pursuant to LTIP:
Stock Option Awards	24,223		20,349		123,543
Performance Stock Units	2,982		3,901		60,675
Restricted Awards	317		576		549
	$	28,281	$	27,946	$	184,811


	Number of Time Vesting Awards	Weighted Average Grant Date Fair Value







Balance, December 31, 2020	6,875,000	$	3.41
Vested	(5,375,000)	3.80

Balance, March 31, 2021	1,500,000	$	1.99


	Shares Under Option	Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (a)
Balance at December 31, 2020	37,062,146	$	25.52	8.69	$	457,608
Granted	409,478	34.78
Exercised	(104,365)	17.79
Forfeited	(360,778)	26.10
Balance at March 31, 2021	37,006,481	25.64		8.46	256,796
Options exercisable at March 31, 2021	3,141,750	$	17.55	6.78	$	47,070


Risk-free interest rate			0.93%
Expected life (in years)			6.18
Dividend yield			—%
Volatility			32.92%
Grant date fair value			$10.77



	March 31,		December 31,
	2021		2020


Due from other affiliates and related parties	$	3,795	$	4,262

Due to:
Altice Europe	$	11,472	$	7,938
Other affiliates and related parties	1,226		600


	$	12,698	$	8,538


Decrease in programming costs due to lower video customers, estimated credits expected to be received and lower pay-per-view and video-on-demand costs, partially offset by an increase in costs due to net contractual rate increases	$	(11,136)
Decrease in costs of mobile devices	(3,374)
Decrease in costs of digital media and linear advertising spots for resale	(3,458)
Increase in call completion and transfer costs primarily related to our mobile services, partially offset by a decrease in costs based on a lower level of activity related to our telephony service	3,451
Other net increases	1,867
	$	(12,650)


Net decrease in labor costs and benefits, partially offset by a decrease in capitalizable activity	$	(24,807)
Decrease in bad debt expense	(8,748)
Increase in repairs and maintenance costs	8,001
Increase in marketing costs	6,060
Increase in utility costs primarily due to winter storm Uri	5,707
Increase in legal costs	4,332
Increase in property taxes	2,649
Other net increases	4,930
	$	(1,876)


Decrease due to changes in average debt balances and interest rates on our indebtedness	$	(49,048)
Lower interest income	1,632
Other net increases, primarily amortization of deferred financing costs and original issue discounts	176
	$	(47,240)


	CSC Holdings Restricted Group		Lightpath		Other Unrestricted Entities		Altice USA/CSC Holdings
Debt outstanding:
Credit facility debt	$	7,639,218	$	581,879	$	—	$	8,221,097
Senior guaranteed notes	7,627,297		—		—		7,627,297
Senior secured notes	—		440,791		—		440,791
Senior notes	8,018,246		406,400		—		8,424,646
Subtotal	23,284,761		1,429,070		—		24,713,831
Finance lease obligations	179,655		—		—		179,655
Notes payable and supply chain financing	118,065		—		—		118,065
Subtotal	23,582,481		1,429,070		—		25,011,551
Collateralized indebtedness relating to stock monetizations (a)	—		—		1,677,985		1,677,985
Total debt	$	23,582,481	$	1,429,070	$	1,677,985	$	26,689,536
Interest expense:
Credit facility debt, senior notes, finance leases, notes payable and supply chain financing	$	280,672	$	17,066	$	—	$	297,738
Collateralized indebtedness relating to stock monetizations (a)	—		—		18,601		18,601
Total interest expense	$	280,672	$	17,066	$	18,601	$	316,339


	Maturity Date	Interest Rate	Principal		Carrying Value
CSC Holdings
Revolving Credit Facility (a)	(b)	2.36%	$	575,000	$	566,720
Term Loan B	July 17, 2025	2.36%	2,887,500		2,877,145
Incremental Term Loan B-3	January 15, 2026	2.36%	1,249,500		1,245,315
Incremental Term Loan B-5	April 15, 2027	2.61%	2,970,000		2,950,038
			7,682,000		7,639,218
Lightpath
Revolving Credit Facility (c)	November 30, 2025	—%	—		—
Term Loan	November 30, 2027	3.75%	598,500		581,879
			$	8,280,500	$	8,221,097


	CSC Holdings Restricted Group		Lightpath		Other Unrestricted Entities (a)		Altice USA/ CSC Holdings
2021	$	1,986,441	$	41,868	$	25,345	$	2,053,654
2022	1,770,900		68,973		33,886		1,873,759
2023	1,083,511		69,358		1,776,378		2,929,247
2024	2,365,392		68,038		—		2,433,430
2025	3,733,695		68,596		—		3,802,291
Thereafter	19,868,658		1,570,335		—		21,438,993
Total	$	30,808,597	$	1,887,168	$	1,835,609	$	34,531,374


Fair Value of Equity Derivative Contracts
Fair value as of December 31, 2020, net liability position	$	(247,853)
Change in fair value, net	(53,565)
Fair value as of March 31, 2021, net liability position	$	(301,418)


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

42,955,236	2023	$40.95	$	49.55


	(a) Total Number of Shares (or Units) Purchased	(b) Average Price Paid per Share (or Unit)		(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs (1)(2)	(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs (1)

January 1- January 31	2,520,426	$	35.70	264,434,471	$	1,906,246,308
February 1- February 28	5,893,081	34.61		270,327,552	1,702,290,406
March 1 - March 31	6,766,190	33.81		277,093,742	1,473,557,510


EXHIBIT NO.						DESCRIPTION

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 March 31, 2021 filed with the Securities and Exchange Commission on April 28, 2021 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 (Loss); (iv) the Consolidated Statements of Stockholders' Equity (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.