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Revenue Recognition Accounting Policy

Revenues from residential and commercial video, Internet and voice services are recognized when the related services are provided. Advertising sales are recognized at estimated realizable values in the period that the advertisements are broadcast. In some cases, Charter coordinates the advertising sales efforts of other cable operators in a certain market and remits amounts received from customers less an agreed-upon percentage to such cable operator. For those arrangements in which Charter acts as a principal, Charter records the revenues earned from the advertising customer on a gross basis and the amount remitted to the cable operator as an operating expense.

Fees imposed on Charter by various governmental authorities are passed through on a monthly basis to Charter's customers and are periodically remitted to authorities. Fees of $961 million, $711 million and $255 million for the years ended December 31, 2017, 2016 and 2015, respectively, are reported in video, voice and commercial revenues, on a gross basis with a corresponding operating expense because Charter is acting as a principal. Other taxes, such as sales taxes imposed on Charter's customers, collected and remitted to state and local authorities, are recorded on a net basis because Charter is acting as an agent in such situation.

Source: Charter Communications Inc., Annual Report


Revenues as Reported

Charter Communications Inc., Income Statement, Revenues

USD $ in millions

12 months ended Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Residential revenue
Small and medium business
Commercial revenue
Advertising sales

Source: Charter Communications Inc. Annual Reports

Item Description The company
Revenues Aggregate revenue recognized during the period (derived from goods sold, services rendered, insurance premiums, or other activities that constitute an entity's earning process). For financial services companies, also includes investment and interest income, and sales and trading gains. Charter Communications Inc.'s revenues increased from 2015 to 2016 and from 2016 to 2017.