ÎçҹѰ»¨



Exhibit 99.2

ÎçҹѰ»¨
Condensed Pro Forma Consolidated Financial Statements
December 31, 2012
(unaudited)



On May 3, 2013, ÎçҹѰ»¨ (the “Company”), through a wholly-owned subsidiary, acquired (i) 26,858,577 shares of Class A common stock (“Charter Common Stock”), par value $0.001 per share, of Charter Communications, Inc. (“Charter”) for $95.50 per share and (ii) warrants to purchase 947,094 shares of Charter Common Stock with an exercise price of $46.86 and warrants to purchase 136,202 shares of Charter Common Stock with an exercise price of $51.28 (the “Warrants”) for $95.50 per Warrant less the applicable exercise price.

The following unaudited condensed pro forma consolidated financial statements have been prepared giving effect to the acquisition of Charter as if it occurred as of December 31, 2012 and March 31, 2013 for the condensed pro forma consolidated balance sheets and January 1, 2012 for the condensed pro forma consolidated statements of operation. The unaudited condensed pro forma consolidated financial statements do not purport to represent what ÎçҹѰ»¨'s financial position actually would have been had the acquisition of Charter occurred on the dates indicated or to project ÎçҹѰ»¨'s operating results for any future period. The pro forma adjustments are based upon available information and certain assumptions that ÎçҹѰ»¨'s management believes are reasonable. The unaudited condensed pro forma consolidated financial statements should be read in conjunction with the publicly available information of ÎçҹѰ»¨, including the Form 10-K, as filed on February 27, 2012 with the Securities and Exchange Commission (the “SEC”).




ÎçҹѰ»¨
Condensed Pro Forma Consolidated Balance Sheet
December 31, 2012
(unaudited)

 
 
ÎçҹѰ»¨
 
 
 
ÎçҹѰ»¨
 
 
 
Media
 
Pro Forma
 
Media
 
 
 
historical (1)
 
adjustments (2)
 
pro forma
 
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
1,353

 
(1,254
)
 
99

 
Other current assets
 
858

 
—

 
858

 
Investments in available-for-sale securities
 
1,392

 
—

 
1,392

 
Investments in affiliates, accounted for using the equity method
 
3,341

 
2,624

 
5,965

 
Property and equipment, net
 
207

 
—

 
207

 
Intangible assets not subject to amortization
 
475

 
—

 
475

 
Intangible assets subject to amortization, net
 
120

 
—

 
120

 
Other assets, at cost, net of accumulated amortization
 
579

 
—

 
579

 
Total assets
 
$
8,325

 
1,370

 
9,695

 
 
 
 
 
 
 
 
 
Liabilities and Equity
 
  

 
 
 
 
 
Current liabilities
 
$
385

 
—

 
385

 
Long-term debt
 
536

 
1,370

 
1,906

 
Deferred income tax liabilities
 
802

 
—

 
802

 
Other liabilities
 
170

 
—

 
170

 
Total liabilities
 
1,893

 
1,370

 
3,263

 
 
 
 
 
 
 
 
 
Total stockholders' equity
 
6,440

 
—

 
6,440

 
Noncontrolling interests in equity of subsidiaries
 
(8
)
 
—

 
(8
)
 
Total equity
 
6,432

 
—

 
6,432

 
 
 
 
 
 
 
 
 
Total liabilities and equity
 
$
8,325

 
1,370

 
9,695

 
 
 
 
 
 
 
 





ÎçҹѰ»¨
Condensed Pro Forma Consolidated Balance Sheet
March 31, 2013
(unaudited)

 
 
ÎçҹѰ»¨
 
 
 
ÎçҹѰ»¨
 
 
 
Media
 
Pro Forma
 
Media
 
 
 
historical (1)
 
adjustments (2)
 
pro forma
 
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
1,900

 
(1,254
)
 
646

 
Other current assets
 
1,558

 
—

 
1,558

 
Investments in available-for-sale securities
 
1,266

 
—

 
1,266

 
Investments in affiliates, accounted for using the equity method
 
870

 
2,624

 
3,494

 
Property and equipment, net
 
1,783

 
—

 
1,783

 
Intangible assets not subject to amortization
 
23,889

 
—

 
23,889

 
Intangible assets subject to amortization, net
 
1,039

 
—

 
1,039

 
Other assets, at cost, net of accumulated amortization
 
91

 
—

 
91

 
Total assets
 
$
32,396

 
1,370

 
33,766

 
 
 
 
 
 
 
 
 
Liabilities and Equity
 
  

 
 
 
 
 
Current liabilities
 
$
2,452

 
—

 
2,452

 
Long-term debt
 
2,415

 
1,370

 
3,785

 
Deferred income tax liabilities
 
2,346

 
—

 
2,346

 
Other liabilities
 
432

 
—

 
432

 
Total liabilities
 
7,645

 
1,370

 
9,015

 
 
 
 
 
 
 
 
 
Total stockholders' equity
 
14,277

 
—

 
14,277

 
Noncontrolling interests in equity of subsidiaries
 
10,474

 
—

 
10,474

 
Total equity
 
24,751

 
—

 
24,751

 
 
 
 
 
 
 
 
 
Total liabilities and equity
 
$
32,396

 
1,370

 
33,766

 
 
 
 
 
 
 
 





ÎçҹѰ»¨
Condensed Pro Forma Consolidated Statement of Operations
Year ended December 31, 2012
(unaudited)

 
 
ÎçҹѰ»¨
 
 
 
ÎçҹѰ»¨
 
 
 
Media
 
Pro Forma
 
Media
 
 
 
historical (1)
 
adjustments (3)
 
pro forma
 
 
 
 
 
 
 
 
 
Revenue
 
$
1,999

 
—

 
1,999

 
Operating costs and expenses:
 
  

 
 
 
 
 
Operating and Selling, general and administrative, including stock-based compensation
 
1,615

 
—

 
1,615

 
Depreciation and amortization
 
58

 
—

 
58

 
 
 
1,673

 
—

 
1,673

 
Operating income
 
326

 
—

 
326

 
Interest expense
 
(33
)
 
(39
)
 
(72
)
 
Share of earnings (loss)
 
1,346

 
(161
)
 
1,185

 
Realized and unrealized gains (losses) on financial instruments, net
 
232

 
—

 
232

 
Other income (expense)
 
141

 
—

 
141

 
Earnings (loss) from continuing operations before income taxes
 
2,012

 
(200
)
 
1,812

 
Income tax (expense) benefit
 
(600
)
 
76

 
(524
)
 
Net earnings (loss)
 
1,412

 
(124
)
 
1,288

 
Less net loss attributable to the noncontrolling interests
 
(2
)
 
—

 
(2
)
 
Net earnings (loss) attributable to ÎçҹѰ»¨ stockholders
 
$
1,414

 
(124
)
 
1,290

 
 
 
 
 
 
 
 
 
ProForma basic net earnings (loss) attributable to ÎçҹѰ»¨ Spinco stockholders per common share:
 
Series A and Series B ÎçҹѰ»¨ Media common stock
 
$
11.78

 
 
 
$
10.75

 
 
 
 
 
 
 
 
 
ProForma diluted net earnings (loss) attributable to ÎçҹѰ»¨ Spinco stockholders per common share:
 
Series A and Series B ÎçҹѰ»¨ Media common stock
 
$
11.40

 
 
 
$
10.40

 
 
 
 
 
 
 
 
 
Basic
 
120

 
 
 
120

 
Diluted
 
124

 
 
 
124

 





ÎçҹѰ»¨
Condensed Pro Forma Consolidated Statement of Operations
Three months ended March 31, 2013
(unaudited)

 
 
ÎçҹѰ»¨
 
 
 
ÎçҹѰ»¨
 
 
 
Media
 
Pro Forma
 
Media
 
 
 
historical (1)
 
adjustments (3)
 
pro forma
 
 
 
 
 
 
 
 
 
Revenue
 
$
789

 
—

 
789

 
Operating costs and expenses:
 
  

 
 
 
 
 
Operating and Selling, general and administrative, including stock-based compensation
 
559

 
—

 
559

 
Depreciation and amortization
 
70

 
—

 
70

 
 
 
629

 
—

 
629

 
Operating income
 
160

 
—

 
160

 
Interest expense
 
(11
)
 
(10
)
 
(21
)
 
Share of earnings (loss)
 
17

 
(31
)
 
(14
)
 
Realized and unrealized gains (losses) on financial instruments, net
 
97

 
—

 
97

 
Gain (loss) on transactions, net
 
7,479

 
—

 
7,479

 
Other income (expense)
 
7

 
—

 
7

 
Earnings (loss) from continuing operations before income taxes
 
7,749

 
(41
)
 
7,708

 
Income tax (expense) benefit
 
361

 
15

 
376

 
Net earnings (loss)
 
8,110

 
(26
)
 
8,084

 
Less net loss attributable to the noncontrolling interests
 
48

 
—

 
48

 
Net earnings (loss) attributable to ÎçҹѰ»¨ stockholders
 
$
8,062

 
(26
)
 
8,036

 
 
 
 
 
 
 
 
 
ProForma basic net earnings (loss) attributable to ÎçҹѰ»¨ Spinco stockholders per common share:
 
Series A and Series B ÎçҹѰ»¨ Media common stock
 
$
67.75

 
 
 
$
67.53

 
 
 
 
 
 
 
 
 
ProForma diluted net earnings (loss) attributable to ÎçҹѰ»¨ Spinco stockholders per common share:
 
Series A and Series B ÎçҹѰ»¨ Media common stock
 
$
66.63

 
 
 
$
66.42

 
 
 
 
 
 
 
 
 
Basic
 
119

 
 
 
119

 
Diluted
 
121

 
 
 
121

 




ÎçҹѰ»¨
Notes to Condensed Pro Forma Consolidated Financial Statements
(unaudited)


(1)
Represents the historical financial position and results of operations of ÎçҹѰ»¨. Such amounts were derived from the historical consolidated financial statements of ÎçҹѰ»¨ as filed on Form 10-K on February 27, 2013 and Form 10-Q on May 9, 2013, respectively, with the SEC.

(2)
The pro forma adjustments to the balance sheet are the result of the acquisition of ÎçҹѰ»¨'s equity interest in Charter using a combination of cash on hand and additional financing arrangements.

(3)
The pro forma adjustments to the statement of operations are related to: (1) the interest that would have been incurred on the new long-term debt utilized to fund the direct purchase of the Charter Common Stock at the current rates on the debt; (2) the pro forma adjustment for ÎçҹѰ»¨'s proportionate share of earnings (losses) based on the equity percentage acquired as of May 3, 2017 applied to the historical net loss for Charter in the periods provided; (3) the amortization of certain assets acquired after the application of purchase accounting on the excess of the purchase price over the book value of Charter acquired; and (4) a provision of income taxes on the pro forma adjustments.