Business Context and Reporting Period
This Form 8-K is filed by Altice USA, Inc. (not Optimum Communications, Inc.) on May 21, 2018. The filing serves to recast prior period financial information for the years ended December 31, 2017, and 2016. The recasting reflects the retrospective adoption of Accounting Standards Update (ASU) No. 2014-09 (ASC 606) regarding revenue recognition and ASU No. 2017-07 regarding retirement benefits. Additionally, the filing incorporates the acquisition of Altice Technical Services US Corp. (ATS), which occurred in March 2018. As this was a combination of businesses under common control, ATS results are included from its commencement in April 2017.
Key Financial Metrics
This filing is a procedural report regarding accounting restatements and does not contain specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. The updated financial data is contained within the attached exhibits (99.1 through 99.4) and the XBRL data (Exhibit 101), which are incorporated by reference but not detailed in the text of this summary.
Material Changes Versus Prior Period
- Accounting Standards Adoption: Financial statements for 2016 and 2017 have been recast to reflect the adoption of ASC 606 (Revenue from Contracts with Customers) and ASU 2017-07 (Compensation-Retirement Benefits).
- Acquisition of ATS: The results of operations, assets, and liabilities of Altice Technical Services US Corp. (ATS) have been combined with the Company's results for all periods since ATS began operations in April 2017.
- Scope of Update: This report updates the 2017 Annual Report on Form 10-K (filed March 6, 2018) but does not reflect events occurring after that date.
Guidance, Outlook, and Risks
The filing does not provide new guidance, outlook, or management commentary regarding future performance. It explicitly states that for developments occurring subsequent to the 2017 Annual Report, investors should refer to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2018. No specific risks or contingencies are detailed in the text of this 8-K beyond the standard disclosure of accounting changes.
Important Facts for Investors to Verify
- Review Exhibits 99.1 through 99.4 to see the specific numerical impact of the ASC 606 adoption and the ATS acquisition on historical financial statements.
- Confirm the specific adjustments to revenue recognition policies and retirement benefit liabilities in the updated notes to the financial statements.
- Refer to the Form 10-Q filed on May 14, 2018 for the most recent operational results and any events occurring after the 2017 fiscal year-end.
- Note that the registrant is Altice USA, Inc., not Optimum Communications, Inc., despite the latter being a subsidiary brand.