Exhibit 99.3

 

COX COMMUNICATIONS, INC.

(A Wholly-Owned Subsidiary of Cox Enterprises, Inc.)

TABLE OF CONTENTS

 

 

  Page
Condensed Consolidated Financial Statements as of March 31, 2026 and December 31, 2025 and for the three months ended March 31, 2026 and 2025:  
Condensed Consolidated Balance Sheets (Unaudited) 2
Condensed Consolidated Statements of Operations (Unaudited) 3
Condensed Consolidated Statements of Cash Flows (Unaudited) 4
Condensed Consolidated Statements of Changes in Equity (Unaudited) 5
Notes to Condensed Consolidated Financial Statements (Unaudited) 6

 

-1-

 

 

COX COMMUNICATIONS, INC.

(A Wholly-Owned Subsidiary of Cox Enterprises, Inc.)

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

   March 31,   December 31, 
(in millions)  2026   2025 
ASSETS          
Cash and cash equivalents   $84   $64 
Accounts receivable — net of allowance of $41 and $38, respectively    650    657 
Amounts due from Cox Enterprises, Inc.    4,154    4,025 
Prepaid expenses and other current assets    355    352 
Total current assets    5,243    5,098 
Property and equipment — net    12,534    12,603 
Goodwill    1,260    1,260 
Intangible assets — net    11,366    11,374 
Other noncurrent assets    385    394 
TOTAL ASSETS   $30,788   $30,729 
           
LIABILITIES AND EQUITY          
Accounts payable   $516   $497 
Accrued labor and benefits    331    482 
Accrued programming costs    167    180 
Accrued expenses and other current liabilities    790    790 
Current portion of long-term debt    1,042    1,038 
Total current liabilities    2,846    2,987 
Long-term debt    11,464    11,474 
Deferred income taxes    4,545    4,446 
Other noncurrent liabilities    454    873 
Total liabilities    19,309    19,780 
EQUITY          
Common stock, $1.00 par value; 1,000 shares authorized and 100 shares issued and outstanding         
Additional paid-in capital    4,568    4,540 
Retained earnings    6,911    6,409 
Total equity    11,479    10,949 
TOTAL LIABILITIES AND EQUITY   $30,788   $30,729 

 

See notes to Condensed Consolidated Financial Statements.

 

-2-

 

 

COX COMMUNICATIONS, INC.

(A Wholly-Owned Subsidiary of Cox Enterprises, Inc.)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

   Three Months Ended March 31, 
(in millions)  2026   2025 
REVENUES   $3,059   $3,183 
           
OPERATING EXPENSES:          
Operating costs and expenses (a)    1,740    1,922 
Depreciation and amortization    538    544 
Other — net    46    (15)
Total operating expenses    2,324    2,451 
           
OPERATING INCOME    735    732 
           
NON-OPERATING EXPENSES:          
Interest expense — net    (111)   (108)
Investments income (expense) — net    1    (41)
Miscellaneous income — net    15    7 
Total non-operating expenses    (95)   (142)
           
INCOME BEFORE INCOME TAXES    640    590 
INCOME TAX EXPENSE    (138)   (129)
NET INCOME   $502   $461 

 

(a) See Note 8 — Transactions with Affiliated Companies and Related Parties for impacts associated with related parties.

 

See notes to Condensed Consolidated Financial Statements.

 

-3-

 

 

COX COMMUNICATIONS, INC.

(A Wholly-Owned Subsidiary of Cox Enterprises, Inc.)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

   Three Months Ended March 31, 
(in millions)  2026   2025 
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net income   $502   $461 
Adjustments to reconcile net income to net cash provided by operating activities:          
Depreciation and amortization    538    544 
Deferred income taxes    11    (9)
Investments (income) expense — net    (1)   41 
Provision for credit losses    21    18 
Restructuring and other    26    (144)
Changes in certain assets and liabilities:          
(Increase) decrease in accounts receivable    (14)   14 
Increase in prepaid expenses and other assets    (5)   (20)
Increase (decrease) in accounts payable    19    (30)
Decrease in accrued expenses and other liabilities    (479)   (185)
Other — net    6    (12)
Net cash provided by operating activities    624    678 
           
CASH FLOWS FROM INVESTING ACTIVITIES:          
Capital expenditures    (463)   (501)
(Increase) decrease in amounts due from Cox Enterprises, Inc.    (129)   515 
Other — net        3 
Net cash (used in) provided by investing activities    (592)   17 
           
CASH FLOWS FROM FINANCING ACTIVITIES:          
Repayment of debt    (7)   (706)
Other — net    (5)   (3)
Net cash used in financing activities    (12)   (709)
           
NET CHANGE IN CASH AND CASH EQUIVALENTS    20    (14)
           
CASH AND CASH EQUIVALENTS — Beginning of period    64    97 
           
CASH AND CASH EQUIVALENTS — End of period   $84   $83 

 

See notes to Condensed Consolidated Financial Statements.

 

-4-

 

 

COX COMMUNICATIONS, INC.

(A Wholly-Owned Subsidiary of Cox Enterprises, Inc.)

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Unaudited)

 

 

(in millions) 

Common

Stock

   Additional Paid-In Capital  

Retained

Earnings

   Total 
BALANCE — January 1, 2026   $   $4,540   $6,409   $10,949 
Net income            502    502 
Contribution to capital from Cox Enterprises, Inc.        28        28 
BALANCE — March 31, 2026   $   $4,568   $6,911   $11,479 

 

(in millions) 

Common

Stock

   Additional Paid-In Capital  

Retained

Earnings

   Total 
BALANCE — January 1, 2025   $   $4,429   $10,057   $14,486 
Net income            461    461 
BALANCE — March 31, 2025   $   $4,429   $10,518   $14,947 

 

See notes to Condensed Consolidated Financial Statements.

 

-5-

 

 

COX COMMUNICATIONS, INC.

(A Wholly-Owned Subsidiary of Cox Enterprises, Inc.)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

  

1.      DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND OTHER ITEMS

 

Cox Communications, Inc. (together with its consolidated subsidiaries, "Cox" or "the Company"), a wholly-owned subsidiary of Cox Enterprises, Inc. ("CEI"), is committed to creating meaningful moments of human connection through technology. As the largest private broadband company in the United States, Cox operates fiber-powered networks in more than 30 states, providing connections and advanced managed IT and cloud services for homes and businesses. Cox Mobile, Cox’s mobile phone service, is available across markets nationwide. The commercial division of Cox, Cox Business, provides a broad commercial solutions portfolio, including advanced managed IT and cloud services and fiber-based network solutions that support connected environments, unique hospitality experiences and diverse applications.

 

Basis of Presentation

 

The accompanying unaudited interim Condensed Consolidated Financial Statements of Cox have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnote disclosures required by GAAP for complete consolidated financial statements. In the opinion of management, the unaudited interim Condensed Consolidated Financial Statements include all adjustments, of a normal recurring nature, necessary for a fair presentation of the condensed consolidated results of operations, financial position and cash flows for the interim periods presented. All intercompany transactions and account balances have been eliminated in consolidation. Cox has included the results of operations of acquired companies from the date of acquisition. These unaudited interim Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes therein as of and for the year ended December 31, 2025. Results of operations for interim periods are not necessarily indicative of results that might be expected for future interim periods or for the full year ending December 31, 2026.

 

Use of Estimates

 

The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting periods. Estimates are evaluated based on available information and experience, as well as other assumptions Cox believes reasonable under the circumstances. Actual results could differ from those estimates.

 

-6-

 

 

Revenue Recognition

 

   Three Months Ended March 31, 
(in millions)  2026   2025 
Residential        
Data   $1,386   $1,478 
Video    586    620 
Telephony    41    53 
Other (a)    135    138 
Total residential    2,148    2,289 
           
Commercial    861    843 
Advertising    50    51 
Total revenues   $3,059   $3,183 

 

(a) Other residential revenues includes franchise, regulatory, and customer late fees, service protection fees, Cox Mobile and other miscellaneous revenues.

 

Operating Costs and Expenses

 

   Three Months Ended March 31, 
(in millions)  2026   2025 
Programming costs   $441   $503 
Other costs of revenue    272    284 
Field and technology operations    230    256 
Customer operations    50    52 
Sales and marketing    252    267 
General and administrative    495    560 
Total operating costs and expenses   $1,740   $1,922 

 

Subsequent Events

 

Cox has evaluated events that occurred subsequent to March 31, 2026 for potential recognition and disclosure. Any applicable subsequent events have been evaluated through May 5, 2026, the date of issuance of the unaudited Condensed Consolidated Financial Statements.

 

2.      DIVESTITURE

 

Pending Divestiture of Cox — In May 2025, Charter Communications, Inc. (“Charter”) and Charter Communications Holdings, LLC (“Charter Holdings”) entered into a transaction agreement (“Transaction Agreement”) with CEI. Pursuant to the Transaction Agreement, at the closing of the transactions, (i) CEI will sell and transfer to Charter 100% of the equity interests of certain subsidiaries of Cox that conduct Cox’s commercial fiber and managed IT and cloud services businesses, (ii) CEI will contribute the equity interests of Cox and certain other assets (other than certain excluded assets) primarily relating to Cox’s residential cable business to Charter Holdings, and (iii) CEI will pay $1.00 to Charter (collectively the "Cox Transactions"). The combined entity will assume Cox's approximately $12.4 billion in outstanding net debt and finance leases.

 

On July 31, 2025, Charter’s shareholders approved the Transaction Agreement.

 

-7-

 

 

3.      SUPPLEMENTAL CASH FLOW INFORMATION

 

Cox's significant non-cash investing and financing transactions and other supplemental cash flow information are as follows:

 

   Three Months Ended March 31, 
(in millions)  2026   2025 
Significant noncash transactions:          
Contribution to capital from Cox Enterprises, Inc.   $28   $ 
Property and equipment acquired under finance leases and other financing arrangements        140 
           
Supplemental cash flow information:          
Cash paid for interest   $166   $178 
Cash paid for income taxes (a)    127    138 

 

(a) The amounts disclosed as income taxes paid include both cash tax payments made directly to taxing authorities and payments made by Cox to its parent in settlement of its share of consolidated income tax obligations.

 

4.      RESTRUCTURING

 

During 2024, Cox announced a new organizational structure, which allocates needed resources to growth areas of the business. As a result, certain restructuring initiatives were implemented, which include severance costs. Restructuring related charges are recorded to other — net on the Condensed Consolidated Statement of Operations.

 

The following represents the changes in the balances of the restructuring-related liabilities, which are reflected within accrued compensation and benefits in the Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025.

 

(in millions)  March 31, 2026   December 31, 2025 
Balance at beginning of period   $4   $180 
Expense(a)         
Payments    (2)   (176)
Balance at end of period   $2   $4 

 

(a) Restructuring-related charges were recorded to other — net on the Condensed Consolidated Statement of Operations.

 

-8-

 

 

5.      DEBT

 

      March 31, 2026   December 31, 2025 
(in millions)  Annual Interest
Rate
  Carrying
Value
   Fair Value   Carrying
Value
   Fair Value 
Notes and debentures with maturities (a):                       
Five years or less   1.80% to 6.95%  $3,889   $3,800   $3,889   $3,160 
Between five and 10 years   2.60% to 5.70%   3,000    2,813    3,000    3,514 
Greater than 10 years   2.95% to 8.38%   4,960    3,875    4,960    3,957 
Total notes and debentures       11,849   $10,488    11,849   $10,631 
Finance lease obligations (b)(c)   0.47% to 8.24%   730         737      
Less unamortized discounts, premiums and issuance costs       (73)        (74)     
Total debt       12,506         12,512      
Less current maturities (b)       1,042         1,038      
Total long-term debt      $11,464        $11,474      

 

(a) Require semi-annual cash interest payments based on their issuance dates.
(b) Current portion of finance lease obligations totaled $42 million and $38 million as of March 31, 2026 and December 31, 2025, respectively.
(c) Cox leases certain office facilities, cable transmission and distribution facilities, customer premise equipment and automobiles under finance leases

 

Guarantee Agreements

 

Cox is a party to an amended and restated credit agreement among Cox and CEI, as borrowers, and JP Morgan Chase Bank, N.A., as administrative agent, and certain other lenders and agents (the “Credit Facility”). CEI designated Cox as a restricted subsidiary under the Credit Facility. At the same time, Cox provided an unconditional guarantee of CEI’s obligations under the Credit Facility and CEI also provided an unconditional guarantee of Cox's obligations under the Credit Facility, which will be automatically released upon the release of Cox's guarantee of CEI's obligations under the Credit Facility. Cox will also guarantee CEI’s obligations under CEI’s commercial paper program. As of March 31, 2026 and December 31, 2025, CEI had no outstanding obligations under the Credit Facility and no outstanding commercial paper subject to Cox’s guarantee.

 

In addition, Cox and CEI provide unconditional cross-guarantees of the other’s obligations under each company’s respective outstanding notes (except for Cox's 6.53% debentures due 2028, of which no material amounts are outstanding). CEI and Cox may release their obligations under the cross-guarantee simultaneously with the other party’s release or in other customary circumstances. As of March 31, 2026 and December 31, 2025, CEI had $175 million of outstanding notes subject to Cox's guarantee.

 

6.      COMMITMENTS AND CONTINGENCIES

 

At the time of divesting an ownership interest in an entity, Cox sometimes agrees to indemnify the buyer for certain liability risks. Cox believes that any liability to the Company that may arise as a result of such indemnification agreements will not have a material adverse effect on the company taken as a whole.

 

Legal Proceedings

 

Sony Music et al. — In July 2018, Sony Music Entertainment Inc., Warner Bros. Records Inc., Universal Music Corp. and several other music publishers and recording companies filed a copyright infringement lawsuit against Cox. The plaintiffs allege that Cox’s practices of handling Digital Millennium Copyright Act notices resulted in willful copyright infringement with respect to thousands of songs. Plaintiffs are seeking monetary damages.

 

-9-

 

 

In December 2019, a jury returned a verdict of $1.0 billion against Cox, and a finding of contributory infringement, vicarious infringement and willfulness. Following various post-trial motions, Cox appealed to the United States Court of Appeals for the Fourth Circuit. In addition to the merits appeal, Cox filed two Rule 60 motions in the trial court seeking relief from the verdict; those Rule 60 motions were heard and denied by the trial court in March 2022. Cox appealed the Rule 60 rulings to the Fourth Circuit, which held the Rule 60 appeal in abeyance until after the merits appeal. In February 2024, the Fourth Circuit affirmed the jury's finding of willful contributory infringement but reversed the jury's finding of vicarious liability and vacated the $1.0 billion judgment against Cox. Both parties' petitions for a rehearing en banc were denied by the Fourth Circuit. Cox also filed motions in the Fourth Circuit seeking partial appellate costs and an update regarding the Rule 60 appeal. Briefing concluded in the Rule 60 appeal in September 2024. Cox filed an unopposed motion to release the appeal bond, which was granted in May 2024. Cox’s motion for costs on the judgment bond was denied in August 2024. The trial proceeding has been stayed by the Fourth Circuit until the resolution of the Rule 60 appeal. In November 2024, in response to writs of certiorari filed by both parties, the United States Supreme Court called for the view of the United States Solicitor General. In May 2025, the United States Solicitor General submitted its brief amicus curiae recommending that Cox’s writ of certiorari be granted and Sony’s writ of certiorari be denied. In June 2025, the United States Supreme Court granted Cox’s writ of certiorari and denied Sony’s writ of certiorari. Cox’s opening brief was filed in August 2025. Oral argument was held in December 2025. In March 2026, the United States Supreme Court reversed the Fourth Circuit's judgment, holding that as a matter of law, Cox’s conduct did not meet the standard for contributory copyright infringement. Following remand to the Fourth Circuit, Cox expects the Fourth Circuit to vacate its opinion, then enter its own judgment reversing and directing the district court to enter judgment in Cox’s favor. After a mandate issues from the Fourth Circuit, the district court should also enter judgment for Cox.

 

TQ Delta — In July 2015, TQ Delta filed an action against Cox alleging patent infringement of eight patents related to the Multimedia over Coax Alliance standard, parts of which are alleged to be implemented in Whole Home DVR. The plaintiff voluntarily dropped two patents in response to the court’s requirement that the number of claims be reduced. Inter Partes Reviews ("IPRs") were filed against the remaining six patents. The Patent Trial and Appeal Board invalidated four of the patents during the IPR proceeding, but two patents survived on appeal to the United States Court of Appeal for the Federal Circuit. The parties have engaged in expert discovery and are awaiting rulings on claim construction and summary judgment. Trial is scheduled for October 2027. The outcome of this matter cannot be predicted at this time.

 

Entropic — In February 2023, Entropic Communications filed two separate actions against Cox alleging patent infringement. The first case was brought with twelve patents and was related to the Multimedia over Coax Alliance standard. The second case was brought with ten patents with allegations related to the DOCSIS ("Data Over Cable Service Interface Speculation") and DOCSIS adjacent technologies. Through patent challenges brought both with the Court and the Patent Trial and Appeals Board ("PTAB"), sixteen patents were effectively invalidated. Entropic is in the process of appealing the rulings of invalidity issued by the U.S. Patent Office to the Federal Circuit. There has been no activity in these cases beyond Claim Construction hearings and no schedule has been set in either case. The outcome of this matter cannot be predicted at this time.

 

Other Patent Matters — Cox is a defendant or co-defendant in several lawsuits involving alleged infringement of various patents relating to various aspects of its businesses. In the event that a court ultimately determines that Cox infringes on any intellectual property rights, Cox may be subject to substantial damages and/or an injunction that could require Cox or its vendors to modify certain products and services Cox offers to its subscribers, as well as negotiate royalty or license agreements with respect to the patents at issue. While Cox intends to vigorously defend the actions, no assurance can be given that any adverse outcome would not be material to Cox's Condensed Consolidated Financial Statements. Cox cannot predict the outcome of any of these matters nor can it reasonably estimate a range of possible loss at this time.

 

-10-

 

 

Other Legal Proceedings — Cox and its subsidiaries are parties to various other legal proceedings that are ordinary and incidental to their businesses.

 

7.      FAIR VALUE MEASUREMENTS

 

Cox measures certain financial assets and liabilities at fair value on a recurring basis and also measures certain nonfinancial assets at fair value on a nonrecurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability as defined in the below fair value hierarchy:

 

Level 1 — Observable inputs such as quoted prices in active markets;

 

Level 2 — Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and

 

Level 3 — Unobservable inputs in which there is little or no market data, which require an entity to develop its own assumptions.

 

Recurring Fair Value Measurements

 

Cash Equivalents — Cox's cash equivalents are measured at fair value on a recurring basis and generally consist of money market funds, time deposits and commercial paper. The fair values of Cox's cash equivalents fall within Level 1 of the fair value hierarchy and are based on a market approach using quoted prices and other relevant information generated by market transactions involving identical or comparable assets.

 

Debt — Cox's notes and debentures as of March 31, 2026 and December 31, 2025 is based on inputs other than quoted prices in active markets, that are observable either directly or indirectly and are classified within Level 2.

 

Other Financial Instruments — The carrying amounts of the Cox’s accounts receivable, accounts payable and other current assets and liabilities approximate fair value due to their short-term maturities and/or nature of these instruments.

 

Non-Recurring Fair Value Measurements

 

Cox's nonfinancial assets (such as property and equipment, goodwill and intangible assets), equity method investments and nonmarketable equity securities are not measured at fair value on a recurring basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence that an impairment may exist. Inputs used in these fair value measurements are often unobservable and may require judgment, which could affect the ascribed fair values.

 

-11-

 

 

8.      TRANSACTIONS WITH AFFILIATED COMPANIES

 

For all periods presented in the Condensed Consolidated Financial Statements, related party transactions and activities between Cox, CEI and other CEI subsidiaries may not have been consummated on terms equivalent to those that would prevail in an arm’s-length transaction where conditions of competitive, free-market dealing may exist.

 

Allocated Expenses from CEI

 

Allocated expenses as shown in the table below are directly calculated or based on CEI's estimate of services provided to Cox in relation to those provided to other CEI subsidiaries. Cox believes that these allocations were made on a reasonable basis. However, the allocations are not necessarily indicative of the level of expenses that might have been incurred had Cox contracted directly with third parties.

 

   Three Months Ended March 31, 
(in millions)  2026   2025 
Employee Benefit Plans          
Healthcare and other employee benefits   $68   $64 
Qualified and nonqualified pension (a)    1    18 
401(k) Plan    19    19 
Postemployment and postretirement benefits (a)    4    5 
Long-term incentive compensation    28    34 
Other Allocated Expenses (b)          
Management services    65    69 
Occupancy-related services    8    7 

 

(a) The service cost component related to Cox’s qualified and nonqualified pension plans and postretirement benefits is recorded to operating costs and expenses on the Condensed Consolidated Statements of Operations. The non-service cost component, which includes interest cost, expected return on plan assets, prior service cost amortization and actuarial loss amortization, is recorded to miscellaneous income — net on the Condensed Consolidated Statements of Operations.
(b) Cox receives certain management (e.g., legal, corporate secretarial, tax, cash management, treasury, internal audit, risk management, employee benefit administration and other support services) and occupancy-related (e.g., repairs and maintenance, utilities, insurance and property taxes) services from CEI.

 

Amounts due from CEI

 

Cox receives day-to-day cash management services from CEI, with settlements of outstanding balances between Cox and CEI occurring periodically. The amounts due from CEI are due on demand and represent the net balance of the intercompany transactions. The interest rate is based on CEI's internal borrowing rate, generally determined from CEI's rates under the Credit Facility, which ranged from 3.76% to 3.78% during the three months ended March 31, 2026, and 4.41% to 4.43% during the three months ended March 31, 2025. The associated interest income was $41 million and $45 million for the three months ended March 31, 2026 and 2025, respectively.

 

Other Related Party Transactions

 

There are various other related party activities between Cox and related parties that individually and in the aggregate, are not material to Cox's Condensed Consolidated Financial Statements.

 

-12-