Charter Communications Inc (CHTR) 2017 Q1 法說會逐字稿

Good morning. My name is Kim, and I'll be your conference operator today. At this time, I would like to welcome everyone to Charter's First Quarter 2017 Investor Call. (Operator Instructions) Stefan Anninger, you may begin your conference, sir.

早安.我叫金，今天我將擔任你們的會議接線生。在此，我謹代表Charter公司歡迎各位參加2017年第一季投資人電話會議。（操作員指示）斯特凡·安寧格先生，您可以開始您的會議了。

Good morning, and welcome to Charter's First Quarter 2017 Investor Call. The presentation that accompanies this call can be found on our website, ir.charter.com, under the Financial Information section.

早安，歡迎參加Charter公司2017年第一季投資人電話會議。本次電話會議的簡報可在我們的網站 ir.charter.com 的「財務資訊」部分找到。

Before we proceed, I would like to remind you that there are a number of risk factors and other cautionary statements contained in our SEC filings, including our most recent proxy statement and Forms 10-K and 10-Q. We will not review those risk factors and other cautionary statements on this call. However, we encourage you to read them carefully. Various remarks that we make on this call concerning expectations, predictions, plans and prospects constitute forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ from historical or anticipated results. Any forward-looking statements reflect management's current view only, and Charter undertakes no obligation to revise or update such statements or to make additional forward-looking statements in the future.

在我們繼續之前，我想提醒各位，我們的美國證券交易委員會文件中包含許多風險因素和其他警示性聲明，包括我們最新的委託書聲明以及 10-K 表格和 10-Q 表格。本次電話會議我們將不討論這些風險因素和其他警示性聲明。不過，我們建議您仔細閱讀。我們在本次電話會議中就預期、預測、計畫和前景所作的各種評論構成前瞻性陳述。這些前瞻性陳述存在風險和不確定性，可能導致實際結果與歷史結果或預期結果有所不同。任何前瞻性陳述僅反映管理階層目前的觀點，Charter 不承擔任何義務修改或更新此類陳述，也不承擔未來作出其他前瞻性陳述的義務。

During the course of today's call, we will be referring to non-GAAP measures as defined and reconciled in our earnings materials. These non-GAAP measures, as defined by Charter, may not be comparable to measures with similar titles used by other companies. We will also refer to pro forma results. While the Time Warner Cable and Bright House transactions closed on May 18, 2016, these pro forma results present information regarding the combined operations as if the transactions had closed on January 1, 2015, in order to provide a more useful discussion of our results. Please refer to the pro forma disclosures throughout today's materials, including the reconciliations provided in Exhibit 99.1 to our Form 10-Q filed on November 3, 2016.

在今天的電話會議中，我們將提及我們在獲利資料中定義和調整的非GAAP指標。根據 Charter 的定義，這些非 GAAP 指標可能與其他公司使用的類似名稱的指標不具可比性。我們也會參考模擬結果。雖然時代華納有線電視和 Bright House 的交易於 2016 年 5 月 18 日完成，但這些模擬業績報告提供了有關合併運營的信息，就好像這些交易是在 2015 年 1 月 1 日完成的一樣，以便對我們的業績進行更有用的討論。請參閱今天所有資料中的模擬揭露，包括我們在 2016 年 11 月 3 日提交的 10-Q 表格附件 99.1 中提供的調節表。

Unless otherwise specified, customer and financial data that we may refer to on this call for periods prior to the third quarter of 2016 are pro forma for the transactions as if they had closed on January 1, 2015.

除非另有說明，否則我們在本次電話會議中可能提及的 2016 年第三季之前的客戶和財務數據均為模擬交易數據，如同這些交易已於 2015 年 1 月 1 日完成一樣。

Please also note that all growth rates noted on this call and in the presentation are calculated on a year-over-year basis, unless otherwise specified. Additionally, all customer and passings data that you see in today's materials continue to be based on legacy company definition.

另請注意，除非另有說明，本次電話會議和簡報中提及的所有成長率均按同比計算。此外，您在今天資料中看到的所有客戶和通行資料仍然基於公司過去的定義。

Joining me on today's call are Tom Rutledge, Chairman and CEO; and Chris Winfrey, our CFO. With that, I'll turn the call over to Tom.

今天和我一起參加電話會議的有董事長兼執行長湯姆·拉特利奇，以及財務長克里斯·溫弗瑞。這樣，我就把電話交給湯姆了。

Thanks, Stefan. As we near the first anniversary of the close of our transactions, we're successfully integrating Time Warner Cable and Bright House, and our operating and strategic plans are on track. By the end of the first quarter, we had launched our pricing and packaging everywhere but Hawaii, where we will also launch shortly. As a result, we finally turned the corner, and we're seeing higher year-over-year customer and PSU connect volumes, with nearly all of our video connects purchasing our expanded basic video product. And our minimum Internet speeds are either 60 or 100 megabits, depending on the market.

謝謝你，斯特凡。在我們即將迎來交易完成一週年之際，我們正在成功整合時代華納有線電視和 Bright House，我們的營運和策略計畫也正在按計畫進行。到第一季末，除了夏威夷以外，我們已經在所有地區推出了定價和包裝方案，我們很快也將在夏威夷推出。因此，我們終於扭轉了局面，客戶和 PSU 連接量逐年增長，幾乎所有視訊連接用戶都購買了我們擴展的基本視訊產品。我們的最低網速為 60 或 100 兆比特，取決於所在市場。

And although churn and downgrade activity from the Legacy TWC low-value product set remains elevated, we expected that to be the case, that the low-volume -- low-value product churn and downgrade activity will improve as more customers connect to our new pricing and packaging. As of the end of the first quarter, 17% of Time Warner Cable and Bright House customers were on our new pricing and packaging. And in areas where we had the Spectrum in place for at least 2 quarters, 32% of our residential customers have had the product -- the Spectrum product set. That result is slightly ahead of our expectation and where we were at Legacy Charter at this point in our plan.

儘管傳統TWC低價值產品系列的流失和降級活動仍然很高，但我們預計這種情況會發生，隨著更多客戶接受我們的新定價和包裝，低銷量-低價值產品的流失和降級活動將會改善。截至第一季末，時代華納有線電視和 Bright House 17% 的客戶採用了我們的新定價和套餐。在我們至少兩個季度都已部署 Spectrum 的地區，32% 的住宅客戶擁有該產品——Spectrum 產品套裝。這個結果略微超出了我們的預期，也超出了我們 Legacy Charter 目前計畫的進度。

Legacy Bright House is performing extremely well. Our Spectrum pricing and packaging, combined with a better starting point in terms of its service reputation, has allowed us to accelerate growth within that footprint more quickly. Legacy Charter also continues to perform. Customer relationships grew nearly 6% year-over-year, even though our focus was on integration. We remain very confident that there's a large and long-term customer and financial growth opportunity across all 3 legacy companies.

Legacy Bright House 的表現非常出色。我們的 Spectrum 定價和套餐，加上我們在服務聲譽方面更好的起點，使我們能夠在該區域內更快地加速成長。Legacy Charter 也繼續營運。儘管我們的重點是整合，但客戶關係比去年同期成長了近 6%。我們仍然非常有信心，這三家傳統公司都擁有巨大的、長期的客戶和財務成長機會。

This quarter, we will restart our all-digital project in the 40% of Time Warner Cable and 60% of Bright House that is not yet all-digital by putting 2-way interactive boxes on every outlet and freeing up capacity to increase data speeds. That project should last through early 2019.

本季度，我們將重啟時代華納有線電視公司 40% 和 Bright House 60% 尚未實現全數位化的地區的全數位化項目，方法是在每個插座上安裝雙向互動機上盒，並釋放容量以提高數據傳輸速度。該項目預計將持續到2019年初。

The integration of our field operations, customer operations and network operations is well underway and progressing as planned. We have been able to avoid customer disruption, and we're increasingly in-sourcing our field operations and call center employees in legacy Time Warner Cable and legacy Bright House markets in order to improve our craftsmanship, plant and service delivery. And we're already reducing reliance on third-party call centers and contractors.

我們的現場營運、客戶營運和網路營運的整合工作正在順利進行，並按計劃進行推進。我們一直致力於避免對客戶造成乾擾，我們正在逐步將原時代華納有線電視和原 Bright House 市場的現場營運和呼叫中心員工納入內部管理，以提高我們的工藝、設備和服務交付水平。我們已經在減少對第三方呼叫中心和承包商的依賴。

Our product development efforts also continue to move forward. We're working toward launching a wireless service in 2018 under our MVNO agreement with Verizon. We're also testing the capabilities of our network with 5G-like services in a number of Spectrum bands and in a number of locations. We intend to use these field trials to provide us with better insight into the capabilities of our wireline network when using high-frequency licensed and unlicensed spectrum and how our various wireless network building blocks can be used in conjunction with one another to offer services that will develop over time.

我們的產品研發工作也持續進行。我們正努力根據與 Verizon 的 MVNO 協議，在 2018 年推出無線服務。我們也在多個頻譜頻段和多個地點測試我們網路的 5G 類服務能力。我們打算利用這些現場試驗，以更好地了解我們的有線網路在使用高頻授權和非授權頻譜時的性能，以及如何將我們各種無線網路建構模組相互結合使用，以提供隨著時間推移而不斷發展的服務。

Now I'll turn the call over to Chris to provide more details on the quarter.

現在我將把電話交給克里斯，讓他提供本季的更多細節。

Thanks, Tom. During the first quarter, total customer relationships grew by 4.3% year-over-year on a pro forma basis, with 3.4% at TWC, 5.8% at Legacy Charter and 6.3% at Bright House.

謝謝你，湯姆。第一季度，以備考基準計算，客戶關係總數較去年同期成長 4.3%，其中 TWC 成長 3.4%，Legacy Charter 成長 5.8%，Bright House 成長 6.3%。

As Slide 6 shows, we grew residential PSUs by 365,000 versus 757,000 on a pro forma basis last year. The lower year-over-year PSU net adds was primarily driven by elevated customer and product churn from the legacy customer base at TWC.

如投影片 6 所示，我們住宅電源單位數量增加了 365,000 個，而去年按備考基準計算為 757,000 個。去年同期新增 PSU 淨額下降主要是由於 TWC 傳統客戶群的客戶和產品流失率上升所致。

As Tom mentioned, at the end of the first quarter, 17% of TWC and Bright House customers are now in Charter's pricing and packaging, which is available everywhere for residential customers, except Hawaii, which launches next month. Bright House markets were completed first back in November. And together with a better value and service proposition in the legacy base, you can see the positive effects of our new pricing and packaging already. In those TWC markets that had launched Spectrum as of December 31, relationship and video connects were up versus last year's quarter, with better-quality products and sales, as Tom mentioned.

正如湯姆所提到的，截至第一季末，TWC 和 Bright House 的 17% 的客戶現在都採用了 Charter 的定價和套餐，該套餐適用於除夏威夷以外的所有住宅客戶，夏威夷將於下個月推出。Bright House市場早在去年11月就已率先完工。結合現有客戶群中更高的價值和服務，您已經可以看到我們新的定價和包裝帶來的正面影響。正如湯姆所提到的那樣，在截至 12 月 31 日已推出 Spectrum 的 TWC 市場中，關係連接和視訊連接數量較去年同期有所增加，產品品質和銷售額也有所提高。

At the same time, Legacy TWC promotional offers in the past had been rolling to high rates on lower-value legacy products, which is why TWC billing and retention call rates have been 50% to 60% higher than Charter's. And as we've implemented consistent retention policies nationwide, we're managing through higher churn at TWC in the short term. As we migrate and replace the legacy base through a disciplined approach, Legacy TWC churn will improve.

同時，過去 TWC 的傳統促銷優惠一直以高價出售低價值的傳統產品，因此 TWC 的帳單和客戶挽留電話率比 Charter 高出 50% 到 60%。由於我們在全國範圍內實施了一致的客戶留存政策，因此在短期內，TWC 的客戶流失率會比較高。隨著我們透過有條不紊的方法遷移和替換舊系統，舊版TWC的客戶流失率將會降低。

Over the last year, TWC residential video customers declined by 3.2%. Pre-deal Charter grew its residential video customer base by 0.5%, and Bright House lost 1.1% of its residential video customers but continues to significantly improve its year-over-year video results. TWC's video net loss was 129,000, worse than last year, with over 90% of Legacy TWC's 108,000 net video losses driven by churn from lower-value limited basic packages. Legacy Charter lost 13,000 video customers versus a gain of 10,000 a year ago. Bright House added 21,000 video customers in the quarter versus a loss of 7,000 last year. In total, we lost 100,000 residential video customers in the quarter, primarily driven by the losses at TWC.

過去一年，TWC 住宅視訊用戶減少了 3.2%。在交易之前，Charter 的住宅視訊客戶群成長了 0.5%，而 Bright House 的住宅視訊客戶群減少了 1.1%，但其視訊業務的年同比業績仍在顯著改善。TWC 的視訊淨流失用戶數為 129,000 戶，比去年更糟，其中 Legacy TWC 108,000 戶視訊淨流失用戶數的 90% 以上是由於用戶從價值較低的有限基本套餐流失所致。Legacy Charter 流失了 13,000 名視訊用戶，而一年前該公司則增加了 10,000 名視訊用戶。Bright House 本季新增 21,000 名視訊用戶，去年同期則減少了 7,000 名。本季我們總共流失了 10 萬戶住宅影音用戶，主要原因是 TWC 的流失。

In residential Internet, we added a total of 428,000 customers during the quarter versus 520,000 last year. And over the last 12 months, our total residential Internet customer base grew by close to 1.4 million customers or close to 7%, with over 8% growth at pre-deal Charter and over 9% at Bright House.

本季度，我們在住宅網路領域新增了 42.8 萬名用戶，而去年同期為 52 萬名。在過去的 12 個月裡，我們的住宅網路用戶總數增加了近 140 萬用戶，增幅接近 7%，其中 Charter 的交易前用戶成長超過 8%，Bright House 的用戶成長超過 9%。

In voice, we grew customers by 37,000 in Q1 versus 213,000 last year, the lower growth largely driven by higher churn at TWC and part driven by a low-price promotional voice offering at TWC markets in prior year quarters. Over the last year, total pro forma residential customers grew by 951,000 or by 3.9%. Residential revenue per customer was virtually flat year-over-year, given much smaller price increases this year versus last and continued stand-alone Internet sell-in.

在語音業務方面，我們第一季的客戶數量增加了 37,000 人，而去年同期為 213,000 人。成長放緩主要是由於 TWC 的客戶流失率較高，部分原因是 TWC 在前幾季在市場上推出了低價促銷語音服務。過去一年，住宅用戶總數（以模擬計算）增加了 951,000 人，增幅為 3.9%。鑑於今年的價格漲幅遠小於去年，以及持續的獨立網路銷售，每位住宅客戶的收入與去年基本持平。

Legacy Charter's customer ARPU declined year-over-year, primarily driven by the continued strength of Internet single-play sell-in and the lack of meaningful rate increases year-over-year. As Slide 7 shows, our customer growth, combined with our ARPU growth, resulted in year-over-year pro forma residential revenue growth of 4.2%, with a different mix of rate and volume across the legacy entities.

由於網路單項服務銷售持續強勁，以及缺乏實質的價格上漲，傳統 Charter 的客戶 ARPU 年減。如投影片 7 所示，我們的客戶成長，加上 ARPU 的成長，使得住宅收入年增 4.2%，而各個傳統實體的費率和交易量組合有所不同。

Total commercial revenue, SMB and Enterprise combined, grew by 10.8%. SMB revenue grew by 11.3%, and Enterprise grew by 10.1%. Excluding cell backhaul and NaviSite, Enterprise grew by 15%. Enterprise launched a new national pricing structure at the end of last year designed to drive higher customer growth and will do the same with SMB at Legacy TWC and Bright House in the middle of the year.

中小企業和大型企業合計商業總收入成長了 10.8%。中小企業收入成長了 11.3%，企業收入成長了 10.1%。剔除蜂窩回傳和 NaviSite 業務後，企業業務成長了 15%。Enterprise 於去年底推出了新的全國性定價結構，旨在推動客戶成長，並將於今年年中在 Legacy TWC 和 Bright House 對中小企業採取同樣的措施。

First quarter advertising revenue declined by 7.7% year-over-year, driven by political advertising in the prior year. Excluding political and barter, advertising revenue was down about 2% year-over-year. In total, first quarter pro forma revenue for the company was up 4.3% year-over-year and up 4.8% when excluding advertising.

受上年度政治廣告收入下降的影響，第一季廣告收入較去年同期下降 7.7%。剔除政治廣告和以物易物廣告，廣告收入較去年同期下降約 2%。整體而言，該公司第一季備考收入年增 4.3%，若不計廣告收入，則較去年同期成長 4.8%。

Looking at total revenue growth at each of the legacy companies. TWC revenue grew by 4.1%, driven by a mix of customer and ARPU growth. Pre-deal Charter grew by 4.4%, driven exclusively by customer growth. And Bright House revenue grew by 5.4%, with improving unit growth and little reliance on rate.

考察各傳統公司的總收入成長。TWC 營收成長 4.1%，主要得益於客戶數量和 ARPU 的成長。交易前包機量成長了 4.4%，完全由客戶成長推動。Bright House 的營收成長了 5.4%，這得益於銷售成長的改善以及對價格的依賴程度較低。

Before moving on to expense, I wanted to note 2 items which impacted our revenue growth in the quarter. In March, we decided to provide bill credits to certain TWC residential customers. And in last year's first quarter, TWC and Bright House revenue benefited from a contractual settlement. Excluding the impact of those items, total revenue growth would have been 4.7% for consolidated Charter or 5.2% excluding advertising.

在討論費用之前，我想先指出兩項影響本季營收成長的因素。3月份，我們決定向部分TWC住宅用戶提供帳單抵扣。去年第一季度，TWC 和 Bright House 的收入受益於合約和解協議。如果排除這些項目的影響，Charter 合併後的總收入成長率將為 4.7%，如果排除廣告收入，則總收入成長率將為 5.2%。

Moving to operating expense. In the first quarter, total operating expenses grew by $201 million or 3.2% year-over-year, with transition expense accounting for $51 million of our total OpEx this quarter. Excluding programming and transition, operating costs were essentially flat given the realization of transaction synergies and continued operating efficiencies at Legacy Charter. Programming increased 8.2% year-over-year, driven by contractual rate increases and renewals and a higher expanded mix, partially offset by transaction synergies. Regulatory connectivity and produced content expense declined 1.5% year-over-year as we start combining the company's networks and contracts.

轉入營運費用。第一季度，總營運支出年增 2.01 億美元，增幅為 3.2%，其中過渡支出佔本季總營運支出的 5,100 萬美元。除節目製作和過渡費用外，由於實現了交易協同效應和 Legacy Charter 持續的營運效率，營運成本基本上持平。節目製作量年增 8.2%，主要受合約價格上漲和續約以及節目組合擴大的推動，但部分被交易協同效應所抵消。隨著我們開始整合公司的網路和合同，監管連接和製作內容支出較去年同期下降了 1.5%。

Cost to service customers was essentially flat year-over-year despite 4.3% total customer relationship growth, reflecting financial benefits from the combination of 3 companies and lower service transactions per customer and churn at Legacy Charter. Marketing expense declined by 1.5% year-over-year as we continue to drive synergies from our transactions. And other expenses were also down year-over-year, driven by elimination of duplicate cost.

儘管客戶關係總量增加了 4.3%，但客戶服務成本與去年基本持平，這反映了 3 家公司合併帶來的財務收益，以及 Legacy Charter 每位客戶的服務交易量和客戶流失率的降低。由於我們持續從交易中發揮協同效應，行銷費用較去年同期下降了 1.5%。由於消除了重複成本，其他費用也較去年同期下降。

Taking a step back on expense. The full elimination of duplicate cost will take another 2 years as we fully integrate the platforms of 3 companies and multiple billing, provisioning and network environments. And in areas of the business with labor and third-party costs tied to systems, we've actually been temporarily adding cost as we maintain legacy systems and processes and prepare for back-office integration. That's all according to plan. And so similar to subscriber revenue and cost to service trends, our expense development will not be linear. But our views on the long-term growth and profitability potential for Charter remain the same. In fact, our confidence has grown. The same applies to the transaction synergies I outlined on the last call.

減少開支。徹底消除重複成本還需要 2 年時間，因為我們需要將 3 家公司的平台以及多個計費、配置和網路環境完全整合起來。在一些涉及人工和第三方成本與系統相關的業務領域，由於我們需要維護舊系統和流程，並為後台整合做準備，實際上我們暫時增加了成本。一切都在計劃之中。因此，與訂閱收入和服務成本趨勢類似，我們的支出發展也不會呈現線性變化。但我們對Charter的長期成長和獲利潛力的看法依然不變。事實上，我們的信心增強了。這同樣適用於我在上次電話會議上概述的交易綜效。

Adjusted EBITDA grew by 6.4% in the first quarter. And excluding transition cost, adjusted EBITDA grew by 7.3%. If you further exclude the 2 items -- the 2 revenue items I mentioned both in 2016 and 2017, EBITDA would have grown by over 8%.

第一季調整後 EBITDA 成長 6.4%。不計過渡成本，調整後的 EBITDA 成長了 7.3%。如果進一步排除我在 2016 年和 2017 年提到的 2 個收入項目，EBITDA 將成長超過 8%。

Turning to net income on Slide 9. We generated $155 million of net income attributable to Charter shareholders in the first quarter versus net income of $179 million on a pro forma basis last year, with higher year-over-year adjusted EBITDA in the first quarter this year more than offset by higher depreciation and amortization, driven by purchase accounting and last year's CapEx and other below-the-line operating expenses, including transaction-related severance costs.

請參閱第 9 頁的淨收入。第一季歸屬於 Charter 股東的淨收入為 1.55 億美元，而去年同期以備考基準計算的淨收入為 1.79 億美元。今年第一季調整後 EBITDA 年成長，但被更高的折舊和攤銷所抵消，這主要是由於收購會計處理以及去年的資本支出和其他線下營運費用（包括與交易相關的遣散費）所致。

Turning to Slide 10. Capital expenditures totaled $1.56 billion in the first quarter, including $76 million of transition spend. First quarter capital intensity as a percentage of revenue of 15.3% should not be straight-lined as we had timing delays on some big network projects, facilities and truck spend as well as vendor delays and staging CPE. Excluding transition CapEx, first quarter CapEx declined by $302 million year-over-year or 17%, with lower spending on scalable infrastructure, CPE and support capital, mainly driven by timing.

翻到第10張投影片。第一季資本支出總額為 15.6 億美元，其中包括 7,600 萬美元的過渡支出。第一季資本密集度佔收入的 15.3% 不應直接計算，因為我們的一些大型網路項目、設施和卡車支出以及供應商的延誤和 CPE 的部署都出現了時間延誤。不計過渡期資本支出，第一季資本支出較去年同期下降 3.02 億美元，降幅達 17%，其中可擴展基礎設施、CPE 和支援資本方面的支出減少，主要受時間因素影響。

As Slide 11 shows, we generated $1.1 billion of free cash flow in the first quarter versus negative $61 million of actual not pro forma free cash flow in the first quarter last year. That growth was largely driven by cash flow from acquired systems. Working capital did not have a meaningful impact on our free cash flow this quarter, and there are often large quarterly swings. But for the full year 2017, I'd expect working capital to have a neutral to slightly impact -- slightly positive impact on our free cash flow.

如投影片 11 所示，我們第一季產生了 11 億美元的自由現金流，而去年第一季的實際自由現金流（非備考自由現金流）為負 6,100 萬美元。這一成長主要由收購系統帶來的現金流驅動。本季營運資本對我們的自由現金流沒有實質影響，而且季度波動通常很大。但就 2017 年全年而言，我預期營運資本對我們的自由現金流將產生中性至輕微的影響——略微正面的影響。

We finished the quarter with $61.3 billion in debt principal. Our run rate annualized cash interest expense is currently $3.4 billion, whereas our P&L interest expense in the quarter suggests a $2.9 billion annual run rate. That difference is due to purchase accounting. At the end of the first quarter, our net debt to last 12 months' pro forma adjusted EBITDA was 4.0x, and our long-term leverage remains at 4x to 4.5x.

本季末，我們的債務本金為613億美元。我們目前的年化現金利息支出為 34 億美元，而本季的損益表利息支出顯示，年化利息支出為 29 億美元。這種差異是由於採購會計處理造成的。第一季末，我們的淨負債與過去 12 個月的備考調整後 EBITDA 比率為 4.0 倍，長期槓桿率仍為 4 倍至 4.5 倍。

In February and March, we issued a total of $2 billion of 10-year 5 1/8% notes at CCOH, with the proceeds being used to call the $750 million of CCOH 6 5/8% notes and repay $2 billion of 5.85% TWC notes. On March 30, we concurrently offered and priced $1.25 billion of notes in the high-yield market and at the same time, $1.25 billion of notes in the investment-grade market for a total of $2.5 billion. The proceeds from those notes will be used for general corporate purposes, including potential buybacks.

今年二月和三月，我們在 CCOH 發行了總計 20 億美元的 10 年期 5 1/8% 票據，所得款項用於贖回 7.5 億美元的 CCOH 6 5/8% 票據，並償還 20 億美元的 TWC 5.85% 票據。3月30日，我們同時在高收益債券市場發行並定價了12.5億美元的債券，同時在投資等級債券市場發行並定價了12.5億美元的債券，總計25億美元。這些票據的收益將用於一般公司用途，包括潛在的股票回購。

Our weighted average cost of debt is now 5.4%, with a weighted average life of 11.6 years, with 90% of our debt repayable after 2019. And our hybrid debt structure gives us access to the bank, investment-grade and high-yield markets, providing us significant operating, financing and strategic flexibility.

我們目前的加權平均債務成本為 5.4%，加權平均期限為 11.6 年，其中 90% 的債務將在 2019 年後償還。我們的混合債務結構使我們能夠進入銀行、投資等級和高收益市場，從而為我們提供重要的營運、融資和策略靈活性。

During the first quarter, we repurchased 2.5 million shares in Charter holding common units totaling approximately $826 million at an average price of about $324 per share. I mentioned on our last call that from late in the fourth quarter through Q4 earnings in February, we were not buying shares due to parameters set in an earlier 10b5-1 program. The share repurchase activity will continue to depend on other potential uses of capital and market conditions.

第一季度，我們以每股約 324 美元的平均價格回購了 250 萬股 Charter 持有的普通股，總計約 8.26 億美元。我在上次電話會議上提到，從第四季末到 2 月公佈第四季收益期間，由於先前 10b5-1 計畫中設定的參數，我們沒有購買股票。股票回購活動將繼續取決於其他潛在的資金用途和市場狀況。

Turning to our tax assets on Slide 13. We estimate the total value of those assets is approximately $6 billion, and we don't expect -- we don't currently expect to be a material cash income taxpayer until 2019 at the earliest.

接下來請看第 13 頁投影片，了解我們的稅務資產。我們估計這些資產的總價值約為 60 億美元，而且我們預計——我們目前預計最早也要到 2019 年才會成為重要的現金收入納稅人。

So getting ahead next quarter's reporting, I wanted to note that we have now aligned Bright House's seasonal customer program with that of Legacy Charter and Time Warner Cable, which provides a reduced monthly charge instead of onetime suspend and restart fees historically at Bright House. As a result, seasonal customers at Bright House will now remain as reported customers throughout the year, which will reduce both the negative net adds impacting Q2 and the positive net adds impacting Q4 when comparing to historicals. In the second quarter of 2016, there were approximately 60,000 seasonal customer disconnects, with most of the seasonal reconnected volume occurring in Q4. We'll do our best to quantify the year-over-year onetime reporting effect at Bright House when we report Q2 and Q4.

為了提前準備下一季的報告，我想指出，我們現在已經將 Bright House 的季節性客戶計劃與 Legacy Charter 和 Time Warner Cable 的計劃保持一致，該計劃提供較低的月費，而不是像 Bright House 過去那樣收取一次性暫停和重啟費用。因此，Bright House 的季節性客戶將全年作為報告客戶保留，這將減少與歷史數據相比對第二季度造成負面影響的淨新增客戶數量，並減少對第四季度造成負面影響的淨新增客戶數量。2016 年第二季度，約有 6 萬起季節性客戶斷網事件，其中大部分季節性重新連線發生在第四季。我們將在發布第二季和第四季財報時，盡力化 Bright House 的同比一次性報告效應。

With that, operator, we're now ready for Q&A.

好了，操作員，我們現在可以進入問答環節了。

(Operator Instructions) And your first question comes from the line of John Hodulik with UBS.

（操作員說明）您的第一個問題來自瑞銀集團的約翰‧霍杜利克。

Maybe if we could just talk about the Legacy Charter markets. You guys saw a 13,000 sub decline in the quarter, and I guess it's driving the ARPU's sort of accelerating decline. Any color on sort of what's going on in that market? Is it cord cutting? Are you seeing some sort of economic weakness? Or -- it doesn't seem like it's competitive issues, but maybe how you expect that -- those sub trends to develop over the course of the year? And have we seen the worst in terms of the ARPU declines?

或許我們可以只談談傳統包機市場。你們本季用戶數量減少了 13,000 人，我想這導致了 ARPU 的加速下降。有沒有人了解一下那個市場目前的狀況？這是剪線嗎？您是否觀察到某種經濟疲軟的跡象？或者——這似乎不是競爭問題，但也許你期望的是——這些次要趨勢會在一年中發展嗎？ARPU（每位用戶平均收入）下降幅度最大的時期已經過去了嗎？

John, it's Tom. Look, I think, given all the integration activity that the year-over-year Charter legacy would have been positive if we weren't doing all this activity. We moved a lot of assets around in the different management structures during the period. And it's a slight change in the direction of the video customer growth. The subscriber growth, in general, is still performing well in the marketplace, as we expected, and I think you'll see that accelerate in the future. So I think the -- I don't think it's a significant issue, but I also think it is an effect of our integration process more than anything else or any specific change in the market. Our opportunity with regard to video, I think, is a market share shift from satellite to us. I do think there is a general decline in the MVPD marketplace that is mostly price driven. And I think that those trends are unlikely to change in the near term, but not to particularly accelerate. And so I think that the Charter opportunity in video and subscriber growth in general in legacy and in new footprint continues to improve.

約翰，我是湯姆。我認為，考慮到所有的整合活動，如果我們不做所有這些活動，Charter 的年度表現本來應該是正面的。在此期間，我們在不同的管理架構之間調配了大量資產。這是視訊使用者成長方向的一個輕微變化。正如我們預期的那樣，用戶成長總體上在市場上仍然表現良好，我認為未來這一成長速度將會加快。所以我覺得——我不認為這是一個重大問題，但我也認為這更多的是我們整合過程的影響，而不是其他任何因素或市場具體變化的影響。我認為，我們在視訊領域的機會在於將市場份額從衛星轉移到我們這裡。我認為MVPD市場整體呈下滑趨勢，這主要是價格因素造成的。我認為這些趨勢在短期內不太可能改變，但也不會特別加速。因此，我認為 Charter 在視訊和用戶成長方面的機會，無論是在傳統領域還是在新領域，都在持續改善。

From an ARPU perspective, the big driver there really isn't anything that's happening systemically in the market. It's really just about the amount of single-play Internet sell-in. So if you take a look at the percentage of the nonvideo customer relationship base and the percentage growth in the mix and then you compare that to total customer relationship growth, there are ways that you can mathematically get to figure out what the pool effect of that mix shift is. And that's really what that's -- what the big driver there is on ARPU.

從 ARPU 的角度來看，真正驅動其成長的主要因素並不是市場中發生的系統性變化。其實關鍵在於單次網路銷售的數量。因此，如果您查看非視訊客戶關係基礎的百分比和組合中的成長百分比，然後將其與客戶關係總量的成長進行比較，您就可以透過數學方法計算出這種組合變化的整體影響。這就是影響 ARPU 的主要因素。

I think the other thing about ARPU that's significant in the way our numbers work is that there is virtually no rate in these ARPU numbers, so it's all driven by subscriber growth. And we want it that way. And we think in this environment of integrating 3 companies and introducing ourselves to lots of new customers and customer relationships, that that's the appropriate approach.

我認為 ARPU 的另一個重要之處在於，當我們計算 ARPU 數據時，幾乎沒有任何費率因素，因此它完全是由用戶成長驅動的。我們也希望如此。我們認為，在整合 3 家公司並向眾多新客戶和客戶關係介紹自己的這種環境下，這是合適的做法。

Your next question comes from Mike McCormack with Jefferies.

下一個問題來自傑富瑞集團的麥克‧麥考馬克。

Tom, maybe just a comment. We've seen a lot of over-the-top launches. We saw this report yesterday, and, obviously, and we don't know what the mix is. But just thinking about the threat of that and how much of an impact you're seeing from that. And then maybe secondly, your thoughts on the Charter plans? There's been a lot of discussion around 5G deployments. How do you guys sort of see yourselves playing that out over time?

湯姆，或許你只是想說句話。我們已經看過很多鋪張浪費的發表會。我們昨天看到了這份報告，很顯然，我們不知道其中的成分是什麼。但想想這種威脅以及它造成的影響有多大。其次，您對憲章計畫有何看法？關於 5G 部署的討論很多。你們覺得隨著時間的推移，你們會如何發展這段關係？

Right. Well, as I said, I think we -- obviously, we sell more than video, and we're creating lots of customer relationships, and we expect to continue to do that. We expect to be able to continue to create video customer relationships, too, because we think that our 2-way interactive footprint and our capability of providing SVOD in an appropriate user interface along with the kind of linear channels we've historically provided and other on-demand services makes us a more compelling product than our competitors. And so we expect to grow video. The -- what the overall share of over-the-top providers will be over the next 5 years? I don't really know. But none of them have a product that is better than ours that we can see in the marketplace. So we expect to succeed in the marketplace going forward. With regard to 5G, we -- we've been experimenting with frequencies. But basically, our view of it is that small-cell connectivity to our high-capacity network is our future and our current state of wireless. We have WiFi devices in almost every home. The speeds that you can get out of our current WiFi routers incrementally is in the range of 1 gigabit, and we expect that to accelerate with the addition of additional frequencies and the millimeter-wave-type Spectrum that 5G has proposed in and other Spectrum that will become available in the future. So we think that speeds will continue to increase and -- in the home and in the workplace. And if we need to put that into a mobile environment, that our plant lends itself to that as well in the long run. So at this point, those kinds of 5G opportunities are still a number of years away. And they're certainly even farther away from a market-wide deployment perspective, but we're using experimental licenses to test our capabilities across the spectrum.

正確的。正如我所說，我認為我們——顯然，我們銷售的不僅僅是視頻，而且我們正在建立很多客戶關係，我們希望繼續這樣做。我們希望能夠繼續建立視訊客戶關係，因為我們認為，我們雙向互動的平台，以及我們以合適的使用者介面提供 SVOD 服務的能力，再加上我們歷來提供的線性頻道和其他點播服務，使我們的產品比競爭對手更具吸引力。因此，我們預計視訊業務將會成長。未來 5 年內，OTT 服務供應商的整體市佔率將會是多少？我真的不知道。但我們目前在市場上還沒有看到任何一家公司的產品比我們的更好。因此，我們預期未來能在市場上取得成功。關於 5G，我們一直在進行頻率試驗。但從根本上說，我們認為小型基地台連接到我們的高容量網路是我們未來的發展方向，也是我們目前的無線發展狀態。幾乎每家每戶都有WiFi設備。我們目前的 WiFi 路由器可以逐步達到 1 Gbps 的速度，我們預計隨著 5G 提出的毫米波頻譜以及未來將出現的其他頻譜的加入，速度將會加快。所以我們認為速度將會繼續提高——無論是在家庭還是在工作場所。如果我們需要將它應用到行動環境中，從長遠來看，我們的工廠也能夠勝任這項工作。所以目前來看，5G帶來的那些機會還需要數年時間才能實現。從市場整體部署的角度來看，它們當然還有很長的路要走，但我們正在使用實驗性授權來測試我們在整個領域的各項能力。

Your next question comes from Jonathan Chaplin with New Street Research.

下一個問題來自新街研究公司的喬納森·查普林。

Because I'm wondering if you could just expand on your ARPU comment from a minute ago. I'm wondering specifically what the growth in broadband ARPU is in the Legacy Charter footprint. And the -- I understand not wanting to take rates while you're going through the integration and seeding a new base with new packages and pricing. When do you think you'll be in a position to start pushing up rate again and accelerating ARPU growth? And then my last question would be, now that we're sort of 1 year -- we've sort of lapped the 1-year mark on the integration, are we at the sort of the most difficult part at this point in shifting subscribers over to the new pricing and packaging such that we should start to see an improvement in the back half of the year? Or is that still a quarter or 2 away?

因為我想問您能否就剛才關於 ARPU 的評論做進一步說明。我特別想知道傳統Charter網路覆蓋範圍內寬頻ARPU的成長情況。而且—我理解在進行整合、以新套餐和定價建立新客戶群的過程中，您不想接受報價。您認為何時才能再次提高利率並加速ARPU成長？最後一個問題是，現在我們已經完成了整合工作一年了，我們是否正處於將用戶轉移到新的定價和套餐方案的最困難階段，以便我們能在今年下半年看到一些改善？或者說，還需要一、兩個季度的時間？

That was a mouthful. Let me start to answer the broadband ARPU question. My comment earlier was more about total customer relationship ARPU and the impacts that multiple PSUs per relationship have on that. And so to the extent that you have a higher mix of Internet stand-alone or non-video bundles, then it has the impact of artificially pulling down your customer relationship ARPU. It wasn't so much about ARPU per PSU. We actually don't manage the business that way. Our goal is to get as much ARPU per household by providing high-value products as possible. And so we haven't done anything to materially impact, at Legacy Charter, the broadband ARPU, other than having a slightly higher amount of single-play, which if you were to look at -- stand-alone PSU ARPU would suggest that the broadband ARPU is increasing slightly. The fallacy of that is that we sell, for the most part, broadband inside of a bundle. And at that point, it's just now occasional revenue across the different product sets on the bill. And it's really, from our perspective, more about pricing all the services in the household and putting as many of those services in as we can. Pricing, I think, is -- if you can take a look back to what Charter's historically been able to do is, with very minimal price increases, be able to grow total customer relationships by 6% and residential customer relationships by 5%. If you see the opportunity to go get that type of growth and to have that type of market share shift, introducing pricing can stunt that growth. And it doesn't mean that you've lost pricing power or rate power over time. In fact, one might argue that it's actually increased because of the larger base. And if you have the opportunity to grow, we think it's much better to grow. And if you stop growing and you need to get revenue growth, you always have the ability to take rate, but that's not really Charter's strategy. And we see the opportunity to grow and think that's the better path. Tom, the third? I don't know if you want to add anything to that, but...

真是一口氣說完。讓我先來回答寬頻ARPU（每位用戶平均收入）的問題。我之前的評論更多的是關於客戶關係總平均每用戶收入 (ARPU) 以及每個關係中多個 PSU 對此產生的影響。因此，如果你的網路獨立套餐或非視訊套餐的比例較高，那麼就會人為地拉低你的客戶關係平均每用戶收入 (ARPU)。關鍵不在於每個電源的平均每用戶收入（ARPU）。我們其實並不是那樣管理業務的。我們的目標是透過提供盡可能高價值的產品，提高每戶平均收入（ARPU）。因此，除了單次播放量略有增加之外，我們在 Legacy Charter 並沒有採取任何實質措施來影響寬頻 ARPU。如果您查看獨立的 PSU ARPU，您會發現寬頻 ARPU 略有增加。這種說法的謬誤在於，我們銷售的大部分寬頻服務都是捆綁銷售的。到那時，帳單上不同產品組合的收入就只是零星的了。從我們的角度來看，這實際上更多的是關於給家庭中的所有服務定價，並盡可能提供這些服務。我認為，定價的關鍵在於——如果你回顧一下 Charter 的歷史，你會發現，在價格漲幅非常小的情況下，Charter 能夠將客戶總數提高 6%，將住宅客戶總數提高 5%。如果你看到了獲得那種成長和市場佔有率轉移的機會，引入價格因素可能會阻礙這種成長。但這並不意味著隨著時間的推移，你失去了定價權或費率權。事實上，有人可能會認為，由於基數更大，實際增幅反而更大了。如果你有機會成長，我們認為成長會好得多。如果成長停滯，需要實現收入成長，你當然可以提高費率，但這並不是 Charter 的真正策略。我們看到了發展的機會，並認為這是更好的道路。湯姆，第三個？我不知道你是否想補充什麼，但…

No, I think that it's been our strategy to create high-value, high-quality products that improve the life of the customer. And that results in not necessarily ARPU growth that comes from rate, but ARPU growth that comes from the creation of customers. It also reduces costs and so increases EBITDA relative to ARPU at a better rate if your customer service experience adds to average customer lifetime length. What that does is reduces transaction volume, which means that for the same amount of revenue, you have a higher EBITDA because your costs connects -- or servicing the customer go down. So our view of the model is that it's much more virtuous to have high-quality, high-value products that last in the marketplace, meaning customers like the products, think they're fairly priced and continue to subscribe to you without looking around and trying other competitors and increasing your cost of operation. So while we expect to grow our ARPU and we expect to grow our customer base, we expect most of that to occur because the quality of our products stand in the marketplace and people want to subscribe to us as opposed to trying to use temporary friction in the marketplace to get a rate.

不，我認為我們的策略一直是創造高價值、高品質的產品，從而改善客戶的生活。因此，這不一定會帶來透過提高費率實現的 ARPU 成長，而是帶來透過創造新客戶實現的 ARPU 成長。此外，如果客戶服務體驗能夠延長客戶平均生命週期，那麼它還可以降低成本，從而以更好的速度提高 EBITDA（相對於 ARPU 而言）。這樣做會降低交易量，這意味著在收入相同的情況下，由於成本降低（或客戶服務成本下降），你的 EBITDA 會更高。因此，我們認為，擁有高品質、高價值且能在市場上經久不衰的產品才是更明智的選擇，這意味著顧客喜歡這些產品，認為它們的價格合理，並且會繼續訂閱你的服務，而不會四處尋找並嘗試其他競爭對手，從而增加你的營運成本。因此，雖然我們預期 ARPU 會成長，客戶群也會成長，但我們預期大部分成長將是由於我們產品的品質在市場上具有競爭力，人們想要訂閱我們，而不是試圖利用市場上的暫時摩擦來獲得價格。

And at the 1-year mark, I don't know if you...

一年過去了，我不知道你是否…

Where are we at 1 year? We have a multiyear strategy. And as I said in our -- in my remarks, we have turned the corner in terms of year-over-year growth in connects. And that's a good sign, and it's the first sign that you expect after you change every price and package and process involved in the selling of a business with 26 million customers and growing at, now, 4%.

一年後我們進展如何？我們制定了一項多年戰略。正如我在演講中所說，我們在連結數同比增長方面已經扭轉了局面。這是一個好兆頭，也是在你改變了與銷售一家擁有 2600 萬客戶且目前以 4% 的速度增長的企業相關的每一個價格、套餐和流程之後，你所期望的第一個跡象。

The more customer relationships that we have in Spectrum pricing and packaging, the more protected we are for all the reasons that Tom mentioned, and that's why we read out that statistic. And it's in line with what we had at Legacy Charter at this stage. In fact, it's actually slightly above, so we're pleased. But until you either migrate or churn the legacy base that had low-value, high-priced products, you're going to have a little bit of volatility from one quarter to the next. But that number is increasing. It's growing well. And I agree with Tom.

我們在 Spectrum 定價和套餐方面擁有的客戶關係越多，我們就越能得到保護，原因正如 Tom 所提到的，這就是我們宣讀該統計數據的原因。這與我們 Legacy Charter 現階段的情況一致。事實上，它略高於預期，所以我們很滿意。但是，除非你遷移或徹底改革那些低價值、高價產品的舊有產品線，否則每季都會出現一些波動。但這個數字正在增加。它長得很好。我同意湯姆的觀點。

Yes. I mean, you're really looking at what is the EBITDA per customer you're gaining on the increments and are you piling those up one after another in an appropriate way so that your long-term outcome is good. And we believe that we're doing that, and we've turned the corner on that, which was what our plan was.

是的。我的意思是，你真正關注的是，你從每個新增客戶中獲得的 EBITDA 是多少，以及你是否以適當的方式將這些增量逐一累積起來，從而獲得良好的長期收益。我們相信我們正在做到這一點，而且我們已經扭轉了局面，這正是我們計劃的內容。

Your next question comes from Craig Moffett with MoffettNathanson.

你的下一個問題來自 MoffettNathanson 公司的 Craig Moffett。

Tom, now that the incentive option is over and Comcast bought Spectrum and its footprint not nationally, that leaves you without a sort of coverage layer of low frequency. Can you talk about that at all? Is that -- was that part of your plans? Or is it still -- or is it part of your plans to think about a coverage layer to augment the MVNO? Or is the MVNO a satisfactory full solution to wireless beyond your WiFi network?

湯姆，既然激勵措施已經結束，而且康卡斯特收購了Spectrum及其在全國範圍內的業務，那麼你就失去了低頻覆蓋層。你能談談這件事嗎？那是——那是你計劃的一部分嗎？或者，你們是否仍計劃考慮增加覆蓋層來增強 MVNO 的服務？或者，MVNO 是否能提供超出 WiFi 網路範圍的令人滿意的無線網路完整解決方案？

As you know, that low-frequency opportunity is still, from a practical point of view, a number of years away. So it has no impact on sort of the short-, midterm opportunity in the marketplace. We think that the MVNO does have that potential, and so we're happy with our MVNO. We're happy with going forward with it and don't feel today that we have any need for that kind of spectrum. And we think that if we ever do have such a need that opportunities will be available to get it.

如您所知，從實際角度來看，低頻機會仍需數年才能實現。因此，它對市場上的短期、中期機會沒有影響。我們認為 MVNO 確實有這種潛力，所以我們對我們的 MVNO 很滿意。我們很樂意繼續推進這項工作，目前我們並不覺得需要那種光譜。我們認為，如果將來真的有這樣的需求，將有機會獲得它。

And your next question comes from Amy Yong with Macquarie.

下一個問題來自麥考瑞大學的艾米·楊。

So 2 questions. First, on the video product. Tom, you talked about how video trend should accelerate. Can you talk about some of the initiatives that you're working on, perhaps the programming, exclusive agreements with AMC, maybe Netflix or YouTube into the box, just some of the things that you're working on in the pipeline that we should be thinking about? My second question is on cost. Can you just give us an update, Chris, on kind of the synergies and where we are on that $1 billion mark?

所以有兩個問題。首先，我們來看看影片產品。湯姆，你之前談到過視訊發展趨勢應該會加速。您能否談談您正在進行的一些項目，例如節目製作、與 AMC 的獨家協議、或許與 Netflix 或 YouTube 的合作等等，這些都是您正在籌備的、值得我們關注的項目？我的第二個問題是關於成本的。克里斯，你能為我們介紹一下綜效方面的情況，以及我們距離10億美元的目標還有多遠嗎？

So, Amy, in terms of things we're doing with the product and AMC, the AMC opportunity is an experiment to see if we can create some high-value product for our customers for a period of time. And we think it's an interesting opportunity to put original programming to our customers and still allow the marketplace realities in terms of the cost of amortizing programming to work over a bigger marketplace over time. And so we're interested in finding ways to improve our video product, and we have lots of thoughts about those. AMC is one step in that direction. Netflix is being integrated into our user interface, and we plan to launch it. We've had similar discussions with YouTube. Our view is that the user interface that we're deploying across our footprint will allow a seamless integration of content. Fundamentally, we expect customers to subscribe to services like Netflix, Hulu and other over-the-top products in combination with our MVPD products and maybe over-the-top products that we also provide. And we think having a common user interface that allows that to work on all the devices in the house makes a lot of sense. Our fundamental obligation to our customer is to make that customer's life easy in terms of using video. And so when we look at our whole relationship to content and the customer, we come out toward the customer side of the equation, meaning, while we'd love to create new content, we'd even more love to have happy subscribers who have access to all the content they can get. And that's what our user interface is designed to do.

所以，艾米，就我們正在進行的產品和AMC專案而言，AMC專案是一個實驗，看看我們能否在一段時間內為客戶創造一些高價值的產品。我們認為這是一個有趣的契機，既能為我們的客戶提供原創節目，又能讓節目攤銷成本的市場現實在更大的市場中隨著時間的推移而發揮作用。因此，我們有興趣尋找改進視訊產品的方法，並且我們有很多關於這方面的想法。AMC是朝著這個方向邁出的一步。Netflix 正在整合到我們的使用者介面中，我們計劃盡快推出。我們也曾與 YouTube 進行過類似的討論。我們認為，我們正在部署的使用者介面將實現內容的無縫整合。從根本上講，我們希望客戶訂閱 Netflix、Hulu 等 OTT 產品以及我們的 MVPD 產品，或許還會訂閱我們提供的其他 OTT 產品。我們認為，擁有一個通用的使用者介面，使其能夠在家中的所有設備上運行，是非常有意義的。我們對客戶的基本義務是讓客戶在使用影片方面感到輕鬆便捷。因此，當我們審視我們與內容和客戶之間的整體關係時，我們最終會傾向於等式的客戶方，這意味著，雖然我們很樂意創作新內容，但我們更希望擁有快樂的訂閱者，讓他們能夠訪問他們所能獲得的所有內容。而這正是我們使用者介面設計的目的。

And on synergies, on the last call, I mentioned, after the first year, we expect it to be over $700 million and that after a 3-year period, we expect it to be over $1 billion. That 3-year period is really what I was highlighting about the time it takes to combine network provisioning, billing activities, which takes time. So that's the driver for that. We're not going to report quarter by quarter how much is in the number, because, frankly, once we got to January 1, it became a little more challenging for 2 reasons: One is that in order to hit those synergies, a lot of times, it requires operating investment to combine platform, systems, people. And then secondly, the programming side, you have to take an estimate of what you think your renewals -- your contractual rate increases of your renewals would've been without the deal. So it becomes a little bit more art than science, and so we wanted to get away from that and provide our best view at that time. But there's nothing that's impacted our optimism as it relates to the transaction synergies. As I mentioned, programming was one of the harder ones. And since I know that will be your next question, I'll try to hit that one head on, which is we don't comment on the details of programming agreements, but we are generating the synergies we expected. Sometimes that can be obscured by escalators in existing agreements and renewals. But those renewals, they generally include better starting points, better CAGRs or growth rates. They have longer terms when we want them, and we're getting better rights than we believe Charter, TWC or Bright House would have received previously. And you're going to see it from one quarter to the next accounting for the economics of these deals, including what some -- one party may see as past or future. It can be complicated. And at times, payment streams can get lumpy along the way. But we're focused on the overall economics over a longer term, and we are getting the strategic and financial benefits of the transactions as we laid out.

關於協同效應，我在上次電話會議上提到，第一年後，我們預計協同效應將超過 7 億美元，三年後，我們預計協同效應將超過 10 億美元。我真正想強調的是，這三年時間足以將網路配置和計費活動結合起來，而這本身就需要時間。這就是背後的驅動因素。我們不會按季度報告具體數字是多少，因為坦白說，到了 1 月 1 日，情況變得更加複雜，原因有二：一是要實現這些協同效應，很多時候需要營運投資來整合平台、系統和人員。其次，在節目製作方面，你必須估算一下，如果沒有這項協議，你的續約合約價格會上漲多少。所以它更像是一門藝術而不是科學，因此我們想要擺脫這種狀態，並在當時提供我們最好的觀點。但沒有任何因素影響我們對交易綜效的樂觀態度。正如我之前提到的，程式設計是比較難的科目之一。我知道你接下來肯定會問這個問題，所以我就直接回答吧，那就是我們不評論程式設計協議的細節，但我們正在產生我們預期的協同效應。有時，現有協議和續約條款中的自動升級機制會掩蓋這一點。但這些續約通常都包括更好的起點、更好的複合年增長率或成長率。他們可以滿足我們更長的合約期限需求，而且我們獲得的權益比我們認為Charter、TWC或Bright House以前所能獲得的還要好。你會從一個季度到下一個季度看到這種情況，因為要考慮這些交易的經濟因素，包括某些一方可能認為是過去或未來的因素。這可能很複雜。有時，支付流程可能會出現波動。但我們著眼於更長遠的整體經濟效益，正如我們所計劃的那樣，我們正在獲得這些交易帶來的策略和財務利益。

Your next question comes from Ben Swinburne with Morgan Stanley.

下一個問題來自摩根士丹利的本·斯溫伯恩。

As you guys think about the rest of this year, I think you mentioned that connect volumes are up year-on-year, where you've rolled Spectrum pricing and packaging, which is almost done. So with that, are you able to look at the churn -- or sort of the pool of Time Warner Cable legacy customers that you would argue are on sort of the wrong package or low-value services? And how much -- how big that pool is? And how long it will take to sort of churn them out or get them into the right place? Because if the connects are growing and that churn issue is sort of finite in length, then it would help us to think about when we might see PSU adds start to improve on a year-over-year basis. I don't know if you're willing to talk to some of those puts and takes, but I would be interested in any comment. And just I wanted to ask Chris if the expectation that CapEx is up year-on-year pro forma is still the right one. I know you mentioned before not to run rate Q1, but just wanted to throw that out, too.

當你們在考慮今年剩下的時間時，我想你們提到過連接量同比增長，你們已經推出了 Spectrum 定價和套餐，這項工作也即將完成。那麼，您能否分析一下用戶流失情況——或者說，您認為時代華納有線電視的老用戶群體中，哪些人選擇了錯誤的套餐或低價值的服務？那個游泳池有多大？需要多長時間才能把它們生產出來或送到合適的地方？因為如果連線數在成長，而用戶流失問題在某種程度上是有限的，那麼這將有助於我們思考何時才能看到 PSU 新增用戶數開始逐年改善。我不知道你是否願意討論這些買賣交易，但我對任何評論都感興趣。我只是想問克里斯，按往年預估，資本支出逐年增長的預期是否仍然正確。我知道你之前說過不要在第一季就開跑，但我還是想再提。

Yes. Well, look, the same issue that we faced with Legacy Charter beginning late 2012. Right now, the end of Q1, 17% of TWC and Bright House was in Spectrum pricing and packaging, which means we're in a much better position for that 17%. Flip side is we've got 83% of the base that continues to be in legacy pricing and packaging offers, and that has elevated churn and it's going to as long as that number remains high. But it'll decrease -- the amount of customers in Spectrum pricing and packaging with a better churn profile will increase. The real question is when you get a tipping point, it's already starting to get better from here on out. And so I think it'll -- right now, it looks like it was followed by a similar path as to what we saw Legacy Charter in terms of subscriber development. Second question was? Ben, what was your second question? I think we lost Ben. Did you make a note of it, Stefan?

是的。你看，這和我們從 2012 年底開始遇到的 Legacy Charter 的問題是一樣的。目前，第一季末，TWC 和 Bright House 的 17% 業務都集中在 Spectrum 的定價和套餐上，這意味著我們在這方面處於更有利的地位，能拿下這 17% 的份額。另一方面，我們仍有 83% 的客戶群繼續沿用傳統的定價和套餐方案，這導致了客戶流失率上升，只要這個數字保持高位，這種情況就會持續下去。但這種情況會減少——Spectrum 定價和套餐中流失率較低的客戶數量將會增加。真正的問題是，當出現轉捩點時，情況就會開始好轉。所以我認為——就目前來看，它在用戶發展方面似乎走上了與 Legacy Charter 類似的道路。第二個問題是？本，你的第二個問題是什麼？我覺得我們失去了本。斯特凡，你記下來了嗎？

Yes.

是的。

Oh, CapEx.

哦，資本支出。

Yes, year-over-year -- did we go up year-over-year?

是的，與年比來看──我們比去年同期上升了嗎？

So much passion on the first topic. Everything I said about CapEx last quarter still remains the case. And we're a little bit behind in terms of where we'd like to be on the spending on CapEx just because of timing-related issues. In a weird sense, it's going to be tough to hit the plan that we have for CapEx this year, but our intent is still to be able to be in a position to spend more than we did last year. I don't think, from a capital intensity, it'll be that different from where it was last year just because of revenue growth. But nothing has changed. And since we want to spend the capital so we can grow faster quicker, our goal is to spend as much as we can this year.

大家對第一個話題都充滿熱情。我上季對資本支出所說的一切仍然有效。由於時間安排方面的問題，我們在資本支出方面比預期目標略有落後。從某種意義上說，今年要實現我們所製定的資本支出計畫將會很困難，但我們的目標仍然是能夠比去年支出更多。我認為，從資本密集度來看，僅僅因為收入成長，今年的情況不會與去年有太大不同。但一切都沒有改變。由於我們希望利用資金實現更快的成長，因此我們的目標是今年盡可能投入資金。

But just to -- on the CapEx issue, just to give the speech again. The longer the customer life and the less activity ultimately related to servicing a base of more high-quality customers with high-quality products is if you have a high-quality service organization, you ultimately end up spending less capital as well, as well as less operating costs, and your capital intensity comes down. It comes down due to operational efficiency, but it also comes down due to our ability to go all-digital and once that project is completed, to have lower capital intensity and less activity that is also capitalizable associated with churn activity.

但是，關於資本支出問題，我只想再一次發表一下演講。客戶生命週期越長，與服務更多高品質客戶群相關的活動就越少（如果你擁有高品質的服務組織），最終你花費的資本和營運成本就越少，資本密集度也會降低。這主要歸因於營運效率的提高，但也歸因於我們全面數位轉型的能力，一旦該專案完成，資本密集度就會降低，與客戶流失相關的可資本化活動也會減少。

Your next question comes from Marci Ryvicker with Wells Fargo.

下一個問題來自富國銀行的 Marci Ryvicker。

I have a quick one and then a not-so-quick one. On the quick side, can you quantify just the TWC credits? We're trying to isolate the revenue and ARPU impact. And also talk about if these will continue. And then the second question is, with customers migrating to the single-play offering, do you notice behavior differing among the Charter, Time Warner Cable and Bright House markets? We've been asked if maybe the streaming bundles are taking advantage of the disruption in TWC markets.

我先做一個簡短的，然後再做一個稍微複雜一點的。簡單來說，你能能量化一下TWC積分嗎？我們正在努力找出對收入和每位用戶平均收入的影響。也要討論這些措施是否會持續下去。第二個問題是，隨著客戶轉向單一服務產品，您是否注意到 Charter、時代華納有線電視和 Bright House 市場的行為有所不同？有人問我們，串流媒體套餐是否可能利用了TWC市場的混亂。

The amount of the credits, we didn't provide it in the Q, so I don't want to provide preferential disclosure here. So -- but I think if you take the comments we had about the amount of revenue growth absent those 2 items, the 2 items being the credits in 2017 and the onetime contractual settlement in 2016, you can solve for the combination of the 2. You also have -- if you want to go back and take a look, I'm pretty sure that TWC would have disclosed the amount of the contractual settlement with a programmer that resulted in higher revenue in Q1 2016. So I'm laying you out a very convoluted map to get there. Wish you luck. But the 2 items combined is what drove that differential revenue growth that I highlighted in the prepared remarks. I didn't follow the second question, which was more about customer analysis market by market.

我們沒有在季度報告中提供信貸金額，所以我不想在這裡進行優先揭露。所以——但我認為，如果你考慮我們之前關於剔除這兩個因素（即2017年的佣金和2016年的一次性合約和解）後的收入增長額的評論，你就可以計算出這兩項因素加起來的總和。此外——如果你想回顧一下，我很確定TWC會披露與程式設計師達成的合約和解金額，正是這筆和解導致了2016年第一季更高的收入。所以我幫你畫了一張非常複雜的路線圖，幫你到達那裡。祝你好運。但正是這兩項因素結合起來，才推動了我在準備好的發言稿中重點提到的收入成長差異。第二個問題我沒看懂，它更多的是關於逐個市場進行客戶分析。

The idea that we're being picked off in certain places where we have operating issues? We've seen no evidence of that. And at this point, we have a fully featured product set in every market we will -- other than Hawaii, which we'll have shortly, priced and packaged the way we want it. So we're in the right competitive posture that -- or we're in the posture we want to be anyway.

我們是不是在某些營運出現問題的地方被逐一擊破了？我們沒有看到任何證據。目前，除了夏威夷以外，我們在所有市場都推出了功能齊全的產品套裝（夏威夷的產品套裝我們很快就會推出），價格和包裝都符合我們的預期。所以我們現在處於正確的競爭狀態——或者說，我們處於我們想要的狀態。

And your next question comes from Jessica Reif with Bank of America Merrill Lynch.

下一個問題來自美國銀行美林證券的傑西卡·雷夫。

Two questions. Can you go back to some comments you made earlier about SMB and setting national pricing for the Enterprise business? Can you give us some color on where you see the potential upside from your perspective? What the margins could be in that business and how we can measure success or -- milestones that we should look for? Then the second question is just on programming costs. Can you give us an idea of what your programming cost for the full year versus the 8% in the first quarter?

兩個問題。您能否回顧一下您之前關於中小企業和企業級業務全國定價的一些評論？您能否從您的角度來看，具體說說您認為潛在的成長點在哪裡？該業務的利潤空間可能有多大？我們如何衡量成功？或者說，我們該關注哪些里程碑？那麼第二個問題就只是關於程式設計成本了。能否簡要說明一下，您全年的程式成本與第一季 8% 的成本相比如何？

So on programming cost, I knew it would come up, which is why I said what I did. It's going to be lumpy throughout the year. So we don't provide guidance generally. And so I think providing it on one single line item would be somewhat strange to not provide an overall revenue, EBITDA or CapEx guidance and then start doing it on the single expense line. But we're seeing synergies on the programming side. We are seeing renewals as well. We're getting longer terms, better rights. Longer terms -- we have shorter terms where we want them and getting better rights along the way. So beyond that, it's not something we're going to go into a great detail on.

所以關於程式設計成本，我知道這個問題肯定會被提及，所以我才這麼說。全年天氣都會不穩定。所以我們一般不提供指導。因此，我認為如果不提供整體收入、EBITDA 或資本支出指引，而是只在一項支出中提供指引，那就有點奇怪了。但我們在程式設計方面看到了協同效應。我們也看到了續約的情況。我們獲得了更長的租期和更好的權益。更長的期限－我們想要更短的期限，但同時也要爭取更好的權益。所以除此之外，我們就不打算深入探討這個問題了。

Jessica, with regard to SMB, I -- we have a similar strategy with SMB to what we have with residential in many ways, which is to create high-value -- high-volume opportunities in the marketplace. And we'd priced and packaged our SMB product in such a way that we've accelerated unit growth significantly, and revenue growth and ARPU growth catch up with that. And that we expect to have happen, just like we do our residential base. We've also done that in a new way going forward in the new company with our Enterprise business as well. And we -- which is the market above small business. And we are -- we've gone to a lower-priced, higher-volume, higher-quality product mix with a service infrastructure to reduce installation times for all fiber products to businesses. And so we've developed a construction infrastructure, meaning personnel that are able to build fiber infrastructure to new business customers in a rapid way. And by creating the more high-value, high-volume products with the capability of getting them installed in a short period of time, we think we can start to move some of that share, which we have a very minuscule piece of today. So we're very excited about the future of both SMB, but also of Enterprise as well.

傑西卡，關於中小企業，我們——在許多方面，我們對中小企業採取的策略與我們對住宅市場的策略類似，那就是在市場上創造高價值、高銷量的機會。我們對中小企業產品進行了定價和包裝，從而顯著加快了銷售增長，而收入增長和每用戶平均收入增長也隨之趕上。我們預計這種情況會發生，就像我們對待我們的居民基地一樣。在新公司中，我們也以新的方式推進了企業業務的發展。而我們——則是小型企業之上的市場。我們已經轉向價格更低、銷量更高、品質更高的產品組合，並建立了服務基礎設施，以縮短所有面向企業的光纖產品的安裝時間。因此，我們建立了一套建設基礎設施，這意味著我們擁有能夠快速為新企業客戶建造光纖基礎設施的人員。透過創造更多高價值、高銷售量的產品，並使其能夠在短時間內完成安裝，我們認為我們可以開始贏得一些市場份額，而我們目前所佔的份額非常小。因此，我們對中小企業的未來以及大型企業的未來都感到非常興奮。

And the PSUs is the way to -- that you'll see that manifest itself through accelerated net adds growth, and as over time, this -- the volume catches up to the pricing. You'll see it come through revenue.

而電源供應單元 (PSU) 就是實現這一目標的途徑——你會看到淨新增用戶數量的加速增長體現了這一點，而且隨著時間的推移，銷量會趕上價格。你會看到它體現在收入上。

Can you comment on margin potential?

能談談利潤潛力嗎？

We don't break out margin.

我們不單獨列出利潤率。

We do not. Except that the margins act like residential margins in the sense that if you improve your activity levels per dollar revenue, your margins improve.

我們沒有。只不過，利潤率的作用方式與住宅利潤率類似，也就是說，如果你提高每美元收入的活動水平，你的利潤率就會提高。

And your next question comes from the line of Vijay Jayant with Evercore.

你的下一個問題來自 Vijay Jayant 與 Evercore 的對話。

A couple of bigger-picture questions. Tom, obviously, you have an IP-only product that you, I don't think, really market, but we're seeing Comcast talk about probably doing something there and you have the satellite guys doing it. Is that something that we should sort of see as a product set in the next few months? Or you're happy with the current strategy? And just a question that we get and to sort of understand this Time Warner Cable churn that we're seeing. And obviously, over time, you'll have the gross adds with the pricing promotion at Spectrum. Why can't there be a more seamless transition? Are these customers so poor in quality that you wouldn't want to save them, so let them churn than have gross adds again? I'm just trying to understand why do we have that sort of a disconnect rather than a seamless transition? Any...

幾個更宏觀的問題。湯姆，很顯然，你有一款僅限 IP 的產品，但我認為你並沒有真正進行市場推廣，不過我們看到康卡斯特正在討論可能要在這方面做些事情，而衛星電視公司也在做這件事。這是否應該成為我們未來幾個月內推出的產品系列之一？還是你對目前的策略感到滿意？我們經常被問到這個問題，想了解我們目前看到的時代華納有線電視用戶流失情況。顯然，隨著時間的推移，Spectrum 的價格促銷活動會帶來額外的毛利增加。為什麼不能實現更光滑的過渡？這些客戶的品質真的差到讓你不想留住他們，寧願讓他們流失也不願再增加大量新客戶嗎？我只是想弄清楚，為什麼我們之間會出現這種脫節，而不是無縫過渡？任何...

Let me take the first one -- or the second one first. The TWC churn, somebody was given a $10 limited video basic package. Where can you move them? And they have an exploding offer that was a promotional offer. Where can you move them that's a satisfactory place relative to what they were given before? Same thing exists across voice. So we've spoken at length about that before. Now that we have Spectrum pricing and packaging in place across the entire footprint, is there a better path to migrate them into that pricing and packaging? Yes. But can we completely solve the issues that were installed in the base? Maybe, maybe not. Your first question was -- and I think more directed at Tom, but I didn't capture which product you were talking about...

讓我先選第一個——或者第二個。TWC 的用戶流失中，有人獲得了價值 10 美元的有限視訊基礎套餐。你可以把它們搬到哪裡？他們還有一個限時促銷活動，優惠力道很大。你能把他們安置到哪裡，才能讓他們搬到一個比以前更好的地方？語音領域也存在同樣的問題。我們之前已經詳細討論過這個問題了。既然我們已經在整個服務區域內實施了 Spectrum 定價和套餐，有沒有更好的方法將它們遷移到該定價和套餐？是的。但是我們能徹底解決基地中存在的問題嗎？也許是，也許不是。你的第一個問題是──我覺得更多的是問湯姆的，但我沒聽清楚你指的是哪個產品…

Security. Is that what you said?

安全。你真是這麼說的嗎？

That we can actively market.

我們可以積極推廣。

No, an IP-only TV product.

不，這是一款僅限IP網路的電視產品。

IP-only video product?

僅限IP的視訊產品？

Yes. Just -- the question is that you have these virtual MVPDs out there, and some of the incumbent distributors are also looking to launch their versions of it. Just from your perspective, is that something -- is the stand-alone IP-only product, is that something you could see in the not-too-distant future?

是的。問題在於，現在市面上出現了這些虛擬多頻道視訊節目分銷商 (MVPD)，一些現有的經銷商也正考慮推出自己的版本。僅從您的角度來看，這種獨立的純IP產品，您認為在不久的將來會是什麼樣的嗎？

Yes. Look, we do have an IP-only video product. Our entire cable service is IP-only delivered if customers want to receive it that way. So IP is a format. All of our product can be delivered on any device in the home. All of our TV Everywhere product can delivered outside the home anywhere, depending on the service relationship and the contractual relationship with the provider. And our -- to the extent we want to sell over-the-top products inside our footprint or outside, in some cases, we have those rights. We haven't done that because we don't really see any opportunity to create new customer relationships out of that, that have a high value to us. But we certainly have the capability of doing that. So when you say IP, all of our app-based products are IP. All of our products are now serviced -- including our video-on-demand infrastructure of 50,000 titles are capable of being delivered in IP to any device. And the real question is, what's the footprint of the service area? And that depends on the rights structure. TV Everywhere, obviously, can be delivered nationally and is.

是的。你看，我們確實有一款僅限 IP 的視訊產品。如果客戶希望以這種方式接收，我們所有的有線電視服務都僅透過 IP 傳輸。所以IP是一種格式。我們的所有產品都可以透過家中的任何設備進行傳輸。我們所有的「電視無所不在」產品都可以送到家以外的任何地方，這取決於與服務提供者的服務關係和合約關係。而且，如果我們想在我們的業務範圍內或範圍外銷售超高端產品，在某些情況下，我們擁有這些權利。我們沒有這樣做，因為我們看不到從中建立對我們而言具有很高價值的新客戶關係的任何機會。但我們當然有能力做到這一點。所以，當您提到 IP 時，我們所有基於應用程式的產品都是 IP。我們所有的產品現在都已提供服務——包括我們的視訊點播基礎設施，其中 50,000 個節目可以透過 IP 傳輸到任何設備。真正的問題是，服務區域的範圍有多大？這取決於權利結構。顯然，TV Everywhere 可以覆蓋全國範圍，而且確實如此。

The story from the programmers in some of the "Virtual MVPD operators" was that this was going to grow the market, and then the programmers had thought the same as well. I think if you take a look at the evidence so far, the current OTT offerings that are out there right now just seem to be cannibalizing the same satellite providers in the base. And so it's not a -- it's just a shift amongst a base as opposed to actually growing the market. Charter has all the rights. It has all the technical capabilities, and it has the programming. And if we can put together packages that will generate incremental customers, I think we're uniquely positioned to go do that over time.

一些「虛擬多頻道視訊節目分銷商」的程式設計師認為，這將擴大市場，而其他程式設計師也持同樣的觀點。我認為，從目前的證據來看，現在市面上的OTT服務似乎只是在蠶食衛星電視供應商的市場份額。所以，這並不是——這只是客戶基礎的轉移，而不是市場的實際成長。Charter擁有所有權利。它具備所有技術能力，並且擁有相應的程式設計能力。如果我們能夠推出能夠帶來更多客戶的套餐，我認為隨著時間的推移，我們將擁有獨特的優勢來實現這一目標。

Your next question comes from Jason Bazinet with Citi.

下一個問題來自花旗銀行的傑森·巴齊內特。

Just a quick question for Mr. Winfrey. You mentioned all your synergies are on track, including programming synergies. And I was just wondering if you could remind us on Fox, if I remember, there is sort of a little bit of a debate around who is the surviving entity. And I just didn't know where that stood. And what I really care about is sort of how are you booking it now. And is there any risk of sort of an adverse outcome, where things get recast adversely, I guess?

我有個問題想問溫弗瑞先生。您提到所有協同效應都在按計畫進行，包括程式設計協同效應。我只是想問您能否提醒我們一下，如果我沒記錯的話，福克斯電視台似乎對誰是最終的贏家存在一些爭議。我當時完全不知道事情的進展如何。我真正關心的是，你現在是如何預訂的。那麼，是否存在出現某種不利後果的風險，例如事情朝著不利的方向發展？

Yes. Look, I understand the interest, but we're in the middle of litigation with a few different programmers right now. So I don't think it behooves us to go -- we never had gone into any programmer-by-programmer detail. And I think even more so now, it doesn't really -- it's not really in our interest to do that. We're confident that we'll have successful programming relationships for years to come, and we're taking all the appropriate steps we need to from an accounting perspective.

是的。我知道大家很感興趣，但我們現在正和幾位不同的程式設計師進行訴訟。所以我覺得我們沒必要去——我們從來沒有深入了解每個程式設計師的細節。而我認為現在更是如此，這樣做其實並不符合我們的利益。我們有信心在未來幾年內保持成功的程式設計合作關係，並且我們正在從會計角度採取所有必要的適當措施。

Can you, at least, just share how you're booking it now and when you expect resolution to the litigation?

您至少可以透露一下您目前的預訂安排以及您預計訴訟何時能夠解決嗎？

No, I can't.

不，我不能。

And your final question comes from Phil Cusick with JPMorgan.

最後一個問題來自摩根大通的菲爾·庫西克。

A couple of quick ones. First, Chris can you expand on -- you said something about network and vendor delays in CapEx in the first quarter. And then second, can you remind us of transition expense expectations and timing from here?

幾個簡單的問題。首先，克里斯，你能詳細說明一下嗎？你提到第一季資本支出方面有網路和供應商延誤的問題。其次，能否提醒我們從現在開始的過渡費用預期和時間安排？

Sure. So I don't want to overplay that. At the beginning of every year, there's an operating plan at a detailed project-by-project level that's getting put in place, and it drives orders. And sometimes, those orders get delayed either from internal submission of the orders or from vendors. So there's nothing more to that other than we have a lot of moving parts with a lot of projects, and to get that organized and placed takes a little bit of time. We have had some supply chain issues as it relates to set-top boxes, none of which has been customer-impacting so far. I don't expect it to be. It just means that we're running a little bit light on the inventory where -- compared to where we'd like to be, and that has an impact on capital expenditure in a particular quarter. It also means that when the supply chain flips the other way, you can end up a little heavy on CPE relative to connects just as you go do that. So it's just timing. On transition capital expenditure, we'd expect to be through all of that essentially this year. It doesn't mean that there won't be -- continue to be some going on beyond, but I think our goal would be to have it down to a stage where there's not a need to separate that anymore beyond 2017 and look at it from a consolidated basis at that point.

當然。所以我不想過度強調這一點。每年年初，都會制定詳細的項目級營運計劃，該計劃會驅動訂單。有時，這些訂單會因為內部提交訂單或供應商的原因而延遲。所以除此之外，沒什麼別的了，我們有很多專案涉及很多環節，要把它們組織起來並安排妥當需要一些時間。我們在機上盒的供應鏈方面遇到了一些問題，但到目前為止，這些問題都沒有對客戶造成影響。我不認為會是這樣。這意味著我們的庫存比我們希望達到的水平略低，這會對特定季度的資本支出產生影響。這也意味著，當供應鏈反過來運作時，你最終可能會發現 CPE 相對於連接器的數量有點太多。所以只是時機問題。關於過渡性資本支出，我們預計今年基本上都能完成。這並不意味著以後就不會再有——有些事情還會繼續發生，但我認為我們的目標是讓它發展到2017年以後不再需要將其分開的階段，屆時可以從合併的角度來看待它。

Thanks, Phil, and thank you, Kim. That concludes our call. Thank you, everybody, for dialing in.

謝謝菲爾，也謝謝金。通話到此結束。謝謝大家撥入。

Thank you.

謝謝。

Ladies and gentlemen, this concludes today's conference call. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。您現在可以斷開連線了。