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SEC Filings

S-4
CHARTER COMMUNICATIONS HOLDINGS CAPITAL CORP filed this Form S-4 on 01/25/2000
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<PAGE>   83
 
     The notional amounts of interest rate instruments, as presented in the
above table, are used to measure interest to be paid or received and do not
represent the amount of exposure to credit loss. The estimated fair value
approximates the proceeds (costs) to settle the outstanding contracts. Interest
rates on variable debt are estimated using the average implied forward London
Interbank Offering Rate (LIBOR) rates for the year of maturity based on the
yield curve in effect at December 31, 1998. While swaps, caps and collars
represent an integral part of our interest rate risk management program, their
incremental effect on interest expense for the years ended December 31, 1998,
1997, and 1996 was not significant.
 
     In March 1999, substantially all existing long-term debt, excluding
borrowings of our previous credit facilities, was extinguished, and all previous
credit facilities were refinanced with the Charter Operating credit facilities.
The following table sets forth the fair values and contract terms of the
long-term debt maintained by us as of September 30, 1999 (dollars in thousands):
 

<TABLE>
<CAPTION>
                                                  EXPECTED MATURITY DATE                                            FAIR VALUE AT
                                    ---------------------------------------------------                             SEPTEMBER 30,
                                      1999       2000       2001      2002       2003     THEREAFTER     TOTAL          1999
                                    --------   --------   --------   -------   --------   ----------   ----------   -------------
<S>                                 <C>        <C>        <C>        <C>       <C>        <C>          <C>          <C>
DEBT
Fixed Rate........................        --         --         --        --   $115,000   $3,817,413   $3,932,413    $3,206,520
 Average Interest Rate............        --         --         --        --         11%         9.0%         9.0%
Variable Rate.....................        --         --         --   $88,875   $156,000   $2,605,125   $2,850,000    $2,850,000
 Average Interest Rate............        --         --         --       6.7%       6.8%         7.0%         7.0%
</TABLE>

 
     Interest rates on variable debt are estimated using the average implied
forward LIBOR rates for the year of maturity based on the yield curve in effect
at September 30, 1999.
 
YEAR 2000 ISSUES
 
     GENERAL.  Many existing computer systems and applications, and other
control devices and embedded computer chips use only two digits, rather than
four, to identify a year in the date field, failing to consider the impact of
the recent change in the century. Computer chips are the physical structure upon
which integrated circuits are fabricated as components of systems, such as
telephone systems, computers and memory systems. As a result, such systems,
applications, devices, and chips could create erroneous results or might fail
altogether unless corrected to properly interpret data related to the year 2000
and beyond. These errors and failures may result, not only from a date
recognition problem in the particular part of a system failing, but may also
result as systems, applications, devices and chips receive erroneous or improper
data from third parties suffering from the year 2000 problem. In addition, two
interacting systems, applications, devices or chips, each of which has
individually been fixed so that it will properly handle the year 2000 problem,
could nonetheless result in a failure because their method of dealing with the
problem is not compatible.
 
     The year 2000 issue impacts our owned or licensed computer systems and
equipment used in connection with internal operations, including:
 
     - information processing and financial reporting systems;
 
     - customer billing systems;
 
     - customer service systems;
 
     - telecommunication transmission and reception systems; and
 
     - facility systems.
 
     We have not experienced significant service disruptions or any other
problems since the beginning of the year 2000. We cannot assure you, however,
that such problems will not arise in connection with customer billing or other
periodic information gathering.
 
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