Print Page  Close Window

SEC Filings

8-K/A
CHARTER COMMUNICATIONS, INC. /MO/ filed this Form 8-K/A on 01/26/2000
Entire Document
 
<PAGE>   17




(e)      Reflects a reclassification of expenses representing corporate expenses
         that would have occurred at Charter Investment, Inc.

(f)      Represents additional depreciation and amortization as a result of our
         recently completed acquisitions and Falcon acquisition. A large portion
         of the purchase price was allocated to franchises ($6.8 billion) that
         are amortized over 15 years. The adjustments to depreciation and
         amortization expense consists of the following (dollars in millions):


<TABLE>
<CAPTION>

                                                                                    WEIGHTED AVERAGE         DEPRECIATION/
                                                                 FAIR VALUE      USEFUL LIFE (IN YEARS)      AMORTIZATION  
                                                                 ----------      ----------------------      ------------
<S>                                                             <C>              <C>                         <C>         
Franchises...................................................   $     6,792.2                     15          $      447.1
Cable distribution systems...................................         1,108.9                      8                 141.6
Land, building and improvements..............................            34.6                     10                   3.3
Vehicles and equipment.......................................            57.1                      3                  17.2
                                                                                                              ------------
   Total depreciation and amortization.......................                                                        609.2
   Less-historical depreciation and amortization.............                                                       (376.2)
                                                                                                              ------------
       Adjustment............................................                                                 $      233.0
                                                                                                              ============
</TABLE>


(g)       Reflects additional interest expense on borrowings which have been or
          will be used to finance the acquisitions as follows (dollars in
          millions):

<TABLE>


<S>                                                                                                            <C>      
$2.7 billion of credit facilities at composite current rate of 8.2%......................................      $   217.9
$114.4 million 10% senior discount notes--Renaissance....................................................           10.7
$133.3 million 8% liability to sellers--Rifkin...........................................................           11.0
$506.6 million 8% liability to sellers--Falcon...........................................................           40.6
$1.0 billion of credit facilities at composite current rate of 7.9%--CC VII - Falcon.....................           80.1
$375.0 million 8.375% senior debentures--Falcon..........................................................           31.4
$435.3 million 9.285% senior discount debentures--Falcon.................................................           32.5
                                                                                                               ---------
    Total pro forma interest expenses....................................................................          424.2
    Less-historical interest expense from acquired companies.............................................         (236.0)
                                                                                                               ---------
       Adjustment........................................................................................      $   188.2
                                                                                                               =========
</TABLE>


An increase in the interest rate on all variable rate debt of 0.125% would
result in an increase in interest expense of $6.6 million.

(h)      Represents the elimination of gain (loss) on the sale of cable
         television systems whose results of operations have been eliminated in
         (c) and (d) above.

(i)      Reflects the elimination of income tax expense (benefit) as a result of
         expected recurring future losses. The losses will not be tax benefited
         and no net deferred tax assets will be recorded.


         NOTE D: The offering adjustment to interest expense of approximately
$15.2 million in higher interest expense consist of the following (dollars in
millions):


<TABLE>
<CAPTION>

                                                                                                              INTEREST
DESCRIPTION                                                                                                    EXPENSE
-----------                                                                                                    -------
<S>                                                                                                          <C>     
$726.4 million of January 2000 High Yield Notes (at a blended rate of 10.5%)..........................       $   76.6
Amortization of debt issuance costs...................................................................            2.5
                                                                                                             --------
      Total pro forma interest expense................................................................           79.1
      Less-historical interest expense ...............................................................          (63.9)
                                                                                                             --------
              Adjustment..............................................................................       $   15.2
                                                                                                             ========
</TABLE>


The offering adjustment to minority interest represents the allocation of 62.4%
of the net loss of Charter Communications Holding Company to minority interest.








                                       17