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S-4
RENAISSANCE MEDIA GROUP LLC filed this Form S-4 on 06/12/1998
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<PAGE>
 
           PICAYUNE MS, LAFOURCHE LA, ST. TAMMANY LA, ST. LANDRY LA,
           POINTE COUPEE LA, AND JACKSON TN CABLE TELEVISION SYSTEMS
                         (INCLUDED IN TWI CABLE INC.)
 
              NOTES TO COMBINED FINANCIAL STATEMENTS--(CONTINUED)
 
 
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--(CONTINUED)
 
Property, plant and equipment consist of:
 

<TABLE>
<CAPTION>
                                               DECEMBER 31,       MARCH 31,
                                              ----------------  --------------
                                               1996     1997         1998
                                              -------  -------  --------------
                                              (IN THOUSANDS)    (IN THOUSANDS)
                                                                 (UNAUDITED)
      <S>                                     <C>      <C>      <C>
      Land and buildings..................... $ 2,003  $ 2,265     $ 2,255
      Cable television equipment.............  32,324   39,589      40,386
      Furniture, fixtures and other equip-
       ment..................................   1,455    2,341       2,308
      Construction in progress...............   5,657    1,028       1,026
                                              -------  -------     -------
                                               41,439   45,223      45,975
      Less accumulated depreciation..........  (4,473)  (8,279)     (9,981)
                                              -------  -------     -------
        Total................................ $36,966  $36,944     $35,994
                                              =======  =======     =======
</TABLE>

 Intangible Assets
 
  During 1996 and 1997, the Combined Systems amortized goodwill over periods
up to 40 years and cable television franchises over periods up to 20 years,
both using the straight-line method. Prior to the CVI Merger, goodwill and
cable television franchises were amortized over 15 years using the straight-
line method. For the years ended 1995, 1996, and 1997, amortization of
goodwill amounted to $8,199,000, $1,325,000, and $1,325,000, respectively, and
amortization of cable television franchises amounted to $1,284,000,
$11,048,000, and $11,048,000, respectively. For the three month periods ended
March 31, 1998 (unaudited), amortization of goodwill amounted to $331,000, and
amortization of cable television franchises amounted to $2,762,000.
Accumulated amortization of intangible assets at December 31, 1996 and 1997
amounted to $12,373,000 and $24,746,000, respectively, and $24,858,000 at
March 31, 1998 (unaudited).
 
  Management separately reviews the carrying value of acquired intangible
assets for each acquired entity on a quarterly basis to determine whether an
impairment may exist. Management considers relevant cash flow and
profitability information, including estimated future operating results,
trends and other available information, in assessing whether the carrying
value of intangible assets can be recovered. Upon a determination that the
carrying value of intangible assets will not be recovered from the
undiscounted future cash flows of the acquired business, the carrying value of
such intangible assets would be considered impaired and would be reduced by a
charge to operations in the amount of the impairment. An impairment charge is
measured as a deficiency in estimated discounted future cash flows of the
acquired business to recover the carrying value related to the intangible
assets.
 
 Income Taxes
 
  Income taxes have been provided using the liability method prescribed by
FASB Statement No. 109, "Accounting for Income Taxes." Under the liability
method, deferred income taxes reflect tax carryforwards and the net tax
effects of temporary differences between the carrying amount of assets and
liabilities for financial statements and income tax purposes, as determined
under enacted tax laws and rates.
 
2. EMPLOYEE BENEFIT PLANS
 
  Following the CVI Merger, the Combined Systems began participation in the
Time Warner Cable Pension Plan (the "Pension Plan"), a non-contributory
defined benefit pension plan, and the Time Warner Cable Employee Savings Plan
(the "Savings Plan") which are administered by a committee appointed by the
Board of Representatives of Time Warner Entertainment Company, L.P. ("TWE"),
an affiliate of Time Warner, and which cover substantially all employees.
 
                                     F-15