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SEC Filings

S-4/A
RENAISSANCE MEDIA GROUP LLC filed this Form S-4/A on 08/06/1998
Entire Document
 
<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)
    
  For purposes of this statement, cash and cash equivalents includes all
highly liquid investments purchased with original maturities of three months
or less.
 
 Property, Plant and Equipment
 
  Property, plant and equipment are stated at cost. Additions to property,
plant and equipment generally include material, labor, overhead and interest.
Depreciation is provided on the straight-line method over estimated useful
lives as follows:
 

<TABLE>   
     <S>                                                              <C>
     Buildings and improvements...................................... 5-20 years
     Cable television equipment...................................... 5-15 years
     Furniture, fixtures and other equipment......................... 3-10 years
</TABLE>
    
 
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).
   
 Impairment     
   
  Management separately reviews the carrying value of acquired long-lived
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 long-lived assets can be recovered. Upon a determination that the
carrying value of long-lived assets will not be recovered from the
undiscounted future cash flows of the acquired business, the carrying value of
such long-lived assets would be considered impaired and would be reduced by a
    
                                     F-16