Print Page  Close Window

SEC Filings

424B3
RENAISSANCE MEDIA GROUP LLC filed this Form 424B3 on 11/13/1998
Entire Document
 
<PAGE>
 
                          RENAISSANCE MEDIA GROUP LLC
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1998
              (ALL DOLLAR AMOUNTS IN 000'S EXCEPT WHERE INDICATED)
                                  (Unaudited)


     Principles of Consolidation

     The consolidated financial statements of the Company include the accounts
of the Company and its wholly owned subsidiaries.  Significant intercompany
accounts and transactions have been eliminated.

     Cash and Cash Equivalents

     Cash and cash equivalents include cash and investments in short-term,
highly liquid securities, which have maturities when purchased of three months
or less.

     Property, Plant and Equipment

     Property, plant and equipment are stated at cost.  Replacements, renewals
and improvements are capitalized.  Maintenance and repairs are charged to
expense as incurred.  Depreciation of property, plant and equipment is provided
using the straight-line method over the following estimated service lives:

     Buildings..........................................     40 years
     Distribution plant.................................     3-10 years
     Other equipment and leasehold improvements.........     3-20 years

     Cable Television Franchises and Intangible Assets

     Cable television franchises include costs incurred to obtain franchise
agreements.  Intangible assets include goodwill, deferred financing and other
intangible assets.  Cable television franchises and intangible assets are
amortized using the straight-line method over the following estimated useful
lives:

     Cable television franchises........................     15 years
     Goodwill...........................................     25 years
     Deferred financing and other intangible assets.....     2-10 years

     The Company periodically reviews the carrying value of its long-lived
assets, including property, plant and equipment and intangible assets, whenever
events or changes in circumstances indicate that the carrying value may not be
recoverable.  To the extent the estimated future cash inflows attributable to
the asset, less estimated future cash outflows, is less than the carrying
amount, an impairment loss is recognized to the extent that the carrying value
of such asset is greater than its fair value.

     Revenue Recognition

     Cable television service revenue is recognized in the month service is
provided to customers.  Advance payments on cable services to be rendered are
recorded as subscriber prepayments.  Advertising revenue is recognized in the
period in which the advertising commercials are aired.



                                       6