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S-4/A
RENAISSANCE MEDIA GROUP LLC filed this Form S-4/A on 09/04/1998
Entire Document
 
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                          RENAISSANCE MEDIA GROUP LLC
 
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 JUNE 30, 1998
             (ALL DOLLAR AMOUNTS IN 000'S EXCEPT WHERE INDICATED)
                                  (UNAUDITED)
 
1. ORGANIZATION
   
  Renaissance Media Group, LLC ("Group") was formed on March 13, 1998 by
Renaissance Media Holdings, LLC ("Holdings"). Holdings formed Renaissance
Media Capital Corporation on March 12, 1998. On March 20, 1998, Holdings
contributed to Group its membership interests in two wholly-owned
subsidiaries, Renaissance Media (Louisiana) LLC ("Louisiana") and Renaissance
Media (Tennessee) LLC ("Tennessee"), which were formed on January 7, 1998.
Louisiana and Tennessee acquired a 76% interest and 24% interest,
respectively, in Renaissance Media LLC ("Media") from Morgan Stanley Capital
Partners III, Inc. on February 13, 1998 at the same nominal amount through an
acquisition of entities under common control accounted for as if it were a
pooling of interests, as a result of which Media became a subsidiary of
Holdings. Group and its aforementioned subsidiaries are collectively referred
to as the "Company". On April 9, 1998, the Company acquired six cable
television systems from TWI Cable, Inc. ("TWI Cable"). See Note 4. Prior to
this Acquisition, the Company had no operations other than start up related
activities.     
 
2. BASIS OF PRESENTATION
 
  Significant intercompany transactions and accounts have been eliminated. The
accompanying financial statements have been prepared in accordance with
generally accepted accounting principles for interim financial statements and
with the instructions to Article 10 of Regulation S-X. The interim financial
statements are unaudited but include all adjustments, which are of normal
recurring nature that the Company considers necessary for a fair presentation
of the financial position and the results of operations and cash flows for
such period. Operating results of interim periods are not necessarily
indicative of results for a full year.
 
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
 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 and Equipment
 
  Property and equipment are stated at cost. Replacements, renewals and
improvements are capitalized. Maintenance and repairs are charged to expense
as incurred. Depreciation of property and equipment is provided using the
straight-line method over the following estimated service lives:
 

<TABLE>
      <S>                                                             <C>
       Buildings..................................................... 40 years
       Distribution plant............................................ 3-10 years
       Other equipment and leasehold improvements.................... 3-20 years
</TABLE>

   
  The Company periodically reviews the carrying value of its long-lived
assets, including property, 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.     
 
                                     F-13