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SEC Filings

424B1
RENAISSANCE MEDIA GROUP LLC filed this Form 424B1 on 09/10/1998
Entire Document
 
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           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)
 
5. INCOME TAXES
 
  Effective January 4, 1996, the Combined Systems are included in the
consolidated federal income tax return of Time Warner. Prior to January 4,
1996, the Combined Systems were included in the consolidated federal income
tax return of CVI. The provision (benefit) for income taxes has been
calculated on a separate company basis. The components of the provision
(benefit) for income taxes are as follows:
 

<TABLE>
<CAPTION>
                              YEAR ENDED DECEMBER 31,      PERIOD ENDED
                              ------------------------- ------------------
                                                        MARCH 31, APRIL 8,
                                1995     1996    1997     1997      1998
                              --------  ------- ------- --------- --------
                                   (IN THOUSANDS)           (IN THOUSANDS)
                                                             (UNAUDITED)
   <S>                        <C>       <C>     <C>     <C>       <C>      
   Federal:
     Current................  $    --   $   --  $   --    $--      $  --
     Deferred...............    (2,881)   1,213   1,826    532        962
   State:
     Current................       --       --      --     --         --
     Deferred...............      (686)     289     436    127        229
                              --------  ------- -------   ----     ------
       Net provision (bene-
        fit) for income tax-
        es..................   $(3,567) $ 1,502 $ 2,262   $659     $1,191
                              ========  ======= =======   ====     ======
</TABLE>

 
  The Combined Systems did not, and will not, have a tax sharing agreement
with either Time Warner, TWI Cable or CVI. Therefore, the Combined Systems
have not and will not be compensated for the utilization of the Combined
Systems' tax losses, by Time Warner, TWI Cable or CVI. In addition, the
Combined Systems have not and will not be required to make payments to either
Time Warner or TWI Cable for the current tax provision of the Combined
Systems.
 
 
  The differences between the income tax provision (benefit) expected at the
U.S. federal statutory income tax rate and the total income tax provision
(benefit) are due to nondeductible goodwill amortization and state taxes.
 
  Significant components of the Combined Systems' deferred tax assets and
liabilities, as calculated on a separate company basis, are as follows:

<TABLE>
<CAPTION>
                                                             PERIOD ENDED
                                     YEAR ENDED DECEMBER 31,   APRIL 8,
                                     ----------------------- ------------
                                        1996        1997         1998
                                     ----------- ----------- ------------
                                         (IN THOUSANDS)       (IN THOUSANDS)
                                                               (UNAUDITED)
   <S>                               <C>         <C>         <C>         
   Deferred tax liabilities:
     Amortization..................  $    61,266 $    58,507   $57,817
     Depreciation..................        3,576       4,060     4,181
                                     ----------- -----------   -------
       Total gross deferred tax
        liabilities................       64,842      62,567    61,998
                                     ----------- -----------   -------
   Deferred tax assets:
     Tax loss carryforwards........        6,474       1,920       160
     Allowance for doubtful
      accounts.....................           28          46        46
                                     ----------- -----------   -------
       Total deferred tax assets...        6,502       1,966       206
                                     ----------- -----------   -------
       Net deferred tax liability..  $    58,340 $    60,601   $61,792
                                     =========== ===========   =======
</TABLE>

 
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