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SEC Filings

S-4
AVALON CABLE OF MICHIGAN INC/ filed this Form S-4 on 04/01/1999
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<PAGE>
 
                     CABLE MICHIGAN, INC. AND SUBSIDIARIES
 
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
 
4. Property, Plant and Equipment
 

<TABLE>
<CAPTION>
                                                        December 31, November 5,
                                                            1997        1998
                                                        ------------ -----------
<S>                                                     <C>          <C>
Cable plant............................................   $158,655    $174,532
Buildings and land.....................................      2,837       2,917
Furniture, fixtures and vehicles.......................      5,528       6,433
Construction in process................................        990         401
                                                          --------    --------
Total property, plant and equipment....................    168,010     184,283
Less accumulated depreciation..........................    (94,174)   (106,718)
                                                          --------    --------
Property, plant and equipment, net.....................   $ 73,836    $ 77,565
                                                          ========    ========
</TABLE>

 
   Depreciation expense was $15,728, $16,431 and $14,968 for the years ended
December 31, 1996 and 1997, and the period from January 1, 1998 to November 5,
1998, respectively.
 
5. Intangible Assets
 
   Intangible assets consist of the following at:
 

<TABLE>
<CAPTION>
                                                        December 31, November 5,
                                                            1997        1998
                                                        ------------ -----------
      <S>                                               <C>          <C>
      Cable Franchises.................................   $134,889    $134,889
      Noncompete agreements............................        473         473
      Goodwill.........................................      3,990       3,990
      Other............................................      1,729       1,729
                                                          --------    --------
      Total............................................    141,081     141,081
      Less accumulated amortization....................    (95,821)   (108,951)
                                                          --------    --------
      Intangible assets, net...........................   $ 45,260    $ 32,130
                                                          ========    ========
</TABLE>

 
   Amortization expense charged to operations for the years ended December 31,
1996 and 1997 was $15,699 and $15,651, respectively, and $13,130 for the period
from January 1, 1998 to November 5, 1998.
 
6. Income Taxes
 
   The income tax provision (benefit) in the accompanying consolidated
financial statements of operations is comprised of the following:
 

<TABLE>
<CAPTION>
                                                      1996     1997     1998
                                                     -------  -------  -------
      <S>                                            <C>      <C>      <C>
      Current
        Federal .................................... $(6,700) $   245  $   320
        State.......................................     --       --        28
                                                     -------  -------  -------
          Total Current.............................  (6,700)     245      348
                                                     -------  -------  -------
      Deferred:
        Federal ....................................     988   (4,359)  (2,074)
        State.......................................     --       --      (183)
                                                     -------  -------  -------
          Total Deferred............................     988   (4,359)  (2,257)
                                                     -------  -------  -------
          Total (benefit) for income taxes.......... $(5,712) $(4,114) $(1,909)
                                                     =======  =======  =======
</TABLE>

 
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