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S-4
CHARTER COMMUNICATIONS HOLDINGS CAPITAL CORP filed this Form S-4 on 04/30/1999
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<PAGE>   351
                     RIFKIN ACQUISITION PARTNERS, L.L.L.P.
 
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
 
depreciation are removed from the accounts and any gain or loss is recognized.
Capitalized interest was not significant for the periods shown.
 
     Depreciation expense is calculated using the straight-line method over the
estimated useful lives of the assets as follows:
 

<TABLE>
<S>                                                  <C>
Buildings..........................................  27-30 years
Cable television transmission and distribution
  systems and related equipment....................   3-15 years
Vehicles and furniture and fixtures................    3-5 years
</TABLE>

 
     Expenditures for maintenance and repairs are expensed as incurred.
 
FRANCHISE COSTS
 
     Franchise costs are amortized using the straight-line method over the
remaining lives of the franchises as of the date they were acquired, ranging
from one to twenty years. The carrying value of franchise costs is assessed for
recoverability by management based on an analysis of undiscounted future
expected cash flows from the underlying operations of the Company. Management
believes that there has been no impairment thereof as of December 31, 1998.
 
OTHER INTANGIBLE ASSETS
 
     Certain loan costs have been deferred and are amortized to interest expense
utilizing the straight-line method over the remaining term of the related debt.
Use of the straight-line method approximates the results of the application of
the interest method. The net amounts remaining at December 31, 1998 and 1997
were $6,176,690 and $7,166,450, respectively.
 
CASH AND CASH EQUIVALENTS
 
     All highly liquid debt instruments purchased with an original maturity of
three months or less are considered to be cash equivalents.
 
REDEEMABLE PARTNERS' INTERESTS
 
     The Partnership Agreement provides that if a certain partner dies or
becomes disabled, that partner (or his personal representative) shall have the
option, exercisable by notice given to the partners at any time within 270 days
after his death or disability (except that if that partner dies or becomes
disabled prior to August 31, 2000, the option may not be exercised until August
31, 2000 and then by notice by that partner or his personal representative given
to the partners within 270 days after August 31, 2000) to sell, and require the
General Partner and certain trusts controlled by that partner to sell, and the
Partnership to purchase, up to 50% of the partnership interests owned by any of
such partners and certain current and former members of management of Rifkin &
Associates, Inc. that requests to sell their interest, for a purchase price
equal to the fair market value of those interests determined by appraisal in
accordance with the Partnership Agreement. Accordingly, the current fair value
of such partnership interests have been reclassified outside of partners'
capital.
 
                                      F-196