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SEC Filings

S-4/A
CHARTER COMMUNICATIONS HOLDINGS CAPITAL CORP filed this Form S-4/A on 06/22/1999
Entire Document
 
<PAGE>   459
   
                            INTERMEDIA CABLE SYSTEMS
    
   
              (COMPRISED OF COMPONENTS OF INTERMEDIA PARTNERS AND
    
   
                     INTERMEDIA CAPITAL PARTNERS IV, L.P.)
    
 
   
                     NOTES TO CONDENSED COMBINED FINANCIAL
    
   
                     STATEMENTS (UNAUDITED) -- (CONTINUED)
    
   
                             (DOLLARS IN THOUSANDS)
    
 
   
     IP-I is majority-owned, and ICP-IV is owned in part, by AT&T Broadband &
Internet Services ("AT&TBIS"), formerly Tele-Communications, Inc. As affiliates
of AT&TBIS, IP-I and ICP-IV are able to purchase programming services from a
subsidiary of AT&TBIS. Management believes that the overall programming rates
made available through this relationship are lower than the Systems could obtain
separately. Such volume rates may not continue to be available in the future
should AT&TBIS's ownership interest in InterMedia significantly decrease.
Program fees charged by the AT&TBIS subsidiary to the Systems for the three
months ended March 31, 1999 and 1998 amounted to $8,505 and $6,624,
respectively. Payables to affiliates include programming fees payable to the
AT&TBIS subsidiary of $2,846 and $2,918 at March 31, 1999 and December 31, 1998,
respectively.
    
 
   
     On January 1, 1998 an affiliate of AT&TBIS entered into agreements with
InterMedia to manage the Systems' advertising business and related services for
an annual fixed fee per advertising sales subscriber as defined by the
agreements. In addition to the annual fixed fee AT&TBIS is entitled to varying
percentage shares of the incremental growth in annual cash flows from
advertising sales above specified targets. Management fees charged by the
AT&TBIS subsidiary for the three months ended March 31, 1999 amounted to $90.
Receivables from affiliates at March 31, 1999 and December 31, 1998 include
$4,119 and $3,437, respectively, of receivable from AT&TBIS for advertising
sales.
    
 
   
     As part of its normal course of business the Systems are involved in
transactions with affiliates of InterMedia which own and operate cable
television systems. Such transactions include purchases and sales at cost of
inventories used in construction of cable plant. Receivables from affiliates at
March 31, 1999 and December 31, 1998 include $514 and $2,134, respectively, of
receivables from affiliated systems. Payables to affiliates at March 31, 1999
and December 31, 1998 include $172 and $208, respectively, of payables to
affiliated systems.
    
 
   
5. COMMITMENTS AND CONTINGENCIES
    
 
   
     The Systems are committed to provide cable television services under
franchise agreements with remaining terms of up to eighteen years. Franchise
fees of up to 5% of gross revenues are payable under these agreements.
    
 
   
     Current FCC regulations require that cable television operators obtain
permission to retransmit major network and certain local television station
signals. The Systems have entered into long-term retransmission agreements with
all applicable stations in exchange for in-kind and/or other consideration.
    
 
   
     InterMedia has been named in purported and certified class actions in
various jurisdictions concerning late fee charges and practices. Certain cable
systems owned by InterMedia charge late fees to customers who do not pay their
cable bills on time. These late fee cases challenge the amount of the late fees
and the practices under which they are imposed. The plaintiffs raise claims
under state consumer protection statutes, other state
    
 
                                      F-275