Print Page  Close Window

SEC Filings

CHARTER COMMUNICATIONS, INC. /MO/ filed this Form S-1 on 07/28/1999
Entire Document
<PAGE>   547
                                  TACONIC CATV
     The tax effects of temporary differences that give rise to significant
portions of the deferred tax assets and deferred tax liabilities are as follows:

                                                     DECEMBER 31,
                                                 ---------------------    MARCH 31,
                                                   1997         1998        1999
                                                 ---------    --------    ---------
<S>                                              <C>          <C>         <C>
Deferred tax assets:
Accounts receivable due to allowance for
  doubtful accounts............................  $   8,756      10,082      11,280
Less valuation allowance.......................         --          --          --
                                                 ---------    --------    --------
Net deferred tax assets........................      8,756      10,082      11,280
                                                 ---------    --------    --------
Deferred tax liabilities:
Plant and equipment, due to differences in
  depreciation.................................   (386,879)   (370,663)   (359,139)
                                                 ---------    --------    --------
Net deferred tax liability.....................  $(378,123)   (360,581)   (347,859)
                                                 =========    ========    ========

     In assessing the realizability of deferred tax assets, management considers
whether it is more likely than not that some portion or all of the deferred tax
assets will not be realized. The ultimate realization of deferred tax assets is
dependent upon the generation of future taxable income during the periods in
which those temporary differences become deductible. Management considers the
scheduled reversal of deferred tax liabilities, projected future taxable income,
and tax planning strategies in making this assessment. Based upon the level of
historical taxable income and projections for future taxable income over the
periods which the deferred tax assets are deductible, management believes it is
more likely than not the benefits of these deductible differences will be
     Prior to 1996, all employees of Taconic Technology Corp. were included in
Taconic Telephone Corp.'s defined benefit and defined contribution retirement
plans. Effective January 1, 1996, the defined benefit plan was frozen and during
1997 was amended to cease benefit accruals for all participants. The amendment
increased benefits to the level of fair value of plan assets at December 31,
1997, $5,452,047.
     Effective January 1, 1996, all full time employees of Taconic Technology
Corp. with at least one year of service became eligible to receive an employer
contribution of 5% of gross wages under Taconic Telephone Corp.'s defined
contribution plan. In addition, the plan calls for an employer match of employee
contributions not to exceed 3% of gross wages. Taconic CATV's expense relative
to this plan for the years ended December 31, 1997 and 1998 was $5,686 and
$5,227, respectively, and $1,307 and $2,519 for the three months ended March 31,
1998 and 1999, respectively.
     Receivable from/payable to related entities represents amounts due from/to
other components of Taconic Technology Corp. and amounts due from/to Taconic
Telephone Corp. (parent of Taconic Technology Corp.) for working capital funds
and services provided.