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SEC Filings

424B3
CHARTER COMMUNICATIONS HOLDINGS CAPITAL CORP filed this Form 424B3 on 09/01/1999
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                                   CCA GROUP
 
             NOTES TO COMBINED FINANCIAL STATEMENTS -- (CONTINUED)
 
and liabilities are measured using the enacted tax rates in effect for the year
in which those temporary differences are expected to be recovered or settled.
Deferred income tax expense or benefit is the result of changes in the liability
or asset recorded for deferred taxes. A valuation allowance must be established
for any portion of a deferred tax asset for which it is more likely than not
that a tax benefit will not be realized.
 
     For the period from January 1, 1998, through December 23, 1998, and the
years ended December 31, 1997 and 1996, no current provision (benefit) for
income taxes was recorded. The effective income tax rate is less than the
federal rate of 35% primarily due to providing a valuation allowance on deferred
income tax assets.
 
     Deferred taxes are comprised of the following at December 31, 1997:
 

<TABLE>
<S>                                                       <C>
Deferred income tax assets:
  Accounts receivable...................................  $     252
  Other assets..........................................      7,607
  Accrued expenses......................................      4,740
  Deferred revenue......................................        624
  Deferred management fees..............................      1,654
  Tax loss carryforwards................................     80,681
  Tax credit carryforward...............................      1,360
  Valuation allowance...................................    (40,795)
                                                          ---------
          Total deferred income tax assets..............     56,123
                                                          ---------
Deferred income tax liabilities:
  Property, plant and equipment.........................    (38,555)
  Franchise costs.......................................   (117,524)
  Other.................................................    (11,407)
                                                          ---------
          Total deferred income tax liabilities.........   (167,486)
                                                          ---------
          Net deferred income tax liability.............  $(111,363)
                                                          =========
</TABLE>

 
     At December 31, 1997, the Company had net operating loss (NOL)
carryforwards for regular income tax purposes aggregating $204,400, which expire
in various years from 1999 through 2012. Utilization of the NOLs carryforwards
is subject to certain limitations.
 
15.  EMPLOYEE BENEFIT PLANS:
 
     The Company's employees may participate in the Charter Communications, Inc.
401(k) Plan (the "401(k) Plan"). Employees that qualify for participation can
contribute up to 15% of their salary, on a before tax basis, subject to a
maximum contribution limit as determined by the Internal Revenue Service. The
Company contributes an amount equal to 50% of the first 5% of contributions by
each employee. For the period from January 1, 1998, through December 23, 1998,
the Company contributed $585 to the 401(k) plan. During 1997 and 1996, the
Company contributed approximately $499 and $435 to the 401(k) Plan,
respectively.
 
     Certain employees of the Company are participants in the 1996 Charter
Communications/Kelso Group Appreciation Rights Plan (the "Plan"). The Plan
covers certain key employees and consultants within the group of companies and
partnerships
 
                                      F-76