Additionally, the carrying value of outstanding debt was recorded at
estimated fair value, resulting in a debt premium that is to be amortized
as an offset to interest expense over the term of the debt. This resulted
in a reduction in interest expense for the year ended December 31, 1998.
(e) As a result of the acquisition of Marcus Cable by Mr. Allen, Marcus Cable
recorded transaction costs of approximately $135.4 million. These costs were
primarily comprised of approximately $90.2 million in compensation paid to
employees of Marcus Cable in settlement of specially designated Class B
units and approximately $29.2 million of transaction fees paid to certain
equity partners for investment banking services. In addition, Marcus Cable
recorded costs related to employee and officer stay-bonus and severance
arrangements of approximately $16.0 million.