Print Page  Close Window

SEC Filings

424B3
CHARTER COMMUNICATIONS HOLDINGS CAPITAL CORP filed this Form 424B3 on 09/02/1999
Entire Document
 
<PAGE>   350
           PICAYUNE MS, LAFOURCHE LA, ST. TAMMANY LA, ST. LANDRY LA,
           POINTE COUPEE LA, AND JACKSON TN CABLE TELEVISION SYSTEMS
                          (INCLUDED IN TWI CABLE INC.)
 
             NOTES TO COMBINED FINANCIAL STATEMENTS -- (CONTINUED)
 
     The differences between the income tax provision (benefit) expected at the
U.S. federal statutory income tax rate and the total income tax provision
(benefit) are due to nondeductible goodwill amortization and state taxes.
 
     Significant components of the Combined Systems' deferred tax assets and
liabilities, as calculated on a separate company basis, are as follows:
 

<TABLE>
<CAPTION>
                                       YEAR ENDED DECEMBER 31,
                                       ------------------------
                                         1996           1997
                                         ----           ----
                                            (IN THOUSANDS)
<S>                                    <C>            <C>
DEFERRED TAX LIABILITIES:
  Amortization.......................   $61,266        $58,507
  Depreciation.......................     3,576          4,060
                                        -------        -------
          Total gross deferred tax
            liabilities..............    64,842         62,567
                                        -------        -------
DEFERRED TAX ASSETS:
  Tax loss carryforwards.............     6,474          1,920
  Allowance for doubtful accounts....        28             46
                                        -------        -------
          Total deferred tax
            assets...................     6,502          1,966
                                        -------        -------
  Net deferred tax liability.........   $58,340        $60,601
                                        =======        =======
</TABLE>

 
     On a separate company basis, the Combined Systems have tax loss
carryforwards of approximately $4.8 million at December 31, 1997. However, if
the Combined Systems are acquired in an asset purchase, the tax loss
carryforwards, and net deferred tax liabilities relating to temporary
differences will not carry over to Renaissance (see Note 8).
 
6. COMMITMENTS AND CONTINGENCIES
 
     The Combined Systems had rental expense of approximately $642,000,
$824,000, and $843,000 for the years ended December 31, 1995, 1996 and 1997,
respectively, under various lease and rental agreements for offices, utility
poles, warehouses and computer equipment. Future minimum annual rental payments
under noncancellable leases will approximate $1,000,000 annually over the next
five years.
 
     In exchange for certain flexibility in establishing cable rate pricing
structures for regulated services that went into effect on January 1, 1996, TWC
has agreed with the Federal Communications Commission ("FCC") to invest in
certain upgrades to its cable infrastructure (consisting primarily of materials
and labor in connection with the plant upgrades up to 750 megahertz) over the
next three years (approximately $22 million). This agreement with the FCC, which
extends to the Combined Systems, will be assumed by Renaissance as it relates to
the Combined Systems in accordance with the Asset Purchase Agreement.
 
                                      F-146