INTERMEDIA CABLE SYSTEMS
(COMPRISED OF COMPONENTS OF INTERMEDIA PARTNERS AND
INTERMEDIA CAPITAL PARTNERS IV, L.P.)
NOTES TO CONDENSED COMBINED FINANCIAL STATEMENTS -- CONTINUED
(DOLLARS IN THOUSANDS)
operators in Tennessee are aggressively defending their past practices on
calculation and payment of the Amusement Tax.
The Systems are subject to other claims and litigation in the ordinary
course of business. In the opinion of management, the ultimate outcome of any
existing litigation or other claims will not have a material adverse effect on
the Systems' financial position or results of operations.
6. CHANNEL LAUNCH REVENUE
During 1997 and 1998, the Systems were credited with amounts representing
their share of payments received or to be received by InterMedia from certain
programmers to launch and promote their new channels. Of the total amount
credited, the Systems recognized advertising revenue of $333 during the six
months ended June 30, 1999 for advertisements provided by the Systems to promote
the new channels. No advertising revenue was recognized for the six-month period
ended June 30, 1998 related to the promotion of these new channels. The
remaining amounts credited to the Systems are being amortized over the
respective terms of the program agreements which range between five and ten
years. The Systems amortized and recorded as other service revenues of $316 and
$350 for the six months ended June 30, 1999 and 1998, respectively.
7. SUPPLEMENTAL DISCLOSURES TO CONSOLIDATED STATEMENTS OF CASH FLOWS
Total accretion on RMG's Redeemable Preferred Stock for the six months
ended June 30, 1999 and 1998 amounted to $492 and $459, respectively.