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SEC Filings

424B3
CHARTER COMMUNICATIONS HOLDINGS CAPITAL CORP filed this Form 424B3 on 09/02/1999
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<PAGE>   408
                     RIFKIN ACQUISITION PARTNERS, L.L.L.P.
 
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
 
     The following represents a reconciliation of pre-tax losses as reported in
accordance with generally accepted accounting principles and the losses
attributable to the partners and included in their individual income tax
returns:
 

<TABLE>
<CAPTION>
                                      YEAR ENDED      YEAR ENDED      YEAR ENDED
                                       12/31/98        12/31/97        12/31/96
                                     ------------    ------------    ------------
<S>                                  <C>             <C>             <C>
Pre-tax income (loss) as
  reported.........................  $ 20,241,286    $(31,378,648)   $(25,277,061)
(Increase) decrease due to:
  Separately taxed book results of
     corporate subsidiaries........     9,397,000      15,512,000       9,716,000
  Effect of different depreciation
     and amortization methods for
     tax and book purposes.........    (1,360,000)     (2,973,000)     (3,833,000)
Additional tax gain from the sale
  of Michigan(Note 4)..............     2,068,000              --              --
Book gain from trade sale of
  Tennessee assets(Note 4).........   (36,873,000)             --              --
Additional tax loss from
  dissolution of FNI stock.........    (7,235,000)             --              --
Other..............................        81,714         (45,052)        (22,539)
                                     ------------    ------------    ------------
Tax loss attributed to the
  partners.........................  $(13,680,000)   $(18,884,700)   $(19,416,600)
                                     ============    ============    ============
</TABLE>

 
     The Company accounts for income taxes under the liability method. Under
this method, deferred tax assets and liabilities are determined based on
differences between financial reporting and tax bases of assets and liabilities
and are measured using the enacted tax rates and laws that will be in effect
when the differences are expected to reverse.
 
     As a result of a change in control in 1995, the book value of the Company's
net assets was increased to reflect their fair market value. In connection with
this revaluation, a deferred income tax liability in the amount of $22,801,000
was established to provide for future taxes payable on the revised valuation of
the net assets. A deferred tax benefit of $4,196,000, $5,335,000 and $3,654,000
was recognized for the years ended December 31, 1998, 1997 and 1996,
respectively, reducing the liability to $7,942,000.
 
     Deferred tax assets (liabilities) were comprised of the following at
December 31, 1998 and 1997:
 

<TABLE>
<CAPTION>
                                      12/31/98        12/31/97
                                    ------------    ------------
<S>                                 <C>             <C>
Deferred tax assets resulting from
  loss carryforwards..............  $ 11,458,000    $  9,499,000
Deferred tax liabilities resulting
  from depreciation and
  amortization....................   (19,400,000)    (21,637,000)
                                    ------------    ------------
Net deferred tax liability........  $ (7,942,000)   $(12,138,000)
                                    ============    ============
</TABLE>

 
                                      F-204