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SEC Filings

S-1/A
CHARTER COMMUNICATIONS, INC. /MO/ filed this Form S-1/A on 09/28/1999
Entire Document
 
<PAGE>   299
                  MARCUS CABLE HOLDINGS, LLC AND SUBSIDIARIES
 
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
 
     In 1996, the Company acquired cable television systems in three separate
transactions for an aggregate purchase price of $10,272. The excess of the cost
of properties acquired over the amounts assigned to net tangible assets as of
the date of acquisition was $4,861 and is included in franchises.
 
     Additionally, in 1996, the Company completed the sale of cable television
systems in Washington, D.C. for a sale price of $20,638. The sale resulted in a
gain of $6,442.
 
     The above acquisitions were accounted for using the purchase method of
accounting and, accordingly, results of operations of the acquired assets have
been included in the accompanying consolidated financial statements from the
dates of acquisition. The purchase prices were allocated to tangible and
intangible assets based on estimated fair market values at the dates of
acquisition. The cable system trade discussed above was accounted for as a
nonmonetary exchange and, accordingly, the additional cash contribution was
allocated to tangible and intangible assets based on recorded amounts of the
nonmonetary assets relinquished.
 
     Unaudited pro forma operating results as though 1998 and 1997 acquisitions
and divestitures discussed above had occurred on January 1, 1997, with
adjustments to give effect to amortization of franchises, interest expense and
certain other adjustments are as follows for the years ended December 31, 1998
and 1997:
 

<TABLE>
<CAPTION>
                                                       1998         1997
                                                       ----         ----
                                                          (UNAUDITED)
<S>                                                  <C>          <C>
Revenues...........................................  $ 457,929    $ 421,665
Operating income (loss)............................   (148,472)       9,064
Net loss...........................................   (150,841)    (142,143)
</TABLE>

 
(5) PROPERTY, PLANT AND EQUIPMENT
 
     Property, plant and equipment consists of the following at December 31:
 

<TABLE>
<CAPTION>
                                                       1998         1997
                                                       ----         ----
<S>                                                 <C>           <C>
Cable distribution systems........................     996,804    $ 878,721
Vehicles and other................................      40,243       37,943
Land and buildings................................      18,861       17,271
                                                    ----------    ---------
                                                     1,055,908      933,935
Accumulated depreciation..........................    (314,887)    (227,309)
                                                    ----------    ---------
                                                    $  741,021    $ 706,626
                                                    ==========    =========
</TABLE>

 
     Depreciation expense for the years ended December 31, 1998, 1997 and 1996
was $129,663, $96,220, and $72,281, respectively.
 
(6) OTHER ASSETS
 
     Other assets consist of the following at December 31, 1998 and 1997:
 

<TABLE>
<CAPTION>
                                                          1998       1997
                                                         -------    -------
<S>                                                      <C>        <C>
Debt issuance costs....................................  $41,079    $45,225
Going concern value....................................   37,274     37,274
Other..................................................      677      1,090
                                                         -------    -------
                                                          79,030     83,589
Accumulated amortization...............................  (26,102)   (19,289)
                                                         -------    -------
                                                         $52,928    $64,300
                                                         =======    =======
</TABLE>

 
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