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SEC Filings

CHARTER COMMUNICATIONS, INC. /MO/ filed this Form S-1/A on 11/04/1999
Entire Document
<PAGE>   106
table sets forth the fair values and contract terms of the long-term debt
maintained by us as of June 30, 1999 (dollars in thousands):

                                                   EXPECTED MATURITY DATE                                           FAIR VALUE AT
                                     --------------------------------------------------                               JUNE 30,
                                       1999       2000       2001      2002      2003     THEREAFTER     TOTAL          1999
                                     --------   --------   --------   -------   -------   ----------   ----------   -------------
<S>                                  <C>        <C>        <C>        <C>       <C>       <C>          <C>          <C>
Fixed Rate.........................        --         --         --        --        --   $3,109,310   $3,109,310    $3,010,000
 Average Interest Rate.............        --         --         --        --        --          9.0%         9.0%
Variable Rate......................        --         --         --   $25,313   $39,375   $1,960,312   $2,025,000    $2,025,000
 Average Interest Rate.............        --         --         --       6.5%      6.5%         6.8%         6.8%

     Interest rates on variable debt are estimated using the average implied
forward LIBOR rates for the year of maturity based on the yield curve in effect
at June 30, 1999.
     We expect that the terms of the debt that we assume or expect to arrange in
connection with the pending acquisitions, primarily our expected new credit
facilities, will require us to use interest rate management instruments to
partially hedge our exposure to variable interest rates. We expect to use
interest rate exchange agreements, interest rate cap agreements and interest
rate collar agreements similar to those we currently use.
     GENERAL.   Many existing computer systems and applications, and other
control devices and embedded computer chips use only two digits, rather than
four, to identify a year in the date field, failing to consider the impact of
the upcoming change in the century. Computer chips are the physical structure
upon which integrated circuits are fabricated as components of systems, such as
telephone systems, computers and memory systems. As a result, such systems,
applications, devices, and chips could create erroneous results or might fail
altogether unless corrected to properly interpret data related to the year 2000
and beyond. These errors and failures may result, not only from a date
recognition problem in the particular part of a system failing, but may also
result as systems, applications, devices and chips receive erroneous or improper
data from third-parties suffering from the year 2000 problem. In addition, two
interacting systems, applications, devices or chips, each of which has
individually been fixed so that it will properly handle the year 2000 problem,
could nonetheless result in a failure because their method of dealing with the
problem is not compatible.
     These problems are expected to increase in frequency and severity as the
year 2000 approaches. This issue impacts our owned or licensed computer systems
and equipment used in connection with internal operations, including:
     - information processing and financial reporting systems;
     - customer billing systems;
     - customer service systems;
     - telecommunication transmission and reception systems; and
     - facility systems.