CHARTER COMMUNICATIONS, INC.
NOTES TO BALANCE SHEET
JULY 22, 1999
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
ORGANIZATION AND BASIS OF PRESENTATION
On July 22, 1999, Charter Investment, Inc. (Charter Investment), a company
controlled by Paul G. Allen, formed a wholly owned subsidiary, Charter
Communications, Inc. (CCI or the "Company"), a Delaware corporation with an
initial investment of $100. The Company has no operations or cash flows other
than the initial investment made by Charter Investment. Accordingly, statements
of operations and cash flows are not presented.
2. SUBSEQUENT EVENT:
In July 1999, the Company filed a registration statement on Form S-1 with
the SEC, as amended on September 3, 1999, and further amended on September 28,
1999, October 18, 1999, November 1, 1999 and November 4, 1999 for the issuance
of Class A common stock to the public (IPO). CCI will be a holding company whose
sole asset will be a controlling equity interest in Charter Communications
Holding Company, LLC (Charter Communications Holding Company), a direct and
indirect owner of cable systems.
Upon completion of the IPO, CCI intends to purchase membership units of
Charter Communications Holding Company representing a 100% voting interest and
an approximate 34% economic interest. As sole manager of Charter Communications
Holding Company, CCI will control the business affairs of Charter Communications
Holding Company. CCI's consolidated financial statements will include the
accounts of Charter Communications Holding Company upon completion of the IPO.
The assets and liabilities of Charter Communications Holding Company will be
reflected in the consolidated financial statements of CCI at their historical
carrying values and a minority interest will be recorded on the consolidated
balance sheet representing that portion of the net equity of Charter
Communications Holding Company not owned by CCI.