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SEC Filings

S-1/A
CHARTER COMMUNICATIONS, INC. /MO/ filed this Form S-1/A on 11/04/1999
Entire Document
 
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     These acquisitions were accounted for using the purchase method of
accounting. The purchase price in millions and closing dates for significant
acquisitions are as follows:
 

<TABLE>
<CAPTION>
                                                    RIFKIN            FANCH          BRESNAN
                                                 ACQUISITIONS     ACQUISITIONS     ACQUISITIONS
                                                 -------------    -------------    ------------
<S>                                              <C>              <C>              <C>
Purchase price...............................    $165.0           $42.2            $40.0
Closing date.................................    February 1999    February 1999    January 1999
Purchase price...............................    $53.8            $248.0           $27.0
Closing date.................................    July 1999        February 1999    March 1999
Purchase price...............................                     $70.5
Closing date.................................                     March 1999
Purchase price...............................                     $50.0
Closing date.................................                     June 1999
</TABLE>

 
(d) Represents the elimination of the operating results related to the cable
    systems transferred to InterMedia as part of a swap of cable systems in
    October 1999. The fair value of our systems transferred to InterMedia was
    $331.8 million. No material gain or loss is anticipated on the disposition
    as these systems were recently acquired and recorded at fair value at that
    time.
 
(e) Represents the elimination of the operating results related to the Indiana
    cable system that we are required to transfer to InterMedia as part of a
    swap and to the sale of several smaller cable systems. A definitive written
    agreement exists for the disposition of the Indiana system. The fair value
    of the Indiana system is $88.2 million. No material gain or loss is
    anticipated on the disposition as this system was recently acquired and
    recorded at fair value at that time.
 
(f)  Reflects a reclassification of expenses representing corporate expenses
     that would have occurred at Charter Investment, Inc.
 
(g) Represents additional amortization of franchises as a result of our recent
    and pending acquisitions. A large portion of the purchase price was
    allocated to franchises ($12.4 billion) that are amortized over 15 years.
    The adjustment to depreciation and amortization expense consists of the
    following (dollars in millions):
 

<TABLE>
<CAPTION>
                                                                    WEIGHTED AVERAGE    DEPRECIATION/
                                                      FAIR VALUE      USEFUL LIFE       AMORTIZATION
                                                      ----------    ----------------    -------------
<S>                                                   <C>           <C>                 <C>
Franchises..........................................  $12,356.5            15              $400.2
Cable distribution systems..........................    1,729.1             8               108.3
Land, buildings and improvements....................       53.9            10                 2.6
Vehicles and equipment..............................       89.1             3                12.7
                                                                                           ------
     Total depreciation and amortization............................................        523.8
     Less-historical depreciation and amortization..................................       (327.0)
                                                                                           ------
          Adjustment................................................................       $196.8
                                                                                           ======
</TABLE>

 
(h) Reflects the elimination of an estimated $44.6 million of change in control
    payments under the terms of Falcon's equity-based compensation plans that
    are triggered by the acquisition of Falcon. These plans will be terminated
    by us and the employees will participate in our stock option plan. As such,
    these costs will not recur.
 
(i)  Reflects additional interest expense on borrowings, which will be used to
     finance the acquisitions as follows (dollars in millions):
 
   

<TABLE>
<S>                                                           <C>
$1.6 billion credit facilities (at composite current rate of
  7.4%).....................................................  $  59.3
$114.4 million 10.0% senior discount notes ($82.6 million
  carrying value) -- Renaissance............................      4.1
$150.0 million 9.375% senior subordinated notes -- Avalon...      7.0
$196.0 million 11.875% senior discount notes ($128.6 million
  carrying value) -- Avalon.................................      6.6
$1.0 billion credit facilities for Falcon acquisition (at
  composite current rate of 7.4%)...........................     37.4
$0.9 billion senior credit facilities for Fanch acquisition
  (at composite rate of 7.4%)...............................     32.4
$0.2 billion senior credit facilities for Avalon acquisition
  (at composite rate of 7.4%)...............................      6.2
$1.7 billion anticipated financing (at 10.0%)...............     85.7
$705.7 million 10.04% bridge loan facility -- Falcon........     35.4
</TABLE>

    
 
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