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RENAISSANCE MEDIA GROUP LLC filed this Form 10-K405 on 03/31/1999
Entire Document
                          RENAISSANCE MEDIA GROUP LLC
                               December 31, 1998
                       (All dollar amounts in thousands)
1.  Organization and Basis of Presentation
   Renaissance Media Group LLC ("Group") was formed on March 13, 1998 by
Renaissance Media Holdings LLC ("Holdings"). Holdings is owned by Morgan
Stanley Capital Partners III, L.P. ("MSCP III"), Morgan Stanley Capital
Investors, L.P. ("MSCI"), MSCP III 892 Investors, L.P. ("MSCP Investors" and,
collectively, with its affiliates, MSCP III and MSCI and their respective
affiliates, the "Morgan Stanley Entities"), Time Warner and the Management
Investors. On March 20, 1998, Holdings contributed to Group its membership
interests in two wholly-owned subsidiaries; Renaissance Media (Louisiana) LLC
("Louisiana") and Renaissance Media (Tennessee) LLC ("Tennessee"), which were
formed on January 7, 1998. Louisiana and Tennessee acquired a 76% interest and
24% interest, respectively, in Renaissance Media LLC ("Media") from Morgan
Stanley Capital Partners III, Inc. ("MSCP"), on February 13, 1998 through an
acquisition of entities under common control accounted for as if it were a
pooling of interests. As a result, Media became a subsidiary of Group and
Holdings. Group and its aforementioned subsidiaries are collectively referred
to as the "Company". On April 9, 1998, the Company acquired (the
"Acquisition") six cable television systems (the "Systems") from TWI Cable,
Inc. ("TWI Cable"), a subsidiary of Time Warner Inc. ("Time Warner"). See Note
3. Prior to this Acquisition, the Company had no operations other than start-
up related activities.
2. Summary of Significant Accounting Policies
 New Accounting Standards
   During fiscal 1998, the Financial Accounting Standards Board ("FASB")
issued Statement No. 133, "Accounting for Derivative Instruments and Hedging
Activities" ("FAS 133").
   FAS 133 provides a comprehensive and consistent standard for the
recognition and measurement of derivatives and hedging activities. The Company
will adopt FAS 133 as of January 1, 2000. The impact of the adoption on the
Company's consolidated financial statements is not expected to be material.
Principles of Consolidation
   The consolidated financial statements of the Company include the accounts
of the Company and its wholly owned subsidiaries. Significant intercompany
accounts and transactions have been eliminated.
Concentration of Credit Risk
   A significant portion of the customer base is concentrated within the local
geographical area of each of the individual cable television systems. The
Company generally extends credit to customers and the ultimate collection of
accounts receivable could be affected by the local economy. Management
performs continuous credit evaluations of its customers and may require cash
in advance or other special arrangements from certain customers. Management
does not believe that there is any significant credit risk which could have a
material effect on the Company's financial condition.
 Revenue and Costs
   Subscriber fees are recorded as revenue in the period the related services
are provided and advertising revenues are recognized in the period the related
advertisements are exhibited. Rights to exhibit programming are purchased from
various cable networks. The costs of such rights are generally expensed as the
related services are made available to subscribers.