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10-K405
RENAISSANCE MEDIA GROUP LLC filed this Form 10-K405 on 03/31/1999
Entire Document
 
<PAGE>
 
                          RENAISSANCE MEDIA GROUP LLC
 
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
 
                               December 31, 1998
                       (All dollar amounts in thousands)
 
 
 Advertising Costs
 
   Advertising costs are expensed upon the first exhibition of the related
advertisements. Advertising expense amounted to $491 in 1998.
 
 Cash and Cash Equivalents
 
   Cash and cash equivalents include cash and investments in short-term,
highly liquid securities, which have maturities when purchased of three months
or less.
 
 Property, Plant and Equipment
 
   Property, plant and equipment is recorded at purchased and capitalized
cost. Capitalized internal costs principally, consist of employee costs and
interest on funds borrowed during construction. Capitalized labor, materials
and associated overhead amounted to approximately $1,429 in 1998.
Replacements, renewals and improvements to installed cable plant are
capitalized. Maintenance and repairs are charged to expense as incurred.
Depreciation expense for the year ended December 31, 1998 amounted to $7,314.
Property, plant and equipment is depreciated using the straight-line method
over the following estimated service lives:
 

<TABLE>
      <S>                                                            <C>
      Buildings and leasehold improvements.......................... 5-30 years
      Cable systems, equipment and subscriber devices............... 5-30 years
      Transportation equipment......................................  3-5 years
      Furniture, fixtures and office equipment...................... 5-10 years
 
   Property, plant and equipment at December 31, 1998 consisted of:
 
      Land..........................................................    $   432
      Buildings and leasehold improvements..........................      1,347
      Cable systems, equipment and subscriber devices...............     62,740
      Transportation equipment......................................      2,181
      Furniture, fixtures and office equipment......................        904
      Construction in progress......................................      3,642
                                                                     ----------
                                                                         71,246
      Less: accumulated depreciation................................     (7,294)
                                                                     ----------
      Total.........................................................    $63,952
                                                                     ==========
</TABLE>

 
 Cable Television Franchises and Intangible Assets
 
   Cable television franchise costs include the assigned fair value, at the
date of acquisition, of the franchises from purchased cable television
systems. Intangible assets include goodwill, deferred financing and other
intangible assets. Cable television franchises and intangible assets are
amortized using the straight-line method over the following estimated useful
lives:
 

<TABLE>
      <S>                                                             <C>
      Cable television franchises....................................   15 years
      Goodwill.......................................................   25 years
      Deferred financing and other intangible assets................. 2-10 years
</TABLE>

 
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