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SEC Filings

10-K405
RENAISSANCE MEDIA GROUP LLC filed this Form 10-K405 on 03/31/1999
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                          RENAISSANCE MEDIA GROUP LLC
 
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
 
                               December 31, 1998
                       (All dollar amounts in thousands)
 
 
   Intangible assets at December 31, 1998 consisted of:
 

<TABLE>
      <S>                                                               <C>
      Goodwill......................................................... $ 8,608
      Deferred financing costs.........................................   8,323
      Other intangible assets..........................................     628
                                                                        -------
                                                                         17,559
      Less: accumulated amortization...................................  (1,059)
                                                                        -------
      Total............................................................ $16,500
                                                                        =======
</TABLE>

 
   The Company periodically reviews the carrying value of its long-lived
assets, including property, plant and equipment, cable television franchises
and intangible assets, whenever events or changes in circumstances indicate
that the carrying value may not be recoverable. To the extent the estimated
future cash inflows attributable to the asset, less estimated future cash
outflows, is less than the carrying amount, an impairment loss is recognized
to the extent that the carrying value of such asset is greater than its fair
value.
 
 Estimates Used in Financial Statement Presentation
 
   The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amount of assets and liabilities, the
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amount of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
 
3. Acquisitions
 
 TWI Cable
 
   On April 9, 1998, the Company acquired six cable television systems from
TWI Cable. The systems are clustered in southern Louisiana, western
Mississippi and western Tennessee. This Acquisition represented the first
acquisition by the Company. The purchase price for the systems was $309,500
which was paid as follows: TWI Cable received $300,000 in cash, inclusive of
an escrow deposit of $15,000, and a $9,500 (9,500 units) equity interest in
Renaissance Media Holdings LLC, the parent company of Group. In addition to
the purchase price, the Company incurred approximately $1,385 in transaction
costs, exclusive of financing costs.
 
   The Acquisition was accounted for using the purchase method and,
accordingly, results of operations are reported from the date of the
Acquisition (April 9, 1998). The excess of the purchase price over the
estimated fair value of the tangible assets acquired has been allocated to
cable television franchises and goodwill in the amount of $235,387 and $8,608,
respectively.
 
 Deffner Cable
 
   On August 31, 1998, the Company acquired the assets of Deffner Cable, a
cable television company located in Gadsden, Tennessee. The purchase price was
$100 and was accounted for using the purchase method. The allocation of the
purchase price is subject to change, although management does not believe that
any material adjustment to such allocation is expected.
 
 Bayou Vision, Inc. and Gulf South Cable, Inc.
 
   On February 3, 1999, Media acquired the cable television assets of Bayou
Vision, Inc. and Gulf South Cable, Inc. serving approximately 1,950
subscribers in the Villages of Estherwood, Morse and Mermentau and
 
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