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SEC Filings

10-K405
RENAISSANCE MEDIA GROUP LLC filed this Form 10-K405 on 03/31/1999
Entire Document
 
<PAGE>
 
           PICAYUNE MS, LAFOURCHE LA, ST. TAMMANY LA, ST. LANDRY LA,
           POINTE COUPEE LA, AND JACKSON TN CABLE TELEVISON SYSTEMS
                         (Included in TWI Cable Inc.)
 
              NOTES TO COMBINED FINANCIAL STATEMENTS--(Continued)
 
 
 Property, Plant and Equipment
 
   Property, plant and equipment are stated at cost. Additions to property,
plant and equipment generally include material, labor, overhead and interest.
Depreciation is provided on the straight-line method over estimated useful
lives as follows:
 

<TABLE>
      <S>                                                             <C>
      Buildings and improvements..................................... 5-20 years
      Cable television equipment..................................... 5-15 years
      Furniture, fixtures and other equipment........................ 3-10 years
</TABLE>

 
     Property, plant and equipment consist of:

<TABLE>
<CAPTION>
                                                                  April 8, 1998
                                                                  --------------
                                                                  (in thousands)
      <S>                                                         <C>
      Land and buildings........................................     $  2,255
      Cable television equipment................................       40,276
      Furniture, fixtures and other equipment...................        2,308
      Construction in progress..................................        1,183
                                                                     --------
                                                                       46,022
      Less accumulated depreciation.............................      (10,030)
                                                                     --------
        Total...................................................     $ 35,992
                                                                     ========
</TABLE>

 
 Intangible Assets
 
   The Combined Systems amortized goodwill over periods up to 40 years and
cable television franchises over periods up to 20 years, both using the
straight-line method. For the period from January 1, 1998 through April 8,
1998 amortization of goodwill amounted to $360,000 and amortization of cable
television franchises amounted to $3,008,000. Accumulated amortization of
intangible assets amounted to $28,114,000 at April 8, 1998.
 
 Impairment
 
   Management separately reviews the carrying value of acquired long-lived
assets for each acquired entity on a quarterly basis to determine whether an
impairment may exist. Management considers relevant cash flow and
profitability information, including estimated future operating results,
trends and other available information, in assessing whether the carrying
value of long-lived assets can be recovered. Upon a determination that the
carrying value of long-lived assets will not be recovered from the
undiscounted future cash flows of the acquired business, the carrying value of
such long-lived assets would be considered impaired and would be reduced by a
charge to operations in the amount of the impairment. An impairment charge is
measured as a deficiency in estimated discounted future cash flows of the
acquired business to recover the carrying value related to the long-lived
assets.
 
 Income Taxes
 
   Income taxes have been provided using the liability method prescribed by
FASB Statement No. 109, "Accounting for Income Taxes." Under the liability
method, deferred income taxes reflect tax carryforwards and the net tax
effects of temporary differences between the carrying amount of assets and
liabilities for financial statements and income tax purposes, as determined
under enacted tax laws and rates.
 
 
2. Employee Benefit Plans
 
   Following the CVI Merger, the Combined Systems began participation in the
Time Warner Cable Pension Plan (the "Pension Plan"), a non-contributory
defined benefit pension plan, and the Time Warner Cable
 
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