Print Page  Close Window

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 TELEVISION SYSTEMS
                         (Included in TWI Cable Inc.)
 
              NOTES TO COMBINED FINANCIAL STATEMENTS--(Continued)
 
and Series B notes payable to CVI. The remaining five systems comprising the
Combined Systems were included in Cablevision Industries of the Southeast,
Inc. and Combined Entities ("CIOS"). These systems were charged interest
expense in connection with CIOS's (a) bank revolving credit agreement; and (b)
junior and senior subordinated debt to CVI.
 
5. Income Taxes
 
   Effective January 4, 1996, the Combined Systems are included in the
consolidated federal income tax return of Time Warner. Prior to January 4,
1996, the Combined Systems were included in the consolidated federal income
tax return of CVI. The provision for income taxes has been calculated on a
separate company basis. The components of the provision for income taxes are
as follows:
 

<TABLE>
<CAPTION>
                                                                     For the
                                                                   period from
                                                                 January 1, 1998
                                                                     through
                                                                  April 8, 1998
                                                                 ---------------
                                                                 (in thousands)
      <S>                                                        <C>
      Federal:
        Current................................................      $   --
        Deferred...............................................         962
      State:
        Current................................................          --
        Deferred...............................................         229
                                                                     ------
          Net provision for income taxes.......................      $1,191
                                                                     ======
</TABLE>

 
   The Combined Systems did not, and will not, have a tax sharing agreement
with either Time Warner, TWI Cable or CVI. Therefore, the Combined Systems
have not and will not be compensated for the utilization of the Combined
Systems' tax losses, by Time Warner, TWI Cable or CVI. In addition, the
Combined Systems have not and will not be required to make payments to either
Time Warner or TWI Cable for the current tax provision of the Combined
Systems.
 
   The differences between the income tax provision expected at the U.S.
federal statutory income tax rate and the total income tax provision are due
to nondeductible goodwill amortization and state taxes.
 
   Significant components of the Combined Systems' deferred tax assets and
liabilities, as calculated on a separate company basis, are as follows:
 

<TABLE>
<CAPTION>
                                                                  April 8, 1998
                                                                  --------------
                                                                  (in thousands)
      <S>                                                         <C>
      Deferred tax liabilities:
        Amortization............................................     $57,817
        Depreciation............................................       4,181
                                                                     -------
          Total gross deferred tax liabilities..................      61,998
                                                                     -------
      Deferred tax assets:
        Tax loss carryforwards..................................         160
        Allowance for doubtful accounts.........................          46
                                                                     -------
          Total deferred tax assets.............................         206
                                                                     -------
          Net deferred tax liability............................     $61,792
                                                                     =======
</TABLE>

 
 
                                      66