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SEC Filings

10-K405
RENAISSANCE MEDIA GROUP LLC filed this Form 10-K405 on 03/31/1999
Entire Document
 
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           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)
 
   On a separate company basis, the Combined Systems have tax loss
carryforwards of approximately $400,000 at April 8, 1998. However, if the
Combined Systems are acquired in an asset purchase, the tax loss
carryforwards, and net deferred tax liabilities relating to temporary
differences will not carry over to Renaissance (see Note 8).
 
6. Commitments and Contingencies
 
   The Combined Systems had rental expense of approximately $244,000 for the
period from January 1, 1998 through April 8, 1998 under various lease and
rental agreements for offices, utility poles, warehouses and computer
equipment. Future minimum annual rental payments under noncancellable leases
will approximate $1,000,000 annually over the next five years.
 
   In exchange for certain flexibility in establishing cable rate pricing
structures for regulated services that went into effect on January 1, 1996,
TWC has agreed with the Federal Communications Commission ("FCC") to invest in
certain upgrades to its cable infrastructure (consisting primarily of
materials and labor in connection with the plant upgrades up to 750 MHz) over
the next three years (approximately $25 million at December 31, 1997). This
agreement with the FCC, which extends to the Combined Systems, will be assumed
by Renaissance as it relates to the Combined Systems in accordance with the
Asset Purchase Agreement.
 
7. Other Liabilities
 
   Other liabilities consist of:
 

<TABLE>
<CAPTION>
                                                                  April 8, 1998
                                                                  --------------
                                                                  (in thousands)
      <S>                                                         <C>
      Compensation..............................................       $279
      Data Processing Costs.....................................        161
      Sales and other taxes.....................................        146
      Copyright Fees............................................         35
      Pole Rent.................................................         93
      Other.....................................................         33
                                                                       ----
          Total.................................................       $747
                                                                       ====
</TABLE>

 
8. Subsequent Event
 
   The sale of the Combined Systems, in connection with the Asset Purchase
Agreement with Renaissance, closed on April 9, 1998 at the purchase price of
$309,500,000.
 
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