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)
 
 
 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>
                                                                December 31,
                                                               ----------------
                                                                1996     1997
                                                               -------  -------
      <S>                                                      <C>      <C>
      Land and buildings.....................................  $ 2,003  $ 2,265
      Cable television equipment.............................   32,324   39,589
      Furniture, fixtures and other equipment................    1,455    2,341
      Construction in progress...............................    5,657    1,028
                                                               -------  -------
                                                                41,439   45,223
      Less accumulated depreciation..........................   (4,473)  (8,279)
                                                               -------  -------
        Total................................................  $36,966  $36,944
                                                               =======  =======
</TABLE>

 
 Intangible Assets
 
   During 1996 and 1997, 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. Prior to the CVI Merger, goodwill and
cable television franchises were amortized over 15 years using the straight-
line method. For the years ended 1995, 1996, and 1997, amortization of
goodwill amounted to $8,199,000, $1,325,000, and $1,325,000, respectively, and
amortization of cable television franchises amounted to $1,284,000,
$11,048,000, and $11,048,000, respectively. Accumulated amortization of
intangible assets at December 31, 1996 and 1997 amounted to $12,373,000 and
$24,746,000, respectively.
 
 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.
 
 
                                      75