Charter 2002 Annual Report Download - page 105

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CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2002, 2001 and 2000
(dollars in millions, except where indicated)
to credit loss. The Company has policies regarding the Ñnancial stability and credit standing of major
counterparties. Nonperformance by the counterparties is not anticipated nor would it have a material adverse
eÅect on the Company's consolidated Ñnancial position or results of operations.
The estimated fair value of the Company's notes, credit facilities and interest rate agreements at
December 31, 2002, 2001 and 2000 are based on quoted market prices or a discounted cash Öow analysis using
the Company's incremental borrowing rate for similar types of borrowing arrangements and dealer quotations.
A summary of the carrying value and fair value of the Company's debt and related interest rate
agreements at December 31, 2002, 2001 and 2000 is as follows (in millions):
2002 2001 2000
Carrying Fair Carrying Fair Carrying Fair
Value Value Value Value Value Value
Debt
Charter convertible notes ÏÏÏÏÏÏÏÏÏÏ $1,383 $ 295 $1,383 $1,327 $ 750 $ 877
Charter Holdings debt ÏÏÏÏÏÏÏÏÏÏÏÏ 9,222 3,867 7,999 7,964 4,780 4,426
Credit facilities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 7,789 6,367 6,710 6,710 7,302 7,302
OtherÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 277 212 251 237 229 195
Interest Rate Agreements
Assets (Liabilities)
Swaps ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (258) (258) (80) (80) (1) 5
CollarsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (34) (34) (34) (34) Ì 11
The weighted average interest pay rate for the Company's interest rate swap agreements was 7.40%,
7.22% and 7.61 % at December 31, 2002, 2001 and 2000, respectively. The Company's interest rate collar
agreements are structured so that if LIBOR falls below 5.3%, the Company pays 6.7%. If the LIBOR rate is
between 5.3% and 8.0%, the Company pays LIBOR. The LIBOR rate is capped at 8.0% if LIBOR is between
8.0% and 9.9%. If the LIBOR rate rises above 9.9%, the cap is removed.
17. Revenues
Revenues consist of the following for the years presented (in millions):
Year Ended December 31,
2002 2001 2000
Analog video ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $3,083 $2,768 $2,503
Digital video ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 457 307 89
High-speed data ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 340 155 55
Advertising sales ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 302 197 142
Other ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 384 380 352
$4,566 $3,807 $3,141
F-37