Charter 2002 Annual Report Download - page 118

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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)
In June 2002, the Financial Accounting Standards Board issued SFAS No. 146, ""Accounting for Costs
Associated with Exit or Disposal Activities.'' SFAS No. 146 addresses Ñnancial accounting and reporting for
costs associated with exit or disposal activities and nulliÑes Emerging Issues Task Force Issue No. 94-3,
""Liability Recognition for Certain Employee Termination BeneÑts and Other Costs to Exit an Activity
(including Certain Costs Incurred in a Restructuring).'' SFAS 146 requires that a liability for costs associated
with an exit or disposal activity be recognized when the liability is incurred rather than when a company
commits to such an activity and also establishes fair value as the objective for initial measurement of the
liability. SFAS No. 146 will be adopted by the Company for exit or disposal activities that are initiated after
December 31, 2002. Adoption will not have a material impact on the consolidated Ñnancial statements of the
Company.
In December 2002, the Financial Accounting Standards Board (FASB) issued SFAS No. 148,
""Accounting for Stock-Based Compensation Ì Transition and Disclosure.'' SFAS No. 148 amends SFAS
No. 123 to provide alternative methods of transition for a voluntary change to the fair value based method of
accounting for stock-based employee compensation. In addition, it amends the disclosure requirements of
SFAS No. 123 to require prominent disclosures in both annual and interim Ñnancial statements about the
method of accounting for stock-based compensation and the eÅect of the method used on reported results.
The Company adopted SFAS No. 148 beginning January 1, 2003. On January 1, 2003, the Company also
adopted SFAS No. 123, ""Accounting for Stock-Based Compensation'' on the prospective method under
which the Company will recognize compensation expense of a stock-based award to an employee over the
vesting period based on the fair value of the award on the grant date.
27. Parent Company Only Financial Statements
As the result of limitations on, and prohibitions of, distributions, substantially all of the net assets of the
consolidated subsidiaries are restricted for distribution to Charter, the parent company. The following
condensed parent-only Ñnancial statements of Charter account for the investment in Charter Holdco under
the equity method of accounting. The Ñnancial statements should be read in conjunction with the consolidated
Ñnancial statements of the Company and notes thereto. The information in this footnote has been revised from
the information previously reported to reÖect the Company's restatement of its consolidated Ñnancial
statements of the years ended December 31, 2001 and 2000. See Note 3 for a description of the restatement.
F-50