Charter 2002 Annual Report Download - page 39

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Historical Operating, Financing and Investing Activities
We held $321 million in cash and cash equivalents as of December 31, 2002 compared to $2 million as of
December 31, 2001. The increase in cash and cash equivalents is primarily a result of our desire to increase
our liquid assets.
Operating Activities. Net cash provided by operating activities for the years ended December 31, 2002,
2001 and 2000 was $748 million, $489 million and $828 million, respectively. Operating activities provided
$259 million more cash in 2002 than in 2001 primarily due to increased revenues of $759 million over 2001
and changes in operating assets and liabilities that provided $56 million more cash in 2002 than in 2001 oÅset
in part by increases in operating expenses and cash interest expense.
Operating activities provided $339 million less cash in 2001 than in 2000 primarily due to changes in
operating assets and liabilities that provided $303 million less cash in 2001 than in 2000.
Investing Activities. Net cash used in investing activities for the years ended December 31, 2002, 2001
and 2000 was $2.4 billion, $4.8 billion and $3.8 billion, respectively. Investing activities used $2.4 billion less
cash in 2002 than in 2001 primarily as a result of reductions in capital expenditures and acquisitions.
Purchases of property, plant and equipment used $779 million less cash in 2002 than in 2001 as a result of our
eÅorts to reduce capital expenditures. Payments for acquisitions used $1.6 billion less cash in 2002 than in
2001.
Investing activities used $1.0 billion more cash in 2001 than in 2000 primarily as a result of increases in
capital expenditures and acquisitions. Purchases of property, plant and equipment used $465 million more
cash in 2001 than in 2000 primarily as a result of our eÅorts to upgrade, rebuild and expand our cable systems.
Payments for acquisitions used $567 million more cash in 2001 than in 2000 primarily as a result of our
acquisition of cable systems from AT&T Broadband in 2001.
Financing Activities. Net cash provided by Ñnancing activities for the years ended December 31, 2002,
2001 and 2000 was $1.9 billion, $4.2 billion and $2.9 billion, respectively. Financing activities provided
$2.2 billion less cash in 2002 than in 2001. The decrease in cash provided in 2002 compared to 2001 was
primarily due to a decrease in issuances of long-term debt. In addition, in 2001 we received proceeds from the
issuance of Class A common stock of $1.2 billion which did not recur in 2002.
Financing activities provided $1.2 billion more cash in 2001 than in 2000. The increase in cash provided
in 2001 compared to 2000 was primarily due to proceeds from the issuance of Class A common stock of
$1.2 billion.
Capital Expenditures
We have substantial ongoing capital expenditure requirements. We made capital expenditures, excluding
acquisitions of cable systems, of $2.2 billion, $2.9 billion and $2.8 billion for the years ended December 31,
2002, 2001 and 2000, respectively. The majority of the capital expenditures in 2002 related to our rebuild and
upgrade program and purchases of digital set-top terminals and cable modems. Upgrading our cable systems
has enabled us to oÅer digital television, cable modem high-speed Internet access, video-on-demand,
interactive services, additional channels and tiers, and expanded pay-per-view options to a larger customer
base. Our capital expenditures in 2002 were funded primarily from cash Öows from operations, the issuance of
debt and borrowings under credit facilities.
During 2003, we expect to spend approximately $1.0 billion to $1.1 billion in the aggregate on capital
expenditures. We expect our capital expenditures in 2003 will be lower than 2002 levels because our rebuild
and upgrade plans are largely completed.
As Ñrst reported in our Form 10-Q for the third quarter of 2002, we adopted capital expenditure
disclosure guidance which was recently developed by eleven publicly traded cable system operators, including
Charter Communications, Inc., with the support of the National Cable & Telecommunications Association
(""NCTA''). The new disclosure is intended to provide more consistency in the reporting of operating statistics
in capital expenditures and customer relationships among peer companies in the cable industry. These
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