Charter 2002 Annual Report Download - page 40

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disclosure guidelines are not required disclosure under GAAP, nor do they impact our accounting for capital
expenditures under GAAP.
The following table presents our major capital expenditures categories in accordance with NCTA
disclosure guidelines for the years ended December 31, 2002 and 2001 (dollars in millions):
For the Years
Ended
December 31,
2002 2001
Customer premise equipment(a) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 748 $ 926
Scalable infrastructure(b)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 261 308
Line extensions(c)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 101 161
Upgrade/Rebuild(d) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 777 1,014
Support capital(e) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 280 504
Total capital expenditures(f) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,167 2,913
(a) Customer premise equipment includes costs incurred at the customer residence to secure new customers,
revenue units and additional bandwidth revenues. It also includes customer installation costs in
accordance with SFAS 51 and customer premise equipment (e.g., set-top terminals and cable modems,
etc.).
(b) Scalable infrastructure includes costs, not related to customer premise equipment or our network, to
secure growth of new customers, revenue units and additional bandwidth revenues or provide service
enhancements (e.g., headend equipment).
(c) Line extensions include network costs associated with entering new service areas (e.g., Ñber/coaxial
cable, ampliÑers, electronic equipment, make-ready and design engineering).
(d) Upgrade/rebuild includes costs to modify or replace existing Ñber/coaxial cable networks, including
betterments.
(e) Support capital includes costs associated with the replacement or enhancement of non-network assets due
to technological and physical obsolescence (e.g., non-network equipment, land, buildings and vehicles).
(f) Represents all capital purchases made in 2002 and 2001, respectively. This amount diÅers from that
shown in our statement of cash Öows by the changes in year end balances of related accounts payable.
38