Charter 2003 Annual Report Download - page 113

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CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2003, 2002 and 2001
(dollars in millions, except where indicated)
shares of Series A Convertible Redeemable Preferred Stock to certain sellers subject to certain holdback
provisions of the acquisition agreement valued at $4 million. The purchase prices were allocated to assets
acquired and liabilities assumed based on fair values, including amounts assigned to franchises of $1.5 billion.
The transactions described above were accounted for using the purchase method of accounting, and,
accordingly, the results of operations of the acquired assets and assumed liabilities have been included in the
consolidated Ñnancial statements from their respective dates of acquisition. The purchase prices were
allocated to assets acquired and liabilities assumed based on fair values.
The summarized operating results of the Company that follow are presented on a pro forma basis as if the
following had occurred on January 1, 2001: all acquisitions and dispositions completed during 2001; the
issuance of Charter Holdings senior notes and senior discount notes in January 2002 and 2001; the issuance of
Charter Holdings senior notes and senior discount notes in May 2001; and the issuance of and sale by Charter
of convertible senior notes and Class A common stock in May 2001. Adjustments have been made to give
eÅect to amortization of franchises acquired prior to July 1, 2001, interest expense, minority interest, and
certain other adjustments. Pro forma results for the year ended December 31, 2003 and 2002 would not diÅer
signiÑcantly from historical results.
Year Ended
December 31, 2001
(in millions, except
per share data)
Revenues ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 3,969
Loss from operationsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (1,211)
Loss before minority interest, income taxes and cumulative eÅect of
accounting changeÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (2,724)
Net loss ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (1,251)
Loss per common share, basic and diluted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (4.64)
The unaudited pro forma Ñnancial information has been presented for comparative purposes and does not
purport to be indicative of the consolidated results of operations had these transactions been completed as of
the assumed date or which may be obtained in the future.
5. Allowance for Doubtful Accounts
Activity in the allowance for doubtful accounts is summarized as follows for the years presented:
Year Ended December 31,
2003 2002 2001
Balance, beginning of year ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 19 $ 33 $ 12
Acquisitions of cable systems ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì 1
Charged to expense ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 79 108 95
Uncollected balances written oÅ, net of recoveries ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (81) (122) (75)
Balance, end of year ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 17 $ 19 $ 33
F-15