Charter 2003 Annual Report Download - page 129

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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)
Minority
Interest
Balance, December 31, 2002 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,050
Minority interest in loss of a subsidiary ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (377)
Minority interest in income tax beneÑt ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (8)
Changes in fair value of interest rate agreements ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 25
Other ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (1)
Balance, December 31, 2003 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 689
11. Preferred Stock Ì Redeemable
On August 31, 2001, in connection with its acquisition of Cable USA, Inc. and certain cable system
assets from aÇliates of Cable USA, Inc., the Company issued 505,664 shares of Series A Convertible
Redeemable Preferred Stock (the Preferred Stock) valued at and with a liquidation preference of $51 million.
Holders of the Preferred Stock have no voting rights but are entitled to receive cumulative cash dividends at
an annual rate of 5.75%, payable quarterly. If for any reason Charter fails to pay the dividends on the Preferred
Stock on a timely basis, the dividend rate on each share increases to an annual rate of 7.75% until the payment
is made. The Preferred Stock is redeemable by Charter at its option on or after August 31, 2004 and must be
redeemed by Charter at any time upon a change of control, or if not previously redeemed or converted, on
August 31, 2008. The Preferred Stock is convertible, in whole or in part, at the option of the holders from
April 1, 2002 through August 31, 2008, into shares of common stock at an initial conversion rate equal to a
conversion price of $24.71 per share of common stock, subject to certain customary adjustments. The
redemption price per share of Preferred Stock is the Liquidation Preference of $100, subject to certain
customary adjustments. In the Ñrst quarter of 2003, the Company issued 39,595 additional shares of preferred
stock valued at and with a liquidation preference of $4 million.
12. Common Stock
The Company's Class A common stock and Class B common stock are identical except with respect to
certain voting, transfer and conversion rights. Holders of Class A common stock are entitled to one vote per
share and holders of Class B common stock are entitled to ten votes per share. The Class B common stock is
subject to signiÑcant transfer restrictions and is convertible on a share for share basis into Class A common
stock at the option of the holder.
13. Comprehensive Loss
Certain marketable equity securities are classiÑed as available-for-sale and reported at market value with
unrealized gains and losses recorded as accumulated other comprehensive loss on the accompanying
consolidated balance sheets. The Company reports changes in the fair value of interest rate agreements
designated as hedging instruments of the variability of cash Öows associated with Öoating-rate debt obligations,
that meet the eÅectiveness criteria of SFAS No. 133, Accounting for Derivative Instruments and Hedging
Activities, in accumulated other comprehensive loss, after giving eÅect to the minority interest share of such
gains and losses. Comprehensive loss for the years ended December 31, 2003, 2002 and 2001 was $219 million,
$2.5 billion and $1.2 billion, respectively.
F-31