Charter 2003 Annual Report Download - page 148

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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)
maximum contribution limit as determined by the Internal Revenue Service. The Company matches 50% of
the Ñrst 5% of participant contributions. The Company made contributions to the 401(k) plan totaling
$7 million, $8 million and $9 million for the years ended December 31, 2003, 2002 and 2001, respectively.
25. Recently Issued Accounting Standards
In December 2003, the FASB issued FASB Interpretation No. 46 (revised December 2003), Consolida-
tion of Variable Interest Entities (""FIN 46R''), which addresses how a business enterprise should evaluate
whether it has a controlling Ñnancial interest in an entity through means other than voting rights and
accordingly should consolidate the entity. FIN 46R replaces FASB Interpretation No. 46, Consolidation of
Variable Interest Entities, which was issued in January 2003. The Company will be required to apply FIN 46R
to variable interests in variable interest entities created after December 31, 2003. For variable interests in
variable interest entities created before December 31, 2003, the FIN 46R will be applied beginning on
March 31, 2004. For any variable interest entities that must be consolidated under FIN 46R that were created
before December 31, 2003, the assets, liabilities and noncontrolling interests of the variable interest entity
initially would be measured at their carrying amounts with any diÅerence between the net amount added to
the balance sheet and any previously recognized interest being recognized as the cumulative eÅect of an
accounting change. If determining the carrying amounts is not practicable, fair value at the date FIN 46R Ñrst
applies may be used to measure the assets, liabilities and noncontrolling interest of the variable interest entity.
The Company has identiÑed DBroadband Holdings, LLC as a variable interest entity in accordance with FIN
46R. As the Company is not the primary beneÑciary of the variable interest entity (as deÑned by FIN 46R),
DBroadband Holdings, LLC has not been included in the Company's consolidated Ñnancial statements. In
future periods, the Company will continue to reassess its relationship with DBroadband Holdings, LLC to
ensure proper recognition of the relationship in accordance with FIN 46R. See Note 22 for additional
information.
In December 2003, the SEC issued StaÅ Accounting Bulletin (""SAB'') No. 104, Revenue Recognition.
SAB No. 104 revises or rescinds portions of interpretative guidance on revenue recognition. SAB No. 104
became eÅective immediately upon release and requires registrants to either restate prior Ñnancial statements
or report a change in accounting principle. The adoption of SAB No. 104 did not have a material impact on
the Company's consolidated Ñnancial statements.
26. 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.
F-50