Charter 2003 Annual Report Download - page 60

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We have adopted capital expenditure disclosure guidance, which was developed by eleven publicly traded
cable system operators, including Charter, 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 customers among peer companies in the cable industry. These
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, 2003 and 2002 (dollars in millions):
For the Years
Ended
December 31,
2003 2002
Customer premise equipment(a) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $380 $ 748
Scalable infrastructure(b) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 67 261
Line extensions(c) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 131 101
Upgrade/Rebuild(d) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 132 777
Support capital(e) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 144 280
Total capital expenditures(f)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $854 $2,167
(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 expenditures made in 2003 and 2002, respectively.
Description of Our Outstanding Debt
Unless stated otherwise, the information in this section is as of December 31, 2003. See section entitled
""Subsequent Events'' for a discussion of the Charter Communications Operating, LLC reÑnancing in
April 2004.
58