Charter 2004 Annual Report Download - page 76

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CHARTER COMMUNICATIONS, INC. 2004 FORM 10-K
December 31, 2004, 2003 and 2002, net gain (loss) on derivative and $57 million and losses of $101 million, respectively, for
instruments and hedging activities includes gains of $65 million interest rate derivative instruments not designated as hedges.
The table set forth below summarizes the fair values and contract terms of financial instruments subject to interest rate risk
maintained by us as of December 31, 2004 (dollars in millions):
Fair Value at
December 31,
2005 2006 2007 2008 2009 Thereafter Total 2004
Debt
Fixed Rate $— $156 $451 $ 228 $4,260 $8,631 $13,726 $12,807
Average Interest Rate —4.75% 8.25% 10.93% 8.85% 9.32% 9.12%
Variable Rate $30 $ 30 $280 $ 630 $ 780 $4,315 $ 6,065 $ 6,052
Average Interest Rate 6.47% 7.08% 7.17% 7.45% 7.73% 8.40% 8.14%
Interest Rate Instruments
Variable to Fixed Swaps $ 990 $873 $775 $ —$—$—$ 2,638 $ 69
Average Pay Rate 7.94% 8.23% 8.04% —— —8.07%
Average Receive Rate 6.36% 7.08% 7.20% —— —6.85%
The notional amounts of interest rate instruments do not At December 31, 2004 and 2003, we had outstanding
represent amounts exchanged by the parties and, thus, are not a $2.7 billion and $3.0 billion and $20 million and $520 million,
measure of our exposure to credit loss. The amounts exchanged respectively, in notional amounts of interest rate swaps and
are determined by reference to the notional amount and the collars, respectively. The notional amounts of interest rate
other terms of the contracts. The estimated fair value approxi- instruments do not represent amounts exchanged by the parties
mates the costs (proceeds) to settle the outstanding contracts. and, thus, are not a measure of exposure to credit loss. The
Interest rates on variable debt are estimated using the average amounts exchanged are determined by reference to the notional
implied forward London Interbank Offering Rate (LIBOR) rates amount and the other terms of the contracts.
for the year of maturity based on the yield curve in effect at
December 31, 2004.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
Our consolidated financial statements, the related notes thereto, and the reports of independent auditors are included in this annual
report beginning on page F-1.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE.
None.
66