Charter 2006 Annual Report Download - page 44

CHARTER COMMUNICATIONS, INC. 2006 FORM 10-K
ITEM 6. SELECTED FINANCIAL DATA.
The following table presents selected consolidated financial data for the periods indicated (dollars in millions, except share data):
Charter Communications, Inc. Year Ended December 31,(a)
2006 2005 2004 2003 2002
Statement of Operations Data:
Revenues $ 5,504 $ 5,033 $ 4,760 $ 4,616 $ 4,377
Operating income (loss) from continuing operations $ 367 $ 304 $ (1,942) $ 484 $ (3,914)
Interest expense, net $ (1,887) $ (1,789) $ (1,670) $ (1,557) $ (1,503)
Loss from continuing operations before cumulative effect of
accounting change $ (1,586) $ (1,003) $ (3,441) $ (241) $ (2,104)
Net loss applicable to common stock $ (1,370) $ (970) $ (4,345) $ (242) $ (2,514)
Basic and diluted loss from continuing operations before
cumulative effect of accounting change per common share $ (4.78) $ (3.24) $ (11.47) $ (0.83) $ (7.15)
Basic and diluted loss per common share $ (4.13) $ (3.13) $ (14.47) $ (0.82) $ (8.55)
Weighted-average shares outstanding, basic and diluted 331,941,788 310,209,047 300,341,877 294,647,519 294,490,261
Balance Sheet Data (end of period):
Investment in cable properties $ 14,440 $ 15,666 $ 16,167 $ 20,694 $ 21,406
Total assets $ 15,100 $ 16,431 $ 17,673 $ 21,364 $ 22,384
Long-term debt $ 19,062 $ 19,388 $ 19,464 $ 18,647 $ 18,671
Note payable — related party $57$49$—$—$—
Minority interest(b) $ 192 $ 188 $ 648 $ 689 $ 1,050
Preferred stock — redeemable $4$ 4$55$55$51
Shareholders’ equity (deficit) $ (6,219) $ (4,920) $ (4,406) $ (175) $ 41
(a) In 2006, we sold certain cable television systems in West Virginia and Virginia to Cebridge Connections, Inc. We determined that the West Virginia and Virginia cable
systems comprise operations and cash flows that for financial reporting purposes meet the criteria for discontinued operations. Accordingly, the results of operations for
the West Virginia and Virginia cable systems have been presented as discontinued operations, net of tax for the year ended December 31, 2006 and all prior periods
presented herein have been reclassified to conform to the current presentation.
(b) Minority interest represents preferred membership interests in our indirect subsidiary, CC VIII, and since June 6, 2003, the pro rata share of the profits and losses of CC
VIII. This preferred membership interest arises from approximately $630 million of preferred membership units issued by CC VIII in connection with an acquisition in
February 2000. As part of the Private Exchange, CCHC contributed its 70% interest in the 24,273,943 Class A preferred membership units (collectively, the ‘‘CC VIII
interest’’) to CCH I. See Note 22 to our accompanying consolidated financial statements contained in ‘‘Item 8. Financial Statements and Supplementary Data.’’ Reported
losses allocated to minority interest on the statement of operations are limited to the extent of any remaining minority interest on the balance sheet related to Charter
Holdco. Because minority interest in Charter Holdco was substantially eliminated at December 31, 2003, beginning in 2004, Charter began to absorb substantially all
losses before income taxes that otherwise would have been allocated to minority interest. Under our existing capital structure, Charter will continue to absorb all future
losses for GAAP purposes.
Comparability of the above information from year to year is affected by acquisitions and dispositions completed by us. See
Note 4 to our accompanying consolidated financial statements contained in ‘‘Item 8. Financial Statements and Supplementary Data’’
and ‘‘Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital
Resources.’’
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