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CHARTER COMMUNICATIONS, INC. 2006 FORM 10-K
Asset impairment charges. Asset impairment charges for the years See Note 4 to the accompanying consolidated financial state-
ended December 31, 2006 and 2005 represent the write-down of ments contained in ‘‘Item 8. Financial Statements and Supple-
assets related to cable asset sales to fair value less costs to sell. mentary Data.’’
Other operating expenses, net. The increases (decreases) in other operating expenses, net are attributable to the following (dollars in
millions):
2006 compared 2005 compared
to 2005 to 2004
Increases in losses on sales of assets $2 $92
Hurricane asset retirement loss (19) 19
Increases (decreases) in special charges, net 6(97)
Decreases in unfavorable contracts and other settlements —5
$ (11) $19
For more information, see Note 17 to the accompanying $18.6 billion in 2004 to $19.3 billion in 2005 to $19.4 billion in
consolidated financial statements contained in ‘‘Item 8. Financial 2006. The increase in 2006 was coupled with $10 million of
Statements and Supplementary Data.’’ losses related to embedded derivatives in Charter’s 5.875% con-
vertible senior notes. The increase in 2005 was partially offset by
Interest expense, net. Net interest expense increased by $98 mil- $29 million of gains related to embedded derivatives in Charter’s
lion in 2006 and by $119 million in 2005. The increase in net 5.875% convertible senior notes. See Note 3 to the accompany-
interest expense was a result of an increase in our average ing consolidated financial statements contained in ‘‘Item 8.
borrowing rate from 8.7% in 2004 to 9.0% in 2005 to 9.5% in Financial Statements and Supplementary Data.’’
2006, and an increase in average debt outstanding from
Gain (loss) on extinguishment of debt and preferred stock.
Year Ended December 31,
2006 2005 2004
Charter Holdings debt exchanges $108 $500 $ —
Charter Operating credit facility refinancing (27) — (21)
Charter convertible note repurchases/exchanges 20 3 (10)
Charter preferred stock repurchase —23 —
CC V Holdings notes repurchase —(5) —
$101 $521 $(31)
For more information, see Note 9 to the accompanying
consolidated financial statements contained in ‘‘Item 8. Financial
Statements and Supplementary Data.’’
Other income, net. The increases in other income, net are attributable to the following (dollars in millions):
2006 compared 2005 compared
to 2005 to 2004
Decreases in gain on derivative instruments and hedging activities, net $(44) $(19)
Decreases in minority interest (5) (18)
Increase (decreases) in investment income (6) 18
Loss on debt to equity conversions —23
Other, net 21
$(53) $5
40