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CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES 2006 FORM 10-K
Notes to Consolidated Financial Statements (continued)
subscriber line service providers led to the lower projected
growth rates and the revised estimates of future cash flows from
those used at October 1, 2003.
As of December 31, 2006 and 2005, indefinite-lived and finite-lived intangible assets are presented in the following table:
December 31,
2006 2005
Gross Net Gross Net
Carrying Accumulated Carrying Carrying Accumulated Carrying
Amount Amortization Amount Amount Amortization Amount
Indefinite-lived intangible assets:
Franchises with indefinite lives $9,207 $— $9,207 $9,806 $—$9,806
Goodwill 61 — 61 52 —52
$9,268 $— $9,268 $9,858 $—$9,858
Finite-lived intangible assets:
Franchises with finite lives $23 $7 $16 $27 $7 $20
For the year ended December 31, 2006, the net carrying 8. ACCOUNTS PAYABLE AND ACCRUED EXPENSES
amount of indefinite-lived and finite-lived franchises was reduced Accounts payable and accrued expenses consist of the following
by $452 million and $2 million, respectively, related to cable asset as of December 31, 2006 and 2005:
sales completed in 2006 and indefinite-lived franchises were
further reduced by $147 million as a result of the asset 2006 2005
impairment charges recorded related to these cable asset sales.
Accounts payable — trade $92 $ 114
For the year ended December 31, 2005, the net carrying amount Accrued capital expenditures 97 73
of indefinite-lived franchises was reduced by $52 million related to Accrued expenses:
cable asset sales completed in 2005 (see Note 4). Additionally, in Interest 410 333
Programming costs 268 269
2005, approximately $13 million of franchises that were previously
Franchise related fees 68 67
classified as finite-lived were reclassified to indefinite-lived, based Compensation 110 90
on the Company’s renewal of these franchise assets in 2005. Other 253 245
Franchise amortization expense represents the amortization $1,298 $1,191
relating to franchises that did not qualify for indefinite-life
treatment under SFAS No. 142, including costs associated with
9. LONG-TERM DEBT
franchise renewals. Franchise amortization expense for the years
ended December 31, 2006, 2005 and 2004 was $2 million, Long-term debt consists of the following as of December 31,
$4 million, and $3 million, respectively. The Company expects 2006 and 2005:
that amortization expense on franchise assets will be approxi-
mately $1 million annually for each of the next five years. 2006 2005
Actual amortization expense in future periods could differ from Principal Accreted Principal Accreted
these estimates as a result of new intangible asset acquisitions or Amount Value Amount Value
divestitures, changes in useful lives and other relevant factors. Long-Term Debt
Charter Communications,
For the year ended December 31, 2006, the net carrying Inc.:
amount of goodwill increased $9 million as a result of the 4.750% convertible senior
Company’s purchase of certain cable systems in Minnesota from notes due June 1, 2006 $—$—$20$20
Seren Innovations, Inc. in January 2006. 5.875% convertible senior
notes due November 16,
2009 413 408 863 843
F-17