Charter 2007 Annual Report Download - page 111

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Charter Communications, Inc. (Parent Company Only)
CONDENSED BALANCE SHEET
2007 2006
December 31,
Assets
Cash and cash equivalents $—$1
Receivable from related party 27 24
Notes receivable from Charter Holdco 402 867
Other assets 33 —
Total assets $ 462 $ 892
Liabilities and Shareholders’ Deficit
Current liabilities $22$27
Payable to related party ——
Convertible notes 402 408
Notes payable to related party —445
Deferred income taxes 425 315
Other long term liabilities 27 —
Preferred stock – redeemable 54
Losses in excess of investment 7,473 5,912
Shareholders’ deficit (7,892) (6,219)
Total liabilities and shareholders’ deficit $ 462 $ 892
CONDENSED STATEMENT OF OPERATIONS
2007 2006 2005
Year Ended December 31,
Income
Interest income $64$59$76
Management fees 15 30 35
Gain on extinguishment of notes receivable from Charter Holdco 63 — —
Change in value of derivative 98 — —
Total income 240 89 111
Expenses
Equity in losses of Charter Holdco (1,443) (1,168) (865)
General and administrative expenses (15) (30) (35)
Interest expense (64) (59) (73)
Loss on extinguishment of convertible notes (63) — —
Change in value of derivative (98) — —
Total expenses (1,683) (1,257) (973)
Net loss before income taxes (1,443) (1,168) (862)
Income tax expense (173) (202) (105)
Net loss (1,616) (1,370) (967)
Dividend on preferred equity ——(3)
Net loss after preferred dividends $(1,616) $(1,370) $(970)
Shareholder’s deficit and Equity in losses of Charter Holdco, as of and for the year ended December 31, 2006, include the gain on
the Charter convertible notes exchange to reflect the substance of the transaction, which was that the Charter convertible notes were
extinguished on a consolidated basis but remained outstanding for parent company only purposes (See Note 9). Notes payable to
related party, as of December 31, 2006, reflect the full accreted value of the convertible notes held by CCHC subsequent to the
exchange. The convertible notes received in the exchange held by CCHC, were transferred to Charter Holdco in August 2007, and
subsequently cancelled in November 2007.
F-33
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES 2007 FORM 10-K
Notes to Consolidated Financial Statements (continued)