Charter 2007 Annual Report Download - page 52

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For more information, see Note 20 to the accompanying
consolidated financial statements contained in “Item 8. Financial
Statements and Supplementary Data.”
Income tax expense. Income tax expense was recognized through
increases in deferred tax liabilities related to our investment in
Charter Holdco, as well as through current federal and state
income tax expense, and increases in the deferred tax liabilities of
certain of our subsidiaries. Income tax expense increases were
offset by decreases in the deferred tax liabilities to reflect the tax
impact of certain divestitures and impairments for a net benefit
of $15 million, $23 million, and $9 million in 2007, 2006, and
2005, respectively.
Income from discontinued operations, net of tax. Income from discon-
tinued operations, net of tax, increased in 2006 compared to
2005 due to a gain of $182 million (net of $18 million of tax
recorded in the fourth quarter of 2006) recognized in 2006 on
the sale of the West Virginia and Virginia systems.
Net loss. The impact to net loss in 2007, 2006, and 2005 of asset
impairment charges, impairment of franchises, extinguishment of
debt, and gain on discontinued operations, net of related tax
effects, was to increase net loss by approximately $347 million,
and decrease net loss by approximately $124 million, and
$482 million, respectively.
Preferred stock dividends. Preferred stock dividends represents
dividends on Charter’s Series A Convertible Redeemable Pre-
ferred Stock at an annual rate of 7.75%. In November 2005, we
repurchased 508,546 shares of our Series A Convertible Redeem-
able Preferred Stock. Following the repurchase, 36,713 shares of
preferred stock remain outstanding.
Loss per common share. During 2007 and 2006, net loss per
common share increased by $0.26, or 6%, and increased by
$1.00, or 32%, respectively, as a result of the factors described
above.
LIQUIDITY AND CAPITAL RESOURCES
Introduction
This section contains a discussion of our liquidity and capital
resources, including a discussion of our cash position, sources
and uses of cash, access to credit facilities and other financing
sources, historical financing activities, cash needs, capital expen-
ditures and outstanding debt.
CHARTER COMMUNICATIONS, INC. 2007 FORM 10-K
41