Charter 2007 Annual Report Download - page 92

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As of December 31, 2007 and 2006, indefinite-lived and finite-lived intangible assets are presented in the following table:
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
2007 2006
December 31,
Indefinite-lived intangible assets:
Franchises with indefinite lives $8,929 $— $8,929 $9,207 $—$9,207
Goodwill 67 — 67 61 —61
$8,996 $— $8,996 $9,268 $—$9,268
Finite-lived intangible assets:
Franchises with finite lives $ 23 $10 $ 13 $23 $7 $16
For the year ended December 31, 2007, the net carrying
amount of indefinite-lived franchises was reduced by $178 million
as a result of the impairment of franchises discussed above,
$77 million related to cable asset sales completed in 2007, and
$56 million as a result of the asset impairment charges recorded
related to these cable asset sales. These decreases were offset by
$33 million of franchises added as a result of acquisitions of cable
assets. For the year ended December 31, 2006, the net carrying
amount of indefinite-lived and finite-lived franchises was reduced
by $452 million and $2 million, respectively, related to cable asset
sales completed in 2006 and indefinite-lived franchises were
further reduced by $147 million as a result of the asset impair-
ment charges recorded related to these cable asset sales.
Franchise amortization expense represents the amortization
relating to franchises that did not qualify for indefinite-life
treatment under SFAS No. 142, including costs associated with
franchise renewals. Franchise amortization expense for the years
ended December 31, 2007, 2006, and 2005 was $3 million,
$2 million, and $4 million, respectively. The Company expects
that amortization expense on franchise assets will be approxi-
mately $2 million annually for each of the next five years. Actual
amortization expense in future periods could differ from these
estimates as a result of new intangible asset acquisitions or
divestitures, changes in useful lives and other relevant factors.
For the year ended December 31, 2007 and 2006, the net
carrying amount of goodwill increased $6 million and $9 million,
respectively, as a result of the Company’s purchase of certain
cable systems in 2007 and 2006.
8. ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Accounts payable and accrued expenses consist of the following
as of December 31, 2007 and 2006:
2007 2006
Accounts payable – trade $ 127 $92
Accrued capital expenditures 95 97
Accrued expenses:
Interest 418 410
Programming costs 273 268
Franchise related fees 66 68
Compensation 116 110
Other 237 253
$1,332 $1,298
9. LONG-TERM DEBT
Long-term debt consists of the following as of December 31,
2007 and 2006:
Principal
Amount
Accreted
Value
Principal
Amount
Accreted
Value
2007 2006
Long-Term Debt
Charter Communications, Inc.:
5.875% convertible senior
notes due November 16,
2009 $49$49$ 413 $ 408
6.50% convertible senior
notes due October 1, 2027 479 353 — —
F-14
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES 2007 FORM 10-K
Notes to Consolidated Financial Statements (continued)