Charter 2009 Annual Report Download - page 48

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Interest rates on variable debt are estimated using the average implied forward LIBOR for the year of maturity based
on the yield curve in effect at December 31, 2009 including applicable bank spread.
At December 31, 2008, we had outstanding $4.3 billion in notional amounts of interest rate swap agreements
outstanding. The notional amounts of interest rate instruments do not represent amounts exchanged by the parties
and, thus, are not a measure of exposure to credit loss. The amounts exchanged were determined by reference to the
notional amount and the other terms of the contracts.
Item 8. Financial Statements and Supplementary Data.
Our consolidated financial statements, the related notes thereto, and the reports of independent accountants are
included in this annual report beginning on page F-1.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
None.
Item 9A. Controls and Procedures.
Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures
As of the end of the period covered by this report, under the supervision and with the participation of our
management, including our Interim Chief Executive Officer and Chief Financial Officer, we have evaluated the
effectiveness of the design and operation of our disclosure controls and procedures with respect to the information
generated for use in this annual report. The evaluation was based in part upon reports and certifications provided by
a number of executives. Based upon, and as of the date of that evaluation, our Interim Chief Executive Officer and
Chief Financial Officer concluded that the disclosure controls and procedures were effective to provide reasonable
assurances that information required to be disclosed in the reports we issue is recorded, processed, summarized and
reported within the time periods specified in the SEC’ s rules and forms.
In designing and evaluating the disclosure controls and procedures, our management recognized that any controls
and procedures, no matter how well designed and operated, can provide only reasonable, not absolute, assurance of
achieving the desired control objectives, and management necessarily was required to apply its judgment in
evaluating the cost-benefit relationship of possible controls and procedures. Based upon the above evaluation, we
believe that our controls provide such reasonable assurances.
There was no change in our internal control over financial reporting during the fourth quarter of 2009 that has
materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
Management’s Report on Internal Control Over Financial Reporting
Charter’ s management is responsible for establishing and maintaining adequate internal control over financial
reporting (as defined in Rule 13a-15(f) under the Exchange Act) for us. Our internal control system was designed to
provide reasonable assurance to Charter’ s management and board of directors regarding the preparation and fair
presentation of published financial statements.
Charter’ s management has assessed the effectiveness of our internal control over financial reporting as of December
31, 2009. In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations
of the Treadway Commission (“COSO”) in Internal Control — Integrated Framework. Based on management’ s
assessment utilizing these criteria we believe that, as of December 31, 2009, our internal control over financial
reporting was effective.
Item 9B. Other Information.
None.