Charter 2010 Annual Report Download - page 106

                                         
F- F-PB
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2010, 2009, AND 2008
(dollars in millions, except share or per share data or where indicated)
Changes to controlling and noncontrolling interest consist of the following for the periods presented:
Controlling Noncontrolling
Interest Interest Total
PREDECESSOR:
Balance, December 31, 2008, Predecessor $ (10,506) $-- $ $(10,506)
Net income (loss) 11,364 (1,265) 10,099
Loss included in temporary equity (see Note 11) -- 7 7
Changes in the fair value of interest rate agreements (5) (4) (9)
Stock compensation expense, net 5 -- 5
Amortization of accumulated other comprehensive loss related to
interest rate agreements 32 29 61
Cancellation of Predecessor common stock and
noncontrolling interest (5,399) 1,233 (4,166)
Elimination of Predecessor accumulated deficit and
accumulated other comprehensive income (loss) 4,509 -- 4,509
Balance, November 30, 2009, Predecessor -- -- --
SUCCESSOR:
Issuance of new equity 2,003 12 2,015
Balance, November 30, 2009, Successor 2,003 12 2,015
Net income 2 -- 2
Charter Investment Inc.’s (“CII”) exchange of Charter Holdco
interest (see Note 18) (90) (10) (100)
Stock compensation expense, net 1 -- 1
Balance, December 31, 2009, Successor 1,916 2 1,918
Net loss (237) -- (237)
CII’s exchange of Charter Holdco interest (see Note 18) (166) (2) (168)
Change in fair value of interest rate swap agreements (57) -- (57)
Stock compensation expense, net 28 -- 28
Purchase of treasury stock (6) -- (6)
Balance, December 31, 2010, Successor $ 1,478 $-- $1,478
 
All of the issued and outstanding shares of Predecessor common
stock, par value $.001 per share, and any other outstanding equity
securities of Predecessor, including all options and restricted
stock, were cancelled on the Effective Date, and Successor issued
109.7 million shares of new Charter Class A common stock, par
value $.001 per share and 2.2 million shares of new Charter Class B
common stock, par value $.001 per share.
Charter’s Class A common stock and Class B common stock
were identical except with respect to certain voting, transfer and
conversion rights. Holders of Class A common stock are entitled
to one vote per share and the holder of Class B common stock was
entitled to votes equaling 35% of the voting interests in Charter
on a fully diluted basis. Charter Holdco membership units were
exchangeable on a one-for-one basis for shares of Class A common stock.
As of December 31, 2010, Mr. Allen held all 2,241,299 shares of
Class B common stock of Charter. Pursuant to the terms of the
Certificate of Incorporation of Charter, on January 18, 2011, the
Disinterested Members of the Board of Directors of Charter caused
a conversion of the shares of Class B common stock into shares of
Class A common stock on a one-for-one basis.
On the Effective Date, holders of notes issued by CIH and Charter
Holdings received 6.4 million and 1.3 million warrants, respectively,
to purchase shares of new Charter Class A common stock with