Charter 2010 Annual Report Download - page 76

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                                         

e table set forth below summarizes the fair values and contract terms of financial instruments subject to interest rate risk maintained by
us as of December 31, 2010 (dollars in millions) and does not reflect the issuance of the CCO Holdings notes in January 2011 and the
application of proceeds to repay borrowings under the Charter Operating credit facilities:
2011 2012 2013 2014 2015 ereafter Total
Fair Value at
December 31,
2010
Debt:
Fixed Rate $ -- $ 1,100 $ -- $ 546 $ -- $ 4,366 $ 6,012 $ 6,596
Average Interest Rate -- 8.00% -- 10.88% -- 10.05% 9.75%
Variable Rate $ 58 $ 58 $ 337 $ 2,985 $ 30 $ 2,836 $ 6,304 $ 6,252
Average Interest Rate 3.50% 4.24% 4.75% 5.69% 7.25% 7.75% 6.54%
Interest Rate Instruments:
Variable to Fixed Rate $ -- $ -- $ 900 $ 800 $ 300 $ -- $ 2,000 $ 57
Average Pay Rate -- -- 5.21% 5.65% 5.99% -- 5.50%
Average Receive Rate -- -- 5.51% 6.41% 7.00% -- 6.09%
Amounts outstanding under the revolving credit facility mature on
March 6, 2015; provided, however, that unless otherwise directed
by the revolving lenders holding more than 50% of the revolving
commitments, the termination date will be December 1, 2013 if,
on December 1, 2013, Charter Operating and its subsidiaries do
not have less than $1.0 billion of indebtedness on a consolidated
basis with maturities between January 1, 2014 and April 30, 2014.
Because Charter Operating currently has indebtedness in excess of
$1.0 billion with maturities between January 1, 2014 and April 30,
2014, the amount outstanding under the revolving credit facility is
included in 2013 in the above table.
At December 31, 2010, we had $2.0 billion in notional amounts of
interest rate swaps outstanding. e notional amounts of interest
rate instruments do not represent amounts exchanged by the parties
and, thus, are not a measure of our exposure to credit loss. e
amounts exchanged are determined by reference to the notional
amount and the other terms of the contracts. e estimated fair
value is determined using a present value calculation based on an
implied forward LIBOR curve (adjusted for Charter Operating’s
or counterparties’ credit risk). 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, 2010
including applicable bank spread.
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.
Changes in and Disagreements with
Accountants on Accounting and Financial Disclosure.
None.
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 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. e 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
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 file or submit under the Securities Exchange Act of 1934
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