Charter 2010 Annual Report Download - page 97

                                         
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)
type or class of customer receiving the products and services; distributes the Company’s services over a unified network; and operates within
a consistent regulatory environment. In addition, each of the geographic operating segments has similar economic characteristics. In light of
the Company’s similar services, means for delivery, similarity in type of customers, the use of a unified network and other considerations across
its geographic operating structure, management has determined that the Company has one reportable segment, broadband services.

Activity in the allowance for doubtful accounts is summarized as follows for the years presented:
Successor Predecessor
Year Ended
December 31,
2010
One Month
Ended
December 31,
2009
Eleven Months
Ended
November 30,
2009
Year Ended
December 31,
2008
Balance, beginning of period $ 11 $ -- $ 18 $ 18
Charged to expense 133 10 120 122
Uncollected balances written off, net of recoveries (127) 1 (116) (122)
Fresh start accounting adjustments -- -- (22) --
Balance, end of period $ 17 $ 11 $ -- $ 18
On the Effective Date, the Company applied fresh start accounting and adjusted its accounts receivable to reflect fair value. erefore, the
allowance for doubtful accounts was eliminated at November 30, 2009.

Property, plant and equipment consists of the following as of
December 31, 2010 and 2009:
Successor
December
31, 2010
December 31,
2009
Cable distribution systems $ 5,251 $ 4,762
Customer equipment and
installations 2,101 1,597
Vehicles and equipment 115 95
Buildings and leasehold
improvements 306 302
Furniture, fixtures and
equipment 236 171
8,009 6,927
Less: accumulated depreciation (1,190) (94)
$ 6,819 $ 6,833
e Company periodically evaluates the estimated useful lives used
to depreciate its assets and the estimated amount of assets that will
be abandoned or have minimal use in the future. A significant
change in assumptions about the extent or timing of future asset
retirements, or in the Company’s use of new technology and upgrade
programs, could materially affect future depreciation expense. On
the Effective Date, the Company applied fresh start accounting and
as such adjusted its property, plant and equipment to reflect fair value
and adjusted remaining useful lives for existing property, plant and
equipment and for future purchases.
Depreciation expense for the year ended December 31, 2010
(Successor), one month ended December 31, 2009 (Successor),
eleven months ended November 30, 2009 (Predecessor) and year
ended December 31, 2008 (Predecessor) was $1.2 billion, $94
million, $1.2 billion and $1.3 billion, respectively.

Franchise rights represent the value attributed to agreements or
authorizations with local and state authorities that allow access to
homes in cable service areas. Franchises are tested for impairment
annually, or more frequently as warranted by events or changes
in circumstances. Franchises are aggregated into essentially
inseparable units of accounting to conduct the valuations. e
units of accounting generally represent geographical clustering of
the Company’s cable systems into groups by which such systems are
managed. Management believes such grouping represents the highest
and best use of those assets.