Charter 2011 Annual Report Download - page 97

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CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2011, 2010 AND 2009
(dollars in millions, except share or per share data or where indicated)
F- 13
3. Allowance for Doubtful Accounts
Activity in the allowance for doubtful accounts is summarized as follows for the years presented:
Balance, beginning of period
Charged to expense
Uncollected balances written off, net of recoveries
Fresh start accounting adjustments
Balance, end of period
Successor
Year Ended December 31,
2011
$ 17
117
(118)
—
$ 16
2010
$ 11
133
(127)
—
$ 17
One Month
Ended
December 31,
2009
$ —
10
1
—
$ 11
Predecessor
Eleven
Months
Ended
November 30,
2009
$ 18
120
(116)
(22)
$ —
On the Effective Date, the Company applied fresh start accounting and adjusted its accounts receivable to reflect fair value.
Therefore, the allowance for doubtful accounts was eliminated at November 30, 2009.
4. Property, Plant and Equipment
Property, plant and equipment consists of the following as of December 31, 2011 and 2010:
Cable distribution systems
Customer equipment and installations
Vehicles and equipment
Buildings and leasehold improvements
Furniture, fixtures and equipment
Less: accumulated depreciation
Successor
December 31,
2011
$ 5,916
2,592
136
318
299
9,261
(2,364)
$ 6,897
2010
$ 5,251
2,101
115
306
236
8,009
(1,190)
$ 6,819
The 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 years ended December 31, 2011 and 2010 (Successor), one month ended December 31, 2009
(Successor) and eleven months ended November 30, 2009 (Predecessor) was $1.3 billion, $1.2 billion, $94 million and $1.2 billion,
respectively. Property, plant and equipment increased $49 million as a result of cable system acquisitions during the year ended
December 31, 2011.