The acquisition and redemption were financed with borrowings under an existing revolving credit facility. The Company utilized the remaining sales proceeds to reduce long-term debt during the second and third quarters. The purchase price has been allocated to the assets acquired and liabilities assumed based on their estimated fair values according to preliminary appraisals. Such estimated values may change as the appraisals are finalized and more facts become known. The pro forma does not purport to be indicative of what would have occurred had the acquisition actually been made as of such date, nor is it indicative of results which may occur in the future.
Inventories are principally raw materials.
The FCC is currently reviewing certain of the rates charged to subscribers. The Company believes that it has complied with all provisions of the 1992 Cable Act, including its rate setting provisions. However, since the Company's rates for regulated services are subject to review, the Company may be subject to a refund liability if its rates are successfully challenged.