Loading...
HomeMy WebLinkAboutAnnual Financial StatementsOFFICE OF CITY ATTORNEY TO: CITY OF ITHACA 108 EAST GREEN STREET ITHACA, NEW YORK 114850 TELEPHONE: 272-1713 CODE 607 MEMORANDUM John C. Gutenberger, Mayor Ray Schlather, Chairman of Budget & Administration Richard Booth, Chairman of Charter & Ordinance David Lytel, Alderman Ben Nichols, Alderman Cookie Paolangeli, City Clerk Thys Van Cort, Planning Director Cable Commission Members Dom' ;,•'ck,C.fferillo, Controller FROM: Ralp'. Nash, City Attorney DATE: June 0, 1989 RE: Cable Franchise Please find enclosed communication received regarding possible assignment of our Cable Franchise agreement. 1 have the supplement documents in my office. RWN:blh enc. cc: Matthew J. Nothnagle "An Equal Opportunity Employer with an Affirmative Action Program" 30 ROCKEFELLER PLAZA NEW YORK, NEW YORK,10112 (212) 586-4100 ; , ONE KEYCORP PLAZA ALBANY, NEW YORK 12207 (518) 434-6000 990 STEWART AVENUE GARDEN CITY, NEW YORK 11530 (516) 222-1236 ,Nixon, Hargrave, Devans & Doyle Attorneys and Counselors at Law A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS LINCOLN FIRST TOWER POST OFFICE BOX 1051 ROCHESTER, NEW YORK 14603 (716) 546-8000 TELEX: 978450 (WUT) TELECOPIER: (716) 546-3843 June 29, 1989 Ralph G. Nash, Esq. Ithaca City Attorney 108 E. Green Street Ithaca, New York 14850 Re: Paramount Communications Inc. Acquisition of Time Incorporated Dear Mr. Nash: UN 3 0 1989 SUITE 800 ONE THOMAS CIRCLE WASHINGTON, D.C. 20005 (202) 223.7200 REYNOLDS PLAZA 1081 EAST INDIANTOWN ROAD JUPITER, FLORIDA 33477 (407) 748-1002 As we discussed, Paramount Communications Inc. ("Paramount") has made a tender offer to acquire Time Incorporated ("Time"). Time, in turn, is the majority stockholder of American Television and Communications Corporation ("ATC"), another public corporation. ATC is the sole stockholder of American Community Cablevision ("ACC"). We understand that under the terms of the cable television franchise granted by the City of Ithaca, the acquisition of Time may require the City's approval. We are counsel for Paramount and on its behalf would like to hereby apply for any required approval. Paramount is a diversified entertainment and publishing company. Its well-known companies include Paramount Pictures; Simon & Schuster, Prentice -Hall and Silver, Burdett & Ginn, trade and educational publishers; and Madison Square Garden Corporation. Paramount does not currently operate cable systems, but it does own MSG Network, a regional basic cable television sports network, and it is a 50% owner of USA Network, a national advertiser -supported basic cable television service. Paramount is a leader in the production of quality motion pictures and a variety of popular programs for r• Nixon. Hargrave, Devans & Doyle Ralph G. Nash, Esq. June 29, 1989 Page 2 television. As a result, Paramount will bring immense entertainment and education experience to the ATC cable systems. Paramount views ATC as a successful operator of cable television systems, and appreciates that sufficient authority must be delegated to local management of ACC and the other franchisees to ensure that the local community's interests are appropriately served. After the acquisition of Time,ATC will continue to be a subsidiary of Time and will remain owner or co-owner of all of its current cable television subsidiaries. ACC will continue to operate under the current management structure. Paramount would expect that the operation of your cable television system will be substantially unchanged, except to the extent that it can be improved and become more responsive to your needs. Similarly, Paramount would hope there would be no change in local management or programming. I recognize your concern that this transaction may cause Paramount to make significant cuts in ACC's operation. However, should not be too much of a problem. First, as you no doubt know, cable in Ithaca is regulated both by the franchise and by the New York State Commission on Cable; ACC and its corporate parents are and will remain legally bound by the franchise. Second, Time is currently attempting to purchase Warner Communications for $14 billion, in part to fend off Paramount. It is thus unlikely that ACC's ultimate parent will emerge from this situation without some debt. Please consider this letter and enclosed documents as a formal application for approval by the City of Ithaca of Paramount's acquisition'of Time. Attached hereto is a short summary of the proposed acquisition. In addition, I am enclosing the following documents: (1) Offer to Purchase, dated June 7, 1989, and Supplement to the Offer to Purchase, dated June 23, 1989. (2) Paramount's (formerly Gulf + Western) Annual Report on Form 10-K for the fiscal year ended October 31, 1988. (3) Paramount's 1988 Annual Report to Stockholders. Nixon, Hargrave, Devans & Doyle Ralph G. Nash, Esq. June 29, 1989 Page 3 We believe this letter and the enclosed documents will provide complete information regarding Paramount and its proposed acquisition of Time and constitute the formal institution of the process for any authorization required under local law. Please call me or my colleague Deborah McLean Quinn if we can provide you with any additional information on any specific aspect of the proposed transaction. One of us will call you again shortly to discuss the timing of the approval process. As I mentioned, it is important to move quickly on this. Permit me to say on behalf of Paramount that we look forward not only to working with you, but also becoming a strong supporter of local cable television service in your community in the years to come. ' Sincerely, Matthew J. Nothnagle MJN:jcw Enclosures PARAMOUNT COMMUNICATIONS INC.'S PROPOSED ACQUISITION OF TIME INCORPORATED Paramount Communications Inc., a Delaware corporation formerly named Gulf + Western Inc. ("Paramount"), through a wholly-owned subsidiary has commenced a tender offer to purchase all of the outstanding stock of Time Incorporated ("Time") for a total purchase price of over $12 billion. The tender offer is being made to Time's shareholders in all fifty states, as required by the federal securities laws. After successful completion of the tender offer, Time will be merged into a subsidiary of Paramount and thereafter will continue to exist as a subsidiary of Paramount. After the acquisition, Time is expected to continue to own and operate its present business, including the cable operations. American Television and Communications Corporation ("ATC") will continue to be a direct subsidiary of Time and ATC's cable television subsidiaries will continue to be indirect subsidiaries of Time. ATC is expected to continue to own the cable television franchise subsidiaries presently owned by it and to remain a joint venture, partner in all of its cable television joint venture arrangements. Each cable franchise subsidiary owned by ATC will survive intact and unchanged as the continuing owner or operator of its respective cable television system and franchise. No direct ownership interest in any cable television system will be affected by Paramount's purchase of the common stock of Time or by the merger of Time into a Paramount subsidiary. A Time -Paramount combination will create a diversified media company operating in the areas of entertainment, cable television and publishing. Together Paramount and Time will be a communications company rich in resources with unparalleled range and depth, strongly positioned for global growth through the next decade and into the next century. No other company will be as significant a force in entertainment and publishing with operations in quality magazine and book publishing, as well as in motion picture and television production and distribution, cable systems and cable programming. The following is a description of the core business groups of a combined Time -Paramount entity. 3 7 8 7 D - 2 - Entertainment. Paramount, through Paramount Pictures Corporation ("Paramount Pictures" ), Famous Players Inc., its Canadian theatre chain, Theatres, its 50% owned domestic theater chain, and Madison Square Garden Corporation, produces, finances and distributes motion pictures, television programming and prerecorded videocassettes, operates motion picture theatres in the United States and Canada and owns and operates Madison Square Garden Center in New York and the MSG Network, the nation's oldest regional cable television sports network. Paramount also owns 50% of USA Network, a provider of programs for the cable industry. Paramount Pictures distributes its films through its own organizationin the United States and Canada. Distribution in other countries is through United International Pictures, a company owned jointly with MCA Inc. and MGM/UA Communications Company. Cinema International Corporation, which is jointly owned with MCA, distributes videocassettes to the international home video market. In television, Paramount Pictures creates original programming for the commercial networks, first -run syndication, cable, home video and international distribution. Time's pay television programming operations consist primarily of Home Box Office, Inc., a wholly-owned subsidiary of Time, plus a 14% interest in Turner Broadcastingi System, Inc. The principal businesses of Home Box Office, Inc. are the programming and marketing of two satellite -transmitted pay television services, the HBO Service and the CINEMAX service, and the distribution of video cassettes through its wholly-owned subsidiary, HBO Video, Inc. ` Home Box Office's programming also includes concerts, comedy shows and other programs which are produced specifically for HBO and/or CINEMAX. Cable Television. Cable television operations are conducted through Time's 82% interest in ATC, which is currently the second largest cable television system operator in the United States in terms of basic cable subscribers and has approximately 767 franchises in 32 states with approximately 4.1 million basic cable subscribers. ATC's cable television operations consist primarily of selling, for a monthly fee, video programming which is distributed to subscribers' television sets through a network of coaxial cables. Such video programming is comprised of local broadcast television signals, locally produced or originated video 3 7 8 7 D - 3 - programming, distant broadcast television, advertiser -supported video programming, premium programming services and in some systems, audio and other entertainment and information services. Publishing. Paramount, through Simon & Schuster, Prentice Hall, Pocket Books and Silver Burdett & Ginn, publishes hardcover and paperback books for the general public, publishes textbooks and other learning materials for elementary schools, high schools and colleges, and provides professional information in the form of looseleaf services, business books, professional newsletters, document search and filing services, and seminars and databases for businesses and professions. Simon & Schuster currently holds leadership positions in virtually every major segment of the book publishing industry and has a worldwide publishing and distribution capacity. Time, through The Time Inc. Magazine Company, publishes TIME, FORTUNE, SPORTS ILLUSTRATED, PEOPLE, MONEY and LIFE magazines, and through Southern Progress Corporation, publishes SOUTHERN LIVING, PROGRESSIVE FARMER, SOUTHERN ACCENTS, COOKING LIGHT and TRAVEL SOUTH magazines. Time's book publishing operations include Time -Life Books and Book -of -the -Month Club, as well as Scott, Foresman and Company, a large domestic textbook publisher, and Little, Brown, which publishes general and children's trade books and legal and medical reference books and textbooks. 3 7 8 7 D CITY OF ITHACA 108 EAST GREEN STREET ITHACA, NEW YORK 14850 OFFICE OF TELEPHONE: 272-1713 CITY ATTORNEY CODE 607 MEMORANDUM TO: Coo ' e ' :: ol. - geli, City Clerk FROM: Ra L - sh, City Attorney DATE: April 18, 1988 RE: Public Hearing on Cable Ordinance Enclosedis a public notice for the public hearing scheduled for the May 4th Common Council meeting on this matter. There will be no public meeting on the negotiating committee prior to this Council meeting. I am also enclosing a copy of the present draft of the franchise agreement. I suggest you have copies made to make available to the public upon request. RWN:blh enc. "An Equal Opportunity Employer with an Affirmative Action Program" LEGAL NOTICE PLEASE TAKE NOTICE that the Common Council of the City of Ithaca will hold a Public Hearing on adoption of a new. Cable Franchise Agreement for the City of Ithaca with American Community Cablevision on Wednesday, May 4, 1988, at 7:30 p.m. at Common Council Chambers at City Hall, 108 East Green Street, Ithaca, New York. The main provisions of the proposed new franchise agreement are as follows: 1. RATES FOR BASIC SERVICE: $9.00 as of 2/1/88; $11.00 as of 3/1/89; $12.10 as of 3/1/90; $13.31 as of 3/1/91; $14.64 as of 3/1/92 and 5% annual rate increases thereafter; 2. REBUILD OF SYSTEM: to be completed by 3/1/89. 50 additionalfree cable drops for City buildings. 3. ACCESS COMMITMENTS: $165,000 for new equipment; 2% commitment of City revenues annually; two full time staff persons now; three after 3/1/89, four after 3/1/93 and five after 3/1/98; nine downstream channels dedicated to PEG access. 4. INSTITUTIONAL NETWORK: ACC will construct and maintain an institutional network connecting City Hall, Cornell University, Ithaca College, Tompkins County Library, Ithaca High School, Boynton Junior High School, The Alternative School, Ithaca Youth Bureau, GIAC, Police Headquarters, Central Fire Station and the City Bus Garage, with commitment of one upstream channel for ,public use. •5. FRANCHISE FEE: ACC will pay to the City a franchise fee in the amount of 5% of City -generated revenues. 6. TERM: •Fifteen years if approved by the State Cable Commission. •'�^=cr.3t%^in_i '_�`sR.._`^G-a�:J"'.,r:.Zi`I.Sic''.S'b".:..*9'b']A...."s':h'lt'Cifn�.-:....'-.Et?C�•:"3:-.t.<.r�ir':.+R.'..+' cZSC..::•:::.t:.<"i... _.....f....:' iii+ a..t.__..u`rT`-:'...i...'•:'raT'.�,,u'C.a . '.....�yy�: "T "`✓i?:' wr`:u�iL::tC'g.= s%._`: `a.. as........a_ 7. ENFORCEABILITY OF TERMS: ACC reserves the right to challenge enforcement of provisions of the franchise and cable ordinance should similar provisions be declared unlawful by the Courts. ACC and the City are committed to negotiating comparable. valid provisions for any provisions later found to be unlawful. Copies of the proposed agreement can be obtainedfrom the City Clerk's Office. BY AUTHORITY OF THE COMMON COUNCIL Dated: APRIL 23 , -1988 OF THE CITY OF,. ITHACA, NEW YORK CALLISTA F. PAOLANGELI, CITY CLERK ACC AIVJRICAN OOiVii\[J\ r 'Y OABT 1 V Si0\ ANNUAL REPORT FISCAL YEAR 1 9 8 6- 1 9 8 7 AIVJRICAN OOLViLT\ ICY CABT 1iVSIOi ANNUAL REPORT FISCAL YEAR 1 9 8 6- 1 9 8 7 Contents Letter from the General Manager 1 Financial Performance 2 Subscriber Growth 2 Customer Service 2-3 Repair and Maintenance 3 Line Extensions and Rebuild 4 Community Service 4 Local Programming 5 Public Access Television/ Cable 13 5-6 Cable Advertising and Production 6 ACC -1 Vii0 6 Staffing 7 Refranchising 7 Future 7 Audited. Financial Statements 8-10 1986-87 Line Extensions 10 Rebuild 1986-87 11 ©1987 American Community Cablevision, 519 West State Street, Ithaca, NY 14850; 607/272-3456. PHOTO CREDITS: Candid Photo, 6; Regina Deschere, cover, 4, 7; Patricia Reynolds, 5. October 1987 Once each year it proves worth- while to stop and reflect, to look back over the past 12 months to review accomplishments, to look back at long-term trends, and to look ahead to the chal- lenges offered by a future that is, for American Community Cablevision, full of change. ACC enjoyed a particularily success- ful 1987 fiscal year. We continued to improve our programming lineup wherever possible, introducing expanded local programming and adding pay-per-view movies. We further developed our excellent customer service abilities, watched as our aggressive system mainte- nance program again significantly reduced service calls, and con- structed a near -record number of line extensions to reach even more customers. Our community outreach efforts also expanded significantly, and our newer, ancillary business activities —Cable•Ads, Video Image Produc- tions and ACC-TVRO—continued their steady growth. Our financial performance was down slightly during 1987, but only because we invested in system improvements that will provide long-term benefits to our customers. Our decision to postpone a 6.25 percent basic service price increase planned for February had a negative effect on our net income, as did the cost of our refranchising efforts with the City of Ithaca. We also spent a great deal of time planning for the future. A total rebuild of our system will start in 1988, making possible expanded programming offerings and addi- tional services for our customers. A tremendous amount of staff time was devoted to planning for this project during fiscal 1987, and we are anxious to begin work as fiscal 1988 begins. The report that follows is a sum- mary of 12 months of continued growth, improved customer service and satisfaction, and consistent outreach to our customers and our community. (Ame, Michael M. Withiam General Manager 1 financial performance ACC achieved a positive return on investment for the fourth consecutive year during fiscal 1987. ACC's net income was $159,266 during the year, down 43 percent from $280,638 during fiscal 1986. Two primary factors were responsi- ble for the decline in net income: increased investment in system expansion, and ACC's decision to postpone a planned price increase during the second half of the fiscal year. A complete financial report is available in the Audited Financial Statements on pages 8-10. Su 3scri Growh per Steady growth of basic sub- scribers (1.4 percent) continued throughout the year. Expanded Tier and Premium channel units exceeded basic subscriber growth with 4.7 percent and 1.7 percent growth respectively. The significant decrease in subscribers from April to July, and subsequent increase from July to October in the chart below reflects the annual mi- gration of college students to and from the Tompkins-Tioga county area. Since the expansion of our channel lineup in 1984, when we added two premium channel services and ten basic tier cable services, our basic customers have increasedby nearly 2,500. Subscription to premium services has increased by 76 percent and the number of customers enjoy- ing our Expanded Tier has nearly doubled during that three-year period. Strong customer acceptance of our improved product and service, increased marketing and sales activ- ity, and greater focus on service and sales training with our customer - contact employees have contributed to these gains. Over the next few years we expect to see accelerated growth of Ex- panded Tier and Premium services through further enhancements of our channel lineup during the rebuild of our system, and a focus on increased value of the pay services through new packaging and pricing of our services. Customer Service American Community Cable- vision has made many positive changes towards improved customer service in the past year. In the areas of installa- tion, repair and maintenance of the cable system, we have added personnel to insure timely responses to customer needs. These staff additions have included one repair dispatch representative and two instal- lers. For added customer con- venience, we have instituted specific morning and afternoon appointments for those cus- tomers who need them. The business office at .American Community Cablevision saw many customer -positive changes this past year. Fiscal 1987 was the first full year of cycle billing for ACC custom- ers. We mail invoices in two cycles to even out the number of customers receiving their bills at any one time, making it easier for customers to contact our office with questions. The ability of our customers to reach us by phone is an important aspect of customer service, and we monitor that activity carefully. We estimate that our customers make more than 35,000 calls to ACC each year, and that we make more than 26,000 outgoing calls to reach customers with pre -appointment reminders, service or installation follow-up calls, past due account follow-up, and other customer outreach services. Month Basic Service Expanded Tier Premium 'Units July'86 October '86 January '87 April '87 July'87 21,800 23,500 24,150 24,250. 22,112 13,250 14,925 15,500 15,825 13,869 12,975 14,002 14,675 14,850 13,199 2 The collection procedures for past due accounts have been expanded to include the mailing of three past due invoices and at least one attempted personal phone call from one of our customer service representatives prior to any disconnection of service. We've also made important modifi- cations to our Cable -Watch pro- gramming guide, which is sent free each month to each of our custom- ers. These changes include a more detailed listing of our premium channel offerings, a revised and expanded prime -time grid listing, and listings for the various broad- cast networks available on our cable system. Our technical and front office personnel benefit from on-going trailing programs in such areas as customer relations, programming knowledge, cable TV and VCR com- patability and of course, training specific to the employees' role in the company. Re pair anc Vaintenance For the third straight year, ACC has also shown a substantial decline in the number of re- quests for repair service. During fiscal 1987, ACC responded. to 5,126 service requests, a decline of 815, or 13.7 percent, from the previous year. Service requests cover a wide range of activities including drop and cable repair, converter repair, amplifier repair, customer education and outages. TOTAL SERVICE CALL REPORT JULY 1, 1986 — JUNE 30, 1987 Franchise Franchise Number Name Total Calls 1 City of Ithaca 2 Town of Ithaca 3 Village of Cayuga Heights 4 Trumansburg 5 Village of Candor 6 Town of Caroline 7 Village of Lansing 8 Town of Dryden 9 Town ofNewfield 10 Town of Lansing 11 Town of Ulysses 12 TownofDanby 13 Village of Newark Valley 14 Village of Groton 15 Town of Groton 16 Village of Dryden 17 Village ofFreeville 19 Town of Candor 20 Town of Newark Valley 1733 902 237 94 93 88 257 554 186 292 73 75 56 159 45 93 33 115 41 TOTAL 5126 During the past three years, ACC's aggressive preventive maintenance and testing program has helped reduce the number of requests for repair from 8,930 in 1984 to this year's 5,126. This decline represents 3,804 fewer requests for repair, or a 42.6 percent decrease over three years. It is important to note that this repair record has been established during a period of steady growth for ACC. During the same three-year period that service requests dropped 42.6 percent, our average customer base increased by almost 14 percent. Another way to look at this perform- ance record is service requests per customer. In 1984, ACC received one service request for every 2.3 custom- ers; in 1987, we received one request for every 4.6 customers. The following chart illustrates this improvement quite graphically. • — AVERAGE NUMBER OF SUBSCRIBERS ❑ — NUMBER OF SERVICE REQUESTS 24,000 22,000 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 1 9 8 4 1 9 8 5 1 9 8 6 1 9 8 7 The decline in service calls canbe easily measured in the ratio of service calls to basic customers: Fiscal 1984: 1 service call per 2.31 customers Fiscal 1985: 1 service call per 3.0 customers Fiscal 1986: 1 service call per 4.59 customers During the fiscal year endedJune 30, 1987, ACC also receivedwritten correspondence from customers which included 78 letters regarding billing concerns, 10 letters regarding channel lineup changes, 15 letters regarding our programming guide and 65 letters on various general cable issues. 3 �e H �)cJensions an C_ 1€ In an effort to bring cable television into more homes, ACC has maintained an aggressive approach on line extensions of our cable plant. Traditionally, ACC has built line extensions when an area would provide us with at least 35 passings per mile. During the past two years, we have relaxed that standard somewhat and will now build areas with 25-30 homes per mile when it appears likely addi- tional homes will be built in the area. Page 10 lists all of our line extension activity during fiscal 1987. ACC's plant maintenance program includes the rebuild of many small portions of our system. We often replace segments of our plant when it becomes worn. Other activities that result in rebuild include highway construction, building work, or plant upgrades to support line extensions. Page 11 lists our rebuild activity for fiscal 1987. One of the many ACC bucket trucks, gassed up and ready to go. Above is our new satellite receiver, installed to collect additional programming. CommLnity Se -'ice One ofbusiness' most important responsibilities is to be a good neighbor in the community. As a media company, ACC provides its neighbors with the means to convey vital health, cultural, and service announcements. During the fiscal year, ACC pro- duced and cablecast public service announcements for such organiza- tions as the United Way of Tompkins County, Salvation Army, and the Ithaca Opera Society. Also during the period, Cable 13 aired an addi- tional 85 announcements produced by community access volunteers. The "Community Bulletin Board" has featured several hundred public service announcements during the year. ACC receives such a large vol- ume of information that occasion- ally we exceed our abilities to air each notice. With the coming system rebuild however, we will expand our capacity for announcements. Conversations with customers, letters received, and periodic sur- veys have provided us with valuable information for us to gauge our service to the community. It's been heartening to receive such a large volume of appreciative letters about our Cable 13 programming and Cable NewsCenter 7 reporting. ACC made efforts to support a num- ber of community organizations during the fiscal year. With the assistance of the Kitchen Cupboard and Loaves & Fishes, ACC collected over 1,000 cans of food for those in need during the Holiday Season. Our production unit, Video Image Productions, produced the United Way of Tompkins County's broadcast campaign commercial spots, and our CableAds department provided $5,800 worth of commercial time to cablecast the spots. The company also joined the City of Ithaca's Cen- tennial Commission to help prepare for the milestone birthday year. The education of our youth remains an ACC priority. The company spon- sored the TIME Education Program in two community schools—the TIME Education Program includes a one year's subscription to TIME magazine for each social studies student and weekly teacher's guides to further stimulate student knowl- edge of world and national events. Major recipients of ACC donations this fiscal year include the Tomp- kins Cortland Community College Foundation, Tompkins County Arts Council, and the Women's Commun- ity Building. The donation for the Women's Community Building in- cluded a video to promote a fund- raising campaign. 4 Local Progra • 1110 CABLE NEWSCENTEA 7. When it premiered July 1,1986, Cable NewsCenter 7 became the only live, local news program pro- duced by a cable television company in upstate New York, and remains one of a very few cable -produced live news pro- grams in the nation. In its first year of operation, Cable News - Center 7 established itself as a reliable news source within the community and expanded its coverage to include live cable - casts at both 6 and 11 p.m. each weeknight. A recent survey ranked the program as the second -most watched nightly newscast among regular news view- ers in our community, just half a percentage point behind the leader, and gave the program high marks for its coverage oflocal issues. This is a great achievement for our news team, given the fact that on our 12 -channel basic service we carry ten broadcast -signals, all with nightly news programs. In addition to Cable NewsCenter 7, ACC produces local public affairs programming. "Our Community" highlights community service organizations; "For the People" features discussion on local politi- cal issues; and "NewsForum 13" serves as a "Meet the Press" -style interview show. Molly Cummings and .Rob Jason, co-anchors of the Cable NewsCenter 7 week- night news program, the only cable TV -produced news show in upstate New York. Pubic Access Television) Cele 13 Our community, with its strong sense of spirit, has motivated over 200 organizations and civic groups to become involved in the production of local programming through ACC's public access studios. During 1986-87, the access studio dramatically increased activities on all fronts: • cablecasting hours doubled • the number of active volunteers using the facility each month and the number of new shows produced each month also doubled • our long-standing training pro- grams were expanded to include regular monthly training courses with special seminars on advanced topics • a vigorous advertising campaign was put in place, highlighting special projects such as the Holiday Food. Drive, undertaken in coopera- tion with other ACC departments. The number of volunteers and vol- unteer productions continued to grow throughout the year. During the fall of 1986, more than 40 new productions per month premiered on Cable 13. As this fiscal year came to a close, the number of new produc- tions rose to over 60 per month. Similarly, the number of active volunteers per month, which in- creased from 50 to 100 last fall, averaged 150 this spring. (There is now a pool of over 500 trained public access volunteers in the community.) Volunteers used 60 percent to 73 percent of the approximately 450 hours per month of studio and edit- ing time available; about 100-120 hours of studio time and 200 hours of editing time is used by volunteers every month. A number of special events were undertaken by Cable 13 this spring. April's third annual Awards for Cable Excellence (A.C.E.) were special in that a large number of access volunteers entered the com- petition and were recognized for their work. In 1986, only three access -produced programs received awards, while eight outside -access (Ithaca College and Tompkins County Library) productions were honored. This year, 18 volunteer productions were entered; seven awards went to public access and six to non -access producers. 5 The first Upstate Media Conference was held in May at Cornell Univer- sity's Johnson Art Museum and co-sponsored by Cable 13. The well - attended meeting provided a fine opportunity for volunteers to meet other videomakers here in Ithaca and in the surrounding region. Public access volunteers continue to send their work outside of our community for grants, contests, festivals, and to other access centers. • Cortland. Access Festival, March 1987, included three tapes produced at Cable 13, and one pro- duced at Ithaca College. One Cable 13 entrant won third place. ■ Third. International Women's Day Festival and Public Access TV Show, Boston, March 1987, one Cable 13 tape represented. The program was an episode of `Bad TV," a series which can now be found in the libraries of the Experimental TV Center, Owego, NY; the Media Bureau, New York City; and RAD TV, in California. • The Hometown USA (NFLCP) Award for Innovative Program- ming, May 1987, was won by a Cable 13 production. The Most Creative Series was won by Deep Dish (in- cluding one segment from an Ithaca volunteer). These awards included prizes and national distribution. ■ Ithaca Festival, June 1987, Mixed Media event at Cinemapolis included seven access productions. In sum, there are many more com- munity members involved in public access than ever before. Community members now spend an aggregate of 1200 hours per month making com- munity television, versus only 200 hours per month two years ago. I987ACE winners and friends: (standing, left to right) Chris Sperry, Ian Macintosh, Chris Osborn, Robin Wickman, ClemensAdler, Jacqueline Sawyer, Luin Goldring, Mary Jo Dudley, .Laurel Hecht, EIoise Brush, Mary Milne, Gossa Tsegaye, Gene Ira Katz, and Terry Harbin. (Seated, left to right): Lauren Stefanelli, George Spisak, Lisa Cramer, and Rick .Lawrence. Cele Ac Ver-Asing enc Promotion During the past two years, ACC has launched a number of new sub -businesses, among them Cable•Ads and Video Image Productions. CAELE•ADS makes possible afford- able television advertising targeted to specific local audiences. Cable•Ads serves its customers by working effectively to build traf- fic for local retailers. Local adver- tisements appear on Cable News - Center 7, ESPN, CNN, MTV, and USA Network. Working closely with Cable• Ads is ACC's production unit, VIDEO IMAGE PRODUCTIONS. Besides creating 30- and 60 -second commer- cials for Cable•Ads, Video Image Productions produces industrial videotapes for training and sales presentations and produces com- mercials for other area cable op- erators. VIP was formed in late 1986. ACC-TVRO Service to Satellite Dish Owners. Many residents of rural areas where cable is not economically feasible have relied upon their backyard satellite dishes to bring clear sat- ellite television signals to their homes. When cable programming services began scrambling inJanu- ary 1986 to prevent unauthorized reception of their product, ACC responded by offering dish owners a subscription service and decoder unit at a fair monthly rate, making reception of the scrambled signals possible. More than half of the dish owners in our service area have taken advantage of ACC -TYRO service. We presently serve over 200 customers with more than 600 programming units. 6 Staffing ACC continued to serve the community as an important employer during fiscal 1987, adding 10 full-time and three part-time positions. ACC em- ploys 72 people, 60 full time and 12 part time, and expects to add an additional 7 to 10 positions during the coming fiscal year. The staff additions included two installers, a second service dis- patcher, one local programming assistant for Cable 13, two produc- tion assistants for Video Image Productions, and four full-time and three part-time positions for Cable NewsCenter 7. ACC's management structure saw change during the spring of 1987. In April, Mike Withiam replaced Georgia Griffith as general manager. Withiam, an Ithaca native, had been the operations manager at ACC for two years before being promoted. Elaine Jones replaced Withiam as operations manager, bringing with her more than six years of cable television experience from four New Jersey cable systems prior to joining ACC. ACC also consolidated its manage- ment structure during the spring. Neal Rogachefsky, marketing manager for the past three years, gained responsibility for ACC's Cable•Ads and TVRO satellite dish service. Julie Fox, news director for the past year, assumed responsibil- ity for all video -related services, including Cable NewsCenter 7, Cable 13, and Video Image Produc- tions. Reporting to Fox are Molly Cummings and Rob Jason, Cable NewsCenter 7 co-anchors; Gene Ira Katz, public access coordinator; and John Woods, manager of Video Image Productions. Michael Brand, one of the new ACC installers added to our technical staff. Pat Hourigan, chief engineer for the past five years, and Carolyn Herrewyn, office manager for the past six years, continue in their roles, focusing on ACC's primary cable business. Regina Deschere joined the management team as public affairs director. 19.e -tar -IC 'L.Strig Another important focus of our activity during fiscal 1987 was the attempted negotiation of a renewed franchise with the City of Ithaca. That process, as this report was prepared, has reached an impasse and appeared headed toward formal discus- sion under the provisions of the Cable Communications Policy Act of 1984. Our negotiations with the City of Ithaca are the first of what will be a series of proposed franchise re- newals and/or extensions with the various municipal governments within our service area. During the next three years, more than one-half of our current operating franchises expire. ti,re The next three years hold great challenges for all of us at ACC. We will be totally rebuilding our cable system during that period, expanding our channel capacity from 25 to 60 channels. This ex- pansionwill allow us to provide a much wider range of program- ming and information services. This project will require us to contact every one of our customers to explain the changes they will see in their cable service. The extra workload means additional staff, expansion of our office space, and, most likely, new billing and tele- phone systems. The technical changes will mean new and even more extensive training programs for our staff, even more constant customer communication, and an even greater focus on our customer service goals. 7 Audited �`ln ci Statemenrs AMERICAN COMMUNITY CABLEVISION Division of American Television and Communications Corporation JUNE 30, 1987 AUDITOR'S REPORT Ernst & Whinney 4300 Republic Plaza Denver, Colorado 80202 303 /534-4300 The Board of Directors American Television and Communications Corporation.. We have examined the statement of assets, liabilities and net assets ofAmerican Community Cablevision Division ofAmeri- can Television and Communications Corporation as of June 30,1987, andthe related statement of revenues and expenses and changes in net assets for the year then ended. Our exami- nation was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered neces- sary in the circumstances. As described in Note 1, American Community Cablevision is one of several divisions and subsidiaries of American Television and Com- munications Corporation, and has material transactions with its affiliates. In our opinion, the financial statements referred to above present fairly the assets, liabilities and net assets of American Community Cablevision Division of American Television and Communications Corportion at June 30, 1987, and its revenues and expenses and changes in net assets for the year then ended, in conformity with generally accepted accounting principles applied as described in Note 1 and in a manner consistent with that of the preceding year. Denver, Colorado August 28, 1987 8 STATEMENT OF ASSETS, LIABILITIES AND NET ASSETS Year Ended June 30, 1987 ASSETS Cash—Note 3 Accounts receivable, less allowance for doubtful accounts of $74,151 Prepaid expenses and supplies Property, plant and equipment, at cost—Note 2: Land, building and improvements Distribution system Vehicles and other equipment Construction in progress $ 482,502 8,720,460 1,279,160 123,149 10,605,271 Less accumulated depreciation (4,854,637) Net property, plant and equipment Franchise costs, less accumulated amortization of $881,729—Note 2 Other assets $ 242,639 108,803 59,630 5,750,634 1,377,932 3,500 $7,543,138 LIABILITIES AND NET ASSETS Accounts payable Accrued liabilities Subscribers' advance payments and deposits Net assets—Note 1 $ 140,557 467,421 400,284 1,008,262 6,534,876 $7,543,138 STATEMENT OF REVENUES AND EXPENSES AND CHANGES IN NET .ASSETS Year Ended June 30, 1987 Revenues: Service Connection and other Expenses—Notes 1 and 2: Operating and origination Selling, general and administrative Depreciation and amortization Interest $4,592,877 938,211 2,114,266 1,654,504 1,081,947 383,105 Income before charge in lieu of income taxes Charge in lieu of income taxes—Note 5 Net income Net assets at beginning of year Net repayment of advances from corporate office Net assets at end of year NOTES TO FINANCIAL STATEMENTS June 30, 1987 1. BASIS OF PRESENTATION. The Division is principally engaged in the operation of a cable televisionbusiness, including premium programming. It operates in the City of Ithaca, NewYork and contiguous areas under nonexclu- sive franchise agreements which are in effect until 1991. The Division has no separate legal status or existence. Its resources and existence are at the disposal of American Television and Communications Corpo- ration (ATC) management, subject to contractual commitments by ATC to perform certain long-term contracts within the present divisional structure. Its assets are legally available for the satisfaction of debts of the entire corporation, not solely those appearing in the accompanying statements, and its debts may result in claims against assets not appearing therein. It is one of several divisions and subsidiaries of ATC, and transactions and the terms thereof may be arranged by and among members of the affiliated group. ATC is an 82% owned subsidiary of Time Incorported (Time). The Division records charges for selling, general and administrative expenses that are directly associated with it and a portion of the ATC expenses ($384,752 for the year ended June 30,1987) which are allocated to divisions and sub- sidiaries based upon subscriber levels. Interest charged to the Division byATC ($383,105) was computed by multiply- ing 70% of the Division's average net assets (computed using beginning and end of year balances) by the average interest rate (8.21% for the year ended $5,531,088 June 30, 1987) on ATC's outstanding borrowings. 5,233,822 297,266 138,000 159,266 6,797,485 (421,875) $6,534,876 See notes of financial statements. 2. SIGNIFICANT ACCOUNTING POLICIES. Property, plant and equipment: Depreciation is provided on the straight-line basis over the estimated useful lives of the assets as follows: Building & improvements -10-20 years Distribution system -8-15 years Vehicles & other equipment -4-10 years Franchise costs: The Division has deferred costs incurred to acquire the _ franchises. Amortization of franchise costs is provided on the straight-line basis over periods of up to forty years. 9 3. RESTRICTED CASH. Cash is restricted in the amount of converter deposits ($172,087 at June 30, 1987). This amount is held by the Division and is refundable to customers. 4. RELATED PARTY TRANSAC- TIONS. The statement of revenues and expenses and changes in net assets includes charges for programming and promotional services provided by Home Box Office Incorporated, a subsidiary of Time. These charges were based upon customary rates. 5. INCOME TAXES Operating results of the Division are included in the consolidated federal income tax return of Time. In lieu of income taxes, ATC charges the Division an amount which approxi- mates statutory state and federal income tax rates on pretax income, less investment tax credits (ITC) on current year property additions. For the year ended June 30, 1987, ITCs utilized was approximately $28,000 and a provision of approximately $13,000 has been charged for a reduction in basis of certain property, plant and equipment due to investment tax credit utilized. ITC is accounted for by the flow-through method. 6. LEASES. Rental expense for the year ended June 30, 1987 amounted to $72,533. The Division had no significant noncancelable rental commitments. 1986-1987 line Ocensions DATE FRANCHISE LOCATION FOOTAGE PASSINGS 06-25-86 City of 12-10-86 Ithaca 12-29-86 09-01-86 12-12-86 12-09-86 1 225 EDDY STREET 1 HANCOCK STREET 1 EAST STATE STREET 1 SCHUYLERHOUSE 1 WYCKOFFAVENUE 1 FAYETTE & WEST CLINTON 81 193 175 149 439 65 8 UG 1 AE 13 UG 80 UG 15 AE 53 UG TOTALS 1102 170 12-09-86 Town of 06-02-86 Ithaca 05-22-87 01-30-87 07-14-87 09-16-86 06-27-87 06-11-87 06-03-87 07-21-87 12-08-86 06-01-86 2 EAST KING ROAD 2 PENNY LANE 2 PAST Mu PLAZA 2 ROUTE 79 2 WESTHAVENROAD 2 FAIRWAYDRIVE 2 W00DGATELANE 2 SEVEN MILE DRIVE 2 SUNNYVIEWLANE 2 DANBY ROAD 2 LEXINGTON DRIVE 2 GRANDVIEW 236 939 455 350 360 1405 458 1532 732 1029 540 2020 1 14 80 20 3 17 2 17 16 12 10 26 AE UG UG UG AE UG AE UG UG UG UG UG TOTALS 10056 218 08-01-86 Cayuga Heights 3 LOWELLPLACE 814 8 UG 07-08-87 Trumansburg 4 KING STREET 889 3 AE 06-16-86 Brooktondale 07-27-87 02-01-87 6 BROOKTONDALE ROAD 6 SLATERVIT,T.F ROAD 6 BROOKTONDALE ROAD 375 257 295 1 AE 1 AE 4 AE TOTALS 927 6 07-01-86 Village of 08-01-86 Lansing 7 EDELMANSUB-DIVISION 7 SHANNON PARK 570 2990 20 UG 35 UG TOTALS 3560 55 06-10-87 Town of 06-01-87 Dryden 08-01-86 8 HICKORYROAD 8 TANNERY CIRCLE 8 LOGANSRUN 310 2215 1436 1 UG 24 UG 13 UG TOTALS 3961 38 07-01-86 Newfield 08-01-86 07-16-87 9 SHAFFER ROAD 9 WARDS TRAILER PARK 9 364 MAIN STREET 330 290 656 2 AE 6 UG 3 AE TOTALS 1276 11 08-01-86 Town of 03-09-87 Lansing 09-20-86 10-09-86 10 FOREST ACRESDR1v.h, 10 MYERS MARINA 10 LANSING STATION ROAD 10 16LEROYAVENUE 1400 615 382 500 11 UG 36 UG 1 UG 1 AE TOTALS 2897 49 09-02-86 Ulysses 11 ITHACAYACHT CLUB 250 1 AE 06-27-87 Danby 07-31-87 12 ROUTE 96-1/2 12 GUNDERMANROAD 545 1175 3 UG 3 AE TOTALS 1720 6 11-24-86 Village of 13 ROCK STREET Newark Valley 220 1 AE 07-01-86 Village of 16 FERGUSON 07-01-86 Dryden 16 HILTON ROAD 875 1260 8 UG 15 UG TOTALS 2135 23 12-31-86 Town of Dryden 18 DODGE ROAD 2081 2 AE 07-03-86 Town of 20 BRIDGE STREET 386 2 AE Newark Valley GRAND TOTALS 32274 593 6.1126 MILES UG = Underground .AE = Aerial 10 Re� 3 c 1986-1987 DATE FRANCHISE LOCATION FOOTAGE 11-25-86 City of 1 STEWARTAVENUE 02-05-87 Ithaca 1 DRYDENROAD 12-23-86 1 MEADOW STREET 01-21-87 1 EAST STATE STREET 11-06-86 1 HANCOCK STREET 08-12-86 1 BARTON 421 AERIAL 2423 AERIAL 1133 AERIAL 2052 AERIAL 105 AERIAL 142 AERIAL TOTALS 6276 08-06-86 Town of 2 STONE QUARRYROAD 02-05-87 Ithaca 2 SNYDER HILL ROAD 08-04-86 2 CODDINGTONROAD 10-16-86 2 CODDINGTONROAD 12-10-86 2 EAST KING ROAD 12-11-86 2 RIDGECREST 3150 AERIAL 1553 AERIAL 550 AERIAL 1246 UG 2155 AERIAL 300 AERIAL TOTALS 8954 08-12-86 Cayuga 06-01-86 Heights 06-18-86 06-23-86 3 RIDGEWOOD 3 400 TRIPHAMMER ROAD 3 COMSTOCKAC•INFWOODS 3 ROUTE 13 301 AERIAL 300 UG 1799 AERIAL 1817 AERIAL TOTALS 4217 03-12-87 Trumansburg 4 PENNSYLVANIAAVENUE 06-23-86 4 SOUTH STREET 2170 AERIAL 450 AERIAL TOTALS 2620 01-22-87 Village of Candor 5 MILL STREET 936 AERIAL 06-27-87 Brooktondale 6 BROOKTONDALE ROAD 10-28-86 6 R0UTi 79 02-12-87 6 ROUTE 79 3959 AERIAL 1293 AERIAL 2144 AERIAL TOTALS 7396 06-25-87 Village of 7 GRAHAM ROAD 09-10-86 Lansing 7 WARDS 2731 AERIAL 230 AERIAL TOTALS 2961 11-07-86 Town of 05-28-87 Dryden 06-01-87 8 SUNSET WEST CIRCLE 8 HANSHAWROAD 8 HANSHAW ROAD 950 AERIAL 188 UG 190 UG TOTALS 1328 01-02-87 Newfield 9 TRUMBULLS CORNERS 02-13-87 9 WARDS TRAILER PARK 521 AERIAL 50 AERIAL TOTALS 571 12-05-86 Town of 10 ROUTE 34 01-02-87 Lansing 10 LANSING STATION ROAD 250 AERIAL 1819 AERIAL TOTALS 2069 11-04-86 Ulysses 11 ROUTE 89 07-29-86 11 MAPLEWOOD 222 AERIAL 1542 AERIAL TOTALS 1764 03-24-87 Danby 12 EAST MILI.F,RROAD 2400 AERIAL 02-05-87 Town of Groton 15 ROUTE 38 2819 AERIAL 02-12-87 Village of 16 MILL STREET 225 AERIAL Dryden 11-26-86 Town of 18 TWEITMANN 02-25-87 Dryden 18 LOWER CREEK ROAD 06-19-86 18 ROUTE 79 1012 AERIAL 350 AERIAL 256 AERIAL TOTALS 1618 08-06-86 Town of 20 ROUTE 38 Newark Valley 4453 AERIAL GRAND 50607 TOTALS 9.59 MLLES UG = Underground 11 OFFICE OF MAYOR CITY OF ITHACA 108 EAST GREEN STREET ITHACA, NEW YORK 14850 MEMO TO: Joseph Rundle, City Clerk FROM: Mayor John C. Gutenberger DATE: April 3, 1984 SUBJECT: Application of American Television and Communications Corporation for Approval of an Amendment to its Cable Television Franchise for the City of Ithaca (Tompkins County) APR . .L e g4 Irak fa TELEPHONE: 272-1713 CODE 607 Attached hereto please find a fully executed copy of the above entitled matter received today from Attorney John L. Grow for permanent filing. ATTACH. CC: L. Richard Stumbar, Corporate Counsel Raymond Schlather, Charter and Ordinance "An Equal Opportunity Employer with an Affirmative Action Program" JOHN L. GROW ATTORNEY AT LAW E E VED APR 3 in. March 30, 1984 John Gutenberger, Mayor City of Ithaca 108 East Green Street Ithaca, New York 14850 AUGUR BLOCK - POST OFFICE BOX 165 COOPERSTOWN, NEW YORK 13326 TELEPHON Re: Application of Amer rcf an Television & Communications Corporation for Approval of an Amendment to its Cable Television Franchise for the City of Ithaca (Tompkins County) Dear Mr. Gutenberger: I enclose herewith on behalf of American Television & Communcations Corp. a true copy of the application to the New York State Commission on Cable Television for approval of the amendment to the City:,of Ithaca franchise approved by the Common Council by Resolution adopted February 27, 1984. Service of a copy of the complete application at this time is required by Section 592-1.6(b)(6) of the Rules and Regulations of the StatesCommission. Please note that the copy of: -the franchise attached to the application is one of three copies with the original signatures of James Deniais;-: , Acting Mayor on behalf of the City and Anthbny Esposito, Vice -President of ATC. A second originally:•executed c:opy-_.gagincluded with the original application to the Commission and the final executed copy is being retained by the company. JLG: smb cc: L. Richard Stumbar Corporate Counsel Very ttuly yours, STATE OF NEW YORK COMMISSION ON CABLE TELEVISION In the Matter of the Application of American Television & Communications Corporation for Approval of Amendments to a Cable Television Franchise for the City of Ithaca (Tompkins. County) CAT ION TO THE COMMISSION: American Television & Communications Corporation (herein- after referred to as an Applicant) hereby applies for approval of amendments to its cable television franchise for the City of Ithaca, County of Tompkins, State of New York. This application is submitted pursuant to Section 822 of Article 28 of the Executive Law and includes the information required by Part 592-1 of the Commission's Rules and Regulations as follows: 1. The applicant is a.Delaware Corporation, authorized to do business in the State of New York, with its principal office at 160 Inverness Drive West, Englewood, Colorado, 80110, telephone number (303)773-3411. 2. The municipality which has approved the instant amendments is the City of Ithaca, a municipal corporation in the County of Tompkins, State of New York, with a principal office at 108 East Green Street, Ithaca, New York, 14850, tele- phone number (607)272-1713. The amendments were approved by the Common Council of said city by Resolution adopted February 27, 1984. •.t 3. A true copy of the complete text of the Amended Fran- chise together with a true copy of the resolution approving the same is attached hereto as Exhibit "A". 4. The amendments were approved by the City of Ithaca following a public hearing upon due notice. Said public hearing was held in the Common Council Chambers, City Hall, 108 East Green Street,in the City of Ithaca, New York, on November 21, 1983 at 7:30 o'clock p.m. A true copy of the public notice together with affidavit of posting and publication thereof is attached hereto as Exhibit "B". 5. A complete copy of this application has been served upon the mayor of the City of Ithaca. An affidavit of service by mail of such copy is attached hereto as. Exhibit "C". 6. The amended franchise contains in Section 11 of the agreement a revised schedule of rates and charges for cable television service within the City of Ithaca which schedule effects a change in vides for increases sion service in two stages. changes in Sections 10, 14., certain existing rates and charges and pro - in the monthly rate for basic cable televi- The amended franchise also includes 17, 20, 31, 33, 35 and 36. 7. The applicant, the cable television system operating in the City of Ithaca and the subject amendments all substan- tially conform to the provisions of Article 28 of the. Executive Law and the Commission's Rules and Regulations and the proposed amendments will not be in violation of, or inconsistent with, -2- any applicable federal, state or municipal law, ordinance or regulation and are consistent with the public interest. WHEREFORE, Applicant respectfully requests that the Commission approve the amendments to its cable television franchise for the City of Ithaca. Dated: March 28, 1984. JOHN L. GROW Attorney at Law Office & P.O.. Address Augur Block -Pioneer Street P.O. Box 165 Cooperstown, New York 13326 (607)547-8220 STATE OF NEW YORK ) ss.: COUNTY OF ALBANY ) CORPORATE VERIFICATION ANTHONY ESPOSITO, being duly sworn, deposes and says: 1. Deponent is the Vice -President of American Television & Communications Corporation, the corporation named as Applicant in this proceeding; that deponent has read the foregoing Application and knows the content thereof; and that the same is true to deponent's own knowledge, except as to matter therein stated to be alleged on information and belief and as to those matters deponent believes it to be true. Sworn to before me this t day of March, 1984. /r /- Not r, Public -State of New York My oission Expires 3/30/86r C • AN .,ONY ESPOST�O e -President TELEVISION CABLE FRANCHISE Agreement made this 20th day of January , 1978, by and between the CITY OF.ITHACA, a municipal corporation duly organized and existing under and by virtue of the laws of the State of -New York, party of the first part, Grantor, and AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION, a domestic corporation duly organized under and by virtue of the laws of the State of New York, having its principal place of business at 20 Inverness Place East, Englewood, - Colorado, party of the second part, Grantee. WITNESSETH: That in considerationof the promises and covenants hereinafter made, the parties agree as follows: 1. American Television and Communications Corporation, of 20 Inver- ness Place East, Englewood, Colorado, hereinafter referred to as grantee is hereby granted and invested with the right and authority to construct, erect,operate and maintain buildings, machinery and. apparatus within the city limits of the City of Ithaca, as it now is, and as it hereafter may be constituted by revision, modification, or: addition, and which said buildings, machinery, apparatus may or shall become necessary in the transmission of television programs, and distribuion and sale of television or radio programs for the use of the citizens of the City of Ithaca, said rights hereby granted to be non-exclusive. The City has approved the legal, character, financial, technical and other qualifications of the Grantee and the adequacy and feasibility of its construction arrangements as part of a full public proceeding affording due process. 2. Grantee shall have the right, further, to erect, place, operate, repair and maintain poles, wires, transmission lines, distribution lines, and service lines in and over and the right to use, all public avenues, streets, alleys, grounds and places in the city, and within its present limit or as it hereafter maybe extended, for the purpose of furnishing the City of Ithaca and its inhabitants with.: television or radio service, provided always, that such poles, wires, trans- mission lines, distribution lines, and service lines shall not inter- fere with, nor obstruct, the necessary or proper use of said streets, avenues, alleys, public grounds or places. 3. Grantee shall have the right and permission of the City of Ithaca to use existing poles, wires, transmission lines and service lines now erected and in existence, and owned, controlled or operated by the New York Telephone Company or New York State Electric and Gas Corporation within the City of Ithaca, upon the condition that it shall first obtain the written permission of the New York Telephone Company or New York State Electric and Gas Corporation respectively for such uses. -2- 4. Grantee shall be permitted to extend its poles, wires, trans- mission lines, distribution lines and service line, and to give service to the City of Ithaca and to its inhabitants in accordance with the permission, rules, regulations and statutes as the same may be amended from time to time, of the Public Service Commission, Federal Communications Commission, and other regulatory bodies of the State of New York and of the United States of America and subject at all times to the applicable laws of the Stateof New York and of the United States of America. 5. Grantee is hereby empowered, and subject always to the approval, if necessary, of the Public Service Commission of the State of New York or other applicable State Commission, and the Federal Communica- tions Commission, to use proper practices, and procedures within the spirit of this franchise and appropriate to the service within the geographical limits of this franchise. 6. Grantee, upon execution of this franchise agreement, shall, if required be allowed to proceed to petition the Public Service Commission of the State of New York or other applicable State Commission and Federal Communications Commission for any approval 'required to be had in the premises, and upon such approval, he shall notify the Mayor of the City of Ithaca, in writing. 7. No poles are to be erected upon the public streets, alleys, avenues and public grounds and no excavation of any type shall be done or caused to be done unless permission in writing is first obtained from the Department of Public Works of the City of Ithaca, New York. 8. In the event that a change is made in the grade of public street, alleys, avenues and grounds by authority of the City, which shall necessitate the removal of any poles, wires, transmission lines, and distribution lines, to conform to the change of grade, Grantee shall make the necessary changes in its lines, at its own expenses, upon due notice from the Board of Public Works of the City to do so. 9. All work in any way necessitated by the business of the Grantee which may involve the opening, breaking or tearing up of.a portion of a street, sidewalk or other part of any City -owned or City -.con- trolled property shall be done by the City at the expense of the Grantee. Grantee shall save and keep the City harmless against all loss or damage to person or property caused by the construction, laying maintenance or operation of any of its lines or other under taking under the authority of this franchise. 10. a) During the terms of this franchise, Grantee shall furnish to all persons desiring the service offered, and paying for the same, a wire service capable of producing as good a quality of television picture signal or reception as may be practical from time to time, and shall make all reasonable and practical betterments or improve- ments of said service as improvements in the science of carrying of television signals shall warrant, as well as in the elimination of radio interference. -3- b) The Grantee shall certify to the City and provide such re- quired documentation to prove that it is in fact meeting the minimal technical standards required by the Federal Communications Commission and the New York State Commission on Cable Television. Said certifi- cation and documentation will be provided as may be requested by the City. If in the belief of the City the minimum technical standards are not being met, or if the Grantee shall fail to provide such certification and documentation as required herein, then the City may, at its sole option, employ the services of the New York State Commission on Cable Television engineering van to make certification checks within the City. The Grantee agrees to such verification checks at the discretion of the State Cable Commission (should they be required by the City). c) Service shall be defined to include basic service as herein- after defined and the provision of any additional cable programming to subscribers' homes.and businesses in the city through the use of cable and necessary instruments. d) Basic Service means the provision of 12 channels (channels 2 through 13) to subscribers' homes and businesses in the city through the use of cable and necessary instruments. Such Basic Service shall include the so-called "must -carry" stations as required by the Federal Communications Commission and the New York State Cable Commission, the Learning Channel (formerly ACSN) on the Local Access Channel 13 during times when local access programming is not available,. and the current New York City stations (now three in number) to the extent channels are available after local access and "must -carry" stations are pro- vided. 11. This franchise does not in any manner grant to the Grantee, his successors or assigns, the exclusive right to the sale and service of telephone sets, accessories, or converters within the City of Ithaca, and it is expressly understood that the right to sell such sets or accessories or converters is reserved to any and all legitimate dealers. By acceptance of this franchise, the Grantee, his successors and assigns shall be deemed to have accepted the following conditions: a) Any person, individual or corporation may purchase television sets from any source without any liability to the holder of the franchise herein granted. b). The holder of this franchise shall be required to permit any individual or corporation to have access to all services of the holder of this franchise, subject only to the payment of regular installation fee and monthly charges which are hereby established as follows: -4- 1) Installation: Residential establishments (maximum charges): First installation charge - $25.00 Each additional installation - 15.00 Commercial establishments (maximum charges): First installation charge - time and materials + 10% Each additional installation - time and materials + 10% Custom installation (residential or. commercial), hidden wire, underground drop in area where drops are other- wise aerial - time and materials + 10% 2) Monthly Rental Charges: First outlet, basic service - $ 7.00 Each additional outlet (resi- dential), basic service - $ 2.00 Each additional outlet (commercial):- $ 7.00 First FM outlet - $ 7.00 Each additional FM outlet - $ 2.00 The monthly rental charge for first outlet, basic service and first FM outlet shall increase to $8.00 effective January 1, 1986, and remain at no more than $8.00 at least to January 20, 1988 notwithstanding any Federal or Statelaw, rule, regula tion or ruling which permits or authorizes any increases thereof to the contrary during this period. 3) Disconnection: No charge will be made for disconnection, and no charge will be made for the period when the service is disconnected for any reason whatsoever. Cable service may be disconnected when the rental or other charges are 60 days past due. 4) Connection and Re -connection To To Existing Outlet: $15.00 5) Transfer of Service: $15.00 Any user who has paid the regular established residential installation fee and moves to another residence within the city may have this service transferred for the above charge. 6) Relocation in the Same Dwelling: To a new location in the same room -$10.00 To a new location in another room - $15.00 7) Converter Deposit (refundable): $10.00 8) Installation may be disconnected if user attempts to run more than one set at one time on each installation, or permits anyone else to do the same; or tampers with the lines in any way. 9) The rates and charges for basic service set forth herein shall bind the parties for the period July 1, 1984 to at least January 20, 1988 --the date of expiration of the existing franchise. In the event that grantee exercises its option to extend the term in accordance with Section 1.5 hereof, these rates shall continue in effect after January 20, 1988, No increase in rates and charges for basic service shall be effective after January 20, 1988 and during such extended term unless first approved by the Common Council in accordance with the provisions of Section 33 of this franchise as amended following a public hearing affording due process. Approval of increases in rates and charges for basic service shall not be unreasonably withheld.. 10) All installation and other charges include applicable federal, state and local taxes, if any, except sales tax. 11) The City specifically reserves the right to conduct a sub- scriber or other rate investigation at.any time when it believes on the basis of financial data available to it that substantial changes in costs, revenues, or profits of the Grantee has occurred, and may on the basis ofsuchinvestiga- tion, adjust the subscribers' rates or any other rates contained in this agreement after January 20, 1988. c) Grantee of this franchise shall not directly or indirectly reflect the cost of installations in the price of sets sold by it. 12. If the trees in the City streets interfere with the erection of poles or the stringing of wires, or cables, in accordancewith the terms of this franchise, written permission for removing said trees, or any part thereof, must be obtained from the Department of Public. Works, for trees on City property and from the owners of private property. 13. In all street installations, the cable or wires erected shall, in all respects, comply with the provisions of all existing Codes -6 - pertaining to the extension of wires across the streets, .and all applicable provisions of the Electrical Code of. the City of Ithaca. Coaxial cable shall be used to carry the television signal through- out the street installations. ,Messenger cable shall be used to ::carry the coaxial cable across the streets. 14.- The holder of this franchise shall, at all times, keep in effect ,the following types of insurance coverage: 1) Workmen's Compensation upon its employees engaged in any manner -in the installation or servicing of its plant and its equip--. ment within the City of Ithaca. 2) Public Liability Insurance in a total overall amount of not less than $1,000;000 combined single limit coverage insuring the - holder of this franchise and the City.of Ithaca against liability for property damage and for personal injury or death by reason of the' "installation, servicing or.operation of its plant and equipment or. ::installations within the City of:Ithaca. -15. The•term of this franchise shall. expire January 19,* 1988. .The .franchise may be automatically renewed at the option of the Grantee for an additional period extending to May 1, 1991, unless after review" of the performance of the Grantee, Grantor shall determine that said performance has been inadequate,•in which case the Grantor may, upon • one (1) month's written notice to the Grantee terminate this franchise agreement at the end of the initial ten-year term. However, this franchise may be revoked in the event the -Grantee shall fail to comply with the terms and conditions herein set forth within sixty days after written notice of such failure has been received.by the Grantee. 16. This franchise is personal to the Grantee, and may be transferred only on application to and approval by the Common Council of the City • ;of Ithaca. No permit or grant of similar privileges and powers as .are covered by'this franchise. shall be allowed during the period. hereof except upon a franchise applied for and approved by the Common Council. 17. The Grantee shall pay to the City Chamberlain annually a sum equal to three per centum (3%) of its gross revenues from all cable service operations within the City; said gross revenues shall in- clude the charges and rentals for basic service as set forth herein, all other charges and rentals set forth herein, and all other revenues obtained from any source whatsoever on account of the provision of cable related services of any kind within the City, in- cluding, but not limited to, basic service, augmented service, satellite service, HBO, pay television, and any other entertainment or other services. The City may increase the per centum sum in the first sentence of this paragraph as permitted by law or regulations of the Federal Communications Commission or New .York .State Cable Commission. Such fees shall be and constitute a lien upon the property of the .Grantee within the City prior and superior to all other debts, obligations, taxes, mortgages, or liens of whatsoever nature regardless of the time of the creation thereof, excepting herefrom any prior liens on the New York State Cable Commission. -7 - Failure to make the required report or pay such franchise fees shall be grounds for revocation of this franchise. In regards to the property tax credits, ATC will not apply any tax credit to the Ithaca Franchise fee in a greater proportion than the City of Ithaca subscribers are to the total system. 18. Any continuous and willful violation of any section or provision of this franchise shall be grounds for cancellation of the franchise, after due notice and public hearing. The right is reserved to the Grantee to prosecute in any Court or otherwise, any stealing, pirating or unlawful uses of the services covered by this franchise. 19. If any section of this franchise agreement or any clause or any phrase thereof shall be held to be unconstitutional or void, all other portions not so held shall be and remain in full force and effect. .20. The City recognizes that Grantee has constructed its system substantially throughout the primary area (the entire city). 'No standards for line extension are required at this time. Grantee shall continue to provide such service throughout the duration of the franchise, pursuant to this franchise.. 21. Grantee shall construct its cable system using materials of good and durable quality and all work involved in construction, installation, maintenance, and repair of the cable system shall be performed in a safe, thorough and reliable manner. 22. Local Office. The Grantee shall maintain an office in Tompkins County, New York, which shall be open during all usual business hours, having a listed telephone, and be so operated that complaints and requests for repairs or adjustments may be received at any time when any television signals are being broadcast. The Grantee shall respond to all service calls within 24 hoursand correct malfunctions as promptly as possible. For that purpose the Grantee shall maintain a competent staff of employees sufficient to provide. adequate and prompt service to its subscribers. The Grantee shall keepa record of all complaints from subscribers identifying the subscriber, his address, date of complaint, nature of complaint, and disposition of complaint. A major system failure shall be considered to exist when there is a simultaneous interruption in service to more than 50 subscribers. In the event of a major system failure, the Grantee shall respond to notification of such failure within one (1) hour and restore service as promptly as possible. All complaints not resolved by the Grantee within one (1) week after receipt shall be forwarded to the Grantor for review. The Mayor of the City of Ithaca or his designees or designated committee has primary responsi- bility for the continuing administration of the franchise and imple- mentation of complaint procedures. Notice of the procedures for reporting and resolving complaints will be given to each subscriber at the time of initial subscription to the cable system and at intervals hereafter of not more than one year. Such notice may be written or by such other means as the New York State Commission on Cable Television may approve upon application by Grantee. -8- 23. Grantee shall not abandon any service or portion thereof with- out the written consent of the City. 24. Any City or private property damaged or destroyed shall be promptly repaired or replaced by Grantee and restored to serviceable condition. 25. Grantee shall not refuse to hire or employ, nor bar or discharge from employment, nor discriminate against any person in compensation or in terms, conditions, or privileges of employment because of age, race, creed, color, national origin, sex, sexual preference, marital status or disability. . 26. The City reserves the right to adopt, in addition to the pro- visions contained in the franchise and existing applicable ordinances, such additional regulations•as it shall find necessary in the exer- cise of its police power;provided, however, that such regulations are reasonable and not materially in conflict with the privileges granted in the franchise. 27. The City reserves the right to inspect all pertinent books, records, maps, plans, financial statements and other like material, of the franchise, upon reasonable notice and during normal business hours. 28. This franchise is in compliance with the franchise standards of . the New York State Commission on Cable Television and the provisions hereof are subject to the approval of said Commission. 29. a) Within thirty days of the receipt of final operating authority, Grantee shall post security with the City in the amount of $5,000 in the form of a letter of credit or such undertaking as may be acceptable in form to the City Attorney. b) Said security shall be forfeited to the extent specified by the City Council if the Grantee fails to comply with any applicable construction schedule, or if the Grantee commits a material breach of any of the terms and conditions herein prescribed. As an alternative, the City Council may unilaterally shorten or decrease the term of this franchise if it shall find that the Grantee has materially breached any of the terms of this franchise agreement. c) The Grantee shall be entitled to notice and hearing before the City Council prior to any forfeiture or decrease in the term of this franchise. d) No forfeiture shall be imposed for failures beyond the reasonable control of the Grantee. e) In the event of forfeiture of part of all the initial security, the Grantee shall within thirty days thereafter post additional security so that the total amount of security posted equals $5,000. -9- 30. Grantee shall file requests for all necessary operating authori- zation with the City of Ithaca, Commission on Cable Television, and the Federal Communications Commission within 60 days from the date this amendment is granted. 31. Public Access a) American Television and Communications Corporation shall provide one full separate single channel for public access programmin on a demand basis, and otherwise comply with the pertinent New York • State Commission on Cable Television rules and regulations. b) This single channel shall bedesignated as Channel 13 in the basic service group. c) Access to the separate channel shallbe provided on a first- come, first-served basis within the following priorities: 1) Local live programming access 2) Public access. 3) Education access 4) Government access d) Users of the Public Access channel shall reserve their time at least oneand no more than fourweeks in advance of their desired broadcast time; this provision may be waived in a particular case by American Television and Communications Corporation in its sole discretion. e) Studio time shall be provided at a'cost not to exceed the actual cost of operating the studio. f) The administration of public access broadcasting shall remain with the American Television and Communications Corporation. g) The City Cable Commission shall act as the Common Council agent inresolving disputes between the American Television and Communications Corporation and public access users in the City of Ithaca. h) Video tapes to be shown on the public access channel shall be delivered to the studio at least tworworking days in advance of airing. i) Public access studios shall be maintained at the company's. headquarters on West State Street and will include television . cameras, recording and playback equipment, switching equipment and an editing capability. In addition ATC shall make available two separate porta-pak facilities for use by access users. Instruction on the use of the equipment shall be provided by the company. -10- j) The Tompkins County Public Library shall be wired for public access transmission. k) In addition to any requirements imposed above regarding public access, ATC shall respond positively to reasonable demands of the community for public access, facilities, equipment and cable drops. 1) All access broadcasts shall conform to all applicable Federal Communications Commission and State Cable regulations. m) American Community Cablevision will maintain a record of the use of the designated television channel(s); such record to be available locally for public inspection and retained for a minimum period of two years. n) American Community Cablevision will prohibit the public access channel from being used for the promotion or sale of commercial products or services, including advertising by or on behalf of candi- dates for public office unless specifically permitted by the public access rules of the New York State Commission on Cable Television. o) The franchises shall provide notice to each subscriber, at intervals of not more than one year, as to the availability of the television channel and production equipment and the address and telephone number of the person responsible for the operation of the access channel(s). p) Except as superseded by the terms and provisions of this franchise agreement, the Public Accessrulesof the New York State Commission on Cable Television are adopted by reference. 32. By execution hereof the parties hereof modify and amend the prior franchise heretofore given by the City to the Grantee. 33. The Grantee shall also be required to submit its annual finan- cial statements, Uniform Cable Commission financial reports, and State and Federal income tax returns and any other reasonable financial information requested, to the Common Council annually as soon thereafter as they may be available. The City may request advice and analysis with regard to said financial documents, etc., from the State Cable Commission and outside accountants if it deems. necessary. Any request by Grantee for any change in the rates and. changes set forth herein shall be subject to the following procedure: a) Grantee shall commence the procedure by filing with the Common Council a formal written petition for the changes requested. This petition shall be accompanied by supporting information as follows: (1) all independently audited financial statements, uniform Cable Commission financial reports and State and Federal income tax returns of the Grantee for both current and each of the years preceding the request and dating hack to the year of the previous change in rates; • -11- • (ii) A statement of the capital assets, operations, revenues and services devoted and pertinent to all cable tele- vision operations within the City of Ithaca alone, and (iii) such additional information as the Grantee may deem relevant in support of its request. b) Upon receipt of such petition the Common Council or its designee shall with reasonable promptness review the same and may request in writing of Grantee such additional information, explana- tion or clarification as may be reasonably necessary for determina- tion of the petition. Once such additional information is furnished, the petition shall be deemed complete. c) The Common Council shall schedule a public hearing and act upon a complete petition within 90 days of the date when the petition is deemed complete. This 90 -day period may be extended upon written agreement of both parties. The • Common. Council may ;consider but in no way is bound by: the advice and analyses of the New York State Commission on Cable Television and any independent. accounting firm of its choice; the status of rates and charges for comparable service in other cable television systems in similar communities in the State of New York; the overall performance of the Grantee's entire city operation including all cable services. which are other than basic service; and any other useful method of rate analysis for public services. 34. The value of this franchise at the end of the term shall be zero. 35. In the event the Grantor annexes additional land areas in the future, then all of the conditions of this franchise shall apply to the annexed area. In the event that the new land area so annexed is not wired by the Grantee for the services set forth herein, then a construction schedule shall be negotiated between the Grantor and the Grantee within one year, or the City may, at its option, impose any of the penalty provisions contained herein as if the Grantee had materially breached any term or provision of this franchise agreement. In any event the Grantee shall extend its facilities to any area containing a minimum of 35 homes per lineal mile. 36. The franchise will supply a statement of the capital assets devoted to the cable operation in the City of Ithaca. The pro- visions of this paragraph shall be invoked only in the event of a rate change request by the franchisee. 37. ATC agrees to supply a written statement to each new customer. prior to commencing installation for service to such new customer and to all existing customers prior to the effective date of any rate change and at least once per year. This. statement shall contain the following: (1) Statement of rates pertaining to the customer, including hook-up and all other charges that might be made; (2) concise statement of procedures for notifying ATC of difficulties with service, the ATC "trouble" phone number, hours of availability of service, customer rights to service, and complaint procedures, both within ATC and those available through the City of Ithaca. <t' -12- 38. Bills will always be paid to the local office or other desig nated locations in Ithaca and billing and other records of local subscribers will be maintained at that office. The system staff will include people whose primary function is to respond to billing and service problems. The resident Ithaca general manager will have complete authority to resolve all complaints concerning billing and service. 39. Not later than ninety (90) days after the close. of the Grantee's fiscal year, ATC shall make a written and oral report to the City Cable Television Commission. This report is to be presented in an open public meeting and shall consist of a statement of the financial status of the Ithaca'area cable television system, a review of line extension work completed, a summary of complaints lodged against ATC, and such other information as may reasonably be required by the City. -13- • IN WITNESS WHEREOF, we have hereunto set our hands and seals the 'day and year first above written. CONTRACT AS MODIFIED: DATED: March 27. 1984 CITY OF ITHACA S/by: CITY OF ITHACA S/by: Edward J. Conley Mayor AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION S/by: Joseph J. Collins AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION S/by: Vice President Resolution passed by Common Council at March 7, 1984 Regular meeting American Community Cablevision By Alderman Schlather: Seconded by Alderman Holdsworth WHEREAS, The American Television and Communications Corporation by its local division, American Community Cablevision (ACC), has requested certain modifications of the television cable franchise entered into between it and the City of Ithaca on January 20, 1978; and WHEREAS, these requests for modification have been duly and fully in- vestigated, analyzed and discussed by both the City of Ithaca Cable Commission and the Charter and Ordinance Committee of Common Council; and WHEREAS, in connection with these requests for franchise modifications American Community Cablevision has made written representations and promises concerning the level and timing of the delivery of services under this agreement as modified, which letters are dated January 25, 1984 and February 28, 1984 and are to be filed concurrently herewith in the Ithaca City Clerk'.S office; and WHEREAS, as a result of these requests for modification together with further negotiation, mediation and clarification between parties a final proposal to modify the television cable franchise in the form annexed has been forwarded to Common Council by the Charter and Ordinance Committee together with its recommendations therefor; and WHEREAS, there have been several public meetings and public hearings concerning these requested modifications in compliance with the fran chise agreement itself and law; therefore, be it 'RESOLVED, That the television cable franchise entered into between the American Television and Communications Corporation and the City of Ithaca on January 20, 1978 be, and the same is, hereby modified so that the same shall read in the form annexed, and be it further RESOLVED, That the Common Council does herewith authorize the Mayor to execute any and all documents necessary to effect said modifica- tions; and be it further RESOLVED, That consistent with the promises and representations of American Community Cablevision, the rate increases set forth in the modified franchise agreement shall not take effect until after the anticipated satellite service is available to all subscribers in the primary service area, and be it finally RESOLVED, That the Ithaca City Cable Commission be, and it is, hereby directed to monitor compliance with the promises and representations of American Community Cablevision concerning the implementation of satellite service and report back to Common Council by the July, 1984 meeting. Carried Unanimously &ma • •a+sa tt till' fi VIPLAIVZ1 SV(Y • • THE I'Y'HACA JOURNAL f ' NOTICE OF-PUBLICHEARING PLEASE TAKE'NOTICE that the Charter and Ordinance Commit- tee of the Ithaca- City Common , -Council will hold a Public Hearing in the Common, Council Cham- `'bers, Third Floor of City Hall at X108 East Green 'Street, Ithaca,. _New York on November 21,1983, ...,at 7:30 .p.m upon. a 'proposed. •amendmenth;to-the.:City's cable. television franchise with Ameri- :.can.Community Cablevision, Inc: ,The proposed.amendmentwould ieffectf.. changes: In the monthly service -•charge' .to subscribers.: The changes'to the franchise pro- posed by; Anerican ' Community Cablevision; •• together: •with - the I;thaca City.,Comnission's recom= mendations concerning this, pro- .;:pposal; together, with .the. pre `liminary proposal of the, Charter -'and Ordinance Committee, are on. ifile and±available for public In- spection at the Ithaca City Clerk s office located at;100 East Green ,Street (firsufloot),•.Ithaca,:New _.; :,Any amendment,^approved, 'pay 'not take effect If. without the .:irlor-approval of the New York -State Commission on -Cable Tele ti. ;,vision, and interested parties mays 1. ;,file comments or objections with . the Commisslon, mailed to -ower, Building,:'Empire State--Plaza, -a':Albeny, New York 12223, and the .. Charter and•Ordinance.Commit- x;tee of Ithaca City Common Coun-, ,aoseph'A; Rundle •�i City Clerk, CMC; , City of. Ithaca, New York "-November 11,. 1983 of.....__........ ..__.. eStxte of Xieftr'fork, Tompkins (aw4g, >rs.: Barbara V a n t i n e__ _.--_-....-. be duly Sworn, deposes and says, that he resides in Ithaca, County and state aforesaid and that he is clerk . _._._ ....._...___.._-... of THE ImAcA JOURNAL a public newspaper printed and published in Ithaca aforesaid, and that a notice, of which the annexed is a true copy, was published in said paper and that the first publication of said notice was on the' % tr day of/� `��-'"` _:� _ Subscribed and sworn to before me, this •- of ..... 1�...� JEAN FORD ._. Notary Public. Notary Public, State of New York No. 4654410 Qualified in Tompkins County .7nmmission Expires March 30. 19..f day - EXHIBIT. "B" ' 01 STATE OF NEW YORK COMMISSION ON CABLE TELEVISION In the Matter of the Application of American Television & AFFIDAVIT Communications Corporation for Approval OF MAILING of Amendments to a Cable Television Franchise ..in the City of Ithaca (Tompkins County) State of New York ) County of Otsego ) SS.: SUSAN M. BLISS , being duly sworn, deposes and says, that deponent is not a part to this proceeding and is over the age of eighteen years; that on March 30 , 1984, deponent served one copy of the application in this matter upon the John Gutenberger , Mayor of the City of Ithaca, at 108 East Green Street, Ithaca, New York, by depositing a true copy of the same enclosed in a post-paid properly addressed wrapper in a official depository under the exclusive care and custody of the United States Post Office Department at Main Street, Village of Cooperstown, County of Otsego, State of New York. Sworn tobefore me this 30th day of March, 1984. SUSAN M. BLISS Not y Pliiblic-State of New York My omission Expires 3/3/85 EXHIBIT "C" STATE OF NEU YORK COMMISSION ON CABLE TELEVISION In the Matter of the Application of American Television & Communications Copporation for Approval of Amendments to a Cable Television Franchise for the City of Ithaca (Tompkins County) Dated: March 28, 1984 JOHN L. GROW ItaMIAIVKACgrgiDa AUGUR BLOCK - PIONEER ST. P. O. Box 165 COOPERSTOWN. N.Y. 13326 NEW YORK STATE COMMISSION ON CABLE TELEVISION FORM AFR-1 Annual Financial Report for Period Beginning July 1, 1983, and Ending June 30, 1984. Name American Community Cablevision, Division of American Television and Communications Corporation Full Name of Cable Television Company Address 94 Inverness Terrace East Mailing Address • Englewood Colorado 80112 City State Zip Code Telephone No. (Include Area Code) (303) 799-9599 Business Entity Division of American Television and Communications Corporation (Indicate if a: Sole proprietorship; Partnership; Limited partnership; Corporation; Subchapter S Corporation; Not for profit Corporation; Other (describe). Reporting Entity Individual entity report (Indicate if this is a consolidated or individual entity report) Notice This report shall be filed with the Commission by every cable television company required to maintain records and adopt the accounts prescribed in the Uniform Accounting System, and may be filed by any cable television which voluntarily uses the accounts specified in the Uniform Accounting System. This report shall be filed with the Commission within 90 days of the end of your fiscal year. Part I of this report consists of questions of a general informational nature; Part II consists of financial statements and schedules based on the accounts specified in the UAS: Part III consists of consolidated financial statements and shall be completed by any company having an ownership interest of 20% or more in another company and shall include any company not included in Part II or for which a separate report is not attached and any operations of a non - cable nature or which arose from out of state operations. General Instructions 1. All entries are to be in permanent form. Decreases are to be shown enclosed in parentheses. 2. The words "not applicable" are to be shown on any schedules or in reply to any question which does not apply to respondent. 3. Additional explanations, schedules or statements may be attached to the back of this form by respondent for the purpose of further explanation if insufficient space has been provided on this form. The additional explanations, schedules or statements shall be cross-referenced to the question, statement or schedules to which they are related. 4. Amounts reported on this report shall be rounded to the nearest dollar. 5. If you require assistance phone (518) 474-2471 or write New York State Commission on Cable Television, Tower Building, Empire State Plaza, Albany, New York 12223. PART I 1. To Whom Should Correspondence and Inquiries Concerning This Report Be Addressed? Dale D. Wagner 94 Inverness Terrace East Name Mailing Address Vice President Finance & Administration, American Television and Communications Englewood, Colorado Title Corporation - National Division City State (303) 799-9599 80112 Phone Number (Include Area Code) Zip Code 2. List below the name of each locality granting a franchise and also each geographic area you serve in which a franchise has not been granted. Identify whether a local- ity is a city, town, or village by using the following codes: 'C' -City, 'T' -Town and 'V' -Village. Indicate operation in a non -franchised area by placing the letter "N" after the area served. The Number oc Subscribers shown is defined as the total amount of first, or primary outlets installed in each area served without reference to the number of additional outlets or services subscribed to be each customer. A decimal point has been provided in columns D, E, and F for fractional numbers. For whole numbers place a zero to the right of the decimal point. Should you serve more localities than space provided, please make additional copies of page 2b. * * * * * * * * * * * * * * * Reserved for * office use * only * * * A. * B. C. D. E. F. * * Total Municipality Code * Estimated Route * Percentage Miles of Miles in * Name of Franchise Number of of Plant Franchise Company ID 1.._11-I * or Area Served Subs. Penetration Completed Area * 1)1 1 1 1 1 1 1 1 1 11 * City of Ithaca 6,862 68.0 77.2 80.0 2)1 1 1 1 1 1 1 1 1 11 * Town of Ithaca 2,930 55.0 71.2 74.0 * 3)1 1 1 1 1 1 1 1 1 1 * Vill.of Cayuga Hts. 1,040 10.0 17.3 20.0 * 4)1 1 1 1 1 1 1 1 I * Vill.of Trumansburg 494 60.0 16.8 17.0 * 5)I 1 1 1 1 1 11 1 1 1 * Vill.of Candor 335 94.0 6.1 6.5 * 6)1 1 1 1 1 1 1 1 1 1 1 * Town of Caroline 432 95.0 17.1 112.0 * PART I (Continued) -* * * * * * * * * * * * * * * Reserved for * office use * only * * * A. * B. C. D. E. F. * * Total Municipality Code * Estimated Route * Percentage Miles of Miles in * Name of Franchise Number of of Plant Franchise Company ID -1J 1 * or Area Served Subs. Penetration Completed Area * 7)1 1 1 1 1 1 1 1 1 1 * Vill. of Lansing 1,171 79.0 12.0 18.0 8)1 1 1 1 1 1 1 1 1J * Town of Dryden 1,952 87.0 86.7 209.0 9)1 1 1 I 1 I I 1 11 * Town of Newfield 815 88.0 19.5 124.0 * 10)1 I 1 1 1 1 11 IJ * Town of Lansing 1,162 92.0 12.6 130.0 * 11)1 I Ili I I I I * Town of Ulysses 264 71.0 10.7 87.0 * 12)1 I 1 1 1 I I * Town of Danby 197 99.0 6.1 107.0 * Village of 13)1 1 1 I 1 1 1 * Newark Valley 374 83.0 7.0 14.0 * 14)1 I 1 1 1 11 * Vill. of Groton 789 80.0 10.6 11.0 * 15)1 I I I I IJ * Town of Groton 175 86.0 10.0 101.0 * 16)1 1 1 1 1 11 * Vill. of Dryden 577 94.0 9.2 10.0 * 17)1 I I 1 I 1 1 * Vill. of Freeville 147 71.0 4.5 6.0 * 18)1 1 1 1 1 1 1 1 1 * Town of Candor t_ 318 46.0 34.5 78.0 * Town of Newark 19)1 1 1 1 1 1 I 1 I * Valley 147 88.0 12.2 24.0 * 20)1 1 1 1 1 1 1 1 I * - 21)1 1 1 1 I 1 1 1 1 * * - 22)1 1 1 1 1 1 1 1 1 * * 23)1 1 1 1 1 1 1 1 1 * 24)1 1 1 1 1 I I IJ * * 25)1 1 1 1 1 1 1 1 1 * * 26)1 1 1 1 1 1 1 I_I * * 27)1 1 1 1 1 1 1 1 1 * 28.)1 1 1 1 1 1 1 1 IJ *• * TOTAL 20,181 441.3 1228.5 3. At any time in the reporting period did you own or control 20% or more of any other company, or did another company own or control 20% or more of your company? X Yes No If yes, list the companies below. Percentage of Ownership Consolidated Or Control Held By You on Part II A. Name of Company In Another Company Yes/No B. 1. 2. 3. 4. 5.• 6. 7. 8. 9. 10. Percentage of Ownership Consolidated Or Control Held By Yett on Part II Name of Company I Another Company 1.n '/eu Yes/No 1. American Television and Communications Corporation American Community Cablevision is 2. an operating Division of ATC 100% No 3. 4. 5. 6. 7. 8. 9. 10. CERTIFICATION I certify that I have examined this report and that all statements of fact contained therein are true, complete, and correct to the best of my knowledge, information, and belief and that nothing material has occurred that would require explanation that has not been explained. Vice President Finance & Administration, American Television and Communications Corporation, National Division Title Dale D. Wagner. October 3, 1984 Date Signed Printed Name of Signer PART II Statement of Profit and Loss Line No. Account No. Name Amounts FILE CODE 20 1. Operating Income 2. 4110.0 Installation Income $ 146,970 3. 4120.0 Regular Subscriber Charges $1,648,469 4. 4130.0 Per Program or Per Channel Charges $ 951,059 5. 4140.0 Other Subscriber Revenues .$ 215,683 6. Total Subscriber Revenues 7. 4210.0 Advertising Income $ 0 8. 4220.0 Special Service Income $ 0 9. 4230.0 Other Non -Subscriber Revenues $ 27,539 10. Total Non -Subscriber Revenues 11. Total Operating Income 12. Cost of Operations 13. 5100.0 Service Costs 14. 5200.0 Origination Costs 15. 5300.0 Selling, General and Administrative Expense 16. 5400.0 Depreciation and Amortization 17. Total Operating Costs 18. Total Operating Profit or (Loss) (Line 11 - Line 17) $2,962,181 27,539 $ 603,666 $ 420,036 $ 997,702 $ 577,488 $2,989,720 $2,598,892 $ 390,828 PART II Statement of Profit and Loss (Continued) 19. Other Income and Expenses 20. Other Income 21. 6110.0 Interest $ 0 22. 6120.0 Dividends $ 0 23. 6130.0 Other $ 0 24. Total Other Income $ 0 25. Other Expenses 26. 6210.0 Interest $ 249,617 27. 6220.0 Miscellaneous $ 0 28. Total Other Expense $ 249,617 29. Total Other Income or (Expenses) (Line 24 - Line 28) FILE CODE 2O $ (249,617) 30. Profit or (Loss) Before Taxes (Line 18 + or - Line 29) , $ 141,211 31. Provision for Federal and State Income Taxes 32. 7100.0 Federal Income Taxes 33. 7200.0 State Income Taxes 34. Total Income Taxes Payable $ 20,000 14,000 $ 34,000 35. Total Profit or (Loss) Before Extraordinary Items (Line 30 - Line 34) $ 107,211 36. 8000.0 Extraordinary Items* $ 0 37. Total Profit or (Loss) $ 107,211 * Please provide schedule of items and amounts. BALANCE SHEET ASSETS Line No. Account No. Name Amounts FILE CODE 30 1. Current Assets 2. 1110.0 Cash $ 91,087 3. 1120.0 Short-term Investments $ 0 4. 1130.0 Accounts Receivable - Trade $ 135,246 5. 1139.0 Less: Allowance for Doubtful Accounts $ (40,856) 6. Accounts Receivable - Net $ 94,390 7. 1140.0 Other Receivables $ 173 8. 1149.0 Less: Allowance for Doubtful Accounts $( 0) 9. Other Receivables - Net $ 173 10. 1150.0 Inventory $ 30,270 11. 1160.0 Broadcasting Rights $ 0 12. 1170.0 Prepaid Expenses $ 0 13. 1180.0 Other Current Assets $ 0 14. Total Current Assets 15. Plant Assets 16. 1200.0 Fixed Assets $ 5,485,265 17. 1300.0 Construction Work in Progress $ 1,572,431 18. 1500.0 Plant Adjustments $ 0 19. 1400.0 Less: Allowance for Accumulated Depreciation and Amortization $(2,643,405) 20. Total Plant Assets $4,414,291 $ 215,920 BALANCE SHEET ASSETS (Continued) 21. Other Assets 22. 1610.0 Intangible Assets $ 1,656,179 23. 1620.0 Deferred Charges $ 0 24. 1630.0 Long Term Investments $ . 0 25. 1640.0 Organization Costs $ 0 26. 1650.0 Other Assets $ 0 27. Total Other Assets 28. Total Non -Current Assets (Line 20 + Line 27) 29. Total Assets (Line 14 + Line 28) LIABILITIES AND OWNERS' EQUITY 30. Current Liabilities 31. 2110.0 Loans Payable $ 5,749,959 32. 2120.0 Subscriber Advance Payments and Deposits $ 232,810 33. 2130.0 Accounts Payable $ 1,062,619 34. 2140.0 Taxes & Other Withholdings $ 7,004 35. 2150.0 Accrued Expenses $ 164,917 36. 2160.0 Accrued Taxes $ 0 37. 2170.0 Other Current Liabilities $ .0 38. 2180.0 Dividends Payable $ 0 39. Total Current Liabilities $ 1,656,179 $ 7,217,309 FILE CODE 30 $ 6,070,470 $ 6,286,390 FILE CODE 30 BALANCE SHEET LIABILITIES AND OWNERS' EQUITY (Continued) 40. Non -Current Liabilities 41. 2300.0 Long -Term Debt $ N/A 42. 2400.0 Operating Allowances $ N/A 43. 2500.0 Other Non -Current Liabilities $ N/A 44. Total Non -Current Liabilities $ N/A 45. Owners' Equity 46. 3100.0 Common Stock - Issued $ N/A 47. 3200.0 Preferred Stock - Issued $ N/A 48. 3300.0 Treasury Stock $ N/A 49. 3400.0 Proprietors' Equity $ N/A 50. 3500.0 Additional Paid -In Capital $ N/A 51. 3600.0 Retained Earnings or Accumulated Deficit $ (930,919) 52. Total Owners' Equity $ (930,919) 53. Total Liabilities and Owners' Equity $ 6,286,390 INSTRUCTIONS . If Line 43, Other Non -Current Liabilities, is significant in amount list the major items comprising it, and the amounts therein. . Furnish particulars as to any significant contingent assets or liabilities existing at year end or any significant change in the financial condition of the company occurring after the end of the fiscal year but prior to filing this report. List on reverse side. . List on reverse side the total amount of subscriber Advance Payments, Account #2121.0 and the total amount of Subscriber Deposits, Account #2122.0 held by you and indicate if you pay interest on these amounts and if so, how much. Subscriber Advance Payments $160,253 Subscriber Deposits 72,557 Total $232,810 Interest is not paid on these amounts. STATEMENT OF CHANGES IN FINANCIAL POSITION Instructions 1. The following items entered as follows: a. Lines 1, 2, 3 and 4 are the amounts entered on the Statement of Profit and Loss for those items. b. Line 6 is the proceeds of debt issuance. c. Line 7 is the proceeds of stock issuance or other equity investments. d. Line 14 is amounts invested in securities or companies on a long-term basis. e. Line 23 is computed as follows: 1. Add or subtract line 22 from line 19 and enter on line 23; the amount entered on line 23 when added to or subtracted from line 10 shall equal line 16; in no event is the amount entered on line 23 to be entered elsewhere on the form. 2. An amount entered on line 23 that represents a reduction of working capital from the prior year is a resource and when added to the amount shown on line 10 will always equal line 16: A resource, that is a reduction in working capital, is evidenced by line 22 being smaller than line 19; an application, that is an increase in working capital, is evidenced by line 22 being larger than line 19. f. Negative amounts are to be indicated by being enclosed in parentheses. 2. Total Resources Provided, line 10 must equal Total Resources Used, line 16, plus or minus the Net Change in Working Capital, line 23. STATEMENT OF CHANGES IN FINANCIAL POSITION FILE CODE 40 Financial Resources Were Provided By: From Operations: 1. Net Income (Loss) before Extraordinary Items $ 107,211 2. Extraordinary Income. (Loss) 3. Total Net Profit (Loss) 4. Depreciation & Amortization 0 107,211 577,488 5. Funds Provided by Operations (lines 3 and 4) 684,699 6. Long-term debt 7. Equity Investments 8. Other 0 0 0 9. Funds Not Provided by Operations (lines 6, 7, and 8) 0 10. Total Resources Provided (lines 5 and 9) 684,699 Financial Resources Were Used For: 11. Additions to fixed assets $ 2,234,281 12. Reduction of long-term debt 0 13. Dividends paid or equity withdrawals 0 14. Investments 0 15. Other 50,668 16. Total Resources Used (total lines 11 to 15) 2,284,949 Change in Working Capital: 17. Prior Years Current Assets $ 136,707 18. Prior Years Current. Liabilities 5,537,846 19. Difference (line 17 less line 18). (5,401,139) 20. Current Years Current Assets 215,920 21. Current Years Current Liabilities 7,217,309 22. Difference (line 20 less line 21) (7,001,389) 23. Net Change in Working Capital (line 19 plus or minus line 22) $ (1,600,250) NOTE: Line 10 minus line 16 must agree with line 23. PLANT, INTANGIBLES & DEFERMENTS EXPLANATION OF ENTRIES LINE NO. INSTRUCTIONS 1. The balance at the beginning of the year, column A should agree with the closing balances on last year's Schedule of Plant, Intangibles & Deferments; the balance at the end of the year should agree with closing balances on this year's balance sheet. 2. Amounts reported in column D, transfers and adjustments, should be explained in the space provided above. 3. The amounts shown in column E, lines 15, 16, 20 and line 21 column F must agree with amounts shown on the balance sheet, lines 16, 17, 18 and 19, respectively. 4. Unamortized Debt Expense is amortized by charging "Interest Expense", this will be reflected on this schedule by entering this amount in column D. 5. Intangible assets and deferred charges should be recorded at cost with the accumulated amortization reported in column F. The amounts reported in line 26 column E minus line 26 column F must agree with the amount reported on the balance sheet in line 22. The amounts reported in line 31 column E minus line 31 column F must agree with the amount reported on the balance sheet in line 23. PLANT, INTANGIBLES AND DEFERMENTS FILE CODE 50 (A) (B) (C) (D) (E) (F). ACCUMULATED BALANCE AT TRANSFERS DEPRECIATION ACCOUNT BEGINNING ADDITIONS AND BALANCE AT AND LINE NUMBER DESCRIPTION OF YEAR DURING YEAR RETIREMENT ADJUSTMENTS END OF YEAR AMORTIZATION Fixed Assets 1. 1210.0 Land $ 29,850 $ 0 $ 0 $ 0 $ 29,850 $ 2. 1220.0 Buildings 180,925 0 0 0 180,925 58,883 3. 1230.0 Head -End 281,271 50,203 0 0 331,474 152,576 4. 1241.0 Subscriber Devices 703,345 126,877 (13,189) 38,203 855,236 698,177 5. 1242.0 Other 3,305,670 420,475 0 0 3,726,145 1,547,705 6. Total Trunk and Distribution 4,009,015 547,352 (13,189) 38,203 4,581,381 2,245,882 (Line 4 and Line 5) 7. 1250.0 Test Equipment and Tools 61,972 37,497 0 0 99,469 49,034 8. 1260.0 Program Origination 42,698 22,373 0 0 65,071 21,086 9. 1270.0 Vehicles 102,150 18,292 0 0 120,442 88,625 10. 1276.0 Furniture and Fixtures 39,169 16,228 0 0 55,397 25,646 11. Total Vehicles, Furniture and 141,319 34,520 0 0 175,839 114,271 Fixtures (line 9 and Line 10) 12. 1280.0 Capitalized Lease Property 0 0 0 0 0 0 13. 1290.0 Leasehold Improvements 0 0 0 0 0 0 14. 1299.0 Miscellaneous Equipment 20,578 1,359 0 0 21,937 1,673 15. Total Fixed Assets 4,767,628 693,304 (13,189) 38,203 5,485,946 2,643,405 (Total Lines 1 to 3, 6 to 8, 11 to 14) 16. 1300.0 Construction Work in Progress 55,787 2,208,586 0 (692,623) 1,571,750 0 ACCOUNT LINE NUMBER DESCRIPTION 17. Plant Adjustments 18. 1510.0 Plant Adjustment Excess Fair Value PLANT, INTANGIBLES AND DEFERMENTS (Continued) (A) (B) (C) (D) (E) FILE CODE 50 (F) ACCUMULATED BALANCE AT TRANSFERS DEPRECIATION BEGINNING ADDITIONS AND BALANCE AT AND OF YEAR DURING YEAR RETIREMENT ADJUSTMENTS END OF YEAR AMORTIZATION $ 0$ 0$. 0 $ 0 $ 0$ 0 19. 1520.0 Plant Adjustment Goodwill 0 0 0 0 0 0 20. Total Plant Adjustments (Lines 18 + 19) 0 0 0 0 0 0 21. Total Plant Assets 4,823,415 2,901,890 (13,189) ( 654,420) 7,057,696 2,643,405 (Lines 15 + 16 + 20) 22. Intangible Assets 23. 1611.0 Franchises, Licenses and Permits 2,235,690 0 0 0 2,235,690 (579,511) 24. 1612.0 Other Intangible Assets 0 0 0 0 0 0 25. 1613.0 Goodwill 0 0 0 0 0 0 26. Total Intangible Assets (Lines 23 + 24 + 25) 2 ,235 ,690 0 0 0 2,235,690 (579,511) 27. Deferred Charges 28. 1621.0 Start -Up Costs 0 0 0 0 0 0 29. 1622.0 Unamortized Debt 0 0 0 0 0 0 30. 1623.0. Other Deferred Charges 0 0 0 0 0 0 31. Total Deferred Charges 0 0 0 0 0 0 (Lines 28 + 29 + 30) Line Description NOT APPLICABLE LONG-TERM DEBT FILE CODE 60 Principal Payments Due In (A). (B) (C) (D) (E) (F) Over 5 Year 2 Year 3 Year 4 Year 5 Years Total 1. Notes 2. Owed to Affiliates $ $ $ $ $ $ 3. Owed to Directors or Officers 4. All Others I 5. Total Notes 6. Bonds 7. Owed to Affiliates 8. 'Owed to Directors or Officers 9. All Others 10. Total Bonds 11. Obligation on Capitalized Leases 12. Unamortized Premium & Discount on Outstanding Debt 13. Total Long -Term Debt (Total of Lines 5, 10, 11 + 12) 14. Interest to be Paid 15. TOTAL (Line 13 + Line 14) $ $ $ $ $ $ INSTRUCTIONS 1. Determine the amount of principal and interest to be paid on all long-term debt. (If interest rate varies use rate in effect at end of current year). 2. On line 12 determine the amount to be amortized yearly and enter in the appropriate column. 3. Cross -foot all totals. The total amount of long-term debt entered on line 13, column "F" shall agree with the total amount ' of long-term debt entered on line 41 of the balance sheet. DETAILS OF SUMMARIZED EXPENDITURE ACCOUNTS (A) (B) (C) FILE CODE 70 (D) LINE ITEM ACCOUNT NO. NO. DESCRIPTION SERVICE COSTS 1. 01.1 Sal. & Wages, Officers & Directors $ N/A $ N/A $ N/A $ N/A 2. 01.2 Salaries and Wages, All Others 296,531 16,879 178,372 N/A SELLING, GENERAL PAYROLL & ORIGINATION & ADMINISTRATIVE EXPENSES COSTS EXPENSES CAPITALIZED 3. 02.1 Emp. Benefits, Officers & Dir. N/A N/A N/A N/A 4. 02.2 Employee Benefits, All Others 74,815 7,564 67,992 N/A 5. 03.0 Maintenance 166,521 2,953 N/A N/A 6. 04.0 Pole and Site Rentals 57',861 N/A N/A N/A 7. 05.0 Microwave Service 33,488 N/A N/A N/A 8. 06.0 Light, Heat & Power 54,110 N/A 12,199 N/A 9. 07.0 Vehicle Expenses 36,978 N/A 1,641 N/A 10. 08.0 Rent N/A 7 4,793 N/A 11. 09.0 Travel & Entertainment N/A N/A 12,159 N/A 12. 10.0 Dues and Subscription N/A N/A 5,734 N/A 13. 11.0 Contributions N/A N/A 2,248 N/A 14. 12.0 Professional Service N/A N/A 25,160 N/A 15. 13.0 Stationery & Supplies N/A N/A 15,487 N/A 16. 14.0 Postage and Freight N/A N/A 7,735 N/A 17. 15.0 Advertising & Promotion N/A N/A 14,084 . N/A 18. 16.0 Telephone & Telegraph N/A N/A 25,933 N/A 19. 17.0 Sundry Office Expenses N/A N/A 1,119 N/A Sub -Total $ 720,304 $ 27,403 $ 374,656 N/A DETAILS OF SUMMARIZED EXPENDITURE ACCOUNTS 771 (A) (B) (c) (D) LINE ITEM ACCOUNT NO. NO. DESCRIPTION Balance Forward SERVICE COSTS $ 720,304 SELLING, GENERAL PAYROLL & ORIGINATION & ADMINISTRATIVE EXPENSES COSTS EXPENSES CAPITALIZED $ 27,403 $ 374,656 $ N/A 20. 18.0 Insurance N/A N/A 18,054 N/A 21. 19.0 Provision for Doubtful Accounts N/A N/A 20,800 N/A 22. 20.0 Local Taxes N/A N/A (51,329) N/A 23. 21.0 Franchise, License & Permit Fees N/A N/A 52,776 N/A 24. 22.0 Technical & Creative Service N/A -0- N/A N/A 25. 23.0 Film Expense N/A -0- N/A N/A 26. 24.0 Studio Sets & Props N/A 264 N/A N/A 27. 25.0 Program Material & Supplies N/A 3,561 N/A N/A 28. 26.0 News Services N/A 4,148 N/A N/A 29. 27.0 Participation Expense N/A -0- N/A N/A 30. 28.0 Fees & Royalties N/A 384,595 N/A N/A 31. 29.0 Tariff & Leaseback Charges N/A N/A N/A N/A 32. 30.0 Overhead Allocations N/A N/A 434,895 N/A 33. 80.0 Other 51,972 65 147,850 N/A 34. Sub -Total 772,276 420,036 997,702 N/A 35. 90.0 Capitalized Cost Offsets (168,610) ( -) ( -) ( N/A) TOTAL $ 603,666 $ 420,036 $ 997,702 N/A INSTRUCTIONS L. The total of Columns A, B, & C should agree with totals reported on Statement of Profit and Loss, lines 13, 14 and 15. '2. Amounts appearing in Column D shall not be included in Columns A, B and C. 3. Please provide details on reverse side of Overhead Allocations, if any, as provided for in Section 599.40(J) (5). OPERATING ALLOWANCES NOT APPLICABLE FILE CODEI 80 (A) (B) (C) (D) Balance Additions Deductions Balance Account Beginning During During at End Line Operating Allowances Number of Year Year Year of Year 1. Property Insurance Allowance 2410.0 $ $ $ $ 2. Injury and Damage Allowance 2420.0 3. Pension and Benefit Allowance 2430.0 4. Miscellaneous Operating Allowance 5. 6. 7. 8. 2440.0 9. Total Miscellaneous Operating Allowance (Lines 5 to 8) 10. Total Operating Allowance (lines 1 + 2 + 3 + 9) 2400.0 $ INSTRUCTIONS 1. Enter above all information requested for Operating Allowances as entered on the accounts provided for in the UAS. '2. The total shown on Line 10, column D, shall equal the amount entered on line 42 of the Balance Sheet. 3. If you have established one or more miscellaneous operating allowances list their titles on lines 5 through 8 above, and briefly describe below their nature and purpose. CITY ®F 1THACA 1OB EAST GREEN STREET ITHACA, NEW YORK 14850 OFFICE OF MAYOR .RAANI.Ve, TELEPHONE: 272-1713 CODE 607 MEMO TO: W. Raymond Schlather, Chair of the Charter and Ordinance Comm. Mr. Richard Stumbar, Corporate Counsel Mr. Joseph Rundle, City Clerk Mr.'Robert Fletcher, Chair, City's Cable Conunission FROM: Mayor John C. Gutenberger DATE: May 29, 1984 SUBJECT: Amendment of American Television and Communications Corporation Franchise for the City of Ithaca (Tompkins County) Commission Docket No. 5117) Attached hereto please find correspondence received today from Mr. John L. Grow, Attorney at Latis in regard to the above entitled matter for your attention. I assume that there is nothing further required from my office in regard to this, if there is, please contact:us. Thank you. ATTACH. "An Equal Opportunity Employer with an Affirmative Action Program" RECEIVED SAY JOHN L. GROW loot ATTORNEY AT LAW May 23, 1984 Hon. John Gutenberger, Mayor City of Ithaca 108 East Green Street Ithaca, New :York 14850 New York State Commission on Cable Television 21st Floor, Empire State Plaza Albany, New York 12223 AUGUR BLOCK — POST OFFICE BOX 165 COOPERSTOWN, NEW YORK 13326 TELEPHONE (607) 547-8220 Re: Amendment of American Television & Communications Corporation franchise for the City of Ithaca (-Tompkins County) Commission Docket No. 51171 Gentlemen: By resolution adopted by the Common Council of the City of Ithaca March 7, 1984, the cable television franchise previously granted to American Television & Communications Corporation was amended to provide, among other things, for increases in the rates for basic cable television service in two stages. The resolution further provided that the rate increases "shall not take effect until after the anticipated satellite service is available to all subscribers 'in the primary service area,..." By Order Approving Amendments adopted by the Commission May 9, 1984, in Docket No. 51171 (No. 84-095), the Commission approved the amendments to the franchises including the increases in the rates for basic monthly service. The order provided that the approval of the rate changes is "subject to the Company notify- ing both this Commission and the City of Ithaca thirty days prior to implementation of each stage of the increase and to the Company providing the agreed upon satellite service." Please consider this notice in compliance with the aforementioned Common Council resolution and Commission order that American Television & Communications Corporation by its local division, American Community Cablevision, presently intends to inaugurate the distribution of satellite services to all subscribers in the primary service area in the City on or about June 1, 1984, and, further, that ACC intends to implement the first stage (from $5.50 to $7.00) of the increase in basic monthly service on July 1, 1984. In addition, ACC intends to implement all Hon. John Gutenberger NYS Commission on Cable Television Re: City of Ithaca May 23, 1984 Page 2 additional increases in• rates and charges authorized by the instant amendment also on July 1, 1984. Please find enclosed herewith an affidavit of service of this notice upon the co -addressee. I trust that this notice satisfies the conditions in the resolu- tion and the Commission'order. Should there be any questions, please do not hesitate to contact me. Very truly yours, JLG:smb Enc., cc: Richard Stumbar, Corporation Counsel, City of Ithaca Raymond Schlather,:Charman, Charter and Ordinance Committee Anthony Esposito, ATC Georgia Griffith, ACC STATE OF NEW YORK ) COUNTY OF OTSEGO ) ss.: AFFIDAVIT OF MAILING SUSAN M. BLISS, being duly sworn, deposes and says, that deponent is over the age of eighteen years; that on May 25, 1984, deponent mailed a copy of the within instrument on thbi New York State Commission on Cable Television, Albany, New York, by depositAng_atrue copy of the same enclosed in a post-paid properly addressed wrapper in a official depository under the exclusive care and custody of the United States Post Office Department at Main Street, Village of Cooperstown, County of Otsego, State of New York. SUSAN M. BLISS Sworn to before me this 25th day of May, 1984. ary Public -State of New York Commission Expires 3/30/85 JOHN L. GROW NOTARY FU -;LIC, State of New York I+o. 4616589 Oualificd in Otsego County Commission Expires March 30, 19_ STATE OF NEW YORK COMMIISSION ON CABLE TELEVISION In the Matter of Amendment of -Part -Part 598 of the Commission's Rules RECEIVED MAY 2 9 1984 84� .113' DOCKET NO. 90265 ORDER AMENDING' COMMISSION RULES .(Adopted: March 12,'1984; Released: ,May 17, 1984. On March a 1983•the Commission, released a Not ce •of Proposed Rulemaking in Docket Number -902.65, wherei-ri the .Commission proposed to amend Part 598 of -,the .Com_- misSion'.s rules concerning payment of just compensation to landlords. BACKGROUND Part 598 of the Commission's 'rules was -initially adopted in 1973 pursuant to the authority .vested in` . this' Commiss.ion by Executive Law section 82.8-. Sectio 3 :8'28- .of the 'Executive Law prohibits the 'fee,in. by excess of an amount set this Commission any a landlord by a cable television company in.returm.,for • 'allowi•ng'cable television facilities on a landlord's. pr.operty. Section 828 of the Executive Law and Part 5980t • the Commission's rules were' subject to judicial-. revi!eiwv in.the-lawsuit brought by Jean Loretto against Tele prompter.. Manhattan ' CATV . Corp . in New York Supxeme Court.-- The'case went through numerous appeals, and washeardi and• :decided in the Supreme Court of the United States. The:- facts of that lawsuit are sufficiently set forth. in the. reported decisions of the courts, and therefor& will: not be repeated here. -.The Supreme Court of the United States held•th'at ,section -828 of the Executive Law is a permissible. exercise of the State's police power but is a "taking" for which. just compensation must be paid. It: remanded • th°e. case to the New York Court of Appeals to consider. . whether or not the statute and the Commission's rules. -2 - properly require the payment of just compensation to .a.landlord whose property is used for the installation of cable television facilities. The New York Court of Appeals, by decision handed down February 17, 1983, upheld the constitutionality of the statute and the Commission's rules thereunder, with the exception of .-section 598.3 of the Commission's rul-es, which the court declared invalid. AMENDMENTS PROPOSED The first amendment proposed would change section 598.1 so -that Part 598 deals with cable television facilities on a landlord's property rather than cable television service. The proposed change was intended to'make clear that Part 598 of the Commission's rules deals with cable television facilities on a landl'ord's -`property for purposes of serving tentants in the build- ing as well as "crossover" purposes of serving adjacent buildings. A.requirement.was proposed that a cable television company must provide written notice to a landlord prior to.installing the cable television facilities. It was proposed that the notice indicate that the landlord is -entitled.to just compensation which shall be determined by;the New York State Commission on Cable'Television. The Court had found section 598.3 of our rifles to be'invalidbecause the 60 -day limitation on• the right to -apply to this Commission for establishment of'a'fee was not related in any way to a notice requirement. Therefore,.the Court reasoned, it was possible for the 'limitation to run and foreclose the possibility of a . • landlord, applying for a fee prior to the landlord's knowledge that his property had been used for -the instal - ration of cable television facilities. We,therefore, proposed to amend the section to maintain a 60 -day limi- on,'but to have the 60 days commence with notice to the landlord. Also proposed was a section that limits the amount of just compensation that can be set by this Commission •to one dollar, absent a hearing and determination that just compensation would be in excess of one dollar: The ,proposed amendment provided that a hearing maybe con- 'diXcted on the Commission's own motion or in response to the request of a landlord. However, a landlord:may only -3 - .,;request a hearing if he has already made timely appli- cation pursuant to Part 598 of the rules, and -received. a Commission determination that just compensationjs one dollar or less. INITIAL COMMENTS • Commission has -received comments on -the pro- 1:00§ed rules -from the following parties: Szold &-Brand- wen, P.C.; Jean Loretto; Moore, Berson, Lifflander.& Mewhinney; The New York 'State -Cable•Television Associa- • tion; The National •Satellite Cable Association and Group W Cable, Inc. • .:Szold 4 Brandwen,,P.C. expressed their concern that .,:the lack ,of a requirement in our rules that, notice must _be,provided .to all landlords where 'facilities -areJal, •.ready -in place mcould'bar-the claims of owners ---with- cable _facilities already in place." Jean Loretto suggests that the notice -to the land, Jord should include.specificationqpf the exact equipment, location and means of installation. She also argues . that the 60 -day statute of limitations is too short, •.; :especially, in light of the fact that a landlord.may choose to secure an appraisal report to submit with'his application. The rulesshould not .require that copies •of the -application be served: on all tenants-, argues •:Loretto, because that requirement is too coftly'for the landlord and the matter is .not relevant to the tenants. Finally, Loretto recommends' theCommission withdraw its August, .1976 Statement of Policy wherein it stated that :in most instances the reasonable fee to be paid.:a. landlord :shall be •one dollar. • • Moore, Berson, Lifflander & Mewhinney argue" that section: 828 of the Executive Law was "struck down" -by. the Supreme Court of the United States in Loretto -v. Telepromp- ter. They argue the proposed rules are unconstitutional violations of the right to be compensated for property taken for public use, and the right not to be deprived • of property without due process of law. Initial comments submitted by the New York State Cable •r.Television Association supported the proposed ruleS'and expressed their opinion that these rules -were fully -ade- quate to satisfy the constitutional requirements. .The .National Satellite Cable 'Association comriented that a landlord has a right to exclude cable television :from his premises. They further argued that section 828 of the Executive Law required,. landlords to permit access to their property so that a cable television company may provide basic service only.. Group W Cable, Inc.;;supported the proposed amend- ments and suggested that the rules should expressly provide that notice may be given to landlords where facilities are already installed. REPLY COMMENTS The New York State Cable Television Association submitted Reply Comments. The Association argues that - the comments representing landlords' interests demon- strate on emonstrateon their face the validity of the charge that property owners will exercise any form of obstruction in order to exact unreasonably high payments. With respect to the initial comments alleging the proposed rules to be unconstitutional, and arguing that a property owner has the right,to exclude cable televi- sion companies, the Association responds that•the'courts. have held otherwise. Further responding arguments of the Association include:.: (1) The 'Notice is a•condition of limiting the time within which applications may be filed. Therefore, without service of Notice, there'is no time bar and landlords' claims cannot be unjustly barred; (2) Any contract -purporting to be exclusive and: therefore barring a cable television company's access to a landlord's property is unlawful and void; (3) 'The one dollar threshold below which the Commission would hold a hearing only upon request by Petition for Reconsideration is supported by the record because a landlord's property value usually has a positive net change in value. -DI:SC.USS.ION The Commission, cognizant of the need to balance the competing interests of landlords and the cable television industry, -has reviewed the comments sub- mitted in this docket. - -5 - The value of cable to public communications in protecting and promoting health, safety, education and welfare has been recognized by the legislature and the judiciary, as has the landlord's right to compensation for the valueiof the,: property "taken" for cable purposes. . After review and analysis ofthe comments'sub- -mitted, and consistent- with :our desire to ensure Mair procedures for determination and payment. of Just compensation without unnecessarily hindering the development of `a statewide cable television' network., the rules adopted herein (fullyset forth•. in•Exhibit A) have been modified from those originally" proposed. Section 598.1 has been amended to include cable television facilities as well as cable television 'service. The amendment makes ''the language of section. 5.98.1 of our rules_ consistent with section, 828 of the ,Executive Law. Section 598.2 has been amended to substitute` the phrase"just compensation" for the. phrase "reasonable fee." The change makes clear the requirement:; that the Commission shall determine just compensation;. that amountwhich the law requires be, paidto a person whose property is taken. Section 593.a has been amended to -require a . cable television company to provide written.notice, to the landlord indicating the company's intention:; to install cable television service or facilities upon the."land- lord's .property. The notice mustbe served: at .least 15. days prior to commencing installation. The .Executive Director of .the ..Commission -has beep delegated 'the authority to Prescribe the manner.of service of the ' not ice . The section nowexpresslypro- vides that a notice may be served at any time on.(land- lords upon whose property cable television facilities were placed prior to March 12, 1984. "Section 598.4 has been amended to allow landlords four months to apply to the Commissionfor determination • of just compensation. The Commission agrees that the former 60 -day limitation may be too.short The -new four month period runs from the later of .the service. of notice or the installation of facilities. Therefore, contrary to a comment submitted, it is not possible forthe statute of limitations to bar an application for just compensation unless the landlord has been served with the notice described in section 598.3. Section 598.5 has been amended to require appli- cations to contain only those'facts which are relevant to a determination of just compensation for the taking of real property. The Executive Director has been delegated authority to permit the filing of additional information supplemental to the application. Such authority for filing supplemental information has been added 'to permit a landlord to supplement an application with, information that may not have been available to him within the four month period within which his appli- cation had .to be filed. Section 598.6 has been amended to eliminate the• requirement that a landlord serve copies of his appli- cation on all tenants in -his building. The Commission ,finds that the cost of serving copies on each_ tenant, is -an unnecessary.burden on the applicant'landlord, inasmuch as a tenant is not a party to any proceeding_ determining.compensation due a landlord from a cable television company-for.a taking of the landlord's property. Section 598.8 has been amended to require the Commission to conduct a hearing to determine just compensation. If the Commission determines, upon review of the application and responses, if any, that compensation may be in excess of one dollar, the Com- mission shall conduct a hearing. If the Commission determines compensation shall be one dollar or less, alandlord may, within 20 days, request that the Commis- sion conduct a hearing. Upon timely request, the Com- mission must conduct such a hearing. Our amended rules provide that the Commission may approve compensation, as agreed to by the parties .after the filing of an application, without first conducting a hearing. The rules as amended provide every landlord an opportunity to present a claim for the value of the taking of his property. Upon timely request, the landlord will be given the opportunity to present his facts and law at a hearing. The effective date of the amendments is March 12, 1984, the date on which the rules were filed with the Secretary of State. .THE. COMMISSION. ORDERS : . Pursuant to sections 815, 816 and 828 of the Executive Law, Part 598 of the rules of the Commis- sipn (9 NYCRR 598) are amended to read as indicated. in Exhibit A attached to this order. Commissioners Participating: William B. Finneran, Chairman; Jerry A. Danzig., Brian A. Luddy, Theodore E. Mulford, Commissioners. 9. EXHIBIT A Part 598 ofthe rules of the commission on cable television are amended to read as follows: 598.1 •Prohibition. Except as provided in section 598.2 of this Part, no landlord shall demand or accept any payment. from any cable television company in exchange for permitting cable television service or facilities on or within said landlord's property or premises. 598.2 Application for compensation. A landlord shall be entitled to the payment of just compensation, in an amount to be determined by the commission pursuant to section 828(1)(b) of the Executive' L'aw. 598.3 Notice. A cable television company. shall serve written notice to the landlord of its intent to install cable television service or facilities upon the landlord's property at least 15 days prior to commencing such installation: 'The Executive Director of the commission shall prescribe'the;proce- dure"'for service of such notice, and the •form and content:. of such notice,'which shall include at a minimum: (a) the name and address of the cable company, (b) the name and address of. the landlord, (c) the approximate date of the installation, and (d) a citation of section 828 of the Executive Law and Part 598 of the commission's rules. Notice may be served at any time on landlords upon whose property cable television service or facilities were placed prior to the effective date of this rule. 598.4. Time for applying. Any application made pursuant to this Part shall be filed within four months following the service of a notice as required by section 598.3, or within four months following the completion of the installation of cable television facilities, whichever is later. 598.5. Contents of application. Such application shall set forth specific facts relevant to the establishment of just compensation. Such facts should include, but need not be limited to, a showing of (a) the location and amount of space occupied by the installation; (b) the previous use of such space; (c) the value of the applicant's property before the installation of cable television facilities, and the value of the applicant's property subsequent to the installation of cable television facilities; and (d) the Method or methods used to determine such values. The executive director may, upon good cause shown, permit the filing of additional information supplemental to the application. 598.6 Service of application. Copies of the application filed with the commission shall be served upon the cable company or companies making the installation, and upon the municipality or municipalities in which the building pr buildings are located. 598.7 Responses. .esponses;to theapplication,if.,any,shall be served on all parties and on the commission within 20 days from the service of the application. 598.8 :Hearing and Determination. (a) If the commission finds that just compensation for 'the installation of cable facilities as described in the application may be in excess of $1.00, it shall conduct a hearing pursuant to section 816(3) of the Executive Law. (b) An applicant may, within 20 days from the release date of a commission order which sets compen- sation at $1.00 or less, file a written request for a hearing. Upon timely receipt of such request, the commission shall con- duct a. hearing pursuant to section 816(3) of the Executive Law. (c) If, after the filing of an application the cable television company and the applicant agree upon the amount of compensation, and the commission approves, the commission shall not be re- quired to conduct such hearing. • STATE OF NEW YORK COMMISSION ON CABLE TELEVISION the Matter of Amendments of Part 598 ) of the Commission's rules- ) 84-113-A Docket No. 90265 ORDER PRESCRIBING FORMS (Adopted: May 9, 1984; Released: May 17, 1984 On March 12, 1984 the Commission amended its rules concerning the applications by landlords for determination of just compensation for the installa• - tion of cable television facilities on their property (9 NYCRR Part 598). The amended rules require'a cable television company to provide written notice to a landlord before installing cable television facilities. The notice may also be served upon land lords upon whose property cable facilities were placed prior to March 12, 1984. The amended rules provide that the Notice shall be in .such form and contain such information as is prescribed by the Executive Director of the Commission. The rules also delegated to the Executive Director the authority to prescribe the procedure for service of the notice. Pursuant to delegated authority, the Executive Director has prescribed Form 598, entitled Notice of Intention to install Cable Television Facilities and Service, and Form 598-A, entitled Methods of Service of Notice to Landlords. A copy of each form is attached to this order. The Commission has reviewed these forms and finds them to be necessary and appropriate to carry out the purposes of section 828 of the Executive Law and Part 598 of the rules of the Commission. Therefore, pursuant sections 816(1), 816(5) and 828 of the Executive Law, the Commission hereby adopts Forms 598 and 598A as the official forms to be used for purposes of Part 598 of the Commission's rules. The Commission shall make such forms available upon request. When the form 598 supplied by the Commission is used by a cable television company, the appropriate information shall be added to the form and, if necessary, on additional paper. The Commission's form shall not be reproduced in any manner that would result in a smaller type face or smaller size paper. Cable television companies may, however, typeset and reproduce their own form to include appropriate information where there are blanks on the Commission's form, provided that: (1) the paper on which the form is printed shall not be less than 82, by 14 inches; and (2) the form shall contain the same wording as the Commission's form;. and (3) the type size on the front of the form shall not be smaller than 8 point, and; (4) the type size on the back of the form shall not be smaller than 6.point., The Commission. adopts this order with full knowledge that, pursuant to section 598.3 of the Commission's rules, the Executive Director may pre.- scribe changes in these forms, or additional forms, or both, as may be necessary to carry out the pur- poses of section 598.3 of the Commission's rules. SO ORDERED. Commissioners Participating: William B. Finneran, Chairman; Jerry A. Danzig, Brian A. Luddy, Commis- sioners. a STATE OF NEW YORK COMMISSION ON CABLE TELEVISION METHODS OF SERVICE OF NOTICE TO LANDLORDS 1'. Person to be served Service upon a landlord shall be made by serving: a) Every owner if the building is owned by one or more natural persons; b) Any partner if the building is owned by a partnership; c) Any officer, director, managing or general agent, or any other agent authorized by appointment or by law to receive service, if the building is owned by a corporation. Methods of service Service upon the person to be served shall be made by any of the following methods: a) By mailing the notice to the person to be served by registered or certified mail with return receipt requested, at his or her last known residence. Whether or not the return receipt is received by the company, service pursuant to this method shall be deemed complete for purposes of §598.3 of the Commission's rules, upon such mailing of the notice as long as the cable television company, if it does not receive a return receipt showing.' delivery at such address within 10 days from the initial mailing, serves an additional notice pursuant to paragraphs b, c, d, e, f or g of this_section; or b) By mailing the notice to the person to be served by first class mail at his or her last known residence or at the owner's address as indicated on the current assessment roles for the municipality in which the building is located, and by delivering or by mailing, by registered or certified mail, the notice to the person who collects rents from the tenants of the subject building, at the same address at which the rents are collected; or c) By delivering the notice to the person to be served; or d) By delivering the notice to a person of suitable age and discretion at the actual place of business, dwelling place or usual place of abode of the person to be served at his or her last known address; or e) By delivering the notice to the agent for service of the person to be served as designated under Rule 318 of the Civil Practice Law and Rules; pr g) Where service under paragraphs a, b, c, d, and e cannot be made with due diligence, by affixing the notice to the door of the building which is the subject of the notice, and by mailing the notice by first class mail to 1,) the person to be served at such person's actual place of business, dwelling place, or usual place of abode, or 2) the owner of the subject building at the owner's address indicated on the current assessment role for the municipality in which the building is located; or In such manner as the Executive Director of the Commission, upon request without notice to the landlord, directs, if the service is impracticable under paragraphs a, b, c, d, e, and f of this section. . Failure of the cable company to serve the notice as provided for herein shall be a violation of Commission rules, and may subject the company to statutory fines and penalties. Such failure shall not, however, delay or prevent the installation. ' S98rA -(3/84) • STATE OF NEW YORK COUNTY OF NEW YORK STATE COMMISSION ON CABLE TELEVISION ) ) (Cable Company) ) ) ) to ) ) ) (Landlord) ) ) ) ) NOTICE OF INTENTION TO INSTALL CABLE TELEVISION FACILITIES AND SERVICE PURSUANT to Section 828 of the New York State Executive Law as interpreted by the Supreme Court of the United States and the Court of Appeals of the State of New York , and 9 NYCRR Part 598, (Name of cable company and address) has the right to, and will install cable television facilities and service upon your property at on or about (Date) will bear the entire cost of the installation, operation or removal of its facilities and will also indemnify you for any damage caused by such installation, operation or removal. The cable television facilities and services must be installed in a manner that protects the safety, functioning and appearance of your property, and the convenience and well-being of your tenants. More specifically, the installation will: (give location of installa- tion, specification of equipment and materials used, etc.) Should you have any questions regarding the method or the date of installation, please contact at (Name of company representative) (Telephone) While it is likely that the installation of cable service will enhance the value of your property, there will be no charge to you for such installation. If the value of your property is not enhanced, you may be entitled to compensation set by the New York State Commission on Cable Television according to the procedures deline- ated-on-the_reverse side of this Notice. This Notice may be served, among other ways, requested. If you have any questions, you may write or call the company's representative; or write the NEW YORK STATE COMMISSION ON CABLE TELEVISION, Corning Tower -21 Floor, Empire State Plaza, Albany, New York 12223; or call the Commission at 1-800-342-3330. THE LANDLORD'S RIGHT TO INITIATE A COMPENSATION PROCEEDING WILL EXPIRE FOUR (4) MONTHS FROM THE SERVICE OF THIS NOTICE OR FROM INSTALLATION, WHICHEVER`" -IS LATER. by certified mail return receipt DATED: By Order of the "Neva York State Commission on Cable Television Form 598 (3/21/84) EXECUTIVE LAW §828. Landlord -tenant relationship 1. No landlord shall :i. interfere with the installation of cable television facilities upon his property or premises, except that a landlord may require: i, that the installation of cable television facilities conform to such reason- able conditions as are necessary to protect the safety, functioning and appearance of the premises, and the convenience and well-being of other tenants; ii. that the cable television company or the tenant or a combination thereof bear the entire.cost of the installation, operation or removal of such facilities; and iii. that the cable television company agree to indemnify the landlord for any damages caused by the installation, operation or removal of such facilities. b. demand or accept payment from any tenant, in any form, in exchange for permitting cable television service on or within his property or premises, or from any cable tele- vision company in exchange therefor in excess of any amount which the commission shall, by regulation, determine to be reasonable; or c. discriminate in rental charges, or otherwise, between tenants who receive cable television service and- those who do not 2. Rental agreements and leases executedprior to the effective date of this article may be enforced notwithstanding this section. 3. No cable television company may enter into any agreement with the owners, lessees or persons controlling or managing buildings served by a cable television, or do or permit any act, that would have the effect, directly or indirectly of diminishing or interfering with existing rights of any tenant or other occupant of such building to use or avail himself of master or individual antenna equipment. 9 NYCRR Part 598 APPLICATIONS BY LANDLORDS PURSUANT TO EXECUTIVE LAW, §828(1)(b) 598.1 Prohibition. Except as provided in section 598.2 of this Part, no landlord shall demand or accept any payment from any cable television company in exchange for permitting cable tele- vision service or facilities on or within said landlord's property or premises. 598.2 Application for compensation. A landlord shall be entitled to the payment of just com- pensation, in an amount to be determined by the commission pursuant to section 828(1)(b) of the Executive Law. 598.3 Notice. A cable television company shall serve written notice to the.landlord of its intent to install cable television service or facilities upon the landlord's property at least 15 days prior to commencing such installation. The Executive Director of the commission shall prescribe the procedure for service of such notice, and the form and content of such notice, which shall include at a minimum: (a) the name and address of the cable company, (b) the name and address of the landlord, (c) the approximate date of the installation, and (d) a -citation of section 828 of the Executive Law and Part 598 of the commission's rules. Notice may be served at any time on landlords upon whose property cable television service or facilities were placed prior to the effective date of this rule. 598.4 Time for applying. Any application made pursuant to this Part shall be filed within four months following the service of a notice as required by section 598.3, or'within four months Following the completion of the installation of cable television facilities, whichever is later. 598.5 Contents of application. Such application shall set forth specific facts relevant to the establishment of just compensation. Such facts should include, but need not be limited to, a showing of (a) the location and amount of space occupied by the installation; (b) the previous use of such space; (c) the value of the applicant's property before the installation of cable television facilities, and the value of the applicant's property subsequent to the installation of cable television facilities; and .(d) the method or methods used to determine such values. The Executive Director may, upon good cause shown, permit the filing of additional information supplemental to the application. 598.6 Service of application. Copies of the application filed with the commission shall be served upon the cable company or companies making the installation, 'and upon the municipality or municipalities in which the building or buildings are located. 598.7 Responses. Responses to the application, if any, shall be served on all parties and on the commission within 20 days from the service of the application. 598.8 Hearing and determination. (a) If the commission finds that just compensation for the installation of cable facilities as described in the application may be in excess of $1.00, it shall conduct a hearing pursuant to section 816(3) of the Executive Law. (b) An appli- cant may, within 20 days from the 'release date of a commission order which sets compensation at $1.00•or less, file a written request for a hearing. Upon timely receipt of such request, the commission shall conduct a hearing pursuant to section 816(3) of the Executive Law. (c) If, after the filing of an application the cable television company and the applicant agree upon the amount of compensation, and the commission approves, the commission shall not be required to conduct such hearing. - -:Lorc1Lo v. '1'el.eprompLer., 53 NY2d (1981), 455 US 9.04 (1982), NY2d 143 (1983). AMERICAN COMMUNITY CABLEVISION A DIVISION OF AMERICAN TELEVISION & COMMUNICATIONS CORP. 519 West State Street, Ithaca, N.Y. 14850 (6072723456 April 18, 1983 Mr. Robert Fletcher Chairman, City of Ithaca Cable Commission Ithaca, NY 14850 ;Dear Bob: I've attached the following financial information for the City of Ithaca: a) b) c) d) Return on Investment Statement of Assets, Liabilities and Net Assets Statement of Revenues and Expenses Notes explaining allocation methods All of the attached statements present information for the City of Ithaca alone and the entire system. The system numbers and calculations tie to the audit for the fiscal year ending June 30, 1982. I'am looking forward totmeeting:-withtthe Cable Commission and the Charter and Ordinance Committee at your earliest convienence:: Contact me if you have any questions. General Manager cc Tom Feige Brad Dusto Bob Hines C2P I(5 C (4Ul.ii CoMmlssIalf coMm. MAi°sNnINI A1fio(ZJ(I Ci(1 cj.rte-!< (oRt6.) CITY OF ITHACA DIVISION OF AMERICAN COMMUNITY CABLEVISION RETURN ON INVESTMENT. Year Ended June 30, 1982 Return Net loss before income taxes Plus interest Provision for income taxes Return Investment a) b) Average net property, plant and equipment, at cost Average net franchise cost Working capital allowance Investment $ 1,441,703 $ 4,843,739 Return on Investment 3.0% 1.0% City of Ithaca - Allocated (a) $ ( 21,916) . 110,138 88,222 ( 45,346) Combined Operations at Ithaca (b) $( 282,069) 379,786 97,717 ( 50,227) $ 42,876 $ 47,490 $ 640;040 737,123 64,540 $ 2,792,563 1,848,816 202,360 See accompanying notes for bases of allocation. Based on audited financial statements adjusted for rate of return analysis. Includes operations for all franchise areas of American Community Cablevision. • CITY OF ITHACA DIVISION OF AMERICAN COMMUNITY CABLEVISION ` STATEMENT OF ASSETS, LIABILITIES AND NET ASSETS June- 30, 1982 Assets Cash Accounts receivable, net of allowance for doubtful accounts Prepaid expenses Supplies Property, plant and equipment at cost Land and buildings Distribution system Vehicles and other equipment Construction in progress Less accumulated depreciation Net property, plant and equipment Franchise costs, net of accumulated amortization Liabilities and Net Assets Accounts payable Accrued liabilities Subscribers' advance payments a) b) Net assets City of Ithaca - Allocated (a) $ 17,174 18,427 386 3,982 39,969 71,439 866,901 74,150 1,012,490 ( 404,112) Combined Operations at Ithaca (b) $ 51,995 55,789 1,380 20,000 129,164 210,775 3,979,917 218,775 67,173. . 4,476,640 (1,759,938) 608,378 2,716,702 717,557 1,799,742 $1,365,904 $4,645,608 $ 6,027 57,844 61,497 125,368 1,240,536 $ 30,270 168,509 185,132 383,911 4,261,697 $1,365,904 $4,645,608 See accompanying notes for bases of allocation. Based on audited financial statements adjusted for rate of return analysis. Includes operations for all franchise areas of American Community Cablevision. CITY OF ITHACA DIVISION OF AMERICAN COMMUNITY CABLEVISION STATEMENT OF REVENUES AND EXPENSES Year Ended June 30, 1982 Revenues Service Connection and other Expenses City of Combined Ithaca - Operations Allocated (a) at Ithaca (b` $ 643,464 100,925 $ 1,970,885 282,505 744,389 2,253,390 Operating and origination 280,139 921,346 Selling, general and administrative 236,177 697,535 Depreciation and amortization 139,851 536,792 Interest 110,138 379,786 Net loss before tax Provision for income taxes Net loss after tax 776 305 ( 21,916) 11,265 2,535,459 (282,069) 144,983 $ (10,651) $ (137,086) a) See accompanying notes for bases of allocation. b) Based on audited financial statements adjusted for rate of return analysis. Includes operations for all franchise areas of American Community Cablevision. CITY OF ITHACA DIVISION OF AMERICAN COMMUNITY CABLEVISION NOTES TO ALLOCATED FINANCIAL STATEMENTS Year Ended June 30, 1982 Revenues, expenses, assets and liabilities have been allocated to the City of Ithaca ("Area") from the combined operations of all franchise areas which comprise American Community Cablevision ("System"). The primary bases of allocation (area - system) are: a) Annual average basic plus pay subscribers b) Annual average miles of plant Detail of the basis of allocation applied to individual accounts follows: Description Basis of Allocation Assets Cash and accounts receivable Total revenues Operating supplies Prepaid expenses: Pole Rent Tower site rent Property, plant and equipment: Land, building and improvements Equipment (cablecasting, office, test), vehicles, tools and radios Headend, tower, antennas, micro- A wave and earth station B B A A A Distribution system - pre - engineering, make ready, electronics, strand and hardware, freight, use tax and labor Cost at acquisition (1977) allocated on miles at that time; annual increases there- after allocated on annual increases in mileage Votes to Allocated Financial Statements (continued) Page• 2 Subscriber devices and materials (including converters and drops on customers' premises) Accumulated depreciation Franchise costs Liabilities Accounts payable Accrued payroll and related expenses Accrued data processing and audit fees Accrued insurance and property tax Accrued copyright fees . Accrued HBO programming Subscriber advance payments Converter deposits Revenues Service revenue (basic and pay) Connection revenue Other revenue Cost at acquisition (1977) allocated on basic subscribers at that time; annual in- creases thereafter allocated on annual in- creases in basic subscribers Total property, plant and equipment (excluding construction in progress) A, at acquisition date (1977) B Salaries and wages A Total property,. plant and equipment Basic service revenues HBO revenues Total service (basic and pay) revenues A Actual Actual A Notes to Allocated Financial Statements (continued) Page -3 Expenses Operating expenses: Salaries, wages and related expenses Repairs and maintenance Converter maintenance A and B A and B A House drop materials, labor and Annual increase in basic overhead (net of capitalization) subscribers Purchased signals A HBO programming costs HBO revenues Copyright fees Basic service revenues Equipment rent A and B Tower site rent A Pole rent B Franchise fees Actual Property tax B Other operating expenses A and B General and. administrative expenses: Bad debts Total revenues Other A Origination expenses A Marketing expenses A Notes*to Allocated Financial Statements (continued) Page 4 Depreciation Amortization Interest Total property, plant and equipment (excluding construction in progress) A, at acquisition date (1977) Net assets Martin Sheritlan Page 2 II. Unamortized franchise cost is properly included in rate base. , It was ATC's (the Company) determination that the public interest would be served through the Company's purchase and operation of Ceracche Television Corporation (Ceracche). On June 20, 1977 the Common Council of the City of Ithaca unanimously affirmed this determination by approving the transfer of the cable television franchise from Ceracche Television to ATC. Since Ceracche was not required to sell its cable system and ATC was not empowered to condemn, it was necessary to negotiate an arm's length purchase and sale agreement. ATC purchased Ceracche for what the Company considered to be the best possible price. Included in that price was an "acquisition adjustment" - an excess of purchase price over the fair market value of the physical assets. The acquisition adjustment represents capital dedicated to the operation of the Ithaca Cable TV System and the public interest. As such, the acquisition adjustment must be included in the rate base upon which the Company is entitled to earn a fair and reasonable rate of return. If you or the Cable Commission require any additional information, please contact me. Very truly yours, Ivy w. Parish Manager - Rate Analysis I BJP : l t cc: Brad Dusto AMERICAN COMMUNITY CABLEVISION May 9, 1986 Mayor John Guttenberger City of Ithaca 108 E. Green St. Ithaca, NY 14850 Dear Mayor Guttenber.ger: As you know, the City of Ithaca and American Community Cablevision .have been involved in a series of public meetings intended to review the performance of ACC under the current franchise and to explore the City's future cable -related needs and interests. These meetings are required as part of the refranchising process by the Cable Communications Act of 1984 and were officially designated by Common Council to meet those requirements in a resolution passed in February 1985. That resolution directed the City Cable Commission to conduct the meetings on behalf of Common Council and also directed the cable commission to file a report with Common Council at the conclusion of the meetings. It was our understanding that this report would be a public document, one that would be available not only to ACC but to the citizens of Ithaca as well. At the April 8, 1986 Cable Commission meeting, the Commission indicated that it would not be submitting its findings to Common Council, as directed by resolution, but would instead be directing its report to Jean Rice Associates. The Commission also indicated that the report would not be made available to the public. The decision to keep the Cable Commission's report from the public violates both the letter and the spirit of the Cable Act, as well as directly violating Council's own directives. The Cable Act specifically requires that the refranchising process be open to the public at every stage. Any report prepared in support of the refranchising process, particularily a report generated through meetings held as directed by the Cable Act, should therefore be made available to the public. 519 West State Street. Ithaca, New York 14850 607-272-3456 I am concerned about the decision to withhold this report from the public for two reasons. First, any individual or group who has participated in the public commentary should have the opportunity to see that his or her viewpoints have been fairly represented by the author(s) of the report. Second, the report itself might generate further public comment on the future cable - related needs and interests of the City, input which has been sorely lacking during the past six months. I hope that you will take appropiate steps to see that this report is made available to the citizens of Ithaca. The information upon which the report is based is public information; the summary and interpretation should also be made public. Sincerely, Georgia Griffith General Manager cc: Mr. Robert Hines, Esquire Ithaca Cable Commission I-thaca-Common Council GG/nwg . OFFICE OF MAYOR CITY OF ITHACA ' 1 DB EAST GREEN STREET ITHACA, NEW YORK 14850 MEMO TO: Raymond Schlather, Chair of the Charter and Ordinance Comm. Robert Fletcher, Chair of the Cable Commission FROM: Mayor John C. Gutenberger ,g,0-1 DATE: SUBJECT: December 16, 1985 American Community Cablevision - Franchise Amendment - increase in basic service—"----' Attached hereto please find a letter received today from Georgia Griffith • in regard to the above entitled matter for your attention. ATTACH. CC: Joseph Rundle w/attach. "An Equal Opportunity Employer with an Affirmative Action Program' AMERICAN COMMUNITY CABLEVISION December 11, 1985 John Gutenberger Mayor 108 E. Green St. Ithaca, NY 14850 Dear Mr. Gutenberger: REC:E'IVE LT I am writing to remind you that per the franchise amendment approved by Common Council in 1984 the price for basic television service in the City of Ithaca will increase from $7.00 per month to $8.00 per month on January 1, 1986. This price increase is the second part of a two-part agreement approved by Council. In addition, the monthly for additional outlets will increase from $2.00 per month to $2.50 and the monthly price for Expanded Tier service on an additional outlet will decrease from $4.50 to $4.00. All other prices in the City of Ithaca will remain the same. Customers will be notified of the price increase by mail before December 20. ACC is planning a number of exciting activities for 1986. Beginning in January we will provide each of our customers with our complimentary program guide, "CableWatch." CableWatch has been available in the past only to customers receiving Expanded Tier or Premium services. The guide includes complete program listings, a comprehensive customer information section and a magazine section called "ACCent" which features articles on people and issues within our service area. I'd also like to take this opportunity to announce that ACC will be pro- ducing a live nightly local news program beginning during the Summer of 1986. The program will concentrate on news and events in Tompkins County and will be cablecast each weeknight. The news program will be of broadcast quality, will run 30 minutes, and will be shown twice each night. We feel that a live, local news show will be an important addition to our community. I've attached a press release which includes details about the news program. Should you have any questions about the price increase or the news program, please feel free to contact me. Sincerely, Geo ia Griffithif General Manager Enclosure GG/cs 519 West State Street Ithaca, New York 14850 607-272-3456 AMERICAN COMMUNITY CABLEVISION November 26, 1985 CONTACT: Georgia Griffith 272-7875 ACC TO PRODUCE LIVE LOCAL NEWS PROGRAM ON DAILY BASIS Ithaca, NY -- American Community Cablevision will become one of the first cable television systems in the country to produce a live local news program when it introduces a 30 -minute, 5 -day per week local news cablecast during the summer of 1986. According to ACC General Manager Georgia Griffith, the program will be available to all of ACC's 23,000 basic service customers and will be shown two times each weekday evening, once live during the early -evening hours and again on videotape later in the evening. The time of each broadcast has yet to be determined. "The live news cablecast is an important addition to our local programming lineup," Griffith said. "We will produce a broadcast -quality news program that will keep the community we serve fully informed about the news and activities which make up daily life in Tompkins and Northern Tioga Counties." Griffith said that a great deal of work must be done to make the program a reality. ACC is searching for a news director to lead the project and is in the preliminary stages of designing a facility for the news operation. ACC owns the building at 517 W. State St. that is currently occupied by Sherwin-Williams and will renovate that building to include an additional studio, a news room, and office space for ACC's CableAds and marketing departments. Sherwin-Williams will move to a new store in January. --30-- 519 West Stale Street Ithaca, New York 14850 607-272-3456 OFFICE OF CITY ATTORNEY CITY DF 1'THACA 108 EAST GREEN STREET ITHACA, NEW YORK 14850 TO: Mayor Gutenberger:, Common. Council FROM: L. Richard'Stumbar DATE: ' October 2, 1984 SUBJECT: Cable Television Franchise .TELEPHONE: 272-1713 CODE 607 In light. of the.: controversy'' swirling around the cable t.v.' issue as well as the direction given .to me at the last Common Council meet- ing, Z will give a short summary, of our rights and remedies underthe cablefranchise agreement. - The relevant. provisions in our cable franchiseagreement are contained in paragraphs 15,18.,.22 and 37. thereof.. Paragraph 15 gives the term of the franchise and indicates that it may be revoked "in the event the Grantee (cable company) shall fail to comply with the terms and con- ditions herein set forth within sixty days after written notice of such failure has been received by the Grantee." Paragraph. 18 states in part "Any continuous and willful violation of. any section or provision of this franchise shall be grounds for can- cellatiori'of the franchise after due notice and public hearing." Paragraph 22 indicates that the Grantee's office "be so operated that complaints and requests for repairs or adjustments may be received at any time when any television signals are being broadcast. The Grantee shall respond to all service calls within 24 hours and correct mal- functions as promptly as possible." Paragraph 37 indicates as follows: ATC agrees to supply a written statement to each new customer prior to commencing installation for service to such new customer and to all existing customers prior to the effective date of any rate change and at least once per year. As everyone knows, following satellite hookup and the new ATC packages earlier in the summer, complaints from City residents proliferated. These complaints seemed to be in .three areas: "An Eaual Oonort„n,lv Fmntnvcr w,tn a., ntr..mm,v® Amino Prnaram•' (1) The stations (or lack thereof) carried by ATC (2) Confusion about rates (3) Bad service on the part of ATC The first problem has resulted in much dialogue and ATC has apparently initiated a viewer preference. survey. I will not dwell on this because. ATC. is not in violation of any franchise provision with regard to the station issue. I believe that pressure can be put on ATC on this issue both by the City and the State Cable TV Commission, but this is not a franchise issue at this time. . The second two issues, however, do raise strong concerns under the franchise agreement --particularly paragraphs 22 and 37 quoted above. Due to these concerns and after a public hearing held by our, local cable t.v. commission, I directed a letter at ATC indicating that the City felt. that ATC wasnot complying with thefranchise agreement and demanding that there be compliance within the sixty days set forth in, the franchise agreement. A copy of my letter dated August 20, 1984,. is enclosed. The response we got by way of a letter dated August 24 was. not satisfactory. With this background in mind, the question presented is, what are the City's remedies against ATC's alleged breaches.of the franchise agree- ment? The franchise document itself gives several avenues as follows:" a. Forfeiture of undertaking .. At the time that the franchise was first granted, ATC,.pur- suant to paragraph 29(a) thereof was required to post a $5,000 under- taking as security. Paragraph 29(b) allows Common Council to demand forfeiture of the security, or part of it, if the Grantee fails to com- ply with the construction schedule or "commits a material breach of any terms or conditions herein prescribed." ATC is entitled to notice and a hearing before City Council prior to any forfeiture. b. Shortened term of franchise Under paragraph 29(b) Common Council is given the power to shorten the term of the franchise "if it shall find that the Grantee has materially breached any of the terms of this franchise agreement. Again, notice to ATC and a hearing are required before a decrease of the term may be effectuated. c'. Revocation of the franchise Both paragraphs 15 and 18 of the agreement give the City the power to revoke the franchise. The standards, however, are different in the two sections. In paragraph 15 revocation may result 11 -2- if the Grantee fails to comply with the terms and conditions of the agreement within sixty days after written notice of such failure has been received by the Grantee. Revocation under paragraph 18 is allowed after "continuous and willful violation of any section or provision" of the franchise. Therefore, the question of franchise revocation depends on making a finding after a hearing that ATC has breached a condition of the franchise agreement - in this case either the notification of rate structure or the. service requirements of paragraph 22 - and that the breach was material. In researching similar cases I have been unable to find one case where the franchise was revoked. In general contract law a mater- ial breach isa breach of a substantive provision .of the contract -- which breach concerns an essential term of the contract. It is my opinion that both rate notification and the requirements are mater- ial terms. A complicating factor in a cable franchise agreement is the state involvement by way of the New York State Commission on Cable Tele- vision, §§811 through 831 of the Executive Law of the State of New York. The State Cable Commission has preempted the local preroga- tive to some extent. Specifically, §827 of the Law provices a procedure for the termination. of franchises. Section 827 provides for termination of a franchise by the Commission after public notice and opportunity for a hearing that the franchisee has committed a material breach of its franchise or any applicable provision of this article or of the regulations promulgated hereunder and has failed, without reasonable justification, to cure said breach within sixty days after having received written notice thereof from the Commission. There is no case law on the subject of whether or not the State Cable • Commission's power to revoke a cable franchise preempts the local government. I did discuss the matter with Attorney Edward Kearse, counsel for the. State Cable Commission. Mr.. Kearse's position is that localities have not been preempted by the Commission on this issue. Attorney. Kearse added much practical information. He did not know of any localities that have successfully revoked a cable franchise, although the State Commission has done it on several occasions but always on the basis of unsafe and inadequate equipment --never for bad service or rate problems. In fact, he was quite skeptical that the City could ever be successful in court on those grounds. -3- Kearse's recommendation is to formally resolve that the State Commission investigate ATC. The Commission reduced servicehe e (Therto C.ityroll back rates based on inadequate orthe Commission does not have this power.) He said, if prodded, will diligently pursue an investigation. There are many storm clouds on the horizon. The FCC has promulgated rules which take rate making out of the hands of locality place it solely within the direction of the cable company. The House of Representatives on :Monday enacted these rules into a law (not yet approved by the Senate). OCT -0 ,1985 CITY CLERK'S `OLRGE 10:16, tiY October 5, 1985 AMERICAN COMMUNITY CABLEVISION A DIVISION OF AMERICAN TELEVISION & COMMUNICATIONS CORP. 519 West State Street. Ithaca. N.Y. 14850 (607)2723456 Mr. John Gutenberger Mayor, City of Ithaca. 108 E. Green Street Ithaca, NY 14850 RECEIVED OCT F nss grECEI Vtb CT v 1985 CITY CLERK'S OFFICE Ithaca, N. Y. Dear Mayor Gutenberger: Enclosed is a copy of our Audited Financial Statement as requested in our franchise with your municipality. If you have any questions or comments, please feel free to contact me at :the above address or at 272-7875. Also enclosed please find copies of our Corporation Franchise Tax Report and Income Tax Return as required. Again, if there are any questions, feel free to contact me. Sincerely, • Georgia Griffith General Manager GG : sf Enc. CITY OF ITHAC 108 EAST GREEN STREET ITHACA, NEW YORK 1485 OFFICE OF MAYOR John C : 'Gutenberger MEMO TO: Joseph Rundle, City. Clerk FROM: Mayor John C. Gutenberger DATE: October 8, 1985 415 j eft CLERK'S 1985 lfka�a, !I. Y. e) ,\ LEPHONE: 272-1713 CODE 607 SUBJECT: American. Community Cablevision -Audited Financial Statement - Corporation Franchise Tax Report and Income Tax Return. Attached hereto please find the above entitled matter for permanent filing. Thank you. ATTACH. CC: Common Council Members Robert Fletcher Thys VanCort "An Equal Opportunity Employer with an Affirmative Action Program" AMERICAN COMMUNITY CABLEVISION DIVISION OF AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION Audited Financial Statements June 30, 1985 Audited Financial Statements Auditors' Report 1 Statement of Assets, Liabilities and Net Assets 2 1 Statement of Revenues and Expenses and Changes in Net Assets 3 Notes to Financial Statements 4 Ernst &Whinney 4300 Republic Plaza Denver, Colorado 80202 303/534-4300 The Board of Directors American Television and Communications Corporation We have examined the statement of assets, liabilities and net assets of American Community Cablevision Division of American Television and Commun- ications Corporation as of June 30, 1985, and the related statement of revenues and expenses and changes in net assets for the year then ended. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. As described in Note 1, American Community Cablevision is one of several divisions and subsidiaries of American Television and Communications Corporation, and has material transactions with its affiliates. In our opinion, the financial statements referred to above present fairly the assets, liabilities and net assets of American Community Cablevision Division of American Television and Communications Corporation at June 30, 1985, and its revenues and expenses and changes in net assets for the year then ended, in conformity with generally accepted accounting principles applied as described in Note 1 and in a manner consistent with that of the preceding year. Denver, Colorado August 27, 1985 �..x •11.:.7 AMERICAN COMMUNITY CABLEVISION DIVISION OF AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION STATEMENT OF ASSETS, LIABILITIES AND NET ASSETS June 30, 1985 ASSETS Cash --Note 3 $ 152,317 Accounts receivable, less allowance for doubtful accounts of $67,400 59,958 Prepaid expenses and supplies 24,040 Property, plant and equipment, at cost --Note 2: Land, building and improvements Distribution system Vehicles and other equipment Construction in progress Less accumulated depreciation Net property, plant and equipment 5,238,231 $ 259,931 7,356,164 498,685 131,737 8,246,517 (3,008,286) Franchise costs, less accumulated amortization of $680,251 --Note 2 1,555,439 LIABILITIES AND NET ASSETS Accounts payable Accrued liabilities Subscribers' payments and deposits $7,029,985 72,838 266,830 210,733 550,401 Net assets --Note 1 6,479,584 See notes to financial statements 2 $7,029,985 L.J AMERICAN COMMUNITY CABLEVISION DIVISION OF AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION STATEMENT OF REVENUES AND EXPENSES AND CHANGES IN NET ASSETS Year Ended June 30, 1985 Revenues: Service Connection and other Expenses --Notes 1 and 2: Operating and origination Selling, general and administrative Depreciation and amortization Interest $3,813,933 603,616 1,369,917 1,535,623 684,397 367,541 $4,417,549 3,957,478 Income before charge in lieu of income taxes 460,071 Charge in lieu of income taxes --Note 5 112,000 Net income 348,071 Net assets at beginning of year 4,819,040 Net advances from corporate office 1,312,473 Net assets at end of year $6,479,584 See notes to financial statements AMERICAN COMMUNITY CABLEVISION DIVISION OF AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 1985 1. Basis of presentation The Division is principally engaged in the operation of a cable television business, including premium programming. It operates in the City of Ithaca, New York and contiguous areas under nonexclusive franchise agreements. The Division has no separate legal status or existence. Its resources and existence are at the disposal of American Television and Communications Corporation (ATC) management, subject to contractual commitments by ATC to perform certain long-term contracts within the present divisional structure. Its assets are legally available for the satisfaction of debts of the entire corporation, not solely those appearing in the accompanying statements, and its debts may result in claims against assets not appearing therein. It is one of several divisions and subsidiaries of ATC, and transactions and the terms thereof may be arranged by and among members of the affiliated group. ATC is a wholly-owned subsidiary of Time Incorporated (Time). The Division records charges for selling, general and administrative expenses that are directly associated with it and a portion of the ATC expenses ($508,218) which are allocated to divisions and subsidiaries based upon sub- scriber levels. Interest charged to the Division by ATC ($371,277) was computed by multiplying 60% of the Division's average net assets by the average interest rate (11.02% for the year ended June 30, 1985) on ATC's outstanding borrowings. 2. Significant accounting policies Property, plant and equipment: Depreciation is provided on the straight-line basis over the estimated useful lives of the assets as follows: Building and improvements Distribution system Vehicles and other equipment 10-20 years 8-15 years 4-10 years Franchise costs: The Division has deferred costs incurred to acquire the franchises. Amortization of franchise costs is provided on the straight-line basis over the lives of the franchises. 3. Restricted cash Cash is restricted in the amount of converter deposits ($144,728). This amount is held by the Division and is refundable to customers. -4 AMERICAN COMMUNITY CABLEVISION DIVISION OF AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 1985 4. Related party transactions The statement of revenues and expenses and changes in net assets includes a charge for programming and promotional services provided by Home Box Office Incorporated, a subsidiary of Time. This charge was based upon customary rates. 5. Income taxes Operating results of the Division are included in the consolidated federal income tax return of Time. In lieu of income taxes, ATC charges the Division an amount which approximates statutory state and federal income tax rates on pretax income, less investment tax credits (ITC) on current year property additions. ITC amounted to approximately $162,000 for the year ended June 30, 1985, and an additional provision of approximately $37,000 for a reduction in basis of certain property, plant and equipment relating to the ITC utilized. ITC is accounted for on the flow-through method. 6. Leases Rental expense for the year ended June 30, 1985 amounted to $91,864. The Division had no significant noncancelable rental commitments. ,New Yerk State Department of Taxation and Finance Corporation Franchise Tax Report Article 9-A, Tax Law Attach Mailing Label Here -"- If label is wrong, please correct it. Employer Identification number For calendar year ` y ei or taxable period beginning ending REPO It% OCT10 1985'4, - CITY CLEM'S OFFICE Ithaca, N. Y. Fm er AI MERCA0 ANTVL ELEISION0AND C0 (� !CATIONS C S 160 INVERNESS DR W ENGLEWOOD CO 0112 Official use only Principal business activity v! S�f�MS State or country of incorporation Ar locac.-C Telephone number (3c�> 799 -/200 Business group code number from federal return 4SIs- • Date received Date 002( Date began business In New York State ill 4/77 Federal return was tiled on O 1120 • 0 1120-A • O 1120-6• (:21, Consolidated basis • 0 Other • Audit use only Have you been audited by the Internal Revenue Service in the past 5 years? ❑ No .N Yes If yes, list years /979' 178"/ (/.v Important: To avoid rejection of form, complete all items marked • Use zeros where they apply. Total assets 743, ; 7: , 9i( • Remit amount shown at line 13, Schedule A. MAKE CHECK PAYABLE TO NEW YORK STATE CORPORATION TAX SCHEDULE A - Computation of tax and payments of Estimated Tax (p/ease read instructions) Payment e 1. Allocated net income (enter from Schedule B, line 39) 2. Allocated capital (enter from Schedule E, line 55) 2a. New small business 0 first year 0 second year • 3. Alternative base (see instructions) 4. Minimum 5. Alloeated subsidiary capital (enter from Schedule C, line 40g) 6a, Tax: largest of 1,2,3 or 4 plus 5 (see instructions) 6b. Tax credits (see instructions). Attach forms and check those attached: ID CT -420 D CT -43• 0 CT -45• rE(CT-46• ❑ CT -46.10 6c. Net tax $/24l,91,7)X .10 • 1 97/9 7, -718 X .00178 • <74594))1 X.10 • 5250.00 so,S4).,3;.-7 X .0009 • If a refundable unload investment tax credit (Form CT -46.1) Is claimed, enter minimum tax at line 6c. 7. First installment of estimated tax for period following that covered by this report. a. Enter line 3 amount from Form CT -5 if that application for extension was filed. 2 3 4 5 6a 6b /G 372. - 2S� *�4�9 G I , 8L o GLCIa b. Enter 25% of line 6c (above) if Form CT -5, application for extension, was not filed and line 6c is over $1,000 (see instructions) 8. Total (add line 6c and line 7a or 7b) 9. Prepayments (from page 4, Composition of Prepayments, line e) 10. Balance (subtract line 9 from line 8) 11. Interest: Compute on lesser of line 6c or line 10 (see instructions) 12. Additional charge: Compute on lesser of line 6c or line 10 (see instructions) 13. BALANCE DUE (add lines 10, 11 and 12) PAY 14a. Overpayment (subtract line 8 from line 9) 14b. Overpayment to be credited to next period 14c. Overpayment to be refunded 14d. Refund of investment tax credit (from Form CT -46.1, line 16) 14e. Total refund (add lines 14c and 14d) 15. Issuer's allocation percentage (enter percentage from Schedule E, line 56, or combined filers use percentage from CT -3A, Schedule H, line 15 A copy of all pages of your federal return must accompany this report. 6c ,Z.50 7a or 7b 8 b - 2.5D 9 10 ;.S o e 11 12 13 No AI : 14a 14b 4c 4d 4e 115 CERTIFICATION BY AN ELECTED OFFICER OF THE CORPORATION 1 herby certify that this report, including any accompanying rider, is to the best of my knowledge and b7lief a true, correct and complete report. , Lt X Ms. Date Signature of officer Official title Date Signature of individual or name of firm preparing this report Preparer's address CT -311984) 'SCHEDULE B - Computation and Allocation of Entire Net Income 16. Interest deducted in computing federal taxable income 17. Federal taxable income before net operating Toss and special deductions 16 $ Se � 1 00t 8 3_ 7 Page 2 ADDITIONS 18. Interest on federal, state, municipal and other obligations not included in line 17 19. Interest paid to stockholders $ 13, 077, 432- l 20. Deductions directly attributable to subsidiary capital (itemize on rider) 21. Deductions indirectly attributable to subsidiary capital (itemize on rider) 22. New York State franchise tax deducted on your federal return 23. ACRS deduction (IRC Sec. 168) used in the computation of line 17 24. Total additions (add lines 17 through 23) 17 18 b % of Voting Stock Owned c Average Fair Market Value • 19 ),o7...7,432. • 20 Employer (dent. No. Capilo( `a7`f01.T,;>-••t I..r -- • • 21 $is,414,2-37t $ • 22 $/5,414.38 1.SD • 23 6,0/(09! 9 6.M • 24 1,'5,747 S011 • SUBTRACTIONS 25. 100% interest, dividends and capital gains from subsidiary capital (itemize on rider) 26. 50% of dividends from nonsubsidiary corporations 27. Foreign dividends gross -up pursuant to Sec. 78 of the I RC not included at lines 25 and 26 28. New York net operating Toss deduction (attach federal and NYS computations)...S.14).dt. 29. Allowable NY depreciation (Art. 9-A, Sec. 208.9(j); attach Form CT -399) 30. Total subtractions (add lines 25 through 29) 25 26 ter, Sas 644 • 27 28 .so,43-7,S 710 • • • 29 30 5z,49L.9�9 • • 31. Entire net income (subtract line 30 from line 24) 32. If line 31 is not correct, enter correct amount here and explain on rider 33. Investment income - complete lines a -j below: a. 50% of dividends from nonsubsidiary stock held for investment b. Interest from nonsubsidiary securities held for investment (include federal, state, municipal obligations). Itemize on rider c. Interest from subsidiary securities claimed by subsidiaries as a deduction for New York tax under Articles 9-A, 32 and 33. Do not include interest from DISCS. d. Interest on bank accounts (optional) e. Net capital gain or (loss) from sales and exchanges of nonsubsidiary securities held -- for investment. Attach copy of federal Schedule D f. Add lines 33a through 33e g. Deductions attributable to investment income h. Balance (subtract line 33g from line 33f) i. Apportioned New York net operating Toss deduction j. Investment income for allocation (line 33h less 331 but not more than line 31 or 32) 34. Business income for allocation (subtract line 33j from line 31 or 32) 35. Allocated investment income: line 33j x % m line 42, Schedule D 36. Allocated business income:.[ifie 34 x > •%,rf om line 63, Schedule G ,-, 37. TOTAL ALLOCATED INCOME: (add lines 35 and 36) 38. Optional depreciation adjustments (attach Form CT -324) .� 39. ALLOCATED TAXABLE NET INCOME (line 37 plus or minus line 3; enter on line 1) SCHEDULE C - Subsidiary Capital and Allocation Include all corporations except a DISC, in which you own more than 50% of the voting stock 31 ssz.G28 • 32 • 33 a. b. c. d • e. f. • h j• 34 • 8 SS 2,, g 2.8.> • 35 36 37 38 39 • 7 • <7 ,I,147> • • a Description of Subsidiary Capital b % of Voting Stock Owned c Average Fair Market Value d Current Liabilities of Parent Attributable to Subsidiary Capital e Net Average Fair Market Value (Col. c -Col. d) 1 Issuer's Allocation % 9 Value Allocated to New York State (Col. e x Col. f) List Each Item Use rider if necessary Employer (dent. No. Capilo( `a7`f01.T,;>-••t I..r -- • 1¢-,slto")-? loo % $is,414,2-37t $ $ 1S,4)4,138 /00 % $/5,414.38 A .... ,,- Gait', 0;s',i-- of Qoeek4 84-691.S361 _ /D0 2,-723,LoL ,2,77.3,_(.61, /00 2,n.', /-4L ATC s41•, c - 947088 3 79) /o O 313,594- 3I9,S9.. 4.7 14- 974- A..yyC49.0%s,.;-•- 'DI kola ei+- os- o78)S7 /00 u,,x4q *.V zo*A-4`1 Ns' /0 0 .2o 2.49, las k-c7L-, .,4.- Co,-«. ce,ro os -0 .•-s,64. loo-' 770 - • 7)0 /00 771) ikl D%.`{r Delbf-T U 14--,494.(,4.4- /00 /,34o,304" 1.3Go,3o4 /40 /, 3bQ'404 Pof)..f (e Co, /6,-b991737 roo io,�89,z90 ro.(989,290 too 1p, es93.90 /C4 r7 An. Cf tie If.}•T13 . �i ,,o/f,,.y� •••• --- f - Sae 5-i. o,)J(f. r 2.t5,S9A4$8 245,593 487 - o - - o - 40 Totals (including items on rider) $A9z, , 549,4,34 $ • $196, 349, 435, :. . Allocated subsidiary capital: Enter at Schedule A, line 5 $ So,4: =7• L,I•J1 I Ji541 Taxpayer's name - Employer Identification number `4/41' ar,(� T Cie (Jr5/a+ c......) CO's/44(1y,(4 fans Ce—, 1 /.3 - A. 9225 ) Location of corporation books and records 16,O TLUcr /1 955 pr. wQSf LI -74e ,woof) r ( d $O// SCHEDULE D - Investment Capital and Allocation. If your investment income and capital ratios are LESS than 25% you may leave this Schedule D blank and allocate business and investment income and capital by the business allocation percentage. For professional service corporations formed under Article 15 of the Business Corporation Law. the investment allocation is 100%. Such corporations need not complete this schedule. Page 3 Investment income ratio: Schedule B, Zine 33j, divided by line 31 or 32 % • •Investment capital ratio: Schedule E, line 51, divided by line 50 % • a Description of Investment (list each stock and security; use rider if necessary) b No. of Shares or Amount of Securities c Average Fair Market Value d Current Liabilities e Net Average Fair Market Value f g Issuer's Value Allocated Allocation o New York State % (Col. e x Col. f) $ $ $ % $ $ 41. Total (including items on rider) 42. Investment allocation percentage (divide line 41g by line 41e) 43. Obligations of the U.S. and its instrumentalities, and of N.Y., its political subdivisions and instrumentalities 44. Cash (optional) 45. Investment caital add lines 41e 43e and 44e SCHIEDULE E -Computation and Allocation of Capital • $ • $ $ $ • a Beginning of Year b End of Year Enter amounts in columns a and b 46. Total assets from balance sheet of federal return 47. Current liabilities $ 693,391, (,�9 9 48. Total Capital (subtract line 47 from line 46) 49. SUBSIDIARY CAPITAL (from -Schedule C, line 40e) 50. Business and investment capital (subtract line 49 from line 48) 51. 1NVESTMENT CAPITALTfrom Schedule D, line 45) _ 52. BUSINESS CAPITAL (subtract line 51 from line 50) 53. Allocated INVESTMENT CAPITAL (multiply line 51 by line 42, Schedule D) 54. Allocated BUSINESS CAPITAL (multiply line 52 by line 63, Schedule G)...Atek.4...o. 55. Total Allocated BUSINESS and INVESTMENT CAPITAL (odd lines 53 and 54; enter on line 2, Schedu/e A) $ 56. Issuer's allocation percentage (add line 55, Schedule E, and line 40g, Schedule C; divide by line 48, Schedule E). Enter also on line 15, Schedule A, page 1 000, gid $ 74.3, 1-,z,918 c Average Fair Market Value Basis $ 7 18 282-2/4- • 14-5 2.9S,S8=.,.. Taxpayers filing a combined report must compute the combined issuer's allocation percentage on Form CT -3A, Schedule H, line 15 If more than 50% of the stock of this corporation is owned by another corporation, give the name and employer I.D. # of the parent corporation: 1.'LI,G4!?, 7-x b' • Si ,664-Io4- 34-904'35 4 34-y0435 3oo�4,6J) 300,2.84611 • 9,19/,-7)? 9, 197.71? '9.998 % • Time 1-'4[- /3-138S,.0 • Parent corporation's name Employer identification number • If this corporation is a member of an affiliated federal group, list name and employer I.D.#of the primary corporation when different than above. • • Primary corporation's name Employer identification number Corporations organized outside New York State should complete the following for capital stock issued and outstanding: Par / /602- Shares, $ / 6 oz No Par Shares, $ All corporations must answer the following questions: a. Does this corporation have an interest in real property located in New York State? 5Yes • 0 No • b. Has the controlling interest in the corporation's stock changed during the period covered by this report? 0 Yes • If both questions were answered "yes" attach a rider with complete details. See instructions. CT•3(1984) Page 4 •SCHEDULE F — Officers and Certain Stock...alders. Include all appointed and elected offic , whether or not receiving any corn- ' ' pensation, and every stockholder owning in excess of 5% of taxpayer's issued capital stock who received any compensation. It is mandatory to list the name, address and social security number of all officers. Name and Address—give actual residence (attach rider if necessary) Social Security Number • Official Title Salary and All Other Compensation Received from Corporation $ }t j a , o p / 4L i/4 awl P J (including ' $ — • 57. TOTAL any amount on rider) SCHEDULE G — Business Allocation • Business income and capital may be allocated even if your only place of business is located in New York State. If property and wages are allocated outside New York, attach a rider indicating the nature, location and use of the property, and the number, location and duties of your employees. If investment income and capital ratios (Schedule D) are more than 85%, you may leave this schedule blank and allocate business and investment income and capital by the investment allocation percentage. 58. Average value of (value property owned by same method as in Sch. E, Co/. c): a. Real estate owned b. Real estate rented (attach rider) c. Inventories owned d. Other tangible personal property owned :Loses-4oits + f •t 42:s3 e. Total f. Percentage in New York State (divide Column A by Column B) 59. Receipts, in the regular course of business, from: • a. Sales of tangible personal property shipped to points within N.Y.S. b. All sales of tangible personal property Services performed d. Rentals of property e. Royalties f. Other business receipts g. Total • h. Percentage in New York Stateldivide"Column A by Column 8) 60. Additional receipts factor (Enter % from line 59h) 61. Wages, salaries, and other compensation•of employees, except general executive officers (a) Percentage in New York State (divide Column A by Column B) 62. Total of New York State percentages shown at lines 58f, 59h, 60 and 61a 63. BUSINESS ALLOCATION PERCENTAGE (divide line 62 by four or by the number of percentages) COMPOSITION OF PREPAYMENTS CLAIMED AT LINE 9, SCHEDULE A COLUMN A — NEM YORK COLUMN ■ — EVERVWNERE v I,0SS,96c) , 4-31. R)&, 7,3 6,8,142- 33 f,S.71,914- 84,2,.4-, 102— • $ 36,4, 90¢, 738 • 'f:T,Cvii4:i(I^iifiiihSti:;F..i:..:.: �: iipii}iX}:<: �'.i:: Vii•: <�}: So 8 %• SSS, SOI • 4,-79 o/lit 04 - 1-33, •40t 16s- 3 I4,, S6 3 7A-631, t S4 's (•S • $ 30g, 070; b a.5- • • 3, SS". 14s •• 1 $ 52-,4-4-611-54- " 2-,44-6,4S4 %• % %• DATE AMOUNT DEPOSIT SERIAL NUMBER a. Mandatory first installment b. CT -400 installments • (1) (2) (3) c. Payment with extension application, Form CT -5 d. Credit from prior years $ e. Total (odd lines a, b, c and d enter on Schedule A, line 9) File this report within 2!: months after close of report year Taxable DISC: file within 834 months after close of report year MAIL TO: Processing Unit P.O. Box 1909 Albany, NY 12201 CT -399 (8/84) • Arttcips' 9-A, 3,2 and 33 w York State Department of Taxation and Fi. :,e SCHEDULE FOR DEPRECIATION ADJUSTMENTS Taxpayer's Name I 11 f Av. o r 'ru,� %a-1 e✓, s .v-- Cg-.•s..4..v it., r t e+c Ig— 9 z 1.. SD Z SCHEDULE A — Computation of Allowable New York Depreci tion for current year (attach rider if necessary} Employer Identification Number a Description of Property b Class of Property (ACRS) c Date Placed in Service mo/day/yr d Cost or Other Basis e Accumulated N.Y. Depreciation taken in prior years f Federal ACRS Deduction g Method of Figuring N.Y. Depreciation h Life or Rate i Allowable New York Depreciation 0/LIC 5 Stir I911 ;s38,363 I.1-49,920 27,o84 bbb --t-t✓ 7^rII1 1981• 1 85x,769 i I s- -98I 637 709 le_ - It 347 394- 1Q83 1,809,139 4s2ti3lo 649,oZo 5sj 678,464- 1- 1984 �/ 45,I9 4- — 544,8ro ' 9 SGI,� 8 ':st S. r L` -7,,,Q 5' ii 19ts1 LI, 134,904 96.4,943 10,738,331 ; :;,•`°� `''ems v ' �nN, ��.�-.�:•.•'�., $ jr$ 6,191,9e)o II b New York State r98L S7 2674:4 19, 695,44$ 12,o16,07? $ 5 z, 4-i3O, z3 (v 9.345.,44-7 $ _ '',v: `""'```"? :-. /1'93 78,3436,14 Z 9, 793 22F10 16,477, ii9 \ 15,477, 2- t. 1 1984 1304t4t.787 — 18,ti.(ol Y /L,34,'G7,'!8 al)s sf �.p /67,i)- 1981 4, -797,0Gg 5 99, 633 41p 387 Si— z6. . - .2.79,3S3 /90-1, )2-0. G3, 54,44 ' Io9,Sg3 s�,o3� S' 1983 1�47v1o3 4,2.5 _ zr7,r8Z 98iSd� 1284 z,zr_�4.I — /4.7 34/, s4,7;5G , Fra-, P. ,aJ;.p- NatIcKGS co v1-kl_ JAS. 14, !(,7,42-14 -393 7 .Z937,7O(, Liar Liar' 2878,3 0/ 1,I4,-/6.192.17 . 1. Totals of columns d, e, f and i 9 $ ot,4.r� l �, ,�1,9�9 $ - $ 5z,46o,z39 .�<.Y :}?tet :>::>:: -.o�,«<;�x�.. STOP here if you have not disposed of any property acquired during 1981, 1982, 1983 or 1984. Enter total of columns f and on the appropriate line of your franchise tax return. See instructions. SCHEDULE B — Disposition Adjustment for Property Acquired during 1981,1982, 1983 or 1984. (attach rider if necessary) For each'item of property you list below, determine the difference between federal ACRS and New York State depreciation used in the computation of federal and NYS taxable income in prior years. • If ACRS deduction exceeds NYSdepreciation, subtract column e from column d and enter in column f. • If NYS depreciation exceeds ACRS, subtract column d from column e and enter in column g. a Description of Property ' b Class of 'Property •(ACRS) c Date Placed in Service d Total ACRS Deduction Taken e Total New York Depreciation Taken f Adjustment (d — e) g Adjustment (e — d) $ $ $ $ s ae. s cieJ4 le_ - It • 2. Total excess ACRS deductions over NYS depreciation deductions 2. 3. Total excess NYS depreciation deductions over ACRS deductions $ 36, G 7 0 ; :;,•`°� `''ems v ' �nN, ��.�-.�:•.•'�., $ 3. SCHEDULE C — Computation of Adjustments to Entire Net Income. a Federal b New York State 4. Enter amount from Schedule A, line 1, Column f. 5. Enter amount from Schedule A, line 1, Column i. 6. Enter amount from Schedule B, line 2. 7. Enter amount from Schedule B, line 3. 8. Totals - Column a and Column b. $ G o, 1p81,94 9-;`.x :< 2 : L,;ti k; : ;' $ 5 z, 4-i3O, z3 `= " - -. "' 3G 6 7o $ _ '',v: `""'```"? :-. G o, (-8/ 9G 9 $ S2, 4-96, 909 If you file form CT -3 CT -4 CT -32 CT -33 Enter line 8, Column a, on Schedule B, Zine 23 Schedule A, line 5 Schedule D, Part II, Column e Schedule B, line 32 CT -3S (see CT -3S -I - Instructions) Enter line 8, Column b, on Schedule B, line 29 Schedule A, line 7 Schedule D, Part II, Column g Schedule B, line 40 CT -399 coil,' (11/84) New York State Department of Taxation and Finance Claim for Investment Tax Credit Tax Law Section 210.12 For Period Ended 19 FILE WITH YOUR FRANCHISE TAX REPORT, FORM CT -3 EMPLOYER IDENTIFICATION NUMBER /3 - 29 21S02-• FILE NUMBER oopoo (, (d) LIFE (YRS) (e) COST OR OTHER BASIS SEE INSTRUCTIONS ON FORM CT -464 NAME - • A.I H I f Q N To lc vi =eo•+ti t....4 J Cp-w . ow i r 4irOvS C Ca.i(e Ti) fiozpn :- -, NUMBER AND STREET .� .} /6o LK�rAre ss r WoSI 6/1/81 THROUGH 6/30/82.... J CITY OR TOWN. STATE -AND ZIP CODE ' 1 f r.J d v dl , C -O ge0 11 Z -- ON OR AFTER 7/1/82 6% SCHEDULE A — PART I - COMPUTATION OF INVESTMENT TAX CREDIT 1, Investment tax credit - Schedule B-1, line 13, col. (g) and Schedule B-2, line 14, col. (g) 2. Additional investment tax credit - Schedule C, line 15, col. (c) 3. Unused investment tax credit from preceding period 4. TOTAL - line 1 through line 3 5. Recapture of excess credit taken in previous period (from Schedule E, line 16) 6. NET INVESTMENT TAX CREDIT - (line 4 minus line 5) -see instructions 1 2 3 4 5 6 $ 517,,907 PART II - COMPUTATION OF UNUSED INVESTMENT TAX CREDIT AVAILABLE FOR CARRY FORWARD TO FUTURE PERIODS 7. Tax - From Form CT -3, Schedule A, line 6(a) less any credits claimed on Forms CT -45 and /or CT -3c: 8. Minimum Tax - See CT -3 Instructions, under Tax Rate. 9. 10. 11. ;12. Investment tax credit used this period (line 7 minus line 8). Investment tax credit available (line 9 less line 6). 10 -s 1 7-9.% Refund of investment tax credit claimed on line 16, Schedule G, Form CT -46.1. 11 Unused investment tax credit available to be carried forward (line 10 less line 11). 1_12 1$__ 451 7.'7 i SCHEDULE B-1 - INVESTMENT TAX CREDIT - PROPERTY LOCATED IN NYS ON WHICH INVESTMENT TAX CREDIT I5 CLAIMED (See box be ow for percentages) (o) ITEMIZED DESCRIPTION OF PROPERTY (bl PRINCIPAL MANUFACTURING AND PRODUCTIVE -" ''USE. (c) DATE ACQUIRED (d) LIFE (YRS) (e) COST OR OTHER BASIS (f) RATES RATES (9) INVESTMENT TAX CREDIT col. (f) x col. (e) Ca.i(e Ti) fiozpn :- -, I• 6/1/81 THROUGH 6/30/82.... 5% ON OR AFTER 7/1/82 6% i.-iI VS , • 'IS • .. - • , -V b— .s.9iLl• 13. TOTAL Enter column (g) total at line 1, Schedule A S 49 I .si 2 :, t " `:32.9 4-9s— CT -46 INCLUSIVE DATES RATE PERCENTAGE 1/1/74 THROUGH 12/31/77 1/1/78 THROUGH 12/31/78 2% 3% RATES 1/1/79 THROUGH 5/31/81 4% 6/1/81 THROUGH 6/30/82.... 5% ON OR AFTER 7/1/82 6% CT -46 CT.13M/4M New York State Department of Taxation and Finance For calendar year 1 9 or taxable period beginning Metropolitan Transportation Business Tax Surcharge Report ending Article 9-A, Section 209-B 84 Official use only Attach Mailing Label Here Employer identification number /3 — 29 File number gP 6 Z Mail to: Processing Unit P.O. Box 1909 Albany, N.Y. 12201 Name • A►ttW r %r (e 1�i o. (Dui rol/C'+.S Number Street /Go • (l)P State City or town Co Zip Dote received ALL corporations required to file Forms CT -3, CT -3A or CT -4 MUST complete this form. Does the above named corporation (or if filing on a combined basis, any corporation included in the combined group) do business, employ capital, own or lease property or maintain an office in the Metropolitan Commuter Transportation District, which includes the counties of New York, Bronx, Kings, Queens, Richmond, Dutchess; Nassau, Orange, Putnam, Rockland, Suffolk and Westchester? CI Yes• XNo• If you answered yes, complete this form and pay the tax surcharge. - If you answered no, it is not necessary to complete Schedules N or 0. However, this form MUST be signed by an officer and returned to: Processing Unit, P. 0. Box 1909, Albany, NY 1220.1 Remit amount shown at line 9, Schedule N - Make check payable to N.Y. State. Corporation Tax SCHEDULE N — Computation of Tax Surcharge PAYMENT • 1. Net New York State franchise tax from Form CT -3, CT-3A,or CT -4 2. M.C.T.D. Allocation percentage from Schedule 0, line 15 3. Allocated tax— multiply line 1 by line 2 4. TAX SURCHARGE — Multiply line 3 by 17% 5. Prepayments (a) Payment with CT -5 PERIOD(b) Credit transferred from Form CT - 1 2 3 • %• • • Total Prepayments claimed 6. Balance - subtract line 5 from line 4 7. Interest 8. Additional charges 9. BALANCE DUE - Add lines 6, 7 and 8 5 6 $ 7 8 9 • • S J./,•n/E - • $ 10. Overpayment - Subtract line 4 from line 5 a. Refund of overpayment b. Credit to NY. State franchise tax CT - PERIOD • 10a $ • 10b $ • CERTIFICATION OF AN ELECTED OFFICER OF THE CORPORATION I hereby certify that this report, including any accompanying rider, is to the best of my knowledge and belief a true, correct and complete report. yb-1 z°�,u�1,� ,sr, 51,, -.4-c,,-(' 1' Qfficial title Date Signature of officer Date Signature of preparer or name of firm - Preparer's address r ,i-120 Department of the Treasury Fes cafandar 1UI 4 sr tax year beginning ) $4, ending xf Internal ► I.%� rtlernaI Revenue Service For Paperwork Reduction Act Notice, see page 1 of f Onitlyitionsti , U.S. Corporation Income Tax Return J Check if a— & Consolidated return ❑ L Personal Holding Co. ❑ Use RS label. Other - Name AffEJ /Aw 7LEv/ye4q e AI Number and street - C Burk�n Code No. (See wise 160 /i✓✓E/1 NCs S Dari r E WEST ��-1 v q the please City or town. State. and IIP code 1 J m Instructions) print CITY CLERK'S OFFICE H8a5 N type- _4-1Y6I Ea%DO.D eeLOEADD 20 tib id ) OMB No 1545•D123 11084 \rlt..ir toyer Identification number r* 9A1asp ' �E. D.tJn rporated itt /6. ' 78 F:+ToUI is (see Specific Instructions) k Do■ if there has been a change in address from the previous year . . . - . . . . - J,,. . . . . . . 1 (a) Gross receipts or sales. '73,O.or/_!'Z_ (b) Less returns and allowances .. ' --'\, Balance ► 'i(t) .733.0410,/.2] 2 Cost of goods -sold and/or operations (Schedule A) f , :- �2 .7 5- D, - ` 3 3 Gross profit (line 1(c) less line 2)` A3•7 G&ll5 , E 4 Dividends (Schedule C) 4 ' 61 Q 47 p r 5 lnterest _ - 5 2ZG/Q,,P,',i . 6 Gross rents 6 « 7 Gross royatties . . . 7 n8 Capital gain net income (attach separate Schedule D) 8 as 950,747 9 Net gain or (loss) from Form 4797,1ine 14(a), Part II (attach Form 4797) 9 7 S Y, G o3 10 Other income (see instructions—attach schedule) SascoN.E sZ . 10 6 4:5-4/ 4 y,'• 11 TOTAL income—Add Tines 3 through 10 and enter here ► 11 'n. q 1 3(: _a 12 Compensation of officers (Schedule E) 12 13 (a) Salaries and wages-__Sr2,,.V.442Z -(b) Less Lobs credit --- (�.� Gif Balance ► 13(c) S; s, 47/5"‘/ 14 Repairs 14 .r70g7O3 15 Bad debts (Schedule F if reserve method is used) 15 a. 701 21'.3 16 Rents 16 ',3,1/94/3 17 Taxes. 54•+4orr.E 1Z . 17 /3, kF0.98/ 18 interest 18 /1,4017 P.t7. 19 Contributions we Instructions for 10% limitation) . . 19 236, 9.13" 1 20 Depreciation (attach Form 4562) 20 7$ 7A 03 3 ' t 21 Less depreciation claimed in Schedule A and elsewhere on return . 121(a1 1 21(b 78.7.1'1.e33 22 Depletion 22 23 Advertising 23 7. /0S PP/ 24 Pension, profit-sharing, etc. plans 24 L44,943- 4496525 25Employee benefit programs . _ 25 4, / P2_257 26 Other deductions (attach schedule) .................MCPJ .2r. . 26 g8 &o4.,647 27 TOTAL deductions—Add lines 12 through 26 and enter here ► 27 7 / 3.'/, 3 8.2 -28 Taxable income before net operating loss deduction and special deductions (line 11 less line 27) . 28 I I; 9 et .7 P cr0 29 Lou: (a) Net operating loss deduction (see instructions) 29(a) 71f (b) Special deductions (Schedule C) - I29(b E I S:J 7 P! - 9(c 6 187 P 30 Taxable income pine 28 less line 29(c)) 30 //. 379.065 31 - TOTAL TAX (Schedule J) 31 32 Payments: (8)1983 overpayment allowed as.a credit . y�������/� (b) 1984 estimated tax payments . (c) Less 1984 refund applied for on Form 4466. . ( ) ac - (d) Tax deposited with Form 7004. . . , 1– (a) Credit from regulated investment companies (attach Form 2439). . (f) Credit for Federat taxon gasoline and speciat fuels (attach Form 4136) 32 33 Enter PENALTY for underpayment of estimated tax—check P. if Form 2220 is attached 33 - any 34 TAX DUE—If the total of tines 31 and 33 is larger than line 32; enter AMOUNT OWED 34 _ 35 OVERPAYMENT—if line 32 is larger than the total of lines 31 and 33., enter AMOUNT OVERPAID 35 36 Enter amount of line 35 you want: Credited to 1885 estimated tax ► - 1 bfsnded ► 36. Please eclare that I have examined this return. including accopanying schedules Under penalties of pery`� l dm belief, It a true. correct, and complete. Declaration of preparer (other than taxpayer) a based on all information X 1 yl� % and statements. and to the best of my knowledge and Of which preparer has any knowledge Ass/SrANr G.O/Vr20 (-1-6-.42 Hee nature of officer - Date _ Title Paid Prepsrer's signature Date - Check if 'Preparers seHtm• ► ploys ❑ social secunty number i Preparers 14e Only Frin'` s (. E.t No. ► ,M, ,,yein and address _ - ZIP code ► • 2231;2, t Form 1120(1984) ;schedule `A //�� [Form 1120j //II AME,Q/ a/✓ Te4E-1//3701i * e4h-hvru/v/L/! r/dti3 eD,Pl? Cost of Goods Sold and/or Operations (See instructions for line 2, page 1) 215 11-84 3 -.2,9a.2 sol. Page 2 1 Inventory at beginning of year 2 Purchases 3 Cost of labor 4 Other costs (attach schedule) 5 Total—Add lines 1 through 4 6 Inventory at end of year 7 Cost of goods sold and/or operations—Line 5 Tess fine 6. Enter here and on line 2, page 1 . 8 (a) Check all methods used forvaluing'closing inventory: (i) ❑ Cost (ii) ❑ Lower of cost or market as described in Regulations section 1.471-4 (see instructions) (iii) ❑ Writedown of "subnormal" goods as described in Regulations section 1.471-2(c) (see instructions) (iv) ❑ Other (Specify method used and attach explanation) ► (b) Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) (c) If the LIFO inventory method was used for this tax year, enter percentage (or amounts) of closing inventory computed under LIFO 8(c) I 2 3 4 5 6 7 (d) If you are engaged in manufacturing, did you value your inventory using the full absorption method (Regula- tions section 1.471-11)? 0 Yes ❑ No (e) Was there any change in determining quantities, cost, or valuations between opening and closing inventory? - , - Yes ❑ No ff "Yes," attach explanation. Fchedule, Dividends and Special Deductions (See instructions for Schedule C) 1 Domestic corporations subject to 85% deduction (other than debt-financed stock) . 2 Debt-financed stock of domestic corporations (section 246A) 3 Certain preferred stock of public utilities 4 Foreign corporations subject to 85% deduction 5 Wholly-owned foreign subsidiaries subject to 100% deduction (section 245(b)) . 6 Total—Add lines 1 through 5. See instructions for limitation 7 Affiliated groups subject to the 100% deduction (section 243(aX3)) 8 Other dividends from foreign corporations not included in lines 4 and 5 9 Income from controlled foreign corporations under subpart F (attach Forms 5471) 10 Foreign dividend gross -up (section 78) 11 DISC or former DISC dividends not included in line 1 and/or 2 (section 246(d)) 12 Other dividends 13 Deduction for dividends paid on certain preferred stock of public utilities (see instructions) . 14 Total dividends—Add lines 1.through 12. Enter here and on line 4, page 1 . . ► 15 Total deductions—Add lines 6.7 and 13. Enter here and on line 29(b), page 1 LiwitFtwa Compensation of Officers (See instructions for line 12, page 1) Complete Schedule E only if total receipts (line 1(a), plus lines 4 through 10, of page 1, Form 1120) are 5150,000 or more. (A) Dividends received (C) Special deductions: multiply (A) X (B) 85 see instructions 59.13 85 100 100 I D 9:7* 61? 7 1. Name of officer 2. Social security number 3. Percent o1 time devoted to business Percent of corporation stock owned 6. Amount of compensation 4. Common S. Preferred S. Recoveries 1979 1980 1981 1982 1983 1984 % % % P.7 /SS P9S.392 /7,/ fa 96 96 96 /S4975' s/gl 91,`1 sak/ee 1.60,2 740 gin.9PP 011/7 % 96 96 7, D70,.210 /y.7.,7L0,6519 .2.0`13 974 % . % 96 ..1G,/ L'f,P /9,077.723 96 96 % -7,0/5,:/8 39Yr.//2 Fa:s, /G-1 96 96 96 ' 96 % 96 Total compensation of officers—Enter here and on fine 12. page 1 titie ule F Bad Debts—Reserve Method (See instructions for line 15, page 1 1. Year acunts 2. Trade rotes andco recervab a outstanding at end of year 3. Sales on account4-Current Amount added to reserve 6. Amount charged against reserve 7. Reserve for bad debts at end of year year's provision S. Recoveries 1979 1980 1981 1982 1983 1984 /..17f .LiiL kg/k'/s45 41'4 592. P.7 /SS P9S.392 /7,/ fa /So,i/ 1 - eil6FLIS.L 1 /45- gig- /S4975' s/gl 91,`1 sak/ee 1.60,2 740 gin.9PP 011/7 fr in,/ D09 1/'i.No21942 36w520 7, D70,.210 /y.7.,7L0,6519 .2.0`13 974 47'1 ono 4//s.,5 /3 3 48/_3 k0 ..1G,/ L'f,P /9,077.723 '7 9/ / 364 ._25.5,dy0,/62 ,2_,7o9,..213 -7,0/5,:/8 39Yr.//2 Fa:s, /G-1 1115991 Form 1120(1964) Schedule.! Page 3 Tax Computation ..� (See instructions) �iireEliegA/ igLE60s/oNAKD eok,44c-i4or ,u 's Cope# 1 Check if you area member of a controlled group (see sections 1561 and 1563) ► ❑ JOrD`JDJ"`''" 2 If line 1 is checked, see instructions and enter your portion of the $25,000 amount in each taxable income bracket: (i)$ <<)$ vii)$' cry)$ 3 Income tax (see instructions to figure the tax; enter this tax or alternative tax from Schedule D, whichever is less). Check if from Schedule D ► 0 3 4 (a) Foreign tax credit (attach Forrn 1118) (b) Possessions tax credit (attach Form 5735) (c) Orphan drug credit (attach Form 6765) (d) Credit for fuel produced from a nonconverdional source (see instructions) (e) Research credit (attach Forrn 6765) (f) General business credit. Enter here and check which forms are attached 0 Form 3800 0 Forrn 3468 0 Form 5884 0 Form 6478 ❑ Form 8007 5 Total—Add lines 4(a) through 4(0 6 Line 3 less line 5 7 Personal holding company tax (attach Schedule PH (Form 1120)) 8 Tax from recomputing prior -year investment credit (attach Form 4255) Minimum tax on fax items (see instructions—attach Form 4626) 10 Total tax—Add Tines 6 throu; h 9. Enter here and on line 31, • - e 1 Additional Information (See instruction F) Ill Did the corporation claim a deduction for expenses connected with: (1) Entertainment facility (boat, resort, ranch, etc.)? (2) Living accommodations (escept employees on business)? . (3) Employees attend* conventions or meetings outside the North American area? (See section 274(h).) . . . (4) Employees' tamiha at conventions or meetings? If 'Yes,' were any of these conventions or meetings outside the North American area? (See section 274(h).) (5) Employee or family vacations not reported on Form WZ? . 1 (1) Did the corporation at the end of the to par own, directly or indirectly, 50% or more of the voting stock of a domestic corporation? (For rules of attribution, we section 267(c).) . If "Yes," attach a schedule showing: (a) name, address, aed i:leritifying umber; (b) prcentage owned; (c) taxable intone or (loss) before NOL mad special deductions (e.g., If a Form 1120: from Form 1120, be 28, page 1) of sech corporation for the tax par ending with or within your her year; (d) highest amount owed by the corporatioei to such corporation during the year, and (e) best amount awed to the corporation by soda corporation during the year. (2) Did any individual, partnership, corporation, estate or trust at the end of the bac year own, directly or indirectly, 50% or more of the corporation's voting stock? (For rules of attribution, see section 267(c).) If 'Yes,' complete (a) through (e) . . . (a) Attach a schedule showing name, address, and identifying 'umber. (b) Enter percentage owned ► (c) Was the owner of such voting Oak a person other than a U.S. person? (See instructions) (Note: If "Yes,' the corporation may have to file Form 5472.) 11 "Yes," enter owner's country ► (d) Enter highest amount owed by the corporation to such owner during the year ► (e) Eater highest amount owed to the corporation by such timer during the year I. FsN E. 6 7 8 9 10 (Note: For purposes of 1(1) and 1(2), "highest amount owed" includes bans and accounts receivable/payable.) . 1 Refer to the list in the instructions and state the principal: Business activity ► Product or service ► K Was the corporation a U.S. shareholder of any controlled foreign corporation? (See sections 951 and 957.) If "Yes," attach Form 5471 for each such corporation. L At any time during the tax par, did the corporation have an interest, im or a signature or other authority over a bank account, securities account, or other financial account in a foreign country? . . . . (Sae instruction F for exceptions and filing requirements for form TD F 90-22.1.) II "Yes,' write the reeve of the foreign country ► M Was the corporation the grantor of, or transferor to, a foreign trust which existed during the current tax year, whether or not the corporation has any beneficial interest in it? a If "Yes," the corporation may have to file Forms 3520, 35204 or 926. N During this tax year, did the corporation pay dividends (other than stock dividends and distributions in uchange for stock) in excess of the corporation's current and accumulated earnings and profits? (See sections 301 and 316.) If "Yes," file Form 5452. If this is a consolidated return, answer ��� here for parent corporation and on Form 851, Affiliations Schedule, for each subsidiary. O During this tax year did the corporation maintain any part of its computerized to records on a computersystem? P Check method of accounting: (1) ❑ Cash (2) 0 Accrual (3) 0 Other (specify) e. 1 % Foran 1120(1984) ME/C/G¢Af T L-E✓trol.(/ AA ) C.. o n m v a re- .4.1 7104( Coif P /3-29z2S02-. Page 4 •Sch dule.:1. Balance Sheets Beginning of tax year End of tax year Assets 1 Cash 2 Trade notes and accounts receivable . . (a) Less allowance for bad debts 3 InventoriesD` 4 Federal and State government obligations. . 5 Other current assets (attach schedule) . . 6 Loans to stockholders 7 Mortgage and real estate bans 8 Other investments (attach schedule) . . 9 Buildings and other depreciable assets . . . (a) Less accumulated depreciation . . . 10 Depletable assets (a) Less accumulated depletion• 11 Land (net of any amortization) 12 Intangible assets (amortizable only) . . . (a) Less accumulated amortization . . . 14 Total assets13 Other assets (attach schedule) (A) (a) (C) (D) % / 3 - 9 G — 7 G _ — 7 // d 880' 0- ,' // ///j// 3 DO / /1/1.2.4 66 434 3os I 6 8 ' 5 7 8 / r - 2-.0 3/�, - i 4 7 / _ 60 %////j / / 39" z97 7,0 208 3 . 15 7 / / 7 / // % / r %/% , : 3 - Pa 7 o 0.2 .2 G S 7/ ; . r % / 0 : .7 S P- 7/4rr///y/ Mei7 3 ru 9 f 8' Liabilities and Stockholders' Equity 15 Accounts payable 16 Mortgages, notes, bonds payable in less than 1 year 17 Other current liabilities (attach schedule) . 18 Loans from stockholders 19 Mortgages, rotes, bonds payable in 1 year or more 20 Other liabilities (attach schedule) . . . 21 Capital stock: (a) Preferred stock . . . . (b) Common stock . . . . 22 capital surplus 23 Retained eamingspmped (attach schedule) 24 Retained earrings—Unappropriated . . 25 cost f treasury %/// / / // : / r / %/ / / /5" ..o / / % ///,/ / / ' G6: 0 " ._, /0 - O 61' - o- 8 liagrESTIM 2 " 7 / 7f ///// / // Lr r / // / 6 0.2. /6o.7.... /402.. 0,2. :, =� 3 z g illrg7M1LnE (, 5,183i8 ) (7 26 To al abilities and stock olders' equity rsarc ii#Xill 3 1 -1,47 (5ctie0 ule.M1; Reconciliation of Income Per Books With Income Per Return Do not complete this schedule if the total assets on line 14, column (D), of Schedule L are Tess than $25,000. 1 Net income per books 2 Federal income tax 3 Excess of capital losses over capital gains . 4 Income subject to tax not recorded on books this year (itemize) -7:1( 5 Expenses recorded on books this year not deducted in this retum (itemize) (a) Depreciation . . $ (b) Contributions carryover $ (eiz,/87 > 314 409,333 36 /!a'7 x o / 7 Income recorded on books this year not included in this return (itemize) (a) Tax-exempt interest $ ,SCNcDtri- 8 Deductions in this tax return not charged against book income this year (itemize) (a) Depreciation . . $ (b) Contributions carryover $ 9 Total of lines7and8 . . . 10 Income (line 28, page 1)—line 6 less line 9 . 6 Total of lines 1 through 5 7 / 97/, 91/ 3srhaedu eM 2Analysis of Unappropriated Retained Earnings Per Books (line 24, Schedule L) '/07/ 870 38,3f4 o8I /7, 5'0 , //o .59.97` 0G/ 11197 850 Do not complete this schedule if the total assets on line 14. column (D), of Schedule L are Tess than $25,000. 66;36,0,505 5 Distributions: (a) Cash / B'7) (b) Stock . . (c) Property . 6 Other decreases (itemize) 1 Balance at beginning of year 2 Net income per books 3 Other increases (itemize) Total of lines 1,2.and 3 loos 548,30? 7 Total of lines5and6 . . . . 8 Balance at end of year (line 4 less line 7) (�� 3'yS, 318 SCHEDULE D (Form 1120) Department of the Treasury Internal Revenue Service Capital Gains and Losses To be filed with Forms 1120, 1120-A, 1120 -DISC, 1120F, 1120-H, 1120L, 1120M,1120•POL, 990-C, and certain Forms 990-T OMB No. 1545 0123 la 84 Name Employer Identification number Lgyrs/g4' AziP. 49HE411iv/(477r/VS /3- ae.2SD.2- Short-term Capital Gains and Losses -Assets Held One Year or Less (6 months or Tess if acquired after 6.22-84) a. Kind of propertyand description ' (Example, 100shares of "Z'' Co) 1. Date acquired (mo.. day. yr.) a Date solo/, (mo., day. yr.) Gross Saks price a Coat or Vher basis, plus expense of sale 1. Gain or (loss) (d less e) 1 " 'ay r 0 749 • 7 Long-term Capital gain from installment 11 Net tong -term capital gain or (loss) sales from Form 6252, line 22 or 30. 7 8 PA, el 50714 9 2 Short-term capital gain from installment sales from Form 6252, line 22 or 30-•2 3 Unused capital Toss carryover (attach computation) 4 Net short-term capital gain or (loss) - .• . - 3 4 Part 11 Long-term Capital Gains and Losses—Assets Held More Than One Year (more than 6 months If acquired after 6-22.84) 5 Enter ein from Form 4797, line 6(aX1) 15 6 Fron :sem - ae...kpA Ah c36r1 SceNerkcat es 'ay r 0 749 • 7 Long-term Capital gain from installment 11 Net tong -term capital gain or (loss) sales from Form 6252, line 22 or 30. 7 8 PA, el 50714 9 �I?arf111 Summary of Schedule D Gains and Losses 9 Enter excess of net short-term capital gain (line 4) over net long-term capital loss (line 8) 10 Net capital gain. Enter excess of net long-term capital gain (tine 8) over net short-term capital loss (line 4) 9 10 A.Z.9 so149 11 Total of lines 9 and 10. Enter here and on Form 1120, tine 8, page 1; or the proper line on other retums 11 . S 0 —1 `� cl Note: If there is no entry on line 1I, see instructions -on capital losses for explanation of capital loss carrybacks. %%%///'�//%%////,�//0 Alternative Tax Computation (Forms 1120-H and 1120 -DISC filers omit Part IV) r pr_.t_iv (a) Form 1120, line 30, page 1 12 Taxable income. Enter the amount from I (b) Others—Enter amount from the proper ( line of other returns 13 Net capital gain from line 10 14 Subtract line 13 from line 12 15 Partial tax. Compute the (a) Form 1120—In accordance with the instructions for Forms tax on line 14 as follows 1120 and 1120-A, Tax Computation (b) instructions for apps cablelreturntax computation 16 28% of line 13 17 Alternative tax—total of lines 15 and 16. If less than amount of tax figured by regular method, enter here and on Form 1120, Schedule .1, line 3; or the proper line on other returns. Also check box for Schedule D For Paperwork Reduction Act Notice, see page 1 of the Instructions for Forms 1120 and 1120-A. 12 13 14 15. 16 17 Schedu e D (Form 1120) 1984 Form 3468 Department of the Treasury Interrul Revenue Service Computationof Investment Credit ► Attach to your tax return. P. Schedule 8 (Buslneu Energy Investment Credit) on back OMB No. 1545.0155 x©84 24 Name(s) as shown on return a,ere/�vr✓ -r✓4i/eA,_,Fot'.P t ,-M4[1Ar/GftTiomc &q P. Part 1 Elections (Check the box(es) below that apply to you (See Instruction D).) identifying numbs, i3 — of Az5oa. A 1 elect to increase my qualified investment to 100% for certain commuter highway vehicles under section 46(cX6) 0 ' 8 1 elect to increase my qualified investment by all qualified progress expenditures made this and all later tax years 0 Enter total qualified progress expenditures included in column (4). Part 11 ► . C 1 claim lull credit on certain ships under section 46(0(3) (See Instructlon"B for details.) Quafified Investment (See instructions for new rules on automobiles and certain property with any personal use) 1 Recovery Property Line (1) Class ofUnadrusted Property (2) • Basis •Applicable - (3) Pduntage ' (4) Qualifst ( lumiedn 2 xInvecolumn tmen3) • Regular Percentage , New Property (a) 3 -year a,502,C•1. 60 Ii CO 1, r 11 (b) . Other 1 `f 1 -aF e" 4 f y 100 141 , 3.?; 4 I y Used Property , (c) 3 -year 60 (d) Other 100 Section 48(q) Election to Reduce Credit (instead of adjusting basis) ' New Property (e) 3 -year - 40 (f) Other 80 • Used Property (1) 3 -year - 40 • (h) Other BO 2 3 4 • 6 Nonrecovery property—Enter total qualified investment -(See instructions for line 2) 2 New c rnmuter highway vehicle—Enter total qualified investment (See Instruction D(1)) Used commuter highway vehicle—Enter total qualified investment (See Instruction D(1)) .- . ... . Total qualified Investment In 1O% property—Add lines 1(a) through 1(h), 2, 3..and 4 (See instructions for special limits) .. Qualified rehabilitation expenditures—Enter total qualified investment for: a 30 -year-old buildings 6 40 -year-old buildings - e Certified historic structures (You must attach NPS certification—see instructions) 3 . 4 • 5 i q{ 11 g QC, 27 6a 6b 6c Tentative Regular Investment -Credit 7 10% of line i 15% of line 6a 9 20% of line 6b 10 25% of line 6c .- 11 Credit from cooperatives—Enter regular inirestment credit from cooperatives 12 .Regular investment credit—Add lines 7 through 11 13 • Business energy investment credit—From line 11 of Schedule B (see back of this form) 14 Current year investment credit—Add lines 12 and 13 7 B 14/-3PP.(69� 9 10 11 12 13 14 ►y11.PP,69?. 114'2PP,693 Mote: Ifyou have a 1984 fobs credit (Form 5884), credit for alcohol used as fuel (Form 6478). or employee stock ownership plan (ESOP) credit (Form 9007). in addition to your 1984 investment credit, you must stop here and go to new Form 3800. General Business Credit, to claim your 1984 investment credit. H you have only the investment credit (which may include business energy investment credit) or an investment credit carryforward from 1983, you may continue with lines 15 through 22 to claim your credit. • 15 Carryforward of unused regular or business energy investment credit from 1983 16 Total—Addlines 14 and 15 kaia Tax Liability Limitations 15 16 14,1P?,ER= 17 • Individuals—From Form 1040, enter amount from line 46 - . . . . ▪ Estates and trusts—From Form 1041, enter tax from line 26a. plus arty section 644 tax on trusts . C Corporations—From Form 1120, Schedule J. enter tax from line 3 (or Form 11204, Part 1, line 1). d Other filers —Enter tax before credits from return 15 a Individuals—From Form 1040. enter credits from line 47, plus any orphan drug. nonconventional source fuel. and research credits fir Estates and trusts—From Form 1041. enter any credits from line 27d . . •. .. . c Corporations—From Form 1120. Schedule J. anter credits from lines 4(a) through 4(e) (Form • • 1120•A filers. enter zero) as Other filers—See instructions for line 1Bd 19 Income tax liability avad)usted (subtract line 18 from line 17) - -I 20 • Enter smaller of line 19 or $25,000. (See instructions for line 20) . - i If line 19 is more than $25.000—Enter 85% of the excess 21 Investment credit limitation -Add lines 20a and 20b 22 Total allowed credit—Eater the scraper of line 16 ce line 21. This is your General Business Credit for 1981. Enter here and on Form 1040. flee 48: Form 1120. Sdiedule 1, ine 4(1): Form 1120-. Part I, line 2: or the props line of tithe:moms For Papenrork Reduction Act Notice. see separate instructions. 17 18 19 20a 20b 21 22 Form 3468 (1984) Fern3468(1984/ re -40 /_"," /D/✓ /leilizeolf G/,r'z,,!S C�1.QPPage 2 chedule B.-8uslness Energy Investment Credlt nter on lines 1(a) through 1(e) your qualified investment in business energy property that is the kind listed in the instructions for line 1. column Type of property line - (1) ' Cess of Property or Life Years (2) Code (3) Unadjusteddiasis/ Basis (4) Applicable Percentage (5) Qualified Investment (column 31 column 4) Recovery (1) 3-year60 Nonrecovery (c) 3 or more but less than 5 "(b) Other _ (d) 100 / / Nonrecovery , (c) 3 or more but less than 5 7 or more 33 Ys (d) 5 or more but less than 7 - 66 1/2 (e) 7 or more 100 2 Total 1096 energy investment property—Add lines 1(a) through 1(e). column (5) 2 3 Enter on tines 3(a) through 3(e) the basis in qualified hydroelectric generating property. Enter nameplate capacity of the property (see instructions for tine 3) No Recovery (a) 3 -year 60 , (b) Other / 100 Nonrecovery (c) 3 or more but less than 5 331h (d) 5 or more but less than 7 / / 66/ e 7 or more 100 4 Total 11% energy investment property—Add lines 3(a) through 3(e), column (5) 4 - S Enter on lines 5(a) through 5(e) the basis in energy property that is solar equipment, wind equipment, ocean thermal equipment, or geothermal equipment. (See instructions for line 5; column (2).) Recovery' (a) 3 -.year 60 (b) Other 100 (c) 3 or•more but less than 5 331/, (dj 5 or more but less than 7 661/2 (e) 7 or more 100 6 Total 1596 energy investment property—Add lines 5(a) through 5(e), column (5) - - 7 Enter 10% of line 2 Enter 11% of line 4 9 Enter 15% of line 6 10 Cooperative credit—Enter business energy investment credit from cooperatives 11 Tentative business energy investment credit—Add lines 7 through 10. Enter here and on line 13 of page l 6 7 6 9 10 11 Instructions for Schedule B (Form 3468) - Energy property must meet the same requirements as regular investment credit property, except that the provisions of sections 48(aXl) and 48(aX3) do not apply. See Instructions for Form 3468 for definitions and rules regarding regular investment credit property. Energy property must be acquired new. See sections 46(bX2) and 48(IX1) through (17) for details. See section 48(1X17) for special rules on public utility property, and section 48(1x11) (as amended by the Crude Oil Windfall Profit Tax Act of 1980) for special rules on property financed by Industrial Development Bonds. . Specific Instructions One Credit Only.—If property qualifies as more than one kind of energy property, you may take only one credit for the property. Unas 1.3. and 5—Type of Property.— For definition of recovery and nonrecovery property, see the separate instructions for Form 3468: Une 1—Column (2).—Use the code letters from the following list to indicate the kind of property for which you are claiming a credit. if you enter more than one kind of property on a line, enter the code letter for each kind of property in column (2) and the code letter and dollar amount of each kind of property in the right hand margin. The code letters are: a. Biomass property b. Qualified intercity buses (see section 48(1X16XC) for the limitation on qualified investment for intercity buses based on the increase in operating seating capacity) Une 3.—Figure your qualified investment in hydroelectric generating property. If the installed capacity is more than 25 megawatts, the 11% energy credit is allowed for only part of the qualified investment. See section 48(I)(13XC). In the space provided in line 3, enter the megawatts capacity of the generator as shown on the nameplate of the generator. Une 5—Column (2).—Use the code letters from the following list to indicate the kind of property for which you are claiming a credit. Be sure to put the code or codes on the line for the correct recovery period or life years as explained in the instructions for line 1, column (2). C. Solar equipment (but not passive solar equipment) d. Wind equipment e. Ocean thermal equipment f. Geothermal equipment - See sections 48(1X4) and 48(I)(3)(A)(viii) and (ix) for definitions and special rules that apply to these kinds of property. [t1175]z"U4` F.rm3800 Dapartment of the Treasury intern& Revenue Service [Form 3300] General Business Credit ► Attach to your tax return. Name(s) as shown on retum 'MIER/GAA' 7-ELEV/S/o:r/ ASID Tentative Credit Part 1 e.oMmL A)/d47 0e14 Co RA 1.-35 Identifying number 3161 OMB No. 1545-0e95 1@84 1 Investment credit (Form 3468, line 14) - 2 Jobs credit (Forrn 5884, line 7) - • • • 3 Credit for alcohol used as fuel (Form 6478, kine 11) 4 Employee stock ownership plan (ESOP) credit (Form 8007, line 3) 5 Current year general business credit—Add lines 1 through 4 6 Carryforward of investment, WIN, jobs, alcohol fuel, and ESOP credits from 1983 7 Carryback of general business credit to 1984 1 Tentative _eneral business credlj-Add lines 5, 6, and 7 - Tax Liability Limitations•' 1 2 I1)1PP,F93 16 619 3 4 5 6 P/3os',3/z 7 $ i�I3oS,3/z 9 a Individuals—From Form 1040, enter amount from line 46 - b Corporations —From Form 1120, Schedule J, enter tax from line 3 (or Form 1120-A, Part 1, line 1) _. . c Other filers—Enter.tax before credits from return - 10 a indrviduais—From Foran 1040, enter credit from line 47, plus any orphan drug, nonconrentional source fuel, and research credits included on line 49 b Corporations—From Form 1120, Schedule J, enter credits from lanes 4(a) through 4(e) (Form 11204 filers, enter zero) 6 Other filen:—See instructions for line 1Oc 11 Income tax liability as adjusted—Subtract lire 10 from line 9 12 a Enter smeller of line 11 or $25,000 (See instructions for line 12) - b H line 11 is more than $25,000—Enter 85% of the excess 13 Credit limitation—Add lines 12a and 12b • 14 General business credit—Enter smaller of line 8 or line 13 *here and on Form 1040, line 48; Form 1120, Schedule J, line 4(f); Form 1120-A,•Part I, line 2; or the proper line on other returns . . . } • 9 10 11 12a 12b 13 14 General Instructions . (Section references are to the Internal Revenue Code.) Paperwork Reduction Act Notice.— We ask for this information to carry out the In- ternal Revenue laws of the United States. We need it to ensure that taxpayers are complying with these laws and to allow us to figure and collect the right• amount of tax. You are required to give us this information. Purpose of Form.— The Tax Reform Act of 1984 revised and rearranged the order of - many of the income tax credits. Beginning in 1984, there is a new'general business credit" consisting of the investment credit (Form 3468), jobs credit (Form 5884), alcohol fuel credit (Form 6478), and employee stock ownership plan (ESOP) credit (Form 8007). 1f you have more than one of these credits, you must summarize them here on Form 3800. H you have only one of these credits for 1984, you do not - have to file Form 3800. Instead, use that - particular form to claim the credit. For ex- ample, if you have only a 1984 investment credit ora carryforward of unused invest- ment credit from 1983, you may use Form 3468 to claim your credit for 1984. You do not have to file Form 3800 in this case. Please note that you do not have to take the jobs, alcohol fuel, or ESOP credits if you do not wish to. - For information on investment credit, see Form 3468, Computation of investment Credit, or Publication 572, Investment Credit. For information on jobs credit, see Form 5884, Jobs Credit, or Publication 906, Jobs and Research Credits. For information an the-aicohol fuel credit, see Form 6478, Credit for Alcohol Used as Fuel. For information on the ESOP credit, see Form 8007, Credit for Employee Stock Ownership Plan. Carryback and Carryforward of Unused Credit— H you cannot use all of your 1984 general business credit because the current year general business credit on line 5 exceeds the tax liability limitation on line 13, you may. carry any excess back to each of the three preceding tax years, beginning. with the earliest. H you have an unused credit after carryback, it may be carried forward to each of the 15 years after the year of the credit. Specific Instructions - Li ns 6.— All caryforwards of unused investment credit, jobs credit (and WIN credit carryover), alcohol fuel credit, and ESOP credit from 1983 are added together and become a business credit carryforward to 1984. However, H you have only one of these credits you may use just that particular form to claim the credit and you do not have to file Form 3800 this year. ETU nese pies la 3171.] Line 10c.—Otherfilers.—Before you can Wim the general business credit against your income tax liability, you must reduce this tax liability by the credits listed below: • Personal credits Foreign tax credit i Possessions corporation tax credit • Orphan drug credit - • Nonconventional source fuel credit • Research credit Une 12.—H your adjusted tax liability . (line 11) is 625,000 or less, your general business credit is limited to that liability. lithe tax liability is more than 525,000, your credit is limited to 525,000 plus 85% of the excess. If you and your spouse file separate returns, each must use 612,500 instead of 525,000. However, if only one has any business credit, that one may use the entire 525,000. - Controlled corporate groups must divide the 525,000 among all component members. See section 38(cX3XB). Estates and trusts must first deter- mine what percentage of the total in- come is allocable to the estate or trust itself, then apply that same percentage to the 525,000 amount on line 12a. • . See section 38(c)(3XC) for limitations on the credit for mutual savings institu- tions, regulated investment companies, and real estate investment trusts. II 1175] [Form 4255) Doselseem �,, 4255 Recapture of Investment Credit Pm. Nov. 1912) (Including Entry Investment credit) ce ,,;"Tb. Attach to your Income tax return IslsrmsW w shown on return I,i,e/Awv TSE✓' d'1/f eaNiefieAW_AT/AdS &dC A /3 .250 Property I gond of property—tate whether recovery or nonrecovery (see Form 3468 Instructions for definftions). If anew property, show type. Also Indicate If rehabilitation expenditure property. ' swsntrrrlre number GMB No. 1545-0115 Expires 11-1045 65 A. 1 - C E 8 n Steps: Computation (see Specific Instructions) 1 Original sate 2 Dote property �operties of credit . . • ens paced In• basis . . - . • • useful If* or A s C O E • - service Cost or other 4 Original estimated: dam of property . . . .. . s Appy percentage • : • • A Ormond qualified Investment gine 3 times line 5) . ..- • • . 7 Original credit gine 1 tiers line '6) 0 . 8 Dots property ceased to be quell- sed Investment credit property 0 0 . - - - - 4 0 • . fl Number of full Sate on Ens .. years between the 2 end the data On line - s Q..fll Ib 10 Recapture percentage . . . • 11 Tentative recapture tax�lne 7. times line 10 Ll Add line 11. columns A through 13 a Enter tax from disposed qualified. Easter tax from any pert of property 14 Total --Add linos 12,13a and 13b 11 Portion of original credit Pira 7) .. 11 Total Increase In tax -Subtract line not use this amount to reduce current vestment Credit. unused crsdtt I E . te:•a. I. On 3:1::r/. Ord progress expenditure property (attach osestng to be at risk (attach separate not used to offset tax in any year (Do 15 from line 14. Enter Mn and on investment credit figured L)(e S . . • separate: computation) . . . • computation) not anter mom than fide 14 -;•••Instructions) • • • the proper M. of your tax return. Do on Form 3468, Computation of In- r as e ea • ' ck or ea • r . S . a ,7E S3 2,'7 C. 7 S3 2, 76 3 years on fine 15 cannot be used in a 'Womack !lore het Sabo% ale itrstruetians as besot Paan eXa7 Quer. Form 4562 Department of the Treasury Internal Revenue Service (x) Depreciation and Amortization See separate instructions. (► Attach this form to your return. OMB No 1545-0172 1684 67 Name(s)as shown on return ANEE/e.4.41 T�EVLS'QN Au'? 0,01Mv/ J, molts 04,e P- IMntIying number /3-2q 6-6.2 Business or activity to which this form relates Part 1 For transportation equipment (e.g. autos), amusement/recreation property, and computer/peripheral equipment placed in service Depreciation after June 18. 1984, and used 50% or less in a trade or business, the section 179 deduction is not allowed and depreciation must be taken only on tine 2(h). —Election to expense recovery property (Section 179) R.—Depreciatlon of recovery propert • A. Class of property A. Class of property - B. Cost C. Expense deduction E Method figuring depreciation F. Deduction 2 Accelerated Cost Recovery System (ACRS) g) (see instructions): For assets placed in service ONLY Burin taxable year be inn) in 1984 ��������� - ,3 -44 �� �///� Aces ��0��/ �///'/ /A ,frim'/ I 0 (a) 3 -year property / /A .2, AY 57/14 (b) 5 -year property f����/////// A , 3_4 -4/S 7P7 1 Total (not more than 55,000). (Partnerships or S corporations—see the Schedule K and Schedule K•1 Int. nrrtir,nc of Form 1065 or 1120S) /F 4/6. GO / R.—Depreciatlon of recovery propert • A. Class of property e: Date placed in service ather basis D. Recovery' ry' E Method figuring depreciation F. Deduction 2 Accelerated Cost Recovery System (ACRS) g) (see instructions): For assets placed in service ONLY Burin taxable year be inn) in 1984 ��������� - ,3 -44 �� �///� Aces ��0��/ �///'/ /A ,frim'/ I 0 (a) 3 -year property / /A .2, AY 57/14 (b) 5 -year property f����/////// A , 3_4 -4/S 7P7 3- YfAje. ACI€ S /F 4/6. GO / . .(c) 10•year property '/���������� (d) 15 -year public utility pr / ��i (a) 15 -year real property— - ' law -income housing (f) 15 -year real property other than low-income housing .2, 267_t.4/6 / JrSCAR- AG4S i 47 5#� (g) 18-yearreal property (h) Other recovery property S/L - S/L • 3 ACRS deduction for assetsplaced in service prior to 1984 (see instructions) Section C.—Depreciation of nonrecovery pr 4 Property subject to section 168(e)(2) election (see instructions) • • . . - 5 Class Life Asset Depreciation Range (CLADR) System Depreciation (see instructions) 6 Other depreciation (see instructions) Sc 1141x4.E•� operty .Scaccw.E XI, • .Scoebvt..E 71:1Z 41/1Z, %F{ O/2. 7, 3 o 7 13 9793 =a/ Section D.—Summary 7 Total (Add deductions on lines 1 through 6). Enter here and on the Depreciation line of your return (Partner- ships and S corporations—DO NOT include any amounts entered on line 1) • ;Part 11 Amortization 7P 77/ J.. rt A. Description of grope y t, Date acquired ' . " C. Cost or ether Danis D. Code section E Amortira• tion Defer or percentage F. Amortriabon for this year �rAnr i'‘.. C VAR 7a�yC ;f?�2 Ifc7. V14 g.E �w.g99 _e r` � co -4 Nell) Crc�`c VAR I ellc111..I 29ID r• t !'-d• Total. Enter here and on Other Deductions or Other Expenses Iine•of our return Sae Paperwork Reduction Act Notice en page 1 of the separate instructions. 1; Form 4562 (1994) 4797 Suppiemental Schedule of Gains and Losses (Includes Gains and Losses From Sales or Exchanges of Assets Department orthe 'r, ury Used in a Trade or Business and involuntary Conversions) B' To be filed with Forms 1040, 1041, 1065, 11205, 1120, etc—See Separate Instructions 1lrrrra(s) as stawn on return n Identifying number . EZ/C r/ T l -eV/ -y04/ A,✓D eIV-66lr,!/y/1,f T/OfV. S ee At7P / 3 - -2Q Aa 50 .2_,Sales or Exchanges of Property Used In a Trade or Business, and Involuntary Conversions From Other Than Casualty and Theft—Property Held More Than 1 Year. (6 Months If Acquired After 6/22/84) (Except for Certain Livestock) - Note: the Form 4684 to report involuntary conversions from casualty and theft. Caution: If you sold property on which you claimed the investment credit, you may be liable for recapture of that credit. See Form 4255 for additional information. Note: if you report a loss below and have amounts invested in the activity for which you are not at risk, you will have to file Form 6198. (See F.. Internal Revenue Service I10 Part I OMB No. 1545-0184 ©2784 Instructions ` a pescriyfgn of aop*rty • unuer Jre,.w' b. Date acquired (inc., day. yr.) num.,. i a Date sold Om. clay. yr.) L Gross sales puce e. Depreciation allowed (or albwable) since acquisition - t. Cost or other basis. plus improvements and expense of sale (f mLOSS s t e sum of d and e) h. GAIN (d plus e minus n , ( fQ�1 - 1)c �u. 1 Oh 9�1i SC's -'dole - 1, 4 y 31 *NC f•� 1 S�4 '+fin � �� 2 Gain, tf any, from 3 Suction 1231 pin 4 Gain, If any, on fine Form 4684, Section B, fine21 from instillment sales from Form 6252, line 22 or 30 28 from other than casualty and theft r/ �4_1, (I 4 3 6 .) 1'12 MO 3 , l 1'•7 Z , 0 3 ti Add fines 1 titrotrgn m wrunni a.,w .. Combine columns g and h of line 5. Enter pin or (loss) here, and on the appropriate line as follows: (a) For all except partnership retums: - (1) if fine 6 is a gain, anter the pines a long-term capital gain on Schedule D. See specific instructions for Part I. (2) K line 6 is zero or a loss, enter that amount on line 7. (S corporations, enteron Schedule K (Form 1120S), line 6.) (b) For partnership returns: Enter each partner's: share of line 6 above, on Schedule K•1 (Form 1065), line 7. Part11 Ordinary Gains and Losses (2111043) a. Description of . tKopeKy L Date acquired. (mo.. day, yr.) • c. pate sold (inc., day. yr.) d. Grass sales Pia e. Depreciation allowed (or allowable) since acquisition 1. Cost or other bests. plus Improvements and expense of sale •. LOSS (f minus the sum otdand e) a '11 0'43 7 Loss, If any, from fine 6(aX2) It Gain, If any; on fine 27 ! Net pin or (loss) from Form 4684, Section B, lines 13 and 20(a) 10 Ordinary pin from installment sales from Form 6252, line 21 or 29 (Applies only to sales before 6/7/84) . . v./ 11 Recapture of section 179 deduction (see instructions) • . 12 Other ordinary pins and losses (include property held 1 year or less, (6 months or Tess If acquired after 6/22/84)): LOSS o/1 to AA" orlon+. tortes. 1. on 3ir/1 scl►fdIles SOH- 4r3 silorf +o,r, 0a,_ De4g.; 1 o��rJr/ flit c�►er(uIe 5 ,y/ h. GAIN (d plus e minus f) ?PC.'13) 13 Add lines 7 through 12 in column g and column h • 14 Combine columns g and h of line 13. Enter gain or (loss) here, and on the appropriate line as follows: (a) For all except individual returns: Enter the gain or (loss) from line 14, on the return being filed. See instructions for Part 11 for specific line references. • (b) For individual returns: (1) tf the loss on line 7 includes a loss from Form 4684, Section B, Part II, column B(ii), enter that part of the loss here and on line 19 of Schedule A (Form 1040). Identify as from "Form 4797, line 14(bxlY (2) Redetermine the pin or (Foss) on line 14. excluding the. Ices (if any) on line 14(bX1). Enter here and on Form 1040, line 15 Far Paperwork Reduction Act Notice, see page 1 of separate Instructions. - - ('1'1 5,49(0) l,s(Oo,o99 944 (003 i'/,/%�: // A Fomr 4797 (1984) -Corn 4797 (1984) AA/eg /GAS re' EY /:5/04/ ANP 1 ,1 T, o,ta e404 P. / ✓'„,,ev725&2 Page 2 Gain From Disposition of Property Under Sections 1245, 1250, 1252, 1254, 1255 SMi section 1252 on line 23 and in the instructions it pu did not dispose of farmland, or if,a partnership files this form. . P property: PertY 15 Description of sections 1245, 1250, 1252, 1254, and 1255ro Date acquired (mo., day, yr.) Date a (mo., day,, y yr.) (A) .. (5) - . (C) - (5) - Relate !Ines 15(A) through 15(D) to these columns ► ► I. ► Property •' (A) Property (B) - Property (C) Property (D) 16 Gross sales price• expense of sale 17 Cost or other basis plus depletion) allowed (or allowable) 1$ Depreciation (or line 18 from line 17 19 Adjusted basis, subtract 20 Total subtract line 19 from line -16 gain, 21 tf ;action 1245 property: . (a) Depreciation allowed (or allowable) (see instructions) (k) Enter smaller of Zine 20 or 21(a) if 1250 (If straight Iine.depreciation used, enter zero 22 section property: on Fine 22(g) unless you are a corporation subject to section 291.) (a) Additional depreciation after 12/31/75 (b) Applicable percentage times .the smaller of line 20 or line 22(a) (see Instructions) (e) Subtract line 22(a) from line 20. If Zine 20 is not more than line 22(a), skip lines -22(d) and 22(e) (4) Additional depreciation after 12/31/69 and before 1/1/76 ". . (e) Applicable percentage times the smaller of line 22(c) or 22(d) (see instructions) CO Section 291 amount (For Corporations only.). . ... . . Add Fines 22(b), 22(e), and 22(f) • 23 II soc6on 1252 property: (a) Soil, water, and land clearing expenses ' (b) Line 23(a) times applicable percentage (see instructions) . . (e) Enter smaller of line 20 or 23(b) 24 N section 1254 property: - (a) Intangible drilling and development casts deducted after 12/31/75 (see instructions) • A) Enter smaller of line 20 or 24(a) . . . . _, . . . . . - 2S It section 1255 propert)r: (a) Applicable percentage of payments excluded from income under section 126 (see instructions) • - (b) Enter the smaller of line 20 or 25(a) Summary of Part 11I Gains (Complete Property columns (A) through (D) through line 25(b? before go ng to line 26) 26 Total gains for all properties (add columns (A) through (D), line 20) .. :I) .e.�' \ •D �l►� 5 d V It. . S 5 L I V 27 Add columns (A) through (D), lines 21(b), 22(g), 23(c). 24(b), and 25(b). Enter here and on Part II, line 8 t. 1'19 „ (DO 28 Subtract line 27 from line 26. Enter the portion from casuatty and theft on Form 4684, Section B, line 15; enter the portion from other than casua and theft on Form 4797 Part 1, line 4 1 ,l'1Z i9 03 Complete this Part Only if You Elect Out of the Installment Method And Report a Note or Other Obligation at Less Than Full Face Value - ❑ Check here if you elect out of the installment method. Enter the face amount of the note or other obligation' ► Enter the percentage of valuation of the note or other obligation le [t 1470] I"` :[Form 5884] Farm 5884 Department of the Treasury Internal Revenue Service Names) as shown on return ArnERI64nl 71-1 .oN ANb COir,nu, A/_te4T I/7 SRP • Jobs Credit Jobs Credit (and WIN credit carryover) ► Attach to your tax return. Part 1 3447 OMB No. 1545-0219 ffig84 77 Identifying number y3 -,t 9Z,t Som 1 Enter the number of employees and total qualified wages paid or incurred during the tax year (up to $6,000 for each employee for each of the first two years) for services of employees who are certified as members of a targeted group. See instructions for special rules on qualified summer youth employees. Raabe or explores TvtaI gsslifid wars (a) 0 (b) at_P1 First year 1 Do not include sum- 1 Secondyear i mer youthemployees I. Qualified summer youth employees .' 2 Enter 50% of line 1(b) . . . - 2 1?� y o i 3 Enter 25% of line 1(d) . • • ? I P 4 Enter 85% of line 1(f) 5 Current year. jobs credit—Add lines 2, 3, and 4. Enter here and include, on Schedule C (Form 1040), line 28b; Form 1120, -line 13(b), page 1; or the corresponding line on other retums. (Members of a group of trades or businesses under common control, see Specific Instructions.) . W roe 11 a— Tiro eller tow charnel vee jobs cnd(s) how - 6 Flow-through jobs credits a Shareholder . Schedule K-1 (Form 1120S), line 11 . from other entities b Partner . • . Schedule K•1 (Form 1055), line 13 . • • , t Beneficiary . . . Schedule K-1(Fonn 1041), line 10 . l • Al Patron . . (see instructions for line 6d) 7 Total jobs credit for current year—Add lines 5 and 6 (S corporations, partnerships, estates, trusts, and ) 6� b I q cooperatives, see instructions for line? ) Nile: Ifyou have a 1984 investment credit (Form 3468), credit for alcohol used as fuel (Form 6478), or employee stock ownership plan -- (ESOP) credit (Form 8007) in addition to your 1984 jobs credit, you must stop here and go to new Form 3800, General Business Credit, to claim your 1984 job credit. Ifyou have only the jobs credit, .or a carryforward of WIN or. jobs credit, you may continue with lines 8 through 15 to claim your credit. (c) (e) 8 (d) (1) 10, r72. 3 4 5 6 I Carryforward of unused WIN credit or jobs credit from 1983 or earlier . ! Total—Add lines 7 and8. I?art 11 Tax Liability Limitation a 9 10 a Individuals—From Form 1040, enter amount from line 46 b Corporations—From Form 1120, ScheduleJ, enter tax from line 3 (or Form 1120-A, Part I, line 1) e Other filers—Enter tax before credits from return • • 11 a Individuals—From Form 1040, enter credits from line 47. plus any orphan drug, nonconvent'onal source fuel, and research credits . • Corporations—From Form 1120, Schedule J, enter credits from lines 4(a) through 4(e) (Form 1120-A filers. enter zero) . - . . . . . . . . . e Other filers—See instructions for line 11c . . . . . . 12 Income tax liability as adjusted (subtract line 11 from line 10) 13 a Enter smaller of line 12 or $25,000 (See instructions for line 13) b U line 12 is more than $25,000 --Enter 85% of the excess 14 Jobs credit limitation—Add lines 13a and 13b 15 Total allowed jobs and WIN credit—Enter the smaller of line 9 or fine 14. This is your General Business Credit for 1984. Enter here and on Form 1040, line 48; Form 1120, Schedule J, line 4(1); Form 1120-A, Part I, line 2; or the proper line of other returns Instructions (Section references are to the internal Revenue Code.) . . Paperwork Reduction Act Notice.—We ask for this information to carryout the Internal Revenue Taws of the United States. We need it to ensure that taxpayers are complying with these bus and to allow us to figure and collect the right amount of tax. You are required to give us this information. , 10 11 12 13a 13b 14 15 Highlights of the New Tax Law The Tax Reform Act of 1984 revised and rearranged the order of many of the income tax' - credits. Beginning in 1984 there is a new "general business credit consisting of the investment credit, jobs credit. credit for alcohol used as fuel. and employee stock ownership plan (ESOP) credit. 11 you have more than one of these credits for 1984, you must summarize them on new Form 3800, General Business Credit. If you have only 1984 jobs credit or a carryforward of WIN or jobs credit, you do not have to file Form 3800 this year. Pwpoaa of Form — Use Form 5884 if you had jobs credit employees and take an income tax credit for wages you paid or accrued for them during the tax year. Mutual savings institutions, regulated investment companies, and real estate investment trusts can take a limited credit. See section 52(e) and the related regulations. You can take or revoke the jobs credit any time within 3 years from the due date of your retum. Take the credit eitheron your original return or on an amended return. [¶ 1470] Ione 5884 (1984) t1 1471K] 71I /141 Form 6765 -D.,wtm. t of the Try ; ... Norval Revenue Salvia [Form 6765] Credit for Increasing Research Activities (or for claiming the orphan drug credit) P Attach to your tax return 3463-51 OMB No 1545-0619 X684 61 Noings) os shown on Nam AmEA/e_A TELE V/stow mML1Tie AtS.211 Orphan Drug Credit Part.1 L3 - az9.2.Z5o� • 1 Qualified clinical -testing expenses (do not include any amounts claimed as current year research expenses in 14(a), below) 2 Enter 5096 of line 1 (see instructions) 3 Flow-through orphan drug credit(s) from a partnership, S corporation, estate or trust . 4 Total—Add lines 2 and 3 -Part 1I 3 Tax Liability Limitation—For Figuring Orphan Drug and Research Credits 5 a Individuals—From Form 1040, enter amount from line 46 . b Corporations (1120 filen;)—From Form 1120, Schedule J, enter tax from line 3 : c Other filen:.—Enter tax before credits from return. . . . . OOOO . 6 a Individuals—From Form 1040, enter any foreign tax credit from line 47 b Corporations (1120 filers)—From Form 1120, Schedule J, enter any credits from lines 4(a) and 4(b) , c Other filers—Enter any personal credits, foreign tax credit, and possessions tax credit , • , 7 income tax liability as adjusted (subtract line 6 from line 5) . . . . .. . . . . . . . . . . Allowed Orphan Drug credit 5 6 7 1 -Orphan drug credit—Enter here and on the appropriate line of your return the smaller of I'ne 4 or line 7 Research Credit 9 Wages for qualified services (do not include wages used in figuring thejobs credit) 10 Cost of supplies used in conducting qualified research . . . . . . . . 11 Rental or base wets of personal property 'used in conducting qualified research 12'15% of contract expenses for qualified research (but see line 13 below) 13 Corporations -65% of amounts paid to qualified organaations for basic research 14. Total qualified researchaspen;es (add lines 9 through 13 in columns(a) and (b)) 15 Subtract line 14 column (b) from line 14 column (a) . 16 Limitation --Enter 50% of line 14 column (a) • - V Enter the smaller of fent 15 or line 16 11 Tentative credit—Enter 25% of fine 17 . . . 89 Carryback and carryover of unused axgdit(s) 20 Add lines 18 and 19 21 Flow-through research cradit(s) from a partnership, Scorporation, estate or trust (including any related. payback or anyover of unused research credit(s)) . 22 Total allowable research credit—Add lines 20 and 21 • - • • • • - • • • 23 income tax liability as adjusted. for the -research credit (From line 7 above. subtract any orphan drug credit shown on line -6 and ariy nonconventional source fuel -credit shown on your return) - 8 CURRENT TAX YEAR 9 /.,4/51, 7/ 1 Allowed Research credit - 10 11 12 13 14 az.2,s'19 S�/off 9� 95k 1,128,3.2.2_ 15 16 17 18 19 20 21 22 23 (b) RASEPERloo 47D24D 2313,5-1. /7,0 rl 74 G,P9 993991, 9341331. 94,061 934'331; .2336—P4r .23,3 SW ,233.5141 24 Corporations (1120 filers)—Enter here and on the appropriate line of your retum the smaller of tine 22 or line 23' 25 Individuals, estates and treats—Enter here and on the appropriate line of your retum the smaller of line 22 or the amount from the formula in the instructions for line 25 (but do not enter more than Zine 23). • . 25 instructions -Purpose of Form.—Use Form 6765 to re evem"are to arEwrlarl;r+enae figure and claim the credit for increasing Co otherwise noted.) the research activities of a trade or business and to claim the. orphan drug Paperwork Reduction Act Notice..—We credit. Complete Parts II, IV, and V to ask for this information to carry out the - figure the research credit. Complete Internal Revenue laws of the United States. . Parts 1,.I1 and III to figure the orphan We need It to ensure that taxpayers are complying with these taws and to allow us to flgure,and collect the right amount of tax. You are required to give us this information. 24 drug credit. You may claim an income tax credit if you increase the research activities of a trade or business. The credit applies only to research expenditures incurred in carrying on a trade or business you are already engaged in. ft does not apply to those incurred before beginning a trade or business. Generally, the research credit is 2596 of the increase in qualified research expenses paid or incurred in the current tax year over base period research expenses.. . .a• • a•f.vi NAME 4e4ERIG3;c1 7 t /Is1pA/ aorir1WA'/ Ari0?VS EMPLOYER ID. /3-.ay.?2SOL Taxable Year Ended . A2/•3i/f4 < - /- ! rs� /37 7441 NAME A,,7AJ4FJ TE EES oA) v- er2finma41/eAr/o•✓S EMPLOYER ID. /g -,t9`.7.2502_ Taxable Year Ended /.//3//8 1 TAXES OTHER DEDUCTIONS i., s-6 General Pro • ert - 3 iti/i 976 Amortization • - - . /.3 K Pa roll £'/3 7ff1 Auto Ex.ense . - 3 766 Sales & Excise 4 1.24 [S Contract Services a 44 F Cor•oration Franchise Co•yri:ht Fees ,.lo ,� Licenses & Cor.orate Ex.ense Miscellaneous 330 90 Dues & Subscri•tions 69 Em•l,o ee Recruitin: & Relocatin: _" 9 603 Franchise Fee S 7'1( aS Insurance / Labor & Overhead Ca.italized 433 -, Leval & Accountin: / 7 76,17 Subtotal 0 -p'J Microwave Ex•ense • -S1 State Income - '?40 000 Miscellaneous -. -Sz Office & Oseratin: Su..lies , o P 4 Posta:e & Frei ht n Pro:rammin: Costs 0.23 66n - :Tele•hone & Tele:ra•h • o. 6 Total Taxes !S Fro 9:1 Travel & 'Entertainment 3 . - s 66. Contributions Utilities . •-,,/ Communit Chest or : SE:. _ . E E - „ -. United Fund MrscELLAN o -1 '55 ACT?.IElL5NIPS '70 Contributions Carr, -over Subtotal ' Unallowable Excess Total Contributions 36 9Z5 Total Other Deductions 386,0 Schedule II AME A/17E1E/O.An) 71F/ ,,,s/ow/'- Mrr71/NlcAr?ot/S EMPLOYER ID. Taxable Year Ended /.2/.3 /14 Balance Sheet Supporting Schedule Beginning of Years' End of Year 5. Other Current Assets PREPA/b EiPE.i/sE S3154 1 81 r 817 TAX -u_ rt R Air 96.2-4/ /4 7.2-0 ,REPA/D .PcFErsetE1) SriPAT L1s/✓Es_-TmEls/rs 4496 3"94 -9 -TEtir1 / / d 1, /P6 E____ 8. Other Investments . • - • - . - . -a ss0,71723/ 22.A• 22.0 314 -V .. -0 49.2,7 OS41- (L,/47.79G )' -s- ATI? Ek /,wL.sfmE.+/TS AssErs -6- STv - _ 22b 22D 36G ,. 13. Other Assets Aia:• /%l ise-Ed oknus /, 7/ f. 3 74 2 Z5'7997„ _DEPosir 1. 7/P3'71. 1.,=4.21_,Z 17. Other Current Liabilities Aae-RidEA EXRFIKSE .30.435,2/7 22,332 DD%., 5tiisse4 t Aa vm ae E P. ,F .ber $ /7s - 1 /4e3/11 18 45Z. o45- / 8 y.me_rrs PAYABLE% 31165,124 329.5)7/9 ,4/7 e�Mes,�y FEo£it41 AND STA1E 1 TBXES' L� Atritko,) <S41..200 > - Sa3 /..229G - /3,201 p13 /8 483 8'/1 LiAl 6, Lir in lac.E[.LA0✓&ous 7L i/A. 8S/ Jo5.619.753 20. Other Liabilities DEFERRc s/e.On1E TAiES iLliii.2,DI/ 76.92.7,711 - • 23. Retained Earnings - Appropriated SCHLDQLE 22Z- 'NAME f11r1ER/ tN TA-Levis/DA/ s'-CelrIni Alit.ATioAIS_ BYPLOYSA ID. /3-..9.22 50,x: Taxable Year Ended /.7/3 �f P fi/CPLRAMT/D4) OF irE_rn.s iS Sc EDuLE R7-/ m/e.e 7E Scla TE GT ry 2)r I PE.JV J•QCD' AiSPAS'Tio,J A.S.�ETS AFF,PRF.D /A/Go/n£ TAX, AAMT'l e.o•wEZ> OBJ Book -J f.Zo AFF/L.IATr TAX 4 /A% LA/- _g-ICtJSS _Of So'A' GA/J 1"..1 Ro yPtt.-ry 4,.r. • A/ . . A / _• ET/ • NE&J JOGS arEEDIT MINOR try /A/TEREST A L -s f ve Fee STe .t m ,OR'►?f+ 6E PAA/1/E irrOR .LQ:SES L M'6 TEfiM iA/e €A,_ ✓c AAz.:4I.e D 14EBz.uLG� "ABLEPA(' LID.vTQ/AttrLD.tL •&DOD id/LL PAioRAria ✓ I,/iornE RECo.e.DED aw► t3nOX$,, se "TAS! fr Ig' 33 7 ? ? / "ISO 000 3t, /67 zo / ___LL / 9 9'7 _EL 335- -L 35-/ 8.2 o .z•i 2- / / 7P4 PSo 4.7P .1 o 7 S4 E.•a1 L wl Al F.r4A/14,/sC' FEES1. At iza.mt_ Puff_ BobNor TAX REVO2SA�) /Px4044T/r.✓ Acc..¢uaL. Fog /,K NoT TAX (RevEeSA<� FR4,-',! d/SE ACqu#s,T/D' .LO.£SES • 411. AftWR Ta-Ar/OA) edtP/TAL170ED /NTEREST° 0,40,1744•/2ED SALES v- LIsE Tt4 Aap/TAL,tLI PRE-Suase,4113ER AOSTs 1.17MPEA'. A 7EP AdsEdGzS PA*r.orRSH/P Loss -T.4X ✓s. Bow< 60A/7-RiauT/DNS - P rNE,eSM/t FLOu? T/1A'O06N oy/ �o IL3 94 L Al .2- _____L -___ / 027 OSS oft. J_I P5" /7F Oy5 P48 7G9 9'70 l� MEP:./46" rz Atfcgze /c4RI ?G8 ✓ ,/e',/ Anti) eo,efAg Al/C-Ar/o.vs dek4 NUMBER /.3 2.9,7.23-d4a. DEPRECIATION - TAXABLE YEAR ENDED /rf8'SF DESCRIPTION OF PROPERTY COST OR OTHER BASIS BEGINNING ADDITIONS 4RETIREMENTS J END NG f 11522 .i� G_�?// A /9p1 - y 5 /9Y1 - 5 x.e ..:17 I/3.V.z_ c /9n - e. 4197' / e----.71 ,:i7 ? =„.: D /9/2 - 3}'ie.., E '972 - c''a e7 F '9S2 - I3fn.. / / /ao 79g G.3 ,, 137 G J9 F3 • - 3}/e H /9F3 - 5ye 77 067119PP 1 /913 - z-. - _ / 970/03 9 r J /913 - use) .ate, K /973 - 11.:ED 5/4-/ 34/ a5� L M 14 0 - TOTALS ” _/99 P76 SOl DATE ACQUIRED LIFE- USED METHOD ACCUMULATED DEPRECIATION BEGINNING 1ST YR. 20% 5OTHER CURRENT RETIREMENTS ENDING A /98/ 3yR Aa6.1 - i al.P 4-7/ o%3 Alf 740/0 11 73- e 024 33/ " / _a 2 532 21 343 / V e _s -/e, , ', c /E,/.& / /'o 014 'io A8 7 / 70 �s/o3 D / /9/.. 3y / /6I 720 ' ki7 FF PS -1 7i9i Eside. / /9-5.V.2-7 /42 036 0 ,./ 33 '/,Pot 2,.... IP ,pcs 4 f /el 19,3 , 3/.5" `/9.2. G ,983 ,".y V'J. 076-44s,,290 / /0)37/ 1 5 J-?` H - syR 1/ /47 543 / /77 7a3 2 - /5f# e /pi 44,4 ., /7 In, " = i .. 24 J ./..VPytzw i /5o 3pi V 7t; 6/74 moo' ,“ K 1SE?) - a o 4 /21 a 99 L - M , 0 TOTALS : Gs Jsa o9] _ 1// 073 .o /,2, io ` 5 /03 crwcnin c SGAIEova Y. ANEf/GAfl 4-1-EY/-s/cm/ AAID61//A?a ,ee NUMBER /3-•1'3.'2519-2". DEPRECIATION.- TAXABLE YEAR ENDED DESCRIPTION OF PROPERTY COST OR OTHER BASIS BEGINNING ADDITIONS RETIREMENTS EKD:PG t ai34G 4.3 A oa.Ue e . oo.,1/ _ 3177: /P7 C 11.340 1 7/6 _.:-9/ D '1t, *0 :, -195-5-7 E '/ `fa4 •Ff/ -Lize:9 F ./8•'30 ':9 o 4414 G 42, 'MI Ao4Y a53 H iib lei, 4/.777 %9-- 1 J K L • M N O TOTALS 84 9,3„.3,5(4 DATE ACQUIRED LIFE USED - METHOC ACCUMULATED DEPRECIATION BEGINNING - 1ST YR. 20% OTHER CURRENT RETIREMENTS ENDING vasovs uFPi0v5 ADE. 1 3 7a8 GGo "L, ,975- , , ,Z54 aG9 19S fA6, • / 3 9F3 2.9O SGA, 90/ D C/ 337 O./7 i 7 033 / p7.91 OPo D , " 1 7,3 jq/, , G6.5" ,,. c/1 ?.!)tE 11 G2Pi76 . ,'73 33.2 tf 7 e6 /701493 F , ,-0.15:23 60 /1, ASO 6 1 7t? a/- /84 406 t ,56� 3 .a/ 1499 .6-.21 f ,953 9`/5-:54 ,F37 J K M M TOTALS 4/ ,i ? o - i 305 973 7d d'/ 7 SCHEDULE- SCHED' E TL ' • 4. AtfEP,GAAi 7 4(i/5/OA/ _zieCt (io•fix/r ,cAr/O4/s do,eR NoN,vD/�/J- .I2'S DEPRECIATION _ TAXABLE YEAR ENDED /9P4/ NUMBER 13---29,7,250.,t. DESCRIPTION OF PROPERTY COST OR OTHER BASIS BEGINNING ADDITIONS RETIREMENTS ENDU G A /JD ,d� c • Ji93? o77 8 -BUILDING' /f4P•e_e NEMS 1 ?! 22^J C LbA:SeNOLA / Sr! e- ri, D UFF/CE £ ,C•r1101-4E err Ail 2 !„7 E L' F 4E Crf+Z r/e/c 5i 5,- r F V Eat iiL ES ' r . 011P? G 4Fp/os- g9 /73 H TEST EOU/FlocNT-/ P7 1 TooLS y/pJ J K AD EN.P /Tot//ER BNL AN7E1✓NA /) / AGO K /l.1/4e014.1.41✓E ,s7 2/6- e i- -rR QN/C.- 4' 93). M eAeLE 4/ 7 /;7 N STA APi, gf - - 30 057 0 _Awn _t1Ak_p1V Par._ b3uTtold £TEM.SS 04S /3D TOTALS PAGE TOTAL 1 _ 43 ;P2 2/7 DATE ACQUIRED LIFE USED METHOC ACCUMULATED DEPRECIATION BEGINNING .IST YR. 20% OTHER CURRENT RETIREMENTS ENDING V/,?i PvS : VF4/01/S sadtav 1, x.:10 0 I /OL 02-g , G; G 709 8 - 5/ /? 341 Ap 91 0,/ t 715 _j,3D 92P .57 POS / 00_373, • D Of /0 03 /-71:q7.5".:•., E 1) 5 Z5 -7`1 514 . // .3o/ 5 -PL P7S 443,347 .237 1/4&96A P/:' G \ , S 2 03 .5 32S N 1 719. 17P' 1 931 7a / 41/3, 1 /; LEO 17 /07 -,7678% , 1 H 0 42 I ,L 7 ? S ,/ P,:vt .5.'3 ` ?37 K .518 0 3 ? -0-49, ' 4 E'19 , a o ?PD ti6? .-:3 20 ( \ N i ) I'14 ? 50 ,, T/�' /9/ ;As"' im 0 A, 09/ 90y R 490 egg 3 4. r'^.Z1Z TOTALS Pa SE 107AZ_ 3,2--= 1/ 7/ ..1 9 70,E 717 1/?., aI9-490, SCHEDULEQFGE AitlF.e /LAM/ Aird0i2P. DEPRECIATION TAXABLE YEAR ENDED /9E11 Nan/ 44„04 xe 4_5 Hump ER f,3 TP DESCRIPTION OF PROPERTY COST OR OTHER BASIS BEGINNING ADDITIONS RETIREMENTS ENDING A /re. GOIAS: r6.5'71.4 -g42 - B StiASC-4igic.4- it-TAre_AM- C Al?' ..ni."43e, After_F,PLAL .79 14S-, D . E . DA 6.6- '7 D -1 - . F C-434E/e_n. Fore/4)1:4 b • , • - H - . J. • • K 4 ' L M - . . . , .. TOTALS . . 6.5 7/0 770 DATE ACQUIRED LIFE USED ' • klETHOC • ACCUMULATED DEPRECIATION . BEGINNING 1ST YR. 20%40THER CURRENT RETIREMENTS ENDING A VAtaw.S tixk fp wS vAgati -57,7 6I GA , JO, 74,.t, sv9 Q 2, 1,.. 1 ,g7,/ 30, • ././ 9.21 - / 41 (70, c ..- .1.19 J62. 9 20V , 44 P 9 4k 'D . E .et64-- TA L- .2./..,57 caf - - 25.471 F da,:i2/6--r, et- (,,ile • 2? 3// 74/3 y 707 /; r 1 .991 G ..7,17 H . I • , , J . K . . 1. ' M ps . o' . _. TOTALS - - - 34 4,4a .47;(d 9 7f.3.,2;,/ a 4/4 , .21.76, smi truriss ter FA 1.E OFFICE OF MAYOR CITY CIF ITHACA 108 EAST GREEN STREET ITHACA, FIEW YORK 14850 C`(\Q t �- -v�c7� e TELEPHONE: 272-1713 CODE 607 MEMO TO: Common Council Members FROM: Mayor John C. Gutenberger DATE: . October 10, 1984 SUBJECT: American Community Cablevision - financial information required by paragraph 33 The above entitled information has been filed with the City Clerk, Joseph Rundle, and you can stop by at your convenience to look it over. CC: Joseph Rundle w/attach. Robert Fletcher, Cable Comm. "An Equal Opportunity Employer with an Affirmative Action Program" AMERICAN COMMUNITY CABLEVISION A DIVISION OF AMERICAN TELEVISION & COMMUNICATIONS CORP. 519 West State Street. Ithaca, N.Y. 14850 (607)272-3456 October 9, 1984 Mayor John Gutenberger City of Ithaca 108 E. Green Street Ithaca, NY 14850 ' CEIVED OCT 0 1984 Dear Mayor Gutenberger and Common Council Members: Enclosed please find copies of our financial information required by paragraph 33. If you have any questions or comments please feel free to contact me. Sincerely, Georgia Griffith General Manager GG/nwe Enc. (1599]1 1e1' "43 Form;' ■` �O tw.nt otthe Treesury Internal Revenue Service [Form 1120] U.S. Corporation_ Income Tax Return For calendar year 1983 or other tax year beginning ,1983,ending -I:Fa Paperwork Reduction Act Ratko. see page 1 of the instructions. ,19 Check if a— • A. Consolidated return 0 II. Personal Holding Co. a C. Business Code No. (See page 9 of Instructions) 4825 Use 113- label. Rs-label. Other- wise print or type. Name nn RP -- QIAERhCAN-TEL,EV15lotJ $ CpMMIAn1ICATt4,NS CO 2233 OMB No.1545.O12d 983 0. Employer Identillcation number -29229:2_ Number and street 1(C) IN I?mESs Delve W E51 E. Date incorporated 0I - 16 -18 City or town, State, and ZIP code E.116LEA Cot) , COLT .aoa BOI1t F. Total assets (see Specific Instructions) $ 6;73. l l /6z9 C. Check box if there has been a change in address from the previous year 1 (a) Gross receipts or sales $ h Bz. c7r7•-/a5 (b) Less returns and allowances $ Balance ► 2 Cost of goods sold (Schedule A) and/or operations (attach schedule) 3 Gross profit (subtract line 2 from line 1(c)) 4 .Dividends (Schedule C) 5 Interest 6 Gross rents 7 Gross royalties 8 Capital gain net income (attach separate Schedule D) 9 Net gain or (loss) from Form 4797, line 14(a), Part II (attach Form 4797) 10 Other income (see instructions—attach schedule) s,_t-tEnut_� 11 TOTAL income—Add lines 3 through 10 and enter here 5SAV2 EcXE5 1(c) 182.017 ,185 2 6, 434 ,1(..6 3 15, (243, G19 4 55,95o 5 2,34-7.368 6 7 8 131,114 9 10 Deductions sc h 12 Compensation of officers (Schedule E) 13 (a) Salaries and wages $ 41-• • 7 14 Repairs (see instructions) 15 Bad debts (Schedule F if reserve method is used) 16. Rents 17 Taxes 18 Interest 19 Contributions (not over 10% of line 30 adjusted per instructions) 20 Depreciation (attach Form 4562) 21 Less depreciation claimed in Schedule A and elsewhere on return 22 Depletion 23 Advertising 24 Pension, profit-sharing, etc. plans (see instructions) 25 Employee benefit programs (see instructions) 26 Other deductions (attach schedule) "X-\-\E-u%--E 27 TOTAL deductions—Add lines 12 through 26 and enter here ► 28 Taxable income before net operating loss deduction and special deductions (subtract line 27 from line 11) 29 Less: (a) Net operating loss deduction (see instructions—attach schedule) 129001 (b) Special deductions (Schedule C) 9(b)I 30 Taxable income (subtract line 29 from line 28) 31 TOTAL TAX (Schedule J) .32 Credits: (a) Overpayment from 1982 allowed as a credit. (b) 1983 estimated tax payments (c) Less refund of 1983 estimated tax applied for on Form 4466 (d) Tax deposited with Form 7004 (e) Credit from regulated investment companies (attach Form 2439). (f) Federal tax on special fuels and oils (attach Form 4136) 33 TAX DUE (subtract line 32 from line 31—If line 32 is greater than line 31, skip line 33 and go to line 34). See instruction C3 for depositary method of payment (Check ► 0 if Form 2220 is attached. See instruction D.) ► $ 34 OVERPAYMENT (subtract line 31 from line 32) 35 Enter amount of line 34 you want Credited to 1984 estimated tax ► I Refunded ► Under penalties of perjury, I declare that I have examined this return, indudingaccompanyi schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preperer (other than taxpayer) is based on all information of which preparer has any knowledge. (b) Less jobs credit $ 9 ,,025 Balance ► 1220 100.496 , / 73 1(4 ( 11 12 2.. 950,`120 < q,151,119% 20Z, 383, 85 a. 13(c) 4b. \15.c)92 14 3.1126Pi92 15 Z.16a,149 16 -7 Z!a 151 17 8,944.650 18 2,310.355 19 ? 4118 21(b) 60.4,76,173 22 23 �.Z.7.5/z 24 �,2m.2Z7 25 92c),147 26 6,6, 4c73, 523 27 2o5.47/,689 28 <3.095, B31> 47, 556 29 47, 558 30 31 <3, t43:Set 5) 32 Please Sign Here 33 34 35 Paid he'arer's Use Only Signature of officer sari tune Data Title Dobe Check if • scIf4m• ► Li dowd Firm's name (or yours. if self-employed) and address E.I. No. ► Meade ► Preparer's social security number I I- -22334- - Form 1•Y20P9a3) [Form 11201 • 197 1183 Pa3. 2 SCHEDULE A.—Cost of Goods Sold (See instructions for Schedule A) 1 Inventory at beginning of year 2 Merchandise bought for manufacture or sale 3 Salaries and wages 4 Other costs (attach schedule) 5 Total—Add lines 1 through 4 6 Inventory at end of year 7 Cost of goods sold—Subtract line 6 from line 5. Enter here and on line 2, page 1 8 (a) Check all methods used for valuing closing inventory: (i) ❑ Cost (ii) ❑ Lower of cost or market as described in Regulations section 1.471-4 (see instructions) (iii) ❑ Writedown of "subnormal" goods as described in Regulations section 1.471-2(c) (see instructions) (iv) ❑ Other (Specify method used and attach explanation) ► (b) Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) 1 2 3 4 5 6 7 (c) If the LIFO inventory method was used for this tax year, enter percentage (or amounts) of closing inventory computed under LIFO (d) If you are engaged in manufacturing, did you value your inventory using the full absorption method (Regula- tions section 1.471-11)? ❑ (e) Was there any substantial change in determining quantities, cost, or valuations between opening and closing inventory? 0 If "Yes," attach explanation. 0 Yes ❑ No Yes ❑ No SCHEDULE C.—Dividends and Special Deductions (See instructions for Schedule C) 1 Domestic corporations subject to 85% deduction 2 Certain preferred stock of public utilities 3 .Foreign corporations subject to 85% deduction 4 Wholly-owned foreign subsidiaries subject to 100% deduction (section 245(b)) . 5 Total—Add lines 1 through 4. See instructions for limitation 6 Affiliated groups subject to the 100% deduction (section 243(aX3)) 7 Other dividends from foreign corporations not included in lines 3 and 4 . . . 8 Income from controlled foreign corporations under subpart F (attach Forms 5471) 9 Foreign dividend gross -up (section 78) 10 DISC or former DISC dividends not included in line 1 (section 246(d)) 11 Other dividends 12 Deduction for dividends paid on certain preferred stock of public utilities (see instructions) 13 Total dividends—Add lines 1 through 11. Enter here and on line 4, page 1 . . ► 14 Total deductions—Add lines 5, 6 and 12. Enter here and on line 29(b), page 1 SCHEDULE E.—Compensation of Officers (See instruction for line 12, page 1) Complete Schedule E only if your total receipts (line 1(a), plus lines 4 through 10, of page 1, Form 1120) are $150,000 or more. (A) Dividends received (81% (C) Special deductions: multiply (A) X (B) 55.95cD 85 41, 556 59.13 85 100 47.35'3 100 55,9So 47, 553 1. Name of officer 2. Social security number 3. Percent of time devoted to business Percent of corporation stock owned 6. Amount of compensation 4. Common 5. Preferred % % 96 % % % % % % % % % % % % % % % % % % Total compensation of officers—Enter here and on line 12, page 1 SCHEDULE F.—Bad Debts—Reserve Method (See instruction for line 15, page 1) 1. Year 2 Trade notes and accounts 3. Sales on account Amount added to reserve 6. Amount charged against reserve 7. Reserve for bad debts at end of year 4. current yews provision 5. Recovenss recenobleoLdstandirgaterslofyeer 1978 1979 1980 1981 1982 1983 1.4Z3,'1So6.siab,699 44,7774 10,604 90,4A0 176,63I 1,ZIq,246 ,65,161,415 Gal,59Z EZ,1`fi 2115,392. 114r98� S. laic 4(e4 8414310.151 1,11.5,215 15b,915 571a, VS 910,488 13,c4,COI 114.go2, E 2a43.57.0 .111,969 1,60I.'760' 2,22111 17 '7, 070, Z40 14i IU:LWA 2.CA5,91L. , 414r0OD 1, I l5, 313 3,081.380 3.69 1, b46 ` 18Z,OTLIl 5 Z. 166,149 1445,520 5,051.217 Z, 24377Z. .d ;a '; 2 t HS [Form 1120] :fora t;2o(Lits)' SCHEDULE J. -Tax Computation (See instructions for Schedule J on page 7) 1 Check if you are a member of a -controlled group (see sections 1561 and 1563) ► 2 If line 1 is checked, see instructions and enter your portion of the $25,000 amount in each taxable income bracket: (i) $ (li) (iii) $ (iv) $ 3 Income tax (see instructions to figure the tax; enter this tax or alternative tax from Schedule D, whichever is Tess). Check if from Schedule D ► p 4 (a) Foreign tax credit (attach Form 1118) 4(a) (b) Investment credit (attach Form 3468) (c) Jobs credit (attach Form 5884) (d) Employee stock ownership credit (attach Form 8007) (e) Research credit (attach Form 6765) (f) Possessions tax credit (attach Form 5735) (g) Alcohol fuel credit (attach Form 6478) (h) Credit for fuel produced from a nonconventional source (see instructions) 3 2233-3 -- Page 3 (b) (c) (d) (e) (f) (g) (h) 5 Total—Add lines 4(a) through 4(h) 6 Subtract Zine 5 from line 3 7 Personal holding company tax (attach Schedule PH (Form 1120)) 8 Tax from recomputing prior -year investment credit (attach Form 4255) 9 Minimum tax on tax preference items (see instructions—attach Form 4626). 10 Total tax—Add lines 6 through 9. Enter here and on line 31, page 1 10 Additional Information (See page 8 of instructions) H Did you claim a deduction for expenses connected with: (1) Entertainment facility (boat, resort, ranch, etc.)? (2) living accommodations (except employees on business)? . . (3) Employees attending conventions or meetings outside the North American area? (See section 274(h)) . . . (4) Employees' families at conventions or meetings? If "Yes," were any of these conventions or meetings outside the North American area? (See section 274(h)) Employee or family vacations not reported on Form W2? . Did you at the end of the tax year own, directly or indirectly, 50% or more of the voting stock of a domestic corporation (For rules of attribution, see section 267(c) ) If "Yes," attach a schedule showing: (a) name, address, and identifying number; (b) percentage owned; (c) taxable income or (loss) before NOL and special deductions (e.g., If a Form 1120 from Form 1120, line 28,oige 1) of such corporation for the tax year ending with or within your tax year; (d) highest amount owed by you to such corporation during the year ; and (e) highest amount owed to you by such corporation during the year. (2) Did any individual, partnership, corporation, estate or trust at the end of the tax year own, directly or indirectly, 50% or more of your voting stock? (For rules of attribution, see section 267(c).) If "Yes," complete (a) through (e) (a) Attach a schedule showing name, address, and identifying number. (b) Enter percentage owned ► (c) Was the owner of such voting stock a person other than a U.S. person? (See instructions) If "Yes," enter owner's country ► (d) Enter highest amount owed by you to such owner during the yar ► Ye s No 1 (e) Enter highest amount owed to you by such ownerduring the year ► (Note: For purposes of 1(1) and 1(2), "highest amount owed" includes loans and accounts receivable/payable.) J Refer to page 9 of instructions and state the principal: Business activity ► Product or service ► K Were you a U.S. shareholder of any controlled foreign corporation? (See sections 951 and 957.) If "Yes," attach Form 5471 for each such corporation. L At any time during the tax year, did you have an interesf in or a signature or other authority over a bank account, securities account, or other financial account in a foreign country? (See page 8 for exceptions and filing requirements for Form 90-221.) If "Yes," write the name of the foreign country ► M Were you the grantor of, or transferor to, a foreign trust which existed during the current tax year, whether or not you have any beneficial interest in it' If "Yes," you may have to file Forms 3520, 3520-A or 926. N During this tax year, did you pay dividends (other than stock dividends and distributions in exchange for stock) in excess of your current and accumulated earnings and profits? (See sections 301 and 316) . . If "Yes," file Form 5452. If this is a consolidated return, answer here for parent corporation and on Form 851, Affiliations Schedule, for each subsidiary. O During this tax you did you maintain any part of your accounting/ tax records on a computerized system'. P Cheek method of scant* (1)OCash (2)DAccrual (3)a Other (sadfl►) ► [9 599] [Form 1120.] ED LLE —Balance Sheets - Assets 19e 124.1 Pap. 4 • Beginning of tax year End offaiy sr. rano 2 Trade notes and accounts:receivable . . • (ay Less allowance for bad debts : 3 Inventories . • • • • • - • • • • 4 Federal and State government obligations 5 Other current assets (attach schedule) TN 6 Loans to stockholders 7 Mortgage and real estate loans 8 Other investments (attach scheduleff A 9 Buildings and other depreciable assets (a) Less accumulated depreciation 10 Depletable assets (a) Less accumulated depletion 11 Land (net of any amortization) 12 Intangible assets (amortizable only) (a) Less accumulated amortization . . 13 Other assets (attach schedule) -N 35E- 14 Total assets Liabilities and Stockholders' Equity 15 Accounts payable 16 Mortgages, notes, bonds payable in less than 14ear 17 Other current liabilities (attach schedule) 18 Loans from stockholders (A) • (0)-3::-: 1,010,Z40 1 3 , 641 648 431,-Ti3 3.x,&6 - 2, 343,-r77_ 1,441,$'6 \,6•.089 1,Mc3 Sea 2:116,9(Y1 131. 86 25Z,c-41A,023 248.613 48q 33t423. 452 ,CPS 2b3 7 7R 4-5a, eiDO n a q A34 .a205 33z, (-f 7158 3.938,, ZT7 48,106.535 \ 213 A013 9za \7Z) 04 x,083.498 Z5,8Zf3,gs49 \OZ, CPO .07G Gt , IOZ, 691 585440,x2, .-T►a.31E G93, 3ci 1,619 43,111,611 ,118,1 5,ZmA48 19 Mortgages, notes, bonds payable in 1 year or more 20 Other liabilities (attach schedule) A: lir 21 Capital stock: (a) Preferred stock . . . (b) Common stock . . . 22 Paid -in or capital surplus 23 Retained earnings—Appropriated (attach schedule) 24 Retained earnings—Unappropriated 25 Less cost of treasury stock 26 Total liabilities and stockholders' equity . . SCHEDULE M-1.—Reconcillation of Income Per Books With Income Per Return Do not complete this schedule if your total assets (line 14, column (D), above) are Tess than $25,000. x,343,551 '14.418,85I 181,"195,219 1-1,87.7.651 47,413,0S1 1,372_ 1.312_ 1.602_ ZZ6,433, 4 7.4Z,-167Ri6 , 8$f ,moi 65,x, 505 693, i t, 6%1 1 Net income per books 2 Federal income tax 3 Excess of capital Tosses over capital gains . . . 4 Income subject to tax not recorded on books this year (itemize) SCN3� 5 Expenses recorded on books this year not deducted in this return (itemize) (a) Depreciation . . . $ (b) Contributions carryover $ SCN lir_ 6 Total of lines 1 through 5 SCHEDULE M•2.—Analysis of Unappropriated Retained Earn ngs Per Books (line 24 above) Do not complete this schedule if your total assets ;line 14, column (D), above) are less than $25,000. 8.319, I?'a 1(0, 339, 2.27 Q,Ela ,ON) b,1 i9.38I �11.310,466 7 Income recorded on books this year not includ- ed in this return (itemize) (a) Tax-exempt interest $ .1a 8 Deductions in this tax return not charged against book income this year (itemize) (a) Depreciation . . . $33R9t3,SZR (b) Contributions carryover $ • Ari, I2z 9 Total of lines 7 and 8 10 Income (line 28, page 1)—line 6 less line 9. 1.040.651 43,425,65 41,466.303 (5, 095,831'7 1 Balance at beginning of year REST, -514 2 Net income per books 8'' 1?8 3 Other increases (itemize) A.=7.ZIl & ENT hit Tb C.1.9 TAL Cts. (NAST' 1 AL or•1 93,G 4 Total of lines 1, 2, and 3 Elf 599] `43,933 6S, 360,505 5 Distributions: (a) Cash (b) Stock (c) Praparty 6 Other decreases (itemize) 7 Total of lines 5 and 6 8 Balms at end of year (line 4 less line 7) . . c,5,3a1 505 197 11 ' SCHEDULE D (Form 1120) Department of the Trwury Internal Revenue Service atm 1120, Schedule D] Capital Gains and Losses To be flied with Forms 1120, 1120 -DISC, 1120F, 1120-H, 1120L,1120M,1120-POL, 990-0, and certain Forms 990-T 2243 0M8 No. 1545-0123 683 Nene /,9m64//Glr/ 7LE✓/S/0/17 ` CaPPAi Si cm/ eAT'OMS Employer Identification number /3 -2 -12 -Soy PART I. Short-term Capital Gains and Losses—Assets Held One Year or Less a. Kind of property and description (Example, 100 shares of "Z" Co) b. Date acquired (mo., day, yr.) c. Date sold (mo, day, )r) d. Gross sales price e. Cost or other basis, plus expense of sale f. Gain or (loss) (d less e) 1 -/oo,oao. 6, 9/ 7, 7f5 ,/yrneAlD S7CC4. r,yG/ 75, X2-03. Y ..o7, S"S /am N041 SrccZ - Gc, coo ;#: (5,,630,> GS, 63c • i(d Ne -6/17i, &/3 2'E 7C XCEss ,C 055 l4C,2vNT 7 Long-term capital gain from installment sales from Form 6252, line 21 or 29 8 Net long-term capital gain or (loss) 7: 8 3/, /3 7,77'7' 2 Short-term capital gain from installment sales from Form 6252, line 21 or 29 3 Unused capital Toss carryover (attach computation) 4 Net short-term capital gain or (loss) 2 3 4 PART 1L— Long-term Capital Gains and Losses—Assets Held More Than One Year 5 Enter gain from Form 4797, line 6(aX1) 5 /s, 94/4, foJ 6h. vE?r,N' Xiia• Disr• 13/7,785 -/oo,oao. 6, 9/ 7, 7f5 ,/yrneAlD S7CC4. r,yG/ 75, X2-03. Y ..o7, S"S /am N041 SrccZ Gc, coo ;#: (5,,630,> GS, 63c i(d Ne -6/17i, &/3 2'E 7C XCEss ,C 055 l4C,2vNT 7 Long-term capital gain from installment sales from Form 6252, line 21 or 29 8 Net long-term capital gain or (loss) 7: 8 3/, /3 7,77'7' PART III.— Summary of Schedule D Gains and Losses (Form 1120L filers omit line 11) 9 Enter excess of net short-term capital gain (line 4) over net long-term capital loss (line 8) 10 Net capital gain. Enter excess of net long-term capital gain (line 8) over net short-term capital Toss (line 4) 11 Total of lines 9 and 10. Enter here and on Form 1120, line 8, page 1; or the proper line on other returns Note: If there is no entry on line 11, see instructions on capital losses for explanation of capital loss carrybacks PART IV.— Alternative Tax Computation (Forms 1120-H and 1120 -DISC filers omit Part IV) 10 3/,/37.77 11 3/,/37,7711 (a) Form 1120, line 30, page 1 12 Taxable income. Enter the amount from j (b) Others—Enter amount from the proper l line of other returns 13 Net capital gain from line 10 14 Subtract line 13 from line 12 15 Partial tax. Compute the (a) Form 1120—In accordance with the instructions for Form tax on line 14 as follows 1120, Schedule J . . . . . . . . . . . (b) instructions for applicablelreturtttaxcomputation 16 28% of line 13 . 17 Alternative tax—total of lines 15 and 16. If less than amount of tax figured by regular method, enter here and on Form 1120, Schedule J, line 3; or the proper line on other returns. Also check box for Schedule D For Papsrwork Reduction Act Notics, coo pap 1 of Form 1120 Instructions. [if 5991 Schedule 0 (Form 1120) 1983 12 13 14 15 16 17 [[-!1353 us ues InternalaI1sve Nu Se vi (a) ie Minium [Force 3468) . Computation of Investment Credit ► Ankh.%your tarn robin, _.. Schedule. (Business Energy Investment Crofton back. _•3147 OMU Ne. 1S454lss • 1983 25 lesonfying number. 13 -1972502. Name(s) as Shown on nib= twAFSZtes,31-7ELeaMkosa QamenuN\CANtoNS \.OIZP PART I.—Election (Chicle the box(es) below that apply to you (See Instruction D).) A Wad to increase my qualified investment to 100% for certain commuter highway vehicles under section 46(cX6) 0 I elect to increase my qualified investment by all qualified progress expenditures made this and alt later tax years ❑ Enter total qualified progress expenditures included In column (4), Part II I► C 'I claim full credit on certain ships under section 46(g)(3) (See Instruction. for debits.) PART II.—Qualifled Investment 1 Recovery Property Line (1) Class of (2) Unadpsted snit (3) ApplicableProperty Percentage (4) fied Imetiment (=nil n2xcolumn3) Regular Percentage • New ' Propel (a) 3 -year 1, 965, S :$ 60 1, l7q, 5z8 85.155.23g (b) Other a5 I55. 23$' 100 Used Property a (e) 3 -year 60 ' (d) Other 100 Section 48(q) Election to Reduce Credit (instead of adjusting basis) New Property (e) 3 -year 40 (0 Other 80 Used PraPellY (1) 3 -year 40 (h) Other 80 2 Nonrecovery property—Enter total qualified investment (See instructions for line 2) 3 New commuter highway vehicle—Enter total qualified investment (See Instruction D(1)) 4 Used commuter highway vehicle—Enter total qualified investment (See Instruction 0(1)) 5 Total qualified Investment In 10% property—Add lines 1(a) through 1(h), 2, 3; and 4 (See instructions for special limits) 6 Qualified rehabilitation expenditures—Enter total qualified investment for: a 30 -year-old buildings b 40-year•old buildings c Certified historic structures (See instructions) 2 • 3 4 5 86, 334, 766 60 6b 6e Tentative Regular Investment Cr 7 10% of line 5 8 15% of line 6a 9 20% of line 6b 10 25% of line 6c 11 Credit from cooperative—Enter regular investment credit from cooperatives 12 Current year regular investment credit—Add lines 7 through 11 13 Carryover of unused credits. 14 Carryback of unused credits 15 Tentative regular investment credit—Add lines 12, 13, and 14 PART IV.—Tax UabIIIty Limitations 7 8, 63,477 'i 9 10 11 12 13 14 15 16 a Individuals—From Form 1040, entsrtaxfrom line38, peel, plus any additional taxes from Form 4970 . b Estates and trusts—From Form 1041, enter tax from line 26a, plus any section 644 tax on trusts c Corporations (1120 filers)—From Form 1120, Schedule J, enter tax from line 3 d Other organizations—Enter tax before credits from return 17 a Individuals—From Form 1040, enter credits from Tines 41 and 42 of pap 2 b Estates and trusts—From Form 1041, enter any foreign tax credit from line 27a e Corporations (1120 filers)—From Form 1120, Schedule J, enter any foreign tax credit from line 4(a), • plus any possessions tax credit from line 4(0 d Other organiestions—Enter any foreign or possessions tax credit 18 Income tax liability u adjusted (subtract line 17 from line 16) 19 a Enter smaller of line 18 or $25,000. See instruction for line 19 b If line 18 is more than $25,000—Enter 85% of the excess 20 Regular investment credit limitation—Add lines 19a and 19b 21 Allowed regular investment credit—Enter the smaller of line 15 or line 20 22 Business energy investment credit limitation—Subtract line 21 from line 18 23 Business energy investment credit—From line 14 of Schedule B 24 Allowed business energy investment credit—Enter smaller of line 22 err line 23 25 Total allowed regular and businessenerg investment credit—Add lines 21 and 24. Enter here and an Form 1040, lino 43; Schedule J (Form 112O)re 4(b), pap 3; or tM proper line on other returns For Paperwork Reduction Act Notice, see separate Instructions. 16 17 18 19e 19b 20 21 22 23 24 25 or 1155j Foran 3468 (19113) [Form 3468j„ 1911 114e :Tm nvestment 1 Enter on Ones 1(a) throue 1(U your quoin= mvsmw�r< m uwr� wR.p vw�•, �,•• •� •••• •,•••• ,,••••• .. •.._ ............... .... .. _.. Type of ProPe�y Um ( or LifeYaws G(o�d• Unadjusted $ 4) Percentage Nalffledn�iaebnent (column 3�x column 4) RacowrY (a) 3 -year Nonrecovery (e) 60 (b) Other , 331,2 100 5 or more but less than 7 Nonrecovery (e) 3 or mon but less than 5 (e) 33 > - (d) 5 or more but less than 7 4 Total 11% energy investment property—Add lines 3(a) through 3(e), column (5) 66 % (5) 7 or mon 100 a Total 1096 energy investment property—Add lines 1(a) through 1(e), column (5) 2 3 Enter on lines 3(a) through 3(e) the basis in qualified hydroelectric generating property. Enter nameplate capacity of the property (see instructions for Recovery (a) 3 -year „ 60 (b) Other _ 100 Nonrecovery (e) 3 or more but less than 5 , 331,2 (d) 5 or more but less than 7 __ - 66 1 (e) 7 or more- - 100 4 Total 11% energy investment property—Add lines 3(a) through 3(e), column (5) 4 5 Enter on lines 5(a) through 5(e) the basis in energy property that is solar equipment, wind equipment, ocean thermal equipment, or geothermal equipment. (See instructions for line 5, column (2).) Recovery (a) 3 -year 60 (b) Other 100 Nonrecovery (e) 3 or more but less than 5 331 (d) 5 or more but less than 7 66 1 (e) 7 or more 100 6 Total 15% energy investment property—Add lines 5(a) throu&1 5(e), column (5) . 7 Enter 10% of line 2 8 Enter 11% of line 4 9 Enter 15% of line 6 10 Cooperative credit—Enter business energy investment credit from cooperatives . 11 Current year business energy investment credit—Add lines 7 through 10 12 Carryover of unused credit(s) 13 Carryback of unused credit(s) 14 Tentative business energy investment credit—Add lines 11 through 13. Enter here and on line 23 of page 1 Instructions for Schedule B (Form 3468) Energy property must meet the same requirements as regular investment credit property, except that the provisions of sections 48(aXl) and 48(aX3) do not apply. See Instructions for Form 3468 for definitions and rules regarding regular investment credit property. Energy property must be acquired new. See sections 46(aX2XC) and 48(IX1) through (17) for details. See section 48(1X17) for special rules on public utility property, and section 48(0(11) (as amended by the Crude Oil Windfall Profit Tax Act of 1980) for special rules on property financed by Industrial Development Bonds. Speelfic Instructions One Credit Only.—If property qualifies as mon than one kind of energy property, you may take only one credit for the property. Unes 1, 3, and 5—Type of Property.—For definition of recovery and nonrecovery property, see the separate Instructions for Form 3468. Une 1—Column (2).—Use the code letters from the following list to indicate the kind of property for which you are claiming a credit. If you enter more than one kind of property on a line, enter the code letter for each kind of property in column (2) and the code letter and dollar amount of each kind of property in the right hand margin. The code letters are: a. Biomass property b. Qualified intercity buses (see section 48(IX16XC) for the limitation on qualified investment for intercity buses based on the increase in operating seating capacity). Une 3.—Figure your qualified investment in hydroelectric generating property. If the installed capacity is more than 25 6 7 8 9 10 11 12 13 14 megawatts, the 11% energy credit is allowed for only part of the qualified investment. See section 48(1X13XC). In the space provided in line 3, enter the megawatts capacity of the generator as shown on the nameplate of the generator. Une 5—Column (2).—Use the code letters from the following list to indicate the kind of property for which you are claiming a credit. Be sure to put the code or codes on the line for the correct recovery period or life years as explained in the instruction for line 1, column (2). c. Solar equipment (but not passive solar equipment) d. Wind equipment e. Ocean thermal equipment f. Geothermal equipment See sections 48(1X4) and 48(IX3XAXviii) and (ix) for definitions and special rules that apply to these kinds of property. [11155] i_11305] Fenn 4 562. Department of the Tmsswy Internal Revenue Sema 1/s 1043 [Form 4562]. Depreciation and Amortization. P. 511 WPIrate Instructions. 110 Attedl.this form to your return. 3231-11 I__ ow ti...-iiiimi72 11983 . 67 Names) as shown on rstum T-LE./J,1t .' >� Co0,A„YN,ed7ioA/s Cops Identifying number /3-292 2 -soy Business or activity to which this form relates PART 1.—Depreciation Section A.—Election to expense recovery property (Section 179) A. Class of property B. Cost C. Expense deduction 1 Total (not more than $5,000). Enter here and on page 2, line 8 (Partnerships or S corporations—see the Schedule K and Schedule K•1 Instructions of Form 106.5 or 1120S) Section B —Depreciation of recovery property A. Class of property B. DateE. P laced in service C. Cost or other basis D. Recovery period Method of figuring depreciation F. Per- carnage G. Deduction for this year 2 Accelerated Cost Recovery System (ACRS) (See instructions): Sit ScH. Y 4r„rcNe.D .2, 00 9A 9 r / (a) 3 -year property Set SC/I $ ATTACHED `%2. 6341,/32- (b) 5 -year property (c) 10 -year property (d) 15 -year public utility property (e) 15 -year real property- low-income housing . See S. /47y e#eD 72-5,//2 (f) 15 -year real property other than low-income housing 3 Property subject to section 168(eX2) election (See instructions): _� !.r . 1 A , q 4 Total column G. Enter here and on paha 2, line 9 See Paperxork Reduction Act Notice en pep 1 fifths separate instructions. [113051 Faun "4562 0983) 1 32312 Fenn 4562(1983) [Form 4562] Section C.—Depreciation of nonrecovery property 195 10.83 Pia 2 • of A. Description arty O. Date acquired C. Cost or D' DQAr� allowed or allowable in earlier years E Method of depreciationh F. Life or rate G. Deduction for this year 5 Class Life Asset Depreciation 6 Other depreciation (See instructions): Range (CLADR) System Depreciation . S'E , 5 . 4:7796, 'EP , ► / 2 9 i O y 6 9' SEE ScH2r41,7_,K OD 4 477, Sec VBP,e. oN r/iEr� X55675 So`p oQ j2,yDED 53$' 9a' 7 Total column G, Section C is- , z 6 7S z 8 Enter amount from Section A:line 1 (Partnerships and S corporations enter zero) 9 Enter amount from Section 8, Zine 4 • S's, 369 z z,; 10 Total—Add lines 7, 8, and 9. Enter here and on the Depreciation line of your return Go) L/ 9 6, ) 7 PART II.—Amortization of Property A. Description of property B. Date acquired C. Cost or other basis D. Amortization allowed or allowable in earlier years section F. Amortize - tion period or percentage for this year FRANC.N\5E c2D51-5 VAR. 11,9PA4,4Z3 17.,971A10 167 VAtL -5,0y11.857 Q>t.157 F6-e.1Cfl Cr sTS RBI 10.049 49 — 189 SL , IOl1Z, 1, OOS I Total column G. Enter here and on Other Deductions or Other Expenses line of your return 1, 098, 86L [1j 1305) Ei 1368] 4797 19! 1011 Forrn 4797] Supplemental Sehedtile of Gehl and Losses (InciladesQatnnand Losses From Sales or Exchanges of Assns Deportment lSanee Used Ina Trade or Business and Involuntary Conversions) Po_ Tar flredwIth FA•w. 1040 .,1043, •Ala, 1120 -ts . See Separate - - Xons flerns(s) a. showmen return 41/PrZeiE.914/ 1-z- S/o.d �e,►��r�vViG'!T/iA/S 649 3299 1548;o11, 4983 khat fyl g number /3- 2-y7.-7-So2.- PART 1.—CaSales or Eaxncd a ge of PropertyU�In a Trade or Business, and Involuntary Conversions From Other Than suaRYProperty HeldMore Thari 1 Year (Except for Certain Livestock) Note: Uso Form 4684 b report Involuntary conversions from casualty and theft • Cautlom if you sold property on which you claimed the investment credit )vu may be cable for -recapture of that credit • See Form 4255 for additional information. a. Description d prop 1 J•1rus7oWi BcACs- LE. 5E /.h /r? . rE/14LE.5 Egg/As. b. Dee (m0., nor. YO d (n. 1. Data sord Ono., dor. rr.) l dross salsa price 7-/-f'.3'kizE4,wo Je.f a Depreciation allowed (a allowable) since acquisition -9 6,/3-3 3. Coat or other Pr enab �and expense of sale SBoa, /0. 777 (1 mLOSS nus the sum old and e) s • GAIN (d plus e minus f) 7tsod 1 9/.3P9 .&,51CGNEtL/ 64,40144/ M ?c'? . F (Ae 2 Gain, if any, from Form 4684, Hne 27 y3zc, o�p 8�6ryS y 7� it7 o- fol/ 009 4 -G -g3 32Y41,hoS" 3 Section 1231 gain from installment sake from Form 6252, line 21 or 29 ? zo ; /:2,SSG,,Sy.? . F- 4 Gain, if any, from line 29, Part Ill, on back of this form from other than casualty and theft. • . • • 5 Add lines 1 through 4 in column g and column h 6 Combine columns g and h of line 5. Enter gain or (loss) here, and on the appropriate line as follows; (a) For all except partnership return& (1) If line 6 is a gain, enter the gain as a long-term capital gain on Schedule D. See instruction E. (2) If line 6 is zero ora loss, enter that amount on line 7. (S corporations, enter on Schedule K (Form 1120S), line 7.) _ (b) For partnership returns: Enter each partner's share of line 6 above, on Schedule K-1 (Form 1065), line 8. - 44, STY 73/9 /4:7. •/Sy is 9 . 8o$ /S, 9+4.208 PART II.—Ordinary Gains and Losses a Description of pr�rlr b. Date acquired ..(R1Q.• ter• rr) c. Date sold Ono.. dor. )14pna d. Gress sable e. aIIDepreciation (or allowable) sines acquisition 3.owed Cost °tether Improvemepnts and expense of sale g. -LOSS 11. GAM (f minus the (d plus a mutual) atm of d and e) l) 7 Loss, if any, from 8 Gain, if any, from 9 Net gain or (loss) 10 Ordinary gain from 11 Recapture of section 12 Other ordinary gains line 6(aX2) line 28, Part III on from Form 4684, Ones insallmentsales 179 deMIction and losses (include trade of this form 19 and 26a from Form 6252,line (see instructions) property held 1 20or28 .7-Pfi's year or less) ci .94°:6. . . . . /, 2 .f/, =89 /btf, L�6 13 Add lines 7 through 14 Combine columns `a) Forcaer exceptence (b) For individual (1) if the loss Schedule (2) Redetermine tine 15 12 in column gond g and h of line 13. column h - Fater gain or (Toss) here, and on the approprhrte One as follows Er..erV� gain cc (ion) from rtes line 14• on the an bairn tiled. See l :ruction a lost from Form 4684, Part II. column 8(10, enter that part of the loss hen as from 'Rent -4797, In 14(bX1T on fine 14. excluding the loss (If any) on line 14(bX1). Enter here and - • - -- ( ) ?, ?Sc, 97-o f for apedf c end on lite 21 of on Form 1040, ,'. f 5-0' • 12-e individiai re rate= on Erre 7 ertudes A (Fora 1040). Inert* the gain or (loss) Foran 4797 (19113) [11368] MOO For 4797 (1983) [Form 4797] 195 1043 Page 2 fi�RT 1111. --Gain From Disposition of Property Under Sections 1245, 1250, 1251, 1252. 1254, 1255 • Ship lines 23 and 24 if yoe did not dispose of farm property or farmland, a ii a partnership fila this forts. • 15 Description of sections 1245. 1250, 1251. 1252. 1254, and 1255 property: f � Oats acquired : (mo., 44Y. yr.) Date fold (M0.. daY. r.) (A)' p/VE . — 34-4C.C4,eLt.�rrvy/ti_AAl r/f4• F1G/d_3 (B): (C) (D). . • Relate Innes 15(A) through 15(D) to these columns ir. to ► sw Property (A) Property (B) • Property (C) Property (D) 16 Gross sales prtte 17 Cost or other basis plus expense of sate 111 Deprecation (or depletion) allowed (or allowable) ' IS Adjusted basis; subtract Ifni 18 from Fine 17 - 20 _Total lain; subtract line 19 from line 16 h 7V Z o fS . 6 40V, (. 34. /, 2-97, idy 37-3, 36-2.- S L 4 fx3, 7S3 sect.n 1245'propertys 1,140- t Y 21 tf (a)allowed (or allowable) after applicable date (see instructions) (t) Eider smaller of line 20 or 21(a) /, 1.8/, s. P 9 22 If section 1250 property: (If straight line depreciation used; enter zero on tine 22(0;) (a) Additional depreciation after 12/31/75 (b) Applicable percentage times the smaller of line 20 or line 22(a) (see instruction G:4) (e) Subtract floe- 22(a) from line 20. If line 20 is not more than Ilne 22(a); skip -lines 22(d) and 22(e) (d) Additionat depreciation after 12/31/69 and before 1/1/76 (a) Applicable percentage times the smaller of line 22(c) or 22(d) (see instruction G.4) (1) Add lines 22(b), and 22(e) - 23 tf section 1251 property: (a) 1f farmland, enter soil, water, and land clearingexpenses for current year and the four preceding years (b) tf farm property other than land, subtract line 21(b) from fine 20; if farmland, enter smaller of line 20 or 23(a) (c) Excess deductions account (see instruction G.5) (d) Enter smaller of line 23(b) or 23(c) 24 If section 1252 property: (a) Soil, water. and land clearing expenses (b) Amount from fine 23(d), if none enter zero (c) Subtract- Floe 24(b) from fine 24(a), If line 24(b) is more than tine 24(a), eater zero (d) tine -24(d times applicable -percentage (see instruction G.5). (e) Subtract tine 24(b) from line 20 (f) Enter =-nailer of line 24(d) or 24(e) y 26 tf section 1254 property: (a) "&-n'ikr 1e development cosh deducted altar 12/31/75 (sea instruction G.6) (b) Enter smaller of line 20 or 25(a) • 26 tf section 1255 property: (a) APpncable percentage of payments excluded from income under section 126 (see instruction G.7) (h) Ernertrie smaller of line 20 or 26(a) . . . . , „tunmary of Part 111 Gains (Complete Property columns (A) through (D) through line.25(b) before going to line 27) 7 Total gars for ail praperties (add columns (A) through (D); fnse20) Adis Wows (A) (through (CO. fines 21(4 22(f). 2301). 240). 25(b) and 26(b). Enter henrand ort Part p. tine 8 . . . : t 3dstract tine 28 from Fine 27. Enter the portion from casualty and theft on Form 4684. Ens 21; enter the portion frons attnerthea casualty and theft on Form 4797, Part 1, line 4 _ _ _ _ — 4 77-3 . 7 4‘-.1 '. 28/, 24 /‘ /411-.‘15-9 1Y.--�ontptets tht3 Past Onlyy►►11 You Elect Out of the installment AtethodAnd Report a Note or rribac Obligation atLsss Than Full Face Value L1 Chick tarsi AG sect art orthe iredalimentinethotL Exeter the face amount of the rote or other obligation ► Enter the - -.. ,...ti of valuation of the note or other . i. Fern 5884 InternalDepartment Revenue the Treasury Jobs Credit (and WIN credit carryover) ► Attach to your tax return. 3447 OMB No. 1545.0219 983 77 Nama(s) as shown on return // /�iliEI4',9�r/ LE4isie n/ / Cpm"-.A//e. # risit/ s PART I.—Jotig Credit Identifying number 49 -11z -Y Sc 1 Enter the number of employees and total qualified wages paid or incurred during the tax year (up to $6,000 for each employee for each of the first two years) for services of employees who are certified as members of a targeted group. See instructions for special rules on qualified summer youth employees. Number of employees Total qualified wales First year J Do not include sum- 1 Second year l mer youth employees 1 Qualified summer youth employees (a) 6 (b) /P,vSo (c) (d) (e) (f) 2 Enter 50% of line 1(b) 3 Enter 25% of line 1(d) 4 Enter 85% of line 1(f) 5 Current year jobs credit—Add lines 2, 3, and 4. Enter here and include on Schedule C (Form lab), line 28b; Form 1120, line 13(b), page 1; or the corresponding line on other returns. (Members of a group of trades or businesses under common control, see Specific Instructions) N you ore a— Then enter total of current year jobs credit(s) from - 6 Flow-through jobs credits from other entities . . . a Shareholder . b Partner . , c Beneficiary. d Patron . . Schedule K-1 (Form 1120S), Zine 12 . . . 1 Schedule K-1 (Form 1065), line 14 . . 1l Schedule K-1 (Form 1041), line 10 . (see instructions for line 6d) 7 Total jobs credit for current year—Add lines 5 and 6 (S corporations, partnerships, estates, trusts, and cooperatives, see instructions for line 7.) 8 a Individuals—From Form 1040, enter tax from line 38 plus any additional tax from Form 4970. b Estates and trusts —From Form 1041, enter tax from line 26a, plus any section 644 tax on trusts c Corporations (1120 filers)—From Form 1120, Schedule J, enter tax from line 3 d Other organizations—Enter income tax before credits from return 9 a Individuals—From..Form 1040, enter credits from lines 41 through 44 b Estates and trusts—From Form 1041, enter credits from lines 27a and 27b c Corporations (1120 filers)—From Form 1120, Schedule J, enter credits from lines 4(a), 4(b), and 4(f) d Other organizations—Enter total of any foreign tax, possessions, and investment credits . 10 Income tax liability as adjusted (subtract line 9 from line 8) v, 2 3 4 5 6 7 8 9 10 PART II.—Allowed WIN Credit Carryover 11 WIN credit carryover from prior year L11 12 Allowed WIN credit for 1983—Enter smaller of line 10 or tine 11 12 PART III.—Allowed Jobs Credit 13 Line 10 Tess any WIN credit taken on line 12 14 Child care credit—Form 1040, line 45 (individuals only) 15 Income tax liability as adjusted—Subtract line 14 from l!r,E 13. . . . . 115 16 _Jobs credit limitation ...`;Multiply line 15 by 90% (line 15 x .90) 17 Allowed jobs credit for 1983 tax year—Enter smaller of line 7 or line 16. If line 7 does not contain an entry, enter zero. (Section 1381(a) cooperatives: see line 7 instructions) If you have an unused jobs credit from other years, complete lines 18-20. Otherwise, skip to line 21 18 Tax liability limit for unused jobs credits from other years—Subtract line 17 from line 16 19 Carryback and carryover of unused jobs credits from other years 20 Allowed unused jobs credits from other years—Enter smaller of line 18 or line 19 21 Allowed jobs and WIN credits from all sources—Add lines 12, 17, and 20. Enter here and on Form 1040, line 46; Schedule J (Form 1120), line 4(c), page 3: or the appropriate line on other returns . 13 14 16 17 18 19 20 21 Instructions (Section references are to the Internal Revenue Code, unless otherwise noted.) Paperwork Reduction Act Notice.—We ask for this information to carry out the Internal Revenue laws of the United States. We need it to ensure that taxpayers are complying with these laws and to allow us to figure and collect the right amount of tax. You are required to give us this information Purpose of Form.— Use the 1983 Form 5884 if you had jobs credit employees and take an income tax credit for wages you paid or ac- crued for them during the tax year. Mutual savings institutions, regulated investment companies, and real estate investment trusts can take a limited jobs credit. See section 52(e) and the related regulations. You can take or revoke the jobs credit any time within 3 years from the date your return was due for the year. You can take the credit either on your original return or on an amended return. To revoke your jobs credit after you take it, file an amended return. N1470] -1470001 124 V. Denortrnent of I Revenue ot 'Omp [Form 6252] on ot°Installment Sale Income Sei hsstruetloni'on hack. P Attach to year tax return. Uses separate form for each sale or other disposition of property on the Installment method. 3453-39 out, 1545.0228 983 Nonni) la shown an tin NOW s ! IdentlryhK numb', /-4,1gI!'i�J'�✓'F,! E✓��eN L Cent"a.v/dyrmaPP. /3- z y 2,..3-4-0 z� A Description of property ► FIGINu#iS.E 1 /,AFFeryd P14v#r 9' £. vi#o. (Gq'. Fme.v,s1, 8 Data acquired (mirah, day, and year) ► C Date sold (month, day, and year) D Was property sold to a related party after May 14, 1980? (See instruction C) 0 Yes ❑ No E If the answer to D is "Yes," was the property a marketable security? 0 Yes 0 No If you checked "Yes" to question E, complete Part ill. If you checked "No" to question E, complete Part Ill for the year of sale and for 2 years after the year of sale. PART 1.—Computatlon of Gross Profit and Contract Price (Complete this part for year of sale only.) 1 Selling price including mortgages and other indebtedness (Do not include interest whether stated or unstated) . 2 Mortgages and other indebtedness buyer assumes or takes property subject to (Do not include new mortgages from a bank or other source.) 3 Subtract line 2 from line 1 4 Cost or other basis of property sold 5 Depreciation allowed or allowable 6 Adjusted basis (subtract line 5 from line 4) 7 Commissions and other expenses of sale 8 Add line 6 and line 7' 2 3 4 -B- 1 aoo,000 • Qv, 000 /, 1-3`L cr96 5 6 7514 S80 -97c3/6 7 9 Subtract line 8 from line 1. If result is zero or less, do not complete rest of form 10 If question A is a principal residence, enter the sum of Form 2119, lines 12,15, and 19 11 Gross profit (subtract line 10 from line 9) 12 Subtract line 8 from line 2. If line 8 is more than line 2, enter zero 13 Contract price (add line 3 and line 12) PART II.—Computation of Taxable Part of Installment Sale (Complete this part for year of sale and any year you receive a payment.) 8 44743/4 9 /, .ss3, GP,. 10 11 /1 s2-3jj'1 12 13 ?,oCo,cc0 14 Gross profit ratio (divide line 11 by line 13) (for years after the year of sale, see instructions) 15 For year of sale only—enter amount from line 12 above; otherwise enter zero 16 Payments received during year (Do not include interest whether stated or unstated) 17 Add lines 15 and 16 18 Payments received in prior years (Do not include interest whether stated or unstated) 19 Taxable part of installment sale (multiply line 17 by line 14) 20 Part of line 19 that is ordinary income under recapture rules 21 Subtract line 20 from line 19. Enter on Schedule D or Form 4797 PART III.—Informatlon and Computation for Related Party Installment Sale (Do not complete this part if you received the final installment payment this tax year.) 18 14 76,/f 0 15 s- 16 /, ooC,000 17 l,woo ,000 19 74/,loo 20 %Sd, .570 21 3,2-2-0 F Name, address, and taxpayer identifying number of related party G Did the related party, during this tax year, resell or dispose of the property' ❑ Yes ❑ No H If the answer to question G is "Yes," complete lines 22 through 29 below unless one of the following conditions is met (check only the box that applies). 0 The first disposition was a sale or exchange of stock to the issuing corporation. 0 The second disposition was an involuntary conversion where the threat of conversion occurred after the first disposition. ❑ The second disposition occurred after the death of the original seller or purchaser. 0 It can be established to the satisfaction of the Internal Revenue Service that tax avoidance was not a principal purpose for either of the dispositions. If this box is checked, attach an explanation. (See instruction C.) 22 Selling price of property sold byrelated party 23 Enter contract price from line 13 for year of first sale 24 Enter the smaller of line 22 or line 23 25 Total payments received by the end of your 1983 tax year. Add lines 17 and 18 26 Subtract line 25 from line 24. If line 25 is more than line 24, enter rem 27 Multiply line 26 by line 14 for year of first sale 28 Part of line 27 that is ordinary income under recapture rules 29 Subtract line 28 from lira 27. Enter on Schedule D or Form 4797 22 23 24 25 26 27 28 29 For Paperwork Reduction Act Notke, see back of toren. [11470UU] Farr 6252 (1983) 3453.40 Instructions (Section Code � are to the Internal Revenue Paperwork Reduction Act Notice We ask for this information to cavy out the Internal Revenue laws otthe United States. We need it to ensure that taxpayers are complying with these laws and to allow us to figure and collect the right amount of tax. You are required to give us this information. A. Purpose of Form Use Form 6252 to report income from the following type of sale if you are not a dealer and are to receive any payment (including payments from sales reported on the installment method prior to 1980) in a tax year after the year of sale: • A sale of real property. • A casual sale of personal property, other than inventory. Use Form 6252 unless you elect not to report the sale on the installment method. If you want to elect out, see the instructions for your Schedule D or Form 4797. If you do not use the installment method, report the sale on your Schedule D or Form 4797. You need not use this form for year-end stock sales where payment is received in the following year. Instead, report the sale directly on your Schedule D for the year of payment.unless you elect out of the installment method by reporting it on Schedule D in the year of sale. If you sold property placed in service after 12/31/80 on the installment method and you had elected to treat part of the cost as an expense under section 179, the following applies. Taxpayers, other than partnerships, report the deduction you took under section 179 as ordinary income on Form 4797, Part Il, line 11 for the year of sale. Partnerships, report it on Schedule K-1 (Form 1065), line 18c. Do not report more than the gain from the sale of this property figured by reducing basis by the section 179 deduction. Dealers in real or personal property may use the installment method, but should not use this form. Instead they should report the sale directly on their tax return. B. What Parts to Complete [Form 6252] C. Installment Sala to. Related Party_ -A related party is your spouse, child, grandchild, parent, or a related corporation, partnership, estate, or trust. If one of the exceptions in Part 111 applies, check the appropriate box and do not complete lines 22 through 29. If you can establish that tax avoidance was not a principal purpose for either disposition, attach an explanation. The following are some examples that are not tax avoidance: • The second disposition is also an installment sale and the payment terms are equal to or longer than the first installment sale. • The property sold is not real property or real property improvements, and it is used by the related purchaser as inventory for sale in the ordinary course of conducting a trade or business. • The second disposition is a charitable contribution but not a bargain sale, and the property is capital -gain type property for which an election under section 170(bX1)(C)(iii) is not in effect. • Certain tax-free transfers, certain like - kind exchanges, and in some cases bankruptcy of the related buyer. D. Sale of Depreciable Property to Related Party If you sell depreciable property to either your spouse or an 80% -owned entity, installment sale rules do not apply, unless it is established to the satisfaction of the Internal Revenue Service that tax avoidance was not a principal purpose for the sale. For more information, including single sales of several assets, disposition of installment obligations, like -kind exchanges, and change in selling price, see Publication 537, Installment Sales, and the regulations under section 453. For the Year of Sale—Complete questions A through E, Part I, and Part II. For Years After the Year of Sale—Complete questions A through E and Part II, for any year in which you receive a • payment from an installment sale. Related Party Sales—lf you sold marketable securities to a related party defined in instruction C, complete the form for every year of the installment agreement, whether or not you received a payment. For a year after the year of sale, complete questions A through E and Part III if you did not receive a payment during the year. (If you received a sold protperty other also than marketlete Part I ablIf e securities securities to a related party, complete the form for the year of sale and for 2 years after the year of sale, regardless of whether you received any payments. If during this 2 -year period you did not receive a payment, complete questions A through E, and Part M. After this 2 -year period, see "For Years Atter the Year of Sale" above. 1470UU] Line -By -Line Instructions For purposes of this form, do not include interest or carrying charges received, or unstated interest. For information on unstated interest, see Publication 537. inc 1—Selling price.—Enter the money, face amount of the installment obligation, and the fair market value of other property, such as the buyer's note, that you received or will receive in exchange for the property sold. Include on line 1 any existing mortgage or other debt the buyer assumes or takes the property subject to. If there is no stated maximum selling price, such as in a contingent sale, attach a schedule showing the computation of gain, and enter the taxable part on line 19 (and 27 if Part III applies). See the regulations under section 453. Une 2—Mortgage and other Indebtedness.—Enter only mortgages (or other indebtedness) the buyer assumes from the seller or takes the property subject to. Do not include new mortgages the buyer gets from a bank, the seller, or other source. For information on wrap around mortgages, see regulations section 15A.453-1(bX3X10. tel. i?•ia Une 4—Cost or other basis of properly sold.—Enter the original cost and other expenses you incurred In buying the property. Add the cost of improvements, etc. and subtract any casualty losses previously allowed. For more information, see Publication 551, Basis of Assets. For purposes of this form, do not reduce line 4 or increase line 5 by any deduction taken in 1982 or later, under section 179. Une 5—Depreciation allowed or allowable.—Enter all depreciation or amortization you deducted or should have deducted from the date of purchase until the date of sale. Line 7—Commissions and other expenses of sale.—Enter sales commissions, advertising expenses, attorney and legal fees, etc., you incurred in selling the property. Une 14—Gross profit ratio.—Enter the gross profit ratio determined in the year of sale whether or not you filed Form 6252 for that year. Une 16—Payments received during the year.—Enter all money you received and the fair market value of any property you received in 1983. Include as payments any amount withheld to pay off a mortgage or other debt, such as brokers' and legal fees. Do not include the buyer's note, or any mortgage or other liability assumed"by the buyer. If you did not receive any payments in 1983, enter zero. If an amount was entered on line 24 in prior years, do not include it on this line. Include it, however, on line 18. Une 18—Payments received In prior years.—Enter all money and the fair market value of property you received before 1983 from the sale. Unes 20 and 28—Part orals of the gain from this sale may be subject to recapture as ordinary income. See Form 4797, Part 111 and the instructions to Part IV of Form 4797. Unes 21 and 29—For trade or business 4797, pror this amount on Fo line 3 if the property was elder more than one year. For years after the year of sale, if you do not otherwise have to use Form 4797, enter it directly on Schedule D as a long-term capital gain on the line identified as from Form 6252. If the property was held one year or less, enter it on Form 4797, line 12. For capital assets—Enter this amount on Schedule D, as short-term or long-term gain. Use the lines identified as from Form 6252. Une 22—If in 1983, the related party sold only part of the property from the original sale, enter the selling price of the part of the property resold. If part was sold in an earlier year and part was sold this year, enter the cumulative selling price. Fond 62ospertment dem Treasury Internal Revenue Swam 52 tee Ism [Form 6252] Compi tatfon of Installs est Sale Income ► See Instructional batik. ► Math to your tax return. Use a separate form for each sole or other disposition of property on the Installment method, 3453-39 1 or i+i i sarn 183 79 Nem.(s)asshown antis Mum uantNyhn numb« 71zeris/i.J ¢ 6p,imei,vieariews 660!)/3 - ys zoo y A Description of property ► ../ eoigexTy eke[!°: --e_4E'Ofese . b.9_ B Date acquired (month, day, and year) Pio J. . C Date sold (month, day, and year) up. t /-13 O Yes [ No El Yes No D Was property sold to a related party after May 14, 1980? (See instruction C) E If the answer to D is "Yes," was the property a marketable security? If you checked "Yes" to question E, complete Part ill. If you checked "Pio" to question E, complete Part III for the year of sale and for 2 years after the year of sale. PART I.—Computation of Gross Profit and Contract Price (Complete this part for year of sale only.) • /x ,t -/'D �r'�eete� - mot /irt•r bethcoFe26a.,oa�v1 1 Selling price including mo and o�er � e Hess ( n include mteros� w Crer stat or unstat f 2 Mortgages and other indebtedness buyer assumes or takes property subject to (Do not include new mortgages from a bank or other source.) 3 Subtract line 2 from line 1 4 Cost or other basis of property sold 5 Depreciation allowed or allowable 6 Adjusted basis (subtract line 5 from line 4) 7 Commissions and other expenses of sale . . 8 Add line 6 and line 7 9 Subtract line 8 from line 1. If result is zero or less, do not complete rest of form 10 If question A is a principal residence, enter the sum of Form 2119, lines 12,15, and 19 11 Gross profit (subtract line 10 from line 9) 12 Subtract line 8 from line 2. If line 8 is more than line 2, enter zero 13 Contract price (add line 3 and line 12) 2 19- .1/, Soo,000 3 Soo, coo 4 5 6 7, 3°2,3.96 7 7, 3a2-,30 9 /Y, /97, 494 10 11 • /y, /97,49* 12 13 PART II.—Computation of Taxable Part of Installment Sale Les .s FM{/ (Complete this part for year of sale and any year you receive a payment.) Of 1.0e «,iVP EXo#.N66 Al, Sao; co o 000,oco 7, Soo, 000 14 Gross profit ratio (divide line 11 by line 13) (for years after the year of sale, see instructions) 15 For year of sale only—enter amount from line 12 above; otherwise enter zero 16 Payments received during year (Do not include interest whether stated or unstated) 17 Add lines 15 and 16 18 Payments received in prior years (Do not include interest whether stated or unstated) 19 Taxable part of installment sale (multiply line 17 by line 14) 20 Part of line 19 that is ordinary income under recapture rules 21 Subtract line 20 from line 19. Enter on Schedule D or Form 4797 18 14 8/.i,3 70 15 16 /6, 600, o 00 17 19 20 /6, Goo, 000 /3,47,slo 9/Lob-Co 21 PART III.—Information and Computation for Related Party Installment Sale (Do not complete this part if you received the final installment payment this tax year.) / 2 $54. 621f F Name, address, and taxpayer identifying number of related party G Did the related party, during this tax year, resell or dispose of the property? 0 Yes ❑ No H If the answer to question is "Yes," complete lines 22 through 29 below unless one of the following conditions is met (check only the box that applies). ❑ The first disposition was a sale or exchange of stock to the issuing corporation. 0 The second disposition was an involuntary conversion where the threat of conversion occurred after the first disposition. ❑ The second disposition occurred after the death of the original seller or purchaser. ❑ It can be established to the satisfaction of the Internal Revenue Service that tax avoidance was not a principal purpose for either of the dispositions. If this box is checked, attach an explanation. (See instruction C.) 22 Selling price of property sold by related party 23 Enter contract price from line 13 for year of first sale 24 Enter the smaller of line 22 or line 23 25 Total payments received by the end of your 1983 tax year. Add lines 17 and 18 26 Subtract line 25 from line 24. If line 25 is more than line 24, enter zero 27 Multiply line 26 by line 14 for year of first sale 28 Part of line 27 that is ordinary income under recapture rules 29 Subtract line 28 from line 27. Enter on Schedule D or Form 4797 22 23 24 25 26 27 28• 29 For Paperwork Reduction Act Notice, see bads of form. [t 1470UU] Fane 6252 (19113) ORS_. -: (Section references are to the Internal Revenue Code) Paperwork Reduction Act Notice We ask for this information to carry out the Internal Revenue laws of the United States. We need it to ensure that taxpayersare complying with these laws and to allow us to figure and collect the right amount of tax. You are required to give us this information. A. Purpose of Form Use Form 6252 to report income from the following type of sale if you are not a dealer and are to receive any payment (including payments from sales reported on the installment method prior to 1980) in a tax year after the year of sale: • A sale of real property. • A casual sale of personal property, other than inventory. Use Form 6252 unless you elect not to report the sale on the installment method. If you want to elect out, see the instructions for your Schedule D or Form 4797. If you do not use the installment method, report the sale on your Schedule D or Form 4797. You need not use this form for yearend stock sales where payment is received in the following year. Instead, report the sale directly on your Schedule D for the year of payment unless you elect out of the installment method by reporting it on Schedule D in the year of sale. If you sold property placed in service after 12/31/80 on the installment method and you had elected to treat part of the cost as an expense under section 179, the following applies. Taxpayers, other than partnerships, report the deduction you took under section 179 as ordinary income on Form 4797, Part II, line 11 for the year of sale. Partnerships, report it on Schedule K-1 (Form 1065), line 18c. Do not report more than the gain from the sale of this property figured by reducing basis by the section 179 deduction. Dealers in real or personal property may use the installment method, but should not use this form. Instead they should report the sale directly on their tax return. B. What Parts to Complete [Form 6252] C..Instautne ntSales to Related Party -A related party is your spouse, child, grandchild,, parent, or a related corporation, partnership, estate, or trust. If one of the exceptions in Part III applies, check the appropriate box and do not complete lines 22 through 29. If you can establish that tax avoidance was not a principal purpose for either disposition, attach an explanation. The following are some examples that are not tax avoidance: • The second disposition is also an installment sale and the payment terms are equal to or longer than the first installment sale. • The property sold is not real property or real property improvements, and it is used by the related purchaser as inventory for sale in the ordinary course of conducting a trade or business. • The second disposition is a charitable contribution but not a bargain sale, and the property is capital -gain type property for which an election under section 170(bxl)(Cxiii) is not in effect. • Certain tax-free transfers, certain like - kind exchanges, and in some cases bankruptcy of the related buyer. D. Sale of Depreciable Property to Related Party If you sell depreciable property to either your spouse or an 80% -owned entity, installment sale rules do not apply, unless it is established to the satisfaction of the Internal Revenue Service that tax avoidance was not a principal purpose for the sale. For more information, including single sales of several assets, disposition of installment obligations, like -kind exchanges, and change in selling price, see Publication 537, Installment Sales, and the regulations under section 453. For the Year of Sale—Complete questions A through E, Part I, and Part II. For Years After the Year of Sale—Complete questions A through E and Part II, for any year in which you receive a • payment from an installment sale. Related Party Sales—If you sold marketable securities to a related party defined in instruction C, complete the form for every year of the installment agreement, whether or not you received a payment. For a year after the year of sale, complete questions A through E and Part III if you did not receive a payment during the year. (If you received a payment, also complete Part II.) If you sold property other than marketable securities to a related party, complete the form for the year of sale and for 2 years after the year of sale, regardless of whether you received any payments. If during this 2 -year period you did not receive a payment, complete questions A througi E, and Part III. After this 2 -year period, see "For Years After the Year of Sale" above. [A 1470UU] Line -By -Line Instructions For purposes of this form, do not include interest or carrying charges received, or unstated interest. For information on unstated interest, see Publication 537. Une 1—Selling price.—Enter the money, face amount of the installment obligation, and the fair market value of other property, such as the buyer's note, that you received or will receive in exchange for the property sold. Include on line 1 any existing mortgage or other debt the buyer assumes or takes the property subject to. If there is no stated maximum selling price, such as in a contingent sale, attach a schedule showing the computation of gain, and enter the taxable part on line 19 (and 27 if Part III applies). See the regulations under section 453. Une 2—Mortgage and other Indebtedness.—Enter only mortgages (or other indebtedness) the buyer assumes from the seller or takes the property subject to. Do not include new mortgages the buyer gets from a bank, the seller, or other source. For information on wrap around mortgages, see nulations section 15A.453-1(bx3). 1911; 12.11 Une 4—Cost or other beef prop_ rty sold.—Enter the original cost and other expenses you incurred in biaying the property. Add the cost of improvements, etc. and subtract any casualty losses previously allowed. For more information, see Publication 551, Basis of Assets. For purposes of this form, do not reduce line 4 or increase line 5 by any deduction taken in 1982 or later, under section 179. Line 5—Depreciation allowed or allowable.—Enter all depreciation or amortization you deducted or should have deducted from the date of purchase until the date of sale. Une 7—Commissions and other expenses of sale.—Enter sales commissions, advertising expenses, attorney and legal fees, etc., you incurred in selling the property. Une 14—Gross profit ratio.—Enter the gross profit ratio determined in the year of sale whether or not you filed Form 6252 for that year. Une 16—Payments received during the year.—Enter all money you received and the fair market value of any property you received in 1983. Include as payments any amount withteld to pay off a mortgage or other debt, such as brokers' and legal fees. Do not include the buyer's note, or any mortgage or other liability assumed -by the buyer. If you did not receive any payments in 1983, enter zero. If an amount was entered on line 24 in prior years, do not include it on this line. Include it, however, on line 18. Une 18—Payments received In prior years.—Enter all money and the fair market value of property you received before 1983 from the sale. Unes 20 and 28—Part or all of the gain from this sale may be subject to recapture as ordinary income. See Form 4797, Part III and the instructions to Part IV of Form 4797. Unes 21 and 29—For trade or business property—Enter this amount on Form 4797, line 3 if the property was held more than, one year. For years after the year of sale, if you do not otherwise have to use Form 4797, enter it directly on Schedule D as a long-term capital gain on the line identified as from Form 6252. If the property was held one year or less, enter it on Form 4797, line 12. For capital assets—Enter this amount on Schedule 0, as short-term or long-term gain. Use the lines identified as from Form 6252. Une 22-1f in 1983, the related party sold only part of the property from the original sale, enter the selling price of the part of the property resold. If part was sold in an earlier year and part was sold this year, enter the cumulative selling price. • II 1471K3 6765 Department of the Treasury Internal Revenue Service IN 1243 [Form 6765] Credit for Increasing Research Activities (or for claiming the orphan drug credit) ► Attach to your tax return 3463-51 OMB No 1545-0619 11683 8i Name(s) as shown on return :0 i 1E i1.• a : j . e ti k _ • e : • • ; _ OL Identlfying number PART I.—Research Credit (a) CURRENT TAX YEAR (b) SASE PERIOD 1 Wages for qualified services (do not include wages used in figuring the jobs credit) 2 Cost of supplies used in conducting qualified research 3 Rental or lease costs of personal property used in conducting qualified research 4 65% of contract expenses for qualified research (but see line 5 below) 5 Corporations -65% of amounts paid to qualified organizations for basic research 6 Total qualified research expenses (add lines 1 through 5 in columns (a) and (b)) . 912,514 429.206 2 420,447 3 29,026 42.264 5,137 4 127,580 21,797 5 6 ,489,567 498,404 7 Subtract line 6 column (b) from line 6 column (a) 8 Limitation—Enter 50% of line 6 column (a) 9 Enter the smaller of line 7 or line 8 10 Tentative credit—Enter 25% of line 9 11 Carryback and carryover of unused credit(s) 12 Add lines 10 and 11 13 Flow-through research credit(s) from a partnership, S corporation, estate or trust (including any related carryback or carryover of unused research credit(s)) 14 Total allowable research credit—Add lines 12 and 13 991,163 8 744,784 9 744,784 10 186,196 11 12 186,196 13 14 186,196 PART IL—Tax Liability Limitation 15 a Individuals—From Form 1040, enter tax from line 38, plus any additional tax from Form 4970. . b Estates and trusts—From Form 1041, enter tax from line 26a, plus any section 644 tax on trusts . c Corporations (1120 filers)—From Form 1120, Schedule J, enter tax from line 3 d Other organizations—Enter tax before credits from return 16 a Individuals—From Form 1040, enter credits from lines 41 through 47, plus any nonconventional source fuel credit and credit for alcohol used as a fuel b Estates and trusts—From Form 1041, enter credits from lines 27a through 27c, 28a, and 28b . c Corporations (1120 filers)—From Form 1120, Schedule J, enter credits from lines 4(a) -(c), and 4(f) -(h) d Other organizations—See instructions for line 16d 17 Income tax liability as adjusted (subtract line 16 from line 15) 15 16 17 PART III.—Allowed Research Credit 18 Corporations (1120 filers)—Enter here and on the appropriate line of your return the smaller of line 14 or line 17 19 Individuals, estates and trusts—Enter here and on the appropriate line of your return the smaller of line 14 or the amount from the formula in the instructions for line 19 (but do not enter more than line 17) . . 18 19 PART IV.—Allowed Orphan Drug Credit ysdi 20 Qualified clinical testing expenses (do not include any amounts claimed as current year research expenses in 6(a) above) '21 Enter 50% of line 20 (See instructions) 22 Flow-through orphan drug credit(s) from a partnership, S corporation, estate or trust 23 Total—Add lines 21 and 22 24 Income tax liability as adjusted (line 17 minus any research credit taken on line 18 or 19) • 25 Orphan drug credit—Enter here and on the appropriate line of your return the smaller of line 23 or line 24 20 21 22 23 24 25 Instructions (Section references are to the Internal Revenue Code, unless otherwise noted.) Paperwork Reduction Act Notice.—We ask for this information to carry out the Internal Revenue laws of the United States. We need it to ensure that taxpayers are complying with these laws and so that we can figure and collect the correct amount of tax. You are required to give us this information. Purpose of Form.—Use Form 6765 to figure and claim the credit for increasing the research activities of a trade or business and to claim the orphan drug credit. Complete Parts I, II, and III to figure the research credit. Complete Parts II and IV to figure the orphan drug credit. You may clam an income tax credit if you increase the research activities of a trade or business. The credit applies only to research expenditures incurred in carrying on a trade or business you are already engaged in. It does not apply to expenditures incurred before beginning a. trade or business. Generally, the research credit is 25% of the increase in qualified research expenses paid or incurred in the [11471K] ktagzicke4 TeLexttsicu.1 ec.mtouu tcr..-noms CIRP T -- Ye. iz.lm 12.1 E. I. 13- z2S12.5nz_ I I 1 •1 1 1 ; 1 ! 1 I ; •11 'I'll I QrruEe. Ica <Lass) : I1 f titirt AGE ME nil" FEES ,18.b191 Er i Rxserm.eses‘kiP uzS . 6.549:)I -5i4 - 1..kv3=1__LAi..18zus I taccime, 1 U.4 I I • 1 PNGE <ct ls -171 >I 1 1 1 1 1 1 1 1 1 j 1 ! I 1 1 1 1 1 11. • . I I 1 •1 1 1 ; 1 ! 1 I ; •11 'I'll I 9...1 CAM TELE," tStta 4:111:1 0.111AMUAYtCATIOtJS TAXABLE YEAR ENDED '(tr lZI31l83 EMPLOYER NO , 13 -25122 LIZ OTHER DEDUCTIONS SCHEDULE Z,Z67 248 AUTO EXPENSE Z`EIZ -754 GENERAL PROPERT Y. 168 DUES AND SUBSCRIPTIONS - 4i5 1221, 4,15-1 PAYROLL l,E65 92.6 FREIGHT, TRUCK AND DELIVERY AND EXCISE SALES CORPORATION FRANCHISE FNSURANCE 3.s4SSZ.S 4.,406 LEGAL AND ACCOUNTING 1,316.313 LICENSES AND MISCELLANEOUS MISCELLANEOUS 132 4E3 OPERATING SUPPLIES - 7.37q 120 POSTAGE AND OFFICE SUPPLIES 1,124 5-.1 SELLING EXPENSES • a143 -34 • • TELEPHONE AND TELEGRAPH 2,5=41^G7_,Z SUBTOTAL 1 ZOI 302 TRAVEL AND ENTERTAINMENT 4.x42 74Z STATE INCOME UTILITIES ,Z,K-1 190 • Csnt.irztaCT SE2v k eE.S 7.633 105 EsDR_ k- cam/ E -.t -ice t . CAP t TDL-.I ZEM C' 19 51a RBA % FR Nkc.6k I E E ,FEES _ . - 050-,165 676 . • aa� C*.50 ,, FRA.t.1c•I---SE E�CPE ES 207 s 1 TOTAL TAXES • M\Cf2DVd AVE e<PENi.,._,E • • :- 163 71I CONTRIBUTIONS - r CHEST OR UNITED FUND cC;P_ M lv\ i Ns.s Co . QTS . ZB,S? 5 E:F16 - COMMUNITY EL1 tPi_JYEE -RT•LRLt in Nis k IRE Lc Th.Tt cl NI IRIS 1S2. • CoPYR 15 \T FEES ZOa$ STV <=xPENI L -E to:134 CONTRIBUTIONS CARRY-OVER SUBTOTAL UNAtLOWABLE EXCESS ( ) r - . TOTAL OTHER DEDUCTIONS 66.413 523 TOTAL CONTRIBUTIONS SCHEDULE • 02stpN TELEv15COtv b & 1Muu1tCATlcN5 YE l2 l\S3 E. NE 13-2?77 c•c 7 . :.I I 1 ; XPtANtiT 1CN OF 1TEM5 01,1 a. M - i .. I I (i I I I l ` 1 1 INICalytE SaaSECT To 'TAX, MOT RQ_DRDED ot.l K5! I ! I ?Neff NIERS.-its Loc.:, ,_.-.) ��1•T1SFohl5 OF ASsETa, T X C-�Atni. I N EXCESS cF I COK GALMI 1 i i Itt,gZZl caO I • { 1 • 5..PEN.. 5 RFr DED W eimcKS. 1\10,7 TJEDkic_TED \N RETURN '• {C\422 \zz . R E5ER..uE FCff2 STOR.M DAMAGE { � 1mi� i . ACCRUED rR mcN‘St %-: ! ; 13 IC= CaNV 02.: TER Lc:1cP' i kCCRLLED RELACAT t c M EXPENSES { t 1 OM EC.DU\7`( Lo I 11NCON5z)LIDQTED ZiaES\p1 !az\E I i \Z3I,bg i . 5-C\I RESECZv E • I i 1, \43 F.,,, -T. i I \A1NlOQ 1NIT ER_ET I I -24+119 t. tint C.DSuS , ev1-C-N7: T^. _1,.,k_ N ', _.. l 91 ozJ . . TQT:,,L ' bZ19 -Sal { 1 1 SAICr.t.k . R=rngDED CYN1 F --MK j , MO- 50, CT T'_ 7-kx ' 1 I 1 e%1!.)S-v R.171\1': --N1') _ tDE. 2EASE -no ` =`=2-a!':^, %r'_^^l]N1T) 1 1 \,p40{b5 . DESaacTIoNrz C1--AR1);-r) PGA.r E 'QCT' I = Ont AGE r_ I`-?_ Zt.1TtZE`_T CL�.P1TNi EG01< °I86{`l9s E J rTuQt�.t Q`JT L CACDITAL.IZC1� ON -EU.; K.:. I 1 ( -..,rrj 7211.Nc_tAk 5E. E)CPENISE5 r I 4I17 ,Nc:;,sE 1_s=:� 11.zSzk,S ?Neff NIERS.-its Loc.:, ,_.-.) '4, 1 .( zi ' • { 1 • {C\422 \zz i 1 I 1 i I ! I i I 1 I . I 1 i I . . _ 11 { 1 • • klekEEt_CANI TELENLISlOM `4 MAlut4 tCATIQMS Taxable Year Ended Employer No. 13-ZAZZ Z - IZt31 (83 Schedule Balance Sheet Supporting Schedule Beginning of Year End of Year 5. Other Current Assets PREPAID E)CPEMS.E. 2�92.3371 53`1,549 PREPAID bEFERZEO T• - CURRENT SS, 53 96,241 SI b[ZT-TrZM I KIN ESTM Er\1T5 , 4461396 • 2,ctZb,107 I. 132,186 8. Other Investments , " INw a -Mt xTS 1 N I>t\•Z Also 4eq_C_S lb i1E1 DI ARtE5 25Z,E103,0Z3 254687, 231 OTi-1E2 1%4\1 EST M F_NTS — 39 24054 STV ASSETS - ' <6, lck-T .710 ?s7,663,023 /48,613,4aq , 13. Other Assets 1 . CER 1T 7, lin MI ELIAma rf) 6,1(\7,6,97 1,76 7. --L- - I L GI ,1c1.,E,97 1,713, ;,-75 17. Other Current Liabilities ACCRUED EKPEN1SE I ,F5F1 E P -1(D7 _,S„ Z 17 5,. EE2 • A.iu 4\ NCE 1?A`; MGN1TS * DEi2 S \T S 9 , �, 549 8. 143 314 11\ITERCOMPANN' 24443,945 •l , 165,224 FE Q.AL At.n 7: -.3I -ATE INCLINE TAKES TAY MILE CP1zEPAI 0) 1 C i&.,901 < ,7rn M\..E\1ANECYuS 1_I AS( L\T1E.S 5,03i ,2q6 34,8g3,551 74,4\8,85.1 20. Other Liabilities • DEFERRED INIMME TAXES ,CAZ,a 4-7,4 3,051 34,04Z,S5 47413, 1 23. Retained Earnings -Appropriated Schedule Areeie S✓?LEr/s/o t/ C•ossor 'We -An S LoiQP. �EPLEci/47/o�✓ DEPRECIATION - TAXABLE YEAR ENDED /SiG,Cs EMPLOYER NO./3-4-9=2-Soy / 9 ra COST OR OTHER BASIS DESCRIPTION OF PROPERTY FBA a y e. A,eo,"E.e r•1 - AN/C L ES c D E -.4v s r/A/ BEGINNING I ADDITIONS RETIREMENTS ENDING / y 7 7 SIG 1 .2o - F -AGe. - 4v5r/l/ / 096 9s-9 3S-9 y*7 -'A O � 2cy 11.5-- - 4C '5 K L -HC -4/v57/// /- tiv37/n/ - Zoeok1700 6c/9/3 D o 397 0 7/ ?0 N 0 �EDvee BAS'S dy 3To SG,/33'-/5:cs7r 75c L <Sy 9i/o) TOTALS DATE ACQUIRED LIFE USED METHOD ACCUMULATED DEPRECIATION BEGINNING 1ST YR. 20% DTHER CURRENT ••RETIREMENTS ENDING A / 3 fJ�,PS 930 5,./6 69z< ) 77 5 ¥' B 1/ 301 " yo S• ( x/67 C /S 92'S 2-c 2C? D E /9(2- 3P/ 07. y 479 /S6 9G0 /sD F /G 0 6ZS /S6 5-14 .257 /'9 G 89 271- /36 GcS y26 1177 H K /9A3 29;- 7 f A92 - G 7� /yS 96s o»r Gc 9's 9sS L 99 z68 `471378 M ys0 a ysc N TOTALS /SSP 9oz- 3S[ Y 873 AY D-26 SCHEDULE 1 /t rsee,€4d TELE Pis/ o,i 1 CWPMv•vic.,T/1.✓.3 Co,e p. ,4 €S 1E/LEGirioAI DEPRECIATION TAXABLE YEAR ENDED EMPLOYER NO. X.9-1-9 I' 3--513- "„9 , DESCRIPTION OF PROPERTY COST OR OTHER BASIS BEGINNING ADDITIONS RETIREMENTS ENDING A .2/s r . ,iysreni - /!yT/i Ht 02-9 370 B ( -.4CG /0 6/9 9o9 gay 88S C -Avs7/N D J —47--C., 4// /7 o Pig 15r , 6s3 / -4GL /7)97338 /6 E F -/4e/5 Ths, G - 4%C�i �S7 fob 7z H• -.16e.D/9zzoy3L -Nusr/n/ , G /o s8 Ur J ) -1;71/.57/Al7-7. 6 -Si -9 y 1H K !-Log20NADA / 342- zco L M N i 0 (2..yec,336+ 94,,a/1.-1•5-1,9'.13)'5 /c 'VDT. 7c Z j/S 're/2 /7d.""D6 ?tie -2-9/a TOTALS 7-7-- 378 / 2-3 DATE ACQUIRED LIFE USED METHOD ACCUMULATED DEPRECIATION BEGINNING 1ST YR. 20% DTHER CURRENT RETIREMENTS ENDING A /9 / .,jam /%C.() /s SSc t67 8 82-b /GP ,'¢ 37% o3S B 23,/71 260 7-.-30 /79 s 4/sly '/35'i C 37-9 9 7 /9, c76 5z/ 063 D /9fL f / (s/7.5 5'4/9 9c5"7 , 17/ /S7-33 czo \i 2 G pi 5-24 2 3 93 7 di/6, G 62- / 937 rE/ F 1s 2- X97 7 7oS 8Ly G 2-32- SL/ G /9f3 r / -- 8 2-0' 93-9y zck 95'9 H () I --• i 73? ,y'f I 738 As', 1 — / 6o p87 /S0 8 8 7 J — 3 3 87- 93I 3 382- 738 K 1 L v — toy 3 3o 2c51 330 L I M N 0 ITOTALS 7� 6oy $2i 1/463'! /31.- 7;- 2.40 c/3 AY D-26 SCHEDULE Area/e.40, 77A6V/J/oN 64w. EMPLOYER NO./3-2.9issms 7DEPRECIATION - TAXABLE YEAR ENDED /9103 DESCRIPTION OF PROPERTY COST OR OTHER BASIS BEGINNING ADDITIONS RETIREMENTS ENDING A ,3r//AAD/ /YDS ¢J/wrentsasPrE.VTS - 47L . .i12- 7iF B - //Ce-_ • Sl9 9� - /97' C_- € �'G3 y7S , F -# '5T/o/ • /7/_1 G H -AtTGi / SG 7 982- .-16C. '-J-1, _ 112-31/C.5- 2-3'l4S -A/5ritl li3 759 K a ]i-602aNAn9 - /8 Zco L M N • TOTALS 1 r 299 74,z, DATE ACQUIRED LIFE USED METHOD ACCUMULATED DEPRECIATION _ BEGINNING 1ST YR. 20% DTHER CURRENT RETIREMENTS ENDING A /48/ /S 4C,CS G7+1 332,' 363- 571 /037 «0-'f' B / •r 1 ` 3( 63l if6 011 /17-6/y C D /5fv it GS 696 Q99 g'7' /Cc 67? E t \ pi 3.5-3 ?/ 1.6/ 445-6i'74 F %N SW /f /53 33 VS/ G H /9r3 9t 7H7.-- 9e? 7`/1- 1 zys77 ;z�s77 J ) %f3 L'f0 / 2Y O K y 9 /0 9/0 L M N 0 f TOTALS ?o5 // a 12( / /A / 53o 2-ZE AYD-26 SCHEDULE �L /4,74e, dip/ 7cE '/5/a 0/ 1 �Birrn-rvNicslf/e NS Ce,PP• DEPRECIATION - TAXABLE YEAR ENDED /IP3 EMPLOYER NO. /3-s9 ss.S'o 2 - DESCRIPTION OP PROPERTY COST OR OTHER BASIS BEGINNING ADDITIONS RETIREMENTS ENDING A 00 , //D a spa, .1/z z3o .,g,P6, B Cilf, 00, 2-'5/ E yiy 3G o / 9 7 o J D 4/ , 41/0 a7 // , 9ff3 X18', 412-0 7/ 0 7S/ E F q, 413 o - 6s7 /ss G 5/f• yai0_ • a.277 933 H H f. `)ASO6 9 9/ 792- 1 J K L M N 0 . TOTALS 7414- 7 cs1,/ DATE ACQUIRED LIFE USED METHOD ACCUMULATED DEPRECIATION BEGINNING 1ST YR. 20% DTHER CURRENT - RETIREMENTS ENDING A VA e. r,j,. AP? / HHS +2-4# 33 3 c GO / 77, 4If" B y:So c36, 717.- /c 7 5572- iy3 C / 410 7 9os ,252. 55S ) '16 c 9c3 D / 596 33G 3./3 e^cf( /9,./0 /+4y E 113 9.0 562- • 9 4f,/? gr'/f S3 YoS Yo 7 F \ +/63 77-e 90 4/6Y .55-171 /9c G / % /675S P91 IL 7- 803 ) 9/8 7o / H L 4d S16 31,/f /'/s6 385 59 fy73,3 I . J • . K L M TOTALS S9 7c 117-3'7 /Z 9/ 0 `/Lg 7Z 6 / z 70.r AY D-26 SCHEDULE V//I AsorE,C,044./ TLEY/J/cN 16ss gvpid47/e vS 6499. EMPLOYER N0. /3"2-9A1-67;2— COST 3'2-9A2 y •EL/9T/OA/ DEPRECIATION _ TAXABLE YEAR ENDED /9A3 DESCRIPTION OF PROPERTY COST OR OTHER BASIS BEGINNING ADDITIONS RET REMENTS ENDING A 3,-.96-S, 1E /07,4eo/iEirl6N7s -Air', _ •/ 666 16‘ B .BLDG S. - /ice/ '• 3Y7 2-39 C ,ELD6S. - /h'sr//9 /96 463 D 4A. D& 5. - 70#N5Tow/ / 43? E /4-///6 .4 ES -476, _ 91716/ F 1/EH/CLE 5 - "74.457/i/ :3,13 82„/ G /EH %.7- HNSTGA/// - /9 29/ H 22,5r. Sy3rc'm -Arc-; 3o 'in,/h9 I 27/i,-. STSTEM - A16Pi • 57P 336 i piS7. S'S7EM- /4157 /A/ /0 14'0 673 K 1/S7• „C1STEM- JolJN7ok/*• 5P1r 736 L .ENSEH/BLD /'r e, - a�.1rc,7 • /6.6-9 f/5 N '- ✓ - //us7/n/_ /47- 52.2 0 - ✓c ,'S70u/ , • APS- TOTALS 1 "C P/c) 3,ro• DATE ACQUIRED LIFE USED METHOD ACCUMULATED DEPRECIATION BEGINNING 1ST YR. 20% ETHER CURRENT • RETIREMENTS ENDING A 741.. {/01i2. /44? -,yY 61"J 93 392.- 536 cZb B ( / i 99 556" �1 y7`i 3.4 C2-9 C1 7/ o 76 5-46.7P 4.1- D ; 1 8 i 4,7 E 1 1 i 4'17 261 — tin 2-6/ F \ Z/7 6 77 6'/6 ,Idr8 32-3 G % 7247 7247 H % .v)2.-Vo�3/ 90t //8 ,z/ rye 5Y9 I. / I /c / .2-3-2 - 294./ /7/ 395 yic 3 57 it 413 ss- J. 2.- ' 76].9 664 K f 91 16 v 9i /6;-- L• i S7H /6o /75' vet. 7N9 4y6 M1 3 gy7 /S 656 /9,9,3 N :r r �' J— 33- icS / 294• 34,1 os1 0 /2-1 AZ / TOTALS 36 P32- Sys /0 97 Silo 38' 5/o /2-S AY D•26 SCHEDULE 2-84 CT -3 ArtICle e•A Tax Law NV State Tax Department NtW 1UK1t rurlll 1,i J NEW YORK STATE Corporation Franchise Tax Report taxable period from Attach Mailing Label Here — If label is wrong, please correct it. (Please type,or print) For the calendar year '1983 or • 1983 to Employer Identification number i Ile number 19 Ib,4UE '1983 Official use only AMERILAN TELEVISION ANDyCOMMUNICATIONSC • 16D INVERNESS DR M ENGLEWOOD CO 80112 Principal business activltY C/rr Si6n%fiL SLefieg . State or country of incorporation / PIM/VA/et Date • Telephone number (303) 799 /3-00 Date began business In New Vork State f//G77 Business group code number from federal return y.rys Date received Federal return was flied on 0 1120 • ❑ 1120-S • I1Consolldated. basis Have you been audited by the Internal Revenue Servicein the past 5 years 1 s No 0 Yes If yes, list years Important: To avoid rejection of form, complete all items marked • Use zeros where they apply. �imiffanu Remit amount shown at line 13, Schedule A. MAKE CHECK PAYABLE TO NEW YORK STATE_ CORPORATION TAX $ • ❑ Other • Audit use only Total assets 493, 39/, 67.9. • • SCHEDULE A — Computation of tax and payments of Estimat•dTax (p/ease read instructions) a <I8,g7y} X .10 4,4'0$ X .00178 • 1. Allocated net income (enter from Schedule 8, line 39) 2. Allocated capital (enter from Schedule E, line 55) 2a. New small business 0 first year 0 second year • 3. Alternative base (see instructions) 4. Minimum 5. Allocated subsidiary capital (enter from Schedule C, line 40g) iia. Tax: largest of 1,2,3 or 4 plus 5 (see instructions) 6b. Tax credits (see instructions). Attach forms and ptteck those attached: 0 CT -42• ❑ CT -43• 0 CT -45• CT -46• ❑ CT46.1 • ❑ CT -3C• 6c. Net tax If a r•rundabN unused Investment tax "adlt. (Form CT4ea) Is Ualmsd, enter minimum:•tax at Ilne ac. Read Instructions.. 7. First installment of estimated tax for period following that covered by this report. a. Enter line 3 amount from Form CT -5 if that application for -extension was filed. b. Enter 25% of line 6c (above) if Form CT•5, application for extension, was not filed and line 6c is over 51,000 (see instructions) 8. Total (add line 6c and line 7a or 7b) 9. Prepayments (from page 4, Composition of Prepayments, Ane E) 10. Balance (subtract line 9 from line 8) " 11. Interest: Compute on lesser of line 6c or line 10 (see Instructions) 12. Additional charge: Compute on lesser of line 8c or line 10 (see Instructions) 13. BALANCE DUE (add lines 10;11 and 12) PAY 14a. Overpayment (subtract line 8 from line 9) 14b. Overpayment to be credited to -next period 14c. Overpayment to be refunded 14d. Refund of investment tax credit (from Form.CT•46.1, line 16) 14e. Total refund (add lines 14c and 14d) 15. Issuer's allocation percentage (enter percentage from Schedule E, lino 66, or combined . filers use • . - e from CT -3A Schedule H line 16 A copy of all pages of your federal return must accompany this report. • 2 S -03— g 1./ • • X .10 • 5250.00 3 • 4 39,3/9,1194 , X :0009 • 5 35,388 6a /3 so 9 • I hereby certify that this rs t 6b e259 • 6c 7,4'0 7a or 7b 8 ,.50 9' /3,3-o9 • 10 11 12 13 14a 114h t14c /m, 9s/ / 2, 9.5744. • • • • • • 4d 4e 115 42 9S* JP, r 8 % CERTIFICATION BY AN ELECTED OFFICER OF THE CORPORATION y accompanying rider, is to the best of my knowledge and belief a true, correct and complete report. Siaffinure of officer CONT2(ILLL2. Official title CiwwN ire ni :wd:.r:And nr minis fif firm nra urine this rano?? , Preparer's address. - I CT -3 (1983) Taxpayer's name E.E/lf fx 7 A v/S/o/✓ %OP COnUN/i//777Ns Location of corporation books and records /60 /dfE,�%YESS 72e/ft ZE5T '4/6- cG woo 7], Co . SCHEDULE D — Investment Capital and Allocation. If your investment income and capital ratios are LESS than 25% you may leave this Schedule D blank and allocate business and investment income and capital by the business allocation percentage. For professional service corporations formed under Article 15 of the Business Corporation Law. the investment allocation is 100%. Such corporations need not complete this schedule. Investment income ratio: Schedule B, line 33j divided by line 31 or 32 Page 3 Emplo_ dentlflcation number /3— 2-9 3 -YS Y % • Investment capital ratio: Schedule E, line 51 divided by line 50 d a Description of Investment Current (list each stock and security; Liabilities use rider if necessary) b c No. of Shares Average or Amount of Fair Market Securities Value • e Net Average Fair Market Value Issuer's Allocation 9 Value Allocated to New York State (Col. e x Col. f) 41. Total (including items on rider) 42. Investment allocation percentage (divide line 41g by line 41e) 43. Obligations of the U.S. and its instrumentalities, and of N.Y., its political subdivisions and instrumentalities 44. Cash (optional) 45. Investment capital (add lines 41e, 43e and 44e) INUMEIPP SCHEDULE E — Computation and Allocation of Capital a Beginning of Year b End of Year Enter amounts in columns a and b 46. Total assets from balance sheet of federal return 47. Current liabilities SE'S //tG,3,2- (, 2 7/, 575/9 48. Total Capital (subtract line 47 from line 46) 49. SUBSIDIARY CAPITAL (from Schedule C, line 40e) 50 Business and investment capital (subtract line 49 from line 48) 51. INVESTMENT CAPITAL (from Schedule D, line 45) 52. BUSINESS CAPITAL (subtract line 51 from line 50) 53. Allocated INVESTMENT CAPITAL (multiply line 51 by line 42, Schedule D) 54. Allocated BUSINESS CAPITAL (multiply line 52 by line 63, Schedule G) 55. Total Allocated BUSINESS and INVESTMENT CAPITAL (add lines 53 and 54; enter on line 2, Schedule A) 56. Issuer's allocation percentage (add line 55, Schedule E, and line 40g, Schedule C; divide by line 48, Schedule E). Enter also on line 15, Schedule A, page 1 Taxpayers filing a combined report must compute the combined issuer's allocation percentage on Form CT -3A, Schedule H, line 15 If more n 50% of the stock of this corporation is owned by another corporation, give the name and employer identification number of the parent corporation: c Average Fair Market Value Basis $ (93,39/,67-9• $ 635 N/S 966 ye Ivo, f23 9z, /do, z// • 54 `1, 7-75, 75.5- 48. 55 1/7 cfse 2419, '57 899 -2y9 857, R95 • /,Yy42%o 1i Sta. yo 5 • $ 1/0.5- 8.01e% • /°S 77,H/it/da /'o,e4TEn Parent corporation's name Corporations organized outside New York State should complete the following for capital stock issued and outstanding: Shares, $ • /3-/3�L ° Employer identification number Par i/, o0 /,39L Shares, $ /,37Y No Par • All corporations must answer the following questions: a. Does this corporation have an interest in real property located in New York State? yes • ❑ - no • b. Has the controlling interest in the corporation's stock changed during the period covered by this report? ❑ - yes • If both questions were answered "yes" attach a rider with complete details, see instructions. -no• CT -3(19831 Page 4 SCHEDULE F — Officers and Certain Stockholders. Include all appointed and elected officers, whether or not receiving any com- pensation, and every stockholder owning in excess of 5% of taxpayer's issued capital stock who received any compensation. It is and social security..........,__ of all officers. mandatory to Ilst the name, may. ess Name and Address—give actual residence (attach rider if necessary) Social SecurityCo Number •• Official Title alar an on d AllOther ed from Corporation $ SCE CcHEDiLE 417HCff(D c, TnTA 1 /inrb,riinrt anti nmO/Inl nn rider) - _ _ 11.0`S. • SCHEDULE G — Business Allocation Business income and capital may be allocated even if your only place of business is located in New York State. If property and wages are allocated outside New York, attach a rider indicating the nature, location and use of the property, and the number, location and duties of your employees. If investment income and capital ratios (Schedule D) are more than 85%, you may leave this schedule blank and allocate business and investment income and capital by the investment allocation percentage. 58. Average value of (value property owned by same method as in Sch. E, Col. c): a. Real estate owned �a , 95 = i6 lir'sb b. Real estate rented (attach rider)?e !3., )bo rk = sa, nS; z/ro c. Inventories owned d. Other tangible personal property owned'', AveNrc,e/Es ,f�EHL £5r'HTE e. Total f. Percentage in New York State (divide Column A by Column B) 59. Receipts, in the regular course of business, from: a. Sales of tangible personal property shipped to points within N.Y.S. b. All sales of tangible personal property c. Services performed d. Rentals of property e. Royalties f. Other business receipts g. Total h. Percentage in New York State (divide Column A by Column B) 60. Additional receipts factor (Enter % from line 59h) 61. Wages, salaries, and other compensation of employees, except general executive officers S (a) Percentage in New York State (divide Column A by Column 8) 62. Total of New York State percentages shown at lines 58f, 59h, 60 and 61a 63. BUSINESS ALLOCATION PERCENTAGE (divide line 62 by four or by the number of percentages) COLUMN A NEW YORK '•t•7:} ---i` �Y;iijS',+}•�ivv�:v-':+:f'" +.'/.+ %�/jj•%:%r: COLUMN ■ - EVERY�WNRRG gentnina( o..p /67, 6,5-6 2-. -6-"S" 1 -o 1/, 4',6, /73 11,6, 53, $21 • 14 G, 6g'3,9V $ 2- 9. /�9, zzy• 7- 11,6, - • �,Goq %• y.',{..}•.L }'.}riii.}}� LS4 i'f v}A{Ti.<?:'\4R:iff:>j:::ii:}:;: MOMENUMI • S 3, 8 y3 G / af • $ /97, 776,3z0• / .9 y3 % • /,9 %• y36,i/P1 • $ </6, /J5; // 7' • /,// %• 7.3o(, % - COMPOSITION OF PREPAYMENTS CLAIMED AT LINE 9, SCHEDULE A DATE A. Mandatory first installment B. CT -400 installments (1) (2) (3) C. Payment with extension application, Form CT -5 D. Credit from prior years 83 6-/s-83 9-/5--f3 AMOUNT $ 4/, °i0 7— •Y, ?; ,a — y foo DEPOSIT SERIAL NUMBER E. Total (add lines A,B, C and D; enter on Schedule A, line 9) $ i3, 2,o4 File this report within 21/2 months after close of report year Taxable DISC: file within 8/ months after close of report year MAIL TO: Processing Unit P.O. Box 1909 Albany, NY 12201 CT -399 (8/83) Articles 9A, 32 and 33 NY State Tax Department NEW YORK STATE SCHEDULE FOR DEPRECIATION ADJUSTMENTS Taxpayer's Name /--- IMEE/1,4N 7ELEY/S/e,1l (,..0r-+,11'1 f? Al i 4-.i T/o•svS Employer Identification Number /3 -2-9 y-3.,Sa 7. -- SCHEDULE A —Computation of Allowable New York Depreciation for current year (attach rider if necessary), SCHEDULE a Description of Property b Class of Property (ACRS) c- Date Placed in Service mo/day/yr d Cost or other Basis e Federal ACRS Deduction f Method of. Figuring NY Depreciation - ..... g Life or Rate t'yis. _.... h Allowable New York Depreciation $` 3c% 4'2,- d 2P Vey/GEES 3 ilde /7(/ /9/1"Y $/,4o6..3oS .2,A95. -5-31v $ S�/i.''l'o . 812,30,5-84c, DDl3_ - - - j9d3 „a ,,,23 a, 2-39 S'5, 82-6 - . S -51,4-6o v,sr. Sys • Et s9!/ . Sy,P. /ff/ .x3,559, /51 //. Pi 71178 8 yes. 717, es -0 /9f 2- 75,9/1,31. - 4,78o, 7/1 /�,6oS, 8/y /9f3 /Di,foo97p /y,GAS, 991 2.Total excess ACRS deductions over NYS depreciation deductions 3. Total excess NYS depreciation deductions over ACRS deductions $--. 87, 792. ' /.?,7ss/zi 81-vG5. LI /.,,,A€, /S 1,e. /9,'/ 9,74? c7 911, 55.3 5L- 2-o vs. • 2- 39, *5.3 $, .. 'y/, 6 y4' V76 - 8 /' / 9 2- $ y/, 732,2-4k / 9 f Y /,3/9,oy3 ' /q5:096.GS, 9.C- SS; S i { /9A3 /9t3 .7,/33,63/ /3c 16y 3 .71// /9//- 5-.3 31. Sib /, S9 2- /, / 2 F,e Y,,er•VE.Oiri/P. /, 295' 2751 _ / i/A/y,6W, n' PeePct3 ClatE Co. w 0 /L-//Lqj-/7 1. Total columns d, e and h $,z vs,,7Ao goo $'/6, 666, 087 $ a//, L 99,,,,76 STOP here if you have not disposed of any property acquired during 1981, 1982 or 1983. Enter total of.columns e an on the appropriate line of your franchise tax return. See instructions SCHEDULE B — Disposition Adjustment for Property Acquired during 1981, 1982 or 1983 (attach rider if necessary) Foreach item of property listed below, determine the difference between federal. ACRS and New York State depreciation used in the computation of federal and NYS taxable income in prior years. • If ACRS deduction exceeds NYS depreciation, subtract column e from column d and enter in column f. • If NYS depreciation exceeds ACRS subtract column d from column e and enter in column g. a Description of Property b Class of Property (ACRS) e Date Placed in Service d Total ACRS Deduction Taken e Total New York Depreciation Taken f Adjustment (d — e) 9 Adjustment (e — d) • $ $ $ $ St -6 <)CHD..7- 7-2. 2.Total excess ACRS deductions over NYS depreciation deductions 3. Total excess NYS depreciation deductions over ACRS deductions $--. 87, 792. $ $- SCHEDULE C — Computation of Adjustments to Entire Net Income. Federal . New York State 4. Enter amount from Schedule 5. Enter amount from Schedule 6. Enter amount from Schedule 7. Enter amount from Schedule 7. 8. Totals - Column a. lines A, line 1, Column e A, Zine 1, Column h B, line 2, in Column b B, line 3, in Column a 4 and 7; Column b, lines 5 and 6. 414. 646 o 87 $ s-. $, .. 'y/, 6 y4' V76 - 8 /' / 9 2- $ y/, 732,2-4k $ • . .96, 666, o 87 If you file form: CT -3 CT -4 CT -32 CT -33 Enter line 8, Column a, on And. Schedule B, line 23 Schedule A, line 5 Schedule D, Part II, Column e Schedule B, line 32 Enter line 8; Column b, on Schedule B, line 29 Schedule A, line 7 Schedule. D, Part II; Column g Schedule B, line 40 CT -399 CT -39918/83) INSTRUCTIONS Page 2 General Information Articles 9-A, 32 and 33 were amended in 1983. For taxable periods beginning in 1982, 1983 and 1984 general business corporations, banking corporations and insurance corporations will not be allowed to deduct depreciation computed under IRC, Section 168, when determining New York State taxable income. In general, the Accelerated Cost Recovery System is the depreciation method required by Section 168. In place of the federal depreciation deduction, a depreciation deduction computed by any method permitted under IRC, Section 167, will be allowed. The required'depreciation deduction must be computed as if the property had always been depreciated pursuant to the IRC, Section 167.. The amended Tax Law also requires an adjustment to New York State entire net income upon the disposition of property acquired during 1981, 1982 or 1983. The effect of this adjustment is to make the total New York State depreciation deductions used to compute entire net income equal to the amount of ACRS deductions claimed for federal purposes. • See Schedules B and C. Who Must Use This Form Any corporation that claims an ACRS deduction for property placed in service after December 31, 1980, and files one of the following New York State franchise tax reports: CT -3 or CT -4 — Article 9-A — General Business Corporations CT -32 — Article 32 — Banking Corporations CT -33 — Article 33 — Insurance Corporations Specific Instructions Schedule A The purpose of this schedule is to compute the allowable New York State depreciation deduction. This form has been designed to be used with the federal Depreciation Schedule, Form 4562. A copy of the federal form MUST accompany the New York State Form CT -399. Column a — Enter a brief description of eactr item of property included in Part I, federal Form 4562. Column b — For each item of property listed in Column a, indicate the "Class of Property" used in computation of federal Accelerated Cost Recovery System deduction. Use the unit of production method (UPM) for property placed in service after December 31, 1980, which is depreciated under IRC, Section 168(e) (2), the unit of production method. Column • c Only property placed in service after December 31, 1980, should be entered in this schedule. Column d — The cost or other basis entered in this column must be the same amount used for federal purposes. Property placed in service - in 1981 must be shown at the original cost and should not be reduced by any depreciation claimed in 1981. Column f — Indicate the depreciation method selected for the computation of the New York State allowable depreciation deduction. Any method used to compute depreciation that would have been allowed under IRC, Section 167, will be acceptable. This includes such methods as straight line depreciation, declining balance depreciation, sum of years -digits method or any other consistent method. Column h — Enter depreciation computed by the method indicated in Column f. Total of this column will be the depreciation allowable as a deduction for New York State. Enter the total amount at the appropriate line of your New York State franchise tax report. Line 1. If you have NOT disposed of any property acquired during 1981, 1982 or 1983, you may STOP at this point and enter the total of Columns e and h as shown below. However, if you have disposed of "Recovery Property" you MUST complete Schedules B and C. If You File Form- — Enter Column e on and Enter Column h on - CT -3 Schedule B, line 23 Schedule B, line 29 CT -4 Schedule A, line 5 Schedule A, line 7 CT -32 Schedule D, Part II, Column e Schedule D, Part II, Column g CT -33 Schedule B, line 32 Schedule B, line 40 Schedule B , Column a — Enter each item of property separately. Attach rider if additional room is needed. - Column -d -.Enter for -each item the total amount of Accelerated Cost Recovery System deductions used in the computation of prior years' federal taxable income. Column a — Enter for each item the total amount of New York State depreciation deductions used in the computation of prior years' entire net income. For 1981 recovery property, the New York State depreciation deduction was the same as the ACRS deduction and must be included in this column. Column f — If the total ACRS deduction exceeds total New York State depreciation subtract Column e from Column d and enter the excess. in this column. Column g — If the total New -York State depreciation exceeds ACRS deductions subtract Column d from Column e and enter the excess in this column. Line 2. Total Column f and enter amount on line 6, Schedule C. Line 3.. Total Column g and enter amount on line 7, Schedule C. CT -46C11 /83) SCHEDULE B-2 - REHABILITATED EXPENr—URES IN N.Y.S. ELIGIBLE FOR INVESTMr TAX CREDIT Pegs 2 - NYS sales tax vendor registration number: Percentage of business engaged in retail sales Percentage of rehabilitated area used in retail sales (a) DESCRIPTION OF REHABILITATED EXPENDITURES (b) PRIMARY U5( OF REHABILITATED AREA (e) CATs OP ITUwe (d) LIFE (YRS) (e) COST OR OTHER OASIS (f) % RATES (g) INVESTMENT FAX CREDIT Number of New York Employees In Period Prior to Acquisition of Property B C Number of New York Employees In Period Covered @y This Claim 15. TOTAL - Enter column (c) total at line 2, Schedule A $ B. Use In Conjunction With Schedule C, Line B YEAR MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 AVERAGE Number of New York Employees In Period Prior to Acquisition of Property Number of New York Employees In Period Covered By This Claim 14. TOTAL - Enter column (g) total at line 1, Schedule A $ MARCH 31 $ SCHEDULE C • ADDITIONAL INVESTMENT TAX CREDITS SCHEDULE D • INFORMATION REQUIRED FOR ADDITIONAL INVESTMENT TAX CREDIT A. Use In.Conjunction With Schedule C, Line A (a) PERIOD IN WHICH INVESTMENT TAX CREDIT WAS FIRST CLAIMED (b) AMOUNT OF ORIGINAL INVESTMENT TAX CREDIT (c) ADDITIONAL INVESTMENT TAX CREDIT - SO% OF COL. (b) A DECEMBER 31 AVERAGE Number of New York Employees In Period Prior to Acquisition of Property B C Number of New York Employees In Period Covered @y This Claim 15. TOTAL - Enter column (c) total at line 2, Schedule A $ SCHEDULE D • INFORMATION REQUIRED FOR ADDITIONAL INVESTMENT TAX CREDIT A. Use In.Conjunction With Schedule C, Line A YEAR MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 AVERAGE Number of New York Employees In Period Prior to Acquisition of Property — Number of New York Employees In Period Covered @y This Claim B. Use In Conjunction With Schedule C, Line B YEAR MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 AVERAGE Number of New York Employees In Period Prior to Acquisition of Property Number of New York Employees In Period Covered By This Claim C. Use In Conjunction With Sch.duleC, Line C YEAR MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 AVERAGE Number of New York Employees In Period Prior to Acquisition of Property Number of New York Employees In Period Covered By This Claim SCHEDULE E - COMPUTATION - RECAPTURE OF INVESTMENT TAX CREDIT (a) DESCRIPTION OF PROPERTY • (b) DATE ACQUIRED_ (c) DATE PROPERTY CEASED TO QUALIFY (d) LIFE (MOS) (a) UNUSED LIFE (MOS) (f) PERCENTAG no =(d) J (8) TOTAL INVESTMENT TAX CREDIT ALLOWED (h) RECAPTURED INVESTMENT TAX CREDIT r(f) ■ (i)] — '16. TOTAL - RECAPTURED INVESTMENT TAX CREDIT - Enter at line 5, Schedule A $ T-46(11/83) STATE OF NEW YORK - DEPARTMENT OF TAXATION AND FINANCE CORPORATION TAX CL.,fM FOR INVESTMENT TAX CREDIT TAX LAW SECTION.210.12 PERIOD ENDED /Y/3) 193 FILE WITH YOUR =RANCHISE TAX REPORT, FORM CT -3 EMPLOYER IDENTIFICATION NUMBER /2-2-9Zv-Cc v FILE NUMBER f ccoo />, SEE INSTRUCTIONS ON FORM CT -46-I NAME hitne/e/emi 4-Lei/Asia//4/2)LCirir.1 viv/e")7/sAl,S NUMBER AND STREET /Go /,UrEe�Yess Oe/rE �i/Esr CITY OR TOWN, STATE AND ZIP CODE 2-/i6L Eft/Do P, .o • Po // Y CHEDULE A — PART I - COMPUTATION OF INVESTMENT TAX CREDIT 1. Investment tax credit - Schedule B-1, line 13, col. (g) and Schedule B-2, line 14, col. (g) 2. Additional investment tax credit • Schedule C, line 15, col. (c) 3. Unused investment tax credit from preceding period 3 4. TOTAL - line 1 through line 3 4 X667% 5. Recapture of excess credit taken in previous period (from Schedule E, line 16) 5 NET INVESTMENT TAX CREDIT - (line 4 minus line 5) - see instructions 6 $ 2.26; PART II - COMPUTATION OF UNUSED INVESTMENT TAX CREDIT AVAILABLE FOR CARRY FORWARD TO FUTURE PERIODS $ / 3 8 ,2251 2 '. Tax - From Form CT -3, Schedule A, line 6(a) less any credits claimed on Forms CT -45 and /or CT -3c. Minimum Tax - See CT -3 Instructions, under Tax Rate. Investment tax credit used this period (line 7 minus line 8). Investment tax credit available (line 9 less line 6). Refund of investment tax credit claimed on line 16, Sighedule G, Form CT -46.1. Unused investment tax credit available to be carried forward (line 10 less line 11) 7 8 $ 5/3 so 9 LSO 9 10 y3,.2s4 / en 4/a. 11 112 S /c2.3, 4/ a- CHEDULE B-1 -INVESTMENT TAX CREDIT - PROPERTY LOCATED IN NYS ON WHICH — (See box below INVESTMENT TAX CREDIT IS CLAIMED for percentages} (a) ITEMIZED DESCRIPTION OF PROPERTY (b) PRINCIPALMANUFACTURING AND PRODUCTIVE SE (c) DATE ACQUIRED (d) LIFE (YRS) (e) COST OR OTHER BASIS (f) '7, RATES (g) INVESTMENT TAX CREDIT col. (f) x col. (e) (l%j18 rd R,ee1E- 5/e#G Zia/4 YofESS,NG of 6w2m. /7P,g f 7ocei82- 6 6 yz, 49/ 596 ,4,v7zM',o7 Tr S/CA69L5 ON OR AFTER 7/1/82 6% Re SUbs0_'4ER 1156 fe6/N AerfreeS11/,1 S/9/21e yS AecvE /9,x'3 8. 1,E96/549 6b/o 95.7y3 PEDPtES (A$LE CO4id. /4-/02-9)-i7 3. TOTAL - Enter column (g) total at line 1, Schedule A $ ,2 a,ir.�,;;' $ 138 28 9 CT -46 INCLUSIVE DATES RATE PERCENTAGE 1/1/74 THROUGH 12/31/77 2% 1/1/78 THROUGH 12/31/78 391, RATES 1/1/79 THROUGH 5/31/81 4% 6/1/81 THROUGH 6/30/82..-. 596 ON OR AFTER 7/1/82 6% CT -46 CT -3M Article 9A Section 2094 NY State • Tax ()apartment Metropolitan Transportation Business Tax Surcharge Report For the Calendar Year 1983 or Period beginning 1983 and ending 19_ 1983 Official use only Attach Mailing Label Here Mail to: Processing Unit P.O. Box 1909 Albany, N.Y. 12201 Employer Identification number /3'" 2. f, . so Name f fe/IR 7-E/...5/5/, / f 4gr01Y,C 4TYim Number 410 AT lei � Street /GO /, VE W 5s5 .�/Q//E /',E 57-- File T File number City or town State ZIP jy�"LElilo •e0//2 Date received ALL corporations required to file Forms CT -3, CT -3A or CT -4 MUST complete this form. Does the above named corporation do business, employ capital, own orlease property or maintain an office in the Metropolitan Commuter Transportation District, which includes the counties of New York, Bronx, Kings, Queens, Richmond, Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester? O Yes X,klo • If you answered yes, complete this form and pay the tax surcharge. If you answered no, it is not necessary to complete Schedules N or O. However, this form MUST be signed by an officer and returned to: Processing Unit, P. O. Box 1909, Albany, NY 12201 Remit amount shown at line 9, Schedule N - Make check payable to N.Y. State. Corporation Tax SCHEDULE N — Computation of Tax Surcharge 1. Net New York State franchise tax from Form CT -3, CT -3A or CT4 2. M.C.T.D. Allocation percentage from Schedule 0, line 15 3. Allocated tax — multiply line 1 by line 2 4: TAX SURCHARGE — Multiply line 3 by 17% 5. Prepayments (a) Payment with CT -5 (b) Credit transferred from Form CT - Total Prepayments claimed 1 6. Balance 7. Interest - 8. Additional charges 9. BALANCE DUE - Add lines 6, 7 and 8 PERIOD • Remittance • • 6 $ 7 $ 8 S • %Nei • 10. Overpayment - Subtract Iine.4 from line 5 a. Refund of overpayment • b. Credit to N.Y. State franchise tax CT - PERIOD 10a S. • • 10b S • •1 hereby certify that this Oat Oats CERTIFICATION OF AN ELECTED OFFICER OF THE CORPORATION any accompanying rider, is to the best of my knowledge and belief a true, correct and complete report. cGNT.E D [—LE a. of officer Official title Signature of prepareror name of firm Preparer's address' 'a AMERICAN COMMUNITY CABLEVISION DIVISION OF AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION Audited Financial Statements June 30, 1984 Audited Financial Statements Auditors' Report 1 Statement of Assets, Liabilities and Net Assets 2 Statement of Revenues and Expenses and Changes in Net Assets 3 Notes to Financial Statements 4 Ernst &Whinney 4300 Republic Plaza Denver, Colorado 80202 303/534-4300 The Board of Directors American Television and Communications Corporation We have examined the statement of assets, liabilities and net assets of American Community Cablevision Division of American Television and Commun- ications Corporation as of June 30, 1984, and the related statement of revenues and expenses and changes in net assets for the year then ended. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. As described in Note 1, American Community Cablevision is one of several divisions and subsidiaries of American Television and Communications Corporation, and has material transactions with its affiliates. In our opinion, the financial statements referred to above present fairly the assets, liabilities and net assets of American Community Cablevision Division of American Television and Communications Corporation at June 30, 1984, and its revenues and expenses and changes in net assets for the year then ended, in conformity with generally accepted accounting principles applied as described in Note 1 and in a manner consistent with that of the preceding year. et,,4 1-411"~.47 Denver, Colorado August 30, 1984 L! AMERICAN COMMUNITY CABLEVISION DIVISION OF AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION STATEMENT OF ASSETS, LIABILITIES AND NET ASSETS June 30, 1984 ASSETS Cash --Note 3 91,087 Accounts receivable, less allowance for doubtful accounts of $40,856 97,208 Prepaid expenses and supplies 27,625 Property, plant and equipment, at cost --Note 2: Land, building and improvements $ 210,775 Distribution system 4,912,174 Vehicles and other equipment 362,316 Construction in progress 1,572,431 7,057,696 Less accumulated depreciation (2,643,405) Net property, plant and equipment 4,414,291 Franchise costs, less accumulated amortization of $579,511 --Note 2 1,656,179 LIABILITIES AND NET ASSETS Accounts payable Accrued liabilities Subscribers' payments and deposits $6,286,390 $1,062,619 171,921 232,810 1,467,350 Net assets --Note 1 4,819,040 See notes to financial statements -2 $6,286,390 AMERICAN COMMUNITY CABLEVISION DIVISION OF AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION STATEMENT OF REVENUES AND EXPENSES AND CHANGES IN NET ASSETS Year Ended June 30, 1984 Revenues: Service Connection and other $2,599,528 390,192 Expenses --Notes 1 and 2: Operating and origination 1,018,641 Selling, general and administrative 1,002,763 Depreciation and amortization 577,488 Interest 249,617 $2,989,720 2,848,509 Income before charge in lieu of income taxes 141,211 Charge in lieu of income taxes --Note 5 34,000 Net income 107,211 Net assets at beginning of year 4,059,983 Net advances from corporate office 651,846 Net assets at end of year $4,819,040 See notes to financial statements -3 Li irj AMERICAN COMMUNITY CABLEVISION DIVISION OF AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 1984 1. Basis of presentation The Division is principally engaged in the operation of a cable television business, including premium programming. It operates in the City of Ithaca, New York and contiguous areas under nonexclusive franchise agreements. The Division has no separate legal status or existence. Its resources and existence are at the disposal of American Television and Communications Corporation (ATC) management, subject to contractual commitments by ATC to perform certain long-term contracts within the present divisional structure. Its assets are legally available for the satisfaction of debts of the entire corporation, not solely those appearing in the accompanying statements, and its debts may result in claims against assets not appearing therein. It is one of several divisions and subsidiaries of ATC, and transactions and the terms thereof may be arranged by and among members of the affiliated group. ATC is a wholly-owned subsidiary of Time Incorporated (Time). The Division records charges for selling, general and administrative expenses that are directly associated with it and a portion of the ATC expenses ($434,895) which are allocated to divisions and subsidiaries based upon sub- scriber levels. Interest charged to the Division by ATC ($261,431) was computed by multiplying 60% of the Division's average net assets by the average interest rate (9.8% for the year ended June 30, 1984) on ATC's outstanding borrowings; $11,814 of the interest applicable to construction in progress was capitalized. 2. Significant accounting policies Property, plant and equipment: Depreciation is provided on the straight-line basis over the estimated useful lives of the assets as follows: Building and improvements Distribution system Vehicles and other equipment 10-20 years 8-15 years 4-10 years Franchise costs: The Division has deferred costs incurred to acquire the franchises. Amortization of franchise costs is provided on the straight-line basis over the lives of the franchises. 3. Restricted cash Cash is restricted in the amount of converter deposits ($82,646). This amount is held by the Division and is refundable to customers. -4 l� AMERICAN COMMUNITY CABLEVISION DIVISION OF AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 1984 4. Related party transactions The statement of revenues and expenses and changes in net assets includes a charge for programming and promotional services provided by Home Box Office, Incorporated, a subsidiary of Time. This charge was based upon customary rates. 5. Income taxes Operating results of the Division are included in the consolidated federal income tax return of Time. In lieu of income taxes, ATC charges the Division an amount which approximates statutory state and federal income tax rates on pretax income, less investment tax credits (ITC) on current year property additions. ITC amounted to approximately $38,000 for the year ended June 30, 1984. 6. Leases Rental expense for the year ended June 30, 1984 amounted to $62,654. The Division had no significant noncancelable rental commitments. 5 SCC AMERICAN COMMUNITY CABLEVISION May 5, 1989 Cookie Paolangeli, City Clerk City of Ithaca 108 E. Green Street Ithaca, NY 14850 Dear Cookie: Enclosed is a check in payment of American Community Cablevision's franchise fee for the first quarter of 1989. A statement outlining the computation of this fee payment has been included. Should you have any questions, please feel free to call me. American Community Cablevision takes great pride in.serving the residents of the City of Ithaca and we are looking forward to serving our customers in the City in the future. Sincerely, YK,Ge )14, W cdtta-A-1 i&t) Michael M. Withiam General Manager MMW/fw -enc. 519 West State Street Ithaca, New York 14850 607-272-3456 May 3, 1989 wmmum i i i r American Television & Communications Corporation A Time Inc. Company National Division 116 Inverness Drive East Englewood, Colorado 80112 (303) 799-9599 City of Ithaca ZZNY 0040 Ithaca, New York Dear Sir: Enclosed please find a check for $26,099.85 which is payment of franchise fees for the first quarter of 1989 for American Community Cablevision. Computation is as follows: Month Gross Revenues January, 1989 $168,047.37 February 174,542.05 March 179,407.48 Total Rate $521,996.90 5% Franchise Fee $26,099.85 I, Ivy W. Parish, Controller of American Television and Communications Corporation, National Division, certify that the above schedule summarizes the Gross Revenues, as defined in the franchising agreement, for the period indicated for the CATV operations in the City of Ithaca. Signed: IWP/jdh Enclosure Ivy W. Parish, Controller Providing entertainment and information choices. RETURN CH 2:3,U59:$5 0503139 Z`NY004- American Television & Communications Corporation, A Time Inc. Company Corporate Headquarters, 160 Inverness Drive West, Englewood, CO 80112 303 799-1200 ATC NATIONAL DIVISION • ACC AMERICAN COMMUNITY CABLEVISION 519 West State Street Ithaca, New York 14850 tt A. ---r-72 ,y . ...,..,- ..- ..47.,./..., -s, t 6 MAY J -s\ _I . • ,,-rzi--:Frcci,,.-tiF; kl----- ..., isBs. ., .;:„. MAY -538 V 1 t '...........,...,..z. (....... ,. , , 6P . 62 71 v 01 E.19:Ti . R, V : Cookie Paolangeli, City Clerk City of Ithaca City Hall 108 E. Green Street Ithaca, NY 14850 SCC AMERICAN COMMUNITY CABLEVISION November 22, 1993 Ms. Callista Paolangeli, Clerk City of Ithaca City Hall 108 E. Green Street Ithaca, NY 14850 Dear Ms. Paolangeli: Enclosed is a check in payment of American Community Cablevision's_ franchise fee for the third quarter of 1993. The revenues used in the computation include advertising revenue and franchise fees collected during the third quarter as agreed in the settlement between the City of Ithaca and American Community Cablevision. Should you have any questions, please feel free to call. American Community Cablevision takes great pride in serving the residents of the City of Ithaca. erely, ki.to, Raymond H. McCabe Area Manager cc: The Honorable Benjamin Nichols Mr. James Ferwerda, Chair of the Cable Commission enc. RHM/mkk 519 West State Street Ithaca, New York 14850 607-272-3456 National Division dOc"'Lbe.-0 11), S-C-allarr\S.} TIMEWARNER CABLE November 19, 1993 City of Ithaca Ithaca, New York Dear Sir: ZZNY 0040 Enclosed please find a check for $ 37,491.01 which is payment of franchise fees for the third quarter of 1993 for American Community Cablevision. At this point, we have not deducted the overpayments for the prior periods. However, in the future, we reserve the right to reduce franchise fee payments by the amount overpaid. Computation is as follows_ Taxable Gross Revenues $784,166.73 Franchise Fee Rate Less NYCC 4.781% Franchise Fee Due $37,491.01 I, Ivy W. Parish, Controller of Time Warner Cable, National - Division, certify that the above schedule summarizes the 1 Gross Revenues.,_ as defined in the franchising agreement, for the period indicated for. the CATV operations in the City of Ithaca, New York. Signed: IWP/lmf Enclosure ev. Icy W. Parish, Controller National Division 160 Inverness Drive IVest Suite 300 Englewood CO 80112 Tel 303.799.9599 Fax 303.649.8090/303.799.1741 Mailing Address: P.O. Ilox 6929 Englewood CO 80155-6929 A Division of Time [Varner Entertainment Company, L.P. AMERICAN State Street Ithaca, New York 14850 11 ,,Asmosestonal • td _ • 9 c 9C - c,+S 6373S7 -L ACC AMERICAN COMMUNITY CABLEVISION January 15, 1992 Ms. Callista Paolangeli, Cle City of Ithaca City Hall 108 E. Green Street Ithaca, NY 14850 Dear Ms. Paolangeli: i American Community Cablevision would -l -i1 e to inform the City - of Ithaca of rate changes which are being instituted as of March 1st, 1992. Basic Cable ACC is increasing the rate for basic service to $13.95 which is less than the $14.64 maximum set forth in the franchise agreement. The 5% franchise fee will be collected in addition to the $13.95. Since December of 1989 until now our total basic channels have actually increased by 58% while the cost per channel has decreased by 16%. 1989 customers paid 87 cents/channel for 12 channels @ $10.48 1991 customers paid 75 cents/channel for 17 channels @ $12.68 1992 customers will pay 73 cents/channel for 19 channels @ $13.95. The basic cable service "grew" in 1991. An educational access channel was added along with SCOLA (Satellite Communications for Learning). The latter was a cooperative effort between Cornell University, Ithaca College and ACC. Rates for basic cable service are related to overall increases to ACC for general operating costs. Not unrelated is the demand for better programming and cable's response to those demands. For example, CNN's unequalled coverage of the Gulf War. ESPN's spectacular sports coverage, including exclusive NFL games and Major League Baseball games. 519 West State Street Ithaca, New York 14850 607-272-3456 C-SPAN's and CNN's continuing coverage of the.. presidential race ( while the big three nets consider cutting back on their coverage!) In addition, ACC has responded to customer expectations for service. For example, We continue to be in compliance with strict National Cable Television Association customer service standards (Self-imposed standards!) We continueto invest in upgrading our phone system to provide still quicker response times. Continual training and supervision has resulted in more efficient staff members. Their proper handling of customer calls and service and installation response has resulted in an overall "good" to "excellent" rating by 92% of those customers surveyed. Remote Control The monthly fee for a remote control will be increasing from $3.00 .per month to $3.95 per month. This fee has not been increased since we began offering a remote. The 5% franchise fee will be collected in addition to the $3.95. ACC has plans to offer a universal remote control both for rent and/or for purchase at some time during the first quarter of 1992. We are announcing this to our subscribers via our annual newsletter which is being mailed now. In addition, ACC makes its remotes available in the cable store for the programming of customer owned "learning" remotes. Non-payment Customers who are disconnected for non-payment have been charged $20.00 for reconnection. Beginning April 1, 1992 these customers will be charged the standard $40.00 (plus tax and franchise fee) connection rate. As always, if our technician collects the customer's payment when s/he arrives to disconnect service, (thereby eliminating the need to physically disconnect and/or reconnect the cable) a $20.00 collection fee is charged. ---ACC has—made an effort to work with customers who are having difficulty paying their cable bills by setting up limited payment plans and by reducing their current service to the basic cable service level. After the deficit is paid off and the customer is able to maintain the payments, the customer is allowed to upgrade his/her service level. Other In order to make fee structures more equitable among communities, franchise fees for pay-per-view movies and events and for converter rentals will be added to the stated rates for those services where applicable. Hotels and motels will be charged the basic rate for their first television set and a nominal fee per additional set. This is not really a departure from our past practice but more clearly states the rate to be paid for the initial set. (ACC has not always increased the fee for the first set as the basic rate has increased). American Community Cablevision has an outstanding offering of television programming for its customers and charges reasonable rates for the same. In comparing ACC to other New York communities' rates, I believe you will find that Ithacans enjoy a higher level of viewing at more reasonable rates. cerely, ,r arbara . Lukens, General Manager cc: The Honorable Benjamin Nichols, Mayor Mr. Tom Terrizzi, Chair, Ithaca Cable Commission BLL/mkk SCC AMERICAN COMMUNITY CABLEVISION January 28, 1992 Ms. Callista Paolangeli City Clerk of Ithaca City Hall 108 E. Green Street Ithaca, NY 14850 Dear Ms. Paolangeli: Enclosed is a report showing the Gross Revenues of American Community Cablevision for the period from January, 1991 through December, 1991. Should you have any questions, please feel free to call. American Community Cablevision takes great pride in serving the. residents of the City of Ithaca. Barbara L. Lukens General Manager cc: The Honorable Ben Nichols Mr. Tom Terrizzi, Chair of the Cable Commission 519 West State Street Ithaca, New York 14850 607-272-3456 January 24, 1992 City of Ithaca Ithaca, New York Dear Sir: All American Television & Communications Corporation A Time Warner Inc. Company National Division 160 Inverness Drive West, Suite 300 P.O. Box 6929 (80155-6929) Englewood, Colorado 80112 (303) 799-9599 Below is a report showing Gross Revenues for January, 1991 through December, 1991. The report is in compliance with Section 18.5 (B) of the franchise agreement, approved by the City Council June 8, 1988, with American Community Cablevision. Computation is as follows: Month Gross Revenues January, 1991 $191,232.26 February 196,390.33 March 203,625.01 April 215,138.40 May 214,287.89 June 178,145.22 July 176,457.37 August 164,223.38 September 234,572.25 October 216,909.46 November 211,367.61 December 209,867.86 Total $2,412,217.04 I, Ivy W. Parish, Controller of American Television and Communications Corporation, National Division, certify that the above schedule summarizes the Gross Revenues, as defined in the franchising agreement, for the period indicated for the CATV operations in the City of Ithaca. Signed: (A) • /a Ivy . Parish, Controller IWP,ij dh Enclosure Providing entertainment and information choices. NEW YORK STATE COMMISSION ON CABLE TELEVISION FORM AFR-1 U ' e 8 1996 1tt►a ta.V: Annual Financial Report for Period Beginn n 0 July 1, 1985, and Ending June 30, 1986. Name -American Community Cablevision, Division of American Television and Communications Corporation Full Name of Cable Television Company Address 116 Inverness Drive East Mailing Address Englewood Colorado 80112 City" State Zip Code • Telephone No. (Include Area Code '(303) 799-9599 Business Entity Division of American Television and Communications Corporation " (Indicate if a: Sole proprietorship; Partnership; Limited partnership; Corporation; Subchapter S Corporation; Not for profit Corporation; Other (describe). Reporting Entity Individual entity report (Indicate. if this is a consolidated or individual entity report) Notice This report shall be filed with the Commission by every cable television company required to maintain records and adopt the accounts prescribed in the Uniform Accounting System, and may be filed by any cable television which voluntarily uses the accounts specified in the Uniform Accounting System. This report shall be filed with the Commission within 90 days of the end of your fiscal year. Part I of this report consists of questions of a general informational nature; Part II consists of financial statements and schedules based on the accounts specified in the UAS: Part III consists of consolidated financial statements and shall be completed by any company having an ownership interest of 20% or more in another company and shall include any company not included in Part II or for which a separate report is not attached and any operations of a non - cable nature or which arose from out of state operations. General Instructions 1. All entries are to be in permanent form. Decreases are to be shown enclosed in parentheses. 2. The words ."not applicable" are to be shown on any schedules or in reply ► to any question which does not apply to respondent. • 3. Additional explanations, schedules or statements may be attached to the back of this form by respondent for the purpose of further explanation if insufficient space has been provided on this form. The additional explanations, schedules or statements shall be cross-referenced to the question, statement or schedules to which they are related. 4. Amounts reported on this report shall be rounded to the nearest dollar. 5. If you require assistance phone (518) 474-2471 or write New York State Commission on Cable Television, Tower Building, Empire State Plaza, Albany, New York 12223. PART I 1. To Whom Should Correspondence and Inquiries Concerning This Report Be Addressed? Janice S. Waggoner 116 Inverness Drive East Name Mailing Address Controller American Television and Communications Title Corporation - National Division (303) 799-9599 80112 Phone Number (Include Area Code) Zip Code 2. List below the name of each locality granting a franchise and also each geographic area you serve in which a franchise has not been granted. Identify whether a local- ity is a city, town, or village by using the following codes: 'C' -City, 'T' -Town and 'V' -Village. Indicate operation in a non -franchised area by placinb the letter "N" after the area served. The Number of Subscribers shown is defined as the total amount of first, or primary outlets installed in each area served without reference to the number of additional outlets or services subscribed to be each customer. A decimal point has been provided in columns D, E, and F for fractional numbers. For whole numbers place a zero to the right of the decimal point. Should you serve more localities than space provided, please make additional copies of page 2b. ************** * Reserved for office use only * * A. * B. * * Municipality Code * * Company ID * Name of Franchise Number of or Area Served Subs. Estimated Percentage of Penetration :Total Route Miles of Miles in Plant Franchise Completed Area 1) * City of Ithaca 7,313 58.0 77.7 77.7 * 2) * Town of Ithaca 3,134 51.0 72.5 72.5 * 3) * Vill.of Cayuga Hts. 1 089 78.0 17.5 17.5 ` * 4) * Vill.of Trumansburg 626 62.0 17.6 17.6 * 5) * Vill.of Candor 328 78.0 6.3 6.3 * 6) * Town of Caroline 445 77.0 17.5 17.5 PART I (Continued) * * * * * * * * * * * * * * Reserved for * i. office use * only * * •1 A. * B. C. D. E. F. * * Total Municipality Code * Estimated Route * Percentage Miles of Miles in * Name of Franchise Number of of Plant Franchise Company ID * or Area Served Subs. Penetration Completed Area * 7) * Vill. of Lansing 1,308 75.0 12.1 12.1 * 8) * Town of Dryden 2,140 71.0 88.1 88.1 * 9) * Town of Newfield 944 79.0 19.7 19.7 * 10) * Town of Lansing 1,264 75.0 13.8 13.8 * 11) * Town of Ulysses 292 62.0 h 11.9 •11.9 * 12) * Town of Danby 343 75.0 8.2 8.2 * Village of 13) * Newark Valley 381 73.0 7.1 7.1 * 14) * Vill. of Groton 831. 79.0 10.6 10.6 * 15) * Town of Groton 176 76.0 10.1 10.1 * 16) * Vill. of Dryden 603 75.0 9.6 9.6 * 17) * Vill. of Freeville 144 67.0 4.5 4.5 * 18) * Town of Candor 359 82.0 34.7 34.7 * Town of Newark 19) * Valley 250 98.0 13.1 13.1 * 20) * * 21) * . * 22) * * 23) * * 24) * 25) * _ * 26) * * 27) * * 28) * _ * TOTAL 21,970 452.6 452.6 3. At any time in the reporting period did you own or control 20% or more of any other company, or did another company own or control 20% or more of your company? X Yes If yes, list the companies below. A. B. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Name of Company No er. c.entage; of ,Ownership. .r; `'Control ., He1d By You An Another Company ti Name of Company 1. American Television and Communications Corporation ' American Community Cablevision is 2. an operating Division of ATC 3. 4. 5. 6. 7. 8. .Percentage of Ownership Or Control Held By:.You', In Another Company,- Consolidated ompany, 100% Consolidated on Part °II Yes/No Consolidated :..on Part II Yes/No No 9. 10. S CERTIFICATION I certify that I have examined this report and that all statements of fact contained therein are true, complete, and correct to the best of my knowledge, information, and belief and that nothing material has occurred that would require explanation that has not been explained. Janice S. Waggoner Printed Name of Signer Controller American Television and Communications Corporation, National Division Title September 24, 1986 Date Signed PART II Statement of Profit and Loss Line No. Account No. Name Amounts FILE CODE 20 1. Operating Income 2. 4110.0 Installation Income $ 201,051 3. 4120.0 Regular Subscriber Charges $2,964,119 l 4. 4130.0 Per Program or Per Channel Charges $1,365,090 N 5. 4140.0 Other Subscriber Revenues $ 434,737 6. Total Subscriber Revenues $4,964,997 7. 4210.0 Advertising Income $ 183,072 8. 4220.0 Special Service Income $ 0 9. 4230.0 Other Non -Subscriber Revenues $ 2.5,015 10. Total Non -Subscriber Revenues 11. Total Operating Income 12. Cost of Operations 13. 5100.0 Service Costs 14. 5200.0 Origination Costs 15. 5300.0 Selling, General and Administrative Expense 16. 5400.0 Depreciation and Amortization 208.087 17. Total Operating Costs 18. Total Operating Profit or (Loss) (Line 11 - Line 1.7) $1,820,883 $1,026,660 $5,173,084 $4,352,845 $ 820,239 -4 PART II Statement of Profit and Loss (Continued) 19. Other Income and Expenses 20. Other Income 21. 6110.0 Interest $ 0 22. 6120.0 Dividends $ 0. 23. 6130.0 Other $ 0 24. Total Other Income 25. Other Expenses 26. 6210.0 Interest $ 449,601 27. 6220.0 Miscellaneous $ 0 28. Total Other Expense 29. Total Other Income or (Expenses) (Line 24 - Line 28) 30. Profit or (Loss) Before Taxes (Line 18 + or - Line 29) 31. Provision for Federal and State Income Taxes 32. 7100.0 Federal Income Taxes 33. 7200.0 State Income Taxes 34. Total Income Taxes Payable 35. Total Profit or (Loss) Before Extraordinary Items (Line 30 - Line 34) $ 53,000 $ 37,000 0 449.601 FILE CODE 20 $ (449,601) $ 370,638 $ 90,000 $ 280,638 36. 8000.0 Extraordinary Items* $ 0 37. Total Profit or (Loss) $ 280,638 * Please provide schedule of items and amounts. BALANCE SHEET ASSETS Line No. Account No. Name Amounts FILE CODE 30 1. Current Assets . 2. 1110.0 Cash $ 239,423 3. 1120.0 Short-term Investments . $ .0 4. 1130.0 Accounts Receivable - Trade $ 153,143 5. 1139.0 Less: Allowance for Doubtful % Accounts $ (64,023) 6. Accounts Receivable - Net $ 89,120 7. 1140.0 Other Receivables $ 43,149 8. 1149.0 Less: Allowance for Doubtful Accounts $( 1,070) 9. Other Receivables - Net $ 42,079 10. 1150.0 Inventory $ 25,260 11. 1160.0 Broadcasting Rights $ 0 12. 1170.0 Prepaid Expenses'; $ i 0' 13. 1180.0 Other Current Assets $ 0 14. Total Current Assets 15. Plant Assets 16. 1200.0 Fixed Assets $ 9,446,686 17. 1300.0 Construction Work in Progress $ 36,965 18. 1500.0 Plant Adjustments $ 0 19. 1400.0 Less: Allowance for Accumulated Depreciation and Amortization $(3,866,627) 20, - Total Plant Assets $5,617,024 395 882 BALANCE SHEET • ASSETS (Continued) 21. Other Assets 22. 1610.0 Intangible Assets $ 1,456,418 23. 1620.0 Deferred Charges $ 0 24. 1630.0 Long Term Investments $ 0 25. 1640.0 Organization Costs $ 0 26. 1650.0 Other Assets $ 3,500 27. Total Other Assets $ 1,459,918 FILE CODE 30 28. Total Non -Current Assets (Line 20.+ Line 27) $ 7,076,942 29. Total Assets (Line 14 +.Line 28) $ 7,472,824 LIABILITIES AND OWNERS' EQUITY 30. Current Liabilities 31. 2110.0 Loans Payable $ 7,099,695 32. 2120.0 Subscriber Advance Payments and Deposits $ 356,417 33. 2130.0 Accounts Payable $ 79,203 34. 2140.0 Taxes & Other Withholdings $ 445 35. 2150.0 Accrued Expenses $ 239,274 36. 2160.0 Accrued Taxes $ 0 37. 2170.0 Other Current Liabilities $ 0 38. 2180.0 Dividends Payable $ 0 39. Total Current Liabilities $ 7,775,034 BALANCE SHEET LIABILITIES AND OWNERS' EQUITY (Continued) 40. Non -Current Liabilities 41. 2300.0 Long -Term Debt $ N/A 42. 2400.0 Operating Allowances;, $ N/A 43. 2500.0 Other Non-CurrentLiabilities' $ N/A 44. Total Non -Current Liabilities 45. Owners' Equity 46. 3100.0 Common Stock - Issued $ N/A 47. 3200.0 Preferred Stock - Issued $ N/A 48. 3300.0 Treasury Stock $ N/A 49. 3400.0 Proprietors' Equity $ N/A 50. 3500.0 Additional Paid -In Capital $ N/A 51. 3600.0 Retained Earnings or Accumulated Deficit $ (302,210) 52. Total Owners' Equity 53. Total Liabilities and Owners' Equity INSTRUCTIONS $ N/A $ (302,210) FILE CODE 30 $ 7,472,824 . If Line 43, Other Non -Current Liabilities, is significant in amount list. the major items comprising it, and the amounts therein. . Furnish particulars as to any significant contingent assets or liabilities existing at year end or any significant change in the financial condition of the company occurring after the end of the fiscal year but prior to filing this report. List on reverse side. . List the total amount of subscriber Advance Payments, Account #2121.0 and the total amount of Subscriber Deposits, Account #2122.0 held by you and indicate if you pay interest on these amounts and if so, how much. Subscriber Advance Payments $228,661 Subscriber Deposits 127,756 Total $356,417 Interest is not paid on these amounts. STATEMENT OF CHANGES IN FINANCIAL POSITION Instructions 1. The following items entered as follows: a. Lines 1, 2, 3 and 4 are the amounts entered on the Statement of Profit and Loss for those items. b. Line 6 is the proceeds of debt issuance. ti c. Line 7 is the proceeds of stock issuance or other equity investments. d. Line 14 is amounts invested in securities or companies on a long-term basis. e. Line 23 is computed as follows: 1. Add or subtract line 22 from line 19 and enter on line 23; the amount entered on line 23 when added to or subtracted from line 10 shall equal line 16; in no event is the amount entered on line 23 to be entered elsewhere on the form. 2. An amount entered on line 23 that represents a reduction of working capital from the prior year is a resource and when added to the amount shown on line 10 will always equal line 16: A resource, that is a reduction in working capital, is evidenced by line 22 being smaller than line 19; an application, that is an increase in working capital, is evidenced by line 22 being larger than line 19. f. Negative amounts are to be indicated by being enclosed in parentheses. 2. Total Resources Provided, line 10 must equal Total Resources Used, line 16, plus or minus the Net Change in Working Capital, line 23. STAltVIENT OF CHANGES IN FINANCIAL POSITION Financial Resources Were Provided By: From Operations: 1. Net Income (Loss) before Extraordinary Items 2. Extraordinary Income (Loss) 3. Total Net Profit (Loss) 4. Depreciation & Amortization 5. Funds Provided by Operations (lines 3 and 4) 6. Long-term debt 7. Equity Investments 8. Other FILE CODE 40 $ 280,638 0 280,638 1,026,660 1,307,298 0 0 0 9. Funds Not Provided by Operations (lines 6, 7, and 8) 0 • 10. Total Resources Provided (lines 5 and 9) 1,307,298 Financial Resources Were Used For: 11. Additions to fixed assets $ 1,237,134 12. Reduction of long-term debt 0 13. Dividends paid or equity withdrawals 0 14. Investments - 0 15. Other 67,530 16. Total Resources Used (total lines 11 to 15) 1,304,664 Change in Working Capital: 17. Prior Years Current Assets $ 236,315 18. Prior Years Current Liabilities 7,612,833 19. Difference (line 17 less line 18) (7,376,518) 20. Current Years Current Assets 395,882 21. Current Years Current Liabilities 7,775,034 22. Difference (line 20 less line 21) (7,379,152) 23. Net Change in Working Capital (line 19 plus or minus line 22) $ 2,634 NOTE: Line 10 minus line 16 must agree with line 23. PLANT, INTANGIBLES & DEFERMENT! EXPLANATION OF ENTRIES LINE NO. INSTRUCTIONS 1. The balance at the beginning of the year, column A should agree with the closing balances on last year's Schedule of Plant, Intangibles & Deferments; the balance at the end of the year should agree with closing balances on this year's balance sheet. 2. Amounts reported in column D, transfers and adjustments, should be explained in the space provided above. 3. The amounts shown in column E, lines 15, 16, 20 and line 21 column F must agree with amounts shown on the balance sheet, lines 16, 17, 18 and 19, respectively. 4. Unamortized Debt Expense is amortized by charging "Interest Expense", this will be reflected on this schedule by entering this amount in column D. 5. Intangible assets and deferred charges should be recorded at cost with the accumulated amortization reported in column F. The amounts reported in line 26 column E minus line 26 column F must agree with the amount reported on the balance sheet in line 22. The amounts reported in line 31 column E minus line 31 column F must agree with the amount reported on the balance sheet in line 23. PLANT, INTANGIBLES AND DEFERMENTS FILE CODE 50 (A) (B) • (C) (D) (E) (F) ACCUMULATED BALANCE AT TRANSFERS DEPRECIATION ACCOUNT BEGINNING ADDITIONS AND BALANCE AT AND LINE NUMBER DESCRIPTION OF YEAR DURING YEAR RETIREMENT ADJUSTMENTS END OF YEAR AMORTIZATION Fixed Assets '. 1210.0 Land $ 29,850 $ 0 $ 0 $ 0 $ 29,850 $ --- 2. 1220.0 Buildings 230,081 188,514 0 0 418,595 (91,985) 3. 1230.0 Head -End 490,521 72,171 0 0 562,692 (241,750) 4. 1241.0 Subscriber Devices 3,056,092 349,201 (94,583) (143,872) 3,166,838 (1,213,225) 3,809,551 492,665 0 0 4,302,216 (2,010,084) 5. 1242.0 Other 6. Total Trunk and Distribution 6,865,643 841,866 (94,583) (143,872) 7,469,054 (3,223,309) (Line 4 and Line 5) 7. 1250.0 Test Equipment and Tools 159,543 33,790 0 0 193,333 (88,986) 8. 1260.0 Program Origination 69,412 318,894 0 0 388,306 (35,095) 9. 1270.0 Vehicles 187,559 78,390 0 0 265,949 (140,326) 10. 1276.0 Furniture and Fixtures 82,171 36,736 0 0 118,907 (45,176) 11. Total Vehicles, Furniture and 269,730 115,126 0 0. 384,856 (185,502) Fixtures (line 9 and Line 10) 12. 1280.0 Capitalized Lease Property 0 0 0 0 0 0 13. 1290.0 Leasehold Improvements 0 0 0 0 0 0 14. 1299.0 Miscellaneous Equipment 15. Total Fixed Assets (Total Lines 1 to 3, 6 to 8, 11 to 14) 16. 1300.0 Construction Work in Progress 131,737 1,805,891 0 01,900,663) 36,965 0 8,114,780 1,570,361 (94,583) (143,872) 9,446,686 (3,866,627) ACCOUNT LINE NUMBER DESCRIPTION 1/. Plant Adjustments 18. 1510.0 Plant Adjustment Excess Fair Value FILE CODE 50 PLANT, INTANGIBLES AND DEFERMENTS (Continued) (A) (B) (C) (D.) (E) (F) ACCUMULATED BALANCE AT TRANSFERS DEPRECIATION BEGINNING ADDITIONS AND BALANCE AT AND OF YEAR DURING YEAR RETIREMENT ADJUSTMENTS END OF YEAR AMORTIZATION 19. 1520.0 Plant Adjustment Goodwill $ 0$ 0 $ 0 $ 0 $ 0 $ 0 0 0 0 0 0 0 20. Total Plant Adjustments 0 0 0 0 0 0 (Lines 18 + 19) 21. Total Plant Assets 8,246,517 3,376,252 (94,583) (2,044,535) 9,483,651 (3,866,627), (Lines 15 + 16 + 20) 22. Intangible Assets 23. 1611.0 Franchises, Licenses and Permits 2,235,690 0 0 0 2,235,690 (780,990) 24. 1612.0 Other Intangible Assets 0 0 0 0 0 0 . 1613.0 Goodwill 0 0 0 0 0 0 26: Total Intangible Assets (Lines 23 + 24 + 25) 27. Deferred Charges 2,235,690 0 0 0 2,235,690 (780,990) r 28. 1621.0 Start -Up Costs 0 0 0 0 0 0 29. 1622.0 Unamortized Debt. 30. 1623.0 Other Deferred Charges 0 0 0 0 0 .0 0 0 0 0 0 0 31. Total Deferred Charges 0 0 0 0 0 0 (Lines 28 + 29 + 30) NOT APPLICABLE LONG-TERM DEBT Principal Payments Due In FILE CODE 60 r (A) (B) (C) (D) (E) (F) Line Description Year 2 Notes 2. Owed to Affiliates 3. Owed to Directors or Officers 4. All Others 5. Total Notes 6. Bonds 7. Owed to Affiliates 8. Owed to Directors or Officers 9. All Others 10. Total Bonds 11. Obligation on Capitalized Leases 12. Unamortized Premium & Discount on Outstanding Debt 13. Total Long -Term Debt (Total of Lines 5, 10, 11 + 12) 14. Interest to be Paid TOTAL (Line 13 + Line 14) $ $ Year 3 Year 4 Over 5 Year 5 Years Total INSTRUCTIONS 1. Determine the amount of principal and interest to be paid on all long-term debt. (If interest rate varies use rate in effect at end of current year). 2. On line 12 determine the amount to be amortized yearly and enter in the appropriate column. 3. Cross -foot all totals. The total amount of long-term debt entered on line 13, column "F" shall agree with the total amount of long-term debt entered on line 41 of the balance sheet. DETAILS OF SUMMARIZED EXPENDITURE ACCOUNTS FILE CODE 70 CA) (B) (C) (D) SELLING, GENERAL PAYROLL & LINE ITEM. =- --ACCOUNT ORIGINATION & ADMINISTRATIVE EXPENSES NO. NO. DESCRIPTION SERVICE COSTS COSTS EXPENSES CAPITALIZED.: 1. 01.1 Sal. & Wages, Officers & Directors $ N/A $ N/A $ N/A $ N/A 2. 01.2 Salaries and Wages, All Others 388,074 25,166 355,879 N/A 3. 02.1 Emp. Benefits, Officers & Dir. N/A N/A N/A N/A 4. 02.2 Employee Benefits, All Others 63,157 5,239 110,496 N/A 03.0 Maintenance.:: 128,516 4,686 N/A N/A 6. 04.0 Pole and Site Rentals 75,799 N/A N/A N/A 7. 05.0 Microwave _Service 13,788 _ N/A... - N/A N/A 8. 06.0 Light, Heat --& Power 53,287 =_ ;-.N/A 20,086 N/A 9. 07.0 Vehicle Expenses 41,363 N/A 4,111 N/A 10. 08.0 Rent 62 0 10,739 N/A 11. 09.0 Travel &-Entertainment N/A N/A 15,851 N/A 12. 10.0 Dues and Subscription N/A N/A 6,049 N/A 1. 11.0 Contributions N/A N/A 4,405 N/A • 14. 12.0 Professional Service N/A N/A 40,304 N/A 15. 13.0 Stationery & Supplies N/A NJA 16,831 N/A 16. 14.0 Postage and Freight N/A N/A 16,323 N/A 17. 15.0 Advertising & Promotion N/A N/A 41,348 N/A 18. 16.0 Telephone & Telegraph N/A N/A 39,392 N/A 19. 17.0 Sundry Office Expenses N/A N/A 5,692 N/A Sub -Total $ 764,046 $ 35,091 $ 687,506 N/A DETAILS OF SUMMARIZED EXPENDITURE ACCOUNTS LINE. ITEM . .: ACCOUNT NO. NO. _ DESCRIPTION Balance Forward FILE CODE 70 (A) (B) (C) (D) SERVICE- COSTS $ 7.64,046 SELLING, GENERAL PAYROLL & ORIGINATION & ADMINISTRATIVE EXPENSES COSTS - EXPENSES CAPITALIZED $ 35,091 $ 687,506 $ N/A 20. 18.0 Insurance N/A N/A 15,748 N/A 21. 19.0 Provision for Doubtful Accounts N/A N/A 31,780 N/A 22. 20.0 Local Taxes N/A N/A 70,247 N/A . - .- • 21.0 Franchise, License & Permit Fees N/A N/A 113,890 N/A 24.- 22.0 Technical. & Creative Service N/A 950 N/A N/A A -0- N/A N/A 25. 23.0 Film Expense N/A 26 24.0 Studio Sets & Props - -._. - N/A_ 430 N/A N/A 27. 25.0 Program Material & Supplies N/A 57,888 N/A N/A 28. .'26.0 News Services . N/A 3,111 N/A N/A 29. ` 27.0 Participation Expense N/A - -0- N/A N/A 30.- 28.0 Fees & Royalties - . N/A 747,469 N/A N/A 29.0 Tariff & Leaseback Charges N/A N/A N/A N/A 32. 30.0 Overhead Allocations N/A N/A 520,540 N/A 33. 80.0 Other 87,172 698 381,172 N/A 34. Sub -Total 851,218 845,637 1,820,883 N/A 35. 90.0 Capitalized Cost Offsets • (191,553) ( N/A) TOTAL $ 659,665 $.845,637 • $1,820,883 N/A INSTRUCTIONS 1. The total of Columns A, B, & C should agree with totals reported on Statement of Profit and Loss, lines 13, 14 and 15. 2. Amounts appearing in Column D shall not be included in Columns A, B and C. 3..Please provide details on reverse side of Overhead Allocations, if any, as provided for in Section 599.40(J) (5). Line Operating Allowances OPERATING ALLOWANCES NOT APPLICABLE FILE CODE 80 (A) (B) (C) (D) Balance"_ Additions Deductions Balance Account Beginning During During at End Number of Year == 'Year Year of Year 1. Property Insurance Allowance 2410.0 $ 2. Injury and Damage Allowance 2420.0 Pension and Benefit -Allowance" 2430.0 4. Miscellaneous Operating Allowance 2440.0 5. 6. 7. 8. 9. Total Miscellaneous Operating Allowance (Lines 5 to 8) 10. Total Operating Allowance (lines 1 + 2 + 3 + 9) 2400.0 $ $ INSTRUCTIONS 1. Enter above all information requested for Operating Allowances as entered on the accounts provided for in the UAS. 2. The total shown on Line 10, column D, shall equal the amount entered on line 42 of the Balance Sheet. 3. If you have established one or more miscellaneous operating allowances list their titles on lines 5 through 8 above, and briefly describe below their nature and purpose. PART III Consolidated Financial Statements Instructions 1. Complete this section only if you have an equity interest of 20% or more in another company. Before preparing this section please read Section 599.83 of the UAS. 2. The account balances and transaction totals included in Section II of this report shall be adjusted for inclusion in this Section only to the extent necessary to prepare consolidated financial statements and/or to reflect investments using the equity method. ti 3. Equity investments in another company shall be accounted for using (i) the cost method for investments of less than 20% and (ii) the equity method for investments of between 20% to 50% and (iii) the preparation of consolidated financial statements for investments of more than 50%. 4. This section will also be completed if,a:jcompany operates in whole or in part in a state other than New York or has significant non -cable television activities. In such cases New York State cable activities will be reported on Part II of this report and all other activities including New York State cable activities will be reported on Part III. Please refer to Sections 599.83(e) (1) & (2) of UAS for a definition of significant activity. Consolidated Profit or Loss 1. Operating Revenues Total Cable Television Revenue $ 2. ' Other Operating Revenues (Itemize on Line 16) $ 3. Total Operating Revenues $ 4. Operating Expenses 5. Total Cable Television Expense $ 6. Other Operating Expenses (Itemize on Line 16) $ 7. Total Operating Expenses $ 8. Total Operating Profit or Loss $ 9. Other Income - equity income in subsidiary $ 10. Other Expenses $ 11. Total Other Income or Expenses $ 12. Total Profit or Loss Before Income Taxes $ 13. Total Income Taxes $ 14. Extraordinary Income (Losses) $ 15. Total Profit (Loss) $ Instructions 16. Itemize by major groups or categories, the amounts shown on line 2 and/or line 6 in the space below. HI CONSOLIDATED BALANCE SHEET ASSETS 1. Current Assets 2. Plant Assets 3. Other Assets 4. Investments 5. Total Assets $ $ 4 LIABILITIES AND EQUITY 6. Current Liabilities $ 7. Long-term Debt $ 8. Other Liabilities $ 9. Minority Interest in Subsidiaries $ 10. Total Liabilities $ 11. Equity $ 12. Total Liabilities and Equity. $ INSTRUCTIONS 1. The accounts shown in Section 599.32 of the UAS should be used as a general guide in preparing this statement. 2. The amounts shown shall be net of any allowance. 3. The amount shown on line 5 shall equal the amount shown on line 12. CONSOLIDATE. JTATEMENT OF CHANGES IN FINANC1. POSITION Financial Resources Were Provided By: From Operations: 1. Net Income (Loss) before Extraordinary Items $ 2. Extraordinary Income (Loss) 3. Total Net Profit (Loss) 4. Depreciation & Amortization 5. Funds Provided by Operations (lines 1 to 4) 6. Long-term Debt 7. Equity Investments 8. Other 9. Funds Not Provided by Operations (lines 6, 7, and 8) % 10. Total Resources Provided (lines 5 and 9) Financial Resources Were Used For: 11. Additions to Fixed Assets 12. Reduction of Long-term Debt 13. Dividends paid or equity withdrawals 14. Investments 15. Other 16. Total Resources Used (total Lines 11 to 15) Change in Working Capital: 17. Prior Years Current Assets 18. Prior Years Current Liabilities 19. Difference (line 17 less than 18) 20. Current Years Current Assets 21. Current Years Current Liabilities 22. Difference (line 20 and line 21) 23. Net Change in Working Capital (line 19 plus or minus line 22; line 10 minus line 6 must are with line 23) ee instructions page 9. $ New York State Commission on Cable Television Fora .kFR - 1- Annual Financial Report for Period Beginning July 1 1979 , and Ending ' June 30 , 19 80 . Name Cerracche Cablevision Division of American Television Full Name of Cable Television Company Communications. Corporation Address 160 Inverness Drive, West Mailing Address Englewood Colorado 80112 City 303/773-3411 Telephone No'. (Include Area Code) State Zip Code Business Entity Division of American Television & Communications (Indicate if a: Sole proprietorship; Carpuration Partnership; Limited partnership; Corporation;' Subchapter S Corporation; Not for profit Corporation; Other (describe). PART I 1. To Whom.Should Correspondence And Inquiries Concerning ?his Revorz. 1 Be Addressed? Robert -B B. Niles *same Controller Title 160 Inverness Drive West :sailing Address Englewood Colorado City State 303/773-3411 80112 Phone Number [Include Area Code]Zip Code 2. List below the name of each locality granting a franchise and also each . geographic area you serve in which a franchise has not been granted and • show the Number of Subscribers for each area served,'computed as of the end of your fiscal year in the same manner as for the Federal Communications . Commission. Indicate operation in a non -franchised area by plading the letter "n" after the area -served. Name of Franchise or Area Served 1. See Attachment # 1 2. 3. 4. 5. 6. 7. 3. 9. 10. Total • Estimated Miles Number of Percentage of Of Plant Subscribers Penetration Completed • 3. At aT7 time in the per'_cd did you. c:.11 a= trc L 20:c- ccr. � L cr more cf �.•� ct e_ c: ^pa-:,', c= - =ocher CCI_ca y own or control 207. or =cre c! your company? X Yes No If yes, ? s c the cor,41anies below. .y . • VaL:.e cf Ccmoanv 2. 3. 5. 6. 7. 8. 10. 3. Name c_ Ccr..canv 1. American Television & 2. Communications Corporation 3. Ceracche Cablevision is an 4. Operating Division of ATC 5 6. Percentaze o C.�..er_h_io Or C. t't_ol Held Sv You 1n Another Cc=ranv P�_cen.a?e cf Cr Cont=cl Fiele 3.r Anathe_- Ccn a;:v In Yct 7. 8. 9. 10. 4. CERTIFICATIag I certil7 that I have emanin*d repc-= a -ad th=,- . all stater -eats c! !act cca:ained therein are trce, piece, and ccrrect tc the_best 6! ny kncwledze, ia- :i, and belie! and that =thing nacerial has cccurred that wculd require ex;lznatica that has act been ex7laimed. Controller Siznatute Title Rnhprt R. Niles 11••=1••••••••M•••••••••• Pr-Lnced Nene .ct Signer -Dace Signed r, lane 11u. 1. O1prntlgp, Income 2. 3. 4. 5. G. 7. 8. 9. • Account Hoe 411.0.0 4120.0 4130.0 4140.0 4210.0 4220.0 42)0.0 I•Atvr u • ;fit ,meat or 1ioClt. nod Loon hams instn1.1n1 ton lucerne Regular Subscriber Charges • rrr Program or Per Channel Chat pes Other Subscriber Revenuer! Totnl Subscriber Revenucn Advertl,aln' income Special Service Income Other Von -Subscriber Revenues 10. Totnl Hiss -Subscriber Revenues ll. Total Opernting Income 12. Cant of 0rcrntlone 13. 5100.0 Service. Cnntn 14. 5200.0 Origination Cents 15.5300.0 Selling, Oer►ernl and A►hnl.nlntrntivr+ I.xpenne 14. 5400.0 • Depreciation and Amortlxntlon Amotn►tn S_ 103,173 $1 ,361 ,842 373,207 $ N/A $ N/A $ N/A $ 29,842 $1,838,222 $ 29,842 $ 366,184 $ 179,563 $ 719.50.. $ 495,190. $1,868,064 11. Total cjirrntlnr Conte In. Total Uherntlng_Prn(lt or (Loos) 19. Other lnco+ne and Expenses • 20. Other income 21. 6110.0 Interest 22. 6.120.0 UIvldende 23. 6130.0 Other 24. Total Other Income • 25. 011ier Expenses 16. 6210.0 Interest 7.7. 6220.0 Htscellaneoua 28. Total Other Expense 79. Total Other Intorno or Expenses (Line 2t, - Line 211) 30. Profit or (Loen)•De(MICApae•_ 31. Pro.►Lnlon for Federal ana State income Taxes 37.. 110q41' Federal Income • .• Taxes $_267,053 $ -n= $ $267,053 • $1,760,503 g 107,56T $ 7F7,05Y (159,492) • 1- 33. 7200.0 Stntc Income * TnAvn 3,.. • 35. Totnl rroflt or IArr.e Defore Iixtrnotdlnorx lion, (Line 31) - Lloo • 34) 3G. Totnl Income Tneee rnynble 0000.0 Extrnordlnnrr.Items* 37. Toln) rroflt or Loci (LIne 35 - 1.1m-7-36) *' rlenne provide schedule of..Itemn nod Amount.. $(159,492) $ N/A $ (159,492) • MANCE SIIEEt ASSETS Line tlo. Account flu. . Dame • Amounts 1. Current Anectn 1110.0 Cnnh $ 68,095 J. 1120.0 Short-term Lnvrstmcntn $ 4. 1130.0 Accounts Receivable - Trnde $ 51,673. 5. 11.39.0. Lens: Allowance for Doubtful. Accounts is 3,361 1 6. Accounts Receivable - Net 7. 1140.0 Other Recelvnblcs $ 6,721 0. 1149.0 Lena: Allownnce For Doubtful Accounts LS -0- i 9. Other ReceLvnbles - Net 10. 1150.0 Inventory 11. 1160.0 Ilrondcneting Rights 12. 1170.0 Prepaid Expenses 13. 1180.0 Other Current Assets 14.. Total Current Aeer.ts $ 48,312 $ .. 6;721 $ 20,000 $ S 150 $ $ 143,278 II. Plant AFlctS 16. 1200.0 Pined Assets 17. 131)0.0 Constructl.oin uvrk In Ptugresn 1n, I500.0 Plant Adjustments 19. • 1400.0' Lena Allowance for Acenmulnted Depreciation) and Amortization 20. Total Plant Asscta is 938,279 21. other Annete 27.. 1610.0 intangible Assets $1,9g6,038 21. • 1620.0 Deferred Charges $ 74. 1610.0 Long Term 1nventmcntn $ 25. 1640.0 Organization Costs $ 26. 1650.0 Other Annete $ 27. Total Other Anseta 26. Total Non -Current Aanett (Line 20 + Line 27) 29. Total Assets .(1.1ne 14 + Line 201 $ 3,071 ,836 $ 1,996,038 5,067,874 $5,211,152 d 1.1An11.1tto Apo 1MIIEItS' mum 30. Current Llnb111t1ee 31.. 2110.0 I.unnn 1'nynl►l e 71. 2170.0 Suhncrlber Advnuce rnymente and UcponLte 33. 2130.n Accounts rnynble 34. . 2140.0 Tnxca •I. Other Withholdings 33. 7.150.0 Accrued Expennen 36. 2160.0 Accrued Trues 37. 2170.0 Other Current I.IabLlltles 30. 2180.0 plvldends rnynble 39. Tots'. Current Llnbll1ELee 60. lion -Current Linbllttlee 41. 2300.0 Long -Term Uebt 42. 2400.0 0perntlug Allan.nncen 43. : • 2500.0 Other Num -Current I,Lnbllltle� A4. Total lion-VurreuC hlnbllttl•.n 1,5 • 0►mr.re Entul_ t . AS. 3100.0 Cvvinun Stock - Issued • 5,403,450 196,930 $ 16,715 $ 4., 964 $ 86.001 S 1.6.35 S $ N/A — S N/A SNS $N/A $ 5,709,695 $ N/A 4/. 370U.0 preferred Stark - Issued AAO.}}OO.O *tensor), Stock . t,h. }r,OU.O • lrroprl«tar@' t qull:y 511.75UO.0 .Additional raid -In Cnpltnl 51. 7600.0. • Accumulated Deficit 57. TOTAL Owners' Equity 53. Total I.LnbLlt.tles and Owners' Equity INSTRUCTIONS $ N/A S N/A $ N/A $ N/A • $(498,543) $(498,543) g 5,211,152 I. If Line 43, Other Hon -Current Llnbllities, In significant In ;.mount list the major Items comprising it, and the nmuuaita therein. • 2; 1'urninh pnrticulnrn nn to nny sIgntficmrt contingent assets or liabilities ealsthIg of year end or nny significant change In the flnnncinl condition of the company occurring after the end of the flscn1 year but prior to filing this report In the apace below. 3. List below the total @mount of subscriber Advnnce rnym•±nta, Account 12121.0 and the total nmount of Subscriber Deposits, Account 12122.0 held by you and Indicate If you pay Interest on these nmounta and if so, how.much. 2121.0 $144,205 2122.0 52,725 $196,930 1. STATEMENT OF CHANCES IN FINANCIAL POSITION Financial Resources Were Provided By: From Operations: Net Income (Loss) before Extraordinary Items 2. Extraordinary -Income (Loss) 3. Total Net Profit (Loss) 4. Depreciation & Amortization 5. Funds Provided by Operations (lines 1 to 4) 6. Long -term -debt 7. Equity Investments 8. Other 9. Funds Not Provided By Operations (lines 6, 7, and 8) 10. Total Resources Provided (lines 5 and 9) 11. Financial Resources Were Used For: Additions to fixed assets 12. Reduction of long-term debt 13. Dividends paid or equity withdrawals 14. Investments 15. Other - 16. Total Resources Used (total lines 11 to 15) Change in Working Capital: 17. Prior Years Current Assets 18. Prior Years Current Liabilities 19. Difference (line 17 less line 18) 20. Current Years Current Assets 21. Current Years Current Liabilit`es 22. Difference (line 20 less line 21) 23. Net Change in (line 19 plus line 16 dust *Restated in 1980 Working Capital or ninus.line 22; line -10 minus S (159,492) 12 (159,492) 495,190 - 335,698 15,528 15.528 351,226 S 282,473 4,353 286,826 122,518 *5,753,335 (5,630,81i) 143,278 -5d,09%;66. 5 j7,09;6.95 , • (5,566,417) 64,400 agree with line 23) Balance as previous reported: $5,414,2 Restatement: 339,0 Balance as 'adjusted: $5,753,3 to reclassify charges 4. 13 Statement of Chances In Financial Position Instructions 1. The _following items entered as follows: a. Lines 1, 2, 3 and 4 are the amounts entered on the Statement of Profit and Loss for those items. b. Line 6 is the proceeds of, debt issuance c. Line 7 is the proceeds of stock issuance or other equity investments. d. Line 14 is amounts invested in securities or companies on a long-term basis. e. Line 23 is computed as follows: 1. Add or subtract line 22 from line 19 and enter on line 23; the amount entered on line 23 when added to or subtracted from line 10 shall equal line 16: in no event is the amount entered on line 23 to be entered elsewhere on the form. 2. An amount entered on line 23 that represents a reduction of working capital from the prior year is a resource and when added to the amount shown on line 10 will always equal line 16: A resource, that is a reduction in working capital, is evidenced by line 22 being smaller than line 19; an application, that is an increase in working capital, is evidenced by line 22 being larger than line 19. f. Negative amounts are to be indicated by being inclosed in parentheses. 2. Total Resources Provided, line 10 must equal Total*Resources Used, line 16, plus or minus the Net Change In.Working Capital, line 23. LINE NO. ITEM ACCOUNT N0. . DESCRIPTION DETAILS OF SU1PIARIZED EXPENDITURE ACCOUNTS A SERVICE COSTS 1. 01.1 Salaries and Wages, Officers and $N/A . Directors . 2. 01.2 Salaries and Wages, All Others 3. 02.1 Employee Benefits, Officers and Directors N/A 4. UZ.2 t;mpkyce benefits, All Others 5. (.Ti`il-Fla1ntennnce 6, ILIT J bile and -Site Itentuls 7. lli.1T llicruunve Servtcc 8. 0G.0 Light, (lent 6 rover 9. 0/.0 vchrc c txpenses 10. 11IJ.0 _ Lieut 11. U'1.0 Traver& Entert i1nment 12. TU.0 Dues rind Subscription 13. 11.0 Contributions 14. 11.11 (ru esr.Iunni bervlce 15. JJ.0 'Stationer 6 Supplies 16. I i. 'astnge am re sit 17. 13.0 Advertising 6 Promotion 18. Ib.0 leiepbune 6 lelegruplr 19. TtJ iirlrp Ut' ce xpcnsea 20. lid.11 insurance 21. P).D Provision lur Uuult[ul Accounts 22.oca laxce . 23. 2I.0 . .Franchise, License b Permit Fees 24. 72.0 leehnlcal & Creative SeTace D C ORICINA- SELLING, GENERAL & TION COSTS ADNINISTRAT1VE EXP. $ N/A N/A 845 $ N/A "717.7075- PAYROLL . N/A 12,558 D PAYROLL. & EXPENSES CAPITALIZED $ N/A 8,082 2R,882 ,330 255 226.359 9.533 2.910 851 ,6 .. 7.700 906 25. 26.- 27. 28. 29. 30.• 31. 32. 33. 34. . 35. 36. '4i,u LI lm_raa u v • 24.0 Studio Sets 6 'raps 7.5.0 I'ruunm NaterInl 67Suppl es ---- 26.0flews Services ' 11..vt r;,t ,.E ,# i< v u 0 _� ZW1J 1. Fees Ruya1L•re. --- >p 7 6 178,718 /9 u •arITr& tenscback 1.1121 es 30.y Uverhend Allocations 80.0 Uther Q5,844 .6,862 419,61 j. 7T9,566 _..z SO -Total• { ) 90.0 Co-:_a;,+zec Cost 0(f3et: _ l L i.. J t 63',428 J79, 961 719.566 Totn -- I IISTRUCT I OUS 1. Columns A, II, b C should egret with totals reported on Statement of Profit and Loss. 2. /Amounts appearing In column U ,hall• not be included in column A, B, and C. 3. Meese provide detail' belotir of Overhead Allocations, if any, as provided for In Section 599.40 (J) (5). sCi 1-1 ruktit, ittrnisoun.r.s DEEERMENTS LINE ACCOUNT DESCRIPTION 1-1n,!4 AssetS 1. 1210.0 Lund 29,850 2. i 22EV-1101J1nro 181 067 3. yLiii.-U—ili;iiiI:End SORB • ibi.U---S6WMUT,T-MVIc119 swim AMICC- 1=11111111G 1F YEAR (A) 4. /410---Vlber 2,264,4M rt. 3,222,024 33,99? *Coin! Tma pfla-UT3171b111:1on (1,1Lic_A_DHLIJUP ?) 1. W1212 ltll_toTwent_ena 8. TiTill U.0:::ftptrem Urialuntiun 9.1210.0 Vehlvirs. I • 12/6.U--NiMiati4-171mem 10. 11. fiiTU-Vilitclni, FUE4TUUTTI-Aa • 118kureo_ILI.ne-9 and Line 1U) 12. 1200.0 V.nullnlized LeFFF-Properq-- 13. 12111:=4MWEEETLLEtTIT4E9 14, 11911U Misce oneous EvipmeiX----- 15. TotnITI'md Asset, trutn1 Linee-1-tu-3T-G.Ao 4 .11 ,m_14 AM51TIONN DURINO YEAR (n) —ntrinnum— -THANSITIO ---- MAIM AND AT ENO DEPRECIATION ADJUSMIENTS OF YEAR AND AMORTIZATION CO 364 135,923 11,n4 253,971 130,446 438 3 743 0 4241) 19,769 300) 5,483 19,769 (7,787). $ F9.850 181,0.67 98.753 1,093.3V 3,475,99 864,94V $ XXXXXXXXX 20,174 142,42 2 4 3 f ki;:; a.g.:H 9,164 • 2,753 32,740 8,306 41'046 ZUI q 16. • 1100.0 t:Mnntrurt•tvtt Work lis' . Vrul;rcts 17: ' iMtiT—A-f ustpTutp In! 151 !1.0 1' 1 n,it M) um tment Cxcen n _ FoIr Vnttitq 19. 1520.1. rinit Adjustment f.uodu111 2.U. . �+ ;nI—PTn.E 1CiT u:� meutK T.1ne I1 T Line 191 21.. Tnt:nli lnnt: Ar.nein i. ti Eine ] 6 .1 I.Iits 201. 22. Int:nMpible Annr.tn 2). 1(I I.0 Frnnej,lren, Ltccneen . and rermltn 26. li,17 V Utiirr 1tatt:niipFle Annetn 25. l �j .0 l:u uTT1 26. . 'Pta:n7 n1.nnA117117-7Csnctn [LIMP 2.1 1• ' Line 24 1- Line 251 27. I1cte' rtes 1: ior.Ben 20. . j6Z1_,U Stnrt-up Cugte 29. 1622.0 Unnmurtized Ucbt 30. 162).0 tither Ue(erred Chntjen 11. 'Intnl Ucrerred Chargee 'Line 21I—l— .1.iur_i9 • . Llur 101 3,743,170 2,235,499 282,473 191 (15,528). 4,010,11 2,235,69 5 938,279 3 239,652 st, 414 «t I'IArrf, ltrr rwIIILFS is DEFEllttrtiTS F.XVI.At1ATIor1 OF tin -RIES LIRE Ito: I n5Ttlu(,T JUtt! 1. Thr hnlnnra nt the beflnnlug of the year. column A should agree with the cloning balances on lnnt year's report; the bnInuce nt the end of the yenr tatould nt;rie with cloning balances on this yent'e bnlnnre Albert. 2. Ammentn reported In coltmnt p, t:rnnnfers and nd)untmeittn, nhould be expinlneJ.ln the space provided above.. 7. The nmotntl:n shown In column E and F must ngrce with nmounte shown on the bnlnnce sheet. 4. Unnmortl-ed Debt F.xpcnne is nmortIzed by chnr/.lug "interest expenne", this will be reflected on thin schedule by eutering this nmount in Colttnut D. r• I,lnr• I eser1pC1nn 1 Moles 7 . t►•..•.1 t.1 Aff111ate:1 t>,.ed to Director! or Officers-. /6 Al l milers 5 'total Ill.t.r•n G t►anoln • 1 +i}...1) to Aril11nten 11.o.‘1 to Directors. or Officers 9 A11 Miters 1 tt •1.,1:11 t Ponds . Il (bLlp,Ittun.lm Cnpltnll7n ed 1•eaes 17 Unnmumized• I'remlun. lr ULi;count c Untstne.ling Del►t 17 Tp.Cn1IJ:tw-Cerm_ebt. • (TotnU 1 nT .I.tnen 5, tri, 11 ;'12) 116 Interest to raid 15 T(JI'AI. (Line 17 1 Line 16) 1II STI:UCT1lf15 Lunt, Tenn Debt • .A. I•A VIICl1' 1. Ittetininr the nmount of princlpnl and interest to be pn111 on all long-term debt. 2. Do 1Ine 12 and 13 determine the amount to be amortized yearly and enter in the npproprinte column. 3. eros^ -root all tntnle.. 1be total nrnuunt of lump, -tens debt entered on tine 13, column "1'" r;lml l nrree with the total amount 'of long-term debt entered on 1111! lil of the bnlnnce sheet. . 1-H411%•l' •. • 11ur. Illlhtit 3 Yearn (II) •.. 6 Years (t:) .�.• r._. 1hire" Man • 5 Years ____VL.--. T(rI'AI. v) _.— ••_ . 7. Years .__. • (A) 5 • Years ' V.) • N /A t • • s $ S s . 1. Ittetininr the nmount of princlpnl and interest to be pn111 on all long-term debt. 2. Do 1Ine 12 and 13 determine the amount to be amortized yearly and enter in the npproprinte column. 3. eros^ -root all tntnle.. 1be total nrnuunt of lump, -tens debt entered on tine 13, column "1'" r;lml l nrree with the total amount 'of long-term debt entered on 1111! lil of the bnlnnce sheet. Line Operatiff Allowances Uperntlap Allowances Account Posher (A) (n) (t) (7) Pnlance Additions Deductions nnlnnce fcr,lnnl.nl Outing During nt End or Tear Year Yenr of Tent' ' 1. I'rnperty Insurgence Allownnce 2410.0 • 2. injury m9t Inrnnge Allownnce 242U.0 3. tcnnion end ncnerit Allownnce 26)0.0 • 4 • • I1lncei lmnioun (tperntlrg Allownnce 2640.0 .5.: 6. 7.. 8. 9. 10. : Totnl 111ncelinncoun 0perntLnp, Allownnce (line 4 n. to 4 d.) Total t)perntln . Allownnce 24Uu.0 N/A 111sLnucTloS 1. Enter nliove nil informntlon requested roc operating Alluwnnr.•n as entered ou the nccoUntr provided for In the WAS. 2. Thr totnl shown nn lime ., column 0, nhnll equnl the nneuunt entered on line 42 or the nnlnnce Sleet..: 3. If you I,nve entnblinhed one or more Mtncellnneoun opernting nllownncee llrt their tltlen on line nbove, end briefly describe below their nnture end purpose. _Aitr;ts:t ,` isrYta- �•e5:.:,r. �. `S. \.�£:f uw'x t7 S:Si . ?ART :tt Consol{dated '_na::ci-a'• _ Stace_e::=s Ins t='ec:i ons 1. Complete this section criv if :oi. have a:: ecui_v interest cf 20. or more in another ccmnanv. Before preparing this section please read Sectio: 599.83 of tha LAS 71 N/A 2. The account balances and transaction totals included in Section TI of this report shall be adjusted !or inclusion in this Section only to the extent necessary to prepare consolidated financial statements and e= to reflect investments using the equity method. 3. Equity investments in another company shall be accounted for using (i) the cost method for investments o: less than 207. and (Li) the equity method for investments of between 20: to 50% and (iii) the .reparation of consolidated financial statements for invest=encs of core than 50. Ccnso'__cac_=d ?ref"_t er Lcss 1. .Ooer .:i Reve=es Total Cle.Televisicn Revenue 2. Other Operating Revenues [Itemize on Line 16] 3. Total Operating Revenues 4. Oeeracinz Exoerses 5. Total Cable Television 'Expense 6. Other Operating Expenses (Itemize cn Line 16] 7. Tccal Operating Expenses 8. Total Operating Profit or Loss 9. Other Income 10.. Cter Expenses 11. Total Other Inccwe or Expense 12. Total Profit or Lcss Before Income Taxes :3. Total. Income Taxes 14. Extracrdinarp Income (Losses) 15. Total Profit (Loss) • Instructions $ N/A 16. Iterli=e, by:major groups or categories, the amounts shc:.Zi on- line 2 and/or line. 6 in the § pace below. 23 Consolidated Balance Street N/A 1.. Cu=rant Assets 2. Plant Assets 3. Other Assets 4. I: ves encs 5. 'total Assets E. Current Liabilities . ong ie = Debt 3. Other Liabilities c, Minority Interest Ssidia=ies 10. Total Liabilities 11. £quit] . 12. Total Liabilities r ST .UC IONS Assets Liabilities & Evz4t7 4z and Equity The accos=ts shown i= Section 599. a g e .era1 guide '_: pr a 7 a_ i=' this 2. Tha =ounts shu= shall be =et o $ 32 of the i:AS should be used as arty allo ance 3. The a=cct :t shown r_ li=e 5 s`aLl e^ual hie `c•.= Cir: SOLIDArED STATEMENT OF CHANGES IN FINANCIAL POSITION Financial Resources i4ere Provided By: From Operations: 1. Net Income (Loss) before Extraordinary Ite::s 2. Extraordinary Income (Loss) 3. Total Net"Profit (Loss) '4. 'Depreciation & Amortization '5. Funds Provided by Operations (lines 1 to 4) b. Long—term debt 7. Equity Investments 8. Other 9.. Funds Not Provided By Operations (lines 6, 7, and 8)' 10. Total Resources Provided (lines 5 and 9) Financial Resources Were Used For: 11. Additions to fixed assets 12. Reduction of long—term debt 13. Dividends paid or equity withdrawals 14. Investments 15. Other 16. Total Resources Used (total lines 11 to 15) Change in Working Capital: 17. Prior Years Current Assets 18. Prior Years Current Liabilities 19. Difference (line 17 less line 18) 20. Current Years Current Assets 21. Current Years Current Liabilities 22. Difference (line 20 less line 21) 23. Net Change in Working Capital (line 19 plus or minus line 22; line 10 minus line 16 must agree with line 23) " -:24 N/A $ • 25 Consolidated Statement of Changes in Financial Position 'Instructions 1. The following items entered as follows: a. Lines 1, 2, 3 and 4 are the amounts entered on the Statement of Profit and Loss for those items. b. Line 6 is the proceeds of debt issuance c. Line 7 is the proceeds of stock issuance or other equity investments. d. Line 14 is amounts invested in securities or companies on a long—term basis. e. Line 23 is computed as follows: • . 1. Add or subtract line 22 from line 19 and enter on line 23; the amount entered on line 23 when added to or subtracted from line 10 shall equal line 16: in no event is the amount entered on line 23 to be entered elsewhere on the form. 2. An amount entered on line 23 that represents a reduction of working capital from the prior year is a resource and when added to the amount shown on line 10-1 always equal line 16: A resource, that is a reduction in working capital, is evidenced by line 22 being smaller than line 19; an application, that is an increase in working capital, is evidenced by line 22 being larger than line 19. f. Negative amounts are to be indicated by being inclosed. in parentheses. 2. Total Resources Provided, line 10 must equal Total Resources Used; line 15, plus or minus the Net Chance In Working Capital, line 23. Name of Franchise or Area Served ATTACHMENT 1 Number of Subscribers 1. City of Ithaca 6,397. 2. Town of Ithaca 2,593 3. Village of Cayuga Heights 955 4. Village of Candor 302 5. Town of Candor N 178 6. Town of Caroline 409 7. Town of Danby 155 8. Town of Dryden 1,329 9. Village of Dryden 516 10. Village of Groton 768 11. Town of Groton 152 12. Village of Lansing N 1,159 13. Town of Lansing .967 14. Town of Newfield 737 15. Town of Newark Valley .243 16. Village of Newark Valley N 244 17. Village of Trumansburg 367 18. Town of Ulysses 198 19 Town of Freeville 126 TOTAL 17,795 Estimated Miles Percentage of Of Plant Penetration Completed 59.2% 76 miles 52% 53, miles 712.% 17 miles 74.4% 6 miles 98.8% 6 miles 77.8% 17 miles 79% 6 miles 65.1% 682 miles 66% 9 miles 76% 10 miles 78% 10 miles 63.8% . .12 miles 73.4% 8 -miles - 75.9% 19 miles 81% 8 miles 82% 7 miles 45.7% 13 miles 50.5% .10 miles 61 .8% 31/2 miles 359.5 New York State Commission on Cable Television Form AFR - 1 Annual Financial Report for Period'Beginning July 1 19 78,. and Ending June 30 , 1979 Name CERACCHE CABLEVISION, DIVISION OF AMERICAN TELEVISION AND COMMUNICATIO Full Name of Cable Television CORPORATION Company Address 20 Inverness Place East Englewood, Mailing Address Colorado 80112 . City • (303) 773-3411 Telephone No. (Include Area Code) State Zip Code 1 Notice This report shall be filed with the Commission by every cable television company required to maintain records and adopt the accounts prescribed in the Uniform Account- ing System,•and may be filed by any cable television company which voluntarily uses the accounts specified in the Uniform Accounting System. . This report shall be filed with the Commission within 90 days of the end of your fiscal year. Part I of this report consists of questions of a general informational nature; Part II consists of financial statements and schedules based on the accounts specified in the UAS: Part III consists of consolidated financial statements and shall be completed by any company having an ownership interest of 207 or more in another company. General Instructions 1. All entries are to be in permanent form. Decreases are to be shown enclosed in parentheses. 2. The words "not applicable" are to be shown on - any schedules or in reply to any question which does not apply to respondent. 3. Additional explanations, schedules or statements may be attached to the back of this form by respondent for the purpose of further explanation if insufficient space has been provided on this form. -The additional explanations, schedules or statements shall be cross- referenced to the question, statement or schedules to which they are related. 4. Amounts reported on this report shall be rounded to the nearest dollar. 5. If you require assistance phone # (518) 474-2471 or write New York State Commission on Cable Television, Alfred E. Smith Bldg., Albany, New York 12225. 4-1 PART I 1. To Whom Should Correspondence And Inquiries Concerning This Report Be Addressed? David E. O'Hayre 20 Inverness Place East Name Mailing Address Controller Englewood, Colorado, 80112 Title City State Zip Code (303) 773-341T Phone Number [Include Area Code] 2. List•below the name of each locality granting a fran • chise 'and also each geographic area you serve in which a franchise has not been granted and show the Number of Subscribers for each area served, computed as of the end of your. fiscal year in the same manner as for the Federal Communications Commission. Indicate operations in a non -franchised area by placing the letter "n" after the area served. Name of Franchise or Area Served 1. See Attachment #1 2. 3. 4. 5.. 6. 7. 8. 9. 10. Estimated Number of Percentage of Subscribers Penetration -At any time in the reporting period did you own or control 20% or more of any other company, or did another company own or control 20% or more of your company? X Yes No If yes ,' ,list the companies below. A. Name of Company 1. • 2. . 4. 5. 6. 7. 8. 9. 10. B. Name of Company 1. 'American Television and Communications corporation 2. 3. Ceracche Cablevision is an Operating Division of 4. ATC 5. 6. percentage Of Ownership Or Control Held B You In Another Company Percentage of Ownership or Control Held By Another Company In You 100% y 8. 9. 10. CERTIFICATION I certify that I have examined this report and that all statements of fact contained therein are true, com- plete, and correct to the..best 6f my knowledge, informa- tion, and'belief and that nothing material has occurred that would require ex lanatio.. that has not been explained. Controller David E. O'Hayre Printed Name of Signer September 28, 1979 Date Signed Line No. Account No. PART II �tiitomen t of Profit and Loss Nvnc Amounts 1. Operating Income . 2. 4110.0 Installation Income $ 111,609 3. 4120.0 Regular Subscriber Charges $ 1 249- 354 ' 4. 4130.0 Per Program or Per Channel Charges •$ 255,657 5. 4140.0 Other Subscriber Revenues $ N/A 6. Total Subscriber Revenues $ 1,616,620 7.. 4210.0 Advertising Income $ . N/A 8. • 4220.0 Special Service Income $ N/A 9. : 4230.0 Other Non -Subscriber Revenues $ 27,303 10. Total Non -Subscriber Revenues $ 27,303 • 11. Total Operating Income 12. Cost of Operations 13. 5100.0 ' Service Costs $ 372,312 14. • 5200.0 Origination Costs $ 69 15. 5300.0 • Selling, General and 6$],906 Administrative Expense $ 16. 5400..0 Depreciation and Amortization $ 410,3 12 $ 1,643,923 17.. Total Operating Costs 18. Total Operating Profit or (Loss) (Line 11 - Line 17) • 19: Other Income and Expenses 20. Other Income 21. 6110.0 Interest 22. 6120.0 Dividends 23. 6130.0 Other 24. Total Other Income 25. Other Expenses 26. 27. 28. 6210.0 6220.0 29. Total Other Income or Expenses (Line 24 - Line. 28) 30. Profit or (Loss) Before Taxes provision for Fecieral and State Income Taxes 31. Interest Miscellaneous Total Other Expense 32, 7100.0 Federal Income Taxes $ 307,474 $ 307,474 $ 1.,470,599 $ 173,324 (134,150) 33. 7200.0 State Income Taxes. 34. 35. Total Profit'or Loss Before. Extraordinary Items (Line 30 - Line 34) Total Income Taxes Payable 36. 8000.0 Extraordinary Items* 37. Total Profit or Loss (Line 35 - Line 36) * 'Please provide schedule of items and amounts. 12,600 12,600 $(146,750) $(146,750) BALANCE SIIF:17,T ASSETS Line No. Account No. . Name 1. Current Assets 2. 1110.0 Cash 3. 1120.0 • Short-term Investments 4. 1130.0 Accounts Receivable - Trade $46•,172 5. 1139.0 Less: Allowance for Doubtful Accounts [$ 5,829 I 6. Accounts Receivable - Net 7. 1140.0 . Other Receivables $ 1,244 8. • 1149.0 Less: Allowance For Doubtful Accounts. 9.. . Other Receivables - Net $_1,244 . 10. 1150.0 ; Inventory . $ 20,000 . 11. 1160.0 BroacicaSEitt Rights - $ 12. 1170.0 . Prepaid Expenses . $ 3,576 13. 1180.0. - Other Current Assets' $ - • • 14. Total Current Assets '. Ainounts __I $ 57,355 • $ 40,343 $ 122,518 15. Plant Assets. 16. 1200.0 Fixed Assets $ 3,743,170 17. . 1300.0 Construction Work in Progress $ 18. 1500.0 Plant.Adjustments $ 19. 1400.0 Less Allowance for Accumulated Depreciation and Amortization ($ 686 903 ] 20. Total Plant Assets 21. Other Assets 22. 1610.0 Intangible Assets 23. 1620.0 Deferred Charges 24. 1630.0 Long Term Investments 25. 1640.0 Organization Costs $ 26. 1650.0 Other Assets $ 27. Total Other Assets 28. Total Non -Current Assets (Line 20 + Line 27) 29, Total Assets (Line 14 + Line 28] $ 2,235,499 $ 3,056,267 $ 2,235,499 $ 5,291,766 .$ 5,414,284 r LIABILITIES AND OWNERS' E UITY 30. Current Liabilities 31.. 2110.0 Loans Payable $ 5,172,564 32. 2120.0 Subscriber Advance Payments and Deposits $, 148,178 33. 2130.0 Accounts Payable $ 19,009 34.. 2140.0 Taxes & OtherWithholdings $ 858 35. 2150.0 Accrued Expenses $ 73,675 36. 2160.0 Accrued Taxes $ 37. 2170.0 Other Current Liabilities $ 38. 2180.0 Dividends Payable $ 39. - Total Current Liabilities 40. Non -Current Liabilities 41. 2300.0 Long -Term Debt 42. 2400.0 Operating Allowances - $ N/A 43. 2500.0 clther Nati-Ctitriit Liabilities $ N/A 44. Total Non -Current Liabilities 45. Owners' Equitx ; ., 46. ,,..3100.0 Common Stock - Issued N/A N/A 47. 3200.0 Preferred'Stock'- Issued 48. 3300.0 Treasury Stock 49. ' 3400.0 Proprietors' Equity 50'. 3500.0 Additional. Paid -In Capital 51. 3600.0 Retained Earnings 52. TOTAL Owners' Equity 53. Total Liabilities and Owners' Equity $ N/A s N/A $ N/A $ N/A $ N/A $ N/A $5,414,284 •INSTRUCTIONS 1. If Line 43, Other Non -Current Liabilities, is significant in .:.mount list the major items comprising it, and the amounts therein. . 2. Furnish particulars as to any significant contingent assets or liabilities existirig at year end or any significant change in the financial condition of the company occurring after the end of the fiscal year but prior to filing this, report in the space below. , 3. List.below the total amount'of subscriber Advance Payments, Account #2121.0 and the total amount of Subscriber Deposits, 'Account #2122,.0 held by you and indicate if you pay interest on these':amounts and if so, how much. ?121,0 2122.0. 117,344 30,834 148,178 12 STATEMENT OF SOURCE AND APPLICATION OF FUNDS LINE . Source of Funds 1.InGre.ase in Loans. Payable .$ 468,783 2. Depreciation. &,Arrjortization , , , , . .: _ $ 466,367 3. $ 4 $ 5. - .$ 6. $ 7. 8. $ 9. .. $ 10. $ 11. $ 12. .Total Available Funds $ 935,150 Application of Funds 13. Los from,Operations , , , . . . , , , . . .$ 134,150 14. Additions .to. Property,.Plant & Equipment .. . _ $ 465,408 15. Additions ,to. Franchise Cost , , , , . , , . $ 280,208 16. Increase in Working Capita) $ 55,384 17. 18. $ 19. $ 20. $ 21. $ 22. $ 23. $ 24. Total Applied Funds $ 935,150 Increase/Decrease in Working Capital Components 25. Increase in .Cash $ 25,811 26. Increase in Accoents Receivable $ 34,644 27. Decrease in Prepaid. Expenses. . . . . . . _ $ (7,984) 28. Decrease in Subscriber Advance Payment,&,Deposits $ 39,651 29. Increase in Accounts Fayab)e $ (18,148) 30. Increase in Taxes Withheld., . . . . . _ . . _ $ (109) 31. Increase in Accrued, Expenses . ... . . . . . $ (18,481) 32 $ 33 _ $: 34 $ 35 $ 36 37. Total Increase/Decrease in Working . ,Capital Components $ 55,384 13 STATEMENT OF SOURCE AND APPLICATION OF' FUNDS. INSTRUCTIONS 1. Total available funds, line 12, must equal total applied .funds, line 24. 2 The following will be.individually listed on: the scheduler a. Net -change in working capital. . b. Profit or loss arising before.extra.ordin:ary items. :c. Extraordinary gains or losses. d. Working capital provided by depreciation, and amortization. e. The proceeds of stock issuances. f. The proceeds of new debt incurred. g. Significant increments of reduced debt. h.. Acquisition of interest in parent, affiliated or other companies. i. All significant capital applications including dividends. and other payouts and acquisition of treasury stock. j. All other items of significance not listed above shall be grouped or otherwise consolidated where possible. 3. Indicate assets and liabilities which accoun for net change in.working capital. 4. If space provided is insufficient, please at.tach,addition.al. sheets. i - DE'rAT.T,S OF SUMMARIZED I•:XI'I:NI) ['TIT RE ACCO11N'I's A B LINE. ACCOUNT NO. 'DESCRIPTION SERVICE COSTS • ORIGINA- TION COSTS SELLING, GENERAL & ADMINISTRATIVE EXP. PAYROLL & EXPENSES CAPITALIZED 01.1 Salaries and Wages, Officers and Directors • $ WAN/As N/A 1U4,/26 N/A s N/A • 01.2 Salaries and Wages, All Others 1812283 N/A N/A • 02.1 Employee Benefits, Officers an 'Directors 02.2 Employee Benefits, All Others 33,575 14,496 677---iaintenance .58,998 69 04.0 Pole and Site Rentals 51,857• 2/ , 1 50 1)5 .0 Microwave Service. (7).0 Light, ITeat & Power 24.0 __ 19,192 7,469 288 q/L1L Vehicle Lxpenses War—tent 357 2,793 3_..8h1 5,633 ' 1.944•• 14? 09.0 Travel & Entertainment I'0.0 Dues and -Subscription 11.0 Contributions 11.0 Processional Service Stationery Supplies /g9b/. . 14.0 Postage and Freight 1,814• 1? 673 19,768 15.0 Advertising & Promotion 10.0 Telephone & Teiegraph 17.0 un ry ice xpenses 1 .10a. • 5.,808 2 I877Insurance '.O 'rovision or lou t u ccoun s , 277---5771—Taxes ..- , . 51 .466. 47 .41.0 • { Yrancli se, License & Permit- Peesr „ . 2'2.0 Technical & Creative•Service .� U film h:^:�C1tSe 24.0 Studio Sets & Props. 25 .0 Urogram Material & Su TI le; N: ecaS Services 2T.0 Panic1pailon LxpC1SSC 28-.0 Fees & KoyalLies 29.0 Tariff & Leaseback Charges 30.0 Overhead Allocations Other 30,287__,- 714-5880.Q Sub -Total 426,747 69 681,506 90.0 ' Cap__a - ec Cost Of{s e' ^ _7.__54 435 ) C_________=_._. � Iot1l 372.3.12__J ..,.._ INSTRUCTIONS 1. Columns A, B, & C should agree with totals reported on Statement of Profit and Loss. 2. Amounts appearing in column D shall not be included in column A, 13, and C. 3. Please provide details below of Overhead Allocations, if any, as provided for in Section 599.40 (J) (5). PLANT, INTANGIBLES AND DEFERMENTS .AMORTIZATION LINE ACCOUNT DESCRIPTION BALANCE BEGINNING OF YEAR (A) • ADDITIONS DURING YEAR (B) 11171TERE • (C) AANSFER • AND ADJUSTMENTS (D) t ,1 AT END OF YEAR (E) 1 IP 1 DEPRECIATION ANI) (F) • Fixed Assets 1. 1210.0 .Land $ 29,850 $ $29,850 . xxxxxr.Yxx 2. 1220.0 Buildings • 3. 177,007 8M 2 U 4,060 073 181,067 98,39 957,623 2,264,401 11,009 510,191 1230.0 Head-En 4. j241.0 Subscriber Devices 5. Other 1242.0 6. Total Trunk and Distribution (Line 4 and 1.tne 5) • 212'3 171 2„841,529 241,222 380,495: 12 512 2 587 23 494 3,222,024 44,964 .33 992 85,463 4 93/ 14,073 7. 1250,0 Test Equipment and Tools 8. -3?_,392 10,405 61,969 1260.0 Program Origination 9. 1270.0 Vehicles 0. 1276.0 Furniture and Fixtures 1.• • Total Vehicles, Furniture 36.590 8 393 4,558 and44,983 Fixtures (Line 9 and Line 10) 2. 1280.0 Capitalized Lease . 98,559 31 ,887 • 130,446 Property 3. 170.0 I,' ld gch InprovemenLs 4. 1299.0 Miscellaneous Equipment 1,18-8 1,250 '•/c 2,438 5. Total Fixed Assets ' (Total Lines 1 to 3, 6 to 8, 11 to 14: 3,277,762 ,,,.; r 464,408 3,743,170 30 16. 17. 18. 19. 20. • 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 1300.0 ' Construction Work in Progress Plant Adjustments• . 1.510.0 • Plant Adjustment Excess Fair Value 1520.0 Plant Adjustment Goodwill 'notal Plant Adjustments lLine 1 Line 191 ' - Total Plant Assets Line 15 + Line 16 + Line 201 3,277,762' 2,007,776 455.408 227,723 3,743.170 2,235,499 •545,398 141,505 Intangible Assets . 1611.0 Franchises, Licenses and Permits 1612.0 Other Intangible Assets • 1.13.0 Goo.w ota Intangi e ssets ine Line 24 + Line 25] • Deferred C arges _ 1621.0 Start-up Costs 1622.0 Unamortized Debt 1623.0 Other Deferred Charges Total Deferred Charges jiinc 2B + Line 29 + Line 101 1 PLANT INTANCIBLES & DEFERMENTS- EXPLANATION EFERMENTS E, XPL ANATION Or , ENTRIIaS LINE NO: INSTRUCTIONS 1. The bnlnnce at the.beginning of the yeni, column A should agree with the closing balances on lest year's report; the balance at the end of the year should £sgree with closing bnlances.on this year's balance 'sheet. 2. Amounts reported in'column D, trnnsfers and adjustments, should be explained in the space provided above. 3. .The amounts shown in column E and V must agree with amounts shown on the balance sheet. 4. Unnmortized Debt Expense is amortized by charging "interest expense", thin will be reflected on this schedule by entering this amount in Column D. line Description 1 Notes 2 Owed to Affiliates • 3 Owed to Directors or Officers All Others 5 Total Notes 6 Bonds 7 Owed to Affiliates 8 Owed to Directors or Officers 9 . All Others • 10 Total Bonds 11 Obligation on Capitalized Lenses 12 Unamort.ized Premium & Discount cn Outstanding Debt 13 Total Long -Term Debt (Total of Lines 5, 10, 11—+12) 14 Interest to Be Paid 15 TOTAL (Line 13 + Line lei) . INSTRUCTIONS Long -Term Debt 1. Determine the amount of principal and interest to bb paid on all long-term debt. 2. On line 12 and 13 determine .the amount to be amortized yearly and enter 1.n the appropriate column. 3. Cross -foot all totals. The total amount of long-term debt entered on line 13, column "F" shall agree with the total amount of long-term debt entered on line . 41 of the balance sheet. �7,11L? li MEM? Min 5Ydarb (cl $ TOTAL (l') $ 2 Years • (A) .Wll:�l.l 3 Years (11) ► Yearn (C) 3 ‘idars (Ii) $ $ $ $ NOT APPLICABLE 1 $ $ $ 1 $. $ $ 1. Determine the amount of principal and interest to bb paid on all long-term debt. 2. On line 12 and 13 determine .the amount to be amortized yearly and enter 1.n the appropriate column. 3. Cross -foot all totals. The total amount of long-term debt entered on line 13, column "F" shall agree with the total amount of long-term debt entered on line . 41 of the balance sheet. Operating Allowances_ Account Line O eratin Allowances • Number .1 Property Insurance Allowance 2410.0 2 Injury and Damage Allowance 2420.0 3 Pension and Benefit Allowance 2430.0 4 ,Miscellaneous Operating Allowance 2440.0 a. b. c: d. 5 , Total Miscellaneous Operating Allowance [line 4 a. to 4 d.] 6 Total Operating Allowance 2400.0 INSTRUCTIONS (A) (13) Balance Additions Beginning During of Year Year (C) (D) Deductions Balance During at End Year • of Year Not Applicable 1. Enter above all information requested for. Operating Allowances as entered on the accounts provided for in the UAS. 2. The total shown on line'6,•column D, shall equal the amount entered on line 42 of the Balance Sheet. 3. • If you have established one or more miscellaneous operating allowances list their titles on line,4 above, and briefly describe below their nature and purpose. 21' PART III Consolidated Financial Statements See Attachment 12 ATC Consolidated Financial Statement Instructions 1. Complete this section only if you have an equity interest of 2010 or more in another company. Before preparing this section please read Section 599.83 of the UAS. 2 The account balances and transaction totals included in Section II of this report shall be adjusted for inclusion in this Section only to the extent necessary to prepare consolidated financial statements and or to reflect investments using the equity method. 3. Equity investments in another company shall he accounted for using (i) the cost method for investments of less than 20% and (ii) the equity method for investments of between 20% to 50% and (iii) the preparation of consolidated financial statements for invesi,Aents of more than 50%. Consolidated Profit or Loss See Attachment r2 1. Operating Revenues Total Cable Television Revenue 2. Other Operating Revenues [Itemize on Line 16] 3. Total Operating'Revenues 4. Operating Expenses 5. Total Cable Television '.Expense - 6. Other Operating Expenses [Itemize on Line 16] 7. Total Operating Expenses 8. Total Operating Profit or Loss 9. Other Income 10. Other Expenses . 11. Total Other Income or Expense" 12. _Total Profit or Loss Before Income Taxes 13. Total Income Taxes 14. Extraordinary Income (Losses) 15. Total Profit (Loss) Instructions 22 16. Itemize, by major groups or categories, the amounts shown on line 2 and/or line 6 in the space below. Consolidated Balance Sheet See Attachment #2 Assets 1. Current Assets $ 2 Plant Assets $ 3. Other Assets $ 4. Investments' $ 5. Total Assets Liabilities & Equity 6. Current Liabilities 7. Long -Term Debt 8. Other Liabilities . Minority Interest in Subsidiaries 10. Total Liabilities 23 11. Equity $ 12. Total Liabilities and Equity $ INSTRUCTIONS 1. The accounts shown in Section 599.32 of the UAS should be used as .a general guide in preparing this statement. 2. The amounts shown shall be net of any allowance. 3. The amount shown on line 5 shall equal the.amount shown on line 12. CONSOLIDATED STATEMENT OF SOURCE AND APPLICATION OF FUNDS See Attachment #2 LINE Source of Funds 1 2. 3. 4. 5. 6. 7. 8. 9.. 10. 11. 12. Total Available Funds Application of Funds 13' 14. 15 16. 17 - 18 19 20 21 22. 23. 24. -Total Applied Funds Increase/Decrease in Working Capital Components 25. 26. 27. 28 29. 30. 31. 32. 33. 34 35. 36. 37. Total Increase/Decrease in Working Capital 24 25 • STATEMENT*OF SOURCE AND APPLICATION OF FUNDS INSTRUCTIONS . z. 1. Total available funds, line 12, must equal total applied funds, line 24. 2. The following will be individually listed on the schedule.: a. Net change in working capital. b. Profit or loss arising before extraordinary items•.. Extraordinary gains or losses. d.. Working capital provided by depreciation and amortizatiori. e. .The proceeds of stock issuances. f. The proceeds of new debt incurred. g. Significant increments of reduced debt. • h.. Acquisition of interest in' parent, affiliated or other companies. i. All significant capital applicationsincluding dividends and other payouts and acquisition of treasury stock. j. All other items of significance not listed above shall be grouped or otherwise consolidated where possible. • 3. Indicate assets and liabilities which account for net change • in working capital. 4. If space provided is insufficient, please attach additional sheets. ATTACHMENT nl (Page 2) Name of Franchise Number of Estimated Percentage or Area Served Subscribers of Penetration City of Ithaca 6,470 • 71% Town of Ithaca 2,767 63% Town of Dryden 1 ,552 75%•- Town of Newfield 709 80% - Town of Lansing 930 77% Town of Ulysses 178 48% Town of Caroline 386 •. 83% Town of Danby - N 142 25% Village of Cayaga Heights 967 82% Village of Candor 248 82% Town of Candor - N 210 82% Town of Newark Valley - N 107 66% Village of Newark Valley 319 87% Town of Groton 113 76% Village of Groton 737 78% Village of Lansing 1,185 65% Village of Dryden 452 62% Village of Freeville 123 71%_ Village of Trumansburg 342 48% Total 17,937 • Attachment #2 AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION CONSOLIDATED BALANCE SHEET ASSETS (Unaudited) Current assets: Cash Trade accounts receivable, less allowance for doubtful accounts (June 30, 1979 - $435,000, June' 30, 1978 - $366,903) •Maintenance and operating supplies Prepaid expenses and other Total current assets Investment in -and advances to unconsolidated affiliates (Note 1) Property, plant and equipment, at cost: _Distribution systems including land Other equipment _Less accumulated depreciation Net property, plant and equipment Franchises, at cost Less accumulated amortization Net Franchises Other: Deferred development costs, less accumulated amortization . Deferred debt issuance expenses, less accumulated amortization Other assets Total Assets June 30, 1979 737;000 2,100,000 776,000 995,000 ..4,608,000 6,300,000 181,903,630 10,778,370 - 192,682,000. 64,021,000 128,661,000 46,473,000 14,100,000 32,373,000 5,900,000- 417,000. ,900,.000- 417,000 -649,000 $178,908,000 June 30, 1978 13,308,098 1,29.1,006 775,748 1,039,555 16,414,407 944,816 148,997,730 8,019,580 157,017,310 52,287,463 104,729,847 44,657,956 12,197 ,725 32,460,231 • 5,960,712 500,182. 471,937 S 161,482,132 AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION CONSOLIDATED BALANCE SHEET_ LIABILITIES AND SHAREHOLDER'S EQUITY • (Unaudited) Current liabilities: Accounts payable Federal and state income taxes payable (Note 3) Accrued interest payable Other accrued liabilities Subscribers' advance payments Lcnc-term debt die within one year Total current liabilities Lonc.-ter;; debt due after one year (Note 2) Total liabilities Deferred income taxes (Note 3) Charge in lieu of taxes (Note 3) Payable to Time, Inc. Minority interest • Shareholders' equity (Note 4): Common stock - $.75 par value Authorized - 5,000,000 shares: Issued - June 30, 1978, 3,925,402 shares Capital in excess of par value Common stock held in treasury, at cost (10,031 shares) Common stock held in escrow, June 30, 1978, 25,000 shares Retained earnings Total shareholders' equity Total Liabilities and . . Shareholders' Equity. -June 30, June 30,• .1979 1978 $ 5,671,174 $ 2,294,355 485,000 1,387,912 1,166,000 822,344 5,098,000 4,765,226 4,408,000 4,122,741 6,142,000 6,043,122 23,870,17T 18,435,700 49,430,000 73,196,500 73;300,174 91,632,200 12,620,600 10,959,000 3,353,000 . — 12,500,000 485,000 175,052 1,000 .2,944,052 .40,334,226 34,235;274 36,313;000- 76,648,226 $178,908,000 (49,999) (445,416) 22,031,969 58,715,880 $161,482,132 AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS (Unaudited) Year Ended June.30, .June 30, 1979 1978 Subscribers: 705,865 583,775 Beginning of period 96,049 .122,090 Increase End.of period 801,914 .705,865 Revenues: Service - Basic CATV - Pay TV - Microwave Other Operating costs and expenses: Operating expenses Selling, general & administrative Operating cash flow Other income and expenses: Depreciation and amortization .Interest expense Gain on sale of assets Income before income taxes. Provision for income taxes Net income Common stock dividends Retained earnings beginning of period Retained earnings end of period -$69,656,212 22,242,761 1,643,425 4,653,263 98,195,661 31,015,672 22,882,083 53,897,755 44,297,906 $57,979,975 7,044,352 1-,414,310 3,524,097 69,962,734 19,843,901 16,083,432 35,927,333 34,035,401 14,988,681 12,729,479 5,512,279 5,778,320 __ . (1,130,000) 20,500,960 17,377,799 23,796.946 16,657,602 8,714,360 6,496,000 15,082,586 10,161,602 (801,555). (781,469) 22,031,969 12,651,836 $36,313,000 S22,031,969 See. accompanying notes. • _z AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION - CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION (Unaudited) Source of funds: Current operations: Net income Items not affecting working capital: Depreciation and amortization Deferred income taxes Charge in lieu of taxes Gain on sale of assets Other property dispositions Total provided by operations Advances from Time, Inc. Proceeds from sale of subsidiary Proceeds of long-term debt Release of shares held in escrow Depreciation and amortization charged to deferred development costs Exercise of stock options and warrants Issuance of common stock for purchase of consolidated subsidiary Application of funds: Additions to property, plant and equipment Increase in franchises Reduction in long-term debt Additions to deferred development costs Dividends paid Increase in investments in and advances to unconsolidated affiliates Change in other assets and liabilities, net Increase (decrease) in working capital See accompanying notes. Year Ended June 30, 1979 1973 $ 15,082,586 14,988,681 1,661,600 4,853,000 140,424 36,726,291' 11,000,000 819,200 52,917 76,925 3,597,398 52,272,731 36,455,730 1,827,778 24,585,700 697,033 801,555 5,366,844 (208,368) • 69,526,272 $(17,253,541) $ 10,161,602 • 12,729,479 4,582,000 _(1,130,000) 312,247 26,655,328 4,283,837 9,934,465 415,626. 195,786 339,675 53,400 41,878,117 30,736,370 3,163,486 4,771,515 1,180,937 781,469 114,743 288,455 41,036,975' S 841,142 AMERICAN TELEVISION AND COMMUNICATIONS CORPORATIO CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION (CONTINUED) (Unaudited) :han:]es in coy pcnents•of working capital: :ncrease (decrease) in current assets: Cach race acccunts receivable, net PrePad expenses and other '•;a r:te.nance and operating supplies • :ncrease (decrease) in current liabilities: Accounts payable Federal and state income taxes payable :accrued interest payable Other accrued liabilities Subscribers' advance payments Long-term debt due within one year -Increase (decrease) in working capital See accompanying notes. •Year Ended June 30, 1978 1979 $(12,572,0980 $ 6,151,803 797,334 527,105 (44,555) 535,506 252 101,102 (11,819,061) 7,315,516 3,376,819 • (902,912) 343,656 1,232,774 • 285,259 1,098,878 5,434,474 (108,300) 1,387,912 (41,446) 1,691,011 715,118 2,830,079 6,474,374 $(17,253,541) $ 841,142 2 AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 1979 (Unaudited) Note 1 Investment in and advances to. unconsolidated affiliates are carried at cost ad- justed for the Company's equity in losses or undistributed earnings. The Com- pany's ownership in 50% or less owned companies consists of: 1. Percent of Ownershio. Wolverine Cablevision, Inc .507 Private Channel Club , ' 50'. Lakeside Cablevision of Fond du Lac ' 50% Memphis CATV, Inc. . 4451 . American Heritage Cablevision, Inc. ' ' 50, Area Communications, Inc. 9.9% American Cablevision of Kansas City, Inc. 50% Note 2 At June 30, 1979 long-term debt was as follows: 91% senior notes payable to various institutional lenders, due S1,500,000 annually 81/2% senior notes payable to various institutional lenders, due S1,650,000 on July 31, 1979 and S2,350,000 annually thereafter 10.95% senior notes payable to various institu tional lenders, due S1,920,000 annually Equipment leases and other Less amount due within one year S 6,50D,000 22,05.0,000 23,040,000 • 3,982-,000- 55,572;000 - 6,142,000 S49,43-0,000 • AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 1979 (Unaudited) Note 2 (continued) Negotiationsbetweenthe company and a group of banks for a revolving credit loan agreement are in process. Terms and interest rates are expected .to be similar to the Company's Revolving Credit Loan Agreement terminated in June, 1979. The anticipated maximum limit is $50,000,000; final payment is expect- ed to be in 1986. Under the terms of the loan agreement of the senior notes .,ayable:'.e CoTpG�y is required to maintain consolidated working capital as defined; dividends on' and repurchase of its capital -stock are restricted; and limitations are imposed.. on acquisitions, rental payments, sales of assets, additional investrner.ts, additional indebtedness, capital expenditures and on the incurrence of security interests in any of the Company's assets. • The aggregate amount of maturities of long-term debt each of thefive subsequent years ended June 30, are 1980 1981 1982 1983 1924 $ 6,142,000 6,735,024 6,463,913 5,901,815 4,787,316 and leases capitalized for as follows: Note .3 The Company is a wholly-owned subsidiary.of Time, Incorporated (Time) as the result of a merger effected November 14, 1978 and will be included in the Time consolidated federal income tax return. Time has -elected to allocate its con- sclidated•tax liability to the companies included in the return in,p roportion to each Company's separate return liability. The charge in lieu of federal taxes (below) is an estimate based on that allocation method. Additionally, the Company provides for current state income taxes based upon the rate ex- pected to be applicable for the entire year.. AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 1979 (Unaudited) Note 3 (continued) The combined estimate is as follows: State (current) Charge in lieu of Federal taxes 640.400 4,335,776 5 4;976,176 At December 31, 1978 the Company recorded an estimate o► the charge in lieu of income taxes for the one and one-half months then ended_ The actual cha rce as dete nnined by Time Inc. for that period was $90,816 less than the Company's estimate. Retained earnincs at December 31, 1978 has been restated in the accompanying balance sheet to reflect the amount of the actual charge. Note 4 During May and June, 1979 Time advanced the Company a total of S12,500,000 including $1,500,000 for estimated federal income tax payments. Payment terms and interest rates on these advances have not yet been determined. _ a New York State Commission on Cable Television Form AFR - 1 Annual Financial Report for Period Beginning October 24 , * 19 77, and Ending June. 30 ., 1973. * date of acquisition Name Ceracche gablevision,.Division of American Television and Full Name of Cable Television Communications Company . Corporation • Address 20 Inverness Place East Mailing Address Englewood CO 80210 City State Zip Code 303/773-3411 Telephone No. (Include Area Code) Notice This report shall be filed with the Commission by every cable television company required to maintain records and adopt the accounts prescribed in the Uniform Account- ing System,.and may be filed by any cable television company which voluntarily usesthe, accounts specified in the Uniform. Accounting System.. This report shall be filed with the Commission within 90 days of the end of your .fiscal year. PartI of this report consists of questions of a general informational nature; Part II consists of financial statements and schedules based on the accounts specified in the UAS: Part III consists of consolidated financial. statements and shall be completed by any company having an ownership interest of 20% or more in another company. General Instructions 1. All entries are to be in permanent form. Decreases are to be shown enclosed in parentheses. The words "not applicable'.' are to be shown on any schedules or in reply to any question which does not apply to respondent. 3. Additionalexplanations, schedules or statements may be attached to the back of this form by respondent for the purpose of further explanation if insufficient. space has been provided on this form. The additional explanations, schedules or statements shall be cross- referenced to the question, statement or schedules. to which they are related. 4. Amounts reported on this report shall be rounded to the nearest dollar. 5. If you require assistance phone # (518) 474-2471 or write New York State Commission on Cable Television, Alfred E. Smith Bldg., Albany, New York 12225. 2. PART I 1. To Whom Should Correspondence And Inquiries Concerning This Report Be Addressed? Thomas W. Binning 20 Inverness Place East Name Mailing Address Controller Title Englewood, CO 80210 City State Zip Code 303/773-3411 - Phone Number [Include Area Code] 2. List below the name of each locality granting a fran- chise and also each geographic area you serve in which a franchise has not been granted and show the Number of Subscribers for each area served, computed asof the end of your fiscal year in the same manner as for. the Federal Communications Commission. Indicate operations in a non -franchised area, by placing the letter "n" after the area served. Estimated Name of Franchise Number of Percentage of or Area Served Subscribers Penetration 1. See Attached 2. 3. 4. 5. 6. 7. 8. 9. 10. ATTACHMENT TO PAGE 2 Estimated Name of Franchise Number of Percentage or Area Served Subscribers of Penetration City of Ithaca 6,130 70% Town of Ithaca 2,422 51% . Town of Dryden 1,211 63% Town of Newfield 686 78% -Town of Lansing379 32% Town of Ulysses 78 '59% Town of Caroline 382 79% Town of Danby - N 144 66% Village of Cayuga Heights 939 85% Village of Candor 238 73% Town of Candor - N 201 73% Town of Newark Valley - N 119 66% Village of Newark Valley 355 87% Town of Groton 106 65% Village of Groton 708 86% Village of Lansing 1,116 74% - Total 15,214 At any in the reporting period did you own or control 207. or more of any other company', or did another company own or control 207. or more of your .company? . x Yes _ No If yes, list the. ' companies below. Name of Company 2. 3. 4. 5. 6. 7. 8. 9. io. B. Name of Company American Television and 2. Communications Corporation 3. r racrbe Cablevision is an 4. operating division of ATC 5. 6. Percentage of Ownership Or Control Held By You In A: -pother Company Percentage of Ownership or Control Held Bv Another Company In You 100`/ 7. 8. 9. 10. CERTIFICATION I certify that I have examined this report and that all statements of fact contained therein are true, com- plete, and correct to t he..best df my knowledge, informa- tion, and belief and that nothing material has occurred that would require explanation that has not been explained. Controller Signature Title Thomas W. Binning Printed Name of Signer Date Signed Line No. . Account No. Name. PART II Statement of Profit and Loss Amounts • 1. Operating Income •2. 4110.0 Installation Income $ 42,024 3. 4120.0 Regular Subscriber Charges $793,773' 4. 4130.0 Per Program or Per Channel Charges $ 85,734 5. 4140.0 Other Subscriber Revenues $ N/A 6. Total Subscriber Revenues .7..' 4210.0 Advertising Income $ 25 8.' 4220.0 Special Service Income $ N/A 9. 4230.0, Other Non -Subscriber Revenues $ 26,681 10. Total Non -Subscriber Revenues 11. Total Operating Income 12. Cost of Operations 13. 5100.0 . Service Costs 14. 5200.0 .Origination Costs 15. 5300.0 Selling, General and Administrative Expense, 16. ..5400.0 Depreciation and Amortization $921,531 $ 26,676 $254,071 $ 16,q51 $ 344,260 $ 273,103 $948 207 .0 17.. Total Operating Costs 18.. Total Operating Profit or (Loss) (Line 11 - Line 17) . 19. Other Income and. Expenses -20. Other Income 21. 6110.0 Interest 22. 6120.0 . Dividends 23• . 6130.0' Other 24. Total Other Income 25. Other Expenses 26. - 6210.0 . .Interest 27. 6220.0 Miscellaneous 28. 29. Total Other Income or Expenses (Line 24 - Line 28) 30. Profit or (Loss) Before Taxes 31. Provision for Federal. and State Income Taxes 32. Total Other Expense 7100.0 Federal Income Taxes $x,1_23 $ - $ 232,123 $ 908,335 $ 39,822 $ 232,1?3 $(192,301) 33. 7200.0 State Income Taxes 34. Total Income Taxes Payable 35. Total Profit or Loss Before Extraordinary Items ` (Line 30 - Line 34) 36. 8000.0 Extraordinary Items* 37. Total Profit or Loss (Line 35 Line 36) * Please provide schedule of items and amounts. '$(192,301) $ N/A $(192.301) s`Krc. :xaic���a BALANCE SHEET . ASSETS Line No. Account No. Name 1. Current Assets 2. 1110.0 Cash 3. 1120.0 Short-term Investments 4. 1130.0 Accounts Receivable - Trade 5. 1139.0 Less: Allowance for Doubtful Accounts 6. Accounts Receivable - Net 7. 1140.0 . Other Receivables 8. 1149.0 Less: Allowance For Doubtful Accounts 9. Other Receivables - Net 10. 1150.0 - Inventory 11. 1160.0 Broadcasting Rights 12. 1170.0 Prepaid Expenses 13. 1180.0 Other Current Assets 14. Total Current Assets Amounts $ 24,572 [$-_18,148_] $. 519 $ ?1,544 $ 6,424 $ 519 $-20,000 $. 11,560 $. $ 70,047. ss • 15.. Plant Assets 16. 1200.0 Fixed Assets $3,277,762 17. 1300.0 Construction Work in Progress $ 18. ..1500.0 Plant Adjustments $ 19. 1400.0 ,Less Allowance for Accumulated Depreciation and Amortization [$ 220 ,536.1 20. Total Plant Assets 21. Other Assets 22. 1610.0 Intangible Assets $1,955,291 23. 1620.0 Deferred Charges $ - 24. 1630.0 Long Term Investments $ - 25. 1640.0 Organization Costs $ - 26. 1650.0 Other Assets $ 27. Total Other Assets 28. Total Non -Current Assets (Line 20 + Line 27) 29. Total Assets (Line 14 + Line 28] $3,057,226 $1,955,291 $ 5,012,517 $ 5,052,564 LIABILITIES AND OWNERS' EQUITY 30, Current Liabilities 31.. 2110.0 'Loans Payable 32, 2120.0 Subscriber Advance Payments and Deposits $ 4,837,931 $ 187,829 33. 2130.0 Accounts Payable $ 861 34. 2140.0'. Taxes & Other Withholdings $ 749 35. 2150.0 Accrued Expenses $ 55,194 36. 2160.0 Accrued Taxes $ 37. 2170.0 Other Current Liabilities $ 38. 2180.0 Dividends Payable $ 39. Total Current Liabilities. 40. Non -Current Liabilities 41. 2300.0 Long -Term Debt $ N/A 42. 2400.0. .Operating Allowances $ N/A 43. 2500.0 Other Non -Current Liabilities $ N/A 44. Total Non -Current Liabilities 45. Owners' Equity► . 7 46. 3100.0 Common Stock - Issued N/A $5,n82,564 47. 3200.0 Preferred Stock - Issued 48. 3300.0 Treasury Stock, 49. 3400.0 Proprietors' Equity 50•. 3500.0 . Additional Paid -In Capital • 51. 3600.0 Retained Earnings 52. TOTAL Owners' Equity 53. Total Liabilities and Owners' Equity INSTRUCTIONS $ N/A $ $ N/A $ • N/A $ N/A $ N/A $5,082?564 1. If Line 43, Other Non -Current Liabilities, is significant in .mount list the major items comprising it, and the amounts therein. 2. Furnish particulars as to any significant contingent assets or liabilities existing at year end or any significant change in the financial condition of the company occurring after the end of the fiscal year but prior to filing this report in the space below. 3. List below the total amount of subscriber Advance Payments, Account #2121.0 and the total amount of. Subscriber Deposits, Account #2122.0 held by you and indicate if you pay interest on these amounts and if so, how much. Acct. 1;2121.0 $163,554) Interest is not paid. Acct. #2122.0 • $. 24,275) STATEMENT OF SOURCE AND APPLICATION OF FUNDS LINE Source of Funds . Increase in :loans. payable $ 5.030.232„ 2. Depreciation. and .amortization. . . ..... $ 273,103 3. Decrease in yiorking.capt.ta1 • •$ 174,506 4. "$ 5. 6. $ 7 $ 8. $ 9. ... .. . -...........• $ 10. $ 11. $ 12. Total Available Funds $ 5,477,921 Application of Funds 13. Loss .frpm operotions . . $ 192,301 14. Additions.ta properly, plant .and equipnen.t .• • $ 3,277,762 15. Additions•to franchise cost •. . . . $ 2,007,776 16. Other $ 82 17. $ 18. $ 19. $ 20. $ 21. . ... . . .$ 22. $ 23. 24. Total Applied Funds $ 5,477,921 Increase/Decrease in Working Capital Components 25. Increase in .cash 26 . Increase •i n .accounts recei iabl e . 27. Increase an •prepaid expenses 28. Increase in.inventary 29. 30 . Increase i n ,acco'nits paxabl e 31. Increase ;in,wi,th�oldipgs , , , . , •• • 32. Increase in.subscriber advance .payments and. dep., 33 . Increase .i n. accrued expenses 34. 35.- 36 5.- 36 37. Total Increase/Decrease in Working Capital Components $ 31,544 $ 6,943 $ 11,560 $ 20,000 $ _ $ (861) $ (749). $ (187,829) $; ( 55,194) (174.586) .12 STATEMENT OF SOURCE AND APPLICATION OF FUNDS INSTRUCTIONS 1. Total available funds, line 12, must equal total applied funds,. line 24. ' The following will be individually listed on the schedule.: a. Net change tri working capital. b. Profit or loss arising before extraordinary items.. c. Extraordinary gains or losses. d. Working capital provided by depreciation and amortization. e. The proceeds of stock issuances. f. The proceeds of new debt incurred. g. Significant increments of reduced debt. h. Acquisition of interest in parent, affiliated or other companies. i. All significant capital applications including dividends and other payouts and acquisition of treasurystock. j. All other items of significance not listed above shall be grouped or otherwise consolidated where possible. 13 Indicate assets and liabilities which account for net change in working capital. If space provided is insufficient, please attach additional sheets. DETAILS OF SUMMARIZED EXPENDITURE ACCOUNTS A LINE NO. ACCOUNT DESCRIPTION SERVICE COSTS B C D ORIGINA- SELLING, GENERAL & PAYROLL & EXPENSES, TION COSTSADMINISTRATIVE EXP. CAPITALIZED 01.1 Salaries and Wages, Officers Directors - 01.2 02,1 Salaries and Wa es Employee Benefits, Directors 02.2 Employee Benefits, 03.0 Maintenance 04,0 Pole and Site Rentals and All Others Officers an $ All Others N/A 12h,6111 n A 7 009 .53,269 °Q x,960 19 164 05.0 Microwave Service 06.0 •Light, [Teat & Power G77-0 Vehicle Expenses ent 09.0 Trave X5.1 lues an '1'1 N/A 62,2.11 N/A N/A N/A 7.P41 4 208 4,647 59 nterta nmen u scrip ion 11.0 Contributions ro cssiona ervice tati.onery Supplies . 14.0 Postage and Freight 1 1 ver.tising romotion lb . 0 1.7.0 18.0 lelephone & i'eiegraph 81111 r •--ice xpenses Insurance 2,147 4,485 19.0 Provision for Doubtful Accounts 215:13-777r1=--ces• 21.0 Franchise, License & Permit Fees 71.0 Technical & Creative Service 102 125835 4.747 1,831 10, 1 ,R33 4 622 25.908 23,0 film Exr j)se 24.0 Studio Sets. & Props _ 25.0 Program Material & 8upplles 26.0 News Services 2/ .0 Participation "i.tpeus 28.0 Fees &.Royalties 29.0 Tariff &Leaseback Charges 30.0 Overhead Allocations Sub -Total 90.0 Ca;_:al: zec, Cost Offs r _ IPS -151 1 _... _....._ • 7,587 299,87 -4� 48,910- T 364351 ' 344;260 M^ INSTRUCTIONS e • 1. Columns A, B, & C should agree with totals reported on Statement of Profit. andLoss. 2. Amounts appearing in column D shall not be included in column A, B, and 3. Please provide details below of Overhead Allocations, if any, as provided for. in Section 599.40 (J) (5). .. - r c>fak,..lnm .. .tic;: '�..-:,•^�a'✓•: �. ea n.e•: PLANT, INTANGIBLES AND DEFERMENTS • LINE ACCOUNT•DESCRIPTION BALANCE BEGINNING OF YEAR (A) 715DIT1ONS'—IFE DURING YEAR (B) $ 29,a5o.: 2 8, I%E•1ENT (c) TUTS R AND ADJUSTMENTS ___SD) • AT END OF YEAR (E) �8r o 177,007 86 MATED DEPRECIATION AND AMORTIZATION (F) Xxxxxxx 6,3. . Fixed Assets 1. 1210.0 Land Q177,007. 0______116,382:. 2. Bu. dn 9 1230.0 Head -End 4. 1241.0 Subscriber DevicesX382 5. 242 0 Other l a 'Y 6. Total Trunc an. 1 stri•ut on CLine 4 and line 5) g 2,841,88, 12,1(12, r_ 611,46' 66,590 '' 2 8 9 , 405 6110 959 �1,gF9 36 SW Z,843 II,721 2,721 7. 1250.0 Test Equipment and Tools 8. 1260.0 Program Origination 9. 1270,0 Vehicles 0. 1276.0 Furniture and Fixtures 1. Total Vehicles, Furniture and Fixtures (Line 9 and Line 10) (D` 98 55S 98,559 2. 1280.0 Capitalized Lease Property 3. 1,290.0 Leasehold Improvements O I,Itik 3,277,67, . 1 18c: 3,277,672 4. 1299.0 Miscellaneous Equipment 5. Total Fixed Assets, (Total Lines 1 to 3, 6 to 8, 11 to 14: 220,536 16. • 1300.0 Construction Work in Progress, 17. ' Plant Adjustments 18. . 1510.0 Plant Adjustment Excess Fair Value 19. 1520.0 Plant Adjustment Goodwill 20. IiTET-7TEET-Talaaments i.ne Line 191 21. Total Plant Assets 1Line.15 + Line 1.6 + Line 20 ] 22. . Intangible Assets' 23. 1611.0 Franchises, Licenses. and Permits 24. 1112.0 Other Intangible Assets 25. 1613.0 Goodwill • 26. 'Dotal Intangible Assets 'Line 23 + Line 24 + Line. 251 ,277,762 3 27 2 220 536 2,007,776 27. 28. 29. 30. 1623.0 Other Deferred Charges 31. Total De erre C arges ine arr 3.i ne 29 + Line 301 Deferred Charges 1621.0 Start-up Costs 1622.0 Unamortized Debt 2,007,776 2,007x776 52,485 2,007,77E 52,485 LINE NO: PLANT, INTANGIBLES & DEFERMENTS . EXPLANATION OF ENTRIES INSTRUCTIONS 1. 'The balance at the beginning of the year, column A should agree with the closing balances on last year's report; the balance at the end of the year should agree with closing balances on this year's balance sheet. 2. Amounts reported in column D, transfers and adjustments, should be explained in the space provided above. 3. The amounts shown in column E and F must agree with amounts shown on the balance sheet. 4'. Unamortized Debt Expense is amortized. by charging "interest expense", this will be reflected on this schedule by entering this amount in Column D. .J:al.:i Line Description Lang -Term Debt PRINCIPAL PAYMENTS Due Within 2 Years • (A) 1 Notes 2 Owed to Affiliates 3 - Owed to Directors or Officers 4 All Others 5 • Total Notes 6 Bonds 7 Owed to Affiliates' • 8 Owed to Directors or'Officers 9 • • All Others 10 Total Bonds 11. Obligation on .Capitalized Leases 12 Unamortized Premium & Discount .cn Outstanding Debt 13 Total Long -Term Debt (Total of Lines .5, 10, 11 +12) 14 Interest to Be Paid. 15 TOTAL (Line 13 + Line 14) 3 Years 4 Years (C) • 5 Years (D)* $, More than 5 Years (E) TOTAL NOT APPLICABLE INSTRUCTIONS * 1. Determine the amount'of principal and interest to be paid on all.long-term debt: 2. On line 12 and 13 determine the amount to be amortized yearly and enter in the appropriate column. 3. Cross -foot all totals. The total amount of long-term debt entered on line 13, column "F" shall agree with the total amount of long-term debt entered on line 41 of the balance sheet,. Line Operating_Allowances • .,1' Property Insurance Allowance 2 Injury ansa Damage Allowance 3. Pension and Benefit Allowance 4 Miscellaneous Operating Allowance. a. b. c. d. 5 Total Miscellaneous Operating Allowance [line,4 a. to 4.d.1 .6 Total Operating Allowance INSTRUCTIONS 1. Enter above all provided for in '2. The total shown Balance Sheet. 3. If you have established one or more miscellaneous operating allowances list their titles on line 4 above, and briefly describe below their nature and purpose. Operating Allowances Account N tmb e r (A) (B) B'al.ance Additions Beginning During of Year Year (C) Deductions During Year . (D) Balance at End of Year 2410.0 2420.0 2430.0 2440.0 2400.0 NOT A ?PLICABLE $ information requested.for Operating Allowances as entered on the accounts the UAS. on line 6, column D, shall equal the amount entered on line 42 of the srka ..E,,:it�h; 21 PART III • Consolidated Financial Statements Instructions Complete this section only if you have an equity' interest of 20% or more in another company. . Before preparing this section please read Section 599.83 of the UAS. 2. The account balances and transaction totals included in Section II of this report shall be adjusted for inclusion in this Section only to the extent necessary to prepare consolidated financial statements and or to reflect investments using the equity method. 3. Equity investments in another company shall be accounted for using (i) the cost method for investments of less than 20% and (ii) the equity method for investments of between 20 to 50 and (iii) the preparation of consolidated financial statements for investments of more than 50%. Consolidated Profit or Loss 1. Operating Revenues Total Cable Television Revenue 2.. Other Operating Revenues [Itemize on Line 16] 3. Total Operating Revenues 4. Operating Expenses 5. Total Cable Television Expense 6. Other. Operating Expenses [Itemize on Line 16] 7. Total Operating Expenses 8. Total Operating Profit or Loss 9. Other Income 10. Other Expenses 11. Total Other Income or Expense 12. .Total Profit or Loss Before Income Taxes 13. Total Income Taxes 14. Extraordinary Income (Losses) 15. Total Profit (Loss) Instructions NOT APPLICABLE 22 16. Itemize, by major groups or categories, the amounts shown on . line 2- and/or line 6. in the space below. Consolidated Balance Sheet NOT APPLICABLE. Assets 1. Current Assets 2. Plant Assets 3. Other Assets 4. Investments 5. Total Assets Liabilities & Equity 6. Current Liabilities 7. Long -Term Debt 8. Other Liabilities -9, Minority Interest in Subsidiaries 10. Total Liabilities 11. Equity 12. Total Liabilities and Equity 23 $ INSTRUCTIONS 1. The accounts shown in Section 599.32 of the UAS should be used as a general guide in preparing this statement. 2. The amounts shown shall be net of any allowance. 3. The amount shown on line 5 shall equal the amount shown on line 12. • CONSOLIDATED STATEMENT OF SOURCE AND APPLICATION OF FUNDS:. NOT APPLICABLE LINE Cott of Funds . . . . . . . $ 4. $ 5. 6: $ 7. $ 8. $ 9: $ 10. . . 11. . . . . OOOOOOOO••• - 12. Total Available Funds $ Application of Funds 13. . . . . . . . . OOO 14. 15. 16. 17. 18 . . 19. 20.. 21. 22. 23. 24. Total Applied Funds Increase/Decrease in Working Capital Components 25. $ 26.. 27. 28. . . . . . . . . . . . . $ ,29. $ 30. $ .31. 32. $ 33. $ 34. 35. 36. $ 36. . $ 37. Total Increase/Decrease in Working Capital $ - 24