Print Page  |  Close Window

Investor Relations

SEC Filings

8-K
GRAHAM HOLDINGS CO filed this Form 8-K on 05/06/1994
Entire Document
 
<PAGE>   8
                       KPRC and KSAT Television Stations
                  (business units of H&C Communications, Inc.)

                     NOTES TO COMBINED FINANCIAL STATEMENTS

NOTE  1  -  THE COMPANIES AND SIGNIFICANT ACCOUNTING POLICIES

Combined Financial Statements

The financial statements combine the accounts of the following wholly-owned
unincorporated business units of H&C Communications, Inc.:

  KPRC - NBC affiliated television station in Houston, Texas
  KSAT - ABC affiliated television station in San Antonio, Texas

The above entities are herein referred to as "the Companies".  All significant
intercompany accounts and transactions have been eliminated.

Cash and cash equivalents - For purposes of the statement of cash flows, the
Companies consider all highly liquid investments purchased with original
maturities of 90 days or less to be cash equivalents.

Advertising revenues and trade accounts receivable - Revenues are generated
principally from sales of commercial advertising and are recorded net of agency
and national representative commissions as the advertisements are broadcast.
Revenues applicable to commercial advertising availabilities "traded" to
advertisers in exchange for merchandise or services are recorded at the
estimated fair market value of the merchandise or services received.

Program rights - The Companies have entered into program rental contracts which
generally provide for rentals to be paid in installments.  Payments made for
program rights which are currently available and the liability for future
payments under these contracts are included in the combined balance sheet.
Program rights are amortized primarily using the straight-line method over a
twelve month period.  Certain program rights with lives greater than one year
are amortized using accelerated methods. Program rights expected to be
amortized in the succeeding year and amounts payable within one year are
classified as current assets and liabilities, respectively.

Property, plant and equipment - Property, plant and equipment are recorded at
cost.  Maintenance and repairs are charged to expense as incurred; replacements
and major improvements are capitalized.

Depreciation expense is computed using the straight-line method for buildings
and accelerated methods for furniture, machinery and equipment.  Leasehold
improvements are amortized using the straight-line method over the lesser of
the term of the related lease or the estimated useful lives of the assets.  The
useful lives of property, plant and equipment for purposes of computing
depreciation and amortization expense are:

Buildings                                         15 - 45 years
Leasehold improvements                             7 - 15 years
Furniture, machinery and equipment                 3 - 20 years




                                       8