SEC targets Charter amid $2.6B restatement

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Charter Communications Inc. disclosed that the Securities and Exchange
Commission has finally commenced an 'informal' inquiry into its finances, just
as the company said it will make $2.6 billion in balance-sheet adjustments.

Charter's 10-Q -- filed five days late -- disclosed that the SEC had opened an
'informal, nonpublic' inquiry into its subscriber counts.

At the same time, the company said it had improperly accounted for its flurry
of 18 cable-system acquisitions in 1999 and 2000, and it will have to record $1.4
billion of franchise costs and $1.2 billion of deferred income-tax liabilities.

This doesn't affect the company's reported cash flow or
revenues, but it may eventually affect its taxes owed if properties are
resold.

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