DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE

3 Months Ended

Mar. 31, 2013

DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE [Abstract]

DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE

NOTE 7. DISCONTINUED OPERATIONS ANDASSETS AND LIABILITIES HELD FOR SALE

In connection with the Bresnan Sale discussed above, the operating results of Bresnan Cable, previously included in the Company's Telecommunications Services segment, have been reflected in the Company's consolidated financial statements as discontinued operations for all periods presented. The assets and liabilities attributable to Bresnan Cable have been classified as assets and liabilities held for sale in the consolidated balance sheets as of March 31, 2013 and December 31, 2012.

Operating results of discontinued operations for the three months ended March 31, 2013 and 2012 are summarized below:

	Three Months Ended March 31, 2013
	Bresnan Cable			Other			Total
Revenues, net	$	130,282		$	-		$	130,282
Income (loss) before income taxes	$	776		$	(314	)	$	462
Income tax benefit (expense)		(339	)		129			(210	)
Income (loss) from discontinued operations, net of income taxes	$	437		$	(185	)	$	252

	Three Months Ended March 31, 2012
	Bresnan Cable
Revenues, net	$	123,532
Loss before income taxes	$	(12,237	)
Income tax benefit		4,977
Loss from discontinued operations, net of income taxes	$	(7,260	)

Bresnan Cable's results of operations reported on a stand-alone basis differ from results presented above due to certain reclassifications and adjustments made for purposes of discontinued operations reporting.

The assets and liabilities of Bresnan Cable have been classified in the consolidated balance sheets as of March 31, 2013 and December 31, 2012 as assets and liabilities held for sale and consist of the following:

	March 31, 2013		December 31, 2012
Cash and cash equivalents	$	35,245	$	31,670
Accounts receivable, prepaid expenses and other current assets		14,107		14,486
Accounts receivable from affiliates		-		1,881
Deferred tax asset		1,541		1,766
		50,893		49,803
Property and equipment, net		405,496		418,884
Amortizable intangible assets		123,064		131,305
Indefinite-lived intangible assets		512,612		512,612
Goodwill		167,736		167,736
Other assets		18,765		20,065
		1,227,673		1,250,602
Total assets held for sale	$	1,278,566	$	1,300,405

Accounts payable and accrued expenses	$	59,058	$	51,948
Credit facility debt(a)		7,292		7,650
Other current liabilities		5,505		5,255
Accounts payable to affiliates		9,910		2,506
		81,765		67,359
Credit facility debt(a)		700,403		736,455
Senior notes(a)		250,000		250,000
Deferred tax liability		73,191		71,483
Other long-term liabilities		4,125		4,092
		1,027,719		1,062,030
Total liabilities held for sale	$	1,109,484	$	1,129,389

(a) The credit facility debt will be repaid from the proceeds of the Bresnan Sale and the amount of the senior notes outstanding on the closing date of the Bresnan Sale will reduce the sale proceeds.

Bresnan Cable Legal Matters

The Montana Department of Revenue ("MT DOR") generally assesses property taxes on cable companies at 3% and on telephone companies at 6%. Historically, the cable and telephone businesses of Bresnan Cable have been taxed separately by the MT DOR. In 2010, the MT DOR assessed Bresnan Cable as a single telephone business and retroactively assessed it as such for 2007 through 2009. Bresnan Cable filed a declaratory judgment action against the MT DOR in Montana State Court challenging its property tax classifications for 2007 through 2010. Under Montana law, a taxpayer must first pay a current assessment of disputed property tax in order to challenge such assessment. In accordance with that law, Bresnan Cable has paid the disputed 2010 property tax assessment of $5,384 under protest, the disputed 2011 property tax assessment of $10,912 under protest, and the disputed first half of the 2012 property tax assessment of $4,607 under protest, which Bresnan Cable expensed when the payments were made. No provision for additional tax for 2007 through 2009, which could be up to approximately $15,000, including interest, has been made. On September 26, 2011, the Court granted Bresnan Cable's summary judgment motion seeking to vacate the MT DOR's retroactive tax assessments for the years 2007, 2008, and 2009. The MT DOR's assessment for 2010 was the subject of a trial, which took place the week of October 24, 2011, in Billings, Montana. On July 6, 2012, the Court entered judgment in favor of Bresnan Cable, ruling that the MT DOR's 2010 assessment was invalid and contrary to law, vacating the 2010 assessment, and directing that the MT DOR refund the amounts paid by Bresnan Cable under protest, plus interest and certain costs. The MT DOR filed a notice of appeal to the Montana Supreme Court on September 20, 2012, and filed its opening brief on January 15, 2013. The appeal is fully briefed, and a decision by the Court is pending. The judgment is not final until it is affirmed on appeal. Pending entry of a final judgment, the MT DOR continues to hold Bresnan Cable's protest payments aggregating $20,903 in escrow and continues to assess Bresnan Cable as a single telephone business. Bresnan Cable continues to make additional protest payments until a final judgment is entered and applied to subsequent assessments. The second half of the 2012 protest assessment (approximately $4,600) is due May 31, 2013. Any post-closing refunds of Montana property taxes paid under protest by Bresnan Cable prior to the closing of the Bresnan Sale will be refunded to the Company.