text: See note 10 for our calculations of basic and diluted net income per 
  share. 
  
  (cid:129) formally document the relationship between the hedging instrument 
  and hedged item, including the risk management objectives and 
  strategy, and the methods we will use to assess the ongoing 
  effectiveness of the hedging relationship. 
  
  **Inventories**
  We measure inventories, including handsets, digital cable equipment 
  and merchandise for resale, at the lower of cost (determined on a first- 
  in, first-out basis) and its net realizable value. We will reverse a previous 
  write down to net realizable value if the inventories later increase in 
  value. 
  We assess quarterly whether the hedging instrument continues to be 
  highly effective in offsetting the changes in the fair value or cash flows 
  of the item it is hedging. 