Time Warner Cable 2006 Annual Report Download - page 107

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TIME WARNER CABLE INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
2006 2005 2004
Year Ended December 31,
(in millions)
OPERATING ACTIVITIES
Net income
(a)
................................................ $ 1,976 $ 1,253 $ 726
Adjustments for noncash and nonoperating items:
Cumulative effect of accounting change, net of tax .................. (2) — —
Depreciation and amortization .................................. 2,050 1,537 1,401
Income from equity investments . . . ............................. (129) (43) (41)
Minority interest expense, net .................................. 108 64 56
Deferred income taxes ....................................... 240 (395) 441
Equity-based compensation .................................... 33 53 70
Changes in operating assets and liabilities, net of acquisitions:
Receivables ............................................... (146) (6) 39
Accounts payable and other liabilities ............................ 456 41 (20)
Other changes ............................................. (65) (97) (156)
Adjustments relating to discontinued operations
(a)
..................... (926) 133 145
Cash provided by operating activities . ............................. 3,595 2,540 2,661
INVESTING ACTIVITIES
Investments and acquisitions, net of cash acquired..................... (9,229) (113) (103)
Investment in Wireless Joint Venture. . ............................. (633) — —
Capital expenditures from continuing operations ...................... (2,718) (1,837) (1,559)
Capital expenditures from discontinued operations .................... (56) (138) (153)
Proceeds from disposal of property, plant and equipment ................ 6 4 3
Other investment proceeds ...................................... 631 — —
Investments and acquisitions from discontinued operations .............. — (48) (4)
Cash used by investing activities.................................. (11,999) (2,132) (1,816)
FINANCING ACTIVITIES
Borrowings (repayments), net
(b)
.................................. 10,909 (422) (1,057)
Repayments of revolving credit facility ............................. (950) — —
Issuance of mandatorily redeemable preferred membership units by a
subsidiary ................................................. 300 — —
Principal payments on capital leases . . ............................. (3) (1) (2)
Redemption of Comcast’s interest in TWC .......................... (1,857) — —
Distributions to owners, net ..................................... (31) (30) (13)
Excess tax benefit on stock options. . . ............................. 4 — —
Other ...................................................... 71 — —
Debt repayments of discontinued operations ......................... — (45) —
Cash provided (used) by financing activities ......................... 8,443 (498) (1,072)
INCREASE (DECREASE) IN CASH AND EQUIVALENTS........... 39 (90) (227)
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD .......... 12 102 329
CASH AND EQUIVALENTS AT END OF PERIOD ................. $ 51 $ 12 $ 102
(a)
Includes income from discontinued operations of $1.038 billion, $104 million and $95 million for the years ended December 31, 2006, 2005
and 2004, respectively. Income from discontinued operations in 2006 includes gains, net of taxes, of approximately $965 million. After
considering adjustments related to discontinued operations, net cash flows from discontinued operations were $112 million, $237 million
and $240 million for the years ended December 31, 2006, 2005 and 2004, respectively.
(b)
Includes net borrowings of $9.875 billion, net of $17 million of issuance costs, which financed, in part, the cash portions of payments made
in the acquisition of certain cable systems of Adelphia Communications Corporation and the redemption of Comcast Corporation’s interests
in TWC and TWE.
See accompanying notes.
102