Time Warner Cable 2006 Annual Report Download - page 108

TIME WARNER CABLE INC.
CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY
Common
Stock
Paid-in-
Capital
Retained
Earnings Total
(in millions)
BALANCE AT DECEMBER 31, 2003 ....................... $10 $18,846 $ 412 $19,268
Net income
(a)
.......................................... — — 726 726
Change in unfunded accumulated benefit obligation, net of $1 million
tax benefit........................................... — — (1) (1)
Comprehensive income ................................. — — 725 725
Reclassification of 48 million shares of Class A common stock to
mandatorily redeemable Class A common stock at fair value
(b)
..... — (1,065) — (1,065)
Allocations from Time Warner Inc. and other, net
(c)
............... — 46 — 46
BALANCE AT DECEMBER 31, 2004 ....................... 10 17,827 1,137 18,974
Net income
(a)
.......................................... — — 1,253 1,253
Change in unfunded accumulated benefit obligation, net of $2 million
tax benefit........................................... — — (3) (3)
Comprehensive income ................................. — — 1,250 1,250
Reclassification of mandatorily redeemable Class A common stock
(b)
.. — 81 — 81
Allocations from Time Warner Inc. and other, net
(c)
............... — 42 — 42
BALANCE AT DECEMBER 31, 2005 ....................... 10 17,950 2,387 20,347
Net income
(a)
.......................................... — — 1,976 1,976
Change in unfunded accumulated benefit obligation, net of $1 million
tax impact ........................................... — — 1 1
Comprehensive income ................................. — — 1,977 1,977
Change in unfunded benefit obligation upon adoption of FAS 158, net
of $84 million tax benefit................................ — — (124) (124)
Shares of Class A common stock issued in the Adelphia acquisition . . . 2 5,498 — 5,500
Reclassification of mandatorily redeemable Class A common stock
(b)
. . — 984 — 984
Redemption of Comcast’s interest in TWC . . . .................. (2) (4,325) — (4,327)
Adjustment to goodwill resulting from the pushdown of Time Warner’s
basis in TWC . ....................................... — (719) — (719)
Allocations from Time Warner Inc. and others, net
(c)
.............. — (74) — (74)
BALANCE AT DECEMBER 31, 2006 ....................... $10 $19,314 $4,240 $23,564
(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.
(b)
The mandatorily redeemable Class A common stock represents shares of TWC’s Class A common stock that were held by Comcast
Corporation (“Comcast”) until July 31, 2006. During 2004, these shares were classified as mandatorily redeemable as a result of an
agreement with Comcast that under certain circumstances would have required TWC to redeem such shares. As a result of an amendment to
this agreement, the Company reclassified a portion of its mandatorily redeemable Class A common stock to shareholders’ equity in the
second quarter of 2005. During 2006, this requirement terminated upon the closing of the redemption of Comcast’s interest in TWC and
TWE, and as a result, these shares were reclassified to shareholders’ equity (Class A common stock and paid-in-capital) before ultimately
being redeemed on July 31, 2006.
(c)
Amounts represent a change in TWC’s accrued liability payable to Time Warner Inc. for vested employee stock options, as well as other
amounts pursuant to accounting for stock option plans.
See accompanying notes.
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