Time Warner Cable 2006 Annual Report Download - page 143

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12. RELATED PARTIES
In the normal course of conducting its business, the Company has various transactions with Time Warner,
affiliates and subsidiaries of Time Warner, Comcast and the equity method investees of TWC. Effective August 1,
2006, as a result of the completion of the Redemptions, Comcast is no longer a related party. A summary of these
transactions is as follows (in millions):
2006 2005 2004
Year Ended December 31,
Revenues:
Advertising . ............................................ $ 9 $ 10 $ 22
AOL broadband subscriptions ................................ 19 26 35
Road Runner revenues from TWC’s unconsolidated cable television
systems joint ventures.................................... 65 68 53
Other .................................................. 1 2 2
Total ................................................ $ 94 $106 $112
Costs of revenues:
Programming services provided by affiliates and subsidiaries of Time
Warner ............................................... $(718) $(553) $(522)
Programming services provided by affiliates of Comcast ............ (29) (43) (40)
Connectivity services provided by affiliates and subsidiaries of Time
Warner ............................................... (39) (18) (45)
Other costs charged by affiliates and subsidiaries of Time Warner . . . . . (33) (12) (7)
Other costs charged by equity investees ........................ (11) (11) (9)
Total ................................................ $(830) $(637) $(623)
Selling, general and administrative expenses:
Management fee income from unconsolidated cable television system
joint ventures .......................................... $ 28 $ 42 $ 39
Management fees paid to Time Warner ......................... (13) (8) (7)
Transactions with affiliates and subsidiaries of Time Warner ......... (6) (10) (9)
Total ................................................ $ 9 $ 24 $ 23
Interest expense, net:
Interest income on amounts receivable from unconsolidated cable
television system joint ventures............................. $ 39 $ 35 $ 25
Interest expense paid to Time Warner
(a)
........................ (112) (193) (193)
Total ................................................ $ (73) $(158) $(168)
(a)
Represents interest paid to Time Warner in connection with the mandatorily redeemable preferred equity issued in the TWE
Restructuring in 2003.
Reimbursements of Programming Expense
A subsidiary of Time Warner previously agreed to assume a portion of the cost of TWC’s new contractual
carriage arrangements with a programmer in order to secure other forms of content from the same programmer over
time periods consistent with the terms of the respective TWC carriage contract. The amount assumed represented
Time Warner’s best estimate of the fair value of the other content acquired by the Time Warner subsidiary at the time
138
TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)