Time Warner Cable 2007 Annual Report Download - page 105

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Information relating to the restructuring costs is as follows (in millions):
Employee
Terminations
Other
Exit Costs Total
Remaining liability as of December 31, 2005 . . . . . . . . . . . . . . . . . . . . . $ 23 $ 3 $ 26
Accruals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 10 18
Cash paid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (13) (8) (21)
Remaining liability as of December 31, 2006 . . . . . . . . . . . . . . . . . . . . . 18 5 23
Accruals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 6 13
Cash paid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12) (8) (20)
Remaining liability as of December 31, 2007 . . . . . . . . . . . . . . . . . . . . . $ 13 $ 3 $ 16
6. GOODWILL AND INTANGIBLE ASSETS
TWC has a significant number of intangible assets, including customer relationships and cable franchises.
Goodwill and intangible assets are tested annually for impairment during the fourth quarter, or earlier upon the
occurrence of certain events or substantive changes in circumstances. The Company determined during its annual
impairment reviews that no impairments existed as of December 31, 2007, 2006 or 2005, respectively.
A summary of changes in the Company’s goodwill for the years ended December 31, 2007 and 2006 is as
follows (in millions):
Balance as of December 31, 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,769
Acquisitions and dispositions related to the Transactions
(a)
................................... 312
Other ........................................................................ (22)
Balance as of December 31, 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,059
Purchase price adjustments related to the Adelphia Acquisition and the Exchange . . . . . . . . . . . . . . . . . . . 64
Other ........................................................................ (6)
Balance as of December 31, 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,117
(a)
Includes goodwill recorded as a result of the preliminary purchase price allocation for the Adelphia Acquisition and the Exchange of
$1.050 billion, partially offset by a $738 million adjustment to goodwill related to the excess of the carrying value of the Comcast
minority interests in TWC and TWE acquired over the total fair value of the Redemptions. Of the $738 million adjustment to goodwill,
$719 million is associated with the TWC Redemption and $19 million is associated with the TWE Redemption. Refer to Note 4 for
additional information regarding the Transactions.
As of December 31, 2007 and 2006, the Company’s intangible assets and related accumulated amortization
consisted of the following (in millions):
Gross
Accumulated
Amortization Net Gross
Accumulated
Amortization Net
December 31, 2007 December 31, 2006
Intangible assets subject to amortization:
Customer relationships . . . . . . . . . . . . . . . . . $ 954 $ (330) $ 624 $ 1,128 $ (323) $ 805
Renewal of cable franchise and access rights . . 242 (153) 89 207 (139) 68
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 (32) 6 29 (26) 3
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,234 $ (515) $ 719 $ 1,364 $ (488) $ 876
Intangible assets not subject to amortization:
Cable franchise rights . . . . . . . . . . . . . . . . . $ 40,312 $ (1,390) $ 38,922 $ 39,342 $ (1,294) $ 38,048
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 — 3 3 — 3
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 40,315 $ (1,390) $ 38,925 $ 39,345 $ (1,294) $ 38,051
The Company recorded amortization expense of $272 million in 2007, $167 million in 2006 and $72 million in
2005. Based on the current amount of intangible assets subject to amortization, the estimated amortization expense
100
TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)