Time Warner Cable 2007 Annual Report Download - page 120

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Defined Contribution Plans
TWC employees also participate in a defined contribution plan, the TWC Savings Plan, for which the expense
for employer matching contributions totaled $59 million in 2007, $47 million in 2006 and $39 million in 2005. The
Company’s contributions to the TWC Savings Plan are primarily based on a percentage of the employees’ elected
contributions and are subject to plan provisions.
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 for the years ended December 31, 2007, 2006 and 2005 (in millions):
2007 2006 2005
Years Ended December 31,
Revenues:
Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11 $ 9 $ 10
AOL broadband subscriptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 19 26
Road Runner revenues from TWC’s unconsolidated cable television systems joint
ventures
(a)
.................................................. — 65 68
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 2
Total........................................................ $ 20 $ 94 $ 106
Costs of revenues:
Programming services provided by subsidiaries of Time Warner and affiliates . . . . . $ (1,004) $ (718) $ (553)
Programming services provided by affiliates of Comcast . . . . . . . . . . . . . . . . . . . . — (29) (43)
Connectivity services provided by subsidiaries of Time Warner and affiliates . . . . . . (4) (39) (18)
Other costs charged by subsidiaries of Time Warner and affiliates . . . . . . . . . . . . . (4) (33) (12)
Other costs charged by equity investees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12) (11) (11)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (1,024) $ (830) $ (637)
Selling, general and administrative expenses:
Management fee income from unconsolidated cable television system joint
ventures
(a)
.................................................. $ — $ 28 $ 42
Fees paid to Time Warner for reimbursement of certain administrative support
functions and related overhead costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14) (13) (8)
Transactions with subsidiaries of Time Warner and affiliates . . . . . . . . . . . . . . . . . (2) (6) (10)
Total........................................................ $ (16) $ 9 $ 24
Interest expense, net:
Interest income on amounts receivable from unconsolidated cable television system
joint ventures
(a)
............................................... $ — $ 39 $ 35
Interest expense paid to Time Warner
(b)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (112) (193)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ (73) $ (158)
(a)
Amounts represent transactions with TKCCP, an equity-method investee, prior to the distribution of its assets on January 1, 2007. Refer to
Note 4 for further details regarding the dissolution of TKCCP.
(b)
Amounts represent interest paid to ATC, a subsidiary of Time Warner, in connection with its $2.4 billion mandatorily redeemable
preferred equity interest in TWE, which ATC contributed to TW NY Holding, a subsidiary of TWC, in connection with the Transactions
on July 28, 2006. Refer to Note 4 for further details.
Reimbursements of Programming Expense
A subsidiary of Time Warner previously agreed to assume a portion of the cost of TWC’s 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
115
TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)