Time Warner Cable 2007 Annual Report Download - page 125

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TW NY Holding in connection with the TWE Redemption, Urban Cable, with a fair value of $190 million,
transferred as part of the Exchange, and cable systems with a fair value of approximately $3.1 billion transferred by
TWC in the Redemptions.
Interest Expense, Net
Interest expense, net consists of (in millions):
2007 2006 2005
Years Ended December 31,
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13 $ 44 $ 37
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (907) (690) (501)
Total interest expense, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (894) $ (646) $ (464)
Video, High-speed Data and Voice Direct Costs
Direct costs associated with the video, high-speed data and voice services (included within costs of revenues)
consist of (in millions):
2007 2006 2005
Years Ended December 31,
Video . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,534 $ 2,523 $ 1,889
High-speed data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164 156 102
Voice........................................................ 455 309 122
Total direct costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,153 $ 2,988 $ 2,113
The direct costs associated with the video service include video programming costs. The direct costs associated
with the high-speed data and voice services include network connectivity and certain other costs.
Other Current Liabilities
Other current liabilities consists of (in millions):
2007 2006
December 31,
Accrued compensation and benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 310 $ 275
Accrued franchise fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 162
Accrued sales and other taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 148
Accrued insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 66
Accrued interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193 130
Accrued advertising and marketing support. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 97
Other accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234 235
Total other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,237 $ 1,113
120
TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)