Time Warner Cable 2007 Annual Report Download - page 47

PART II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of
Equity Securities.
The principal market for TWC Class A common stock is the NYSE. The TWC Class A common stock began
trading on the NYSE on March 1, 2007. For quarterly price information with respect to the TWC Class A common
stock since that date, see “Quarterly Financial Information” at page 125 herein, which information is incorporated
herein by reference. There were approximately 5,800 holders of record of TWC Class A common stock as of
January 31, 2008. There is no established public trading market for the Company’s Class B common stock, which
was held of record by one holder as of February 22, 2008.
TWC has not paid any cash dividends on its common stock over the last two years. TWC’s board of directors
will determine whether to pay dividends in the future based on conditions then existing, including TWC’s earnings,
financial condition and capital requirements, as well as economic and other conditions TWC’s board may deem
relevant. In addition, TWC’s ability to declare and pay dividends on its common stock is subject to requirements
under Delaware law and covenants in TWC’s senior unsecured revolving credit facility.
On July 31, 2006, immediately after the consummation of the Redemptions but prior to the consummation of
the Adelphia Acquisition, TWC paid a stock dividend to WCI, a wholly owned subsidiary of Time Warner and the
only holder of record of TWC’s outstanding Class A and Class B common stock at that time, of 999,999 shares of
Class A or Class B common stock, as applicable, per share of Class A or Class B common stock. An aggregate of
745,999,254 shares of Class A common stock and 74,999,925 shares of Class B common stock were issued to WCI
in connection with the stock dividend. The stock dividend was declared and paid in anticipation of TWC becoming a
public company.
Item 6. Selected Financial Data.
The selected financial information of TWC for the five years ended December 31, 2007 is set forth at page 124
herein and is incorporated herein by reference.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
The information set forth under the caption “Management’s Discussion and Analysis” at pages 47 through 78
herein is incorporated herein by reference.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
The information set forth under the caption “Market Risk Management” at pages 72 through 73 herein is
incorporated herein by reference.
Item 8. Financial Statements and Supplementary Data.
The consolidated financial statements of TWC and the report of independent auditors thereon set forth at
pages 79 through 120 and 122 herein are incorporated herein by reference.
Quarterly Financial Information set forth at page 125 herein is incorporated herein by reference.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
Not Applicable.
Item 9A. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
TWC, under the supervision and with the participation of its management, including the Chief Executive
Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of TWC’s “disclosure
controls and procedures” (as such term is defined in Rule 13a-15(e) under the Exchange Act) as of the end of the
period covered by this report. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer
concluded that TWC’s disclosure controls and procedures are effective to ensure that information required to be
disclosed in reports filed or submitted by TWC under the Exchange Act is recorded, processed, summarized and
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