Time Warner Cable 2007 Annual Report Download - page 73

Download and view the complete annual report

Please find page 73 of the 2007 Time Warner Cable annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 149

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149

Free Cash Flow
Reconciliation of Cash provided by operating activities to Free Cash Flow. The following table reconciles
Cash provided by operating activities to Free Cash Flow (in millions):
2007 2006 2005
Years Ended December 31,
Cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,563 $ 3,595 $ 2,540
Reconciling items:
Discontinued operations, net of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (1,038) (104)
Adjustments relating to the operating cash flow of discontinued operations . . . . . . . . . . (47) 926 (133)
Cash provided by continuing operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,516 3,483 2,303
Add: Excess tax benefit from exercise of stock options. . . . . . . . . . . . . . . . . . . . . . . . . . 5 4 —
Less:
Capital expenditures from continuing operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,433) (2,718) (1,837)
Partnership tax distributions, stock option distributions and principal payments on
capital leases of continuing operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (28) (34) (31)
Free Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,060 $ 735 $ 435
Free Cash Flow increased from $735 million in 2006 to $1.060 billion in 2007 primarily as a result of an
increase in cash provided by continuing operating activities, partially offset by an increase in capital expenditures
from continuing operations, as discussed above.
Free Cash Flow increased from $435 million in 2005 to $735 million in 2006. This increase of $300 million
was primarily driven by a $906 million increase in OIBDA, as previously discussed, and a decrease in working
capital requirements, partially offset by an increase in capital expenditures from continuing operations.
68
TIME WARNER CABLE INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION—(Continued)