Time Warner Cable 2008 Annual Report Download - page 101

TIME WARNER CABLE INC.
CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY
Common
Stock
Paid-in-
Capital
Retained
Earnings
(Deficit) Total
(in millions)
BALANCE AS OF DECEMBER 31, 2005 . . . . . . . $ 10 $ 17,950 $ 2,387 $ 20,347
Net income
(a)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 1,976 1,976
Change in pension benefit obligation, net of
$1 million income tax impact . . . . . . . . . . . . . . . . — — 1 1
Comprehensive income . . . . . . . . . . . . . . . . . . . . . . — — 1,977 1,977
Change in underfunded / unfunded pension benefit
obligation upon adoption of FAS 158, net of
$84 million tax benefit. . . . . . . . . . . . . . . . . . . . . — — (124) (124)
Shares of Class A common stock issued in the
Adelphia acquisition . . . . . . . . . . . . . . . . . . . . . . 2 5,498 — 5,500
Reclassification of mandatorily redeemable Class A
common stock
(b)
......................... — 984 — 984
Redemption of Comcast’s interest in TWC . . . . . . . . (2) (4,325) — (4,327)
Adjustment to goodwill resulting from the pushdown
of Time Warner Inc.’s basis in TWC . . . . . . . . . . . — (719) — (719)
Equity-based compensation . . . . . . . . . . . . . . . . . . . — 33 — 33
Allocations from Time Warner Inc. and other, net
(c)
. . — (107) — (107)
BALANCE AS OF DECEMBER 31, 2006 . . . . . . . 10 19,314 4,240 23,564
Net income
(a)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 1,123 1,123
Change in underfunded / unfunded pension benefit
obligation, net of $29 million income tax benefit . . — — (43) (43)
Change in realized and unrealized losses on derivative
financial instruments, net of $1 million income tax
benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (1) (1)
Comprehensive income . . . . . . . . . . . . . . . . . . . . . . — — 1,079 1,079
Impact of adopting new accounting
pronouncements
(d)
. . . . . . . . . . . . . . . . . . . . . . . . — — (34) (34)
Equity-based compensation . . . . . . . . . . . . . . . . . . . — 59 — 59
Allocations from Time Warner Inc. and other, net
(c)
.. — 38 — 38
BALANCE AS OF DECEMBER 31, 2007 . . . . . . . 10 19,411 5,285 24,706
Net loss
(a)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (7,344) (7,344)
Change in underfunded / unfunded pension benefit
obligation, net of $192 million income tax benefit. . — — (290) (290)
Change in realized and unrealized losses on derivative
financial instruments, net of $2 million income tax
benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (3) (3)
Comprehensive loss . . . . . . . . . . . . . . . . . . . . . . . . — — (7,637) (7,637)
Impact of adopting new accounting
pronouncements
(d)
........................ — — (1) (1)
Equity-based compensation . . . . . . . . . . . . . . . . . . . — 78 — 78
Allocations from Time Warner Inc. and other, net
(c)
.. — 18 — 18
BALANCE AS OF DECEMBER 31, 2008 . . . . . . . $ 10 $ 19,507 $ (2,353) $ 17,164
(a)
Net income (loss) included income from discontinued operations of $1.038 billion for the year ended December 31, 2006 (none for the
years ended December 31, 2008 and 2007).
(b)
The mandatorily redeemable Class A common stock represents shares of TWC’s Class A common stock that were held by Comcast
Corporation (“Comcast”) until July 31, 2006. During 2004, these shares were classified as mandatorily redeemable as a result of an
agreement with Comcast that under certain circumstances would have required TWC to redeem such shares. During 2006, this
requirement terminated upon the closing of the redemption of Comcast’s interest in TWC and Time Warner Entertainment Company,
L.P., and as a result, these shares were reclassified to shareholders’ equity (Class A common stock and paid-in-capital) before ultimately
being redeemed on July 31, 2006.
(c)
The amounts primarily represent the change in TWC’s accrued liability payable to Time Warner Inc. for vested employee stock options,
as well as other amounts pursuant to accounting for equity-based compensation plans.
(d)
The amount relates to the impact of adopting the provisions of Emerging Issues Task Force (“EITF”) Issue No. 06-10, Accounting for
Collateral Assignment Split-Dollar Life Insurance Arrangements, of $(1) million for the year ended December 31, 2008, and EITF 06-2,
Accounting for Sabbatical Leave and Other Similar Benefits, of $37 million, partially offset by the impact of adopting the provisions of
Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes—an interpretation of FASB
Statement No. 109, of $3 million for the year ended December 31, 2007.
See accompanying notes.
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