Time Warner Cable 2008 Annual Report Download - page 127

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Information relating to the restructuring costs is as follows (in millions):
Employee
Terminations
Other
Exit Costs Total
Remaining liability as of December 31, 2006 . . .............. $ 18 $ 5 $ 23
Accruals ........................................... 7 6 13
Cash paid .......................................... (12) (8) (20)
Remaining liability as of December 31, 2007 . . .............. 13 3 16
Accruals ........................................... 14 1 15
Cash paid .......................................... (20) (2) (22)
Remaining liability as of December 31, 2008 . . .............. $ 7 $ 2 $ 9
9. GOODWILL AND INTANGIBLE ASSETS
TWC has a significant number of intangible assets, including customer relationships and cable franchises.
Goodwill and intangible assets are tested annually for impairment during the fourth quarter, or earlier upon the
occurrence of certain events or substantive changes in circumstances. The Company’s 2008 annual impairment
analysis did not result in any goodwill impairments, but did result in a noncash pretax impairment on cable franchise
rights of $14.822 billion as of December 31, 2008. The Company determined during its annual impairment reviews
that no impairments existed as of December 31, 2007 or 2006, respectively.
A summary of changes in the Company’s goodwill for the years ended December 31, 2008 and 2007 is as
follows (in millions):
Balance as of December 31, 2006 ............................................... $ 2,059
Purchase price adjustments related to the Adelphia Acquisition and the Exchange ............ 64
Other .................................................................... (6)
Balance as of December 31, 2007 ............................................... 2,117
Other .................................................................... (16)
Balance as of December 31, 2008 ............................................... $ 2,101
As of December 31, 2007 and 2006, the Company’s intangible assets and related accumulated amortization
consisted of the following (in millions):
Gross
Accumulated
Amortization Net Gross
Accumulated
Amortization Net
December 31, 2008 December 31, 2007
Intangible assets subject to amortization:
Customer relationships. . . . . . . . . . . . . . . . . . . . $ 953 $ (566) $ 387 $ 954 $ (330) $ 624
Renewal of cable franchise and access rights . . . . 276 (175) 101 242 (153) 89
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 (33) 5 38 (32) 6
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,267 $ (774) $ 493 $ 1,234 $ (515) $ 719
Intangible assets not subject to amortization:
Cable franchise rights . . . . . . . . . . . . . . . . . . . . $ 25,476 $ (1,385) $ 24,091 $40,312 $ (1,390) $ 38,922
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 — 3 3 — 3
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25,479 $ (1,385) $ 24,094 $40,315 $ (1,390) $ 38,925
The Company recorded amortization expense of $262 million in 2008, $272 million in 2007 and $167 million
in 2006. Based on the current amount of intangible assets subject to amortization, the estimated amortization
expense is expected to be $262 million in 2009, $168 million in 2010, $19 million in 2011, $14 million in 2012 and
$7 million in 2013. These amounts may vary as acquisitions and dispositions occur in the future.
117
TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)