Time Warner Cable 2008 Annual Report Download - page 140

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14. RELATED PARTIES
In the normal course of conducting its business, the Company has various transactions with Time Warner,
affiliates and subsidiaries of Time Warner, Comcast and the equity-method investees of TWC. Effective August 1,
2006, as a result of the completion of the Redemptions, Comcast is no longer a related party. Upon completion of the
Separation, Time Warner and its affiliates will no longer be related parties to TWC. A summary of these transactions
is as follows for the years ended December 31, 2008, 2007 and 2006 (in millions):
2008 2007 2006
Year Ended December 31,
Revenues:
Advertising ......................................... $ 24 $ 11 $ 9
AOL broadband subscriptions ........................... 4 8 19
Road Runner revenues from TWC’s unconsolidated cable
television systems joint ventures
(a)
...................... — — 65
Other ............................................. 1 1 1
Total .............................................. $ 29 $ 20 $ 94
Costs of revenues:
Programming services provided by subsidiaries of Time Warner
and affiliates ...................................... $ (1,033) $ (1,004) $ (718)
Programming services provided by affiliates of Comcast........ — — (29)
Connectivity services provided by subsidiaries of Time Warner
and affiliates ...................................... (1) (4) (39)
Other costs charged by subsidiaries of Time Warner and
affiliates ......................................... — (4) (33)
Other costs charged by equity investees .................... (20) (12) (11)
Total .............................................. $ (1,054) $ (1,024) $ (830)
Selling, general and administrative expenses:
Management fee income from unconsolidated cable television
system joint ventures
(a)
.............................. $ — $ — $ 28
Fees paid to Time Warner for reimbursement of certain
administrative support functions and related overhead costs.... (21) (14) (13)
Transactions with subsidiaries of Time Warner and affiliates..... (1) (2) (6)
Total .............................................. $ (22) $ (16) $ 9
Interest expense, net:
Interest income on amounts receivable from unconsolidated cable
television system joint ventures
(a)
....................... $ — $ — $ 39
Interest expense paid to Time Warner
(b)
.................... — — (112)
Total .............................................. $ — $ — $ (73)
(a)
Amounts represent transactions with TKCCP, an equity-method investee, prior to the distribution of its assets on January 1, 2007. Refer to
Note 10 for further details regarding the dissolution of TKCCP.
(b)
Amounts represent interest paid to ATC, a subsidiary of Time Warner, in connection with its $2.4 billion mandatorily redeemable preferred
equity interest in TWE, which ATC contributed to TW NY, a subsidiary of TWC, in connection with the Adelphia/Comcast Transactions on
July 28, 2006. Refer to Note 5 for further details.
130
TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)