Time Warner Cable 2008 Annual Report Download - page 87

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In addition, LBCB and Lehman Brothers Bank, FSB (“LBB”), subsidiaries of Lehman Brothers Holdings Inc.
(“Lehman”), are lenders under the 2008 Bridge Facility and the Revolving Credit Facility, respectively, with
undrawn commitments of $138 million and $125 million, respectively, as of December 31, 2008. On September 15,
2008, Lehman filed a petition under Chapter 11 of the U.S. Bankruptcy Code with the U.S. Bankruptcy Court for the
Southern District of New York (the “Lehman Bankruptcy”). TWC has not requested to borrow under either the 2008
Bridge Facility or the Revolving Credit Facility since the Lehman Bankruptcy, and neither LBCB nor LBB has been
placed in receivership or a similar proceeding as of February 19, 2009. While the Company believes that LBCB and
LBB are contractually obligated under the 2008 Bridge Facility and the Revolving Credit Facility, respectively, the
Company does not expect that LBCB and LBB will fund any future borrowing requests and is uncertain as to
whether another lender might assume either commitment. Accordingly, the Company’s unused committed capacity
as of December 31, 2008 excludes the undrawn commitments of LBCB and LBB. The Company believes that it
continues to have sufficient liquidity to meet its needs for the foreseeable future, including payment of the Special
Dividend, even if LBCB and/or LBB fails to fund its portion of any future borrowing requests.
Contractual and Other Obligations
Contractual Obligations
The Company has obligations under certain contractual arrangements to make future payments for goods and
services. These contractual obligations secure the future rights to various assets and services to be used in the
normal course of operations. For example, the Company is contractually committed to make certain minimum lease
payments for the use of property under operating lease agreements. In accordance with applicable accounting rules,
the future rights and obligations pertaining to firm commitments, such as operating lease obligations and certain
purchase obligations under contracts, are not reflected as assets or liabilities in the accompanying consolidated
balance sheet.
77
TIME WARNER CABLE INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION—(Continued)