Time Warner Cable 2009 Annual Report Download - page 104

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Benefit payments for the TWC Pension Plans are expected to be $21 million in 2010, $25 million in 2011, $30 million in 2012,
$36 million in 2013, $42 million in 2014 and $350 million in 2015 to 2019.
Defined Contribution Plan
TWC employees also participate in a defined contribution plan, the TWC Savings Plan, for which the expense for employer
matching contributions totaled $61 million in 2009, $63 million in 2008 and $59 million in 2007. The Company’s contributions to the
TWC Savings Plan are primarily based on a percentage of the employees’ elected contributions and are subject to plan provisions.
15. RELATED PARTIES
In the normal course of conducting its business, the Company has various transactions with Time Warner, affiliates and subsidiaries
of Time Warner and TWC’s equity-method investments. Effective March 12, 2009, upon completion of the Separation, Time Warner and
its affiliates are no longer a related party. A summary of these transactions is as follows for the years ended December 31, 2009, 2008 and
2007 (in millions):
2009 2008 2007
Year Ended December 31,
Revenues:
Advertising . ....................................................... $ 15 $ 24 $ 11
Other............................................................. 1 5 9
Total ............................................................. $ 16 $ 29 $ 20
Costs of revenues:
Programming services provided by equity-method investments .................. $ (231) $ (176) $ (181)
Programming services provided by subsidiaries of Time Warner and affiliates . . ..... (168) (857) (823)
Other costs charged by equity-method investments ........................... (16) (20) (12)
Other costs charged by subsidiaries of Time Warner and affiliates ................ — (1) (8)
Total ............................................................. $ (415) $ (1,054) $ (1,024)
Selling, general and administrative expenses:
Fees paid to Time Warner for reimbursement of certain administrative support
functions and related overhead costs .................................... $ (3) $ (21) $ (14)
Other transactions with subsidiaries of Time Warner and affiliates ................ — (1) (2)
Total ............................................................. $ (3) $ (22) $ (16)
Reimbursements of Programming Expense
A subsidiary of Time Warner previously agreed to assume a portion of the cost of TWC’s contractual carriage arrangements with a
programmer in order to secure other forms of content from the same programmer over time periods consistent with the terms of the
respective TWC carriage contract. The amount assumed represented Time Warner’s best estimate of the fair value of the other content
acquired by the Time Warner subsidiary at the time the agreements were executed. Under this arrangement, the Time Warner subsidiary
made periodic payments to TWC that are classified as a reduction of programming costs in the consolidated statement of operations.
Through the date of the Separation, payments received or receivable under this agreement totaled $9 million in 2009, $39 million in 2008
and $35 million in 2007. This agreement terminated during 2009.
16. TWC SHAREHOLDERS’ EQUITY
Shares Authorized and Outstanding
As of December 31, 2009, TWC is authorized to issue up to 8.333 billion shares of TWC Common Stock, par value $0.01 per share,
of which 352.5 million shares were issued and outstanding. TWC is also authorized to issue up to 333 million shares of preferred stock,
par value $0.01 per share. As of December 31, 2009, no preferred shares have been issued, nor does the Company have any current plans
to issue any preferred shares.
As of December 31, 2008, TWC was authorized to issue up to 6.667 billion shares of Class A common stock, par value $0.01 per
share, 1.667 billion shares of Class B common stock, par value $0.01 per share, and 333 million shares of preferred stock, par value $0.01
per share. As of December 31, 2008, 300.7 million shares of Class A common stock and 25.0 million shares of Class B common stock
92
TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)