Time Warner Cable 2010 Annual Report Download - page 116

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16. RESTRUCTURING COSTS
Beginning in the first quarter of 2009, the Company began a restructuring to improve operating efficiency, primarily
related to headcount reductions of approximately 900 and 1,300 in 2010 and 2009, respectively, and other exit costs,
including the termination of a facility lease that occurred during the second quarter of 2010. Through December 31, 2010,
the Company incurred costs of $133 million and made payments of $111 million related to this restructuring. The
Company expects to incur additional restructuring costs during 2011. Information relating to this restructuring is as
follows (in millions):
Employee
Terminations
Other
Exit Costs Total
Accruals ............................................... $ 68 $ 13 $ 81
Cash paid .............................................. (48) (12) (60)
Remaining liability as of December 31, 2009 .................... 20 1 21
Accruals ............................................... 33 19 52
Cash paid .............................................. (39) (12) (51)
Remaining liability as of December 31, 2010
(a)
................... $ 14 $ 8 $ 22
(a)
Of the remaining liability as of December 31, 2010, $19 million is classified as a current liability, with the remaining amount classified as a
noncurrent liability in the consolidated balance sheet. Amounts are expected to be paid through 2014.
Between January 1, 2005 and December 31, 2008, the Company underwent a restructuring plan to simplify its
organizational structure and enhance its customer focus, and incurred costs of $80 million related to this restructuring, of
which $15 million was incurred during 2008, and through December 31, 2010, the Company made payments of
$80 million related to this restructuring. As of December 31, 2010, all amounts accrued under this restructuring plan have
been paid.
17. INCOME TAXES
Prior to the Separation, TWC was not a separate taxable entity for U.S. federal and various state income tax purposes
and its results were included in the consolidated U.S. federal and certain consolidated or combined state income tax
returns of Time Warner. For taxable periods after the Separation, TWC files separate U.S. federal and consolidated or
combined state income tax returns. The following income tax information has been prepared assuming TWC was a stand-
alone taxpayer for all periods presented.
The current and deferred income tax (benefit) provision for the years ended December 31, 2010, 2009 and 2008 is as
follows (in millions):
2010 2009 2008
Year Ended December 31,
Federal:
Current .............................................. $ 127 $ 83 $ (188)
Deferred ............................................. 654 543 (3,967)
State:
Current .............................................. 69 61 39
Deferred ............................................. 33 133 (993)
Total . ............................................... $ 883 $ 820 $ (5,109)
104
TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)