Time Warner Cable 2010 Annual Report Download - page 125

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Other Current Liabilities
Other current liabilities as of December 31, 2010 and 2009 consisted of (in millions):
2010 2009
December 31,
Accrued interest ..................................................... $ 507 $ 469
Accrued compensation and benefits ....................................... 357 327
Accrued franchise fees ................................................ 166 166
Accrued insurance ................................................... 152 142
Accrued sales and other taxes ........................................... 92 116
Accrued rent ........................................................ 50 41
Accrued share repurchases ............................................. 43 —
Accrued marketing support ............................................. 27 53
Other accrued expenses ................................................ 235 258
Total other current liabilities ............................................ $ 1,629 $ 1,572
21. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS
TWE and TW NY (the “Guarantor Subsidiaries”) are subsidiaries of Time Warner Cable Inc. (the “Parent
Company”). The Guarantor Subsidiaries have fully and unconditionally, jointly and severally, directly or indirectly,
guaranteed the debt issued by the Parent Company in its 2007 registered exchange offer and its 2008, 2009 and 2010
public offerings. The Parent Company owns all of the voting interests, directly or indirectly, of both TWE and TW NY.
The SEC’s rules require that condensed consolidating financial information be provided for subsidiaries that have
guaranteed debt of a registrant issued in a public offering, where each such guarantee is full and unconditional and where
the voting interests of the subsidiaries are wholly owned by the registrant. Set forth below are condensed consolidating
financial statements presenting the financial position, results of operations, and cash flows of (i) the Parent Company,
(ii) the Guarantor Subsidiaries on a combined basis (as such guarantees are joint and several), (iii) the direct and indirect
non-guarantor subsidiaries of the Parent Company (the “Non-Guarantor Subsidiaries”) on a combined basis and (iv) the
eliminations necessary to arrive at the information for Time Warner Cable Inc. on a consolidated basis.
There are no legal or regulatory restrictions on the Parent Company’s ability to obtain funds from any of its
subsidiaries through dividends, loans or advances.
These condensed consolidating financial statements should be read in conjunction with the consolidated financial
statements of Time Warner Cable Inc.
Basis of Presentation
In presenting the condensed consolidating financial statements, the equity method of accounting has been applied to
(i) the Parent Company’s interests in the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries, (ii) the Guarantor
Subsidiaries’ interests in the Non-Guarantor Subsidiaries and (iii) the Non-Guarantor Subsidiaries interests in the
Guarantor Subsidiaries, where applicable, even though all such subsidiaries meet the requirements to be consolidated
under U.S. generally accepted accounting principles. All intercompany balances and transactions between the Parent
Company, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries have been eliminated, as shown in the column
“Eliminations.”
The accounting bases in all subsidiaries, including goodwill and identified intangible assets, have been allocated to
the applicable subsidiaries.
Prior to March 12, 2009, Time Warner Cable Inc. 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 state income tax returns of
113
TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)