Time Warner Cable 2010 Annual Report Download - page 29

Other Federal Regulatory Requirements
The Communications Act also includes numerous other provisions, applicable to some extent, to one or more of
TWC’s services. These provisions apply to customer service, subscriber privacy, marketing practices, equal employment
opportunity, technical standards and equipment compatibility, antenna structure notification, marking, lighting,
emergency alert system requirements, disability access, and the collection of annual regulatory fees, which are
calculated based on the number of subscribers served, the types of FCC licenses held and certain interstate revenue
thresholds. The FCC also actively regulates other aspects of TWC’s video services, including the mandatory blackout of
syndicated, network and sports programming; customer service standards; political advertising; indecent or obscene
programming; Emergency Alert System requirements for analog and digital services; closed captioning requirements for
the hearing impaired; commercial restrictions on children’s programming; recordkeeping and public file access
requirements; and technical rules relating to operation of the cable network.
Operating Partnerships, Joint Ventures and Significant Investments
Time Warner Entertainment Company, L.P.
TWE is a Delaware limited partnership that was formed in 1992 and is wholly owned by TWC. As of December 31,
2010, TWE held cable systems with 3.2 million video subscribers. As of December 31, 2010, TWE had $2.6 billion in
principal amount of outstanding debt securities with maturities ranging from 2012 to 2033 and fixed interest rates ranging
from 8.375% to 10.15%. TWC is a guarantor of TWE’s $2.6 billion in principal amount of outstanding debt securities.
TWE is also a guarantor under TWC’s $4.0 billion Revolving Credit Facility, its $4.0 billion commercial paper program
and its $20.4 billion in principal amount of outstanding debt securities. See “Management’s Discussion and Analysis of
Results of Operations and Financial Condition—Financial Condition and Liquidity—Outstanding Debt and Mandatorily
Redeemable Preferred Equity and Available Financial Capacity.”
TWE-A/N Partnership Agreement
The following description summarizes certain provisions of the partnership agreement relating to the Time Warner
Entertainment—Advance/Newhouse Partnership (“TWE-A/N”). Such description does not purport to be complete and is
subject to, and is qualified in its entirety by reference to, the provisions of the TWE-A/N partnership agreement.
Partners of TWE-A/N. The general partnership interests in TWE-A/N are held by Time Warner NY Cable LLC
(“TW NY Cable”) and TWE (the “TW Partners”) and Advance/Newhouse Partnership (“A/N”), a partnership owned by
wholly owned subsidiaries of Advance Publications Inc. and Newhouse Broadcasting Corporation. The TW Partners also
hold preferred partnership interests. TWE acquired its interest in TWE-A/N as the result of a merger of its wholly owned
subsidiary, TWE-A/N Holdco, L.P. (which previously held the interest), into TWE on December 31, 2008.
2002 restructuring of TWE-A/N. The TWE-A/N cable television joint venture was formed by TWE and A/N in
December 1995. A restructuring of the partnership was completed during 2002. As a result of this restructuring, cable
systems and their related assets and liabilities serving approximately 2.1 million video subscribers as of December 31,
2002 (which amount is not included in TWE-A/N’s 4.6 million consolidated video subscribers, as of December 31,
2010) located primarily in Florida (the “A/N Systems”), were transferred to a wholly owned subsidiary of TWE-A/N (the
“A/N Subsidiary”). As part of the restructuring, effective August 1, 2002, A/N’s interest in TWE-A/N was converted into
an interest that tracks the economic performance of the A/N Systems, while the TW Partners retain the economic interests
and associated liabilities in the remaining TWE-A/N cable systems. TWE-A/N’s financial results, other than the results of
the A/N Systems, are consolidated with TWC’s.
Management and operations of TWE-A/N. Subject to certain limited exceptions, TWE is the managing partner,
with exclusive management rights of TWE-A/N, other than with respect to the A/N Systems. Also, subject to certain
limited exceptions, A/N has authority for the supervision of the day-to-day operations of the A/N Subsidiary and the
A/N Systems. In connection with the 2002 restructuring, TWE entered into a services agreement with A/N and the
A/N Subsidiary under which TWE agreed to exercise various management functions, including oversight of programming
and various engineering-related matters. TWE and A/N also agreed to periodically discuss cooperation with respect to
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