Time Warner Cable 2011 Annual Report Download - page 103

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TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Fair Value of Other Financial Instruments
The Company’s other financial instruments not measured at fair value on a recurring basis include cash and equivalents,
receivables, accounts payable, accrued liabilities, long-term debt not subject to fair value hedge accounting and mandatorily
redeemable preferred equity and are reflected in the consolidated financial statements at cost. With the exception of long-
term debt and mandatorily redeemable preferred equity, cost approximates fair value for these instruments due to their short-
term nature. The carrying value and related estimated fair value of the Company’s long-term debt, excluding capital leases,
and mandatorily redeemable preferred equity was $26.727 billion and $30.445 billion, respectively, as of December 31, 2011
and $23.418 billion and $26.236 billion, respectively, as of December 31, 2010. Estimated fair values for long-term debt and
mandatorily redeemable preferred equity have generally been determined by reference to the market value of the instrument
as quoted on a national securities exchange or in an over-the-counter market. In cases where a quoted market value is not
available, fair value is based on an estimate using present value or other valuation techniques.
13. TWC SHAREHOLDERS’ EQUITY
Shares Authorized and Outstanding
As of December 31, 2011, TWC is authorized to issue up to approximately 8.333 billion shares of TWC common stock,
par value $0.01 per share, of which 315.0 million and 348.3 million shares were issued and outstanding as of December 31,
2011 and 2010, respectively. TWC is also authorized to issue up to approximately 1.0 billion shares of preferred stock, par
value $0.01 per share. As of December 31, 2011 and 2010, no preferred shares have been issued, nor does the Company have
current plans to issue preferred shares.
Common Stock Repurchase Program
On October 29, 2010, TWC’s Board of Directors authorized a $4.0 billion common stock repurchase program (the
“Stock Repurchase Program”). Purchases under the Stock Repurchase Program may be made from time to time on the open
market and in privately negotiated transactions. The size and timing of the Company’s purchases under the Stock Repurchase
Program are based on a number of factors, including TWC’s common stock price as well as business and market conditions.
From January 1, 2011 through December 31, 2011, the Company repurchased 37.3 million shares of TWC common stock for
$2.632 billion, including 0.3 million shares repurchased for $18 million that settled in January 2012. As of December 31,
2011, the Company had $854 million remaining under the Stock Repurchase Program. On January 25, 2012, the Company’s
Board of Directors increased the remaining authorization under the Stock Repurchase Program ($758 million as of
January 25, 2012) to an aggregate of up to $4.0 billion of TWC common stock effective January 26, 2012.
Changes in Common Stock
Changes in the Company’s common stock by share class from January 1 through December 31 are presented below (in
millions):
TWC
Class A
Common
Stock
TWC
Class B
Common
Stock
TWC
Common
Stock
Balance as of December 31, 2008 .................................... 300.7 25.0 —
Shares issued in the TW NY Exchange(a) .............................. 26.7 — —
Shares converted in the Recapitalization(a) ............................. (327.4) (25.0) 352.4
Shares issued under equity-based compensation plans .................... — — 0.1
Balance as of December 31, 2009 .................................... — — 352.5
Shares issued under equity-based compensation plans .................... 3.8
Repurchase and retirement of common stock ........................... (8.0)
Balance as of December 31, 2010 .................................... 348.3
Shares issued under equity-based compensation plans .................... 4.0
Repurchase and retirement of common stock ........................... (37.3)
Balance as of December 31, 2011 .................................... 315.0
(a) Refer to Note 5 for further details regarding the TW NY Exchange and the Recapitalization.
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