Time Warner Cable 2011 Annual Report Download - page 113

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TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
16. MERGER-RELATED AND RESTRUCTURING COSTS
Merger-related Costs
For the year ended December 31, 2011, the Company incurred merger-related costs of $10 million in connection with
the NaviSite and NewWave cable system acquisitions and the pending Insight acquisition, all of which were paid as of
December 31, 2011. The Company expects to incur additional merger-related costs during 2012 related to the Insight
acquisition.
Restructuring Costs
Beginning in the first quarter of 2009, the Company began a restructuring to improve operating efficiency, primarily
related to employee terminations and other exit costs, including the termination of a facility lease during the second quarter
of 2010. Through December 31, 2011, the Company incurred costs of $193 million and made payments of $160 million
related to this restructuring. Through December 31, 2010, the Company terminated approximately 2,200 employees and
terminated approximately 775 additional employees during the year ended December 31, 2011. The Company expects to
incur restructuring costs during 2012 in connection with various initiatives intended to improve operating efficiency,
primarily related to employee terminations. Information relating to restructuring costs is as follows (in millions):
Employee
Termination
Costs
Other
Exit
Costs Total
Costs incurred .................................................. $ 68 $ 13 $ 81
Cash paid ...................................................... (48) (12) (60)
Remaining liability as of December 31, 2009 .......................... 20 1 21
Costs incurred .................................................. 33 19 52
Cash paid ...................................................... (39) (12) (51)
Remaining liability as of December 31, 2010 .......................... 14 8 22
Costs incurred .................................................. 44 16 60
Cash paid ...................................................... (29) (20) (49)
Remaining liability as of December 31, 2011(a) ......................... $ 29 $ 4 $ 33
(a) Of the remaining liability as of December 31, 2011, $30 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 March 2014.
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, 2011, 2010 and 2009 is as
follows (in millions):
Year Ended December 31,
2011 2010 2009
Federal:
Current ................................................... $ 69 $ 127 $ 83
Deferred .................................................. 843 654 543
State:
Current ................................................... 88 69 61
Deferred .................................................. (205) 33 133
Total ..................................................... $ 795 $ 883 $ 820
105