Time Warner Cable 2012 Annual Report Download - page 109

TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table summarizes the changes in the components of accumulated other comprehensive loss, net, (e.g.,
unrealized losses on pension benefit obligation and deferred gains (losses) on cash flow hedges) included in TWC
shareholders’ equity from January 1 through December 31 (in millions):
2012 2011 2010
Accumulated unrealized losses on pension benefit obligation:
Balance at beginning of year ..........................................$ (543) $ (293) $ (317)
Other comprehensive income (loss) before reclassifications, net of tax ......... (201) (266) 12
Amounts reclassified from accumulated other comprehensive loss, net of tax:
Amortization of actuarial loss(a) ...................................... 59 27 29
Income tax benefit ................................................ (25) (11) (17)
Amortization of actuarial loss, net of tax ............................... 34 16 12
Other comprehensive income (loss), net of tax ............................ (167) (250) 24
Balance at end of year ................................................$ (710) $ (543) $ (293)
Accumulated deferred gains (losses) on cash flow hedges:
Balance at beginning of year ..........................................$ (16) $ 2 $ (2)
Other comprehensive income (loss) before reclassifications, net of tax ......... 109 (43) 5
Amounts reclassified from accumulated other comprehensive loss, net of tax:
Effective portion of (gain) loss on cash flow hedges(b) .................... (76) 41 (2)
Income tax provision (benefit) ....................................... 30 (16) 1
Effective portion of (gain) loss on cash flow hedges, net of tax ............. (46) 25 (1)
Other comprehensive income (loss), net of tax ............................ 63 (18) 4
Balance at end of year ................................................$ 47 $ (16) $ 2
(a) Amounts are included in the computation of net periodic benefit costs as discussed further in Note 14.
(b) Amounts in 2012 and 2011 are recorded in other income (expense), net, and amounts in 2010 are recorded in cost of revenue in the consolidated
statement of operations as discussed further in Note 10.
13. EQUITY-BASED COMPENSATION
The Company has one active equity plan (the “2011 Plan”) under which TWC is authorized to grant restricted stock
units (“RSUs”) and options to purchase shares of TWC common stock to its employees and non-employee directors. Prior to
stockholder approval of the 2011 Plan, the Company’s equity awards were made under the Company’s 2006 Stock Incentive
Plan. As of December 31, 2012, the 2011 Plan provides for the issuance of up to 20.0 million shares of TWC common stock,
of which 15.5 million shares were available for grant.
Equity-based compensation expense and the related tax benefit recognized for the years ended December 31, 2012, 2011
and 2010 was as follows (in millions):
Year Ended December 31,
2012 2011 2010
Equity-based compensation expense recognized:
Restricted stock units(a) ...............................................$ 85 $ 75 $ 64
Stock options ....................................................... 45 38 45
Total equity-based compensation expense(a) ...............................
$ 130 $ 113 $ 109
Tax benefit recognized ...............................................
$ 51 $ 44 $ 43
(a) Amounts in 2011 include $1 million of equity-based compensation expense that is classified in merger-related and restructuring costs in the
consolidated statement of operations.
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