Time Warner Cable 2012 Annual Report Download - page 95

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TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Set forth below is a reconciliation of net income attributable to TWC common shareholders per basic and diluted
common share (in millions, except per share data):
Year Ended December 31,
2012 2011 2010
Net income attributable to TWC common shareholders .....................$ 2,144 $ 1,654 $ 1,299
Net income attributable to participating securities(a) ........................ 11 11 9
Net income attributable to TWC shareholders .............................$ 2,155 $ 1,665 $ 1,308
Average common shares outstanding:
Basic ............................................................. 307.8 329.7 354.2
Dilutive effect of nonparticipating equity awards .......................... 2.0 2.6 2.3
Dilutive effect of participating equity awards(a) ............................ 2.6 3.0 3.0
Diluted ........................................................... 312.4 335.3 359.5
Net income per common share attributable to TWC common shareholders:
Basic .............................................................$ 6.97 $ 5.02 $ 3.67
Diluted ...........................................................$ 6.90 $ 4.97 $ 3.64
(a) The Company’s restricted stock units granted to employees and non-employee directors are considered participating securities with respect to regular
quarterly cash dividends.
Diluted net income per common share attributable to TWC common shareholders for the year ended December 31, 2011
excludes 2.2 million common shares that may be issued under the Company’s equity-based compensation plans because they
do not have a dilutive effect. For the years ended December 31, 2012 and 2010, antidilutive common shares related to equity-
based compensation plans were insignificant.
5. BUSINESS ACQUISITIONS
Insight Acquisition
On February 29, 2012, TWC completed its acquisition of Insight Communications Company, Inc. and its subsidiaries
(“Insight”) for $1.339 billion in cash, net of cash acquired and including a third-quarter 2012 post-closing purchase price
adjustment of $4 million, and repaid $1.164 billion outstanding under Insight’s senior secured credit facility (including
accrued interest), and terminated the facility. Additionally, during 2012, Insight’s $495 million in aggregate principal amount
of senior notes due 2018 were redeemed for $579 million in cash (including premiums and accrued interest). The financial
results for Insight, which served subscribers in Kentucky, Indiana and Ohio representing approximately 1.6 million primary
service units (“PSUs”) as of the acquisition date, have been included in the Company’s consolidated financial statements
from the acquisition date and did not significantly impact the Company’s consolidated financial results for the year ended
December 31, 2012.
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