Time Warner Cable 2014 Annual Report Download - page 111

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TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
15. MERGER-RELATED AND RESTRUCTURING COSTS
Merger-related and restructuring costs for the years ended December 31, 2014, 2013 and 2012 consisted of the
following (in millions):
Year Ended December 31,
2014 2013 2012
Merger-related costs ............................................ $ 198 $ 13 $ 54
Restructuring costs ............................................. 27 106 61
Total merger-related and restructuring costs ......................... $ 225 $ 119 $ 115
Merger-related Costs
For the year ended December 31, 2014, the Company incurred merger-related costs of $198 million, which primarily
consisted of Comcast merger-related costs, including employee retention costs of $121 million and advisory and legal fees
of $74 million. Merger-related costs in 2014 also included $3 million of costs incurred in connection with the DukeNet
acquisition. For the year ended December 31, 2013, the Company incurred merger-related costs of $13 million in
connection with the Insight and DukeNet acquisitions. For the year ended December 31, 2012, the Company incurred
merger-related costs of $54 million, primarily associated with the Insight acquisition. The Company expects to incur
additional merger-related costs in 2015. Changes in accruals for merger-related costs from January 1 through
December 31 are presented below (in millions):
Employee
Costs
Other
Costs Total
Costs incurred ................................................. $ 22 $ 32 $ 54
Cash paid .................................................... (15) (25) (40)
Remaining liability as of December 31, 2012 ........................ 7 7 14
Costs incurred ................................................. — 13 13
Cash paid .................................................... (4) (17) (21)
Remaining liability as of December 31, 2013 ........................ 3 3 6
Costs incurred ................................................. 68 75 143
Adjustments .................................................. (1) — (1)
Cash paid .................................................... (5) (61) (66)
Remaining liability as of December 31, 2014(a) ....................... $ 65 $ 17 $ 82
(a) The remaining $82 million liability as of December 31, 2014 is classified as a current liability in the consolidated balance sheet.
In addition to the cash settled liabilities shown in the table above, the Company also issued retention RSUs, as
discussed in Note 13, which resulted in additional merger-related costs of $56 million for the year ended December 31,
2014.
103