Time Warner Cable 2014 Annual Report Download - page 42

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TIME WARNER CABLE INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
INTRODUCTION
Management’s discussion and analysis of results of operations and financial condition (“MD&A”) is a supplement to
the accompanying consolidated financial statements and provides additional information on Time Warner Cable Inc.’s
(together with its subsidiaries, “TWC” or the “Company”) business, any recent developments, financial condition, cash
flows and results of operations. MD&A is organized as follows:
•Overview. This section provides a general description of TWC’s business, as well as any recent developments
the Company believes are important in understanding the results of operations and financial condition or in
understanding anticipated future trends. This section also provides a summary of how the Company’s operations
are presented in the accompanying consolidated financial statements.
•Results of operations. This section provides an analysis of the Company’s results of operations for the three
years ended December 31, 2014. This analysis is presented on both a consolidated and reportable segment basis.
•Financial condition and liquidity. This section provides an analysis of the Company’s cash flows for the three
years ended December 31, 2014, as well as a discussion of the Company’s outstanding debt and commitments as
of December 31, 2014. Also included is a discussion of the amount of financial capacity available to fund the
Company’s future commitments, as well as a discussion of other financing arrangements.
•Market risk management. This section discusses how the Company monitors and manages exposure to potential
gains and losses arising from changes in market rates and prices, such as interest and foreign currency exchange
rates.
•Critical accounting policies and estimates. This section discusses accounting policies and estimates that require
the use of assumptions that were uncertain at the time the estimate was made and that could have a material effect
on the Company’s consolidated results of operations or financial condition if there were changes in the estimate
or if a different estimate were made. The Company’s significant accounting policies, including those considered
to be critical accounting policies and estimates, are summarized in Note 3 to the accompanying consolidated
financial statements.
•Caution concerning forward-looking statements. This section provides a description of the use of forward-
looking information appearing in this report, including in MD&A and the consolidated financial statements. Such
information is based on management’s current expectations about future events, which are subject to uncertainty
and changes in circumstances. Refer to Item 1A, “Risk Factors,” in Part I of this report for a discussion of the risk
factors applicable to the Company.
OVERVIEW
TWC is among the largest providers of video, high-speed data and voice services in the U.S., with technologically
advanced, well-clustered cable systems located mainly in five geographic areas – New York State (including New York
City), the Carolinas, the Midwest (including Ohio, Kentucky and Wisconsin), Southern California (including Los
Angeles) and Texas. TWC’s mission is to connect its customers to the world—simply, reliably and with superior service.
As of December 31, 2014, TWC served approximately 15.2 million residential and business services customers who
subscribed to one or more of its video, high-speed data and voice services. During 2014, TWC’s revenue increased 3.1%
to approximately $22.8 billion.
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