Time Warner Cable 2014 Annual Report Download - page 66

TIME WARNER CABLE INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION—(Continued)
Financing Activities
Details of cash used by financing activities are as follows (in millions):
Year Ended December 31,
2014 2013 2012
Short-term borrowings, net .................................... $ 507 $ — $ —
Proceeds from issuance of long-term debt ......................... — — 2,258
Repayments of long-term debt .................................. (1,750) (1,500) (2,100)
Repayments of long-term debt assumed in acquisitions .............. — (138) (1,730)
Debt issuance costs .......................................... — — (26)
Redemption of mandatorily redeemable preferred equity ............. — (300) —
Dividends paid .............................................. (857) (758) (700)
Repurchases of common stock .................................. (259) (2,509) (1,850)
Proceeds from exercise of stock options .......................... 226 138 140
Excess tax benefit from equity-based compensation ................. 141 93 81
Taxes paid in cash in lieu of shares issued for equity-based
compensation ............................................. (76) (68) (45)
Acquisition of noncontrolling interest(a) .......................... — — (32)
Other financing activities ...................................... (8) (14) (49)
Cash used by financing activities ................................ $ (2,076) $ (5,056) $ (4,053)
(a) During the fourth quarter of 2012, TWC acquired the remaining 45.81% noncontrolling interest in Erie Telecommunications, Inc. (“Erie”) for
$32 million and, as a result, TWC owns 100% of Erie.
Cash used by financing activities was $2.076 billion in 2014 compared to $5.056 billion in 2013 and $4.053 billion in
2012.
Cash used by financing activities in 2014 primarily consisted of repayments of TWC’s 8.25% senior notes due
February 2014 ($750 million in aggregate principal amount) and 7.50% senior notes due April 2014 ($1.0 billion in
aggregate principal amount), the payment of quarterly cash dividends and repurchases of TWC common stock (prior to
the suspension of the Stock Repurchase Program in connection with the announcement of the Comcast merger), partially
offset by borrowings under the Company’s commercial paper program.
Cash used by financing activities in 2013 primarily consisted of repurchases of TWC common stock, the repayment
of TWC’s 6.20% senior notes due July 2013, the payment of quarterly cash dividends, the redemption of the mandatorily
redeemable non-voting Series A Preferred Equity Membership Units (the “TW NY Cable Preferred Membership Units”)
issued by a former subsidiary of TWC, Time Warner NY Cable LLC (“TW NY Cable”), and the repayment of DukeNet’s
long-term debt.
Cash used by financing activities in 2012 primarily consisted of the repayments of Time Warner Entertainment
Company, L.P.’s (a former subsidiary of TWC) 10.15% senior notes due May 2012 ($250 million in aggregate principal
amount), TWC’s 5.40% senior notes due July 2012 ($1.5 billion in aggregate principal amount) and Time Warner Cable
Enterprises LLC’s (“TWCE”) 8.875% senior notes due October 2012 ($350 million in aggregate principal amount), the
repayment of Insight’s senior credit facility and senior notes, repurchases of TWC common stock and the payment of
quarterly cash dividends, partially offset by the net proceeds of public debt issuances in June and August 2012.
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