Time Warner Cable 2014 Annual Report Download - page 91

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TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
consolidated financial statements from the date of acquisition and did not significantly impact the Company’s
consolidated financial results for the year ended December 31, 2013.
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. At closing, TWC 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 primarily affect the Residential
Services and Business Services segments, have been included in the Company’s consolidated financial statements from
the date of acquisition and did not significantly impact the Company’s consolidated financial results for the year ended
December 31, 2012.
7. INVESTMENTS
Investments as of December 31, 2014 and 2013 consisted of the following (in millions):
December 31,
2014 2013
Equity-method investments(a) ..................................................... $ 60 $ 53
Other investments .............................................................. 4 3
Total investments ............................................................... $ 64 $ 56
(a) Equity-method investments includes investments in MLB Network, LLC (5.3% owned), iN Demand L.L.C. (28.9% owned) and National Cable
Communications LLC (16.7% owned). In addition, the Company has an equity-method investment in Sterling Entertainment Enterprises, LLC
(doing business as SportsNet New York, 26.8% owned). The Company has received distributions in excess of its investment in SportsNet New York
and has reflected this amount ($179 million and $185 million as of December 31, 2014 and 2013, respectively) in other liabilities in the consolidated
balance sheet.
For the years ended December 31, 2014, 2013 and 2012, the Company recognized income from equity-method
investments, net, of $33 million, $19 million and $454 million, respectively, which is included in other income, net, in the
consolidated statement of operations.
SpectrumCo
On August 24, 2012, SpectrumCo, LLC (“SpectrumCo”), a joint venture between TWC, Comcast and Bright House
Networks, LLC, sold all of its advanced wireless spectrum licenses to Cellco Partnership (doing business as Verizon
Wireless), a joint venture between Verizon Communications Inc. and Vodafone Group Plc, for $3.6 billion in cash. Upon
closing, TWC, which owned 31.2% of SpectrumCo, received $1.112 billion, which is included in return of capital from
investees in the consolidated statement of cash flows for the year ended December 31, 2012, and recorded a pretax gain of
$430 million ($261 million on an after-tax basis), which is included in other income, net, in the consolidated statement of
operations for the year ended December 31, 2012. The balance of the Company’s investment in SpectrumCo was $8
million as of December 31, 2012, representing TWC’s share of SpectrumCo’s remaining members’ equity (primarily
consisting of cash and equivalents, net of accrued expenses). During the first quarter of 2013, the Company received a
final return of capital distribution from SpectrumCo of $7 million that, along with losses recognized from the Company’s
investment in SpectrumCo, resulted in an investment balance of zero.
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