DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION | 3 Months Ended | |
Mar. 31, 2015 | Apr. 28, 2015 | |
Document And Entity Information [Abstract] | ||
Document type | 10-Q | |
Amendment flag | FALSE | |
Document period end date | 31-Mar-15 | |
Document fiscal year focus | 2015 | |
Document fiscal period focus | Q1 | |
Trading symbol | TWC | |
Entity registrant name | TIME WARNER CABLE INC. | |
Entity central index key | 1377013 | |
Current fiscal year end date | -19 | |
Entity current reporting status | Yes | |
Entity well known seasoned issuer | Yes | |
Entity voluntary filers | No | |
Entity filer category | Large Accelerated Filer | |
Entity common stock shares outstanding | 282,518,129 |
CONSOLIDATED_BALANCE_SHEET
CONSOLIDATED BALANCE SHEET (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and equivalents | $547 | $707 |
Receivables, less allowances of $112 million and $109 million as of March 31, 2015 and December 31, 2014, respectively | 811 | 949 |
Deferred income tax assets | 232 | 269 |
Other current assets | 416 | 391 |
Total current assets | 2,006 | 2,316 |
Investments | 67 | 64 |
Property, plant and equipment, net | 16,207 | 15,990 |
Intangible assets subject to amortization, net | 511 | 523 |
Intangible assets not subject to amortization | 26,012 | 26,012 |
Goodwill | 3,137 | 3,137 |
Other assets | 390 | 459 |
Total assets | 48,330 | 48,501 |
Current liabilities: | ||
Accounts payable | 446 | 567 |
Deferred revenue and subscriber-related liabilities | 207 | 198 |
Accrued programming and content expense | 971 | 902 |
Current maturities of long-term debt | 647 | 1,017 |
Other current liabilities | 1,888 | 1,813 |
Total current liabilities | 4,159 | 4,497 |
Long-term debt | 22,639 | 22,701 |
Deferred income tax liabilities, net | 12,616 | 12,560 |
Other liabilities | 772 | 726 |
Commitments and contingencies (Note 10) | ||
TWC shareholders' equity: | ||
Common stock, $0.01 par value, 282.4 million and 280.8 million shares issued and outstanding as of March 31, 2015 and December 31, 2014, respectively | 3 | 3 |
Additional paid-in capital | 7,284 | 7,172 |
Retained earnings | 1,189 | 1,162 |
Accumulated other comprehensive loss, net | -336 | -324 |
Total TWC shareholders' equity | 8,140 | 8,013 |
Noncontrolling interests | 4 | 4 |
Total equity | 8,144 | 8,017 |
Total liabilities and equity | $48,330 | $48,501 |
CONSOLIDATED_BALANCE_SHEET_Par
CONSOLIDATED BALANCE SHEET (Parentheticals) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, except Per Share data, unless otherwise specified | ||
Current assets: | ||
Allowance for doubtful accounts | $112 | $109 |
TWC shareholders' equity: | ||
Common stock par value per share (in US dollars per share) | $0.01 | $0.01 |
Common stock shares issued (in shares) | 282.4 | 280.8 |
Common stock shares outstanding (in shares) | 282.4 | 280.8 |
CONSOLIDATED_STATEMENT_OF_OPER
CONSOLIDATED STATEMENT OF OPERATIONS (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Consolidated Statement Of Operations [Abstract] | ||
Revenue | $5,777 | $5,582 |
Costs and expenses: | ||
Programming and content | 1,419 | 1,309 |
Sales and marketing | 559 | 555 |
Technical operations | 399 | 371 |
Customer care | 226 | 205 |
Other operating | 1,178 | 1,162 |
Depreciation | 852 | 775 |
Amortization | 34 | 33 |
Merger-related and restructuring costs | 26 | 80 |
Total costs and expenses | 4,693 | 4,490 |
Operating Income | 1,084 | 1,092 |
Interest expense | -348 | -364 |
Other income, net | 10 | 15 |
Income before income taxes | 746 | 743 |
Income tax provision | -288 | -264 |
Net income | 458 | 479 |
Less: Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to TWC shareholders | $458 | $479 |
Net income per common share attributable to TWC common shareholders - basic (in US dollars per share) | $1.60 | $1.71 |
Net income per common share attributable to TWC common shareholders - diluted (in US dollars per share) | $1.59 | $1.70 |
Weighted-average common shares outstanding - basic (in shares) | 281.5 | 277.8 |
Weighted-average common shares outstanding - diluted (in shares) | 284.9 | 281.8 |
Cash dividends declared per share of common stock | $1.50 | $0.75 |
CONSOLIDATED_STATEMENT_OF_COMP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Consolidated Statement Of Comprehensive Income [Abstract] | ||
Net income | $458 | $479 |
Change in accumulated unrealized losses on pension benefit obligation, net of income tax provision of $(4) million and $0 in 2015 and 2014, respectively | 6 | -1 |
Change in accumulated deferred gains (losses) on cash flow hedges, net of income tax benefit of $11 million and $29 million in 2015 and 2014, respectively | -18 | -45 |
Other comprehensive loss | -12 | -46 |
Comprehensive income | 446 | 433 |
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to TWC shareholders | $446 | $433 |
CONSOLIDATED_STATEMENT_OF_COMP1
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Parentheticals) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Consolidated Statement Of Comprehensive Income [Abstract] | ||
Change in accumulated unrealized losses on pension benefit obligation, tax effect | ($4) | $0 |
Change in accumulated deferred gains (losses) on cash flow hedges, tax effect | $11 | $29 |
CONSOLIDATED_STATEMENT_OF_CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
OPERATING ACTIVITIES | ||
Net income | $458 | $479 |
Adjustments for noncash and nonoperating items: | ||
Depreciation | 852 | 775 |
Amortization | 34 | 33 |
Income from equity-method investments, net of cash distributions | -3 | -7 |
Deferred income taxes | 100 | 40 |
Equity-based compensation expense | 42 | 50 |
Excess tax benefit from equity-based compensation | -56 | -78 |
Changes in operating assets and liabilities, net of acquisitions and dispositions: | ||
Receivables | 152 | 105 |
Accounts payable and other liabilities | 54 | 64 |
Other changes | -125 | -64 |
Cash provided by operating activities | 1,508 | 1,397 |
INVESTING ACTIVITIES | ||
Capital expenditures | -1,134 | -834 |
Acquisition of intangible assets | -23 | -12 |
Other investing activities | 3 | 27 |
Cash used by investing activities | -1,154 | -819 |
FINANCING ACTIVITIES | ||
Short-term borrowings, net | 131 | 1,544 |
Repayments of long-term debt | -500 | -750 |
Dividends paid | -216 | -214 |
Repurchases of common stock | 0 | -259 |
Proceeds from exercise of stock options | 71 | 79 |
Excess tax benefit from equity-based compensation | 56 | 78 |
Taxes paid in cash in lieu of shares issued for equity-based compensation | -56 | -66 |
Net collateral received on derivative financial instruments | 0 | 43 |
Other financing activities | 0 | -1 |
Cash provided (used) by financing activities | -514 | 454 |
Increase (decrease) in cash and equivalents | -160 | 1,032 |
Cash and equivalents at beginning of period | 707 | 525 |
Cash and equivalents at end of period | $547 | $1,557 |
CONSOLIDATED_STATEMENT_OF_EQUI
CONSOLIDATED STATEMENT OF EQUITY (USD $) | Total | TWC Shareholders' Equity [Member] | Noncontrolling Interests [Member] |
In Millions | |||
Balance at beginning of period at Dec. 31, 2013 | $6,947 | $6,943 | $4 |
Net income | 479 | 479 | 0 |
Other comprehensive loss | -46 | -46 | 0 |
Cash dividends declared ($0.75 per common share in 2014 and $1.50 per common share in 2015) | -213 | -213 | 0 |
Repurchase and retirement of common stock | -208 | -208 | 0 |
Equity-based compensation expense | 50 | 50 | 0 |
Excess tax benefit realized from equity-based compensation | 78 | 78 | 0 |
Shares issued upon exercise of stock options | 79 | 79 | 0 |
Taxes paid in lieu of shares issued for equity-based compensation | -66 | -66 | 0 |
Other changes | -2 | -2 | 0 |
Balance at end of period at Mar. 31, 2014 | 7,098 | 7,094 | 4 |
Balance at beginning of period at Dec. 31, 2014 | 8,017 | 8,013 | 4 |
Net income | 458 | 458 | 0 |
Other comprehensive loss | -12 | -12 | 0 |
Cash dividends declared ($0.75 per common share in 2014 and $1.50 per common share in 2015) | -431 | -431 | 0 |
Equity-based compensation expense | 42 | 42 | 0 |
Excess tax benefit realized from equity-based compensation | 56 | 56 | 0 |
Shares issued upon exercise of stock options | 71 | 71 | 0 |
Taxes paid in lieu of shares issued for equity-based compensation | -56 | -56 | 0 |
Other changes | -1 | -1 | 0 |
Balance at end of period at Mar. 31, 2015 | $8,144 | $8,140 | $4 |
CONSOLIDATED_STATEMENT_OF_EQUI1
CONSOLIDATED STATEMENT OF EQUITY (Parentheticals) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Consolidated Statement Of Equity [Abstract] | ||
Cash dividends declared per share of common stock (in US dollars per share) | $1.50 | $0.75 |
DESCRIPTION_OF_BUSINESS_AND_BA
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2015 | |
Description Of Business And Basis Of Presentation [Abstract] | |
Description of Business and Basis of Presentation Disclosure | 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION |
Description of Business | |
Time Warner Cable Inc. (together with its subsidiaries, “TWC” or the “Company”) 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. TWC offers video, high-speed data and voice services to residential and business services customers. TWC's residential services also include security and home management services, and TWC's business services also include networking and transport services (including cell tower backhaul services) and enterprise-class, cloud-enabled hosting, managed applications and services. TWC also sells video and online advertising inventory to a variety of local, regional and national customers. | |
On February 12, 2014, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Comcast Corporation (“Comcast”) whereby the Company agreed to merge with and into a 100% owned subsidiary of Comcast (the “Comcast merger”). On April 24, 2015, Comcast and the Company entered into a Termination Agreement wherein the parties agreed to terminate the Merger Agreement. | |
On April 25, 2014, Comcast entered into a binding agreement with Charter Communications, Inc. (“Charter”), which contemplated three transactions (the “divestiture transactions”): (1) a contribution, spin-off and merger transaction, (2) an asset exchange and (3) a sale of assets. The completion of the divestiture transactions would have resulted in the combined company divesting a net total of approximately 3.7 million video subscribers, a portion of which were TWC subscribers (primarily in the Midwest). On April 24, 2015, Comcast delivered a notice of termination of such agreement to Charter. | |
On March 31, 2015, Charter and Advance/Newhouse Partnership (“A/N”) announced that they and certain of their affiliates had reached a definitive agreement pursuant to which Charter would acquire Bright House Networks, LLC (“Bright House Networks”), subject to closing of the divestiture transactions and to TWC's “right of first offer” with respect to Bright House Networks. Bright House Networks is a 100% owned subsidiary of a partnership (“TWE-A/N”) between A/N and Time Warner Cable Enterprises LLC (“TWCE”), a subsidiary of TWC. | |
Basis of Presentation | |
Basis of Consolidation | |
The consolidated financial statements include all of the assets, liabilities, revenue, expenses and cash flows of TWC and all entities in which TWC has a controlling voting interest. The consolidated financial statements include the results of TWE-A/N only for the TWE-A/N cable systems that are controlled by TWC and for which TWC holds an economic interest. Intercompany accounts and transactions between consolidated companies have been eliminated in consolidation. | |
Use of Estimates | |
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and footnotes thereto. Actual results could differ from those estimates. Significant estimates inherent in the preparation of the consolidated financial statements include accounting for allowances for doubtful accounts, depreciation and amortization, business combinations, derivative financial instruments, pension benefits, equity-based compensation, income taxes, loss contingencies, certain programming arrangements and asset impairments. Allocation methodologies used to prepare the consolidated financial statements are based on estimates and have been described in the notes, where appropriate. | |
Reclassifications | |
Certain reclassifications have been made to the prior period financial information to conform to the current year presentation. | |
Interim Financial Statements | |
The consolidated financial statements are unaudited; however, in the opinion of management, they contain all the adjustments (consisting of those of a normal recurring nature) considered necessary to present fairly the financial position, results of operations and cash flows for the periods presented in conformity with GAAP applicable to interim periods. The consolidated financial statements should be read in conjunction with the audited consolidated financial statements of TWC included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014. |
RECENT_ACCOUNTING_STANDARDS
RECENT ACCOUNTING STANDARDS | 3 Months Ended |
Mar. 31, 2015 | |
Recent Accounting Standards [Abstract] | |
Recent Accounting Standards Disclosure | 2. RECENT ACCOUNTING STANDARDS |
Accounting Standards Not Yet Adopted | |
Revenue from Contracts with Customers | |
In May 2014, the Financial Accounting Standards Board the (“FASB”) issued authoritative guidance that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most recent current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also specifies the accounting for certain incremental costs of obtaining a contract and costs to fulfill a contract with a customer. Entities have the option of applying either a full retrospective approach to all periods presented or a modified approach that reflects differences prior to the date of adoption as an adjustment to equity. In April 2015, the FASB deferred the effective date of this guidance by one year. As such, this guidance will be effective for TWC on January 1, 2018 and the Company is currently assessing the impact of this guidance on its consolidated financial statements. | |
Presentation of Debt Issuance Costs | |
In April 2015, the FASB issued authoritative guidance for the purpose of simplifying the presentation of debt issuance costs. Under this guidance, debt issuance costs related to a recognized debt liability are required to be presented in the balance sheet as a direct reduction from the carrying amount of such debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this guidance. Entities will be required to apply a full retrospective approach to all periods presented. This guidance will be effective for TWC on January 1, 2016 and, upon adoption, debt issuance costs capitalized in other current assets and other assets in the consolidated balance sheet will be reclassified and presented as a reduction to current and noncurrent long-term debt. As of March, 31, 2015, debt issuance costs, net of accumulated amortization, recognized in the consolidated balance sheet totaled $100 million, of which $10 million is recorded in other current assets. | |
Customer's Accounting for Fees Paid in a Cloud Computing Arrangement | |
In April 2015, the FASB issued authoritative guidance for the purpose of clarifying the accounting for cloud computing arrangements by providing criteria for determining whether a cloud computing arrangement includes a software license. Under this guidance, if it is determined that a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses; however, if it is determined that a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. Entities have the option of applying either a full retrospective approach to all periods presented or a prospective approach to all arrangements entered into or materially modified after the effective date. This guidance will be effective for TWC on January 1, 2016 and is not expected to have a material impact on the Company's consolidated financial statements. | |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Earnings Per Share Disclosure [Abstract] | ||||||||||||||||||||||
Earnings Per Share Disclosure | 3. EARNINGS PER SHARE | |||||||||||||||||||||
Basic net income per common share attributable to TWC common shareholders is determined using the two-class method and is computed by dividing net income attributable to TWC common shareholders by the weighted average of common shares outstanding during the period. The two-class method is an earnings allocation formula that determines income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Diluted net income per common share attributable to TWC common shareholders reflects the more dilutive earnings per share amount calculated using the treasury stock method or the two-class method. | ||||||||||||||||||||||
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): | ||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Net income attributable to TWC common shareholders | $ | 450 | $ | 475 | ||||||||||||||||||
Net income allocated to participating securities(a) | 8 | 4 | ||||||||||||||||||||
Net income attributable to TWC shareholders | $ | 458 | $ | 479 | ||||||||||||||||||
Weighted-average basic common shares outstanding | 281.5 | 277.8 | ||||||||||||||||||||
Dilutive effect of nonparticipating equity awards | 1.1 | 2.1 | ||||||||||||||||||||
Dilutive effect of participating equity awards(a) | 2.3 | 1.9 | ||||||||||||||||||||
Weighted-average diluted common shares outstanding | 284.9 | 281.8 | ||||||||||||||||||||
Net income per common share attributable to TWC common shareholders: | ||||||||||||||||||||||
Basic | $ | 1.6 | $ | 1.71 | ||||||||||||||||||
Diluted | $ | 1.59 | $ | 1.7 | ||||||||||||||||||
—————————— | ||||||||||||||||||||||
Restricted stock units granted to employees and non-employee directors are considered participating securities with respect to regular quarterly cash dividends. | ||||||||||||||||||||||
DERIVATIVE_FINANCIAL_INSTRUMEN
DERIVATIVE FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Derivative Financial Instruments And Fair Value Measurements [Abstract] | ||||||||||||||||||||||
Derivative Financial Instruments and Fair Value Measurements Disclosure | 4. DERIVATIVE FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | |||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||||
The fair values of assets and liabilities associated with derivative financial instruments recorded in the consolidated balance sheet as of March 31, 2015 and December 31, 2014 consisted of the following (in millions): | ||||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
Interest rate swaps(a)(b) | $ | 112 | $ | 93 | $ | 5 | $ | 19 | ||||||||||||||
Cross-currency swaps(a)(c) | 117 | 197 | 46 | — | ||||||||||||||||||
Total | $ | 229 | $ | 290 | $ | 51 | $ | 19 | ||||||||||||||
————————— | ||||||||||||||||||||||
Interest rate swap and cross-currency swap contracts with multiple counterparties are subject to contractual terms that provide for the net settlement of all such contracts with each counterparty, including cash collateral received or paid, through a single payment in the event of default on or termination of any one contract by either party. The fair values of the assets and liabilities associated with interest rate swaps and cross-currency swaps are presented on a gross basis in the consolidated balance sheet and are classified as current or noncurrent based on the maturity date of the respective contract. | ||||||||||||||||||||||
The fair value of assets associated with interest rate swaps as of March 31, 2015 is recorded in other assets in the consolidated balance sheet. Of the total fair value of assets associated with interest rate swaps as of December 31, 2014, $1 million is recorded in other current assets with the remainder recorded in other assets in the consolidated balance sheet. The fair values of liabilities associated with interest rate swaps as of March 31, 2015 and December 31, 2014 are recorded in other liabilities in the consolidated balance sheet. | ||||||||||||||||||||||
The fair values of assets and liabilities associated with cross-currency swaps are recorded in other assets and other liabilities, respectively, in the consolidated balance sheet. | ||||||||||||||||||||||
Fair Value Hedges | ||||||||||||||||||||||
The Company uses interest rate swaps to manage interest rate risk by effectively converting fixed-rate debt into variable-rate debt. Under such contracts, the Company is entitled to receive semi-annual interest payments at fixed rates and is required to make semi-annual interest payments at variable rates, without exchange of the underlying principal amount. Such contracts are designated as fair value hedges. The Company recognized no gain or loss related to its interest rate swaps because the changes in the fair values of such instruments were completely offset by the changes in the fair values of the hedged fixed-rate debt. The fair value of interest rate swaps was determined using a discounted cash flow (“DCF”) analysis based on the terms of the contract and expected forward interest rates, and incorporates the credit risk of the Company and each counterparty (a Level 2 fair value measurement). The following table summarizes the terms of existing fixed to variable interest rate swaps as of March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Maturities | 2017-2019 | 2015-2019 | ||||||||||||||||||||
Notional amount (in millions) | $ | 5,600 | $ | 6,100 | ||||||||||||||||||
Weighted-average pay rate (variable based on LIBOR plus variable margins) | 5.13% | 4.78% | ||||||||||||||||||||
Weighted-average receive rate (fixed) | 6.86% | 6.58% | ||||||||||||||||||||
The notional amounts of interest rate instruments, as presented in the above table, are used to measure interest to be paid or received and do not represent the amount of exposure to credit loss. | ||||||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||||||
The Company uses cross-currency swaps to manage foreign exchange risk related to foreign currency denominated debt by effectively converting foreign currency denominated debt, including annual interest payments and the payment of principal at maturity, to U.S. dollar denominated debt. Such contracts are designated as cash flow hedges. The Company has entered into cross-currency swaps to effectively convert its £1.275 billion aggregate principal amount of fixed-rate British pound sterling denominated debt, including annual interest payments and the payment of principal at maturity, to fixed-rate U.S. dollar denominated debt. The cross-currency swaps have maturities of June 2031 and July 2042. The fair value of cross-currency swaps was determined using a DCF analysis based on expected forward interest and exchange rates, and incorporates the credit risk of the Company and each counterparty (a Level 2 fair value measurement). The following table summarizes the deferred gain (loss) activity related to cash flow hedges recognized in accumulated other comprehensive loss, net, and reclassified into other income, net, for the three months ended March 31, 2015 and 2014 (in millions): | ||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Deferred losses recognized | $ | -126 | $ | -62 | ||||||||||||||||||
Deferred (gains) losses reclassified into earnings(a) | 97 | -12 | ||||||||||||||||||||
Total net deferred losses recognized | -29 | -74 | ||||||||||||||||||||
Income tax benefit | 11 | 29 | ||||||||||||||||||||
Total net deferred losses recognized, net of tax | $ | -18 | $ | -45 | ||||||||||||||||||
————————— | ||||||||||||||||||||||
Deferred gains (losses) on cross-currency swaps were reclassified from accumulated other comprehensive loss, net, to other income, net, which offsets the re-measurement gains (losses) recognized in other income, net, on the British pound sterling denominated debt. | ||||||||||||||||||||||
Any ineffectiveness related to cash flow hedges has been and is expected to be immaterial. | ||||||||||||||||||||||
Assets Measured at Fair Value on a Nonrecurring Basis | ||||||||||||||||||||||
The Company's assets measured at fair value on a nonrecurring basis include equity-method investments, long-lived assets, indefinite-lived intangible assets and goodwill. The Company reviews the carrying amounts of such assets whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable or at least annually as of July 1 for indefinite-lived intangible assets and goodwill. Any resulting asset impairment would require that the asset be reduced to its fair value. | ||||||||||||||||||||||
Fair Value of Other Financial Instruments | ||||||||||||||||||||||
The Company's other financial instruments not measured at fair value on a recurring basis include (a) cash and equivalents, receivables, accounts payable, accrued liabilities and borrowings under the Company's commercial paper program, which are reflected at cost in the consolidated balance sheet, and (b) TWC senior notes and debentures and TWCE senior debentures (collectively, the “senior notes and debentures”) not subject to fair value hedge accounting, which are reflected at amortized cost in the consolidated balance sheet. With the exception of the senior notes and debentures, cost approximates fair value for these instruments due to their short-term nature. The carrying value and related estimated fair value of the senior notes and debentures was $22.563 billion and $27.233 billion, respectively, as of March 31, 2015 and $23.126 billion and $27.842 billion, respectively, as of December 31, 2014. Estimated fair values for the senior notes and debentures are determined by reference to the market value of the instrument as quoted on a national securities exchange or in an over-the-counter market (a Level 1 fair value measurement). |
TWC_SHAREHOLDERS_EQUITY
TWC SHAREHOLDERS' EQUITY | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Time Warner Cable Shareholders Equity [Abstract] | ||||||||||||||||||||||
TWC Shareholders' Equity Disclosure | 5. TWC SHAREHOLDERS' EQUITY | |||||||||||||||||||||
Changes in Common Stock | ||||||||||||||||||||||
Changes in common stock from January 1 through March 31 are presented below (in millions): | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Balance at beginning of period | 280.8 | 277.9 | ||||||||||||||||||||
Shares issued under the equity-based compensation plan | 1.6 | 2.2 | ||||||||||||||||||||
Shares repurchased and retired | — | -1.5 | ||||||||||||||||||||
Balance at end of period | 282.4 | 278.6 | ||||||||||||||||||||
Common Stock Repurchase Program | ||||||||||||||||||||||
In connection with the Company's entry into the Merger Agreement, the Company suspended its $4.0 billion common stock repurchase program (the “Stock Repurchase Program”) on February 13, 2014. As of March 31, 2015, the Company had $2.723 billion remaining under the Stock Repurchase Program authorization. | ||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net | ||||||||||||||||||||||
Changes in accumulated other comprehensive income (loss), net, included in TWC shareholders' equity from January 1 through March 31 are presented below (in millions): | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Balance at beginning of period | $ | -324 | $ | 44 | ||||||||||||||||||
Other comprehensive loss before reclassifications, net of tax | -78 | -39 | ||||||||||||||||||||
Amounts reclassified into earnings, net of tax | 66 | -7 | ||||||||||||||||||||
Other comprehensive loss, net of tax | -12 | -46 | ||||||||||||||||||||
Balance at end of period | $ | -336 | $ | -2 | ||||||||||||||||||
The following table summarizes the changes in the components of accumulated other comprehensive income (loss), net, included in TWC shareholders' equity from January 1 through March 31 (in millions): | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Unrealized losses on pension benefit obligation: | ||||||||||||||||||||||
Balance at beginning of period | $ | -473 | $ | -104 | ||||||||||||||||||
Amounts reclassified into earnings, net of tax: | ||||||||||||||||||||||
Amortization of actuarial (gain) loss(a) | 10 | -1 | ||||||||||||||||||||
Income tax benefit | -4 | — | ||||||||||||||||||||
Amortization of actuarial (gain) loss, net of tax | 6 | -1 | ||||||||||||||||||||
Other comprehensive income (loss), net of tax | 6 | -1 | ||||||||||||||||||||
Balance at end of period | $ | -467 | $ | -105 | ||||||||||||||||||
Deferred gains (losses) on cash flow hedges: | ||||||||||||||||||||||
Balance at beginning of period | $ | 150 | $ | 149 | ||||||||||||||||||
Other comprehensive loss before reclassifications, net of tax | -78 | -39 | ||||||||||||||||||||
Amounts reclassified into earnings, net of tax: | ||||||||||||||||||||||
Effective portion of (gain) loss on cash flow hedges(b) | 97 | -12 | ||||||||||||||||||||
Income tax provision (benefit) | -37 | 6 | ||||||||||||||||||||
Effective portion of (gain) loss on cash flow hedges, net of tax | 60 | -6 | ||||||||||||||||||||
Other comprehensive loss, net of tax | -18 | -45 | ||||||||||||||||||||
Balance at end of period | $ | 132 | $ | 104 | ||||||||||||||||||
Other changes: | ||||||||||||||||||||||
Balance at beginning and end of period | $ | -1 | $ | -1 | ||||||||||||||||||
—————————— | ||||||||||||||||||||||
Amounts are included in the computation of net periodic benefit costs as discussed further in Note 7. | ||||||||||||||||||||||
Amounts are recorded in other income, net, in the consolidated statement of operations as discussed further in Note 4. | ||||||||||||||||||||||
EQUITYBASED_COMPENSATION
EQUITY-BASED COMPENSATION | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Equity Based Compensation [Abstract] | ||||||||||||||||||||||
Equity-Based Compensation Disclosure | 6. EQUITY-BASED COMPENSATION | |||||||||||||||||||||
TWC is authorized under the Company's stock incentive plan (the “2011 Plan”) to grant restricted stock units (“RSUs”) and options to purchase shares of TWC common stock to its employees and non-employee directors. As of March 31, 2015, the 2011 Plan provides for the issuance of up to 20.0 million shares of TWC common stock, of which 8.8 million shares were available for grant. | ||||||||||||||||||||||
Equity-based compensation expense recognized for the three months ended March 31, 2015 and 2014 was as follows (in millions): | ||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Restricted stock units(a) | $ | 38 | $ | 43 | ||||||||||||||||||
Stock options | 4 | 7 | ||||||||||||||||||||
Total equity-based compensation expense(a) | $ | 42 | $ | 50 | ||||||||||||||||||
————————— | ||||||||||||||||||||||
Of the total equity-based compensation expense recorded in 2015 and 2014, $11 million and $9 million, respectively, is recognized in merger-related and restructuring costs in the consolidated statement of operations. | ||||||||||||||||||||||
Restricted Stock Units | ||||||||||||||||||||||
For the three months ended March 31, 2015, TWC granted 18,000 RSUs at a weighted-average grant date fair value of $146.80 per RSU, which included no RSUs subject to performance-based vesting conditions (“PBUs”). For the three months ended March 31, 2014, TWC granted 3.575 million RSUs at a weighted-average grant date fair value of $135.31 per RSU, which included 143,000 PBUs at a weighted-average grant date fair value of $135.31 per PBU. Total unrecognized compensation cost related to unvested RSUs as of March 31, 2015, without taking into account expected forfeitures, was $422 million, which the Company expects to recognize over a weighted-average period of 3.53 years, without taking into account acceleration of vesting. | ||||||||||||||||||||||
In connection with the Company's entry into the Merger Agreement, the Company advanced the timing of its annual grants that would have been made in 2015 and 2016 into 2014. As a result, eligible employees were granted additional RSUs having a value equal to (and with vesting terms consistent with) those that these employees otherwise would have received in each of 2015 and 2016 (the “retention grants”), but without performance-based vesting conditions. Specifically, the retention grant corresponding to the 2015 annual grant will vest 50% in February of 2018 and 50% in February of 2019; the retention grant corresponding to the 2016 annual grant will vest 50% in February of 2019 and 50% in February of 2020, in each case subject to continued employment. If the grantee's employment were terminated prior to the date on which either retention grant would have normally been made (i.e., February 2015 or 2016, as appropriate), such retention grant would be forfeited, absent a change in control of the Company prior to such termination of employment. Employees who received retention grants were generally not eligible for additional equity awards in 2015 and will generally not be eligible for additional equity awards in 2016 absent a change of responsibilities or other circumstances. Consequently, whether or not the Comcast merger was consummated, both the employees and the Company would generally be in the same position they would have been in had the additional RSUs been granted in 2015 and 2016, rather than in 2014. | ||||||||||||||||||||||
With the exception of the retention grants discussed above, RSUs, including PBUs, generally vest 50% on each of the third and fourth anniversary of the grant date, subject to continued employment and, in the case of PBUs, subject to the satisfaction and certification of the applicable performance conditions. RSUs generally provide for accelerated vesting upon the termination of the grantee's employment after reaching a specified age and years of service or upon a termination of the grantee's employment within 24 months following a change in control of the Company and, in the case of PBUs, subject to the satisfaction and certification of the applicable performance conditions. PBUs are subject to forfeiture if the applicable performance condition is not satisfied. RSUs awarded to non-employee directors are not subject to vesting or forfeiture restrictions and the shares underlying the RSUs will generally be issued in connection with a director's termination of service as a director. Pursuant to the directors' compensation program, certain directors with more than three years of service on the Board of Directors have elected an in-service vesting period for their RSU awards. Holders of RSUs are generally entitled to receive cash dividend equivalents or retained distributions related to regular cash dividends or other distributions, respectively, paid by TWC. In the case of PBUs, the receipt of the dividend equivalents is subject to the satisfaction and certification of the applicable performance conditions. Retained distributions are subject to the vesting requirements of the underlying RSUs. Upon the vesting of a RSU, shares of TWC common stock may be issued from authorized but unissued shares or from treasury stock, if any. | ||||||||||||||||||||||
Stock Options | ||||||||||||||||||||||
For the three months ended March 31, 2015 and 2014, TWC granted no stock options. Total unrecognized compensation cost related to unvested stock options as of March 31, 2015, without taking into account expected forfeitures, was $19 million, which the Company expects to recognize over a weighted-average period of 1.60 years, without taking into account acceleration of vesting. | ||||||||||||||||||||||
Stock options, including stock options subject to performance-based vesting conditions (“PBOs”), have exercise prices equal to the fair market value of TWC common stock at the date of grant. Generally, stock options vest ratably over a four-year vesting period and expire ten years from the date of grant, subject to continued employment and, in the case of PBOs, subject to the satisfaction and certification of the applicable performance condition. Certain stock option awards provide for accelerated vesting upon the termination of the grantee's employment after reaching a specified age and years of service or upon a termination of the grantee's employment within 24 months following a change in control of the Company and, in the case of PBOs, subject to the satisfaction and certification of the applicable performance conditions. PBOs are subject to forfeiture if the applicable performance condition is not satisfied. Upon the exercise of a stock option, shares of TWC common stock may be issued from authorized but unissued shares or from treasury stock, if any. |
PENSION_COSTS
PENSION COSTS | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Pension Costs [Abstract] | ||||||||||||||||||||||
Pension Costs Disclosure | 7. PENSION COSTS | |||||||||||||||||||||
TWC sponsors the Time Warner Cable Pension Plan (the “TWC Pension Plan”) and the Time Warner Cable Union Pension Plan (the “Union Pension Plan” and, together with the TWC Pension Plan, the “qualified pension plans”), both qualified defined benefit pension plans, that together provide pension benefits to a majority of the Company's employees. TWC also provides a nonqualified defined benefit pension plan for certain employees (the “nonqualified pension plan” and, together with the qualified pension plans, the “pension plans”). Pension benefits are based on formulas that reflect the employees' years of service and compensation during their employment period. TWC uses a December 31 measurement date for its pension plans. The components of net periodic benefit costs for the three months ended March 31, 2015 and 2014 is as follows (in millions): | ||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Service cost | $ | 57 | $ | 43 | ||||||||||||||||||
Interest cost | 36 | 36 | ||||||||||||||||||||
Expected return on plan assets | -57 | -58 | ||||||||||||||||||||
Amounts amortized | 10 | -1 | ||||||||||||||||||||
Net periodic benefit costs | $ | 46 | $ | 20 | ||||||||||||||||||
The Company made no cash contributions to the qualified pension plans during the three months ended March 31, 2015; however, the Company may make discretionary cash contributions to the qualified pension plans in 2015. Such contributions will be dependent on a variety of factors, including current and expected interest rates, asset performance, the funded status of the qualified pension plans and management's judgment. For the nonqualified pension plan, the Company will continue to make contributions during the remainder of 2015 to the extent benefits are paid. |
MERGERRELATED_AND_RESTRUCTURIN
MERGER-RELATED AND RESTRUCTURING COSTS | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Merger Related And Restructuring Costs [Abstract] | ||||||||||||||||||||||
Merger-Related and Restructuring Costs Disclosure | 8. MERGER-RELATED AND RESTRUCTURING COSTS | |||||||||||||||||||||
Merger-related and restructuring costs for the three months ended March 31, 2015 and 2014 consisted of the following (in millions): | ||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Merger-related costs | $ | 24 | $ | 63 | ||||||||||||||||||
Restructuring costs | 2 | 17 | ||||||||||||||||||||
Total merger-related and restructuring costs | $ | 26 | $ | 80 | ||||||||||||||||||
Merger-related Costs | ||||||||||||||||||||||
For the three months ended March 31, 2015, the Company incurred Comcast merger-related costs of $24 million, including employee retention costs of $14 million and advisory and legal fees of $10 million. For the three months ended March 31, 2014, the Company incurred merger-related costs of $63 million, which consisted of Comcast merger-related costs, including employee retention costs of $29 million and advisory and legal fees of $33 million, as well as $1 million incurred in connection with the acquisition of DukeNet Communications, LLC. Additional merger-related costs were incurred in April 2015. Changes in accruals for merger-related costs are presented below (in millions): | ||||||||||||||||||||||
Employee | Other | |||||||||||||||||||||
Costs | Costs | Total | ||||||||||||||||||||
Remaining liability as of December 31, 2013 | $ | 3 | $ | 3 | $ | 6 | ||||||||||||||||
Costs incurred | 68 | 75 | 143 | |||||||||||||||||||
Adjustments | -1 | — | -1 | |||||||||||||||||||
Cash paid(a) | -5 | -61 | -66 | |||||||||||||||||||
Remaining liability as of December 31, 2014 | 65 | 17 | 82 | |||||||||||||||||||
Costs incurred | 3 | 10 | 13 | |||||||||||||||||||
Cash paid | -2 | -19 | -21 | |||||||||||||||||||
Remaining liability as of March 31, 2015(b) | $ | 66 | $ | 8 | $ | 74 | ||||||||||||||||
————————— | ||||||||||||||||||||||
Of the total cash paid in 2014, $24 million was paid during the three months ended March 31, 2014. | ||||||||||||||||||||||
The remaining $74 million liability as of March 31, 2015 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 RSUs in connection with the retention grants, as discussed in Note 6, which resulted in additional merger-related costs of $56 million for the year ended December 31, 2014 ($9 million for the three months ended March 31, 2014) and $11 million for the three months ended March 31, 2015. | ||||||||||||||||||||||
Restructuring Costs | ||||||||||||||||||||||
For the three months ended March 31, 2015 and 2014, the Company incurred restructuring costs of $2 million and $17 million, respectively, primarily related to employee terminations and other exit costs. The Company expects to incur additional restructuring costs in 2015. Changes in restructuring reserves are presented below (in millions): | ||||||||||||||||||||||
Employee | Other | |||||||||||||||||||||
Termination | Exit | |||||||||||||||||||||
Costs | Costs | Total | ||||||||||||||||||||
Remaining liability as of December 31, 2013 | $ | 39 | $ | 4 | $ | 43 | ||||||||||||||||
Costs incurred | 14 | 16 | 30 | |||||||||||||||||||
Adjustments | -3 | — | -3 | |||||||||||||||||||
Cash paid(a) | -42 | -20 | -62 | |||||||||||||||||||
Remaining liability as of December 31, 2014 | 8 | — | 8 | |||||||||||||||||||
Costs incurred | 2 | — | 2 | |||||||||||||||||||
Cash paid | -5 | — | -5 | |||||||||||||||||||
Remaining liability as of March 31, 2015(b) | $ | 5 | $ | — | $ | 5 | ||||||||||||||||
————————— | ||||||||||||||||||||||
Of the total cash paid in 2014, $34 million was paid during the three months ended March 31, 2014. | ||||||||||||||||||||||
Of the remaining liability as of March 31, 2015, $4 million is classified as a current liability, with the remaining amount classified as a noncurrent liability in the consolidated balance sheet. Amounts are expected to be paid through March 2018. | ||||||||||||||||||||||
SEGMENT_INFORMATION
SEGMENT INFORMATION | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Segment Information [Abstract] | ||||||||||||||||||||||
Segment Information Disclosure | 9. SEGMENT INFORMATION | |||||||||||||||||||||
The Company classifies its operations into the following three reportable segments, which have been determined based on how management evaluates and manages the business: | ||||||||||||||||||||||
Residential Services, which principally consists of video, high-speed data and voice services provided to residential customers as well as other residential services, including security and home management services. | ||||||||||||||||||||||
Business Services, which principally consists of data, video and voice services provided to business customers as well as other business services, including enterprise-class, cloud-enabled hosting, managed applications and services. | ||||||||||||||||||||||
Other Operations, which principally consists of (i) Time Warner Cable Media (“TWC Media”), the advertising sales arm of TWC, (ii) TWC-owned and/or operated regional sports networks (“RSNs”) and local sports, news and lifestyle channels (e.g., Time Warner Cable News NY1) and (iii) other operating revenue and costs, including those derived from A/N and home shopping network-related services. The business units reflected in the Other Operations segment individually do not meet the thresholds to be reported as separate reportable segments. | ||||||||||||||||||||||
In addition to the above reportable segments, the Company has shared functions (referred to as “Shared Functions”) that include activities not attributable to a specific reportable segment. Shared Functions consists of operating costs and expenses associated with broad “corporate” functions (e.g., accounting and finance, information technology, executive management, legal and human resources) or functions supporting more than one reportable segment that are centrally managed (e.g., facilities, network operations, vehicles and procurement) as well as other activities not attributable to a reportable segment. As such, the reportable segment results reflect how management views such segments in assessing financial performance and allocating resources and are not necessarily indicative of the results of operations that each segment would have achieved had they operated as stand-alone entities during the periods presented. | ||||||||||||||||||||||
In evaluating the profitability of the Company's segments, the components of net income (loss) below OIBDA, as defined below, are not separately evaluated by management at the segment level. Due to the nature of the Company's operations, a majority of its assets, including its distribution systems, are utilized across the Company's operations and are not segregated by segment. In addition, segment assets are not reported to, or used by, management to allocate resources or assess the performance of the Company's segments. Accordingly, the Company has not disclosed asset information by segment. | ||||||||||||||||||||||
Segment information for the three months ended March 31, 2015 and 2014 is as follows (in millions): | ||||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||
Residential | Business | Other | ||||||||||||||||||||
Services | Services | Operations | Shared | Intersegment | Total | |||||||||||||||||
Segment | Segment | Segment | Functions | Eliminations | Consolidated | |||||||||||||||||
Revenue(a) | $ | 4,662 | $ | 781 | $ | 398 | $ | — | $ | -64 | $ | 5,777 | ||||||||||
Operating costs and | ||||||||||||||||||||||
expenses | -2,581 | -302 | -235 | -727 | 64 | -3,781 | ||||||||||||||||
Merger-related and | ||||||||||||||||||||||
restructuring costs | — | — | — | -26 | — | -26 | ||||||||||||||||
OIBDA | $ | 2,081 | $ | 479 | $ | 163 | $ | -753 | $ | — | 1,970 | |||||||||||
Depreciation | -852 | |||||||||||||||||||||
Amortization | -34 | |||||||||||||||||||||
Operating Income | $ | 1,084 | ||||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||
Residential | Business | Other | ||||||||||||||||||||
Services | Services | Operations | Shared | Intersegment | Total | |||||||||||||||||
Segment | Segment | Segment | Functions | Eliminations | Consolidated | |||||||||||||||||
Revenue(a) | $ | 4,568 | $ | 668 | $ | 400 | $ | — | $ | -54 | $ | 5,582 | ||||||||||
Operating costs and | ||||||||||||||||||||||
expenses | -2,436 | -266 | -227 | -727 | 54 | -3,602 | ||||||||||||||||
Merger-related and | ||||||||||||||||||||||
restructuring costs | — | — | — | -80 | — | -80 | ||||||||||||||||
OIBDA | $ | 2,132 | $ | 402 | $ | 173 | $ | -807 | $ | — | 1,900 | |||||||||||
Depreciation | -775 | |||||||||||||||||||||
Amortization | -33 | |||||||||||||||||||||
Operating Income | $ | 1,092 | ||||||||||||||||||||
—————————— | ||||||||||||||||||||||
Revenue derived from outside the U.S. was insignificant in all periods presented. No single customer accounted for a significant amount of revenue in any period presented. | ||||||||||||||||||||||
Intersegment Eliminations relates to the programming provided to the Residential Services and Business Services segments by the RSNs and local sports, news and lifestyle channels. These services are reflected as programming expense for the Residential Services and Business Services segments and as revenue for the Other Operations segment. | ||||||||||||||||||||||
Intersegment revenue for the three months ended March 31, 2015 and 2014 consisted of the following (in millions): | ||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Residential Services | $ | — | $ | — | ||||||||||||||||||
Business Services | — | — | ||||||||||||||||||||
Other Operations | 64 | 54 | ||||||||||||||||||||
Total intersegment revenue | $ | 64 | $ | 54 | ||||||||||||||||||
Revenue for the three months ended March 31, 2015 and 2014 was derived from the following sources (in millions): | ||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Residential Services revenue: | ||||||||||||||||||||||
Video | $ | 2,469 | $ | 2,495 | ||||||||||||||||||
High-speed data | 1,696 | 1,558 | ||||||||||||||||||||
Voice | 473 | 496 | ||||||||||||||||||||
Other | 24 | 19 | ||||||||||||||||||||
Total Residential Services revenue | 4,662 | 4,568 | ||||||||||||||||||||
Business Services revenue: | ||||||||||||||||||||||
Video | 94 | 89 | ||||||||||||||||||||
High-speed data | 376 | 306 | ||||||||||||||||||||
Voice | 142 | 118 | ||||||||||||||||||||
Wholesale transport | 121 | 101 | ||||||||||||||||||||
Other | 48 | 54 | ||||||||||||||||||||
Total Business Services revenue | 781 | 668 | ||||||||||||||||||||
Other Operations revenue: | ||||||||||||||||||||||
Advertising | 230 | 247 | ||||||||||||||||||||
Other | 168 | 153 | ||||||||||||||||||||
Total Other Operations revenue | 398 | 400 | ||||||||||||||||||||
Intersegment eliminations | -64 | -54 | ||||||||||||||||||||
Total revenue | $ | 5,777 | $ | 5,582 | ||||||||||||||||||
Use of OIBDA | ||||||||||||||||||||||
Management uses Operating Income before Depreciation and Amortization (“OIBDA”), among other measures, in evaluating the segment's performance because it eliminates the effects of (i) considerable amounts of noncash depreciation and amortization and (ii) items not within the control of the Company's operations managers (such as income tax provision, other income (expense), net, and interest expense). Management also uses this measure to evaluate the Company's consolidated operating performance and to allocate resources and capital to the segments. Performance measures derived from OIBDA are also used in the Company's annual incentive compensation programs. In addition, this measure is commonly used by analysts, investors and others in evaluating the Company's performance. | ||||||||||||||||||||||
This measure has inherent limitations. For example, OIBDA does not reflect capital expenditures or the periodic costs of certain capitalized assets used in generating revenue. To compensate for such limitations, management evaluates the Company's consolidated performance through, among other measures, various cash flow measures, which reflect capital expenditure decisions, and net income attributable to TWC shareholders, which reflects the periodic costs of capitalized assets. OIBDA also fails to reflect the significant costs borne by the Company for income taxes and debt servicing costs, the results of the Company's equity investments and other non-operational income or expense. Management compensates for these limitations by using other analytics such as a review of net income attributable to TWC shareholders. | ||||||||||||||||||||||
This non-GAAP measure should be considered in addition to, not as a substitute for, the Company's Operating Income and net income attributable to TWC shareholders, as well as other measures of financial performance reported in accordance with GAAP, and may not be comparable to similarly titled measures used by other companies. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2015 | |
Commitments And Contingencies [Abstract] | |
Commitments and Contingencies Disclosure | 10. COMMITMENTS AND CONTINGENCIES |
Legal Proceedings | |
Following the announcement of the Comcast merger on February 13, 2014, eight putative class action complaints challenging the merger were filed on behalf of purported TWC stockholders, seven in the Supreme Court of the State of New York, County of New York and one in the Court of Chancery of the State of Delaware. These complaints were captioned: Barrett v. Time Warner Cable Inc., et al. (N.Y. Sup. Ct.); Karl Graulich IRA v. Marcus, et al. (N.Y. Sup. Ct.); Wedeking v. Time Warner Cable Inc., et al. (N.Y. Sup. Ct.); Lassoff v. Time Warner Cable Inc., et al. (N.Y. Sup. Ct.); Thomas v. Marcus, et al. (N.Y. Sup. Ct.); Tangarone v. Time Warner Cable Inc., et al. (N.Y. Sup. Ct.); Louisiana Municipal Police Employees' Retirement System v. Black, et al. (Del. Ch.); and Empire State Supply Corp. v. Time Warner Cable Inc., et al. (N.Y. Sup. Ct.). On March 25, 2014, the plaintiff in Tangarone v. Time Warner Cable Inc. voluntarily discontinued the action in the New York Supreme Court and re-filed the action in the Court of Chancery of the State of Delaware under the caption Tangarone v. Time Warner Cable Inc, et al. (Del. Ch.). Likewise, on March 26, 2014, the plaintiffs in Empire State Supply Corp. v. Time Warner Cable Inc., et al. voluntarily discontinued the action in the New York Supreme Court, and re-filed the action on March 27, 2014 in the Court of Chancery of the State of Delaware under the caption Empire State Supply Corp. v. Time Warner Cable Inc., et al. (Del. Ch.). On March 28, 2014, the plaintiffs in Louisiana Municipal Police Employees' Retirement System v. Black, et al. (Del. Ch.) filed an amended complaint. On April 2, 2014, the Court orally granted a motion to consolidate the pending actions in the New York Supreme Court under the caption Barrett, et al. v. Time Warner Cable Inc., et al. (N.Y. Sup. Ct.), which the Court did formally by written order on April 15, 2014. On April 3, 2014, the plaintiffs in Barrett, et al. v. Time Warner Cable Inc., et al. (N.Y. Sup. Ct.) filed a consolidated amended complaint. The various complaints name as defendants the Company, the members of the Company's Board of Directors, Comcast and Tango Acquisition Sub, Inc. (“Merger Sub”). The complaints assert that the members of the Company's Board of Directors breached their fiduciary duties to the Company's stockholders during the Comcast merger negotiations and by entering into the Merger Agreement and approving the Comcast merger, and that Comcast and Merger Sub aided and abetted such breaches of fiduciary duties. The complaints also allege that the Company and its Board of Directors failed to disclose in the registration statement related to the Comcast merger material facts relating to the merger. The complaints seek, among other relief, injunctive relief enjoining the shareholder vote on the Comcast merger, unspecified declaratory and equitable relief, compensatory damages in an unspecified amount, and costs and fees. On July 22, 2014, the parties to the litigation entered into a memorandum of understanding reflecting the terms of an agreement, subject to final approval by the New York Supreme Court and certain other conditions, to settle all of the outstanding litigation challenging the merger. The Company believes that the claims asserted against it in the lawsuits are without merit and, if the settlement does not receive final approval by the New York Supreme Court or otherwise is not consummated, intends to defend against the litigation vigorously. | |
On December 19, 2011, Sprint Communications Company L.P. filed a complaint in the U.S. District Court for the District of Kansas alleging that the Company infringes 12 patents purportedly relating to Voice over Internet Protocol (“VoIP”) services. The plaintiff is seeking unspecified monetary damages as well as injunctive relief. The Company intends to defend against this lawsuit vigorously, but is unable to predict the outcome of this lawsuit or reasonably estimate a range of possible loss. | |
The Company is the defendant in In re: Set-Top Cable Television Box Antitrust Litigation, ten purported class actions filed in federal district courts throughout the U.S. These actions are subject to a Multidistrict Litigation (“MDL”) Order transferring the cases for pretrial proceedings to the U.S. District Court for the Southern District of New York. On July 26, 2010, the plaintiffs filed a third amended consolidated class action complaint (the “Third Amended Complaint”), alleging that the Company violated Section 1 of the Sherman Antitrust Act, various state antitrust laws and state unfair/deceptive trade practices statutes by tying the sales of premium cable television services to the leasing of set-top converter boxes. The plaintiffs are seeking, among other things, unspecified treble monetary damages and an injunction to cease such alleged practices. On September 30, 2010, the Company filed a motion to dismiss the Third Amended Complaint, which the court granted on April 8, 2011. On June 17, 2011, the plaintiffs appealed this decision to the U.S. Court of Appeals for the Second Circuit. The Company intends to defend against this lawsuit vigorously, but is unable to predict the outcome of this lawsuit or reasonably estimate a range of possible loss. | |
From time to time, the Company receives notices from third parties and, in some cases, is party to litigation alleging that certain of the Company's services or technologies infringe the intellectual property rights of others. Claims of intellectual property infringement could require TWC to enter into royalty or licensing agreements on unfavorable terms, incur substantial monetary liability or be enjoined preliminarily or permanently from further use of the intellectual property in question. In addition, certain agreements entered into by the Company may require it to indemnify the other party for certain third-party intellectual property infringement claims, which could increase the Company's damages and its costs of defending against such claims. Even if the claims are without merit, defending against the claims can be time consuming and costly. | |
Other Matters | |
The California Attorney General and the Alameda County, California District Attorney are investigating whether certain of the Company's waste disposal policies, procedures and practices are in violation of the California Business and Professions Code and the California Health and Safety Code. These entities are seeking injunctive relief, unspecified civil penalties and attorneys' fees. While the Company is unable to predict the outcome of this investigation, it does not believe that the outcome will have a material effect on its results of operations, financial condition or cash flows. | |
In March 2003, the interests in cable networks and filmed entertainment held by Time Warner Entertainment Company, L.P. (“TWE”) were transferred to Time Warner and all of Time Warner's interests in cable systems were transferred to the Company (the “TWE Restructuring”). As part of the TWE Restructuring, Time Warner agreed to indemnify the Company from and against any and all liabilities relating to, arising out of or resulting from specified litigation matters brought against the TWE non-cable businesses (and assumed by TWCE in connection with various internal reorganizations). Although Time Warner has agreed to indemnify the Company against such liabilities, TWE (as assumed by TWCE) remains a named party in certain litigation matters. | |
The costs and other effects of future litigation, governmental investigations, legal and administrative cases and proceedings (whether civil or criminal), settlements, judgments and investigations, claims and changes in pending matters (including those matters described above), and developments or assertions by or against the Company relating to intellectual property rights and intellectual property licenses, could have a material adverse effect on the Company's business, financial condition and operating results. |
ADDITIONAL_FINANCIAL_INFORMATI
ADDITIONAL FINANCIAL INFORMATION | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Additional Financial Information [Abstract] | ||||||||||||||||||||||
Additional Financial Information Disclosure | 11. ADDITIONAL FINANCIAL INFORMATION | |||||||||||||||||||||
Other Current Assets | ||||||||||||||||||||||
Other current assets as of March 31, 2015 and December 31, 2014 consisted of the following (in millions): | ||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Prepaid income taxes | $ | 41 | $ | 157 | ||||||||||||||||||
Other prepaid expenses | 349 | 208 | ||||||||||||||||||||
Other current assets | 26 | 26 | ||||||||||||||||||||
Total other current assets | $ | 416 | $ | 391 | ||||||||||||||||||
Other Current Liabilities | ||||||||||||||||||||||
Other current liabilities as of March 31, 2015 and December 31, 2014 consisted of the following (in millions): | ||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Accrued interest | $ | 448 | $ | 486 | ||||||||||||||||||
Accrued compensation and benefits | 370 | 397 | ||||||||||||||||||||
Accrued dividends | 216 | — | ||||||||||||||||||||
Accrued insurance | 198 | 199 | ||||||||||||||||||||
Accrued franchise fees | 119 | 151 | ||||||||||||||||||||
Accrued sales and other taxes | 113 | 132 | ||||||||||||||||||||
Other accrued expenses | 424 | 448 | ||||||||||||||||||||
Total other current liabilities | $ | 1,888 | $ | 1,813 | ||||||||||||||||||
Related Party Transactions | ||||||||||||||||||||||
Transactions with related parties (i.e., equity-method investees) for the three months ended March 31, 2015 and 2014 consisted of the following (in millions): | ||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Revenue | $ | 1 | $ | 1 | ||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||
Programming and content | $ | -48 | $ | -45 | ||||||||||||||||||
Other operating | -5 | -6 | ||||||||||||||||||||
Total | $ | -53 | $ | -51 | ||||||||||||||||||
Supplemental Cash Flow Information | ||||||||||||||||||||||
Additional financial information with respect to cash (payments) and receipts for the three months ended March 31, 2015 and 2014 is as follows (in millions): | ||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Cash paid for interest | $ | -408 | $ | -439 | ||||||||||||||||||
Cash received under interest rate swap contracts | 16 | 24 | ||||||||||||||||||||
Cash paid for interest, net | $ | -392 | $ | -415 | ||||||||||||||||||
Cash paid for income taxes | $ | -5 | $ | -1 | ||||||||||||||||||
Cash refunds of income taxes | 2 | 3 | ||||||||||||||||||||
Cash (paid for) refunds of income taxes, net | $ | -3 | $ | 2 |
CONDENSED_CONSOLIDATING_FINANC
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Condensed Consolidating Financial Statements Disclosure [Abstract] | ||||||||||||||||||||||
Condensed Consolidating Financial Statements Disclosure | 12. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | |||||||||||||||||||||
Set forth below are condensed consolidating financial statements presenting the financial position, results of operations (including comprehensive income) and cash flows of (i) Time Warner Cable Inc. (the “Parent Company”), (ii) Time Warner Cable Enterprises LLC (“TWCE” or the “Guarantor Subsidiary”), a direct 100% owned subsidiary of the Parent Company, (iii) the direct and indirect non-guarantor subsidiaries of the Parent Company (the “Non-Guarantor Subsidiaries”) on a combined basis and (iv) the eliminations necessary to arrive at the information for Time Warner Cable Inc. on a consolidated basis. The Guarantor Subsidiary has fully and unconditionally guaranteed the debt securities issued by the Parent Company in its 2007 registered exchange offer and subsequent public offerings. The Parent Company directly owns all of the voting and economic interests of the Guarantor Subsidiary. | ||||||||||||||||||||||
There are no legal or regulatory restrictions on the Parent Company's ability to obtain funds from any of its 100% owned subsidiaries through dividends, loans or advances. | ||||||||||||||||||||||
These condensed consolidating financial statements should be read in conjunction with the consolidated financial statements of Time Warner Cable Inc. | ||||||||||||||||||||||
Basis of Presentation | ||||||||||||||||||||||
In presenting the condensed consolidating financial statements, the equity method of accounting has been applied to (i) the Parent Company's interests in the Guarantor Subsidiary and the Non-Guarantor Subsidiaries and (ii) the Guarantor Subsidiary's interests in the Non-Guarantor Subsidiaries, where applicable, even though all such subsidiaries meet the requirements to be consolidated under GAAP. All intercompany balances and transactions between the Parent Company, the Guarantor Subsidiary and the Non-Guarantor Subsidiaries have been eliminated, as shown in the column “Eliminations.” All assets and liabilities have been allocated to the Parent Company, the Guarantor Subsidiary and the Non-Guarantor Subsidiaries generally based on legal entity ownership. Certain administrative costs have been allocated to the Parent Company, the Guarantor Subsidiary and the Non-Guarantor Subsidiaries based on revenue recorded at the respective entity. The Parent Company allocates 100% of its third-party interest expense, net of interest income received from intercompany loans, to the Guarantor Subsidiary. The income tax provision has been presented based on each subsidiary's legal entity activity including income tax benefits related to allocated administrative costs and interest expense. Deferred income taxes have been presented based upon the temporary differences between the carrying amounts of the respective assets and liabilities of the applicable entities. | ||||||||||||||||||||||
Condensed consolidating financial information as of March 31, 2015 and December 31, 2014 and for the three months ended March 31, 2015 and 2014 is as follows (in millions): | ||||||||||||||||||||||
Condensed Consolidating Balance Sheet as of March 31, 2015 | ||||||||||||||||||||||
Non- | ||||||||||||||||||||||
Parent | Guarantor | Guarantor | TWC | |||||||||||||||||||
Company | Subsidiary | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
ASSETS | ||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||
Cash and equivalents | $ | 308 | $ | — | $ | 239 | $ | — | $ | 547 | ||||||||||||
Receivables, net | 51 | — | 760 | — | 811 | |||||||||||||||||
Receivables from affiliated parties | 218 | — | 27 | -245 | — | |||||||||||||||||
Deferred income tax assets | — | — | 235 | -3 | 232 | |||||||||||||||||
Other current assets | 11 | 44 | 361 | — | 416 | |||||||||||||||||
Total current assets | 588 | 44 | 1,622 | -248 | 2,006 | |||||||||||||||||
Investments in and amounts due from | ||||||||||||||||||||||
consolidated subsidiaries | 45,269 | 47,128 | 7,641 | -100,038 | — | |||||||||||||||||
Investments | — | 55 | 12 | — | 67 | |||||||||||||||||
Property, plant and equipment, net | — | 27 | 16,180 | — | 16,207 | |||||||||||||||||
Intangible assets subject to amortization, net | — | 19 | 492 | — | 511 | |||||||||||||||||
Intangible assets not subject to amortization | — | — | 26,012 | — | 26,012 | |||||||||||||||||
Goodwill | — | — | 3,137 | — | 3,137 | |||||||||||||||||
Other assets | 328 | — | 67 | -5 | 390 | |||||||||||||||||
Total assets | $ | 46,185 | $ | 47,273 | $ | 55,163 | $ | -100,291 | $ | 48,330 | ||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||
Accounts payable | $ | — | $ | — | $ | 446 | $ | — | $ | 446 | ||||||||||||
Deferred revenue and subscriber-related | ||||||||||||||||||||||
liabilities | — | — | 207 | — | 207 | |||||||||||||||||
Payables to affiliated parties | 27 | 213 | 5 | -245 | — | |||||||||||||||||
Accrued programming and content expense | — | — | 971 | — | 971 | |||||||||||||||||
Current maturities of long-term debt | 638 | — | 9 | — | 647 | |||||||||||||||||
Other current liabilities | 745 | 24 | 1,122 | -3 | 1,888 | |||||||||||||||||
Total current liabilities | 1,410 | 237 | 2,760 | -248 | 4,159 | |||||||||||||||||
Long-term debt | 20,505 | 2,059 | 75 | — | 22,639 | |||||||||||||||||
Deferred income tax liabilities, net | — | 222 | 12,399 | -5 | 12,616 | |||||||||||||||||
Long-term payables to affiliated parties | 7,641 | 14,702 | — | -22,343 | — | |||||||||||||||||
Other liabilities | 220 | 93 | 459 | — | 772 | |||||||||||||||||
TWC shareholders’ equity: | ||||||||||||||||||||||
Due to (from) TWC and subsidiaries | 8,269 | 1,528 | -9,797 | — | — | |||||||||||||||||
Other TWC shareholders’ equity | 8,140 | 28,432 | 49,263 | -77,695 | 8,140 | |||||||||||||||||
Total TWC shareholders’ equity | 16,409 | 29,960 | 39,466 | -77,695 | 8,140 | |||||||||||||||||
Noncontrolling interests | — | — | 4 | — | 4 | |||||||||||||||||
Total equity | 16,409 | 29,960 | 39,470 | -77,695 | 8,144 | |||||||||||||||||
Total liabilities and equity | $ | 46,185 | $ | 47,273 | $ | 55,163 | $ | -100,291 | $ | 48,330 | ||||||||||||
Condensed Consolidating Balance Sheet as of December 31, 2014 | ||||||||||||||||||||||
Non- | ||||||||||||||||||||||
Parent | Guarantor | Guarantor | TWC | |||||||||||||||||||
Company | Subsidiary | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
ASSETS | ||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||
Cash and equivalents | $ | 481 | $ | — | $ | 226 | $ | — | $ | 707 | ||||||||||||
Receivables, net | 31 | — | 918 | — | 949 | |||||||||||||||||
Receivables from affiliated parties | 215 | — | 27 | -242 | — | |||||||||||||||||
Deferred income tax assets | 9 | — | 264 | -4 | 269 | |||||||||||||||||
Other current assets | 121 | 46 | 224 | — | 391 | |||||||||||||||||
Total current assets | 857 | 46 | 1,659 | -246 | 2,316 | |||||||||||||||||
Investments in and amounts due from | ||||||||||||||||||||||
consolidated subsidiaries | 44,790 | 46,401 | 7,641 | -98,832 | — | |||||||||||||||||
Investments | — | 51 | 13 | — | 64 | |||||||||||||||||
Property, plant and equipment, net | — | 28 | 15,962 | — | 15,990 | |||||||||||||||||
Intangible assets subject to amortization, net | — | 5 | 518 | — | 523 | |||||||||||||||||
Intangible assets not subject to amortization | — | — | 26,012 | — | 26,012 | |||||||||||||||||
Goodwill | — | — | 3,137 | — | 3,137 | |||||||||||||||||
Other assets | 385 | — | 74 | — | 459 | |||||||||||||||||
Total assets | $ | 46,032 | $ | 46,531 | $ | 55,016 | $ | -99,078 | $ | 48,501 | ||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||
Accounts payable | $ | — | $ | — | $ | 567 | $ | — | $ | 567 | ||||||||||||
Deferred revenue and subscriber-related | ||||||||||||||||||||||
liabilities | — | — | 198 | — | 198 | |||||||||||||||||
Payables to affiliated parties | 27 | 212 | 3 | -242 | — | |||||||||||||||||
Accrued programming and content expense | — | — | 902 | — | 902 | |||||||||||||||||
Current maturities of long-term debt | 1,008 | — | 9 | — | 1,017 | |||||||||||||||||
Other current liabilities | 529 | 67 | 1,221 | -4 | 1,813 | |||||||||||||||||
Total current liabilities | 1,564 | 279 | 2,900 | -246 | 4,497 | |||||||||||||||||
Long-term debt | 20,564 | 2,061 | 76 | — | 22,701 | |||||||||||||||||
Deferred income tax liabilities, net | 23 | 214 | 12,323 | — | 12,560 | |||||||||||||||||
Long-term payables to affiliated parties | 7,641 | 14,702 | — | -22,343 | — | |||||||||||||||||
Other liabilities | 154 | 91 | 481 | — | 726 | |||||||||||||||||
TWC shareholders’ equity: | ||||||||||||||||||||||
Due to (from) TWC and subsidiaries | 8,073 | 1,216 | -9,289 | — | — | |||||||||||||||||
Other TWC shareholders’ equity | 8,013 | 27,968 | 48,521 | -76,489 | 8,013 | |||||||||||||||||
Total TWC shareholders’ equity | 16,086 | 29,184 | 39,232 | -76,489 | 8,013 | |||||||||||||||||
Noncontrolling interests | — | — | 4 | — | 4 | |||||||||||||||||
Total equity | 16,086 | 29,184 | 39,236 | -76,489 | 8,017 | |||||||||||||||||
Total liabilities and equity | $ | 46,032 | $ | 46,531 | $ | 55,016 | $ | -99,078 | $ | 48,501 | ||||||||||||
Condensed Consolidating Statement of Operations for the Three Months Ended March 31, 2015 | ||||||||||||||||||||||
Non- | ||||||||||||||||||||||
Parent | Guarantor | Guarantor | TWC | |||||||||||||||||||
Company | Subsidiary | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Revenue | $ | — | $ | — | $ | 5,777 | $ | — | $ | 5,777 | ||||||||||||
Costs and expenses: | ||||||||||||||||||||||
Programming and content | — | — | 1,419 | — | 1,419 | |||||||||||||||||
Sales and marketing | — | — | 559 | — | 559 | |||||||||||||||||
Technical operations | — | — | 399 | — | 399 | |||||||||||||||||
Customer care | — | — | 226 | — | 226 | |||||||||||||||||
Other operating | — | — | 1,178 | — | 1,178 | |||||||||||||||||
Depreciation | — | — | 852 | — | 852 | |||||||||||||||||
Amortization | — | — | 34 | — | 34 | |||||||||||||||||
Merger-related and restructuring costs | 4 | — | 22 | — | 26 | |||||||||||||||||
Total costs and expenses | 4 | — | 4,689 | — | 4,693 | |||||||||||||||||
Operating Income (Loss) | -4 | — | 1,088 | — | 1,084 | |||||||||||||||||
Equity in pretax income of consolidated | ||||||||||||||||||||||
subsidiaries | 807 | 1,131 | — | -1,938 | — | |||||||||||||||||
Interest income (expense), net | -57 | -350 | 59 | — | -348 | |||||||||||||||||
Other income, net | — | 1 | 9 | — | 10 | |||||||||||||||||
Income before income taxes | 746 | 782 | 1,156 | -1,938 | 746 | |||||||||||||||||
Income tax provision | -288 | -303 | -289 | 592 | -288 | |||||||||||||||||
Net income | 458 | 479 | 867 | -1,346 | 458 | |||||||||||||||||
Less: Net income attributable to | ||||||||||||||||||||||
noncontrolling interests | — | — | — | — | — | |||||||||||||||||
Net income attributable to TWC shareholders | $ | 458 | $ | 479 | $ | 867 | $ | -1,346 | $ | 458 | ||||||||||||
Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended March 31, 2015 | ||||||||||||||||||||||
Non- | ||||||||||||||||||||||
Parent | Guarantor | Guarantor | TWC | |||||||||||||||||||
Company | Subsidiary | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Net income | $ | 458 | $ | 479 | $ | 867 | $ | -1,346 | $ | 458 | ||||||||||||
Change in accumulated unrealized losses on | ||||||||||||||||||||||
pension benefit obligation, net of tax | 6 | — | — | — | 6 | |||||||||||||||||
Change in accumulated deferred gains (losses) | ||||||||||||||||||||||
on cash flow hedges, net of tax | -18 | — | — | — | -18 | |||||||||||||||||
Other comprehensive loss | -12 | — | — | — | -12 | |||||||||||||||||
Comprehensive income | 446 | 479 | 867 | -1,346 | 446 | |||||||||||||||||
Less: Comprehensive income attributable to | ||||||||||||||||||||||
noncontrolling interests | — | — | — | — | — | |||||||||||||||||
Comprehensive income attributable to | ||||||||||||||||||||||
TWC shareholders | $ | 446 | $ | 479 | $ | 867 | $ | -1,346 | $ | 446 | ||||||||||||
Condensed Consolidating Statement of Operations for the Three Months Ended March 31, 2014 | ||||||||||||||||||||||
Non- | ||||||||||||||||||||||
Parent | Guarantor | Guarantor | TWC | |||||||||||||||||||
Company | Subsidiary | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Revenue | $ | — | $ | — | $ | 5,582 | $ | — | $ | 5,582 | ||||||||||||
Costs and expenses: | ||||||||||||||||||||||
Programming and content | — | — | 1,309 | — | 1,309 | |||||||||||||||||
Sales and marketing | — | — | 555 | — | 555 | |||||||||||||||||
Technical operations | — | — | 371 | — | 371 | |||||||||||||||||
Customer care | — | — | 205 | — | 205 | |||||||||||||||||
Other operating | — | — | 1,162 | — | 1,162 | |||||||||||||||||
Depreciation | — | — | 775 | — | 775 | |||||||||||||||||
Amortization | — | — | 33 | — | 33 | |||||||||||||||||
Merger-related and restructuring costs | 33 | — | 47 | — | 80 | |||||||||||||||||
Total costs and expenses | 33 | — | 4,457 | — | 4,490 | |||||||||||||||||
Operating Income (Loss) | -33 | — | 1,125 | — | 1,092 | |||||||||||||||||
Equity in pretax income of consolidated | ||||||||||||||||||||||
subsidiaries | 824 | 1,152 | — | -1,976 | — | |||||||||||||||||
Interest income (expense), net | -48 | -366 | 50 | — | -364 | |||||||||||||||||
Other income, net | — | 5 | 10 | — | 15 | |||||||||||||||||
Income before income taxes | 743 | 791 | 1,185 | -1,976 | 743 | |||||||||||||||||
Income tax provision | -264 | -284 | -295 | 579 | -264 | |||||||||||||||||
Net income | 479 | 507 | 890 | -1,397 | 479 | |||||||||||||||||
Less: Net income attributable to | ||||||||||||||||||||||
noncontrolling interests | — | — | — | — | — | |||||||||||||||||
Net income attributable to TWC shareholders | $ | 479 | $ | 507 | $ | 890 | $ | -1,397 | $ | 479 | ||||||||||||
Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended March 31, 2014 | ||||||||||||||||||||||
Non- | ||||||||||||||||||||||
Parent | Guarantor | Guarantor | TWC | |||||||||||||||||||
Company | Subsidiary | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Net income | $ | 479 | $ | 507 | $ | 890 | $ | -1,397 | $ | 479 | ||||||||||||
Change in accumulated unrealized losses on | ||||||||||||||||||||||
pension benefit obligation, net of tax | -1 | — | — | — | -1 | |||||||||||||||||
Change in accumulated deferred gains (losses) | ||||||||||||||||||||||
on cash flow hedges, net of tax | -45 | — | — | — | -45 | |||||||||||||||||
Other comprehensive loss | -46 | — | — | — | -46 | |||||||||||||||||
Comprehensive income | 433 | 507 | 890 | -1,397 | 433 | |||||||||||||||||
Less: Comprehensive income attributable to | ||||||||||||||||||||||
noncontrolling interests | — | — | — | — | — | |||||||||||||||||
Comprehensive income attributable to | ||||||||||||||||||||||
TWC shareholders | $ | 433 | $ | 507 | $ | 890 | $ | -1,397 | $ | 433 | ||||||||||||
Condensed Consolidating Statement of Cash Flows for the Three Months Ended March 31, 2015 | ||||||||||||||||||||||
Non- | ||||||||||||||||||||||
Parent | Guarantor | Guarantor | TWC | |||||||||||||||||||
Company | Subsidiary | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Cash provided (used) by operating activities | $ | 90 | $ | -407 | $ | 1,825 | $ | — | $ | 1,508 | ||||||||||||
INVESTING ACTIVITIES | ||||||||||||||||||||||
Capital expenditures | — | — | -1,134 | — | -1,134 | |||||||||||||||||
Acquisition of intangible assets | — | -14 | -9 | — | -23 | |||||||||||||||||
Other investing activities | — | -3 | 6 | — | 3 | |||||||||||||||||
Cash used by investing activities | — | -17 | -1,137 | — | -1,154 | |||||||||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||||
Short-term borrowings, net | 131 | — | — | — | 131 | |||||||||||||||||
Repayments of long-term debt | -500 | — | — | — | -500 | |||||||||||||||||
Dividends paid | -216 | — | — | — | -216 | |||||||||||||||||
Proceeds from exercise of stock options | 71 | — | — | — | 71 | |||||||||||||||||
Excess tax benefit from equity-based | ||||||||||||||||||||||
compensation | 56 | — | — | — | 56 | |||||||||||||||||
Taxes paid in cash in lieu of shares issued for | ||||||||||||||||||||||
equity-based compensation | — | — | -56 | — | -56 | |||||||||||||||||
Net change in investments in and amounts due | ||||||||||||||||||||||
from consolidated subsidiaries | 195 | 424 | -619 | — | — | |||||||||||||||||
Cash provided (used) by financing activities | -263 | 424 | -675 | — | -514 | |||||||||||||||||
Increase (decrease) in cash and equivalents | -173 | — | 13 | — | -160 | |||||||||||||||||
Cash and equivalents at beginning of period | 481 | — | 226 | — | 707 | |||||||||||||||||
Cash and equivalents at end of period | $ | 308 | $ | — | $ | 239 | $ | — | $ | 547 | ||||||||||||
Condensed Consolidating Statement of Cash Flows for the Three Months Ended March 31, 2014 | ||||||||||||||||||||||
Non- | ||||||||||||||||||||||
Parent | Guarantor | Guarantor | TWC | |||||||||||||||||||
Company | Subsidiary | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Cash provided (used) by operating activities | $ | 73 | $ | -362 | $ | 1,686 | $ | — | $ | 1,397 | ||||||||||||
INVESTING ACTIVITIES | ||||||||||||||||||||||
Capital expenditures | — | — | -834 | — | -834 | |||||||||||||||||
Acquisition of intangible assets | — | — | -12 | — | -12 | |||||||||||||||||
Other investing activities | 18 | -2 | 11 | — | 27 | |||||||||||||||||
Cash provided (used) by investing activities | 18 | -2 | -835 | — | -819 | |||||||||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||||
Short-term borrowings, net | 1,544 | — | — | — | 1,544 | |||||||||||||||||
Repayments of long-term debt | -750 | — | — | — | -750 | |||||||||||||||||
Dividends paid | -214 | — | — | — | -214 | |||||||||||||||||
Repurchases of common stock | -259 | — | — | — | -259 | |||||||||||||||||
Proceeds from exercise of stock options | 79 | — | — | — | 79 | |||||||||||||||||
Excess tax benefit from equity-based | ||||||||||||||||||||||
compensation | 78 | — | — | — | 78 | |||||||||||||||||
Taxes paid in cash in lieu of shares issued for | ||||||||||||||||||||||
equity-based compensation | — | — | -66 | — | -66 | |||||||||||||||||
Net collateral received on derivative | ||||||||||||||||||||||
financial instruments | 43 | — | — | — | 43 | |||||||||||||||||
Net change in investments in and amounts due | ||||||||||||||||||||||
from consolidated subsidiaries | 419 | 364 | -783 | — | — | |||||||||||||||||
Other financing activities | -1 | — | — | — | -1 | |||||||||||||||||
Cash provided (used) by financing activities | 939 | 364 | -849 | — | 454 | |||||||||||||||||
Increase in cash and equivalents | 1,030 | — | 2 | — | 1,032 | |||||||||||||||||
Cash and equivalents at beginning of period | 316 | — | 209 | — | 525 | |||||||||||||||||
Cash and equivalents at end of period | $ | 1,346 | $ | — | $ | 211 | $ | — | $ | 1,557 |
ACCOUNTING_POLICIES_Policies
ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Consolidation Policy | The consolidated financial statements include all of the assets, liabilities, revenue, expenses and cash flows of TWC and all entities in which TWC has a controlling voting interest. The consolidated financial statements include the results of TWE-A/N only for the TWE-A/N cable systems that are controlled by TWC and for which TWC holds an economic interest. Intercompany accounts and transactions between consolidated companies have been eliminated in consolidation. |
Use of Estimates Policy | The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and footnotes thereto. Actual results could differ from those estimates. Significant estimates inherent in the preparation of the consolidated financial statements include accounting for allowances for doubtful accounts, depreciation and amortization, business combinations, derivative financial instruments, pension benefits, equity-based compensation, income taxes, loss contingencies, certain programming arrangements and asset impairments. Allocation methodologies used to prepare the consolidated financial statements are based on estimates and have been described in the notes, where appropriate. |
Reclassifications Policy | Certain reclassifications have been made to the prior period financial information to conform to the current year presentation. |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Earnings Per Share Table [Abstract] | ||||||||||||||||||||||
Schedule of Earnings Per Share Reconciliation | 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): | |||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Net income attributable to TWC common shareholders | $ | 450 | $ | 475 | ||||||||||||||||||
Net income allocated to participating securities(a) | 8 | 4 | ||||||||||||||||||||
Net income attributable to TWC shareholders | $ | 458 | $ | 479 | ||||||||||||||||||
Weighted-average basic common shares outstanding | 281.5 | 277.8 | ||||||||||||||||||||
Dilutive effect of nonparticipating equity awards | 1.1 | 2.1 | ||||||||||||||||||||
Dilutive effect of participating equity awards(a) | 2.3 | 1.9 | ||||||||||||||||||||
Weighted-average diluted common shares outstanding | 284.9 | 281.8 | ||||||||||||||||||||
Net income per common share attributable to TWC common shareholders: | ||||||||||||||||||||||
Basic | $ | 1.6 | $ | 1.71 | ||||||||||||||||||
Diluted | $ | 1.59 | $ | 1.7 | ||||||||||||||||||
—————————— | ||||||||||||||||||||||
Restricted stock units granted to employees and non-employee directors are considered participating securities with respect to regular quarterly cash dividends. | ||||||||||||||||||||||
DERIVATIVE_FINANCIAL_INSTRUMEN1
DERIVATIVE FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Derivative Financial Instruments And Fair Value Measurements Table [Abstract] | ||||||||||||||||||||||
Schedule of Derivative Financial Instruments | The fair values of assets and liabilities associated with derivative financial instruments recorded in the consolidated balance sheet as of March 31, 2015 and December 31, 2014 consisted of the following (in millions): | |||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
Interest rate swaps(a)(b) | $ | 112 | $ | 93 | $ | 5 | $ | 19 | ||||||||||||||
Cross-currency swaps(a)(c) | 117 | 197 | 46 | — | ||||||||||||||||||
Total | $ | 229 | $ | 290 | $ | 51 | $ | 19 | ||||||||||||||
————————— | ||||||||||||||||||||||
Interest rate swap and cross-currency swap contracts with multiple counterparties are subject to contractual terms that provide for the net settlement of all such contracts with each counterparty, including cash collateral received or paid, through a single payment in the event of default on or termination of any one contract by either party. The fair values of the assets and liabilities associated with interest rate swaps and cross-currency swaps are presented on a gross basis in the consolidated balance sheet and are classified as current or noncurrent based on the maturity date of the respective contract. | ||||||||||||||||||||||
The fair value of assets associated with interest rate swaps as of March 31, 2015 is recorded in other assets in the consolidated balance sheet. Of the total fair value of assets associated with interest rate swaps as of December 31, 2014, $1 million is recorded in other current assets with the remainder recorded in other assets in the consolidated balance sheet. The fair values of liabilities associated with interest rate swaps as of March 31, 2015 and December 31, 2014 are recorded in other liabilities in the consolidated balance sheet. | ||||||||||||||||||||||
The fair values of assets and liabilities associated with cross-currency swaps are recorded in other assets and other liabilities, respectively, in the consolidated balance sheet. | ||||||||||||||||||||||
Schedule of Interest Rate Swap Contract Terms | The following table summarizes the terms of existing fixed to variable interest rate swaps as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Maturities | 2017-2019 | 2015-2019 | ||||||||||||||||||||
Notional amount (in millions) | $ | 5,600 | $ | 6,100 | ||||||||||||||||||
Weighted-average pay rate (variable based on LIBOR plus variable margins) | 5.13% | 4.78% | ||||||||||||||||||||
Weighted-average receive rate (fixed) | 6.86% | 6.58% | ||||||||||||||||||||
Schedule of Cash Flow Hedge Activity Recognized and Reclassified | The following table summarizes the deferred gain (loss) activity related to cash flow hedges recognized in accumulated other comprehensive loss, net, and reclassified into other income, net, for the three months ended March 31, 2015 and 2014 (in millions): | |||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Deferred losses recognized | $ | -126 | $ | -62 | ||||||||||||||||||
Deferred (gains) losses reclassified into earnings(a) | 97 | -12 | ||||||||||||||||||||
Total net deferred losses recognized | -29 | -74 | ||||||||||||||||||||
Income tax benefit | 11 | 29 | ||||||||||||||||||||
Total net deferred losses recognized, net of tax | $ | -18 | $ | -45 | ||||||||||||||||||
————————— | ||||||||||||||||||||||
Deferred gains (losses) on cross-currency swaps were reclassified from accumulated other comprehensive loss, net, to other income, net, which offsets the re-measurement gains (losses) recognized in other income, net, on the British pound sterling denominated debt. | ||||||||||||||||||||||
TWC_SHAREHOLDERS_EQUITY_Tables
TWC SHAREHOLDERS' EQUITY (Tables) | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Time Warner Cable Shareholders Equity Table [Abstract] | ||||||||||||||||||||||
Schedule of Changes in Common Stock | Changes in common stock from January 1 through March 31 are presented below (in millions): | |||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Balance at beginning of period | 280.8 | 277.9 | ||||||||||||||||||||
Shares issued under the equity-based compensation plan | 1.6 | 2.2 | ||||||||||||||||||||
Shares repurchased and retired | — | -1.5 | ||||||||||||||||||||
Balance at end of period | 282.4 | 278.6 | ||||||||||||||||||||
Schedule of Changes in Accumulated Other Comprehensive Income (Loss), Net | Changes in accumulated other comprehensive income (loss), net, included in TWC shareholders' equity from January 1 through March 31 are presented below (in millions): | |||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Balance at beginning of period | $ | -324 | $ | 44 | ||||||||||||||||||
Other comprehensive loss before reclassifications, net of tax | -78 | -39 | ||||||||||||||||||||
Amounts reclassified into earnings, net of tax | 66 | -7 | ||||||||||||||||||||
Other comprehensive loss, net of tax | -12 | -46 | ||||||||||||||||||||
Balance at end of period | $ | -336 | $ | -2 | ||||||||||||||||||
The following table summarizes the changes in the components of accumulated other comprehensive income (loss), net, included in TWC shareholders' equity from January 1 through March 31 (in millions): | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Unrealized losses on pension benefit obligation: | ||||||||||||||||||||||
Balance at beginning of period | $ | -473 | $ | -104 | ||||||||||||||||||
Amounts reclassified into earnings, net of tax: | ||||||||||||||||||||||
Amortization of actuarial (gain) loss(a) | 10 | -1 | ||||||||||||||||||||
Income tax benefit | -4 | — | ||||||||||||||||||||
Amortization of actuarial (gain) loss, net of tax | 6 | -1 | ||||||||||||||||||||
Other comprehensive income (loss), net of tax | 6 | -1 | ||||||||||||||||||||
Balance at end of period | $ | -467 | $ | -105 | ||||||||||||||||||
Deferred gains (losses) on cash flow hedges: | ||||||||||||||||||||||
Balance at beginning of period | $ | 150 | $ | 149 | ||||||||||||||||||
Other comprehensive loss before reclassifications, net of tax | -78 | -39 | ||||||||||||||||||||
Amounts reclassified into earnings, net of tax: | ||||||||||||||||||||||
Effective portion of (gain) loss on cash flow hedges(b) | 97 | -12 | ||||||||||||||||||||
Income tax provision (benefit) | -37 | 6 | ||||||||||||||||||||
Effective portion of (gain) loss on cash flow hedges, net of tax | 60 | -6 | ||||||||||||||||||||
Other comprehensive loss, net of tax | -18 | -45 | ||||||||||||||||||||
Balance at end of period | $ | 132 | $ | 104 | ||||||||||||||||||
Other changes: | ||||||||||||||||||||||
Balance at beginning and end of period | $ | -1 | $ | -1 | ||||||||||||||||||
—————————— | ||||||||||||||||||||||
Amounts are included in the computation of net periodic benefit costs as discussed further in Note 7. | ||||||||||||||||||||||
Amounts are recorded in other income, net, in the consolidated statement of operations as discussed further in Note 4. | ||||||||||||||||||||||
EQUITYBASED_COMPENSATION_Table
EQUITY-BASED COMPENSATION (Tables) | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Equity Based Compensation Table [Abstract] | ||||||||||||||||||||||
Schedule of Equity-Based Compensation Expense | Equity-based compensation expense recognized for the three months ended March 31, 2015 and 2014 was as follows (in millions): | |||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Restricted stock units(a) | $ | 38 | $ | 43 | ||||||||||||||||||
Stock options | 4 | 7 | ||||||||||||||||||||
Total equity-based compensation expense(a) | $ | 42 | $ | 50 | ||||||||||||||||||
————————— | ||||||||||||||||||||||
Of the total equity-based compensation expense recorded in 2015 and 2014, $11 million and $9 million, respectively, is recognized in merger-related and restructuring costs in the consolidated statement of operations. | ||||||||||||||||||||||
PENSION_COSTS_Tables
PENSION COSTS (Tables) | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Pension Costs Table [Abstract] | ||||||||||||||||||||||
Schedule of Net Periodic Benefit Costs | The components of net periodic benefit costs for the three months ended March 31, 2015 and 2014 is as follows (in millions): | |||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Service cost | $ | 57 | $ | 43 | ||||||||||||||||||
Interest cost | 36 | 36 | ||||||||||||||||||||
Expected return on plan assets | -57 | -58 | ||||||||||||||||||||
Amounts amortized | 10 | -1 | ||||||||||||||||||||
Net periodic benefit costs | $ | 46 | $ | 20 |
MERGERRELATED_AND_RESTRUCTURIN1
MERGER-RELATED AND RESTRUCTURING COSTS (Tables) | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Merger Related And Restructuring Costs Table [Abstract] | ||||||||||||||||||||||
Schedule of Merger-Related and Restructuring Costs | Merger-related and restructuring costs for the three months ended March 31, 2015 and 2014 consisted of the following (in millions): | |||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Merger-related costs | $ | 24 | $ | 63 | ||||||||||||||||||
Restructuring costs | 2 | 17 | ||||||||||||||||||||
Total merger-related and restructuring costs | $ | 26 | $ | 80 | ||||||||||||||||||
Schedule of Changes in Merger-Related Accruals by Type of Cost | Changes in accruals for merger-related costs are presented below (in millions): | |||||||||||||||||||||
Employee | Other | |||||||||||||||||||||
Costs | Costs | Total | ||||||||||||||||||||
Remaining liability as of December 31, 2013 | $ | 3 | $ | 3 | $ | 6 | ||||||||||||||||
Costs incurred | 68 | 75 | 143 | |||||||||||||||||||
Adjustments | -1 | — | -1 | |||||||||||||||||||
Cash paid(a) | -5 | -61 | -66 | |||||||||||||||||||
Remaining liability as of December 31, 2014 | 65 | 17 | 82 | |||||||||||||||||||
Costs incurred | 3 | 10 | 13 | |||||||||||||||||||
Cash paid | -2 | -19 | -21 | |||||||||||||||||||
Remaining liability as of March 31, 2015(b) | $ | 66 | $ | 8 | $ | 74 | ||||||||||||||||
————————— | ||||||||||||||||||||||
Of the total cash paid in 2014, $24 million was paid during the three months ended March 31, 2014. | ||||||||||||||||||||||
The remaining $74 million liability as of March 31, 2015 is classified as a current liability in the consolidated balance sheet. | ||||||||||||||||||||||
Schedule of Changes in Restructuring Reserves by Type of Cost | Changes in restructuring reserves are presented below (in millions): | |||||||||||||||||||||
Employee | Other | |||||||||||||||||||||
Termination | Exit | |||||||||||||||||||||
Costs | Costs | Total | ||||||||||||||||||||
Remaining liability as of December 31, 2013 | $ | 39 | $ | 4 | $ | 43 | ||||||||||||||||
Costs incurred | 14 | 16 | 30 | |||||||||||||||||||
Adjustments | -3 | — | -3 | |||||||||||||||||||
Cash paid(a) | -42 | -20 | -62 | |||||||||||||||||||
Remaining liability as of December 31, 2014 | 8 | — | 8 | |||||||||||||||||||
Costs incurred | 2 | — | 2 | |||||||||||||||||||
Cash paid | -5 | — | -5 | |||||||||||||||||||
Remaining liability as of March 31, 2015(b) | $ | 5 | $ | — | $ | 5 | ||||||||||||||||
————————— | ||||||||||||||||||||||
Of the total cash paid in 2014, $34 million was paid during the three months ended March 31, 2014. | ||||||||||||||||||||||
Of the remaining liability as of March 31, 2015, $4 million is classified as a current liability, with the remaining amount classified as a noncurrent liability in the consolidated balance sheet. Amounts are expected to be paid through March 2018. | ||||||||||||||||||||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Segment Information Table [Abstract] | ||||||||||||||||||||||
Schedule of Segment Information by Segment | Segment information for the three months ended March 31, 2015 and 2014 is as follows (in millions): | |||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||
Residential | Business | Other | ||||||||||||||||||||
Services | Services | Operations | Shared | Intersegment | Total | |||||||||||||||||
Segment | Segment | Segment | Functions | Eliminations | Consolidated | |||||||||||||||||
Revenue(a) | $ | 4,662 | $ | 781 | $ | 398 | $ | — | $ | -64 | $ | 5,777 | ||||||||||
Operating costs and | ||||||||||||||||||||||
expenses | -2,581 | -302 | -235 | -727 | 64 | -3,781 | ||||||||||||||||
Merger-related and | ||||||||||||||||||||||
restructuring costs | — | — | — | -26 | — | -26 | ||||||||||||||||
OIBDA | $ | 2,081 | $ | 479 | $ | 163 | $ | -753 | $ | — | 1,970 | |||||||||||
Depreciation | -852 | |||||||||||||||||||||
Amortization | -34 | |||||||||||||||||||||
Operating Income | $ | 1,084 | ||||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||
Residential | Business | Other | ||||||||||||||||||||
Services | Services | Operations | Shared | Intersegment | Total | |||||||||||||||||
Segment | Segment | Segment | Functions | Eliminations | Consolidated | |||||||||||||||||
Revenue(a) | $ | 4,568 | $ | 668 | $ | 400 | $ | — | $ | -54 | $ | 5,582 | ||||||||||
Operating costs and | ||||||||||||||||||||||
expenses | -2,436 | -266 | -227 | -727 | 54 | -3,602 | ||||||||||||||||
Merger-related and | ||||||||||||||||||||||
restructuring costs | — | — | — | -80 | — | -80 | ||||||||||||||||
OIBDA | $ | 2,132 | $ | 402 | $ | 173 | $ | -807 | $ | — | 1,900 | |||||||||||
Depreciation | -775 | |||||||||||||||||||||
Amortization | -33 | |||||||||||||||||||||
Operating Income | $ | 1,092 | ||||||||||||||||||||
—————————— | ||||||||||||||||||||||
Revenue derived from outside the U.S. was insignificant in all periods presented. No single customer accounted for a significant amount of revenue in any period presented. | ||||||||||||||||||||||
Schedule of Intersegment Eliminations by Segment | Intersegment revenue for the three months ended March 31, 2015 and 2014 consisted of the following (in millions): | |||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Residential Services | $ | — | $ | — | ||||||||||||||||||
Business Services | — | — | ||||||||||||||||||||
Other Operations | 64 | 54 | ||||||||||||||||||||
Total intersegment revenue | $ | 64 | $ | 54 | ||||||||||||||||||
Schedule of Segment Revenue by Source | Revenue for the three months ended March 31, 2015 and 2014 was derived from the following sources (in millions): | |||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Residential Services revenue: | ||||||||||||||||||||||
Video | $ | 2,469 | $ | 2,495 | ||||||||||||||||||
High-speed data | 1,696 | 1,558 | ||||||||||||||||||||
Voice | 473 | 496 | ||||||||||||||||||||
Other | 24 | 19 | ||||||||||||||||||||
Total Residential Services revenue | 4,662 | 4,568 | ||||||||||||||||||||
Business Services revenue: | ||||||||||||||||||||||
Video | 94 | 89 | ||||||||||||||||||||
High-speed data | 376 | 306 | ||||||||||||||||||||
Voice | 142 | 118 | ||||||||||||||||||||
Wholesale transport | 121 | 101 | ||||||||||||||||||||
Other | 48 | 54 | ||||||||||||||||||||
Total Business Services revenue | 781 | 668 | ||||||||||||||||||||
Other Operations revenue: | ||||||||||||||||||||||
Advertising | 230 | 247 | ||||||||||||||||||||
Other | 168 | 153 | ||||||||||||||||||||
Total Other Operations revenue | 398 | 400 | ||||||||||||||||||||
Intersegment eliminations | -64 | -54 | ||||||||||||||||||||
Total revenue | $ | 5,777 | $ | 5,582 |
ADDITIONAL_FINANCIAL_INFORMATI1
ADDITIONAL FINANCIAL INFORMATION (Tables) | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Additional Financial Information Table [Abstract] | ||||||||||||||||||||||
Schedule of Other Current Assets | Other current assets as of March 31, 2015 and December 31, 2014 consisted of the following (in millions): | |||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Prepaid income taxes | $ | 41 | $ | 157 | ||||||||||||||||||
Other prepaid expenses | 349 | 208 | ||||||||||||||||||||
Other current assets | 26 | 26 | ||||||||||||||||||||
Total other current assets | $ | 416 | $ | 391 | ||||||||||||||||||
Schedule of Other Current Liabilities | Other current liabilities as of March 31, 2015 and December 31, 2014 consisted of the following (in millions): | |||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Accrued interest | $ | 448 | $ | 486 | ||||||||||||||||||
Accrued compensation and benefits | 370 | 397 | ||||||||||||||||||||
Accrued dividends | 216 | — | ||||||||||||||||||||
Accrued insurance | 198 | 199 | ||||||||||||||||||||
Accrued franchise fees | 119 | 151 | ||||||||||||||||||||
Accrued sales and other taxes | 113 | 132 | ||||||||||||||||||||
Other accrued expenses | 424 | 448 | ||||||||||||||||||||
Total other current liabilities | $ | 1,888 | $ | 1,813 | ||||||||||||||||||
Schedule of Related Party Transactions | Transactions with related parties (i.e., equity-method investees) for the three months ended March 31, 2015 and 2014 consisted of the following (in millions): | |||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Revenue | $ | 1 | $ | 1 | ||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||
Programming and content | $ | -48 | $ | -45 | ||||||||||||||||||
Other operating | -5 | -6 | ||||||||||||||||||||
Total | $ | -53 | $ | -51 | ||||||||||||||||||
Schedule of Supplemental Cash Flow Information | Additional financial information with respect to cash (payments) and receipts for the three months ended March 31, 2015 and 2014 is as follows (in millions): | |||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Cash paid for interest | $ | -408 | $ | -439 | ||||||||||||||||||
Cash received under interest rate swap contracts | 16 | 24 | ||||||||||||||||||||
Cash paid for interest, net | $ | -392 | $ | -415 | ||||||||||||||||||
Cash paid for income taxes | $ | -5 | $ | -1 | ||||||||||||||||||
Cash refunds of income taxes | 2 | 3 | ||||||||||||||||||||
Cash (paid for) refunds of income taxes, net | $ | -3 | $ | 2 |
CONDENSED_CONSOLIDATED_FINANCI
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Tables) | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Condensed Consolidating Financial Statements Table [Abstract] | ||||||||||||||||||||||
Schedule of Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet as of March 31, 2015 | |||||||||||||||||||||
Non- | ||||||||||||||||||||||
Parent | Guarantor | Guarantor | TWC | |||||||||||||||||||
Company | Subsidiary | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
ASSETS | ||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||
Cash and equivalents | $ | 308 | $ | — | $ | 239 | $ | — | $ | 547 | ||||||||||||
Receivables, net | 51 | — | 760 | — | 811 | |||||||||||||||||
Receivables from affiliated parties | 218 | — | 27 | -245 | — | |||||||||||||||||
Deferred income tax assets | — | — | 235 | -3 | 232 | |||||||||||||||||
Other current assets | 11 | 44 | 361 | — | 416 | |||||||||||||||||
Total current assets | 588 | 44 | 1,622 | -248 | 2,006 | |||||||||||||||||
Investments in and amounts due from | ||||||||||||||||||||||
consolidated subsidiaries | 45,269 | 47,128 | 7,641 | -100,038 | — | |||||||||||||||||
Investments | — | 55 | 12 | — | 67 | |||||||||||||||||
Property, plant and equipment, net | — | 27 | 16,180 | — | 16,207 | |||||||||||||||||
Intangible assets subject to amortization, net | — | 19 | 492 | — | 511 | |||||||||||||||||
Intangible assets not subject to amortization | — | — | 26,012 | — | 26,012 | |||||||||||||||||
Goodwill | — | — | 3,137 | — | 3,137 | |||||||||||||||||
Other assets | 328 | — | 67 | -5 | 390 | |||||||||||||||||
Total assets | $ | 46,185 | $ | 47,273 | $ | 55,163 | $ | -100,291 | $ | 48,330 | ||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||
Accounts payable | $ | — | $ | — | $ | 446 | $ | — | $ | 446 | ||||||||||||
Deferred revenue and subscriber-related | ||||||||||||||||||||||
liabilities | — | — | 207 | — | 207 | |||||||||||||||||
Payables to affiliated parties | 27 | 213 | 5 | -245 | — | |||||||||||||||||
Accrued programming and content expense | — | — | 971 | — | 971 | |||||||||||||||||
Current maturities of long-term debt | 638 | — | 9 | — | 647 | |||||||||||||||||
Other current liabilities | 745 | 24 | 1,122 | -3 | 1,888 | |||||||||||||||||
Total current liabilities | 1,410 | 237 | 2,760 | -248 | 4,159 | |||||||||||||||||
Long-term debt | 20,505 | 2,059 | 75 | — | 22,639 | |||||||||||||||||
Deferred income tax liabilities, net | — | 222 | 12,399 | -5 | 12,616 | |||||||||||||||||
Long-term payables to affiliated parties | 7,641 | 14,702 | — | -22,343 | — | |||||||||||||||||
Other liabilities | 220 | 93 | 459 | — | 772 | |||||||||||||||||
TWC shareholders’ equity: | ||||||||||||||||||||||
Due to (from) TWC and subsidiaries | 8,269 | 1,528 | -9,797 | — | — | |||||||||||||||||
Other TWC shareholders’ equity | 8,140 | 28,432 | 49,263 | -77,695 | 8,140 | |||||||||||||||||
Total TWC shareholders’ equity | 16,409 | 29,960 | 39,466 | -77,695 | 8,140 | |||||||||||||||||
Noncontrolling interests | — | — | 4 | — | 4 | |||||||||||||||||
Total equity | 16,409 | 29,960 | 39,470 | -77,695 | 8,144 | |||||||||||||||||
Total liabilities and equity | $ | 46,185 | $ | 47,273 | $ | 55,163 | $ | -100,291 | $ | 48,330 | ||||||||||||
Condensed Consolidating Balance Sheet as of December 31, 2014 | ||||||||||||||||||||||
Non- | ||||||||||||||||||||||
Parent | Guarantor | Guarantor | TWC | |||||||||||||||||||
Company | Subsidiary | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
ASSETS | ||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||
Cash and equivalents | $ | 481 | $ | — | $ | 226 | $ | — | $ | 707 | ||||||||||||
Receivables, net | 31 | — | 918 | — | 949 | |||||||||||||||||
Receivables from affiliated parties | 215 | — | 27 | -242 | — | |||||||||||||||||
Deferred income tax assets | 9 | — | 264 | -4 | 269 | |||||||||||||||||
Other current assets | 121 | 46 | 224 | — | 391 | |||||||||||||||||
Total current assets | 857 | 46 | 1,659 | -246 | 2,316 | |||||||||||||||||
Investments in and amounts due from | ||||||||||||||||||||||
consolidated subsidiaries | 44,790 | 46,401 | 7,641 | -98,832 | — | |||||||||||||||||
Investments | — | 51 | 13 | — | 64 | |||||||||||||||||
Property, plant and equipment, net | — | 28 | 15,962 | — | 15,990 | |||||||||||||||||
Intangible assets subject to amortization, net | — | 5 | 518 | — | 523 | |||||||||||||||||
Intangible assets not subject to amortization | — | — | 26,012 | — | 26,012 | |||||||||||||||||
Goodwill | — | — | 3,137 | — | 3,137 | |||||||||||||||||
Other assets | 385 | — | 74 | — | 459 | |||||||||||||||||
Total assets | $ | 46,032 | $ | 46,531 | $ | 55,016 | $ | -99,078 | $ | 48,501 | ||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||
Accounts payable | $ | — | $ | — | $ | 567 | $ | — | $ | 567 | ||||||||||||
Deferred revenue and subscriber-related | ||||||||||||||||||||||
liabilities | — | — | 198 | — | 198 | |||||||||||||||||
Payables to affiliated parties | 27 | 212 | 3 | -242 | — | |||||||||||||||||
Accrued programming and content expense | — | — | 902 | — | 902 | |||||||||||||||||
Current maturities of long-term debt | 1,008 | — | 9 | — | 1,017 | |||||||||||||||||
Other current liabilities | 529 | 67 | 1,221 | -4 | 1,813 | |||||||||||||||||
Total current liabilities | 1,564 | 279 | 2,900 | -246 | 4,497 | |||||||||||||||||
Long-term debt | 20,564 | 2,061 | 76 | — | 22,701 | |||||||||||||||||
Deferred income tax liabilities, net | 23 | 214 | 12,323 | — | 12,560 | |||||||||||||||||
Long-term payables to affiliated parties | 7,641 | 14,702 | — | -22,343 | — | |||||||||||||||||
Other liabilities | 154 | 91 | 481 | — | 726 | |||||||||||||||||
TWC shareholders’ equity: | ||||||||||||||||||||||
Due to (from) TWC and subsidiaries | 8,073 | 1,216 | -9,289 | — | — | |||||||||||||||||
Other TWC shareholders’ equity | 8,013 | 27,968 | 48,521 | -76,489 | 8,013 | |||||||||||||||||
Total TWC shareholders’ equity | 16,086 | 29,184 | 39,232 | -76,489 | 8,013 | |||||||||||||||||
Noncontrolling interests | — | — | 4 | — | 4 | |||||||||||||||||
Total equity | 16,086 | 29,184 | 39,236 | -76,489 | 8,017 | |||||||||||||||||
Total liabilities and equity | $ | 46,032 | $ | 46,531 | $ | 55,016 | $ | -99,078 | $ | 48,501 | ||||||||||||
Schedule of Condensed Consolidating Statement of Operations | Condensed Consolidating Statement of Operations for the Three Months Ended March 31, 2015 | |||||||||||||||||||||
Non- | ||||||||||||||||||||||
Parent | Guarantor | Guarantor | TWC | |||||||||||||||||||
Company | Subsidiary | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Revenue | $ | — | $ | — | $ | 5,777 | $ | — | $ | 5,777 | ||||||||||||
Costs and expenses: | ||||||||||||||||||||||
Programming and content | — | — | 1,419 | — | 1,419 | |||||||||||||||||
Sales and marketing | — | — | 559 | — | 559 | |||||||||||||||||
Technical operations | — | — | 399 | — | 399 | |||||||||||||||||
Customer care | — | — | 226 | — | 226 | |||||||||||||||||
Other operating | — | — | 1,178 | — | 1,178 | |||||||||||||||||
Depreciation | — | — | 852 | — | 852 | |||||||||||||||||
Amortization | — | — | 34 | — | 34 | |||||||||||||||||
Merger-related and restructuring costs | 4 | — | 22 | — | 26 | |||||||||||||||||
Total costs and expenses | 4 | — | 4,689 | — | 4,693 | |||||||||||||||||
Operating Income (Loss) | -4 | — | 1,088 | — | 1,084 | |||||||||||||||||
Equity in pretax income of consolidated | ||||||||||||||||||||||
subsidiaries | 807 | 1,131 | — | -1,938 | — | |||||||||||||||||
Interest income (expense), net | -57 | -350 | 59 | — | -348 | |||||||||||||||||
Other income, net | — | 1 | 9 | — | 10 | |||||||||||||||||
Income before income taxes | 746 | 782 | 1,156 | -1,938 | 746 | |||||||||||||||||
Income tax provision | -288 | -303 | -289 | 592 | -288 | |||||||||||||||||
Net income | 458 | 479 | 867 | -1,346 | 458 | |||||||||||||||||
Less: Net income attributable to | ||||||||||||||||||||||
noncontrolling interests | — | — | — | — | — | |||||||||||||||||
Net income attributable to TWC shareholders | $ | 458 | $ | 479 | $ | 867 | $ | -1,346 | $ | 458 | ||||||||||||
Condensed Consolidating Statement of Operations for the Three Months Ended March 31, 2014 | ||||||||||||||||||||||
Non- | ||||||||||||||||||||||
Parent | Guarantor | Guarantor | TWC | |||||||||||||||||||
Company | Subsidiary | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Revenue | $ | — | $ | — | $ | 5,582 | $ | — | $ | 5,582 | ||||||||||||
Costs and expenses: | ||||||||||||||||||||||
Programming and content | — | — | 1,309 | — | 1,309 | |||||||||||||||||
Sales and marketing | — | — | 555 | — | 555 | |||||||||||||||||
Technical operations | — | — | 371 | — | 371 | |||||||||||||||||
Customer care | — | — | 205 | — | 205 | |||||||||||||||||
Other operating | — | — | 1,162 | — | 1,162 | |||||||||||||||||
Depreciation | — | — | 775 | — | 775 | |||||||||||||||||
Amortization | — | — | 33 | — | 33 | |||||||||||||||||
Merger-related and restructuring costs | 33 | — | 47 | — | 80 | |||||||||||||||||
Total costs and expenses | 33 | — | 4,457 | — | 4,490 | |||||||||||||||||
Operating Income (Loss) | -33 | — | 1,125 | — | 1,092 | |||||||||||||||||
Equity in pretax income of consolidated | ||||||||||||||||||||||
subsidiaries | 824 | 1,152 | — | -1,976 | — | |||||||||||||||||
Interest income (expense), net | -48 | -366 | 50 | — | -364 | |||||||||||||||||
Other income, net | — | 5 | 10 | — | 15 | |||||||||||||||||
Income before income taxes | 743 | 791 | 1,185 | -1,976 | 743 | |||||||||||||||||
Income tax provision | -264 | -284 | -295 | 579 | -264 | |||||||||||||||||
Net income | 479 | 507 | 890 | -1,397 | 479 | |||||||||||||||||
Less: Net income attributable to | ||||||||||||||||||||||
noncontrolling interests | — | — | — | — | — | |||||||||||||||||
Net income attributable to TWC shareholders | $ | 479 | $ | 507 | $ | 890 | $ | -1,397 | $ | 479 | ||||||||||||
Schedule of Condensed Consolidating Statement of Comprehensive Income | Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended March 31, 2015 | |||||||||||||||||||||
Non- | ||||||||||||||||||||||
Parent | Guarantor | Guarantor | TWC | |||||||||||||||||||
Company | Subsidiary | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Net income | $ | 458 | $ | 479 | $ | 867 | $ | -1,346 | $ | 458 | ||||||||||||
Change in accumulated unrealized losses on | ||||||||||||||||||||||
pension benefit obligation, net of tax | 6 | — | — | — | 6 | |||||||||||||||||
Change in accumulated deferred gains (losses) | ||||||||||||||||||||||
on cash flow hedges, net of tax | -18 | — | — | — | -18 | |||||||||||||||||
Other comprehensive loss | -12 | — | — | — | -12 | |||||||||||||||||
Comprehensive income | 446 | 479 | 867 | -1,346 | 446 | |||||||||||||||||
Less: Comprehensive income attributable to | ||||||||||||||||||||||
noncontrolling interests | — | — | — | — | — | |||||||||||||||||
Comprehensive income attributable to | ||||||||||||||||||||||
TWC shareholders | $ | 446 | $ | 479 | $ | 867 | $ | -1,346 | $ | 446 | ||||||||||||
Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended March 31, 2014 | ||||||||||||||||||||||
Non- | ||||||||||||||||||||||
Parent | Guarantor | Guarantor | TWC | |||||||||||||||||||
Company | Subsidiary | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Net income | $ | 479 | $ | 507 | $ | 890 | $ | -1,397 | $ | 479 | ||||||||||||
Change in accumulated unrealized losses on | ||||||||||||||||||||||
pension benefit obligation, net of tax | -1 | — | — | — | -1 | |||||||||||||||||
Change in accumulated deferred gains (losses) | ||||||||||||||||||||||
on cash flow hedges, net of tax | -45 | — | — | — | -45 | |||||||||||||||||
Other comprehensive loss | -46 | — | — | — | -46 | |||||||||||||||||
Comprehensive income | 433 | 507 | 890 | -1,397 | 433 | |||||||||||||||||
Less: Comprehensive income attributable to | ||||||||||||||||||||||
noncontrolling interests | — | — | — | — | — | |||||||||||||||||
Comprehensive income attributable to | ||||||||||||||||||||||
TWC shareholders | $ | 433 | $ | 507 | $ | 890 | $ | -1,397 | $ | 433 | ||||||||||||
Schedule of Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows for the Three Months Ended March 31, 2015 | |||||||||||||||||||||
Non- | ||||||||||||||||||||||
Parent | Guarantor | Guarantor | TWC | |||||||||||||||||||
Company | Subsidiary | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Cash provided (used) by operating activities | $ | 90 | $ | -407 | $ | 1,825 | $ | — | $ | 1,508 | ||||||||||||
INVESTING ACTIVITIES | ||||||||||||||||||||||
Capital expenditures | — | — | -1,134 | — | -1,134 | |||||||||||||||||
Acquisition of intangible assets | — | -14 | -9 | — | -23 | |||||||||||||||||
Other investing activities | — | -3 | 6 | — | 3 | |||||||||||||||||
Cash used by investing activities | — | -17 | -1,137 | — | -1,154 | |||||||||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||||
Short-term borrowings, net | 131 | — | — | — | 131 | |||||||||||||||||
Repayments of long-term debt | -500 | — | — | — | -500 | |||||||||||||||||
Dividends paid | -216 | — | — | — | -216 | |||||||||||||||||
Proceeds from exercise of stock options | 71 | — | — | — | 71 | |||||||||||||||||
Excess tax benefit from equity-based | ||||||||||||||||||||||
compensation | 56 | — | — | — | 56 | |||||||||||||||||
Taxes paid in cash in lieu of shares issued for | ||||||||||||||||||||||
equity-based compensation | — | — | -56 | — | -56 | |||||||||||||||||
Net change in investments in and amounts due | ||||||||||||||||||||||
from consolidated subsidiaries | 195 | 424 | -619 | — | — | |||||||||||||||||
Cash provided (used) by financing activities | -263 | 424 | -675 | — | -514 | |||||||||||||||||
Increase (decrease) in cash and equivalents | -173 | — | 13 | — | -160 | |||||||||||||||||
Cash and equivalents at beginning of period | 481 | — | 226 | — | 707 | |||||||||||||||||
Cash and equivalents at end of period | $ | 308 | $ | — | $ | 239 | $ | — | $ | 547 | ||||||||||||
Condensed Consolidating Statement of Cash Flows for the Three Months Ended March 31, 2014 | ||||||||||||||||||||||
Non- | ||||||||||||||||||||||
Parent | Guarantor | Guarantor | TWC | |||||||||||||||||||
Company | Subsidiary | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Cash provided (used) by operating activities | $ | 73 | $ | -362 | $ | 1,686 | $ | — | $ | 1,397 | ||||||||||||
INVESTING ACTIVITIES | ||||||||||||||||||||||
Capital expenditures | — | — | -834 | — | -834 | |||||||||||||||||
Acquisition of intangible assets | — | — | -12 | — | -12 | |||||||||||||||||
Other investing activities | 18 | -2 | 11 | — | 27 | |||||||||||||||||
Cash provided (used) by investing activities | 18 | -2 | -835 | — | -819 | |||||||||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||||
Short-term borrowings, net | 1,544 | — | — | — | 1,544 | |||||||||||||||||
Repayments of long-term debt | -750 | — | — | — | -750 | |||||||||||||||||
Dividends paid | -214 | — | — | — | -214 | |||||||||||||||||
Repurchases of common stock | -259 | — | — | — | -259 | |||||||||||||||||
Proceeds from exercise of stock options | 79 | — | — | — | 79 | |||||||||||||||||
Excess tax benefit from equity-based | ||||||||||||||||||||||
compensation | 78 | — | — | — | 78 | |||||||||||||||||
Taxes paid in cash in lieu of shares issued for | ||||||||||||||||||||||
equity-based compensation | — | — | -66 | — | -66 | |||||||||||||||||
Net collateral received on derivative | ||||||||||||||||||||||
financial instruments | 43 | — | — | — | 43 | |||||||||||||||||
Net change in investments in and amounts due | ||||||||||||||||||||||
from consolidated subsidiaries | 419 | 364 | -783 | — | — | |||||||||||||||||
Other financing activities | -1 | — | — | — | -1 | |||||||||||||||||
Cash provided (used) by financing activities | 939 | 364 | -849 | — | 454 | |||||||||||||||||
Increase in cash and equivalents | 1,030 | — | 2 | — | 1,032 | |||||||||||||||||
Cash and equivalents at beginning of period | 316 | — | 209 | — | 525 | |||||||||||||||||
Cash and equivalents at end of period | $ | 1,346 | $ | — | $ | 211 | $ | — | $ | 1,557 |
RECENT_ACCOUNTING_STANDARDS_De
RECENT ACCOUNTING STANDARDS (Details) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Recent Accounting Standards Details [Abstract] | |
Debt issuance costs capitalized, net of accumulated amortization | $100 |
Current portion of debt issuance costs capitalized, net of accumulated amortization | $10 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share Details [Abstract] | ||
Net income attributable to TWC common shareholders | $450 | $475 |
Net income allocated to participating securities | 8 | 4 |
Net income attributable to TWC shareholders | $458 | $479 |
Weighted-average common shares outstanding - basic (in shares) | 281.5 | 277.8 |
Dilutive effect of nonparticipating equity awards (in shares) | 1.1 | 2.1 |
Dilutive effect of participating equity awards (in shares) | 2.3 | 1.9 |
Weighted-average common shares outstanding - diluted (in shares) | 284.9 | 281.8 |
Net income per common share attributable to TWC common shareholders - basic (in US dollars per share) | $1.60 | $1.71 |
Net income per common share attributable to TWC common shareholders - diluted (in US dollars per share) | $1.59 | $1.70 |
DERIVATIVE_FINANCIAL_INSTRUMEN2
DERIVATIVE FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Details) | 3 Months Ended | ||||||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
USD ($) | USD ($) | USD ($) | Interest Rate Swaps [Member] | Interest Rate Swaps [Member] | Interest Rate Swaps [Member] | Cross-Currency Swaps [Member] | Cross-Currency Swaps [Member] | Cross-Currency Swaps [Member] | |
USD ($) | USD ($) | Other Current Assets [Member] | USD ($) | GBP (£) | USD ($) | ||||
USD ($) | |||||||||
Derivative Financial Instruments | |||||||||
Derivative assets subject to master netting arrangements recorded gross | $229 | $290 | $112 | $93 | $1 | $117 | $197 | ||
Derivative liabilities subject to master netting arrangements recorded gross | 51 | 19 | 5 | 19 | 46 | 0 | |||
Notional amount of derivative financial instrument | 5,600 | 6,100 | 1,275 | ||||||
Weighted-average variable interest rate (pay) | 5.13% | 4.78% | |||||||
Weighted-average fixed interest rate (receive) | 6.86% | 6.58% | |||||||
Deferred losses recognized (cash flow hedges) | -126 | -62 | |||||||
Deferred (gains) losses reclassified into earnings (cash flow hedges) | 97 | -12 | |||||||
Total net deferred losses recognized (cash flow hedges) | -29 | -74 | |||||||
Income tax benefit (cash flow hedges) | 11 | 29 | |||||||
Total net deferred losses recognized, net of tax (cash flow hedges) | -18 | -45 | |||||||
Carrying value of senior notes and debentures | 22,563 | 23,126 | |||||||
Fair value of senior notes and debentures | $27,233 | $27,842 |
TWC_SHAREHOLDERS_EQUITY_Detail
TWC SHAREHOLDERS' EQUITY (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Time Warner Cable Shareholders Equity [Abstract] | ||||
Common stock shares outstanding at beginning of period (in shares) | 280.8 | 277.9 | ||
Shares issued under the Company's equity-based compensation plan (in shares) | 1.6 | 2.2 | ||
Shares repurchased and retired (in shares) | 0 | 1.5 | ||
Common stock shares outstanding at end of period (in shares) | 282.4 | 278.6 | ||
Value of common stock authorized to be repurchased | $4,000 | |||
Remaining value of common stock authorized to be repurchased | 2,723 | |||
Accumulated Other Comprehensive Income (Loss), Net | ||||
Balance at beginning of period | -324 | 44 | ||
Other comprehensive loss before reclassifications, net of tax | -78 | -39 | ||
Amounts reclassified into earnings, net of tax | 66 | -7 | ||
Other comprehensive loss | -12 | -46 | ||
Balance at end of period | -336 | -2 | ||
Unrealized Losses on Pension Benefit Obligation [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net | ||||
Balance at beginning of period | -473 | -104 | ||
Amounts reclassified into earnings, before tax | 10 | -1 | ||
Income tax provision (benefit) | -4 | 0 | ||
Amounts reclassified into earnings, net of tax | 6 | -1 | ||
Other comprehensive loss | 6 | -1 | ||
Balance at end of period | -467 | -105 | ||
Deferred Gains (Losses) on Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net | ||||
Balance at beginning of period | 150 | 149 | ||
Other comprehensive loss before reclassifications, net of tax | -78 | -39 | ||
Amounts reclassified into earnings, before tax | 97 | -12 | ||
Income tax provision (benefit) | -37 | 6 | ||
Amounts reclassified into earnings, net of tax | 60 | -6 | ||
Other comprehensive loss | -18 | -45 | ||
Balance at end of period | 132 | 104 | ||
Other Changes [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net | ||||
Balance at beginning of period | -1 | -1 | ||
Balance at end of period | ($1) | ($1) | ($1) | ($1) |
EQUITYBASED_COMPENSATION_Detai
EQUITY-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Equity Based Compensation Details [Abstract] | |||
Number of shares authorized for grant (in shares) | 20,000,000 | ||
Number of shares available for grant (in shares) | 8,800,000 | ||
Equity-Based Compensation Expense & Unrecognized Compensation Cost | |||
Equity-based compensation expense | $42 | $50 | |
Equity-based compensation expense classified as merger-related costs | 11 | 9 | 56 |
Number of unvested restricted stock units granted (in shares) | 18,000 | 3,575,000 | |
Weighted-average grant date fair value, restricted stock units granted (in US dollars per share) | $146.80 | $135.31 | |
Number of options granted (in shares) | 0 | 0 | |
Restricted Stock Units [Member] | |||
Equity-Based Compensation Expense & Unrecognized Compensation Cost | |||
Equity-based compensation expense | 38 | 43 | |
Total unrecognized compensation cost | 422 | ||
Total unrecognized compensation cost, period for recognition | 3 years 6 months 13 days | ||
Award vesting percentage | 50.00% | ||
Award vesting period, directors | 3 years | ||
Restricted Stock Units [Member] | Minimum [Member] | |||
Equity-Based Compensation Expense & Unrecognized Compensation Cost | |||
Award vesting period | 3 years | ||
Restricted Stock Units [Member] | Maximum [Member] | |||
Equity-Based Compensation Expense & Unrecognized Compensation Cost | |||
Award vesting period | 4 years | ||
Stock Options [Member] | |||
Equity-Based Compensation Expense & Unrecognized Compensation Cost | |||
Equity-based compensation expense | 4 | 7 | |
Total unrecognized compensation cost | $19 | ||
Total unrecognized compensation cost, period for recognition | 1 year 7 months 9 days | ||
Award vesting period | 4 years | ||
Award expiration period | 10 years | ||
Performance Based Award [Member] | |||
Equity-Based Compensation Expense & Unrecognized Compensation Cost | |||
Number of unvested restricted stock units granted (in shares) | 0 | 143,000 | |
Weighted-average grant date fair value, restricted stock units granted (in US dollars per share) | $135.31 |
PENSION_COSTS_Details
PENSION COSTS (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Pension Costs Details [Abstract] | ||
Service cost | $57 | $43 |
Interest cost | 36 | 36 |
Expected return on plan assets | -57 | -58 |
Amounts amortized | 10 | -1 |
Net periodic benefit costs | $46 | $20 |
MERGERRELATED_AND_RESTRUCTURIN2
MERGER-RELATED AND RESTRUCTURING COSTS (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Merger Related And Restructuring Costs Details [Abstract] | |||
Merger-related and restructuring costs | $26 | $80 | |
Merger-Related Costs | |||
Merger-related costs | 24 | 63 | |
Accrued merger-related costs, balance at beginning of period | 82 | 6 | 6 |
Costs incurred | 13 | 143 | |
Adjustments | -1 | ||
Cash paid | -21 | -24 | -66 |
Accrued merger-related costs, balance at end of period | 74 | 82 | |
Remaining liability, current portion | 74 | ||
Equity-based compensation expense classified as merger-related costs | 11 | 9 | 56 |
Restructuring Costs | |||
Restructuring costs | 2 | 17 | |
Restructuring reserve, balance at beginning of period | 8 | 43 | 43 |
Costs incurred | 2 | 30 | |
Adjustments | -3 | ||
Cash paid | -5 | -34 | -62 |
Restructuring reserve, balance at end of period | 5 | 8 | |
Remaining liability, current portion | 4 | ||
Employee Termination Costs [Member] | |||
Restructuring Costs | |||
Restructuring reserve, balance at beginning of period | 8 | 39 | 39 |
Costs incurred | 2 | 14 | |
Adjustments | -3 | ||
Cash paid | -5 | -42 | |
Restructuring reserve, balance at end of period | 5 | 8 | |
Other Exit Costs [Member] | |||
Restructuring Costs | |||
Restructuring reserve, balance at beginning of period | 0 | 4 | 4 |
Costs incurred | 0 | 16 | |
Adjustments | 0 | ||
Cash paid | 0 | -20 | |
Restructuring reserve, balance at end of period | 0 | 0 | |
DukeNet [Member] | |||
Merger-Related Costs | |||
Merger-related costs | 1 | ||
Employee Costs [Member] | |||
Merger-Related Costs | |||
Accrued merger-related costs, balance at beginning of period | 65 | 3 | 3 |
Costs incurred | 3 | 68 | |
Adjustments | -1 | ||
Cash paid | -2 | -5 | |
Accrued merger-related costs, balance at end of period | 66 | 65 | |
Employee Costs [Member] | Comcast [Member] | |||
Merger-Related Costs | |||
Merger-related costs | 14 | 29 | |
Other Costs [Member] | |||
Merger-Related Costs | |||
Accrued merger-related costs, balance at beginning of period | 17 | 3 | 3 |
Costs incurred | 10 | 75 | |
Adjustments | 0 | ||
Cash paid | -19 | -61 | |
Accrued merger-related costs, balance at end of period | 8 | 17 | |
Other Costs [Member] | Comcast [Member] | |||
Merger-Related Costs | |||
Merger-related costs | $10 | $33 |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Information | ||
Revenue | $5,777 | $5,582 |
Operating costs and expenses | -3,781 | -3,602 |
Merger-related and restructuring costs | -26 | -80 |
OIBDA | 1,970 | 1,900 |
Depreciation | -852 | -775 |
Amortization | -34 | -33 |
Operating Income | 1,084 | 1,092 |
Shared Functions [Member] | ||
Segment Information | ||
Revenue | 0 | 0 |
Operating costs and expenses | -727 | -727 |
Merger-related and restructuring costs | -26 | -80 |
OIBDA | -753 | -807 |
Intersegment Eliminations [Member] | ||
Segment Information | ||
Revenue | -64 | -54 |
Operating costs and expenses | 64 | 54 |
Merger-related and restructuring costs | 0 | 0 |
OIBDA | 0 | 0 |
Residential Services Segment [Member] | ||
Segment Information | ||
Revenue | 4,662 | 4,568 |
Operating costs and expenses | -2,581 | -2,436 |
Merger-related and restructuring costs | 0 | 0 |
OIBDA | 2,081 | 2,132 |
Residential Services Segment [Member] | Video [Member] | ||
Segment Information | ||
Revenue | 2,469 | 2,495 |
Residential Services Segment [Member] | High Speed Data [Member] | ||
Segment Information | ||
Revenue | 1,696 | 1,558 |
Residential Services Segment [Member] | Voice [Member] | ||
Segment Information | ||
Revenue | 473 | 496 |
Residential Services Segment [Member] | Other Revenue [Member] | ||
Segment Information | ||
Revenue | 24 | 19 |
Residential Services Segment [Member] | Intersegment Eliminations [Member] | ||
Segment Information | ||
Revenue | 0 | 0 |
Business Services Segment [Member] | ||
Segment Information | ||
Revenue | 781 | 668 |
Operating costs and expenses | -302 | -266 |
Merger-related and restructuring costs | 0 | 0 |
OIBDA | 479 | 402 |
Business Services Segment [Member] | Video [Member] | ||
Segment Information | ||
Revenue | 94 | 89 |
Business Services Segment [Member] | High Speed Data [Member] | ||
Segment Information | ||
Revenue | 376 | 306 |
Business Services Segment [Member] | Voice [Member] | ||
Segment Information | ||
Revenue | 142 | 118 |
Business Services Segment [Member] | Wholesale Transport [Member] | ||
Segment Information | ||
Revenue | 121 | 101 |
Business Services Segment [Member] | Other Revenue [Member] | ||
Segment Information | ||
Revenue | 48 | 54 |
Business Services Segment [Member] | Intersegment Eliminations [Member] | ||
Segment Information | ||
Revenue | 0 | 0 |
Other Operations Segment [Member] | ||
Segment Information | ||
Revenue | 398 | 400 |
Operating costs and expenses | -235 | -227 |
Merger-related and restructuring costs | 0 | 0 |
OIBDA | 163 | 173 |
Other Operations Segment [Member] | Advertising [Member] | ||
Segment Information | ||
Revenue | 230 | 247 |
Other Operations Segment [Member] | Other Revenue [Member] | ||
Segment Information | ||
Revenue | 168 | 153 |
Other Operations Segment [Member] | Intersegment Eliminations [Member] | ||
Segment Information | ||
Revenue | ($64) | ($54) |
ADDITIONAL_FINANCIAL_INFORMATI2
ADDITIONAL FINANCIAL INFORMATION (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Additional Financial Information Details [Abstract] | |||
Prepaid income taxes | $41 | $157 | |
Other prepaid expenses | 349 | 208 | |
Other current assets | 26 | 26 | |
Total other current assets | 416 | 391 | |
Accrued interest | 448 | 486 | |
Accrued compensation and benefits | 370 | 397 | |
Accrued dividends | 216 | 0 | |
Accrued insurance | 198 | 199 | |
Accrued franchise fees | 119 | 151 | |
Accrued sales and other taxes | 113 | 132 | |
Other accrued expenses | 424 | 448 | |
Total other current liabilities | 1,888 | 1,813 | |
Related Party Transactions | |||
Related party revenue | 1 | 1 | |
Related party costs and expenses | -53 | -51 | |
Cash paid for interest | -408 | -439 | |
Cash received under interest rate swap contracts | 16 | 24 | |
Cash paid for interest, net | -392 | -415 | |
Cash paid for income taxes | -5 | -1 | |
Cash refunds of income taxes | 2 | 3 | |
Cash paid for income taxes, net | -3 | 2 | |
Programming and Content [Member] | |||
Related Party Transactions | |||
Related party costs and expenses | -48 | -45 | |
Other Operating [Member] | |||
Related Party Transactions | |||
Related party costs and expenses | ($5) | ($6) |
CONDENSED_CONSOLIDATING_FINANC1
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Condensed Consolidating Financial Statements | ||||
Cash and equivalents | $547 | $1,557 | ||
Receivables, net | 811 | 949 | ||
Receivables from affiliated parties | 0 | 0 | ||
Deferred income tax assets | 232 | 269 | ||
Other current assets | 416 | 391 | ||
Total current assets | 2,006 | 2,316 | ||
Investments in and amounts due from consolidated subsidiaries | 0 | 0 | ||
Investments | 67 | 64 | ||
Property, plant and equipment, net | 16,207 | 15,990 | ||
Intangible assets subject to amortization, net | 511 | 523 | ||
Intangible assets not subject to amortization | 26,012 | 26,012 | ||
Goodwill | 3,137 | 3,137 | ||
Other assets | 390 | 459 | ||
Total assets | 48,330 | 48,501 | ||
Accounts payable | 446 | 567 | ||
Deferred revenue and subscriber-related liabilities | 207 | 198 | ||
Payables to affiliated parties | 0 | 0 | ||
Accrued programming and content expense | 971 | 902 | ||
Current maturities of long-term debt | 647 | 1,017 | ||
Other current liabilities | 1,888 | 1,813 | ||
Total current liabilities | 4,159 | 4,497 | ||
Long-term debt | 22,639 | 22,701 | ||
Deferred income tax liabilities, net | 12,616 | 12,560 | ||
Long-term payables to affiliated parties | 0 | 0 | ||
Other liabilities | 772 | 726 | ||
Shareholders' equity due to (from) TWC and subsidiaries | 0 | 0 | ||
Other TWC shareholders' equity | 8,140 | 8,013 | ||
Total TWC shareholders' equity | 8,140 | 8,013 | ||
Noncontrolling interests | 4 | 4 | ||
Total equity | 8,144 | 7,098 | 8,017 | 6,947 |
Total liabilities and equity | 48,330 | 48,501 | ||
Revenue | 5,777 | 5,582 | ||
Programming and content | 1,419 | 1,309 | ||
Sales and marketing | 559 | 555 | ||
Technical operations | 399 | 371 | ||
Customer care | 226 | 205 | ||
Other operating | 1,178 | 1,162 | ||
Depreciation | 852 | 775 | ||
Amortization | 34 | 33 | ||
Merger-related and restructuring costs | 26 | 80 | ||
Total costs and expenses | 4,693 | 4,490 | ||
Operating Income | 1,084 | 1,092 | ||
Equity in pretax income of consolidated subsidiaries | 0 | 0 | ||
Interest expense | -348 | -364 | ||
Other income, net | 10 | 15 | ||
Income before income taxes | 746 | 743 | ||
Income tax provision | -288 | -264 | ||
Net income | 458 | 479 | ||
Less: Net income attributable to noncontrolling interests | 0 | 0 | ||
Net income attributable to TWC shareholders | 458 | 479 | ||
Net income | 458 | 479 | ||
Change in accumulated unrealized losses on pension benefit obligation, net of tax | 6 | -1 | ||
Change in accumulated deferred gains (losses) on cash flow hedges, net of tax | -18 | -45 | ||
Other comprehensive loss | -12 | -46 | ||
Comprehensive income | 446 | 433 | ||
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | ||
Comprehensive income attributable to TWC shareholders | 446 | 433 | ||
Cash provided (used) by operating activities | 1,508 | 1,397 | ||
Capital expenditures | -1,134 | -834 | ||
Acquisition of intangible assets | -23 | -12 | ||
Other investing activities | 3 | 27 | ||
Cash used by investing activities | -1,154 | -819 | ||
Short-term borrowings, net | 131 | 1,544 | ||
Repayments of long-term debt | -500 | -750 | ||
Dividends paid | -216 | -214 | ||
Repurchases of common stock | 0 | -259 | ||
Proceeds from exercise of stock options | 71 | 79 | ||
Excess tax benefit from equity-based compensation | 56 | 78 | ||
Taxes paid in cash in lieu of shares issued for equity-based compensation | -56 | -66 | ||
Net change in investments in and amounts due to and from consolidated subsidiaries | 0 | 0 | ||
Net collateral received on derivative financial instruments | 0 | 43 | ||
Other financing activities | 0 | -1 | ||
Cash provided (used) by financing activities | -514 | 454 | ||
Increase (decrease) in cash and equivalents | -160 | 1,032 | ||
Cash and equivalents at beginning of period | 707 | 525 | ||
Cash and equivalents at end of period | 547 | 1,557 | ||
Eliminations [Member] | ||||
Condensed Consolidating Financial Statements | ||||
Cash and equivalents | 0 | 0 | ||
Receivables, net | 0 | 0 | ||
Receivables from affiliated parties | -245 | -242 | ||
Deferred income tax assets | -3 | -4 | ||
Other current assets | 0 | 0 | ||
Total current assets | -248 | -246 | ||
Investments in and amounts due from consolidated subsidiaries | -100,038 | -98,832 | ||
Investments | 0 | 0 | ||
Property, plant and equipment, net | 0 | 0 | ||
Intangible assets subject to amortization, net | 0 | 0 | ||
Intangible assets not subject to amortization | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other assets | -5 | 0 | ||
Total assets | -100,291 | -99,078 | ||
Accounts payable | 0 | 0 | ||
Deferred revenue and subscriber-related liabilities | 0 | 0 | ||
Payables to affiliated parties | -245 | -242 | ||
Accrued programming and content expense | 0 | 0 | ||
Current maturities of long-term debt | 0 | 0 | ||
Other current liabilities | -3 | -4 | ||
Total current liabilities | -248 | -246 | ||
Long-term debt | 0 | 0 | ||
Deferred income tax liabilities, net | -5 | 0 | ||
Long-term payables to affiliated parties | -22,343 | -22,343 | ||
Other liabilities | 0 | 0 | ||
Shareholders' equity due to (from) TWC and subsidiaries | 0 | 0 | ||
Other TWC shareholders' equity | -77,695 | -76,489 | ||
Total TWC shareholders' equity | -77,695 | -76,489 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | -77,695 | -76,489 | ||
Total liabilities and equity | -100,291 | -99,078 | ||
Revenue | 0 | 0 | ||
Programming and content | 0 | 0 | ||
Sales and marketing | 0 | 0 | ||
Technical operations | 0 | 0 | ||
Customer care | 0 | 0 | ||
Other operating | 0 | 0 | ||
Depreciation | 0 | 0 | ||
Amortization | 0 | 0 | ||
Merger-related and restructuring costs | 0 | 0 | ||
Total costs and expenses | 0 | 0 | ||
Operating Income | 0 | 0 | ||
Equity in pretax income of consolidated subsidiaries | -1,938 | -1,976 | ||
Interest expense | 0 | 0 | ||
Other income, net | 0 | 0 | ||
Income before income taxes | -1,938 | -1,976 | ||
Income tax provision | 592 | 579 | ||
Net income | -1,346 | -1,397 | ||
Less: Net income attributable to noncontrolling interests | 0 | 0 | ||
Net income attributable to TWC shareholders | -1,346 | -1,397 | ||
Net income | -1,346 | -1,397 | ||
Change in accumulated unrealized losses on pension benefit obligation, net of tax | 0 | 0 | ||
Change in accumulated deferred gains (losses) on cash flow hedges, net of tax | 0 | 0 | ||
Other comprehensive loss | 0 | 0 | ||
Comprehensive income | -1,346 | -1,397 | ||
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | ||
Comprehensive income attributable to TWC shareholders | -1,346 | -1,397 | ||
Cash provided (used) by operating activities | 0 | 0 | ||
Capital expenditures | 0 | 0 | ||
Acquisition of intangible assets | 0 | 0 | ||
Other investing activities | 0 | 0 | ||
Cash used by investing activities | 0 | |||
Short-term borrowings, net | 0 | 0 | ||
Repayments of long-term debt | 0 | 0 | ||
Dividends paid | 0 | 0 | ||
Repurchases of common stock | 0 | |||
Proceeds from exercise of stock options | 0 | 0 | ||
Excess tax benefit from equity-based compensation | 0 | 0 | ||
Taxes paid in cash in lieu of shares issued for equity-based compensation | 0 | 0 | ||
Net change in investments in and amounts due to and from consolidated subsidiaries | 0 | 0 | ||
Net collateral received on derivative financial instruments | 0 | |||
Other financing activities | 0 | |||
Cash provided (used) by financing activities | 0 | 0 | ||
Increase (decrease) in cash and equivalents | 0 | 0 | ||
Cash and equivalents at beginning of period | 0 | 0 | ||
Cash and equivalents at end of period | 0 | 0 | ||
Parent Company [Member] | ||||
Condensed Consolidating Financial Statements | ||||
Cash and equivalents | 308 | 1,346 | ||
Receivables, net | 51 | 31 | ||
Receivables from affiliated parties | 218 | 215 | ||
Deferred income tax assets | 0 | 9 | ||
Other current assets | 11 | 121 | ||
Total current assets | 588 | 857 | ||
Investments in and amounts due from consolidated subsidiaries | 45,269 | 44,790 | ||
Investments | 0 | 0 | ||
Property, plant and equipment, net | 0 | 0 | ||
Intangible assets subject to amortization, net | 0 | 0 | ||
Intangible assets not subject to amortization | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other assets | 328 | 385 | ||
Total assets | 46,185 | 46,032 | ||
Accounts payable | 0 | 0 | ||
Deferred revenue and subscriber-related liabilities | 0 | 0 | ||
Payables to affiliated parties | 27 | 27 | ||
Accrued programming and content expense | 0 | 0 | ||
Current maturities of long-term debt | 638 | 1,008 | ||
Other current liabilities | 745 | 529 | ||
Total current liabilities | 1,410 | 1,564 | ||
Long-term debt | 20,505 | 20,564 | ||
Deferred income tax liabilities, net | 0 | 23 | ||
Long-term payables to affiliated parties | 7,641 | 7,641 | ||
Other liabilities | 220 | 154 | ||
Shareholders' equity due to (from) TWC and subsidiaries | 8,269 | 8,073 | ||
Other TWC shareholders' equity | 8,140 | 8,013 | ||
Total TWC shareholders' equity | 16,409 | 16,086 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 16,409 | 16,086 | ||
Total liabilities and equity | 46,185 | 46,032 | ||
Revenue | 0 | 0 | ||
Programming and content | 0 | 0 | ||
Sales and marketing | 0 | 0 | ||
Technical operations | 0 | 0 | ||
Customer care | 0 | 0 | ||
Other operating | 0 | 0 | ||
Depreciation | 0 | 0 | ||
Amortization | 0 | 0 | ||
Merger-related and restructuring costs | 4 | 33 | ||
Total costs and expenses | 4 | 33 | ||
Operating Income | -4 | -33 | ||
Equity in pretax income of consolidated subsidiaries | 807 | 824 | ||
Interest expense | -57 | -48 | ||
Other income, net | 0 | 0 | ||
Income before income taxes | 746 | 743 | ||
Income tax provision | -288 | -264 | ||
Net income | 458 | 479 | ||
Less: Net income attributable to noncontrolling interests | 0 | 0 | ||
Net income attributable to TWC shareholders | 458 | 479 | ||
Net income | 458 | 479 | ||
Change in accumulated unrealized losses on pension benefit obligation, net of tax | 6 | -1 | ||
Change in accumulated deferred gains (losses) on cash flow hedges, net of tax | -18 | -45 | ||
Other comprehensive loss | -12 | -46 | ||
Comprehensive income | 446 | 433 | ||
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | ||
Comprehensive income attributable to TWC shareholders | 446 | 433 | ||
Cash provided (used) by operating activities | 90 | 73 | ||
Capital expenditures | 0 | 0 | ||
Acquisition of intangible assets | 0 | 0 | ||
Other investing activities | 0 | 18 | ||
Cash used by investing activities | 0 | 18 | ||
Short-term borrowings, net | 131 | 1,544 | ||
Repayments of long-term debt | -500 | -750 | ||
Dividends paid | -216 | -214 | ||
Repurchases of common stock | -259 | |||
Proceeds from exercise of stock options | 71 | 79 | ||
Excess tax benefit from equity-based compensation | 56 | 78 | ||
Taxes paid in cash in lieu of shares issued for equity-based compensation | 0 | 0 | ||
Net change in investments in and amounts due to and from consolidated subsidiaries | 195 | 419 | ||
Net collateral received on derivative financial instruments | 43 | |||
Other financing activities | -1 | |||
Cash provided (used) by financing activities | -263 | 939 | ||
Increase (decrease) in cash and equivalents | -173 | 1,030 | ||
Cash and equivalents at beginning of period | 481 | 316 | ||
Cash and equivalents at end of period | 308 | 1,346 | ||
Guarantor Subsidiary [Member] | ||||
Condensed Consolidating Financial Statements | ||||
Cash and equivalents | 0 | 0 | ||
Receivables, net | 0 | 0 | ||
Receivables from affiliated parties | 0 | 0 | ||
Deferred income tax assets | 0 | 0 | ||
Other current assets | 44 | 46 | ||
Total current assets | 44 | 46 | ||
Investments in and amounts due from consolidated subsidiaries | 47,128 | 46,401 | ||
Investments | 55 | 51 | ||
Property, plant and equipment, net | 27 | 28 | ||
Intangible assets subject to amortization, net | 19 | 5 | ||
Intangible assets not subject to amortization | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets | 47,273 | 46,531 | ||
Accounts payable | 0 | 0 | ||
Deferred revenue and subscriber-related liabilities | 0 | 0 | ||
Payables to affiliated parties | 213 | 212 | ||
Accrued programming and content expense | 0 | 0 | ||
Current maturities of long-term debt | 0 | 0 | ||
Other current liabilities | 24 | 67 | ||
Total current liabilities | 237 | 279 | ||
Long-term debt | 2,059 | 2,061 | ||
Deferred income tax liabilities, net | 222 | 214 | ||
Long-term payables to affiliated parties | 14,702 | 14,702 | ||
Other liabilities | 93 | 91 | ||
Shareholders' equity due to (from) TWC and subsidiaries | 1,528 | 1,216 | ||
Other TWC shareholders' equity | 28,432 | 27,968 | ||
Total TWC shareholders' equity | 29,960 | 29,184 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 29,960 | 29,184 | ||
Total liabilities and equity | 47,273 | 46,531 | ||
Revenue | 0 | 0 | ||
Programming and content | 0 | 0 | ||
Sales and marketing | 0 | 0 | ||
Technical operations | 0 | 0 | ||
Customer care | 0 | 0 | ||
Other operating | 0 | 0 | ||
Depreciation | 0 | 0 | ||
Amortization | 0 | 0 | ||
Merger-related and restructuring costs | 0 | 0 | ||
Total costs and expenses | 0 | 0 | ||
Operating Income | 0 | 0 | ||
Equity in pretax income of consolidated subsidiaries | 1,131 | 1,152 | ||
Interest expense | -350 | -366 | ||
Other income, net | 1 | 5 | ||
Income before income taxes | 782 | 791 | ||
Income tax provision | -303 | -284 | ||
Net income | 479 | 507 | ||
Less: Net income attributable to noncontrolling interests | 0 | 0 | ||
Net income attributable to TWC shareholders | 479 | 507 | ||
Net income | 479 | 507 | ||
Change in accumulated unrealized losses on pension benefit obligation, net of tax | 0 | 0 | ||
Change in accumulated deferred gains (losses) on cash flow hedges, net of tax | 0 | 0 | ||
Other comprehensive loss | 0 | 0 | ||
Comprehensive income | 479 | 507 | ||
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | ||
Comprehensive income attributable to TWC shareholders | 479 | 507 | ||
Cash provided (used) by operating activities | -407 | -362 | ||
Capital expenditures | 0 | 0 | ||
Acquisition of intangible assets | -14 | 0 | ||
Other investing activities | -3 | -2 | ||
Cash used by investing activities | -17 | -2 | ||
Short-term borrowings, net | 0 | 0 | ||
Repayments of long-term debt | 0 | 0 | ||
Dividends paid | 0 | 0 | ||
Repurchases of common stock | 0 | |||
Proceeds from exercise of stock options | 0 | 0 | ||
Excess tax benefit from equity-based compensation | 0 | 0 | ||
Taxes paid in cash in lieu of shares issued for equity-based compensation | 0 | 0 | ||
Net change in investments in and amounts due to and from consolidated subsidiaries | 424 | 364 | ||
Net collateral received on derivative financial instruments | 0 | |||
Other financing activities | 0 | |||
Cash provided (used) by financing activities | 424 | 364 | ||
Increase (decrease) in cash and equivalents | 0 | 0 | ||
Cash and equivalents at beginning of period | 0 | 0 | ||
Cash and equivalents at end of period | 0 | 0 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Condensed Consolidating Financial Statements | ||||
Cash and equivalents | 239 | 211 | ||
Receivables, net | 760 | 918 | ||
Receivables from affiliated parties | 27 | 27 | ||
Deferred income tax assets | 235 | 264 | ||
Other current assets | 361 | 224 | ||
Total current assets | 1,622 | 1,659 | ||
Investments in and amounts due from consolidated subsidiaries | 7,641 | 7,641 | ||
Investments | 12 | 13 | ||
Property, plant and equipment, net | 16,180 | 15,962 | ||
Intangible assets subject to amortization, net | 492 | 518 | ||
Intangible assets not subject to amortization | 26,012 | 26,012 | ||
Goodwill | 3,137 | 3,137 | ||
Other assets | 67 | 74 | ||
Total assets | 55,163 | 55,016 | ||
Accounts payable | 446 | 567 | ||
Deferred revenue and subscriber-related liabilities | 207 | 198 | ||
Payables to affiliated parties | 5 | 3 | ||
Accrued programming and content expense | 971 | 902 | ||
Current maturities of long-term debt | 9 | 9 | ||
Other current liabilities | 1,122 | 1,221 | ||
Total current liabilities | 2,760 | 2,900 | ||
Long-term debt | 75 | 76 | ||
Deferred income tax liabilities, net | 12,399 | 12,323 | ||
Long-term payables to affiliated parties | 0 | 0 | ||
Other liabilities | 459 | 481 | ||
Shareholders' equity due to (from) TWC and subsidiaries | -9,797 | -9,289 | ||
Other TWC shareholders' equity | 49,263 | 48,521 | ||
Total TWC shareholders' equity | 39,466 | 39,232 | ||
Noncontrolling interests | 4 | 4 | ||
Total equity | 39,470 | 39,236 | ||
Total liabilities and equity | 55,163 | 55,016 | ||
Revenue | 5,777 | 5,582 | ||
Programming and content | 1,419 | 1,309 | ||
Sales and marketing | 559 | 555 | ||
Technical operations | 399 | 371 | ||
Customer care | 226 | 205 | ||
Other operating | 1,178 | 1,162 | ||
Depreciation | 852 | 775 | ||
Amortization | 34 | 33 | ||
Merger-related and restructuring costs | 22 | 47 | ||
Total costs and expenses | 4,689 | 4,457 | ||
Operating Income | 1,088 | 1,125 | ||
Equity in pretax income of consolidated subsidiaries | 0 | 0 | ||
Interest expense | 59 | 50 | ||
Other income, net | 9 | 10 | ||
Income before income taxes | 1,156 | 1,185 | ||
Income tax provision | -289 | -295 | ||
Net income | 867 | 890 | ||
Less: Net income attributable to noncontrolling interests | 0 | 0 | ||
Net income attributable to TWC shareholders | 867 | 890 | ||
Net income | 867 | 890 | ||
Change in accumulated unrealized losses on pension benefit obligation, net of tax | 0 | 0 | ||
Change in accumulated deferred gains (losses) on cash flow hedges, net of tax | 0 | 0 | ||
Other comprehensive loss | 0 | 0 | ||
Comprehensive income | 867 | 890 | ||
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | ||
Comprehensive income attributable to TWC shareholders | 867 | 890 | ||
Cash provided (used) by operating activities | 1,825 | 1,686 | ||
Capital expenditures | -1,134 | -834 | ||
Acquisition of intangible assets | -9 | -12 | ||
Other investing activities | 6 | 11 | ||
Cash used by investing activities | -1,137 | -835 | ||
Short-term borrowings, net | 0 | 0 | ||
Repayments of long-term debt | 0 | 0 | ||
Dividends paid | 0 | 0 | ||
Repurchases of common stock | 0 | |||
Proceeds from exercise of stock options | 0 | 0 | ||
Excess tax benefit from equity-based compensation | 0 | 0 | ||
Taxes paid in cash in lieu of shares issued for equity-based compensation | -56 | -66 | ||
Net change in investments in and amounts due to and from consolidated subsidiaries | -619 | -783 | ||
Net collateral received on derivative financial instruments | 0 | |||
Other financing activities | 0 | |||
Cash provided (used) by financing activities | -675 | -849 | ||
Increase (decrease) in cash and equivalents | 13 | 2 | ||
Cash and equivalents at beginning of period | 226 | 209 | ||
Cash and equivalents at end of period | $239 | $211 |