Stock Analysis on Net
Stock Analysis on Net

Time Warner Cable Inc. (NYSE:TWC)

This company has been moved to the archive! The financial data has not been updated since April 28, 2016.

Analysis of Property, Plant and Equipment

Microsoft Excel

Property, Plant and Equipment Disclosure

Time Warner Cable Inc., balance sheet: property, plant and equipment

US$ in millions

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Land 174 173 173 170 158
Buildings and improvements 1,919 1,865 1,678 1,608 1,399
Distribution systems 27,126 24,951 23,119 21,141 19,470
Converters and modems 6,743 6,141 5,687 5,806 5,591
Capitalized software costs 2,924 2,572 2,252 1,895 1,643
Vehicles and other equipment 2,466 2,374 2,286 2,214 2,191
Construction in progress 424 476 424 438 468
Property, plant and equipment, gross 41,776 38,552 35,619 33,272 30,920
Accumulated depreciation (24,831) (22,562) (20,563) (18,530) (17,015)
Property, plant and equipment, net 16,945 15,990 15,056 14,742 13,905

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

Item Description The company
Property, plant and equipment, gross Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Time Warner Cable Inc. property, plant and equipment, gross increased from 2013 to 2014 and from 2014 to 2015.
Property, plant and equipment, net Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Time Warner Cable Inc. property, plant and equipment, net increased from 2013 to 2014 and from 2014 to 2015.

Asset Age Ratios (Summary)

Time Warner Cable Inc., asset age ratios

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Average age ratio 59.69% 58.79% 58.01% 55.98% 55.31%
Estimated total useful life (years) 12 12 11 10 10
Estimated age, time elapsed since purchase (years) 7 7 7 6 6
Estimated remaining life (years) 5 5 5 5 5

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

Asset age ratio Description The company
Average age ratio As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. Time Warner Cable Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2013 to 2014 and from 2014 to 2015.
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. Time Warner Cable Inc. estimated total useful life of depreciable property, plant and equipment increased from 2013 to 2014 but then slightly decreased from 2014 to 2015.
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. Time Warner Cable Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2013 to 2014 and from 2014 to 2015.
Estimated remaining life Time Warner Cable Inc. estimated remaining life of depreciable property, plant and equipment increased from 2013 to 2014 but then decreased significantly from 2014 to 2015.

Average Age

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Accumulated depreciation 24,831 22,562 20,563 18,530 17,015
Property, plant and equipment, gross 41,776 38,552 35,619 33,272 30,920
Land 174 173 173 170 158
Asset Age Ratio
Average age1 59.69% 58.79% 58.01% 55.98% 55.31%

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

2015 Calculations

1 Average age = 100 × Accumulated depreciation ÷ (Property, plant and equipment, gross – Land)
= 100 × 24,831 ÷ (41,776 – 174) = 59.69%

Asset age ratio Description The company
Average age As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. Time Warner Cable Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2013 to 2014 and from 2014 to 2015.

Estimated Total Useful Life

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Property, plant and equipment, gross 41,776 38,552 35,619 33,272 30,920
Land 174 173 173 170 158
Depreciation expense 3,560 3,236 3,155 3,154 2,994
Asset Age Ratio (Years)
Estimated total useful life1 12 12 11 10 10

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

2015 Calculations

1 Estimated total useful life = (Property, plant and equipment, gross – Land) ÷ Depreciation expense
= (41,776 – 174) ÷ 3,560 = 12

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. Time Warner Cable Inc. estimated total useful life of depreciable property, plant and equipment increased from 2013 to 2014 but then slightly decreased from 2014 to 2015.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Accumulated depreciation 24,831 22,562 20,563 18,530 17,015
Depreciation expense 3,560 3,236 3,155 3,154 2,994
Asset Age Ratio (Years)
Time elapsed since purchase1 7 7 7 6 6

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

2015 Calculations

1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 24,831 ÷ 3,560 = 7

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. Time Warner Cable Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2013 to 2014 and from 2014 to 2015.

Estimated Remaining Life

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Property, plant and equipment, net 16,945 15,990 15,056 14,742 13,905
Land 174 173 173 170 158
Depreciation expense 3,560 3,236 3,155 3,154 2,994
Asset Age Ratio (Years)
Estimated remaining life1 5 5 5 5 5

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

2015 Calculations

1 Estimated remaining life = (Property, plant and equipment, net – Land) ÷ Depreciation expense
= (16,945 – 174) ÷ 3,560 = 5

Asset age ratio Description The company
Estimated remaining life Time Warner Cable Inc. estimated remaining life of depreciable property, plant and equipment increased from 2013 to 2014 but then decreased significantly from 2014 to 2015.