Name: Time Warner Cable Inc. (NYSE:TWC) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Time Warner Cable Inc., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
Revenue	23,697)	22,812)	22,120)	21,386)	19,675)
Programming and content	(5,815)	(5,294)	(4,950)	(4,703)	(9,138)
Gross profit	17,882)	17,518)	17,170)	16,683)	10,537)
Sales and marketing	(2,379)	(2,192)	(2,048)	(1,816)	—)
Technical operations	(1,669)	(1,530)	(1,500)	(1,434)	—)
Customer care	(900)	(839)	(766)	(741)	—)
Other operating	(4,796)	(4,729)	(4,876)	(4,868)	(3,311)
Depreciation	(3,560)	(3,236)	(3,155)	(3,154)	(2,994)
Amortization	(136)	(135)	(126)	(110)	(33)
Merger-related and restructuring costs	(203)	(225)	(119)	(115)	(70)
Asset impairments	—)	—)	—)	—)	(60)
Operating income	4,239)	4,632)	4,580)	4,445)	4,069)
Interest expense	(1,402)	(1,419)	(1,555)	(1,614)	(1,524)
Interest income	1)	—)	3)	8)	6)
Interest expense, net	(1,401)	(1,419)	(1,552)	(1,606)	(1,518)
Income from equity-method investments, net	28)	33)	19)	454)	(88)
Gain on settlement of Verizon Wireless agency agreement	120)	—)	—)	—)	—)
Gain on sale of investment in Clearwire	—)	—)	—)	64)	—)
Other investment losses	—)	—)	—)	(12)	—)
Other	2)	2)	(8)	(9)	(1)
Other income, net	150)	35)	11)	497)	(89)
Income before income taxes	2,988)	3,248)	3,039)	3,336)	2,462)
Income tax provision	(1,144)	(1,217)	(1,085)	(1,177)	(795)
Net income	1,844)	2,031)	1,954)	2,159)	1,667)
Net income attributable to noncontrolling interests	—)	—)	—)	(4)	(2)
Net income attributable to TWC shareholders	1,844)	2,031)	1,954)	2,155)	1,665)

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).

Revenue demonstrated a consistent upward trajectory over the five-year period, increasing from US$ 19,675 million in 2011 to US$ 23,697 million in 2015. This steady growth indicates a sustained expansion of the top line. Gross profit saw a significant surge between 2011 and 2012, rising from US$ 10,537 million to US$ 16,683 million, which coincided with a substantial reduction in programming and content costs. From 2012 onward, gross profit growth moderated, reaching US$ 17,882 million by the end of 2015.

Operating Expense Trends: A consistent increase is observed across several key operational cost centers. Sales and marketing expenses rose from US$ 1,816 million in 2012 to US$ 2,379 million in 2015. Similarly, technical operations grew from US$ 1,434 million to US$ 1,669 million, and customer care expenses increased from US$ 741 million to US$ 900 million over the same period. Depreciation expenses also followed an upward trend, moving from US$ 2,994 million in 2011 to US$ 3,560 million in 2015, suggesting ongoing capital investment in infrastructure.
Operating Income and Margin Analysis: Operating income grew steadily from 2011 to 2014, peaking at US$ 4,632 million. However, a reversal occurred in 2015, where operating income declined to US$ 4,239 million. This decrease in 2015 occurred despite the increase in total revenue, indicating that the rise in operating expenses and depreciation began to outpace revenue growth, thereby compressing operating margins.
Financial Costs and Other Income: Net interest expenses remained relatively stable, with a slight downward trend from US$ 1,518 million in 2011 to US$ 1,401 million in 2015. Other income, net, exhibited significant volatility, peaking in 2012 at US$ 497 million and ending at US$ 150 million in 2015, influenced by one-time events such as the US$ 120 million gain on the settlement of the Verizon Wireless agency agreement in 2015 and a US$ 64 million gain on the sale of an investment in Clearwire in 2012.
Net Income Performance: Net income attributable to shareholders peaked in 2012 at US$ 2,155 million. Following this peak, net income experienced a period of fluctuation, ending at US$ 1,844 million in 2015. This overall decline from the 2012 peak, despite growing revenues, is primarily attributable to the escalation in operating costs and the stabilization of other income streams.

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