Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Time Warner Cable Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
Accounts payable	656)	567)	565)	653)	545)
Deferred revenue and subscriber-related liabilities	224)	198)	188)	183)	169)
Accrued programming and content expense	985)	902)	869)	872)	807)
Current maturities of long-term debt	5)	1,017)	1,767)	1,518)	2,122)
Mandatorily redeemable preferred equity issued by a subsidiary	—)	—)	—)	300)	—)
Accrued interest	481)	486)	529)	586)	585)
Accrued compensation and benefits	443)	397)	394)	384)	360)
Accrued insurance	225)	199)	185)	169)	158)
Accrued dividends	216)	—)	—)	—)	—)
Accrued sales and other taxes	150)	132)	132)	99)	84)
Accrued franchise fees	145)	151)	155)	168)	164)
Other accrued expenses	419)	448)	442)	393)	376)
Other current liabilities	2,079)	1,813)	1,837)	1,799)	1,727)
Current liabilities	3,949)	4,497)	5,226)	5,325)	5,370)
Long-term debt, excluding current maturities	22,497)	22,701)	23,285)	25,171)	24,320)
Mandatorily redeemable preferred equity issued by a subsidiary	—)	—)	—)	—)	300)
Deferred income tax liabilities, net	12,830)	12,560)	12,098)	11,280)	10,198)
Other liabilities	1,002)	726)	717)	750)	551)
Noncurrent liabilities	36,329)	35,987)	36,100)	37,201)	35,369)
Total liabilities	40,278)	40,484)	41,326)	42,526)	40,739)
Common stock, $0.01 par value	3)	3)	3)	3)	3)
Additional paid-in capital	7,481)	7,172)	6,951)	7,576)	8,018)
Retained earnings (accumulated deficit)	1,925)	1,162)	(55)	363)	68)
Accumulated other comprehensive income (loss), net	(414)	(324)	44)	(663)	(559)
Total TWC shareholders’ equity	8,995)	8,013)	6,943)	7,279)	7,530)
Noncontrolling interests	4)	4)	4)	4)	7)
Total equity	8,999)	8,017)	6,947)	7,283)	7,537)
Total liabilities and equity	49,277)	48,501)	48,273)	49,809)	48,276)

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).

Current Liabilities: Current liabilities showed a decreasing trend over the five-year period, declining from $5,370 million in 2011 to $3,949 million in 2015. This decline was largely driven by a steep reduction in current maturities of long-term debt, which dropped sharply from $2,122 million in 2011 to just $5 million in 2015. Accounts payable experienced volatility, initially increasing between 2011 and 2012, then decreasing and rising again in 2015. Deferred revenue, subscriber-related liabilities, and accrued programming and content expenses steadily increased over the period, indicating growing obligations related to service delivery and content acquisition.
Accrued and Other Current Expenses: Accrued compensation and benefits, insurance, sales and other taxes, and accrued interest displayed mixed dynamics. Accrued compensation and benefits and insurance expenses demonstrated a consistent increase, suggesting growing employee-related obligations and insurance costs, respectively. Accrued interest gradually declined from $585 million in 2011 to $481 million in 2015, which may reflect changes in debt structure or interest rates. Other accrued expenses increased up to 2014, then slightly decreased in 2015, while accrued franchise fees showed a gradual decline. Other current liabilities rose overall, reaching $2,079 million in 2015, indicating increased miscellaneous obligations.
Long-term Liabilities: Long-term debt, excluding current maturities, decreased modestly from $24,320 million in 2011 to $22,497 million in 2015. Deferred income tax liabilities showed a consistent upward trend, increasing from $10,198 million to $12,830 million, pointing to growing deferred tax obligations. Other liabilities also increased substantially from $551 million in 2011 to $1,002 million in 2015, which could reflect additional long-term contingent liabilities or accruals. Overall, noncurrent liabilities slightly declined by about 3% over the period, from $35,369 million in 2011 to $36,329 million in 2015, implying a relatively stable long-term obligation profile.
Total Liabilities: Total liabilities peaked in 2012 at $42,526 million but decreased thereafter to $40,278 million by 2015, showing an overall reduction. This reduction is primarily attributed to decreases in current liabilities and stable long-term liabilities during the period.
Shareholders’ Equity: Shareholders’ equity experienced fluctuations, decreasing slightly until 2013 and then rising steadily thereafter. Retained earnings displayed significant volatility, with a notable deficit of $55 million in 2013 turning into a substantial positive balance of $1,925 million by 2015, indicating improved profitability or retained operational income. Additional paid-in capital decreased between 2011 and 2013 but recovered partially by 2015. Accumulated other comprehensive income showed volatility with negative balances, indicating fluctuating unrealized losses or other comprehensive income components. Total shareholders’ equity increased from $7,530 million in 2011 to $8,995 million in 2015, demonstrating an overall strengthening of the equity base.
Total Liabilities and Equity: Total liabilities and equity increased marginally from $48,276 million in 2011 to $49,277 million in 2015, reflecting overall balance sheet growth. This minor increase, combined with the reduction in liabilities and increase in equity, suggests a favorable shift in the company’s capital structure over the period.

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Time Warner Cable Inc. (NYSE:TWC)

Balance Sheet: Liabilities and Stockholders’ Equity