Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Time Warner Cable Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
Net income	1,844)	2,031)	1,954)	2,159)	1,667)
Depreciation	3,560)	3,236)	3,155)	3,154)	2,994)
Amortization	136)	135)	126)	110)	33)
Pretax gain on settlement of Verizon Wireless agency agreement	(120)	—)	—)	—)	—)
Asset impairments	—)	—)	—)	—)	60)
(Income) loss from equity-method investments, net of cash distributions	—)	(13)	—)	(426)	109)
Pretax gain on sale of investment in Clearwire Corporation	—)	—)	—)	(64)	—)
Deferred income taxes	593)	756)	363)	562)	638)
Equity-based compensation expense	161)	182)	128)	130)	112)
Excess tax benefit from equity-based compensation	(92)	(141)	(93)	(81)	(48)
Adjustments for noncash and nonoperating items	4,238)	4,155)	3,679)	3,385)	3,898)
Receivables	53)	11)	(23)	(63)	(25)
Accounts payable and other liabilities	360)	82)	157)	(26)	202)
Other changes	44)	71)	(14)	70)	(54)
Changes in operating assets and liabilities, net of acquisitions and dispositions	457)	164)	120)	(19)	123)
Cash provided by operating activities	6,539)	6,350)	5,753)	5,525)	5,688)
Capital expenditures	(4,446)	(4,097)	(3,198)	(3,095)	(2,937)
Business acquisitions, net of cash acquired	—)	—)	(423)	(1,340)	(561)
Purchases of investments	(4)	(2)	(588)	(207)	(24)
Return of capital from investees	—)	—)	9)	1,200)	3)
Proceeds from sale, maturity and collection of investments	3)	19)	726)	104)	5)
Acquisition of intangible assets	(51)	(39)	(40)	(37)	(47)
Other investing activities	153)	27)	38)	30)	31)
Cash used by investing activities	(4,345)	(4,092)	(3,476)	(3,345)	(3,530)
Short-term borrowings (repayments), net	(507)	507)	—)	—)	—)
Proceeds from issuance of long-term debt	—)	—)	—)	2,258)	3,227)
Repayments of long-term debt	(500)	(1,750)	(1,500)	(2,100)	—)
Repayments of long-term debt assumed in acquisitions	—)	—)	(138)	(1,730)	(44)
Debt issuance costs	—)	—)	—)	(26)	(25)
Redemption of mandatorily redeemable preferred equity	—)	—)	(300)	—)	—)
Dividends paid	(865)	(857)	(758)	(700)	(642)
Repurchases of common stock	—)	(259)	(2,509)	(1,850)	(2,657)
Proceeds from exercise of stock options	129)	226)	138)	140)	114)
Excess tax benefit from equity-based compensation	92)	141)	93)	81)	48)
Taxes paid in cash in lieu of shares issued for equity-based compensation	(72)	(76)	(68)	(45)	(29)
Acquisition of noncontrolling interest	—)	—)	—)	(32)	—)
Other financing activities	(8)	(8)	(14)	(49)	(20)
Cash used by financing activities	(1,731)	(2,076)	(5,056)	(4,053)	(28)
Increase (decrease) in cash and equivalents	463)	182)	(2,779)	(1,873)	2,130)
Cash and equivalents at beginning of year	707)	525)	3,304)	5,177)	3,047)
Cash and equivalents at end of year	1,170)	707)	525)	3,304)	5,177)

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).

Net income: Net income increased from 1667 million USD in 2011 to 2159 million USD in 2012, followed by a moderate decline to 1844 million USD in 2015. This indicates some fluctuations but generally a positive profitability performance over the period.
Depreciation and Amortization: Depreciation steadily rose from 2994 million USD in 2011 to 3560 million USD in 2015, reflecting ongoing asset usage and investments in fixed assets. Amortization showed an upward trend, increasing from 33 million USD in 2011 to 136 million USD in 2015, suggesting growing intangible asset amortization.
Unusual and Nonrecurring Items: There were notable nonrecurring items such as a pretax gain on settlement of Verizon Wireless agency agreement of -120 million USD in 2015, asset impairments of 60 million USD in 2011, and a pretax gain on sale of an investment in Clearwire Corporation in 2012 at -64 million USD. Income from equity-method investments was negative or missing after 2011, indicating possible reduced contributions or losses from associated companies.
Deferred Income Taxes and Equity-based Compensation: Deferred income taxes fluctuated over the years without a clear trend, decreasing from 638 million USD in 2011 to 363 million USD in 2013, then rising again in 2014. Equity-based compensation expense increased from 112 million USD in 2011 to peak at 182 million USD in 2014 before slightly declining in 2015. The related excess tax benefits mirrored this trend inversely.
Operating Cash Flow and Changes in Working Capital: Cash provided by operating activities remained strong and showed an increasing trend from 5688 million USD in 2011 to 6539 million USD in 2015. Changes in operating assets and liabilities were mostly positive in later years, suggesting effective working capital management contributing to cash flow improvements.
Capital Expenditures and Investing Activities: Capital expenditures increased steadily from 2937 million USD in 2011 to 4446 million USD in 2015, reflecting continued investment in infrastructure or assets. Cash used by investing activities also increased correspondingly, indicating ongoing capital deployment. Business acquisitions peaked in 2012 at -1340 million USD but ceased afterward. Proceeds from sale or maturity of investments were high in 2013 but lower in other years.
Financing Activities: There was significant repayment of long-term debt across the years, with the highest amounts in 2012 and 2014. Proceeds from issuance of long-term debt were notable in 2011 and 2012 but not recorded afterward. Dividends paid steadily increased from 642 million USD in 2011 to 865 million USD in 2015. Repurchases of common stock occurred predominantly in the initial years but sharply declined by 2015. Overall cash used by financing activities declined after peaking in 2013, indicating reduced net cash outflows for financing.
Cash and Cash Equivalents: Cash and equivalents fluctuated considerably, with a significant increase in 2011 by 2130 million USD, followed by decreases in 2012 and 2013. The ending cash balance was lowest in 2013 at 525 million USD but recovered to 1170 million USD in 2015, reflecting net positive cash flow management.

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Time Warner Cable Inc. (NYSE:TWC)

Cash Flow Statement