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

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.

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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).

The financial profile over the five-year period from 2011 to 2015 is characterized by strong, growing operational cash generation offset by intensifying capital investment and a strategic shift in shareholder return mechanisms.

Operating Cash Flow Trends: Cash provided by operating activities demonstrates a consistent upward trend, increasing from 5,688 million USD in 2011 to 6,539 million USD in 2015. This growth is supported by stable net income, which remained largely within the 1.8 billion to 2.1 billion USD range, and a steady rise in non-cash charges. Specifically, depreciation increased from 2,994 million USD to 3,560 million USD over the period, contributing significantly to the cash flow available from operations.
Investment and Capital Expenditure Analysis: There is a clear escalation in capital expenditures, which rose from 2,937 million USD in 2011 to 4,446 million USD in 2015. This represents a substantial increase in the reinvestment of capital into the business infrastructure. While business acquisitions were a significant cash drain between 2011 and 2013, peaking at 1,340 million USD in 2012, these activities ceased entirely in 2014 and 2015, shifting the investing focus almost exclusively toward internal capital expenditures.
Financing and Capital Allocation Strategy: The financing strategy underwent a notable transition. Early in the period, the company utilized significant debt issuance (3,227 million USD in 2011) and aggressive common stock repurchases, which peaked at 2,657 million USD in 2011 and 2,509 million USD in 2013. However, by 2014 and 2015, stock repurchases declined sharply and eventually ceased. Concurrently, dividends paid to shareholders grew steadily each year, rising from 642 million USD in 2011 to 865 million USD in 2015, indicating a shift toward more predictable forms of shareholder returns.
Debt Management and Liquidity: Debt obligations were managed through a cycle of issuance followed by systematic repayment. After the initial issuance of long-term debt in 2011 and 2012, the company maintained a consistent pattern of repayments, including 1,750 million USD in 2014 and 500 million USD in 2015. This disciplined repayment, combined with the cessation of share buybacks, contributed to a recovery in the cash position. After reaching a low of 525 million USD at the end of 2013, cash and equivalents increased to 1,170 million USD by the end of 2015.

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