Reconciliation of 2006 Operating Income to
Operating Cash Flow
| (in millions) | |
|---|---|
| Operating Income | $ 4,619 |
| Depreciation and Amortization | 4,823 |
| Operating Cash Flow(a) | $ 9,442 |
(a) Operating Cash Flow (as presented above) is defined as operating income before depreciation and amortization, excluding impairment charges related to fixed and intangible assets and gains or losses on sale of assets, if any.
Calculation of 2006 Free Cash Flow
| (in millions) | |
|---|---|
| Net Cash Provided by Operating Activities | $ 6,618 |
| Capital Expenditures | (4,395) |
| Cash Paid For Intangible Assets | (306) |
| Nonoperating Items, Net of Tax | 706 |
| Free Cash Flow(a) | $ 2,623 |
(a) Free Cash Flow (as presented above) is defined as "Net Cash Provided by Operating Activities" (as stated in our Consolidated Statement of Cash Flows) reduced by capital expenditures and cash paid for intangible assets; and increased by any payments related to certain nonoperating items, net of estimated tax benefits (such as income taxes on investment sales, and nonrecurring payments related to income tax and litigation contingencies of acquired companies).
Reconciliation of Cable Segment Pro Forma, "As Adjusted" Financial Data
| (in millions) | Cable | Pro Forma Adjustments(a) |
Cable Pro Forma |
Pro Forma % Growth |
% Growth |
|---|---|---|---|---|---|
| 2006 | |||||
| Revenue | $ 24,100 | $ 2,239 | $ 26,339 | 12% | 21% |
| Operating Expenses (excluding depreciation and amortization) | 14,396 | 1,432 | 15,828 | ||
| Operating Cash Flow | $ 9,704 | $ 807 | $ 10,511 | 15% | 22% |
| Depreciation and Amortization | 4,657 | 608 | 5,265 | ||
| Operating Income | $ 5,047 | $ 199 | $ 5,246 | ||
| 2005 | |||||
| Revenue | $ 19,987 | $ 3,569 | $ 23,556 | ||
| Operating Expenses (excluding depreciation and amortization) | 11,924 | 2,384 | 14,308 | ||
| Stock option adjustment(b) | 116 | — | 116 | ||
| Operating Cash Flow | $ 7,947 | $ 1,185 | $ 9,132 | ||
| Depreciation and Amortization | 4,346 | 1,134 | 5,480 | ||
| Operating Income | $ 3,601 | $ 51 | $ 3,652 | ||
(a) Pro forma results adjust only for certain acquisitions and dispositions, including Susquehanna Communications (April 2006), the Adelphia and Time Warner transactions (July 2006) and the dissolution of the Texas and Kansas City cable partnership (effective January 1, 2007). Cable segment results are presented as if the transactions noted above were effective on January 1, 2005.
(b) To be consistent with our management reporting, the 2005 Cable segment amounts have been adjusted as if stock options had been expensed as of January 1, 2005.
