ADDITIONAL FINANCIAL INFORMATION

9 Months Ended

Sep. 30, 2013

Additional Financial Information Disclosure [Abstract]

Additional Financial Information Disclosure

14.       ADDITIONAL FINANCIAL INFORMATION

Other Current Assets

Other current assets as of September 30,2013 and December 31,2012 consisted of (in millions):

	September 30,		December 31,
	2013		2012
Prepaid income taxes	$	112	$	23
Other prepaid expenses		172		165
Other current assets		45		35
Total other current assets	$	329	$	223

Other Current Liabilities

Other current liabilities as of September 30,2013 and December 31,2012 consisted of (in millions):

	September 30,		December 31,
	2013		2012
Accrued interest	$	438	$	586
Accrued compensation and benefits		363		384
Accrued insurance		180		169
Accrued franchise fees		145		168
Accrued sales and other taxes		127		99
Other accrued expenses		383		399
Total other current liabilities	$	1,636	$	1,805

Revenue

Revenue for the three and nine months endedSeptember 30,2013 and 2012 consisted of (in millions):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Residential services	$	4,579	$	4,548	$	13,822	$	13,598
Business services		594		493		1,696		1,386
Advertising		253		264		741		740
Other		92		58		284		177
Total revenue	$	5,518	$	5,363	$	16,543	$	15,901

Interest Expense, Net

Interest expense, net, for the three and nine months endedSeptember 30,2013 and 2012 consisted of (in millions):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Interest expense	$	(379)	$	(404)	$	(1,178)	$	(1,210)
Interest income		—		2		3		6
Interest expense, net	$	(379)	$	(402)	$	(1,175)	$	(1,204)

Other Income, Net

Other income, net, for the three and nine months endedSeptember 30,2013 and 2012 consisted of (in millions):

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2013		2012		2013		2012
Income from equity-method investments, net(a)		$	2	$	438	$	16	$	445
Gain on sale of investment in Clearwire			—		64		—		64
Loss on equity award reimbursement obligation
	to Time Warner		(3)		(7)		(8)		(5)
Other investment losses(b)			—		—		—		(12)
Other			1		1		2		1
Other income, net		$	—	$	496	$	10	$	493

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• Income from equity-method investments, net, for the three and nine months ended September 30, 2012 primarily consists of a pretax gain of $430 million associated with SpectrumCo, LLC's (“SpectrumCo”) sale of its advanced wireless spectrum licenses to Cellco Partnership (doing business as Verizon Wireless). SpectrumCo is a joint venture between TWC, Comcast Corporation and Bright House Networks, LLC.
• Other investment losses in 2012 represents an impairment of the Company's investment in Canoe Ventures LLC, an equity-method investee.

Related Party Transactions

A summary of TWC's transactions with related parties (e.g., equity-method investees) for the three and nine months endedSeptember 30,2013 and 2012 is as follows (in millions):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Revenue	$	2	$	3	$	6	$	8
Cost of revenue		(49)		(56)		(162)		(183)

Supplemental Cash Flow Information

Additional financial information with respect to cash (payments) and receipts for the nine months endedSeptember 30,2013 and 2012 is as follows (in millions):

	Nine Months Ended
	September 30,
	2013		2012
Cash paid for interest	$	(1,425)	$	(1,433)
Interest income received(a)		121		131
Cash paid for interest, net	$	(1,304)	$	(1,302)
Cash paid for income taxes	$	(472)	$	(300)
Cash refunds of income taxes		1		9
Cash paid for income taxes, net	$	(471)	$	(291)

——————————

• Interest income received includes amounts received under interest rate swap contracts.

The consolidated statement of cash flows for the nine months endedSeptember 30,2013includes purchases of short-term investments in U.S. Treasury securities of $575 million (included in purchases of investments), which have original maturities of six months, and proceeds from the maturity of short-term investments in U.S. Treasury securities of $475 million (included in proceeds from sale, maturity and collection of investments).As of September 30,2013 and December 31, 2012, short-term investments in U.S. Treasury securities, classified as held-to-maturity, have amortized costs of $250 million and $150 million, respectively, which approximates fair value.

The consolidated statement of cash flows for the nine months endedSeptember 30,2013and 2012does not reflect $21 million and $24 million, respectively, of common stock repurchases that were included in other current liabilities as of September 30,2013and 2012, respectively, for which payment was made in October2013 and 2012, respectively.