This excerpt taken from the TWC 10-K filed Feb 19, 2010.
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consist of (in millions):
The Company invests its cash and equivalents in a combination of money market, government and treasury funds, as well as bank certificates of deposit, in accordance with the Companys investment policy of diversifying its investments and limiting the amount of its investments in a single entity or fund. Consistent with the foregoing, the Company invested $490 million in June 2008 in The Reserve Funds Primary Fund (The Reserve Fund). On the morning of September 15, 2008, the Company requested a full redemption of its investment in The Reserve Fund, but the redemption request was not honored. On September 22, 2008, The Reserve Fund announced that redemptions of shares were suspended pursuant to an SEC order requested by The Reserve Fund so that an orderly liquidation could be effected. Through December 31, 2009, the Company received $451 million from The Reserve Fund representing its pro rata share of partial distributions made by The Reserve Fund. The Company believes that it is legally entitled to a return of its entire investment in The Reserve Fund. However, during the first quarter of 2009, The Reserve Fund announced that it was establishing a $3.5 billion special reserve for legal and other costs that would not be distributed to investors until all claims are resolved. As a result, the Company recorded a $10 million reserve. By Order dated November 25, 2009 and clarified in an Order dated December 11, 2009, the U.S. District Court for the Southern District of New York directed the pro rata distribution of the remaining $3.4 billion held by The Reserve Fund in a manner to be directed by the Court. As a result of these actions, in the fourth quarter of 2009, the Company reversed $5 million of the original reserve. The resulting $5 million net impairment of its investment in The Reserve Fund during 2009 is included in other income
TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(expense), net, in the consolidated statement of operations. The $34 million net receivable from The Reserve Fund as of December 31, 2009 is classified as prepaid expenses and other current assets in the consolidated balance sheet. On January 29, 2010, the Company received an additional $33 million from The Reserve Fund reducing its remaining net receivable to $1 million.