Time Warner Inc. (NYSE:TWX) today reported financial results for its
fourth quarter and full year ended December 31, 2014.
Chairman and Chief Executive Officer Jeff Bewkes said: “We had another
very successful year in 2014, with solid revenue growth and robust 18%
Adjusted EPS growth – our sixth consecutive year of at least high teens
Adjusted EPS growth. Our financial performance reflects the strength of
our position as the world’s leading video content company. For the year,
three of Turner’s networks – TBS, TNT and Adult Swim – ranked among
ad-supported cable’s top 10 networks in primetime among adults 18-49.
TNT was home to 6 of the top 15 original series on ad-supported cable in
2014, more than any other network, including the three most watched new
series, The Last Ship, The Librarians, and Murder in
the First. CNN strengthened its programming and in 2014 had an
average total day monthly reach of almost 77 million total viewers, the
highest of any cable news network. HBO also had another outstanding
year, airing its most-watched original series ever – Game of Thrones –
and its most-watched freshman series, True Detective. HBO’s
strong performance was reflected in its 19 Primetime Emmy Awards – the
most of any network for the thirteenth consecutive year – and in its
highest growth in domestic subscribers in over three decades. Together
Warner Bros. and HBO received 13 Academy Award nominations, including
Best Picture for American Sniper, which set box office records
last month. In television production, Warner Bros. is airing more than
60 series for the 2014-2015 television season, including the most
primetime series on broadcast networks of any studio for the 11th
time in the past 12 seasons. Warner Bros. also successfully mined its
rich DC library with Gotham and The Flash emerging as two
of the season’s bona fide freshman hits.”
Mr. Bewkes added: “Last year we also returned $6.6 billion to
shareholders through share repurchases and dividends. We’re committed to
building on our strong record of providing direct returns to
shareholders, evidenced by the 10% increase in our dividend approved by
our Board, which is the sixth straight year we’ve raised the dividend by
double-digits.”
Full-Year Company Results1
Full-year revenues increased 3% from 2013 to $27.4 billion due to growth
across all divisions. Adjusted Operating Income declined 6% from 2013 to
$5.8 billion primarily due to charges at Turner related to its decision
to no longer air certain programming and restructuring and severance
charges across all segments. Operating Income decreased 5% from 2013 to
$6.0 billion.
The Company posted 2014 Adjusted Diluted Income per Common Share from
Continuing Operations (“Adjusted EPS”) of $4.15, up 18% from $3.51 in
the prior year. Adjusted EPS included a net tax benefit of $639 million
primarily related to the reversal of certain tax reserves as a result of
an audit settlement. Excluding the tax matters, programming charges at
Turner and restructuring and severance charges in the third and fourth
quarters, Adjusted EPS would have been $4.05. Diluted Income per Common
Share from Continuing Operations was $4.41 in 2014 compared to $3.56 in
2013.
In 2014, Cash Provided by Operations from Continuing Operations reached
$3.7 billion and Free Cash Flow totaled $3.5 billion. As of December 31,
2014, Net Debt was $19.9 billion, up from $18.3 billion at the end of
2013, due to share repurchases, dividends and investments and
acquisitions, partially offset by the generation of Free Cash Flow, cash
received from Time Inc. in connection with the spin-off and proceeds
from the sale of the Company’s space in Time Warner Center.
Fourth-Quarter Company Results
Revenues declined 1% to $7.5 billion in the fourth quarter of 2014 due
to declines at Warner Bros., partially offset by increases at Home Box
Office and Turner. Adjusted Operating Income decreased 10% to $1.6
billion primarily due to restructuring and severance charges across all
segments and charges at Turner related to its decision to no longer air
certain programming. Operating Income decreased 20% to $1.4 billion.
This included a $173 million foreign currency charge related to the
remeasurement of net monetary assets denominated in Venezuelan currency
resulting from a change in the foreign currency exchange rate used by
the Company from the official rate to the SICAD 2 exchange rate.
In the fourth quarter, the Company posted Adjusted EPS of $0.98 versus
$1.07 for the year-ago quarter. Excluding the programming charges at
Turner and restructuring and severance charges, Adjusted EPS would have
been $1.14. Diluted Income per Common Share from Continuing Operations
was $0.84 for the three months ended December 31, 2014 compared to $1.01
for last year’s fourth quarter.
Refer to “Use of Non-GAAP Financial Measures” in this release for a
discussion of the non-GAAP financial measures used in this release and
the reconciliations of the non-GAAP financial measures to the most
directly comparable GAAP financial measures.
Stock Repurchase Program Update
From January 1, 2014 through February 6, 2015, the Company repurchased
approximately 80 million shares of common stock for approximately $5.8
billion. These amounts reflect the purchase of approximately 12 million
shares of common stock for approximately $948 million since the amounts
reported in the Company’s third quarter earnings release issued on
November 5, 2014. At February 6, 2015, approximately $4.2 billion
remained available for repurchases under the Company’s stock repurchase
program.
Regular Quarterly Dividend
On February 10, 2015, the Company’s Board of Directors increased the
Company’s regular quarterly dividend by 10% to $0.35 per share.
___________________________________________
1 On June 6, 2014, the Company completed the legal and
structural separation of Time Inc. from the Company. Accordingly, the
Company has recast its financial information to present the financial
condition and results of operations of its former Time Inc. segment as
discontinued operations for all periods presented.
Segment Performance
The schedule below reflects Time Warner’s financial performance for the
three months and year ended December 31, by line of business (millions).
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Three Months Ended Dec. 31,
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Year Ended Dec. 31,
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2014
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2013
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2014
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2013
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Revenues:
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|
|
|
|
(recast)(a)
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|
|
|
|
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(recast)(a)
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Turner
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$
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2,607
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|
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$
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2,548
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$
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10,396
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$
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9,983
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Home Box Office
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1,338
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1,260
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|
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5,398
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|
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4,890
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Warner Bros.
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3,815
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3,996
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|
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12,526
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12,312
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Intersegment eliminations
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(235)
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(200)
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(961)
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(724)
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Total Revenues
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$
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7,525
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$
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7,604
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$
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27,359
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$
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26,461
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Adjusted Operating Income (Loss) (b):
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Turner (c)(d)
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$
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921
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$
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879
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$
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3,106
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|
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$
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3,536
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Home Box Office
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|
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394
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|
|
|
414
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|
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|
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1,790
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|
|
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1,678
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Warner Bros.
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|
|
391
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|
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576
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1,248
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1,327
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Corporate
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(124)
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(114)
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(460)
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(407)
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Intersegment eliminations (c)(d)
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14
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14
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149
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61
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Total Adjusted Operating Income
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$
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1,596
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|
|
$
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1,769
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|
|
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$
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5,833
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|
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$
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6,195
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|
|
|
|
|
|
|
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|
|
|
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|
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Operating Income (Loss) (b)(e):
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|
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|
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|
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Turner (c)(d)
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$
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788
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$
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853
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|
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$
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2,954
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|
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$
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3,486
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Home Box Office
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|
394
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|
|
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413
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1,786
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|
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1,791
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Warner Bros.
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|
|
319
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|
|
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573
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|
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1,159
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|
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1,324
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Corporate (f)
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(126)
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(120)
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(73)
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(394)
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Intersegment eliminations (c)(d)
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|
|
14
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|
|
|
14
|
|
|
|
|
149
|
|
|
|
61
|
Total Operating Income
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$
|
1,389
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|
|
$
|
1,733
|
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|
|
$
|
5,975
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|
|
$
|
6,268
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Depreciation and Amortization:
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Turner
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$
|
56
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|
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$
|
63
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|
|
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$
|
225
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|
|
$
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252
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Home Box Office
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|
22
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|
|
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29
|
|
|
|
|
91
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|
|
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100
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Warner Bros.
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|
97
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|
|
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101
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|
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390
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|
|
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379
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Corporate
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|
7
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|
|
7
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|
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|
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27
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|
|
|
28
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Total Depreciation and Amortization
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$
|
182
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|
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$
|
200
|
|
|
|
$
|
733
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|
|
$
|
759
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|
|
|
|
|
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|
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(a)
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The 2013 financial information has been recast so the basis of
presentation is consistent with that of the 2014 financial
information. Refer to Note 1, “Description of Business and Basis
of Presentation.”
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(b)
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Adjusted Operating Income (Loss) and Operating Income (Loss) for
the three months and years ended December 31, 2014 and 2013
included restructuring and severance costs of (millions):
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Three Months Ended December 31,
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Year Ended December 31,
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2014
|
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2013
|
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|
2014
|
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2013
|
|
|
|
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(recast)(a)
|
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|
|
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(recast)(a)
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Turner
|
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$
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(26)
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|
|
$
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(29)
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$
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(249)
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|
|
$
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(93)
|
Home Box Office
|
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(6)
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(3)
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|
|
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(63)
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(39)
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Warner Bros.
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(119)
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(16)
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(169)
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(49)
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Corporate
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(15)
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(3)
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|
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(31)
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(2)
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Total Restructuring and Severance Costs
|
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$
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(166)
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$
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(51)
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$
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(512)
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$
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(183)
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(c)
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Adjusted Operating Income (Loss) and Operating Income (Loss) for
the three months and year ended December 31, 2014 included $44
million and $526 million, respectively, of programming charges at
Turner. The charges for the three months and year ended December
31, 2014 were increased by $1 million and partially offset by $138
million, respectively, of intercompany eliminations primarily
related to intercompany profits on programming Warner Bros.
licensed to Turner. The result is a net charge to Time Warner for
the three months and year ended December 31, 2014 of $45 million
and $388 million, respectively.
|
(d)
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Adjusted Operating Income (Loss) and Operating Income (Loss) for
the three months and year ended December 31, 2013 included $68
million and $73 million, respectively, of programming charges at
Turner. These charges were partially offset by $4 million of
intercompany eliminations primarily related to intercompany
profits on programming Warner Bros. licensed to Turner for both
the three months and year ended December 31, 2013. The result is a
net charge to Time Warner for the three months and year ended
December 31, 2013 of $64 million and $69 million, respectively.
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(e)
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Operating Income (Loss) for both the three months and year ended
December 31, 2014 included the impact of a $173 million foreign
currency charge related to the remeasurement of the Company’s net
monetary assets denominated in Venezuelan currency resulting from
a change in the foreign currency exchange rate used by the Company
from the official rate to the SICAD 2 exchange rate.
|
(f)
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Operating Income (Loss) for the year ended December 31, 2014
included a $441 million gain in connection with the sale of the
Company’s space in Time Warner Center.
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Presented below is a discussion of the performance of Time Warner’s
segments for the fourth quarter and full year of 2014. Unless
otherwise noted, the dollar amounts in parentheses represent
year-over-year changes.
TURNER
Full-Year Results
Revenues increased 4% ($413 million) to $10.4 billion, benefiting
from growth of 7% ($367 million) in Subscription revenues, 1% ($34
million) in Advertising revenues and 2% ($12 million) in Content and
other revenues. The increase in Subscription revenues was primarily due
to higher domestic rates and international growth, partially offset by
lower domestic subscribers and the effect of foreign currency exchange
rates. Advertising revenues primarily benefited from growth at Turner’s
domestic networks, principally due to its news businesses, partially
offset by lower audience delivery and demand at its domestic
entertainment networks, and the effect of foreign currency exchange
rates. Content and other revenues increased primarily due to higher
subscription video-on-demand revenues.
Adjusted Operating Income decreased 12% ($430 million) to $3.1
billion as higher revenues were more than offset by higher expenses,
including increased programming costs and higher restructuring and
severance expenses. Programming costs grew 19% primarily due to higher
charges ($453 million) related to Turner’s decision to no longer air
certain programming. Excluding these charges from both years,
programming costs increased 7% primarily due to higher sports
programming costs. The current year included $249 million of
restructuring and severance costs compared to $93 million in the prior
year. Excluding the programming and restructuring and severance charges,
Adjusted Operating Income would have been $3.9 billion in 2014.
Operating Income declined 15% ($532 million) to $3.0 billion.
Operating Income included a $137 million foreign currency charge related
to the remeasurement of Turner’s net monetary assets denominated in
Venezuelan currency.
In 2014, TBS, TNT and Adult Swim ranked among ad-supported cable’s top
10 networks in primetime among adults 18-49. TBS was the #2 ad-supported
cable network in primetime among adults 18-49 and 25-54 in 2014. TNT
claimed 6 of the top 15 ad-supported cable original series of 2014, more
than any other network. Adult Swim ranked as the #1 ad-supported cable
network in total day among adults 18-24 and 18-34 for the tenth
consecutive year, the #1 ad-supported cable network in total day among
adults 18-49 and the #1 ad-supported cable network in primetime among
adults 18-24. In 2014, CNN had an average total day monthly reach of
almost 77 million total viewers, the largest cumulative audience of any
cable news network. In 2014, Turner’s bleacherreport.com averaged
39 million monthly unique visitors, and was the #2 digital sports
destination.
Fourth-Quarter Results
Revenues increased 2% ($59 million) to $2.6 billion, due to
increases of 5% ($66 million) in Subscription revenues and 3% ($5
million) in Content and other revenues, offset in part by a decline of
1% ($12 million) in Advertising revenues. The increase in Subscription
revenues mainly resulted from higher domestic rates and international
growth, partially offset by lower domestic subscribers, the effect of
foreign currency exchange rates and the impact of a contract dispute
with a distributor. Advertising revenues decreased due to declines at
Turner’s domestic entertainment networks, primarily due to lower
audience delivery and fewer Major League Baseball playoff games. That
decline was partially offset by growth at Turner’s domestic news
businesses and international networks, despite the negative effect of
foreign currency exchange rates.
Adjusted Operating Income rose 5% ($42 million) to $921 million,
primarily reflecting higher revenues. Programming costs declined 1% as
Turner incurred $44 million in charges in the fourth quarter of 2014
compared to $68 million in last year’s quarter. Excluding the
programming charges and $26 million in restructuring and severance
charges, Adjusted Operating Income would have been $991 million in the
fourth quarter of 2014.
Operating Income decreased 8% ($65 million) to $788 million and
included the $137 million foreign currency charge.
HOME BOX OFFICE
Full-Year Results
Revenues increased 10% ($508 million) to $5.4 billion, due to
Subscription revenue growth of 8% ($347 million) and an increase of 24%
($161 million) in Content and other revenues. The increase in
Subscription revenues resulted mainly from higher domestic rates and
subscribers, as well as the consolidations of HBO Asia and HBO South
Asia (collectively, “HBO Asia”) and HBO Nordic. Content and other
revenues rose primarily due to the licensing of select original
programming to a subscription video-on-demand service and higher home
video revenues, which benefited from sales of Game of Thrones: The
Complete Third Season.
Adjusted Operating Income grew 7% ($112 million) to $1.8 billion,
reflecting higher revenues, partly offset by increased expenses
primarily due to higher programming and distribution costs as well as
the comparison against the prior year results, which benefited from a
$31 million adjustment to a receivable allowance. The increase in
expenses also reflects higher restructuring and severance costs.
Programming costs grew 12% mainly due to increased original programming
expenses as well as the consolidations of HBO Asia and HBO Nordic.
Distribution costs increased primarily due to higher participation
expenses. The current year included $63 million of restructuring and
severance costs compared to $39 million in the prior year. Excluding the
restructuring and severance charges, Adjusted Operating Income would
have been $1.9 billion in 2014.
Operating Income was essentially flat at $1.8 billion. The prior
year included $113 million in gains related to HBO’s acquisitions of its
partners’ interests in HBO Asia and HBO Nordic.
In 2014, HBO and Cinemax added a total of 2.8 million domestic
subscribers, the most in over 30 years. In 2014, HBO received 19
Primetime Emmy Awards, the most of any network for the thirteenth
consecutive year, with True Detective receiving five awards.
In 2014, Game of Thrones, HBO’s most watched original series
ever, and True Detective, the most-watched freshman season of
HBO’s original series, on average reached over 19 million viewers and
nearly 12 million viewers, respectively, in the U.S. For the 87th
Academy Awards, HBO received two nominations, including Documentary
Feature for Citizenfour.
Fourth-Quarter Results
Revenues increased 6% ($78 million) to $1.3 billion, due to
Subscription revenue growth of 5% ($55 million) and an increase of 14%
($23 million) in Content and other revenues. The increase in
Subscription revenues resulted mainly from higher domestic rates and
subscribers. Content and other revenues grew due to higher home video
revenues.
Adjusted Operating Income decreased 5% ($20 million) to $394
million, primarily due to higher programming, distribution and marketing
costs. Programming costs grew 15% due to higher expenses for originals
and acquired theatrical product. Similar to the full year results, the
increase in distribution costs was primarily due to higher participation
expenses.
Operating Income declined 5% ($19 million) to $394 million.
WARNER BROS.
Full-Year Results
Revenues increased 2% ($214 million) to $12.5 billion, due to
stronger television revenues, primarily due to growth in initial
telecast fees, including from the acquisition of Eyeworks Group’s
operations outside the U.S., and higher international television
licensing revenues due to growth in both subscription video-on-demand
and linear television revenues. Revenues also benefited from a patent
license and settlement agreement. The increase was partially offset by
declines in theatrical and physical home video revenues due to the
comparison to the strong 2013 theatrical and home entertainment slate as
well as the negative effect of foreign currency exchange rates.
Adjusted Operating Income decreased 6% ($79 million) to $1.2
billion, as higher revenues were more than offset by higher television
production costs and increased restructuring and severance costs. The
current year included $169 million of restructuring and severance costs
compared to $49 million in the prior year. Excluding the restructuring
and severance charges, Adjusted Operating Income would have been $1.4
billion in 2014.
Operating Income decreased 12% ($165 million) to $1.2
billion. Operating Income included a $36 million foreign currency charge
related to the remeasurement of Warner Bros.’ net monetary assets
denominated in Venezuelan currency. The current year also included $41
million in asset impairments.
Warner Bros. has over 60 series airing on television for the 2014-2015
television season, including 34 primetime series on broadcast networks,
the most of any studio for the 11th time in the past 12
years. Season-to-date, The Big Bang Theory ranked as broadcast
television’s #1 series among adults 18-49 and The Voice ranked as
broadcast television’s #1 non-scripted series among adults 18-49. For
the 87th Academy Awards, Warner Bros. received 11
nominations, including a Best Picture nomination for American Sniper.
Through February 8, The Hobbit: The Battle of the Five Armies
grossed nearly $940 million at the worldwide box office. In 2014, Warner
Bros. remained #1 domestically in overall home entertainment.
Fourth-Quarter Results
Revenues decreased 5% ($181 million) to $3.8 billion, mainly due
to lower home entertainment and videogames revenues. The current year
period included the home entertainment releases of Edge of Tomorrow
and Tammy. The prior year period included the home entertainment
releases of Man of Steel, Pacific Rim and The Hangover
Part III and the videogame release of Batman: Arkham Origins.
Also contributing to the decline was the negative effect of foreign
currency exchange rates. The decline was partially offset by higher
television licensing revenues.
Adjusted Operating Income decreased 32% ($185 million) to $391
million, mainly due to the decline in revenues and higher restructuring
and severance charges. The current year quarter included $119 million of
restructuring and severance costs compared to $16 million in the prior
year quarter. Excluding the restructuring and severance charges,
Adjusted Operating Income would have been $510 million in the fourth
quarter of 2014.
Operating Income decreased 44% ($254 million) to $319 million and
included the $36 million foreign currency charge and $36 million of
asset impairments.
CONSOLIDATED NET INCOME AND PER SHARE RESULTS
Full-Year Results
Adjusted EPS was $4.15 for the year ended December 31, 2014, compared to
$3.51 in 2013. The increase in Adjusted EPS primarily reflects lower
taxes as a result of a net tax benefit of $639 million primarily related
to the reversal of certain tax reserves in 2014 and fewer shares
outstanding, offset in part by lower Adjusted Operating Income.
For the year ended December 31, 2014, the Company had Income from
Continuing Operations attributable to Time Warner common shareholders of
$3.9 billion, or $4.41 per diluted common share. This
compares to Income from Continuing Operations attributable to Time
Warner common shareholders in 2013 of $3.4 billion, or $3.56
per diluted common share.
For the years ended December 31, 2014 and 2013, the Company reported Net
Income of $3.8 billion and $3.7 billion, respectively.
Fourth-Quarter Results
Adjusted EPS was $0.98 for the three months ended December 31,
2014, compared to $1.07 in last year’s fourth quarter. The decrease in
Adjusted EPS primarily reflects lower Adjusted Operating Income and
higher taxes, offset in part by fewer shares outstanding.
For the three months ended December 31, 2014, the Company had Income
from Continuing Operations attributable to Time Warner common
shareholders of $720 million, or $0.84 per diluted common
share. This compares to Income from Continuing Operations attributable
to Time Warner common shareholders in the fourth quarter of 2014 of $934
million, or $1.01 per diluted common share.
For the fourth quarters of 2014 and 2013, the Company had Net Income of
$718 million and $983 million, respectively.
USE OF NON-GAAP FINANCIAL MEASURES
The Company utilizes Adjusted Operating Income (Loss), Adjusted
Operating Income margin and Adjusted EPS, among other measures, to
evaluate the performance of its businesses. These measures are
considered important indicators of the operational strength of the
Company’s businesses. Some limitations of Adjusted Operating Income
(Loss), Adjusted Operating Income margin and Adjusted EPS are that they
do not reflect certain charges that affect the operating results of the
Company’s businesses and they involve judgment as to whether items
affect fundamental operating performance.
Adjusted Operating Income (Loss) is Operating Income (Loss) excluding
the impact of noncash impairments of goodwill, intangible and fixed
assets; gains and losses on operating assets (other than deferred gains
on sale-leasebacks); gains and losses recognized in connection with
pension and other postretirement benefit plan curtailments or
settlements; external costs related to mergers, acquisitions or
dispositions, as well as contingent consideration related to such
transactions, to the extent such costs are expensed; amounts related to
securities litigation and government investigations; and the foreign
currency loss during the three months ended December 31, 2014, related
to the translation of net monetary assets denominated in Venezuelan
currency resulting from the Company’s change to begin using the SICAD 2
exchange rate. Adjusted Operating Income margin is defined as Adjusted
Operating Income divided by Revenues.
Adjusted EPS is Diluted Income per Common Share from Continuing
Operations attributable to Time Warner Inc. common shareholders with the
following items excluded from Income from Continuing Operations
attributable to Time Warner Inc. common shareholders: noncash
impairments of goodwill, intangible and fixed assets and investments;
gains and losses on operating assets (other than deferred gains on
sale-leasebacks), liabilities and investments; gains and losses
recognized in connection with pension and other postretirement benefit
plan curtailments or settlements; external costs related to mergers,
acquisitions, investments or dispositions, as well as contingent
consideration related to such transactions, to the extent such costs are
expensed; amounts related to securities litigation and government
investigations; the foreign currency loss during the three months ended
December 31, 2014 related to the translation of net monetary assets
denominated in Venezuelan currency resulting from the Company’s change
to begin using the SICAD 2 exchange rate; and amounts attributable to
businesses classified as discontinued operations; as well as the impact
of taxes and noncontrolling interests on the above items and the
Company’s share of the above items with respect to equity method
investments. Adjusted EPS is considered an important indicator of the
operational strength of the Company’s businesses as this measure
eliminates amounts that do not reflect the fundamental performance of
the Company’s businesses. The Company utilizes Adjusted EPS, among other
measures, to evaluate the performance of its businesses both on an
absolute basis and relative to its peers and the broader market. Many
investors also use an adjusted EPS measure as a common basis for
comparing the performance of different companies.
Free Cash Flow is defined as Cash Provided by Operations from Continuing
Operations plus payments related to securities litigation and government
investigations (net of any insurance recoveries), external costs related
to mergers, acquisitions, investments or dispositions, to the extent
such costs are expensed, contingent consideration payments made in
connection with acquisitions, and excess tax benefits from equity
instruments, less capital expenditures, principal payments on capital
leases and partnership distributions, if any. The Company uses Free Cash
Flow to evaluate its businesses and this measure is considered an
important indicator of the Company’s liquidity, including its ability to
reduce net debt, make strategic investments, pay dividends to common
shareholders and repurchase stock.
A general limitation of these measures is that they are not prepared in
accordance with U.S. generally accepted accounting principles and may
not be comparable to similarly titled measures of other companies due to
differences in methods of calculation and excluded items. Adjusted
Operating Income (Loss), Adjusted EPS and Free Cash Flow should be
considered in addition to, not as a substitute for, the Company’s
Operating Income (Loss), Diluted Income per Common Share from Continuing
Operations and various cash flow measures (e.g., Cash Provided by
Operations from Continuing Operations), as well as other measures of
financial performance and liquidity reported in accordance with U.S.
generally accepted accounting principles.
ABOUT TIME WARNER INC.
Time Warner Inc., a global leader in media and entertainment with
businesses in television networks and film and TV entertainment, uses
its industry-leading operating scale and brands to create, package and
deliver high-quality content worldwide on a multi-platform basis.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These statements
are based on management’s current expectations or beliefs, and are
subject to uncertainty and changes in circumstances. Actual results may
vary materially from those expressed or implied by the statements herein
due to changes in economic, business, competitive, technological,
strategic and/or regulatory factors and other factors affecting the
operation of Time Warner’s businesses. More detailed information about
these factors may be found in filings by Time Warner with the Securities
and Exchange Commission, including its most recent Annual Report on Form
10-K and subsequent Quarterly Reports on Form 10-Q. Time Warner is under
no obligation to, and expressly disclaims any such obligation to, update
or alter its forward-looking statements, whether as a result of new
information, future events, or otherwise.
INFORMATION ON BUSINESS OUTLOOK RELEASE & CONFERENCE CALL
Time Warner Inc. issued a separate release today regarding its 2015
full-year business outlook.
The Company’s conference call can be heard live at 10:30 am ET on
Wednesday, February 11, 2015. To listen to the call, visit www.timewarner.com/investors.
|
|
|
|
|
|
|
|
|
TIME WARNER INC. CONSOLIDATED BALANCE SHEET (Unaudited;
millions, except share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
(recast)
|
ASSETS
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
Cash and equivalents
|
|
|
$
|
2,618
|
|
|
|
$
|
1,816
|
|
Receivables, less allowances of $1,152 and $1,383
|
|
|
|
7,720
|
|
|
|
|
7,305
|
|
Inventories
|
|
|
|
1,700
|
|
|
|
|
1,648
|
|
Deferred income taxes
|
|
|
|
184
|
|
|
|
|
369
|
|
Prepaid expenses and other current assets
|
|
|
|
958
|
|
|
|
|
559
|
|
Current assets of discontinued operations
|
|
|
|
-
|
|
|
|
|
834
|
|
Total current assets
|
|
|
|
13,180
|
|
|
|
|
12,531
|
|
|
|
|
|
|
|
|
|
|
Noncurrent inventories and theatrical film and television production
costs
|
|
|
|
6,841
|
|
|
|
|
7,016
|
|
Investments, including available-for-sale securities
|
|
|
|
2,326
|
|
|
|
|
2,009
|
|
Property, plant and equipment, net
|
|
|
|
2,655
|
|
|
|
|
3,291
|
|
Intangible assets subject to amortization, net
|
|
|
|
1,141
|
|
|
|
|
1,338
|
|
Intangible assets not subject to amortization
|
|
|
|
7,032
|
|
|
|
|
7,043
|
|
Goodwill
|
|
|
|
27,565
|
|
|
|
|
27,401
|
|
Other assets
|
|
|
|
2,519
|
|
|
|
|
2,458
|
|
Noncurrent assets of discontinued operations
|
|
|
|
-
|
|
|
|
|
4,912
|
|
Total assets
|
|
|
$
|
63,259
|
|
|
|
$
|
67,999
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
$
|
7,507
|
|
|
|
$
|
6,754
|
|
Deferred revenue
|
|
|
|
579
|
|
|
|
|
542
|
|
Debt due within one year
|
|
|
|
1,118
|
|
|
|
|
66
|
|
Current liabilities of discontinued operations
|
|
|
|
-
|
|
|
|
|
1,026
|
|
Total current liabilities
|
|
|
|
9,204
|
|
|
|
|
8,388
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
21,376
|
|
|
|
|
20,061
|
|
Deferred income taxes
|
|
|
|
2,204
|
|
|
|
|
2,287
|
|
Deferred revenue
|
|
|
|
315
|
|
|
|
|
351
|
|
Other noncurrent liabilities
|
|
|
|
5,684
|
|
|
|
|
6,324
|
|
Noncurrent liabilities of discontinued operations
|
|
|
|
-
|
|
|
|
|
684
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
Common stock, $0.01 par value, 1.652 billion and 1.652 billion shares
|
|
|
|
|
|
|
|
|
issued and 832 million and 895 million shares outstanding
|
|
|
|
17
|
|
|
|
|
17
|
|
Additional paid-in capital
|
|
|
|
149,282
|
|
|
|
|
153,410
|
|
Treasury stock, at cost (820 million and 757 million shares)
|
|
|
|
(42,445
|
)
|
|
|
|
(37,630
|
)
|
Accumulated other comprehensive loss, net
|
|
|
|
(1,164
|
)
|
|
|
|
(852
|
)
|
Accumulated deficit
|
|
|
|
(81,214
|
)
|
|
|
|
(85,041
|
)
|
Total Time Warner Inc. shareholders’ equity
|
|
|
|
24,476
|
|
|
|
|
29,904
|
|
Noncontrolling interests
|
|
|
|
-
|
|
|
|
|
-
|
|
Total equity
|
|
|
|
24,476
|
|
|
|
|
29,904
|
|
Total liabilities and equity
|
|
|
$
|
63,259
|
|
|
|
$
|
67,999
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TIME WARNER INC. CONSOLIDATED STATEMENT OF
OPERATIONS (Unaudited; millions, except per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
12/31/14
|
|
12/31/13
|
|
|
12/31/14
|
|
|
12/31/13
|
|
|
|
|
|
|
|
(recast)
|
|
|
|
|
|
|
(recast)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$
|
7,525
|
|
|
|
$
|
7,604
|
|
|
|
$
|
27,359
|
|
|
|
$
|
26,461
|
|
Costs of revenues
|
|
|
|
(4,418
|
)
|
|
|
|
(4,427
|
)
|
|
|
|
(15,875
|
)
|
|
|
|
(14,935
|
)
|
Selling, general and administrative
|
|
|
|
(1,477
|
)
|
|
|
|
(1,308
|
)
|
|
|
|
(5,190
|
)
|
|
|
|
(4,934
|
)
|
Amortization of intangible assets
|
|
|
|
(50
|
)
|
|
|
|
(58
|
)
|
|
|
|
(202
|
)
|
|
|
|
(209
|
)
|
Restructuring and severance costs
|
|
|
|
(166
|
)
|
|
|
|
(51
|
)
|
|
|
|
(512
|
)
|
|
|
|
(183
|
)
|
Asset impairments
|
|
|
|
(38
|
)
|
|
|
|
(26
|
)
|
|
|
|
(69
|
)
|
|
|
|
(61
|
)
|
Gain (loss) on operating assets, net
|
|
|
|
13
|
|
|
|
|
(1
|
)
|
|
|
|
464
|
|
|
|
|
129
|
|
Operating income
|
|
|
|
1,389
|
|
|
|
|
1,733
|
|
|
|
|
5,975
|
|
|
|
|
6,268
|
|
Interest expense, net
|
|
|
|
(301
|
)
|
|
|
|
(300
|
)
|
|
|
|
(1,169
|
)
|
|
|
|
(1,189
|
)
|
Other income (loss), net
|
|
|
|
13
|
|
|
|
|
(51
|
)
|
|
|
|
(127
|
)
|
|
|
|
(111
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income taxes
|
|
|
|
1,101
|
|
|
|
|
1,382
|
|
|
|
|
4,679
|
|
|
|
|
4,968
|
|
Income tax provision
|
|
|
|
(381
|
)
|
|
|
|
(448
|
)
|
|
|
|
(785
|
)
|
|
|
|
(1,614
|
)
|
Income from continuing operations
|
|
|
|
720
|
|
|
|
|
934
|
|
|
|
|
3,894
|
|
|
|
|
3,354
|
|
Discontinued operations, net of tax
|
|
|
|
(2
|
)
|
|
|
|
49
|
|
|
|
|
(67
|
)
|
|
|
|
337
|
|
Net income
|
|
|
|
718
|
|
|
|
|
983
|
|
|
|
|
3,827
|
|
|
|
|
3,691
|
|
Less Net loss attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
noncontrolling interests
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Net income attributable to Time Warner Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders
|
|
|
$
|
718
|
|
|
|
$
|
983
|
|
|
|
$
|
3,827
|
|
|
|
$
|
3,691
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share information attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time Warner Inc. common shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per common share from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
continuing operations
|
|
|
$
|
0.86
|
|
|
|
$
|
1.03
|
|
|
|
$
|
4.49
|
|
|
|
$
|
3.63
|
|
Discontinued operations
|
|
|
|
(0.01
|
)
|
|
|
|
0.06
|
|
|
|
|
(0.07
|
)
|
|
|
|
0.36
|
|
Basic net income per common share
|
|
|
$
|
0.85
|
|
|
|
$
|
1.09
|
|
|
|
$
|
4.42
|
|
|
|
$
|
3.99
|
|
Average basic common shares outstanding
|
|
|
|
836.7
|
|
|
|
|
901.9
|
|
|
|
|
863.3
|
|
|
|
|
920.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per common share from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
continuing operations
|
|
|
$
|
0.84
|
|
|
|
$
|
1.01
|
|
|
|
$
|
4.41
|
|
|
|
$
|
3.56
|
|
Discontinued operations
|
|
|
|
-
|
|
|
|
|
0.05
|
|
|
|
|
(0.07
|
)
|
|
|
|
0.36
|
|
Diluted net income per common share
|
|
|
$
|
0.84
|
|
|
|
$
|
1.06
|
|
|
|
$
|
4.34
|
|
|
|
$
|
3.92
|
|
Average diluted common shares outstanding
|
|
|
|
855.7
|
|
|
|
|
924.3
|
|
|
|
|
882.6
|
|
|
|
|
942.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per share of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common stock
|
|
|
$
|
0.3175
|
|
|
|
$
|
0.2875
|
|
|
|
$
|
1.2700
|
|
|
|
$
|
1.1500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TIME WARNER INC. CONSOLIDATED STATEMENT OF CASH
FLOWS Year Ended December 31, (Unaudited;
millions)
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
(recast)
|
OPERATIONS
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
3,827
|
|
|
|
$
|
3,691
|
|
Less Discontinued operations, net of tax
|
|
|
|
67
|
|
|
|
|
(337
|
)
|
Net income from continuing operations
|
|
|
|
3,894
|
|
|
|
|
3,354
|
|
Adjustments for noncash and nonoperating items:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
733
|
|
|
|
|
759
|
|
Amortization of film and television costs
|
|
|
|
8,040
|
|
|
|
|
7,262
|
|
Asset impairments
|
|
|
|
69
|
|
|
|
|
61
|
|
Venezuelan foreign currency loss
|
|
|
|
173
|
|
|
|
|
-
|
|
Gain on investments and other assets, net
|
|
|
|
(464
|
)
|
|
|
|
(65
|
)
|
Equity in losses of investee companies, net of cash distributions
|
|
|
|
232
|
|
|
|
|
216
|
|
Equity-based compensation
|
|
|
|
219
|
|
|
|
|
238
|
|
Deferred income taxes
|
|
|
|
166
|
|
|
|
|
759
|
|
Changes in operating assets and liabilities, net of acquisitions
|
|
|
|
(9,381
|
)
|
|
|
|
(9,326
|
)
|
Cash provided by operations from continuing operations
|
|
|
|
3,681
|
|
|
|
|
3,258
|
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
Investments in available-for-sale securities
|
|
|
|
(30
|
)
|
|
|
|
(27
|
)
|
Investments and acquisitions, net of cash acquired
|
|
|
|
(950
|
)
|
|
|
|
(495
|
)
|
Capital expenditures
|
|
|
|
(474
|
)
|
|
|
|
(568
|
)
|
Investment proceeds from available-for-sale securities
|
|
|
|
25
|
|
|
|
|
33
|
|
Proceeds from Time Inc. in the Time Separation
|
|
|
|
1,400
|
|
|
|
|
-
|
|
Proceeds from the sale of Time Warner Center
|
|
|
|
1,264
|
|
|
|
|
-
|
|
Other investment proceeds
|
|
|
|
148
|
|
|
|
|
170
|
|
Cash provided (used) by investing activities from continuing
operations
|
|
|
|
1,383
|
|
|
|
|
(887
|
)
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Borrowings
|
|
|
|
2,409
|
|
|
|
|
1,028
|
|
Debt repayments
|
|
|
|
(72
|
)
|
|
|
|
(762
|
)
|
Proceeds from exercise of stock options
|
|
|
|
338
|
|
|
|
|
674
|
|
Excess tax benefit from equity instruments
|
|
|
|
179
|
|
|
|
|
179
|
|
Principal payments on capital leases
|
|
|
|
(11
|
)
|
|
|
|
(9
|
)
|
Repurchases of common stock
|
|
|
|
(5,504
|
)
|
|
|
|
(3,708
|
)
|
Dividends paid
|
|
|
|
(1,109
|
)
|
|
|
|
(1,074
|
)
|
Other financing activities
|
|
|
|
(173
|
)
|
|
|
|
(111
|
)
|
Cash used by financing activities from continuing operations
|
|
|
|
(3,943
|
)
|
|
|
|
(3,783
|
)
|
Cash provided (used) by continuing operations
|
|
|
|
1,121
|
|
|
|
|
(1,412
|
)
|
|
|
|
|
|
|
|
|
|
Cash provided (used) by operations from discontinued operations
|
|
|
|
(16
|
)
|
|
|
|
456
|
|
Cash used by investing activities from discontinued operations
|
|
|
|
(51
|
)
|
|
|
|
(23
|
)
|
Cash used by financing activities from discontinued operations
|
|
|
|
(36
|
)
|
|
|
|
-
|
|
Effect of change in cash and equivalents of discontinued operations
|
|
|
|
(87
|
)
|
|
|
|
35
|
|
Cash provided (used) by discontinued operations
|
|
|
|
(190
|
)
|
|
|
|
468
|
|
Effect of Venezuelan exchange rate changes on cash and cash
equivalents
|
|
|
|
(129
|
)
|
|
|
|
-
|
|
INCREASE (DECREASE) IN CASH AND EQUIVALENTS
|
|
|
|
802
|
|
|
|
|
(944
|
)
|
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD
|
|
|
|
1,816
|
|
|
|
|
2,760
|
|
CASH AND EQUIVALENTS AT END OF PERIOD
|
|
|
$
|
2,618
|
|
|
|
$
|
1,816
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TIME WARNER INC. RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASURES (Unaudited; dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of Adjusted Operating Income (Loss)
to Operating Income (Loss) and Adjusted Operating
Income Margin to Operating Income Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
|
|
|
|
Gain (Loss) on
|
|
|
Venezuelan
|
|
|
|
|
|
|
|
|
|
Operating
|
|
|
Asset
|
|
|
Operating
|
|
|
Foreign
|
|
|
|
|
|
Operating
|
|
|
|
Income (Loss)
|
|
|
Impairments
|
|
|
Assets, Net
|
|
|
Currency Loss
|
|
|
Other
|
|
|
Income (Loss)
|
Turner
|
|
|
$
|
921
|
|
|
|
$
|
(2
|
)
|
|
|
$
|
6
|
|
|
|
$
|
(137
|
)
|
|
|
$
|
-
|
|
|
|
$
|
788
|
|
Home Box Office
|
|
|
|
394
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
394
|
|
Warner Bros.
|
|
|
|
391
|
|
|
|
|
(36
|
)
|
|
|
|
7
|
|
|
|
|
(36
|
)
|
|
|
|
(7
|
)
|
|
|
|
319
|
|
Corporate
|
|
|
|
(124
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(2
|
)
|
|
|
|
(126
|
)
|
Intersegment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
eliminations
|
|
|
|
14
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
14
|
|
Time Warner
|
|
|
$
|
1,596
|
|
|
|
$
|
(38
|
)
|
|
|
$
|
13
|
|
|
|
$
|
(173
|
)
|
|
|
$
|
(9
|
)
|
|
|
$
|
1,389
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin(a)
|
|
|
|
21.2
|
%
|
|
|
|
(0.5
|
%)
|
|
|
|
0.2
|
%
|
|
|
|
(2.3
|
%)
|
|
|
|
(0.1
|
%)
|
|
|
|
18.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2013 (recast)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
|
|
|
|
Gain (Loss) on
|
|
|
Venezuelan
|
|
|
|
|
|
|
|
|
|
Operating
|
|
|
Asset
|
|
|
Operating
|
|
|
Foreign
|
|
|
|
|
|
Operating
|
|
|
|
Income (Loss)
|
|
|
Impairments
|
|
|
Assets, Net
|
|
|
Currency Loss
|
|
|
Other
|
|
|
Income (Loss)
|
Turner
|
|
|
$
|
879
|
|
|
|
$
|
(24
|
)
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
(2
|
)
|
|
|
$
|
853
|
|
Home Box Office
|
|
|
|
414
|
|
|
|
|
-
|
|
|
|
|
(1
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
413
|
|
Warner Bros.
|
|
|
|
576
|
|
|
|
|
(2
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(1
|
)
|
|
|
|
573
|
|
Corporate
|
|
|
|
(114
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(6
|
)
|
|
|
|
(120
|
)
|
Intersegment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
eliminations
|
|
|
|
14
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
14
|
|
Time Warner
|
|
|
$
|
1,769
|
|
|
|
$
|
(26
|
)
|
|
|
$
|
(1
|
)
|
|
|
$
|
-
|
|
|
|
$
|
(9
|
)
|
|
|
$
|
1,733
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin(a)
|
|
|
|
23.3
|
%
|
|
|
|
(0.4
|
%)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(0.1
|
%)
|
|
|
|
22.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Please see below for additional information on items affecting
comparability.
|
________________________
|
(a)
|
|
Adjusted Operating Income margin is defined as Adjusted Operating
Income divided by Revenues. Operating Income margin is defined as
Operating Income divided by Revenues.
|
|
|
|
|
Year Ended December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
|
|
|
|
Gain (Loss) on
|
|
|
Venezuelan
|
|
|
|
|
|
|
|
|
|
Operating
|
|
|
Asset
|
|
|
Operating
|
|
|
Foreign
|
|
|
|
|
|
Operating
|
|
|
|
Income (Loss)
|
|
|
Impairments
|
|
|
Assets, Net
|
|
|
Currency Loss
|
|
|
Other
|
|
|
Income (Loss)
|
Turner
|
|
|
$
|
3,106
|
|
|
|
$
|
(17
|
)
|
|
|
$
|
16
|
|
|
|
$
|
(137
|
)
|
|
|
$
|
(14
|
)
|
|
|
$
|
2,954
|
|
Home Box Office
|
|
|
|
1,790
|
|
|
|
|
(4
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
1,786
|
|
Warner Bros.
|
|
|
|
1,248
|
|
|
|
|
(41
|
)
|
|
|
|
7
|
|
|
|
|
(36
|
)
|
|
|
|
(19
|
)
|
|
|
|
1,159
|
|
Corporate
|
|
|
|
(460
|
)
|
|
|
|
(7
|
)
|
|
|
|
441
|
|
|
|
|
-
|
|
|
|
|
(47
|
)
|
|
|
|
(73
|
)
|
Intersegment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
eliminations
|
|
|
|
149
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
149
|
|
Time Warner
|
|
|
$
|
5,833
|
|
|
|
$
|
(69
|
)
|
|
|
$
|
464
|
|
|
|
$
|
(173
|
)
|
|
|
$
|
(80
|
)
|
|
|
$
|
5,975
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin(a)
|
|
|
|
21.3
|
%
|
|
|
|
(0.3
|
%)
|
|
|
|
1.7
|
%
|
|
|
|
(0.6
|
%)
|
|
|
|
(0.3
|
%)
|
|
|
|
21.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2013 (recast)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
|
|
|
|
Gain (Loss) on
|
|
|
Venezuelan
|
|
|
|
|
|
|
|
|
|
Operating
|
|
|
Asset
|
|
|
Operating
|
|
|
Foreign
|
|
|
|
|
|
Operating
|
|
|
|
Income (Loss)
|
|
|
Impairments
|
|
|
Assets, Net
|
|
|
Currency Loss
|
|
|
Other
|
|
|
Income (Loss)
|
Turner
|
|
|
$
|
3,536
|
|
|
|
$
|
(47
|
)
|
|
|
$
|
2
|
|
|
|
$
|
-
|
|
|
|
$
|
(5
|
)
|
|
|
$
|
3,486
|
|
Home Box Office
|
|
|
|
1,678
|
|
|
|
|
-
|
|
|
|
|
113
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
1,791
|
|
Warner Bros.
|
|
|
|
1,327
|
|
|
|
|
(7
|
)
|
|
|
|
6
|
|
|
|
|
-
|
|
|
|
|
(2
|
)
|
|
|
|
1,324
|
|
Corporate
|
|
|
|
(407
|
)
|
|
|
|
(7
|
)
|
|
|
|
8
|
|
|
|
|
-
|
|
|
|
|
12
|
|
|
|
|
(394
|
)
|
Intersegment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
eliminations
|
|
|
|
61
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
61
|
|
Time Warner
|
|
|
$
|
6,195
|
|
|
|
$
|
(61
|
)
|
|
|
$
|
129
|
|
|
|
$
|
-
|
|
|
|
$
|
5
|
|
|
|
$
|
6,268
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin(a)
|
|
|
|
23.4
|
%
|
|
|
|
(0.2
|
%)
|
|
|
|
0.5
|
%
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
23.7
|
%
|
|
Please see below for additional information on items affecting
comparability.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_____________________
|
(a)
|
|
Adjusted Operating Income margin is defined as Adjusted Operating
Income divided by Revenues. Operating Income margin is defined as
Operating Income divided by Revenues.
|
|
|
|
|
|
|
|
|
|
|
TIME WARNER INC. RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASURES (Unaudited; millions, except per
share amounts)
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EPS to Diluted Income
per Common Share from Continuing Operations attributable to Time
Warner Inc. common shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
12/31/14
|
|
|
12/31/13
|
|
|
12/31/14
|
|
|
|
12/31/13
|
|
|
|
|
|
|
|
(recast)
|
|
|
|
|
|
|
|
(recast)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset impairments
|
|
|
$
|
(38
|
)
|
|
|
$
|
(26
|
)
|
|
|
$
|
(69
|
)
|
|
|
|
$
|
(61
|
)
|
Gain (loss) on operating assets, net
|
|
|
|
13
|
|
|
|
|
(1
|
)
|
|
|
|
464
|
|
|
|
|
|
129
|
|
Venezuelan foreign currency loss
|
|
|
|
(173
|
)
|
|
|
|
-
|
|
|
|
|
(173
|
)
|
|
|
|
|
-
|
|
Other
|
|
|
|
(9
|
)
|
|
|
|
(9
|
)
|
|
|
|
(80
|
)
|
|
|
|
|
5
|
|
Impact on Operating Income
|
|
|
|
(207
|
)
|
|
|
|
(36
|
)
|
|
|
|
142
|
|
|
|
|
|
73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment gains (losses), net
|
|
|
|
87
|
|
|
|
|
(6
|
)
|
|
|
|
30
|
|
|
|
|
|
61
|
|
Amounts related to the separation of Time
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warner Cable Inc.
|
|
|
|
(10
|
)
|
|
|
|
(6
|
)
|
|
|
|
(11
|
)
|
|
|
|
|
3
|
|
Amounts related to the disposition of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warner Music Group
|
|
|
|
2
|
|
|
|
|
(1
|
)
|
|
|
|
2
|
|
|
|
|
|
(1
|
)
|
Amounts related to the separation of Time Inc.
|
|
|
|
1
|
|
|
|
|
-
|
|
|
|
|
3
|
|
|
|
|
|
-
|
|
Items affecting comparability relating to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity method investments
|
|
|
|
(72
|
)
|
|
|
|
(18
|
)
|
|
|
|
(97
|
)
|
|
|
|
|
(30
|
)
|
Pretax impact
|
|
|
|
(199
|
)
|
|
|
|
(67
|
)
|
|
|
|
69
|
|
|
|
|
|
106
|
|
Income tax impact of above items
|
|
|
|
81
|
|
|
|
|
10
|
|
|
|
|
165
|
|
|
|
|
|
(59
|
)
|
Impact of items affecting comparability on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income from continuing operations attributable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to Time Warner Inc. shareholders
|
|
|
$
|
(118
|
)
|
|
|
$
|
(57
|
)
|
|
|
$
|
234
|
|
|
|
|
$
|
47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to Time Warner Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
$
|
720
|
|
|
|
$
|
934
|
|
|
|
$
|
3,894
|
|
|
|
|
$
|
3,354
|
|
Less Impact of items affecting comparability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
on net income
|
|
|
|
(118
|
)
|
|
|
|
(57
|
)
|
|
|
|
234
|
|
|
|
|
|
47
|
|
Adjusted income from continuing operations
|
|
|
$
|
838
|
|
|
|
$
|
991
|
|
|
|
$
|
3,660
|
|
|
|
|
$
|
3,307
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share information attributable to Time
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warner Inc. common shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per common share from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
continuing operations
|
|
|
$
|
0.84
|
|
|
|
$
|
1.01
|
|
|
|
$
|
4.41
|
|
|
|
|
$
|
3.56
|
|
Less Impact of items affecting comparability on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
diluted net income per common share
|
|
|
|
(0.14
|
)
|
|
|
|
(0.06
|
)
|
|
|
|
0.26
|
|
|
|
|
|
0.05
|
|
Adjusted EPS
|
|
|
$
|
0.98
|
|
|
|
$
|
1.07
|
|
|
|
$
|
4.15
|
|
|
|
|
$
|
3.51
|
|
Average diluted common shares outstanding
|
|
|
|
855.7
|
|
|
|
|
924.3
|
|
|
|
|
882.6
|
|
|
|
|
|
942.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Impairments
During the three months ended December 31, 2014, the Company recorded
asset impairments of $2 million at the Turner segment related to
miscellaneous assets and $36 million at the Warner Bros. segment,
including $12 million related to a tradename and the remaining amount
primarily related to certain fixed assets.
During the year ended December 31, 2014, the Company recorded $69
million of asset impairments consisting of $17 million at the Turner
segment related to miscellaneous assets, $4 million at the Home Box
Office segment related to an international tradename, $41 million at the
Warner Bros. segment, including $12 million related to a tradename and
the remaining amount primarily related to various fixed assets and
certain internally developed software and $7 million at Corporate
related to certain internally developed software.
During the three months ended December 31, 2013, the Company recorded
$26 million of noncash impairments, consisting of $24 million at the
Turner segment, of which $18 million related to a building, $4 million
related to Turner’s decision in the fourth quarter of 2013 to shut down
an entertainment network in Belgium and $2 million related to certain
miscellaneous assets, and $2 million at the Warner Bros. segment related
to miscellaneous assets.
During the year ended December 31, 2013, the Company recorded noncash
impairments of $61 million, consisting of $47 million at the Turner
segment, of which $18 million related to certain of Turner’s
international intangible assets, $18 million related to a building in
South America, $10 million related to programming assets resulting from
Turner’s decision to shut down certain of its entertainment networks in
Spain and Belgium and $1 million related to miscellaneous assets, $7
million at the Warner Bros. segment related to miscellaneous assets and
$7 million at Corporate related to certain internally developed software.
Gain (Loss) on Operating Assets, Net
For the three months and year ended December 31, 2014, the Company
recognized gains on operating assets of $6 million at the Turner segment
and $7 million at the Warner Bros. segment primarily related to the sale
of certain fixed assets. For the year ended December 31, 2014, the
Company recognized $16 million of net gains at the Turner segment,
reflecting a $13 million gain related to the sale of Zite, Inc., a news
content aggregation and recommendation platform, a $4 million gain
related to the sale of certain fixed assets, a $2 million gain primarily
related to the sale of a building in South America and a $3 million loss
related to the shutdown of a business, a $7 million gain at the Warner
Bros. segment primarily related to the sale of certain fixed assets and
a $441 million gain at Corporate in connection with the sale and
leaseback of the Company’s space in Time Warner Center.
For the three months and year ended December 31, 2013, the Company
recognized a $1 million reversal and $104 million of gains,
respectively, at the Home Box Office segment upon Home Box Office’s
acquisition of its former partner’s interests in HBO Asia and HBO South
Asia. In addition, for the year ended December 31, 2013, the Company
recognized net gains on operating assets of $25 million, including a $2
million gain at the Turner segment on the sale of a building, a $9
million gain at the Home Box Office segment upon Home Box Office’s
acquisition of its former partner’s interest in HBO Nordic, a $6 million
gain at the Warner Bros. segment on miscellaneous operating assets and
an $8 million gain at Corporate on the disposal of certain corporate
assets.
Venezuelan Foreign Currency Loss
Certain of the Company’s divisions conduct business with third parties
located in Venezuela and, as a result, the Company holds net monetary
assets denominated in Venezuelan Bolivares Fuertes (“VEF”) that
primarily consist of cash and accounts receivable. As of December 31,
2014, there were three legal foreign currency exchange systems
administered by the Venezuelan government, each with a different
exchange rate: (i) the fixed official government rate as published by
the Central Bank of Venezuela, which as of December 31, 2014 was 6.3 VEF
to each U.S. Dollar, (ii) the variable, auction-based SICAD 1 rate,
which as of December 31, 2014 was 12 VEF to each U.S. Dollar and (iii)
the variable, transaction-based SICAD 2 rate, which as of December 31,
2014 was approximately 50 VEF to each U.S. Dollar. Because of Venezuelan
government-imposed restrictions on the exchange of VEF into foreign
currency in Venezuela, the Company has not been able to convert VEF
earned in Venezuela into U.S. Dollars through the official government
rate. Further, the Company has not been able to access the SICAD 1 and
SICAD 2 exchanges due to government requirements and restrictions on
participation in the exchanges, including a requirement that an entity
be domiciled in Venezuela to participate.
Prior to December 31, 2014, the Company used the official government
exchange rate to remeasure its VEF-denominated transactions and
balances. This was principally due to the Company’s inability to access
the SICAD 1 and SICAD 2 exchange systems, as noted above, as well as a
lack of clarity about those exchange systems’ stability and transaction
volume. During the fourth quarter of 2014, the Company considered
information about the companies that were able to access the three
exchange systems during 2014 and the fact that the SICAD 1 and SICAD 2
exchanges continued to operate, as well as the state of the Venezuelan
economy, which has been negatively impacted by significantly lower oil
prices and which the Venezuela Central Bank confirmed in late December
2014 had entered a recession. Based on these factors, as of December 31,
2014, the Company concluded that the SICAD 2 exchange rate was the most
appropriate legal exchange rate for the Company’s business activities
conducted in VEF. Accordingly, beginning on December 31, 2014, the
Company began using the SICAD 2 rate to remeasure its VEF-denominated
transactions and balances and, for the three months and year ended
December 31, 2014, recognized a pretax foreign exchange loss of $137
million at the Turner segment and $36 million at the Warner Bros.
segment. The Venezuelan foreign currency loss is included in Selling,
general and administrative expenses in the accompanying Consolidated
Statement of Operations.
Other
For the three months and year ended December 31, 2014, Other reflects
external costs related to mergers, acquisitions or dispositions of $9
million and $80 million, respectively, which consisted of $0 and $14
million, respectively, at the Turner segment primarily related to exit
costs in connection with the shutdown of CNN Latino, $7 million and $19
million, respectively, at the Warner Bros. segment primarily related to
the acquisition of Eyeworks Group’s operations outside the U.S. and $2
million and $47 million, respectively, at Corporate primarily related to
the legal and structural separation of Time Inc. from the Company (the
“Time Separation”).
For the three months and year ended December 31, 2013, Other reflects
external costs related to mergers, acquisitions or dispositions of $9
million and $33 million for the three months and year ended December 31,
2013, respectively, primarily related to the Time Separation. Other also
includes a gain of $38 million for the three months and year ended
December 31, 2013 at Corporate related to the curtailment of certain
post-retirement benefits (the “Curtailment”).
External costs related to mergers, acquisitions or dispositions and the
gain related to the Curtailment are included in Selling, general and
administrative expenses in the accompanying Consolidated Statement of
Operations.
Investment Gains (Losses), Net
For the three months ended December 31, 2014, the Company recognized $87
million of investment gains, net consisting of $88 million of gains
related to fair value adjustments to warrants to purchase common stock
of Central European Media Enterprises Ltd. (the “CME Warrants”) held by
the Company and $1 million of net miscellaneous investment losses. For
the year ended December 31, 2014, the Company recognized $30 million of
net miscellaneous investment gains, consisting of $29 million of gains
related to fair value adjustments to the CME Warrants and $1 million of
net miscellaneous investment gains.
For the three months and year ended December 31, 2013, the Company
recognized $6 million of net miscellaneous investment losses. For the
year ended December 31, 2013, the Company also recognized $67 million of
net miscellaneous investment gains consisting of a $65 million gain on
the sale of the Company’s investment in a theater venture in Japan,
which included a $10 million gain related to a foreign currency
contract, and a $2 million net noncash gain associated with an option to
acquire securities that was terminated during the third quarter of 2013.
Amounts Related to the Separation of Time Warner Cable Inc.
The Company recognized other expense of $1 million for the year ended
December 31, 2014 and other expense of $6 million and $7 million for the
three months and year ended December 31, 2013, respectively, related to
the expiration, exercise and net change in the estimated fair value of
Time Warner equity awards held by Time Warner Cable Inc. (“TWC”)
employees, which has been reflected in Other income (loss), net in the
accompanying Consolidated Statement of Operations.
The Company also recognized other expense of $10 million for both the
three months and year ended December 31, 2014 and other income of $10
million for the year ended December 31, 2013, related to changes in the
value of a TWC tax indemnification receivable, which has also been
reflected in Other income (loss), net in the accompanying Consolidated
Statement of Operations.
Amounts Related to the Disposition of Warner Music Group
The Company recognized other income of $2 million for both the three
months and year ended December 31, 2014 and losses of $1 million for
both the three months and year ended December 31, 2013, primarily
related to a tax indemnification obligation associated with the
disposition of Warner Music Group in 2004. These amounts have been
reflected in Other income (loss), net in the accompanying Consolidated
Statement of Operations.
Amounts Related to the Time Separation
For the three months and year ended December 31, 2014, the Company
recognized $1 million and $3 million, respectively, of other income
related to the expiration, exercise and net change in the estimated fair
value of Time Warner equity awards held by certain Time Inc. employees.
Items Affecting Comparability Relating to Equity Method Investments
For the three months and year ended December 31, 2014, the Company
recognized $61 million and $70 million, respectively, as its share of
discontinued operations recognized by an equity method investee as well
as $15 million and $27 million, respectively, as its share of a loss on
the extinguishment of debt recognized by an equity method investee. In
addition, for the three months ended December 31, 2014, the Company
reversed its share of costs related to a government investigation of an
equity method investee of $4 million that was recorded earlier in 2014.
For the three months ended December 31, 2013, the Company recognized $18
million as its share of noncash impairments recognized by an equity
method investee. In addition, for the year ended December 31, 2013, the
Company recognized $12 million as its share of a noncash loss on the
extinguishment of debt recognized by the equity method investee.
These amounts have been reflected in Other income (loss), net in the
accompanying Consolidated Statement of Operations.
Income Tax Impact
The income tax impact reflects the estimated tax provision or tax
benefit associated with each item affecting comparability. Such
estimated tax provision or tax benefit can vary based on certain
factors, including the taxability or deductibility of the items and
foreign tax on certain items.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TIME WARNER INC. RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASURES (Unaudited; millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Cash Provided by Operations from Continuing
Operations to Free Cash Flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
12/31/14
|
|
|
12/31/13
|
|
|
12/31/14
|
|
|
12/31/13
|
|
|
|
|
|
|
|
(recast)
|
|
|
|
|
|
|
(recast)
|
Cash provided by operations from continuing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
operations
|
|
|
$
|
1,007
|
|
|
|
$
|
690
|
|
|
|
$
|
3,681
|
|
|
|
$
|
3,258
|
|
Add external costs related to mergers,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisitions, investments or dispositions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and contingent consideration payments
|
|
|
|
16
|
|
|
|
|
9
|
|
|
|
|
76
|
|
|
|
|
231
|
|
Add excess tax benefits from equity instruments
|
|
|
|
41
|
|
|
|
|
25
|
|
|
|
|
179
|
|
|
|
|
179
|
|
Less capital expenditures
|
|
|
|
(158
|
)
|
|
|
|
(272
|
)
|
|
|
|
(474
|
)
|
|
|
|
(568
|
)
|
Less principal payments on capital leases
|
|
|
|
(3
|
)
|
|
|
|
(3
|
)
|
|
|
|
(11
|
)
|
|
|
|
(9
|
)
|
Free Cash Flow
|
|
|
$
|
903
|
|
|
|
$
|
449
|
|
|
|
$
|
3,451
|
|
|
|
$
|
3,091
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
Note 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
Time Warner Inc. (“Time Warner” or the “Company”) is a leading media and
entertainment company, whose businesses include television networks and
film and TV entertainment. Time Warner classifies its operations into
three reportable segments: Turner: consisting principally
of cable networks and digital media properties; Home Box Office:
consisting principally of premium pay television services
domestically and premium pay and basic tier television services
internationally; and Warner Bros.: consisting principally
of television, feature film, home video and videogame production and
distribution.
On June 6, 2014, the Company completed the legal and structural
separation of the Company’s Time Inc. segment from the Company (the
“Time Separation”). With the completion of the Time Separation, the
Company disposed of the Time Inc. segment in its entirety and ceased to
consolidate its assets, liabilities and results of operations in the
Company’s consolidated financial statements. Accordingly, the Company
has recast its financial information to present the financial condition
and results of operations of its former Time Inc. segment as
discontinued operations in the Company’s consolidated financial
statements for all periods presented.
In connection with the Time Separation, the Company received
$1.4 billion from Time Inc., consisting of proceeds relating to Time
Inc.’s acquisition of the IPC publishing business in the U.K. from a
wholly-owned subsidiary of Time Warner and a special dividend.
Note 2. INTERSEGMENT TRANSACTIONS
Revenues recognized by Time Warner’s segments on intersegment
transactions are as follows (millions):
|
|
|
|
Three Months Ended
|
|
|
|
|
Year Ended
|
|
|
|
|
12/31/14
|
|
|
|
|
12/31/13
|
|
|
|
|
12/31/14
|
|
|
|
|
12/31/13
|
|
|
|
|
|
|
|
|
|
|
(recast)
|
|
|
|
|
|
|
|
|
|
|
(recast)
|
Intersegment Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turner
|
|
|
|
$
|
25
|
|
|
|
|
$
|
20
|
|
|
|
|
$
|
101
|
|
|
|
|
$
|
85
|
Home Box Office
|
|
|
|
|
9
|
|
|
|
|
|
9
|
|
|
|
|
|
36
|
|
|
|
|
|
14
|
Warner Bros.
|
|
|
|
|
201
|
|
|
|
|
|
171
|
|
|
|
|
|
824
|
|
|
|
|
|
625
|
Total intersegment revenues
|
|
|
|
$
|
235
|
|
|
|
|
$
|
200
|
|
|
|
|
$
|
961
|
|
|
|
|
$
|
724
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 3. WARNER BROS. HOME VIDEO AND ELECTRONIC DELIVERY
REVENUES
Home video and electronic delivery of theatrical and television product
revenues are as follows (millions):
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
12/31/14
|
|
12/31/13
|
|
12/31/14
|
|
12/31/13
|
|
|
|
|
|
|
|
|
|
|
|
Home video and electronic delivery of theatrical
|
|
|
|
|
|
|
|
|
|
|
|
|
product revenues
|
|
$
|
578
|
|
$
|
847
|
|
$
|
1,913
|
|
$
|
2,118
|
Home video and electronic delivery of television
|
|
|
|
|
|
|
|
|
|
|
|
|
product revenues
|
|
|
216
|
|
|
261
|
|
|
584
|
|
|
719
|
Copyright Business Wire 2015