Time Magazine 2009 Annual Report Download - page 147

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March 31, June 30, September 30, December 31,
Quarter Ended
(recast, millions, except per share amounts)
2008
(b)(c)(d)(e)
Total revenues ................................ $ 6,356 $ 6,421 $ 6,578 $ 7,161
Operating income (loss) ......................... 1,027 977 1,280 (6,312)
Amounts attributable to Time Warner Inc.
shareholders:
Income (loss) from continuing operations ............ $ 384 $ 414 $ 631 $ (6,523)
Discontinued operations, net of tax ................. 387 378 436 (9,509)
Net income (loss) .............................. $ 771 $ 792 $ 1,067 $(16,032)
Per share information attributable to Time Warner
Inc. common shareholders:
Basic income (loss) per common share from continuing
operations ................................. $ 0.32 $ 0.35 $ 0.53 $ (5.46)
Diluted income (loss) per common share from continuing
operations ................................. 0.32 0.34 0.52 (5.46)
Net income (loss) per share — basic ................ 0.65 0.66 0.89 (13.41)
Net income (loss) per share — diluted............... 0.64 0.66 0.89 (13.41)
Cash provided by operations from continuing
operations ................................. 1,348 598 1,528 590
Common stock — high .......................... 50.61 49.89 50.10 39.54
Common stock — low .......................... 40.95 42.06 38.04 21.21
Cash dividends declared per share of common stock .... 0.1875 0.1875 0.1875 0.1875
(a)
Time Warner’s operating income (loss) per common share in 2009 was affected by certain significant transactions and other items affecting
comparability. These items consisted of (i) a $33 million loss on the sale of Warner Bros.’ Italian cinema assets in the third quarter; (ii) a
$52 million noncash impairment of intangible assets related to Turner’s interest in a general entertainment network in India in the third
quarter and a $33 million noncash impairment of certain fixed assets at the Publishing segment in the fourth quarter; (iii) the following net
restructuring costs: $36 million during the first quarter, $27 million during the second quarter, $29 million during the third quarter and
$120 million during the fourth quarter (Note 12); and (iv) $7 million in net expenses related to securities litigation and government
investigations in each of the first, second and third quarters and $9 million in net expenses related to securities litigation and government
investigations in the fourth quarter.
(b)
The per share information attributable to Time Warner Inc. common shareholders reflects the 1-for-3 reverse stock split of the Company’s
common stock that became effective on March 27, 2009. Per common share amounts for the quarters and full years have each been
calculated separately. Accordingly, quarterly amounts may not add to the annual amounts because of differences in the average common
shares outstanding during each period and, with regard to diluted per common share amounts only, because of the inclusion of the effect of
potentially dilutive securities only in the periods in which such effect would have been dilutive.
(c)
Time Warner’s operating income (loss) per common share in 2008 was affected by certain significant transactions and other items affecting
comparability. These items consisted of (i) an $18 million noncash impairment of GameTap, an online video game business, during the
second quarter, a $30 million noncash asset impairment related to the sub-lease with a tenant that filed for bankruptcy in September 2008
during the third quarter, a $7.139 billion noncash impairment to reduce the carrying value of goodwill and intangible assets at the Publishing
segment, a $21 million noncash impairment of Southern Living At Home, which was sold in the third quarter of 2009, and a $5 million
noncash impairment related to certain other asset write-offs during the fourth quarter; (ii) the following net restructuring costs: $133 million
during the first quarter, $2 million during the second quarter, $18 million during the third quarter and $174 million during the fourth quarter
(Note 12); (iii) net losses from the disposal of consolidated assets of $3 million in the third quarter; and (iv) $4 million in net expenses
related to securities litigation and government investigations in both the first and second quarters, $5 million in net expenses related to
securities litigation and government investigations in the third quarter and $8 million in net expenses related to securities litigation and
government investigations in the fourth quarter.
(d)
As a result of the legal and structural separation of AOL Inc., the Company has presented the financial condition and results of operations of
its former AOL segment as discontinued operations for all periods. In 2009, this resulted in (i) a reduction of revenues of $859 million in the
first quarter, $796 million in the second quarter and $769 million in the third quarter; (ii) a decrease in operating income of $150 million in
the first quarter, $165 million in the second quarter and $134 million in the third quarter; and (iii) a decrease in income from continuing
135
TIME WARNER INC.
QUARTERLY FINANCIAL INFORMATION – (Continued)
(Unaudited)