Time Magazine 2009 Annual Report Download - page 33

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TIME WARNER INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION
INTRODUCTION
Management’s discussion and analysis of results of operations and financial condition (“MD&A”) is a
supplement to the accompanying consolidated financial statements and provides additional information on
Time Warner Inc.’s (“Time Warner” or the “Company”) businesses, current developments, financial condition,
cash flows and results of operations. MD&A is organized as follows:
•Overview. This section provides a general description of Time Warner’s business segments, as well as
recent developments the Company believes are important in understanding the results of operations and
financial condition or in understanding anticipated future trends.
•Results of operations. This section provides an analysis of the Company’s results of operations for the
three years ended December 31, 2009. This analysis is presented on both a consolidated and a business
segment basis. In addition, a brief description is provided of significant transactions and events that affect
the comparability of the results being analyzed.
•Financial condition and liquidity. This section provides an analysis of the Company’s cash flows for the
three years ended December 31, 2009, as well as a discussion of the Company’s outstanding debt and
commitments that existed as of December 31, 2009. Included in the analysis of outstanding debt is a
discussion of the amount of financial capacity available to fund the Company’s future commitments, as
well as a discussion of other financing arrangements.
•Market risk management. This section discusses how the Company monitors and manages exposure to
potential gains and losses arising from changes in market rates and prices, such as interest rates, foreign
currency exchange rates and changes in the market value of financial instruments.
•Critical accounting policies. This section identifies those accounting principles that are considered
important to the Company’s results of operations and financial condition, require significant judgment and
require estimates on the part of management in application. All of the Company’s significant accounting
policies, including those considered to be critical accounting policies, are summarized in Note 1 to the
accompanying consolidated financial statements.
•Caution concerning forward-looking statements. This section provides a description of the use of
forward-looking information appearing in this report, including in MD&A and the consolidated financial
statements. Such information is based on management’s current expectations about future events, which
are inherently susceptible to uncertainty and changes in circumstances. Refer to “Risk Factors” above for a
discussion of the risk factors applicable to the Company.
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