Time Magazine 2009 Annual Report Download - page 60

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Financing Activities from Continuing Operations
Details of cash used by financing activities from continuing operations are as follows (millions):
2009 2008 2007
Years Ended December 31,
(recast) (recast)
Borrowings
(a)
...................................... $ 3,583 $ 33,184 $ 6,302
Debt repayments
(a)
.................................. (10,051) (34,731) (3,272)
Proceeds from the exercise of stock options................ 56 134 521
Excess tax benefit on stock options ...................... 1 3 71
Principal payments on capital leases ..................... (20) (17) (16)
Repurchases of common stock ......................... (1,158) (332) (6,231)
Dividends paid ..................................... (897) (901) (871)
Other financing activities ............................. (57) (4) (4)
Cash used by financing activities from continuing operations . . . $ (8,543) $ (2,664) $ (3,500)
(a)
The Company reflects borrowings under its bank credit agreements on a gross basis and short-term commercial paper on a net basis in the
accompanying consolidated statement of cash flows.
Cash used by financing activities from continuing operations increased to $8.543 billion in 2009 from
$2.664 billion in 2008. The change in cash used by financing activities from continuing operations was primarily
due to an increase in net debt repayments and an increase in repurchases of common stock made in connection with
the Company’s common stock repurchase program. The Company used a portion of the $9.253 billion it received
from the payment of the Special Dividend to repay in full its $2.0 billion three-year unsecured term loan facility
(plus accrued interest) and repay all amounts outstanding under the Revolving Facility (defined below). In addition,
the Company paid $2.000 billion (plus accrued interest) for floating rate public debt that matured November 13,
2009.
Cash used by financing activities from continuing operations decreased to $2.664 billion in 2008 from
$3.500 billion in 2007. The change in cash used by financing activities was primarily due to a decline in repurchases
of common stock made in connection with the Company’s common stock repurchase program, partially offset by
declines in net borrowings (i.e., borrowings less repayments) and proceeds from the exercise of stock options.
Cash Flows from Discontinued Operations
Details of cash used by discontinued operations are as follows (millions):
2009 2008 2007
Years Ended December 31,
(recast) (recast)
Cash provided by operations from discontinued operations ........ $ 1,324 $ 6,268 $ 5,077
Cash used by investing activities from discontinued operations ..... (763) (5,213) (3,316)
Cash provided (used) by financing activities from discontinued
operations .......................................... (5,255) 3,983 (988)
Effect of change in cash and equivalents of discontinued
operations .......................................... 5,311 (5,200) 79
Cash provided (used) by discontinued operations ............... $ 617 $ (162) $ 852
For the year ended December 31, 2009, cash provided (used) by discontinued operations primarily reflected
cash activity of TWC and AOL through their separations from the Company on March 12, 2009 and December 9,
48
TIME WARNER INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION – (Continued)