Time Magazine 2010 Annual Report Download - page 35

In its ongoing effort to improve efficiency and reduce its cost structure, the Publishing segment executed
restructuring initiatives, primarily relating to headcount reductions, in the fourth quarters of 2010 and 2009. For the
years ended December 31, 2010 and 2009, restructuring costs were $61 million and $99 million, respectively.
Recent Developments
Revolving Bank Credit Facilities
On January 19, 2011, the Company entered into two new senior unsecured revolving bank credit facilities
totaling $5.0 billion, which replaced the Company’s senior unsecured revolving bank credit facility that would have
expired in February 2011. See “Financial Condition and Liquidity — Outstanding Debt and Other Financing
Arrangements” for more information.
2010 Debt Transactions
As discussed more fully in “Financial Condition and Liquidity — Outstanding Debt and Other Financing
Arrangements,” in 2010, the Company entered into a series of transactions to capitalize on the historically low
interest rate environment and extend the average maturity of its public debt. Specifically, Time Warner issued
$5.0 billion aggregate principal amount of 5, 10, and 30-year debt securities in two public offerings and used the net
proceeds from the debt offerings to repurchase and redeem approximately $3.930 billion aggregate principal
amount of debt securities of Time Warner and Historic TW Inc. (“Historic TW”) that were scheduled to mature
within the next three years (collectively, the “2010 Debt Redemptions”) and to repay $805 million outstanding
under the Company’s two accounts receivable securitization facilities. For the year ended December 31, 2010, the
Company incurred $364 million of premiums paid and transaction costs incurred in connection with the 2010 Debt
Redemptions.
Shed Media
On October 13, 2010, Warner Bros. acquired an approximate 55% interest in Shed Media, a leading television
production company in the U.K., for $100 million in cash, net of cash acquired. Warner Bros. has a call right that
enables it to purchase a portion of the interests held by the other owners of Shed Media in 2014 and the remaining
interests held by the other owners in 2018. The other owners have a reciprocal put right that enables them to require
Warner Bros. to purchase a portion of their interests in Shed Media in 2014 and the remaining interests held by them
in 2018. See Note 3 to the accompanying consolidated financial statements.
Chilevisión
On October 6, 2010, Turner acquired Chilevisión, a television broadcaster in Chile, for $134 million in cash, net
of cash acquired. See Note 3 to the accompanying consolidated financial statements.
HBO LAG
On March 9, 2010, Home Box Office purchased additional interests in HBO LAG for $217 million in cash,
which resulted in Home Box Office owning 80% of the equity interests of HBO LAG. On November 18, 2010, one
of the remaining partners in HBO LAG exercised its put option to sell its remaining 8% equity interest in HBO LAG
for approximately $65 million in cash. The transaction is expected to close in the first quarter of 2011 and will result
in Home Box Office owning 88% of the equity interests of HBO LAG. Home Box Office accounts for this
investment under the equity method of accounting. See Notes 1 and 3 to the accompanying consolidated financial
statements.
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TIME WARNER INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION – (Continued)