Time Magazine 2010 Annual Report Download - page 56

Download and view the complete annual report

Please find page 56 of the 2010 Time Magazine annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 130

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130

Investing Activities from Continuing Operations
Details of cash provided (used) by investing activities from continuing operations are as follows (millions):
2010 2009 2008
Year Ended December 31,
Investments in available-for-sale securities . . ................. $ (16) $ (4) $ (19)
Investments and acquisitions, net of cash acquired:
HBO Asia, HBO South Asia and HBO LAG ............... (217) — (288)
HBOCE.......................................... (136) — —
Chilevision ........................................ (134) — —
Shed Media ........................................ (100) — —
Repurchase of Google’s 5% interest in AOL ................ — (283) —
CME............................................. — (246) —
All other .......................................... (332) (216) (441)
Capital expenditures ................................... (631) (547) (682)
Proceeds from the Special Dividend (as defined below) ......... — 9,253 —
Proceeds from the sale of available-for-sale securities ........... — 50 13
All other investment and sale proceeds ...................... 130 181 131
Cash provided (used) by investing activities from continuing
operations ......................................... $ (1,436) $ 8,188 $ (1,286)
Cash used by investing activities from continuing operations was $1.436 billion in 2010 compared to cash
provided by investing activities from continuing operations of $8.188 billion in 2009. The change in cash provided
(used) by investing activities from continuing operations was primarily due to the Company’s receipt of
$9.253 billion on March 12, 2009 as its portion of the payment by TWC of a special cash dividend of $10.27
per share to all holders of TWC Class A Common Stock and TWC Class B Common Stock as of the close of
business on March 11, 2009 (the “Special Dividend”) in connection with the separation of TWC from the Company.
Cash provided by investing activities from continuing operations was $8.188 billion in 2009 compared to cash used by
investing activities from continuing operations of $1.286 billion in 2008. The change in cash provided (used) by investing
activities from continuing operations was primarily due to the receipt of the Company’s portion of the Special Dividend.
Financing Activities from Continuing Operations
Details of cash used by financing activities from continuing operations are as follows (millions):
2010 2009 2008
Years Ended December 31,
Borrowings
(a)
....................................... $ 5,243 $ 3,583 $ 33,192
Debt repayments
(a)
................................... (4,910) (10,050) (34,971)
Proceeds from the exercise of stock options ................ 121 56 134
Excess tax benefit on stock options ...................... 7 1 3
Principal payments on capital leases ...................... (14) (18) (17)
Repurchases of common stock .......................... (2,016) (1,158) (332)
Dividends paid...................................... (971) (897) (901)
Other financing activities .............................. (384) (57) (3)
Cash used by financing activities from continuing operations.... $ (2,924) $ (8,540) $ (2,895)
(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.
44
TIME WARNER INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION – (Continued)