Time Magazine 2011 Annual Report Download - page 39

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TIME WARNER INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION – (Continued)
Revolving Bank Credit Facilities
On September 27, 2011, Time Warner amended its $5.0 billion senior unsecured credit facilities, which had
consisted of a $2.5 billion three-year revolving credit facility and a $2.5 billion five-year revolving credit facility.
The amendment changed the $2.5 billion three-year revolving credit facility to a $2.5 billion four-year revolving
credit facility with a maturity date of September 27, 2015 (the “Four Year Revolving Credit Facility”) and
extended the maturity date of the $2.5 billion five-year revolving credit facility from January 19, 2016 to
September 27, 2016 (the “Five Year Revolving Credit Facility” and, together with the Four Year Revolving
Credit Facility, the “Revolving Credit Facilities”). The amendment also reduced interest rates and facility fees
and eliminated the reference to the percentage of commitments used under the Revolving Credit Facilities for the
purpose of calculating the interest rate on borrowings under the Revolving Credit Facilities. See “Financial
Condition and Liquidity — Outstanding Debt and Other Financing Arrangements” for more information.
Common Stock Repurchase Program
On January 31, 2012, the Company’s Board of Directors authorized a new $4.0 billion stock repurchase
program. See “Financial Condition and Liquidity — Current Financial Condition” for more information.
RESULTS OF OPERATIONS
Recent Accounting Guidance
See Note 1 to the accompanying consolidated financial statements for a discussion of recent accounting
guidance adopted.
Transactions and Other Items Affecting Comparability
As more fully described herein and in the related notes to the accompanying consolidated financial
statements, the comparability of Time Warner’s results has been affected by transactions and certain other items
in each period as follows (millions):
Year Ended December 31,
2011 2010 2009
Asset impairments .......................................... $ (44) $ (20) $ (85)
Gain (loss) on operating assets ................................. 7 70 (33)
Other ..................................................... (22) (22) (30)
Impact on Operating Income .................................. (59) 28 (148)
Investment gains (losses), net .................................. (168) 32 (21)
Amounts related to the separation of Time Warner Cable Inc. ........ (5) (6) 14
Costs related to the separation of AOL Inc. ....................... — — (15)
Premiums paid and transaction costs incurred in connection with debt
redemptions ............................................. — (364) —
Pretax impact(a) ............................................. (232) (310) (170)
Income tax impact of above items .............................. 43 131 37
Tax items related to Time Warner Cable Inc. .....................——24
After-tax impact ............................................ (189) (179) (109)
Noncontrolling interest impact ................................. — — 5
Impact of items on income from continuing operations attributable to
Time Warner Inc. shareholders .............................. $ (189) $ (179) $ (104)
(a) For the years ended December 31, 2010 and 2009, pretax impact amount does not include $23 million and $2 million, respectively, of
external costs related to mergers, acquisitions or dispositions.
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