Time Magazine 2011 Annual Report Download - page 61

Download and view the complete annual report

Please find page 61 of the 2011 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 136

  • 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
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136

TIME WARNER INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION – (Continued)
Outstanding Debt and Other Financing Arrangements
Outstanding Debt and Committed Financial Capacity
At December 31, 2011, Time Warner had total committed capacity, defined as maximum available
borrowings under various existing debt arrangements and cash and short-term investments, of $28.126 billion. Of
this committed capacity, $8.536 billion was unused and $19.524 billion was outstanding as debt. At
December 31, 2011, total committed capacity, outstanding letters of credit, outstanding debt and total unused
committed capacity were as follows (millions):
Committed
Capacity(a)
Letters of
Credit(b)
Outstanding
Debt(c)
Unused
Committed
Capacity
Cash and equivalents ................................... $ 3,476 $ — $ — $ 3,476
Revolving credit facilities and commerical paper program ..... 5,000 3 — 4,997
Fixed-rate public debt .................................. 19,251 — 19,251 —
Other obligations(d) ..................................... 399 63 273 63
Total ............................................... $ 28,126 $ 66 $ 19,524 $ 8,536
(a) The revolving credit facilities, commercial paper program and public debt of the Company rank pari passu with the senior debt of the
respective obligors thereon. The weighted average maturity of the Company’s outstanding debt and other financing arrangements was
14.7 years as of December 31, 2011.
(b) Represents the portion of committed capacity, including from bilateral letter of credit facilities, reserved for outstanding and undrawn
letters of credit.
(c) Represents principal amounts adjusted for premiums and discounts. At December 31, 2011, the Company’s public debt matures as
follows: $638 million in 2012, $732 million in 2013, $0 in 2014, $1.000 billion in 2015, $1.150 billion in 2016 and $15.881 billion
thereafter. In the period after 2016, no more than $2.0 billion will mature in any given year.
(d) Unused committed capacity includes committed financings of subsidiaries under local bank credit agreements. Other debt obligations
totaling $23 million are due within the next twelve months.
2011 Debt Offerings
Time Warner has a shelf registration statement filed with the SEC that allows it to offer and sell from time to
time debt securities, preferred stock, common stock and warrants to purchase debt and equity securities.
On April 1, 2011, Time Warner issued $2.0 billion aggregate principal amount of debt securities from its
shelf registration statement, consisting of $1.0 billion aggregate principal amount of 4.75% Notes due 2021 and
$1.0 billion aggregate principal amount of 6.25% Debentures due 2041.
On October 17, 2011, Time Warner issued $1.0 billion aggregate principal amount of debt securities from its
shelf registration statement, consisting of $500 million aggregate principal amount of 4.00% Notes due 2022 and
$500 million aggregate principal amount of 5.375% Debentures due 2041.
The net proceeds of both offerings will be used for general corporate purposes, which may include share
repurchases.
Revolving 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 and extended the maturity date of the $2.5 billion five-
year revolving credit facility from January 19, 2016 to September 27, 2016. The amendment also reduced interest
47