Time Magazine 2012 Annual Report Download - page 43

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TIME WARNER INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION – (Continued)
During the fourth quarter of 2010, Turner assumed management of the SI.com and Golf.com websites,
including selling the advertising for the websites, from Time Inc. In exchange, Time Inc. received a license fee
from Turner. In the second quarter of 2012, Time Inc. assumed management of these websites from Turner and,
with the transfer, Time Inc. now sells the advertising for these websites and no longer receives a license fee from
Turner. These changes did not affect the Company’s consolidated results of operations for the years ended
December 31, 2012, 2011 and 2010.
Recent Developments
Common Stock Repurchase Program
In January 2013, Time Warner’s Board of Directors authorized up to $4.0 billion of share repurchases
beginning January 1, 2013, including amounts available under the Company’s prior stock repurchase program as
of December 31, 2012. See “Financial Condition and Liquidity — Current Financial Condition” for more
information.
Revolving Credit Facility Maturity Date Extension
In 2012, the Company amended one of its $2.5 billion senior unsecured revolving credit facilities to extend
the maturity date from September 27, 2015 to December 14, 2017. The maturity date of Time Warner’s other
$2.5 billion senior unsecured revolving credit facility was not affected and remains September 27, 2016. See
“Financial Condition and Liquidity — Outstanding Debt and Other Financing Arrangements” for more
information.
Bleacher Report
In 2012, Turner acquired Bleacher Report, a leading online and mobile sports property, for $170 million, net
of cash acquired. See Note 3, “Business Acquisitions and Dispositions,” to the accompanying consolidated
financial statements.
2012 Debt Offering
In 2012, Time Warner issued $1.0 billion aggregate principal amount of debt securities in a public offering.
See “Financial Condition and Liquidity — Outstanding Debt and Other Financing Arrangements” for more
information.
CME
In 2012, the Company purchased additional shares of Class A common stock and one share of preferred
stock that is convertible into Class A common stock of Central European Media Enterprises Ltd. (“CME”), a
publicly traded media and entertainment company that operates leading television networks in six Central and
Eastern European countries, for $171 million. As a result of these purchases, the Company increased its
economic interest in CME from 34% to 49.9%. In 2012, the Company recorded a $43 million noncash
impairment of its investment in CME. For additional information regarding the transactions with CME, see
Note 3, “Business Acquisitions and Dispositions,” to the accompanying consolidated financial statements.
27