Time Magazine 2012 Annual Report Download - page 60

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TIME WARNER INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION – (Continued)
Cash used by investing activities for the year ended December 31, 2012 increased primarily due to higher
investments and acquisitions spending, partially offset by a decrease in capital expenditures.
The decrease in Cash used by investing activities from continuing operations for the year ended
December 31, 2011 was primarily the result of lower investments and acquisitions spending, partially offset by
higher Capital expenditures and lower investment and sale proceeds.
Financing Activities
Details of Cash used by financing activities are as follows (millions):
Year Ended December 31,
2012 2011 2010
Borrowings ............................................ $ 1,039 $ 3,037 $ 5,243
Debt repayments ........................................ (686) (80) (4,910)
Proceeds from the exercise of stock options .................. 1,107 204 121
Excess tax benefit from equity instruments ................... 83 22 7
Principal payments on capital leases ........................ (11) (12) (14)
Repurchases of common stock ............................. (3,272) (4,611) (2,016)
Dividends paid ......................................... (1,011) (997) (971)
Other financing activities ................................. (80) (96) (384)
Cash used by financing activities ........................... $ (2,831) $ (2,533) $ (2,924)
Cash used by financing activities for the year ended December 31, 2012 increased primarily due to a
decrease in Borrowings net of Debt repayments, partially offset by a decrease in Repurchases of common stock
made in connection with the Company’s common stock repurchase programs and higher Proceeds from the
exercise of stock options. During the year ended December 31, 2012, the Company issued approximately
35 million shares of common stock and received $1.107 billion in connection with the exercise of stock
options. At December 31, 2012, all of the approximately 39 million exercisable stock options outstanding on
such date had exercise prices below the closing price of the Company’s common stock on the New York Stock
Exchange on that day.
The decrease in Cash used by financing activities from continuing operations for the year ended
December 31, 2011 was primarily due to an increase in Borrowings net of Debt repayments, less cash used by
Other financing activities and higher Proceeds from the exercise of stock options, partially offset by an increase
in Repurchases of common stock made in connection with the Company’s common stock repurchase program.
Other financing activities for the year ended December 31, 2010 include premiums and transaction costs paid in
connection with debt redemptions in 2010.
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