Time Magazine 2012 Annual Report Download - page 61

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, 2012, Time Warner had total committed capacity, defined as maximum available
borrowings under various existing debt arrangements and cash and short-term investments, of $27.803 billion. Of
this committed capacity, $7.863 billion was unused and $19.871 billion was outstanding as debt. At
December 31, 2012, 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 ................................... $ 2,841 $ — $ — $ 2,841
Revolving credit facilities and commercial paper program(d) .... 5,000 2 — 4,998
Fixed-rate public debt .................................. 19,620 — 19,620 —
Other obligations(e) ..................................... 342 67 251 24
Total ................................................ $ 27,803 $ 69 $ 19,871 $ 7,863
(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
14.4 years as of December 31, 2012.
(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, 2012, the principal amounts of the Company’s
public debt matures as follows: $732 million in 2013 (classified as current on the accompanying Consolidated Balance Sheet at
December 31, 2012), $0 in 2014, $1.000 billion in 2015, $1.150 billion in 2016, $500 million in 2017 and $16.381 billion thereafter. In
the period after 2017, no more than $2.0 billion will mature in any given year.
(d) The revolving credit facilities consist of two $2.5 billion revolving credit facilities. The Company may issue unsecured commercial paper
notes up to the amount of the unused committed capacity under the revolving credit facilities.
(e) Unused committed capacity includes committed financings of subsidiaries under local bank credit agreements. Other debt obligations
totaling $17 million are due within the next twelve months.
2012 Debt Offering
On June 13, 2012, 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 3.40% Notes due 2022 and
$500 million aggregate principal amount of 4.90% Debentures due 2042.
Revolving Credit Facilities
On December 14, 2012, Time Warner amended its $5.0 billion senior unsecured credit facilities (the
“Revolving Credit Facilities”), which consist of two $2.5 billion revolving credit facilities. The amendment
extended the maturity date of one of the revolving credit facilities from September 27, 2015 to December 14,
2017. The maturity date of the other revolving credit facility was not affected by the amendment and remains
September 27, 2016.
The funding commitments under the Revolving Credit Facilities are provided by a geographically diverse
group of 20 major financial institutions based in countries including Canada, France, Germany, Japan, Spain,
Switzerland, the United Kingdom and the U.S. In addition, 19 of these financial institutions have been identified
by international regulators as among the 29 financial institutions that they deem to be systemically important.
None of the financial institutions in the Revolving Credit Facilities accounts for more than 7% of the aggregate
undrawn loan commitments.
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