Time Magazine 2013 Annual Report Download - page 125

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TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
Long-lived hard assets located outside the United States, which represent approximately 1% of total assets at
December 31, 2013, are not material. Revenues in different geographical areas are as follows (millions):
Year Ended December 31,
2013 2012 2011
Revenues(a)
United States and Canada ................................... $ 21,411 $ 20,729 $ 20,634
Europe(b) ................................................ 4,956 4,757 5,142
Asia/Pacific Rim .......................................... 1,666 1,645 1,599
Latin America ............................................ 1,534 1,346 1,358
All Other ................................................ 228 252 241
Total revenues ............................................ $ 29,795 $ 28,729 $ 28,974
(a) Revenues are attributed to region based on location of customer.
(b) Revenues in the EuroZone countries comprise approximately 44%, 45% and 46% of Europe Revenues for the years ended 2013, 2012
and 2011, respectively.
16. COMMITMENTS AND CONTINGENCIES
Commitments
Time Warner has commitments under certain network programming, film licensing, creative talent,
employment and other agreements aggregating $25.113 billion at December 31, 2013.
The Company also has commitments for office space, studio facilities and operating equipment. Time
Warner’s net rent expense was $398 million in 2013, $407 million in 2012 and $416 million in 2011. Included in
such amounts was sublease income of $65 million for 2013, $62 million for 2012 and $56 million for 2011.
The commitments under certain programming, film licensing, talent and other agreements (“Programming
and Other”) and minimum rental commitments under noncancelable long-term operating leases (“Operating
Leases”) payable during the next five years and thereafter are as follows (millions):
Programming
and Other
Operating
Leases
2014 ......................................................... $ 5,111 $ 410
2015 ......................................................... 3,433 378
2016 ......................................................... 2,746 343
2017 ......................................................... 2,314 310
2018 ......................................................... 2,153 192
Thereafter ..................................................... 9,356 277
Total ......................................................... $ 25,113 $ 1,910
Additionally, as of December 31, 2013, the Company has future sublease income arrangements of $187
million, which are not included in Operating Leases in the table above.
Contingent Commitments
The Company also has certain contractual arrangements that would require it to make payments or provide
funding if certain circumstances occur (“contingent commitments”). Contingent commitments include contingent
consideration to be paid in connection with acquisitions and put/call arrangements on certain investment
transactions, which could require the Company to make payments to acquire certain assets or ownership
interests.
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