Time Magazine 2013 Annual Report Download - page 140

Download and view the complete annual report

Please find page 140 of the 2013 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 146

  • 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
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146

2013 HIGHLIGHTS — RECONCILIATIONS AND OTHER INFORMATION
Set forth below are definitions of the non-GAAP financial measures that are discussed on the 2013
Highlights page of this Annual Report to Shareholders and reconciliations of such non-GAAP financial measures
to the most directly comparable financial measures calculated in accordance with generally accepted accounting
principles.
“Adjusted Operating Income” is Operating Income excluding the impact of noncash impairments of
goodwill, intangible and fixed assets; gains and losses on operating assets (other than deferred gains on sale-
leasebacks); gains and losses recognized in connection with pension and other postretirement benefit plan
curtailments or settlements; external costs related to mergers, acquisitions or dispositions, as well as contingent
consideration related to such transactions, to the extent such costs are expensed; and amounts related to securities
litigation and government investigations. Please see below for a reconciliation of Adjusting Operating Income to
Operating Income.
“Adjusted Earnings Per Share” is defined as Diluted Income per Common Share from Continuing
Operations attributable to Time Warner Inc. common shareholders excluding noncash impairments of goodwill,
intangible and fixed assets and investments; gains and losses on operating assets (other than deferred gains on
sale-leasebacks), liabilities and investments; gains and losses recognized in connection with pension and other
postretirement benefit plan curtailments or settlements; external costs related to mergers, acquisitions,
investments or dispositions, as well as contingent consideration related to such transactions, to the extent such
costs are expensed; amounts related to securities litigation and government investigations; and amounts
attributable to businesses classified as discontinued operations, as well as the impact of taxes and noncontrolling
interests on the above items. Please see below for a reconciliation of Adjusted Earnings Per Share to Diluted
Income per Common Share from Continuing Operations attributable to Time Warner Inc. common shareholders.
“Free Cash Flow” is defined as Cash Provided by Operations from Continuing Operations plus payments
related to securities litigation and government investigations (net of any insurance recoveries), external costs
related to mergers, acquisitions, investments or dispositions, to the extent such costs are expensed, contingent
consideration payments made in connection with acquisitions, and excess tax benefits from equity instruments,
less capital expenditures, principal payments on capital leases and partnership distributions, if any. Please see
below for a reconciliation of Free Cash Flow to Cash Provided by Operations from Continuing Operations.
Reconciliation of Adjusted Operating Income to Operating Income
(millions; unaudited)
Year Ended December 31,
2013 2012
Adjusted Operating Income ......................................... $ 6,599 $ 6,126
Asset impairments ................................................ (140) (186)
Gain on operating assets, net ........................................ 142 9
Other ........................................................... 4 (31)
Operating Income ................................................. $ 6,605 $ 5,918
Reconciliation of Adjusted Earnings Per Share to Diluted Income Per Common Share from Continuing
Operations
(unaudited)
Year Ended December 31,
2013 2012
Diluted income per common share from continuing operations ............. $ 3.77 $ 3.00(1)
Less Impact of items affecting comparability on diluted income per common
share from continuing operations .................................. — (0.24)
Adjusted diluted income per common share from continuing operations ...... $ 3.77 $ 3.24(1)
(1) Time Warner has recast its historical financial results to reflect the presentation of its investment in Central European Media Enterprises
Ltd. (“CME”) common stock and Series A convertible preferred stock under the equity method of accounting for all prior periods from
the date of the Time Warner’s initial investment in CME in May 2009.
124