Time Magazine 2013 Annual Report Download - page 50

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TIME WARNER INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION – (Continued)
The remaining changes in Other loss, net for the year ended December 31, 2013 reflected the absence of the
2012 adjustment to reduce a liability for deferred compensation and higher net losses from equity method
investees. The remaining changes in Other loss, net for the year ended December 31, 2012 included an
adjustment to reduce a liability for deferred compensation and higher net losses from equity method investees.
Income Tax Provision. Income tax provision was $1.749 billion, $1.526 billion and $1.477 billion for the
years ended December 31, 2013, 2012 and 2011, respectively. The Company’s effective tax rate was 33%, 34%
and 34% for the years ended December 31, 2013, 2012 and 2011, respectively. The decrease in the effective tax
rate in 2013 was primarily due to a decrease in tax reserves and the recognition of additional foreign tax credit
carryovers, partially offset by additional U.S. tax on unremitted foreign earnings.
Income from Continuing Operations. Income from continuing operations was $3.554 billion, $2.922
billion and $2.882 billion for the years ended December 31, 2013, 2012 and 2011, respectively. Excluding the
items noted under “Transactions and Other Items Affecting Comparability” totaling $5 million of income, $235
million of expense and $158 million of expense for the years ended December 31, 2013, 2012 and 2011,
respectively, Income from continuing operations increased $392 million and $117 million in 2013 and 2012,
respectively. The increase in both 2013 and 2012 primarily reflected higher Operating Income, partially offset by
higher income tax expense. Basic and diluted income per common share from continuing operations attributable
to Time Warner Inc. common shareholders were $3.85 and $3.77, respectively, for the year ended December 31,
2013, $3.05 and $3.00, respectively, for the year ended December 31, 2012 and $2.74 and $2.71, respectively, for
the year ended December 31, 2011.
Discontinued Operations, Net of Tax. Discontinued operations, net of tax for the year ended December 31,
2013 reflected a net tax benefit associated with certain foreign tax attributes of WMG. The Company disposed of
WMG in 2004.
Net Loss Attributable to Noncontrolling Interests. For the years ended December 31, 2013, 2012 and
2011, Net loss attributable to noncontrolling interests was $0, $3 million and $4 million, respectively.
Net Income Attributable to Time Warner Inc. Shareholders. Net income attributable to Time Warner Inc.
shareholders was $3.691 billion, $2.925 billion and $2.886 billion for the years ended December 31, 2013, 2012
and 2011, respectively. Basic and Diluted net income per common share attributable to Time Warner Inc.
common shareholders were $3.99 and $3.92, respectively, for the year ended December 31, 2013, $3.05 and
$3.00, respectively, for the year ended December 31, 2012 and $2.74 and $2.71, respectively, for the year ended
December 31, 2011.
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