Time Magazine 2013 Annual Report Download - page 64

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TIME WARNER INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION – (Continued)
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.
Outstanding Debt and Other Financing Arrangements
Outstanding Debt and Committed Financial Capacity
At December 31, 2013, Time Warner had total committed capacity, defined as maximum available
borrowings under various existing debt arrangements and cash and short-term investments, of $27.090 billion. Of
this committed capacity, $6.883 billion was unused and $20.165 billion was outstanding as debt. At
December 31, 2013, 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 ................................... $ 1,862 $ — $ — $ 1,862
Revolving credit facilities and commercial paper program(d) .... 5,000 — — 5,000
Fixed-rate public debt .................................. 19,905 — 19,905 —
Other obligations(e) ..................................... 323 42 260 21
Total ................................................ $ 27,090 $ 42 $ 20,165 $ 6,883
(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
14.3 years as of December 31, 2013.
(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, 2013, the principal amounts of the Company’s
publicly issued debt mature as follows: $0 in 2014, $1.000 billion in 2015, $1.150 billion in 2016, $500 million in 2017, $600 million in
2018 and $16.781 billion thereafter. In the period after 2018, 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 $66 million are due within the next twelve months.
2013 Debt Offering
On December 16, 2013, 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 4.05% Notes due 2023
and $500 million aggregate principal amount of 5.35% Debentures due 2043.
Revolving Credit Facilities
On December 18, 2013, Time Warner amended its Revolving Credit Facilities, which consist of two $2.5
billion revolving credit facilities, to extend the maturity dates of both to December 18, 2018. Prior to the
amendment, one facility had a maturity date of September 27, 2016 and the other had a maturity date of
December 14, 2017.
The funding commitments under the Revolving Credit Facilities are provided by a geographically diverse
group of 19 major financial institutions based in countries including Canada, France, Germany, Japan, Spain,
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