Time Magazine 2014 Annual Report Download - page 114

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TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
14. RESTRUCTURING AND SEVERANCE COSTS
The Company’s Restructuring and severance costs primarily related to employee termination costs, ranging from senior
executives to line personnel, and other exit costs, including lease terminations and real estate consolidations. For the year
ended December 31, 2014, the Company incurred $512 million of Restructuring and severance costs related to restructuring
activities designed to position the Company for the current operating environment and reallocate resources to the Company’s
growth initiatives. The restructuring activities and related costs primarily relate to headcount reductions. Restructuring and
severance costs expensed as incurred for the years ended December 31, 2014, 2013 and 2012 are as follows (millions):
Year Ended December 31,
2014 2013 2012
(recast) (recast)
Turner ...................................................... $ 249 $ 93 $ 52
Home Box Office .............................................. 63 39 15
Warner Bros. ................................................. 169 49 23
Corporate .................................................... 31 2 2
Total restructuring and severance costs ............................. $ 512 $ 183 $ 92
Year Ended December 31,
2014 2013 2012
(recast) (recast)
2014 activity ................................................. $ 506 $ - $ -
2013 activity ................................................. 4 173 -
2012 and prior activity .......................................... 2 10 92
Total restructuring and severance costs ............................. $ 512 $ 183 $ 92
2014 Initiatives
For the year ended December 31, 2014, the Company incurred $506 million in Restructuring and severance costs
primarily related to various employee terminations and other exit activities, including $246 million at the Turner segment,
$64 million at the Home Box Office segment, $165 million at the Warner Bros. segment and $31 million at Corporate.
2013 Initiatives
For the year ended December 31, 2013, the Company incurred $173 million in Restructuring and severance costs
primarily related to various employee terminations and other exit activities, including $87 million at the Turner segment, $39
million at the Home Box Office segment, $42 million at the Warner Bros. segment and $5 million at Corporate.
During the year ended December 31, 2014, the Company incurred Restructuring and severance costs of $2 million at the
Turner segment and $2 million at the Warner Bros. segment relating to the 2013 restructuring initiatives.
2012 and Prior Year Initiatives
For the year ended December 31, 2012, the Company incurred $92 million in Restructuring and severance costs primarily
related to various employee terminations and other exit activities, including $52 million at the Turner segment, $15 million at
the Home Box Office segment, $23 million at the Warner Bros. segment and $2 million at Corporate.
During the years ended December 31, 2014 and December 31, 2013, the Company also adjusted certain charges related to
the restructuring initiatives that were undertaken in 2012 and prior years as a result of changes in estimates of previously
established accruals. During the year ended December 31, 2014, the Company incurred $1 million at the Turner segment and
$2 million at the Warner Bros. segment and reversed $1 million at the Home Box Office segment related to the 2012 and
prior year initiatives. During the year ended December 31, 2013, the Company incurred $6 million at the Turner segment and
$7 million at the Warner Bros. segment and reversed $3 million at Corporate related to the 2012 and prior year initiatives.
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