Time Magazine 2014 Annual Report Download - page 46

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TIME WARNER INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION – (Continued)
Restructuring and Severance Costs. For the years ended December 31, 2014, 2013 and 2012, the Company incurred
Restructuring and severance costs primarily related to employee terminations and other exit activities. Restructuring and
severance costs 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
The total number of employees terminated across the segments for the years ended December 31, 2014, 2013 and 2012
was approximately 4,000, 1,000 and 1,000, respectively.
Operating Income. Operating Income was $5.975 billion, $6.268 billion and $5.498 billion for the years ended
December 31, 2014, 2013 and 2012, respectively. Excluding the items noted under “Transactions and Other Items Affecting
Comparability” totaling $142 million of income, $73 million of income and $165 million of expense for the years ended
December 31, 2014, 2013 and 2012, respectively, Operating Income decreased $362 million and increased $532 million in
2014 and 2013, respectively. The decrease in 2014 reflected decreases at the Turner and Warner Bros. segments and
Corporate, partially offset by an increase at Home Box Office. The increase in 2013 reflected increases at the Turner, Home
Box Office and Warner Bros. segments, partially offset by a decrease at Corporate. The segment variations are discussed
under “Business Segment Results.”
Interest Expense, Net. Interest expense, net was $1.169 billion, $1.189 billion and $1.251 billion for the years ended
December 31, 2014, 2013 and 2012, respectively. The decrease for the year ended December 31, 2014 reflected higher
interest income of $92 million mainly related to a note receivable that was collected in March 2014 and the CME
transactions in the second quarter of 2014 as well as lower average interest rates, partially offset by higher average debt
balances. The decrease for the year ended December 31, 2013 reflected lower average interest rates and lower average debt
balances as well as a reduction of $15 million of accrued interest related to legal contingencies.
Other Loss, Net. Other loss, net detail is shown in the table below (millions):
Year Ended December 31,
2014 2013 2012
(recast) (recast)
Investment gains (losses), net .................................. $ 30 $ 61 $ (30)
Amounts related to the separation of TWC ........................ (11) 3 4
Amounts related to the disposition of WMG ...................... 2 (1) (7)
Amounts related to the separation of Time Inc. .................... 3 - -
Items affecting comparability relating to equity method
investments .............................................. (97) (30) (94)
Loss from equity method investees .............................. (56) (120) (86)
Other ..................................................... 2 (24) (1)
Other loss, net .............................................. $ (127) $ (111) $ (214)
Investment gains (losses), net, amounts related to the separation of TWC, amounts related to the disposition of WMG,
amounts related to the separation of Time Inc. and items affecting comparability relating to equity method investments are
discussed under “Transactions and Other Items Affecting Comparability.”
30