Time Magazine 2014 Annual Report Download - page 59

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TIME WARNER INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION – (Continued)
approximately 10 million shares of common stock and received $338 million in connection with the exercise of stock
options. At December 31, 2014, all of the approximately 22 million exercisable stock options outstanding on such date had
exercise prices below the closing price of the Company’s common stock on the New York Stock Exchange.
Cash used by financing activities for the year ended December 31, 2013 increased primarily due to higher Repurchases of
common stock and lower Proceeds from the exercise of stock options. During the year ended December 31, 2013, the
Company issued approximately 20 million shares of common stock and received $674 million in connection with the
exercise of stock options.
Cash Flows from Discontinued Operations
Details of Cash provided (used) by discontinued operations are as follows (millions):
Year Ended December 31,
2014 2013 2012
(recast) (recast)
Cash provided (used) by operations from discontinued operations ......... $ (16) $ 456 $ 455
Cash used by investing activities from discontinued operations ............ (51) (23) (26)
Cash used by financing activities from discontinued operations ........... (36) - -
Effect of change in cash and equivalents of discontinued operations ........ (87) 35 14
Cash provided (used) by discontinued operations ....................... $ (190) $ 468 $ 443
Outstanding Debt and Other Financing Arrangements
Outstanding Debt and Committed Financial Capacity
At December 31, 2014, Time Warner had total committed capacity, defined as maximum available borrowings under
various existing debt arrangements and cash and short-term investments, of $30.159 billion. Of this committed capacity,
$7.637 billion was unused and $22.494 billion was outstanding as debt. At December 31, 2014, 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 ................................. $ 2,618 $ - $ - $ 2,618
Revolving credit facilities and commercial
paper program(d) ................................... 5,000 - - 5,000
Fixed-rate public debt ................................ 21,920 - 21,920 -
Other obligations(e) .................................. 621 28 574 19
Total .............................................. $ 30,159 $ 28 $ 22,494 $ 7,637
(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 13.2 years as of December 31, 2014.
(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, 2014, the principal amounts of the Company’s publicly issued debt
mature as follows: $1.000 billion in 2015, $1.150 billion in 2016, $500 million in 2017, $600 million in 2018, $650 million in 2019 and $18.131 billion
thereafter. In the period after 2019, 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 $118
million are due within the next twelve months.
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