Time Magazine 2014 Annual Report Download - page 60

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TIME WARNER INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION – (Continued)
2014 Debt Offering
On May 20, 2014, Time Warner issued $2.0 billion aggregate principal amount of debt securities from its shelf
registration statement, consisting of $650 million aggregate principal amount of 2.10% Notes due 2019, $750 million
aggregate principal amount of 3.55% Notes due 2024 and $600 million aggregate principal amount of 4.65% Debentures due
2044.
Revolving Credit Facilities
On December 18, 2014, Time Warner amended its $5.0 billion of senior unsecured credit facilities (the “Revolving Credit
Facilities”), which consist of two $2.5 billion revolving credit facilities, to extend the maturity dates of both from
December 18, 2018 to December 18, 2019 pursuant to a First Amendment, dated as of December 18, 2014, to the amended
and restated credit agreement, dated as of January 19, 2011, as amended and restated as of December 18, 2013.
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, Switzerland, the United
Kingdom and the U.S. In addition, 17 of these financial institutions have been identified by international regulators as among
the 30 financial institutions that they deem to be systemically important. None of the financial institutions in the Revolving
Credit Facilities account for more than 8% of the aggregate undrawn loan commitments.
Commercial Paper Program
The Company has a commercial paper program, which was established on February 16, 2011 on a private placement
basis, under which Time Warner may issue unsecured commercial paper notes up to a maximum aggregate amount not to
exceed the unused committed capacity under the Revolving Credit Facilities, which support the commercial paper program.
Additional Information
The obligations of each of the borrowers under the Revolving Credit Facilities and the obligations of Time Warner under
the commercial paper program and the Company’s outstanding publicly issued debt are directly or indirectly guaranteed on
an unsecured basis by Historic TW Inc., Home Box Office and Turner (other than $2 billion of debt publicly issued by Time
Warner in 2006, which is not guaranteed by Home Box Office). See Note 8, “Long-Term Debt and Other Financing
Arrangements,” to the accompanying consolidated financial statements for additional information regarding the Company’s
outstanding debt and other financing arrangements, including certain information about maturities, interest rates, covenants,
rating triggers and bank credit agreement leverage ratios relating to such debt and financing arrangements.
Contractual and Other Obligations
Contractual Obligations
In addition to the financing arrangements discussed above, the Company has obligations under certain contractual
arrangements to make future payments for goods and services. These contractual obligations secure the future rights to
various assets and services to be used in the normal course of operations. For example, the Company is contractually
committed to make certain minimum lease payments for the use of property under operating lease agreements. In accordance
with applicable accounting rules, the future rights and obligations pertaining to certain firm commitments, such as operating
lease obligations and certain purchase obligations under contracts, are not reflected as assets or liabilities in the
accompanying Consolidated Balance Sheet.
44