Time Magazine 2015 Annual Report Download - page 108

TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
and research and development tax credits were not resolved as part of the settlement and, accordingly, the Company is
pursuing resolution of such matters through the Internal Revenue Service’s (“IRS”) administrative appeals process.
The Company and its subsidiaries file income tax returns in the U.S. and various state and local and foreign
jurisdictions. The IRS is currently conducting an examination of the Company’s U.S. income tax returns for the 2008 through
2010 period.
The Company filed a petition with the United States Tax Court on a matter relating to the appropriate tax
characterization of stock warrants received from Google Inc. in 2002. In December 2014, the Company reached a
preliminary agreement with the IRS, subject to agreement regarding certain necessary computations and the preparation and
execution of definitive documentation. In February 2016, the parties reached a final agreement to resolve this matter.
As of December 31, 2015, the tax years that remain subject to examination by significant jurisdiction are as follows:
U.S. federal .................................................................. 2002 and 2004 through 2015
California ................................................................... 2010 through 2015
New York State .............................................................. 2012 through 2015
New York City ............................................................... 2009 through 2015
10. SHAREHOLDERS’ EQUITY
Common Stock Repurchase Program
For the years ended December 31, 2015, 2014 and 2013, the number of shares repurchased pursuant to trading plans
under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, and their cost are as follows (millions):
Shares
Repurchased Cost of Shares
2015 .................................................................. 45 $3,600
2014 .................................................................. 77 $5,500
2013 .................................................................. 60 $3,700
In January 2016, Time Warner’s Board of Directors authorized up to $5.0 billion of share repurchases beginning
January 1, 2016, including amounts available under the Company’s prior stock repurchase program at December 31, 2015.
Purchases under the stock repurchase program may be made from time to time on the open market and in privately
negotiated transactions. The size and timing of these purchases are based on a number of factors, including price and
business and market conditions.
Shares Authorized and Outstanding
At December 31, 2015, shareholders’ equity of Time Warner included 795 million shares of common stock (net of
857 million shares of common stock held in treasury). As of December 31, 2015, Time Warner is authorized to issue up to
750 million shares of preferred stock, up to 8.33 billion shares of common stock and up to 600 million shares of additional
series of common stock. At December 31, 2014, shareholders’ equity of Time Warner included 832 million shares of
common stock (net of 820 million shares of common stock held in treasury).
Comprehensive Income (Loss)
Comprehensive income (loss) is reported in the Consolidated Statement of Comprehensive Income and consists of Net
income and other gains and losses affecting shareholders’ equity that, under GAAP, are excluded from Net income. For Time
Warner, such items consist primarily of foreign currency translation gains (losses), unrealized gains and losses on certain
derivative financial instruments and equity securities, and changes in benefit plan obligations.
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