Time Magazine 2015 Annual Report Download - page 110

TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
The following summary sets forth the components of Accumulated other comprehensive loss, net of tax (millions):
December 31,
2015 2014
Foreign currency translation losses ............................................. $ (583) $ (299)
Net unrealized gains on securities .............................................. 13 12
Net derivative financial instruments gains ....................................... 17 12
Net unfunded/underfunded benefit obligation .................................... (893) (889)
Accumulated other comprehensive loss, net ...................................... $ (1,446) $ (1,164)
11. INCOME PER COMMON SHARE
Set forth below is a reconciliation of Basic and Diluted income per common share from continuing operations
attributable to Time Warner Inc. common shareholders (millions, except per share amounts):
Year Ended December 31,
2015 2014 2013
Income from continuing operations attributable to Time Warner Inc.
shareholders ............................................... $ 3,796 $ 3,894 $ 3,354
Income allocated to participating securities ........................ (11) (14) (16)
Income from continuing operations attributable to Time Warner Inc.
common shareholders — basic ................................ $ 3,785 $ 3,880 $ 3,338
Average basic common shares outstanding ......................... 814.9 863.3 920.0
Dilutive effect of equity awards ................................. 14.6 19.3 22.6
Average diluted common shares outstanding ....................... 829.5 882.6 942.6
Antidilutive common share equivalents excluded from computation ..... 5.0 1.0 —
Income per common share from continuing operations attributable to
Time Warner Inc. common shareholders:
Basic .................................................... $ 4.64 $ 4.49 $ 3.63
Diluted ................................................... $ 4.58 $ 4.41 $ 3.56
12. EQUITY-BASED COMPENSATION
Equity Plans
The Company has one active equity plan, the Time Warner Inc. 2013 Stock Incentive Plan (the “2013 Stock Incentive
Plan”), which was approved by the Company’s stockholders on May 23, 2013. Under the 2013 Stock Incentive Plan, the
Company is authorized to grant equity awards to employees and non-employee directors covering an aggregate of
approximately 36 million shares of the Company’s common stock. Stock options and RSUs have been granted to employees
and non-employee directors of the Company. Generally, stock options are granted with exercise prices equal to the fair
market value on the date of grant, vest in four equal annual installments, and expire ten years from the date of grant. RSUs
granted under the 2013 Stock Incentive Plan generally vest in four equal annual installments, while RSUs granted under the
Company’s prior stock incentive plans generally vest 50% on each of the third and fourth anniversaries of the date of grant.
The Company also has a PSU program for executive officers who are awarded a target number of PSUs that represent the
contingent (unfunded) right to receive shares of Company common stock at the end of a three-year performance period based
on the performance level achieved by the Company. Stock options and RSUs generally provide for accelerated vesting upon
an election to retire after reaching a specified age and years of service, as well as in certain additional circumstances for non-
employee directors.
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