Time Magazine 2015 Annual Report Download - page 123

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TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
16. COMMITMENTS AND CONTINGENCIES
Commitments
Time Warner has commitments under certain network programming, film licensing, creative talent, employment and
other agreements aggregating $32.040 billion at December 31, 2015.
The Company also has commitments for office space, studio facilities and operating equipment. Time Warner’s net
rent expense was $333 million in 2015, $358 million in 2014 and $316 million in 2013. Included in such amounts was
sublease income of $15 million for 2015, $33 million for 2014 and $41 million for 2013.
The commitments under certain programming, film licensing, talent and other agreements (“Programming and Other”)
and minimum rental commitments under noncancelable long-term operating leases (“Operating Leases”) payable during the
next five years and thereafter are as follows (millions):
Programming
and Other
Operating
Leases
2016 ...................................................................... $ 5,381 $ 314
2017 ...................................................................... 4,364 300
2018 ...................................................................... 3,728 275
2019 ...................................................................... 3,386 135
2020 ...................................................................... 3,262 82
Thereafter .................................................................. 11,919 154
Total ...................................................................... $ 32,040 $ 1,260
Additionally, as of December 31, 2015, the Company has future sublease income arrangements of $19 million, which
are not included in Operating Leases in the table above.
Contingent Commitments
The Company also has certain contractual arrangements that would require it to make payments or provide funding if
certain circumstances occur (“contingent commitments”). Contingent commitments principally include amounts to be paid in
connection with acquisitions, dispositions and post-production term advance obligations on certain co-financing
arrangements.
The following table summarizes the Company’s contingent commitments at December 31, 2015. For post-production
term advances where payment obligations are outside the Company’s control, the timing of amounts presented in the table
represents the earliest period in which the payment could be requested. For other contingent commitments, the timing of
amounts presented in the table represents when the maximum contingent commitment will expire, but does not mean that the
Company expects to incur an obligation to make any payments within that time period. In addition, amounts presented do not
reflect the effects of any indemnification rights the Company might possess (millions).
Nature of Contingent Commitments Total 2016 2017-2018 2019-2020 Thereafter
Guarantees ......................... $ 1,650 $ 133 $ 458 $ 359 $ 700
Letters of credit and other contingent
commitments ...................... 788 250 8 — 530
Total contingent commitments .......... $ 2,438 $ 383 $ 466 $ 359 $ 1,230
109