Time Magazine 2015 Annual Report Download - page 136

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RECONCILIATIONS AND OTHER INFORMATION
Set forth below are definitions of the non-GAAP financial measures referred to in A Message from the Chairman and
CEO included in this Annual Report to Shareholders and reconciliations of such non-GAAP financial measures to the most
directly comparable financial measures calculated in accordance with generally accepted accounting principles.
“Adjusted Operating Income” is Operating Income excluding the impact of noncash impairments of goodwill,
intangible and fixed assets; gains and losses on operating assets (other than deferred gains on sale-leasebacks); gains and
losses recognized in connection with pension and other postretirement benefit plan curtailments or settlements; external costs
related to mergers, acquisitions or dispositions, as well as contingent consideration related to such transactions, to the extent
such costs are expensed; amounts related to securities litigation and government investigations; and the foreign currency
losses during the three months ended December 31, 2014 and March 31, 2015, related to the translation of net monetary
assets denominated in Venezuelan currency resulting from the Company’s change to the SICAD 2 exchange rate beginning
December 31, 2014 and the Simadi exchange rate during the quarter ended March 31, 2015, respectively.
“Adjusted EPS” is Diluted Income per Common Share from Continuing Operations attributable to Time Warner Inc.
common shareholders with the following items excluded from Income from Continuing Operations attributable to Time
Warner Inc. common shareholders: noncash impairments of goodwill, intangible and fixed assets and investments; gains and
losses on operating assets (other than deferred gains on sale-leasebacks), liabilities and investments; gains and losses
recognized in connection with pension and other postretirement benefit plan curtailments or settlements; external costs
related to mergers, acquisitions, investments or dispositions, as well as contingent consideration related to such transactions,
to the extent such costs are expensed; amounts related to securities litigation and government investigations; the foreign
currency losses during the three months ended December 31, 2014 and March 31, 2015, related to the translation of net
monetary assets denominated in Venezuelan currency resulting from the Company’s change to the SICAD 2 exchange rate
beginning December 31, 2014 and the Simadi exchange rate during the quarter ended March 31, 2015, respectively; and
amounts attributable to businesses classified as discontinued operations; as well as the impact of taxes and noncontrolling
interests on the above items and the Company’s share of the above items with respect to equity method investments.
Reconciliation of Adjusted Operating Income to Operating Income
(millions; unaudited)
Year Ended December 31,
2015 2014
Adjusted Operating Income ...................................................... $ 6,923 $ 5,833
Asset impairments ............................................................. (25) (69)
Gain (loss) on operating assets, net ................................................ (1) 464
Venezuelan foreign currency loss (1) .............................................. (22) (173)
Other (2) ..................................................................... (10) (80)
Operating Income ............................................................. $ 6,865 $ 5,975
(1) Venezuelan foreign currency loss during 2014 and 2015 related to the translation of net monetary assets denominated in Venezuelan currency resulting
from the Company’s change to the SICAD 2 exchange rate beginning in December 31, 2014 and the Simadi exchange rate during the quarter ended
March 31, 2015, respectively.
(2) Other includes gains and losses recognized in connection with pension and other postretirement benefit plan curtailments or settlements; external costs
related to mergers, acquisitions or dispositions; and amounts related to securities litigation and government investigations.
122