Time Magazine 2015 Annual Report Download - page 61

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TIME WARNER INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION - (Continued)
Cash used by financing activities from continuing operations for the year ended December 31, 2014 increased
primarily due to higher Repurchases of common stock and lower Proceeds from the exercise of stock options, partially offset
by an increase in Borrowings and lower Debt repayments. During the year ended December 31, 2014, the Company issued
approximately 10 million shares of common stock and received $338 million in connection with the exercise of stock
options.
Cash Flows from Discontinued Operations
Cash flows from discontinued operations principally related to the Company’s former Time Inc. segment. Details of
Cash provided (used) by discontinued operations are as follows (millions):
Year Ended December 31,
2015 2014 2013
Cash provided (used) by operations from discontinued operations ...... $ (8) $ (16) $ 456
Cash used by investing activities from discontinued operations ........ — (51) (23)
Cash used by financing activities from discontinued operations ........ — (36) —
Effect of change in cash and equivalents of discontinued operations .... — (87) 35
Cash provided (used) by discontinued operations ................... $ (8) $ (190) $ 468
Outstanding Debt and Other Financing Arrangements
Outstanding Debt and Committed Financial Capacity
At December 31, 2015, Time Warner had total committed capacity, defined as maximum available borrowings under
various existing debt arrangements and cash and short-term investments, of $31.001 billion. Of this committed capacity,
$7.177 billion was unused and $23.792 billion was outstanding as debt. At December 31, 2015, total committed capacity,
outstanding letters of credit, outstanding debt and total unused committed capacity were as follows (millions):
Committed
Capacity (a)
Letters of
Credit (b)
Outstanding
Debt (c)
Unused
Committed
Capacity
Cash and equivalents ........................... $ 2,155 $ — $ — $ 2,155
Revolving credit facilities and commercial paper
program (d) ................................. 5,000 — — 5,000
Fixed-rate public debt ........................... 23,572 — 23,572 —
Other obligations (e) ............................ 274 32 220 22
Total ........................................ $ 31,001 $ 32 $ 23,792 $ 7,177
(a) The revolving credit facilities, commercial paper program and public debt of the Company rank pari passu with the senior debt of the respective
obligors thereon. The weighted average maturity of the Company’s outstanding debt and other financing arrangements was 13.6 years as of
December 31, 2015.
(b) Represents the portion of committed capacity, including from bilateral letter of credit facilities, reserved for outstanding and undrawn letters of credit.
(c) Represents principal amounts adjusted for premiums and discounts. At December 31, 2015, the principal amounts of the Company’s publicly issued
debt mature as follows: $150 million in January 2016, $500 million in 2017, $600 million in 2018, $650 million in 2019, $1.400 billion in 2020 and
$20.501 billion thereafter. In the period after 2020, no more than $2.0 billion will mature in any given year.
(d) The revolving credit facilities consist of two $2.5 billion revolving credit facilities that mature in December 2020. The Company may issue unsecured
commercial paper notes up to the amount of the unused committed capacity under the revolving credit facilities.
(e) Unused committed capacity includes committed financings of subsidiaries under local bank credit agreements. Other debt obligations totaling $48
million are due within the next twelve months.
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