Time Magazine 2015 Annual Report Download - page 63

Download and view the complete annual report

Please find page 63 of the 2015 Time Magazine annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 140

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140

TIME WARNER INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION - (Continued)
Commercial Paper Program
The Company has a commercial paper program, which was established on February 16, 2011 on a private placement
basis, under which Time Warner may issue unsecured commercial paper notes up to a maximum aggregate amount not to
exceed the unused committed capacity under the Revolving Credit Facilities, which support the commercial paper program.
Additional Information
The obligations of each of the borrowers under the Revolving Credit Facilities and the obligations of Time Warner
under the commercial paper program and the Company’s outstanding publicly issued debt are directly or indirectly
guaranteed on an unsecured basis by Historic TW, Home Box Office and Turner (other than $1 billion of debt publicly issued
by Time Warner in 2006, which is not guaranteed by Home Box Office). See Note 8, “Long-Term Debt and Other Financing
Arrangements,” to the accompanying consolidated financial statements for additional information regarding the Company’s
outstanding debt and other financing arrangements, including certain information about maturities, interest rates, covenants,
rating triggers and bank credit agreement leverage ratios relating to such debt and financing arrangements.
Contractual and Other Obligations
Contractual Obligations
In addition to the financing arrangements discussed above, the Company has obligations under certain contractual
arrangements to make future payments for goods and services. These contractual obligations secure the future rights to
various assets and services to be used in the normal course of operations. For example, the Company is contractually
committed to make certain minimum lease payments for the use of property under operating lease agreements. In accordance
with applicable accounting rules, the future rights and obligations pertaining to certain firm commitments, such as operating
lease obligations and certain purchase obligations under contracts, are not reflected as assets or liabilities in the
accompanying Consolidated Balance Sheet.
The following table summarizes the Company’s aggregate contractual obligations at December 31, 2015, and the
estimated timing and effect that such obligations are expected to have on the Company’s liquidity and cash flows in future
periods (millions):
Contractual Obligations (a)(b)(c)
Total 2016 2017-2018 2019-2020 Thereafter
Purchase obligations:
Network programming obligations (d) . . . $ 23,478 $ 3,120 $ 5,588 $ 4,984 $ 9,786
Creative talent and employment
agreements (e) .................... 2,099 1,200 732 94 73
Other purchase obligations (f) ......... 1,277 581 364 183 149
Total purchase obligations .............. 26,854 4,901 6,684 5,261 10,008
Outstanding debt obligations (Note 8) ..... 23,969 187 1,231 2,050 20,501
Interest (Note 8) ...................... 19,641 1,318 2,585 2,431 13,307
Capital lease obligations (Note 8) ......... 61 14 23 17 7
Operating lease obligations (Note 16) ..... 1,260 314 575 217 154
Total contractual obligations ............ $ 71,785 $ 6,734 $ 11,098 $ 9,976 $ 43,977
(a) The table does not include the effects of arrangements that are contingent in nature such as guarantees and other contingent commitments (Note 16).
(b) The table does not include the Company’s reserve for uncertain tax positions and related accrued interest and penalties, which at December 31, 2015
totaled $1.701 billion, as the specific timing of any cash payments relating to this obligation cannot be projected with reasonable certainty.
49