SEC Filings

S-4/A
TIME WARNER INC. filed this Form S-4/A on 03/24/2000
Entire Document
 
<PAGE>
 
   
   The final allocation of the purchase price will be determined after the
completion of the merger and will be based on a comprehensive final evaluation
of the fair value of Time Warner's tangible and identifiable intangible assets
acquired and liabilities assumed at the time of the merger. The preliminary
allocation is summarized in the following table:     
      
   Calculation of Purchase Price:     
 

<TABLE>   
<CAPTION>
                                                   (in millions)
         <S>                                       <C>
         Common stock.............................   $130,758
         Preferred stock..........................      3,557
         Stock options............................     11,376
         Transaction costs........................        300
                                                     --------
          Total purchase price....................   $145,991
                                                     ========
 
   Allocation of Purchase Price:
 
<CAPTION>
                                                   (in millions)
         <S>                                       <C>
         Assets:
           Time Warner's historical assets........   $ 51,239
           Eliminate Time Warner's historical
            goodwill..............................    (15,458)
           New goodwill...........................     94,736
           Other intangible assets................     95,000
         Liabilities:
           Time Warner's historical liabilities...    (41,526)
           Deferred income taxes..................    (38,000)
                                                     --------
          Total purchase price....................   $145,991
                                                     ========
</TABLE>
    
          
   A reconciliation of the above adjustments to reflect the merger is set forth
below:     
 

<TABLE>   
<CAPTION>
                                                                                                 Elimination
                           Issuance of              Elimination of Allocation of Elimination of       of
                          Common Stock    Increase  Time Warner's     Excess     AOL's Deferred Time Warner's    Total
                         Preferred Stock in Accrued   Historical     Purchase    Tax Valuation   Historical    Pro Forma
                           and Options    Expenses     Goodwill        Price       Allowance       Equity     Adjustments
                         --------------- ---------- -------------- ------------- -------------- ------------- -----------
                                                                  (in millions)
<S>                      <C>             <C>        <C>            <C>           <C>            <C>           <C>
Goodwill and other
 intangibles, net.......    $    --        $ --        $(15,458)     $189,736       $   --        $    --      $174,278
Total current
 liabilities............         --          300            --            --            --             --           300
Deferred income taxes...         --          --             --         38,000        (3,235)           --        34,765
Preferred stock.........           1         --             --            --            --              (1)         --
Series LMCN-V common
 stock..................           1         --             --            --            --              (1)         --
Common stock............          18         --             --            --            --             (12)           6
Paid in capital.........     145,671         --             --            --          3,235        (12,998)     135,908
Accumulated earnings
 (deficit)..............         --          --             --            --            --           3,350        3,350
Accumulated other
 comprehensive income...         --          --             --            --            --             (51)         (51)
</TABLE>
    
       
       
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