SEC Filings

S-4/A
TIME WARNER INC. filed this Form S-4/A on 03/24/2000
Entire Document
 
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                SELECTED HISTORICAL AND PRO FORMA FINANCIAL DATA
 
   The following tables present (1) selected historical financial data of
America Online, (2) selected historical financial data of Time Warner and (3)
selected unaudited pro forma consolidated financial data of AOL Time Warner,
which reflect the merger.
 
                                 AMERICA ONLINE
 
                       Selected Historical Financial Data
   
   The selected historical financial data of America Online has been derived
from the audited historical consolidated financial statements and related notes
of America Online for each of the years in the five-year period ended June 30,
1999 and the unaudited consolidated financial statements for the six months
ended December 31, 1999 and 1998, and have been adjusted to reflect the two-
for-one common stock split in November 1999. The historical data is only a
summary, and you should read it in conjunction with the historical financial
statements and related notes contained in the annual and quarterly reports of
America Online which have been incorporated by reference into this joint proxy
statement-prospectus.     
 

<TABLE>   
<CAPTION>
                              Six Months
                                 Ended
                             December 31,         Year Ended June 30,
                             ------------- ------------------------------------
                              1999   1998   1999   1998    1997    1996   1995
                             ------ ------ ------ ------  ------  ------ ------
                                   (in millions, except per share data)
<S>                          <C>    <C>    <C>    <C>     <C>     <C>    <C>
Statement of Operations Da-
 ta:
  Revenues.................  $3,088 $2,147 $4,777 $3,091  $2,197  $1,323 $  425
  Business segment
   operating income
   (loss)(/1/).............     597    231    529    (63)   (446)     86    (34)
  Interest and other, net..     197     21    638     30      10       5      3
  Net income (loss)........     455    191    762    (74)   (485)     35    (55)
  Net income (loss) per
   share
    Basic..................  $ 0.20 $ 0.10 $ 0.37 $(0.04) $(0.29) $ 0.02 $(0.05)
    Diluted................  $ 0.18 $ 0.08 $ 0.30 $(0.04) $(0.29) $ 0.02 $(0.05)
  Average common shares:
    Basic..................   2,240  2,007  2,081  1,850   1,676   1,501  1,175
    Diluted................   2,592  2,419  2,555  1,850   1,676   1,889  1,175
</TABLE>
    
--------
   
(/1/)  Business segment operating income (loss) reflects income (loss) from
  operations adjusted to exclude corporate related expenses.     

<TABLE>   
<CAPTION>
                                                              June 30,
                                       December 31, ----------------------------
                                           1999     1999  1998  1997  1996  1995
                                       ------------ ----- ----- ----- ----- ----
                                                           (in millions)
<S>                                    <C>          <C>   <C>   <C>   <C>   <C>
Balance Sheet Data:
  Cash and equivalents................    $2,535    $ 887 $ 677 $ 191 $ 177 $63
  Total assets........................    10,301    5,348 2,874 1,501 1,271 459
  Debt due within one year............        13        6     2     2     3   3
  Long-term debt......................     1,586      358   372    52    22  21
  Stockholders' equity................     6,251    3,033   996   610   707 242
</TABLE>
    
          
   Significant Events Affecting America Online's Operating Trends. The
comparability of America Online's operating results is affected by a number of
significant and nonrecurring items recognized in some periods. For the six
months ended December 31, 1999, America Online incurred special charges of $30
million related to the acquisition of Gateway.net subscribers and $5 million
related to mergers and a gain of $111 million related to investments. In fiscal
1999, America Online incurred special charges of $95 million related to mergers
and a restructuring, $25 million in transition costs and a net gain of $567
million related to the sale of investments in     
 
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