SEC Filings

S-4/A
TIME WARNER INC. filed this Form S-4/A on 03/24/2000
Entire Document
 
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  .  a pretax charge of approximately $210 million principally to reduce the
     carrying value of an interest in Primestar, Inc.; and     
     
  .  an increase in preferred dividend requirements of approximately $234
     million relating to the premium paid in connection with Time Warner's
     redemption of its series M preferred stock.     
      
   For 1997, significant and nonrecurring items included:     
     
  .  net pretax gains of approximately $212 million relating to the sale or
     exchange of cable television systems and investments;     
     
  .  a pretax gain of approximately $200 million relating to the disposal of
     an interest in Hasbro, Inc. and the related redemption of certain
     mandatorily redeemable preferred securities of a subsidiary;     
     
  .  a pretax gain of approximately $250 million relating to the sale of an
     interest in E! Entertainment Television, Inc.; and     
     
  .  an extraordinary loss of approximately $55 million on the retirement of
     debt.     
 
   For 1996, significant and nonrecurring items included an extraordinary loss
of approximately $35 million on the retirement of debt.
      
   For 1995, significant and nonrecurring items included:     
     
  .  pretax losses of approximately $85 million relating to certain
     businesses and joint ventures owned by Time Warner's music division that
     were either restructured or closed; and     
     
  .  an extraordinary loss of approximately $42 million on the retirement of
     debt.     
 
   To assess meaningfully underlying operating trends from period to period,
Time Warner's management believes that the results of operations for each
period should be analyzed after excluding the effects of these significant
nonrecurring items. The following summary adjusts Time Warner's historical
operating results to exclude the impact of these unusual items. However,
unusual items may occur in any period. Accordingly, investors and other
financial statement users individually should consider the types of events and
transactions for which adjustments have been made.
 

<TABLE>   
<CAPTION>
                                           Years Ended December 31,
                         -------------------------------------------------------------
                                     1998
                            1999     Pro      1998       1997       1996       1995
                         Historical Forma  Historical Historical Historical Historical
                         ---------- ------ ---------- ---------- ---------- ----------
                                    (in millions, except per share amounts)
<S>                      <C>        <C>    <C>        <C>        <C>        <C>
Adjusted business
 segment operating
 income.................   $3,582   $3,024   $1,478     $1,259     $  966     $  782
Adjusted EBITDA.........    6,111    5,659    2,656      2,553      1,954      1,341
</TABLE>
    
 
Balance Sheet Data:
 

<TABLE>   
<CAPTION>
                                                    December 31,
                          ----------------------------------------------------------------
                             1999      1998       1998       1997       1996       1995
                          Historical Pro Forma Historical Historical Historical Historical
                          ---------- --------- ---------- ---------- ---------- ----------
                                                   (in millions)
<S>                       <C>        <C>       <C>        <C>        <C>        <C>
Cash and equivalents....   $ 1,284    $   529   $   442    $   645    $   514    $ 1,185
Total assets............    51,239     47,951    31,640     34,163     35,064     22,132
Debt due within one
 year...................        22         25        19          8         11         34
Long-term debt and other
 obligations(/1/).......    19,901     19,190    12,395     12,941     14,150     10,856
Series M preferred
 stock..................       --         --        --       1,857      1,672        --
Shareholders' equity:
 Preferred stock
  liquidation
  preference............       840      2,260     2,260      3,539      3,559      2,994
 Equity applicable to
  common stock..........     8,873      6,592     6,592      5,817      5,943        673
 Total shareholders'
  equity................     9,713      8,852     8,852      9,356      9,502      3,667
Total capitalization....    29,636     28,067    21,266     24,162     25,335     14,557
</TABLE>
    
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(/1/) Long-term debt and other obligations include borrowings against future
      stock option proceeds and mandatorily redeemable preferred securities of
      subsidiaries.     
 
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