SEC Filings

WARNER MEDIA, LLC filed this Form S-4/A on 03/24/2000
Entire Document
                       Selected Historical Financial Data
   Since 1993, the entertainment group had not been consolidated by Time Warner
for financial reporting purposes because a subsidiary of MediaOne Group, which
is a limited partner of TWE, had rights that allowed it to participate in the
management of TWE's businesses. However, in August 1999, MediaOne's management
rights over TWE terminated. As a result, retroactive to the beginning of 1999,
the entertainment group has been consolidated by Time Warner.
   The selected financial data of the entertainment group has been derived from
and should be read in conjunction with the Time Warner selected financial data
previously presented and the consolidated financial statements and other
financial data of TWE contained in Time Warner's Annual Report on Form 10-K for
the year ended December 31, 1999. The historical financial data is only a
summary and you should read it in conjunction with the historical financial
statements of Time Warner and TWE, which have been incorporated by reference in
this joint proxy statement-prospectus.     
   The selected historical financial data for 1998 reflects:     
  .  the TWE-A/N Transfers effective as of January 1, 1998;     
  .  the transfer of Time Warner Cable's direct broadcast satellite
     operations to Primestar, Inc. effective as of April 1, 1998;     
  .  the formation of the Road Runner joint venture to operate and expand
     Time Warner Cable's and MediaOne's existing high-speed online
     businesses, effective as of June 30, 1998;     
  .  the reorganization of Time Warner Cable's business telephony operations
     into a separate entity now named Time Warner Telecom Inc., effective as
     of July 1, 1998; and     
  .  the formation of a joint venture in Texas that owns cable television
     systems serving approximately 1.1 million subscribers, effective as of
     December 31, 1998.     
   The selected historical financial data for 1995 reflects:     
  .  the formation of the TWE-Advance Newhouse Partnership, effective as of
     April 1, 1995;     
  .  the consolidation of Paragon Communications, effective as of July 6,
     1995; and     
  .  the deconsolidation of Six Flags Entertainment Corporation resulting
     from the disposition by TWE of a 51% interest in Six Flags, effective as
     of June 23, 1995.     
Statements of Operations and Cash Flows Data:     

                                Years Ended December 31,
                          1999     1998     1997     1996     1995
                         -------  -------  -------  -------  ------
                                     (in millions)
<S>                      <C>      <C>      <C>      <C>      <C>
Revenues................ $13,164  $12,256  $11,328  $10,861  $9,629
Business segment
 operating income.......   4,227    1,724    1,461    1,090     992
Interest and other,
 net....................    (818)    (945)    (338)    (524)   (539)
Income before
 extraordinary item.....   2,759      331      642      220     170
Net income..............   2,759      331      619      220     146
Cash provided by
 operations.............   2,713    2,288   (1,799)   1,912   1,495
Cash used by investing
 activities.............    (605)    (745)  (1,217)  (1,253)   (750)
Cash used by financing
 activities.............  (1,678)  (1,778)    (476)    (652) (1,607)
EBITDA(/1/).............   5,591    3,160    2,847    2,334   2,052
(/1/)EBITDA consists of business segment operating income (loss) before
     depreciation and amortization. Time Warner considers EBITDA to be an
     important indicator of the operational strength and performance of its
     businesses, including the ability to provide cash flows to service debt
     and fund capital expenditures. EBITDA, however, should not be considered
     an alternative to operating or net income as an indicator of the
     performance of Time Warner, or as an alternative to cash flows from
     operating activities as a measure of liquidity, in each case determined in
     accordance with generally accepted accounting principles. In addition,
     this definition of EBITDA may not be comparable to similarly titled
     measures reported by other companies.