SEC Filings

S-4/A
TIME WARNER INC. filed this Form S-4/A on 03/24/2000
Entire Document
 
<PAGE>
 
   
  Significant Events Affecting the Time Warner Entertainment Group's Operating
Trends. The comparability of the entertainment group's operating results is
affected by certain significant and nonrecurring items recognized in certain
periods. For 1999, these items included:     
     
  .  net pretax gains of approximately $2.119 billion relating to the sale or
     exchange of cable television systems and investments;     
     
  .  an approximate $215 million net pretax gain recognized in connection
     with the early termination of a long-term, home video distribution
     agreement;     
     
  .  an approximate $97 million pretax gain recognized in connection with the
     sale of an interest in CanalSatellite, a satellite television platform
     serving France and Monaco; and     
     
  .  a noncash pretax charge of approximately $106 million relating to Warner
     Bros.'s retail stores.     
      
   For 1998, significant and nonrecurring items included:     
     
  .  net pretax gains of approximately $90 million relating to the sale or
     exchange of cable television systems and investments; and     
     
  .  a pretax charge of approximately $210 million principally to reduce the
     carrying value of an interest in Primestar.     
      
   For 1997, significant and nonrecurring items included:     
     
  .  net pretax gains of approximately $200 million relating to the sale or
     exchange of cable television systems and investments;     
     
  .  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 $23 million on the retirement of
     debt. For 1995, significant and nonrecurring items included an
     extraordinary loss of approximately $24 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 the entertainment group'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,
                                              ---------------------------------
                                               1999   1998   1997   1996  1995
                                              ------ ------ ------ ------ -----
                                                        (in millions)
<S>                                           <C>    <C>    <C>    <C>    <C>
Adjusted business segment operating income... $1,902 $1,634 $1,261 $1,090 $ 992
Adjusted EBITDA..............................  3,266  3,070  2,647  2,334 2,052
</TABLE>
    
 
Balance Sheet Data:
 

<TABLE>   
<CAPTION>
                                                    December 31,
                                       ---------------------------------------
                                        1999    1998    1997    1996    1995
                                       ------- ------- ------- ------- -------
                                                    (in millions)
<S>                                    <C>     <C>     <C>     <C>     <C>
Cash and equivalents.................. $   517 $    87 $   322 $   216 $   209
Total assets..........................  24,843  22,241  20,739  20,027  18,960
Debt due within one year..............       6       6       8       7      47
Long-term debt and other
 obligations(/1/).....................   6,655   6,795   6,223   5,676   6,137
Time Warner General Partners' Senior
 Capital..............................      --     603   1,118   1,543   1,426
Partners' capital.....................   7,149   5,210   6,430   6,681   6,576
</TABLE>
    
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(/1/) Long-term debt and other obligations include preferred stock of a
   subsidiary.     
 
 
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