SEC Filings

S-4
TIME WARNER INC. filed this Form S-4 on 02/11/2000
Entire Document
 
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                                  TIME WARNER
 
                       Selected Historical Financial Data
 
   The selected historical financial data of Time Warner have been derived from
the audited historical consolidated financial statements and related notes of
Time Warner for each of the years in the five-year period ended December 31,
1998 and the unaudited consolidated financial statements for the nine months
ended September 30, 1999 and 1998. The historical data are only a summary, and
you should read them in conjunction with the historical financial statements
and related notes contained in the annual and quarterly reports of Time Warner
which have been incorporated by reference into this joint proxy statement-
prospectus.
 
   The selected historical financial data for the nine months ended September
30, 1999 reflect the consolidation of TWE and its related companies,
retroactive to the beginning of 1999. We refer to TWE and its related companies
as the "entertainment group." The selected historical financial data for all
prior periods have not been changed. However, in order to enhance
comparability, pro forma financial information for 1998 reflecting the
consolidation of the entertainment group has been presented.
 
   The selected historical financial data for 1998 reflect (a) the transfer of
cable television systems (or interests therein) serving approximately 650,000
subscribers that were formerly owned by subsidiaries of Time Warner to the TWE-
Advance Newhouse Partnership, subject to approximately $1 billion of debt, in
exchange for common and preferred interests in the partnership, as well as
related transactions, which we refer to as the "TWE-A/N Transfers" and (b) the
redemption of Time Warner's series M preferred stock at an aggregate cost of
approximately $2.1 billion, using proceeds from the issuance of lower-cost
debt.
 
   The selected historical financial data for 1996 reflect (a) the use of
approximately $1.55 billion of net proceeds from the issuance of Time Warner's
series M preferred stock to reduce outstanding indebtedness and (b) the
acquisitions of Turner Broadcasting System, Inc. and Cablevision Industries
Corporation and related companies, resulting in (i) the issuance of an
aggregate 6.3 million shares of Time Warner preferred stock having a total
liquidation preference of $633 million and 365.4 million shares of Time Warner
common stock and (ii) the assumption or incurrence of approximately $4.8
billion of indebtedness.
 
   The selected historical financial information for 1995 reflect (a) Time
Warner's acquisitions of KBLCOM Incorporated and Summit Communications Group,
Inc. and (b) the exchange by Toshiba Corporation and ITOCHU Corporation of
their direct and indirect interests in TWE, resulting in (i) the issuance of an
aggregate 29.3 million shares of Time Warner preferred stock having a total
liquidation preference of $2.926 billion and 5.2 million shares of Time Warner
common stock and (ii) the assumption or incurrence of approximately $1.3
billion of indebtedness.
 
   Per common share amounts and average common shares have been restated to
give effect to the two-for-one common stock split that occurred on December 15,
1998.
 
 
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