SEC Filings

TIME WARNER INC. filed this Form S-4 on 02/11/2000
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 have been derived
from and should be read in conjunction with the Time Warner selected financial
information previously presented, 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, 1998 and with the unaudited consolidated
condensed financial statements and other financial information of TWE contained
in Time Warner's Quarterly Report on Form 10-Q for the quarter ended
September 30, 1999. The historical financial information 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 reflect (a) the TWE-A/N
Transfers effective as of January 1, 1998, (b) the transfer of Time Warner
Cable's direct broadcast satellite operations to Primestar, Inc. effective as
of April 1, 1998, (c) 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, (d) 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 (e) 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 (a) formation of the TWE-
Advance Newhouse Partnership, effective as of April 1, 1995, (b) the
consolidation of Paragon Communications, effective as of July 6, 1995 and (c)
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,
Statement of Operations Data:

                         Nine Months Ended
                           September 30,           Years Ended December 31,
                         ------------------  -----------------------------------------
                           1999      1998     1998     1997     1996     1995    1994
                         --------  --------  -------  -------  -------  ------  ------
                                              (in millions)
<S>                      <C>       <C>       <C>      <C>      <C>      <C>     <C>
Revenues................ $  9,468  $  8,987  $12,256  $11,328  $10,861  $9,629  $8,509
Business segment
 operating income.......    2,726     1,294    1,724    1,461    1,090     992     852
Interest and other,
 net....................     (577)     (550)    (965)    (357)    (524)   (539)   (616)
Income before
 extraordinary item.....    1,640       437      331      642      220     170     136
Net income..............    1,640       437      331      619      220     146     136
EBITDA(1)...............    3,724     2,379    3,160    2,847    2,334   2,052   1,811

(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.