SEC Filings

S-4
TIME WARNER INC. filed this Form S-4 on 02/11/2000
Entire Document
 
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  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 (a) net pretax gains of approximately
$1.118 billion relating to the sale or exchange of cable television systems and
investments and (b) a net pretax gain of approximately $215 million from the
early termination of a long-term video distribution agreement. For 1998,
significant and nonrecurring items included (a) net pretax gains of
approximately $90 million relating to the sale or exchange of cable television
systems and investments and (b) 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 (a) net pretax gains of
approximately $200 million relating to the sale or exchange of cable television
systems and investments, (b) a pretax gain of approximately $250 million
relating to the sale of an interest in E! Entertainment Television, Inc. and
(c) 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>
                            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>
Business segment operating
 income.................... $  1,393 $  1,204 $1,634 $1,261 $1,090 $ 992 $ 852
EBITDA.....................    2,391    2,289  3,070  2,647  2,334 2,052 1,811
</TABLE>

 
 
 
Balance Sheet Data:
 

<TABLE>
<CAPTION>
                           September 30,               December 31,
                          --------------- ---------------------------------------
                           1999    1998    1998    1997    1996    1995    1994
                          ------- ------- ------- ------- ------- ------- -------
                                               (in millions)
<S>                       <C>     <C>     <C>     <C>     <C>     <C>     <C>
Cash and equivalents....  $   235 $   125 $    87 $   322 $   216 $   209 $ 1,071
Total assets............   23,228  22,417  22,241  20,739  20,027  18,960  18,992
Debt due within one
 year...................        6       7       6       8       7      47      32
Long-term debt and other
 obligations(1).........    6,725   7,656   6,795   6,223   5,676   6,137   7,160
Time Warner General
 Partners' Senior
 Capital................      --      591     603   1,118   1,543   1,426   1,663
Partners' capital.......    6,342   5,854   5,210   6,430   6,681   6,576   6,491
</TABLE>

--------
(1) Long-term debt and other obligations include preferred stock of a
   subsidiary.
 
 
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