SEC Filings

10-Q
TIME WARNER INC. filed this Form 10-Q on 08/02/2017
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Table of Contents

TIME WARNER INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS

OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION – (Continued)

 

Income Tax Provision.  Income tax provision decreased to $452 million and $922 million for the three and six months ended June 30, 2017, respectively, from $472 million and $970 million for the three and six months ended June 30, 2016, respectively. The Company’s effective tax rate was 30% and 27% for the three and six months ended June 30, 2017, respectively, compared to 33% and 31% for the three and six months ended June 30, 2016, respectively. The decreases in the effective tax rate for the three and six months ended June 30, 2017 were primarily due to the impact of the Company’s adoption of the new share-based compensation accounting guidance relating to excess tax benefits recognized with respect to share-based awards and the expected utilization of certain tax attribute carryovers.

Income from Continuing Operations.  Income from continuing operations was $1.062 billion and $951 million for the three months ended June 30, 2017 and 2016, respectively. Excluding the items noted under “Transactions and Other Items Affecting Comparability” totaling $8 million of income and $78 million of expense for the three months ended June 30, 2017 and 2016, respectively, Income from continuing operations increased $25 million, primarily due to lower Interest expense, net. Basic and Diluted income from continuing operations per common share were $1.37 and $1.34, respectively, for the three months ended June 30, 2017 and were $1.21 and $1.20, respectively, for the six months ended June 30, 2016.

Income from continuing operations was $2.485 billion and $2.125 billion for the six months ended June 30, 2017 and 2016, respectively. Excluding the items noted under “Transactions and Other Items Affecting Comparability” totaling $124 million of income and $96 million of expense for the six months ended June 30, 2017 and 2016, respectively, Income from continuing operations increased $140 million, primarily due to higher Operating Income. Basic and Diluted income from continuing operations per common share were $3.20 and $3.15, respectively, for the six months ended June 30, 2017 and were $2.69 and $2.66, respectively, for the six months ended June 30, 2016.

Discontinued Operations, Net of Tax.  For the six months ended June 30, 2016, Discontinued operations, net of tax was income of $40 million, related to the recognition of additional tax benefits associated with certain foreign tax attributes of Warner Music Group (“WMG”), which the company disposed of in 2004. Both Basic and Diluted income from discontinued operations per common share were $0.05 for the six months ended June 30, 2016.

Net Income attributable to Time Warner shareholders.  Net income attributable to Time Warner shareholders was $1.062 billion and $2.486 billion for the three and six months ended June 30, 2017, respectively, and $952 million and $2.166 billion for the three and six months ended June 30, 2016, respectively. Basic and Diluted net income per common share were $1.37 and $1.34, respectively, for the three months ended June 30, 2017 and were $1.21 and $1.20, respectively, for the three months ended June 30, 2016. Basic and Diluted net income per common share were $3.20 and $3.15, respectively, for the six months ended June 30, 2017 and were $2.74 and $2.71, respectively, for the six months ended June 30, 2016.

 

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