SEC Filings

10-Q
TIME WARNER INC. filed this Form 10-Q on 08/02/2017
Entire Document
 


Table of Contents

TIME WARNER INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS

OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION – (Continued)

 

Warner Bros.  Revenues and Operating Income of the Warner Bros. segment for the three and six months ended June 30, 2017 and 2016 are as follows (millions):

 

                                                                                                                                                     
     Three Months Ended June 30,    Six Months Ended June 30,
     2017   2016  

     % Change     

   2017   2016  

     % Change     

Revenues:

             

Theatrical product

   $ 1,351     $ 1,087     24%    $ 2,728     $ 2,321     18%

Television product

     1,151       1,203     (4)%      2,826       2,628     8%

Videogames and
other

     486       368     32%      799       818     (2)%
  

 

 

 

 

 

 

 

    

 

 

 

 

 

 

 

 

Total revenues

     2,988       2,658     12%      6,353       5,767     10%

Costs of revenues (a)

     (2,189     (1,916   14%      (4,520     (4,072   11%

Selling, general and
administrative (a)

     (492     (434   13%      (948     (873   9%

Gain on operating
assets

           91     NM      1       91     (99)%

Asset impairments

     (1         NM      (2     (1   100%

Restructuring and
severance costs

           (4   NM      (9     (5   80%

Depreciation

     (45     (48   (6)%      (89     (96   (7)%

Amortization

     (38     (39   (3)%      (75     (79   (5)%
  

 

 

 

 

 

 

 

    

 

 

 

 

 

 

 

 

Operating Income

   $          223     $          308     (28)%    $          711     $          732     (3)%
  

 

 

 

 

 

 

 

    

 

 

 

 

 

 

 

 
                                                                                                                                                     

 

(a)         Costs of revenues and Selling, general and administrative expenses exclude depreciation.

 

Revenues primarily relate to theatrical product (which is content made available for initial exhibition in theaters) and television product (which is content made available for initial airing on television or OTT services). The components of Revenues for the three and six months ended June 30, 2017 and 2016 are as follows (millions):

 

                                                                                                                                                     
     Three Months Ended June 30,    Six Months Ended June 30,
     2017    2016   

     % Change     

   2017    2016   

     % Change     

Theatrical product:

                 

Film rentals

   $ 544      $ 442      23%    $ 987      $ 809      22%

Home video and
electronic delivery

     343        221      55%      711        542      31%

Television licensing

     403        363      11%      888        838      6%

Consumer products
and other

     61        61      —%      142        132      8%
  

 

 

 

  

 

 

 

     

 

 

 

  

 

 

 

  

Total theatrical product

   $ 1,351      $ 1,087      24%    $ 2,728      $ 2,321      18%
  

 

 

 

  

 

 

 

     

 

 

 

  

 

 

 

  

Television product:

                 

Television licensing

     977        1,013      (4)%      2,467        2,251      10%

Home video and
electronic delivery

     78        85      (8)%      165        179      (8)%

Consumer products
and other

     96        105      (9)%      194        198      (2)%
  

 

 

 

  

 

 

 

     

 

 

 

  

 

 

 

  

Total television product

   $         1,151      $         1,203      (4)%    $         2,826      $         2,628      8%
  

 

 

 

  

 

 

 

     

 

 

 

  

 

 

 

  

 

13