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)

 

Current Financial Condition

At June 30, 2017, Time Warner had $22.998 billion of debt and $1.705 billion of Cash and equivalents, resulting in net debt of $21.293 billion, compared to $24.339 billion of debt and $1.539 billion of Cash and equivalents, or net debt of $22.800 billion, at December 31, 2016. At June 30, 2017, Total equity was $25.989 billion compared to $24.337 billion at December 31, 2016.

The following table shows the significant items contributing to the decrease in net debt from December 31, 2016 to June 30, 2017 (millions):

 

Balance at December 31, 2016

   $           22,800  

Cash provided by operations

     (2,453

Capital expenditures

     202  

Dividends paid to common stockholders

     632  

Investments and acquisitions, net of cash acquired, including available-for-sale securities

     360  

Proceeds from the exercise of stock options

     (100

Other investment proceeds, including available-for-sale securities

     (336

All other, net

     188  
  

 

 

 

Balance at June 30, 2017

   $ 21,293  
  

 

 

 

Cash Flows

For the six months ended June 30, 2017 and 2016, Cash and equivalents increased by $166 million and $341 million, respectively. Components of these changes are discussed below in more detail.

Operating Activities

Details of Cash provided by operations are as follows (millions):

 

     Six Months Ended June 30,
     2017   2016

Operating Income

   $ 3,768     $             3,842  

Depreciation and amortization

     334       336  

Net interest payments (a)

     (505     (594

Net income taxes paid (b)

     (791     (668

All other, net, including working capital changes

     (353     (950
  

 

 

 

 

 

 

 

Cash provided by operations

   $             2,453     $ 1,966  
  

 

 

 

 

 

 

 

 

 

(a)

Includes cash interest received of $38 million and $82 million for the six months ended June 30, 2017 and 2016, respectively.

(b)

Includes income tax refunds received of $19 million and $18 million for the six months ended June 30, 2017 and 2016, respectively.

Cash provided by operations for the six months ended June 30, 2017 increased primarily due to a decrease in cash used by working capital, which was mainly due to changes in accounts receivable reflecting higher cash collections and the timing of production spending. For the six months ended June 30, 2016, all other net, including working capital changes was favorably impacted by approximately $280 million related to CME’s repayment of its senior secured notes and the term loan Time Warner provided CME in 2014.

 

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