|WARNER MEDIA, LLC filed this Form 10-Q on 08/02/2017|
TIME WARNER INC.
MANAGEMENTS DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION (Continued)
Outstanding Debt and Other Financing Arrangements
Outstanding Debt and Committed Financial Capacity
At June 30, 2017, Time Warner had total committed capacity, defined as maximum available borrowings under various existing debt arrangements and cash and short-term investments, of $29.749 billion. Of this committed capacity, $6.723 billion was unused and $22.998 billion was outstanding as debt. At June 30, 2017, total committed capacity, outstanding letters of credit, outstanding debt and total unused committed capacity were as follows (millions):
Programming Licensing Backlog
Programming licensing backlog represents the amount of future revenues not yet recorded from cash contracts for the worldwide licensing of theatrical and television product for premium cable, basic cable, network and syndicated television and OTT exhibition. Backlog was $7.0 billion and $6.8 billion at June 30, 2017 and December 31, 2016, respectively. Included in the backlog amounts is licensing of theatrical and television product from the Warner Bros. segment to the Turner segment in the amount of $1.001 billion and $942 million at June 30, 2017 and December 31, 2016, respectively. Also included in the backlog amounts is licensing of theatrical product from the Warner Bros. segment to the Home Box Office segment in the amount of $652 million and $689 million at June 30, 2017 and December 31, 2016, respectively.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often include words such as anticipates, estimates, expects, projects, intends, plans, believes and words and terms of similar substance in connection with discussions of future operating or financial performance. Examples of the forward-looking statements in this report include, but are not limited to, the statements regarding (i) the number of original series Warner Bros. expects to produce for the 2017/2018 season; (ii) the expected timing of the completion of the AT&T merger; (iii) the Companys expectations regarding the impact of the AT&T merger on the Companys efforts to spur innovation in the media industry and improve the consumer experience as well as its impact on the Companys strategy; and (iv) the expected increase in programming costs at the Home Box Office segment for the second half of 2017 as compared to the second half of 2016.
The Companys forward-looking statements are based on managements current expectations and assumptions regarding the Companys business and performance, the economy and other future conditions and forecasts of future events, circumstances and results. As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances. The Companys actual results may vary materially from those expressed or implied in its forward-looking statements.