SEC Filings

WARNER MEDIA, LLC filed this Form 10-Q on 08/02/2017
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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):


Capacity (a)
   Letters of
Credit (b)
Debt (c)

Cash and equivalents

   $ 1,705      $      $      $ 1,705  

Revolving credit facilities and commercial paper program (d)

     5,000                      5,000  

Fixed-rate public debt

               22,775               22,775         

Other obligations (e)

     269        28        223        18  

















   $ 29,749      $                  28      $           22,998      $             6,723  


















The revolving credit facilities, commercial paper program and public debt of the Company rank pari passu with the senior debt of the respective obligors thereon. The weighted average maturity of the Company’s outstanding debt and other financing arrangements was 11.6 years as of June 30, 2017.


Represents the portion of committed capacity, including from bilateral letter of credit facilities, reserved for outstanding and undrawn letters of credit.


Represents principal amounts adjusted for premiums and discounts and $99 million of unamortized debt issuance costs. At June 30, 2017, the principal amounts of the Company’s publicly issued debt mature as follows: $500 million in 2017, $600 million in 2018, $650 million in 2019, $1.400 billion in 2020, $2.0 billion in 2021, $1.0 billion in 2022 and $16.812 billion thereafter. In the period after 2022, no more than $2.0 billion will mature in any given year.


The revolving credit facilities consist of two $2.5 billion revolving credit facilities. The Company may issue unsecured commercial paper notes up to the amount of the unused committed capacity under the revolving credit facilities.


Unused committed capacity includes committed financings of subsidiaries under local bank credit agreements. Other debt obligations totaling $55 million are due within the next twelve months.

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.


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 Company’s expectations regarding the impact of the AT&T merger on the Company’s efforts to spur innovation in the media industry and improve the consumer experience as well as its impact on the Company’s 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 Company’s forward-looking statements are based on management’s current expectations and assumptions regarding the Company’s 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 Company’s actual results may vary materially from those expressed or implied in its forward-looking statements.