SEC Filings

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


Table of Contents

TIME WARNER INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

 

The impact of equity-based compensation awards on Operating income is as follows (millions):

 

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

Stock options

   $ 7      $ 7      $ 14      $ 28  

RSUs and PSUs

     59        41        109        128  
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Total impact on operating income

   $ 66      $ 48      $ 123      $ 156  
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Tax benefit recognized

   $ 24      $ 17      $ 43      $ 55  
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Total unrecognized compensation cost related to unvested Time Warner stock options as of June 30, 2017, without taking into account expected forfeitures, is $39 million and is expected to be recognized over a weighted-average period of approximately one year. Total unrecognized compensation cost related to unvested RSUs and PSUs as of June 30, 2017, without taking into account expected forfeitures, is $566 million and is expected to be recognized over a weighted-average period between one and two years.

 

11.

BENEFIT PLANS

Components of Net Periodic Benefit Costs

A summary of the components of the net periodic benefit costs from continuing operations recognized for substantially all of Time Warner’s defined benefit pension plans for the three and six months ended June 30, 2017 and 2016 is as follows (millions):

 

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

Service cost

   $ 1     $ 1     $ 2     $ 2  

Interest cost

     16       21       32       43  

Expected return on plan assets

     (15     (21     (30     (42

Amortization of net loss

     4       5       7       9  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net periodic benefit costs (a)

   $ 6     $ 6     $ 11     $ 12  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contributions

   $ 7     $ 6     $ 17     $ 15  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

Excludes net periodic benefit costs related to discontinued operations of $4 million and $7 million for the three and six months ended June 30, 2017, respectively, and $3 million and $7 million for the three and six months ended June 30, 2016, respectively, primarily related to employees and former employees of Time Inc. These amounts have been reflected in Other income (loss), net in the Consolidated Statement of Operations.

 

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