|TIME WARNER INC. filed this Form 10-Q on 10/26/2017|
TIME WARNER INC.
MANAGEMENTS DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION (Continued)
Corporate. Corporates Operating Loss for the three and nine months ended September 30, 2017 and 2016 was as follows (millions):
Refer to Transactions and Other Items Affecting Comparability for a discussion of Asset impairments, costs related to the AT&T merger and external costs related to mergers, acquisitions and dispositions for the three and nine months ended September 30, 2017 and 2016, which affected the comparability of Corporates results.
For the three months ended September 30, 2017, Operating loss decreased primarily due to lower equity-based compensation expense, partially offset by costs related to the AT&T merger of $19 million. For the nine months ended September 30, 2017, Operating loss increased primarily due to costs related to the AT&T merger of $75 million, partially offset by lower equity-based compensation expense and lower costs of $14 million primarily related to technology initiatives. In addition, the results for the three and nine months ended September 30, 2016 included $10 million of pension settlement charges.
FINANCIAL CONDITION AND LIQUIDITY
Management believes that cash generated by or available to the Company should be sufficient to fund its capital and liquidity needs for the foreseeable future, including scheduled debt repayments and quarterly dividend payments. Time Warners sources of cash include Cash provided by operations, Cash and equivalents on hand, available borrowing capacity under its committed credit facilities and commercial paper program and access to capital markets. Time Warners unused committed capacity at September 30, 2017 was $7.639 billion, which included $2.621 billion of Cash and equivalents.
Current Financial Condition
At September 30, 2017, Time Warner had $23.055 billion of debt and $2.621 billion of Cash and equivalents, resulting in net debt of $20.434 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 September 30, 2017, Total equity was $27.268 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 September 30, 2017 (millions):