SEC Filings

10-Q
TIME WARNER INC. filed this Form 10-Q on 10/26/2017
Entire Document
 


Table of Contents

TIME WARNER INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS

OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION – (Continued)

 

Cash Flows

For the nine months ended September 30, 2017 and 2016, Cash and equivalents increased by $1.082 billion and $153 million, respectively. Components of these changes are discussed below in more detail.

Operating Activities

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

 

                                                                 
     Nine Months Ended September 30,  
           2017                  2016        

Operating Income

   $      6,013       $      5,856   

Depreciation and amortization

     503         502   

Net interest payments (a)

     (853)        (903)  

Net income taxes paid (b)

     (1,092)        (695)  

All other, net, including working capital changes

     (624)        (1,226)  
  

 

 

    

 

 

 

Cash provided by operations

   $ 3,947       $ 3,534   
  

 

 

    

 

 

 

 

(a)

Includes cash interest received of $49 million and $110 million for the nine months ended September 30, 2017 and 2016, respectively.

(b)

Includes income tax refunds received of $23 million and $124 million for the nine months ended September 30, 2017 and 2016, respectively.

Cash provided by operations for the nine months ended September 30, 2017 increased primarily due to a decrease in cash used by working capital, mainly due to the timing and mix of production and programming spending, partially offset by higher net income taxes paid. For the nine months ended September 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.

Investing Activities

Details of Cash used by investing activities are as follows (millions):

 

                                                                 
     Nine Months Ended September 30,  
           2017                  2016        

Investments in available-for-sale securities

   $ (1)      $ (7)  

Investments and acquisitions, net of cash acquired:

     

Hulu

     (33)        (590)  

Hudson Yards development project

     (272)        (179)  

All other

     (205)        (206)  

Capital expenditures

     (362)        (270)  

Other investment proceeds, including available-for-sale securities

     341         253   
  

 

 

    

 

 

 

Cash used by investing activities

   $ (532)      $ (999)  
  

 

 

    

 

 

 

The decrease in Cash used by investing activities for the nine months ended September 30, 2017 was primarily due to decreases in investments and acquisitions, net of cash acquired and higher other investment proceeds, including available-for-sale securities, partially offset by higher capital expenditures. Other investment proceeds, including available-for-sale securities, for the nine months ended September 30, 2017 primarily related to the sale of the Turner segment’s interest in the joint venture that owns the Omni Atlanta hotel, and other investment proceeds, including available-for-sale securities, for the nine months ended September 30, 2016 primarily related to CME’s repayment of CME’s senior secured notes and the term loan Time Warner provided CME in 2014.

 

17