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)

 

Financing Activities

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

 

                                                                                                                   
               Nine Months Ended September 30,  
               2017     2016  

Borrowings

         $   —      $   942   

Debt repayments

           (1,396     (304

Proceeds from the exercise of stock options

           167        127   

Excess tax benefit from equity instruments

           —        59   

Principal payments on capital leases

           (32     (11

Repurchases of common stock

           —        (2,119

Dividends paid

           (948     (954

Other financing activities

           (124     (122
        

 

 

   

 

 

 

Cash used by financing activities from continuing operations

         $ (2,333   $ (2,382
        

 

 

   

 

 

 

Cash used by financing activities for the nine months ended September 30, 2017 decreased primarily due to the impact of the discontinuation of share repurchases under the stock repurchase program in connection with the Company’s entry into the Merger Agreement, partially offset by an increase in Debt repayments and a decrease in Borrowings.

Outstanding Debt and Other Financing Arrangements

Outstanding Debt and Committed Financial Capacity

At September 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 $30.720 billion. Of this committed capacity, $7.639 billion was unused and $23.055 billion was outstanding as debt. At September 30, 2017, total committed capacity, outstanding letters of credit, outstanding debt and total unused committed capacity were as follows (millions):

 

                                                                                                                           
     Committed
Capacity (a)
     Letters of
Credit (b)
     Outstanding
Debt (c)
     Unused
Committed
Capacity
 

Cash and equivalents

   $ 2,621       $ —       $ —       $ 2,621   

Revolving credit facilities and commercial paper program (d)

     5,000         —         —         5,000   

Fixed-rate public debt

     22,835         —         22,835         —   

Other obligations (e)

     264         26         220         18   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 30,720       $ 26       $ 23,055       $ 7,639   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(a)

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 11.3 years as of September 30, 2017.

(b)

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

(c)

Represents principal amounts adjusted for premiums and discounts and $97 million of unamortized debt issuance costs. At September 30, 2017, the principal amounts of the Company’s publicly issued debt mature as follows: $500 million in October 2017, $600 million in 2018, $650 million in 2019, $1.4 billion in 2020, $2.0 billion in 2021, $1.0 billion in 2022 and $16.868 billion thereafter. In the period after 2022, no more than $2.0 billion will mature in any given year.

(d)

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.

(e)

Unused committed capacity includes committed financings of subsidiaries under local bank credit agreements. Other debt obligations totaling $57 million are due within the next twelve months.

 

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