SEC Filings

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


Table of Contents

TIME WARNER INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

 

8.

SHAREHOLDERS’ EQUITY

Comprehensive Income (Loss)

Comprehensive income (loss) is reported in the Consolidated Statement of Comprehensive Income and consists of Net income and other gains and losses affecting shareholders’ equity that, under GAAP, are excluded from Net income. For Time Warner, such items consist primarily of foreign currency translation gains (losses), unrealized gains and losses on certain derivative financial instruments and equity securities, and changes in benefit plan obligations.

The following summary sets forth the activity within Other comprehensive income (loss) (millions):

 

     Three Months Ended September 30, 2017      Nine Months Ended September 30, 2017  
     Pretax      Tax
(provision)
benefit
     Net of tax      Pretax      Tax
(provision)
benefit
     Net of tax  

Unrealized gains on foreign currency translation

   $          135       $          17       $          152       $          187       $ 30       $          217   

Unrealized gains on securities

            (2)                      (2)         

Unrealized losses on benefit obligations

     —         —         —         (64)                 23         (41)  

Reclassification adjustment for losses on benefit obligations realized in net income (a)

            (4)               27         (10)        17  

Unrealized losses on derivative financial
instruments

     (107)        26         (81)        (177)        51         (126)  

Reclassification adjustment for losses on derivative financial instruments realized in net income (b)

     63         (24)        39         80         (29)        51   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Other comprehensive income

   $ 105       $ 13       $ 118       $ 58       $ 63       $ 121   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
                 
                 
     Three Months Ended September 30, 2016      Nine Months Ended September 30, 2016  
     Pretax      Tax
(provision)
benefit
     Net of tax      Pretax      Tax
(provision)
benefit
     Net of tax  

Unrealized losses on foreign currency translation

   $ (45)      $      $ (38)      $ (54)      $ 12       $ (42)  

Unrealized losses on benefit obligations

     (224)     

 

        81 

 

     (143)        (198)                73         (125)  

Reclassification adjustment for losses on benefit obligations realized in net income (a)

             26         (9)                17                 43         (15)                28   

Unrealized gains (losses) on derivative financial instruments

            (2)               (11)               (8)  

Reclassification adjustment for gains on derivative financial instruments realized in net income (b)

     (8)               (5)        (34)        13         (21)  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Other comprehensive loss

   $ (247)      $ 80       $ (167)      $ (254)      $ 86      $ (168)  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a)

Pretax losses included in Selling, general and administrative expenses, with the exception of $8 million included in Discontinued operations, net of tax for the three and nine months ended September 30, 2016.

(b)

Pretax (gains) losses are included in Selling, general and administrative expenses, Costs of revenues and Other income (loss), net are as follows (millions):

 

     Three Months Ended September 30,      Nine Months Ended September 30,  
     2017      2016      2017      2016  

Selling, general and administrative expenses

   $             —       $             3       $      $             2   

Costs of revenues

     64         (12)                    76         (22)  

Other income (loss), net

     (1)               (1)        (14)  

 

37