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)

 

the closing, and the awards will vest only on the scheduled vesting date or upon termination of employment under certain circumstances, such as termination without cause, for good reason or due to retirement.

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

 

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

Stock options

   $      $      $ 18       $ 34   

RSUs and PSUs

     51         39         160         167   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total impact on operating income

   $ 55       $ 45       $ 178       $ 201   
  

 

 

    

 

 

    

 

 

    

 

 

 

Tax benefit recognized

   $ 19       $ 15       $ 62       $ 70   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total unrecognized compensation cost related to unvested Time Warner stock options as of September 30, 2017, without taking into account expected forfeitures, is $33 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 September 30, 2017, without taking into account expected forfeitures, is $519 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 nine months ended September 30, 2017 and 2016 is as follows (millions):

 

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

Service cost

   $ —       $ —       $      $  

Interest cost

     15         21         47         64   

Expected return on plan assets

     (15)        (22)        (45)        (64)  

Amortization of prior service cost

                           

Amortization of net loss

                   11         13   

Settlements

     —         10         —         10   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net periodic benefit costs (a)

   $      $ 14       $ 16       $ 26   
  

 

 

    

 

 

    

 

 

    

 

 

 

Contributions

   $      $      $ 25       $ 23   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(a)

Excludes net periodic benefit costs related to discontinued operations of $3 million and $10 million for both the three and nine months ended September 30, 2017 and 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. In addition, net periodic benefit costs for the three and nine months ended September 30, 2016 also excludes $8 million of pension settlement charges related to businesses the Company previously disposed of. These amounts have been reflected in Discontinued Operations, net of tax, in the Consolidated Statement of Operations.

 

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