Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 19, 2015 | Jun. 30, 2014 |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | TIME WARNER INC. | ||
Entity Central Index Key | 1105705 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $58.28 | ||
Entity Common Stock, Shares Outstanding | 830,521,982 |
Consolidated_Balance_Sheet
Consolidated Balance Sheet (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets | ||
Cash and equivalents | $2,618 | $1,816 |
Receivables, less allowances of $1,152 and $1,383 | 7,720 | 7,305 |
Inventories | 1,700 | 1,648 |
Deferred income taxes | 184 | 369 |
Prepaid expenses and other current assets | 958 | 559 |
Current assets of discontinued operations | 0 | 834 |
Total current assets | 13,180 | 12,531 |
Noncurrent inventories and theatrical film and television production costs | 6,841 | 7,016 |
Investments, including available-for-sale securities | 2,326 | 2,009 |
Property, plant and equipment, net | 2,655 | 3,291 |
Intangible assets subject to amortization, net | 1,141 | 1,338 |
Intangible assets not subject to amortization | 7,032 | 7,043 |
Goodwill | 27,565 | 27,401 |
Other assets | 2,519 | 2,458 |
Noncurrent assets of discontinued operations | 0 | 4,912 |
Total assets | 63,259 | 67,999 |
Current liabilities | ||
Accounts payable and accrued liabilities | 7,507 | 6,754 |
Deferred revenue | 579 | 542 |
Debt due within one year | 1,118 | 66 |
Current liabilities of discontinued operations | 0 | 1,026 |
Total current liabilities | 9,204 | 8,388 |
Long-term debt | 21,376 | 20,061 |
Deferred income taxes | 2,204 | 2,287 |
Deferred revenue | 315 | 351 |
Other noncurrent liabilities | 5,684 | 6,324 |
Noncurrent liabilities of discontinued operations | 0 | 684 |
Commitments and Contingencies (Note 16) | ||
Equity | ||
Common stock, $0.01 par value, 1.652 billion and 1.652 billion shares issued and 832 million and 895 million shares outstanding | 17 | 17 |
Additional paid-in capital | 149,282 | 153,410 |
Treasury stock, at cost (820 million and 757 million shares) | -42,445 | -37,630 |
Accumulated other comprehensive loss, net | -1,164 | -852 |
Accumulated deficit | -81,214 | -85,041 |
Total Time Warner Inc. shareholders' equity | 24,476 | 29,904 |
Noncontrolling interests | 0 | 0 |
Total equity | 24,476 | 29,904 |
Total liabilities and equity | $63,259 | $67,999 |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Per Share data, unless otherwise specified | ||
Current assets | ||
Allowances | $1,152 | $1,383 |
Equity | ||
Time Warner common stock, par value | $0.01 | $0.01 |
Time Warner common stock, shares issued | 1,652 | 1,652 |
Time Warner common stock, shares outstanding | 832 | 895 |
Treasury stock, shares | 820 | 757 |
Consolidated_Statement_Of_Oper
Consolidated Statement Of Operations (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statement of Operations | |||
Revenues | $27,359 | $26,461 | $25,325 |
Costs of revenues | -15,875 | -14,935 | -14,575 |
Selling, general and administrative | -5,190 | -4,934 | -4,813 |
Amortization of intangible assets | -202 | -209 | -212 |
Restructuring and severance costs | -512 | -183 | -92 |
Asset impairments | -69 | -61 | -180 |
Gain (loss) on operating assets, net | 464 | 129 | 45 |
Operating income | 5,975 | 6,268 | 5,498 |
Interest expense, net | -1,169 | -1,189 | -1,251 |
Other income (loss), net | -127 | -111 | -214 |
Income from continuing operations before income taxes | 4,679 | 4,968 | 4,033 |
Income tax (provision) benefit | -785 | -1,614 | -1,370 |
Income from continuing operations | 3,894 | 3,354 | 2,663 |
Discontinued operations, net of tax | -67 | 337 | 259 |
Net income | 3,827 | 3,691 | 2,922 |
Less Net loss attributable to noncontrolling interests | 0 | 0 | 3 |
Net income attributable to Time Warner Inc. shareholders | 3,827 | 3,691 | 2,925 |
Amounts attributable to Time Warner Inc. shareholders | |||
Income from continuing operations | 3,894 | 3,354 | 2,666 |
Discontinued operations, net of tax | -67 | 337 | 259 |
Net income attributable to Time Warner Inc. shareholders | $3,827 | $3,691 | $2,925 |
Per share information attributable to Time Warner Inc. common shareholders: | |||
Basic income per common share from continuing operations | $4.49 | $3.63 | $2.77 |
Discontinued operations | ($0.07) | $0.36 | $0.28 |
Basic net income per common share | $4.42 | $3.99 | $3.05 |
Average basic common shares outstanding | 863.3 | 920 | 954.4 |
Diluted income per common share from continuing operations | $4.41 | $3.56 | $2.73 |
Discontinued operations | ($0.07) | $0.36 | $0.27 |
Diluted net income per common share | $4.34 | $3.92 | $3 |
Average diluted common shares outstanding | 882.6 | 942.6 | 976.3 |
Cash dividends declared per share of common stock | $1.27 | $1.15 | $1.04 |
Consolidated_Statement_Of_Comp
Consolidated Statement Of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Income and Comprehensive Income [Abstract] | |||
Net income | $3,827 | $3,691 | $2,922 |
Foreign currency translation: | |||
Unrealized gains (losses) occurring during the period | -228 | -22 | 51 |
Reclassification adjustment for (gains) losses realized in net income | 0 | -6 | 10 |
Change in foreign currency translation | -228 | -28 | 61 |
Securities: | |||
Unrealized gains (losses) occurring during the period | -4 | 13 | 1 |
Reclassification adjustment for (gains) losses realized in net income | -10 | 0 | 0 |
Change in securities | -14 | 13 | 1 |
Benefit obligations: | |||
Unrealized gains (losses) occurring during the period | -187 | 124 | -206 |
Reclassification adjustment for (gains) losses realized in net income | 19 | 22 | 18 |
Change in benefit obligations | -168 | 146 | -188 |
Derivative financial instruments: | |||
Unrealized gains (losses) occurring during the period | 8 | 27 | 3 |
Reclassification adjustment for (gains) losses realized in net income | -14 | -21 | -1 |
Change in derivative financial instruments | -6 | 6 | 2 |
Other comprehensive income (loss) | -416 | 137 | -124 |
Comprehensive income | 3,411 | 3,828 | 2,798 |
Less Comprehensive loss attributable to noncontrolling interests | 0 | 0 | 3 |
Comprehensive income attributable to Time Warner Inc. shareholders | $3,411 | $3,828 | $2,801 |
Consolidated_Statement_Of_Cash
Consolidated Statement Of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATIONS | |||
Net income | $3,827 | $3,691 | $2,922 |
Less Discontinued operations, net of tax | 67 | -337 | -259 |
Net income from continuing operations | 3,894 | 3,354 | 2,663 |
Adjustments for noncash and nonoperating items: | |||
Depreciation and amortization | 733 | 759 | 765 |
Amortization of film and television costs | 8,040 | 7,262 | 7,210 |
Asset impairments | 69 | 61 | 180 |
Venezuelan foreign currency loss | 173 | 0 | 0 |
(Gain) loss on investments and other assets, net | -464 | -65 | -10 |
Equity in losses of investee companies, net of cash distributions | 232 | 216 | 221 |
Equity-based compensation | 219 | 238 | 195 |
Deferred income taxes | 166 | 759 | -161 |
Changes in operating assets and liabilities, net of acquisitions: | |||
Receivables | -403 | -434 | -433 |
Inventories and film costs | -7,789 | -7,226 | -7,564 |
Accounts payable and other liabilities | 592 | -416 | 58 |
Other changes | -1,781 | -1,250 | -137 |
Cash provided by operations from continuing operations | 3,681 | 3,258 | 2,987 |
INVESTING ACTIVITIES | |||
Investments in available-for-sale securities | -30 | -27 | -37 |
Investments and acquisitions, net of cash acquired | -950 | -495 | -660 |
Capital expenditures | -474 | -568 | -609 |
Investment proceeds from available-for-sale securities | 25 | 33 | 1 |
Proceeds from Time Inc. in the Time Separation | 1,400 | 0 | 0 |
Proceeds from the sale of Time Warner Center | 1,264 | 0 | 0 |
Other investment proceeds | 148 | 170 | 85 |
Cash provided (used) by investing activities from continuing operations | 1,383 | -887 | -1,220 |
FINANCING ACTIVITIES | |||
Borrowings | 2,409 | 1,028 | 1,039 |
Debt repayments | -72 | -762 | -686 |
Proceeds from exercise of stock options | 338 | 674 | 1,107 |
Excess tax benefit from equity instruments | 179 | 179 | 83 |
Principal payments on capital leases | -11 | -9 | -11 |
Repurchases of common stock | -5,504 | -3,708 | -3,272 |
Dividends paid | -1,109 | -1,074 | -1,011 |
Other financing activities | -173 | -111 | -80 |
Cash provided (used) by financing activities from continuing operations | -3,943 | -3,783 | -2,831 |
Cash provided (used) by continuing operations | 1,121 | -1,412 | -1,064 |
Cash provided (used) by operations from discontinued operations | -16 | 456 | 455 |
Cash provided (used) by investing activities from discontinued operations | -51 | -23 | -26 |
Cash provided (used) by financing activities from discontinued operations | -36 | 0 | 0 |
Effect of change in cash and equivalents of discontinued operations | -87 | 35 | 14 |
Cash provided (used) by discontinued operations | -190 | 468 | 443 |
Effect of Venezuelan exchange rate changes on cash and equivalents | -129 | 0 | 0 |
INCREASE (DECREASE) IN CASH AND EQUIVALENTS | 802 | -944 | -621 |
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD | 1,816 | 2,760 | 3,381 |
CASH AND EQUIVALENTS AT END OF PERIOD | $2,618 | $1,816 | $2,760 |
Consolidated_Statement_Of_Equi
Consolidated Statement Of Equity (USD $) | Total | Common Stock | Paid-In Capital | Treasury Stock | Retained Earnings (Accumulated Deficit) | Time Warner Shareholders | Noncontrolling Interests |
In Millions | |||||||
BALANCE AT BEGINNING OF PERIOD at Dec. 31, 2011 | $29,954 | $17 | $156,113 | ($33,651) | ($92,522) | $29,957 | ($3) |
Net income | 2,922 | 0 | 0 | 0 | 2,925 | 2,925 | -3 |
Other comprehensive income (loss) attributable to Continuing Operations | -139 | 0 | 0 | 0 | -139 | -139 | 0 |
Other comprehensive income (loss) attributable to Discontinued Operations | 15 | 0 | 0 | 0 | 15 | 15 | 0 |
Cash dividends | -1,011 | 0 | -1,011 | 0 | 0 | -1,011 | 0 |
Common stock repurchases | -3,302 | 0 | 0 | -3,302 | 0 | -3,302 | 0 |
Noncontrolling interests of acquired businesses | 7 | 0 | 0 | 0 | 0 | 0 | 7 |
Amounts related primarily to stock options and restricted stock units | 1,351 | 0 | -525 | 1,876 | 0 | 1,351 | 0 |
BALANCE AT END OF PERIOD at Dec. 31, 2012 | 29,797 | 17 | 154,577 | -35,077 | -89,721 | 29,796 | 1 |
Net income | 3,691 | 0 | 0 | 0 | 3,691 | 3,691 | 0 |
Other comprehensive income (loss) attributable to Continuing Operations | 109 | 0 | 0 | 0 | 109 | 109 | 0 |
Other comprehensive income (loss) attributable to Discontinued Operations | 28 | 0 | 0 | 0 | 28 | 28 | 0 |
Cash dividends | -1,074 | 0 | -1,074 | 0 | 0 | -1,074 | 0 |
Common stock repurchases | -3,700 | 0 | 0 | -3,700 | 0 | -3,700 | 0 |
Noncontrolling interests of acquired businesses | -1 | 0 | 0 | 0 | 0 | 0 | -1 |
Amounts related primarily to stock options and restricted stock units | 1,054 | 0 | -93 | 1,147 | 0 | 1,054 | 0 |
BALANCE AT END OF PERIOD at Dec. 31, 2013 | 29,904 | 17 | 153,410 | -37,630 | -85,893 | 29,904 | 0 |
Net income | 3,827 | 0 | 0 | 0 | 3,827 | 3,827 | 0 |
Other comprehensive income (loss) attributable to Continuing Operations | -438 | 0 | 0 | 0 | -438 | -438 | 0 |
Other comprehensive income (loss) attributable to Discontinued Operations | 22 | 0 | 0 | 0 | 22 | 22 | 0 |
Amounts related to the Time Separation | -2,814 | 0 | -2,918 | 0 | 104 | -2,814 | 0 |
Cash dividends | -1,109 | 0 | -1,109 | 0 | 0 | -1,109 | 0 |
Common stock repurchases | -5,500 | 0 | 0 | -5,500 | 0 | -5,500 | 0 |
Noncontrolling interests of acquired businesses | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Amounts related primarily to stock options and restricted stock units | 584 | 0 | -101 | 685 | 0 | 584 | 0 |
BALANCE AT END OF PERIOD at Dec. 31, 2014 | $24,476 | $17 | $149,282 | ($42,445) | ($82,378) | $24,476 | $0 |
Description_of_Business_Basis_
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 1. DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||
Description of Business | |||||||||||
Time Warner Inc. (“Time Warner” or the “Company”) is a leading media and entertainment company, whose businesses include television networks, and film and TV entertainment. Time Warner classifies its operations into three reportable segments: Turner: consisting principally of cable networks and digital media properties; Home Box Office: consisting principally of premium pay television services domestically and premium pay and basic tier television services internationally; and Warner Bros.: consisting principally of television, feature film, home video and videogame production and distribution. | |||||||||||
Separation of Time Inc. | |||||||||||
On June 6, 2014 (the “Distribution Date”), the Company completed the legal and structural separation of the Company's Time Inc. segment from the Company (the “Time Separation”). The Time Separation was effected as a pro rata dividend of all shares of Time Inc. common stock held by Time Warner in a spin-off to Time Warner stockholders. With the completion of the Time Separation, the Company disposed of the Time Inc. segment in its entirety and ceased to consolidate its assets, liabilities and results of operations in the Company's consolidated financial statements. Accordingly, the Company has recast its financial information to present the financial position and results of operations of its former Time Inc. segment as discontinued operations in the consolidated financial statements for all periods presented. For a summary of discontinued operations, see Note 3. | |||||||||||
In connection with the Time Separation, the Company received $1.4 billion from Time Inc., consisting of proceeds relating to Time Inc.'s acquisition of the IPC publishing business in the U.K. from a wholly-owned subsidiary of Time Warner and a special dividend. | |||||||||||
Basis of Presentation | |||||||||||
Basis of Consolidation | |||||||||||
The consolidated financial statements include all of the assets, liabilities, revenues, expenses and cash flows of entities in which Time Warner has a controlling interest (“subsidiaries”). Intercompany accounts and transactions between consolidated entities have been eliminated in consolidation. | |||||||||||
Changes in Basis of Presentation | |||||||||||
The 2013 and 2012 financial information has been recast so that the basis of presentation is consistent with that of the 2014 financial information. This recast reflects the financial position and results of operations of the Company's former Time Inc. segment as discontinued operations for all periods presented. | |||||||||||
Use of Estimates | |||||||||||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and footnotes thereto. Actual results could differ from those estimates. | |||||||||||
Significant estimates and judgments inherent in the preparation of the consolidated financial statements include accounting for asset impairments, multiple-element transactions, allowances for doubtful accounts, depreciation and amortization, the determination of ultimate revenues as it relates to amortization of capitalized film and programming costs and participations and residuals, home video and videogames product returns, business combinations, pension and other postretirement benefits, equity-based compensation, income taxes, contingencies, litigation matters, reporting revenue for certain transactions on a gross versus net basis, and the determination of whether the Company should consolidate certain entities. | |||||||||||
Venezuela Currency | |||||||||||
Certain of the Company's divisions conduct business with third parties located in Venezuela and, as a result, the Company holds net monetary assets denominated in Venezuelan Bolivares Fuertes (“VEF”) that primarily consist of cash and accounts receivable. As of December 31, 2014, there were three legal foreign currency exchange systems administered by the Venezuelan government, each with a different exchange rate: (i) the fixed official government rate as published by the Central Bank of Venezuela, which as of December 31, 2014 was 6.3 VEF to each U.S. Dollar, (ii) the variable, auction-based SICAD 1 rate, which as of December 31, 2014 was 12 VEF to each U.S. Dollar and (iii) the variable, transaction-based SICAD 2 rate, which as of December 31, 2014 was approximately 50 VEF to each U.S. Dollar. Because of Venezuelan government-imposed restrictions on the exchange of VEF into foreign currency in Venezuela, the Company has not been able to convert VEF earned in Venezuela into U.S. Dollars through the official government rate. Further, the Company has not been able to access the SICAD 1 and SICAD 2 exchanges due to government requirements and restrictions on participation in the exchanges, including a requirement that an entity be domiciled in Venezuela to participate. | |||||||||||
Prior to December 31, 2014, the Company used the official government exchange rate to remeasure its VEF-denominated transactions and balances. This was principally due to the Company's inability to access the SICAD 1 and SICAD 2 exchange systems, as noted above, as well as a lack of clarity about those exchange systems' stability and transaction volume. During the fourth quarter of 2014, the Company considered information about the companies that were able to access the three exchange systems during 2014 and the fact that the SICAD 1 and SICAD 2 exchanges continued to operate, as well as the state of the Venezuelan economy, which has been negatively impacted by significantly lower oil prices and which the Venezuela Central Bank confirmed in late December 2014 had entered a recession. Based on these factors, as of December 31, 2014, the Company concluded that the SICAD 2 exchange rate was the most appropriate legal exchange rate for the Company's business activities conducted in VEF. Accordingly, beginning on December 31, 2014, the Company began using the SICAD 2 rate to remeasure its VEF-denominated transactions and balances and, for the three months and year ended December 31, 2014, recognized a pretax foreign exchange loss of $173 million in the Consolidated Statement of Operations | |||||||||||
Accounting Guidance Adopted in 2014 | |||||||||||
Share-Based Payment Awards with Performance Targets Attainable After the Requisite Service Period | |||||||||||
On July 1, 2014, the Company early adopted guidance that clarifies that a performance target that affects the vesting of an award payable in shares and that can be met after the requisite service period is a performance condition. Therefore, compensation expense related to such awards should only be recognized when it becomes probable that the performance target will be met, which could occur after the requisite service period has been satisfied. The adoption of this guidance did not have an impact on the Company's consolidated financial statements. | |||||||||||
Presentation of Unrecognized Tax Benefits | |||||||||||
On January 1, 2014, the Company adopted on a prospective basis guidance requiring a liability related to an unrecognized tax benefit to be offset against a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. In situations in which a net operating loss carryforward, a similar tax loss or a tax credit carryforward is not available at the reporting date under the tax law of a jurisdiction or the tax law of a jurisdiction does not require it, and the Company does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit would be presented in the financial statements as a liability and will not be combined with deferred tax assets. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements. | |||||||||||
Accounting Guidance Not Yet Adopted | |||||||||||
Revenue Recognition | |||||||||||
In May 2014, guidance was issued that establishes a new revenue recognition framework in U.S. GAAP for all companies and industries. The core principle of the guidance is that an entity should recognize revenue from the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to receive for those goods or services. The guidance includes a five-step framework to determine the timing and amount of revenue to recognize related to contracts with customers. In addition, this guidance requires new or expanded disclosures related to the judgments made by companies when following this framework. The guidance will become effective on either a full or modified retrospective basis for the Company on January 1, 2017. The Company is evaluating the impact the guidance will have on its consolidated financial statements. | |||||||||||
Discontinued Operations | |||||||||||
In April 2014, guidance was issued that changes the requirements for reporting discontinued operations. Under this new guidance, a discontinued operation is (i) a component of an entity or group of components that has been disposed of or is classified as held for sale and represents a strategic shift that has had or will have a major effect on an entity's operations and financial results or (ii) an acquired business that is classified as held for sale on the acquisition date. This guidance also requires expanded or new disclosures for discontinued operations, individually material disposals that do not meet the definition of a discontinued operation, an entity's continuing involvement with a discontinued operation following disposal and retained equity method investments in a discontinued operation. This guidance became effective on a prospective basis for the Company on January 1, 2015 and is not expected to have a material impact on the Company's consolidated financial statements. | |||||||||||
Summary of Critical and Significant Accounting Policies | |||||||||||
The following is a discussion of each of the Company's critical accounting policies, including information and analysis of estimates and assumptions involved in their application, and other significant accounting policies. | |||||||||||
The Securities and Exchange Commission (“SEC”) considers an accounting policy to be critical if it is important to the Company's financial condition and results of operations and if it requires significant judgment and estimates on the part of management in its application. The development and selection of these critical accounting policies have been determined by Time Warner's management and the related disclosures have been reviewed with the Audit and Finance Committee of the Board of Directors of the Company. Due to the significant judgment involved in selecting certain of the assumptions used in these areas, it is possible that different parties could choose different assumptions and reach different conclusions. The Company considers the policies relating to the following matters to be critical accounting policies: | |||||||||||
Impairment of Goodwill and Intangible Assets (see pages 76 to 77); | |||||||||||
Film and Television Production Cost Recognition, Participations and Residuals and Impairments (see pages 81 to 82); | |||||||||||
Gross versus Net Revenue Recognition (see pages 80 to 81); | |||||||||||
Sales Returns and Pricing Rebates (see page 80); and | |||||||||||
Income Taxes (see page 84). | |||||||||||
Cash and Equivalents | |||||||||||
Cash equivalents consist of investments that are readily convertible into cash and have original maturities of three months or less. Cash equivalents are carried at cost, which approximates fair value. The Company monitors concentrations of credit risk with respect to Cash and equivalents by placing such balances with higher quality financial institutions or investing such amounts in liquid, short-term, highly-rated instruments or investment funds holding similar instruments. As of December 31, 2014, the majority of the Company's Cash and equivalents were invested with banks with a credit rating of at least A and in Rule 2a-7 money market mutual funds. At December 31, 2014, the Company did not have more than $500 million invested in any single bank or money market mutual fund. | |||||||||||
Allowance for Doubtful Accounts | |||||||||||
The Company monitors customer credit risk related to accounts receivable, including unbilled trade receivables primarily related to the distribution of television product. Significant judgments and estimates are involved in evaluating if such amounts will ultimately be fully collected. Each of the Company's businesses maintains a comprehensive approval process prior to issuing credit to third-party customers. Counterparties that are determined to be of a higher risk are evaluated to assess whether the credit terms previously granted to them should be modified. The Company monitors customers' accounts receivable aging, and a provision for estimated uncollectible amounts is maintained based on customer payment levels, historical experience and management's views on trends in the overall receivable agings at the Company's businesses. In addition, for larger accounts, the Company performs analyses of risks on a customer-specific basis. At December 31, 2014 and 2013, total reserves for doubtful accounts were approximately $152 million and $191 million, respectively. For the year ended December 31, 2014, the Company recognized $20 million of income related to bad debt primarily due to the reversal of a reserve related to a Warner Bros. receivable. Bad debt expense recognized during the years ended December 31, 2013 and 2012 totaled $28 million and $37 million, respectively. | |||||||||||
Consolidation | |||||||||||
Time Warner consolidates all entities in which it has a controlling voting interest and all variable interest entities (“VIEs”) in which the Company is deemed to be the primary beneficiary. Entities determined to be VIEs primarily consist of HBO Latin America Group (“HBO LAG”) because the Company's ownership and voting rights in this entity are disproportionate. HBO LAG operates multi-channel premium pay and basic tier television services in Latin America and is accounted for using the equity method. See Note 4 for additional information. | |||||||||||
Investments | |||||||||||
Investments in companies in which Time Warner has significant influence, but less than a controlling voting interest, are accounted for using the equity method. Significant influence is generally presumed to exist when Time Warner owns between 20% and 50% of the voting interests in the investee, holds substantial management rights or holds an interest of less than 20% in an investee that is a limited liability partnership or limited liability corporation that is treated as a flow-through entity. | |||||||||||
Under the equity method of accounting, only Time Warner's investment in and amounts due to and from the equity investee are included in the Consolidated Balance Sheet; only Time Warner's share of the investee's earnings (losses) is included in the Consolidated Statement of Operations; and only the dividends, cash distributions, loans or other cash received from the investee, additional cash investments, loan repayments or other cash paid to the investee are included in the Consolidated Statement of Cash Flows. | |||||||||||
Investments in companies in which Time Warner does not have a controlling voting interest or over which it is unable to exert significant influence are generally accounted for at fair value if the investments are publicly traded. If the investment or security is not publicly traded, the investment is accounted for at cost. Unrealized gains and losses on investments accounted for at fair value are reported, net of tax, in Accumulated other comprehensive loss, net. Dividends and other distributions of earnings from investments in companies in which Time Warner does not have a controlling voting interest or over which it is unable to exert significant influence are included in Other loss, net, when declared. For more information, see Notes 3 and 4. | |||||||||||
The company regularly reviews its investments for impairment. See “Asset Impairments” below for additional information. | |||||||||||
Foreign Currency Translation | |||||||||||
Financial statements of subsidiaries operating outside the United States whose functional currency is not the U.S. Dollar are translated at the rates of exchange on the balance sheet date for assets and liabilities and at average rates of exchange for revenues and expenses during the period. Translation gains or losses on assets and liabilities are included as a component of Accumulated other comprehensive loss, net. | |||||||||||
Derivative Instruments | |||||||||||
The Company uses derivative instruments principally to manage the risk associated with movements in foreign currency exchange rates, and recognizes all derivative instruments on the Consolidated Balance Sheet at fair value. Changes in fair value of derivative instruments that qualify for hedge accounting will either be offset against the change in fair value of the hedged assets or liabilities through earnings or recognized in shareholders' equity as a component of Accumulated other comprehensive loss, net, until the hedged item is recognized in earnings, depending on whether the derivative instrument is being used to hedge changes in fair value or cash flows. For qualifying hedge relationships, the Company excludes the impact of forward points or option premiums from its assessment of hedge effectiveness and recognizes changes in the fair value of a derivative instrument due to forward points or option premiums in Other income (loss), net each quarter. The ineffective portion of a derivative instrument's change in fair value is immediately recognized in earnings. For those derivative instruments that do not qualify for hedge accounting, changes in fair value are recognized immediately in earnings. See Note 7 for additional information regarding derivative instruments held by the Company and risk management strategies. | |||||||||||
Property, Plant and Equipment | |||||||||||
Property, plant and equipment are stated at cost. Additions to property, plant and equipment generally include material, labor and overhead. Time Warner also capitalizes certain costs associated with coding, software configuration, upgrades and enhancements incurred for the development of internal use software. Depreciation is recorded on a straight-line basis over estimated useful lives. Leasehold improvements are depreciated over the lesser of the estimated useful life of the improvement or the term of the applicable lease. Time Warner periodically evaluates the depreciation periods of property, plant and equipment to determine whether a revision to its estimates of useful lives is warranted. Property, plant and equipment, including capital leases, consist of (millions): | |||||||||||
December 31, | Estimated | ||||||||||
2014 | 2013 | Useful Lives | |||||||||
(recast) | |||||||||||
Land(a) | $ | 274 | $ | 431 | n/a | ||||||
Buildings and improvements | 1,549 | 2,287 | 7 to 30 years | ||||||||
Capitalized software costs | 1,868 | 1,636 | 3 to 7 years | ||||||||
Furniture, fixtures and other equipment(b) | 3,102 | 3,236 | 3 to 10 years | ||||||||
6,793 | 7,590 | ||||||||||
Accumulated depreciation | -4,138 | -4,299 | |||||||||
Total | $ | 2,655 | $ | 3,291 | |||||||
____________ | |||||||||||
(a) | Land is not depreciated. | ||||||||||
(b) | Includes $223 million and $327 million of construction in progress as of December 31, 2014 and 2013, respectively. | ||||||||||
Intangible Assets | |||||||||||
Time Warner has a significant number of intangible assets, including acquired film and television libraries and other copyrighted products and tradenames. Time Warner does not recognize the fair value of internally generated intangible assets. Intangible assets acquired in business combinations are recorded at the acquisition date fair value in the Company's Consolidated Balance Sheet. Acquired film libraries are amortized using the film forecast computation model. For more information, see “Film and Television Production Cost Recognition, Participations and Residuals and Impairments” and Note 2. | |||||||||||
Asset Impairments | |||||||||||
Investments | |||||||||||
The Company's investments consist of (i) investments carried at fair value, including available-for-sale securities and certain deferred compensation-related investments, (ii) investments accounted for using the cost method of accounting, (iii) investments accounted for using the equity method of accounting and (iv) held-to-maturity debt securities. The Company regularly reviews its investments for impairment, including when the carrying value of an investment exceeds its related market value. If the Company determines that an investment has sustained an other-than-temporary decline in its value, the investment is written down to its fair value by a charge to earnings that is included in Other loss, net. Factors that are considered by the Company in determining whether an other-than-temporary decline in value has occurred include (i) the market value of the security in relation to its cost basis, (ii) the financial condition of the investee and (iii) the Company's intent and ability to retain the investment for a sufficient period of time to allow for recovery in the market value of the investment. | |||||||||||
In evaluating the factors described above for available-for-sale securities and held-to-maturity debt securities, the Company presumes a decline in value to be other-than-temporary if the quoted market price of the security is 20% or more below the investment's cost basis for a period of six months or more (the “20% criterion”) or the quoted market price of the security is 50% or more below the security's cost basis at any quarter end (the “50% criterion”). However, the presumption of an other-than-temporary decline in these instances may be overcome if there is persuasive evidence indicating that the decline is temporary in nature (e.g., the investee's operating performance is strong, the market price of the investee's security is historically volatile, etc.). Additionally, there may be instances in which impairment losses are recognized even if the 20% and 50% criteria are not satisfied (e.g., if there is a plan to sell the security in the near term and the fair value is below the Company's cost basis). | |||||||||||
For investments accounted for using the cost or equity method of accounting, the Company evaluates information available (e.g., budgets, business plans, financial statements, etc.) in addition to quoted market prices, if any, in determining whether an other-than-temporary decline in value exists. Factors indicative of an other-than-temporary decline include recurring operating losses, credit defaults and subsequent rounds of financing at an amount below the cost basis of the Company's investment. For more information, see Note 4. | |||||||||||
Goodwill and Indefinite-Lived Intangible Assets | |||||||||||
Goodwill and indefinite-lived intangible assets, primarily tradenames, are tested annually for impairment during the fourth quarter or earlier upon the occurrence of certain events or substantive changes in circumstances. Goodwill is tested for impairment at the reporting unit level. A reporting unit is either the “operating segment level,” such as Warner Bros. Entertainment Inc. (“Warner Bros.”), Home Box Office, Inc. (“Home Box Office”) and Turner Broadcasting System, Inc. (“Turner”), or one level below, which is referred to as a “component” (e.g., Warner Bros. Theatrical, Warner Bros. Television). The level at which the impairment test is performed requires judgment as to whether the operations below the operating segment constitute a self-sustaining business or whether the operations are similar such that they should be aggregated for purposes of the impairment test. For purposes of the goodwill impairment test, management has concluded that the operations below the operating segment level are not self-sustaining businesses or the operations are similar and therefore has determined that its reporting units are the same as its operating segments. | |||||||||||
In assessing Goodwill for impairment, the Company has the option to first perform a qualitative assessment to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company is not required to perform any additional tests in assessing Goodwill for impairment. However, if the Company concludes otherwise or elects not to perform the qualitative assessment, then it is required to perform the first step of a two-step impairment review process. The first step of the two-step process involves a comparison of the estimated fair value of a reporting unit to its carrying amount. In performing the first step, the Company determines the fair value of a reporting unit using a discounted cash flow (“DCF”) analysis and, in certain cases, a combination of a DCF analysis and a market-based approach. Determining fair value requires the exercise of significant judgment, including judgments about appropriate discount rates, perpetual growth rates, the amount and timing of expected future cash flows, as well as relevant comparable public company earnings multiples. The cash flows employed in the DCF analyses are based on the Company's most recent budgets and long range plans and perpetual growth rates are assumed for years beyond the current long range plan period. Discount rate assumptions are based on an assessment of market rates, capital structures and the risk inherent in the future cash flows included in the budgets and long range plans. | |||||||||||
In 2014, the Company did not elect to perform a qualitative assessment of Goodwill and instead performed a quantitative impairment test. The results of the quantitative test did not result in any impairments of Goodwill because the fair values of each of the Company's reporting units exceeded their respective carrying values. None of the carrying values of the Company's reporting units were within 30% of their respective fair values as of December 31, 2014. If the carrying value of a reporting unit exceeded its fair value, the second step of the impairment review process would need to be performed to determine the ultimate amount of impairment loss to record. Significant assumptions utilized in the DCF analysis included discount rates that ranged from 9.0% to 9.5% and a terminal revenue growth rate of 3.25%. Significant assumptions utilized in the market-based approach were market multiples ranging from 9.5x to 12.0x for the Company's reporting units where a market-based approach was performed. | |||||||||||
In assessing other intangible assets not subject to amortization for impairment, the Company also has the option to perform a qualitative assessment to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of such an intangible asset is less than its carrying amount. If the Company determines that it is not more likely than not that the fair value of such an intangible asset is less than its carrying amount, then the Company is not required to perform any additional tests for assessing those intangible assets for impairment. However, if the Company concludes otherwise or elects not to perform the qualitative assessment, then it is required to perform a quantitative impairment test that involves a comparison of the estimated fair value of the intangible asset with its carrying value. If the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. | |||||||||||
In 2014, the Company did not elect to perform a qualitative assessment for intangible assets not subject to amortization. The estimates of fair value of intangible assets not subject to amortization are determined using a DCF valuation analysis, which is based on the “relief from royalty” methodology. Discount rate assumptions are based on an assessment of the risk inherent in the projected future cash flows generated by the respective intangible assets. Also subject to judgment are assumptions about royalty rates, which are based on the estimated rates at which similar tradenames are being licensed in the marketplace. | |||||||||||
The performance of the Company's 2014 annual impairment test for other intangible assets not subject to amortization did not result in any impairments since the fair value of each of the Company's intangible assets not subject to amortization exceeded its respective carrying value. No intangible asset not subject to amortization's fair value was within 30% of its carrying value. The significant assumptions utilized in the 2014 DCF analysis of other intangible assets not subject to amortization were discount rates that ranged from 9.5% to 10.0% and a terminal revenue growth rate of 3.25%. | |||||||||||
Long-Lived Assets | |||||||||||
Long-lived assets, including finite-lived intangible assets (e.g., tradenames, customer lists, film libraries and property, plant and equipment), do not require that an annual impairment test be performed; instead, long-lived assets are tested for impairment upon the occurrence of a triggering event. Triggering events include the more likely than not disposal of a portion of such assets or the occurrence of an adverse change in the market involving the business employing the related assets. Once a triggering event has occurred, the impairment test is based on whether the intent is to hold the asset for continued use or to hold the asset for sale. The impairment test for assets held for continued use requires a comparison of cash flows expected to be generated over the useful life of an asset or group of assets (“asset group”) against the carrying value of the asset group. An asset group is established by identifying the lowest level of cash flows generated by the asset or group of assets that are largely independent of the cash flows of other assets. If the intent is to hold the asset group for continued use, the impairment test first requires a comparison of estimated undiscounted future cash flows generated by the asset group against its carrying value. If the carrying value exceeds the estimated undiscounted future cash flows, an impairment would be measured as the difference between the estimated fair value of the asset group and its carrying value. Fair value is generally determined by discounting the future cash flows associated with that asset group. If the intent is to hold the asset group for sale and certain other criteria are met (e.g., the asset can be disposed of currently, appropriate levels of authority have approved the sale, and there is an active program to locate a buyer), the impairment test involves comparing the asset group's carrying value to its estimated fair value. To the extent the carrying value is greater than the estimated fair value, an impairment loss is recognized for the difference. Significant judgments in this area involve determining the appropriate asset group level at which to test, determining whether a triggering event has occurred, determining the future cash flows for the assets involved and selecting the appropriate discount rate to be applied in determining estimated fair value. For more information, see Note 2. | |||||||||||
Accounting for Pension Plans | |||||||||||
The Company and certain of its subsidiaries have both funded and unfunded defined benefit pension plans, the substantial majority of which are noncontributory, covering a majority of domestic employees and, to a lesser extent, have various defined benefit plans, primarily noncontributory, covering certain international employees. Pension benefits are based on formulas that reflect the participating employees' years of service and compensation. Time Warner's largest defined benefit pension plan is closed for new employees and frozen to future benefit accruals. Time Warner uses a December 31st measurement date for its plans. The pension expense recognized by the Company is determined using certain assumptions, including the expected long-term rate of return on plan assets, the interest factor implied by the discount rate and the rate of compensation increases. For more information, see Note 13. | |||||||||||
Equity-Based Compensation | |||||||||||
The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. That cost is recognized in Costs of revenues or Selling, general and administrative expenses depending on the job function of the grantee on a straight-line basis (net of estimated forfeitures) from the date of grant over the period during which an employee is required to provide services in exchange for the award. The total grant-date fair value of an equity award granted to an employee who has reached a specified age and years of service as of the grant date is recognized as compensation expense immediately upon grant as there is no required service period. | |||||||||||
The grant-date fair value of a restricted stock unit (“RSU”) is determined based on the closing sale price of the Company's common stock on the NYSE Composite Tape on the date of grant. | |||||||||||
Performance stock units (“PSUs”) are subject to a performance condition such that the number of PSUs that ultimately vest generally depends on the adjusted earnings per share (“Adjusted EPS”) achieved by the Company during a three-year performance period compared to targets established at the beginning of the period. The PSUs are also subject to a market condition and the number of PSUs that vest can be increased or decreased based on the Company's cumulative total shareholder return (“TSR”) relative to the TSR of the other companies in the S&P 500 Index for the performance period. Because the terms of the PSUs provide discretion to make certain adjustments to the performance calculation, the service inception date of these awards precedes the grant date. Accordingly, the Company recognizes compensation expense beginning on the service inception date and remeasures the fair value of the PSU until a grant date occurs, which is typically after the completion of the required service period. PSUs, as well as RSUs granted to certain senior executives beginning in 2012, also are subject to a performance condition based on an adjusted net income target for a one-year period that, if not achieved, will result in the forfeiture of the awards. | |||||||||||
The grant-date fair value of a stock option is estimated using the Black-Scholes option-pricing model. Because the Black-Scholes option-pricing model requires the use of subjective assumptions, changes in these assumptions can materially affect the fair value of the stock options. The Company determines the volatility assumption for these stock options using implied volatilities data from its traded options. The expected term, which represents the period of time that stock options granted are expected to be outstanding, is estimated based on the historical exercise behavior of Time Warner employees. Groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. The risk-free rate assumed in valuing the options is based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the option. The Company determines the expected dividend yield percentage by dividing the expected annual dividend by the market price of Time Warner common stock at the date of grant. For more information, see Note 12. | |||||||||||
Revenue | |||||||||||
The Company generates revenue primarily from content production and distribution (i.e., Content Revenue), providing programming to cable system operators, satellite distribution services, telephone companies and other distributors (collectively, “affiliates”) that have contracted to receive and distribute this programming to their subscribers (i.e., Subscription Revenue) and the sale of advertising on the Company's television networks and websites and the websites it manages and/or operates for others (i.e., Advertising Revenue). | |||||||||||
Content Revenue | |||||||||||
Feature films typically are produced or acquired for initial exhibition in theaters, followed by distribution, generally commencing within three years of such initial exhibition, through home video, electronic sell-through, video-on-demand, subscription video-on-demand services, premium cable, basic cable and broadcast networks. Revenues from film rentals by theaters are recognized as the films are exhibited. Revenues from home video sales are recognized at the later of the delivery date or the date that the DVDs or Blu-ray Discs are made widely available for sale or rental by retailers based on gross sales less a provision for estimated returns. Revenues from the licensing of feature films for electronic sell-through or video-on-demand are recognized when the product has been purchased by and made available to the consumer to either download or stream. Revenues from the distribution of theatrical product through subscription video-on-demand services, premium cable, basic cable and broadcast networks are recognized when the films are available to the licensee. | |||||||||||
Television programs and series are initially produced for broadcast networks, cable networks or first-run television syndication and may be subsequently licensed for international or domestic cable, syndicated television and subscription video-on-demand services, as well as sold on home video and via electronic delivery. Revenues from the distribution of television programming through broadcast networks, cable networks, first-run syndication and subscription video-on-demand services are recognized when the programs or series are available to the licensee, except for advertising barter agreements, where the revenue is valued and recognized when the related advertisements are exhibited. In certain circumstances, pursuant to the terms of the applicable contractual arrangements, the availability dates granted to customers may precede the date the Company may bill the customers for these sales. Unbilled accounts receivable, which primarily relate to the distribution of television product at Warner Bros., totaled $3.780 billion and $3.418 billion at December 31, 2014 and December 31, 2013, respectively. Included in the unbilled accounts receivable at December 31, 2014 was $2.462 billion that is to be billed in the next twelve months. Similar to theatrical home video sales, revenues from home video sales of television programming are recognized at the later of the delivery date or the date that the DVDs or Blu-ray Discs are made widely available for sale or rental by retailers based on gross sales less a provision for estimated returns. Revenues from the licensing of television programs and series for electronic sell-through or video-on-demand are recognized when the product has been purchased by and made available to the consumer to either download or stream. Revenues from the distribution of television programming through subscription video-on-demand services are recognized when the television programs or series are available to the licensee. | |||||||||||
Upfront or guaranteed payments for the licensing of intellectual property are recognized as revenue when (i) an arrangement has been signed with a customer, (ii) the customer's right to use or otherwise exploit the intellectual property has commenced and there is no requirement for significant continued performance by the Company, (iii) licensing fees are either fixed or determinable and (iv) collectability of the fees is reasonably assured. In the event any significant continued performance is required in these arrangements, revenue is allocated to each applicable element and recognized when the related services are performed. | |||||||||||
Revenues from the sales of videogames are recognized at the later of the delivery date or the date that the product is made widely available for sale or rental by retailers based on gross sales less a provision for estimated returns. | |||||||||||
Subscription Revenue | |||||||||||
Subscription revenues are recognized as programming services are provided to affiliates based on negotiated contractual programming rates. When a distribution contract with an affiliate has expired and a new distribution contract has not been executed, revenues are based on estimated rates, giving consideration to factors including the previous contractual rates, inflation, current payments by the affiliate and the status of the negotiations on a new contract. When the new distribution contract terms are finalized, an adjustment to Subscription revenues is recorded, if necessary, to reflect the new terms. Such adjustments historically have not been significant. | |||||||||||
Advertising Revenue | |||||||||||
Advertising revenues are recognized, net of agency commissions, in the period that the advertisements are aired. If there is a targeted audience guarantee, revenues are recognized for the actual audience delivery and revenues are deferred for any shortfall until the guaranteed audience delivery is met, typically by providing additional advertisements. Advertising revenues from websites are recognized as impressions are delivered or the services are performed. | |||||||||||
Sales Returns and Pricing Rebates | |||||||||||
Management's estimate of product sales that will be returned and pricing rebates to grant is an area of judgment affecting Revenues and Net income. In estimating product sales that will be returned, management analyzes vendor sales of the Company's product, historical return trends, current economic conditions, and changes in customer demand. Based on this information, management reserves a percentage of any product sales that provide the customer with the right of return. The provision for such sales returns is reflected as a reduction in the revenues from the related sale. In estimating the reserve for pricing rebates, management considers the terms of the Company's agreements with its customers that contain targets which, if met, would entitle the customer to a rebate. In those instances, management evaluates the customer's actual and forecasted purchases to determine the appropriate reserve. At December 31, 2014 and 2013, total reserves for sales returns (which also reflects reserves for certain pricing allowances provided to customers) primarily related to home entertainment products (e.g., DVDs, Blu-ray Discs and videogames) were $1.000 billion and $1.192 billion, respectively. An incremental change of 1% in the Company's estimated sales returns rate (i.e., provisions for returns divided by gross sales of related product) would have resulted in an approximate $44 million impact on the Company's total Revenues for the year ended December 31, 2014. This revenue impact would have been partially offset by a corresponding impact on related expenses depending on the margin associated with a specific film or videogame and other factors. | |||||||||||
Gross versus Net Revenue Recognition | |||||||||||
In the normal course of business, the Company acts as or uses an intermediary in executing transactions with third parties. In connection with these arrangements, the Company must determine whether to report revenue based on the gross amount billed to the ultimate customer or on the net amount received from the customer after commissions and other payments to third parties. To the extent revenues are recorded on a gross basis, any commissions or other payments to third parties are recorded as expense so that the net amount (gross revenues less expense) is reflected in Operating Income. Accordingly, the impact on Operating Income is the same whether the Company records revenue on a gross or net basis. | |||||||||||
The determination of whether revenue should be reported on a gross or net basis is based on an assessment of whether the Company is acting as the principal or an agent in the transaction. If the Company is acting as a principal in a transaction, the Company reports revenue on a gross basis. If the Company is acting as an agent in a transaction, the Company reports revenue on a net basis. The determination of whether the Company is acting as a principal or an agent in a transaction involves judgment and is based on an evaluation of the terms of an arrangement. The Company serves as the principal in transactions in which it has substantial risks and rewards of ownership. | |||||||||||
The following are examples of arrangements where the Company is an intermediary or uses an intermediary: | |||||||||||
Warner Bros. provides distribution services to third-party companies. Warner Bros. may provide distribution services for an independent third-party company for the worldwide distribution of theatrical films, home video, television programs and/or videogames. The independent third-party company may retain final approval over the distribution, marketing, advertising and publicity for each film or videogame in all media, including the timing and extent of the releases, the pricing and packaging of packaged goods units and approval of all television licenses. Warner Bros. records revenue generated in these distribution arrangements on a gross basis when it (i) is the merchant of record for the licensing arrangements, (ii) is the licensor/contracting party, (iii) provides the materials to licensees, (iv) handles the billing and collection of all amounts due under such arrangements and (v) bears the risk of loss related to distribution advances and/or the packaged goods inventory. If Warner Bros. does not bear the risk of loss as described in the previous sentence, the arrangements are accounted for on a net basis. | |||||||||||
Turner provides advertising sales services to third-party companies. From time to time, Turner contracts with third parties, or in certain instances a related party such as a joint venture, to perform television or website advertising sales services. While terms of these agreements can vary, Turner generally records advertising revenue on a gross basis when it acts as the primary obligor (i.e., Turner is the contracting party) in the arrangement because in those cases it is the face to the advertiser and is responsible for fulfillment of the advertising sold. | |||||||||||
Film and Television Production Cost Recognition, Participations and Residuals and Impairments | |||||||||||
Film and television production costs include the unamortized cost of completed theatrical films and television episodes, theatrical films and television series in production and undeveloped film and television rights. Film and television production costs are stated at the lower of cost, less accumulated amortization, or fair value. The amount of capitalized film and television production costs recognized as Costs of revenues for a given period is determined using the film forecast computation method. Under this method, the amortization of capitalized costs and the accrual of participations and residuals is based on the proportion of the film's revenues recognized for such period to the film's estimated remaining ultimate revenues (i.e., the total revenue to be received throughout a film's life cycle). | |||||||||||
The process of estimating a film's ultimate revenues requires the Company to make a series of significant judgments relating to future revenue generating activities associated with a particular film and is important for two reasons. First, while a film or television series is being produced and the related costs are being capitalized, as well as at the time the film or television series is released, it is necessary for management to estimate the ultimate revenues, less additional costs to be incurred (including exploitation and participation costs), in order to determine whether the value of a film or television series is impaired and requires an immediate write-off of unrecoverable film and television production costs down to fair value. Second, it is necessary for management to determine, using the film forecast computation method, the amount of capitalized film and television production costs and the amount of participations and residuals to be recognized as Costs of revenues for a given film or television series in a particular period. To the extent that the ultimate revenues are adjusted, the resulting gross margin reported on the exploitation of that film or television series in a period is also adjusted. | |||||||||||
Prior to the theatrical release of a film, management bases its estimates of ultimate revenues for each film on factors such as the historical performance of similar films, the star power of the lead actors, the rating and genre of the film, pre-release market research (including test market screenings) and the expected number of theaters in which the film will be released. In the absence of revenues directly related to the exhibition of a film or television program that is owned by the Company on the Company's television networks or premium pay television services, management estimates a portion of the unamortized costs that are representative of the utilization of that film or television program in that exhibition and expenses such costs as the film or television program is exhibited. The period over which ultimate revenues are estimated is generally not to exceed ten years from the initial release of a motion picture or from the date of delivery of the first episode of an episodic television series. For an episodic television series still in production, the period over which ultimate revenues are estimated cannot exceed five years from the date of delivery of the most recent episode. Management updates such estimates based on information available during the film's production and, upon release, the actual results of each film. Changes in estimates of ultimate revenues from period to period affect the amount of production costs amortized in a given period and, therefore, could have an impact on the segment's financial results for that period. For example, prior to a film's release, the Company often will test market the film to the film's targeted demographic. If the film is not received favorably, the Company may (i) reduce the film's estimated ultimate revenues, (ii) revise the film, which could cause the production costs to increase, or (iii) perform a combination of both. Similarly, a film that generates lower-than-expected theatrical revenues in its initial weeks of release would have its theatrical, home video and television distribution ultimate revenues adjusted downward. A failure to adjust for a downward change in estimates of ultimate revenues would result in the understatement of production costs amortization for the period. The Company recorded production cost amortization of $4.229 billion, $3.873 billion and $4.092 billion in 2014, 2013 and 2012, respectively. Included in production cost amortization are film impairments primarily related to pre-release theatrical films of $86 million, $51 million and $92 million in 2014, 2013 and 2012, respectively. | |||||||||||
Licensed Programming Inventory | |||||||||||
In the normal course of business, the Company's Turner and Home Box Office segments enter into agreements to license programming exhibition rights from licensors. A programming inventory asset related to these rights and a corresponding liability to the licensor are recorded (on a discounted basis if the license agreements are long-term) when (i) the cost of the programming is reasonably determined, (ii) the programming material has been accepted in accordance with the terms of the agreement, (iii) the programming is available for its first showing or telecast, and (iv) the license period has commenced. There are variations in the amortization methods of these rights, depending on whether the network is advertising-supported (e.g., TNT and TBS) or not advertising-supported (e.g., HBO and Turner Classic Movies). | |||||||||||
For the Company's advertising-supported networks, the Company's general policy is to amortize each program's costs on a straight-line basis (or per-play basis, if greater) over its license period. However, for certain types of programming, the initial airing has more value than subsequent airings. In these circumstances, the Company will use an accelerated method of amortization. For example, if the Company is licensing the right to air a movie multiple times over a certain period, the movie is being shown for the first time on a Company network (a “Network Movie Premiere”) and the Network Movie Premiere advertising is sold at a premium rate, a larger portion of the movie's programming inventory cost is amortized upon the initial airing of the movie, with the remaining cost amortized on a straight-line basis (or per-play basis, if greater) over the remaining license period. The accelerated amortization upon the first airing versus subsequent airings is determined based on a study of historical and estimated future advertising sales for similar programming. For rights fees paid for sports programming arrangements (e.g., National Basketball Association, The National Collegiate Athletic Association (“NCAA”) Men's Division I Basketball championship events (the “NCAA Tournament”) and Major League Baseball), such rights fees are amortized using a revenue-forecast model, in which the rights fees are amortized using the ratio of current period advertising revenue to total estimated remaining advertising revenue over the term of the arrangement. | |||||||||||
For premium pay television services that are not advertising-supported, each licensed program's costs are amortized on a straight-line basis over its license period or estimated period of use, beginning with the month of initial exhibition. When the Company has the right to exhibit feature theatrical programming in multiple windows over a number of years, the Company uses historical audience viewership as its basis for determining the amount of programming amortization attributable to each window. | |||||||||||
The Company carries its licensed programming inventory at the lower of unamortized cost or estimated net realizable value. For networks that generate both Advertising and Subscription revenues (e.g., TBS and TNT), the Company generally evaluates the net realizable value of unamortized programming costs based on the network's programming taken as a whole. In assessing whether the programming inventory for a particular advertising-supported network is impaired, the Company determines the net realizable value for all of the network's programming inventory based on a projection of the network's estimated combined Subscription revenues and Advertising revenues less certain direct costs of delivering the programming. Similarly, for premium pay television services that are not advertising-supported, the Company performs its evaluation of the net realizable value of unamortized programming costs based on the premium pay television services' licensed programming taken as a whole. Specifically, the Company determines the net realizable value for all of its premium pay television service licensed programming based on projections of estimated Subscription revenues less certain costs of delivering and distributing the licensed programming. However, changes in management's intended usage of a specific program, such as a decision to no longer exhibit that program and forego the use of the rights associated with the program license, would result in a reassessment of that program's net realizable value, which could result in an impairment. | |||||||||||
Other Inventory | |||||||||||
Inventories other than film and television production costs and licensed programming inventory consist primarily of DVDs, Blu-ray Discs and videogame development costs and are stated at the lower of cost or net realizable value. Cost is determined using the average cost method. Returned goods included in Inventory are valued at estimated realizable value, but not in excess of cost. For more information, see Note 6. | |||||||||||
Videogame development costs are expensed as incurred before the applicable videogames reach technological feasibility. Unamortized capitalized videogame production and development costs are stated at the lower of cost, less accumulated amortization, or net realizable value and reported in Other assets on the Consolidated Balance Sheet. At December 31, 2014 and 2013, there were $277 million and $243 million, respectively, of unamortized computer software costs related to videogames. Amortization of such costs was $115 million, $180 million and $182 million for the years ended December 31, 2014, 2013 and 2012, respectively. Included in such amortization are writedowns to net realizable value of certain videogame production costs of $51 million, $53 million and $7 million in 2014, 2013 and 2012, respectively. | |||||||||||
Barter Transactions | |||||||||||
Time Warner enters into transactions that involve the exchange of advertising, in part, for other products and services, such as a license for programming. Such transactions are recognized by the programming licensee (e.g., a television network) as programming inventory and deferred advertising revenue at the estimated fair value when the product is available for telecast. Barter programming inventory is amortized in the same manner as the non-barter component of the licensed programming, and Advertising revenue is recognized when advertising spots are delivered. From the perspective of the programming licensor (e.g., a film studio), incremental licensing revenue is recognized when the barter advertising spots received are either used or sold to third parties. | |||||||||||
Multiple-Element Transactions | |||||||||||
In the normal course of business, the Company enters into multiple-element transactions that involve making judgments about allocating the consideration to the various elements of the transactions. While the more common type of multiple-element transactions encountered by the Company involve the sale or purchase of multiple products or services (e.g., licensing multiple film titles in a single arrangement), multiple-element transactions can also involve contemporaneous purchase and sales transactions, the settlement of an outstanding dispute contemporaneous with the purchase of a product or service, as well as investing in an investee while at the same time entering into an operating agreement. In accounting for multiple-element transactions, judgment must be exercised in identifying the separate elements in a bundled transaction as well as determining the values of these elements. These judgments can impact the amount of revenues, expenses and net income recognized over the term of the contract, as well as the period in which they are recognized. | |||||||||||
In determining the value of the respective elements, the Company refers to quoted market prices (where available), independent appraisals (where available), historical and comparable cash transactions or its best estimate of selling price. Other indicators of value include the existence of price protection in the form of “most-favored-nation” clauses or similar contractual provisions and individual elements whose values are dependent on future performance (and based on independent factors). Further, in such transactions, evidence of value for one element of a transaction may provide support that value was not transferred from one element in a transaction to another element in a transaction. | |||||||||||
Accounting for Collaborative Arrangements | |||||||||||
The Company's collaborative arrangements primarily relate to co-financing arrangements to jointly finance and distribute theatrical productions and an arrangement entered into with CBS Broadcasting, Inc. (“CBS”) and the NCAA that provides Turner and CBS with exclusive television, Internet and wireless rights to the NCAA Tournament in the U.S. and its territories and possessions from 2011 through 2024. | |||||||||||
In most cases, the form of the co-financing arrangement is the sale of an interest in a film to an investor. Warner Bros. generally records the amounts received for the sale of an interest as a reduction of the costs of the film, as the investor assumes full risk for that share of the film asset acquired in these transactions. The substance of these arrangements is that the third-party investors own an interest in the film and, therefore, in each period the Company reflects in the Consolidated Statement of Operations either a charge or benefit to Costs of revenues to reflect the estimate of the third-party investor's interest in the profits or losses incurred on the film. The estimate of the third-party investor's interest in profits or losses incurred on the film is determined using the film forecast computation method. For the years ended December 31, 2014, 2013 and 2012, net participation costs related to third party investors of $580 million, $522 million and $444 million, respectively, were recorded in Costs of revenues. | |||||||||||
The aggregate programming rights fee, production costs, advertising revenues and sponsorship revenues related to the NCAA Tournament and related programming are equally shared by Turner and CBS. However, if the amount paid for the programming rights fee and production costs in any given year exceeds advertising and sponsorship revenues for that year, CBS' share of such shortfall is limited to specified annual amounts (the “loss cap”), ranging from approximately $90 million to $30 million. The amounts incurred by the Company pursuant to the loss cap during the years ended December 31, 2014 and 2013 were not significant. In accounting for this arrangement, the Company records Advertising revenues for the advertisements aired on Turner's networks and amortizes Turner's share of the programming rights fee based on the ratio of current period advertising revenues to its estimate of total advertising revenues over the term of the arrangement. | |||||||||||
Advertising Costs | |||||||||||
Time Warner expenses advertising costs as they are incurred, which generally is when the advertising is exhibited or aired. Advertising expense to third parties was $2.430 billion in 2014, $2.447 billion in 2013 and $2.314 billion in 2012. | |||||||||||
Income Taxes | |||||||||||
Income taxes are provided using the asset and liability method, such that income taxes (i.e., deferred tax assets, deferred tax liabilities, taxes currently payable/refunds receivable and tax expense) are recorded based on amounts refundable or payable in the current year and include the results of any difference between GAAP and tax reporting. Deferred income taxes reflect the tax effect of net operating losses, capital losses and tax credit carryforwards and the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial statement and income tax purposes, as determined under tax laws and rates. Valuation allowances are established when management determines that it is more likely than not that some portion or all of the deferred tax asset will not be realized. The financial effect of changes in tax laws or rates is accounted for in the period of enactment. The subsequent realization of net operating loss and general business credit carryforwards acquired in acquisitions accounted for using the purchase method of accounting is recognized in the Consolidated Statement of Operations. Tax credits received for the production of a film or program are offset against the cost of inventory capitalized. | |||||||||||
From time to time, the Company engages in transactions in which the tax consequences may be subject to uncertainty. Examples of such transactions include business acquisitions and dispositions, including dispositions designed to be tax free, and certain financing transactions. Significant judgment is required in assessing and estimating the tax consequences of these transactions. The Company prepares and files tax returns based on its interpretation of tax laws and regulations. In the normal course of business, the Company's tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax and interest assessments by these taxing authorities. In determining the Company's tax provision for financial reporting purposes, the Company establishes a reserve for uncertain tax positions unless such positions are determined to be more likely than not of being sustained upon examination based on their technical merits. There is considerable judgment involved in determining whether positions taken on the Company's tax returns are more likely than not of being sustained. | |||||||||||
The Company adjusts its tax reserve estimates periodically because of ongoing examinations by, and settlements with, the various taxing authorities, as well as changes in tax laws, regulations and interpretations. The Company's policy is to recognize, when applicable, interest and penalties on uncertain tax positions as part of income tax expense. For further information, see Note 9. | |||||||||||
Discontinued Operations | |||||||||||
In determining whether a group of assets disposed (or to be disposed) of should be presented as a discontinued operation, for periods prior to January 1, 2015 the Company made a determination of whether the group of assets being disposed of comprised a component of the entity; that is, whether it had historic operations and cash flows that were clearly distinguished (both operationally and for financial reporting purposes). The Company also determined whether the cash flows associated with the group of assets had been significantly (or will be significantly) eliminated from the ongoing operations of the Company as a result of the disposal transaction and whether the Company had no significant continuing involvement in the operations of the group of assets after the disposal transaction. If so, the results of operations of the group of assets disposed of (as well as any gain or loss on the disposal transaction) were aggregated for separate presentation, if material, apart from continuing operating results of the Company in the consolidated financial statements. | |||||||||||
In connection with the Time Separation, the Company has recast its financial information to present the financial position and results of operations of its former Time Inc. segment as discontinued operations in the accompanying consolidated financial statements for all periods presented. For more information on the Time Separation, see Note 3. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | 2. GOODWILL AND INTANGIBLE ASSETS | |||||||||||||||||||
Time Warner has a significant number of intangible assets, acquired film and television libraries and other copyrighted products and tradenames. Certain intangible assets are deemed to have finite lives and, accordingly, are amortized over their estimated useful lives, while others are deemed to be indefinite-lived and therefore are not amortized. Goodwill and indefinite-lived intangible assets, primarily certain tradenames, are tested annually for impairment during the fourth quarter, or earlier upon the occurrence of certain events or substantive changes in circumstances. | ||||||||||||||||||||
Goodwill | ||||||||||||||||||||
The following summary of changes in the Company's Goodwill during the years ended December 31, 2014 and 2013, by reportable segment, is as follows (millions): | ||||||||||||||||||||
Turner | Home Box Office | Warner Bros. | Total | |||||||||||||||||
Balance at December 31, 2012 (recast) | $ | 13,991 | $ | 7,309 | $ | 5,996 | $ | 27,296 | ||||||||||||
Acquisitions, dispositions and | ||||||||||||||||||||
adjustments | 7 | 122 | -9 | 120 | ||||||||||||||||
Translation adjustments | -18 | - | 3 | -15 | ||||||||||||||||
Balance at December 31, 2013 (recast) | $ | 13,980 | $ | 7,431 | $ | 5,990 | $ | 27,401 | ||||||||||||
Acquisitions, dispositions and | ||||||||||||||||||||
adjustments | -6 | 2 | 206 | 202 | ||||||||||||||||
Translation adjustments | -18 | - | -20 | -38 | ||||||||||||||||
Balance at December 31, 2014 | $ | 13,956 | $ | 7,433 | $ | 6,176 | $ | 27,565 | ||||||||||||
The carrying amount of goodwill for all periods presented was net of accumulated impairments of $13.338 billion and $4.091 billion at the Turner segment and the Warner Bros. segment, respectively. | ||||||||||||||||||||
The performance of the Company's annual impairment analysis did not result in any impairments of Goodwill for any of the years in the three-year period ended December 31, 2014. Refer to Note 1 for a discussion of the 2014 annual impairment test. | ||||||||||||||||||||
The increase in Goodwill at the Warner Bros. segment for the year ended December 31, 2014 is primarily related to the acquisition of the operations outside the U.S. of Eyeworks Group and the increase at the Home Box Office segment for the year ended December 31, 2013 is primarily related to the acquisition of its former partner's interests in HBO Asia and HBO South Asia (see Note 3 for additional information). | ||||||||||||||||||||
Intangible Assets | ||||||||||||||||||||
The Company recorded noncash impairments of intangible assets during the years ended December 31, 2014, 2013 and 2012 by reportable segment, as follows (millions): | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
(recast) | (recast) | |||||||||||||||||||
Turner | $ | 1 | $ | 18 | $ | 79 | ||||||||||||||
Home Box Office | 4 | - | - | |||||||||||||||||
Warner Bros. | 13 | 1 | 1 | |||||||||||||||||
Time Warner | $ | 18 | $ | 19 | $ | 80 | ||||||||||||||
The Company's intangible assets subject to amortization and related accumulated amortization consisted of the following (millions): | ||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||
Gross | Accumulated Amortization(a) | Net | Gross | Accumulated Amortization(a) | Net | |||||||||||||||
(recast) | ||||||||||||||||||||
Intangible assets subject to | ||||||||||||||||||||
amortization: | ||||||||||||||||||||
Film library | $ | 3,432 | $ | -2,635 | $ | 797 | $ | 3,452 | $ | -2,494 | $ | 958 | ||||||||
Brands, tradenames and other | ||||||||||||||||||||
intangible assets | 710 | -366 | 344 | 686 | -306 | 380 | ||||||||||||||
Total | $ | 4,142 | $ | -3,001 | $ | 1,141 | $ | 4,138 | $ | -2,800 | $ | 1,338 | ||||||||
____________ | ||||||||||||||||||||
(a) The film library has a weighted-average remaining life of approximately 6 years and is amortized using a film forecast computation methodology. Amortization of brands, tradenames and other intangible assets subject to amortization is provided generally on a straight-line basis over their respective useful lives. | ||||||||||||||||||||
The Company recorded amortization expense of $202 million in 2014 compared to $209 million in 2013 and $212 million in 2012. Amortization expense may vary in the future as acquisitions, dispositions and impairments, if any, occur and as purchase price allocations are finalized. The Company's estimated amortization expense for the succeeding five years ended December 31 is as follows (millions): | ||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||
Estimated amortization expense | $ | 191 | $ | 186 | $ | 176 | $ | 170 | $ | 166 |
Dispositions_and_Acquisitions
Dispositions and Acquisitions | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Acquisitions and Dispositions [Abstract] | |||||||||||
DISPOSITIONS AND ACQUISITIONS | 3. DISPOSITIONS AND ACQUISITIONS | ||||||||||
Dispositions | |||||||||||
Separation of Time Inc. | |||||||||||
As discussed in Note 1, on June 6, 2014, the Company completed the legal and structural separation of the Company's Time Inc. segment from the Company. With the completion of the Time Separation, the Company disposed of the Time Inc. segment in its entirety and ceased to consolidate its assets, liabilities and results of operations in the Company's consolidated financial statements. Accordingly, the Company has recast its financial information to present the financial position and results of operations of its former Time Inc. segment as discontinued operations in the consolidated financial statements for all periods presented. | |||||||||||
Imagine | |||||||||||
In 2012, Turner shut down its general entertainment network, Imagine, in India and recognized $123 million of charges related to the shutdown. These charges consisted of $117 million primarily related to certain receivables, including value added tax receivables, inventories and long-lived assets, including Goodwill, and $6 million related to exit and other transaction costs. | |||||||||||
TNT Turkey | |||||||||||
In 2012, Turner shut down its TNT television operations in Turkey and recognized charges of $85 million, consisting of $57 million primarily related to certain receivables, including value added tax receivables, inventories and other assets; $12 million related to exit and other transaction costs; and $16 million related to an investment. | |||||||||||
Acquisitions | |||||||||||
Eyeworks | |||||||||||
On June 2, 2014, Warner Bros. acquired the operations outside the U.S. of Eyeworks Group, a television production and distribution company, which are located in 15 countries (across Europe and South America and in Australia and New Zealand) for approximately $267 million, net of cash acquired. | |||||||||||
CME | |||||||||||
Central European Media Enterprises Ltd. (“CME”) is a publicly-traded broadcasting company operating leading networks in six Central and Eastern European countries. During 2014, 2013 and 2012, the Company acquired additional interests in CME for $396 million, $288 million and $171 million, respectively. For more information about the Company's investments in and transactions with CME, see Note 4. | |||||||||||
HBO Asia and HBO South Asia | |||||||||||
In September 2013, Home Box Office purchased its partner's interests in HBO Asia and HBO South Asia (collectively, “HBO Asia”) for $37 million in cash, net of cash acquired. HBO Asia operates HBO- and Cinemax- branded premium pay and basic tier television services serving over 15 countries in Asia. As a result of this acquisition, Home Box Office owns 100% of HBO Asia and has consolidated its results of operations and financial condition effective September 30, 2013. For the year ended December 31, 2013, Home Box Office recognized a $104 million gain upon Home Box Office's acquisition of its former partner's interests in HBO Asia. | |||||||||||
Bleacher Report | |||||||||||
In 2012, Turner acquired Bleacher Report, a leading online and mobile sports property, for $170 million, net of cash acquired. | |||||||||||
Summary of Discontinued Operations | |||||||||||
Discontinued operations primarily reflects the Company's former Time Inc. segment. In addition, during 2013, the Company recognized additional net tax benefits of $137 million associated with certain foreign tax attributes of the Warner Music Group, which the Company disposed of in 2004. | |||||||||||
Discontinued operations for the years ended December 31, 2014, 2013 and 2012 is as follows (millions, except per share amounts): | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Total revenues | $ | 1,415 | $ | 3,334 | $ | 3,404 | |||||
Pretax income (loss) | -98 | 335 | 415 | ||||||||
Income tax benefit (provision) | 31 | 2 | -156 | ||||||||
Net income (loss) | $ | -67 | $ | 337 | $ | 259 | |||||
Net income (loss) attributable to Time Warner Inc. shareholders | $ | -67 | $ | 337 | $ | 259 | |||||
Per share information attributable to Time Warner Inc. | |||||||||||
common shareholders: | |||||||||||
Basic net income (loss) per common share | $ | -0.07 | $ | 0.36 | $ | 0.28 | |||||
Average common shares outstanding — basic | 863.3 | 920 | 954.4 | ||||||||
Diluted net income (loss) per common share | $ | -0.07 | $ | 0.36 | $ | 0.27 | |||||
Average common shares outstanding — diluted | 882.6 | 942.6 | 976.3 |
Investments
Investments | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Investments [Abstract] | |||||||||||
INVESTMENTS | 4. INVESTMENTS | ||||||||||
Time Warner's investments, by category, consist of (millions): | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
(recast) | |||||||||||
Equity-method investments | $ | 898 | $ | 936 | |||||||
Fair-value and other investments: | |||||||||||
Deferred compensation investments, recorded at fair value | 195 | 248 | |||||||||
Deferred compensation insurance-related investments, recorded at cash | |||||||||||
surrender value | 410 | 397 | |||||||||
Available-for-sale securities | 79 | 96 | |||||||||
Equity Warrants | 242 | - | |||||||||
Total fair-value and other investments | 926 | 741 | |||||||||
Held-to-maturity securities | 239 | - | |||||||||
Cost-method investments | 263 | 332 | |||||||||
Total | $ | 2,326 | $ | 2,009 | |||||||
Available-for-sale securities are recorded at fair value in the Consolidated Balance Sheet, and the realized gains and losses are included as a component of Other loss, net in the Consolidated Statement of Operations. The cost basis, unrealized gains and fair market value of available-for-sale securities are set forth below (millions): | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
(recast) | |||||||||||
Cost basis | $ | 59 | $ | 53 | |||||||
Gross unrealized gain | 22 | 46 | |||||||||
Gross unrealized loss | -2 | -3 | |||||||||
Fair value | $ | 79 | $ | 96 | |||||||
Gains and losses reclassified from Accumulated other comprehensive loss, net to Other loss, net in the Consolidated Statement of Operations are determined based on the specific identification method. | |||||||||||
CME | |||||||||||
As of December 31, 2014, the Company owned 61.4 million shares of CME's Class A common stock and 1 share of Series A convertible preferred stock, which is convertible into 11.2 million shares of CME's Class A common stock and votes with the Class A common stock on an as-converted basis. The Company accounts for its investment in CME's Class A common stock and Series A convertible preferred stock under the equity method of accounting. | |||||||||||
As of December 31, 2014, the Company owned 92.4 million shares of CME's Series B convertible redeemable preferred shares. The Company accounts for its investment in CME's Series B convertible redeemable preferred shares under the cost method of accounting. See below for more information. | |||||||||||
As of December 31, 2014, the Company has an approximate 49% voting interest in CME's common stock and an approximate 75% economic interest in CME on a diluted basis. | |||||||||||
2014 Transactions | |||||||||||
On May 2, 2014, pursuant to a rights offering by CME, Time Warner acquired approximately 2.8 million units, each consisting of $100 principal amount of 15% senior secured notes due 2017 (the “Senior Secured Notes”) and 21 unit warrants, with each unit warrant entitling the Company to purchase one share of CME Class A common stock. In addition, Time Warner acquired 581,533 units in a private offering, and CME issued warrants to Time Warner to purchase an additional 30 million shares of Class A common stock. The warrants issued to Time Warner, including the unit warrants in connection with the rights offering and the private offering, have a four-year term and an exercise price of $1.00 per share, do not contain any voting rights and are not exercisable until the second anniversary of their issuance. The warrants are subject to a limited right whereby the Company can exercise any of its warrants earlier solely to own up to 49.9% of CME's Class A common stock. The initial value of the warrants was recognized as a discount to the Senior Secured Notes and the term loan provided by the Company to CME (as described below) and a deferred gain related to the revolving credit facility provided by the Company to CME (as described below). The Senior Secured Notes are accounted for at their amortized cost and classified as held-to-maturity in the Consolidated Balance Sheet. At December 31, 2014, the carrying value of the warrants and Senior Secured Notes were $242 million and $239 million, respectively. | |||||||||||
Additionally, Time Warner provided CME a $115 million revolving credit facility and a $30 million term loan that mature on December 1, 2017. Following an amendment in connection with the November 2014 transactions described below, amounts outstanding under the revolving credit facility bear interest at a rate per annum based on LIBOR (subject to a minimum rate of 1.00%) plus 9%. CME can pay accrued interest for an applicable quarterly interest period either fully in cash or by adding such amount to the outstanding principal amount of the revolving credit facility. The revolving credit facility also contains a commitment fee on the average daily unused amount under the facility of 0.50% per annum. As of December 31, 2014, $25 million was outstanding under the revolving credit facility, which is classified as an other asset in the Consolidated Balance Sheet. The $30 million term loan bears interest at a rate of 15.0% per annum, paid semi-annually either fully in cash or by adding such amount to the principal amount of the loan. The term loan is classified as an other asset in the Consolidated Balance Sheet. | |||||||||||
On November 14, 2014, Time Warner and CME entered into an agreement pursuant to which Time Warner agreed to assist CME in refinancing $261 million aggregate principal amount of its Senior Convertible Notes due 2015 (“2015 Notes”) and €240 million aggregate principal amount of its Senior Notes due 2017 (“2017 Notes”). In connection with this agreement, CME entered into a €251 million senior unsecured term loan that matures on November 1, 2017 (the “2017 Term Loan”) with third-party financial institutions the same day. Time Warner has guaranteed CME's obligations under the 2017 Term Loan for a fee equal to 8.5% less the interest rate on the 2017 Term Loan. The fee is payable to Time Warner in cash or in kind at CME's option. CME used the proceeds of the 2017 Term Loan to redeem the 2017 Notes. CME also entered into unsecured interest rate hedge arrangements to protect against changes in the applicable interest rate on the 2017 Term Loan during its term. Time Warner has also guaranteed CME's obligations under the hedge arrangements. | |||||||||||
Upon maturity of the 2015 Notes in November 2015, Time Warner will, at its option, either (i) guarantee a $261 million unsecured term loan due November 1, 2019 (the “2015 Term Loan”) obtained by CME from one or more third-party financial institutions, for a fee equal to 8.5% less the interest rate on the 2015 Term Loan or (ii) provide a $261 million senior secured term loan that matures on November 1, 2019 directly to CME, with an 8.5% interest rate (the “Time Warner Loan”). The guarantee fee or interest payments, as applicable, will be paid to Time Warner in cash or in kind at CME's option. Not later than the maturity of the 2015 Term Loan or the Time Warner Loan, as applicable, Time Warner also will earn a commitment fee of $9 million, which will accrue interest at 8.5% from the date of the 2015 Term Loan or Time Warner Loan, as applicable, until paid. | |||||||||||
2013 Transactions | |||||||||||
During the second quarter of 2013, CME conducted a public offering of shares of its Class A common stock in which the Company purchased approximately 28.5 million shares for approximately $78 million in cash. On June 25, 2013, the Company purchased $200 million of CME's newly-issued, non-voting Series B convertible redeemable preferred shares. The Series B convertible redeemable preferred shares will accrete in value through the third anniversary of closing at an annual rate of 7.5% compounded quarterly and from the third anniversary to the fifth anniversary of closing at an annual rate of 3.75% compounded quarterly. Thereafter, the Series B convertible redeemable preferred shares will no longer accrete in value. CME has the right from the third anniversary to pay a cash dividend to the Company in lieu of further accretion. Each Series B convertible redeemable preferred share may be converted into shares of Class A common stock at the Company's option at any time after the third anniversary of the closing. The number of shares of Class A common stock received upon conversion would be determined by dividing the accreted value of the Series B convertible redeemable preferred shares (including any accrued but unpaid dividends) by the conversion price. In connection with the May 2014 transactions described above, the conversion price was adjusted from $3.1625 to $2.4167. The Series B convertible redeemable preferred shares will also be redeemable at the option of CME at any time after the third anniversary of the closing; however, upon notice from CME of a proposed redemption, the Company may elect to receive cash or shares of Class A common stock. | |||||||||||
2012 Transactions | |||||||||||
In 2012, the Company acquired approximately 10.8 million shares of Class A common stock and 1 share of Series A convertible preferred stock for $165 million. | |||||||||||
Equity-Method Investments | |||||||||||
At December 31, 2014, investments accounted for using the equity method included the Company's investments in the Class A common stock and Series A convertible preferred stock of CME, HBO LAG (88% owned) and certain other ventures that are generally 20% to 50% owned. | |||||||||||
HBO LAG is a VIE and, because voting control of this entity is shared equally with the other investor in HBO LAG, the Company has determined that it is not the primary beneficiary of this VIE. As of December 31, 2014 and December 31, 2013, the Company's aggregate investment in HBO LAG was $568 million and $580 million, respectively, and was recorded in Investments, including available-for-sale securities, in the Consolidated Balance Sheet. The investment in HBO LAG is intended to enable the Company to more broadly leverage its programming and digital strategy in the territories served and to capitalize on growing multi-channel television opportunities in such territories. The Company provides programming as well as certain services, including distribution, licensing and technological and administrative support, to HBO LAG. HBO LAG is financed through cash flows from its operations, and the Company is not obligated to provide HBO LAG with any additional financial support. In addition, the assets of HBO LAG are not available to settle the Company's obligations. | |||||||||||
Cost-Method Investments | |||||||||||
The Company's cost-method investments include its investment in the Series B convertible redeemable preferred shares of CME as well as its investments in entities such as non-public start-up companies and investment funds. The Company uses available qualitative and quantitative information to evaluate all cost-method investments for impairment at least quarterly. | |||||||||||
Gain on Sale of Investments | |||||||||||
For the year ended December 31, 2014, the Company recognized net gains of $36 million, primarily related to miscellaneous investments sold during the year. For the year ended December 31, 2013, the Company recognized net gains of $76 million, primarily related to a gain on the sale of the Company's investment in a theater venture in Japan. For the year ended December 31, 2012, the Company recognized net gains of $11 million related to the sale of various investments. | |||||||||||
Investment Writedowns | |||||||||||
For the years ended December 31, 2014, 2013 and 2012, the Company incurred writedowns to reduce the carrying value of certain investments that experienced other-than-temporary impairments, as set forth below (millions): | |||||||||||
December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Equity-method investments | $ | 21 | $ | 5 | $ | 25 | |||||
Cost-method investments | 8 | 5 | 14 | ||||||||
Available-for-sale securities | 6 | 7 | 7 | ||||||||
Total | $ | 35 | $ | 17 | $ | 46 | |||||
The impairment of equity-method investments incurred during the year ended December 31, 2012 is primarily related to the shutdown of TNT television operations in Turkey. For more information on this investment, see Note 3. While Time Warner has recognized all declines that are believed to be other-than-temporary as of December 31, 2014, it is reasonably possible that individual investments in the Company's portfolio may experience other-than-temporary declines in value in the future if the underlying investees experience poor operating results or the U.S. or certain foreign equity markets experience declines in value. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | 5. FAIR VALUE MEASUREMENTS | |||||||||||||||||||||||||
A fair value measurement is determined based on the assumptions that a market participant would use in pricing an asset or liability. A three-tiered hierarchy draws distinctions between market participant assumptions based on (i) observable inputs such as quoted prices in active markets (Level 1), (ii) inputs other than quoted prices in active markets that are observable either directly or indirectly (Level 2) and (iii) unobservable inputs that require the Company to use present value and other valuation techniques in the determination of fair value (Level 3). The following table presents information about assets and liabilities required to be carried at fair value on a recurring basis as of December 31, 2014 and December 31, 2013, respectively (millions): | ||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
(recast) | ||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Trading securities: | ||||||||||||||||||||||||||
Diversified equity securities(a) | $ | 232 | $ | 5 | $ | - | $ | 237 | $ | 254 | $ | 5 | $ | - | $ | 259 | ||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||
Equity securities | 19 | - | - | 19 | 56 | - | - | 56 | ||||||||||||||||||
Debt securities | - | 60 | - | 60 | - | 40 | - | 40 | ||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||
Foreign exchange contracts | - | 61 | - | 61 | - | 10 | - | 10 | ||||||||||||||||||
Other | - | - | 247 | 247 | 6 | - | 8 | 14 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||
Foreign exchange contracts | - | -3 | - | -3 | - | -17 | - | -17 | ||||||||||||||||||
Other | - | - | -6 | -6 | - | - | -7 | -7 | ||||||||||||||||||
Total | $ | 251 | $ | 123 | $ | 241 | $ | 615 | $ | 316 | $ | 38 | $ | 1 | $ | 355 | ||||||||||
__________ | ||||||||||||||||||||||||||
(a) Consists of investments related to deferred compensation. | ||||||||||||||||||||||||||
The Company primarily applies the market approach for valuing recurring fair value measurements. As of December 31, 2014, assets and liabilities valued using significant unobservable inputs (Level 3) primarily related to an asset of $242 million related to warrants to purchase shares of CME Class A common stock. The Company estimates the fair value of these warrants using a Monte Carlo Simulation model. Significant unobservable inputs used in the fair value measurement at December 31, 2014 are an expected term of 2.59 years and an expected volatility of approximately 82%. As of both December 31, 2014 and 2013, the other Level 3 assets and liabilities consisted of assets related to equity instruments held by employees of former subsidiaries of the Company, liabilities for contingent consideration and options to redeem securities. | ||||||||||||||||||||||||||
The following table reconciles the beginning and ending balances of net derivative assets and liabilities classified as Level 3 and identifies the total gains (losses) the Company recognized during the year ended December 31, 2014 and 2013 on such assets and liabilities that were included in the Consolidated Balance Sheet as of December 31, 2014 and 2013 (millions): | ||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||
Balance as of the beginning of the period | $ | 1 | $ | 7 | ||||||||||||||||||||||
Total gains (losses), net: | ||||||||||||||||||||||||||
Included in operating income | - | -1 | ||||||||||||||||||||||||
Included in other loss, net | 31 | 12 | ||||||||||||||||||||||||
Included in other comprehensive income (loss) | - | - | ||||||||||||||||||||||||
Purchases | 213 | - | ||||||||||||||||||||||||
Settlements | -20 | -15 | ||||||||||||||||||||||||
Issuances | 16 | -2 | ||||||||||||||||||||||||
Transfers in and/or out of Level 3 | - | - | ||||||||||||||||||||||||
Balance as of the end of the period | $ | 241 | $ | 1 | ||||||||||||||||||||||
Net gain for the period included in net income related to assets and liabilities | ||||||||||||||||||||||||||
still held as of the end of the period | $ | 32 | $ | 9 | ||||||||||||||||||||||
Other Financial Instruments | ||||||||||||||||||||||||||
The Company's other financial instruments, including debt, are not required to be carried at fair value. Based on the interest rates prevailing at December 31, 2014, the fair value of Time Warner's debt exceeded its carrying value by approximately $4.251 billion and, based on interest rates prevailing at December 31, 2013, the fair value of Time Warner's debt exceeded its carrying value by approximately $2.754 billion. The fair value of Time Warner's debt was considered a Level 2 measurement as it was based on observable market inputs such as current interest rates and, where available, actual sales transactions. Unrealized gains or losses on debt do not result in the realization or expenditure of cash and generally are not recognized in the consolidated financial statements unless the debt is retired prior to its maturity. | ||||||||||||||||||||||||||
Information about the Company's investments in CME that are not required to be carried at fair value on a recurring basis is as follows (millions): | ||||||||||||||||||||||||||
Carrying Value | Fair Value | Fair Value Hierarchy | ||||||||||||||||||||||||
Class A common stock(a) | $ | 0 | $ | 233 | Level 1 | |||||||||||||||||||||
Series B convertible redeemable preferred shares | 148 | 297 | Level 2 | |||||||||||||||||||||||
Senior secured notes | 239 | 408 | Level 2 | |||||||||||||||||||||||
__________ | ||||||||||||||||||||||||||
(a) Includes one share of Series A convertible preferred stock. | ||||||||||||||||||||||||||
The fair values of the Company's investments in CME's Class A common stock (including Series A convertible preferred stock) and Series B convertible redeemable preferred shares are primarily determined by reference to the December 31, 2014 closing price of CME's common stock. The fair value of the Company's investment in CME's Senior Secured Notes is primarily determined by reference to observable sales transactions. | ||||||||||||||||||||||||||
The carrying value for the majority of the Company's other financial instruments approximates fair value due to the short-term nature of the financial instruments or because the financial instruments are of a longer-term nature and are recorded on a discounted basis. | ||||||||||||||||||||||||||
Non-Financial Instruments | ||||||||||||||||||||||||||
The majority of the Company's non-financial instruments, which include goodwill, intangible assets, inventories and property, plant and equipment, are not required to be carried at fair value on a recurring basis. However, if certain triggering events occur (or at least annually for goodwill and indefinite-lived intangible assets), a non-financial instrument is required to be evaluated for impairment. If the Company determines that the non-financial instrument is impaired, the Company would be required to write down the non-financial instrument to its fair value. | ||||||||||||||||||||||||||
During the year ended December 31, 2014, the Company performed impairment reviews of a tradename at Warner Bros., as well as certain intangible assets at international subsidiaries of Turner and Home Box Office. As a result, the Company recorded noncash impairments of $17 million to write down the value of these assets to $12 million. During the year ended December 31, 2013, the Company performed impairment reviews of certain intangible assets at international subsidiaries of Turner. As a result, the Company recorded noncash impairments of $18 million to write down the value of these assets to $3 million. These fair value measurements were considered to be Level 3 measurements and were determined using a discounted cash flow (“DCF”) methodology with assumptions for cash flows associated with the use and eventual disposition of the assets. | ||||||||||||||||||||||||||
During the years ended December 31, 2014 and December 31, 2013, the Company also made fair value measurements related to certain theatrical films and television programs. In determining the fair value of its theatrical films, the Company employs a DCF methodology that includes cash flow estimates of a film's ultimate revenue and costs as well as a discount rate. The discount rate utilized in the DCF analysis is based on the weighted average cost of capital of the respective business (e.g., Warner Bros.) plus a risk premium representing the risk associated with producing a particular theatrical film. The fair value of any theatrical film and television production that management plans to abandon is zero. As the primary determination of fair value is determined using a DCF model, the resulting fair value is considered a Level 3 measurement. The following table presents certain theatrical film and television production costs, which were recorded as inventory in the Consolidated Balance Sheet, that were written down to fair value (millions): | ||||||||||||||||||||||||||
Carrying value before write down | Carrying value after write down | |||||||||||||||||||||||||
Fair value measurements made during the year ended December 31,: | ||||||||||||||||||||||||||
2014 | $ | 331 | $ | 201 | ||||||||||||||||||||||
2013 | 289 | 206 |
Inventories_and_Theatrical_Fil
Inventories and Theatrical Film and Television Production Costs | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
INVENTORIES AND THEATRICAL FILM AND TELEVISION PRODUCTION COSTS | 6. INVENTORIES AND THEATRICAL FILM AND TELEVISION PRODUCTION COSTS | |||||||
Inventories and theatrical film and television production costs consist of (millions): | ||||||||
31-Dec-14 | 31-Dec-13 | |||||||
(recast) | ||||||||
Inventories: | ||||||||
Programming costs, less amortization | $ | 3,251 | $ | 3,416 | ||||
Other inventory, primarily DVDs and Blu-ray Discs | 228 | 269 | ||||||
Total inventories | 3,479 | 3,685 | ||||||
Less: current portion of inventory | -1,700 | -1,648 | ||||||
Total noncurrent inventories | 1,779 | 2,037 | ||||||
Theatrical film production costs:(a) | ||||||||
Released, less amortization | 641 | 660 | ||||||
Completed and not released | 379 | 246 | ||||||
In production | 1,266 | 1,480 | ||||||
Development and pre-production | 105 | 107 | ||||||
Television production costs:(a) | ||||||||
Released, less amortization | 1,251 | 1,249 | ||||||
Completed and not released | 521 | 536 | ||||||
In production | 889 | 694 | ||||||
Development and pre-production | 10 | 7 | ||||||
Total theatrical film and television production costs | 5,062 | 4,979 | ||||||
Total noncurrent inventories and theatrical film and television production costs | $ | 6,841 | $ | 7,016 | ||||
_____________ | ||||||||
(a) Does not include $797 million and $958 million of acquired film library intangible assets as of December 31, 2014 and December 31, 2013, respectively, which are included in Intangible assets subject to amortization, net in the Consolidated Balance Sheet. | ||||||||
Approximately 89% of unamortized film costs for released theatrical and television content are expected to be amortized within three years from December 31, 2014. In addition, approximately $1.9 billion or 68% of the film costs of released and completed and not released theatrical and television product are expected to be amortized during the twelve-month period ending December 31, 2015. | ||||||||
Derivative_Instruments
Derivative Instruments | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||
DERIVATIVE INSTRUMENTS | 7. DERIVATIVE INSTRUMENTS | |||||||
Time Warner uses derivative instruments, primarily forward contracts, to manage the risk associated with the volatility of future cash flows denominated in foreign currencies and changes in fair value resulting from changes in foreign currency exchange rates. The principal currencies being hedged include the British Pound, Euro, Australian Dollar and Canadian Dollar. Time Warner uses foreign exchange contracts that generally have maturities of three to 18 months to hedge various foreign exchange exposures, including the following: (i) variability in foreign-currency-denominated cash flows, such as the hedges of unremitted or forecasted royalty and license fees owed to Time Warner's domestic companies for the sale or anticipated sale of U.S. copyrighted products abroad or cash flows for certain film production costs denominated in a foreign currency (i.e., cash flow hedges), and (ii) currency risk associated with foreign-currency-denominated operating assets and liabilities (i.e., fair value hedges). | ||||||||
The Company also enters into derivative contracts that economically hedge certain of its foreign currency risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. These economic hedges are used primarily to offset the change in certain foreign currency denominated long-term receivables and certain foreign-currency-denominated debt due to changes in the underlying foreign exchange rates. | ||||||||
Gains and losses from hedging activities recognized in the Consolidated Statement of Operations, including hedge ineffectiveness, were not material for the years ended December 31, 2014, 2013 and 2012. In addition, such gains and losses were largely offset by corresponding economic gains or losses from the respective transactions that were hedged. | ||||||||
The Company monitors its positions with, and the credit quality of, the financial institutions that are party to its financial transactions and has entered into collateral agreements with certain of these counterparties to further protect the Company in the event of deterioration of the credit quality of such counterparties on outstanding transactions. Additionally, netting provisions are included in agreements in situations where the Company executes multiple contracts with the same counterparty. For such foreign exchange contracts, the Company offsets the fair values of the amounts owed to or due from the same counterparty and classifies the net amount as a net asset or net liability within Prepaid expenses and other current assets or Accounts payable and accrued liabilities, respectively, in the Consolidated Balance Sheet. The following is a summary of amounts recorded in the Consolidated Balance Sheet pertaining to Time Warner's use of foreign currency derivatives at December 31, 2014 and December 31, 2013 (millions): | ||||||||
December 31, 2014(a) | December 31, 2013(b) | |||||||
Prepaid expenses and other current assets | $ | 61 | $ | 10 | ||||
Accounts payable and accrued liabilities | -3 | -17 | ||||||
___________ | ||||||||
(a) Includes $139 million ($92 million of qualifying hedges and $47 million of economic hedges) and $81 million ($65 million of qualifying hedges and $16 million of economic hedges) of foreign exchange derivative contracts in asset and liability positions, respectively. | ||||||||
(b) Includes $77 million ($64 million of qualifying hedges and $13 million of economic hedges) and $84 million ($53 million of qualifying hedges and $31 million of economic hedges) of foreign exchange derivative contracts in asset and liability positions, respectively. | ||||||||
At December 31, 2014 and December 31, 2013, $20 million and $28 million of gains, respectively, related to cash flow hedges are recorded in Accumulated other comprehensive loss, net and are expected to be recognized in earnings at the same time the hedged items affect earnings. Included in Accumulated other comprehensive loss, net at December 31, 2014 and December 31, 2013 are net losses of $5 million and net gains $21 million, respectively, related to hedges of cash flows associated with films that are not expected to be released within the next twelve months. |
Long_Term_Debt_and_Other_Finan
Long Term Debt and Other Financing Arrangements | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||
LONG TERM DEBT AND OTHER FINANCING ARRANGEMENTS | 8. LONG-TERM DEBT AND OTHER FINANCING ARRANGEMENTS | |||||||||||||||||||
The Company's long-term debt and other financing arrangements consist of revolving bank credit facilities, a commercial paper program, fixed-rate public debt and other obligations. The principal amounts of long-term debt adjusted for premiums and discounts consist of (millions): | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(recast) | ||||||||||||||||||||
Fixed-rate public debt | $ | 21,920 | $ | 19,905 | ||||||||||||||||
Other obligations | 574 | 222 | ||||||||||||||||||
Subtotal | 22,494 | 20,127 | ||||||||||||||||||
Debt due within one year | -1,118 | -66 | ||||||||||||||||||
Total long-term debt | $ | 21,376 | $ | 20,061 | ||||||||||||||||
The Company's unused committed capacity as of December 31, 2014 was $7.637 billion, including $2.618 billion of Cash and equivalents. At December 31, 2014, there were no borrowings outstanding under the Revolving Credit Facilities, as defined below, and no commercial paper was outstanding under the commercial paper program. 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 interest rate on Time Warner's total debt was 5.80% and 6.11% at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||
Revolving Credit Facilities and Commercial Paper Program | ||||||||||||||||||||
Revolving Credit Facilities | ||||||||||||||||||||
On December 18, 2014, Time Warner amended its $5.0 billion of senior unsecured credit facilities (the “Revolving Credit Facilities”), which consist of two $2.5 billion revolving credit facilities, to extend the maturity dates of both from December 18, 2018 to December 18, 2019 pursuant to a First Amendment, dated as of December 18, 2014, to the amended and restated credit agreement, dated as of January 19, 2011, as amended and restated as of December 18, 2013 (the “Credit Agreement”). | ||||||||||||||||||||
The permitted borrowers under the Revolving Credit Facilities are Time Warner and Time Warner International Finance Limited (“TWIFL” and, together with Time Warner, the “Borrowers”). The interest rate on borrowings and facility fees under the Revolving Credit Facilities are the same for both revolving credit facilities and are based on the credit rating for Time Warner's senior unsecured long-term debt. Based on the credit rating as of December 31, 2014, the interest rate on borrowings under the Revolving Credit Facilities would be LIBOR plus 1.10% per annum and the facility fee was 0.15% per annum. | ||||||||||||||||||||
The Revolving Credit Facilities provide same-day funding and multi-currency capability, and a portion of the commitment, not to exceed $500 million at any time, may be used for the issuance of letters of credit. The covenants in the Revolving Credit Facilities include a maximum consolidated leverage ratio covenant of 4.5 times the consolidated EBITDA, as defined in the Revolving Credit Facilities, of Time Warner, but exclude any credit ratings-based defaults or covenants or any ongoing covenant or representations specifically relating to a material adverse change in Time Warner's financial condition or results of operations. The terms and related financial metrics associated with the leverage ratio are defined in the Revolving Credit Facilities. At December 31, 2014, the Company was in compliance with the leverage covenant, with a consolidated leverage ratio of approximately 3.1 times. Borrowings under the Revolving Credit Facilities may be used for general corporate purposes, and unused credit is available to support borrowings by Time Warner under its commercial paper program. The Revolving Credit Facilities also contain certain events of default customary for credit facilities of this type (with customary grace periods, as applicable). The Borrowers may from time to time, so long as no default or event of default has occurred and is continuing, increase the commitments under either or both of the Revolving Credit Facilities by up to $500 million per facility by adding new commitments or increasing the commitments of willing lenders. The obligations of each of the Borrowers under the Revolving Credit Facilities are directly or indirectly guaranteed, on an unsecured basis, by Historic TW Inc. (“Historic TW”), Home Box Office and Turner. The obligations of TWIFL under the Revolving Credit Facilities are also guaranteed by Time Warner. | ||||||||||||||||||||
Commercial Paper Program | ||||||||||||||||||||
The Company has a commercial paper program, which was established on February 16, 2011 on a private placement basis, under which Time Warner may issue unsecured commercial paper notes up to a maximum aggregate amount not to exceed the unused committed capacity under the $5.0 billion Revolving Credit Facilities, which support the commercial paper program. Proceeds from the commercial paper program may be used for general corporate purposes. The obligations of the Company under the commercial paper program are directly or indirectly guaranteed, on an unsecured basis, by Historic TW, Home Box Office and Turner. | ||||||||||||||||||||
Public Debt | ||||||||||||||||||||
Time Warner and one of its subsidiaries have various public debt issuances outstanding. At issuance, the maturities of these outstanding series of debt ranged from five to 40 years and the interest rates on debt with fixed interest rates ranged from 2.10% to 9.15%. At December 31, 2014 and 2013, the weighted average interest rate on the Company's outstanding fixed-rate public debt was 5.89% and 6.13%, respectively. At December 31, 2014, the Company's fixed-rate public debt had maturities ranging from 2015 to 2044. | ||||||||||||||||||||
Debt Offering | ||||||||||||||||||||
On May 20, 2014, Time Warner issued $650 million aggregate principal amount of 2.10% Notes due 2019, $750 million aggregate principal amount of 3.55% Notes due 2024 and $600 million aggregate principal amount of 4.65% Debentures due 2044 in a public offering. The securities issued pursuant to the offering are directly or indirectly guaranteed, on an unsecured basis, by Historic TW, Home Box Office and Turner. | ||||||||||||||||||||
Maturities of Public Debt | ||||||||||||||||||||
The Company's public debt matures as follows (millions): | ||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | |||||||||||||||
Debt | $ | 1,000 | $ | 1,150 | $ | 500 | $ | 600 | $ | 650 | $ | 18,131 | ||||||||
Covenants and Credit Rating Triggers | ||||||||||||||||||||
Each of the Company's Credit Agreement and public debt indentures contain customary covenants. A breach of such covenants in the Credit Agreement that continues beyond any grace period constitutes a default, which can limit the Company's ability to borrow and can give rise to a right of the lenders to terminate the Revolving Credit Facilities and/or require immediate payment of any outstanding debt. A breach of such covenants in the public debt indentures beyond any grace period constitutes a default, which can require immediate payment of the outstanding debt. There are no credit ratings-based defaults or covenants in the Credit Agreement or public debt indentures. | ||||||||||||||||||||
The interest rate on borrowings under the Revolving Credit Facilities and the facility fee are based in part on the Company's credit ratings. Therefore, if the Company's credit ratings are lowered, the cost of maintaining the Revolving Credit Facilities and the cost of borrowing increase and, conversely, if the ratings improve, such costs decrease. As of December 31, 2014, the Company's investment grade debt ratings were as follows: Fitch BBB+, Moody's Baa2, and S&P BBB. | ||||||||||||||||||||
As of December 31, 2014, the Company was in compliance with all covenants in the Credit Agreement and its public debt indentures. The Company does not anticipate that it will have any difficulty in the foreseeable future complying with the covenants in its Credit Agreement or public debt indentures. | ||||||||||||||||||||
Other Obligations | ||||||||||||||||||||
Other long-term debt obligations consist of capital lease and other obligations, including committed financings by subsidiaries under local bank credit agreements. At December 31, 2014 and 2013, the weighted average interest rate for other long-term debt obligations was 2.58% and 3.98%, respectively. Significant maturities of other long-term debt obligations are as follows: $100 million in 2015, $125 million in 2018 and $250 million in 2019. | ||||||||||||||||||||
Capital Leases | ||||||||||||||||||||
The Company has entered into various leases primarily related to network equipment that qualify as capital lease obligations. As a result, the present value of the remaining future minimum lease payments is recorded as a capitalized lease asset and related capital lease obligation in the Consolidated Balance Sheet. Assets recorded under capital lease obligations totaled $113 million and $115 million as of December 31, 2014 and 2013, respectively. Related accumulated amortization totaled $69 million and $59 million as of December 31, 2014 and 2013, respectively. | ||||||||||||||||||||
Future minimum capital lease payments at December 31, 2014 are as follows (millions): | ||||||||||||||||||||
2015 | $ | 13 | ||||||||||||||||||
2016 | 11 | |||||||||||||||||||
2017 | 9 | |||||||||||||||||||
2018 | 9 | |||||||||||||||||||
2019 | 8 | |||||||||||||||||||
Thereafter | 12 | |||||||||||||||||||
Total | 62 | |||||||||||||||||||
Amount representing interest | -10 | |||||||||||||||||||
Present value of minimum lease payments | 52 | |||||||||||||||||||
Current portion | -10 | |||||||||||||||||||
Total long-term portion | $ | 42 | ||||||||||||||||||
Film Tax-Advantaged Arrangements | ||||||||||||||||||||
The Company's film and TV production businesses, on occasion, enter into tax-advantaged transactions with foreign investors that are thought to generate tax benefits for such investors. The Company believes that its tax profile is not affected by its participation in these arrangements in any jurisdiction. The foreign investors provide consideration to the Company for entering into these arrangements. | ||||||||||||||||||||
Although these transactions often differ in form, they generally involve circumstances in which the Company enters into a sale-leaseback arrangement involving its film product with third-party special purpose entities (“SPEs”) owned by the foreign investors. The Company maintains its rights and control over the use of its film product. The Company evaluates these SPEs for consolidation in accordance with its policy. Because the Company generally does not have a controlling interest in the SPEs, it generally does not consolidate them. In addition, the Company does not guarantee and is not otherwise responsible for the equity and debt in these SPEs and does not participate in the profits or losses of these SPEs. The Company accounts for these arrangements based on their substance, and the Company records the costs of producing the films as an asset and records the net benefit received from the investors as a reduction of film and television production costs resulting in lower film and television production cost amortization for the films involved in the arrangement. At December 31, 2014, such SPEs were capitalized with approximately $2.9 billion of debt and equity from the third-party investors. These transactions resulted in reductions of film and television production cost amortization totaling $1 million, $1 million and $10 million during the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Tax Disclosure [Abstract] | |||||||||||
INCOME TAXES | 9. INCOME TAXES | ||||||||||
Domestic and foreign income before income taxes and discontinued operations are as follows (millions): | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Domestic | $ | 4,296 | $ | 4,836 | $ | 4,097 | |||||
Foreign | 383 | 132 | -64 | ||||||||
Total | $ | 4,679 | $ | 4,968 | $ | 4,033 | |||||
Current and Deferred income taxes (tax benefits) provided on Income from continuing operations are as follows (millions): | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Federal: | |||||||||||
Current | $ | 128 | $ | 494 | $ | 1,066 | |||||
Deferred | 152 | 802 | -147 | ||||||||
Foreign: | |||||||||||
Current(a) | 466 | 348 | 350 | ||||||||
Deferred | - | -21 | 6 | ||||||||
State and Local: | |||||||||||
Current | 25 | 13 | 115 | ||||||||
Deferred | 14 | -22 | -20 | ||||||||
Total(b) | $ | 785 | $ | 1,614 | $ | 1,370 | |||||
____________ | |||||||||||
(a) Includes foreign withholding taxes of $279 million in 2014, $273 million in 2013 and $244 million in 2012. | |||||||||||
(b) Excludes excess tax benefits from equity awards allocated directly to contributed capital of $179 million in 2014, $179 million in 2013 and $83 million in 2012. | |||||||||||
The differences between income taxes expected at the U.S. federal statutory income tax rate of 35% and income taxes provided are as set forth below (millions): | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Taxes on income at U.S. federal statutory rate | $ | 1,638 | $ | 1,739 | $ | 1,412 | |||||
State and local taxes, net of federal tax effects | 64 | 72 | 43 | ||||||||
Domestic production activities deduction……………………………… | -114 | -133 | -152 | ||||||||
Federal Tax Settlement | -687 | - | - | ||||||||
Valuation Allowances | -226 | 3 | -6 | ||||||||
Other | 110 | -67 | 73 | ||||||||
Total | $ | 785 | $ | 1,614 | $ | 1,370 | |||||
Significant components of Time Warner's net deferred tax liabilities are as follows (millions): | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
(recast) | |||||||||||
Deferred tax assets: | |||||||||||
Tax attribute carryforwards(a) | $ | 305 | $ | 999 | |||||||
Receivable allowances and return reserves | 168 | 199 | |||||||||
Royalties, participations and residuals | 429 | 444 | |||||||||
Investments | 62 | 180 | |||||||||
Equity-based compensation | 218 | 239 | |||||||||
Amortization | 231 | 184 | |||||||||
Other | 1,345 | 1,169 | |||||||||
Valuation allowances(a) | -275 | -504 | |||||||||
Total deferred tax assets | $ | 2,483 | $ | 2,910 | |||||||
Deferred tax liabilities: | |||||||||||
Assets acquired in business combinations | $ | 2,874 | $ | 2,939 | |||||||
Unbilled television receivables | 998 | 933 | |||||||||
Unremitted earnings of foreign subsidiaries | 41 | 241 | |||||||||
Depreciation | 264 | 220 | |||||||||
Other | 326 | 495 | |||||||||
Total deferred tax liabilities | 4,503 | 4,828 | |||||||||
Net deferred tax liability | $ | 2,020 | $ | 1,918 | |||||||
_____________ | |||||||||||
(a) The Company has recorded valuation allowances for certain tax attribute carryforwards and other deferred tax assets due to uncertainty that exists regarding future realizability. The tax attribute carryforwards consist of $21 million of tax credits, $58 million of capital losses and $226 million of net operating losses that expire in varying amounts from 2015 through 2034. If, in the future, the Company believes that it is more likely than not that these deferred tax benefits will be realized, the majority of the valuation allowances will be recognized in the Consolidated Statement of Operations. | |||||||||||
U.S. income and foreign withholding taxes have not been recorded on permanently reinvested earnings of certain foreign subsidiaries aggregating approximately $1.1 billion at December 31, 2014. Determination of the amount of unrecognized deferred U.S. income tax liability with respect to such earnings is not practicable. | |||||||||||
For accounting purposes, the Company records equity-based compensation expense and a related deferred tax asset for the future tax deductions it may receive. For income tax purposes, the Company receives a tax deduction equal to the stock price on the date that a restricted stock unit (or performance share unit) vests or the excess of the stock price over the exercise price of an option upon exercise. The deferred tax asset consists of amounts relating to individual unvested and/or unexercised equity-based compensation awards; accordingly, deferred tax assets related to certain equity awards may currently be in excess of the tax benefit ultimately received. The applicable accounting rules require that the deferred tax asset related to an equity-based compensation award be reduced only at the time the award vests (in the case of a restricted stock unit or performance share unit), is exercised (in the case of a stock option) or otherwise expires or is cancelled. This reduction is recorded as an adjustment to Additional paid-in capital (“APIC”), to the extent that the realization of excess tax deductions on prior equity-based compensation awards were recorded directly to APIC. The cumulative amount of such excess tax deductions is referred to as the Company's “APIC Pool.” Any shortfall balance recognized in excess of the Company's APIC Pool is charged to Income tax provision in the Consolidated Statement of Operations. The Company's APIC Pool was sufficient to absorb any shortfalls such that no shortfalls were charged to the Income tax provision during the years ended December 31, 2014, 2013 and 2012. | |||||||||||
Accounting for Uncertainty in Income Taxes | |||||||||||
The Company recognizes income tax benefits for tax positions determined more likely than not to be sustained upon examination, based on the technical merits of the positions. | |||||||||||
Changes in the Company's uncertain income tax positions, excluding the related accrual for interest and penalties, from January 1 through December 31 are set forth below (millions): | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Beginning balance | $ | 2,169 | $ | 2,203 | $ | 2,106 | |||||
Additions for prior year tax positions | 87 | 124 | 97 | ||||||||
Additions for current year tax positions | 69 | 76 | 94 | ||||||||
Reductions for prior year tax positions | -968 | -140 | -60 | ||||||||
Settlements | -8 | -84 | -26 | ||||||||
Lapses in statute of limitations | -22 | -10 | -8 | ||||||||
Ending balance | $ | 1,327 | $ | 2,169 | $ | 2,203 | |||||
Should the Company's position with respect to these uncertain tax positions be upheld, the significant majority of the effect would be recorded in the Consolidated Statement of Operations as part of the Income tax provision. | |||||||||||
During the year ended December 31, 2014, the Company recorded a decrease to interest reserves in the Consolidated Statement of Operations of approximately $62 million and made interest payments in connection with settlements reached during 2014 of approximately $12 million. During the year ended December 31, 2013, the Company recorded interest reserves in the Consolidated Statement of Operations of approximately $35 million and made interest payments in connection with settlements reached during 2013 of approximately $38 million. The amount accrued for interest and penalties as of December 31, 2014 and 2013 was $346 million and $418 million, respectively. The Company's policy is to recognize interest and penalties accrued on uncertain tax positions as part of income tax expense. | |||||||||||
In the Company's judgment, uncertainties related to certain tax matters are reasonably possible of being resolved during the next twelve months. The effect of the resolutions of these matters, a portion of which could vary based on the final terms and timing of actual settlements with taxing authorities, is estimated to be a reduction of recorded unrecognized tax benefits ranging from $0 to $80 million, most of which would lower the Company's effective tax rate. The Company does not otherwise currently anticipate that its reserves related to uncertain income tax positions as of December 31, 2014 will significantly increase or decrease during the twelve-month period ended December 31, 2015; however, various events could cause the Company's current expectations to change in the future. | |||||||||||
During the year ended December 31, 2014, the Company recognized a tax benefit of $687 million primarily related to the reversal of certain tax reserves, including related interest accruals, in connection with a Federal tax settlement on the examination of the Company's 2005 – 2007 tax returns. Certain matters involving the Company's capital loss carryforward and research and development tax credits were not resolved as part of the settlement and, accordingly, the Company is pursuing resolution of such matters through the Internal Revenue Service's (“IRS”) administrative appeals process. | |||||||||||
The Company and its subsidiaries file income tax returns in the U.S. and various state and local and foreign jurisdictions. The IRS is currently conducting an examination of the Company's U.S. income tax returns for the 2008 through 2010 period. | |||||||||||
The Company has filed a petition with the United States Tax Court on a matter relating to the appropriate tax characterization of stock warrants received from Google Inc. in 2002. In December 2014, the Company reached a preliminary agreement with the IRS to resolve this matter. Final resolution of this matter is subject to agreement regarding certain necessary computations and the preparation and execution of definitive documentation. | |||||||||||
As of December 31, 2014, the tax years that remain subject to examination by significant jurisdiction are as follows: | |||||||||||
U.S. federal | 2002 and 2004 through 2014 | ||||||||||
California | 2007 through 2014 | ||||||||||
New York State | 2009 through 2014 | ||||||||||
New York City | 2009 through 2014 |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Equity [Abstract] | |||||||||||
SHAREHOLDERS' EQUITY | 10. SHAREHOLDERS' EQUITY | ||||||||||
Common Stock Repurchase Program | |||||||||||
For the years ended December 31, 2014, 2013 and 2012, the number of shares repurchased pursuant to trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, and their cost are as follows (millions): | |||||||||||
Shares Repurchased | Cost of Shares | ||||||||||
2014 | 77 | $ | 5,500 | ||||||||
2013 | 60 | $ | 3,700 | ||||||||
2012 | 80 | $ | 3,302 | ||||||||
In January 2014, Time Warner's Board of Directors authorized up to $5.0 billion of share repurchases beginning January 1, 2014, including amounts available under the Company's prior stock repurchase program as of December 31, 2013. In June 2014, Time Warner's Board of Directors authorized an additional $5.0 billion of share repurchases. Purchases under the stock repurchase program may be made from time to time on the open market and in privately negotiated transactions. The size and timing of these purchases are based on a number of factors, including price and business and market conditions. As of December 31, 2014, $4.500 billion remained available for purchases under the stock repurchase program. | |||||||||||
Shares Authorized and Outstanding | |||||||||||
At December 31, 2014, shareholders' equity of Time Warner included 832 million shares of common stock (net of 820 million shares of common stock held in treasury). As of December 31, 2014, Time Warner is authorized to issue up to 750 million shares of preferred stock, up to 8.33 billion shares of common stock and up to 600 million shares of additional series of common stock. At December 31, 2013, shareholders' equity of Time Warner included 895 million shares of common stock (net of 757 million shares of common stock held in treasury). | |||||||||||
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): | |||||||||||
Year Ended December 31, 2012 | Pretax | Tax (provision) benefit | Net of tax | ||||||||
Unrealized gains on foreign currency translation | $ | 59 | $ | -8 | $ | 51 | |||||
Reclassification adjustment for losses on foreign currency translation realized in | |||||||||||
net income(a) | 10 | - | 10 | ||||||||
Unrealized gains on securities | 1 | - | 1 | ||||||||
Unrealized losses on benefit obligation | -312 | 106 | -206 | ||||||||
Reclassification adjustment for losses on benefit obligation realized in | |||||||||||
net income(b) | 28 | -10 | 18 | ||||||||
Unrealized gains on derivative financial instruments | 5 | -2 | 3 | ||||||||
Reclassification adjustment for derivative financial instrument gains realized | |||||||||||
in net income(c) | -2 | 1 | -1 | ||||||||
Other comprehensive loss | $ | -211 | $ | 87 | $ | -124 | |||||
Year Ended December 31, 2013 | |||||||||||
Unrealized losses on foreign currency translation | $ | -38 | $ | 16 | $ | -22 | |||||
Reclassification adjustment for gains on foreign currency translation realized in | |||||||||||
net income(a) | -9 | 3 | -6 | ||||||||
Unrealized gains on securities | 22 | -9 | 13 | ||||||||
Unrealized gains on benefit obligation | 203 | -79 | 124 | ||||||||
Reclassification adjustment for losses on benefit obligation realized in | |||||||||||
net income(b) | 33 | -11 | 22 | ||||||||
Unrealized gains on derivative financial instruments | 45 | -18 | 27 | ||||||||
Reclassification adjustment for derivative financial instrument gains realized | |||||||||||
in net income(c) | -35 | 14 | -21 | ||||||||
Other comprehensive income | $ | 221 | $ | -84 | $ | 137 | |||||
Year Ended December 31, 2014 | |||||||||||
Unrealized losses on foreign currency translation | $ | -243 | $ | 15 | $ | -228 | |||||
Unrealized losses on securities | -6 | 2 | -4 | ||||||||
Reclassification adjustment for gains on securities realized in net income(a) | -16 | 6 | -10 | ||||||||
Unrealized losses on benefit obligation | -282 | 95 | -187 | ||||||||
Reclassification adjustment for losses on benefit obligation realized in | |||||||||||
net income(b) | 30 | -11 | 19 | ||||||||
Unrealized gains on derivative financial instruments | 13 | -5 | 8 | ||||||||
Reclassification adjustment for derivative financial instrument gains realized | |||||||||||
in net income(c) | -22 | 8 | -14 | ||||||||
Other comprehensive loss | $ | -526 | $ | 110 | $ | -416 | |||||
__________ | |||||||||||
(a) Pretax (gains) losses included in Other income (loss), net. | |||||||||||
(b) Pretax (gains) losses included in Selling, general and administrative expenses. | |||||||||||
(c) Pretax (gains) losses included in Selling, general and administrative expenses, Costs of revenues and Other income (loss), net are as follows (millions): | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Selling, general and administrative expenses | $ | -5 | $ | -5 | $ | -12 | |||||
Costs of revenues | -18 | -27 | 10 | ||||||||
Other loss, net | 1 | -3 | - | ||||||||
The following summary sets forth the components of Accumulated other comprehensive loss, net of tax (millions): | |||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||
Foreign currency translation losses | $ | -299 | $ | -26 | |||||||
Net unrealized gains on securities | 12 | 26 | |||||||||
Net derivative financial instruments gains | 12 | 18 | |||||||||
Net unfunded/underfunded benefit obligation | -889 | -870 | |||||||||
Accumulated other comprehensive loss, net | $ | -1,164 | $ | -852 |
Income_Per_Common_Share
Income Per Common Share | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Earnings Per Share [Abstract] | |||||||||||
INCOME PER COMMON SHARE | 11. INCOME PER COMMON SHARE | ||||||||||
Set forth below is a reconciliation of Basic and Diluted income per common share from continuing operations attributable to Time Warner Inc. common shareholders (millions, except per share amounts): | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Income from continuing operations attributable to Time Warner Inc. | |||||||||||
shareholders: | $ | 3,894 | $ | 3,354 | $ | 2,666 | |||||
Income allocated to participating securities | -14 | -16 | -18 | ||||||||
Income from continuing operations attributable to Time Warner Inc. | |||||||||||
common shareholders — basic | $ | 3,880 | $ | 3,338 | $ | 2,648 | |||||
Average basic common shares outstanding | 863.3 | 920 | 954.4 | ||||||||
Dilutive effect of equity awards | 19.3 | 22.6 | 21.9 | ||||||||
Average diluted common shares outstanding | 882.6 | 942.6 | 976.3 | ||||||||
Antidilutive common share equivalents excluded from computation | 1 | — | 25 | ||||||||
Income per common share from continuing operations attributable to | |||||||||||
Time Warner Inc. common shareholders: | |||||||||||
Basic | $ | 4.49 | $ | 3.63 | $ | 2.77 | |||||
Diluted | $ | 4.41 | $ | 3.56 | $ | 2.73 |
EquityBased_Compensation
Equity-Based Compensation | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
EQUITY-BASED COMPENSATION | 12. EQUITY-BASED COMPENSATION | |||||||||||||
Equity Plans | ||||||||||||||
The Company has one active equity plan, the Time Warner Inc. 2013 Stock Incentive Plan (the “2013 Stock Incentive Plan”), which was approved by the Company's stockholders on May 23, 2013. Under the 2013 Stock Incentive Plan, the Company is authorized to grant equity awards to employees and non-employee directors covering an aggregate of approximately 36 million shares of the Company's common stock. Stock options and RSUs have been granted to employees and non-employee directors of the Company. Generally, stock options are granted with exercise prices equal to the fair market value on the date of grant, vest in four equal annual installments, and expire ten years from the date of grant. RSUs granted under the 2013 Stock Incentive Plan generally vest in four equal annual installments, while RSUs granted under the Company's prior stock incentive plans generally vest 50% in each of the third and fourth anniversaries of the date of grant. The Company also has a PSU program for executive officers who are awarded a target number of PSUs that represent the contingent (unfunded) right to receive shares of Company common stock at the end of a performance period of three years based on the actual performance level achieved by the Company. Stock options and RSUs generally provide for accelerated vesting upon an election to retire after reaching a specified age and years of service, as well as in certain additional circumstances for non-employee directors. | ||||||||||||||
Holders of RSUs are generally entitled to receive cash dividend equivalents based on the regular quarterly cash dividends declared and paid by the Company during the period that the RSUs are outstanding. Beginning with RSU grants made in 2013, the dividend equivalent payment for holders of RSUs subject to a performance condition is made in cash following the satisfaction of the performance condition. Holders of PSUs also are entitled to receive dividend equivalents based on the regular quarterly cash dividends declared and paid by the Company during the period that the PSUs are outstanding. The dividend equivalent payment is made in cash following the vesting of the PSUs (generally following the end of the applicable performance period) and is based on the number of shares that vest and are paid out. Holders of stock options do not receive dividends or dividend equivalent payments. | ||||||||||||||
Upon the (i) exercise of a stock option, (ii) vesting of an RSU, (iii) vesting of a PSU or (iv) grant of restricted stock, shares of Time Warner common stock may be issued either from authorized but unissued shares or from treasury stock. | ||||||||||||||
In connection with the Time Separation and in accordance with existing antidilution provisions in the Company's equity plans, the number of stock options, RSUs and target PSUs outstanding at the Distribution Date and the exercise prices of such stock options were prospectively adjusted to maintain the value of those awards subsequent to the Time Separation (the “Adjustment”). The changes in the number of shares subject to outstanding equity awards and the exercise prices were determined by comparing the value of such awards immediately prior to the Time Separation to the value of such awards immediately after the Time Separation. Accordingly, the number of shares subject to each equity award outstanding as of the Distribution Date was increased by multiplying such number of shares by a factor of approximately 1.04, while the per share exercise price of each stock option was decreased by dividing such exercise price by a factor of approximately 1.04. The adjustments resulted in an increase of approximately 2 million shares subject to outstanding equity awards following the Time Separation. The adjustments to the outstanding equity awards did not result in any additional compensation expense. | ||||||||||||||
Other information pertaining to each category of equity-based compensation appears below. | ||||||||||||||
Stock Options | ||||||||||||||
The table below summarizes the weighted-average assumptions used to value stock options at their grant date and the weighted-average grant date fair value per share: | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Expected volatility | 26.60% | 29.60% | 31.20% | |||||||||||
Expected term to exercise from grant date | 5.85 years | 6.27 years | 6.50 years | |||||||||||
Risk-free rate | 1.90% | 1.30% | 1.30% | |||||||||||
Expected dividend yield | 1.70% | 2.10% | 2.80% | |||||||||||
Weighted average grant date fair value per option | $ | 16.94 | $ | 13.48 | $ | 8.69 | ||||||||
The following table summarizes information about stock options outstanding as of December 31, 2014: | ||||||||||||||
Number of Options | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Life | Aggregate Intrinsic Value | |||||||||||
(thousands) | (in years) | (thousands) | ||||||||||||
Outstanding as of December 31, 2013 | 36,493 | $ | 33.41 | |||||||||||
Granted | 3,129 | 76.96 | ||||||||||||
Exercised | -10,214 | 32.99 | ||||||||||||
Forfeited or expired | -947 | 43.75 | ||||||||||||
Adjustment due to the Time Separation(a) | 1,360 | |||||||||||||
Outstanding as of December 31, 2014(a) | 29,821 | 36.27 | 4.88 | $ | 1,470,001 | |||||||||
Exercisable as of December 31, 2014(a) | 22,454 | 30.22 | 3.83 | $ | 1,239,551 | |||||||||
____________ | ||||||||||||||
(a) The weighted-average exercise price of the stock options included in the line item “Adjustment due to the Time Separation” is equal to the weighted-average exercise price of the stock options at their grant date divided by a factor of approximately 1.04. The weighted-average exercise price of the stock options outstanding and exercisable as of December 31, 2014 reflect the Adjustment. | ||||||||||||||
As of December 31, 2014, the number, weighted-average exercise price, aggregate intrinsic value and weighted-average remaining contractual term of the aggregate Time Warner stock options that either had vested or are expected to vest approximate the corresponding amounts for options outstanding. As of December 31, 2014, approximately 30 million shares of Time Warner common stock were available for future grants of stock options under the Company's equity plan. | ||||||||||||||
The following table summarizes information about stock options exercised (millions): | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Total intrinsic value | $ | 402 | $ | 491 | $ | 342 | ||||||||
Cash received | 338 | 674 | 1,107 | |||||||||||
Tax benefits realized | 143 | 178 | 127 | |||||||||||
Restricted Stock Units and Target Performance Stock Units | ||||||||||||||
The following table sets forth the weighted-average grant date fair value of RSUs and target PSUs. For certain PSUs, the service inception date precedes the grant date and requires the Company to apply mark-to-market accounting that is reflected in the grant date fair values presented: | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
RSUs | $ | 65.56 | $ | 54.04 | $ | 37.52 | ||||||||
PSUs | 93.45 | 101.14 | 85.42 | |||||||||||
The following table summarizes information about unvested RSUs and target PSUs as of December 31, 2014: | ||||||||||||||
Number of Shares/Units | Weighted- Average Grant Date Fair Value | Aggregate Intrinsic Value | ||||||||||||
(thousands) | (thousands) | |||||||||||||
Unvested as of December 31, 2013 | 14,566 | $ | 40.31 | |||||||||||
Granted (a) | 2,960 | 66.44 | ||||||||||||
Vested | -5,882 | 34.82 | ||||||||||||
Forfeited | -1,035 | 42.96 | ||||||||||||
Adjustment due to the Time Separation(b) | 500 | |||||||||||||
Unvested as of December 31, 2014(b) | 11,109 | 48.68 | $ | 948,897 | ||||||||||
____________ | ||||||||||||||
(a) Includes 2.7 million RSUs and 0.2 million target PSUs granted during 2014 and a payout adjustment of 0.1 million PSUs due to the actual performance level achieved for PSUs granted in 2011 that vested during 2014. | ||||||||||||||
(b) The weighted-average grant date fair value of the RSUs and target PSUs included in the line item "Adjustment due to the Time Separation" is equal to the weighted-average grant date fair value of the awards at their respective grant date divided by a factor of approximately 1.04. The weighted-average grant date fair value of the unvested RSUs and target PSUs as of December 31, 2014 reflect the Adjustment. | ||||||||||||||
The following table sets forth the total intrinsic value of RSUs and target PSUs that vested during the following years (millions): | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
RSUs | $ | 366 | $ | 291 | $ | 177 | ||||||||
PSUs | 17 | 27 | 11 | |||||||||||
Equity-Based Compensation Expense | ||||||||||||||
The impact on Operating income for equity-based compensation awards is as follows (millions): | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
(recast) | (recast) | |||||||||||||
Stock options | $ | 26 | $ | 33 | $ | 45 | ||||||||
RSUs and PSUs | 193 | 205 | 150 | |||||||||||
Total impact on operating income | $ | 219 | $ | 238 | $ | 195 | ||||||||
Tax benefit recognized | $ | 76 | $ | 78 | $ | 66 | ||||||||
Total unrecognized compensation cost related to unvested Time Warner stock option awards as of December 31, 2014, without taking into account expected forfeitures, is $47 million and is expected to be recognized over a weighted-average period between one and two years. Total unrecognized compensation cost related to unvested RSUs and target PSUs as of December 31, 2014, without taking into account expected forfeitures, is $182 million and is expected to be recognized over a weighted-average period between one and two years. | ||||||||||||||
Benefit_Plans
Benefit Plans | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||
BENEFIT PLANS | 13. BENEFIT PLANS | |||||||||||||||||||||||||
Retirement Plan Amendments | ||||||||||||||||||||||||||
Effective after June 30, 2010, the Company's domestic defined benefit pension plans were closed to new hires and employees with less than one year of service, and participating employees stopped accruing additional years of service for purposes of determining the benefits provided by the plans (though crediting years of service for purposes of vesting and eligibility for early retirement benefits continues). Effective December 31, 2013, pay increases are no longer taken into consideration when determining a participating employee's benefits under the plans. | ||||||||||||||||||||||||||
In July 2013, the Company's Board of Directors approved amendments to the Time Warner Group Health Plan. Pursuant to the amendments, (i) subsidized medical benefits provided to eligible retired employees (and their eligible dependents) were discontinued for all future retirees who were employed on December 31, 2013 and who will not meet the eligibility criteria by December 31, 2015 and (ii) effective January 1, 2014, post-65 retiree medical coverage was discontinued and eligible retirees (and their eligible dependents) were moved to coverage provided in the individual health insurance market. | ||||||||||||||||||||||||||
Defined Benefit Pension Plans | ||||||||||||||||||||||||||
A summary of activity for substantially all of Time Warner's domestic and international defined benefit pension plans is as follows: | ||||||||||||||||||||||||||
Benefit Obligation (millions) | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
(recast) | ||||||||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||||
Projected benefit obligation, beginning of year | $ | 3,311 | $ | 3,615 | ||||||||||||||||||||||
Service cost | 3 | 3 | ||||||||||||||||||||||||
Interest cost | 153 | 143 | ||||||||||||||||||||||||
Actuarial loss (gain) | 484 | -307 | ||||||||||||||||||||||||
Benefits paid | -192 | -153 | ||||||||||||||||||||||||
Curtailments/Special termination benefit | -8 | - | ||||||||||||||||||||||||
Transfer out due to the Time Separation | -29 | - | ||||||||||||||||||||||||
Foreign currency exchange rates | -28 | 10 | ||||||||||||||||||||||||
Projected benefit obligation, end of year | $ | 3,694 | $ | 3,311 | ||||||||||||||||||||||
Accumulated benefit obligation, end of year | $ | 3,660 | $ | 3,280 | ||||||||||||||||||||||
Plan Assets (millions) | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
(recast) | ||||||||||||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||||
Fair value of plan assets, beginning of year | $ | 2,766 | $ | 2,808 | ||||||||||||||||||||||
Actual return on plan assets | 333 | 46 | ||||||||||||||||||||||||
Employer contributions | 51 | 51 | ||||||||||||||||||||||||
Benefits paid | -192 | -153 | ||||||||||||||||||||||||
Foreign currency exchange rates | -26 | 14 | ||||||||||||||||||||||||
Fair value of plan assets, end of year | $ | 2,932 | $ | 2,766 | ||||||||||||||||||||||
As of December 31, 2014 and December 31, 2013, the funded status recognized in the Consolidated Balance Sheet reflected a net liability position of $762 million and $545 million, respectively, primarily consisting of noncurrent liabilities of $808 million and $580 million, respectively. As of December 31, 2014 and December 31, 2013, amounts included in Accumulated other comprehensive loss, net were $1.400 billion and $1.149 billion, respectively, primarily consisting of net actuarial losses. | ||||||||||||||||||||||||||
Certain defined benefit pension plans have projected benefit obligations and accumulated benefit obligations in excess of their plan assets. These plans are primarily unfunded. As of December 31, 2014 and December 31, 2013, the projected benefit obligations for unfunded plans were $449 million and $439 million, respectively, and the accumulated benefit obligations for unfunded plans were $442 million and $433 million, respectively. In addition, as of December 31, 2014, the projected benefit obligation and accumulated benefit obligation for certain funded plans exceeded the fair value of their assets by $390 million and $388 million, respectively. | ||||||||||||||||||||||||||
Components of Net Periodic Benefit Costs from Continuing Operations (millions) | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
(recast) | (recast) | |||||||||||||||||||||||||
Service cost | $ | 3 | $ | 3 | $ | 3 | ||||||||||||||||||||
Interest cost | 91 | 79 | 84 | |||||||||||||||||||||||
Expected return on plan assets | -95 | -85 | -82 | |||||||||||||||||||||||
Amortization of prior service cost | 1 | 1 | 1 | |||||||||||||||||||||||
Amortization of net loss | 14 | 16 | 12 | |||||||||||||||||||||||
Net periodic benefit costs | $ | 14 | $ | 14 | $ | 18 | ||||||||||||||||||||
Assumptions | ||||||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations and net periodic benefit costs for the years ended December 31: | ||||||||||||||||||||||||||
Benefit Obligations | Net Periodic Benefit Costs | |||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||
(recast) | (recast) | (recast) | (recast) | |||||||||||||||||||||||
Discount rate | 4.10% | 4.90% | 4.06% | 4.89% | 4.07% | 4.89% | ||||||||||||||||||||
Rate of compensation increase | 5.34% | 5.60% | 4.59% | 5.59% | 3.98% | 4.66% | ||||||||||||||||||||
Expected long-term return on | ||||||||||||||||||||||||||
plan assets | n/a | n/a | n/a | 6.01% | 5.95% | 6.14% | ||||||||||||||||||||
The discount rates were determined by matching the plan's liability cash flows to rates derived from high-quality corporate bonds available at the measurement date. | ||||||||||||||||||||||||||
In developing the expected long-term rate of return on plan assets, the Company considered long-term historical rates of return, the Company's plan asset allocations as well as the opinions and outlooks of investment professionals and consulting firms. | ||||||||||||||||||||||||||
During 2014, the Company adopted a new mortality table released by the Society of Actuaries that increased the projected benefit obligation at December 31, 2014 by $86 million. | ||||||||||||||||||||||||||
Fair Value of Plan Assets | ||||||||||||||||||||||||||
The following table sets forth by level, within the fair value hierarchy described in Note 5, the assets held by the Company's defined benefit pension plans, including those assets related to The CW sub-plan, which were approximately $20 million and $18 million, respectively, as of December 31, 2014 and December 31, 2013 (millions): | ||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
(recast) | ||||||||||||||||||||||||||
Cash and cash equivalents(a) | $ | 133 | $ | - | $ | - | $ | 133 | $ | 155 | $ | - | $ | - | $ | 155 | ||||||||||
Insurance contracts | - | 14 | - | 14 | - | 7 | - | 7 | ||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||
Domestic equities | 157 | - | - | 157 | 204 | - | - | 204 | ||||||||||||||||||
International equities | 8 | - | - | 8 | 56 | - | - | 56 | ||||||||||||||||||
Fixed income securities: | ||||||||||||||||||||||||||
U.S. government and | ||||||||||||||||||||||||||
agency securities(a) | 259 | 70 | - | 329 | 239 | 19 | - | 258 | ||||||||||||||||||
Non-U.S. government and | ||||||||||||||||||||||||||
agency securities | 112 | - | - | 112 | 61 | - | - | 61 | ||||||||||||||||||
Municipal bonds | - | 23 | - | 23 | - | 23 | - | 23 | ||||||||||||||||||
Investment grade | ||||||||||||||||||||||||||
corporate bonds(b) | - | 1,187 | - | 1,187 | - | 1,048 | - | 1,048 | ||||||||||||||||||
Non-investment grade | ||||||||||||||||||||||||||
corporate bonds(b) | - | 20 | - | 20 | - | 23 | - | 23 | ||||||||||||||||||
Other investments: | ||||||||||||||||||||||||||
Pooled investments(c) | - | 400 | - | 400 | - | 457 | - | 457 | ||||||||||||||||||
Commingled trust funds(a) | - | 486 | - | 486 | - | 391 | - | 391 | ||||||||||||||||||
Hedge funds | - | - | 30 | 30 | - | - | 36 | 36 | ||||||||||||||||||
Other (d) | 30 | 2 | 77 | 109 | 15 | 10 | 40 | 65 | ||||||||||||||||||
Total(e) | $ | 699 | $ | 2,202 | $ | 107 | $ | 3,008 | $ | 730 | $ | 1,978 | $ | 76 | $ | 2,784 | ||||||||||
___________ | ||||||||||||||||||||||||||
(a) As of December 31, 2014, cash and cash equivalents include $10 million of cash collateral for securities on loan and U.S. government and agency securities include $70 million of securities collateral for securities on loan. As of December 31, 2013, commingled trust funds included $11 million of cash collateral for securities on loan, and U.S. government and agency securities included $5 million of securities collateral for securities on loan. | ||||||||||||||||||||||||||
(b) Investment grade corporate bonds have an S&P rating of BBB- or higher and non-investment grade corporate bonds have an S&P rating of BB+ or below. | ||||||||||||||||||||||||||
(c) Pooled investments primarily consist of interests in unitized investment pools of which underlying securities primarily consist of equity and fixed income securities. | ||||||||||||||||||||||||||
(d) Other investments primarily include limited partnerships, 103-12 investments, derivative contracts, exchange-traded funds and mutual funds. | ||||||||||||||||||||||||||
(e) At December 31, 2014 and December 31, 2013, total assets include $78 million and $15 million, respectively, of securities on loan. | ||||||||||||||||||||||||||
The table below sets forth a summary of changes in the fair value of the defined benefit pension plans' Level 3 assets for the years ended December 31, 2014 and December 31, 2013 (millions): | ||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||
Hedge Funds | Other | Total | Hedge Funds | Other | Total | |||||||||||||||||||||
Balance at beginning of period | $ | 36 | $ | 40 | $ | 76 | $ | 63 | $ | 41 | $ | 104 | ||||||||||||||
Actual return on plan assets and | ||||||||||||||||||||||||||
liabilities: | ||||||||||||||||||||||||||
Relating to securities still held at | ||||||||||||||||||||||||||
end of period | - | 31 | 31 | -5 | 1 | -4 | ||||||||||||||||||||
Relating to securities disposed | ||||||||||||||||||||||||||
of during the period | 1 | 6 | 7 | 10 | 4 | 14 | ||||||||||||||||||||
Purchases | 1 | 9 | 10 | 1 | 9 | 10 | ||||||||||||||||||||
Sales | -8 | -15 | -23 | -33 | -15 | -48 | ||||||||||||||||||||
Settlements | - | -2 | -2 | - | - | - | ||||||||||||||||||||
Transfers in and/or out of Level 3 | - | 8 | 8 | - | - | - | ||||||||||||||||||||
Balance at end of period | $ | 30 | $ | 77 | $ | 107 | $ | 36 | $ | 40 | $ | 76 | ||||||||||||||
The Company primarily utilizes the market approach for determining recurring fair value measurements. | ||||||||||||||||||||||||||
The Company's defined benefit pension plans' investment policy is to minimize the volatility of the plans' funded status and to achieve and maintain fully funded status in order to pay current and future participant benefits from plan assets. The Company periodically reviews asset allocation policies consistent with its investment policy. In addition, the Company continuously monitors the performance of its pension assets, the performance of its investment advisers, sub-advisers and asset managers thereof, and makes adjustments and changes as required. The Company does not manage any pension assets internally. The investment guidelines set by the Company for the investment advisers, sub-advisers and asset managers permit the use of index funds, derivative contracts and other hedging strategies as components of portfolio management strategies. | ||||||||||||||||||||||||||
Under the Company's investment policy, the asset allocation target for the domestic defined benefit pension plans is 35% equity investments and 65% fixed income investments. As and when funded status and market conditions permit, the Company intends to transition this asset allocation target toward a target of 20% equity investments and 80% fixed income investments to further minimize funded status volatility. Target asset allocations for the international defined benefit pension plans as of December 31, 2014 are approximately 45% equity investments, 20% fixed income investments and 35% other investments. | ||||||||||||||||||||||||||
At both December 31, 2014 and December 31, 2013, the defined benefit pension plans' assets did not include any securities issued by Time Warner. | ||||||||||||||||||||||||||
Expected cash flows | ||||||||||||||||||||||||||
After considering the funded status of the Company's defined benefit pension plans, movements in the discount rate, investment performance and related tax consequences, the Company may choose to make contributions to its pension plans in any given year. The Company made discretionary cash contributions totaling approximately $20 million to its funded defined benefit pension plans during the year ended December 31, 2014. For the Company's unfunded plans, contributions will continue to be made to the extent benefits are paid. | ||||||||||||||||||||||||||
Information about the expected benefit payments for the Company's defined benefit plans is as follows (millions): | ||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020-2024 | |||||||||||||||||||||
Expected benefit payments | $ | 188 | $ | 195 | $ | 197 | $ | 196 | $ | 191 | $ | 992 | ||||||||||||||
Defined Contribution Plans | ||||||||||||||||||||||||||
Time Warner has certain domestic and international defined contribution plans, including savings and profit sharing plans, for which the expense amounted to $160 million in 2014, $153 million in 2013 and $144 million in 2012. The Company's contributions to the savings plans are primarily based on a percentage of the employees' elected contributions and are subject to plan provisions. | ||||||||||||||||||||||||||
Other Postretirement Benefit Plans | ||||||||||||||||||||||||||
Time Warner also sponsors several unfunded domestic postretirement benefit plans covering certain retirees and their dependents. As described above, during 2013, the Company's Board of Directors approved amendments to the Time Warner Group Health Plan. In connection with these amendments, the Company recognized a curtailment gain of $38 million in 2013. For substantially all of Time Warner's domestic postretirement benefit plans, the unfunded benefit obligation as of December 31, 2014 and December 31, 2013 was $104 million and $126 million, respectively, and the amount recognized in Accumulated other comprehensive income, net was a gain of $17 million and $3 million, respectively. For the years ended December 31, 2014, 2013 and 2012, the net periodic benefit costs/(income) were $2 million, $(32) million and $6 million, respectively. | ||||||||||||||||||||||||||
Multiemployer Benefit Plans | ||||||||||||||||||||||||||
The Company contributes to various multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover certain of its union-represented employees, primarily at the Warner Bros. segment. The risks of participating in these multiemployer pension plans are different from single-employer pension plans in that (i) contributions made by the Company to the multiemployer pension plans may be used to provide benefits to employees of other participating employers; (ii) if the Company chooses to stop participating in certain of these multiemployer pension plans, it may be required to pay those plans an amount based on the underfunded status of the plan, which is referred to as a withdrawal liability; and (iii) actions taken by a participating employer that lead to a deterioration of the financial health of a multiemployer pension plan may result in the unfunded obligations of the multiemployer pension plan to be borne by its remaining participating employers. While no multiemployer pension plan contributed to by the Company is individually significant, the Pension Protection Act of 2006 zone status as of December 31, 2014 (i.e., for the multiemployer pension plan's 2013 plan year) of all of the largest multiemployer pension plans in which the Company participates was green, which implies that such plans are funded at a level of 80 percent or greater. Total contributions made by the Company to multiemployer pension plans for the years ended December 31, 2014, 2013 and 2012 were $125 million, $113 million and $93 million, respectively. Included in these amounts are contributions that Home Box Office periodically makes to the Radio Television & Recording Artists Pension Plan (“RT&RA Plan”) under a collective bargaining agreement that expires in October 2015. The RT&RA Plan is not one of the five largest multiemployer pension plans in which the Company participates. The RT&RA Plan's most recently filed Form 5500 was for its plan year ended December 31, 2013. Pursuant to that filing, Home Box Office is one of eight employers obligated to contribute to the RT&RA Plan. The RT&RA Plan is operating under a rehabilitation plan, the Pension Protection Act of 2006 zone status for this plan as of December 31, 2013 was red (i.e., critical) and it was less than 65% funded. Home Box Office's contributions to this plan were less than $1 million in each of the years ended December 31, 2014, 2013 and 2012. Based on contributions reported in the most recent Form 5500 for this plan, Home Box Office's contributions represented greater than 5% of the plan's total contributions. Home Box Office's future contributions to this plan are determined pursuant to the collective bargaining agreement, which imposes no minimum contributions requirement, but incorporates a contribution surcharge for years the plan is in critical status. If Home Box Office had elected to withdraw from the RT&RA Plan during the 2014 plan year, its estimated withdrawal liability would have been approximately $25 million. | ||||||||||||||||||||||||||
The Company also contributes to various other multiemployer benefit plans that provide health and welfare benefits to active and retired participants, primarily at the Warner Bros. segment. Total contributions made by the Company to these other multiemployer benefit plans for the years ended December 31, 2014, 2013 and 2012 were $213 million, $193 million and $167 million, respectively. |
Restructuring_and_Severance_Co
Restructuring and Severance Costs | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||
RESTRUCTURING AND SEVERANCE COSTS | 14. RESTRUCTURING AND SEVERANCE COSTS | ||||||||||
The Company's Restructuring and severance costs primarily related to employee termination costs, ranging from senior executives to line personnel, and other exit costs, including lease terminations and real estate consolidations. For the year ended December 31, 2014, the Company incurred $512 million of Restructuring and severance costs related to restructuring activities designed to position the Company for the current operating environment and reallocate resources to the Company's growth initiatives. The restructuring activities and related costs primarily relate to headcount reductions. Restructuring and severance costs expensed as incurred for the years ended December 31, 2014, 2013 and 2012 are as follows (millions): | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Turner | $ | 249 | $ | 93 | $ | 52 | |||||
Home Box Office | 63 | 39 | 15 | ||||||||
Warner Bros. | 169 | 49 | 23 | ||||||||
Corporate | 31 | 2 | 2 | ||||||||
Total restructuring and severance costs | $ | 512 | $ | 183 | $ | 92 | |||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
2014 activity | $ | 506 | $ | - | $ | - | |||||
2013 activity | 4 | 173 | - | ||||||||
2012 and prior activity | 2 | 10 | 92 | ||||||||
Total restructuring and severance costs | $ | 512 | $ | 183 | $ | 92 | |||||
2014 Initiatives | |||||||||||
For the year ended December 31, 2014, the Company incurred $506 million in Restructuring and severance costs primarily related to various employee terminations and other exit activities, including $246 million at the Turner segment, $64 million at the Home Box Office segment, $165 million at the Warner Bros. segment and $31 million at Corporate. | |||||||||||
2013 Initiatives | |||||||||||
For the year ended December 31, 2013, the Company incurred $173 million in Restructuring and severance costs primarily related to various employee terminations and other exit activities, including $87 million at the Turner segment, $39 million at the Home Box Office segment, $42 million at the Warner Bros. segment and $5 million at Corporate. | |||||||||||
During the year ended December 31, 2014, the Company incurred Restructuring and severance costs of $2 million at the Turner segment and $2 million at the Warner Bros. segment relating to the 2013 restructuring initiatives. | |||||||||||
2012 and Prior Year Initiatives | |||||||||||
For the year ended December 31, 2012, the Company incurred $92 million in Restructuring and severance costs primarily related to various employee terminations and other exit activities, including $52 million at the Turner segment, $15 million at the Home Box Office segment, $23 million at the Warner Bros. segment and $2 million at Corporate. | |||||||||||
During the years ended December 31, 2014 and December 31, 2013, the Company also adjusted certain charges related to the restructuring initiatives that were undertaken in 2012 and prior years as a result of changes in estimates of previously established accruals. During the year ended December 31, 2014, the Company incurred $1 million at the Turner segment and $2 million at the Warner Bros. segment and reversed $1 million at the Home Box Office segment related to the 2012 and prior year initiatives. During the year ended December 31, 2013, the Company incurred $6 million at the Turner segment and $7 million at the Warner Bros. segment and reversed $3 million at Corporate related to the 2012 and prior year initiatives. | |||||||||||
Selected Information | |||||||||||
Selected information relating to accrued restructuring and severance costs is as follows (millions): | |||||||||||
Employee Terminations | Other Exit Costs | Total | |||||||||
Remaining liability as of December 31, 2011 (recast) | $ | 84 | $ | 8 | $ | 92 | |||||
Net accruals | 84 | 8 | 92 | ||||||||
Noncash reductions(a) | -1 | - | -1 | ||||||||
Cash paid | -74 | -10 | -84 | ||||||||
Remaining liability as of December 31, 2012 (recast) | 93 | 6 | 99 | ||||||||
Net accruals | 174 | 9 | 183 | ||||||||
Noncash reductions(a) | -1 | - | -1 | ||||||||
Cash paid | -86 | -9 | -95 | ||||||||
Remaining liability as of December 31, 2013 (recast) | 180 | 6 | 186 | ||||||||
Net accruals | 499 | 13 | 512 | ||||||||
Noncash reductions(a) | -3 | - | -3 | ||||||||
Cash paid | -151 | -10 | -161 | ||||||||
Remaining liability as of December 31, 2014 | $ | 525 | $ | 9 | $ | 534 | |||||
____________ | |||||||||||
(a) Noncash reductions relate to the settlement of certain employee-related liabilities with equity instruments. | |||||||||||
As of December 31, 2014, of the remaining liability of $534 million, $392 million was classified as a current liability in the Consolidated Balance Sheet, with the remaining $142 million classified as a long-term liability. Amounts classified as long-term are expected to be paid through 2018. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Segment Reporting [Abstract] | |||||||||||
SEGMENT INFORMATION | 15. SEGMENT INFORMATION | ||||||||||
Time Warner classifies its operations into three reportable segments: Turner: consisting principally of cable networks and digital media properties; Home Box Office: consisting principally of premium pay television services domestically and premium pay and basic tier television services internationally; and Warner Bros.: consisting principally of television, feature film, home video and videogame production and distribution. Time Warner's reportable segments have been determined in accordance with its internal management structure and the financial information that is evaluated regularly by the Company's chief operating decision maker. | |||||||||||
In the ordinary course of business, Time Warner's reportable segments enter into transactions with one another. The most common types of intersegment transactions include the Warner Bros. segment generating revenues by licensing television and theatrical programming to the Turner and Home Box Office segments. These intersegment transactions are recorded by each segment at estimated fair value as if the transactions were with third parties and, therefore, affect segment performance. While intersegment transactions are treated like third-party transactions to determine segment performance, the revenues (and corresponding expenses or assets recognized by the segment that is counterparty to the transaction) are eliminated in consolidation and, therefore, do not affect consolidated results. | |||||||||||
Information as to the Revenues, intersegment revenues, depreciation of property, plant, and equipment, Amortization of intangible assets, Operating Income (Loss), Assets and Capital expenditures for each of Time Warner's reportable segments is set forth below (millions): | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Revenues | |||||||||||
Turner | $ | 10,396 | $ | 9,983 | $ | 9,527 | |||||
Home Box Office | 5,398 | 4,890 | 4,686 | ||||||||
Warner Bros. | 12,526 | 12,312 | 12,018 | ||||||||
Intersegment eliminations | -961 | -724 | -906 | ||||||||
Total revenues | $ | 27,359 | $ | 26,461 | $ | 25,325 | |||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Intersegment Revenues | |||||||||||
Turner | $ | 101 | $ | 85 | $ | 80 | |||||
Home Box Office | 36 | 14 | 14 | ||||||||
Warner Bros. | 824 | 625 | 812 | ||||||||
Total intersegment revenues | $ | 961 | $ | 724 | $ | 906 | |||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Supplemental Revenue Data | |||||||||||
Subscription | $ | 9,945 | $ | 9,250 | $ | 8,787 | |||||
Advertising | 4,502 | 4,530 | 4,316 | ||||||||
Content | 12,350 | 12,154 | 11,741 | ||||||||
Other | 562 | 527 | 481 | ||||||||
Total revenues | $ | 27,359 | $ | 26,461 | $ | 25,325 | |||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Depreciation of Property, Plant and Equipment | |||||||||||
Turner | $ | -209 | $ | -231 | $ | -238 | |||||
Home Box Office | -77 | -91 | -85 | ||||||||
Warner Bros. | -218 | -200 | -202 | ||||||||
Corporate | -27 | -28 | -28 | ||||||||
Total depreciation of property, plant and equipment | $ | -531 | $ | -550 | $ | -553 | |||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Amortization of Intangible Assets | |||||||||||
Turner | $ | -16 | $ | -21 | $ | -25 | |||||
Home Box Office | -14 | -9 | -7 | ||||||||
Warner Bros. | -172 | -179 | -180 | ||||||||
Total amortization of intangible assets | $ | -202 | $ | -209 | $ | -212 | |||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Operating Income (Loss) | |||||||||||
Turner | $ | 2,954 | $ | 3,486 | $ | 3,172 | |||||
Home Box Office | 1,786 | 1,791 | 1,547 | ||||||||
Warner Bros. | 1,159 | 1,324 | 1,228 | ||||||||
Corporate | -73 | -394 | -352 | ||||||||
Intersegment eliminations | 149 | 61 | -97 | ||||||||
Total operating income | $ | 5,975 | $ | 6,268 | $ | 5,498 | |||||
31-Dec-14 | 31-Dec-13 | ||||||||||
(recast) | |||||||||||
Assets | |||||||||||
Turner | $ | 25,271 | $ | 26,067 | |||||||
Home Box Office | 13,869 | 13,687 | |||||||||
Warner Bros. | 20,559 | 20,066 | |||||||||
Corporate | 3,560 | 2,433 | |||||||||
Assets of discontinued operations | - | 5,746 | |||||||||
Total assets | $ | 63,259 | $ | 67,999 | |||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Capital Expenditures | |||||||||||
Turner | $ | 173 | $ | 210 | $ | 229 | |||||
Home Box Office | 58 | 45 | 65 | ||||||||
Warner Bros. | 206 | 236 | 270 | ||||||||
Corporate | 37 | 77 | 45 | ||||||||
Total capital expenditures | $ | 474 | $ | 568 | $ | 609 | |||||
Long-lived hard assets located outside the United States, which represent approximately 1% of total assets at December 31, 2014, are not material. Revenues in different geographical areas are as follows (millions): | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Revenues(a) | |||||||||||
United States and Canada | $ | 19,102 | $ | 18,642 | $ | 17,936 | |||||
Europe(b) | 4,684 | 4,494 | 4,250 | ||||||||
Asia/Pacific Rim | 1,711 | 1,629 | 1,605 | ||||||||
Latin America | 1,575 | 1,475 | 1,288 | ||||||||
All Other | 287 | 221 | 246 | ||||||||
Total revenues | $ | 27,359 | $ | 26,461 | $ | 25,325 | |||||
____________ | |||||||||||
(a) Revenues are attributed to region based on location of customer. | |||||||||||
(b) Revenues in EuroZone countries comprise approximately 48%, 48% and 49% of Revenues in Europe for the years ended 2014, 2013 and 2012, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||
COMMITMENTS AND CONTINGENCIES | 16. COMMITMENTS AND CONTINGENCIES | ||||||||||||||||
Commitments | |||||||||||||||||
Time Warner has commitments under certain network programming, film licensing, creative talent, employment and other agreements aggregating $33.577 billion at December 31, 2014. | |||||||||||||||||
The Company also has commitments for office space, studio facilities and operating equipment. Time Warner's net rent expense was $358 million in 2014, $316 million in 2013 and $319 million in 2012. Included in such amounts was sublease income of $33 million for 2014, $41 million for 2013 and $40 million for 2012. | |||||||||||||||||
The commitments under certain programming, film licensing, talent and other agreements (“Programming and Other”) and minimum rental commitments under noncancelable long-term operating leases (“Operating Leases”) payable during the next five years and thereafter are as follows (millions): | |||||||||||||||||
Programming and Other | Operating Leases | ||||||||||||||||
2015 | $ | 5,207 | $ | 317 | |||||||||||||
2016 | 3,660 | 309 | |||||||||||||||
2017 | 3,626 | 284 | |||||||||||||||
2018 | 3,379 | 259 | |||||||||||||||
2019 | 3,148 | 125 | |||||||||||||||
Thereafter | 14,557 | 186 | |||||||||||||||
Total | $ | 33,577 | $ | 1,480 | |||||||||||||
Additionally, as of December 31, 2014, the Company has future sublease income arrangements of $29 million, which are not included in Operating Leases in the table above. | |||||||||||||||||
Contingent Commitments | |||||||||||||||||
The Company also has certain contractual arrangements that would require it to make payments or provide funding if certain circumstances occur (“contingent commitments”). Contingent commitments principally include amounts to be paid in connection with acquisitions, dispositions and post-production term advance obligations on certain co-financing arrangements. | |||||||||||||||||
The following table summarizes the Company's contingent commitments at December 31, 2014. For post-production term advances where payment obligations are outside the Company's control, the timing of amounts presented in the table represents the earliest period in which the payment could be requested. For other contingent commitments, the timing of amounts presented in the table represents when the maximum contingent commitment will expire, but does not mean that the Company expects to incur an obligation to make any payments within that time period. In addition, amounts presented do not reflect the effects of any indemnification rights the Company might possess (millions). | |||||||||||||||||
Nature of Contingent Commitments | Total | 2015 | 2016-2017 | 2018-2019 | Thereafter | ||||||||||||
Guarantees | $ | 1,536 | $ | 131 | $ | 589 | $ | 85 | $ | 731 | |||||||
Letters of credit and other contingent | |||||||||||||||||
commitments | 817 | 37 | 201 | 12 | 567 | ||||||||||||
Total contingent commitments | $ | 2,353 | $ | 168 | $ | 790 | $ | 97 | $ | 1,298 | |||||||
The following is a description of the Company's contingent commitments at December 31, 2014: | |||||||||||||||||
Guarantees consist of guarantees the Company has provided on certain operating commitments entered into by entities formerly owned by the Company, including Time Inc., as well as the Six Flags arrangement described below, and a guarantee of certain debt issued by CME, an equity method investee. | |||||||||||||||||
Six Flags | |||||||||||||||||
In connection with the Company's former investment in the Six Flags theme parks located in Georgia and Texas (collectively, the “Parks”), in 1997, certain subsidiaries of the Company (including Historic TW and, in connection with the separation of Time Warner Cable Inc. in 2009, Warner Bros. Entertainment Inc.) agreed to guarantee (the “Six Flags Guarantee”) certain obligations of the partnerships that hold the Parks (the “Partnerships”) for the benefit of the limited partners in such Partnerships, including: annual payments made at the Parks or to the limited partners and additional obligations at the end of the respective terms for the Partnerships in 2027 and 2028 (the “Guaranteed Obligations”). The aggregate undiscounted estimated future cash flow requirements covered by the Six Flags Guarantee over the remaining term (through 2028) are $935 million (for a net present value of $418 million). To date, no payments have been made by the Company pursuant to the Six Flags Guarantee. | |||||||||||||||||
Six Flags Entertainment Corporation (formerly known as Six Flags, Inc. and Premier Parks Inc.) (“Six Flags”), which has the controlling interest in the Parks, has agreed, pursuant to a subordinated indemnity agreement (the “Subordinated Indemnity Agreement”), to guarantee the performance of the Guaranteed Obligations when due and to indemnify Historic TW, among others, if the Six Flags Guarantee is called upon. If Six Flags defaults in its indemnification obligations, Historic TW has the right to acquire control of the managing partner of the Parks. Six Flags' obligations to Historic TW are further secured by its interest in all limited partnership units held by Six Flags. | |||||||||||||||||
Because the Six Flags Guarantee existed prior to December 31, 2002 and no modifications to the arrangements have been made since the date the guarantee came into existence, the Company is required to continue to account for the Guaranteed Obligations as a contingent liability. Based on its evaluation of the current facts and circumstances surrounding the Guaranteed Obligations and the Subordinated Indemnity Agreement, the Company is unable to predict the loss, if any, that may be incurred under the Guaranteed Obligations, and no liability for the arrangements has been recognized at December 31, 2014. Because of the specific circumstances surrounding the arrangements and the fact that no active or observable market exists for this type of financial guarantee, the Company is unable to determine a current fair value for the Guaranteed Obligations and related Subordinated Indemnity Agreement. | |||||||||||||||||
Other contingent commitments primarily include contingent payments for post-production term advance obligations on certain co-financing arrangements, as well as letters of credit, bank guarantees and surety bonds, which generally support performance and payments for a wide range of global contingent and firm obligations, including insurance, litigation appeals, real estate leases and other operational needs. | |||||||||||||||||
Programming Licensing Backlog | |||||||||||||||||
Programming licensing backlog represents the amount of future revenues not yet recorded from cash contracts for the licensing of theatrical and television product for pay cable, basic cable, network and syndicated television exhibition. Because backlog generally relates to contracts for the licensing of theatrical and television product that have already been produced, the recognition of revenue for such completed product is principally dependent on the commencement of the availability period for telecast under the terms of the related licensing agreement. Cash licensing fees are collected periodically over the term of the related licensing agreements. Backlog was approximately $6.5 billion and $5.5 billion at December 31, 2014 and 2013, respectively. Included in these amounts is licensing of film product from the Warner Bros. segment to the Home Box Office segment in the amount of $788 million and $749 million at December 31, 2014 and 2013, respectively, and to the Turner segment in the amount of $700 million and $477 million at December 31, 2014 and 2013, respectively. Backlog excludes filmed entertainment advertising barter contracts, which are expected to result in the future realization of revenues and cash through the sale of the advertising spots received under such contracts to third parties. | |||||||||||||||||
Contingencies | |||||||||||||||||
In the ordinary course of business, the Company and its subsidiaries are defendants in or parties to various legal claims, actions and proceedings. These claims, actions and proceedings are at varying stages of investigation, arbitration or adjudication, and involve a variety of areas of law. | |||||||||||||||||
On October 8, 2004, certain heirs of Jerome Siegel, one of the creators of the “Superman” character, filed suit against the Company, DC Comics and Warner Bros. Entertainment Inc. in the U.S. District Court for the Central District of California. Plaintiffs' complaint alleged, among other things, that plaintiffs terminated Siegel's grants of one-half the rights in the Superman character as of April 16, 1999, and plaintiffs were entitled to up to one-half of the profits made on Superman since that date. On March 26, 2008, the court entered summary judgment, finding that plaintiffs' termination notices were valid and recaptured a one-half interest in the Superman character as of April 16, 1999. On January 10, 2013, the U.S. Court of Appeals for the Ninth Circuit reversed the March 2008 summary judgment decision, holding that the parties reached a binding settlement agreement in 2001. By orders dated March 20, 2013, April 18, 2013, and June 18, 2013, the district court entered final judgment in this lawsuit and the related Superboy lawsuit, described below, in DC Comics' favor, ruling that the plaintiffs had transferred any and all rights in the Superman and Superboy properties to DC Comics in 2001 pursuant to a binding settlement agreement. On July 16, 2013, the plaintiffs filed an appeal from the final judgment to the U.S. Court of Appeals for the Ninth Circuit. | |||||||||||||||||
On October 22, 2004, the same Siegel heirs filed a related lawsuit against the same defendants, as well as Warner Communications Inc. (now known as Warner Communications LLC) and Warner Bros. Television Production Inc. (now known as WB Studio Enterprises Inc.), in the U.S. District Court for the Central District of California. Plaintiffs claimed that Siegel was the sole creator of the character Superboy and, as such, DC Comics has had no right to create new Superboy works since plaintiffs' alleged October 17, 2004 termination of Siegel's grants of rights to the Superboy character. Plaintiffs sought a declaration regarding the validity of the alleged termination and an injunction against future use of the Superboy character. As described in the paragraph above regarding the Superman lawsuit, by orders dated March 20, 2013, April 18, 2013 and June 18, 2013, the district court entered final judgment in DC Comics' favor, ruling that the plaintiffs had transferred any and all rights in the Superman and Superboy properties to DC Comics in 2001 pursuant to a binding settlement agreement. On July 16, 2013, the plaintiffs filed an appeal from the final judgment to the U.S. Court of Appeals for the Ninth Circuit. | |||||||||||||||||
On May 14, 2010, DC Comics filed a related lawsuit in the U.S. District Court for the Central District of California against the heirs of Superman co-creator Joseph Shuster, the Siegel heirs, their attorney Marc Toberoff and certain companies that Mr. Toberoff controls. The lawsuit asserted, among other things, a claim for declaratory relief concerning the validity of the copyright termination notice served by the Shuster heirs, who purported to reclaim their rights to the Superman character from DC Comics with the termination notice. The lawsuit also asserted state law based claims, including seeking declaratory relief challenging the validity of various agreements between Mr. Toberoff, certain companies that he controls and the Shuster and Siegel heirs, as well as claims for intentional interference by Mr. Toberoff with DC Comics' contracts and prospective economic advantage with the Shuster and Siegel heirs for which DC Comics sought monetary damages. On October 17, 2012, the district court granted summary judgment in favor of DC Comics, holding that the copyright termination notice served by the Shuster heirs was invalid and that the Shuster heirs had transferred any and all rights in the Superman properties to DC Comics in 1992 pursuant to a binding agreement with DC Comics. On November 21, 2013, the U.S. Court of Appeals for the Ninth Circuit affirmed the district court's October 2012 decision. On October 6, 2014, the U.S. Supreme Court denied the Shuster heirs' petition for writ of certiorari. DC Comics' other claims against the Siegel heirs, Mr. Toberoff and certain companies that Mr. Toberoff controls were either dismissed by the district court or deemed moot following the U.S. Supreme Court's denial of the Shuster heirs' petition for writ of certiorari. On December 9, 2014, DC Comics appealed the dismissal of its claims against Mr. Toberoff and his companies, and on December 23, 2014, Mr. Toberoff and his companies filed a cross-appeal with the U.S. Court of Appeals for the Ninth Circuit. | |||||||||||||||||
The Company has prevailed on the primary issues regarding its rights to the “Superman” and “Superboy” properties in the matters described above and believes the claims that remain within the scope of the appeals pending before the U.S. Court of Appeals for the Ninth Circuit are not material to the Company's results of operations or cash flows. Accordingly, the Company does not intend to include disclosure regarding these matters in its future periodic reports. | |||||||||||||||||
On April 4, 2007, the National Labor Relations Board (“NLRB”) issued a complaint against CNN America Inc. (“CNN America”) and Team Video Services, LLC (“Team Video”). This administrative proceeding relates to CNN America's December 2003 and January 2004 terminations of its contractual relationships with Team Video, under which Team Video had provided electronic newsgathering services in Washington, DC and New York, NY. The National Association of Broadcast Employees and Technicians, under which Team Video's employees were unionized, initially filed charges of unfair labor practices with the NLRB in February 2004, alleging that CNN America and Team Video were joint employers, that CNN America was a successor employer to Team Video, and/or that CNN America discriminated in its hiring practices to avoid becoming a successor employer or due to specific individuals' union affiliation or activities. The NLRB complaint seeks, among other things, the reinstatement of certain union members and monetary damages. On November 19, 2008, the presiding NLRB Administrative Law Judge (“ALJ”) issued a non-binding recommended decision and order, finding CNN America liable. On September 15, 2014, a three-member panel of the NLRB affirmed the ALJ's decision and adopted the ALJ's order with certain modifications. On September 16, 2014, CNN America filed a notice of appeal with the U.S. Court of Appeals for the D.C. Circuit. On November 12, 2014, both CNN America and the General Counsel of the NLRB filed motions with the NLRB for reconsideration of the panel's decision. On December 17, 2014, CNN America's appeal to the U.S. Court of Appeals was placed on hold pending resolution of the motions for reconsideration. | |||||||||||||||||
In April 2013, the Internal Revenue Service (the “IRS”) Appeals Division issued a notice of deficiency to the Company relating to the appropriate tax characterization of stock warrants received from Google Inc. in 2002. On May 6, 2013, the Company filed a petition with the United States Tax Court seeking a redetermination of the deficiency set forth in the notice. The Company's petition asserts that the IRS erred in determining that the stock warrants were taxable upon exercise (in 2004) rather than at the date of grant based on, among other things, a misapplication of Section 83 of the Internal Revenue Code. In December 2014, the Company reached a preliminary agreement with the IRS to resolve the issues raised in the notice of deficiency. Final resolution of these issues is subject to agreement regarding certain necessary computations and the preparation and execution of definitive documentation. | |||||||||||||||||
The Company intends to vigorously defend against or prosecute, as applicable, the matters described above. | |||||||||||||||||
The Company establishes an accrued liability for legal claims when the Company determines that a loss is both probable and the amount of the loss can be reasonably estimated. Once established, accruals are adjusted from time to time, as appropriate, in light of additional information. The amount of any loss ultimately incurred in relation to matters for which an accrual has been established may be higher or lower than the amounts accrued for such matters. | |||||||||||||||||
For matters disclosed above for which a loss is probable or reasonably possible, whether in excess of an accrued liability or where there is no accrued liability, the Company has estimated a range of possible loss. The Company believes the estimate of the aggregate range of possible loss in excess of accrued liabilities for such matters is between $0 and $130 million at December 31, 2014. The estimated aggregate range of possible loss is subject to significant judgment and a variety of assumptions. The matters represented in the estimated aggregate range of possible loss will change from time to time and actual results may vary significantly from the current estimate. | |||||||||||||||||
In view of the inherent difficulty of predicting the outcome of litigation and claims, the Company often cannot predict what the eventual outcome of the pending matters will be, what the timing of the ultimate resolution of these matters will be, or what the eventual loss, fines or penalties related to each pending matter may be. An adverse outcome in one or more of these matters could be material to the Company's results of operations or cash flows for any particular reporting period. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Related Party Transactions [Abstract] | |||||||||||
RELATED PARTY TRANSACTIONS | 17. RELATED PARTY TRANSACTIONS | ||||||||||
The Company has entered into certain transactions in the ordinary course of business with unconsolidated investees accounted for under the equity method of accounting. These transactions have been executed on terms comparable to the terms of transactions with unrelated third parties. The revenue and expense transactions primarily relate to the licensing of television programming to The CW broadcast network and certain international networks, including networks owned by CME, by the Warner Bros. segment. Interest income and other, net relate to transactions with CME. Receivables due from related parties were $166 million and $185 million at December 31, 2014 and 2013, respectively. Payables due to related parties were immaterial at December 31, 2014 and 2013, respectively. Revenues and expenses resulting from transactions with related parties consist of (millions): | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Revenues | $ | 404 | $ | 464 | $ | 498 | |||||
Expenses | -8 | -35 | -60 | ||||||||
Interest income | 51 | - | - | ||||||||
Other, net | 16 | 8 | - |
Additional_Financial_Informati
Additional Financial Information | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||||
ADDITIONAL FINANCIAL INFORMATION | 18. ADDITIONAL FINANCIAL INFORMATION | ||||||||||
Additional financial information with respect to cash payments and receipts, Interest expense, net, Other loss, net, Accounts payable and accrued liabilities and Other noncurrent liabilities is as follows (millions): | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Cash Flows | |||||||||||
Cash payments made for interest | $ | -1,274 | $ | -1,202 | $ | -1,262 | |||||
Interest income received | 50 | 44 | 42 | ||||||||
Cash interest payments, net | $ | -1,224 | $ | -1,158 | $ | -1,220 | |||||
Cash payments made for income taxes | $ | -1,602 | $ | -1,174 | $ | -1,261 | |||||
Income tax refunds received | 108 | 87 | 78 | ||||||||
TWC tax sharing payments(a) | - | - | -6 | ||||||||
Cash tax payments, net | $ | -1,494 | $ | -1,087 | $ | -1,189 | |||||
___________ | |||||||||||
(a) Represents net amounts paid to TWC in accordance with a tax sharing agreement with TWC. | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Interest Expense, Net | |||||||||||
Interest income | $ | 184 | $ | 92 | $ | 107 | |||||
Interest expense | -1,353 | -1,281 | -1,358 | ||||||||
Total interest expense, net | $ | -1,169 | $ | -1,189 | $ | -1,251 | |||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Other Loss, Net | |||||||||||
Investment gains (losses), net | $ | 30 | $ | 61 | $ | -30 | |||||
Loss on equity method investees | -153 | -150 | -180 | ||||||||
Other | -4 | -22 | -4 | ||||||||
Total other loss, net | $ | -127 | $ | -111 | $ | -214 | |||||
31-Dec-14 | 31-Dec-13 | ||||||||||
(recast) | |||||||||||
Accounts Payable and Accrued Liabilities | |||||||||||
Accounts payable | $ | 574 | $ | 505 | |||||||
Accrued expenses | 2,173 | 1,724 | |||||||||
Participations payable | 2,551 | 2,302 | |||||||||
Programming costs payable | 722 | 705 | |||||||||
Accrued compensation | 1,034 | 1,047 | |||||||||
Accrued interest | 303 | 313 | |||||||||
Accrued income taxes | 150 | 158 | |||||||||
Total accounts payable and accrued liabilities | $ | 7,507 | $ | 6,754 | |||||||
31-Dec-14 | 31-Dec-13 | ||||||||||
(recast) | |||||||||||
Other Noncurrent Liabilities | |||||||||||
Noncurrent tax and interest reserves | $ | 1,520 | $ | 2,540 | |||||||
Participations payable | 1,076 | 1,078 | |||||||||
Programming costs payable | 959 | 1,076 | |||||||||
Noncurrent pension and post-retirement liabilities | 928 | 696 | |||||||||
Deferred compensation | 491 | 542 | |||||||||
Other noncurrent liabilities | 710 | 392 | |||||||||
Total other noncurrent liabilities | $ | 5,684 | $ | 6,324 |
Supplementary_Information_Cond
Supplementary Information - Condensed Consolidating Financial Statements | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||||||
SUPPLEMENTARY INFORMATION - CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | Overview | |||||||||||||||
Set forth below are condensed consolidating financial statements presenting the financial position, results of operations and cash flows of (i) Time Warner Inc. (the “Parent Company”), (ii) Historic TW Inc. (in its own capacity and as successor by merger to Time Warner Companies, Inc.), Home Box Office, Inc., and Turner Broadcasting System, Inc., each a wholly owned subsidiary of the Parent Company (collectively, the “Guarantor Subsidiaries”), on a combined basis, (iii) the direct and indirect non-guarantor subsidiaries of the Parent Company (the “Non-Guarantor Subsidiaries”), on a combined basis, and (iv) the eliminations necessary to arrive at the information for Time Warner Inc. on a consolidated basis. The Guarantor Subsidiaries fully and unconditionally, jointly and severally guarantee securities issued under certain of the Company's indentures on an unsecured basis. | ||||||||||||||||
There are no legal or regulatory restrictions on the Parent Company's ability to obtain funds from any of its wholly owned subsidiaries through dividends, loans or advances. | ||||||||||||||||
Basis of Presentation | ||||||||||||||||
The Company's financial information has been recast to reflect the financial position and results of operations of the Company's former Time Inc. segment as discontinued operations for all periods presented. Amounts presented in the Consolidating Balance Sheet at December 31, 2013 related to discontinued operations of the Parent Company and the Guarantor Subsidiaries principally relate to the impact of the Time Separation on the Parent Company's and the Guarantor Subsidiaries' deferred income taxes. | ||||||||||||||||
In presenting the condensed consolidating financial statements, the equity method of accounting has been applied to (i) the Parent Company's interests in the Guarantor Subsidiaries and (ii) the Guarantor Subsidiaries' interests in the Non-Guarantor Subsidiaries, where applicable, even though all such subsidiaries meet the requirements to be consolidated under U.S. generally accepted accounting principles. All intercompany balances and transactions between the Parent Company, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries have been eliminated, as shown in the column “Eliminations.” | ||||||||||||||||
The Parent Company's accounting bases in all subsidiaries, including goodwill and identified intangible assets, have been “pushed down” to the applicable subsidiaries. Corporate overhead expenses have been reflected as expenses of the Parent Company and have not been allocated to the Guarantor Subsidiaries or the Non-Guarantor Subsidiaries. Interest income (expense) is determined based on outstanding debt and the relevant intercompany amounts at the respective subsidiary. | ||||||||||||||||
All direct and indirect domestic subsidiaries are included in Time Warner Inc.'s consolidated U.S. tax return. In the condensed consolidating financial statements, tax (provision) benefit has been allocated based on each such subsidiary's relative pretax income to the consolidated pretax income. With respect to the use of certain consolidated tax attributes (principally operating and capital loss carryforwards), such benefits have been allocated to the respective subsidiary that generated the taxable income permitting such use (i.e., pro-rata based on where the income was generated). For example, to the extent a Non-Guarantor Subsidiary generated a gain on the sale of a business for which the Parent Company utilized tax attributes to offset such gain, the tax attribute benefit would be allocated to that Non-Guarantor Subsidiary. Deferred taxes of the Parent Company, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries have been determined based on the temporary differences between the book and tax basis of the respective assets and liabilities of the applicable entities. | ||||||||||||||||
Certain transfers of cash between subsidiaries and their parent companies and intercompany dividends are reflected as cash flows from investing and financing activities in the accompanying Condensed Consolidating Statements of Cash Flows. All other intercompany activity is reflected in cash flows from operations. | ||||||||||||||||
Management believes that the allocations and adjustments noted above are reasonable. However, such allocations and adjustments may not be indicative of the actual amounts that would have been incurred had the Parent Company, Guarantor Subsidiaries and Non-Guarantor Subsidiaries operated independently. | ||||||||||||||||
Consolidating Balance Sheet | ||||||||||||||||
31-Dec-14 | ||||||||||||||||
(millions) | ||||||||||||||||
Time | ||||||||||||||||
Parent | Guarantor | Non-Guarantor | Warner | |||||||||||||
Company | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||
ASSETS | ||||||||||||||||
Current assets | ||||||||||||||||
Cash and equivalents | $ | 1,623 | $ | 290 | $ | 705 | $ | - | $ | 2,618 | ||||||
Receivables, net | 93 | 996 | 6,638 | -7 | 7,720 | |||||||||||
Inventories | - | 453 | 1,247 | - | 1,700 | |||||||||||
Deferred income taxes | 184 | 42 | 7 | -49 | 184 | |||||||||||
Prepaid expenses and other current assets | 360 | 120 | 478 | - | 958 | |||||||||||
Total current assets | 2,260 | 1,901 | 9,075 | -56 | 13,180 | |||||||||||
Noncurrent inventories and theatrical film and television | ||||||||||||||||
production costs | - | 1,744 | 5,182 | -85 | 6,841 | |||||||||||
Investments in amounts due to and from consolidated | ||||||||||||||||
subsidiaries | 44,407 | 11,333 | 12,369 | -68,109 | - | |||||||||||
Investments, including available-for-sale securities | 186 | 417 | 1,723 | - | 2,326 | |||||||||||
Property, plant and equipment, net | 73 | 377 | 2,205 | - | 2,655 | |||||||||||
Intangible assets subject to amortization, net | - | - | 1,141 | - | 1,141 | |||||||||||
Intangible assets not subject to amortization | - | 2,007 | 5,025 | - | 7,032 | |||||||||||
Goodwill | - | 9,880 | 17,685 | - | 27,565 | |||||||||||
Other assets | 429 | 156 | 1,934 | - | 2,519 | |||||||||||
Total assets | $ | 47,355 | $ | 27,815 | $ | 56,339 | $ | -68,250 | $ | 63,259 | ||||||
LIABILITIES AND EQUITY | ||||||||||||||||
Current liabilities | ||||||||||||||||
Accounts payable and accrued liabilities | $ | 744 | $ | 953 | $ | 5,990 | $ | -180 | $ | 7,507 | ||||||
Deferred revenue | - | 57 | 549 | -27 | 579 | |||||||||||
Debt due within one year | 1,100 | 9 | 9 | - | 1,118 | |||||||||||
Total current liabilities | 1,844 | 1,019 | 6,548 | -207 | 9,204 | |||||||||||
Long-term debt | 17,108 | 4,006 | 262 | - | 21,376 | |||||||||||
Deferred income taxes | 2,204 | 2,443 | 1,840 | -4,283 | 2,204 | |||||||||||
Deferred revenue | - | 17 | 322 | -24 | 315 | |||||||||||
Other noncurrent liabilities | 1,723 | 1,844 | 3,179 | -1,062 | 5,684 | |||||||||||
Equity | ||||||||||||||||
Due to (from) Time Warner Inc. and subsidiaries | - | -43,026 | 6,668 | 36,358 | - | |||||||||||
Other shareholders’ equity | 24,476 | 61,512 | 37,520 | -99,032 | 24,476 | |||||||||||
Total Time Warner Inc. shareholders’ equity | 24,476 | 18,486 | 44,188 | -62,674 | 24,476 | |||||||||||
Noncontrolling interests | - | - | - | - | - | |||||||||||
Total equity | 24,476 | 18,486 | 44,188 | -62,674 | 24,476 | |||||||||||
Total liabilities and equity | $ | 47,355 | $ | 27,815 | $ | 56,339 | $ | -68,250 | $ | 63,259 | ||||||
Consolidating Balance Sheet | ||||||||||||||||
31-Dec-13 | ||||||||||||||||
(recast; millions) | ||||||||||||||||
Time | ||||||||||||||||
Parent | Guarantor | Non-Guarantor | Warner | |||||||||||||
Company | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||
ASSETS | ||||||||||||||||
Current assets | ||||||||||||||||
Cash and equivalents | $ | 1,039 | $ | 148 | $ | 629 | $ | - | $ | 1,816 | ||||||
Receivables, net | 73 | 901 | 6,341 | -10 | 7,305 | |||||||||||
Inventories | - | 383 | 1,265 | - | 1,648 | |||||||||||
Deferred income taxes | 369 | 50 | -52 | 2 | 369 | |||||||||||
Prepaid expenses and other current assets | 103 | 84 | 372 | - | 559 | |||||||||||
Current assets of discontinued operations | 79 | 78 | 832 | -155 | 834 | |||||||||||
Total current assets | 1,663 | 1,644 | 9,387 | -163 | 12,531 | |||||||||||
Noncurrent inventories and theatrical film and television | ||||||||||||||||
production costs | - | 1,726 | 5,371 | -81 | 7,016 | |||||||||||
Investments in amounts due to and from consolidated | ||||||||||||||||
subsidiaries | 48,549 | 21,248 | 12,288 | -82,085 | - | |||||||||||
Investments, including available-for-sale securities | 130 | 460 | 1,419 | - | 2,009 | |||||||||||
Property, plant and equipment, net | 373 | 377 | 2,541 | - | 3,291 | |||||||||||
Intangible assets subject to amortization, net | - | - | 1,338 | - | 1,338 | |||||||||||
Intangible assets not subject to amortization | - | 2,007 | 5,036 | - | 7,043 | |||||||||||
Goodwill | - | 9,879 | 17,522 | - | 27,401 | |||||||||||
Other assets | 322 | 194 | 1,942 | - | 2,458 | |||||||||||
Noncurrent assets of discontinued operations | - | - | 4,912 | - | 4,912 | |||||||||||
Total assets | $ | 51,037 | $ | 37,535 | $ | 61,756 | $ | -82,329 | $ | 67,999 | ||||||
LIABILITIES AND EQUITY | ||||||||||||||||
Current liabilities | ||||||||||||||||
Accounts payable and accrued liabilities | $ | 618 | $ | 770 | $ | 5,425 | $ | -59 | $ | 6,754 | ||||||
Deferred revenue | - | 28 | 524 | -10 | 542 | |||||||||||
Debt due within one year | 48 | 9 | 9 | - | 66 | |||||||||||
Current liabilities of discontinued operations | 1 | - | 1,026 | -1 | 1,026 | |||||||||||
Total current liabilities | 667 | 807 | 6,984 | -70 | 8,388 | |||||||||||
Long-term debt | 16,046 | 4,001 | 14 | - | 20,061 | |||||||||||
Due to (from) affiliates | -900 | - | 900 | - | - | |||||||||||
Deferred income taxes | 2,287 | 2,666 | 2,016 | -4,682 | 2,287 | |||||||||||
Deferred revenue | - | 36 | 348 | -33 | 351 | |||||||||||
Other noncurrent liabilities | 2,657 | 1,939 | 3,352 | -1,624 | 6,324 | |||||||||||
Noncurrent liabilities of discontinued operations | 376 | 411 | 713 | -816 | 684 | |||||||||||
Equity | ||||||||||||||||
Due to (from) Time Warner Inc. and subsidiaries | - | -33,497 | 6,155 | 27,342 | - | |||||||||||
Other shareholders’ equity | 29,904 | 61,172 | 41,274 | -102,446 | 29,904 | |||||||||||
Total Time Warner Inc. shareholders’ equity | 29,904 | 27,675 | 47,429 | -75,104 | 29,904 | |||||||||||
Noncontrolling interests | - | - | - | - | - | |||||||||||
Total equity | 29,904 | 27,675 | 47,429 | -75,104 | 29,904 | |||||||||||
Total liabilities and equity | $ | 51,037 | $ | 37,535 | $ | 61,756 | $ | -82,329 | $ | 67,999 | ||||||
Consolidating Statement of Operations | ||||||||||||||||
For The Year Ended December 31, 2014 | ||||||||||||||||
(millions) | ||||||||||||||||
Time | ||||||||||||||||
Parent | Guarantor | Non-Guarantor | Warner | |||||||||||||
Company | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||
Revenues | $ | - | $ | 6,820 | $ | 21,273 | $ | -734 | $ | 27,359 | ||||||
Costs of revenues | - | -3,471 | -13,047 | 643 | -15,875 | |||||||||||
Selling, general and administrative | -442 | -982 | -3,856 | 90 | -5,190 | |||||||||||
Amortization of intangible assets | - | - | -202 | - | -202 | |||||||||||
Restructuring and severance costs | -21 | -173 | -318 | - | -512 | |||||||||||
Asset impairments | -7 | -1 | -61 | - | -69 | |||||||||||
Gain on operating assets, net | - | - | 464 | - | 464 | |||||||||||
Operating income | -470 | 2,193 | 4,253 | -1 | 5,975 | |||||||||||
Equity in pretax income (loss) of consolidated subsidiaries | 6,131 | 3,831 | 1,759 | -11,721 | - | |||||||||||
Interest expense, net | -961 | -274 | 57 | 9 | -1,169 | |||||||||||
Other loss, net | -21 | 15 | -119 | -2 | -127 | |||||||||||
Income from continuing operations before income | ||||||||||||||||
taxes | 4,679 | 5,765 | 5,950 | -11,715 | 4,679 | |||||||||||
Income tax provision | -785 | -1,793 | -1,736 | 3,529 | -785 | |||||||||||
Income from continuing operations | 3,894 | 3,972 | 4,214 | -8,186 | 3,894 | |||||||||||
Discontinued operations, net of tax | -67 | -42 | -61 | 103 | -67 | |||||||||||
Net income | 3,827 | 3,930 | 4,153 | -8,083 | 3,827 | |||||||||||
Less Net loss attributable to noncontrolling interests | - | - | - | - | - | |||||||||||
Net income attributable to Time Warner Inc. | ||||||||||||||||
shareholders | $ | 3,827 | $ | 3,930 | $ | 4,153 | $ | -8,083 | $ | 3,827 | ||||||
Comprehensive income | 3,411 | 3,612 | 3,890 | -7,502 | 3,411 | |||||||||||
Less Comprehensive loss attributable to | ||||||||||||||||
noncontrolling interests | - | - | - | - | - | |||||||||||
Comprehensive income attributable to | ||||||||||||||||
Time Warner Inc. shareholders | $ | 3,411 | $ | 3,612 | $ | 3,890 | $ | -7,502 | $ | 3,411 | ||||||
Consolidating Statement of Operations | ||||||||||||||||
For The Year Ended December 31, 2013 | ||||||||||||||||
(recast; millions) | ||||||||||||||||
Time | ||||||||||||||||
Parent | Guarantor | Non-Guarantor | Warner | |||||||||||||
Company | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||
Revenues | $ | - | $ | 6,380 | $ | 20,632 | $ | -551 | $ | 26,461 | ||||||
Costs of revenues | - | -3,032 | -12,344 | 441 | -14,935 | |||||||||||
Selling, general and administrative | -406 | -956 | -3,676 | 104 | -4,934 | |||||||||||
Amortization of intangible assets | - | - | -209 | - | -209 | |||||||||||
Restructuring and severance costs | -5 | -67 | -111 | - | -183 | |||||||||||
Asset impairments | -7 | - | -54 | - | -61 | |||||||||||
Gain on operating assets, net | 8 | - | 121 | - | 129 | |||||||||||
Operating income | -410 | 2,325 | 4,359 | -6 | 6,268 | |||||||||||
Equity in pretax income (loss) of consolidated subsidiaries | 6,319 | 4,428 | 1,664 | -12,411 | - | |||||||||||
Interest expense, net | -885 | -325 | 11 | 10 | -1,189 | |||||||||||
Other loss, net | -56 | 1 | -57 | 1 | -111 | |||||||||||
Income from continuing operations before income | ||||||||||||||||
taxes | 4,968 | 6,429 | 5,977 | -12,406 | 4,968 | |||||||||||
Income tax provision | -1,614 | -2,095 | -2,026 | 4,121 | -1,614 | |||||||||||
Income from continuing operations | 3,354 | 4,334 | 3,951 | -8,285 | 3,354 | |||||||||||
Discontinued operations, net of tax | 337 | 333 | 334 | -667 | 337 | |||||||||||
Net income | 3,691 | 4,667 | 4,285 | -8,952 | 3,691 | |||||||||||
Less Net loss attributable to noncontrolling interests | - | - | - | - | - | |||||||||||
Net income attributable to Time Warner Inc. | ||||||||||||||||
shareholders | $ | 3,691 | $ | 4,667 | $ | 4,285 | $ | -8,952 | $ | 3,691 | ||||||
Comprehensive income | 3,828 | 4,774 | 4,231 | -9,005 | 3,828 | |||||||||||
Less Comprehensive loss attributable to | ||||||||||||||||
noncontrolling interests | - | - | - | - | - | |||||||||||
Comprehensive income attributable to | ||||||||||||||||
Time Warner Inc. shareholders | $ | 3,828 | $ | 4,774 | $ | 4,231 | $ | -9,005 | $ | 3,828 | ||||||
Consolidating Statement of Operations | ||||||||||||||||
For The Year Ended December 31, 2012 | ||||||||||||||||
(recast; millions) | ||||||||||||||||
Time | ||||||||||||||||
Parent | Guarantor | Non-Guarantor | Warner | |||||||||||||
Company | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||
Revenues | $ | - | $ | 6,107 | $ | 19,766 | $ | -548 | $ | 25,325 | ||||||
Costs of revenues | - | -3,002 | -12,022 | 449 | -14,575 | |||||||||||
Selling, general and administrative | -341 | -935 | -3,626 | 89 | -4,813 | |||||||||||
Amortization of intangible assets | - | - | -212 | - | -212 | |||||||||||
Restructuring and severance costs | -2 | -34 | -56 | - | -92 | |||||||||||
Asset impairments | - | 1 | -181 | - | -180 | |||||||||||
Gain on operating assets, net | 10 | 34 | 1 | - | 45 | |||||||||||
Operating income | -333 | 2,171 | 3,670 | -10 | 5,498 | |||||||||||
Equity in pretax income (loss) of consolidated subsidiaries | 5,272 | 3,597 | 1,509 | -10,378 | - | |||||||||||
Interest expense, net | -888 | -371 | -3 | 11 | -1,251 | |||||||||||
Other loss, net | -18 | 14 | -208 | -2 | -214 | |||||||||||
Income from continuing operations before income | ||||||||||||||||
taxes | 4,033 | 5,411 | 4,968 | -10,379 | 4,033 | |||||||||||
Income tax provision | -1,370 | -1,740 | -1,721 | 3,461 | -1,370 | |||||||||||
Income from continuing operations | 2,663 | 3,671 | 3,247 | -6,918 | 2,663 | |||||||||||
Discontinued operations, net of tax | 259 | 254 | 254 | -508 | 259 | |||||||||||
Net income | 2,922 | 3,925 | 3,501 | -7,426 | 2,922 | |||||||||||
Less Net loss attributable to noncontrolling interests | 3 | 3 | 2 | -5 | 3 | |||||||||||
Net income attributable to Time Warner Inc. | ||||||||||||||||
shareholders | $ | 2,925 | $ | 3,928 | $ | 3,503 | $ | -7,431 | $ | 2,925 | ||||||
Comprehensive income | 2,798 | 3,753 | 3,471 | -7,224 | 2,798 | |||||||||||
Less Comprehensive loss attributable to | ||||||||||||||||
noncontrolling interests | 3 | 3 | 2 | -5 | 3 | |||||||||||
Comprehensive income attributable to | ||||||||||||||||
Time Warner Inc. shareholders | $ | 2,801 | $ | 3,756 | $ | 3,473 | $ | -7,229 | $ | 2,801 | ||||||
Consolidating Statement of Cash Flows | ||||||||||||||||
For The Year Ended December 31, 2014 | ||||||||||||||||
(millions) | ||||||||||||||||
Parent | Guarantor | Non-Guarantor | Time Warner | |||||||||||||
Company | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||
OPERATIONS | ||||||||||||||||
Net income | $ | 3,827 | $ | 3,930 | $ | 4,153 | $ | -8,083 | $ | 3,827 | ||||||
Less Discontinued operations, net of tax | 67 | 42 | 61 | -103 | 67 | |||||||||||
Net income from continuing operations | 3,894 | 3,972 | 4,214 | -8,186 | 3,894 | |||||||||||
Adjustments for noncash and nonoperating items: | ||||||||||||||||
Depreciation and amortization | 17 | 116 | 600 | - | 733 | |||||||||||
Amortization of film and television costs | - | 2,747 | 5,336 | -43 | 8,040 | |||||||||||
Asset impairments | 7 | 1 | 61 | - | 69 | |||||||||||
Venezuelan foreign currency loss | - | - | 173 | - | 173 | |||||||||||
Gain on investments and other assets, net | -14 | -6 | -444 | - | -464 | |||||||||||
Excess (deficiency) of distributions over equity in pretax | ||||||||||||||||
income of consolidated subsidiaries, net of cash distributions | -6,131 | -3,831 | -1,759 | 11,721 | - | |||||||||||
Equity in losses of investee companies, net of cash distributions | 3 | -7 | 236 | - | 232 | |||||||||||
Equity-based compensation | 81 | 63 | 75 | - | 219 | |||||||||||
Deferred income taxes | 166 | -105 | -154 | 259 | 166 | |||||||||||
Changes in operating assets and liabilities, net of acquisitions | -739 | -1,016 | -3,858 | -3,768 | -9,381 | |||||||||||
Intercompany | - | 2,871 | -2,871 | - | - | |||||||||||
Cash provided by operations from continuing operations | -2,716 | 4,805 | 1,609 | -17 | 3,681 | |||||||||||
INVESTING ACTIVITIES | ||||||||||||||||
Investments in available-for-sale securities | -5 | - | -25 | - | -30 | |||||||||||
Investments and acquisitions, net of cash acquired | -64 | -2 | -884 | - | -950 | |||||||||||
Capital expenditures | -22 | -73 | -379 | - | -474 | |||||||||||
Investment proceeds from available-for-sale securities | 13 | 8 | 4 | - | 25 | |||||||||||
Proceeds from Time Inc. in the Time Separation | 590 | - | 810 | - | 1,400 | |||||||||||
Proceeds from the sale of Time Warner Center | - | - | 1,264 | - | 1,264 | |||||||||||
Advances to (from) parent and consolidated subsidiaries | 6,365 | 4,464 | - | -10,829 | - | |||||||||||
Other investment proceeds | 44 | 86 | 35 | -17 | 148 | |||||||||||
Cash provided (used) by investing activities from | ||||||||||||||||
continuing operations | 6,921 | 4,483 | 825 | -10,846 | 1,383 | |||||||||||
FINANCING ACTIVITIES | ||||||||||||||||
Borrowings | 2,118 | - | 291 | - | 2,409 | |||||||||||
Debt repayments | -48 | - | -24 | - | -72 | |||||||||||
Proceeds from exercise of stock options | 338 | - | - | - | 338 | |||||||||||
Excess tax benefit from equity instruments | 179 | - | - | - | 179 | |||||||||||
Principal payments on capital leases | - | -10 | -1 | - | -11 | |||||||||||
Repurchases of common stock | -5,504 | - | - | - | -5,504 | |||||||||||
Dividends paid | -1,109 | - | - | - | -1,109 | |||||||||||
Other financing activities | 88 | -45 | -251 | 35 | -173 | |||||||||||
Change in due to/from parent and investment in segment | - | -9,109 | -1,719 | 10,828 | - | |||||||||||
Cash used by financing activities from continuing operations | -3,938 | -9,164 | -1,704 | 10,863 | -3,943 | |||||||||||
Cash provided (used) by continuing operations | 267 | 124 | 730 | - | 1,121 | |||||||||||
Cash provided (used) by operations from discontinued | ||||||||||||||||
operations | -1 | - | -15 | - | -16 | |||||||||||
Cash used by investing activities from discontinued operations | 318 | 18 | -51 | -336 | -51 | |||||||||||
Cash used by financing activities from discontinued operations | - | - | -372 | 336 | -36 | |||||||||||
Effect of change in cash and equivalents of discontinued | ||||||||||||||||
operations | - | - | -87 | - | -87 | |||||||||||
Cash provided (used) by discontinued operations | 317 | 18 | -525 | - | -190 | |||||||||||
Effect of Venezuelan exchange rate changes on | ||||||||||||||||
cash and equivalents | - | - | -129 | - | -129 | |||||||||||
INCREASE (DECREASE) IN CASH AND EQUIVALENTS | 584 | 142 | 76 | - | 802 | |||||||||||
CASH AND EQUIVALENTS AT BEGINNING | ||||||||||||||||
OF PERIOD | 1,039 | 148 | 629 | - | 1,816 | |||||||||||
CASH AND EQUIVALENTS AT END OF PERIOD | $ | 1,623 | $ | 290 | $ | 705 | $ | - | $ | 2,618 | ||||||
Consolidating Statement of Cash Flows | ||||||||||||||||
For The Year Ended December 31, 2013 | ||||||||||||||||
(recast; millions) | ||||||||||||||||
Parent | Guarantor | Non-Guarantor | Time Warner | |||||||||||||
Company | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||
OPERATIONS | ||||||||||||||||
Net income | $ | 3,691 | $ | 4,667 | $ | 4,285 | $ | -8,952 | $ | 3,691 | ||||||
Less Discontinued operations, net of tax | -337 | -333 | -334 | 667 | -337 | |||||||||||
Net income from continuing operations | 3,354 | 4,334 | 3,951 | -8,285 | 3,354 | |||||||||||
Adjustments for noncash and nonoperating items: | ||||||||||||||||
Depreciation and amortization | 24 | 126 | 609 | - | 759 | |||||||||||
Amortization of film and television costs | - | 2,453 | 4,846 | -37 | 7,262 | |||||||||||
Asset impairments | 7 | - | 54 | - | 61 | |||||||||||
Gain on investments and other assets, net | -3 | 1 | -63 | - | -65 | |||||||||||
Excess (deficiency) of distributions over equity in pretax | ||||||||||||||||
income of consolidated subsidiaries, net of cash distributions | -6,319 | -4,428 | -1,664 | 12,411 | - | |||||||||||
Equity in losses of investee companies, net of cash distributions | 2 | 2 | 212 | - | 216 | |||||||||||
Equity-based compensation | 74 | 58 | 106 | - | 238 | |||||||||||
Deferred income taxes | 759 | 589 | 320 | -909 | 759 | |||||||||||
Changes in operating assets and liabilities, net of acquisitions | -329 | -228 | -5,631 | -3,138 | -9,326 | |||||||||||
Intercompany | - | 1,390 | -1,390 | - | - | |||||||||||
Cash provided by operations from continuing operations | -2,431 | 4,297 | 1,350 | 42 | 3,258 | |||||||||||
INVESTING ACTIVITIES | ||||||||||||||||
Investments in available-for-sale securities | -4 | - | -23 | - | -27 | |||||||||||
Investments and acquisitions, net of cash acquired | -11 | -1 | -483 | - | -495 | |||||||||||
Capital expenditures | -66 | -86 | -416 | - | -568 | |||||||||||
Investment proceeds from available-for-sale securities | 8 | - | 25 | - | 33 | |||||||||||
Advances to (from) parent and consolidated subsidiaries | 4,433 | 21 | - | -4,454 | - | |||||||||||
Other investment proceeds | 15 | 157 | 114 | -116 | 170 | |||||||||||
Cash provided (used) by investing activities from | ||||||||||||||||
continuing operations | 4,375 | 91 | -783 | -4,570 | -887 | |||||||||||
FINANCING ACTIVITIES | ||||||||||||||||
Borrowings | 998 | - | 30 | - | 1,028 | |||||||||||
Debt repayments | - | -732 | -30 | - | -762 | |||||||||||
Proceeds from exercise of stock options | 674 | - | - | - | 674 | |||||||||||
Excess tax benefit from equity instruments | 179 | - | - | - | 179 | |||||||||||
Principal payments on capital leases | - | -9 | - | - | -9 | |||||||||||
Repurchases of common stock | -3,708 | - | - | - | -3,708 | |||||||||||
Dividends paid | -1,074 | - | - | - | -1,074 | |||||||||||
Other financing activities | 25 | -38 | -172 | 74 | -111 | |||||||||||
Change in due to/from parent and investment in segment | - | -4,101 | -353 | 4,454 | - | |||||||||||
Cash used by financing activities from continuing operations | -2,906 | -4,880 | -525 | 4,528 | -3,783 | |||||||||||
Cash provided (used) by continuing operations | -962 | -492 | 42 | - | -1,412 | |||||||||||
Cash provided (used) by operations from discontinued | ||||||||||||||||
operations | -2 | - | 458 | - | 456 | |||||||||||
Cash used by investing activities from discontinued operations | 142 | 345 | -23 | -487 | -23 | |||||||||||
Cash used by financing activities from discontinued operations | - | - | -487 | 487 | - | |||||||||||
Effect of change in cash and equivalents of discontinued | ||||||||||||||||
operations | - | - | 35 | - | 35 | |||||||||||
Cash provided (used) by discontinued operations | 140 | 345 | -17 | - | 468 | |||||||||||
INCREASE (DECREASE) IN CASH AND | ||||||||||||||||
EQUIVALENTS | -822 | -147 | 25 | - | -944 | |||||||||||
CASH AND EQUIVALENTS AT BEGINNING | ||||||||||||||||
OF PERIOD | 1,861 | 295 | 604 | - | 2,760 | |||||||||||
CASH AND EQUIVALENTS AT END OF PERIOD | $ | 1,039 | $ | 148 | $ | 629 | $ | - | $ | 1,816 | ||||||
Consolidating Statement of Cash Flows | ||||||||||||||||
For The Year Ended December 31, 2012 | ||||||||||||||||
(recast; millions) | ||||||||||||||||
Parent | Guarantor | Non-Guarantor | Time Warner | |||||||||||||
Company | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||
OPERATIONS | ||||||||||||||||
Net income | $ | 2,922 | $ | 3,925 | $ | 3,501 | $ | -7,426 | $ | 2,922 | ||||||
Less Discontinued operations, net of tax | -259 | -254 | -254 | 508 | -259 | |||||||||||
Net income from continuing operations | 2,663 | 3,671 | 3,247 | -6,918 | 2,663 | |||||||||||
Adjustments for noncash and nonoperating items: | ||||||||||||||||
Depreciation and amortization | 25 | 142 | 598 | - | 765 | |||||||||||
Amortization of film and television costs | - | 2,403 | 4,834 | -27 | 7,210 | |||||||||||
Asset impairments | - | -1 | 181 | - | 180 | |||||||||||
Gain on investments and other assets, net | 2 | -37 | 25 | - | -10 | |||||||||||
Excess (deficiency) of distributions over equity in pretax | ||||||||||||||||
income of consolidated subsidiaries, net of cash distributions | -5,272 | -3,597 | -1,509 | 10,378 | - | |||||||||||
Equity in losses of investee companies, net of cash distributions | 2 | - | 219 | - | 221 | |||||||||||
Equity-based compensation | 48 | 53 | 94 | - | 195 | |||||||||||
Deferred income taxes | -161 | -257 | -252 | 509 | -161 | |||||||||||
Changes in operating assets and liabilities, net of acquisitions | 479 | -551 | -4,092 | -3,912 | -8,076 | |||||||||||
Intercompany | - | 2,132 | -2,132 | - | - | |||||||||||
Cash provided by operations from continuing operations | -2,214 | 3,958 | 1,213 | 30 | 2,987 | |||||||||||
INVESTING ACTIVITIES | ||||||||||||||||
Investments in available-for-sale securities | -11 | -11 | -15 | - | -37 | |||||||||||
Investments and acquisitions, net of cash acquired | -39 | -25 | -596 | - | -660 | |||||||||||
Capital expenditures | -38 | -100 | -471 | - | -609 | |||||||||||
Investment proceeds from available-for-sale securities | 1 | - | - | - | 1 | |||||||||||
Advances to (from) parent and consolidated subsidiaries | 4,024 | 261 | 1 | -4,286 | - | |||||||||||
Other investment proceeds | 26 | 52 | 19 | -12 | 85 | |||||||||||
Cash provided (used) by investing activities from | ||||||||||||||||
continuing operations | 3,963 | 177 | -1,062 | -4,298 | -1,220 | |||||||||||
FINANCING ACTIVITIES | ||||||||||||||||
Borrowings | 994 | - | 45 | - | 1,039 | |||||||||||
Debt repayments | -638 | - | -48 | - | -686 | |||||||||||
Proceeds from exercise of stock options | 1,107 | - | - | - | 1,107 | |||||||||||
Excess tax benefit from equity instruments | 83 | - | - | - | 83 | |||||||||||
Principal payments on capital leases | - | -10 | -1 | - | -11 | |||||||||||
Repurchases of common stock | -3,272 | - | - | - | -3,272 | |||||||||||
Dividends paid | -1,011 | - | 7 | -7 | -1,011 | |||||||||||
Other financing activities | 66 | -12 | -118 | -16 | -80 | |||||||||||
Change in due to/from parent and investment in segment | - | -4,178 | -113 | 4,291 | - | |||||||||||
Cash used by financing activities from continuing operations | -2,671 | -4,200 | -228 | 4,268 | -2,831 | |||||||||||
Cash provided (used) by continuing operations | -922 | -65 | -77 | - | -1,064 | |||||||||||
Cash provided (used) by operations from discontinued | ||||||||||||||||
operations | -9 | -25 | 489 | - | 455 | |||||||||||
Cash used by investing activities from discontinued operations | 214 | 221 | -26 | -435 | -26 | |||||||||||
Cash used by financing activities from discontinued operations | - | - | -435 | 435 | - | |||||||||||
Effect of change in cash and equivalents of discontinued | ||||||||||||||||
operations | - | - | 14 | - | 14 | |||||||||||
Cash provided (used) by discontinued operations | 205 | 196 | 42 | - | 443 | |||||||||||
INCREASE (DECREASE) IN CASH AND EQUIVALENTS | -717 | 131 | -35 | - | -621 | |||||||||||
CASH AND EQUIVALENTS AT BEGINNING | ||||||||||||||||
OF PERIOD | 2,578 | 164 | 639 | - | 3,381 | |||||||||||
CASH AND EQUIVALENTS AT END OF PERIOD | $ | 1,861 | $ | 295 | $ | 604 | $ | - | $ | 2,760 |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | Balance at | Additions Charged | Balance at | ||||||||||||||
Beginning of | (Credited) to Costs | End of | |||||||||||||||
Description | Period | and Expenses | Deductions | Period | |||||||||||||
2014 | |||||||||||||||||
Reserves deducted from accounts receivable: | |||||||||||||||||
Allowance for doubtful accounts | $ | 191 | $ | -20 | $ | -19 | $ | 152 | |||||||||
Reserves for sales returns and allowances | 1,192 | 1,867 | -2,059 | 1,000 | |||||||||||||
Total | $ | 1,383 | $ | 1,847 | $ | -2,078 | $ | 1,152 | |||||||||
2013 (recast) | |||||||||||||||||
Reserves deducted from accounts receivable: | |||||||||||||||||
Allowance for doubtful accounts | $ | 209 | $ | 28 | $ | -46 | $ | 191 | |||||||||
Reserves for sales returns and allowances | 1,198 | 2,066 | -2,072 | 1,192 | |||||||||||||
Total | $ | 1,407 | $ | 2,094 | $ | -2,118 | $ | 1,383 | |||||||||
2012 (recast) | |||||||||||||||||
Reserves deducted from accounts receivable: | |||||||||||||||||
Allowance for doubtful accounts | $ | 206 | $ | 37 | $ | -34 | $ | 209 | |||||||||
Reserves for sales returns and allowances | 1,381 | 1,874 | -2,057 | 1,198 | |||||||||||||
Total | $ | 1,587 | $ | 1,911 | $ | -2,091 | $ | 1,407 |
Description_of_Business_Basis_1
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Cash And Cash Equivalents | Cash and Equivalents |
Cash equivalents consist of investments that are readily convertible into cash and have original maturities of three months or less. Cash equivalents are carried at cost, which approximates fair value. The Company monitors concentrations of credit risk with respect to Cash and equivalents by placing such balances with higher quality financial institutions or investing such amounts in liquid, short-term, highly-rated instruments or investment funds holding similar instruments. As of December 31, 2014, the majority of the Company's Cash and equivalents were invested with banks with a credit rating of at least A and in Rule 2a-7 money market mutual funds. At December 31, 2014, the Company did not have more than $500 million invested in any single bank or money market mutual fund. | |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts |
The Company monitors customer credit risk related to accounts receivable, including unbilled trade receivables primarily related to the distribution of television product. Significant judgments and estimates are involved in evaluating if such amounts will ultimately be fully collected. Each of the Company's businesses maintains a comprehensive approval process prior to issuing credit to third-party customers. Counterparties that are determined to be of a higher risk are evaluated to assess whether the credit terms previously granted to them should be modified. The Company monitors customers' accounts receivable aging, and a provision for estimated uncollectible amounts is maintained based on customer payment levels, historical experience and management's views on trends in the overall receivable agings at the Company's businesses. In addition, for larger accounts, the Company performs analyses of risks on a customer-specific basis. At December 31, 2014 and 2013, total reserves for doubtful accounts were approximately $152 million and $191 million, respectively. For the year ended December 31, 2014, the Company recognized $20 million of income related to bad debt primarily due to the reversal of a reserve related to a Warner Bros. receivable. Bad debt expense recognized during the years ended December 31, 2013 and 2012 totaled $28 million and $37 million, respectively. | |
Investments | Investments |
Investments in companies in which Time Warner has significant influence, but less than a controlling voting interest, are accounted for using the equity method. Significant influence is generally presumed to exist when Time Warner owns between 20% and 50% of the voting interests in the investee, holds substantial management rights or holds an interest of less than 20% in an investee that is a limited liability partnership or limited liability corporation that is treated as a flow-through entity. | |
Under the equity method of accounting, only Time Warner's investment in and amounts due to and from the equity investee are included in the Consolidated Balance Sheet; only Time Warner's share of the investee's earnings (losses) is included in the Consolidated Statement of Operations; and only the dividends, cash distributions, loans or other cash received from the investee, additional cash investments, loan repayments or other cash paid to the investee are included in the Consolidated Statement of Cash Flows. | |
Investments in companies in which Time Warner does not have a controlling voting interest or over which it is unable to exert significant influence are generally accounted for at fair value if the investments are publicly traded. If the investment or security is not publicly traded, the investment is accounted for at cost. Unrealized gains and losses on investments accounted for at fair value are reported, net of tax, in Accumulated other comprehensive loss, net. Dividends and other distributions of earnings from investments in companies in which Time Warner does not have a controlling voting interest or over which it is unable to exert significant influence are included in Other loss, net, when declared. For more information, see Notes 3 and 4. | |
The company regularly reviews its investments for impairment. See “Asset Impairments” below for additional information. | |
Investments | |
The Company's investments consist of (i) investments carried at fair value, including available-for-sale securities and certain deferred compensation-related investments, (ii) investments accounted for using the cost method of accounting, (iii) investments accounted for using the equity method of accounting and (iv) held-to-maturity debt securities. The Company regularly reviews its investments for impairment, including when the carrying value of an investment exceeds its related market value. If the Company determines that an investment has sustained an other-than-temporary decline in its value, the investment is written down to its fair value by a charge to earnings that is included in Other loss, net. Factors that are considered by the Company in determining whether an other-than-temporary decline in value has occurred include (i) the market value of the security in relation to its cost basis, (ii) the financial condition of the investee and (iii) the Company's intent and ability to retain the investment for a sufficient period of time to allow for recovery in the market value of the investment. | |
In evaluating the factors described above for available-for-sale securities and held-to-maturity debt securities, the Company presumes a decline in value to be other-than-temporary if the quoted market price of the security is 20% or more below the investment's cost basis for a period of six months or more (the “20% criterion”) or the quoted market price of the security is 50% or more below the security's cost basis at any quarter end (the “50% criterion”). However, the presumption of an other-than-temporary decline in these instances may be overcome if there is persuasive evidence indicating that the decline is temporary in nature (e.g., the investee's operating performance is strong, the market price of the investee's security is historically volatile, etc.). Additionally, there may be instances in which impairment losses are recognized even if the 20% and 50% criteria are not satisfied (e.g., if there is a plan to sell the security in the near term and the fair value is below the Company's cost basis). | |
For investments accounted for using the cost or equity method of accounting, the Company evaluates information available (e.g., budgets, business plans, financial statements, etc.) in addition to quoted market prices, if any, in determining whether an other-than-temporary decline in value exists. Factors indicative of an other-than-temporary decline include recurring operating losses, credit defaults and subsequent rounds of financing at an amount below the cost basis of the Company's investment. For more information, see Note 4. | |
Available-for-sale securities are recorded at fair value in the Consolidated Balance Sheet, and the realized gains and losses are included as a component of Other loss, net in the Consolidated Statement of Operations. | |
Consolidation | |
Consolidation | |
Time Warner consolidates all entities in which it has a controlling voting interest and all variable interest entities (“VIEs”) in which the Company is deemed to be the primary beneficiary. Entities determined to be VIEs primarily consist of HBO Latin America Group (“HBO LAG”) because the Company's ownership and voting rights in this entity are disproportionate. HBO LAG operates multi-channel premium pay and basic tier television services in Latin America and is accounted for using the equity method. See Note 4 for additional information. | |
Foreign Currency Translation | Foreign Currency Translation |
Financial statements of subsidiaries operating outside the United States whose functional currency is not the U.S. Dollar are translated at the rates of exchange on the balance sheet date for assets and liabilities and at average rates of exchange for revenues and expenses during the period. Translation gains or losses on assets and liabilities are included as a component of Accumulated other comprehensive loss, net. | |
Derivative Instruments | Derivative Instruments |
The Company uses derivative instruments principally to manage the risk associated with movements in foreign currency exchange rates, and recognizes all derivative instruments on the Consolidated Balance Sheet at fair value. Changes in fair value of derivative instruments that qualify for hedge accounting will either be offset against the change in fair value of the hedged assets or liabilities through earnings or recognized in shareholders' equity as a component of Accumulated other comprehensive loss, net, until the hedged item is recognized in earnings, depending on whether the derivative instrument is being used to hedge changes in fair value or cash flows. For qualifying hedge relationships, the Company excludes the impact of forward points or option premiums from its assessment of hedge effectiveness and recognizes changes in the fair value of a derivative instrument due to forward points or option premiums in Other income (loss), net each quarter. The ineffective portion of a derivative instrument's change in fair value is immediately recognized in earnings. For those derivative instruments that do not qualify for hedge accounting, changes in fair value are recognized immediately in earnings. See Note 7 for additional information regarding derivative instruments held by the Company and risk management strategies. | |
Property, Plant and Equipment | Property, Plant and Equipment |
Property, plant and equipment are stated at cost. Additions to property, plant and equipment generally include material, labor and overhead. Time Warner also capitalizes certain costs associated with coding, software configuration, upgrades and enhancements incurred for the development of internal use software. Depreciation is recorded on a straight-line basis over estimated useful lives. Leasehold improvements are depreciated over the lesser of the estimated useful life of the improvement or the term of the applicable lease. Time Warner periodically evaluates the depreciation periods of property, plant and equipment to determine whether a revision to its estimates of useful lives is warranted. Property, plant and equipment, including capital leases, consist of (millions): | |
Goodwill and Intangible Assets | Intangible Assets |
Time Warner has a significant number of intangible assets, including acquired film and television libraries and other copyrighted products and tradenames. Time Warner does not recognize the fair value of internally generated intangible assets. Intangible assets acquired in business combinations are recorded at the acquisition date fair value in the Company's Consolidated Balance Sheet. Acquired film libraries are amortized using the film forecast computation model. For more information, see “Film and Television Production Cost Recognition, Participations and Residuals and Impairments” and Note 2. | |
Goodwill and Indefinite-Lived Intangible Assets | |
Goodwill and indefinite-lived intangible assets, primarily tradenames, are tested annually for impairment during the fourth quarter or earlier upon the occurrence of certain events or substantive changes in circumstances. Goodwill is tested for impairment at the reporting unit level. A reporting unit is either the “operating segment level,” such as Warner Bros. Entertainment Inc. (“Warner Bros.”), Home Box Office, Inc. (“Home Box Office”) and Turner Broadcasting System, Inc. (“Turner”), or one level below, which is referred to as a “component” (e.g., Warner Bros. Theatrical, Warner Bros. Television). The level at which the impairment test is performed requires judgment as to whether the operations below the operating segment constitute a self-sustaining business or whether the operations are similar such that they should be aggregated for purposes of the impairment test. For purposes of the goodwill impairment test, management has concluded that the operations below the operating segment level are not self-sustaining businesses or the operations are similar and therefore has determined that its reporting units are the same as its operating segments. | |
In assessing Goodwill for impairment, the Company has the option to first perform a qualitative assessment to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company is not required to perform any additional tests in assessing Goodwill for impairment. However, if the Company concludes otherwise or elects not to perform the qualitative assessment, then it is required to perform the first step of a two-step impairment review process. The first step of the two-step process involves a comparison of the estimated fair value of a reporting unit to its carrying amount. In performing the first step, the Company determines the fair value of a reporting unit using a discounted cash flow (“DCF”) analysis and, in certain cases, a combination of a DCF analysis and a market-based approach. Determining fair value requires the exercise of significant judgment, including judgments about appropriate discount rates, perpetual growth rates, the amount and timing of expected future cash flows, as well as relevant comparable public company earnings multiples. The cash flows employed in the DCF analyses are based on the Company's most recent budgets and long range plans and perpetual growth rates are assumed for years beyond the current long range plan period. Discount rate assumptions are based on an assessment of market rates, capital structures and the risk inherent in the future cash flows included in the budgets and long range plans. | |
In 2014, the Company did not elect to perform a qualitative assessment of Goodwill and instead performed a quantitative impairment test. The results of the quantitative test did not result in any impairments of Goodwill because the fair values of each of the Company's reporting units exceeded their respective carrying values. None of the carrying values of the Company's reporting units were within 30% of their respective fair values as of December 31, 2014. If the carrying value of a reporting unit exceeded its fair value, the second step of the impairment review process would need to be performed to determine the ultimate amount of impairment loss to record. Significant assumptions utilized in the DCF analysis included discount rates that ranged from 9.0% to 9.5% and a terminal revenue growth rate of 3.25%. Significant assumptions utilized in the market-based approach were market multiples ranging from 9.5x to 12.0x for the Company's reporting units where a market-based approach was performed. | |
In assessing other intangible assets not subject to amortization for impairment, the Company also has the option to perform a qualitative assessment to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of such an intangible asset is less than its carrying amount. If the Company determines that it is not more likely than not that the fair value of such an intangible asset is less than its carrying amount, then the Company is not required to perform any additional tests for assessing those intangible assets for impairment. However, if the Company concludes otherwise or elects not to perform the qualitative assessment, then it is required to perform a quantitative impairment test that involves a comparison of the estimated fair value of the intangible asset with its carrying value. If the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. | |
In 2014, the Company did not elect to perform a qualitative assessment for intangible assets not subject to amortization. The estimates of fair value of intangible assets not subject to amortization are determined using a DCF valuation analysis, which is based on the “relief from royalty” methodology. Discount rate assumptions are based on an assessment of the risk inherent in the projected future cash flows generated by the respective intangible assets. Also subject to judgment are assumptions about royalty rates, which are based on the estimated rates at which similar tradenames are being licensed in the marketplace. | |
The performance of the Company's 2014 annual impairment test for other intangible assets not subject to amortization did not result in any impairments since the fair value of each of the Company's intangible assets not subject to amortization exceeded its respective carrying value. No intangible asset not subject to amortization's fair value was within 30% of its carrying value. The significant assumptions utilized in the 2014 DCF analysis of other intangible assets not subject to amortization were discount rates that ranged from 9.5% to 10.0% and a terminal revenue growth rate of 3.25%. | |
Goodwill and indefinite-lived intangible assets, primarily certain tradenames, are tested annually for impairment during the fourth quarter, or earlier upon the occurrence of certain events or substantive changes in circumstances. | |
Long-Lived Assets | Long-Lived Assets |
Long-lived assets, including finite-lived intangible assets (e.g., tradenames, customer lists, film libraries and property, plant and equipment), do not require that an annual impairment test be performed; instead, long-lived assets are tested for impairment upon the occurrence of a triggering event. Triggering events include the more likely than not disposal of a portion of such assets or the occurrence of an adverse change in the market involving the business employing the related assets. Once a triggering event has occurred, the impairment test is based on whether the intent is to hold the asset for continued use or to hold the asset for sale. The impairment test for assets held for continued use requires a comparison of cash flows expected to be generated over the useful life of an asset or group of assets (“asset group”) against the carrying value of the asset group. An asset group is established by identifying the lowest level of cash flows generated by the asset or group of assets that are largely independent of the cash flows of other assets. If the intent is to hold the asset group for continued use, the impairment test first requires a comparison of estimated undiscounted future cash flows generated by the asset group against its carrying value. If the carrying value exceeds the estimated undiscounted future cash flows, an impairment would be measured as the difference between the estimated fair value of the asset group and its carrying value. Fair value is generally determined by discounting the future cash flows associated with that asset group. If the intent is to hold the asset group for sale and certain other criteria are met (e.g., the asset can be disposed of currently, appropriate levels of authority have approved the sale, and there is an active program to locate a buyer), the impairment test involves comparing the asset group's carrying value to its estimated fair value. To the extent the carrying value is greater than the estimated fair value, an impairment loss is recognized for the difference. Significant judgments in this area involve determining the appropriate asset group level at which to test, determining whether a triggering event has occurred, determining the future cash flows for the assets involved and selecting the appropriate discount rate to be applied in determining estimated fair value. For more information, see Note 2. | |
The majority of the Company's non-financial instruments, which include goodwill, intangible assets, inventories and property, plant and equipment, are not required to be carried at fair value on a recurring basis. However, if certain triggering events occur (or at least annually for goodwill and indefinite-lived intangible assets), a non-financial instrument is required to be evaluated for impairment. If the Company determines that the non-financial instrument is impaired, the Company would be required to write down the non-financial instrument to its fair value. | |
Accounting for Pension Plans | Accounting for Pension Plans |
The Company and certain of its subsidiaries have both funded and unfunded defined benefit pension plans, the substantial majority of which are noncontributory, covering a majority of domestic employees and, to a lesser extent, have various defined benefit plans, primarily noncontributory, covering certain international employees. Pension benefits are based on formulas that reflect the participating employees' years of service and compensation. Time Warner's largest defined benefit pension plan is closed for new employees and frozen to future benefit accruals. Time Warner uses a December 31st measurement date for its plans. The pension expense recognized by the Company is determined using certain assumptions, including the expected long-term rate of return on plan assets, the interest factor implied by the discount rate and the rate of compensation increases. For more information, see Note 13. | |
Equity-Based Compensation | Share-Based Payment Awards with Performance Targets Attainable After the Requisite Service Period |
On July 1, 2014, the Company early adopted guidance that clarifies that a performance target that affects the vesting of an award payable in shares and that can be met after the requisite service period is a performance condition. Therefore, compensation expense related to such awards should only be recognized when it becomes probable that the performance target will be met, which could occur after the requisite service period has been satisfied. The adoption of this guidance did not have an impact on the Company's consolidated financial statements. | |
Equity-Based Compensation | |
The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. That cost is recognized in Costs of revenues or Selling, general and administrative expenses depending on the job function of the grantee on a straight-line basis (net of estimated forfeitures) from the date of grant over the period during which an employee is required to provide services in exchange for the award. The total grant-date fair value of an equity award granted to an employee who has reached a specified age and years of service as of the grant date is recognized as compensation expense immediately upon grant as there is no required service period. | |
The grant-date fair value of a restricted stock unit (“RSU”) is determined based on the closing sale price of the Company's common stock on the NYSE Composite Tape on the date of grant. | |
Performance stock units (“PSUs”) are subject to a performance condition such that the number of PSUs that ultimately vest generally depends on the adjusted earnings per share (“Adjusted EPS”) achieved by the Company during a three-year performance period compared to targets established at the beginning of the period. The PSUs are also subject to a market condition and the number of PSUs that vest can be increased or decreased based on the Company's cumulative total shareholder return (“TSR”) relative to the TSR of the other companies in the S&P 500 Index for the performance period. Because the terms of the PSUs provide discretion to make certain adjustments to the performance calculation, the service inception date of these awards precedes the grant date. Accordingly, the Company recognizes compensation expense beginning on the service inception date and remeasures the fair value of the PSU until a grant date occurs, which is typically after the completion of the required service period. PSUs, as well as RSUs granted to certain senior executives beginning in 2012, also are subject to a performance condition based on an adjusted net income target for a one-year period that, if not achieved, will result in the forfeiture of the awards. | |
The grant-date fair value of a stock option is estimated using the Black-Scholes option-pricing model. Because the Black-Scholes option-pricing model requires the use of subjective assumptions, changes in these assumptions can materially affect the fair value of the stock options. The Company determines the volatility assumption for these stock options using implied volatilities data from its traded options. The expected term, which represents the period of time that stock options granted are expected to be outstanding, is estimated based on the historical exercise behavior of Time Warner employees. Groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. The risk-free rate assumed in valuing the options is based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the option. The Company determines the expected dividend yield percentage by dividing the expected annual dividend by the market price of Time Warner common stock at the date of grant. For more information, see Note 12. | |
For accounting purposes, the Company records equity-based compensation expense and a related deferred tax asset for the future tax deductions it may receive. For income tax purposes, the Company receives a tax deduction equal to the stock price on the date that a restricted stock unit (or performance share unit) vests or the excess of the stock price over the exercise price of an option upon exercise. The deferred tax asset consists of amounts relating to individual unvested and/or unexercised equity-based compensation awards; accordingly, deferred tax assets related to certain equity awards may currently be in excess of the tax benefit ultimately received. The applicable accounting rules require that the deferred tax asset related to an equity-based compensation award be reduced only at the time the award vests (in the case of a restricted stock unit or performance share unit), is exercised (in the case of a stock option) or otherwise expires or is cancelled. This reduction is recorded as an adjustment to Additional paid-in capital (“APIC”), to the extent that the realization of excess tax deductions on prior equity-based compensation awards were recorded directly to APIC. The cumulative amount of such excess tax deductions is referred to as the Company's “APIC Pool.” Any shortfall balance recognized in excess of the Company's APIC Pool is charged to Income tax provision in the Consolidated Statement of Operations. The Company's APIC Pool was sufficient to absorb any shortfalls such that no shortfalls were charged to the Income tax provision during the years ended December 31, 2014, 2013 and 2012. | |
Revenue Recognition | |
Revenue | |
The Company generates revenue primarily from content production and distribution (i.e., Content Revenue), providing programming to cable system operators, satellite distribution services, telephone companies and other distributors (collectively, “affiliates”) that have contracted to receive and distribute this programming to their subscribers (i.e., Subscription Revenue) and the sale of advertising on the Company's television networks and websites and the websites it manages and/or operates for others (i.e., Advertising Revenue). | |
Content Revenue | |
Feature films typically are produced or acquired for initial exhibition in theaters, followed by distribution, generally commencing within three years of such initial exhibition, through home video, electronic sell-through, video-on-demand, subscription video-on-demand services, premium cable, basic cable and broadcast networks. Revenues from film rentals by theaters are recognized as the films are exhibited. Revenues from home video sales are recognized at the later of the delivery date or the date that the DVDs or Blu-ray Discs are made widely available for sale or rental by retailers based on gross sales less a provision for estimated returns. Revenues from the licensing of feature films for electronic sell-through or video-on-demand are recognized when the product has been purchased by and made available to the consumer to either download or stream. Revenues from the distribution of theatrical product through subscription video-on-demand services, premium cable, basic cable and broadcast networks are recognized when the films are available to the licensee. | |
Television programs and series are initially produced for broadcast networks, cable networks or first-run television syndication and may be subsequently licensed for international or domestic cable, syndicated television and subscription video-on-demand services, as well as sold on home video and via electronic delivery. Revenues from the distribution of television programming through broadcast networks, cable networks, first-run syndication and subscription video-on-demand services are recognized when the programs or series are available to the licensee, except for advertising barter agreements, where the revenue is valued and recognized when the related advertisements are exhibited. In certain circumstances, pursuant to the terms of the applicable contractual arrangements, the availability dates granted to customers may precede the date the Company may bill the customers for these sales. Unbilled accounts receivable, which primarily relate to the distribution of television product at Warner Bros., totaled $3.780 billion and $3.418 billion at December 31, 2014 and December 31, 2013, respectively. Included in the unbilled accounts receivable at December 31, 2014 was $2.462 billion that is to be billed in the next twelve months. Similar to theatrical home video sales, revenues from home video sales of television programming are recognized at the later of the delivery date or the date that the DVDs or Blu-ray Discs are made widely available for sale or rental by retailers based on gross sales less a provision for estimated returns. Revenues from the licensing of television programs and series for electronic sell-through or video-on-demand are recognized when the product has been purchased by and made available to the consumer to either download or stream. Revenues from the distribution of television programming through subscription video-on-demand services are recognized when the television programs or series are available to the licensee. | |
Upfront or guaranteed payments for the licensing of intellectual property are recognized as revenue when (i) an arrangement has been signed with a customer, (ii) the customer's right to use or otherwise exploit the intellectual property has commenced and there is no requirement for significant continued performance by the Company, (iii) licensing fees are either fixed or determinable and (iv) collectability of the fees is reasonably assured. In the event any significant continued performance is required in these arrangements, revenue is allocated to each applicable element and recognized when the related services are performed. | |
Revenues from the sales of videogames are recognized at the later of the delivery date or the date that the product is made widely available for sale or rental by retailers based on gross sales less a provision for estimated returns. | |
Subscription Revenue | |
Subscription revenues are recognized as programming services are provided to affiliates based on negotiated contractual programming rates. When a distribution contract with an affiliate has expired and a new distribution contract has not been executed, revenues are based on estimated rates, giving consideration to factors including the previous contractual rates, inflation, current payments by the affiliate and the status of the negotiations on a new contract. When the new distribution contract terms are finalized, an adjustment to Subscription revenues is recorded, if necessary, to reflect the new terms. Such adjustments historically have not been significant. | |
Advertising Revenue | |
Advertising revenues are recognized, net of agency commissions, in the period that the advertisements are aired. If there is a targeted audience guarantee, revenues are recognized for the actual audience delivery and revenues are deferred for any shortfall until the guaranteed audience delivery is met, typically by providing additional advertisements. Advertising revenues from websites are recognized as impressions are delivered or the services are performed. | |
Sales Returns and Pricing Rebates | |
Management's estimate of product sales that will be returned and pricing rebates to grant is an area of judgment affecting Revenues and Net income. In estimating product sales that will be returned, management analyzes vendor sales of the Company's product, historical return trends, current economic conditions, and changes in customer demand. Based on this information, management reserves a percentage of any product sales that provide the customer with the right of return. The provision for such sales returns is reflected as a reduction in the revenues from the related sale. In estimating the reserve for pricing rebates, management considers the terms of the Company's agreements with its customers that contain targets which, if met, would entitle the customer to a rebate. In those instances, management evaluates the customer's actual and forecasted purchases to determine the appropriate reserve. At December 31, 2014 and 2013, total reserves for sales returns (which also reflects reserves for certain pricing allowances provided to customers) primarily related to home entertainment products (e.g., DVDs, Blu-ray Discs and videogames) were $1.000 billion and $1.192 billion, respectively. An incremental change of 1% in the Company's estimated sales returns rate (i.e., provisions for returns divided by gross sales of related product) would have resulted in an approximate $44 million impact on the Company's total Revenues for the year ended December 31, 2014. This revenue impact would have been partially offset by a corresponding impact on related expenses depending on the margin associated with a specific film or videogame and other factors. | |
Gross versus Net Revenue Recognition | |
In the normal course of business, the Company acts as or uses an intermediary in executing transactions with third parties. In connection with these arrangements, the Company must determine whether to report revenue based on the gross amount billed to the ultimate customer or on the net amount received from the customer after commissions and other payments to third parties. To the extent revenues are recorded on a gross basis, any commissions or other payments to third parties are recorded as expense so that the net amount (gross revenues less expense) is reflected in Operating Income. Accordingly, the impact on Operating Income is the same whether the Company records revenue on a gross or net basis. | |
The determination of whether revenue should be reported on a gross or net basis is based on an assessment of whether the Company is acting as the principal or an agent in the transaction. If the Company is acting as a principal in a transaction, the Company reports revenue on a gross basis. If the Company is acting as an agent in a transaction, the Company reports revenue on a net basis. The determination of whether the Company is acting as a principal or an agent in a transaction involves judgment and is based on an evaluation of the terms of an arrangement. The Company serves as the principal in transactions in which it has substantial risks and rewards of ownership. | |
The following are examples of arrangements where the Company is an intermediary or uses an intermediary: | |
Warner Bros. provides distribution services to third-party companies. Warner Bros. may provide distribution services for an independent third-party company for the worldwide distribution of theatrical films, home video, television programs and/or videogames. The independent third-party company may retain final approval over the distribution, marketing, advertising and publicity for each film or videogame in all media, including the timing and extent of the releases, the pricing and packaging of packaged goods units and approval of all television licenses. Warner Bros. records revenue generated in these distribution arrangements on a gross basis when it (i) is the merchant of record for the licensing arrangements, (ii) is the licensor/contracting party, (iii) provides the materials to licensees, (iv) handles the billing and collection of all amounts due under such arrangements and (v) bears the risk of loss related to distribution advances and/or the packaged goods inventory. If Warner Bros. does not bear the risk of loss as described in the previous sentence, the arrangements are accounted for on a net basis. | |
Turner provides advertising sales services to third-party companies. From time to time, Turner contracts with third parties, or in certain instances a related party such as a joint venture, to perform television or website advertising sales services. While terms of these agreements can vary, Turner generally records advertising revenue on a gross basis when it acts as the primary obligor (i.e., Turner is the contracting party) in the arrangement because in those cases it is the face to the advertiser and is responsible for fulfillment of the advertising sold. | |
Barter Transactions | |
Time Warner enters into transactions that involve the exchange of advertising, in part, for other products and services, such as a license for programming. Such transactions are recognized by the programming licensee (e.g., a television network) as programming inventory and deferred advertising revenue at the estimated fair value when the product is available for telecast. Barter programming inventory is amortized in the same manner as the non-barter component of the licensed programming, and Advertising revenue is recognized when advertising spots are delivered. From the perspective of the programming licensor (e.g., a film studio), incremental licensing revenue is recognized when the barter advertising spots received are either used or sold to third parties. | |
Multiple-Element Transactions | |
In the normal course of business, the Company enters into multiple-element transactions that involve making judgments about allocating the consideration to the various elements of the transactions. While the more common type of multiple-element transactions encountered by the Company involve the sale or purchase of multiple products or services (e.g., licensing multiple film titles in a single arrangement), multiple-element transactions can also involve contemporaneous purchase and sales transactions, the settlement of an outstanding dispute contemporaneous with the purchase of a product or service, as well as investing in an investee while at the same time entering into an operating agreement. In accounting for multiple-element transactions, judgment must be exercised in identifying the separate elements in a bundled transaction as well as determining the values of these elements. These judgments can impact the amount of revenues, expenses and net income recognized over the term of the contract, as well as the period in which they are recognized. | |
In determining the value of the respective elements, the Company refers to quoted market prices (where available), independent appraisals (where available), historical and comparable cash transactions or its best estimate of selling price. Other indicators of value include the existence of price protection in the form of “most-favored-nation” clauses or similar contractual provisions and individual elements whose values are dependent on future performance (and based on independent factors). Further, in such transactions, evidence of value for one element of a transaction may provide support that value was not transferred from one element in a transaction to another element in a transaction. | |
Cost of Sales | Film and Television Production Cost Recognition, Participations and Residuals and Impairments |
Film and television production costs include the unamortized cost of completed theatrical films and television episodes, theatrical films and television series in production and undeveloped film and television rights. Film and television production costs are stated at the lower of cost, less accumulated amortization, or fair value. The amount of capitalized film and television production costs recognized as Costs of revenues for a given period is determined using the film forecast computation method. Under this method, the amortization of capitalized costs and the accrual of participations and residuals is based on the proportion of the film's revenues recognized for such period to the film's estimated remaining ultimate revenues (i.e., the total revenue to be received throughout a film's life cycle). | |
Licensed Programming Inventory | |
In the normal course of business, the Company's Turner and Home Box Office segments enter into agreements to license programming exhibition rights from licensors. A programming inventory asset related to these rights and a corresponding liability to the licensor are recorded (on a discounted basis if the license agreements are long-term) when (i) the cost of the programming is reasonably determined, (ii) the programming material has been accepted in accordance with the terms of the agreement, (iii) the programming is available for its first showing or telecast, and (iv) the license period has commenced. There are variations in the amortization methods of these rights, depending on whether the network is advertising-supported (e.g., TNT and TBS) or not advertising-supported (e.g., HBO and Turner Classic Movies). | |
For the Company's advertising-supported networks, the Company's general policy is to amortize each program's costs on a straight-line basis (or per-play basis, if greater) over its license period. However, for certain types of programming, the initial airing has more value than subsequent airings. In these circumstances, the Company will use an accelerated method of amortization. For example, if the Company is licensing the right to air a movie multiple times over a certain period, the movie is being shown for the first time on a Company network (a “Network Movie Premiere”) and the Network Movie Premiere advertising is sold at a premium rate, a larger portion of the movie's programming inventory cost is amortized upon the initial airing of the movie, with the remaining cost amortized on a straight-line basis (or per-play basis, if greater) over the remaining license period. The accelerated amortization upon the first airing versus subsequent airings is determined based on a study of historical and estimated future advertising sales for similar programming. For rights fees paid for sports programming arrangements (e.g., National Basketball Association, The National Collegiate Athletic Association (“NCAA”) Men's Division I Basketball championship events (the “NCAA Tournament”) and Major League Baseball), such rights fees are amortized using a revenue-forecast model, in which the rights fees are amortized using the ratio of current period advertising revenue to total estimated remaining advertising revenue over the term of the arrangement. | |
For premium pay television services that are not advertising-supported, each licensed program's costs are amortized on a straight-line basis over its license period or estimated period of use, beginning with the month of initial exhibition. When the Company has the right to exhibit feature theatrical programming in multiple windows over a number of years, the Company uses historical audience viewership as its basis for determining the amount of programming amortization attributable to each window. | |
Videogame development costs are expensed as incurred before the applicable videogames reach technological feasibility. Unamortized capitalized videogame production and development costs are stated at the lower of cost, less accumulated amortization, or net realizable value and reported in Other assets on the Consolidated Balance Sheet. At December 31, 2014 and 2013, there were $277 million and $243 million, respectively, of unamortized computer software costs related to videogames. Amortization of such costs was $115 million, $180 million and $182 million for the years ended December 31, 2014, 2013 and 2012, respectively. Included in such amortization are writedowns to net realizable value of certain videogame production costs of $51 million, $53 million and $7 million in 2014, 2013 and 2012, respectively. | |
In determining the fair value of its theatrical films, the Company employs a DCF methodology that includes cash flow estimates of a film's ultimate revenue and costs as well as a discount rate. The discount rate utilized in the DCF analysis is based on the weighted average cost of capital of the respective business (e.g., Warner Bros.) plus a risk premium representing the risk associated with producing a particular theatrical film. The fair value of any theatrical film and television production that management plans to abandon is zero. As the primary determination of fair value is determined using a DCF model, the resulting fair value is considered a Level 3 measurement. | |
Inventory | The Company carries its licensed programming inventory at the lower of unamortized cost or estimated net realizable value. For networks that generate both Advertising and Subscription revenues (e.g., TBS and TNT), the Company generally evaluates the net realizable value of unamortized programming costs based on the network's programming taken as a whole. In assessing whether the programming inventory for a particular advertising-supported network is impaired, the Company determines the net realizable value for all of the network's programming inventory based on a projection of the network's estimated combined Subscription revenues and Advertising revenues less certain direct costs of delivering the programming. Similarly, for premium pay television services that are not advertising-supported, the Company performs its evaluation of the net realizable value of unamortized programming costs based on the premium pay television services' licensed programming taken as a whole. Specifically, the Company determines the net realizable value for all of its premium pay television service licensed programming based on projections of estimated Subscription revenues less certain costs of delivering and distributing the licensed programming. However, changes in management's intended usage of a specific program, such as a decision to no longer exhibit that program and forego the use of the rights associated with the program license, would result in a reassessment of that program's net realizable value, which could result in an impairment. |
Other Inventory | |
Inventories other than film and television production costs and licensed programming inventory consist primarily of DVDs, Blu-ray Discs and videogame development costs and are stated at the lower of cost or net realizable value. Cost is determined using the average cost method. Returned goods included in Inventory are valued at estimated realizable value, but not in excess of cost. For more information, see Note 6. | |
Accounting for Collaborative Arrangements | Accounting for Collaborative Arrangements |
The Company's collaborative arrangements primarily relate to co-financing arrangements to jointly finance and distribute theatrical productions and an arrangement entered into with CBS Broadcasting, Inc. (“CBS”) and the NCAA that provides Turner and CBS with exclusive television, Internet and wireless rights to the NCAA Tournament in the U.S. and its territories and possessions from 2011 through 2024. | |
In most cases, the form of the co-financing arrangement is the sale of an interest in a film to an investor. Warner Bros. generally records the amounts received for the sale of an interest as a reduction of the costs of the film, as the investor assumes full risk for that share of the film asset acquired in these transactions. The substance of these arrangements is that the third-party investors own an interest in the film and, therefore, in each period the Company reflects in the Consolidated Statement of Operations either a charge or benefit to Costs of revenues to reflect the estimate of the third-party investor's interest in the profits or losses incurred on the film. The estimate of the third-party investor's interest in profits or losses incurred on the film is determined using the film forecast computation method. For the years ended December 31, 2014, 2013 and 2012, net participation costs related to third party investors of $580 million, $522 million and $444 million, respectively, were recorded in Costs of revenues. | |
The aggregate programming rights fee, production costs, advertising revenues and sponsorship revenues related to the NCAA Tournament and related programming are equally shared by Turner and CBS. However, if the amount paid for the programming rights fee and production costs in any given year exceeds advertising and sponsorship revenues for that year, CBS' share of such shortfall is limited to specified annual amounts (the “loss cap”), ranging from approximately $90 million to $30 million. The amounts incurred by the Company pursuant to the loss cap during the years ended December 31, 2014 and 2013 were not significant. In accounting for this arrangement, the Company records Advertising revenues for the advertisements aired on Turner's networks and amortizes Turner's share of the programming rights fee based on the ratio of current period advertising revenues to its estimate of total advertising revenues over the term of the arrangement. | |
Advertising Costs | Advertising Costs |
Time Warner expenses advertising costs as they are incurred, which generally is when the advertising is exhibited or aired. Advertising expense to third parties was $2.430 billion in 2014, $2.447 billion in 2013 and $2.314 billion in 2012. | |
Income Taxes | Presentation of Unrecognized Tax Benefits |
On January 1, 2014, the Company adopted on a prospective basis guidance requiring a liability related to an unrecognized tax benefit to be offset against a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. In situations in which a net operating loss carryforward, a similar tax loss or a tax credit carryforward is not available at the reporting date under the tax law of a jurisdiction or the tax law of a jurisdiction does not require it, and the Company does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit would be presented in the financial statements as a liability and will not be combined with deferred tax assets. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements. | |
Income Taxes | |
Income taxes are provided using the asset and liability method, such that income taxes (i.e., deferred tax assets, deferred tax liabilities, taxes currently payable/refunds receivable and tax expense) are recorded based on amounts refundable or payable in the current year and include the results of any difference between GAAP and tax reporting. Deferred income taxes reflect the tax effect of net operating losses, capital losses and tax credit carryforwards and the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial statement and income tax purposes, as determined under tax laws and rates. Valuation allowances are established when management determines that it is more likely than not that some portion or all of the deferred tax asset will not be realized. The financial effect of changes in tax laws or rates is accounted for in the period of enactment. The subsequent realization of net operating loss and general business credit carryforwards acquired in acquisitions accounted for using the purchase method of accounting is recognized in the Consolidated Statement of Operations. Tax credits received for the production of a film or program are offset against the cost of inventory capitalized. | |
From time to time, the Company engages in transactions in which the tax consequences may be subject to uncertainty. Examples of such transactions include business acquisitions and dispositions, including dispositions designed to be tax free, and certain financing transactions. Significant judgment is required in assessing and estimating the tax consequences of these transactions. The Company prepares and files tax returns based on its interpretation of tax laws and regulations. In the normal course of business, the Company's tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax and interest assessments by these taxing authorities. In determining the Company's tax provision for financial reporting purposes, the Company establishes a reserve for uncertain tax positions unless such positions are determined to be more likely than not of being sustained upon examination based on their technical merits. There is considerable judgment involved in determining whether positions taken on the Company's tax returns are more likely than not of being sustained. | |
The Company adjusts its tax reserve estimates periodically because of ongoing examinations by, and settlements with, the various taxing authorities, as well as changes in tax laws, regulations and interpretations. The Company's policy is to recognize, when applicable, interest and penalties on uncertain tax positions as part of income tax expense. For further information, see Note 9. | |
Discontinued Operations | Discontinued Operations |
In determining whether a group of assets disposed (or to be disposed) of should be presented as a discontinued operation, for periods prior to January 1, 2015 the Company made a determination of whether the group of assets being disposed of comprised a component of the entity; that is, whether it had historic operations and cash flows that were clearly distinguished (both operationally and for financial reporting purposes). The Company also determined whether the cash flows associated with the group of assets had been significantly (or will be significantly) eliminated from the ongoing operations of the Company as a result of the disposal transaction and whether the Company had no significant continuing involvement in the operations of the group of assets after the disposal transaction. If so, the results of operations of the group of assets disposed of (as well as any gain or loss on the disposal transaction) were aggregated for separate presentation, if material, apart from continuing operating results of the Company in the consolidated financial statements. | |
In connection with the Time Separation, the Company has recast its financial information to present the financial position and results of operations of its former Time Inc. segment as discontinued operations in the accompanying consolidated financial statements for all periods presented. For more information on the Time Separation, see Note 3. | |
Derivatives, Offsetting Fair Value Amounts | For such foreign exchange contracts, the Company offsets the fair values of the amounts owed to or due from the same counterparty and classifies the net amount as a net asset or net liability within Prepaid expenses and other current assets or Accounts payable and accrued liabilities, respectively, in the Consolidated Balance Sheet. |
Income Tax Uncertainties | The Company recognizes income tax benefits for tax positions determined more likely than not to be sustained upon examination, based on the technical merits of the positions. |
The Company's policy is to recognize interest and penalties accrued on uncertain tax positions as part of income tax expense. | |
Description_of_Business_Basis_2
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Property, Plant and Equipment | Property, plant and equipment, including capital leases, consist of (millions): | ||||||||||
December 31, | Estimated | ||||||||||
2014 | 2013 | Useful Lives | |||||||||
(recast) | |||||||||||
Land(a) | $ | 274 | $ | 431 | n/a | ||||||
Buildings and improvements | 1,549 | 2,287 | 7 to 30 years | ||||||||
Capitalized software costs | 1,868 | 1,636 | 3 to 7 years | ||||||||
Furniture, fixtures and other equipment(b) | 3,102 | 3,236 | 3 to 10 years | ||||||||
6,793 | 7,590 | ||||||||||
Accumulated depreciation | -4,138 | -4,299 | |||||||||
Total | $ | 2,655 | $ | 3,291 | |||||||
____________ | |||||||||||
(a) | Land is not depreciated. | ||||||||||
(b) | Includes $223 million and $327 million of construction in progress as of December 31, 2014 and 2013, respectively. |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||
Schedule of Goodwill | The following summary of changes in the Company's Goodwill during the years ended December 31, 2014 and 2013, by reportable segment, is as follows (millions): | |||||||||||||||||||
Turner | Home Box Office | Warner Bros. | Total | |||||||||||||||||
Balance at December 31, 2012 (recast) | $ | 13,991 | $ | 7,309 | $ | 5,996 | $ | 27,296 | ||||||||||||
Acquisitions, dispositions and | ||||||||||||||||||||
adjustments | 7 | 122 | -9 | 120 | ||||||||||||||||
Translation adjustments | -18 | - | 3 | -15 | ||||||||||||||||
Balance at December 31, 2013 (recast) | $ | 13,980 | $ | 7,431 | $ | 5,990 | $ | 27,401 | ||||||||||||
Acquisitions, dispositions and | ||||||||||||||||||||
adjustments | -6 | 2 | 206 | 202 | ||||||||||||||||
Translation adjustments | -18 | - | -20 | -38 | ||||||||||||||||
Balance at December 31, 2014 | $ | 13,956 | $ | 7,433 | $ | 6,176 | $ | 27,565 | ||||||||||||
Schedule of Impaired Intangible Assets | The Company recorded noncash impairments of intangible assets during the years ended December 31, 2014, 2013 and 2012 by reportable segment, as follows (millions): | |||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
(recast) | (recast) | |||||||||||||||||||
Turner | $ | 1 | $ | 18 | $ | 79 | ||||||||||||||
Home Box Office | 4 | - | - | |||||||||||||||||
Warner Bros. | 13 | 1 | 1 | |||||||||||||||||
Time Warner | $ | 18 | $ | 19 | $ | 80 | ||||||||||||||
Schedule of Finite-Lived Intangible Assets | The Company's intangible assets subject to amortization and related accumulated amortization consisted of the following (millions): | |||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||
Gross | Accumulated Amortization(a) | Net | Gross | Accumulated Amortization(a) | Net | |||||||||||||||
(recast) | ||||||||||||||||||||
Intangible assets subject to | ||||||||||||||||||||
amortization: | ||||||||||||||||||||
Film library | $ | 3,432 | $ | -2,635 | $ | 797 | $ | 3,452 | $ | -2,494 | $ | 958 | ||||||||
Brands, tradenames and other | ||||||||||||||||||||
intangible assets | 710 | -366 | 344 | 686 | -306 | 380 | ||||||||||||||
Total | $ | 4,142 | $ | -3,001 | $ | 1,141 | $ | 4,138 | $ | -2,800 | $ | 1,338 | ||||||||
____________ | ||||||||||||||||||||
(a) The film library has a weighted-average remaining life of approximately 6 years and is amortized using a film forecast computation methodology. Amortization of brands, tradenames and other intangible assets subject to amortization is provided generally on a straight-line basis over their respective useful lives. | ||||||||||||||||||||
Schedule of Expected Amortization Expense | The Company's estimated amortization expense for the succeeding five years ended December 31 is as follows (millions): | |||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||
Estimated amortization expense | $ | 191 | $ | 186 | $ | 176 | $ | 170 | $ | 166 |
Dispositions_and_Acquisitions_
Dispositions and Acquisitions (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Business Combinations [Abstract] | |||||||||||
Summary of Discontinued Operations | Summary of Discontinued Operations | ||||||||||
Discontinued operations primarily reflects the Company's former Time Inc. segment. In addition, during 2013, the Company recognized additional net tax benefits of $137 million associated with certain foreign tax attributes of the Warner Music Group, which the Company disposed of in 2004. | |||||||||||
Discontinued operations for the years ended December 31, 2014, 2013 and 2012 is as follows (millions, except per share amounts): | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Total revenues | $ | 1,415 | $ | 3,334 | $ | 3,404 | |||||
Pretax income (loss) | -98 | 335 | 415 | ||||||||
Income tax benefit (provision) | 31 | 2 | -156 | ||||||||
Net income (loss) | $ | -67 | $ | 337 | $ | 259 | |||||
Net income (loss) attributable to Time Warner Inc. shareholders | $ | -67 | $ | 337 | $ | 259 | |||||
Per share information attributable to Time Warner Inc. | |||||||||||
common shareholders: | |||||||||||
Basic net income (loss) per common share | $ | -0.07 | $ | 0.36 | $ | 0.28 | |||||
Average common shares outstanding — basic | 863.3 | 920 | 954.4 | ||||||||
Diluted net income (loss) per common share | $ | -0.07 | $ | 0.36 | $ | 0.27 | |||||
Average common shares outstanding — diluted | 882.6 | 942.6 | 976.3 |
Investments_Tables
Investments (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Investments [Abstract] | |||||||||||
Investments by Category | Time Warner's investments, by category, consist of (millions): | ||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
(recast) | |||||||||||
Equity-method investments | $ | 898 | $ | 936 | |||||||
Fair-value and other investments: | |||||||||||
Deferred compensation investments, recorded at fair value | 195 | 248 | |||||||||
Deferred compensation insurance-related investments, recorded at cash | |||||||||||
surrender value | 410 | 397 | |||||||||
Available-for-sale securities | 79 | 96 | |||||||||
Equity Warrants | 242 | - | |||||||||
Total fair-value and other investments | 926 | 741 | |||||||||
Held-to-maturity securities | 239 | - | |||||||||
Cost-method investments | 263 | 332 | |||||||||
Total | $ | 2,326 | $ | 2,009 | |||||||
Available-for-sale Securities | The cost basis, unrealized gains and fair market value of available-for-sale securities are set forth below (millions): | ||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
(recast) | |||||||||||
Cost basis | $ | 59 | $ | 53 | |||||||
Gross unrealized gain | 22 | 46 | |||||||||
Gross unrealized loss | -2 | -3 | |||||||||
Fair value | $ | 79 | $ | 96 | |||||||
Investment Writedowns | For the years ended December 31, 2014, 2013 and 2012, the Company incurred writedowns to reduce the carrying value of certain investments that experienced other-than-temporary impairments, as set forth below (millions): | ||||||||||
December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Equity-method investments | $ | 21 | $ | 5 | $ | 25 | |||||
Cost-method investments | 8 | 5 | 14 | ||||||||
Available-for-sale securities | 6 | 7 | 7 | ||||||||
Total | $ | 35 | $ | 17 | $ | 46 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||
Fair Value Measurement Inputs | The following table presents information about assets and liabilities required to be carried at fair value on a recurring basis as of December 31, 2014 and December 31, 2013, respectively (millions): | |||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
(recast) | ||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Trading securities: | ||||||||||||||||||||||||||
Diversified equity securities(a) | $ | 232 | $ | 5 | $ | - | $ | 237 | $ | 254 | $ | 5 | $ | - | $ | 259 | ||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||
Equity securities | 19 | - | - | 19 | 56 | - | - | 56 | ||||||||||||||||||
Debt securities | - | 60 | - | 60 | - | 40 | - | 40 | ||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||
Foreign exchange contracts | - | 61 | - | 61 | - | 10 | - | 10 | ||||||||||||||||||
Other | - | - | 247 | 247 | 6 | - | 8 | 14 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||
Foreign exchange contracts | - | -3 | - | -3 | - | -17 | - | -17 | ||||||||||||||||||
Other | - | - | -6 | -6 | - | - | -7 | -7 | ||||||||||||||||||
Total | $ | 251 | $ | 123 | $ | 241 | $ | 615 | $ | 316 | $ | 38 | $ | 1 | $ | 355 | ||||||||||
__________ | ||||||||||||||||||||||||||
(a) Consists of investments related to deferred compensation. | ||||||||||||||||||||||||||
Level 3 Asset and Liability Reconciliation | The following table reconciles the beginning and ending balances of net derivative assets and liabilities classified as Level 3 and identifies the total gains (losses) the Company recognized during the year ended December 31, 2014 and 2013 on such assets and liabilities that were included in the Consolidated Balance Sheet as of December 31, 2014 and 2013 (millions): | |||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||
Balance as of the beginning of the period | $ | 1 | $ | 7 | ||||||||||||||||||||||
Total gains (losses), net: | ||||||||||||||||||||||||||
Included in operating income | - | -1 | ||||||||||||||||||||||||
Included in other loss, net | 31 | 12 | ||||||||||||||||||||||||
Included in other comprehensive income (loss) | - | - | ||||||||||||||||||||||||
Purchases | 213 | - | ||||||||||||||||||||||||
Settlements | -20 | -15 | ||||||||||||||||||||||||
Issuances | 16 | -2 | ||||||||||||||||||||||||
Transfers in and/or out of Level 3 | - | - | ||||||||||||||||||||||||
Balance as of the end of the period | $ | 241 | $ | 1 | ||||||||||||||||||||||
Net gain for the period included in net income related to assets and liabilities | ||||||||||||||||||||||||||
still held as of the end of the period | $ | 32 | $ | 9 | ||||||||||||||||||||||
Carrying Value Fair Value, by investment | Information about the Company's investments in CME that are not required to be carried at fair value on a recurring basis is as follows (millions): | |||||||||||||||||||||||||
Carrying Value | Fair Value | Fair Value Hierarchy | ||||||||||||||||||||||||
Class A common stock(a) | $ | 0 | $ | 233 | Level 1 | |||||||||||||||||||||
Series B convertible redeemable preferred shares | 148 | 297 | Level 2 | |||||||||||||||||||||||
Senior secured notes | 239 | 408 | Level 2 | |||||||||||||||||||||||
__________ | ||||||||||||||||||||||||||
(a) Includes one share of Series A convertible preferred stock. | ||||||||||||||||||||||||||
Fair Value Measurements, Nonrecurring | The following table presents certain theatrical film and television production costs, which were recorded as inventory in the Consolidated Balance Sheet, that were written down to fair value (millions): | |||||||||||||||||||||||||
Carrying value before write down | Carrying value after write down | |||||||||||||||||||||||||
Fair value measurements made during the year ended December 31,: | ||||||||||||||||||||||||||
2014 | $ | 331 | $ | 201 | ||||||||||||||||||||||
2013 | 289 | 206 |
Inventories_and_Theatrical_Fil1
Inventories and Theatrical Film and Television Production Costs (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories and Theatrical Film and Television Production Costs | Inventories and theatrical film and television production costs consist of (millions): | |||||||
31-Dec-14 | 31-Dec-13 | |||||||
(recast) | ||||||||
Inventories: | ||||||||
Programming costs, less amortization | $ | 3,251 | $ | 3,416 | ||||
Other inventory, primarily DVDs and Blu-ray Discs | 228 | 269 | ||||||
Total inventories | 3,479 | 3,685 | ||||||
Less: current portion of inventory | -1,700 | -1,648 | ||||||
Total noncurrent inventories | 1,779 | 2,037 | ||||||
Theatrical film production costs:(a) | ||||||||
Released, less amortization | 641 | 660 | ||||||
Completed and not released | 379 | 246 | ||||||
In production | 1,266 | 1,480 | ||||||
Development and pre-production | 105 | 107 | ||||||
Television production costs:(a) | ||||||||
Released, less amortization | 1,251 | 1,249 | ||||||
Completed and not released | 521 | 536 | ||||||
In production | 889 | 694 | ||||||
Development and pre-production | 10 | 7 | ||||||
Total theatrical film and television production costs | 5,062 | 4,979 | ||||||
Total noncurrent inventories and theatrical film and television production costs | $ | 6,841 | $ | 7,016 | ||||
_____________ | ||||||||
(a) Does not include $797 million and $958 million of acquired film library intangible assets as of December 31, 2014 and December 31, 2013, respectively, which are included in Intangible assets subject to amortization, net in the Consolidated Balance Sheet. |
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following is a summary of amounts recorded in the Consolidated Balance Sheet pertaining to Time Warner's use of foreign currency derivatives at December 31, 2014 and December 31, 2013 (millions): | |||||||
December 31, 2014(a) | December 31, 2013(b) | |||||||
Prepaid expenses and other current assets | $ | 61 | $ | 10 | ||||
Accounts payable and accrued liabilities | -3 | -17 | ||||||
___________ | ||||||||
(a) Includes $139 million ($92 million of qualifying hedges and $47 million of economic hedges) and $81 million ($65 million of qualifying hedges and $16 million of economic hedges) of foreign exchange derivative contracts in asset and liability positions, respectively. | ||||||||
(b) Includes $77 million ($64 million of qualifying hedges and $13 million of economic hedges) and $84 million ($53 million of qualifying hedges and $31 million of economic hedges) of foreign exchange derivative contracts in asset and liability positions, respectively. | ||||||||
Long_Term_Debt_and_Other_Finan1
Long Term Debt and Other Financing Arrangements (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||
Schedule of Long-term Debt Instruments | The principal amounts of long-term debt adjusted for premiums and discounts consist of (millions): | |||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(recast) | ||||||||||||||||||||
Fixed-rate public debt | $ | 21,920 | $ | 19,905 | ||||||||||||||||
Other obligations | 574 | 222 | ||||||||||||||||||
Subtotal | 22,494 | 20,127 | ||||||||||||||||||
Debt due within one year | -1,118 | -66 | ||||||||||||||||||
Total long-term debt | $ | 21,376 | $ | 20,061 | ||||||||||||||||
Schedule of Future Minimum Lease Payments for Capital Leases | Future minimum capital lease payments at December 31, 2014 are as follows (millions): | |||||||||||||||||||
2015 | $ | 13 | ||||||||||||||||||
2016 | 11 | |||||||||||||||||||
2017 | 9 | |||||||||||||||||||
2018 | 9 | |||||||||||||||||||
2019 | 8 | |||||||||||||||||||
Thereafter | 12 | |||||||||||||||||||
Total | 62 | |||||||||||||||||||
Amount representing interest | -10 | |||||||||||||||||||
Present value of minimum lease payments | 52 | |||||||||||||||||||
Current portion | -10 | |||||||||||||||||||
Total long-term portion | $ | 42 | ||||||||||||||||||
Schedule of Maturities of Long-term Debt | The Company's public debt matures as follows (millions): | |||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | |||||||||||||||
Debt | $ | 1,000 | $ | 1,150 | $ | 500 | $ | 600 | $ | 650 | $ | 18,131 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Tax Disclosure [Abstract] | |||||||||||
Schedule of Income before Income Tax, Domestic and Foreign | Domestic and foreign income before income taxes and discontinued operations are as follows (millions): | ||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Domestic | $ | 4,296 | $ | 4,836 | $ | 4,097 | |||||
Foreign | 383 | 132 | -64 | ||||||||
Total | $ | 4,679 | $ | 4,968 | $ | 4,033 | |||||
Schedule of Components of Income Tax Expense (Benefit) | Current and Deferred income taxes (tax benefits) provided on Income from continuing operations are as follows (millions): | ||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Federal: | |||||||||||
Current | $ | 128 | $ | 494 | $ | 1,066 | |||||
Deferred | 152 | 802 | -147 | ||||||||
Foreign: | |||||||||||
Current(a) | 466 | 348 | 350 | ||||||||
Deferred | - | -21 | 6 | ||||||||
State and Local: | |||||||||||
Current | 25 | 13 | 115 | ||||||||
Deferred | 14 | -22 | -20 | ||||||||
Total(b) | $ | 785 | $ | 1,614 | $ | 1,370 | |||||
____________ | |||||||||||
(a) Includes foreign withholding taxes of $279 million in 2014, $273 million in 2013 and $244 million in 2012. | |||||||||||
(b) Excludes excess tax benefits from equity awards allocated directly to contributed capital of $179 million in 2014, $179 million in 2013 and $83 million in 2012. | |||||||||||
Schedule of Effective Income Tax Rate Reconciliation | The differences between income taxes expected at the U.S. federal statutory income tax rate of 35% and income taxes provided are as set forth below (millions): | ||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Taxes on income at U.S. federal statutory rate | $ | 1,638 | $ | 1,739 | $ | 1,412 | |||||
State and local taxes, net of federal tax effects | 64 | 72 | 43 | ||||||||
Domestic production activities deduction……………………………… | -114 | -133 | -152 | ||||||||
Federal Tax Settlement | -687 | - | - | ||||||||
Valuation Allowances | -226 | 3 | -6 | ||||||||
Other | 110 | -67 | 73 | ||||||||
Total | $ | 785 | $ | 1,614 | $ | 1,370 | |||||
Schedule of Deferred Tax Assets and Liabilities | Significant components of Time Warner's net deferred tax liabilities are as follows (millions): | ||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
(recast) | |||||||||||
Deferred tax assets: | |||||||||||
Tax attribute carryforwards(a) | $ | 305 | $ | 999 | |||||||
Receivable allowances and return reserves | 168 | 199 | |||||||||
Royalties, participations and residuals | 429 | 444 | |||||||||
Investments | 62 | 180 | |||||||||
Equity-based compensation | 218 | 239 | |||||||||
Amortization | 231 | 184 | |||||||||
Other | 1,345 | 1,169 | |||||||||
Valuation allowances(a) | -275 | -504 | |||||||||
Total deferred tax assets | $ | 2,483 | $ | 2,910 | |||||||
Deferred tax liabilities: | |||||||||||
Assets acquired in business combinations | $ | 2,874 | $ | 2,939 | |||||||
Unbilled television receivables | 998 | 933 | |||||||||
Unremitted earnings of foreign subsidiaries | 41 | 241 | |||||||||
Depreciation | 264 | 220 | |||||||||
Other | 326 | 495 | |||||||||
Total deferred tax liabilities | 4,503 | 4,828 | |||||||||
Net deferred tax liability | $ | 2,020 | $ | 1,918 | |||||||
_____________ | |||||||||||
(a) The Company has recorded valuation allowances for certain tax attribute carryforwards and other deferred tax assets due to uncertainty that exists regarding future realizability. The tax attribute carryforwards consist of $21 million of tax credits, $58 million of capital losses and $226 million of net operating losses that expire in varying amounts from 2015 through 2034. If, in the future, the Company believes that it is more likely than not that these deferred tax benefits will be realized, the majority of the valuation allowances will be recognized in the Consolidated Statement of Operations. | |||||||||||
Summary of Income Tax Contingencies | Changes in the Company's uncertain income tax positions, excluding the related accrual for interest and penalties, from January 1 through December 31 are set forth below (millions): | ||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Beginning balance | $ | 2,169 | $ | 2,203 | $ | 2,106 | |||||
Additions for prior year tax positions | 87 | 124 | 97 | ||||||||
Additions for current year tax positions | 69 | 76 | 94 | ||||||||
Reductions for prior year tax positions | -968 | -140 | -60 | ||||||||
Settlements | -8 | -84 | -26 | ||||||||
Lapses in statute of limitations | -22 | -10 | -8 | ||||||||
Ending balance | $ | 1,327 | $ | 2,169 | $ | 2,203 |
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Equity [Abstract] | |||||||||||
Schedule of Treasury Stock by Class | For the years ended December 31, 2014, 2013 and 2012, the number of shares repurchased pursuant to trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, and their cost are as follows (millions): | ||||||||||
Shares Repurchased | Cost of Shares | ||||||||||
2014 | 77 | $ | 5,500 | ||||||||
2013 | 60 | $ | 3,700 | ||||||||
2012 | 80 | $ | 3,302 | ||||||||
Schedule of Comprehensive Income (Loss) | The following summary sets forth the activity within Other comprehensive income (loss) (millions): | ||||||||||
Year Ended December 31, 2012 | Pretax | Tax (provision) benefit | Net of tax | ||||||||
Unrealized gains on foreign currency translation | $ | 59 | $ | -8 | $ | 51 | |||||
Reclassification adjustment for losses on foreign currency translation realized in | |||||||||||
net income(a) | 10 | - | 10 | ||||||||
Unrealized gains on securities | 1 | - | 1 | ||||||||
Unrealized losses on benefit obligation | -312 | 106 | -206 | ||||||||
Reclassification adjustment for losses on benefit obligation realized in | |||||||||||
net income(b) | 28 | -10 | 18 | ||||||||
Unrealized gains on derivative financial instruments | 5 | -2 | 3 | ||||||||
Reclassification adjustment for derivative financial instrument gains realized | |||||||||||
in net income(c) | -2 | 1 | -1 | ||||||||
Other comprehensive loss | $ | -211 | $ | 87 | $ | -124 | |||||
Year Ended December 31, 2013 | |||||||||||
Unrealized losses on foreign currency translation | $ | -38 | $ | 16 | $ | -22 | |||||
Reclassification adjustment for gains on foreign currency translation realized in | |||||||||||
net income(a) | -9 | 3 | -6 | ||||||||
Unrealized gains on securities | 22 | -9 | 13 | ||||||||
Unrealized gains on benefit obligation | 203 | -79 | 124 | ||||||||
Reclassification adjustment for losses on benefit obligation realized in | |||||||||||
net income(b) | 33 | -11 | 22 | ||||||||
Unrealized gains on derivative financial instruments | 45 | -18 | 27 | ||||||||
Reclassification adjustment for derivative financial instrument gains realized | |||||||||||
in net income(c) | -35 | 14 | -21 | ||||||||
Other comprehensive income | $ | 221 | $ | -84 | $ | 137 | |||||
Year Ended December 31, 2014 | |||||||||||
Unrealized losses on foreign currency translation | $ | -243 | $ | 15 | $ | -228 | |||||
Unrealized losses on securities | -6 | 2 | -4 | ||||||||
Reclassification adjustment for gains on securities realized in net income(a) | -16 | 6 | -10 | ||||||||
Unrealized losses on benefit obligation | -282 | 95 | -187 | ||||||||
Reclassification adjustment for losses on benefit obligation realized in | |||||||||||
net income(b) | 30 | -11 | 19 | ||||||||
Unrealized gains on derivative financial instruments | 13 | -5 | 8 | ||||||||
Reclassification adjustment for derivative financial instrument gains realized | |||||||||||
in net income(c) | -22 | 8 | -14 | ||||||||
Other comprehensive loss | $ | -526 | $ | 110 | $ | -416 | |||||
__________ | |||||||||||
(a) Pretax (gains) losses included in Other income (loss), net. | |||||||||||
(b) Pretax (gains) losses included in Selling, general and administrative expenses. | |||||||||||
(c) Pretax (gains) losses included in Selling, general and administrative expenses, Costs of revenues and Other income (loss), net are as follows (millions): | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Selling, general and administrative expenses | $ | -5 | $ | -5 | $ | -12 | |||||
Costs of revenues | -18 | -27 | 10 | ||||||||
Other loss, net | 1 | -3 | - | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | (c) Pretax (gains) losses included in Selling, general and administrative expenses, Costs of revenues and Other income (loss), net are as follows (millions): | ||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Selling, general and administrative expenses | $ | -5 | $ | -5 | $ | -12 | |||||
Costs of revenues | -18 | -27 | 10 | ||||||||
Other loss, net | 1 | -3 | - | ||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following summary sets forth the components of Accumulated other comprehensive loss, net of tax (millions): | ||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||
Foreign currency translation losses | $ | -299 | $ | -26 | |||||||
Net unrealized gains on securities | 12 | 26 | |||||||||
Net derivative financial instruments gains | 12 | 18 | |||||||||
Net unfunded/underfunded benefit obligation | -889 | -870 | |||||||||
Accumulated other comprehensive loss, net | $ | -1,164 | $ | -852 |
Income_Per_Common_Share_Tables
Income Per Common Share (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Earnings Per Share [Abstract] | |||||||||||
Income Per Common Share | Set forth below is a reconciliation of Basic and Diluted income per common share from continuing operations attributable to Time Warner Inc. common shareholders (millions, except per share amounts): | ||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Income from continuing operations attributable to Time Warner Inc. | |||||||||||
shareholders: | $ | 3,894 | $ | 3,354 | $ | 2,666 | |||||
Income allocated to participating securities | -14 | -16 | -18 | ||||||||
Income from continuing operations attributable to Time Warner Inc. | |||||||||||
common shareholders — basic | $ | 3,880 | $ | 3,338 | $ | 2,648 | |||||
Average basic common shares outstanding | 863.3 | 920 | 954.4 | ||||||||
Dilutive effect of equity awards | 19.3 | 22.6 | 21.9 | ||||||||
Average diluted common shares outstanding | 882.6 | 942.6 | 976.3 | ||||||||
Antidilutive common share equivalents excluded from computation | 1 | — | 25 | ||||||||
Income per common share from continuing operations attributable to | |||||||||||
Time Warner Inc. common shareholders: | |||||||||||
Basic | $ | 4.49 | $ | 3.63 | $ | 2.77 | |||||
Diluted | $ | 4.41 | $ | 3.56 | $ | 2.73 |
EquityBased_Compensation_Table
Equity-Based Compensation (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Assumptions Used to Value Option Grants | The table below summarizes the weighted-average assumptions used to value stock options at their grant date and the weighted-average grant date fair value per share: | |||||||||||||
Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Expected volatility | 26.60% | 29.60% | 31.20% | |||||||||||
Expected term to exercise from grant date | 5.85 years | 6.27 years | 6.50 years | |||||||||||
Risk-free rate | 1.90% | 1.30% | 1.30% | |||||||||||
Expected dividend yield | 1.70% | 2.10% | 2.80% | |||||||||||
Weighted average grant date fair value per option | $ | 16.94 | $ | 13.48 | $ | 8.69 | ||||||||
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes information about stock options outstanding as of December 31, 2014: | |||||||||||||
Number of Options | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Life | Aggregate Intrinsic Value | |||||||||||
(thousands) | (in years) | (thousands) | ||||||||||||
Outstanding as of December 31, 2013 | 36,493 | $ | 33.41 | |||||||||||
Granted | 3,129 | 76.96 | ||||||||||||
Exercised | -10,214 | 32.99 | ||||||||||||
Forfeited or expired | -947 | 43.75 | ||||||||||||
Adjustment due to the Time Separation(a) | 1,360 | |||||||||||||
Outstanding as of December 31, 2014(a) | 29,821 | 36.27 | 4.88 | $ | 1,470,001 | |||||||||
Exercisable as of December 31, 2014(a) | 22,454 | 30.22 | 3.83 | $ | 1,239,551 | |||||||||
____________ | ||||||||||||||
(a) The weighted-average exercise price of the stock options included in the line item “Adjustment due to the Time Separation” is equal to the weighted-average exercise price of the stock options at their grant date divided by a factor of approximately 1.04. The weighted-average exercise price of the stock options outstanding and exercisable as of December 31, 2014 reflect the Adjustment. | ||||||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Performance Stock Units Award Activity | The following table summarizes information about unvested RSUs and target PSUs as of December 31, 2014: | |||||||||||||
Number of Shares/Units | Weighted- Average Grant Date Fair Value | Aggregate Intrinsic Value | ||||||||||||
(thousands) | (thousands) | |||||||||||||
Unvested as of December 31, 2013 | 14,566 | $ | 40.31 | |||||||||||
Granted (a) | 2,960 | 66.44 | ||||||||||||
Vested | -5,882 | 34.82 | ||||||||||||
Forfeited | -1,035 | 42.96 | ||||||||||||
Adjustment due to the Time Separation(b) | 500 | |||||||||||||
Unvested as of December 31, 2014(b) | 11,109 | 48.68 | $ | 948,897 | ||||||||||
____________ | ||||||||||||||
(a) Includes 2.7 million RSUs and 0.2 million target PSUs granted during 2014 and a payout adjustment of 0.1 million PSUs due to the actual performance level achieved for PSUs granted in 2011 that vested during 2014. | ||||||||||||||
(b) The weighted-average grant date fair value of the RSUs and target PSUs included in the line item "Adjustment due to the Time Separation" is equal to the weighted-average grant date fair value of the awards at their respective grant date divided by a factor of approximately 1.04. The weighted-average grant date fair value of the unvested RSUs and target PSUs as of December 31, 2014 reflect the Adjustment. | ||||||||||||||
Schedule of Share-based Compensation, Stock Options Exercised | The following table summarizes information about stock options exercised (millions): | |||||||||||||
Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Total intrinsic value | $ | 402 | $ | 491 | $ | 342 | ||||||||
Cash received | 338 | 674 | 1,107 | |||||||||||
Tax benefits realized | 143 | 178 | 127 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, RSUs and Target PSUs, Grants in Period, Weighted Average Grant Date Fair Value | The following table sets forth the weighted-average grant date fair value of RSUs and target PSUs. For certain PSUs, the service inception date precedes the grant date and requires the Company to apply mark-to-market accounting that is reflected in the grant date fair values presented: | |||||||||||||
Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
RSUs | $ | 65.56 | $ | 54.04 | $ | 37.52 | ||||||||
PSUs | 93.45 | 101.14 | 85.42 | |||||||||||
Schedule of Share-based Compensation Arrangement by Share Based Payment Award, Performance Based Units and Restricted Stock Units, Vested | The following table sets forth the total intrinsic value of RSUs and target PSUs that vested during the following years (millions): | |||||||||||||
Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
RSUs | $ | 366 | $ | 291 | $ | 177 | ||||||||
PSUs | 17 | 27 | 11 | |||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The impact on Operating income for equity-based compensation awards is as follows (millions): | |||||||||||||
Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
(recast) | (recast) | |||||||||||||
Stock options | $ | 26 | $ | 33 | $ | 45 | ||||||||
RSUs and PSUs | 193 | 205 | 150 | |||||||||||
Total impact on operating income | $ | 219 | $ | 238 | $ | 195 | ||||||||
Tax benefit recognized | $ | 76 | $ | 78 | $ | 66 |
Benefit_Plans_Tables
Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||
Schedule of Accumulated and Projected Benefit Obligations | Benefit Obligation (millions) | |||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
(recast) | ||||||||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||||
Projected benefit obligation, beginning of year | $ | 3,311 | $ | 3,615 | ||||||||||||||||||||||
Service cost | 3 | 3 | ||||||||||||||||||||||||
Interest cost | 153 | 143 | ||||||||||||||||||||||||
Actuarial loss (gain) | 484 | -307 | ||||||||||||||||||||||||
Benefits paid | -192 | -153 | ||||||||||||||||||||||||
Curtailments/Special termination benefit | -8 | - | ||||||||||||||||||||||||
Transfer out due to the Time Separation | -29 | - | ||||||||||||||||||||||||
Foreign currency exchange rates | -28 | 10 | ||||||||||||||||||||||||
Projected benefit obligation, end of year | $ | 3,694 | $ | 3,311 | ||||||||||||||||||||||
Accumulated benefit obligation, end of year | $ | 3,660 | $ | 3,280 | ||||||||||||||||||||||
Schedule of Changes in Fair Value of Plan Assets | Plan Assets (millions) | |||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
(recast) | ||||||||||||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||||
Fair value of plan assets, beginning of year | $ | 2,766 | $ | 2,808 | ||||||||||||||||||||||
Actual return on plan assets | 333 | 46 | ||||||||||||||||||||||||
Employer contributions | 51 | 51 | ||||||||||||||||||||||||
Benefits paid | -192 | -153 | ||||||||||||||||||||||||
Foreign currency exchange rates | -26 | 14 | ||||||||||||||||||||||||
Fair value of plan assets, end of year | $ | 2,932 | $ | 2,766 | ||||||||||||||||||||||
Schedule of Net Benefit Costs | Components of Net Periodic Benefit Costs from Continuing Operations (millions) | |||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
(recast) | (recast) | |||||||||||||||||||||||||
Service cost | $ | 3 | $ | 3 | $ | 3 | ||||||||||||||||||||
Interest cost | 91 | 79 | 84 | |||||||||||||||||||||||
Expected return on plan assets | -95 | -85 | -82 | |||||||||||||||||||||||
Amortization of prior service cost | 1 | 1 | 1 | |||||||||||||||||||||||
Amortization of net loss | 14 | 16 | 12 | |||||||||||||||||||||||
Net periodic benefit costs | $ | 14 | $ | 14 | $ | 18 | ||||||||||||||||||||
Schedule of Assumptions Used | Assumptions | |||||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations and net periodic benefit costs for the years ended December 31: | ||||||||||||||||||||||||||
Benefit Obligations | Net Periodic Benefit Costs | |||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||
(recast) | (recast) | (recast) | (recast) | |||||||||||||||||||||||
Discount rate | 4.10% | 4.90% | 4.06% | 4.89% | 4.07% | 4.89% | ||||||||||||||||||||
Rate of compensation increase | 5.34% | 5.60% | 4.59% | 5.59% | 3.98% | 4.66% | ||||||||||||||||||||
Expected long-term return on | ||||||||||||||||||||||||||
plan assets | n/a | n/a | n/a | 6.01% | 5.95% | 6.14% | ||||||||||||||||||||
Schedule of Allocation of Plan Assets | Fair Value of Plan Assets | |||||||||||||||||||||||||
The following table sets forth by level, within the fair value hierarchy described in Note 5, the assets held by the Company's defined benefit pension plans, including those assets related to The CW sub-plan, which were approximately $20 million and $18 million, respectively, as of December 31, 2014 and December 31, 2013 (millions): | ||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
(recast) | ||||||||||||||||||||||||||
Cash and cash equivalents(a) | $ | 133 | $ | - | $ | - | $ | 133 | $ | 155 | $ | - | $ | - | $ | 155 | ||||||||||
Insurance contracts | - | 14 | - | 14 | - | 7 | - | 7 | ||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||
Domestic equities | 157 | - | - | 157 | 204 | - | - | 204 | ||||||||||||||||||
International equities | 8 | - | - | 8 | 56 | - | - | 56 | ||||||||||||||||||
Fixed income securities: | ||||||||||||||||||||||||||
U.S. government and | ||||||||||||||||||||||||||
agency securities(a) | 259 | 70 | - | 329 | 239 | 19 | - | 258 | ||||||||||||||||||
Non-U.S. government and | ||||||||||||||||||||||||||
agency securities | 112 | - | - | 112 | 61 | - | - | 61 | ||||||||||||||||||
Municipal bonds | - | 23 | - | 23 | - | 23 | - | 23 | ||||||||||||||||||
Investment grade | ||||||||||||||||||||||||||
corporate bonds(b) | - | 1,187 | - | 1,187 | - | 1,048 | - | 1,048 | ||||||||||||||||||
Non-investment grade | ||||||||||||||||||||||||||
corporate bonds(b) | - | 20 | - | 20 | - | 23 | - | 23 | ||||||||||||||||||
Other investments: | ||||||||||||||||||||||||||
Pooled investments(c) | - | 400 | - | 400 | - | 457 | - | 457 | ||||||||||||||||||
Commingled trust funds(a) | - | 486 | - | 486 | - | 391 | - | 391 | ||||||||||||||||||
Hedge funds | - | - | 30 | 30 | - | - | 36 | 36 | ||||||||||||||||||
Other (d) | 30 | 2 | 77 | 109 | 15 | 10 | 40 | 65 | ||||||||||||||||||
Total(e) | $ | 699 | $ | 2,202 | $ | 107 | $ | 3,008 | $ | 730 | $ | 1,978 | $ | 76 | $ | 2,784 | ||||||||||
___________ | ||||||||||||||||||||||||||
(a) As of December 31, 2014, cash and cash equivalents include $10 million of cash collateral for securities on loan and U.S. government and agency securities include $70 million of securities collateral for securities on loan. As of December 31, 2013, commingled trust funds included $11 million of cash collateral for securities on loan, and U.S. government and agency securities included $5 million of securities collateral for securities on loan. | ||||||||||||||||||||||||||
(b) Investment grade corporate bonds have an S&P rating of BBB- or higher and non-investment grade corporate bonds have an S&P rating of BB+ or below. | ||||||||||||||||||||||||||
(c) Pooled investments primarily consist of interests in unitized investment pools of which underlying securities primarily consist of equity and fixed income securities. | ||||||||||||||||||||||||||
(d) Other investments primarily include limited partnerships, 103-12 investments, derivative contracts, exchange-traded funds and mutual funds. | ||||||||||||||||||||||||||
(e) At December 31, 2014 and December 31, 2013, total assets include $78 million and $15 million, respectively, of securities on loan. | ||||||||||||||||||||||||||
The table below sets forth a summary of changes in the fair value of the defined benefit pension plans' Level 3 assets for the years ended December 31, 2014 and December 31, 2013 (millions): | ||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||
Hedge Funds | Other | Total | Hedge Funds | Other | Total | |||||||||||||||||||||
Balance at beginning of period | $ | 36 | $ | 40 | $ | 76 | $ | 63 | $ | 41 | $ | 104 | ||||||||||||||
Actual return on plan assets and | ||||||||||||||||||||||||||
liabilities: | ||||||||||||||||||||||||||
Relating to securities still held at | ||||||||||||||||||||||||||
end of period | - | 31 | 31 | -5 | 1 | -4 | ||||||||||||||||||||
Relating to securities disposed | ||||||||||||||||||||||||||
of during the period | 1 | 6 | 7 | 10 | 4 | 14 | ||||||||||||||||||||
Purchases | 1 | 9 | 10 | 1 | 9 | 10 | ||||||||||||||||||||
Sales | -8 | -15 | -23 | -33 | -15 | -48 | ||||||||||||||||||||
Settlements | - | -2 | -2 | - | - | - | ||||||||||||||||||||
Transfers in and/or out of Level 3 | - | 8 | 8 | - | - | - | ||||||||||||||||||||
Balance at end of period | $ | 30 | $ | 77 | $ | 107 | $ | 36 | $ | 40 | $ | 76 | ||||||||||||||
Schedule of Expected Benefit Payments | Information about the expected benefit payments for the Company's defined benefit plans is as follows (millions): | |||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020-2024 | |||||||||||||||||||||
Expected benefit payments | $ | 188 | $ | 195 | $ | 197 | $ | 196 | $ | 191 | $ | 992 |
Restructuring_and_Severance_Co1
Restructuring and Severance Costs (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||
Schedule of Restructuring and Severance Costs | Restructuring and severance costs expensed as incurred for the years ended December 31, 2014, 2013 and 2012 are as follows (millions): | ||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Turner | $ | 249 | $ | 93 | $ | 52 | |||||
Home Box Office | 63 | 39 | 15 | ||||||||
Warner Bros. | 169 | 49 | 23 | ||||||||
Corporate | 31 | 2 | 2 | ||||||||
Total restructuring and severance costs | $ | 512 | $ | 183 | $ | 92 | |||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
2014 activity | $ | 506 | $ | - | $ | - | |||||
2013 activity | 4 | 173 | - | ||||||||
2012 and prior activity | 2 | 10 | 92 | ||||||||
Total restructuring and severance costs | $ | 512 | $ | 183 | $ | 92 | |||||
Selected Information | Selected information relating to accrued restructuring and severance costs is as follows (millions): | ||||||||||
Employee Terminations | Other Exit Costs | Total | |||||||||
Remaining liability as of December 31, 2011 (recast) | $ | 84 | $ | 8 | $ | 92 | |||||
Net accruals | 84 | 8 | 92 | ||||||||
Noncash reductions(a) | -1 | - | -1 | ||||||||
Cash paid | -74 | -10 | -84 | ||||||||
Remaining liability as of December 31, 2012 (recast) | 93 | 6 | 99 | ||||||||
Net accruals | 174 | 9 | 183 | ||||||||
Noncash reductions(a) | -1 | - | -1 | ||||||||
Cash paid | -86 | -9 | -95 | ||||||||
Remaining liability as of December 31, 2013 (recast) | 180 | 6 | 186 | ||||||||
Net accruals | 499 | 13 | 512 | ||||||||
Noncash reductions(a) | -3 | - | -3 | ||||||||
Cash paid | -151 | -10 | -161 | ||||||||
Remaining liability as of December 31, 2014 | $ | 525 | $ | 9 | $ | 534 | |||||
____________ | |||||||||||
(a) Noncash reductions relate to the settlement of certain employee-related liabilities with equity instruments. |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Segment Reporting [Abstract] | |||||||||||
Schedule of Segment Reporting Information, by Segment | Information as to the Revenues, intersegment revenues, depreciation of property, plant, and equipment, Amortization of intangible assets, Operating Income (Loss), Assets and Capital expenditures for each of Time Warner's reportable segments is set forth below (millions): | ||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Revenues | |||||||||||
Turner | $ | 10,396 | $ | 9,983 | $ | 9,527 | |||||
Home Box Office | 5,398 | 4,890 | 4,686 | ||||||||
Warner Bros. | 12,526 | 12,312 | 12,018 | ||||||||
Intersegment eliminations | -961 | -724 | -906 | ||||||||
Total revenues | $ | 27,359 | $ | 26,461 | $ | 25,325 | |||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Intersegment Revenues | |||||||||||
Turner | $ | 101 | $ | 85 | $ | 80 | |||||
Home Box Office | 36 | 14 | 14 | ||||||||
Warner Bros. | 824 | 625 | 812 | ||||||||
Total intersegment revenues | $ | 961 | $ | 724 | $ | 906 | |||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Supplemental Revenue Data | |||||||||||
Subscription | $ | 9,945 | $ | 9,250 | $ | 8,787 | |||||
Advertising | 4,502 | 4,530 | 4,316 | ||||||||
Content | 12,350 | 12,154 | 11,741 | ||||||||
Other | 562 | 527 | 481 | ||||||||
Total revenues | $ | 27,359 | $ | 26,461 | $ | 25,325 | |||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Depreciation of Property, Plant and Equipment | |||||||||||
Turner | $ | -209 | $ | -231 | $ | -238 | |||||
Home Box Office | -77 | -91 | -85 | ||||||||
Warner Bros. | -218 | -200 | -202 | ||||||||
Corporate | -27 | -28 | -28 | ||||||||
Total depreciation of property, plant and equipment | $ | -531 | $ | -550 | $ | -553 | |||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Amortization of Intangible Assets | |||||||||||
Turner | $ | -16 | $ | -21 | $ | -25 | |||||
Home Box Office | -14 | -9 | -7 | ||||||||
Warner Bros. | -172 | -179 | -180 | ||||||||
Total amortization of intangible assets | $ | -202 | $ | -209 | $ | -212 | |||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Operating Income (Loss) | |||||||||||
Turner | $ | 2,954 | $ | 3,486 | $ | 3,172 | |||||
Home Box Office | 1,786 | 1,791 | 1,547 | ||||||||
Warner Bros. | 1,159 | 1,324 | 1,228 | ||||||||
Corporate | -73 | -394 | -352 | ||||||||
Intersegment eliminations | 149 | 61 | -97 | ||||||||
Total operating income | $ | 5,975 | $ | 6,268 | $ | 5,498 | |||||
31-Dec-14 | 31-Dec-13 | ||||||||||
(recast) | |||||||||||
Assets | |||||||||||
Turner | $ | 25,271 | $ | 26,067 | |||||||
Home Box Office | 13,869 | 13,687 | |||||||||
Warner Bros. | 20,559 | 20,066 | |||||||||
Corporate | 3,560 | 2,433 | |||||||||
Assets of discontinued operations | - | 5,746 | |||||||||
Total assets | $ | 63,259 | $ | 67,999 | |||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Capital Expenditures | |||||||||||
Turner | $ | 173 | $ | 210 | $ | 229 | |||||
Home Box Office | 58 | 45 | 65 | ||||||||
Warner Bros. | 206 | 236 | 270 | ||||||||
Corporate | 37 | 77 | 45 | ||||||||
Total capital expenditures | $ | 474 | $ | 568 | $ | 609 | |||||
Revenues by Geographic Area | Revenues in different geographical areas are as follows (millions) | ||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Revenues(a) | |||||||||||
United States and Canada | $ | 19,102 | $ | 18,642 | $ | 17,936 | |||||
Europe(b) | 4,684 | 4,494 | 4,250 | ||||||||
Asia/Pacific Rim | 1,711 | 1,629 | 1,605 | ||||||||
Latin America | 1,575 | 1,475 | 1,288 | ||||||||
All Other | 287 | 221 | 246 | ||||||||
Total revenues | $ | 27,359 | $ | 26,461 | $ | 25,325 | |||||
____________ | |||||||||||
(a) Revenues are attributed to region based on location of customer. | |||||||||||
(b) Revenues in EuroZone countries comprise approximately 48%, 48% and 49% of Revenues in Europe for the years ended 2014, 2013 and 2012, respectively. |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||
Contractual Obligation, Fiscal Year Maturity Schedule | The commitments under certain programming, film licensing, talent and other agreements (“Programming and Other”) and minimum rental commitments under noncancelable long-term operating leases (“Operating Leases”) payable during the next five years and thereafter are as follows (millions): | ||||||||||||||||
Programming and Other | Operating Leases | ||||||||||||||||
2015 | $ | 5,207 | $ | 317 | |||||||||||||
2016 | 3,660 | 309 | |||||||||||||||
2017 | 3,626 | 284 | |||||||||||||||
2018 | 3,379 | 259 | |||||||||||||||
2019 | 3,148 | 125 | |||||||||||||||
Thereafter | 14,557 | 186 | |||||||||||||||
Total | $ | 33,577 | $ | 1,480 | |||||||||||||
Contingent Commitments | |||||||||||||||||
Nature of Contingent Commitments | Total | 2015 | 2016-2017 | 2018-2019 | Thereafter | ||||||||||||
Guarantees | $ | 1,536 | $ | 131 | $ | 589 | $ | 85 | $ | 731 | |||||||
Letters of credit and other contingent | |||||||||||||||||
commitments | 817 | 37 | 201 | 12 | 567 | ||||||||||||
Total contingent commitments | $ | 2,353 | $ | 168 | $ | 790 | $ | 97 | $ | 1,298 | |||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Related Party Transactions [Abstract] | |||||||||||
Schedule of Related Party Transactions | Revenues and expenses resulting from transactions with related parties consist of (millions): | ||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Revenues | $ | 404 | $ | 464 | $ | 498 | |||||
Expenses | -8 | -35 | -60 | ||||||||
Interest income | 51 | - | - | ||||||||
Other, net | 16 | 8 | - |
Additional_Financial_Informati1
Additional Financial Information (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||||
Cash Flows | Additional financial information with respect to cash payments and receipts, Interest expense, net, Other loss, net, Accounts payable and accrued liabilities and Other noncurrent liabilities is as follows (millions): | ||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Cash Flows | |||||||||||
Cash payments made for interest | $ | -1,274 | $ | -1,202 | $ | -1,262 | |||||
Interest income received | 50 | 44 | 42 | ||||||||
Cash interest payments, net | $ | -1,224 | $ | -1,158 | $ | -1,220 | |||||
Cash payments made for income taxes | $ | -1,602 | $ | -1,174 | $ | -1,261 | |||||
Income tax refunds received | 108 | 87 | 78 | ||||||||
TWC tax sharing payments(a) | - | - | -6 | ||||||||
Cash tax payments, net | $ | -1,494 | $ | -1,087 | $ | -1,189 | |||||
___________ | |||||||||||
(a) Represents net amounts paid to TWC in accordance with a tax sharing agreement with TWC. | |||||||||||
Interest Expense, Net | Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Interest Expense, Net | |||||||||||
Interest income | $ | 184 | $ | 92 | $ | 107 | |||||
Interest expense | -1,353 | -1,281 | -1,358 | ||||||||
Total interest expense, net | $ | -1,169 | $ | -1,189 | $ | -1,251 | |||||
Other Income (Loss), Net | Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | |||||||||
(recast) | (recast) | ||||||||||
Other Loss, Net | |||||||||||
Investment gains (losses), net | $ | 30 | $ | 61 | $ | -30 | |||||
Loss on equity method investees | -153 | -150 | -180 | ||||||||
Other | -4 | -22 | -4 | ||||||||
Total other loss, net | $ | -127 | $ | -111 | $ | -214 | |||||
Accounts Payable and Accrued Liabilities | 31-Dec-14 | 31-Dec-13 | |||||||||
(recast) | |||||||||||
Accounts Payable and Accrued Liabilities | |||||||||||
Accounts payable | $ | 574 | $ | 505 | |||||||
Accrued expenses | 2,173 | 1,724 | |||||||||
Participations payable | 2,551 | 2,302 | |||||||||
Programming costs payable | 722 | 705 | |||||||||
Accrued compensation | 1,034 | 1,047 | |||||||||
Accrued interest | 303 | 313 | |||||||||
Accrued income taxes | 150 | 158 | |||||||||
Total accounts payable and accrued liabilities | $ | 7,507 | $ | 6,754 | |||||||
Other Noncurrent Liabilities | 31-Dec-14 | 31-Dec-13 | |||||||||
(recast) | |||||||||||
Other Noncurrent Liabilities | |||||||||||
Noncurrent tax and interest reserves | $ | 1,520 | $ | 2,540 | |||||||
Participations payable | 1,076 | 1,078 | |||||||||
Programming costs payable | 959 | 1,076 | |||||||||
Noncurrent pension and post-retirement liabilities | 928 | 696 | |||||||||
Deferred compensation | 491 | 542 | |||||||||
Other noncurrent liabilities | 710 | 392 | |||||||||
Total other noncurrent liabilities | $ | 5,684 | $ | 6,324 |
Description_of_Business_Basis_3
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
segments | ||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Number of Reportable Segments | 3 | |||
Cash And Equivalent Investment In Single Money Market Mutual Fund Bank Threshold | $500 | |||
Proceeds from Time Inc. in the Time Separation | 1,400 | 0 | 0 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Additions Charged (Credited) to Costs and Expenses | 1,847 | 2,094 | 1,911 | |
Balance at End of Period | 1,152 | 1,383 | 1,407 | 1,587 |
Sales Return Rate Change, Percent | 1.00% | |||
Sales Return Rate Change, Impact on Revenue | 44 | |||
Impairment AFS, six month criterion percent | 20.00% | |||
Impairment AFS, quarter end criterion percent | 50.00% | |||
Schedule of Equity Method Investments [Line Items] | ||||
Significant Influence Percent Of Flow Through Entity | 20.00% | |||
Property, Plant and Equipment [Line Items] | ||||
Land | 274 | 431 | ||
Buildings and improvements | 1,549 | 2,287 | ||
Capitalized software costs | 1,868 | 1,636 | ||
Furniture, fixtures and other equipment | 3,102 | 3,236 | ||
Property, plant and equipment, gross | 6,793 | 7,590 | ||
Accumulated depreciation | -4,138 | -4,299 | ||
Total | 2,655 | 3,291 | ||
Goodwill [Line Items] | ||||
Goodwill Impairment Analysis, fair value carrying value analysis | 30.00% | |||
Goodwill Impairment Analysis, Terminal Growth Rate | 3.25% | |||
Contract Receivables [Abstract] | ||||
Unbilled Contracts Receivable | 3,780 | 3,418 | ||
Unbilled Receivables, Not Billable, Amount Expected to be Collected in Next Twelve Months | 2,462 | |||
Film Cost Disclosures [Abstract] | ||||
Estimated period of ultimate revenues, from initial release or from delivery of first episode | 10 years | |||
Estimated period of ultimate revenues, from delivery of most recent episode | 5 years | |||
Film and TV production costs amortization | 4,229 | 3,873 | 4,092 | |
Pre-release theatrical film cost impairment | 86 | 51 | 92 | |
Unamortized computer software costs related to videogames | 277 | 243 | ||
Amortization of computer software costs related to videogames | 115 | 180 | 182 | |
Writedowns to net realizable value of certain videogame production costs | 51 | 53 | 7 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Collaborative Arrangement Income Statement Classifications And Amounts Cost of Revenue | 580 | 522 | 444 | |
Marketing and Advertising Expense [Abstract] | ||||
Advertising Expense | 2,430 | 2,447 | 2,314 | |
Multiple Foreign Currency Exchange Rates [Abstract] | ||||
Venezuelan foreign currency loss | 173 | 0 | 0 | |
Central Bank Venezuelan bolivar fuerte [Member] | ||||
Multiple Foreign Currency Exchange Rates [Abstract] | ||||
Foreign Currency Exchange Rate, Remeasurement | 6.3 | |||
SICAD 1 Venezuelan bolivar fuerte [Member] | ||||
Multiple Foreign Currency Exchange Rates [Abstract] | ||||
Foreign Currency Exchange Rate, Remeasurement | 12 | |||
SICAD 2 Venezuelan bolivar fuerte [Member] | ||||
Multiple Foreign Currency Exchange Rates [Abstract] | ||||
Foreign Currency Exchange Rate, Remeasurement | 50 | |||
Venezuelan foreign currency loss | 173 | |||
Goodwill Impairment Test [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Impairment Loss | 0 | 0 | 0 | |
Construction in progress [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Furniture, fixtures and other equipment | 223 | 327 | ||
Maximum [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment Significant Influence Percent | 50.00% | |||
Goodwill [Line Items] | ||||
Goodwill Impairment Analysis, Discount Rate | 9.50% | |||
Market Multiple | 12 | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Collaborative Arrangement Shortfall | 90 | |||
Maximum [Member] | Buildings and improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 30 years | |||
Maximum [Member] | Capitalized software costs [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 7 years | |||
Maximum [Member] | Furniture, fixtures and other equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 10 years | |||
Minimum [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment Significant Influence Percent | 20.00% | |||
Goodwill [Line Items] | ||||
Goodwill Impairment Analysis, Discount Rate | 9.00% | |||
Market Multiple | 9.5 | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Collaborative Arrangement Shortfall | 30 | |||
Minimum [Member] | Buildings and improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 7 years | |||
Minimum [Member] | Capitalized software costs [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Minimum [Member] | Furniture, fixtures and other equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Allowance for Doubtful Accounts [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Additions Charged (Credited) to Costs and Expenses | -20 | 28 | 37 | |
Balance at End of Period | 152 | 191 | 209 | 206 |
Reserves for sales returns and allowances [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Additions Charged (Credited) to Costs and Expenses | 1,867 | 2,066 | 1,874 | |
Balance at End of Period | $1,000 | $1,192 | $1,198 | $1,381 |
Description_of_Business_Basis_4
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies - Indefinite-Lived Intangible Assets (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Impaired Intangible Assets [Line Items] | |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $0 |
Intangible Assets Indefinite-Lived Impairment Analysis, fair value carrying value analysis | 30.00% |
Other Intangible Assets Impairment Analysis, Terminal Growth Rate | 3.25% |
Minimum [Member] | |
Impaired Intangible Assets [Line Items] | |
Other Intangible Assets Impairment Analysis, Discount Rate | 9.50% |
Maximum [Member] | |
Impaired Intangible Assets [Line Items] | |
Other Intangible Assets Impairment Analysis, Discount Rate | 10.00% |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Impaired Intangible Assets [Line Items] | |||
Impairment of Intangible Assets (Excluding Goodwill) | $18 | $19 | $80 |
Goodwill [Line Items] | |||
Goodwill | 27,565 | 27,401 | 27,296 |
Acquisitions, dispositions and adjustments | 202 | 120 | |
Translation adjustments | -38 | -15 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross | 4,142 | 4,138 | |
Accumulated Amortization | -3,001 | -2,800 | |
Net | 1,141 | 1,338 | |
Amortization of Intangible Assets | 202 | 209 | 212 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Estimated amortization expense - 2015 | 191 | ||
Estimated amortization expense - 2016 | 186 | ||
Estimated amortization expense - 2017 | 176 | ||
Estimated amortization expense - 2018 | 170 | ||
Estimated amortization expense - 2019 | 166 | ||
Film libraries [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross | 3,432 | 3,452 | |
Accumulated Amortization | -2,635 | -2,494 | |
Net | 797 | 958 | |
Finite-Lived Intangible Asset, Useful Life | 6 years | ||
Brands, tradenames and other intangible assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross | 710 | 686 | |
Accumulated Amortization | -366 | -306 | |
Net | 344 | 380 | |
Annual Goodwill Impairment Test [Member] | |||
Goodwill [Line Items] | |||
Goodwill impairments | 0 | 0 | 0 |
Turner [Member] | |||
Impaired Intangible Assets [Line Items] | |||
Impairment of Intangible Assets (Excluding Goodwill) | 1 | 18 | 79 |
Goodwill [Line Items] | |||
Goodwill | 13,956 | 13,980 | 13,991 |
Acquisitions, dispositions and adjustments | -6 | 7 | |
Translation adjustments | -18 | -18 | |
Accumulated impairments | 13,338 | 13,338 | 13,338 |
Home Box Office [Member] | |||
Impaired Intangible Assets [Line Items] | |||
Impairment of Intangible Assets (Excluding Goodwill) | 4 | 0 | 0 |
Goodwill [Line Items] | |||
Goodwill | 7,433 | 7,431 | 7,309 |
Acquisitions, dispositions and adjustments | 2 | 122 | |
Translation adjustments | 0 | 0 | |
Warner Bros. [Member] | |||
Impaired Intangible Assets [Line Items] | |||
Impairment of Intangible Assets (Excluding Goodwill) | 13 | 1 | 1 |
Goodwill [Line Items] | |||
Goodwill | 6,176 | 5,990 | 5,996 |
Acquisitions, dispositions and adjustments | 206 | -9 | |
Translation adjustments | -20 | 3 | |
Accumulated impairments | $4,091 | $4,091 | $4,091 |
Dispositions_Details
Dispositions (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Asset impairments | $69 | $61 | $180 |
Other gain (loss), net | -127 | -111 | -214 |
Discontinued Operations [Abstract] | |||
Total revenues | 1,415 | 3,334 | 3,404 |
Pretax income (loss) | -98 | 335 | 415 |
Income tax benefit (provision) | 31 | 2 | -156 |
Net income (loss) | -67 | 337 | 259 |
Net income (loss) attributable to Time Warner Inc. shareholders | -67 | 337 | 259 |
Per share information attributable to Time Warner Inc. common shareholders: | |||
Basic net income (loss) per common share | ($0.07) | $0.36 | $0.28 |
Average basic common shares outstanding | 863.3 | 920 | 954.4 |
Diluted net income (loss) per common share | ($0.07) | $0.36 | $0.27 |
Average diluted common shares outstanding | 882.6 | 942.6 | 976.3 |
Imagine [Member] | Turner [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Impairment and exit costs | 123 | ||
Asset impairments | 117 | ||
Exit costs | 6 | ||
TNT Turkey [Member] | Turner [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Impairment and exit costs | 85 | ||
Asset impairments | 57 | ||
Exit costs | 12 | ||
Other gain (loss), net | -16 | ||
Warner Music Group [Member] | |||
Discontinued Operations [Abstract] | |||
Income tax benefit (provision) | $137 |
Acquisitions_Details
Acquisitions (Details) (USD $) | 12 Months Ended | 3 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 02, 2014 |
Schedule of Equity Method Investments [Line Items] | |||||
Investments and acquisitions, net of cash required | $950 | $495 | $660 | ||
CME Equity Investment [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments and acquisitions, net of cash required | 396 | 288 | 171 | ||
Turner [Member] | Bleacher Report [Member] | |||||
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | 170 | ||||
Home Box Office [Member] | HBO Asia [Member] | |||||
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | 37 | ||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain (Loss), Net | 104 | ||||
Business Acquisition Percentage Of Voting Interests, Total | 100.00% | ||||
Warner Bros. [Member] | Eyeworks [Member] | |||||
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $267 |
Investments_Details
Investments (Details) | 12 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 2-May-14 | Dec. 31, 2014 | 2-May-14 | Dec. 31, 2014 | 2-May-14 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | 2-May-14 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 14, 2014 | Nov. 14, 2014 | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2014 | 2-May-14 | Dec. 31, 2013 | Jun. 25, 2013 | |
USD ($) | USD ($) | USD ($) | Time Warner Inc Revolving Credit Facility with CME [Member] | Time Warner Inc Revolving Credit Facility with CME [Member] | CME Loans Receivable [Member] | CME Senior Secured Notes [Member] | CME Rights Offering [Member] | CME Rights Offering [Member] | CME Rights Offering [Member] | CME Rights Offering [Member] | CME Rights Offering [Member] | Maximum [Member] | Minimum [Member] | HBO LAG [Member] | HBO LAG [Member] | CME Equity Investment [Member] | CME Equity Investment [Member] | CME Equity Investment [Member] | CME Equity Investment [Member] | CME Equity Investment [Member] | Series B convertible redeemable preferred shares [Member] | Series B convertible redeemable preferred shares [Member] | Series B convertible redeemable preferred shares [Member] | Series B convertible redeemable preferred shares [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Warrant [Member] | CME Senior Secured Notes [Member] | CME Senior Secured Notes [Member] | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||
unitwarrants | USD ($) | USD ($) | USD ($) | ||||||||||||||||||||||
units | |||||||||||||||||||||||||
Available-for-sale securities [Abstract] | |||||||||||||||||||||||||
Cost basis | $59,000,000 | $53,000,000 | |||||||||||||||||||||||
Gross unrealized gain | 22,000,000 | 46,000,000 | |||||||||||||||||||||||
Gross unrealized loss | -2,000,000 | -3,000,000 | |||||||||||||||||||||||
Fair value | 79,000,000 | 96,000,000 | |||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 50.00% | 20.00% | 88.00% | 49.00% | |||||||||||||||||||||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 568,000,000 | 580,000,000 | |||||||||||||||||||||||
Class A common stock, number of shares acquired during period | 28,500,000 | 10,800,000 | |||||||||||||||||||||||
Class A common stock, number of shares at end of period | 61,400,000 | ||||||||||||||||||||||||
Series A convertible preferred stock, number of shares at end of period | 1 | 1 | |||||||||||||||||||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 11,200,000 | ||||||||||||||||||||||||
Payments to Acquire Equity Method Investments | 78,000,000 | 165,000,000 | |||||||||||||||||||||||
CME Refinancing of Aggregate Principal of Senior Convertible Notes due 2015 | 261,000,000 | ||||||||||||||||||||||||
CME Refinancing of Aggregate Principal of Senior Notes due 2017 | 240,000,000 | ||||||||||||||||||||||||
CME Senior Unsecured Term Loan | 251,000,000 | ||||||||||||||||||||||||
CME Term Loan Guarantee Fee | 8.50% | 8.50% | |||||||||||||||||||||||
Term Loan Option | 261,000,000 | ||||||||||||||||||||||||
Term Loan Option, Unsecured Term Loan Guarantee Fee | 8.50% | ||||||||||||||||||||||||
Term Loan Option, Senior Secured Term Loan Fee | 8.50% | ||||||||||||||||||||||||
Term Loan Option, Commitment Fee | 9,000,000 | ||||||||||||||||||||||||
Term Loan Option, Commitment Fee Interest Rate | 8.50% | ||||||||||||||||||||||||
Investments Writedowns [Abstract] | |||||||||||||||||||||||||
Equity-method investments | 21,000,000 | 5,000,000 | 25,000,000 | ||||||||||||||||||||||
Cost-method investments | 8,000,000 | 5,000,000 | 14,000,000 | ||||||||||||||||||||||
Available-for-sale securities | 6,000,000 | 7,000,000 | 7,000,000 | ||||||||||||||||||||||
Total | 35,000,000 | 17,000,000 | 46,000,000 | ||||||||||||||||||||||
Gain On Sale Of Investments [Abstract] | |||||||||||||||||||||||||
Investment Income | 36,000,000 | 76,000,000 | 11,000,000 | ||||||||||||||||||||||
Schedule of Cost-method Investments [Line Items] | |||||||||||||||||||||||||
Cost Method Investments Original Cost | 200,000,000 | ||||||||||||||||||||||||
Annual rate at which convertible redeemable preferred stock will accrete in value through the third anniversary of closing | 7.50% | ||||||||||||||||||||||||
Annual rate at which convertible redeemable preferred stock will accrete in value from third anniversary to fifth anniversary of closing | 3.75% | ||||||||||||||||||||||||
Price at which the accreted value of the convertible redeemable preferred stock will convert into common stock | $2.42 | $3.16 | |||||||||||||||||||||||
Class B convertible redeemable preferred shares, number of shares at end of period | 92,400,000 | ||||||||||||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||||||||||||
Equity Warrants | 242,000,000 | 0 | 242,000,000 | ||||||||||||||||||||||
Held-to-maturity securities | 239,000,000 | 0 | 239,000,000 | 239,000,000 | |||||||||||||||||||||
Rights Offering Units Purchased By Company | 2,800,000 | ||||||||||||||||||||||||
Rights Offering Unit Senior Secured Note Principal | 100 | ||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 15.00% | ||||||||||||||||||||||||
Rights Offering Unit Warrant | 21 | ||||||||||||||||||||||||
Private Offering Units Purchased By Company | 581,533 | ||||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 30,000,000 | ||||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 1 | ||||||||||||||||||||||||
Class of Warrant or Right, Term | 4 years | ||||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $1 | ||||||||||||||||||||||||
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | 2-May-16 | ||||||||||||||||||||||||
Maximum Voting Interest Prior To Warrants Becoming Legally Exercisable | 49.90% | ||||||||||||||||||||||||
Economic Interest Percentage | 75.00% | ||||||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||||||||
Loans Receivable with Fixed Rates of Interest | 30,000,000 | ||||||||||||||||||||||||
Loans Receivable With Fixed Rates Of Interest Rate | 15.00% | ||||||||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 115,000,000 | ||||||||||||||||||||||||
Revolving Credit Facility With Company LIBOR Minimum Rate | 1.00% | ||||||||||||||||||||||||
Revolving Credit Facility With Company Amounts Outstanding Rate | 9.00% | ||||||||||||||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | ||||||||||||||||||||||||
Long-term Line of Credit | $25,000,000 |
Investments_2_Details
Investments 2 (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments [Abstract] | ||
Equity-method investments | $898 | $936 |
Fair-value and other investments: | ||
Deferred compensation investments, recorded at fair value | 195 | 248 |
Deferred compensation insurance-related investments, recorded at cash surrender value | 410 | 397 |
Available-for-sale securities | 79 | 96 |
Equity Warrants | 242 | 0 |
Total fair-value and other investments | 926 | 741 |
Held-to-maturity securities | 239 | 0 |
Cost-method investments | 263 | 332 |
Total | $2,326 | $2,009 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivatives [Abstract] | |||
Foreign exchange contracts | $61 | $10 | |
Derivatives [Abstract] | |||
Foreign exchange contracts | -3 | -17 | |
Equity Warrants | 242 | 0 | |
Other Financial Instruments Numeric [Abstract] | |||
Class A common stock, carrying value | 898 | 936 | |
Series B convertible redeemable preferred shares, carrying value | 263 | 332 | |
Senior secured notes, carrying value | 239 | 0 | |
Non Financial Instruments Numeric [Abstract] | |||
Noncash impairments of intangible assets (excluding Goodwill) | 18 | 19 | 80 |
Noncash impairment of indefinite-lived intangible assets | 0 | ||
Value after impairment, indefinite intangible assets | 7,032 | 7,043 | |
Value after impairment, finite intangible assets | 1,141 | 1,338 | |
Derivatives [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Balance as of the beginning of the period | 1 | 7 | |
Total gains (losses), net: [Abstract] | |||
Included in other comprehensive income (loss) | 0 | 0 | |
Purchases | 213 | 0 | |
Settlements | -20 | -15 | |
Issuances | 16 | -2 | |
Transfers in and/or out of Level 3 | 0 | 0 | |
Balance as of the end of the period | 241 | 1 | |
Net gain (loss) for the period included in net income related to assets and liabilities still held as of the end of the period | 32 | 9 | |
Derivatives [Member] | Operating Income (Loss) [Member] | |||
Total gains (losses), net: [Abstract] | |||
Included in earnings | 0 | -1 | |
Derivatives [Member] | Other Nonoperating Income (Expense) [Member] | |||
Total gains (losses), net: [Abstract] | |||
Included in earnings | 31 | 12 | |
Class A common stock [Member] | |||
Other Financial Instruments Numeric [Abstract] | |||
Class A common stock, carrying value | 0 | ||
Series B convertible redeemable preferred shares [Member] | |||
Other Financial Instruments Numeric [Abstract] | |||
Series B convertible redeemable preferred shares, carrying value | 148 | ||
CME Senior Secured Notes [Member] | |||
Other Financial Instruments Numeric [Abstract] | |||
Senior secured notes, carrying value | 239 | ||
CME Rights Offering [Member] | CME Senior Secured Notes [Member] | |||
Other Financial Instruments Numeric [Abstract] | |||
Senior secured notes, carrying value | 239 | ||
Warrant [Member] | CME Rights Offering [Member] | |||
Derivatives [Abstract] | |||
Equity Warrants | 242 | ||
Turner [Member] | |||
Non Financial Instruments Numeric [Abstract] | |||
Noncash impairments of intangible assets (excluding Goodwill) | 1 | 18 | 79 |
Fair Value, Measurements, Recurring [Member] | |||
Trading securities [Abstract] | |||
Diversified equity securities | 237 | 259 | |
Available-for-sale securities [Abstract] | |||
Equity securities | 19 | 56 | |
Debt securities | 60 | 40 | |
Derivatives [Abstract] | |||
Foreign exchange contracts | 61 | 10 | |
Other | 247 | 14 | |
Derivatives [Abstract] | |||
Foreign exchange contracts | -3 | -17 | |
Other | -6 | -7 | |
Total | 615 | 355 | |
Level 1 [Member] | Class A common stock [Member] | |||
Other Financial Instruments Numeric [Abstract] | |||
Class A common stock, fair value | 233 | ||
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Trading securities [Abstract] | |||
Diversified equity securities | 232 | 254 | |
Available-for-sale securities [Abstract] | |||
Equity securities | 19 | 56 | |
Debt securities | 0 | 0 | |
Derivatives [Abstract] | |||
Foreign exchange contracts | 0 | 0 | |
Other | 0 | 6 | |
Derivatives [Abstract] | |||
Foreign exchange contracts | 0 | 0 | |
Other | 0 | 0 | |
Total | 251 | 316 | |
Level 2 [Member] | |||
Other Financial Instruments Numeric [Abstract] | |||
Difference between carrying value and fair value of debt | 4,251 | 2,754 | |
Level 2 [Member] | Series B convertible redeemable preferred shares [Member] | |||
Other Financial Instruments Numeric [Abstract] | |||
Series B convertible redeemable preferred shares, fair value | 297 | ||
Level 2 [Member] | CME Senior Secured Notes [Member] | |||
Other Financial Instruments Numeric [Abstract] | |||
Senior secured notes, fair value | 408 | ||
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Trading securities [Abstract] | |||
Diversified equity securities | 5 | 5 | |
Available-for-sale securities [Abstract] | |||
Equity securities | 0 | 0 | |
Debt securities | 60 | 40 | |
Derivatives [Abstract] | |||
Foreign exchange contracts | 61 | 10 | |
Other | 0 | 0 | |
Derivatives [Abstract] | |||
Foreign exchange contracts | -3 | -17 | |
Other | 0 | 0 | |
Total | 123 | 38 | |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Trading securities [Abstract] | |||
Diversified equity securities | 0 | 0 | |
Available-for-sale securities [Abstract] | |||
Equity securities | 0 | 0 | |
Debt securities | 0 | 0 | |
Derivatives [Abstract] | |||
Foreign exchange contracts | 0 | 0 | |
Other | 247 | 8 | |
Derivatives [Abstract] | |||
Foreign exchange contracts | 0 | 0 | |
Other | -6 | -7 | |
Total | 241 | 1 | |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Warrant [Member] | CME Rights Offering [Member] | |||
Derivatives [Abstract] | |||
Equity Warrants | 242 | ||
Fair Value Assumptions Expected Term | 2 years 7 months 5 days | ||
Fair Value Assumptions Expected Volatility Rate | 82.00% | ||
Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Non Financial Instruments Numeric [Abstract] | |||
Fair value of film costs to be abandoned | 0 | ||
Theatrical film and television production costs, carrying value in inventory subsequent to write down | 201 | 206 | |
Theatrical film and television production costs, carrying value in inventory prior to write down | 331 | 289 | |
Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Certain Intangible Assets [Member] | Turner [Member] | |||
Non Financial Instruments Numeric [Abstract] | |||
Noncash impairments of intangible assets (excluding Goodwill) | 18 | ||
Value of assets after impairment | 3 | ||
Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Certain Intangible Assets [Member] | Turner, HBO and Warner Bros. [Member] | |||
Non Financial Instruments Numeric [Abstract] | |||
Noncash impairments of intangible assets (excluding Goodwill) | 17 | ||
Value of assets after impairment | $12 |
Inventories_and_Theatrical_Fil2
Inventories and Theatrical Film and Television Production Costs (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Inventories [Abstract] | ||
Total inventories | $3,479,000,000 | $3,685,000,000 |
Less: current portion of inventory | -1,700,000,000 | -1,648,000,000 |
Total noncurrent inventories | 1,779,000,000 | 2,037,000,000 |
Theatrical film production costs: [Abstract] | ||
Released, less amortization | 641,000,000 | 660,000,000 |
Completed and not released | 379,000,000 | 246,000,000 |
In production | 1,266,000,000 | 1,480,000,000 |
Development and pre-production | 105,000,000 | 107,000,000 |
Television production costs: [Abstract] | ||
Released, less amortization | 1,251,000,000 | 1,249,000,000 |
Completed and not released | 521,000,000 | 536,000,000 |
In production | 889,000,000 | 694,000,000 |
Development and pre-production | 10,000,000 | 7,000,000 |
Total theatrical film and television production costs | 5,062,000,000 | 4,979,000,000 |
Total noncurrent inventories and theatrical film and television production costs | 6,841,000,000 | 7,016,000,000 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization | 1,141,000,000 | 1,338,000,000 |
Percentage of Unamortized Film Costs | 89.00% | |
Film Costs, Amortized in Next Operating Cycle | 1,900,000,000 | |
Film Costs, Amortized in Next Operating Cycle, Percent | 68.00% | |
Film Libraries [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization | $797,000,000 | $958,000,000 |
Inventories_and_Theatrical_Fil3
Inventories and Theatrical Film and Television Production Costs 2 (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Programming costs, less amortization | $3,251 | $3,416 |
Other inventory, primarily DVDs and Blu-ray Discs | 228 | 269 |
Total inventories | $3,479 | $3,685 |
Derivative_Instruments_Details
Derivative Instruments (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Prepaid expenses and other current assets | $61 | $10 |
Accounts payable and accrued liabilities | -3 | -17 |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | ||
Cash flow hedge gains (losses) recorded in accumulated OCI | 20 | 28 |
Cash flow hedge gains (losses) recorded in accumulated OCI deferred gains (losses) | -5 | 21 |
Foreign Currency Derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 139 | 77 |
Derivative Liability, Fair Value, Gross Liability | 81 | 84 |
Derivative, Lower Remaining Maturity Range | 3 months | |
Derivative, Higher Remaining Maturity Range | 18 months | |
Qualifying Hedges [Member] | Foreign Currency Derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 92 | 64 |
Derivative Liability, Fair Value, Gross Liability | 65 | 53 |
Economic Hedges [Member] | Foreign Currency Derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 47 | 13 |
Derivative Liability, Fair Value, Gross Liability | $16 | $31 |
Long_Term_Debt_and_Other_Finan2
Long Term Debt and Other Financing Arrangements (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 20-May-14 | |
Debt Instrument [Line Items] | |||||
Subtotal | $22,494,000,000 | $20,127,000,000 | |||
Debt due within one year | -1,118,000,000 | -66,000,000 | |||
Total long-term debt | 21,376,000,000 | 20,061,000,000 | |||
Unused Committed Capacity | 7,637,000,000 | ||||
Debt, Weighted Average Interest Rate | 5.80% | 6.11% | |||
Commercial Paper | 0 | ||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||
Cash and equivalents | 2,618,000,000 | 1,816,000,000 | 2,760,000,000 | 3,381,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 2.10% | ||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 9.15% | ||||
Capital Leases of Lessee [Abstract] | |||||
Capital Leased Assets, Gross | 113,000,000 | 115,000,000 | |||
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | 69,000,000 | 59,000,000 | |||
Capital Leases, Future Minimum Payments, Net Minimum Payments, Fiscal Year Maturity [Abstract] | |||||
2015 | 13,000,000 | ||||
2016 | 11,000,000 | ||||
2017 | 9,000,000 | ||||
2018 | 9,000,000 | ||||
2019 | 8,000,000 | ||||
Thereafter | 12,000,000 | ||||
Total | 62,000,000 | ||||
Amount representing interest | -10,000,000 | ||||
Present value of minimum lease payments | 52,000,000 | ||||
Current portion | -10,000,000 | ||||
Total long-term portion | 42,000,000 | ||||
Film Tax Advantaged Arrangement SPE Capitalized | 2,900,000,000 | ||||
Film Tax Advantaged Arrangement, Film Cost Amortization Reductions | 1,000,000 | 1,000,000 | 10,000,000 | ||
Revolving Credit Facilities [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 5,000,000,000 | ||||
Line Of Credit Facility, Number of Facilities | 2 | ||||
Line of Credit Facility, Interest Rate During Period Based on LIBOR Percent | 1.10% | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.15% | ||||
Line of Credit Facility, Maximum Letters of Credit Issuance | 500,000,000 | ||||
Line of Credit Facility, Maximum Leverage Ratio | 450.00% | ||||
Line of Credit Facility, Maximum Borrowing Capacity Amount of Potential Increase | 500,000,000 | ||||
Line of Credit Facility Calculated Leverage Ratio | 310.00% | ||||
Line Of Credit Facility Amount Outstanding | 0 | ||||
Revolving Credit Facility A [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 2,500,000,000 | ||||
Revolving Credit Facility B [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 2,500,000,000 | ||||
Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument Maturity | 40 years | ||||
Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument Maturity | 5 years | ||||
Fixed Rate Public Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Subtotal | 21,920,000,000 | 19,905,000,000 | |||
Debt, Weighted Average Interest Rate | 5.89% | 6.13% | |||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||
2015 | 1,000,000,000 | ||||
2016 | 1,150,000,000 | ||||
2017 | 500,000,000 | ||||
2018 | 600,000,000 | ||||
2019 | 650,000,000 | ||||
Thereafter | 18,131,000,000 | ||||
Fixed Rate Public Debt [Member] | Notes 2.10% Due 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | 650,000,000 | ||||
Debt instrument, interest rate, stated percentage | 2.10% | ||||
Fixed Rate Public Debt [Member] | Notes 3.55% Due 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | 750,000,000 | ||||
Debt instrument, interest rate, stated percentage | 3.55% | ||||
Fixed Rate Public Debt [Member] | Debentures 4.65% Due 2044 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | 600,000,000 | ||||
Debt instrument, interest rate, stated percentage | 4.65% | ||||
Other Obligations [Member] | |||||
Debt Instrument [Line Items] | |||||
Subtotal | 574,000,000 | 222,000,000 | |||
Debt, Weighted Average Interest Rate | 2.58% | 3.98% | |||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||
2015 | 100,000,000 | ||||
2018 | 125,000,000 | ||||
2019 | $250,000,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||
Domestic | $4,296,000,000 | $4,836,000,000 | $4,097,000,000 |
Foreign | 383,000,000 | 132,000,000 | -64,000,000 |
Total | 4,679,000,000 | 4,968,000,000 | 4,033,000,000 |
Federal: | |||
Current | 128,000,000 | 494,000,000 | 1,066,000,000 |
Deferred | 152,000,000 | 802,000,000 | -147,000,000 |
Foreign: | |||
Current | 466,000,000 | 348,000,000 | 350,000,000 |
Deferred | 0 | -21,000,000 | 6,000,000 |
State and Local: | |||
Current | 25,000,000 | 13,000,000 | 115,000,000 |
Deferred | 14,000,000 | -22,000,000 | -20,000,000 |
Total | 785,000,000 | 1,614,000,000 | 1,370,000,000 |
Foreign withholding taxes | 279,000,000 | 273,000,000 | 244,000,000 |
Excess tax benefit from equity instruments | 179,000,000 | 179,000,000 | 83,000,000 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 35.00% | ||
Deferred tax assets: | |||
Tax attribute carryforwards | 305,000,000 | 999,000,000 | |
Receivable allowances and return reserves | 168,000,000 | 199,000,000 | |
Royalties, participations and residuals | 429,000,000 | 444,000,000 | |
Investments | 62,000,000 | 180,000,000 | |
Equity-based compensation | 218,000,000 | 239,000,000 | |
Amortization | 231,000,000 | 184,000,000 | |
Other | 1,345,000,000 | 1,169,000,000 | |
Valuation allowances | -275,000,000 | -504,000,000 | |
Total deferred tax assets | 2,483,000,000 | 2,910,000,000 | |
Deferred tax liabilities: | |||
Assets acquired in business combinations | 2,874,000,000 | 2,939,000,000 | |
Unbilled television receivables | 998,000,000 | 933,000,000 | |
Unremitted earnings of foreign subsidiaries | 41,000,000 | 241,000,000 | |
Depreciation | 264,000,000 | 220,000,000 | |
Other | 326,000,000 | 495,000,000 | |
Total deferred tax liabilities | 4,503,000,000 | 4,828,000,000 | |
Net deferred tax liability | 2,020,000,000 | 1,918,000,000 | |
Tax credits | 21,000,000 | ||
Capital losses | 58,000,000 | ||
Net operating losses | 226,000,000 | ||
Undistributed Earnings of Foreign Subsidiaries | 1,100,000,000 | ||
Adjustments to Income Tax Expense, Income Tax Deficiency from Share Based Compensation | 0 | 0 | 0 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | 2,169,000,000 | 2,203,000,000 | 2,106,000,000 |
Additions for prior year tax positions | 87,000,000 | 124,000,000 | 97,000,000 |
Additions for current year tax positions | 69,000,000 | 76,000,000 | 94,000,000 |
Reductions for prior year tax positions | -968,000,000 | -140,000,000 | -60,000,000 |
Settlements | -8,000,000 | -84,000,000 | -26,000,000 |
Lapses in statute of limitations | -22,000,000 | -10,000,000 | -8,000,000 |
Ending balance | 1,327,000,000 | 2,169,000,000 | 2,203,000,000 |
Interest reserves recorded through statement of operations | -62,000,000 | 35,000,000 | |
Interest payments | 12,000,000 | 38,000,000 | |
Interest and penalties accrued | 346,000,000 | 418,000,000 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Lower Bound | 0 | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Upper Bound | $80,000,000 |
Income_Taxes_2_Details
Income Taxes 2 (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
Taxes on income at U.S. federal statutory rate | $1,638 | $1,739 | $1,412 |
State and local taxes, net of federal tax effects | 64 | 72 | 43 |
Domestic production activities deduction | -114 | -133 | -152 |
Federal Tax Settlement | -687 | 0 | 0 |
Valuation Allowances | -226 | 3 | -6 |
Other | 110 | -67 | 73 |
Total | 785 | 1,614 | 1,370 |
U.S. federal | Domestic Tax Authority [Member] | |||
Income Tax Contingency [Line Items] | |||
Settlement, tax benefit | $687 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2014 | Jun. 30, 2014 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Common stock repurchases | $5,500,000,000 | $3,700,000,000 | $3,302,000,000 | ||
Treasury stock, shares, acquired | 77,000,000 | 60,000,000 | 80,000,000 | ||
Treasury stock, shares | 820,000,000 | 757,000,000 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 4,500,000,000 | ||||
Preferred Stock, Shares Authorized | 750,000,000 | ||||
Common Stock, Shares Authorized | 8,330,000,000 | ||||
Additional Series of Common Stock, Shares Authorized | 600,000,000 | ||||
Time Warner common stock, shares outstanding | 832,000,000 | 895,000,000 | |||
Statement of Income and Comprehensive Income [Abstract] | |||||
Unrealized gains (losses) on foreign currency translation, Pretax | -243,000,000 | -38,000,000 | 59,000,000 | ||
Unrealized gains (losses) on foreign currency translation, Tax (provision) benefit | 15,000,000 | 16,000,000 | -8,000,000 | ||
Unrealized gains (losses) on foreign currency translation, Net of tax | -228,000,000 | -22,000,000 | 51,000,000 | ||
Reclassification adjustment for (gains) losses on foreign currency translation realized in net income, Pretax | -9,000,000 | 10,000,000 | |||
Reclassification adjustment for (gains) losses on foreign currency translation realized in net income, Tax (provision) benefit | 3,000,000 | 0 | |||
Reclassification adjustment for (gains) losses on foreign currency translation realized in net income, Net of tax | 0 | -6,000,000 | 10,000,000 | ||
Unrealized gains (losses) on securities, Pretax | -6,000,000 | 22,000,000 | 1,000,000 | ||
Unrealized gains (losses) on securities, Tax (provision) benefit | 2,000,000 | -9,000,000 | 0 | ||
Unrealized gains (losses) on securities, Net of tax | -4,000,000 | 13,000,000 | 1,000,000 | ||
Reclassification adjustment for (gains) losses on securities realized in net income, Pretax | -16,000,000 | ||||
Reclassification adjustment for (gains) losses on securities realized in net income, Tax (provision) benefit | 6,000,000 | ||||
Reclassification adjustment for (gains) losses on securities realized in net income, Net of tax | -10,000,000 | 0 | 0 | ||
Unrealized gains (losses) on benefit obligations, Pretax | -282,000,000 | 203,000,000 | -312,000,000 | ||
Unrealized gains (losses) on benefit obligations, Tax (provision) benefit | 95,000,000 | -79,000,000 | 106,000,000 | ||
Unrealized gains (losses) on benefit obligations, Net of tax | -187,000,000 | 124,000,000 | -206,000,000 | ||
Reclassification adjustment for (gains) losses on benefit obligations realized in net income, Pretax | 30,000,000 | 33,000,000 | 28,000,000 | ||
Reclassification adjustment for (gains) losses on benefit obligations realized in net income, Tax (provision) benefit | -11,000,000 | -11,000,000 | -10,000,000 | ||
Reclassification adjustment for (gains) losses on benefit obligations realized in net income, Net of tax | 19,000,000 | 22,000,000 | 18,000,000 | ||
Unrealized gains (losses) on derivative financial instruments, Pretax | 13,000,000 | 45,000,000 | 5,000,000 | ||
Unrealized gains (losses) on derivative financial instruments, Tax (provision) benefit | -5,000,000 | -18,000,000 | -2,000,000 | ||
Unrealized gains (losses) on derivative financial instruments, Net of tax | 8,000,000 | 27,000,000 | 3,000,000 | ||
Reclassification adjustment for derivative financial instruments (gains) losses realized in net income, Pretax | -22,000,000 | -35,000,000 | -2,000,000 | ||
Reclassification adjustment for derivative financial instruments (gains) losses realized in net income, Tax (provision) benefit | 8,000,000 | 14,000,000 | 1,000,000 | ||
Reclassification adjustment for derivative financial instruments (gains) losses realized in net income, Net of tax | -14,000,000 | -21,000,000 | -1,000,000 | ||
Other comprehensive income (loss), Pretax | -526,000,000 | 221,000,000 | -211,000,000 | ||
Other comprehensive income (loss), Tax (provision) benefit | 110,000,000 | -84,000,000 | 87,000,000 | ||
Other comprehensive income (loss) | -416,000,000 | 137,000,000 | -124,000,000 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Pretax (gains) losses reclassified out of Accumulated Other Comprehensive Income to Selling, general and administrative expenses | 5,190,000,000 | 4,934,000,000 | 4,813,000,000 | ||
Pretax (gains) losses reclassified out of Accumulated Other Comprehensive Income to Costs of revenues | 15,875,000,000 | 14,935,000,000 | 14,575,000,000 | ||
Pretax (gains) losses reclassified out of Accumulated Other Comprehensive Income to Other income (loss) | 127,000,000 | 111,000,000 | 214,000,000 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||
Foreign currency translation gains (losses) | -299,000,000 | -26,000,000 | |||
Net unrealized gains (losses) on securities | 12,000,000 | 26,000,000 | |||
Net derivative financial instruments gains | 12,000,000 | 18,000,000 | |||
Net unfunded/underfunded benefit obligation | -889,000,000 | -870,000,000 | |||
Accumulated other comprehensive loss, net | -1,164,000,000 | -852,000,000 | |||
Accumulated Translation Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Pretax (gains) losses reclassified out of Accumulated Other Comprehensive Income to Other income (loss) | -9,000,000 | 10,000,000 | |||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Pretax (gains) losses reclassified out of Accumulated Other Comprehensive Income to Other income (loss) | -16,000,000 | ||||
Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Pretax (gains) losses reclassified out of Accumulated Other Comprehensive Income to Selling, general and administrative expenses | 30,000,000 | 33,000,000 | 28,000,000 | ||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Pretax (gains) losses reclassified out of Accumulated Other Comprehensive Income to Selling, general and administrative expenses | -5,000,000 | -5,000,000 | -12,000,000 | ||
Pretax (gains) losses reclassified out of Accumulated Other Comprehensive Income to Costs of revenues | -18,000,000 | -27,000,000 | 10,000,000 | ||
Pretax (gains) losses reclassified out of Accumulated Other Comprehensive Income to Other income (loss) | 1,000,000 | -3,000,000 | 0 | ||
January 2014 Plan [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock Repurchase Program Authorized Amount | 5,000,000,000 | ||||
June 2014 Plan [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock Repurchase Program Authorized Amount | $5,000,000,000 |
Income_Per_Common_Share_Detail
Income Per Common Share (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||
Income from continuing operations attributable to Time Warner Inc. shareholders | $3,894 | $3,354 | $2,666 |
Income allocated to participating securities | -14 | -16 | -18 |
Income from continuing operations attributable to Time Warner Inc. common shareholders - basic | $3,880 | $3,338 | $2,648 |
Average basic common shares outstanding | 863.3 | 920 | 954.4 |
Dilutive effect of equity awards | 19.3 | 22.6 | 21.9 |
Average diluted common shares outstanding | 882.6 | 942.6 | 976.3 |
Antidilutive common share equivalents excluded from computation | 1 | 0 | 25 |
Income per common share from continuing operations attributable to Time Warner Inc common shareholders - basic | $4.49 | $3.63 | $2.77 |
Income per common share from continuing operations attributable to Time Warner Inc common shareholders - diluted | $4.41 | $3.56 | $2.73 |
EquityBased_Compensation_Detai
Equity-Based Compensation (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Total impact on operating income | $219,000,000 | $238,000,000 | $195,000,000 |
Tax benefit recognized | 76,000,000 | 78,000,000 | 66,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 30,000,000 | ||
Time Separation [Member] | |||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Ratio to maintain equity awards outstanding fair value | 1.04 | ||
Ratio to maintain exercise price of stock options outstanding fair value | 1.04 | ||
Aggregate increase in equity awards | 2,000,000 | ||
2013 Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Number of Active Equity Plans | 1 | ||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 36,000,000 | ||
Restricted Stock Unit [Member] | |||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value | 366,000,000 | 291,000,000 | 177,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Number of Shares/Units Granted | 2,700,000 | ||
Weighted-Average Grant Date Fair Value of Granted | $65.56 | $54.04 | $37.52 |
Restricted Stock Unit [Member] | 2013 Stock Incentive Plan [Member] | First Year Anniversary [Member] | |||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||
Restricted Stock Unit [Member] | 2013 Stock Incentive Plan [Member] | Second Year Anniversary [Member] | |||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||
Restricted Stock Unit [Member] | 2013 Stock Incentive Plan [Member] | Third Year Anniversary [Member] | |||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||
Restricted Stock Unit [Member] | 2013 Stock Incentive Plan [Member] | Fourth Year Anniversary [Member] | |||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||
Restricted Stock Unit [Member] | Prior Plan [Member] | Third Year Anniversary [Member] | |||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | ||
Restricted Stock Unit [Member] | Prior Plan [Member] | Fourth Year Anniversary [Member] | |||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | ||
Performance Stock Unit [Member] | |||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value | 17,000,000 | 27,000,000 | 11,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Number of Shares/Units Granted | 200,000 | ||
Weighted-Average Grant Date Fair Value of Granted | $93.45 | $101.14 | $85.42 |
Payout adjustment | 100,000 | ||
Stock Option [Member] | |||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Total impact on operating income | 26,000,000 | 33,000,000 | 45,000,000 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | 47,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | 402,000,000 | 491,000,000 | 342,000,000 |
Employee Service Share-based Compensation, Cash Received from Exercise of Stock Options | 338,000,000 | 674,000,000 | 1,107,000,000 |
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | 143,000,000 | 178,000,000 | 127,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected volatility | 26.60% | 29.60% | 31.20% |
Expected term to exercise from grant date, in years | 5 years 10 months 10 days | 6 years 3 months 9 days | 6 years 6 months 3 days |
Risk-free rate | 1.90% | 1.30% | 1.30% |
Expected dividend yield | 1.70% | 2.10% | 2.80% |
Weighted average grant date fair value per option | $16.94 | $13.48 | $8.69 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of Options Outstanding as of December 31, 2013 | 36,493,000 | ||
Number of Options Granted | 3,129,000 | ||
Number of Options Exercised | -10,214,000 | ||
Number of Options Forfeited or expired | -947,000 | ||
Adjustment due to the Time Separation | 1,360,000 | ||
Number of Options Outstanding as of December 31, 2014 | 29,821,000 | 36,493,000 | |
Number of Options Exercisable | 22,454,000 | ||
Weighted-Average Exercise Price of Outstanding as of December 31, 2013 | $33.41 | ||
Weighted-Average Exercise Price of Granted | $76.96 | ||
Weighted-Average Exercise Price of Exercised | $32.99 | ||
Weighted-Average Exercise Price of Forfeited or expired | $43.75 | ||
Weighted-Average Exercise Price of Outstanding as of December 31, 2014 | $36.27 | $33.41 | |
Weighted-Average Exercise Price of Exercisable | $30.22 | ||
Weighted-Average Remaining Contractual Life of Outstanding | 4 years 10 months 21 days | ||
Weighted-Average Remaining Contractual Life of Exercisable | 3 years 10 months 3 days | ||
Aggregate Intrinsic Value of Outstanding | 1,470,001,000 | ||
Aggregate Intrinsic Value of Exercisable | 1,239,551,000 | ||
Stock Option [Member] | First Year Anniversary [Member] | |||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||
Stock Option [Member] | Second Year Anniversary [Member] | |||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||
Stock Option [Member] | Third Year Anniversary [Member] | |||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||
Stock Option [Member] | Fourth Year Anniversary [Member] | |||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||
Stock Option [Member] | Maximum [Member] | |||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 2 years | ||
Stock Option [Member] | Minimum [Member] | |||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year | ||
Restricted stock units and performance stock units [Member] | |||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Total impact on operating income | 193,000,000 | 205,000,000 | 150,000,000 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | 182,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Number of Shares/Units Unvested as of December 31, 2013 | 14,566,000 | ||
Number of Shares/Units Granted | 2,960,000 | ||
Number of Shares/Units Vested | -5,882,000 | ||
Number of Shares/Units Forfeited | -1,035,000 | ||
Adjustment due to the Time Separation | 500,000 | ||
Number of Shares/Units Unvested as of December 31, 2014 | 11,109,000 | 14,566,000 | |
Weighted-Average Grant Date Fair Value of Unvested as of December 31, 2013 | $40.31 | ||
Weighted-Average Grant Date Fair Value of Granted | $66.44 | ||
Weighted-Average Grant Date Fair Value of Vested | $34.82 | ||
Weighted-Average Grant Date Fair Value of Forfeited | $42.96 | ||
Weighted-Average Grant Date Fair Value of Unvested as of December 31, 2014 | $48.68 | $40.31 | |
Aggregate Intrinsic Value Unvested as of December 31, 2014 | $948,897,000 | ||
Restricted stock units and performance stock units [Member] | Maximum [Member] | |||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 2 years | ||
Restricted stock units and performance stock units [Member] | Minimum [Member] | |||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year |
Benefit_Plans_Details
Benefit Plans (Details) (USD $) | 6 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2010 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Noncurrent liability | $928 | $696 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ||||
Retirement plan amendment service threshold | 1 year | |||
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | ||||
Defined Contribution Plan, Cost Recognized | 160 | 153 | 144 | |
Domestic [Member] | Equity investments [Member] | ||||
Defined Benefit Plan, Assets, Target Allocations [Abstract] | ||||
Defined Benefit Plan, Target Plan Asset Allocations | 35.00% | |||
Domestic [Member] | Equity investments [Member] | Scenario, Plan [Member] | ||||
Defined Benefit Plan, Assets, Target Allocations [Abstract] | ||||
Defined Benefit Plan, Target Plan Asset Allocations | 20.00% | |||
Domestic [Member] | Fixed income investments [Member] | ||||
Defined Benefit Plan, Assets, Target Allocations [Abstract] | ||||
Defined Benefit Plan, Target Plan Asset Allocations | 65.00% | |||
Domestic [Member] | Fixed income investments [Member] | Scenario, Plan [Member] | ||||
Defined Benefit Plan, Assets, Target Allocations [Abstract] | ||||
Defined Benefit Plan, Target Plan Asset Allocations | 80.00% | |||
International [Member] | Other [Member] | ||||
Defined Benefit Plan, Assets, Target Allocations [Abstract] | ||||
Defined Benefit Plan, Target Plan Asset Allocations | 35.00% | |||
International [Member] | Equity investments [Member] | ||||
Defined Benefit Plan, Assets, Target Allocations [Abstract] | ||||
Defined Benefit Plan, Target Plan Asset Allocations | 45.00% | |||
International [Member] | Fixed income investments [Member] | ||||
Defined Benefit Plan, Assets, Target Allocations [Abstract] | ||||
Defined Benefit Plan, Target Plan Asset Allocations | 20.00% | |||
Defined Benefit Pension Plans [Member] | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Projected benefit obligation, beginning of year | 3,311 | 3,615 | ||
Service cost | 3 | 3 | ||
Interest cost | 153 | 143 | ||
Actuarial loss (gain) | 484 | -307 | ||
Benefits paid | -192 | -153 | ||
Curtailments/Special termination benefit | -8 | 0 | ||
Transfer out due to the Time Separation | -29 | 0 | ||
Foreign currency exchange rates | -28 | 10 | ||
Projected benefit obligation, end of year | 3,694 | 3,311 | 3,615 | |
Accumulated benefit obligation, end of year | 3,660 | 3,280 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | 2,766 | 2,808 | ||
Actual return on plan assets | 333 | 46 | ||
Employer contributions | 51 | 51 | ||
Benefits paid | -192 | -153 | ||
Foreign currency exchange rates | -26 | 14 | ||
Fair value of plan assets, end of year | 2,932 | 2,766 | 2,808 | |
Net asset (liability) | -762 | -545 | ||
Noncurrent liability | 808 | 580 | ||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | ||||
Net total in accumulated other comprehensive income | 1,400 | 1,149 | ||
Components of Net Periodic Benefit Costs [Abstract] | ||||
Service cost | 3 | 3 | 3 | |
Interest cost | 91 | 79 | 84 | |
Expected return on plan assets | -95 | -85 | -82 | |
Amortization of prior service cost | 1 | 1 | 1 | |
Amortization of net loss | 14 | 16 | 12 | |
Net periodic benefit costs | 14 | 14 | 18 | |
Weighted-average assumptions used to determine benefit obligations | ||||
Discount rate | 4.10% | 4.90% | 4.06% | |
Rate of compensation increase | 5.34% | 5.60% | 4.59% | |
Weighted-average assumptions used to determine net periodic benefit cost | ||||
Discount rate | 4.89% | 4.07% | 4.89% | |
Rate of compensation increase | 5.59% | 3.98% | 4.66% | |
Expected long-term return on plan assets | 6.01% | 5.95% | 6.14% | |
Mortality table impact | 86 | |||
Fair Value of Plan Assets | ||||
Total | 3,008 | 2,784 | ||
Pension Plan Securities Loaned [Abstract] | ||||
Pension plan, securities loaned | 78 | 15 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at beginning of period | 2,784 | |||
Balance at end of period | 3,008 | 2,784 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ||||
2015 | 188 | |||
2016 | 195 | |||
2017 | 197 | |||
2018 | 196 | |||
2019 | 191 | |||
2020-2024 | 992 | |||
Defined Benefit Pension Plans [Member] | Cash and cash equivalents [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 133 | 155 | ||
Pension Plan Securities Loaned [Abstract] | ||||
Defined Benefit Plan Assets, cash collateral for securities on loan | 10 | |||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 133 | 155 | ||
Defined Benefit Pension Plans [Member] | Insurance Contracts [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 14 | 7 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 14 | 7 | ||
Defined Benefit Pension Plans [Member] | Domestic equities [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 157 | 204 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 157 | 204 | ||
Defined Benefit Pension Plans [Member] | International equities [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 8 | 56 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 8 | 56 | ||
Defined Benefit Pension Plans [Member] | U.S. government and agency securities [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 329 | 258 | ||
Pension Plan Securities Loaned [Abstract] | ||||
Defined Benefit Plan Assets, securities collateral for securities on loan | 70 | 5 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 329 | 258 | ||
Defined Benefit Pension Plans [Member] | Non-U.S. government and agency securities [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 112 | 61 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 112 | 61 | ||
Defined Benefit Pension Plans [Member] | Municipal bonds [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 23 | 23 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 23 | 23 | ||
Defined Benefit Pension Plans [Member] | Investment grade corporate bonds [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 1,187 | 1,048 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 1,187 | 1,048 | ||
Defined Benefit Pension Plans [Member] | Non-investment grade corporate bonds [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 20 | 23 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 20 | 23 | ||
Defined Benefit Pension Plans [Member] | Pooled investments [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 400 | 457 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 400 | 457 | ||
Defined Benefit Pension Plans [Member] | Commingled trust funds [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 486 | 391 | ||
Pension Plan Securities Loaned [Abstract] | ||||
Defined Benefit Plan Assets, cash collateral for securities on loan | 11 | |||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 486 | 391 | ||
Defined Benefit Pension Plans [Member] | Hedge funds [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 30 | 36 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 30 | 36 | ||
Defined Benefit Pension Plans [Member] | Other [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 109 | 65 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 109 | 65 | ||
Defined Benefit Pension Plans [Member] | Level 1 [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 699 | 730 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 699 | 730 | ||
Defined Benefit Pension Plans [Member] | Level 1 [Member] | Cash and cash equivalents [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 133 | 155 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 133 | 155 | ||
Defined Benefit Pension Plans [Member] | Level 1 [Member] | Insurance Contracts [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 0 | 0 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 0 | 0 | ||
Defined Benefit Pension Plans [Member] | Level 1 [Member] | Domestic equities [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 157 | 204 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 157 | 204 | ||
Defined Benefit Pension Plans [Member] | Level 1 [Member] | International equities [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 8 | 56 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 8 | 56 | ||
Defined Benefit Pension Plans [Member] | Level 1 [Member] | U.S. government and agency securities [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 259 | 239 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 259 | 239 | ||
Defined Benefit Pension Plans [Member] | Level 1 [Member] | Non-U.S. government and agency securities [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 112 | 61 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 112 | 61 | ||
Defined Benefit Pension Plans [Member] | Level 1 [Member] | Municipal bonds [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 0 | 0 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 0 | 0 | ||
Defined Benefit Pension Plans [Member] | Level 1 [Member] | Investment grade corporate bonds [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 0 | 0 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 0 | 0 | ||
Defined Benefit Pension Plans [Member] | Level 1 [Member] | Non-investment grade corporate bonds [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 0 | 0 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 0 | 0 | ||
Defined Benefit Pension Plans [Member] | Level 1 [Member] | Pooled investments [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 0 | 0 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 0 | 0 | ||
Defined Benefit Pension Plans [Member] | Level 1 [Member] | Commingled trust funds [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 0 | 0 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 0 | 0 | ||
Defined Benefit Pension Plans [Member] | Level 1 [Member] | Hedge funds [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 0 | 0 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 0 | 0 | ||
Defined Benefit Pension Plans [Member] | Level 1 [Member] | Other [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 30 | 15 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 30 | 15 | ||
Defined Benefit Pension Plans [Member] | Level 2 [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 2,202 | 1,978 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 2,202 | 1,978 | ||
Defined Benefit Pension Plans [Member] | Level 2 [Member] | Cash and cash equivalents [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 0 | 0 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 0 | 0 | ||
Defined Benefit Pension Plans [Member] | Level 2 [Member] | Insurance Contracts [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 14 | 7 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 14 | 7 | ||
Defined Benefit Pension Plans [Member] | Level 2 [Member] | Domestic equities [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 0 | 0 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 0 | 0 | ||
Defined Benefit Pension Plans [Member] | Level 2 [Member] | International equities [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 0 | 0 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 0 | 0 | ||
Defined Benefit Pension Plans [Member] | Level 2 [Member] | U.S. government and agency securities [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 70 | 19 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 70 | 19 | ||
Defined Benefit Pension Plans [Member] | Level 2 [Member] | Non-U.S. government and agency securities [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 0 | 0 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 0 | 0 | ||
Defined Benefit Pension Plans [Member] | Level 2 [Member] | Municipal bonds [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 23 | 23 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 23 | 23 | ||
Defined Benefit Pension Plans [Member] | Level 2 [Member] | Investment grade corporate bonds [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 1,187 | 1,048 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 1,187 | 1,048 | ||
Defined Benefit Pension Plans [Member] | Level 2 [Member] | Non-investment grade corporate bonds [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 20 | 23 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 20 | 23 | ||
Defined Benefit Pension Plans [Member] | Level 2 [Member] | Pooled investments [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 400 | 457 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 400 | 457 | ||
Defined Benefit Pension Plans [Member] | Level 2 [Member] | Commingled trust funds [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 486 | 391 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 486 | 391 | ||
Defined Benefit Pension Plans [Member] | Level 2 [Member] | Hedge funds [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 0 | 0 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 0 | 0 | ||
Defined Benefit Pension Plans [Member] | Level 2 [Member] | Other [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 2 | 10 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 2 | 10 | ||
Defined Benefit Pension Plans [Member] | Level 3 [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Settlements | -2 | 0 | ||
Fair Value of Plan Assets | ||||
Total | 107 | 76 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at beginning of period | 76 | 104 | ||
Relating to securities still held at end of period | 31 | -4 | ||
Relating to securities disposed of during the period | 7 | 14 | ||
Purchases | 10 | 10 | ||
Sales | -23 | -48 | ||
Settlements | -2 | 0 | ||
Transfers in and/or out of Level 3 | 8 | 0 | ||
Balance at end of period | 107 | 76 | ||
Defined Benefit Pension Plans [Member] | Level 3 [Member] | Cash and cash equivalents [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 0 | 0 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 0 | 0 | ||
Defined Benefit Pension Plans [Member] | Level 3 [Member] | Insurance Contracts [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 0 | 0 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 0 | 0 | ||
Defined Benefit Pension Plans [Member] | Level 3 [Member] | Domestic equities [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 0 | 0 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 0 | 0 | ||
Defined Benefit Pension Plans [Member] | Level 3 [Member] | International equities [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 0 | 0 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 0 | 0 | ||
Defined Benefit Pension Plans [Member] | Level 3 [Member] | U.S. government and agency securities [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 0 | 0 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 0 | 0 | ||
Defined Benefit Pension Plans [Member] | Level 3 [Member] | Non-U.S. government and agency securities [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 0 | 0 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 0 | 0 | ||
Defined Benefit Pension Plans [Member] | Level 3 [Member] | Municipal bonds [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 0 | 0 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 0 | 0 | ||
Defined Benefit Pension Plans [Member] | Level 3 [Member] | Investment grade corporate bonds [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 0 | 0 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 0 | 0 | ||
Defined Benefit Pension Plans [Member] | Level 3 [Member] | Non-investment grade corporate bonds [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 0 | 0 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 0 | 0 | ||
Defined Benefit Pension Plans [Member] | Level 3 [Member] | Pooled investments [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 0 | 0 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 0 | 0 | ||
Defined Benefit Pension Plans [Member] | Level 3 [Member] | Commingled trust funds [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 0 | 0 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | 0 | 0 | ||
Defined Benefit Pension Plans [Member] | Level 3 [Member] | Hedge funds [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Settlements | 0 | 0 | ||
Fair Value of Plan Assets | ||||
Total | 30 | 36 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at beginning of period | 36 | 63 | ||
Relating to securities still held at end of period | 0 | -5 | ||
Relating to securities disposed of during the period | 1 | 10 | ||
Purchases | 1 | 1 | ||
Sales | -8 | -33 | ||
Settlements | 0 | 0 | ||
Transfers in and/or out of Level 3 | 0 | 0 | ||
Balance at end of period | 30 | 36 | ||
Defined Benefit Pension Plans [Member] | Level 3 [Member] | Other [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Settlements | -2 | 0 | ||
Fair Value of Plan Assets | ||||
Total | 77 | 40 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at beginning of period | 40 | 41 | ||
Relating to securities still held at end of period | 31 | 1 | ||
Relating to securities disposed of during the period | 6 | 4 | ||
Purchases | 9 | 9 | ||
Sales | -15 | -15 | ||
Settlements | -2 | 0 | ||
Transfers in and/or out of Level 3 | 8 | 0 | ||
Balance at end of period | 77 | 40 | ||
Other Postretirement Benefit Plans [Member] | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Projected benefit obligation, beginning of year | 126 | |||
Projected benefit obligation, end of year | 104 | 126 | ||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | ||||
Net total in accumulated other comprehensive income | 17 | 3 | ||
Components of Net Periodic Benefit Costs [Abstract] | ||||
Curtailment (gain) loss | -38 | |||
Net periodic benefit costs | 2 | -32 | 6 | |
Defined Benefit Pension Plans, Funded Plans [Member] | ||||
Defined Benefit Plan Plans With Benefit Obligations In Excess Of Plan Assets | ||||
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Projected Benefit Obligation | 390 | |||
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Abstract] | ||||
Defined Benefit Plan, Plans with Benefit Obligations in Excess of Plan Assets, Aggregate Benefit Obligation | 388 | |||
Pension and Other Postretirement Benefit Contributions [Abstract] | ||||
Contributions | 20 | |||
Defined Benefit Pension Plans, Unfunded Plans [Member] | ||||
Defined Benefit Plan Plans With Benefit Obligations In Excess Of Plan Assets | ||||
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Projected Benefit Obligation | 449 | 439 | ||
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Abstract] | ||||
Defined Benefit Plan, Plans with Benefit Obligations in Excess of Plan Assets, Aggregate Benefit Obligation | 442 | 433 | ||
The CW sub-plan [Member] | ||||
Fair Value of Plan Assets | ||||
Total | 20 | 18 | ||
Pension plan fair value, assets measured with unobservable input reconciliation | ||||
Balance at end of period | $20 | $18 |
Benefit_Plans_2_Details
Benefit Plans 2 (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Multiemployer Plans, Pension [Member] | |||
Multiemployer Plans [Line Items] | |||
Multiemployer Plan, Period Contributions | $125 | $113 | $93 |
Multiemployer Plans, Funded Status | At least 80 percent | ||
Multiemployer Plans Health and Welfare Benefits [Member] | |||
Multiemployer Plans [Line Items] | |||
Multiemployer Plan, Period Contributions | 213 | 193 | 167 |
Radio Television & Recording Artists Pension Plan [Member] | Home Box Office [Member] | |||
Multiemployer Plans [Line Items] | |||
Multiemployer Plans, Funded Status | Less than 65 percent | ||
Multiemployer Plans, Minimum Contribution | 0 | ||
Radio Television & Recording Artists Pension Plan [Member] | Home Box Office [Member] | Scenario Hypothetical [Member] | |||
Multiemployer Plans [Line Items] | |||
Multiemployer Plans, Withdrawal Obligation | 25 | ||
Radio Television & Recording Artists Pension Plan [Member] | Home Box Office [Member] | Maximum [Member] | |||
Multiemployer Plans [Line Items] | |||
Multiemployer Plan, Period Contributions | $1 | $1 | $1 |
Radio Television & Recording Artists Pension Plan [Member] | Home Box Office [Member] | Minimum [Member] | |||
Multiemployer Plans [Line Items] | |||
Multiemployer Plans, Collective-Bargaining Arrangement, Percentage of Contributions | 5.00% |
Restructuring_and_Severance_Co2
Restructuring and Severance Costs (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring and Related Costs [Line Items] | |||
Total restructuring and severance costs | $512 | $183 | $92 |
Restructuring Reserve [Roll Forward] | |||
Remaining liability, beginning balance | 186 | 99 | 92 |
Net accruals | 512 | 183 | 92 |
Noncash reductions | -3 | -1 | -1 |
Cash paid | -161 | -95 | -84 |
Remaining liability, ending balance | 534 | 186 | 99 |
Restructuring Reserve [Abstract] | |||
Restructuring reserve, current | 392 | ||
Restructuring reserve, noncurrent | 142 | ||
Corporate [Member] | |||
Restructuring and Related Costs [Line Items] | |||
Total restructuring and severance costs | 31 | 2 | 2 |
Restructuring Reserve [Roll Forward] | |||
Net accruals | 31 | 2 | 2 |
2014 activity [Member] | |||
Restructuring and Related Costs [Line Items] | |||
Total restructuring and severance costs | 506 | 0 | 0 |
Restructuring Reserve [Roll Forward] | |||
Net accruals | 506 | 0 | 0 |
2014 activity [Member] | Corporate [Member] | |||
Restructuring and Related Costs [Line Items] | |||
Total restructuring and severance costs | 31 | ||
Restructuring Reserve [Roll Forward] | |||
Net accruals | 31 | ||
2013 restructuring activity [Member] | |||
Restructuring and Related Costs [Line Items] | |||
Total restructuring and severance costs | 4 | 173 | 0 |
Restructuring Reserve [Roll Forward] | |||
Net accruals | 4 | 173 | 0 |
2013 restructuring activity [Member] | Corporate [Member] | |||
Restructuring and Related Costs [Line Items] | |||
Total restructuring and severance costs | 5 | ||
Restructuring Reserve [Roll Forward] | |||
Net accruals | 5 | ||
2012 and prior restructuring activity [Member] | |||
Restructuring and Related Costs [Line Items] | |||
Total restructuring and severance costs | 2 | 10 | 92 |
Restructuring Reserve [Roll Forward] | |||
Net accruals | 2 | 10 | 92 |
2012 and prior restructuring activity [Member] | Corporate [Member] | |||
Restructuring and Related Costs [Line Items] | |||
Total restructuring and severance costs | -3 | 2 | |
Restructuring Reserve [Roll Forward] | |||
Net accruals | -3 | 2 | |
Employee Terminations [Member] | |||
Restructuring and Related Costs [Line Items] | |||
Total restructuring and severance costs | 499 | 174 | 84 |
Restructuring Reserve [Roll Forward] | |||
Remaining liability, beginning balance | 180 | 93 | 84 |
Net accruals | 499 | 174 | 84 |
Noncash reductions | -3 | -1 | -1 |
Cash paid | -151 | -86 | -74 |
Remaining liability, ending balance | 525 | 180 | 93 |
Other Exit Costs [Member] | |||
Restructuring and Related Costs [Line Items] | |||
Total restructuring and severance costs | 13 | 9 | 8 |
Restructuring Reserve [Roll Forward] | |||
Remaining liability, beginning balance | 6 | 6 | 8 |
Net accruals | 13 | 9 | 8 |
Noncash reductions | 0 | 0 | 0 |
Cash paid | -10 | -9 | -10 |
Remaining liability, ending balance | 9 | 6 | 6 |
Turner [Member] | Operating Segments [Member] | |||
Restructuring and Related Costs [Line Items] | |||
Total restructuring and severance costs | 249 | 93 | 52 |
Restructuring Reserve [Roll Forward] | |||
Net accruals | 249 | 93 | 52 |
Turner [Member] | 2014 activity [Member] | Operating Segments [Member] | |||
Restructuring and Related Costs [Line Items] | |||
Total restructuring and severance costs | 246 | ||
Restructuring Reserve [Roll Forward] | |||
Net accruals | 246 | ||
Turner [Member] | 2013 restructuring activity [Member] | Operating Segments [Member] | |||
Restructuring and Related Costs [Line Items] | |||
Total restructuring and severance costs | 2 | 87 | |
Restructuring Reserve [Roll Forward] | |||
Net accruals | 2 | 87 | |
Turner [Member] | 2012 and prior restructuring activity [Member] | Operating Segments [Member] | |||
Restructuring and Related Costs [Line Items] | |||
Total restructuring and severance costs | 1 | 6 | 52 |
Restructuring Reserve [Roll Forward] | |||
Net accruals | 1 | 6 | 52 |
Home Box Office [Member] | Operating Segments [Member] | |||
Restructuring and Related Costs [Line Items] | |||
Total restructuring and severance costs | 63 | 39 | 15 |
Restructuring Reserve [Roll Forward] | |||
Net accruals | 63 | 39 | 15 |
Home Box Office [Member] | 2014 activity [Member] | Operating Segments [Member] | |||
Restructuring and Related Costs [Line Items] | |||
Total restructuring and severance costs | 64 | ||
Restructuring Reserve [Roll Forward] | |||
Net accruals | 64 | ||
Home Box Office [Member] | 2013 restructuring activity [Member] | Operating Segments [Member] | |||
Restructuring and Related Costs [Line Items] | |||
Total restructuring and severance costs | 39 | ||
Restructuring Reserve [Roll Forward] | |||
Net accruals | 39 | ||
Home Box Office [Member] | 2012 and prior restructuring activity [Member] | Operating Segments [Member] | |||
Restructuring and Related Costs [Line Items] | |||
Total restructuring and severance costs | -1 | 15 | |
Restructuring Reserve [Roll Forward] | |||
Net accruals | -1 | 15 | |
Warner Bros. [Member] | Operating Segments [Member] | |||
Restructuring and Related Costs [Line Items] | |||
Total restructuring and severance costs | 169 | 49 | 23 |
Restructuring Reserve [Roll Forward] | |||
Net accruals | 169 | 49 | 23 |
Warner Bros. [Member] | 2014 activity [Member] | Operating Segments [Member] | |||
Restructuring and Related Costs [Line Items] | |||
Total restructuring and severance costs | 165 | ||
Restructuring Reserve [Roll Forward] | |||
Net accruals | 165 | ||
Warner Bros. [Member] | 2013 restructuring activity [Member] | Operating Segments [Member] | |||
Restructuring and Related Costs [Line Items] | |||
Total restructuring and severance costs | 2 | 42 | |
Restructuring Reserve [Roll Forward] | |||
Net accruals | 2 | 42 | |
Warner Bros. [Member] | 2012 and prior restructuring activity [Member] | Operating Segments [Member] | |||
Restructuring and Related Costs [Line Items] | |||
Total restructuring and severance costs | 2 | 7 | 23 |
Restructuring Reserve [Roll Forward] | |||
Net accruals | $2 | $7 | $23 |
Segment_Information_Details
Segment Information (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
segments | |||
Revenues: | |||
Subscription | $9,945 | $9,250 | $8,787 |
Advertising | 4,502 | 4,530 | 4,316 |
Content | 12,350 | 12,154 | 11,741 |
Other | 562 | 527 | 481 |
Total revenues | 27,359 | 26,461 | 25,325 |
Total depreciation of property, plant and equipment | -531 | -550 | -553 |
Total amortization of intangible assets | -202 | -209 | -212 |
Total operating income (loss) | 5,975 | 6,268 | 5,498 |
Total assets | 63,259 | 67,999 | |
Total capital expenditures | 474 | 568 | 609 |
Number of Reportable Segments | 3 | ||
Segments, Geographical Areas [Abstract] | |||
Percent of Long Lived Hard Assets Located in Foreign Countries | 1.00% | ||
Percent of Europe revenues in Euro Zone | 48.00% | 48.00% | 49.00% |
Discontinued Operations [Member] | |||
Revenues: | |||
Total assets | 0 | 5,746 | |
Intersegment eliminations [Member] | |||
Revenues: | |||
Total revenues | -961 | -724 | -906 |
Total operating income (loss) | 149 | 61 | -97 |
Corporate [Member] | |||
Revenues: | |||
Total depreciation of property, plant and equipment | -27 | -28 | -28 |
Total operating income (loss) | -73 | -394 | -352 |
Total assets | 3,560 | 2,433 | |
Total capital expenditures | 37 | 77 | 45 |
United States And Canada [Member] | |||
Revenues: | |||
Total revenues | 19,102 | 18,642 | 17,936 |
Europe [Member] | |||
Revenues: | |||
Total revenues | 4,684 | 4,494 | 4,250 |
Asia Pacific [Member] | |||
Revenues: | |||
Total revenues | 1,711 | 1,629 | 1,605 |
Latin America [Member] | |||
Revenues: | |||
Total revenues | 1,575 | 1,475 | 1,288 |
All Other [Member] | |||
Revenues: | |||
Total revenues | 287 | 221 | 246 |
Turner [Member] | Operating Segments [Member] | |||
Revenues: | |||
Total revenues | 10,396 | 9,983 | 9,527 |
Total depreciation of property, plant and equipment | -209 | -231 | -238 |
Total amortization of intangible assets | -16 | -21 | -25 |
Total operating income (loss) | 2,954 | 3,486 | 3,172 |
Total assets | 25,271 | 26,067 | |
Total capital expenditures | 173 | 210 | 229 |
Turner [Member] | Intersegment eliminations [Member] | |||
Revenues: | |||
Total revenues | -101 | -85 | -80 |
Home Box Office [Member] | Operating Segments [Member] | |||
Revenues: | |||
Total revenues | 5,398 | 4,890 | 4,686 |
Total depreciation of property, plant and equipment | -77 | -91 | -85 |
Total amortization of intangible assets | -14 | -9 | -7 |
Total operating income (loss) | 1,786 | 1,791 | 1,547 |
Total assets | 13,869 | 13,687 | |
Total capital expenditures | 58 | 45 | 65 |
Home Box Office [Member] | Intersegment eliminations [Member] | |||
Revenues: | |||
Total revenues | -36 | -14 | -14 |
Warner Bros. [Member] | Operating Segments [Member] | |||
Revenues: | |||
Total revenues | 12,526 | 12,312 | 12,018 |
Total depreciation of property, plant and equipment | -218 | -200 | -202 |
Total amortization of intangible assets | -172 | -179 | -180 |
Total operating income (loss) | 1,159 | 1,324 | 1,228 |
Total assets | 20,559 | 20,066 | |
Total capital expenditures | 206 | 236 | 270 |
Warner Bros. [Member] | Intersegment eliminations [Member] | |||
Revenues: | |||
Total revenues | ($824) | ($625) | ($812) |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Other Commitments [Abstract] | |||
Operating Leases, Rent Expense | $358,000,000 | $316,000,000 | $319,000,000 |
Operating Leases, Sublease Revenue | 33,000,000 | 41,000,000 | 40,000,000 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2015 | 317,000,000 | ||
2016 | 309,000,000 | ||
2017 | 284,000,000 | ||
2018 | 259,000,000 | ||
2019 | 125,000,000 | ||
Thereafter | 186,000,000 | ||
Total | 1,480,000,000 | ||
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals | 29,000,000 | ||
Other Commitments [Line Items] | |||
2015 | 168,000,000 | ||
2016-2017 | 790,000,000 | ||
2018-2019 | 97,000,000 | ||
Thereafter | 1,298,000,000 | ||
Total Contingent Commitment | 2,353,000,000 | ||
Programming Licensing Backlog [Abstract] | |||
Backlog | 6,500,000,000 | 5,500,000,000 | |
Intercompany backlog - Warner Bros. segment to Home Box Office segment | 788,000,000 | 749,000,000 | |
Intercompany backlog - Warner Bros. segment to Turner segment | 700,000,000 | 477,000,000 | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |||
2015 | 5,207,000,000 | ||
2016 | 3,660,000,000 | ||
2017 | 3,626,000,000 | ||
2018 | 3,379,000,000 | ||
2019 | 3,148,000,000 | ||
Thereafter | 14,557,000,000 | ||
Total | 33,577,000,000 | ||
Maximum [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Range Of Possible Loss Portion Not Accrued | 130,000,000 | ||
Minimum [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Range Of Possible Loss Portion Not Accrued | 0 | ||
Financial Guarantee [Member] | |||
Other Commitments [Line Items] | |||
2015 | 131,000,000 | ||
2016-2017 | 589,000,000 | ||
2018-2019 | 85,000,000 | ||
Thereafter | 731,000,000 | ||
Total Contingent Commitment | 1,536,000,000 | ||
Six Flags [Member] | |||
Other Commitments [Line Items] | |||
Six Flags, net present value | 418,000,000 | ||
Six Flags, guarantee payments made | 0 | ||
Six Flags, guarantor obligations, current carrying value | 0 | ||
Six Flags [Member] | Financial Guarantee [Member] | |||
Other Commitments [Line Items] | |||
Total Contingent Commitment | 935,000,000 | ||
Letters Of Credit And Other Contingent Commitments [Member] | |||
Other Commitments [Line Items] | |||
2015 | 37,000,000 | ||
2016-2017 | 201,000,000 | ||
2018-2019 | 12,000,000 | ||
Thereafter | 567,000,000 | ||
Total Contingent Commitment | $817,000,000 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (Equity Method Investee [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Equity Method Investee [Member] | |||
Related Party Transaction [Line Items] | |||
Revenues | $404 | $464 | $498 |
Expenses | -8 | -35 | -60 |
Receivables due from related parties | 166 | 185 | |
Interest income | 51 | 0 | 0 |
Other, net | $16 | $8 | $0 |
Additional_Financial_Informati2
Additional Financial Information (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows [Abstract] | |||
Cash payments made for interest | ($1,274) | ($1,202) | ($1,262) |
Interest income received | 50 | 44 | 42 |
Cash interest payments, net | -1,224 | -1,158 | -1,220 |
Cash payments made for income taxes | -1,602 | -1,174 | -1,261 |
Income tax refunds received | 108 | 87 | 78 |
TWC tax sharing payments, net | 0 | 0 | -6 |
Cash tax payments, net | -1,494 | -1,087 | -1,189 |
Interest Expense, Net [Abstract] | |||
Interest income | 184 | 92 | 107 |
Interest expense | -1,353 | -1,281 | -1,358 |
Total interest expense, net | -1,169 | -1,189 | -1,251 |
Other Income (Loss), Net [Abstract] | |||
Investment gains (losses), net | 30 | 61 | -30 |
Loss on equity method investees | -153 | -150 | -180 |
Other | -4 | -22 | -4 |
Total other income (loss), net | -127 | -111 | -214 |
Accounts Payable and Accrued Liabilities [Abstract] | |||
Accounts payable | 574 | 505 | |
Accrued expenses | 2,173 | 1,724 | |
Participations payable | 2,551 | 2,302 | |
Programming costs payable | 722 | 705 | |
Accrued compensation | 1,034 | 1,047 | |
Accrued interest | 303 | 313 | |
Accrued income taxes | 150 | 158 | |
Total accounts payable and accrued liabilities | 7,507 | 6,754 | |
Other Noncurrent Liabilities [Abstract] | |||
Noncurrent tax and interest reserves | 1,520 | 2,540 | |
Participations payable | 1,076 | 1,078 | |
Programming costs payable | 959 | 1,076 | |
Noncurrent pension and post retirement liabilities | 928 | 696 | |
Deferred compensation | 491 | 542 | |
Other noncurrent liabilities | 710 | 392 | |
Total other noncurrent liabilities | $5,684 | $6,324 |
Supplementary_Information_Cond1
Supplementary Information - Condensed Consolidating Financial Statements - Balance Sheet (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Current assets | ||||
Cash and equivalents | $2,618 | $1,816 | $2,760 | $3,381 |
Receivables, net | 7,720 | 7,305 | ||
Inventories | 1,700 | 1,648 | ||
Deferred income taxes | 184 | 369 | ||
Prepaid expenses and other current assets | 958 | 559 | ||
Current assets of discontinued operations | 0 | 834 | ||
Total current assets | 13,180 | 12,531 | ||
Noncurrent inventories and theatrical film and television production costs | 6,841 | 7,016 | ||
Investments in amounts due to and from consolidated subsidiaries | 0 | 0 | ||
Investments, including available-for-sale securities | 2,326 | 2,009 | ||
Property, plant and equipment, net | 2,655 | 3,291 | ||
Intangible assets subject to amortization, net | 1,141 | 1,338 | ||
Intangible assets not subject to amortization | 7,032 | 7,043 | ||
Goodwill | 27,565 | 27,401 | 27,296 | |
Other assets | 2,519 | 2,458 | ||
Noncurrent assets of discontinued operations | 0 | 4,912 | ||
Total assets | 63,259 | 67,999 | ||
Current liabilities | ||||
Accounts payable and accrued liabilities | 7,507 | 6,754 | ||
Deferred revenue | 579 | 542 | ||
Debt due within one year | 1,118 | 66 | ||
Current liabilities of discontinued operations | 0 | 1,026 | ||
Total current liabilities | 9,204 | 8,388 | ||
Long-term debt | 21,376 | 20,061 | ||
Due to (from) affiliates | 0 | |||
Deferred income taxes | 2,204 | 2,287 | ||
Deferred revenue | 315 | 351 | ||
Other noncurrent liabilities | 5,684 | 6,324 | ||
Noncurrent liabilities of discontinued operations | 0 | 684 | ||
Equity | ||||
Due to (from) Time Warner Inc. and subsidiaries | 0 | 0 | ||
Other shareholders' equity | 24,476 | 29,904 | ||
Total Time Warner Inc. shareholders' equity | 24,476 | 29,904 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 24,476 | 29,904 | 29,797 | 29,954 |
Total liabilities and equity | 63,259 | 67,999 | ||
Eliminations [Member] | ||||
Current assets | ||||
Cash and equivalents | 0 | 0 | 0 | 0 |
Receivables, net | -7 | -10 | ||
Inventories | 0 | 0 | ||
Deferred income taxes | -49 | 2 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Current assets of discontinued operations | -155 | |||
Total current assets | -56 | -163 | ||
Noncurrent inventories and theatrical film and television production costs | -85 | -81 | ||
Investments in amounts due to and from consolidated subsidiaries | -68,109 | -82,085 | ||
Investments, including available-for-sale securities | 0 | 0 | ||
Property, plant and equipment, net | 0 | 0 | ||
Intangible assets subject to amortization, net | 0 | 0 | ||
Intangible assets not subject to amortization | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other assets | 0 | 0 | ||
Noncurrent assets of discontinued operations | 0 | |||
Total assets | -68,250 | -82,329 | ||
Current liabilities | ||||
Accounts payable and accrued liabilities | -180 | -59 | ||
Deferred revenue | -27 | -10 | ||
Debt due within one year | 0 | 0 | ||
Current liabilities of discontinued operations | -1 | |||
Total current liabilities | -207 | -70 | ||
Long-term debt | 0 | 0 | ||
Due to (from) affiliates | 0 | |||
Deferred income taxes | -4,283 | -4,682 | ||
Deferred revenue | -24 | -33 | ||
Other noncurrent liabilities | -1,062 | -1,624 | ||
Noncurrent liabilities of discontinued operations | -816 | |||
Equity | ||||
Due to (from) Time Warner Inc. and subsidiaries | 36,358 | 27,342 | ||
Other shareholders' equity | -99,032 | -102,446 | ||
Total Time Warner Inc. shareholders' equity | -62,674 | -75,104 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | -62,674 | -75,104 | ||
Total liabilities and equity | -68,250 | -82,329 | ||
Parent Company [Member] | ||||
Current assets | ||||
Cash and equivalents | 1,623 | 1,039 | 1,861 | 2,578 |
Receivables, net | 93 | 73 | ||
Inventories | 0 | 0 | ||
Deferred income taxes | 184 | 369 | ||
Prepaid expenses and other current assets | 360 | 103 | ||
Current assets of discontinued operations | 79 | |||
Total current assets | 2,260 | 1,663 | ||
Noncurrent inventories and theatrical film and television production costs | 0 | 0 | ||
Investments in amounts due to and from consolidated subsidiaries | 44,407 | 48,549 | ||
Investments, including available-for-sale securities | 186 | 130 | ||
Property, plant and equipment, net | 73 | 373 | ||
Intangible assets subject to amortization, net | 0 | 0 | ||
Intangible assets not subject to amortization | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other assets | 429 | 322 | ||
Noncurrent assets of discontinued operations | 0 | |||
Total assets | 47,355 | 51,037 | ||
Current liabilities | ||||
Accounts payable and accrued liabilities | 744 | 618 | ||
Deferred revenue | 0 | 0 | ||
Debt due within one year | 1,100 | 48 | ||
Current liabilities of discontinued operations | 1 | |||
Total current liabilities | 1,844 | 667 | ||
Long-term debt | 17,108 | 16,046 | ||
Due to (from) affiliates | -900 | |||
Deferred income taxes | 2,204 | 2,287 | ||
Deferred revenue | 0 | 0 | ||
Other noncurrent liabilities | 1,723 | 2,657 | ||
Noncurrent liabilities of discontinued operations | 376 | |||
Equity | ||||
Due to (from) Time Warner Inc. and subsidiaries | 0 | 0 | ||
Other shareholders' equity | 24,476 | 29,904 | ||
Total Time Warner Inc. shareholders' equity | 24,476 | 29,904 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 24,476 | 29,904 | ||
Total liabilities and equity | 47,355 | 51,037 | ||
Guarantor Subsidiaries [Member] | ||||
Current assets | ||||
Cash and equivalents | 290 | 148 | 295 | 164 |
Receivables, net | 996 | 901 | ||
Inventories | 453 | 383 | ||
Deferred income taxes | 42 | 50 | ||
Prepaid expenses and other current assets | 120 | 84 | ||
Current assets of discontinued operations | 78 | |||
Total current assets | 1,901 | 1,644 | ||
Noncurrent inventories and theatrical film and television production costs | 1,744 | 1,726 | ||
Investments in amounts due to and from consolidated subsidiaries | 11,333 | 21,248 | ||
Investments, including available-for-sale securities | 417 | 460 | ||
Property, plant and equipment, net | 377 | 377 | ||
Intangible assets subject to amortization, net | 0 | 0 | ||
Intangible assets not subject to amortization | 2,007 | 2,007 | ||
Goodwill | 9,880 | 9,879 | ||
Other assets | 156 | 194 | ||
Noncurrent assets of discontinued operations | 0 | |||
Total assets | 27,815 | 37,535 | ||
Current liabilities | ||||
Accounts payable and accrued liabilities | 953 | 770 | ||
Deferred revenue | 57 | 28 | ||
Debt due within one year | 9 | 9 | ||
Current liabilities of discontinued operations | 0 | |||
Total current liabilities | 1,019 | 807 | ||
Long-term debt | 4,006 | 4,001 | ||
Due to (from) affiliates | 0 | |||
Deferred income taxes | 2,443 | 2,666 | ||
Deferred revenue | 17 | 36 | ||
Other noncurrent liabilities | 1,844 | 1,939 | ||
Noncurrent liabilities of discontinued operations | 411 | |||
Equity | ||||
Due to (from) Time Warner Inc. and subsidiaries | -43,026 | -33,497 | ||
Other shareholders' equity | 61,512 | 61,172 | ||
Total Time Warner Inc. shareholders' equity | 18,486 | 27,675 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 18,486 | 27,675 | ||
Total liabilities and equity | 27,815 | 37,535 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Current assets | ||||
Cash and equivalents | 705 | 629 | 604 | 639 |
Receivables, net | 6,638 | 6,341 | ||
Inventories | 1,247 | 1,265 | ||
Deferred income taxes | 7 | -52 | ||
Prepaid expenses and other current assets | 478 | 372 | ||
Current assets of discontinued operations | 832 | |||
Total current assets | 9,075 | 9,387 | ||
Noncurrent inventories and theatrical film and television production costs | 5,182 | 5,371 | ||
Investments in amounts due to and from consolidated subsidiaries | 12,369 | 12,288 | ||
Investments, including available-for-sale securities | 1,723 | 1,419 | ||
Property, plant and equipment, net | 2,205 | 2,541 | ||
Intangible assets subject to amortization, net | 1,141 | 1,338 | ||
Intangible assets not subject to amortization | 5,025 | 5,036 | ||
Goodwill | 17,685 | 17,522 | ||
Other assets | 1,934 | 1,942 | ||
Noncurrent assets of discontinued operations | 4,912 | |||
Total assets | 56,339 | 61,756 | ||
Current liabilities | ||||
Accounts payable and accrued liabilities | 5,990 | 5,425 | ||
Deferred revenue | 549 | 524 | ||
Debt due within one year | 9 | 9 | ||
Current liabilities of discontinued operations | 1,026 | |||
Total current liabilities | 6,548 | 6,984 | ||
Long-term debt | 262 | 14 | ||
Due to (from) affiliates | 900 | |||
Deferred income taxes | 1,840 | 2,016 | ||
Deferred revenue | 322 | 348 | ||
Other noncurrent liabilities | 3,179 | 3,352 | ||
Noncurrent liabilities of discontinued operations | 713 | |||
Equity | ||||
Due to (from) Time Warner Inc. and subsidiaries | 6,668 | 6,155 | ||
Other shareholders' equity | 37,520 | 41,274 | ||
Total Time Warner Inc. shareholders' equity | 44,188 | 47,429 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 44,188 | 47,429 | ||
Total liabilities and equity | $56,339 | $61,756 |
Supplementary_Information_Cond2
Supplementary Information - Condensed Consolidating Financial Statements - Statement of Operations (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statement of Operations | |||
Revenues | $27,359 | $26,461 | $25,325 |
Costs of revenues | -15,875 | -14,935 | -14,575 |
Selling, general and administrative | -5,190 | -4,934 | -4,813 |
Amortization of intangible assets | -202 | -209 | -212 |
Restructuring and severance costs | -512 | -183 | -92 |
Asset impairments | -69 | -61 | -180 |
Gain (loss) on operating assets, net | 464 | 129 | 45 |
Operating income | 5,975 | 6,268 | 5,498 |
Equity in pretax income (loss) of consolidated subsidiaries | 0 | 0 | 0 |
Interest expense, net | -1,169 | -1,189 | -1,251 |
Other income (loss), net | -127 | -111 | -214 |
Income from continuing operations before income taxes | 4,679 | 4,968 | 4,033 |
Income tax (provision) benefit | -785 | -1,614 | -1,370 |
Income from continuing operations | 3,894 | 3,354 | 2,663 |
Discontinued operations, net of tax | -67 | 337 | 259 |
Net income | 3,827 | 3,691 | 2,922 |
Less Net loss attributable to noncontrolling interests | 0 | 0 | 3 |
Net income attributable to Time Warner Inc. shareholders | 3,827 | 3,691 | 2,925 |
Comprehensive income | 3,411 | 3,828 | 2,798 |
Less Comprehensive loss attributable to noncontrolling interests | 0 | 0 | 3 |
Comprehensive income attributable to Time Warner Inc. shareholders | 3,411 | 3,828 | 2,801 |
Eliminations [Member] | |||
Consolidated Statement of Operations | |||
Revenues | -734 | -551 | -548 |
Costs of revenues | 643 | 441 | 449 |
Selling, general and administrative | 90 | 104 | 89 |
Amortization of intangible assets | 0 | 0 | 0 |
Restructuring and severance costs | 0 | 0 | 0 |
Asset impairments | 0 | 0 | 0 |
Gain (loss) on operating assets, net | 0 | 0 | 0 |
Operating income | -1 | -6 | -10 |
Equity in pretax income (loss) of consolidated subsidiaries | -11,721 | -12,411 | -10,378 |
Interest expense, net | 9 | 10 | 11 |
Other income (loss), net | -2 | 1 | -2 |
Income from continuing operations before income taxes | -11,715 | -12,406 | -10,379 |
Income tax (provision) benefit | 3,529 | 4,121 | 3,461 |
Income from continuing operations | -8,186 | -8,285 | -6,918 |
Discontinued operations, net of tax | 103 | -667 | -508 |
Net income | -8,083 | -8,952 | -7,426 |
Less Net loss attributable to noncontrolling interests | 0 | 0 | -5 |
Net income attributable to Time Warner Inc. shareholders | -8,083 | -8,952 | -7,431 |
Comprehensive income | -7,502 | -9,005 | -7,224 |
Less Comprehensive loss attributable to noncontrolling interests | 0 | 0 | -5 |
Comprehensive income attributable to Time Warner Inc. shareholders | -7,502 | -9,005 | -7,229 |
Parent Company [Member] | |||
Consolidated Statement of Operations | |||
Revenues | 0 | 0 | 0 |
Costs of revenues | 0 | 0 | 0 |
Selling, general and administrative | -442 | -406 | -341 |
Amortization of intangible assets | 0 | 0 | 0 |
Restructuring and severance costs | -21 | -5 | -2 |
Asset impairments | -7 | -7 | 0 |
Gain (loss) on operating assets, net | 0 | 8 | 10 |
Operating income | -470 | -410 | -333 |
Equity in pretax income (loss) of consolidated subsidiaries | 6,131 | 6,319 | 5,272 |
Interest expense, net | -961 | -885 | -888 |
Other income (loss), net | -21 | -56 | -18 |
Income from continuing operations before income taxes | 4,679 | 4,968 | 4,033 |
Income tax (provision) benefit | -785 | -1,614 | -1,370 |
Income from continuing operations | 3,894 | 3,354 | 2,663 |
Discontinued operations, net of tax | -67 | 337 | 259 |
Net income | 3,827 | 3,691 | 2,922 |
Less Net loss attributable to noncontrolling interests | 0 | 0 | 3 |
Net income attributable to Time Warner Inc. shareholders | 3,827 | 3,691 | 2,925 |
Comprehensive income | 3,411 | 3,828 | 2,798 |
Less Comprehensive loss attributable to noncontrolling interests | 0 | 0 | 3 |
Comprehensive income attributable to Time Warner Inc. shareholders | 3,411 | 3,828 | 2,801 |
Guarantor Subsidiaries [Member] | |||
Consolidated Statement of Operations | |||
Revenues | 6,820 | 6,380 | 6,107 |
Costs of revenues | -3,471 | -3,032 | -3,002 |
Selling, general and administrative | -982 | -956 | -935 |
Amortization of intangible assets | 0 | 0 | 0 |
Restructuring and severance costs | -173 | -67 | -34 |
Asset impairments | -1 | 0 | 1 |
Gain (loss) on operating assets, net | 0 | 0 | 34 |
Operating income | 2,193 | 2,325 | 2,171 |
Equity in pretax income (loss) of consolidated subsidiaries | 3,831 | 4,428 | 3,597 |
Interest expense, net | -274 | -325 | -371 |
Other income (loss), net | 15 | 1 | 14 |
Income from continuing operations before income taxes | 5,765 | 6,429 | 5,411 |
Income tax (provision) benefit | -1,793 | -2,095 | -1,740 |
Income from continuing operations | 3,972 | 4,334 | 3,671 |
Discontinued operations, net of tax | -42 | 333 | 254 |
Net income | 3,930 | 4,667 | 3,925 |
Less Net loss attributable to noncontrolling interests | 0 | 0 | 3 |
Net income attributable to Time Warner Inc. shareholders | 3,930 | 4,667 | 3,928 |
Comprehensive income | 3,612 | 4,774 | 3,753 |
Less Comprehensive loss attributable to noncontrolling interests | 0 | 0 | 3 |
Comprehensive income attributable to Time Warner Inc. shareholders | 3,612 | 4,774 | 3,756 |
Non-Guarantor Subsidiaries [Member] | |||
Consolidated Statement of Operations | |||
Revenues | 21,273 | 20,632 | 19,766 |
Costs of revenues | -13,047 | -12,344 | -12,022 |
Selling, general and administrative | -3,856 | -3,676 | -3,626 |
Amortization of intangible assets | -202 | -209 | -212 |
Restructuring and severance costs | -318 | -111 | -56 |
Asset impairments | -61 | -54 | -181 |
Gain (loss) on operating assets, net | 464 | 121 | 1 |
Operating income | 4,253 | 4,359 | 3,670 |
Equity in pretax income (loss) of consolidated subsidiaries | 1,759 | 1,664 | 1,509 |
Interest expense, net | 57 | 11 | -3 |
Other income (loss), net | -119 | -57 | -208 |
Income from continuing operations before income taxes | 5,950 | 5,977 | 4,968 |
Income tax (provision) benefit | -1,736 | -2,026 | -1,721 |
Income from continuing operations | 4,214 | 3,951 | 3,247 |
Discontinued operations, net of tax | -61 | 334 | 254 |
Net income | 4,153 | 4,285 | 3,501 |
Less Net loss attributable to noncontrolling interests | 0 | 0 | 2 |
Net income attributable to Time Warner Inc. shareholders | 4,153 | 4,285 | 3,503 |
Comprehensive income | 3,890 | 4,231 | 3,471 |
Less Comprehensive loss attributable to noncontrolling interests | 0 | 0 | 2 |
Comprehensive income attributable to Time Warner Inc. shareholders | $3,890 | $4,231 | $3,473 |
Supplementary_Information_Cond3
Supplementary Information - Condensed Consolidating Financial Statements - Statement of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATIONS | |||
Net income | $3,827 | $3,691 | $2,922 |
Less Discontinued operations, net of tax | 67 | -337 | -259 |
Net income from continuing operations | 3,894 | 3,354 | 2,663 |
Adjustments for noncash and nonoperating items: | |||
Depreciation and amortization | 733 | 759 | 765 |
Amortization of film and television costs | 8,040 | 7,262 | 7,210 |
Asset impairments | 69 | 61 | 180 |
Venezuelan foreign currency loss | 173 | 0 | 0 |
(Gain) loss on investments and other assets, net | -464 | -65 | -10 |
Excess (deficiency) of distributions over equity in pretax income of consolidated subsidiaries, net of cash distributions | 0 | 0 | 0 |
Equity in losses of investee companies, net of cash distributions | 232 | 216 | 221 |
Equity-based compensation | 219 | 238 | 195 |
Deferred income taxes | 166 | 759 | -161 |
Changes in operating assets and liabilities, net of acquisitions | -9,381 | -9,326 | -8,076 |
Intercompany | 0 | 0 | 0 |
Cash provided by operations from continuing operations | 3,681 | 3,258 | 2,987 |
INVESTING ACTIVITIES | |||
Investments in available-for-sale securities | -30 | -27 | -37 |
Investments and acquisitions, net of cash acquired | -950 | -495 | -660 |
Capital expenditures | -474 | -568 | -609 |
Investment proceeds from available-for-sale securities | 25 | 33 | 1 |
Proceeds from Time Inc. in the Time Separation | 1,400 | 0 | 0 |
Proceeds from the sale of Time Warner Center | 1,264 | 0 | 0 |
Advances to (from) parent and consolidated subsidiaries | 0 | 0 | 0 |
Other investment proceeds | 148 | 170 | 85 |
Cash provided (used) by investing activities from continuing operations | 1,383 | -887 | -1,220 |
FINANCING ACTIVITIES | |||
Borrowings | 2,409 | 1,028 | 1,039 |
Debt repayments | -72 | -762 | -686 |
Proceeds from exercise of stock options | 338 | 674 | 1,107 |
Excess tax benefit from equity instruments | 179 | 179 | 83 |
Principal payments on capital leases | -11 | -9 | -11 |
Repurchases of common stock | -5,504 | -3,708 | -3,272 |
Dividends paid | -1,109 | -1,074 | -1,011 |
Other financing activities | -173 | -111 | -80 |
Change in due to/from parent and investment in segment | 0 | 0 | 0 |
Cash provided (used) by financing activities from continuing operations | -3,943 | -3,783 | -2,831 |
Cash provided (used) by continuing operations | 1,121 | -1,412 | -1,064 |
Cash provided (used) by operations from discontinued operations | -16 | 456 | 455 |
Cash provided (used) by investing activities from discontinued operations | -51 | -23 | -26 |
Cash provided (used) by financing activities from discontinued operations | -36 | 0 | 0 |
Effect of change in cash and equivalents of discontinued operations | -87 | 35 | 14 |
Cash provided (used) by discontinued operations | -190 | 468 | 443 |
Effect of Venezuelan exchange rate changes on cash and equivalents | -129 | 0 | 0 |
INCREASE (DECREASE) IN CASH AND EQUIVALENTS | 802 | -944 | -621 |
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD | 1,816 | 2,760 | 3,381 |
CASH AND EQUIVALENTS AT END OF PERIOD | 2,618 | 1,816 | 2,760 |
Eliminations [Member] | |||
OPERATIONS | |||
Net income | -8,083 | -8,952 | -7,426 |
Less Discontinued operations, net of tax | -103 | 667 | 508 |
Net income from continuing operations | -8,186 | -8,285 | -6,918 |
Adjustments for noncash and nonoperating items: | |||
Depreciation and amortization | 0 | 0 | 0 |
Amortization of film and television costs | -43 | -37 | -27 |
Asset impairments | 0 | 0 | 0 |
Venezuelan foreign currency loss | 0 | ||
(Gain) loss on investments and other assets, net | 0 | 0 | 0 |
Excess (deficiency) of distributions over equity in pretax income of consolidated subsidiaries, net of cash distributions | 11,721 | 12,411 | 10,378 |
Equity in losses of investee companies, net of cash distributions | 0 | 0 | 0 |
Equity-based compensation | 0 | 0 | 0 |
Deferred income taxes | 259 | -909 | 509 |
Changes in operating assets and liabilities, net of acquisitions | -3,768 | -3,138 | -3,912 |
Intercompany | 0 | 0 | 0 |
Cash provided by operations from continuing operations | -17 | 42 | 30 |
INVESTING ACTIVITIES | |||
Investments in available-for-sale securities | 0 | 0 | 0 |
Investments and acquisitions, net of cash acquired | 0 | 0 | 0 |
Capital expenditures | 0 | 0 | 0 |
Investment proceeds from available-for-sale securities | 0 | 0 | 0 |
Proceeds from Time Inc. in the Time Separation | 0 | ||
Proceeds from the sale of Time Warner Center | 0 | ||
Advances to (from) parent and consolidated subsidiaries | -10,829 | -4,454 | -4,286 |
Other investment proceeds | -17 | -116 | -12 |
Cash provided (used) by investing activities from continuing operations | -10,846 | -4,570 | -4,298 |
FINANCING ACTIVITIES | |||
Borrowings | 0 | 0 | 0 |
Debt repayments | 0 | 0 | 0 |
Proceeds from exercise of stock options | 0 | 0 | 0 |
Excess tax benefit from equity instruments | 0 | 0 | 0 |
Principal payments on capital leases | 0 | 0 | 0 |
Repurchases of common stock | 0 | 0 | 0 |
Dividends paid | 0 | 0 | -7 |
Other financing activities | 35 | 74 | -16 |
Change in due to/from parent and investment in segment | 10,828 | 4,454 | 4,291 |
Cash provided (used) by financing activities from continuing operations | 10,863 | 4,528 | 4,268 |
Cash provided (used) by continuing operations | 0 | 0 | 0 |
Cash provided (used) by operations from discontinued operations | 0 | 0 | 0 |
Cash provided (used) by investing activities from discontinued operations | -336 | -487 | -435 |
Cash provided (used) by financing activities from discontinued operations | 336 | 487 | 435 |
Effect of change in cash and equivalents of discontinued operations | 0 | 0 | 0 |
Cash provided (used) by discontinued operations | 0 | 0 | 0 |
Effect of Venezuelan exchange rate changes on cash and equivalents | 0 | ||
INCREASE (DECREASE) IN CASH AND EQUIVALENTS | 0 | 0 | 0 |
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD | 0 | 0 | 0 |
CASH AND EQUIVALENTS AT END OF PERIOD | 0 | 0 | 0 |
Parent Company [Member] | |||
OPERATIONS | |||
Net income | 3,827 | 3,691 | 2,922 |
Less Discontinued operations, net of tax | 67 | -337 | -259 |
Net income from continuing operations | 3,894 | 3,354 | 2,663 |
Adjustments for noncash and nonoperating items: | |||
Depreciation and amortization | 17 | 24 | 25 |
Amortization of film and television costs | 0 | 0 | 0 |
Asset impairments | 7 | 7 | 0 |
Venezuelan foreign currency loss | 0 | ||
(Gain) loss on investments and other assets, net | -14 | -3 | 2 |
Excess (deficiency) of distributions over equity in pretax income of consolidated subsidiaries, net of cash distributions | -6,131 | -6,319 | -5,272 |
Equity in losses of investee companies, net of cash distributions | 3 | 2 | 2 |
Equity-based compensation | 81 | 74 | 48 |
Deferred income taxes | 166 | 759 | -161 |
Changes in operating assets and liabilities, net of acquisitions | -739 | -329 | 479 |
Intercompany | 0 | 0 | 0 |
Cash provided by operations from continuing operations | -2,716 | -2,431 | -2,214 |
INVESTING ACTIVITIES | |||
Investments in available-for-sale securities | -5 | -4 | -11 |
Investments and acquisitions, net of cash acquired | -64 | -11 | -39 |
Capital expenditures | -22 | -66 | -38 |
Investment proceeds from available-for-sale securities | 13 | 8 | 1 |
Proceeds from Time Inc. in the Time Separation | 590 | ||
Proceeds from the sale of Time Warner Center | 0 | ||
Advances to (from) parent and consolidated subsidiaries | 6,365 | 4,433 | 4,024 |
Other investment proceeds | 44 | 15 | 26 |
Cash provided (used) by investing activities from continuing operations | 6,921 | 4,375 | 3,963 |
FINANCING ACTIVITIES | |||
Borrowings | 2,118 | 998 | 994 |
Debt repayments | -48 | 0 | -638 |
Proceeds from exercise of stock options | 338 | 674 | 1,107 |
Excess tax benefit from equity instruments | 179 | 179 | 83 |
Principal payments on capital leases | 0 | 0 | 0 |
Repurchases of common stock | -5,504 | -3,708 | -3,272 |
Dividends paid | -1,109 | -1,074 | -1,011 |
Other financing activities | 88 | 25 | 66 |
Change in due to/from parent and investment in segment | 0 | 0 | 0 |
Cash provided (used) by financing activities from continuing operations | -3,938 | -2,906 | -2,671 |
Cash provided (used) by continuing operations | 267 | -962 | -922 |
Cash provided (used) by operations from discontinued operations | -1 | -2 | -9 |
Cash provided (used) by investing activities from discontinued operations | 318 | 142 | 214 |
Cash provided (used) by financing activities from discontinued operations | 0 | 0 | 0 |
Effect of change in cash and equivalents of discontinued operations | 0 | 0 | 0 |
Cash provided (used) by discontinued operations | 317 | 140 | 205 |
Effect of Venezuelan exchange rate changes on cash and equivalents | 0 | ||
INCREASE (DECREASE) IN CASH AND EQUIVALENTS | 584 | -822 | -717 |
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD | 1,039 | 1,861 | 2,578 |
CASH AND EQUIVALENTS AT END OF PERIOD | 1,623 | 1,039 | 1,861 |
Guarantor Subsidiaries [Member] | |||
OPERATIONS | |||
Net income | 3,930 | 4,667 | 3,925 |
Less Discontinued operations, net of tax | 42 | -333 | -254 |
Net income from continuing operations | 3,972 | 4,334 | 3,671 |
Adjustments for noncash and nonoperating items: | |||
Depreciation and amortization | 116 | 126 | 142 |
Amortization of film and television costs | 2,747 | 2,453 | 2,403 |
Asset impairments | 1 | 0 | -1 |
Venezuelan foreign currency loss | 0 | ||
(Gain) loss on investments and other assets, net | -6 | 1 | -37 |
Excess (deficiency) of distributions over equity in pretax income of consolidated subsidiaries, net of cash distributions | -3,831 | -4,428 | -3,597 |
Equity in losses of investee companies, net of cash distributions | -7 | 2 | 0 |
Equity-based compensation | 63 | 58 | 53 |
Deferred income taxes | -105 | 589 | -257 |
Changes in operating assets and liabilities, net of acquisitions | -1,016 | -228 | -551 |
Intercompany | 2,871 | 1,390 | 2,132 |
Cash provided by operations from continuing operations | 4,805 | 4,297 | 3,958 |
INVESTING ACTIVITIES | |||
Investments in available-for-sale securities | 0 | 0 | -11 |
Investments and acquisitions, net of cash acquired | -2 | -1 | -25 |
Capital expenditures | -73 | -86 | -100 |
Investment proceeds from available-for-sale securities | 8 | 0 | 0 |
Proceeds from Time Inc. in the Time Separation | 0 | ||
Proceeds from the sale of Time Warner Center | 0 | ||
Advances to (from) parent and consolidated subsidiaries | 4,464 | 21 | 261 |
Other investment proceeds | 86 | 157 | 52 |
Cash provided (used) by investing activities from continuing operations | 4,483 | 91 | 177 |
FINANCING ACTIVITIES | |||
Borrowings | 0 | 0 | 0 |
Debt repayments | 0 | -732 | 0 |
Proceeds from exercise of stock options | 0 | 0 | 0 |
Excess tax benefit from equity instruments | 0 | 0 | 0 |
Principal payments on capital leases | -10 | -9 | -10 |
Repurchases of common stock | 0 | 0 | 0 |
Dividends paid | 0 | 0 | 0 |
Other financing activities | -45 | -38 | -12 |
Change in due to/from parent and investment in segment | -9,109 | -4,101 | -4,178 |
Cash provided (used) by financing activities from continuing operations | -9,164 | -4,880 | -4,200 |
Cash provided (used) by continuing operations | 124 | -492 | -65 |
Cash provided (used) by operations from discontinued operations | 0 | 0 | -25 |
Cash provided (used) by investing activities from discontinued operations | 18 | 345 | 221 |
Cash provided (used) by financing activities from discontinued operations | 0 | 0 | 0 |
Effect of change in cash and equivalents of discontinued operations | 0 | 0 | 0 |
Cash provided (used) by discontinued operations | 18 | 345 | 196 |
Effect of Venezuelan exchange rate changes on cash and equivalents | 0 | ||
INCREASE (DECREASE) IN CASH AND EQUIVALENTS | 142 | -147 | 131 |
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD | 148 | 295 | 164 |
CASH AND EQUIVALENTS AT END OF PERIOD | 290 | 148 | 295 |
Non-Guarantor Subsidiaries [Member] | |||
OPERATIONS | |||
Net income | 4,153 | 4,285 | 3,501 |
Less Discontinued operations, net of tax | 61 | -334 | -254 |
Net income from continuing operations | 4,214 | 3,951 | 3,247 |
Adjustments for noncash and nonoperating items: | |||
Depreciation and amortization | 600 | 609 | 598 |
Amortization of film and television costs | 5,336 | 4,846 | 4,834 |
Asset impairments | 61 | 54 | 181 |
Venezuelan foreign currency loss | 173 | ||
(Gain) loss on investments and other assets, net | -444 | -63 | 25 |
Excess (deficiency) of distributions over equity in pretax income of consolidated subsidiaries, net of cash distributions | -1,759 | -1,664 | -1,509 |
Equity in losses of investee companies, net of cash distributions | 236 | 212 | 219 |
Equity-based compensation | 75 | 106 | 94 |
Deferred income taxes | -154 | 320 | -252 |
Changes in operating assets and liabilities, net of acquisitions | -3,858 | -5,631 | -4,092 |
Intercompany | -2,871 | -1,390 | -2,132 |
Cash provided by operations from continuing operations | 1,609 | 1,350 | 1,213 |
INVESTING ACTIVITIES | |||
Investments in available-for-sale securities | -25 | -23 | -15 |
Investments and acquisitions, net of cash acquired | -884 | -483 | -596 |
Capital expenditures | -379 | -416 | -471 |
Investment proceeds from available-for-sale securities | 4 | 25 | 0 |
Proceeds from Time Inc. in the Time Separation | 810 | ||
Proceeds from the sale of Time Warner Center | 1,264 | ||
Advances to (from) parent and consolidated subsidiaries | 0 | 0 | 1 |
Other investment proceeds | 35 | 114 | 19 |
Cash provided (used) by investing activities from continuing operations | 825 | -783 | -1,062 |
FINANCING ACTIVITIES | |||
Borrowings | 291 | 30 | 45 |
Debt repayments | -24 | -30 | -48 |
Proceeds from exercise of stock options | 0 | 0 | 0 |
Excess tax benefit from equity instruments | 0 | 0 | 0 |
Principal payments on capital leases | -1 | 0 | -1 |
Repurchases of common stock | 0 | 0 | 0 |
Dividends paid | 0 | 0 | 7 |
Other financing activities | -251 | -172 | -118 |
Change in due to/from parent and investment in segment | -1,719 | -353 | -113 |
Cash provided (used) by financing activities from continuing operations | -1,704 | -525 | -228 |
Cash provided (used) by continuing operations | 730 | 42 | -77 |
Cash provided (used) by operations from discontinued operations | -15 | 458 | 489 |
Cash provided (used) by investing activities from discontinued operations | -51 | -23 | -26 |
Cash provided (used) by financing activities from discontinued operations | -372 | -487 | -435 |
Effect of change in cash and equivalents of discontinued operations | -87 | 35 | 14 |
Cash provided (used) by discontinued operations | -525 | -17 | 42 |
Effect of Venezuelan exchange rate changes on cash and equivalents | -129 | ||
INCREASE (DECREASE) IN CASH AND EQUIVALENTS | 76 | 25 | -35 |
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD | 629 | 604 | 639 |
CASH AND EQUIVALENTS AT END OF PERIOD | $705 | $629 | $604 |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $1,383 | $1,407 | $1,587 |
Additions Charged (Credited) to Costs and Expenses | 1,847 | 2,094 | 1,911 |
Deductions | -2,078 | -2,118 | -2,091 |
Balance at End of Period | 1,152 | 1,383 | 1,407 |
Allowance for doubtful accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 191 | 209 | 206 |
Additions Charged (Credited) to Costs and Expenses | -20 | 28 | 37 |
Deductions | -19 | -46 | -34 |
Balance at End of Period | 152 | 191 | 209 |
Reserves for sales returns and allowances [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 1,192 | 1,198 | 1,381 |
Additions Charged (Credited) to Costs and Expenses | 1,867 | 2,066 | 1,874 |
Deductions | -2,059 | -2,072 | -2,057 |
Balance at End of Period | $1,000 | $1,192 | $1,198 |