Exhibit 99.2
TIME INC.
2014 TRENDING SCHEDULES
BASIS OF PRESENTATION
Time Inc. utilizes Adjusted Operating Income Before Depreciation and Amortization (Adjusted OIBDA), among other measures, to evaluate the performance of its business. Adjusted OIBDA is defined as Operating Income less Depreciation and Amortization (OIBDA) and adjusted for noncash impairments of goodwill, intangibles, fixed asset and investments, restructuring and severance costs, gains and losses on operating assets, and other costs related to mergers, acquisitions, investments or dispositions.
Free Cash Flow is defined as Cash provided by (used in) operations less capital expenditures. The Company uses Free Cash Flow to evaluate its business and this measure is considered an important indicator of the Company's liquidity, including its ability to reduce net debt, make strategic investments, and pay dividends to common shareholders.
We believe that the presentation of OIBDA, Adjusted OIBDA, and Free Cash Flow helps investors analyze underlying trends in our business, evaluate the performance of our business both on an absolute basis and relative to our peers and the broader market, provides useful information to both management and investors by excluding certain items that may not be indicative of our core operating results and operational strength of our business and helps investors evaluate our ability to service our debt.
Some limitations of OIBDA, Adjusted OIBDA, and Free Cash Flow are that they do not reflect certain charges that affect the operating results of the Company’s business and they involve judgment as to whether items affect fundamental operating performance.
A general limitation of these measures is that they are not prepared in accordance with U.S. generally accepted accounting principles and may not be comparable to similarly titled measures of other companies due to differences in methods of calculation and excluded items. OIBDA, Adjusted OIBDA, and Free Cash Flow should be considered in addition to, not as a substitute for, the Company’s Operating income (loss), Income (loss) from continuing operations and various cash flow measures (e.g., Cash provided by (used in) operations), as well as other measures of financial performance and liquidity reported in accordance with U.S. generally accepted accounting principles.
The pro forma share information presented herein gives effect to the issuance of 108.94 million common shares of the Company in connection with the spin-off of the Company from Time Warner as if it had occurred at the beginning of each period presented through the date of the spin-off, June 6, 2014. In addition, certain prior period amounts have been adjusted to conform to the current period presentation.
TIME INC.
2014 TRENDING SCHEDULES
CONSOLIDATED AND COMBINED BALANCE SHEETS
(In millions, except share amounts; Unaudited) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2012 | | | 2013 | | | 2014 |
| | March 31, | | June 30, | | September 30, | | December 31, | | | March 31, | | June 30, | | September 30, | | December 31, | | | March 31, | | June 30, |
| ASSETS | | | | | | | | | | | | | | | | | | | | | |
| Current assets | | | | | | | | | | | | | | | | | | | | | |
| Cash and cash equivalents | $ | 94 |
| | $ | 116 |
| | $ | 88 |
| | $ | 81 |
| | | $ | 70 |
| | $ | 69 |
| | $ | 63 |
| | $ | 46 |
| | | $ | 51 |
| | $ | 204 |
|
| Receivables, less allowances | 507 |
| | 497 |
| | 468 |
| | 588 |
| | | 530 |
| | 520 |
| | 502 |
| | 489 |
| | | 414 |
| | 383 |
|
| Inventories, net of reserves | 94 |
| | 89 |
| | 94 |
| | 83 |
| | | 98 |
| | 99 |
| | 71 |
| | 56 |
| | | 63 |
| | 62 |
|
| Deferred tax assets | 100 |
| | 89 |
| | 85 |
| | 82 |
| | | 82 |
| | 82 |
| | 82 |
| | 75 |
| | | 75 |
| | 98 |
|
| Prepaid expenses and other current assets | 70 |
| | 71 |
| | 67 |
| | 52 |
| | | 73 |
| | 84 |
| | 96 |
| | 97 |
| | | 133 |
| | 113 |
|
| Assets held for sale | — |
| | — |
| | — |
| | — |
| | | — |
| | — |
| | — |
| | — |
| | | — |
| | 51 |
|
| Total current assets | 865 |
| | 862 |
| | 802 |
| | 886 |
| | | 853 |
| | 854 |
| | 814 |
| | 763 |
| | | 736 |
| | 911 |
|
| Property, plant and equipment, net | 620 |
| | 599 |
| | 588 |
| | 576 |
| | | 544 |
| | 529 |
| | 521 |
| | 534 |
| | | 494 |
| | 475 |
|
| Intangible assets subject to amortization, net | 501 |
| | 491 |
| | 483 |
| | 638 |
| | | 627 |
| | 617 |
| | 608 |
| | 582 |
| | | 1,150 |
| | 1,130 |
|
| Intangible assets not subject to amortization | 800 |
| | 799 |
| | 799 |
| | 637 |
| | | 636 |
| | 636 |
| | 637 |
| | 586 |
| | | — |
| | — |
|
| Goodwill | 3,142 |
| | 3,134 |
| | 3,145 |
| | 3,150 |
| | | 3,123 |
| | 3,123 |
| | 3,132 |
| | 3,162 |
| | | 3,174 |
| | 3,163 |
|
| Other assets | 46 |
| | 48 |
| | 50 |
| | 48 |
| | | 45 |
| | 45 |
| | 44 |
| | 47 |
| | | 72 |
| | 78 |
|
| Total assets | $ | 5,974 |
| | $ | 5,933 |
| | $ | 5,867 |
| | $ | 5,935 |
| | | $ | 5,828 |
| | $ | 5,804 |
| | $ | 5,756 |
| | $ | 5,674 |
| | | $ | 5,626 |
| | $ | 5,757 |
|
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | | | | | | | | | | | | | | |
| Current liabilities | | | | | | | | | | | | | | | | | | | | | |
| Accounts payable and accrued liabilities | $ | 429 |
| | $ | 476 |
| | $ | 466 |
| | $ | 531 |
| | | $ | 453 |
| | $ | 494 |
| | $ | 514 |
| | $ | 534 |
| | | $ | 499 |
| | $ | 564 |
|
| Deferred revenue | 535 |
| | 510 |
| | 494 |
| | 485 |
| | | 509 |
| | 486 |
| | 463 |
| | 449 |
| | | 468 |
| | 437 |
|
| Current portion of long-term debt | — |
| | — |
| | — |
| | — |
| | | — |
| | — |
| | — |
| | — |
| | | — |
| | 7 |
|
| Liabilities held for sale | — |
| | — |
| | — |
| | — |
| | | — |
| | — |
| | — |
| | — |
| | | — |
| | 12 |
|
| Total current liabilities | 964 |
| | 986 |
| | 960 |
| | 1,016 |
| | | 962 |
| | 980 |
| | 977 |
| | 983 |
| | | 967 |
| | 1,020 |
|
| Long-term debt | 34 |
| | 35 |
| | 35 |
| | 36 |
| | | 36 |
| | 37 |
| | 37 |
| | 38 |
| | | 38 |
| | 1,370 |
|
| Deferred tax liabilities | 292 |
| | 292 |
| | 305 |
| | 313 |
| | | 306 |
| | 315 |
| | 326 |
| | 313 |
| | | 298 |
| | 296 |
|
| Deferred revenue | 151 |
| | 145 |
| | 141 |
| | 137 |
| | | 140 |
| | 133 |
| | 128 |
| | 135 |
| | | 129 |
| | 122 |
|
| Other noncurrent liabilities | 95 |
| | 86 |
| | 90 |
| | 149 |
| | | 101 |
| | 89 |
| | 130 |
| | 163 |
| | | 213 |
| | 191 |
|
| Commitments and contingencies | | | | | | | | | | | | | | | | | | | | | |
| Shareholders' Equity | | | | | | | | | | | | | | | | | | | | | |
| Common stock, $0.01 par value, 400 million shares authorized; 108.97 million shares issued and outstanding | — |
| | — |
| | — |
| | — |
| | | — |
| | — |
| | — |
| | — |
| | | — |
| | 1 |
|
| Preferred stock, $0.01 par value, 40 million shares authorized; none issued | — |
| | — |
| | — |
| | — |
| | | — |
| | — |
| | — |
| | — |
| | | — |
| | — |
|
| Additional paid-in-capital | — |
| | — |
| | — |
| | — |
| | | — |
| | — |
| | — |
| | — |
| | | — |
| | 12,654 |
|
| Time Warner investment | 4,567 |
| | 4,545 |
| | 4,477 |
| | 4,429 |
| | | 4,477 |
| | 4,444 |
| | 4,332 |
| | 4,158 |
| | | 4,079 |
| | — |
|
| Accumulated deficit | — |
| | — |
| | — |
| | — |
| | | — |
| | — |
| | — |
| | — |
| | | — |
| | (9,819 | ) |
| Accumulated other comprehensive loss, net | (129 | ) | | (156 | ) | | (141 | ) | | (145 | ) | | | (194 | ) | | (194 | ) | | (174 | ) | | (116 | ) | | | (98 | ) | | (78 | ) |
| Total shareholders' equity | 4,438 |
| | 4,389 |
| | 4,336 |
| | 4,284 |
| | | 4,283 |
| | 4,250 |
| | 4,158 |
| | 4,042 |
| | | 3,981 |
| | 2,758 |
|
| Total liabilities and shareholders' equity | $ | 5,974 |
| | $ | 5,933 |
| | $ | 5,867 |
| | $ | 5,935 |
| | | $ | 5,828 |
| | $ | 5,804 |
| | $ | 5,756 |
| | $ | 5,674 |
| | | $ | 5,626 |
| | $ | 5,757 |
|
TIME INC.
2014 TRENDING SCHEDULES
CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS
(In millions, except per share amounts; Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended | | | Three Months Ended | | Year Ended | | | Three Months Ended | | Year Ended | | | Three Months Ended |
| | 12/31/2011 | | | 3/31/2012 | | 6/30/2012 | | 9/30/2012 | | 12/31/2012 | | 12/31/2012 | | | 3/31/2013 | | 6/30/2013 | | 9/30/2013 | | 12/31/2013 | | 12/31/2013 | | | 3/31/2014 | | 6/30/2014 |
| Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Advertising | $ | 1,923 |
| | | $ | 383 |
| | $ | 472 |
| | $ | 437 |
| | $ | 527 |
| | $ | 1,819 |
| | | $ | 389 |
| | $ | 448 |
| | $ | 430 |
| | $ | 540 |
| | $ | 1,807 |
| | | $ | 390 |
| | $ | 461 |
|
| Circulation | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Subscription | 754 |
| | | 179 |
| | 180 |
| | 179 |
| | 210 |
| | 748 |
| | | 166 |
| | 174 |
| | 176 |
| | 205 |
| | 721 |
| | | 180 |
| | 171 |
|
| Newsstand | 498 |
| | | 107 |
| | 108 |
| | 115 |
| | 117 |
| | 447 |
| | | 88 |
| | 95 |
| | 105 |
| | 101 |
| | 389 |
| | | 86 |
| | 83 |
|
| Other | 19 |
| | | 3 |
| | 4 |
| | 3 |
| | 5 |
| | 15 |
| | | 4 |
| | 4 |
| | 4 |
| | 7 |
| | 19 |
| | | 4 |
| | 4 |
|
| Total Circulation | 1,271 |
| | | 289 |
| | 292 |
| | 297 |
| | 332 |
| | 1,210 |
| | | 258 |
| | 273 |
| | 285 |
| | 313 |
| | 1,129 |
| | | 270 |
| | 258 |
|
| Other | 483 |
| | | 101 |
| | 94 |
| | 104 |
| | 108 |
| | 407 |
| | | 90 |
| | 112 |
| | 103 |
| | 113 |
| | 418 |
| | | 85 |
| | 101 |
|
| Total revenues | 3,677 |
| | | 773 |
| | 858 |
| | 838 |
| | 967 |
| | 3,436 |
| | | 737 |
| | 833 |
| | 818 |
| | 966 |
| | 3,354 |
| | | 745 |
| | 820 |
|
| Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Cost of revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Production costs | (847 | ) | | | (184 | ) | | (202 | ) | | (192 | ) | | (217 | ) | | (795 | ) | | | (171 | ) | | (182 | ) | | (182 | ) | | (211 | ) | | (746 | ) | | | (175 | ) | | (191 | ) |
| Editorial costs | (455 | ) | | | (118 | ) | | (118 | ) | | (113 | ) | | (118 | ) | | (467 | ) | | | (110 | ) | | (107 | ) | | (109 | ) | | (117 | ) | | (443 | ) | | | (108 | ) | | (111 | ) |
| Other | (78 | ) | | | (16 | ) | | (17 | ) | | (30 | ) | | (19 | ) | | (82 | ) | | | (19 | ) | | (30 | ) | | (31 | ) | | (53 | ) | | (133 | ) | | | (23 | ) | | (26 | ) |
| Total Cost of revenues | (1,380 | ) | | | (318 | ) | | (337 | ) | | (335 | ) | | (354 | ) | | (1,344 | ) | | | (300 | ) | | (319 | ) | | (322 | ) | | (381 | ) | | (1,322 | ) | | | (306 | ) | | (328 | ) |
| Selling, general and administrative expenses | (1,557 | ) | | | (379 | ) | | (379 | ) | | (340 | ) | | (378 | ) | | (1,476 | ) | | | (361 | ) | | (359 | ) | | (345 | ) | | (381 | ) | | (1,446 | ) | | | (375 | ) | | (384 | ) |
| Amortization of intangible assets | (42 | ) | | | (9 | ) | | (9 | ) | | (9 | ) | | (9 | ) | | (36 | ) | | | (10 | ) | | (10 | ) | | (10 | ) | | (12 | ) | | (42 | ) | | | (19 | ) | | (20 | ) |
| Restructuring and severance costs | (18 | ) | | | (6 | ) | | (12 | ) | | (6 | ) | | (3 | ) | | (27 | ) | | | (53 | ) | | (1 | ) | | (4 | ) | | (5 | ) | | (63 | ) | | | (115 | ) | | (55 | ) |
| Asset impairments | (17 | ) | | | — |
| | — |
| | — |
| | (6 | ) | | (6 | ) | | | — |
| | — |
| | — |
| | (79 | ) | | (79 | ) | | | (26 | ) | | — |
|
| Goodwill impairment | — |
| | | — |
| | — |
| | — |
| | — |
| | — |
| | | — |
| | — |
| | — |
| | — |
| | — |
| | | — |
| | (26 | ) |
| Depreciation | (100 | ) | | | (23 | ) | | (24 | ) | | (22 | ) | | (22 | ) | | (91 | ) | | | (22 | ) | | (20 | ) | | (22 | ) | | (21 | ) | | (85 | ) | | | (24 | ) | | (28 | ) |
| Gain (loss) on operating assets | — |
| | | (42 | ) | | — |
| | 1 |
| | 5 |
| | (36 | ) | | | — |
| | — |
| | — |
| | 13 |
| | 13 |
| | | — |
| | — |
|
| Total operating expenses | (3,114 | ) | | | (777 | ) | | (761 | ) | | (711 | ) | | (767 | ) | | (3,016 | ) | | | (746 | ) | | (709 | ) | | (703 | ) | | (866 | ) | | (3,024 | ) | | | (865 | ) | | (841 | ) |
| Operating income (loss) | 563 |
| | | (4 | ) | | 97 |
| | 127 |
| | 200 |
| | 420 |
| | | (9 | ) | | 124 |
| | 115 |
| | 100 |
| | 330 |
| | | (120 | ) | | (21 | ) |
| Interest income (expense), net | (4 | ) | | | (1 | ) | | — |
| | (1 | ) | | (1 | ) | | (3 | ) | | | (1 | ) | | — |
| | (1 | ) | | (1 | ) | | (3 | ) | | | (1 | ) | | (11 | ) |
| Other income (expense), net | 6 |
| | | (2 | ) | | (1 | ) | | — |
| | — |
| | (3 | ) | | | — |
| | (3 | ) | | — |
| | 2 |
| | (1 | ) | | | 5 |
| | (1 | ) |
| Income (loss) before income taxes | 565 |
| | | (7 | ) | | 96 |
| | 126 |
| | 199 |
| | 414 |
| | | (10 | ) | | 121 |
| | 114 |
| | 101 |
| | 326 |
| | | (116 | ) | | (33 | ) |
| Income tax (provision) benefit | (197 | ) | | | (4 | ) | | (34 | ) | | (42 | ) | | (71 | ) | | (151 | ) | | | 2 |
| | (46 | ) | | (46 | ) | | (35 | ) | | (125 | ) | | | 42 |
| | 1 |
|
| Net income (loss) | $ | 368 |
| | | $ | (11 | ) | | $ | 62 |
| | $ | 84 |
| | $ | 128 |
| | $ | 263 |
| | | $ | (8 | ) | | $ | 75 |
| | $ | 68 |
| | $ | 66 |
| | $ | 201 |
| | | $ | (74 | ) | | $ | (32 | ) |
| Basic net income (loss) per common share | $ | 3.38 |
| | | $ | (0.10 | ) | | $ | 0.57 |
| | $ | 0.77 |
| | $ | 1.17 |
| | $ | 2.41 |
| | | $ | (0.07 | ) | | $ | 0.69 |
| | $ | 0.62 |
| | $ | 0.61 |
| | $ | 1.85 |
| | | $ | (0.68 | ) | | $ | (0.30 | ) |
| Diluted net income (loss) per common share | $ | 3.38 |
| | | $ | (0.10 | ) | | $ | 0.57 |
| | $ | 0.77 |
| | $ | 1.17 |
| | $ | 2.41 |
| | | $ | (0.07 | ) | | $ | 0.69 |
| | $ | 0.62 |
| | $ | 0.61 |
| | $ | 1.85 |
| | | $ | (0.68 | ) | | $ | (0.30 | ) |
| Weighted average basic common shares outstanding(1) | 108.94 |
| | | 108.94 |
| | 108.94 |
| | 108.94 |
| | 108.94 |
| | 108.94 |
| | | 108.94 |
| | 108.94 |
| | 108.94 |
| | 108.94 |
| | 108.94 |
| | | 108.94 |
| | 108.97 |
|
| Weighted average diluted common shares outstanding(1) | 108.94 |
| | | 108.94 |
| | 108.94 |
| | 108.94 |
| | 108.94 |
| | 108.94 |
| | | 108.94 |
| | 108.94 |
| | 108.94 |
| | 108.94 |
| | 108.94 |
| | | 108.94 |
| | 108.97 |
|
___________________
(1) The pro forma share information presented herein gives effect to the issuance of 108.94 million common shares of the Company in connection with the spin-off of the Company from Time Warner as if it had occurred at the beginning of each period presented through the date of the spin-off, June 6, 2014.
TIME INC.
2014 TRENDING SCHEDULES
CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS
(In millions; Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2011 | | | 2012 | | | 2013 | | | 2014 |
| | Year Ended | | | Three Months Ended | | Six Months Ended | | Nine Months Ended | | Year Ended | | | Three Months Ended | | Six Months Ended | | Nine Months Ended | | Year Ended | | | Three Months Ended | | Six Months Ended |
| | December 31, | | | March 31, | | June 30, | | September 30, | | December 31, | | | March 31, | | June 30, | | September 30, | | December 31, | | | March 31, | | June 30, |
| OPERATING ACTIVITIES | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income (loss) | $ | 368 |
| | | $ | (11 | ) | | $ | 51 |
| | $ | 135 |
| | $ | 263 |
| | | $ | (8 | ) | | $ | 67 |
| | $ | 135 |
| | $ | 201 |
| | | $ | (74 | ) | | $ | (106 | ) |
| Adjustments to reconcile net income to cash provided by operations: | | | | | | | | | | | | | | | | | | | | | | | | |
| Depreciation and amortization | 142 |
| | | 32 |
| | 65 |
| | 96 |
| | 127 |
| | | 32 |
| | 62 |
| | 94 |
| | 127 |
| | | 43 |
| | 91 |
|
| Asset impairments | 17 |
| | | — |
| | — |
| | — |
| | 6 |
| | | — |
| | — |
| | — |
| | 79 |
| | | 26 |
| | 26 |
|
| Goodwill impairment | — |
| | | — |
| | — |
| | — |
| | — |
| | | — |
| | — |
| | — |
| | — |
| | | — |
| | 26 |
|
| (Gain) Loss on investment and other assets, net | 1 |
| | | 42 |
| | 42 |
| | 41 |
| | 36 |
| | | — |
| | — |
| | — |
| | — |
| | | 1 |
| | — |
|
| Equity in (gains) losses of investee companies, net of cash distributions | (6 | ) | | | 1 |
| | 2 |
| | 2 |
| | 4 |
| | | 1 |
| | 2 |
| | 3 |
| | 2 |
| | | 2 |
| | 2 |
|
| Equity-based compensation | 41 |
| | | 16 |
| | 25 |
| | 32 |
| | 39 |
| | | 7 |
| | 9 |
| | 13 |
| | 18 |
| | | 2 |
| | 10 |
|
| Deferred income taxes | 18 |
| | | 2 |
| | 5 |
| | 17 |
| | 32 |
| | | (5 | ) | | 3 |
| | 13 |
| | 28 |
| | | (11 | ) | | (11 | ) |
| Changes in operating assets and liabilities | (107 | ) | | | (13 | ) | | 2 |
| | 9 |
| | (46 | ) | | | (28 | ) | | (25 | ) | | (11 | ) | | (37 | ) | | | 11 |
| | 42 |
|
| Cash provided by (used in) operations | 474 |
| | | 69 |
| | 192 |
| | 332 |
| | 461 |
| | | (1 | ) | | 118 |
| | 247 |
| | 418 |
| | | — |
| | 80 |
|
| INVESTING ACTIVITIES | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments and acquisitions, net of cash acquired | (2 | ) | | | (1 | ) | | (6 | ) | | (8 | ) | | (8 | ) | | | (1 | ) | | (2 | ) | | (3 | ) | | 10 |
| | | (12 | ) | | (29 | ) |
| Capital expenditures | (48 | ) | | | (6 | ) | | (12 | ) | | (20 | ) | | (34 | ) | | | (6 | ) | | (12 | ) | | (19 | ) | | (34 | ) | | | (7 | ) | | (23 | ) |
| Other investment proceeds | 4 |
| | | 15 |
| | 15 |
| | 16 |
| | 16 |
| | | — |
| | — |
| | — |
| | 1 |
| | | — |
| | — |
|
| Cash provided by (used in) investing activities | (46 | ) | | | 8 |
| | (3 | ) | | (12 | ) | | (26 | ) | | | (7 | ) | | (14 | ) | | (22 | ) | | (23 | ) | | | (19 | ) | | (52 | ) |
| FINANCING ACTIVITIES | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from the issuance of debt | — |
| | | — |
| | — |
| | — |
| | — |
| | | — |
| | — |
| | — |
| | — |
| | | — |
| | 1,377 |
|
| Financing costs | — |
| | | — |
| | — |
| | — |
| | — |
| | | — |
| | — |
| | — |
| | — |
| | | — |
| | (13 | ) |
| Excess tax benefit from equity instruments | 6 |
| | | 12 |
| | 12 |
| | 11 |
| | 16 |
| | | 18 |
| | 26 |
| | 30 |
| | 34 |
| | | 12 |
| | — |
|
| Transfer to Time Warner in connection with Spin-Off | — |
| | | — |
| | — |
| | — |
| | — |
| | | — |
| | — |
| | — |
| | — |
| | | — |
| | (1,400 | ) |
| Net transfers from (to) Time Warner | (411 | ) | | | (90 | ) | | (180 | ) | | (338 | ) | | (465 | ) | | | (21 | ) | | (142 | ) | | (273 | ) | | (464 | ) | | | 12 |
| | 166 |
|
| Cash provided by (used in) financing activities | (405 | ) | | | (78 | ) | | (168 | ) | | (327 | ) | | (449 | ) | | | (3 | ) | | (116 | ) | | (243 | ) | | (430 | ) | | | 24 |
| | 130 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 23 |
| | | (1 | ) | | 21 |
| | (7 | ) | | (14 | ) | | | (11 | ) | | (12 | ) | | (18 | ) | | (35 | ) | | | 5 |
| | 158 |
|
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 72 |
| | | 95 |
| | 95 |
| | 95 |
| | 95 |
| | | 81 |
| | 81 |
| | 81 |
| | 81 |
| | | 46 |
| | 46 |
|
| CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 95 |
| | | $ | 94 |
| | $ | 116 |
| | $ | 88 |
| | $ | 81 |
| | | $ | 70 |
| | $ | 69 |
| | $ | 63 |
| | $ | 46 |
| | | $ | 51 |
| | $ | 204 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Free Cash Flow: | | | | | | | | | | | | | | | | | | | | | | | | |
| Cash provided by (used in) operations | $ | 474 |
| | | $ | 69 |
| | $ | 192 |
| | $ | 332 |
| | $ | 461 |
| | | $ | (1 | ) | | $ | 118 |
| | $ | 247 |
| | $ | 418 |
| | | $ | — |
| | $ | 80 |
|
| Less capital expenditures | (48 | ) | | | (6 | ) | | (12 | ) | | (20 | ) | | (34 | ) | | | (6 | ) | | (12 | ) | | (19 | ) | | (34 | ) | | | (7 | ) | | (23 | ) |
Free Cash Flow(1) | $ | 426 |
| | | $ | 63 |
| | $ | 180 |
| | $ | 312 |
| | $ | 427 |
| | | $ | (7 | ) | | $ | 106 |
| | $ | 228 |
| | $ | 384 |
| | | $ | (7 | ) | | $ | 57 |
|
__________________
(1) Free cash flow is defined as net cash flows provided by (used in) operations less capital expenditures.
TIME INC.
2014 TRENDING SCHEDULES
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED OIBDA
(In millions; Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended | | | Three Months Ended | | Year Ended | | | Three Months Ended | | Year Ended | | | Three Months Ended |
| | 12/31/2011 | | | 3/31/2012 | | 6/30/2012 | | 9/30/2012 | | 12/31/2012 | | 12/31/2012 | | | 3/31/2013 | | 6/30/2013 | | 9/30/2013 | | 12/31/2013 | | 12/31/2013 | | | 3/31/2014 | | 6/30/2014 |
| Operating income (loss) | $ | 563 |
| | | $ | (4 | ) | | $ | 97 |
| | $ | 127 |
| | $ | 200 |
| | $ | 420 |
| | | $ | (9 | ) | | $ | 124 |
| | $ | 115 |
| | $ | 100 |
| | $ | 330 |
| | | $ | (120 | ) | | $ | (21 | ) |
| Depreciation | 100 |
| | | 23 |
| | 24 |
| | 22 |
| | 22 |
| | 91 |
| | | 22 |
| | 20 |
| | 22 |
| | 21 |
| | 85 |
| | | 24 |
| | 28 |
|
| Amortization | 42 |
| | | 9 |
| | 9 |
| | 9 |
| | 9 |
| | 36 |
| | | 10 |
| | 10 |
| | 10 |
| | 12 |
| | 42 |
| | | 19 |
| | 20 |
|
OIBDA(1) | 705 |
| | | 28 |
| | 130 |
| | 158 |
| | 231 |
| | 547 |
| | | 23 |
| | 154 |
| | 147 |
| | 133 |
| | 457 |
| | | (77 | ) | | 27 |
|
| Asset impairments | 17 |
| | | — |
| | — |
| | — |
| | 6 |
| | 6 |
| | | — |
| | — |
| | — |
| | 79 |
| | 79 |
| | | 26 |
| | — |
|
| Goodwill impairment | — |
| | | — |
| | — |
| | — |
| | — |
| | — |
| | | — |
| | — |
| | — |
| | — |
| | — |
| | | — |
| | 26 |
|
| Restructuring and severance costs | 18 |
| | | 6 |
| | 12 |
| | 6 |
| | 3 |
| | 27 |
| | | 53 |
| | 1 |
| | 4 |
| | 5 |
| | 63 |
| | | 115 |
| | 55 |
|
| (Gain) loss on operating assets | — |
| | | 42 |
| | — |
| | (1 | ) | | (5 | ) | | 36 |
| | | — |
| | — |
| | — |
| | (13 | ) | | (13 | ) | | | — |
| | — |
|
Other costs(2) | — |
| | | 1 |
| | — |
| | — |
| | — |
| | 1 |
| | | — |
| | — |
| | 1 |
| | — |
| | 1 |
| | | — |
| | 5 |
|
Adjusted OIBDA(3) | $ | 740 |
| | | $ | 77 |
| | $ | 142 |
| | $ | 163 |
| | $ | 235 |
| | $ | 617 |
| | | $ | 76 |
| | $ | 155 |
| | $ | 152 |
| | $ | 204 |
| | $ | 587 |
| | | $ | 64 |
| | $ | 113 |
|
___________________
(1) OIBDA is defined as operating income (loss) less depreciation and amortization.
(2) Other costs are primarily transaction costs related to acquisitions and dispositions during the periods presented.
(3) Adjusted OIBDA is defined as OIBDA less Asset impairments, Goodwill impairment, Restructuring and severance costs, Gains or losses on operating assets and other costs related to acquisitions, dispositions and mergers.
