Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Time Warner Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
Net income	5,244)	3,925)	3,832)	3,827)	3,691)
Discontinued operations, net of tax	—)	(11)	(37)	67)	(137)
Net income from continuing operations	5,244)	3,914)	3,795)	3,894)	3,554)
Depreciation and amortization	694)	669)	681)	733)	886)
Amortization of film and television costs	9,162)	8,324)	8,030)	8,040)	7,262)
Asset impairments	16)	43)	25)	69)	140)
Venezuelan foreign currency loss	—)	—)	—)	173)	—)
(Gain) loss on investments and other assets, net	(367)	(131)	31)	(464)	(65)
Equity in losses of investee companies, net of cash distributions	191)	324)	161)	232)	218)
Equity-based compensation	227)	277)	182)	219)	256)
Deferred income taxes	(1,010)	236)	328)	166)	759)
Premiums paid and costs incurred on debt redemption	1,087)	1,008)	72)	—)	—)
Adjustments for noncash and nonoperating items	10,000)	10,750)	9,510)	9,168)	9,456)
Receivables	(704)	(1,201)	(112)	(403)	(366)
Inventories and film costs	(9,574)	(8,774)	(8,526)	(7,789)	(7,194)
Accounts payable and other liabilities	624)	631)	(200)	592)	(492)
Other changes	(496)	(637)	(616)	(1,781)	(1,242)
Changes in operating assets and liabilities, net of acquisitions	(10,150)	(9,981)	(9,454)	(9,381)	(9,294)
Cash provided by operations	5,094)	4,683)	3,851)	3,681)	3,716)
Investments in available-for-sale securities	(1)	(9)	(41)	(30)	(27)
Investments and acquisitions, net of cash acquired	(706)	(1,228)	(672)	(950)	(485)
Capital expenditures	(656)	(432)	(423)	(474)	(602)
Proceeds from Time Inc. in the Time Separation	—)	—)	—)	1,400)	—)
Proceeds from the sale of Time Warner Center	—)	—)	—)	1,264)	—)
Other investment proceeds	367)	309)	143)	173)	204)
Cash (used) provided by investing activities	(996)	(1,360)	(993)	1,383)	(910)
Borrowings	4,270)	3,830)	3,768)	2,409)	1,028)
Debt repayments	(5,001)	(3,304)	(2,344)	(72)	(762)
Proceeds from exercise of stock options	206)	172)	165)	338)	674)
Excess tax benefit from equity instruments	—)	88)	151)	179)	179)
Principal payments on capital leases	(39)	(14)	(11)	(11)	(9)
Repurchases of common stock	—)	(2,322)	(3,632)	(5,504)	(3,708)
Dividends paid	(1,265)	(1,269)	(1,150)	(1,109)	(1,074)
Other financing activities	(1,172)	(1,103)	(260)	(173)	(111)
Cash used by financing activities	(3,001)	(3,922)	(3,313)	(3,943)	(3,783)
Cash used by operations from discontinued operations	(15)	(17)	(8)	(16)	(2)
Cash used by investing activities from discontinued operations	—)	—)	—)	(51)	—)
Cash used by financing activities from discontinued operations	—)	—)	—)	(36)	—)
Effect of change in cash and equivalents of discontinued operations	—)	—)	—)	(87)	—)
Cash used by discontinued operations	(15)	(17)	(8)	(190)	(2)
Effect of Venezuelan exchange rate changes on cash and equivalents	—)	—)	—)	(129)	—)
Increase (decrease) in cash and equivalents	1,082)	(616)	(463)	802)	(979)
Cash and equivalents at beginning of period	1,539)	2,155)	2,618)	1,816)	2,841)
Cash and equivalents at end of period	2,621)	1,539)	2,155)	2,618)	1,862)

Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).

Download chart

Cash flow statement item	Description	The company
Cash provided by operations	Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities.	Time Warner Inc. cash provided by operations increased from 2015 to 2016 and from 2016 to 2017.
Cash (used) provided by investing activities	Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets.	Time Warner Inc. cash (used) provided by investing activities decreased from 2015 to 2016 but then increased from 2016 to 2017 not reaching 2015 level.
Cash used by financing activities	Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit.	Time Warner Inc. cash used by financing activities decreased from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

Time Warner Inc. (NYSE:TWX)

Cash Flow Statement