Selected Financial Data
since 2005
Income Statement
Time Warner Inc., selected items from income statement, long-term trends
US$ in millions
| 12 months ended: | Revenues | Operating income (loss) | Net income (loss) attributable to Time Warner Inc. shareholders |
|---|---|---|---|
| Dec 31, 2017 | 31,271) | 7,920) | 5,247) |
| Dec 31, 2016 | 29,318) | 7,547) | 3,926) |
| Dec 31, 2015 | 28,118) | 6,865) | 3,833) |
| Dec 31, 2014 | 27,359) | 5,975) | 3,827) |
| Dec 31, 2013 | 29,795) | 6,605) | 3,691) |
| Dec 31, 2012 | 28,729) | 5,918) | 3,019) |
| Dec 31, 2011 | 28,974) | 5,805) | 2,886) |
| Dec 31, 2010 | 26,888) | 5,428) | 2,578) |
| Dec 31, 2009 | 25,785) | 4,545) | 2,468) |
| Dec 31, 2008 | 46,984) | (15,957) | (13,402) |
| Dec 31, 2007 | 46,482) | 8,949) | 4,387) |
| Dec 31, 2006 | 44,224) | 7,362) | 6,552) |
| Dec 31, 2005 | 43,652) | 4,519) | 2,905) |
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), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
The financial performance from 2005 to 2017 is characterized by a period of initial growth, a severe contraction between 2008 and 2009, and a subsequent phase of steady recovery and moderate expansion. The most significant volatility is observed in the 2008 fiscal year, which acted as a critical pivot point for the company's profitability and revenue scale.
- Revenue Trends
- Revenues experienced a gradual increase from 2005 to 2008, peaking at 46,984 million US$. A sharp decline occurred in 2009, where revenues fell to 25,785 million US$, representing a reduction of approximately 45% in a single year. Following this contraction, a consistent upward trajectory was maintained through 2017, with revenues climbing steadily to 31,271 million US$. Despite this recovery, revenues remained significantly lower than the pre-2009 peaks.
- Operating Income Performance
- Operating results showed strong growth between 2005 and 2007, with income nearly doubling from 4,519 million US$ to 8,949 million US$. This was followed by a substantial operating loss of 15,957 million US$ in 2008. From 2009 onward, operating income returned to positive territory and exhibited a stable growth pattern, rising from 4,545 million US$ in 2009 to 7,920 million US$ by 2017.
- Net Income Analysis
- Net income attributable to shareholders followed a pattern similar to operating income, though with different magnitudes. After peaking in 2006 at 6,552 million US$, the company suffered a massive net loss of 13,402 million US$ in 2008. The post-2008 period is marked by a disciplined and linear recovery; net income grew every year from 2009 (2,468 million US$) through 2017 (5,247 million US$), indicating a successful stabilization of the bottom line.
- Profitability and Margin Insights
- An analysis of the relationship between revenues and income suggests a shift in the company's financial structure. While the 2008 loss was an extreme anomaly, the period from 2009 to 2017 demonstrates improved operational efficiency. Specifically, the company managed to grow both operating and net income consistently even while revenues grew at a more moderate pace, suggesting an expansion of profit margins in the latter part of the observed period.
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Balance Sheet: Assets
Time Warner Inc., selected items from assets, long-term trends
US$ in millions
| Current assets | Total assets | |
|---|---|---|
| Dec 31, 2017 | 15,219) | 69,209) |
| Dec 31, 2016 | 13,485) | 65,966) |
| Dec 31, 2015 | 12,513) | 63,848) |
| Dec 31, 2014 | 13,180) | 63,259) |
| Dec 31, 2013 | 12,844) | 67,994) |
| Dec 31, 2012 | 13,288) | 68,304) |
| Dec 31, 2011 | 13,432) | 67,801) |
| Dec 31, 2010 | 13,138) | 66,524) |
| Dec 31, 2009 | 13,007) | 65,730) |
| Dec 31, 2008 | 16,602) | 113,896) |
| Dec 31, 2007 | 12,451) | 133,830) |
| Dec 31, 2006 | 10,851) | 131,669) |
| Dec 31, 2005 | 13,463) | 122,475) |
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), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
The financial trajectory of total assets is characterized by a significant structural contraction followed by a prolonged period of stability. Between 2005 and 2007, total assets experienced growth, peaking at 133,830 million. However, a substantial decline occurred starting in 2008, culminating in a sharp reduction to 65,730 million by 2009. Following this contraction, total assets remained remarkably consistent for nearly a decade, fluctuating within a narrow band between 63,259 million and 69,209 million.
- Current Asset Volatility
- Current assets demonstrated relative stability compared to total assets, although a notable peak occurred in 2008 at 16,602 million. Following this peak, current assets returned to a baseline range of approximately 12,500 million to 13,500 million for the majority of the subsequent period, before rising to 15,219 million by 2017.
- Asset Composition Shift
- A significant shift in the proportion of liquid assets relative to the total asset base is evident. In 2005, current assets represented approximately 11% of total assets. Following the drastic reduction in total assets in 2009, the composition shifted; by 2017, current assets constituted approximately 22% of the total asset base.
- Long-term Asset Reduction
- The most prominent trend is the permanent reduction in non-current assets. While current assets remained relatively stable throughout the entire 2005-2017 period, total assets fell by approximately 51% between 2007 and 2009 and never recovered to previous levels, suggesting a major divestiture or accounting reclassification during the 2008-2009 window.
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Balance Sheet: Liabilities and Stockholders’ Equity
Time Warner Inc., selected items from liabilities and stockholders’ equity, long-term trends
US$ in millions
| Current liabilities | Total debt | Total Time Warner Inc. shareholders’ equity | |
|---|---|---|---|
| Dec 31, 2017 | 14,077) | 23,744) | 28,375) |
| Dec 31, 2016 | 9,703) | 24,339) | 24,335) |
| Dec 31, 2015 | 8,002) | 23,792) | 23,619) |
| Dec 31, 2014 | 9,204) | 22,494) | 24,476) |
| Dec 31, 2013 | 8,383) | 20,165) | 29,904) |
| Dec 31, 2012 | 9,829) | 19,871) | 29,877) |
| Dec 31, 2011 | 8,922) | 19,524) | 29,957) |
| Dec 31, 2010 | 8,643) | 16,549) | 32,940) |
| Dec 31, 2009 | 8,765) | 15,416) | 33,383) |
| Dec 31, 2008 | 13,976) | 39,683) | 42,288) |
| Dec 31, 2007 | 12,193) | 37,130) | 58,536) |
| Dec 31, 2006 | 12,780) | 34,997) | 60,389) |
| Dec 31, 2005 | 12,588) | 20,330) | 62,715) |
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), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
The financial trajectory between 2005 and 2017 is characterized by a significant long-term contraction in shareholders' equity and substantial volatility in debt levels, particularly surrounding the 2008-2009 period.
- Current Liabilities
- Current liabilities exhibited a peak of 13,976 million in 2008, followed by a sharp decline to 8,765 million in 2009. For the subsequent seven years, these liabilities remained relatively stable, fluctuating between 8,002 million and 9,829 million. However, a significant spike occurred in 2017, with current liabilities rising to 14,077 million, marking the highest level observed in the reported timeframe.
- Total Debt
- Total debt experienced aggressive growth from 2005 to 2008, rising from 20,330 million to 39,683 million. This peak was followed by a precipitous reduction in 2009, where debt fell to 15,416 million. Following this correction, total debt entered a period of gradual recovery, climbing steadily to 24,339 million by 2016 before a slight decrease to 23,744 million in 2017.
- Total Shareholders' Equity
- A sustained downward trend in shareholders' equity is evident from 2005 through 2015. Equity decreased from a high of 62,715 million in 2005 to a low of 23,619 million in 2015. The most acute decline occurred between 2008 and 2009, during which equity dropped by approximately 10 billion. A reversal of this trend began in 2016, with equity recovering to 28,375 million by the end of 2017.
- Capital Structure Analysis
- The overall capital structure shifted from an equity-heavy position in 2005 to a more leveraged position by 2017. While the absolute level of total debt in 2017 was lower than the 2008 peak, the simultaneous and permanent erosion of shareholders' equity from its 2005 levels indicates a fundamental change in the company's solvency profile. The 2009 fiscal year represents a critical pivot point where both debt and equity were drastically reduced, followed by a period where debt grew faster than equity for several years.
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Cash Flow Statement
Time Warner Inc., selected items from cash flow statement, long-term trends
US$ in millions
| 12 months ended: | Cash provided by operations | Cash (used) provided by investing activities | Cash provided (used) by financing activities |
|---|---|---|---|
| Dec 31, 2017 | 5,094) | (996) | (3,001) |
| Dec 31, 2016 | 4,683) | (1,360) | (3,922) |
| Dec 31, 2015 | 3,851) | (993) | (3,313) |
| Dec 31, 2014 | 3,681) | 1,383) | (3,943) |
| Dec 31, 2013 | 3,716) | (910) | (3,783) |
| Dec 31, 2012 | 3,476) | (1,246) | (2,831) |
| Dec 31, 2011 | 3,448) | (1,086) | (2,533) |
| Dec 31, 2010 | 3,314) | (1,436) | (2,924) |
| Dec 31, 2009 | 3,385) | 8,242) | (8,543) |
| Dec 31, 2008 | 10,332) | (6,486) | 1,320) |
| Dec 31, 2007 | 8,475) | (4,019) | (4,489) |
| Dec 31, 2006 | 8,598) | (12,472) | 1,203) |
| Dec 31, 2005 | 4,965) | (2,496) | (4,388) |
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), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
The cash flow profile from 2005 to 2017 is characterized by significant volatility in the early period followed by a phase of operational stabilization and gradual growth.
- Operating Cash Flow Trends
- Cash provided by operations exhibited a strong upward trajectory between 2005 and 2008, reaching a peak of 10,332 million US$. A sharp contraction occurred in 2009, where cash flow dropped precipitously to 3,385 million US$. From 2010 through 2015, operational cash flow remained relatively stagnant, fluctuating within a narrow band between 3.3 billion and 3.8 billion US$. A recovery phase emerged in 2016, with values rising to 5,094 million US$ by the end of 2017.
- Investing Activities Analysis
- Investing activities were predominantly characterized by cash outflows, indicating consistent capital expenditures or acquisitions. A substantial spike in spending was recorded in 2006, with an outflow of 12,472 million US$. A significant reversal occurred in 2009, yielding a cash inflow of 8,242 million US$, which suggests substantial asset divestitures or the liquidation of investments. In the subsequent period from 2010 to 2017, investing outflows became more moderate and stable, generally remaining under 1.5 billion US$ per annum, with a brief positive inflow in 2014.
- Financing Activities Analysis
- Financing activities were largely negative throughout the period, reflecting a consistent trend of debt repayment or shareholder distributions. While 2006 and 2008 saw modest cash inflows, 2009 experienced a major outflow of 8,543 million US$. From 2010 to 2017, financing outflows remained consistent, typically ranging between 2.5 billion and 3.9 billion US$, indicating a disciplined and steady approach to capital structure management and return of capital.
The overall financial trajectory indicates a period of aggressive investment and high operational yield prior to 2009, followed by a structural reset. The subsequent years demonstrate a transition toward operational stability and a consistent pattern of funding financing obligations through operating cash flows.
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Per Share Data
Time Warner Inc., selected data per share, long-term trends
US$
| 12 months ended: | Basic earnings per share 1 | Diluted earnings per share 2 | Dividend per share 3 |
|---|---|---|---|
| Dec 31, 2017 | 6.73 | 6.64 | 2.01 |
| Dec 31, 2016 | 5.01 | 4.96 | 1.61 |
| Dec 31, 2015 | 4.69 | 4.62 | 1.40 |
| Dec 31, 2014 | 4.42 | 4.34 | 1.27 |
| Dec 31, 2013 | 3.99 | 3.92 | 1.15 |
| Dec 31, 2012 | 3.14 | 3.09 | 1.04 |
| Dec 31, 2011 | 2.74 | 2.71 | 0.94 |
| Dec 31, 2010 | 2.27 | 2.25 | 0.85 |
| Dec 31, 2009 | 2.08 | 2.07 | 0.75 |
| Dec 31, 2008 | -11.22 | -11.22 | 0.75 |
| Dec 31, 2007 | 3.54 | 3.51 | 0.72 |
| Dec 31, 2006 | 4.71 | 4.65 | 0.63 |
| Dec 31, 2005 | 1.86 | 1.86 | 0.30 |
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), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1, 2, 3 Data adjusted for splits and stock dividends.
The per share financial metrics from 2005 to 2017 demonstrate a general trajectory of growth and recovery, characterized by a significant earnings shock in 2008 followed by a sustained period of expansion in both profitability and shareholder distributions.
- Earnings Per Share (EPS) Trends
- Basic and diluted earnings per share exhibit a highly volatile start to the period, with a peak in 2006 followed by a sharp decline. A critical inflection point occurred on December 31, 2008, where basic EPS fell to -11.22 USD, indicating a severe temporary loss. However, from 2009 onward, a consistent upward trend is observed. Basic EPS grew from 2.08 USD in 2009 to 6.73 USD by 2017, reflecting a robust recovery and steady increase in net profitability over the latter eight years of the period.
- Dilution Impact
- The variance between basic and diluted earnings per share remains minimal throughout the entire period. The close proximity of these two figures suggests that the impact of dilutive securities, such as stock options or convertible bonds, has been negligible, providing a stable view of earnings available to common shareholders.
- Dividend Distribution Policy
- Dividend per share demonstrates a remarkably stable and linear growth pattern, rising from 0.30 USD in 2005 to 2.01 USD in 2017. Notably, dividend payments continued to increase even during the 2008 fiscal year when the company experienced significant negative earnings. This divergence suggests a corporate strategy focused on maintaining shareholder confidence and providing consistent returns despite short-term operational volatility.
- Earnings-to-Dividend Relationship
- While earnings experienced a dramatic collapse in 2008, the dividend policy remained decoupled from annual earnings volatility. By 2017, the growth in earnings per share significantly outpaced the growth in dividends, indicating an increasing capacity to sustain current payout levels and potentially fund future growth or higher distributions.
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