Time Inc.

CIK:0001591517|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues
Advertising	$ 369,000	$ 417,000	$ 1,074,000	$ 1,203,000
Circulation	197,000	223,000	609,000	697,000
Other	113,000	110,000	326,000	309,000
Total revenues	679,000	750,000	2,009,000	2,209,000
Costs of revenues	280,000	327,000	867,000	956,000
Selling, general and administrative expenses	306,000	339,000	976,000	1,085,000
Amortization of intangible assets	20,000	22,000	59,000	63,000
Restructuring and severance costs	26,000	43,000	73,000	54,000
Asset impairments	0	188,000	5,000	189,000
Goodwill impairment	0	0	50,000	0
(Gain) loss on operating assets, net	(4,000)	(2,000)	(8,000)	(18,000)
Operating income (loss)	51,000	(167,000)	(13,000)	(120,000)
Bargain purchase (gain)	0	0	0	(3,000)
Interest expense, net	16,000	16,000	50,000	51,000
Other (income) expense, net	6,000	2,000	10,000	9,000
Income (loss) before income taxes	29,000	(185,000)	(73,000)	(177,000)
Income tax provision (benefit)	16,000	(73,000)	(14,000)	(73,000)
Net income (loss)	13,000	(112,000)	(59,000)	(104,000)
Less: Net income (loss) attributable to noncontrolling interests	0	0	0	0
Net income (loss) attributable to Time Inc.	$ 13,000	$ (112,400)	$ (59,000)	$ (104,390)
Per share information attributable to Time Inc. common stockholders:
Basic (in dollars per share)	$ 0.14	$ (1.13)	$ (0.59)	$ (1.05)
Weighted average basic common shares outstanding	99,860	99,640	99,740	99,430
Diluted (in dollars per share)	$ 0.14	$ (1.13)	$ (0.59)	$ (1.05)
Weighted average diluted common shares outstanding	100,120	99,640	99,740	99,430
Cash dividends declared per share of common stock	$ 0.04	$ 0.19	$ 0.27	$ 0.57

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
OPERATING ACTIVITIES
Net income (loss)	$ (59)	$ (104)
Adjustments to reconcile Net income (loss) to Cash provided by (used in) operations
Depreciation and amortization	101	104
Amortization of deferred financing costs and discounts on indebtedness	3	4
Asset impairments	5	189
Goodwill impairment	50	0
(Gain) loss on sale of operating assets	(1)	(11)
(Gain) loss on repurchases of 5.75% Senior Notes	0	(4)
Amortization of deferred gain on sale-leaseback	(6)	(7)
Bargain purchase (gain)	0	(3)
(Income) loss on equity-method investments	3	12
Cost-method investment impairment	4	0
Equity-based compensation expense	18	21
Deferred income taxes	(26)	(77)
Changes in operating assets and liabilities
Receivables	161	75
Inventories	2	(4)
Prepaid expenses and other assets	(18)	15
Accounts payable and other liabilities	(107)	(110)
Other, net	9	6
Cash provided by (used in) operations	139	106
INVESTING ACTIVITIES
Acquisitions, net of cash acquired	(22)	(192)
(Investments in) dispositions of cost and equity-method investments	(3)	(19)
Proceeds from (payments for) dispositions	(4)	29
Purchases of short-term investments	0	(60)
Maturities of short-term investments	40	60
Capital expenditures	(56)	(78)
Issuances of notes receivable	(2)	(16)
Proceeds from Collection of Notes Receivable	1	0
Cash provided by (used in) investing activities	(46)	(276)
FINANCING ACTIVITIES
Purchase of common stock	0	(111)
Repurchase of 5.75% Senior Notes	0	(45)
Principal payments on Term Loan	(20)	(5)
Withholding taxes paid on equity-based compensation	(8)	(8)
Dividends paid	(27)	(58)
Contingent/deferred consideration payments	(3)	(2)
Cash provided by (used in) financing activities	(58)	(229)
Effect of exchange rate changes on Cash and cash equivalents	1	(8)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	36	(407)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	296	651
CASH AND CASH EQUIVALENTS, END OF PERIOD	$ 332	$ 244

CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions

Sep. 30, 2017

Dec. 31, 2016

Current assets

Cash and cash equivalents

$ 332

$ 296

Short-term investments

^[1]

Receivables, less allowances of $185 and $203 at September 30, 2017 and December 31, 2016, respectively

409

543

Inventories, net of reserves

Prepaid expenses and other current assets

125

110

Total current assets

895

1,020

Property, plant and equipment, net

311

304

Intangible assets, net

799

846

Goodwill

2,048

2,069

Other assets

Total assets

4,118

4,305

Current liabilities

Accounts payable and accrued liabilities

535

598

Deferred revenue

386

403

Current portion of long-term debt

Total current liabilities

928

1,008

Long-term debt

1,216

1,233

Deferred tax liabilities

185

210

Deferred revenue

Other noncurrent liabilities

333

328

Commitments and contingencies (Note 13)

Redeemable noncontrolling interests

Stockholders' equity

Common stock, $0.01 par value, 400 million shares authorized; 99.61 million and 98.95 million shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively

Preferred stock, $0.01 par value, 40 million shares authorized; none issued

Additional paid-in capital

12,531

12,548

Accumulated deficit

(10,791)

(10,732)

Accumulated other comprehensive loss, net

(362)

(377)

Total Time Inc. stockholders' equity

1,379

1,440

Stockholders' Equity Attributable to Noncontrolling Interest

Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest

1,379

1,440

Total liabilities and stockholders' equity

$ 4,118

$ 4,305

[1]

Our Short-term investments consist of term deposits with original maturities greater than three months and remaining maturities of less than one year. Our term deposits are carried at amortized cost on the accompanying Balance Sheets as held-to-maturity securities. Cost approximates fair value due to the short-term nature of the term deposits.