TIME WARNER INC. | 2013 | FY | 3


15. SEGMENT INFORMATION

 

Time Warner classifies its operations into four 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; Warner Bros.: consisting principally of feature film, television, home video and videogame production and distribution; and Time Inc.: consisting principally of magazine publishing and related websites and operations. In the fourth quarter of 2013, the Company separated its former Networks reportable segment into two reportable segments: Turner and Home Box Office.  In addition, during the fourth quarter of 2013, the Company changed the names of its Film and TV Entertainment reportable segment to Warner Bros. and its Publishing reportable segment to Time Inc. The new presentation had no impact on the historical consolidated financial information previously reported by the Company.

 

The Revenues, intersegment revenues, depreciation of property, plant, and equipment, Amortization of intangible assets, Operating Income (Loss), Assets and Capital expenditures in each of Time Warner's reportable segments is set forth below (millions):

 

   Year Ended December 31, 2013
   Subscription Advertising Content Other  Total
 Revenues               
 Turner $ 4,896 $ 4,534 $ 363 $ 190 $ 9,983
 Home Box Office   4,231   -   658   1   4,890
 Warner Bros.   130   81   11,764   337   12,312
 Time Inc.   1,129   1,807   86   332   3,354
 Intersegment eliminations   (7)   (96)   (631)   (10)   (744)
 Total revenues $ 10,379 $ 6,326 $ 12,240 $ 850 $ 29,795
                 
   Year Ended December 31, 2012
   Subscription Advertising Content Other  Total
 Revenues               
 Turner $ 4,660 $ 4,315 $ 369 $ 183 $ 9,527
 Home Box Office   4,010   -   676   -   4,686
 Warner Bros.   117   81   11,522   298   12,018
 Time Inc.   1,210   1,819   91   316   3,436
 Intersegment eliminations   -   (94)   (826)   (18)   (938)
 Total revenues $ 9,997 $ 6,121 $ 11,832 $ 779 $ 28,729
                 
   Year Ended December 31, 2011
   Subscription Advertising Content Other  Total
 Revenues               
 Turner $ 4,398 $ 4,196 $ 417 $ 155 $ 9,166
 Home Box Office   3,768   -   730   -   4,498
 Warner Bros.   86   85   12,274   193   12,638
 Time Inc.   1,271   1,923   84   399   3,677
 Intersegment eliminations   -   (88)   (870)   (47)   (1,005)
 Total revenues $ 9,523 $ 6,116 $ 12,635 $ 700 $ 28,974

   Year Ended December 31,
   2013 2012 2011
 Intersegment Revenues         
 Turner $ 95 $ 91 $ 84
 Home Box Office   14   14   18
 Warner Bros.   625   812   854
 Time Inc.   10   21   49
 Total intersegment revenues $ 744 $ 938 $ 1,005

   Year Ended December 31,
   2013 2012 2011
 Depreciation of Property, Plant and Equipment         
 Turner $ (231) $ (238) $ (251)
 Home Box Office   (91)   (85)   (75)
 Warner Bros.   (200)   (202)   (198)
 Time Inc.   (85)   (91)   (100)
 Corporate   (28)   (28)   (29)
 Total depreciation of property, plant and equipment $ (635) $ (644) $ (653)

   Year Ended December 31,
   2013 2012 2011
 Amortization of Intangible Assets         
 Turner $ (21) $ (25) $ (33)
 Home Box Office   (9)   (7)   (8)
 Warner Bros.   (179)   (180)   (186)
 Time Inc.   (42)   (36)   (42)
 Total amortization of intangible assets $ (251) $ (248) $ (269)

   Year Ended December 31,
   2013 2012 2011
 Operating Income (Loss)         
 Turner $ 3,486 $ 3,172 $ 3,014
 Home Box Office   1,791   1,547   1,402
 Warner Bros.   1,324   1,228   1,263
 Time Inc.   337   420   563
 Corporate   (394)   (352)   (347)
 Intersegment eliminations   61   (97)   (90)
 Total operating income (loss) $ 6,605 $ 5,918 $ 5,805

   December 31, 2013 December 31, 2012
 Assets      
 Turner $ 26,067 $ 25,953
 Home Box Office   13,687   13,297
 Warner Bros.   20,066   19,853
 Time Inc.   5,667   5,850
 Corporate   2,507   3,136
 Total assets $ 67,994 $ 68,089

   Year Ended December 31,
   2013 2012 2011
 Capital Expenditures         
 Turner $ 210 $ 229 $ 235
 Home Box Office   45   65   95
 Warner Bros.   236   270   313
 Time Inc.   34   34   48
 Corporate   77   45   81
 Total capital expenditures $ 602 $ 643 $ 772

Long-lived hard assets located outside the United States, which represent approximately 1% of total assets at December 31, 2013, are not material. Revenues in different geographical areas are as follows (millions):

   Year Ended December 31,
   2013 2012 2011
 Revenues(a)         
 United States and Canada $ 21,411 $ 20,729 $ 20,634
 Europe(b)   4,956   4,757   5,142
 Asia/Pacific Rim   1,666   1,645   1,599
 Latin America   1,534   1,346   1,358
 All Other   228   252   241
 Total revenues $ 29,795 $ 28,729 $ 28,974
 ____________         

(a)       Revenues are attributed to region based on location of customer.

(b)       Revenues in the EuroZone countries comprise approximately 44%, 45% and 46% of Europe Revenues for the years ended 2013, 2012 and 2011, respectively.


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