-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QO+x/FMtSo+LoBC9RopijLIpPtCtPjOwGikH3leZOXZxPtezcBApviCRguBXzS3J MX8jAvjk5Tbv86lGGMnW9Q== 0000950117-02-002474.txt : 20021023 0000950117-02-002474.hdr.sgml : 20021023 20021023172836 ACCESSION NUMBER: 0000950117-02-002474 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20021023 ITEM INFORMATION: Other events ITEM INFORMATION: FILED AS OF DATE: 20021023 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AOL TIME WARNER INC CENTRAL INDEX KEY: 0001105705 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MOTION PICTURE & VIDEO TAPE PRODUCTION [7812] IRS NUMBER: 134099534 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-15062 FILM NUMBER: 02796498 BUSINESS ADDRESS: STREET 1: 75 ROCKEFELLER PLAZA CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 2124848000 MAIL ADDRESS: STREET 1: 75 ROCKEFELLER PLAZA CITY: NEW YORK STATE: NY ZIP: 10019 8-K 1 a33583.txt AOL TIME WARNER SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 23, 2002 AOL TIME WARNER INC. (Exact name of registrant as specified in its charter) Delaware 001-15062 13-4099534 ------------------------------------------------------------------- (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File Number) Identification No.) 75 Rockefeller Plaza, New York, New York 10019 ----------------------------------------------------- (Address of principal executive offices) (zip code) 212 484-8000 ------------ (Registrant's telephone number, including area code) Not Applicable -------------- (Former name or former address, if changed since last report) Item 5. Other Events As a result of the restatement announced on October 23, 2002 by AOL Time Warner Inc. (the "Company"), the Company's financial statements for the affected periods should no longer be relied upon, including the audited financial statements for 2000 and 2001 contained in the Company's annual report on Form 10-K for the year ended December 31, 2001. Item 9. Regulation FD Disclosure. On October 23, 2002, AOL Time Warner Inc. (the "Company") announced that, as a result of its previously reported review of certain advertising and commerce transactions at the America Online division, under the direction of the Company's Chief Financial Officer, the financial results for each of the quarters ended September 30, 2000 through June 30, 2002 will be restated. The total impact of the adjustments will be to reduce the Company's consolidated advertising and commerce revenues by $190 million over these eight quarterly periods, with a corresponding reduction in EBITDA for that same time period of $97 million. In addition, the total impact of these adjustments is to the Company's consolidated operating income and net income by $83 million and $46 million, respectively. For the America Online division, the impact of the adjustments will be to reduce advertising and commerce revenues by $168 million over these eight quarterly periods, with a corresponding reduction in EBITDA for that same time period of $97 million. The remaining $22 million represents a reduction in revenues from certain transactions related to the America Online Division in which the advertising was delivered by other AOL Time Warner divisions. The adjustments represent approximately 1% of the America Online segment's total revenues for that same two-year period, approximately 3.4% of its advertising and commerce revenues, and approximately 1.6% of its EBITDA. The largest impact of the adjustments is in the quarter ended September 30, 2000, for which advertising and commerce revenues will be reduced by $66 million and EBITDA will be reduced by $30 million. It is expected that the restated financial statements for the affected periods will be filed with the Securities and Exchange Commission in the fourth quarter. The Company has furnished to the SEC as an exhibit to this Report schedules setting forth the impact of the adjustments to be reflected in the restated financial statements the Company intends to file. The information contained in this Current Report on Form 8-K, including the exhibit, has not been audited by the Company's outside auditors. The information contained in Item 9 of this Current Report on Form 8-K, including the exhibit, shall not be deemed to be incorporated by reference into the Company's filings with the SEC under the Securities Act of 1933. Exhibits. The following exhibit is furnished as part of this Report: Exhibit Description - ------- ----------- 99.1 Unaudited Impact of Restatements (for the years ended December 31, 2000 and 2001, and the six months ended June 30, 2002); and Unaudited Restated Historical Consolidated Statements of Operations (for the years ended December 31, 2000 and 2001, and the six months ended June 30, 2002) AOL TIME WARNER INC. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. AOL TIME WARNER INC. (Registrant) By: /s/ Wayne H. Pace ---------------------------------------- Name: Wayne H. Pace Title: Executive Vice President and Chief Financial Officer Dated: October 23, 2002 EXHIBIT INDEX Pursuant to Item 601 of Regulations S-K
Exhibit Description - ------- ----------- 99.1 Unaudited Impact of Restatements (for the years ended December 31, 2000 and 2001, and the six months ended June 30, 2002); and Unaudited Restated Historical consolidated Statements of Operations (for the year ended December 31, 2000 and 2001, and the six months ended June 30, 2002)
Impact of Restatement on Consolidated Statements of Operations The following schedules reflect the unaudited impact resulting from AOL Time Warner Inc.'s ("AOL Time Warner") internal review of certain advertising and commerce transactions at its AOL segment on certain significant financial metrics for each of the affected periods of the restatement. Specifically, the impact of the restatement on certain significant financial metrics related to the historical results of the AOL segment and AOL Time Warner (for 2000, the impact on America Online, Inc., predecessor to AOL Time Warner) have been reflected. Although there was no impact from the restatement on the first two quarters of 2000, such quarterly information has been included in the schedules in order to provide a more complete depiction of the impact of the restatement on the year ended December 31, 2000. In addition to the restatement impact schedules, unaudited AOL Time Warner historical statements of operations for the affected periods, reflecting the impact of the restatement, are presented. The schedules also reflect the impact of the restatement on certain significant financial metrics related to the AOL Time Warner Pro Forma results for the year ended December 31, 2001, that had been included in the trending schedules previously posted on AOL Time Warner Inc.'s web site. The pro forma amounts prior to the restatement took into account the following: o New Accounting Standard for Goodwill and Other Intangible Assets. During 2001, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards No. 142 "Goodwill and Other Intangible Assets" ("FAS 142"), which requires that, effective January 1, 2002, goodwill, including the goodwill included in the carrying value of investments accounted for using the equity method of accounting, and certain other intangible assets deemed to have an indefinite useful life, cease amortizing. FAS 142 does not require retroactive restatement for all periods presented, however, the accompanying pro forma information for 2000 and 2001 assumes that FAS 142 was in effect beginning January 1, 2000. o Consolidation of AOL Europe, S.A. ("AOL Europe"). On January 31, 2002, AOL Time Warner acquired 80% of Bertelsmann AG's ("Bertelsmann") 49.5% interest in AOL Europe for $5.3 billion in cash and on July 1, 2002 acquired the remaining 20% of Bertelsmann's interest for $1.45 billion in cash. As a result of the purchase of Bertelsmann's interest in AOL Europe, AOL Time Warner has a majority interest in and began consolidating AOL Europe, retroactive to the beginning of 2002. The pro forma information for 2000 and 2001 assumes the interests in AOL Europe were acquired on January 1, 2000. o Consolidation of IPC Group Limited ("IPC"). In October 2001, AOL Time Warner's Publishing segment acquired IPC, the parent company of IPC Media, from Cinven, one of Europe's leading private equity firms, for approximately $1.6 billion. The pro forma information for 2000 and 2001 assumes that IPC was acquired on January 1, 2000. o Restructuring of Time Warner Entertainment-Advance/Newhouse Partnership ("TWE-A/N"). AOL Time Warner and the Advance/Newhouse Partnership ("Advance/Newhouse") agreed to restructure TWE-A/N whereby Advance/Newhouse assumed management responsibilities for certain cable systems of TWE-A/N (the "Advance/Newhouse Systems") to the extent permitted under applicable governmental regulations, beginning August 1, 2002 (the "TWE-A/N Restructuring"). The TWE-A/N Restructuring is anticipated to be completed by the end of 2002, upon receipt of certain regulatory approvals. As required under generally accepted accounting principles, AOL Time Warner has deconsolidated the results of the Advance/Newhouse Systems and has classified the results of those systems, net of the portion of TWE-A/N's results historically attributable to Advance/Newhouse, as minority partners in TWE-A/N, and net of tax, as discontinued operations for all periods presented. The pro forma information for 2000 and 2001 assumes that the deconsolidation of the Advance/Newhouse Systems occurred on January 1, 2000. o Consolidation of Road Runner. In August 2002, AOL Time Warner's Cable segment acquired Advance/Newhouse's 17% indirect ownership in Road Runner, increasing AOL Time Warner fully attributed ownership to approximately 82%. As a result of the termination of Advance/Newhouse's minority rights in Road Runner, AOL Time Warner has consolidated the financial position and results of operations of Road Runner with the financial position and results of operations of AOL Time Warner's Cable segment. As permitted under generally accepted accounting principles, AOL Time Warner has consolidated the results of Road Runner retroactive to the beginning of 2002. The pro forma information for 2000 and 2001 assumes that Road Runner was consolidated as of January 1, 2000. o Reimbursement of "Out-of-Pocket" Expenses. In November 2001, the FASB Staff issued as interpretive guidance Emerging Issues Task Force ("EITF") Topic No. D-103, "Income Statement Characterization of Reimbursements Received for 'Out-of-Pocket' Expenses Incurred" ("Topic D-103"). Topic D-103 requires that reimbursements received for out-of-pocket expenses be classified as revenue on the income statement. This change in revenue classification impacts AOL Time Warner's Cable and Music segments. o Emerging Issues Task Force Issue No. 01-09. In April 2001, the FASB's EITF reached a final consensus on EITF Issue No. 00-25, "Vendor Income Statement Characterization of Consideration Paid to a Reseller of the Vendor's Products," which was later codified along with other similar issues, into EITF 01-09, "Accounting for Consideration Given by a Vendor to a Customer or a Reseller of the Vendor's Products" ("EITF 01-09"). EITF 01-09 clarifies the income statement classification of costs incurred by a vendor in connection with the reseller's purchase or promotion of the vendor's products, resulting in certain cooperative advertising and product placement costs previously classified as selling expenses to be reflected as a reduction of revenues earned from that activity. The new guidance impacts AOL Time Warner's AOL, Music and Publishing segments. The attached historical information through December 31, 2001 reflects the information reported in the AOL Time Warner's filings with the SEC and therefore does not include the impact of Topic D-103 and EITF 01-09 which were required to be retroactively adopted for all periods presented beginning in the first quarter of 2002. The historical information for all periods presented in the attached schedules does not reflect the impact of the deconsolidation of the Advance/Newhouse Systems pursuant to the TWE-A/N Restructuring that was announced in June 2002 and will be reflected as a discontinued operation beginning in the third quarter of 2002. EX-99 3 ex99-1.txt EXHIBIT 99.1 AOL TIME WARNER INC. Impact of Restatements (Unaudited)
For the Three Months Ended ---------------------------------------- Year Ended 3/31/00 6/30/00 9/30/00 12/31/00 12/31/00 ------- ------- ------- -------- -------- (millions, except per share amounts) America Online Inc. (predecessor to AOL Time Warner Inc.) Revenues......................................... $1,814 $1,885 $1,945 $2,059 $7,703 Restatement...................................... - - (66) (22) (88) ------ ------ ------ ------ ------ Restated Revenues ............................... $1,814 $1,885 $1,879 $2,037 $7,615 ====== ====== ====== ====== ====== Advertising & Commerce Revenues.................. $528 $561 $594 $686 $2,369 Restatement...................................... - - (66) (22) (88) ---- ---- ---- ---- ------ Restated Advertising & Commerce Revenues......... $528 $561 $528 $664 $2,281 ==== ==== ==== ==== ====== EBITDA........................................... $484 $554 $592 $631 $2,261 Restatement...................................... - - (30) (22) (52) ---- ---- ---- ---- ------ Restated EBITDA.................................. $484 $554 $562 $609 $2,209 ==== ==== ==== ==== ====== Operating Income................................. $376 $456 $482 $503 $1,817 Restatement...................................... - - (30) (21) (51) ---- ---- ---- ---- ------ Restated Operating Income........................ $376 $456 $452 $482 $1,766 ==== ==== ==== ==== ======- Net Income....................................... $433 $338 $344 $37 $1,152 Restatement...................................... - - (18) (13) (31) ---- ---- ---- ---- ------ Restated Net Income.............................. $433 $338 $326 $24 $1,121 ==== ==== ==== === ====== Diluted Income per Common Share.................. $ 0.17 $ 0.13 $ 0.13 $ 0.01 $ 0.45 Restatement...................................... - - - - (0.02) ------ ------ ------ ------ ------ Restated Diluted Income per Common Share......... $ 0.17 $ 0.13 $ 0.13 $ 0.01 $ 0.43 ====== ====== ====== ====== ====== AOL Time Warner (Pro Forma) Revenues......................................... $8,426 $9,026 $8,896 $10,377 $36,725 Restatement...................................... - - (66) (22) (88) ------ ------ ------ ------ ------- Restated Revenues ............................... $8,426 $9,026 $8,830 $10,355 $36,637 ====== ====== ====== ======= ======= Advertising & Commerce Revenues.................. $1,899 $2,299 $2,074 $2,634 $8,906 Restatement...................................... - - (66) (22) (88) ------ ------ ------ ------ ------ Restated Advertising & Commerce Revenues......... $1,899 $2,299 $2,008 $2,612 $8,818 ====== ====== ====== ====== ====== EBITDA........................................... $1,581 $1,893 $1,821 $2,051 $7,346 Restatement...................................... - - (30) (22) (52) ------ ------ ------ ------ ------ Restated EBITDA.................................. $1,581 $1,893 $1,791 $2,029 $7,294 ====== ====== ====== ====== ====== Operating Income................................. $1,087 $1,403 $1,310 $1,493 $5,293 Restatement...................................... - - (30) (21) (51) ------ ------ ------ ------ ------ Restated Operating Income........................ $1,087 $1,403 $1,280 $1,472 $5,242 ====== ====== ====== ====== ====== Net Income (Loss)................................ $ (40) $ 493 $ 516 $ 234 $1,203 Restatement...................................... - - (18) (13) (31) ------ ------ ------ ------ ------ Restated Net Income (Loss)....................... $ (40) $ 493 $ 498 $ 221 $1,172 ====== ====== ====== ====== ====== Diluted Income (Loss) per Common Share........... $(0.01) $ 0.11 $ 0.12 $ 0.05 $ 0.28 Restatement...................................... - - (0.01) - (0.01) ------ ------ ------ ------ ------ Restated Diluted Income (Loss) per Common Share.. $(0.01) $ 0.11 $ 0.11 $ 0.05 $ 0.27 ====== ====== ====== ====== ======
AOL TIME WARNER INC. Impact of Restatements (Unaudited)
For the Three Months Ended ---------------------------------------- Year Ended 3/31/01 6/30/01 9/30/01 12/31/01 12/31/01 ------- ------- ------- -------- -------- (millions, except per share amounts) AOL Segment (Historical) Revenues......................................... $2,125 $2,138 $2,196 $2,259 $8,718 Restatement(1)................................... (13) (28) (16) (17) (74) ------ ------ ------ ------ ------ Restated Revenues ............................... $2,112 $2,110 $2,180 $2,242 $8,644 ====== ====== ====== ====== ====== Advertising & Commerce Revenues.................. $721 $706 $624 $637 $2,688 Restatement...................................... (13) (28) (16) (17) (74) ---- ---- ---- ---- ------ Restated Advertising & Commerce Revenues......... $708 $678 $608 $620 $2,614 ==== ==== ==== ==== ====== EBITDA........................................... $684 $801 $742 $718 $2,945 Restatement(1)................................... (1) (7) (6) (17) (31) ---- ---- ---- ---- ------ Restated EBITDA.................................. $683 $794 $736 $701 $2,914 ==== ==== ==== ==== ====== Operating Income................................. $548 $669 $602 $554 $2,373 Restatement...................................... - (5) (2) (15) (22) ---- ---- ---- ---- ------ Restated Operating Income........................ $548 $664 $600 $539 $2,351 ==== ==== ==== ==== ====== AOL Time Warner (Historical) Revenues......................................... $9,080 $9,202 $9,320 $10,632 $38,234 Restatement(1)................................... (14) (42) (16) (18) (90) ------ ------ ------ ------- ------- Restated Revenues ............................... $9,066 $9,160 $9,304 $10,614 $38,144 ====== ====== ====== ======= ======= Advertising & Commerce Revenues.................. $2,053 $2,278 $1,934 $2,222 $8,487 Restatement(1)................................... (14) (42) (16) (18) (90) ------ ------ ------ ------- ------- Restated Advertising & Commerce Revenues......... $2,039 $2,236 $1,918 $2,204 $8,397 ====== ====== ====== ====== ====== EBITDA........................................... $2,075 $2,537 $2,329 $2,715 $9,656 Restatement(2)................................... (1) (7) (6) (17) (31) ------ ------ ------ ------- ------- Restated EBITDA.................................. $2,074 $2,530 $2,323 $2,698 $9,625 ====== ====== ====== ====== ====== Operating Income (Loss).......................... $ (147) $ 276 $ 29 $ 295 $ 453 Restatement(2)................................... - (5) (2) (15) (22) ------ ------ ------ ------- ------- Restated Operating Income (Loss)................. $ (147) $ 271 $ 27 $ 280 $ 431 ====== ======= ====== ======= ======= Net Loss......................................... $(1,369) $ (734) $ (996) $(1,822) $(4,921) Restatement(2)................................... - (3) (1) (9) (13) ------ ------ ------ ------- ------- Restated Net Loss................................ $(1,369) $ (737) $ (997) $(1,831) $(4,934) ======= ====== ====== ======= ======= Diluted Loss per Common Share.................... $(0.31) $(0.17) $(0.22) $(0.41) $ (1.11) Restatement...................................... - - - - - ------ ------ ------ ------ ------- Restated Diluted Loss per Common Share........... $(0.31) $(0.17) $(0.22) $(0.41) $ (1.11) ======= ======= ======= ====== ======= AOL Time Warner (Pro Forma) Revenues......................................... $9,186 $9,349 $9,433 $10,624 $38,592 Restatement...................................... (14) (42) (16) (18) (90) ------ ------ ------ ------- ------- Restated Revenues ............................... $9,172 $9,307 $9,417 $10,606 $38,502 ====== ====== ====== ======= ======= Advertising & Commerce Revenues.................. $2,075 $2,317 $1,953 $2,206 $8,551 Restatement...................................... (14) (42) (16) (18) (90) ------ ------ ------ ------- ------- Restated Advertising & Commerce Revenues......... $2,061 $2,275 $1,937 $2,188 $8,461 ====== ====== ====== ====== ====== EBITDA........................................... $1,730 $2,234 $2,059 $2,335 $8,358 Restatement(2)................................... (1) (7) (6) - (14) ------ ------ ------ ------- ------- Restated EBITDA.................................. $1,729 $2,227 $2,053 $2,335 $8,344 ====== ====== ====== ====== ====== Operating Income................................. $1,137 $1,612 $1,438 $1,639 $5,826 Restatement(2)................................... - (5) (2) 2 (5) ------ ------ ------ ------- ------- Restated Operating Income........................ $1,137 $1,607 $1,436 $1,641 $5,821 ====== ====== ====== ====== ====== Net Income (Loss)................................ $ (51) $ 596 $ 396 $ (466) $ 475 Restatement(2)................................... - (3) (1) 1 (3) ----- ------ ------ ------ ------ Restated Net Income (Loss)....................... $ (51) $ 593 $ 395 $ (465) $ 472 ======= ====== ====== ====== ====== Diluted Income (Loss) per Common Share........... $(0.01) $ 0.13 $ 0.09 $(0.11) $ 0.10 Restatement...................................... - - - - - ----- ------ ------ ------ ------ Restated Diluted Income (Loss) per Common Share.. $(0.01) $ 0.13 $ 0.09 $(0.11) $ 0.10 ====== ====== ====== ====== ======
(1) Difference between AOL Segment and AOL Time Warner restatement relates to certain transactions for which the advertising was delivered by other AOL Time Warner divisions. (2) Difference in historical and pro forma restatement relates to the impact of AOL Europe, which was not consolidated into the historical results of AOL Time Warner until January 1, 2002. AOL TIME WARNER INC. Impact of Restatements (Unaudited)
For the Three For the Six Months Ended Months Ended ------------ ------------ 3/31/02 6/30/02 6/30/02 ------- ------- ------- (millions, except per share amounts) AOL Segment (Historical) Revenues......................................... $2,297 $2,266 $4,563 Restatement(1)................................... (6) - (6) ------ ------ ------ Restated Revenues ............................... $2,291 $2,266 $4,557 ====== ====== ====== Advertising & Commerce Revenues.................. $501 $412 $913 Restatement(1)................................... (6) - (6) ---- ---- ---- Restated Advertising & Commerce Revenues......... $495 $412 $907 ==== ==== ==== EBITDA........................................... $433 $473 $906 Restatement...................................... (15) 1 (14) ---- ---- ---- Restated EBITDA.................................. $418 $474 $892 ==== ==== ==== Operating Income................................. $262 $271 $533 Restatement...................................... (13) 3 (10) ---- ---- ---- Restated Operating Income........................ $249 $274 $523 ==== ==== ==== AOL Time Warner (Historical) Revenues......................................... $9,764 $10,575 $20,339 Restatement(1)................................... (12) - (12) ------ ------- ------- Restated Revenues ............................... $9,752 $10,575 $20,327 ====== ======= ======= Advertising & Commerce Revenues.................. $1,825 $2,070 $3,895 Restatement(1)................................... (12) - (12) ------ ------ ------ Restated Advertising & Commerce Revenues......... $1,813 $2,070 $3,883 ====== ====== ====== EBITDA........................................... $1,943 $2,463 $4,406 Restatement...................................... (15) 1 (14) ------ ------ ------ Restated EBITDA.................................. $1,928 $2,464 $4,392 ====== ====== ====== Operating Income................................. $1,209 $1,662 $2,871 Restatement...................................... (13) 3 (10) ------ ------ ------ Restated Operating Income........................ $1,196 $1,665 $2,861 ====== ====== ====== Net Income (Loss)................................ $(54,240) $ 394 $(53,846) Restatement...................................... (4) 2 (2) -------- ------- -------- Restated Net Income (Loss)....................... $(54,244) $ 396 $(53,848) ======== ======= ======== Diluted Income (Loss) per Common Share........... $(12.25) $ 0.09 $(12.12) Restatement...................................... - - - ------- ------ ------- Restated Diluted Income (Loss) per Common Share.. $(12.25) $ 0.09 $(12.12) ======= ====== =======
(1) Difference between AOL Segment and AOL Time Warner restatement relates to certain transactions for which the advertising was delivered by other AOL Time Warner divisions. AOL TIME WARNER INC. HISTORICAL CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
For the Three Months Ended ---------------------------------------- Year Ended 3/31/00 6/30/00 9/30/00 12/31/00 12/31/00 ------- ------- ------- -------- -------- (millions, except per share amounts) Revenues: Subscriptions............................... $1,153 $1,185 $1,206 $1,233 $4,777 Advertising and commerce.................... 528 561 528 664 2,281 Content and other........................... 133 139 145 140 557 ------ ------ ------ ------ ------ Total revenues.............................. 1,814 1,885 1,879 2,037 7,615 Costs of revenues................................ (987) (924) (958) (1,007) (3,876) Selling, general and administrative.............. (432) (476) (443) (513) (1,864) Amortization of goodwill and other intangible assets...................................... (19) (19) (26) (35) (99) Merger and restructuring costs................... - (10) - - (10) ------ ------ ------ ------ ------ Operating income................................. 376 456 452 482 1,766 Interest income, net............................. 58 73 80 64 275 Other income (expense), net...................... 280 7 9 (504) (208) Minority interest income (expense)............... (1) 1 - - - ------ ------ ------ ------ ------ Income before income taxes....................... 713 537 541 42 1,833 Income tax provision............................. (280) (199) (215) (18) (712) ------ ------ ------ ------ ------ Net income applicable to common shares........... $ 433 $ 338 $ 326 $ 24 $1,121 ====== ====== ====== ====== ====== Basic net income per common share................ $ 0.19 $ 0.15 $ 0.14 $ 0.01 $ 0.48 ====== ====== ====== ====== ====== Diluted net income per common share.............. $ 0.17 $ 0.13 $ 0.13 $ 0.01 $ 0.43 ====== ====== ====== ====== ====== Average basic common shares...................... 2,298.0 2,312.0 2,325.0 2,356.0 2,323.0 ======= ======= ======= ======= ======= Average diluted common shares.................... 2,608.0 2,599.0 2,600.0 2,575.0 2,595.0 ======= ======= ======= ======= =======
AOL TIME WARNER INC. HISTORICAL CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
For the Three Months Ended ---------------------------------------- Year Ended 3/31/01 6/30/01 9/30/01 12/31/01 12/31/01 ------- ------- ------- -------- -------- (millions, except per share amounts) Revenues: Subscriptions............................... $ 3,857 $ 4,058 $ 4,190 $ 4,438 $16,543 Advertising and commerce.................... 2,039 2,236 1,918 2,204 8,397 Content and other........................... 3,170 2,866 3,196 3,972 13,204 ------- ------- ------- ------- ------- Total revenues.............................. 9,066 9,160 9,304 10,614 38,144 Costs of revenues................................ (4,998) (4,784) (5,026) (5,839) (20,647) Selling, general and administrative.............. (2,370) (2,325) (2,323) (2,572) (9,590) Amortization of goodwill and other intangible assets...................................... (1,774) (1,780) (1,794) (1,878) (7,226) Merger and restructuring costs................... (71) - (134) (45) (250) ------- ------- ------- ------- ------- Operating income (loss).......................... (147) 271 27 280 431 Interest expense, net............................ (319) (352) (347) (361) (1,379) Other expense, net............................... (872) (233) (437) (1,997) (3,539) Minority interest expense........................ (104) (76) (66) (64) (310) ------- ------- ------- ------- ------- Loss before income taxes......................... (1,442) (390) (823) (2,142) (4,797) Income tax provision............................. 73 (347) (174) 311 (137) ------- ------- ------- ------- ------- Net loss applicable to common shares............. $(1,369) $ (737) $ (997) $(1,831) $(4,934) ======= ======= ======= ======= ======= Basic net loss per common share.................. $ (0.31) $ (0.17) $ (0.22) $ (0.41) $ (1.11) ======= ======= ======= ======= ======= Diluted net loss per common share................ $ (0.31) $ (0.17) $ (0.22) $ (0.41) $ (1.11) ======= ======= ======= ======= ======= Average basic common shares...................... 4,412.7 4,434.9 4,439.9 4,428.8 4,429.1 ======= ======= ======= ======= ======= Average diluted common shares.................... 4,412.7 4,434.9 4,439.9 4,428.8 4,429.1 ======= ======= ======= ======= =======
AOL TIME WARNER INC. HISTORICAL CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
For the Three For the Six Months Ended Months Ended ------------ ------------ 3/31/02 6/30/02 6/30/02 ------- ------- ------- (millions, except per share amounts) Revenues: Subscriptions............................... $4,740 $5,028 $9,768 Advertising and commerce.................... 1,813 2,070 3,883 Content and other........................... 3,199 3,477 6,676 ------ ------ ------ Total revenues.............................. 9,752 10,575 20,327 Costs of revenues................................ (5,833) (6,167) (12,000) Selling, general and administrative.............. (2,451) (2,567) (5,018) Amortization of goodwill and other intangible assets...................................... (165) (176) (341) Merger and restructuring costs................... (107) - (107) ------ ------ ------- Operating income................................. 1,196 1,665 2,861 Interest expense, net............................ (379) (444) (823) Other expense, net............................... (698) (376) (1,074) Minority interest expense........................ (126) (147) (273) ------ ------ ------- Income (loss) before income taxes and cumulative effect of accounting change................. (7) 698 691 Income tax provision............................. (2) (302) (304) ------ ------ ------- Income (loss) before cumulative effect of accounting change........................... (9) 396 387 Cumulative effect of accounting change........... (54,235) - (54,235) ------- ------ ------- Net income (loss) applicable to common shares $(54,244) $396 $(53,848) ======== ==== ======== Basic income (loss) per common share before cumulative effect of accounting change...... $ - $ 0.09 $ 0.09 Cumulative effect of accounting change........... (12.25) - (12.21) ------- ------ ------- Basic net income (loss) per common share......... $(12.25) $ 0.09 $(12.12) ======= ====== ======= Diluted income (loss) per common share before cumulative effect of accounting change...... $ - $ 0.09 $ 0.09 Cumulative effect of accounting change........... (12.25) - (12.21) ------- ------ ------- Diluted net income (loss) per common share....... $(12.25) $ 0.09 $(12.12) ======= ====== ======= Average basic common shares...................... 4,429.3 4,454.1 4,441.7 ======= ======= ======= Average diluted common shares.................... 4,429.3 4,528.2 4,531.2 ======= ======= =======
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