Delaware | 001-09553 | 04-2949533 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification Number) |
51 West 52nd Street New York, New York | 10019 |
(Address of principal executive offices) | (zip code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
• | Unaudited pro forma condensed consolidated balance sheet at March 31, 2014. |
• | Unaudited pro forma condensed consolidated statements of operations for the three months ended March 31, 2014 and 2013 and each of the years ended December 31, 2013, 2012 and 2011. |
• | Notes to the unaudited pro forma condensed consolidated financial statements. |
Exhibit Number | Description of Exhibit | |
99.1 | CBS Corporation Unaudited Pro Forma Condensed Consolidated Financial Statements. | |
99.2 | Supplemental unaudited historical financial information of CBS Corporation, which presents Outdoor Americas as a discontinued operation for the first quarter of 2014 and for each of the four quarters and the full year of 2013. |
CBS CORPORATION | |
By: | /s/ Joseph R. Ianniello |
Name: Joseph R. Ianniello | |
Title: Chief Operating Officer |
Exhibit Number | Description of Exhibit | |
99.1 | CBS Corporation Unaudited Pro Forma Condensed Consolidated Financial Statements. | |
99.2 | Supplemental unaudited historical financial information of CBS Corporation, which presents Outdoor Americas as a discontinued operation for the first quarter of 2014 and for each of the four quarters and the full year of 2013. |
• | CBS Corp.’s consolidated financial statements and the notes thereto as of and for the year ended December 31, 2013, and Management’s Discussion and Analysis included in CBS Corp.’s Annual Report on Form 10-K for the year ended December 31, 2013. |
• | CBS Corp.’s consolidated financial statements and the notes thereto as of and for the three months ended March 31, 2014, and Management’s Discussion and Analysis included in CBS Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2014. |
Deconsolidation (2) | |||||||||||||||||||||||
CBS Historical | Outdoor Americas IPO (1) | Outdoor Americas Post IPO | Adjustments | Effects of the Exchange (3) | CBS Pro Forma | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Cash and cash equivalents | $ | 311 | $ | 615 | $ | (214 | ) | $ | — | $ | — | $ | 712 | ||||||||||
Receivables, net | 3,301 | — | (155 | ) | — | — | 3,146 | ||||||||||||||||
Programming and other inventory | 541 | — | — | — | — | 541 | |||||||||||||||||
Other current assets | 924 | — | (155 | ) | — | — | 769 | ||||||||||||||||
Total current assets | 5,077 | 615 | (524 | ) | — | — | 5,168 | ||||||||||||||||
Property and equipment, net | 2,179 | — | (733 | ) | — | — | 1,446 | ||||||||||||||||
Programming and other inventory | 1,635 | — | — | — | — | 1,635 | |||||||||||||||||
Goodwill | 8,559 | — | (1,863 | ) | — | — | 6,696 | ||||||||||||||||
Intangible assets | 6,407 | — | (349 | ) | — | — | 6,058 | ||||||||||||||||
Investment in Outdoor Americas | — | — | — | 1,162 | (1,162 | ) | — | ||||||||||||||||
Other assets | 2,258 | — | (68 | ) | — | — | 2,190 | ||||||||||||||||
Total assets | $ | 26,115 | $ | 615 | $ | (3,537 | ) | $ | 1,162 | $ | (1,162 | ) | $ | 23,193 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Current portion of long-term debt | $ | 106 | $ | — | $ | — | $ | — | $ | — | $ | 106 | |||||||||||
Commercial paper | 440 | — | — | — | — | 440 | |||||||||||||||||
Accounts payable and accrued expenses | 1,012 | 15 | (132 | ) | — | 27 | 922 | ||||||||||||||||
Other current liabilities | 2,514 | — | (52 | ) | — | — | 2,462 | ||||||||||||||||
Total current liabilities | 4,072 | 15 | (184 | ) | — | 27 | 3,930 | ||||||||||||||||
Long-term debt | 7,448 | — | (1,598 | ) | — | — | 5,850 | ||||||||||||||||
Other liabilities | 6,128 | — | (317 | ) | — | — | 5,811 | ||||||||||||||||
Stockholders' equity: | |||||||||||||||||||||||
Common stock | 1 | — | (363 | ) | 363 | — | 1 | ||||||||||||||||
Additional paid-in capital | 43,225 | 313 | (10,429 | ) | 10,429 | — | 43,538 | ||||||||||||||||
Accumulated deficit | (24,422 | ) | — | 9,306 | (9,306 | ) | 1,559 | (22,863 | ) | ||||||||||||||
Accumulated other comprehensive loss | (543 | ) | 11 | 48 | (48 | ) | (27 | ) | (559 | ) | |||||||||||||
18,261 | 324 | (1,438 | ) | 1,438 | 1,532 | 20,117 | |||||||||||||||||
Less treasury stock, at cost | 9,794 | — | — | — | 2,721 | 12,515 | |||||||||||||||||
Total CBS Corp. stockholders' equity | 8,467 | 324 | (1,438 | ) | 1,438 | (1,189 | ) | 7,602 | |||||||||||||||
Equity attributable to noncontrolling interest | — | 276 | — | (276 | ) | — | — | ||||||||||||||||
Total stockholders' equity | 8,467 | 600 | (1,438 | ) | 1,162 | (1,189 | ) | 7,602 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 26,115 | $ | 615 | $ | (3,537 | ) | $ | 1,162 | $ | (1,162 | ) | $ | 23,193 |
Deconsolidation (2) | |||||||||||||||
CBS Historical | Outdoor Americas | Adjustments | CBS Pro Forma | ||||||||||||
Revenues | $ | 3,856 | $ | (288 | ) | $ | 2 | $ | 3,570 | ||||||
Expenses: | |||||||||||||||
Operating | 2,284 | (163 | ) | — | 2,121 | ||||||||||
Selling, general and administrative | 642 | (57 | ) | 2 | 587 | ||||||||||
Depreciation and amortization | 112 | (41 | ) | — | 71 | ||||||||||
Total expenses | 3,038 | (261 | ) | 2 | 2,779 | ||||||||||
Operating income | 818 | (27 | ) | — | 791 | ||||||||||
Interest expense | (106 | ) | 13 | — | (93 | ) | |||||||||
Interest income | 3 | — | — | 3 | |||||||||||
Other items, net | 5 | — | — | 5 | |||||||||||
Earnings from continuing operations before income taxes and equity in loss of investee companies | 720 | (14 | ) | — | 706 | ||||||||||
Provision for income taxes | (242 | ) | 8 | — | (234 | ) | |||||||||
Equity in loss of investee companies, net of tax | (10 | ) | — | — | (10 | ) | |||||||||
Net earnings from continuing operations | $ | 468 | $ | (6 | ) | $ | — | $ | 462 | ||||||
Net earnings from continuing operations per common share: | |||||||||||||||
Basic | $ | .80 | $ | .79 | |||||||||||
Diluted | $ | .78 | $ | .77 | |||||||||||
Weighted average number of common shares outstanding: | |||||||||||||||
Basic | 585 | 585 | |||||||||||||
Diluted | 600 | 600 | |||||||||||||
Pro Forma - Net earnings from continuing operations per common share: | |||||||||||||||
Basic | $ | .86 | |||||||||||||
Diluted | $ | .83 | |||||||||||||
Pro Forma - Weighted average number of common shares outstanding: (3) | |||||||||||||||
Basic | 540 | ||||||||||||||
Diluted | 555 |
Deconsolidation (2) | |||||||||||||||
CBS Historical | Outdoor Americas | Adjustments | CBS Pro Forma | ||||||||||||
Revenues | $ | 4,040 | $ | (281 | ) | $ | 4 | $ | 3,763 | ||||||
Expenses: | |||||||||||||||
Operating | 2,474 | (167 | ) | 2 | 2,309 | ||||||||||
Selling, general and administrative | 650 | (43 | ) | 2 | 609 | ||||||||||
Depreciation and amortization | 116 | (42 | ) | — | 74 | ||||||||||
Total expenses | 3,240 | (252 | ) | 4 | 2,992 | ||||||||||
Operating income | 800 | (29 | ) | — | 771 | ||||||||||
Interest expense | (95 | ) | 1 | — | (94 | ) | |||||||||
Interest income | 2 | — | — | 2 | |||||||||||
Other items, net | (2 | ) | — | — | (2 | ) | |||||||||
Earnings from continuing operations before income taxes and equity in loss of investee companies | 705 | (28 | ) | — | 677 | ||||||||||
Provision for income taxes | (234 | ) | 16 | — | (218 | ) | |||||||||
Equity in loss of investee companies, net of tax | (8 | ) | (1 | ) | — | (9 | ) | ||||||||
Net earnings from continuing operations | $ | 463 | $ | (13 | ) | $ | — | $ | 450 | ||||||
Net earnings from continuing operations per common share: | |||||||||||||||
Basic | $ | .75 | $ | .72 | |||||||||||
Diluted | $ | .73 | $ | .71 | |||||||||||
Weighted average number of common shares outstanding: | |||||||||||||||
Basic | 621 | 621 | |||||||||||||
Diluted | 638 | 638 | |||||||||||||
Pro Forma - Net earnings from continuing operations per common share: | |||||||||||||||
Basic | $ | .78 | |||||||||||||
Diluted | $ | .76 | |||||||||||||
Pro Forma - Weighted average number of common shares outstanding: (3) | |||||||||||||||
Basic | 576 | ||||||||||||||
Diluted | 593 |
Deconsolidation (2) | |||||||||||||||
CBS Historical | Outdoor Americas | Adjustments | CBS Pro Forma | ||||||||||||
Revenues | $ | 15,284 | $ | (1,304 | ) | $ | 25 | $ | 14,005 | ||||||
Expenses: | |||||||||||||||
Operating | 8,813 | (698 | ) | 9 | 8,124 | ||||||||||
Selling, general and administrative | 2,735 | (205 | ) | 16 | 2,546 | ||||||||||
Restructuring charges | 20 | — | — | 20 | |||||||||||
Depreciation and amortization | 457 | (167 | ) | — | 290 | ||||||||||
Total expenses | 12,025 | (1,070 | ) | 25 | 10,980 | ||||||||||
Operating income | 3,259 | (234 | ) | — | 3,025 | ||||||||||
Interest expense | (376 | ) | 1 | — | (375 | ) | |||||||||
Interest income | 8 | — | — | 8 | |||||||||||
Other items, net | 6 | 1 | — | 7 | |||||||||||
Earnings from continuing operations before income taxes and equity in loss of investee companies | 2,897 | (232 | ) | — | 2,665 | ||||||||||
Provision for income taxes | (978 | ) | 100 | — | (878 | ) | |||||||||
Equity in loss of investee companies, net of tax | (46 | ) | (3 | ) | — | (49 | ) | ||||||||
Net earnings from continuing operations | $ | 1,873 | $ | (135 | ) | $ | — | $ | 1,738 | ||||||
Net earnings from continuing operations per common share: | |||||||||||||||
Basic | $ | 3.08 | $ | 2.86 | |||||||||||
Diluted | $ | 3.00 | $ | 2.79 | |||||||||||
Weighted average number of common shares outstanding: | |||||||||||||||
Basic | 608 | 608 | |||||||||||||
Diluted | 624 | 624 | |||||||||||||
Pro Forma - Net earnings from continuing operations per common share: | |||||||||||||||
Basic | $ | 3.09 | |||||||||||||
Diluted | $ | 3.00 | |||||||||||||
Pro Forma - Weighted average number of common shares outstanding: (3) | |||||||||||||||
Basic | 563 | ||||||||||||||
Diluted | 579 |
Deconsolidation (2) | |||||||||||||||
CBS Historical | Outdoor Americas | Adjustments | CBS Pro Forma | ||||||||||||
Revenues | $ | 14,089 | $ | (1,296 | ) | $ | 27 | $ | 12,820 | ||||||
Expenses: | |||||||||||||||
Operating | 7,967 | (710 | ) | 7 | 7,264 | ||||||||||
Selling, general and administrative | 2,634 | (212 | ) | 20 | 2,442 | ||||||||||
Restructuring charges | 19 | — | — | 19 | |||||||||||
Impairment charges | 11 | — | 11 | ||||||||||||
Depreciation and amortization | 475 | (169 | ) | — | 306 | ||||||||||
Total expenses | 11,106 | (1,091 | ) | 27 | 10,042 | ||||||||||
Operating income | 2,983 | (205 | ) | — | 2,778 | ||||||||||
Interest expense | (402 | ) | 1 | — | (401 | ) | |||||||||
Interest income | 6 | (1 | ) | — | 5 | ||||||||||
Net loss on early extinguishment of debt | (32 | ) | — | — | (32 | ) | |||||||||
Other items, net | 6 | 1 | — | 7 | |||||||||||
Earnings from continuing operations before income taxes and equity in loss of investee companies | 2,561 | (204 | ) | — | 2,357 | ||||||||||
Provision for income taxes | (892 | ) | 80 | — | (812 | ) | |||||||||
Equity in loss of investee companies, net of tax | (35 | ) | (2 | ) | — | (37 | ) | ||||||||
Net earnings from continuing operations | $ | 1,634 | $ | (126 | ) | $ | — | $ | 1,508 | ||||||
Net earnings from continuing operations per common share: | |||||||||||||||
Basic | $ | 2.55 | $ | 2.35 | |||||||||||
Diluted | $ | 2.48 | $ | 2.29 | |||||||||||
Weighted average number of common shares outstanding: | |||||||||||||||
Basic | 642 | 642 | |||||||||||||
Diluted | 659 | 659 |
Deconsolidation (2) | |||||||||||||||
CBS Historical | Outdoor Americas | Adjustments | CBS Pro Forma | ||||||||||||
Revenues | $ | 13,637 | $ | (1,286 | ) | $ | 30 | $ | 12,381 | ||||||
Expenses: | |||||||||||||||
Operating | 7,882 | (697 | ) | 6 | 7,191 | ||||||||||
Selling, general and administrative | 2,598 | (210 | ) | 24 | 2,412 | ||||||||||
Restructuring charges | 43 | (1 | ) | — | 42 | ||||||||||
Depreciation and amortization | 495 | (182 | ) | — | 313 | ||||||||||
Total expenses | 11,018 | (1,090 | ) | 30 | 9,958 | ||||||||||
Operating income | 2,619 | (196 | ) | — | 2,423 | ||||||||||
Interest expense | (435 | ) | 2 | — | (433 | ) | |||||||||
Interest income | 6 | (1 | ) | — | 5 | ||||||||||
Other items, net | (11 | ) | (1 | ) | — | (12 | ) | ||||||||
Earnings from continuing operations before income taxes and equity in loss of investee companies | 2,179 | (196 | ) | — | 1,983 | ||||||||||
Provision for income taxes | (751 | ) | 70 | — | (681 | ) | |||||||||
Equity in loss of investee companies, net of tax | (37 | ) | (2 | ) | — | (39 | ) | ||||||||
Net earnings from continuing operations | $ | 1,391 | $ | (128 | ) | $ | — | $ | 1,263 | ||||||
Net earnings from continuing operations per common share: | |||||||||||||||
Basic | $ | 2.09 | $ | 1.90 | |||||||||||
Diluted | $ | 2.04 | $ | 1.85 | |||||||||||
Weighted average number of common shares outstanding: | |||||||||||||||
Basic | 664 | 664 | |||||||||||||
Diluted | 681 | 681 |
Shares of Outdoor Americas common stock owned by the Company | 97,000,000 | |
Exchange ratio | 2.1689 | |
Total shares of CBS Corp. Class B Common Stock accepted | 44,723,131 |
Fair value of CBS Corp. Class B Common Stock accepted (44,723,131 shares at $60.85 per share as of July 16, 2014) | $ | 2,721 | |
CBS Corp.'s carrying value in Outdoor Americas at March 31, 2014 | (1,162 | ) | |
Accumulated other comprehensive loss | 27 | ||
Estimated transaction costs | (27 | ) | |
Net gain on split-off of Outdoor Americas from CBS Corp. | $ | 1,559 |
2013 | 2014 | ||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | First Quarter | ||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Entertainment | $ | 2,539 | $ | 2,008 | $ | 1,884 | $ | 2,214 | $ | 8,645 | $ | 2,303 | |||||||||||
Cable Networks | 478 | 518 | 596 | 477 | 2,069 | 537 | |||||||||||||||||
Publishing | 171 | 189 | 224 | 225 | 809 | 153 | |||||||||||||||||
Local Broadcasting | 638 | 698 | 641 | 719 | 2,696 | 626 | |||||||||||||||||
Eliminations | (63 | ) | (44 | ) | (43 | ) | (64 | ) | (214 | ) | (49 | ) | |||||||||||
Total Revenues | $ | 3,763 | $ | 3,369 | $ | 3,302 | $ | 3,571 | $ | 14,005 | $ | 3,570 | |||||||||||
Segment OIBDA: (a) | |||||||||||||||||||||||
Entertainment | $ | 480 | $ | 429 | $ | 431 | $ | 418 | $ | 1,758 | $ | 457 | |||||||||||
Cable Networks | 231 | 207 | 261 | 199 | 898 | 259 | |||||||||||||||||
Publishing | 12 | 21 | 43 | 37 | 113 | 13 | |||||||||||||||||
Local Broadcasting | 199 | 255 | 181 | 263 | 898 | 200 | |||||||||||||||||
Corporate | (77 | ) | (64 | ) | (82 | ) | (109 | ) | (332 | ) | (67 | ) | |||||||||||
Total Segment OIBDA | 845 | 848 | 834 | 808 | 3,335 | 862 | |||||||||||||||||
Restructuring charges | — | — | — | (20 | ) | (20 | ) | — | |||||||||||||||
Depreciation and amortization | (74 | ) | (73 | ) | (70 | ) | (73 | ) | (290 | ) | (71 | ) | |||||||||||
Total Operating Income | $ | 771 | $ | 775 | $ | 764 | $ | 715 | $ | 3,025 | $ | 791 | |||||||||||
Operating Income (Loss): | |||||||||||||||||||||||
Entertainment | $ | 440 | $ | 391 | $ | 394 | $ | 368 | $ | 1,593 | $ | 420 | |||||||||||
Cable Networks | 227 | 202 | 255 | 193 | 877 | 254 | |||||||||||||||||
Publishing | 10 | 20 | 41 | 35 | 106 | 11 | |||||||||||||||||
Local Broadcasting | 176 | 234 | 161 | 236 | 807 | 179 | |||||||||||||||||
Corporate | (82 | ) | (72 | ) | (87 | ) | (117 | ) | (358 | ) | (73 | ) | |||||||||||
Total Operating Income | 771 | 775 | 764 | 715 | 3,025 | 791 | |||||||||||||||||
Interest expense | (94 | ) | (94 | ) | (93 | ) | (94 | ) | (375 | ) | (93 | ) | |||||||||||
Interest income | 2 | 2 | 2 | 2 | 8 | 3 | |||||||||||||||||
Other items, net | (2 | ) | (6 | ) | 6 | 9 | 7 | 5 | |||||||||||||||
Earnings from continuing operations before income taxes and equity in loss of investee companies | 677 | 677 | 679 | 632 | 2,665 | 706 | |||||||||||||||||
Provision for income taxes | (218 | ) | (234 | ) | (226 | ) | (200 | ) | (878 | ) | (234 | ) | |||||||||||
Equity in loss of investee companies, net of tax | (9 | ) | (8 | ) | (22 | ) | (10 | ) | (49 | ) | (10 | ) | |||||||||||
Net earnings from continuing operations | 450 | 435 | 431 | 422 | 1,738 | 462 | |||||||||||||||||
Net earnings (loss) from discontinued operations | (7 | ) | 37 | 63 | 48 | 141 | 6 | ||||||||||||||||
Net earnings | $ | 443 | $ | 472 | $ | 494 | $ | 470 | $ | 1,879 | $ | 468 | |||||||||||
Basic net earnings (loss) per common share: | |||||||||||||||||||||||
Net earnings from continuing operations | $ | .72 | $ | .71 | $ | .71 | $ | .70 | $ | 2.86 | $ | .79 | |||||||||||
Net earnings (loss) from discontinued operations | $ | (.01 | ) | $ | .06 | $ | .10 | $ | .08 | $ | .23 | $ | .01 | ||||||||||
Net earnings | $ | .71 | $ | .78 | $ | .82 | $ | .78 | $ | 3.09 | $ | .80 | |||||||||||
Diluted net earnings (loss) per common share: | |||||||||||||||||||||||
Net earnings from continuing operations | $ | .71 | $ | .70 | $ | .70 | $ | .69 | $ | 2.79 | $ | .77 | |||||||||||
Net earnings (loss) from discontinued operations | $ | (.01 | ) | $ | .06 | $ | .10 | $ | .08 | $ | .23 | $ | .01 | ||||||||||
Net earnings | $ | .69 | $ | .76 | $ | .80 | $ | .76 | $ | 3.01 | $ | .78 | |||||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||||||||
Basic | 621 | 609 | 603 | 599 | 608 | 585 | |||||||||||||||||
Diluted | 638 | 624 | 618 | 615 | 624 | 600 | |||||||||||||||||
Pro Forma Per Share Data: (b) | |||||||||||||||||||||||
Pro Forma - Basic net earnings from continuing operations per common share | $ | .78 | $ | .77 | $ | .77 | $ | .76 | $ | 3.09 | $ | .86 | |||||||||||
Pro Forma - Diluted net earnings from continuing operations per common share | $ | .76 | $ | .75 | $ | .75 | $ | .74 | $ | 3.00 | $ | .83 | |||||||||||
Pro Forma weighted average number of common shares outstanding: (c) | |||||||||||||||||||||||
Basic | 576 | 564 | 558 | 554 | 563 | 540 | |||||||||||||||||
Diluted | 593 | 579 | 573 | 570 | 579 | 555 |