13) CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

CBS Operations Inc. is a wholly owned subsidiary of the Company. CBS Operations Inc. has fully and unconditionally guaranteed CBS Corp.’s senior debt securities. The following condensed consolidating financial statements present the results of operations, financial position and cash flows of CBS Corp., CBS Operations Inc., the direct and indirect Non-Guarantor Affiliates of CBS Corp. and CBS Operations Inc., and the eliminations necessary to arrive at the information for the Company on a consolidated basis.



	Statement of Operations
	For the Three Months Ended March 31, 2016
	CBS Corp.			CBS Operations Inc.			Non- Guarantor Affiliates			Eliminations			CBS Corp. Consolidated
Revenues	$	47		$	3		$	3,799		$	—		$	3,849
Costs and expenses:
Operating	17			1			2,338			—			2,356
Selling, general and administrative	21			66			530			—			617
Depreciation and amortization	1			5			58			—			64
Other operating items, net	—			—			(9		)	—			(9		)
Total costs and expenses	39			72			2,917			—			3,028
Operating income (loss)	8			(69		)	882			—			821
Interest (expense) income, net	(124		)	(104		)	135			—			(93		)
Other items, net	(1		)	(10		)	8			—			(3		)
Earnings (loss) before income taxes and equity in earnings (loss) of investee companies	(117		)	(183		)	1,025			—			725
Benefit (provision) for income taxes	37			59			(327		)	—			(231		)
Equity in earnings (loss) of investee companies, net of tax	553			260			(21		)	(813		)	(21		)
Net earnings	$	473		$	136		$	677		$	(813	)	$	473
Total comprehensive income	$	484		$	140		$	679		$	(819	)	$	484



	Statement of Operations
	For the Three Months Ended March 31, 2015
	CBS Corp.			CBS Operations Inc.			Non- Guarantor Affiliates			Eliminations			CBS Corp. Consolidated
Revenues	$	31		$	3		$	3,466		$	—		$	3,500
Costs and expenses:
Operating	16			1			2,125			—			2,142
Selling, general and administrative	12			61			515			—			588
Depreciation and amortization	1			5			62			—			68
Other operating items, net	—			—			(19		)	—			(19		)
Total costs and expenses	29			67			2,683			—			2,779
Operating income (loss)	2			(64		)	783			—			721
Interest (expense) income, net	(115		)	(98		)	125			—			(88		)
Other items, net	(1		)	11			(33		)	—			(23		)
Earnings (loss) before income taxes and equity in earnings (loss) of investee companies	(114		)	(151		)	875			—			610
Benefit (provision) for income taxes	37			49			(289		)	—			(203		)
Equity in earnings (loss) of investee companies, net of tax	471			315			(13		)	(786		)	(13		)
Net earnings	$	394		$	213		$	573		$	(786	)	$	394
Total comprehensive income	$	400		$	220		$	580		$	(800	)	$	400



	Balance Sheet
	At March 31, 2016
	CBS Corp.			CBS Operations Inc.		Non- Guarantor Affiliates			Eliminations			CBS Corp. Consolidated
Assets
Cash and cash equivalents	$	170		$	1	$	240		$	—		$	411
Receivables, net	25			2		3,651			—			3,678
Programming and other inventory	4			3		815			—			822
Prepaid expenses and other current assets	30			23		599			(29		)	623
Total current assets	229			29		5,305			(29		)	5,534
Property and equipment	45			181		3,022			—			3,248
Less accumulated depreciation and amortization	22			123		1,727			—			1,872
Net property and equipment	23			58		1,295			—			1,376
Programming and other inventory	5			8		2,010			—			2,023
Goodwill	98			62		6,373			—			6,533
Intangible assets	—			—		5,509			—			5,509
Investments in consolidated subsidiaries	43,302			13,036		—			(56,338		)	—
Other assets	159			12		2,355			—			2,526
Intercompany	—			2,100		24,847			(26,947		)	—
Total Assets	$	43,816		$	15,305	$	47,694		$	(83,314	)	$	23,501
Liabilities and Stockholders’ Equity
Accounts payable	$	1		$	3	$	192		$	—		$	196
Participants’ share and royalties payable	—			—		987			—			987
Program rights	3			4		513			—			520
Current portion of long-term debt	7			—		16			—			23
Accrued expenses and other current liabilities	332			201		1,154			(29		)	1,658
Total current liabilities	343			208		2,862			(29		)	3,384
Long-term debt	8,113			—		113			—			8,226
Other liabilities	2,930			248		3,230			—			6,408
Intercompany	26,947			—		—			(26,947		)	—
Stockholders’ Equity:
Preferred stock	—			—		126			(126		)	—
Common stock	1			123		590			(713		)	1
Additional paid-in capital	43,990			—		60,894			(60,894		)	43,990
Retained earnings (deficit)	(20,045		)	15,049		(15,404		)	355			(20,045		)
Accumulated other comprehensive income (loss)	(759		)	8		83			(91		)	(759		)
	23,187			15,180		46,289			(61,469		)	23,187
Less treasury stock, at cost	17,704			331		4,800			(5,131		)	17,704
Total Stockholders’ Equity	5,483			14,849		41,489			(56,338		)	5,483
Total Liabilities and Stockholders’ Equity	$	43,816		$	15,305	$	47,694		$	(83,314	)	$	23,501



	Balance Sheet
	At December 31, 2015
	CBS Corp.			CBS Operations Inc.		Non- Guarantor Affiliates			Eliminations			CBS Corp. Consolidated
Assets
Cash and cash equivalents	$	267		$	1	$	55		$	—		$	323
Receivables, net	28			2		3,598			—			3,628
Programming and other inventory	3			3		1,265			—			1,271
Prepaid expenses and other current assets	192			26		337			(30		)	525
Total current assets	490			32		5,255			(30		)	5,747
Property and equipment	46			180		3,017			—			3,243
Less accumulated depreciation and amortization	20			118		1,700			—			1,838
Net property and equipment	26			62		1,317			—			1,405
Programming and other inventory	6			9		1,942			—			1,957
Goodwill	98			62		6,321			—			6,481
Intangible assets	—			—		5,514			—			5,514
Investments in consolidated subsidiaries	42,744			12,775		—			(55,519		)	—
Other assets	163			11		2,487			—			2,661
Intercompany	—			2,248		23,988			(26,236		)	—
Total Assets	$	43,527		$	15,199	$	46,824		$	(81,785	)	$	23,765
Liabilities and Stockholders’ Equity
Accounts payable	$	1		$	4	$	187		$	—		$	192
Participants’ share and royalties payable	—			—		1,013			—			1,013
Program rights	4			4		366			—			374
Current portion of long-term debt	206			—		16			—			222
Accrued expenses and other current liabilities	418			230		1,141			(30		)	1,759
Total current liabilities	629			238		2,723			(30		)	3,560
Long-term debt	8,113			—		113			—			8,226
Other liabilities	2,986			252		3,178			—			6,416
Intercompany	26,236			—		—			(26,236		)	—
Stockholders’ Equity:
Preferred stock	—			—		126			(126		)	—
Common stock	1			123		590			(713		)	1
Additional paid-in capital	44,055			—		60,894			(60,894		)	44,055
Retained earnings (deficit)	(20,518		)	14,913		(16,081		)	1,168			(20,518		)
Accumulated other comprehensive income (loss)	(770		)	4		81			(85		)	(770		)
	22,768			15,040		45,610			(60,650		)	22,768
Less treasury stock, at cost	17,205			331		4,800			(5,131		)	17,205
Total Stockholders’ Equity	5,563			14,709		40,810			(55,519		)	5,563
Total Liabilities and Stockholders’ Equity	$	43,527		$	15,199	$	46,824		$	(81,785	)	$	23,765



	Statement of Cash Flows
	For the Three Months Ended March 31, 2016
	CBS Corp.			CBS Operations Inc.			Non- Guarantor Affiliates			Eliminations		CBS Corp. Consolidated
Net cash flow (used for) provided by operating activities	$	(157	)	$	(103	)	$	1,288		$	—	$	1,028
Investing Activities:
Acquisitions	—			—			(50		)	—		(50		)
Capital expenditures	—			(9		)	(29		)	—		(38		)
Investments in and advances to investee companies	—			—			(32		)	—		(32		)
Proceeds from dispositions	(2		)	—			31			—		29
Other investing activities	(7		)	—			—			—		(7		)
Net cash flow used for investing activities	(9		)	(9		)	(80		)	—		(98		)
Financing Activities:
Repayment of senior debentures	(200		)	—			—			—		(200		)
Payment of capital lease obligations	—			—			(4		)	—		(4		)
Dividends	(73		)	—			—			—		(73		)
Purchase of Company common stock	(533		)	—			—			—		(533		)
Payment of payroll taxes in lieu of issuing shares for stock-based compensation	(46		)	—			—			—		(46		)
Proceeds from exercise of stock options	6			—			—			—		6
Excess tax benefit from stock-based compensation	8			—			—			—		8
Increase (decrease) in intercompany payables	907			112			(1,019		)	—		—
Net cash flow provided by (used for) financing activities	69			112			(1,023		)	—		(842		)
Net (decrease) increase in cash and cash equivalents	(97		)	—			185			—		88
Cash and cash equivalents at beginning of period	267			1			55			—		323
Cash and cash equivalents at end of period	$	170		$	1		$	240		$	—	$	411



	Statement of Cash Flows
	For the Three Months Ended March 31, 2015
	CBS Corp.			CBS Operations Inc.			Non- Guarantor Affiliates			Eliminations		CBS Corp. Consolidated
Net cash flow (used for) provided by operating activities	$	(117	)	$	(137	)	$	671		$	—	$	417
Investing Activities:
Acquisitions	—			—			(1		)	—		(1		)
Capital expenditures	—			(1		)	(16		)	—		(17		)
Investments in and advances to investee companies	—			—			(39		)	—		(39		)
Proceeds from dispositions	—			—			59			—		59
Other investing activities	3			—			—			—		3
Net cash flow provided by (used for) investing activities from continuing operations	3			(1		)	3			—		5
Net cash flow used for investing activities from discontinued operations	(3		)	—			—			—		(3		)
Net cash flow (used for) provided by investing activities	—			(1		)	3			—		2
Financing Activities:
Repayments of short-term debt borrowings, net	(616		)	—			—			—		(616		)
Proceeds from issuance of senior notes	1,178			—			—			—		1,178
Payment of capital lease obligations	—			—			(4		)	—		(4		)
Dividends	(80		)	—			—			—		(80		)
Purchase of Company common stock	(1,049		)	—			—			—		(1,049		)
Payment of payroll taxes in lieu of issuing shares for stock-based compensation	(82		)	—			—			—		(82		)
Proceeds from exercise of stock options	80			—			—			—		80
Excess tax benefit from stock-based compensation	57			—			—			—		57
Increase (decrease) in intercompany payables	729			138			(867		)	—		—
Net cash flow provided by (used for) financing activities	217			138			(871		)	—		(516		)
Net increase (decrease) in cash and cash equivalents	100			—			(197		)	—		(97		)
Cash and cash equivalents at beginning of period	63			1			364			—		428
Cash and cash equivalents at end of period	$	163		$	1		$	167		$	—	$	331