Time Warner Inc. Updates 2010 Full-Year Business Outlook

Time Warner Inc. (NYSE:TWX) today updated its 2010 full-year business outlook. The Company expects its 2010 full-year percentage growth rate in Adjusted Diluted Income per Common Share from Continuing Operations (“Adjusted EPS”) to be in the high 20s off a 2009 Adjusted EPS base of $1.83. This compares to the prior outlook for Adjusted EPS growth of at least 20%, as updated on August 4, 2010.

The outlook above does not include the impact of any future merger or unplanned restructuring charges, the impact from sales and acquisitions of operating assets and investments or the impact of taxes on the above items that may occur from time to time due to management decisions and changing business circumstances. The Company is currently unable to forecast precisely the timing and/or magnitude of any such amounts or events.

Use of Adjusted Diluted Income per Common Share from Continuing Operations Measures

Adjusted Diluted Income per Common Share from Continuing Operations (“Adjusted EPS”) is Diluted Income per Common Share from Continuing Operations attributable to Time Warner Inc. common shareholders excluding noncash impairments of goodwill, intangible and fixed assets and investments; gains and losses on operating assets, liabilities and investments; external costs related to mergers, acquisitions, investments or dispositions, as well as contingent consideration related to such transactions, to the extent such costs are expensed; amounts related to securities litigation and government investigations; and amounts attributable to businesses classified as discontinued operations, as well as the impact of taxes and noncontrolling interests on the above items. Adjusted EPS is considered an important indicator of the operational strength of the Company’s businesses as this measure eliminates amounts that do not reflect the fundamental performance of the Company’s businesses. The Company utilizes Adjusted EPS, among other measures, to evaluate the performance of its businesses both on an absolute basis and relative to its peers and the broader market. Many investors also use an adjusted EPS measure as a common basis for comparing the performance of different companies. Some limitations of Adjusted EPS, however, are that it does not reflect certain cash charges that affect the operating results of the Company’s businesses and that it involves judgment as to whether items affect fundamental operating performance. Also, a general limitation of Adjusted EPS is that it is not prepared in accordance with U.S. generally accepted accounting principles and may not be comparable to similarly titled measures of other companies due to differences in methods of calculation and excluded items.

Adjusted EPS should be considered in addition to, not as a substitute for, the Company’s Diluted Income per Common Share from Continuing Operations and other measures of financial performance reported in accordance with U.S. generally accepted accounting principles.

About Time Warner Inc.

Time Warner Inc., a global leader in media and entertainment with businesses in television networks, filmed entertainment and publishing, uses its industry-leading operating scale and brands to create, package and deliver high-quality content worldwide through multiple distribution outlets.

Caution Concerning Forward-Looking Statements

This document includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations or beliefs, and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological, strategic and/or regulatory factors, and any future merger or unplanned restructuring charges, sales and acquisitions of operating assets and investments, or the impact of taxes on the above items, that may occur from time to time due to management decisions and changing business circumstances. More detailed information about these factors may be found in filings by Time Warner Inc. with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Time Warner is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.

Information on Earnings Release & Conference Call

In a separate release issued today, Time Warner Inc. reported the financial results for its third quarter ended September 30, 2010.

The Company’s conference call can be heard live at 10:30 am ET on Wednesday, November 3, 2010.To listen to the call, visit www.timewarner.com/investors.

 
TIME WARNER INC.
RECONCILIATION OF GUIDANCE
(Unaudited)
     
Year Ended
December 31, 2009
Reconciliation of 2010 Guidance
 
Reconciliation of Adjusted Diluted Income per Common Share from Continuing Operations ("Adjusted EPS") to Diluted Income per Common Share from Continuing Operations:
 
 
Adjusted EPS (1) $ 1.83 Expected percentage growth in the high 20s
 
Amounts related to securities litigation and government investigations (0.02)

Unable to estimate beyond the ($0.02) per share recognized for the period January 1, 2010 through September 30, 2010

 
Asset impairments (0.07)

Unable to estimate beyond the ($0.01) per share recognized for the period January 1, 2010 through September 30, 2010

 
Gains and losses on operating assets (0.03)

Unable to estimate beyond the $0.05 per share recognized for the period January 1, 2010 through September 30, 2010

 
Gains and losses on investments (0.02) Unable to estimate
 
Other items -

Unable to estimate beyond the ($0.32) per share recognized for the period January 1, 2010 through September 30, 2010

 
Tax impact on above items 0.03

Unable to estimate beyond the $0.13 per share recognized for the period January 1, 2010 through September 30, 2010

 
Impact of tax law changes attributable to Time Warner Cable Inc. net deferred tax liabilities 0.02 None Expected
 
Noncontrolling interest impact on certain of the above items   0.01 None Expected
 
Diluted Income per Common Share from Continuing Operations $ 1.75 Unable to estimate
 
 
(1) Adjusted EPS is Diluted Income per Common Share from Continuing Operations attributable to Time Warner Inc. common shareholders excluding noncash impairments of goodwill, intangible and fixed assets and investments; gains and losses on operating assets and investments; external costs related to mergers, acquisitions, investments or dispositions, as well as contingent consideration related to such transactions, to the extent such costs are expensed; amounts related to securities litigation and government investigations; and amounts attributable to businesses classified as discontinued operations, as well as the impact of taxes and noncontrolling interests on the above items.