Analysis of Debt
Total Debt (Carrying Amount)
Time Warner Inc., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
The total carrying amount of debt exhibited a consistent upward trajectory from 2013 to 2016, increasing from 20,165 million US$ to a peak of 24,339 million US$. A slight contraction occurred in 2017, with total debt decreasing to 23,744 million US$.
- Total Debt Trends
- Between 2013 and 2016, total debt grew by approximately 20.8%. The most significant annual increase occurred between 2013 and 2014, where total debt rose by 2,329 million US$. The growth plateaued in 2016 before a marginal decline of approximately 2.4% was recorded in 2017.
- Debt Maturity Profile and Composition
- A substantial shift in the debt structure is observable over the five-year period. In 2013, debt due within one year was negligible, representing only 0.3% of the total debt. By December 31, 2017, this figure surged to 5,450 million US$, accounting for approximately 22.9% of the total carrying amount. This indicates a significant increase in short-term repayment obligations.
- Long-Term Debt Dynamics
- Long-term debt, excluding current portions, increased steadily from 20,099 million US$ in 2013 to a peak of 23,594 million US$ in 2015. Subsequently, a downward trend emerged, with long-term debt falling to 18,294 million US$ by 2017. The inverse correlation between the decline in long-term debt and the spike in debt due within one year suggests a reclassification of maturing long-term obligations into current liabilities.
- Liquidity and Obligations Analysis
- The volatility of debt due within one year is notable, with significant fluctuations occurring between 2014 and 2016. The sharp rise to 5,450 million US$ in 2017 represents a critical shift in the company's immediate financial obligations, requiring a higher allocation of liquid assets or refinancing activities to meet near-term maturities.
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Total Debt (Fair Value)
| Dec 31, 2017 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Total debt (fair value) | 25,327) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 1.07 |
Based on: 10-K (reporting date: 2017-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on total debt: 4.32%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 4.32% | 23,744) | 1,026) | |
| Total | 23,744) | 1,026) | |
| 4.32% | |||
Based on: 10-K (reporting date: 2017-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 1,026 ÷ 23,744 = 4.32%