Property, Plant and Equipment Disclosure
Asset Age Ratios (Summary)
Average Age
Estimated Total Useful Life
Estimated Age, Time Elapsed Since Purchase
Estimated Remaining Life

Time Warner Inc., balance sheet: property, plant and equipment

US$ in millions

	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
Land	269)	268)	273)	274)	506)
Buildings and improvements	1,757)	1,641)	1,619)	1,549)	2,918)
Capitalized software costs	2,045)	2,029)	1,958)	1,868)	1,990)
Construction in progress	380)	183)	174)	223)	339)
Furniture, fixtures and other equipment, excludes construction in progress	2,846)	2,834)	2,895)	2,879)	3,261)
Property, plant and equipment, gross	7,297)	6,955)	6,919)	6,793)	9,014)
Accumulated depreciation	(4,590)	(4,445)	(4,323)	(4,138)	(5,189)
Property, plant and equipment, net	2,707)	2,510)	2,596)	2,655)	3,825)

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).

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Item	Description	The company
Property, plant and equipment, gross	Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	Time Warner Inc. property, plant and equipment, gross increased from 2015 to 2016 and from 2016 to 2017.
Property, plant and equipment, net	Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	Time Warner Inc. property, plant and equipment, net decreased from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

Time Warner Inc., asset age ratios

	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
Average age ratio	65.31%	66.47%	65.05%	63.48%	60.99%
Estimated total useful life (years)	14	14	14	12	13
Estimated age, time elapsed since purchase (years)	9	9	9	8	8
Estimated remaining life (years)	5	5	5	4	5

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).

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Asset age ratio	Description	The company
Average age ratio	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	Time Warner Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2015 to 2016 but then improved from 2016 to 2017 not reaching 2015 level.
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	Time Warner Inc. estimated total useful life of depreciable property, plant and equipment increased from 2015 to 2016 and from 2016 to 2017.
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	Time Warner Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017.
Estimated remaining life		Time Warner Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
Selected Financial Data (US$ in millions)
Accumulated depreciation	4,590)	4,445)	4,323)	4,138)	5,189)
Property, plant and equipment, gross	7,297)	6,955)	6,919)	6,793)	9,014)
Land	269)	268)	273)	274)	506)
Asset Age Ratio
Average age¹	65.31%	66.47%	65.05%	63.48%	60.99%

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).

2017 Calculations

¹ Average age = 100 × Accumulated depreciation ÷ (Property, plant and equipment, gross – Land)
= 100 × 4,590 ÷ (7,297 – 269) = 65.31%

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Asset age ratio	Description	The company
Average age	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	Time Warner Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2015 to 2016 but then improved from 2016 to 2017 not reaching 2015 level.

	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
Selected Financial Data (US$ in millions)
Property, plant and equipment, gross	7,297)	6,955)	6,919)	6,793)	9,014)
Land	269)	268)	273)	274)	506)
Depreciation of property, plant and equipment	497)	479)	492)	531)	635)
Asset Age Ratio (Years)
Estimated total useful life¹	14	14	14	12	13

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).

2017 Calculations

¹ Estimated total useful life = (Property, plant and equipment, gross – Land) ÷ Depreciation of property, plant and equipment
= (7,297 – 269) ÷ 497 = 14

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Asset age ratio	Description	The company
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	Time Warner Inc. estimated total useful life of depreciable property, plant and equipment increased from 2015 to 2016 and from 2016 to 2017.

	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
Selected Financial Data (US$ in millions)
Accumulated depreciation	4,590)	4,445)	4,323)	4,138)	5,189)
Depreciation of property, plant and equipment	497)	479)	492)	531)	635)
Asset Age Ratio (Years)
Time elapsed since purchase¹	9	9	9	8	8

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).

2017 Calculations

¹ Time elapsed since purchase = Accumulated depreciation ÷ Depreciation of property, plant and equipment
= 4,590 ÷ 497 = 9

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Asset age ratio	Description	The company
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	Time Warner Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017.

	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
Selected Financial Data (US$ in millions)
Property, plant and equipment, net	2,707)	2,510)	2,596)	2,655)	3,825)
Land	269)	268)	273)	274)	506)
Depreciation of property, plant and equipment	497)	479)	492)	531)	635)
Asset Age Ratio (Years)
Estimated remaining life¹	5	5	5	4	5

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).

2017 Calculations

¹ Estimated remaining life = (Property, plant and equipment, net – Land) ÷ Depreciation of property, plant and equipment
= (2,707 – 269) ÷ 497 = 5

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Asset age ratio	Description	The company
Estimated remaining life		Time Warner Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

Time Warner Inc. (NYSE:TWX)

Analysis of Property, Plant and Equipment

Property, Plant and Equipment Disclosure

Asset Age Ratios (Summary)

Average Age

Estimated Total Useful Life

Estimated Age, Time Elapsed since Purchase

Estimated Remaining Life