NEW YORK, Feb. 15, 2017
/PRNewswire/ -- CBS Corporation (NYSE: CBS.A and CBS) today
reported results for the fourth quarter and full year of 2016.
"2016 was a phenomenal year for the CBS Corporation, with
all-time highs in revenue, operating income, and EPS that came in
above $4 for the first time in our
Company's history; and as we begin 2017, I couldn't be more excited
about our growth prospects in the years ahead," said Leslie Moonves, Chairman and CEO, CBS
Corporation. "We are already exceeding our projections to generate
billions of dollars in incremental revenue, thanks to our new,
fast-growing revenue sources and the strength of our base business.
At the CBS Television Network, we are on track to be #1 for the
ninth year in a row and 14 out of the past 15 years. And with
ownership in more than 80% of our primetime lineup, the
opportunities to monetize our hit shows across platforms and around
the world have never been better. Meanwhile, annual revenue from
retransmission consent and reverse compensation has already
exceeded $1 billion, a full year
ahead of schedule, and continues to grow rapidly. We are also
taking advantage of the emergence of digital MVPDs through recent
deals with Hulu and others at improved economic terms. Plus, our
over-the-top subscription streaming services are contributing more
meaningfully to our results all the time, and we have yet to launch
The Good Fight and Star Trek: Discovery on CBS All
Access and Twin Peaks on Showtime OTT here in 2017. In
addition, we recently announced a deal to split-off our radio
business in the best possible way through a tax-free transaction
with Entercom. When completed, this transaction will allow us to
focus even more on our core content strength and enable our
faster-growing revenue to drive our results like never before.
Across the board, our strategy of creating the best content, and
distributing it in all the ways consumers want it, continues to
position CBS to succeed no matter how the world changes."
Fourth Quarter 2016 Results
Revenues for the fourth quarter of 2016 were $3.52 billion compared with $3.59 billion for the fourth quarter of 2015,
which included a significant international licensing agreement for
Showtime content as well as three additional Thursday Night
Football games. Affiliate and subscription fee revenues
increased 13%, led by growth in retransmission revenues, fees from
CBS Television Network affiliated stations, and digital
distribution services. Advertising revenues decreased 3% and were
affected by having three fewer Thursday Night Football games
than the fourth quarter of 2015 as well as lower ratings from the
broadcast of NFL games in the fourth quarter of 2016. At the same
time, advertising also benefited during the quarter from political
spending at our local television stations.
Operating income for the fourth quarter of 2016 was $484 million compared with $770 million for the same prior-year period.
Comparability was affected by a one-time pension settlement charge
in the fourth quarter of 2016 and a gain from the sale of an
internet business in China in the
fourth quarter of 2015. Adjusted operating income of $733 million for the fourth quarter of 2016 grew
10% from $664 million for the same
prior-year period, primarily reflecting growth from high-margin
revenues, including political advertising, retransmission revenues,
and fees from CBS Television Network affiliated stations.
Net earnings from continuing operations were $271 million for the fourth quarter of 2016
compared with $507 million for the
same quarter last year, which included the previously mentioned
discrete items. The Company reported a net loss of $113 million for the fourth quarter of 2016
compared with net earnings of $261
million for the fourth quarter of 2015. Both periods
included impairment charges at CBS Radio, which has been presented
in discontinued operations. Adjusted net earnings increased 9% to
$476 million from $436 million for the same prior-year period,
driven by the higher adjusted operating income.
Diluted earnings per share ("EPS") from continuing operations
for the fourth quarter of 2016 was $.63 compared with $1.07 for the same quarter in 2015. EPS was a
loss of $.26 for the fourth quarter
of 2016 compared with EPS of $.55 for
the fourth quarter of 2015, which for both periods included the
above-mentioned discrete items. Adjusted EPS for the fourth quarter
of 2016 grew 21% to $1.11 from
$.92 for the same prior-year period,
driven by the higher adjusted net earnings and lower weighted
average shares outstanding. During the quarter, the Company
repurchased 25.4 million of its shares for $1.5 billion.
Details of the discrete items excluded from adjusted results,
along with reconciliations of non-GAAP measures to reported
results, are included at the end of this earnings release.
Pension Settlement
In September 2016, the Company
offered eligible former employees the option to make a one-time
election to receive the present value of their pension benefits as
a lump-sum distribution. During the fourth quarter of 2016, the
Company recorded a one-time settlement charge of $211 million, reflecting the accelerated
recognition of unamortized losses in the pension plan in proportion
to the obligation that was settled.
CBS Radio Separation
On February 2, 2017, the Company
entered into an agreement to merge CBS Radio with a subsidiary of
Entercom Communications Corp. In connection with the transaction,
which is expected to be tax-free to CBS Corporation and its
stockholders, the Company intends to split-off CBS Radio through an
exchange offer immediately prior to the merger. The merger will
create a well-capitalized company with a market cap in excess of
$2 billion, a strong balance sheet,
significant free cash flow, and the ability to pay an attractive
dividend. The combined company is expected to generate meaningful
cost synergies within 12-18 months after the merger. The Company
expects to complete the transaction in the second half of 2017,
subject to customary closing conditions. CBS Radio has been
presented as a discontinued operation for all periods
presented.
Free Cash Flow
For the fourth quarter of 2016, operating cash flow from
continuing operations was $337
million compared with $671
million for the same prior-year period, and for the 2016
full year, operating cash flow from continuing operations was
$1.45 billion compared with
$1.19 billion for 2015. For the
fourth quarter of 2016, free cash flow was $252 million compared with $588 million for the same prior-year period, and
for the 2016 full year, free cash flow was $1.26 billion compared with $1.02 billion in 2015. The increases for the full
year were driven by growth in affiliate and subscription fees and
higher advertising revenues, including from the broadcast of
Super Bowl 50 on CBS, and were partially offset by increased
investment in content.
Full Year 2016 Results
Full year 2016 revenues were $13.17
billion, up 4% from $12.67
billion in 2015. The growth was driven by an 8% increase in
advertising revenues, led by the broadcast of Super Bowl 50
on CBS and record political advertising in 2016. Affiliate and
subscription fees were up 9%, reflecting higher retransmission
revenues and fees from CBS Television Network affiliated stations,
which together were up 35%, as well as growth in digital
distribution services. These increases were partially offset by the
benefit to 2015 from Showtime Networks' distribution of the
Mayweather/Pacquiao boxing event. Content licensing and
distribution revenues decreased 6%, reflecting a difficult
comparison with the prior year, which included significant
licensing sales of NCIS and Elementary.
Operating income was $2.62 billion
for 2016 compared with $2.66 billion
for 2015. Operating income for 2016 included a pension settlement
charge, and for 2015, operating income included gains on the sales
of internet businesses in China.
Adjusted operating income of $2.86
billion in 2016 increased 12% from $2.56 billion in 2015, mainly reflecting the
revenue growth.
Net earnings from continuing operations were $1.55 billion for both 2016 and 2015, which
included the previously mentioned discrete items. Net earnings were
$1.26 billion for 2016 compared with
$1.41 billion for 2015. Net earnings
for both periods included impairment charges at CBS Radio, which
has been presented in discontinued operations. Adjusted net
earnings grew 14% to $1.84 billion
for 2016 from $1.62 billion for 2015,
principally because of the growth in adjusted operating income.
EPS from continuing operations for 2016 was $3.46 compared with $3.18 for 2015. EPS was $2.81 for 2016 compared with $2.89 for 2015, which for both periods included
the above-mentioned discrete items. Adjusted EPS for 2016 was
$4.11, up 24% from $3.31 for 2015, driven by the higher adjusted net
earnings and lower weighted average shares outstanding. During
2016, the Company repurchased 54.3 million of its shares for
$3.0 billion.
Details of the discrete items excluded from adjusted results,
along with reconciliations of non-GAAP measures to reported
results, are included at the end of this earnings release.
Consolidated and Segment Results (dollars in
millions)
The tables below present the Company's revenues by segment and
type; operating income (loss) excluding a pension settlement
charge, restructuring and merger and acquisition-related costs, and
other operating items, net, by segment ("Segment Operating
Income"); and depreciation and amortization by segment for the
three and twelve months ended December 31, 2016, and 2015.
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
Revenues by
Segment
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Entertainment
|
$
|
2,394
|
|
|
$
|
2,460
|
|
|
$
|
8,877
|
|
|
$
|
8,438
|
|
Cable
Networks
|
501
|
|
|
562
|
|
|
2,160
|
|
|
2,242
|
|
Publishing
|
209
|
|
|
233
|
|
|
767
|
|
|
780
|
|
Local
Media
|
526
|
|
|
454
|
|
|
1,779
|
|
|
1,592
|
|
Corporate/Eliminations
|
(112)
|
|
|
(118)
|
|
|
(417)
|
|
|
(381)
|
|
Total
Revenues
|
$
|
3,518
|
|
|
$
|
3,591
|
|
|
$
|
13,166
|
|
|
$
|
12,671
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
Revenues by
Type
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Advertising
|
$
|
1,796
|
|
|
$
|
1,847
|
|
|
$
|
6,288
|
|
|
$
|
5,824
|
|
Content licensing and
distribution
|
893
|
|
|
1,014
|
|
|
3,673
|
|
|
3,903
|
|
Affiliate and
subscription fees
|
770
|
|
|
680
|
|
|
2,978
|
|
|
2,724
|
|
Other
|
59
|
|
|
50
|
|
|
227
|
|
|
220
|
|
Total
Revenues
|
$
|
3,518
|
|
|
$
|
3,591
|
|
|
$
|
13,166
|
|
|
$
|
12,671
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
Segment Operating
Income (Loss)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Entertainment
|
$
|
371
|
|
|
$
|
347
|
|
|
$
|
1,519
|
|
|
$
|
1,294
|
|
Cable
Networks
|
219
|
|
|
228
|
|
|
959
|
|
|
945
|
|
Publishing
|
36
|
|
|
34
|
|
|
119
|
|
|
114
|
|
Local
Media
|
216
|
|
|
149
|
|
|
618
|
|
|
487
|
|
Corporate
|
(109)
|
|
|
(94)
|
|
|
(354)
|
|
|
(276)
|
|
Adjusted Operating Income
|
733
|
|
|
664
|
|
|
2,861
|
|
|
2,564
|
|
Pension settlement
charge
|
(211)
|
|
|
—
|
|
|
(211)
|
|
|
—
|
|
Restructuring and
merger and acquisition-related costs
|
(38)
|
|
|
(14)
|
|
|
(38)
|
|
|
(45)
|
|
Other operating
items, net
|
—
|
|
|
120
|
|
|
9
|
|
|
139
|
|
Total Operating
Income
|
$
|
484
|
|
|
$
|
770
|
|
|
$
|
2,621
|
|
|
$
|
2,658
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
Depreciation and
Amortization
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Entertainment
|
$
|
29
|
|
|
$
|
31
|
|
|
$
|
117
|
|
|
$
|
126
|
|
Cable
Networks
|
6
|
|
|
6
|
|
|
23
|
|
|
23
|
|
Publishing
|
2
|
|
|
2
|
|
|
6
|
|
|
6
|
|
Local
Media
|
11
|
|
|
11
|
|
|
44
|
|
|
48
|
|
Corporate
|
9
|
|
|
8
|
|
|
35
|
|
|
32
|
|
Total Depreciation
and Amortization
|
$
|
57
|
|
|
$
|
58
|
|
|
$
|
225
|
|
|
$
|
235
|
|
Entertainment (CBS Television Network, CBS Television
Studios, CBS Studios International, CBS Television Distribution,
CBS Interactive, and CBS Films)
Entertainment revenues of $2.39
billion for the fourth quarter of 2016 decreased 3% from
$2.46 billion for the same prior-year
period. Entertainment advertising revenues decreased 8%, primarily
because of having three fewer Thursday Night Football games
than the fourth quarter of 2015 as well as lower ratings from the
broadcast of NFL games in the fourth quarter of 2016. Affiliate and
subscription fees were up 28% for the quarter, led by higher
station affiliation fees and subscription growth at CBS All
Access.
Entertainment operating income of $371
million for the fourth quarter of 2016 increased 7% from
$347 million for the same prior-year
period, primarily reflecting growth from high-margin revenues,
including station affiliation fees, as well as lower sports
programming costs from the broadcast of fewer Thursday Night
Football games.
Cable Networks (Showtime Networks, CBS Sports Network,
and Smithsonian Networks)
Cable Networks revenues were $501
million for the fourth quarter of 2016 compared with
$562 million for the same quarter in
2015, which included a multiyear international licensing agreement
in Europe and the domestic sale of
House of Lies. Growth from the Showtime digital
streaming subscription offering partially offset this decline.
Cable Networks operating income was $219
million for the fourth quarter of 2016 compared with
$228 million for the same prior-year
period, primarily reflecting the lower revenues, which was offset
by lower programming costs.
Publishing (Simon & Schuster)
Publishing revenues of $209
million for the fourth quarter of 2016 decreased 10% from
$233 million for the same prior-year
period, reflecting a difficult comparison with the fourth quarter
of 2015, which included the release of a bestselling title by
Stephen King. Bestselling titles for
the fourth quarter of 2016 included Scrappy Little Nobody by
Anna Kendrick and The Sleeping
Beauty Killer by Mary Higgins
Clark and Alafair Burke.
Publishing operating income of $36
million for the fourth quarter of 2016 increased 6% from
$34 million for the same prior-year
period, as lower production costs offset the decline in
revenues.
Local Media (CBS Television Stations)
Local Media revenues rose 16% to $526
million for the fourth quarter of 2016 from $454 million for the same prior-year period. The
growth was led by record political advertising sales from federal
and state elections and 9% growth in retransmission and
subscription revenues.
Local Media operating income for the fourth quarter of 2016 of
$216 million grew 45% from
$149 million for the same prior-year
period, primarily reflecting the higher revenues.
Corporate
Corporate expenses for the fourth quarter of 2016 increased 16%
to $109 million from $94 million for the same prior-year period,
primarily reflecting higher pension and other employee-related
costs.
About CBS Corporation
CBS Corporation (NYSE: CBS.A and
CBS) is a mass media company that creates and distributes
industry-leading content across a variety of platforms to audiences
around the world. The Company has businesses with origins that date
back to the dawn of the broadcasting age as well as new ventures
that operate on the leading edge of media. CBS owns the
most-watched television network in the U.S. and one of the world's
largest libraries of entertainment content, making its brand -"the
Eye" - one of the most recognized in business. The Company's
operations span virtually every field of media and entertainment,
including cable, publishing, radio, local TV, film, and interactive
and socially responsible media. CBS's businesses include CBS
Television Network, The CW (a joint venture between CBS Corporation
and Warner Bros. Entertainment), CBS Television Studios, CBS
Studios International, CBS Television Distribution, CBS Consumer
Products, CBS Home Entertainment, CBS Interactive, CBS Films,
Showtime Networks, CBS Sports Network, Pop (a joint venture between
CBS Corporation and Lionsgate), Smithsonian Networks, Simon &
Schuster, CBS Television Stations, CBS Radio and CBS EcoMedia. For
more information, go to www.cbscorporation.com.
Cautionary Statement Concerning Forward-Looking
Statements
This news release contains both historical and
forward-looking statements. All statements other than statements of
historical fact are, or may be deemed to be, forward-looking
statements within the meaning of section 27A of the Securities Act
of 1933 and section 21E of the Securities Exchange Act of 1934.
These forward-looking statements are not based on historical facts,
but rather reflect the Company's current expectations concerning
future results and events. Similarly, statements that describe our
objectives, plans or goals are or may be forward-looking
statements. These forward-looking statements involve known and
unknown risks, uncertainties and other factors that are difficult
to predict and which may cause the actual results, performance or
achievements of the Company to be different from any future
results, performance or achievements expressed or implied by these
statements. These risks, uncertainties and other factors include,
among others: advertising market conditions generally; changes in
the public acceptance of the Company's content; changes in
technology and its effect on competition in the Company's markets;
changes in the federal communications laws and regulations; the
impact of piracy on the Company's products; the impact of the
consolidation in the market for the Company's content; the impact
of negotiations or the loss of affiliation agreements or
retransmission agreements; other domestic and global economic,
business, competitive and/or other regulatory factors affecting the
Company's businesses generally; the impact of union activity,
including possible strikes or work stoppages or the Company's
inability to negotiate favorable terms for contract renewals; the
ability to achieve the separation of the Company's radio business
through a merger of CBS Radio with a subsidiary of Entercom
Communications Corp. on the anticipated terms and schedule, which
are subject to regulatory and Entercom stockholder approvals, an
exchange offer and other customary closing conditions, and
Entercom's ability to integrate CBS Radio's business successfully
after the merger and achieve anticipated synergies; and other
factors described in the Company's filings with the Securities and
Exchange Commission including but not limited to the Company's most
recent Form 10-K, Form 10-Qs and Form 8-Ks. The forward-looking
statements included in this document are made only as of the date
of this document, and under section 27A of the Securities Act and
section 21E of the Exchange Act, we do not have any obligation to
publicly update any forward-looking statements to reflect
subsequent events or circumstances.
CBS CORPORATION
AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Unaudited; in
millions, except per share amounts)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
3,518
|
|
|
$
|
3,591
|
|
|
$
|
13,166
|
|
|
$
|
12,671
|
|
Operating
income
|
484
|
|
|
770
|
|
|
2,621
|
|
|
2,658
|
|
Interest
expense
|
(107)
|
|
|
(103)
|
|
|
(411)
|
|
|
(392)
|
|
Interest
income
|
10
|
|
|
6
|
|
|
32
|
|
|
24
|
|
Other items,
net
|
(5)
|
|
|
(3)
|
|
|
(12)
|
|
|
(26)
|
|
Earnings from
continuing operations before income taxes
|
382
|
|
|
670
|
|
|
2,230
|
|
|
2,264
|
|
Provision for income
taxes
|
(104)
|
|
|
(164)
|
|
|
(628)
|
|
|
(676)
|
|
Equity in earnings
(loss) of investee companies, net of tax
|
(7)
|
|
|
1
|
|
|
(50)
|
|
|
(34)
|
|
Net earnings from
continuing operations
|
271
|
|
|
507
|
|
|
1,552
|
|
|
1,554
|
|
Net loss from
discontinued operations, net of tax
|
(384)
|
|
|
(246)
|
|
|
(291)
|
|
|
(141)
|
|
Net earnings
(loss)
|
$
|
(113)
|
|
|
$
|
261
|
|
|
$
|
1,261
|
|
|
$
|
1,413
|
|
Basic net earnings
(loss) per common share:
|
|
|
|
|
|
|
|
Net earnings from
continuing operations
|
$
|
.64
|
|
|
$
|
1.08
|
|
|
$
|
3.50
|
|
|
$
|
3.21
|
|
Net loss from
discontinued operations
|
$
|
(.91)
|
|
|
$
|
(.52)
|
|
|
$
|
(.66)
|
|
|
$
|
(.29)
|
|
Net earnings
(loss)
|
$
|
(.27)
|
|
|
$
|
.56
|
|
|
$
|
2.84
|
|
|
$
|
2.92
|
|
|
|
|
|
|
|
|
|
Diluted net
earnings (loss) per common share:
|
|
|
|
|
|
|
|
Net earnings from
continuing operations
|
$
|
.63
|
|
|
$
|
1.07
|
|
|
$
|
3.46
|
|
|
$
|
3.18
|
|
Net loss from
discontinued operations
|
$
|
(.90)
|
|
|
$
|
(.52)
|
|
|
$
|
(.65)
|
|
|
$
|
(.29)
|
|
Net earnings
(loss)
|
$
|
(.26)
|
|
|
$
|
.55
|
|
|
$
|
2.81
|
|
|
$
|
2.89
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
424
|
|
|
469
|
|
|
444
|
|
|
484
|
|
Diluted
|
429
|
|
|
474
|
|
|
448
|
|
|
489
|
|
|
|
|
|
|
|
|
|
Dividends per
common share
|
$
|
.18
|
|
|
$
|
.15
|
|
|
$
|
.66
|
|
|
$
|
.60
|
|
CBS CORPORATION
AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(Unaudited; in
millions)
|
|
|
At
|
|
|
At
|
|
|
December 31,
2016
|
|
December 31,
2015
|
Assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
598
|
|
|
|
|
$
|
317
|
|
|
Receivables,
net
|
|
3,314
|
|
|
|
|
3,375
|
|
|
Programming and other
inventory
|
|
1,427
|
|
|
|
|
1,270
|
|
|
Prepaid expenses and
other current assets
|
|
419
|
|
|
|
|
462
|
|
|
Current assets of
discontinued operations
|
|
305
|
|
|
|
|
323
|
|
|
Total current
assets
|
|
6,063
|
|
|
|
|
5,747
|
|
|
Property and
equipment
|
|
2,935
|
|
|
|
|
2,880
|
|
|
Less accumulated
depreciation and amortization
|
|
1,694
|
|
|
|
|
1,627
|
|
|
Net property and
equipment
|
|
1,241
|
|
|
|
|
1,253
|
|
|
Programming and other
inventory
|
|
2,439
|
|
|
|
|
1,957
|
|
|
Goodwill
|
|
4,864
|
|
|
|
|
4,789
|
|
|
Intangible
assets
|
|
2,633
|
|
|
|
|
2,639
|
|
|
Other
assets
|
|
2,707
|
|
|
|
|
2,633
|
|
|
Assets of
discontinued operations
|
|
4,291
|
|
|
|
|
4,747
|
|
|
Total
Assets
|
|
$
|
24,238
|
|
|
|
|
$
|
23,765
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
148
|
|
|
|
|
$
|
159
|
|
|
Participants' share
and royalties payable
|
|
1,024
|
|
|
|
|
1,013
|
|
|
Program
rights
|
|
290
|
|
|
|
|
372
|
|
|
Commercial
paper
|
|
450
|
|
|
|
|
—
|
|
|
Current portion of
long-term debt
|
|
23
|
|
|
|
|
222
|
|
|
Accrued expenses and
other current liabilities
|
|
1,618
|
|
|
|
|
1,651
|
|
|
Current liabilities
of discontinued operations
|
|
155
|
|
|
|
|
143
|
|
|
Total current
liabilities
|
|
3,708
|
|
|
|
|
3,560
|
|
|
Long-term
debt
|
|
8,902
|
|
|
|
|
8,226
|
|
|
Other
liabilities
|
|
5,488
|
|
|
|
|
5,277
|
|
|
Liabilities of
discontinued operations
|
|
2,451
|
|
|
|
|
1,139
|
|
|
Total Stockholders'
Equity
|
|
3,689
|
|
|
|
|
5,563
|
|
|
Total Liabilities and
Stockholders' Equity
|
|
$
|
24,238
|
|
|
|
|
$
|
23,765
|
|
|
CBS CORPORATION
AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Unaudited; in
millions)
|
|
|
Twelve Months
Ended
|
|
December
31,
|
|
|
2016
|
|
|
|
2015
|
|
Operating
Activities:
|
|
|
|
|
|
|
|
Net
earnings
|
|
$
|
1,261
|
|
|
|
|
$
|
1,413
|
|
|
Less: Net loss from
discontinued operations
|
|
(291)
|
|
|
|
|
(141)
|
|
|
Net earnings from
continuing operations
|
|
1,552
|
|
|
|
|
1,554
|
|
|
Adjustments to
reconcile net earnings from continuing operations to net cash
flow
provided by operating activities from continuing
operations:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
225
|
|
|
|
|
235
|
|
|
Stock-based
compensation
|
|
165
|
|
|
|
|
157
|
|
|
Net gain on
disposition and write-down of assets
|
|
(18)
|
|
|
|
|
(139)
|
|
|
Equity in loss of
investee companies, net of tax and distributions
|
|
53
|
|
|
|
|
37
|
|
|
Change in assets and
liabilities, net of investing and financing activities
|
|
(523)
|
|
|
|
|
(655)
|
|
|
Net cash flow
provided by operating activities from continuing
operations
|
|
1,454
|
|
|
|
|
1,189
|
|
|
Net cash flow
provided by operating activities from discontinued
operations
|
|
231
|
|
|
|
|
205
|
|
|
Net cash flow
provided by operating activities
|
|
1,685
|
|
|
|
|
1,394
|
|
|
Investing
Activities:
|
|
|
|
|
|
|
|
Acquisitions
|
|
(92)
|
|
|
|
|
(12)
|
|
|
Capital
expenditures
|
|
(196)
|
|
|
|
|
(171)
|
|
|
Investments in and
advances to investee companies
|
|
(81)
|
|
|
|
|
(98)
|
|
|
Proceeds from sale of
investments
|
|
—
|
|
|
|
|
80
|
|
|
Proceeds from
dispositions
|
|
20
|
|
|
|
|
383
|
|
|
Other investing
activities
|
|
15
|
|
|
|
|
(3)
|
|
|
Net cash flow (used
for) provided by investing activities from continuing
operations
|
|
(334)
|
|
|
|
|
179
|
|
|
Net cash flow used
for investing activities from discontinued operations
|
|
(6)
|
|
|
|
|
(25)
|
|
|
Net cash flow (used
for) provided by investing activities
|
|
(340)
|
|
|
|
|
154
|
|
|
Financing
Activities:
|
|
|
|
|
|
|
|
Proceeds from
(repayments of) short-term debt borrowings, net
|
|
450
|
|
|
|
|
(616)
|
|
|
Proceeds from
issuance of senior notes
|
|
684
|
|
|
|
|
1,959
|
|
|
Repayment of notes
and debentures
|
|
(199)
|
|
|
|
|
—
|
|
|
Proceeds from debt
borrowings of CBS Radio
|
|
1,452
|
|
|
|
|
—
|
|
|
Repayment of debt
borrowings of CBS Radio
|
|
(110)
|
|
|
|
|
—
|
|
|
Payment of capital
lease obligations
|
|
(18)
|
|
|
|
|
(17)
|
|
|
Dividends
|
|
(288)
|
|
|
|
|
(300)
|
|
|
Purchase of Company
common stock
|
|
(2,997)
|
|
|
|
|
(2,813)
|
|
|
Payment of payroll
taxes in lieu of issuing shares for stock-based
compensation
|
|
(58)
|
|
|
|
|
(96)
|
|
|
Proceeds from
exercise of stock options
|
|
21
|
|
|
|
|
142
|
|
|
Excess tax benefit
from stock-based compensation
|
|
17
|
|
|
|
|
88
|
|
|
Net cash flow used
for financing activities
|
|
(1,046)
|
|
|
|
|
(1,653)
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
299
|
|
|
|
|
(105)
|
|
|
Cash and cash
equivalents at beginning of year
(includes $6 (2016
and 2015) of discontinued operations cash)
|
|
323
|
|
|
|
|
428
|
|
|
Cash and cash
equivalents at end of year
(includes $24 (2016)
and $6 (2015) of discontinued operations cash)
|
|
$
|
622
|
|
|
|
|
$
|
323
|
|
|
CBS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL
DISCLOSURES REGARDING NON-GAAP FINANCIAL
INFORMATION
(Unaudited; in millions)
Adjusted Operating Income and Segment Operating Income
The following tables set forth the Company's Adjusted Operating
Income for the three and twelve months ended December 31, 2016
and 2015. The Company defines "Adjusted Operating Income" as
operating income excluding a pension settlement charge,
restructuring and merger and acquisition-related costs, and other
operating items, net, each where applicable. For each individual
reportable segment Adjusted Operating Income is also known as
"Segment Operating Income." The Company presents Segment Operating
Income as the primary measure of profit and loss for its reportable
segments in accordance with Financial Accounting Standards Board
guidance for segment reporting.
The Company uses Adjusted Operating Income (or Segment Operating
Income for each segment), as well as Adjusted Operating Income
Margin, to, among other things, evaluate the Company's operating
performance, to value prospective acquisitions and as one of
several components of incentive compensation targets for certain
management personnel. These measures are among the primary measures
used by management for planning and forecasting of future periods,
and they are important indicators of the Company's operational
strength and business performance. The Company believes these
measures are relevant and useful for investors because they allow
investors to view performance in a manner similar to the method
used by the Company's management, help improve investors'
understanding of the Company's operating performance, and make it
easier for investors to compare the Company's results with other
companies that have different financing and capital structures or
tax rates. In addition, these are among the primary measures used
externally by the Company's investors, analysts and industry peers
for purposes of valuation and for the comparison of the Company's
operating performance to other companies in its industry, and to
compare the Company's year-over-year results.
Because Adjusted Operating Income is a measure of performance
not calculated in accordance with accounting principles generally
accepted in the United States
("GAAP"), it should not be considered in isolation of, or as a
substitute for, operating income or net earnings as an indicator of
operating performance. Adjusted Operating Income, as the Company
calculates it, may not be comparable to similarly titled measures
employed by other companies. In addition, this measure does not
necessarily represent funds available for discretionary use and is
not necessarily a measure of the Company's ability to fund its cash
needs. As Adjusted Operating Income excludes certain financial
information that is included in operating income and net earnings,
the most directly comparable GAAP financial measures, users of this
financial information should consider the types of events and
transactions which are excluded. The Company provides the following
reconciliation of Adjusted Operating Income to operating income and
net earnings.
CBS CORPORATION
AND SUBSIDIARIES
|
SUPPLEMENTAL
DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
(continued)
|
(Unaudited; in
millions)
|
|
|
Three Months Ended
December 31,
|
|
2016
|
|
2015
|
Adjusted operating
income
|
|
$
|
733
|
|
|
|
|
$
|
664
|
|
|
Pension settlement
charge
|
|
(211)
|
|
|
|
|
—
|
|
|
Restructuring and
merger and acquisition-related costs
|
|
(38)
|
|
|
|
|
(14)
|
|
|
Other operating
items, net
|
|
—
|
|
|
|
|
120
|
|
|
Operating
income
|
|
484
|
|
|
|
|
770
|
|
|
Interest
expense
|
|
(107)
|
|
|
|
|
(103)
|
|
|
Interest
income
|
|
10
|
|
|
|
|
6
|
|
|
Other items,
net
|
|
(5)
|
|
|
|
|
(3)
|
|
|
Earnings from
continuing operations before income taxes
|
|
382
|
|
|
|
|
670
|
|
|
Provision for income
taxes
|
|
(104)
|
|
|
|
|
(164)
|
|
|
Equity in earnings
(loss) of investee companies, net of tax
|
|
(7)
|
|
|
|
|
1
|
|
|
Net earnings from
continuing operations
|
|
271
|
|
|
|
|
507
|
|
|
Net loss from
discontinued operations, net of tax
|
|
(384)
|
|
|
|
|
(246)
|
|
|
Net earnings
(loss)
|
|
$
|
(113)
|
|
|
|
|
$
|
261
|
|
|
|
Twelve Months
Ended December 31,
|
|
2016
|
|
2015
|
Adjusted operating
income
|
|
$
|
2,861
|
|
|
|
|
$
|
2,564
|
|
|
Pension settlement
charge
|
|
(211)
|
|
|
|
|
—
|
|
|
Restructuring and
merger and acquisition-related costs
|
|
(38)
|
|
|
|
|
(45)
|
|
|
Other operating
items, net
|
|
9
|
|
|
|
|
139
|
|
|
Operating
income
|
|
2,621
|
|
|
|
|
2,658
|
|
|
Interest
expense
|
|
(411)
|
|
|
|
|
(392)
|
|
|
Interest
income
|
|
32
|
|
|
|
|
24
|
|
|
Other items,
net
|
|
(12)
|
|
|
|
|
(26)
|
|
|
Earnings from
continuing operations before income taxes
|
|
2,230
|
|
|
|
|
2,264
|
|
|
Provision for income
taxes
|
|
(628)
|
|
|
|
|
(676)
|
|
|
Equity in loss of
investee companies, net of tax
|
|
(50)
|
|
|
|
|
(34)
|
|
|
Net earnings from
continuing operations
|
|
1,552
|
|
|
|
|
1,554
|
|
|
Net loss from
discontinued operations, net of tax
|
|
(291)
|
|
|
|
|
(141)
|
|
|
Net
earnings
|
|
$
|
1,261
|
|
|
|
|
$
|
1,413
|
|
|
CBS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL
DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
(continued)
(Unaudited; in millions)
Free Cash Flow
The Company defines free cash flow as its net cash flow provided
by (used for) operating activities before operating cash flow from
discontinued operations and less capital expenditures. The
Company's calculation of free cash flow includes capital
expenditures because investment in capital expenditures is a use of
cash that is directly related to the Company's operations. The
Company's net cash flow provided by (used for) operating activities
is the most directly comparable GAAP financial measure.
Management believes free cash flow provides investors with an
important perspective on the cash available to the Company to
service debt, make strategic acquisitions and investments, maintain
its capital assets, satisfy its tax obligations, and fund ongoing
operations and working capital needs. As a result, free cash flow
is a significant measure of the Company's ability to generate
long-term value. It is useful for investors to know whether
this ability is being enhanced or degraded as a result of the
Company's operating performance. The Company believes the
presentation of free cash flow is relevant and useful for investors
because it allows investors to evaluate the cash generated from the
Company's underlying operations in a manner similar to the method
used by management. Free cash flow is one of several components of
incentive compensation targets for certain management personnel. In
addition, free cash flow is a primary measure used externally by
the Company's investors, analysts and industry peers for purposes
of valuation and comparison of the Company's operating performance
to other companies in its industry.
As free cash flow is not a measure calculated in accordance with
GAAP, free cash flow should not be considered in isolation of, or
as a substitute for, either net cash flow provided by (used for)
operating activities as a measure of liquidity or net earnings as a
measure of operating performance. Free cash flow, as the Company
calculates it, may not be comparable to similarly titled measures
employed by other companies. In addition, free cash flow as a
measure of liquidity has certain limitations, does
not necessarily represent funds available for discretionary
use, and is not necessarily a measure of the Company's ability to
fund its cash needs. When comparing free cash flow to net cash flow
provided by (used for) operating activities, the most directly
comparable GAAP financial measure, users of this financial
information should consider the types of events and transactions
that are not reflected in free cash flow.
The following table presents a reconciliation of the Company's
net cash flow provided by operating activities to free cash
flow:
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net cash flow
provided by operating activities
|
$
|
379
|
|
|
$
|
771
|
|
|
$
|
1,685
|
|
|
$
|
1,394
|
|
Capital
expenditures
|
(85)
|
|
|
(83)
|
|
|
(196)
|
|
|
(171)
|
|
Exclude operating
cash flow from discontinued operations
|
42
|
|
|
100
|
|
|
231
|
|
|
205
|
|
Free cash
flow
|
$
|
252
|
|
|
$
|
588
|
|
|
$
|
1,258
|
|
|
$
|
1,018
|
|
The following table presents a summary of the Company's cash
flows:
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net cash flow
provided by operating activities
|
$
|
379
|
|
|
$
|
771
|
|
|
$
|
1,685
|
|
|
$
|
1,394
|
|
Net cash flow (used
for) provided by investing activities
|
$
|
(159)
|
|
|
$
|
260
|
|
|
$
|
(340)
|
|
|
$
|
154
|
|
Net cash flow
provided by (used for) financing activities
|
$
|
223
|
|
|
$
|
(841)
|
|
|
$
|
(1,046)
|
|
|
$
|
(1,653)
|
|
CBS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL
DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
(continued)
(Unaudited; in millions, except per share
amounts)
2016 and 2015 Adjusted Results
The following tables reconcile adjusted financial results to the
reported results included in this earnings release. The Company
believes that adjusting its financial results for the impact of
these items is relevant and useful for investors because it allows
investors to view performance in a manner similar to the method
used by the Company's management; provides a clearer perspective on
the underlying performance of the Company; makes it easier for
investors, analysts, and peers to compare the Company's operating
performance to other companies in its industry; and adjusting each
period's results on the same basis makes it easier to compare the
Company's year-over-year results.
Three Months Ended
December 31, 2016
|
|
2016
Reported
|
|
Pension
Settlement
Charge
(a)
|
|
Restructuring
and
Merger
and
Acquisition-
Related Costs (b)
|
|
Impairment Charge
(c)
|
|
Other
(d)
|
|
2016
Adjusted
|
|
Revenues
|
$
|
3,518
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,518
|
|
|
Operating
income
|
$
|
484
|
|
|
$
|
211
|
|
|
|
$
|
38
|
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
733
|
|
|
Operating income
margin (e)
|
14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
21
|
%
|
|
Interest
expense
|
(107)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
(107)
|
|
|
Interest
income
|
10
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
Other items,
net
|
(5)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
(5)
|
|
|
Earnings from
continuing
operations before
income
taxes
|
382
|
|
|
211
|
|
|
|
38
|
|
|
|
—
|
|
|
—
|
|
|
631
|
|
|
Provision for income
taxes
|
(104)
|
|
|
(81)
|
|
|
|
(15)
|
|
|
|
—
|
|
|
—
|
|
|
(200)
|
|
|
Effective income tax
rate
|
27.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
31.7
|
%
|
|
Equity in loss of
investee
companies, net of
tax
|
(7)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
4
|
|
|
(3)
|
|
|
Net earnings from
continuing
operations
|
271
|
|
|
130
|
|
|
|
23
|
|
|
|
—
|
|
|
4
|
|
|
428
|
|
|
Net earnings (loss)
from
discontinued
operations
|
(384)
|
|
|
—
|
|
|
|
5
|
|
|
|
427
|
|
|
—
|
|
|
48
|
|
|
Net earnings
(loss)
|
$
|
(113)
|
|
|
$
|
130
|
|
|
|
$
|
28
|
|
|
|
$
|
427
|
|
|
$
|
4
|
|
|
$
|
476
|
|
|
Diluted EPS
from
continuing
operations
|
$
|
.63
|
|
|
$
|
.30
|
|
|
|
$
|
.05
|
|
|
|
$
|
—
|
|
|
$
|
.01
|
|
|
$
|
1.00
|
|
|
Diluted
EPS
|
$
|
(.26)
|
|
|
$
|
.30
|
|
|
|
$
|
.07
|
|
|
|
$
|
1.00
|
|
|
$
|
.01
|
|
|
$
|
1.11
|
|
|
Diluted weighted
average
number of
common
shares
outstanding
|
429
|
|
|
|
|
|
|
|
|
|
|
|
|
429
|
|
|
|
|
(a)
|
Reflects a one-time
charge for the settlement of pension obligations resulting from the
completion of the Company's offer to former employees to
receive lump-sum distributions of their pension
benefits.
|
(b)
|
Reflects
restructuring charges at Entertainment, Cable Networks, Publishing,
Local Media, and Corporate, primarily for the reorganization of
certain business operations, and professional fees associated with
merger and acquisition activities. Adjustments for discontinued
operations reflect restructuring charges at CBS Radio.
|
(c)
|
Reflects a noncash
impairment charge of $444 million ($427 million, net of tax) to
reduce the carrying value of CBS Radio's goodwill and FCC licenses
to their fair value.
|
(d)
|
Reflects the
write-down of an international television joint venture to its fair
value.
|
(e)
|
Operating income
margin is defined as Operating Income or Adjusted Operating Income
divided by revenues.
|
CBS CORPORATION
AND SUBSIDIARIES
|
SUPPLEMENTAL
DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
(continued)
|
(Unaudited; in
millions, except per share amounts)
|
|
Three Months Ended
December 31, 2015
|
|
2015
Reported
|
|
Restructuring
Charges (a)
|
|
Other
Operating
Items (b)
|
|
Impairment
Charge (c)
|
|
Other
(d)
|
|
2015
Adjusted
|
|
Revenues
|
$
|
3,591
|
|
|
|
$
|
—
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
$
|
3,591
|
|
|
Operating
income
|
$
|
770
|
|
|
|
$
|
14
|
|
|
|
|
$
|
(120)
|
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
$
|
664
|
|
|
Operating income
margin (e)
|
21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18
|
%
|
|
Interest
expense
|
(103)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
(103)
|
|
|
Interest
income
|
6
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
6
|
|
|
Other items,
net
|
(3)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
(3)
|
|
|
Earnings from
continuing
operations before
income
taxes
|
670
|
|
|
|
14
|
|
|
|
|
(120)
|
|
|
|
|
—
|
|
|
|
—
|
|
|
564
|
|
|
Provision for income
taxes
|
(164)
|
|
|
|
(5)
|
|
|
|
|
(8)
|
|
|
|
|
—
|
|
|
|
—
|
|
|
(177)
|
|
|
Effective income tax
rate
|
24.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.4
|
%
|
|
Equity in earnings
of
investee
companies,
net of tax
|
1
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
1
|
|
|
Net earnings from
continuing
operations
|
507
|
|
|
|
9
|
|
|
|
|
(128)
|
|
|
|
|
—
|
|
|
|
—
|
|
|
388
|
|
|
Net earnings (loss)
from
discontinued
operations
|
(246)
|
|
|
|
7
|
|
|
|
|
—
|
|
|
|
|
297
|
|
|
|
(10)
|
|
|
48
|
|
|
Net
earnings
|
$
|
261
|
|
|
|
$
|
16
|
|
|
|
|
$
|
(128)
|
|
|
|
|
$
|
297
|
|
|
|
$
|
(10)
|
|
|
$
|
436
|
|
|
Diluted EPS
from
continuing
operations
|
$
|
1.07
|
|
|
|
$
|
.02
|
|
|
|
|
$
|
(.27)
|
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
$
|
.82
|
|
|
Diluted
EPS
|
$
|
.55
|
|
|
|
$
|
.03
|
|
|
|
|
$
|
(.27)
|
|
|
|
|
$
|
.63
|
|
|
|
$
|
(.02)
|
|
|
$
|
.92
|
|
|
Diluted weighted
average
number of
common
shares
outstanding
|
474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
474
|
|
|
|
|
(a)
|
Restructuring charges
at Entertainment primarily for the reorganization of certain
business operations. Adjustments to discontinued operations
reflect
restructuring charges at CBS Radio.
|
(b)
|
Reflects a gain from
the sale of an internet business in China.
|
(c)
|
Reflects a noncash
impairment charge of $484 million ($297 million, net of tax) to
reduce the carrying value of CBS Radio's FCC licenses to their
fair value.
|
(d)
|
Primarily reflects a
decrease to the guarantee liability associated with the 2013
disposition of Outdoor Europe.
|
(e)
|
Operating income
margin is defined as Operating Income or Adjusted Operating Income
divided by revenues.
|
CBS CORPORATION
AND SUBSIDIARIES
|
SUPPLEMENTAL
DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
(continued)
|
(Unaudited; in
millions, except per share amounts)
|
|
|
Twelve Months
Ended December 31, 2016
|
|
2016
Reported
|
|
Pension
Settlement
Charge
(a)
|
|
Restructuring
and
Merger
and
Acquisition-
Related Costs (b)
|
|
Tax
Items (c)
|
|
Impairment
Charge (d)
|
|
Other
(e)
|
|
2016
Adjusted
|
|
Revenues
|
$
|
13,166
|
|
|
|
$
|
—
|
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
$
|
13,166
|
|
|
Operating
income
|
$
|
2,621
|
|
|
|
$
|
211
|
|
|
|
|
$
|
38
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
(9)
|
|
|
$
|
2,861
|
|
|
Operating income
margin (f)
|
20
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22
|
%
|
|
Interest
expense
|
(411)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
(411)
|
|
|
Interest
income
|
32
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
32
|
|
|
Other items,
net
|
(12)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
(12)
|
|
|
Earnings from
continuing
operations before
income
taxes
|
2,230
|
|
|
|
211
|
|
|
|
|
38
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(9)
|
|
|
2,470
|
|
|
Provision for income
taxes
|
(628)
|
|
|
|
(81)
|
|
|
|
|
(15)
|
|
|
|
(47)
|
|
|
|
—
|
|
|
|
4
|
|
|
(767)
|
|
|
Effective income tax
rate
|
28.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.1
|
%
|
|
Equity in loss of
investee
companies, net of
tax
|
(50)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
10
|
|
|
(40)
|
|
|
Net earnings from
continuing
operations
|
1,552
|
|
|
|
130
|
|
|
|
|
23
|
|
|
|
(47)
|
|
|
|
—
|
|
|
|
5
|
|
|
1,663
|
|
|
Net earnings (loss)
from
discontinued
operations
|
(291)
|
|
|
|
—
|
|
|
|
|
5
|
|
|
|
36
|
|
|
|
427
|
|
|
|
—
|
|
|
177
|
|
|
Net
earnings
|
$
|
1,261
|
|
|
|
$
|
130
|
|
|
|
|
$
|
28
|
|
|
|
$
|
(11)
|
|
|
|
$
|
427
|
|
|
|
$
|
5
|
|
|
$
|
1,840
|
|
|
Diluted EPS
from
continuing
operations
|
$
|
3.46
|
|
|
|
$
|
.29
|
|
|
|
|
$
|
.05
|
|
|
|
$
|
(.10)
|
|
|
|
$
|
—
|
|
|
|
$
|
.01
|
|
|
$
|
3.71
|
|
|
Diluted
EPS
|
$
|
2.81
|
|
|
|
$
|
.29
|
|
|
|
|
$
|
.06
|
|
|
|
$
|
(.02)
|
|
|
|
$
|
.95
|
|
|
|
$
|
.01
|
|
|
$
|
4.11
|
|
|
Diluted weighted
average
number of
common
shares
outstanding
|
448
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
448
|
|
|
|
|
(a)
|
Reflects a one-time
charge for the settlement of pension obligations resulting from the
completion of the Company's offer to former employees to
receive
lump-sum distributions of their pension benefits.
|
(b)
|
Reflects
restructuring charges at Entertainment, Cable Networks, Publishing,
Local Media, and Corporate, primarily for the reorganization of
certain business operations, and professional fees associated with
merger and acquisition activities. Adjustments for discontinued
operations reflect restructuring charges at CBS Radio.
|
(c)
|
Reflects a one-time
tax benefit associated with a multiyear adjustment to a tax
deduction, which was approved by the IRS during the third quarter
of 2016 and, included in discontinued operations, a charge from the
resolution of a tax matter in a foreign jurisdiction relating to a
previously disposed business.
|
(d)
|
Reflects a noncash
impairment charge of $444 million ($427 million, net of tax) to
reduce the carrying value of CBS Radio's goodwill and FCC licenses
to their fair value.
|
(e)
|
Reflects a gain from
the sale of an internet business in China, a multiyear, retroactive
impact of a new operating tax, and write-downs of an international
television joint venture to its fair value.
|
(f)
|
Operating income
margin is defined as Operating Income or Adjusted Operating Income
divided by revenues.
|
CBS CORPORATION
AND SUBSIDIARIES
|
SUPPLEMENTAL
DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
(continued)
|
(Unaudited; in
millions, except per share amounts)
|
|
|
Twelve Months
Ended December 31, 2015
|
|
2015
Reported
|
|
Restructuring
Charges (a)
|
|
Other
Operating
Items (b)
|
|
Impairment
Charge (c)
|
|
Other
(d)
|
|
2015
Adjusted
|
|
Revenues
|
$
|
12,671
|
|
|
|
$
|
—
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
$
|
12,671
|
|
|
Operating
income
|
$
|
2,658
|
|
|
|
$
|
45
|
|
|
|
|
$
|
(139)
|
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
$
|
2,564
|
|
|
Operating income
margin (e)
|
21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20
|
%
|
|
Interest
expense
|
(392)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
(392)
|
|
|
Interest
income
|
24
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
24
|
|
|
Other items,
net
|
(26)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
(26)
|
|
|
Earnings from
continuing
operations before
income
taxes
|
2,264
|
|
|
|
45
|
|
|
|
|
(139)
|
|
|
|
|
—
|
|
|
|
—
|
|
|
2,170
|
|
|
Provision for income
taxes
|
(676)
|
|
|
|
(17)
|
|
|
|
|
8
|
|
|
|
|
—
|
|
|
|
—
|
|
|
(685)
|
|
|
Effective income tax
rate
|
29.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.6
|
%
|
|
Equity in loss of
investee
companies, net of
tax
|
(34)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
(34)
|
|
|
Net earnings from
continuing
operations
|
1,554
|
|
|
|
28
|
|
|
|
|
(131)
|
|
|
|
|
—
|
|
|
|
—
|
|
|
1,451
|
|
|
Net earnings (loss)
from
discontinued
operations
|
(141)
|
|
|
|
21
|
|
|
|
|
—
|
|
|
|
|
297
|
|
|
|
(10)
|
|
|
167
|
|
|
Net
earnings
|
$
|
1,413
|
|
|
|
$
|
49
|
|
|
|
|
$
|
(131)
|
|
|
|
|
$
|
297
|
|
|
|
$
|
(10)
|
|
|
$
|
1,618
|
|
|
Diluted EPS
from
continuing operations
|
$
|
3.18
|
|
|
|
$
|
.06
|
|
|
|
|
$
|
(.27)
|
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
$
|
2.97
|
|
|
Diluted
EPS
|
$
|
2.89
|
|
|
|
$
|
.10
|
|
|
|
|
$
|
(.27)
|
|
|
|
|
$
|
.61
|
|
|
|
$
|
(.02)
|
|
|
$
|
3.31
|
|
|
Diluted weighted
average
number of common
shares outstanding
|
489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
489
|
|
|
|
|
(a)
|
Restructuring charges
at Entertainment and Local Media primarily for the reorganization
of certain business operations and other related costs.
Adjustments
to discontinued operations reflect restructuring charges at CBS
Radio.
|
(b)
|
Reflects gains from
the sales of internet businesses in China.
|
(c)
|
Reflects a noncash
impairment charge of $484 million ($297 million, net of tax) to
reduce the carrying value of CBS Radio's FCC licenses to their fair
value.
|
(d)
|
Primarily reflects a
decrease to the guarantee liability associated with the 2013
disposition of Outdoor Europe.
|
(e)
|
Operating income
margin is defined as Operating Income or Adjusted Operating Income
divided by revenues.
|
CBS CORPORATION
AND SUBSIDIARIES SUPPLEMENTAL DISCLOSURES REGARDING
NON-GAAP FINANCIAL INFORMATION (continued) (Unaudited; in
millions)
|
|
CBS Radio Results
The following tables provide reported and adjusted results for CBS
Radio, which has been presented as a discontinued operation of the
Company for all periods presented, along with a reconciliation of
adjusted financial results to reported results.
|
|
|
Three Months Ended
December 31, 2016
|
|
2016
Reported
|
|
Restructuring
Charges (a)
|
|
Impairment
Charge (b)
|
|
2016
Adjusted
|
|
Revenues
|
$
|
328
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
328
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$
|
(367)
|
|
|
$
|
8
|
|
|
$
|
444
|
|
|
$
|
85
|
|
|
Interest
expense
|
(17)
|
|
|
—
|
|
|
—
|
|
|
(17)
|
|
|
Earnings (loss)
before income taxes
|
(384)
|
|
|
8
|
|
|
444
|
|
|
68
|
|
|
Provision for income
taxes
|
—
|
|
|
(3)
|
|
|
(17)
|
|
|
(20)
|
|
|
Net earnings
(loss)
|
$
|
(384)
|
|
|
$
|
5
|
|
|
$
|
427
|
|
|
$
|
48
|
|
|
|
|
|
Three Months Ended
December 31, 2015
|
|
2015
Reported
|
|
Restructuring
Charges (a)
|
|
Impairment
Charge (b)
|
|
2015
Adjusted
|
|
Revenues
|
$
|
322
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
322
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$
|
(413)
|
|
|
$
|
12
|
|
|
$
|
484
|
|
|
$
|
83
|
|
|
Benefit (provision)
for income taxes
|
156
|
|
|
(5)
|
|
|
(187)
|
|
|
(36)
|
|
|
Equity in earnings of
investee companies, net of tax
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
Net earnings
(loss)
|
$
|
(256)
|
|
|
$
|
7
|
|
|
$
|
297
|
|
|
$
|
48
|
|
|
|
|
|
Twelve Months
Ended December 31, 2016
|
|
2016
Reported
|
|
Restructuring
Charges (a)
|
|
Impairment
Charge (b)
|
|
2016
Adjusted
|
|
Revenues
|
$
|
1,220
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,220
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$
|
(152)
|
|
|
$
|
8
|
|
|
$
|
444
|
|
|
$
|
300
|
|
|
Interest
expense
|
(17)
|
|
|
—
|
|
|
—
|
|
|
(17)
|
|
|
Other items,
net
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
Earnings (loss)
before income taxes
|
(167)
|
|
|
8
|
|
|
444
|
|
|
285
|
|
|
Provision for income
taxes
|
(88)
|
|
|
(3)
|
|
|
(17)
|
|
|
(108)
|
|
|
Net earnings
(loss)
|
$
|
(255)
|
|
|
$
|
5
|
|
|
$
|
427
|
|
|
$
|
177
|
|
|
|
|
|
Twelve Months
Ended December 31, 2015
|
|
2015
Reported
|
|
Restructuring
Charges (a)
|
|
Impairment
Charge (b)
|
|
2015
Adjusted
|
|
Revenues
|
$
|
1,223
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,223
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$
|
(241)
|
|
|
$
|
36
|
|
|
$
|
484
|
|
|
$
|
279
|
|
|
Benefit (provision)
for income taxes
|
89
|
|
|
(15)
|
|
|
(187)
|
|
|
(113)
|
|
|
Equity in earnings of
investee companies, net of tax
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
Net earnings
(loss)
|
$
|
(151)
|
|
|
$
|
21
|
|
|
$
|
297
|
|
|
$
|
167
|
|
|
|
|
(a)
|
Primarily reflects
severance costs and costs associated with exiting contractual
obligations.
|
(b)
|
Reflects noncash
impairment charges to reduce the carrying value of goodwill and FCC
licenses for 2016 and FCC licenses for 2015 to their fair
value.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cbs-corporation-reports-2016-fourth-quarter-and-full-year-results-300408110.html
SOURCE CBS Corporation