Spreadsheet: jeff_dasovich__14064__Timewar_Jeff Calculations
Sheet: Income Statement Growth

 |  |  | EXHIBIT 1
 |  | Comparison of Business Units to Consolidated Results
 |  |  | TIME
 |  |  | For Years Ended December 31
 | 1984 | 1985 | 1986 | 1987 | 1988
MAGAZINES
Revenues
Operating income
Identifiable assets
[NAME] (operating income/identifiable assets)
ROS (operating income/revenues)
BOOKS
Revenues
Operating income
Identifiable assets
[NAME] (operating income/identifiable assets)
ROS (operating income/revenues)
PROGRAMMING
Revenues
Operating income
Identifiable assets
[NAME] (operating income/identifiable assets)
ROS (operating income/revenues)
CABLE TELEVISION
Revenues
Operating income
Identifiable assets
[NAME] (operating income/identifiable assets)
ROS (operating income/revenues)
CONSOLIDATED
Revenues
Operating income
Identifiable assets
[NAME] (operating income/identifiable assets)
ROS (operating income/revenues)
 |  |  | EXHIBIT 1 (cont'd)
 |  |  | Year-on-year Growth
 |  | Warner Communication's Income Statement (in millions)
 |  | For Years Ended December 31
 | 1984 | 1985 | 1986 | 1987 | 1988 |  | 1984 | 1985 | 1986 | 1987 | 1988
FILMED ENTERTAINMENT
Revenues | 1090 | 1201 | 1251 | 1355 | 1571
Operating income | 150 | 160 | 172 | 176 | 207
Identifiable assets | 779 | 950 | 1077 | 1193 | 1536
[NAME] (operating income/identifiable assets) | 0.19 | 0.17 | 0.16 | 0.15 | 0.13
ROS (operating income/revenue) | 0.14 | 0.13 | 0.14 | 0.13 | 0.13
MUSIC
Revenues | 818 | 912 | 1139 | 1530 | 2040
Operating income | 90 | 112 | 151 | 213 | 319
Identifiable assets | 384 | 398 | 453 | 998 | 1290
[NAME] (operating income/identifiable assets) | 0.23 | 0.28 | 0.33 | 0.21 | 0.25
ROS (operating income/revenue) | 0.11 | 0.12 | 0.13 | 0.14 | 0.16
CABLE TV
Revenues | 363 | 296 | 326 | 387 | 456
Operating income | -106 | -9 | 16 | 42 | 72
Identifiable assets | 213 | 300 | 753 | 794 | 994
[NAME] (operating income/identifiable assets) | -0.5 | -0.03 | 0.02 | 0.05 | 0.07
ROS (operating income/revenue) | -0.29 | -0.03 | 0.05 | 0.11 | 0.16
PUBLISHING
Revenues | 115 | 122 | 133 | 130 | 139
Operating income | 11 | 14 | 12 | 11 | 11
Identifiable assets | 27 | 50 | 55 | 59 | 98
[NAME] (operating income/identifiable assets) | 0.41 | 0.28 | 0.22 | 0.19 | 0.11
ROS (operating income/revenue) | 0.1 | 0.11 | 0.09 | 0.08 | 0.08
LORIMAR(a)
Revenues | 334 | 466 | 571 | 637 | 525
Operating income | 150 | 67 | 36 | -39 | -362
ROS (operating income/revenue) | 0.45 | 0.14 | 0.06 | -0.06 | -0.69
CONSOLIDATED(b)
Revenues | 2023 | 2235 | 2848 | 3404 | 4206
Cost of revenues | 1438 | 1599 | 2043 | 2413 | 2926
Division selling, G&A, interest, other | 516 | 235 | 508 | 572 | 740
Income before taxes | 69 | 401 | 297 | 419 | 540
Provision for income taxes | 56 | 207 | 67 | 91 | 118
Income from continuing operations | 13 | 194 | 230 | 328 | 422
Extraordinary items, net | -599 |  | 22
Net income | -586 | 194 | 252 | 328 | 422
 |  |  | EXHIBIT 1 (cont'd)
 |  |  | Year-on-year Growth
 |  | Time's Income Statement (in millions)
 |  |  | For Years Ended December 31
 | 1984 | 1985 | 1986 | 1987 | 1988
MAGAZINES
Revenues | 1321 | 1482 | 1576 | 1621 | 1752
Operating income | 188 | 176 | 162 | 283 | 287
Identifiable assets | 212 | 582 | 663 | 694 | 923
[NAME] (operating income/identifiable assets) | 0.89 | 0.3 | 0.24 | 0.41 | 0.31
ROS (operating income/revenues) | 0.14 | 0.12 | 0.1 | 0.17 | 0.16
BOOKS
Revenues | 491 | 552 | 663 | 954 | 891
Operating income | 65 | 85 | 73 | 88 | 104
Identifiable assets | 278 | 468 | 1151 | 1156 | 1225
[NAME] (operating income/identifiable assets) | 0.23 | 0.18 | 0.06 | 0.08 | 0.08
ROS (operating income/revenues) | 0.13 | 0.15 | 0.11 | 0.09 | 0.12
PROGRAMMING
Revenues | 745 | 786 | 886 | 904 | 1052
Operating income | 118 | 121 | 111 | 125 | 116
Identifiable assets | 481 | 665 | 824 | 1054 | 1095
[NAME] (operating income/identifiable assets) | 0.25 | 0.18 | 0.13 | 0.12 | 0.11
ROS (operating income/revenues) | 0.16 | 0.15 | 0.13 | 0.14 | 0.11
CABLE TELEVISION
Revenues | 510 | 584 | 637 | 714 | 812
Operating income | 83 | 97 | 118 | 150 | 176
Identifiable assets | 976 | 1024 | 1107 | 1195 | 1505
[NAME] (operating income/identifiable assets) | 0.09 | 0.09 | 0.11 | 0.13 | 0.12
ROS (operating income/revenues) | 0.16 | 0.17 | 0.19 | 0.21 | 0.22
CONSOLIDATED
Revenues | 3067 | 3404 | 3762 | 4193 | 4507
Operating income | 421 | 387 | 626 | 517 | 529
Identifiable assets | 2615 | 3072 | 4230 | 4424 | 4913
[NAME] (operating income/identifiable assets) | 0.16 | 0.13 | 0.15 | 0.12 | 0.11
ROS (operating income/revenues) | 0.14 | 0.11 | 0.17 | 0.12 | 0.12