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x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
(State or other jurisdiction of
incorporation or organization)
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04-2949533
(I.R.S. Employer Identification No.)
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51 W. 52
nd
Street, New York, New York
(Address of principal executive offices)
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10019
(Zip Code)
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Large accelerated filer
x
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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Page
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Consolidated Statements of Operations (Unaudited) for the
Three and Six Months Ended June 30, 2015 and June 30, 2014 |
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Consolidated Statements of Comprehensive Income (Unaudited) for the
Three and Six Months Ended June 30, 2015 and June 30, 2014 |
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Consolidated Balance Sheets (Unaudited) at June 30, 2015
and December 31, 2014 |
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Consolidated Statements of Cash Flows (Unaudited) for the
Six Months Ended June 30, 2015 and June 30, 2014 |
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Management’s Discussion and Analysis of Results of Operations and Financial Condition.
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Item 1A.
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Risk Factors.
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Item 1.
|
Financial Statements.
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Three Months Ended
|
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Six Months Ended
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||||||||||||
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June 30,
|
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June 30,
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||||||||||||
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2015
|
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2014
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|
2015
|
|
2014
|
||||||||
Revenues
|
$
|
3,219
|
|
|
$
|
3,188
|
|
|
$
|
6,719
|
|
|
$
|
6,758
|
|
Expenses:
|
|
|
|
|
|
|
|
|
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||||||
Operating
|
1,907
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|
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1,798
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4,049
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|
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3,919
|
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||||
Selling, general and administrative
|
605
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|
|
589
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|
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1,193
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|
|
1,176
|
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||||
Restructuring charges (Note 11)
|
55
|
|
|
—
|
|
|
55
|
|
|
—
|
|
||||
Depreciation and amortization
|
66
|
|
|
71
|
|
|
134
|
|
|
142
|
|
||||
Total expenses
|
2,633
|
|
|
2,458
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|
|
5,431
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|
|
5,237
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||||
Operating income
|
586
|
|
|
730
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|
|
1,288
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|
|
1,521
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||||
Interest expense
|
(94
|
)
|
|
(94
|
)
|
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(187
|
)
|
|
(187
|
)
|
||||
Interest income
|
7
|
|
|
3
|
|
|
12
|
|
|
6
|
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||||
Other items, net
|
4
|
|
|
6
|
|
|
—
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|
|
11
|
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||||
Earnings from continuing operations before income taxes
and equity in loss of investee companies
|
503
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|
|
645
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|
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1,113
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1,351
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||||
Provision for income taxes
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(165
|
)
|
|
(217
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)
|
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(368
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)
|
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(451
|
)
|
||||
Equity in loss of investee companies, net of tax
|
(6
|
)
|
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(10
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)
|
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(19
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)
|
|
(20
|
)
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||||
Net earnings from continuing operations
|
332
|
|
|
418
|
|
|
726
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|
|
880
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||||
Net earnings from discontinued operations, net of tax (Note 3)
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—
|
|
|
21
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|
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—
|
|
|
27
|
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||||
Net earnings
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$
|
332
|
|
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$
|
439
|
|
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$
|
726
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$
|
907
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|
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|
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||||||||
Basic net earnings per common share:
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||||||
Net earnings from continuing operations
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$
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.68
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$
|
.73
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|
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$
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1.47
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$
|
1.52
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Net earnings from discontinued operations
|
$
|
—
|
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$
|
.04
|
|
|
$
|
—
|
|
|
$
|
.05
|
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Net earnings
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$
|
.68
|
|
|
$
|
.77
|
|
|
$
|
1.47
|
|
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$
|
1.57
|
|
|
|
|
|
|
|
|
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||||||||
Diluted net earnings per common share:
|
|
|
|
|
|
|
|
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||||||
Net earnings from continuing operations
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$
|
.67
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|
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$
|
.72
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|
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$
|
1.45
|
|
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$
|
1.49
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Net earnings from discontinued operations
|
$
|
—
|
|
|
$
|
.04
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|
|
$
|
—
|
|
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$
|
.05
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Net earnings
|
$
|
.67
|
|
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$
|
.76
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$
|
1.45
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$
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1.54
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||||||||
Weighted average number of common shares outstanding:
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|
|
|
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Basic
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490
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570
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|
494
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|
|
578
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||||
Diluted
|
495
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|
581
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|
500
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|
|
590
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||||||||
Dividends per common share
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$
|
.15
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$
|
.12
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$
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.30
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|
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$
|
.24
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Three Months Ended,
|
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Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Net earnings
|
$
|
332
|
|
|
$
|
439
|
|
|
$
|
726
|
|
|
$
|
907
|
|
Other comprehensive income from continuing operations,
net of tax:
|
|
|
|
|
|
|
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||||||||
Cumulative translation adjustments
|
2
|
|
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(1
|
)
|
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(2
|
)
|
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(7
|
)
|
||||
Amortization of net actuarial loss
|
9
|
|
|
7
|
|
|
18
|
|
|
14
|
|
||||
Changes in fair value of cash flow hedges
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Other comprehensive income from continuing operations, net of tax
|
11
|
|
|
6
|
|
|
17
|
|
|
7
|
|
||||
Other comprehensive income from discontinued operations, net of tax
|
—
|
|
|
14
|
|
|
—
|
|
|
15
|
|
||||
Total other comprehensive income, net of tax
|
11
|
|
|
20
|
|
|
17
|
|
|
22
|
|
||||
Total comprehensive income
|
$
|
343
|
|
|
$
|
459
|
|
|
$
|
743
|
|
|
$
|
929
|
|
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At
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At
|
||||||||
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June 30, 2015
|
|
December 31, 2014
|
||||||||
ASSETS
|
|
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|
|
|
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|
||||
Current Assets:
|
|
|
|
|
|
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|
||||
Cash and cash equivalents
|
|
$
|
320
|
|
|
|
|
$
|
428
|
|
|
Receivables, less allowances of $60 (2015) and $50 (2014)
|
|
3,124
|
|
|
|
|
3,459
|
|
|
||
Programming and other inventory (Note 4)
|
|
1,156
|
|
|
|
|
922
|
|
|
||
Deferred income tax assets, net
|
|
119
|
|
|
|
|
104
|
|
|
||
Prepaid income taxes
|
|
62
|
|
|
|
|
161
|
|
|
||
Prepaid expenses
|
|
123
|
|
|
|
|
129
|
|
|
||
Other current assets
|
|
328
|
|
|
|
|
386
|
|
|
||
Total current assets
|
|
5,232
|
|
|
|
|
5,589
|
|
|
||
Property and equipment
|
|
3,190
|
|
|
|
|
3,164
|
|
|
||
Less accumulated depreciation and amortization
|
|
1,814
|
|
|
|
|
1,731
|
|
|
||
Net property and equipment
|
|
1,376
|
|
|
|
|
1,433
|
|
|
||
Programming and other inventory (Note 4)
|
|
1,805
|
|
|
|
|
1,817
|
|
|
||
Goodwill
|
|
6,663
|
|
|
|
|
6,698
|
|
|
||
Intangible assets
|
|
5,997
|
|
|
|
|
6,008
|
|
|
||
Other assets
|
|
2,559
|
|
|
|
|
2,488
|
|
|
||
Assets of discontinued operations
|
|
30
|
|
|
|
|
39
|
|
|
||
Total Assets
|
|
$
|
23,662
|
|
|
|
|
$
|
24,072
|
|
|
|
|
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS
’
EQUITY
|
|
|
|
|
|
|
|
|
|
||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
||
Accounts payable
|
|
$
|
198
|
|
|
|
|
$
|
302
|
|
|
Accrued compensation
|
|
209
|
|
|
|
|
333
|
|
|
||
Participants
’
share and royalties payable
|
|
975
|
|
|
|
|
999
|
|
|
||
Program rights
|
|
406
|
|
|
|
|
404
|
|
|
||
Deferred revenues
|
|
136
|
|
|
|
|
206
|
|
|
||
Commercial paper (Note 6)
|
|
394
|
|
|
|
|
616
|
|
|
||
Current portion of long-term debt (Note 6)
|
|
20
|
|
|
|
|
20
|
|
|
||
Accrued expenses and other current liabilities
|
|
1,093
|
|
|
|
|
1,127
|
|
|
||
Current liabilities of discontinued operations
|
|
36
|
|
|
|
|
26
|
|
|
||
Total current liabilities
|
|
3,467
|
|
|
|
|
4,033
|
|
|
||
Long-term debt (Note 6)
|
|
7,686
|
|
|
|
|
6,510
|
|
|
||
Pension and postretirement benefit obligations
|
|
1,515
|
|
|
|
|
1,564
|
|
|
||
Deferred income tax liabilities, net
|
|
1,611
|
|
|
|
|
1,530
|
|
|
||
Other liabilities
|
|
3,332
|
|
|
|
|
3,347
|
|
|
||
Liabilities of discontinued operations (Note 3)
|
|
88
|
|
|
|
|
118
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||
Commitments and contingencies (Note 10)
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||
Stockholders
’
Equity:
|
|
|
|
|
|
|
|
|
|
||
Class A Common stock, par value $.001 per share; 375 shares authorized;
38 (2015 and 2014) shares issued |
|
—
|
|
|
|
|
—
|
|
|
||
Class B Common stock, par value $.001 per share; 5,000 shares authorized;
825 (2015) and 818 (2014) shares issued |
|
1
|
|
|
|
|
1
|
|
|
||
Additional paid-in capital
|
|
44,090
|
|
|
|
|
44,041
|
|
|
||
Accumulated deficit
|
|
(21,205
|
)
|
|
|
|
(21,931
|
)
|
|
||
Accumulated other comprehensive loss (Note 8)
|
|
(718
|
)
|
|
|
|
(735
|
)
|
|
||
|
|
22,168
|
|
|
|
|
21,376
|
|
|
||
Less treasury stock, at cost; 379 (2015) and 349 (2014) Class B shares
|
|
16,205
|
|
|
|
|
14,406
|
|
|
||
Total Stockholders
’
Equity
|
|
5,963
|
|
|
|
|
6,970
|
|
|
||
Total Liabilities and Stockholders
’
Equity
|
|
$
|
23,662
|
|
|
|
|
$
|
24,072
|
|
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
|
2015
|
|
2014
|
||||
Operating Activities:
|
|
|
|
||||
Net earnings
|
$
|
726
|
|
|
$
|
907
|
|
Less: Net earnings from discontinued operations
|
—
|
|
|
27
|
|
||
Net earnings from continuing operations
|
726
|
|
|
880
|
|
||
Adjustments to reconcile net earnings from continuing operations to net cash flow
provided by operating activities from continuing operations:
|
|
|
|
|
|
||
Depreciation and amortization
|
134
|
|
|
142
|
|
||
Stock-based compensation
|
89
|
|
|
84
|
|
||
Equity in loss of investee companies, net of tax and distributions
|
22
|
|
|
28
|
|
||
Change in assets and liabilities, net of investing and financing activities
|
(90
|
)
|
|
(541
|
)
|
||
Net cash flow provided by operating activities from continuing operations
|
881
|
|
|
593
|
|
||
Net cash flow (used for) provided by operating activities from discontinued operations
|
(18
|
)
|
|
31
|
|
||
Net cash flow provided by operating activities
|
863
|
|
|
624
|
|
||
Investing Activities:
|
|
|
|
|
|
||
Capital expenditures
|
(46
|
)
|
|
(69
|
)
|
||
Investments in and advances to investee companies
|
(55
|
)
|
|
(64
|
)
|
||
Proceeds from sale of investments
|
—
|
|
|
3
|
|
||
Proceeds from dispositions
|
59
|
|
|
5
|
|
||
Other investing activities
|
3
|
|
|
(1
|
)
|
||
Net cash flow used for investing activities from continuing operations
|
(39
|
)
|
|
(126
|
)
|
||
Net cash flow used for investing activities from discontinued operations
|
(3
|
)
|
|
(23
|
)
|
||
Net cash flow used for investing activities
|
(42
|
)
|
|
(149
|
)
|
||
Financing Activities:
|
|
|
|
|
|
||
Repayments of short-term debt borrowings, net
|
(222
|
)
|
|
(94
|
)
|
||
Proceeds from issuance of notes, net
|
1,178
|
|
|
—
|
|
||
Repayments of notes
|
—
|
|
|
(99
|
)
|
||
Payment of capital lease obligations
|
(8
|
)
|
|
(8
|
)
|
||
Dividends
|
(155
|
)
|
|
(145
|
)
|
||
Purchase of Company common stock
|
(1,832
|
)
|
|
(2,468
|
)
|
||
Payment of payroll taxes in lieu of issuing shares for stock-based compensation
|
(95
|
)
|
|
(145
|
)
|
||
Proceeds from exercise of stock options
|
123
|
|
|
192
|
|
||
Excess tax benefit from stock-based compensation
|
82
|
|
|
204
|
|
||
Net cash flow used for financing activities from continuing operations
|
(929
|
)
|
|
(2,563
|
)
|
||
Net cash flow provided by financing activities from discontinued operations
|
—
|
|
|
2,175
|
|
||
Net cash flow used for financing activities
|
(929
|
)
|
|
(388
|
)
|
||
Net (decrease) increase in cash and cash equivalents
|
(108
|
)
|
|
87
|
|
||
Cash and cash equivalents at beginning of period
(includes $29 (2014) of discontinued operations cash)
|
428
|
|
|
397
|
|
||
Cash and cash equivalents at end of period
(includes $223 (2014) of discontinued operations cash)
|
$
|
320
|
|
|
$
|
484
|
|
Supplemental disclosure of cash flow information
|
|
|
|
|
|
||
Cash paid for interest from continuing operations
|
$
|
163
|
|
|
$
|
181
|
|
Cash paid for income taxes from continuing operations
|
$
|
125
|
|
|
$
|
212
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
June 30,
|
|
June 30,
|
||||||||
(in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||
Weighted average shares for basic EPS
|
490
|
|
|
570
|
|
|
494
|
|
|
578
|
|
Dilutive effect of shares issuable under stock-based
compensation plans
|
5
|
|
|
11
|
|
|
6
|
|
|
12
|
|
Weighted average shares for diluted EPS
|
495
|
|
|
581
|
|
|
500
|
|
|
590
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
RSUs and PSUs
|
$
|
35
|
|
|
$
|
35
|
|
|
$
|
73
|
|
|
$
|
69
|
|
Stock options and equivalents
|
8
|
|
|
9
|
|
|
16
|
|
|
15
|
|
||||
Stock-based compensation expense, before income taxes
|
43
|
|
|
44
|
|
|
89
|
|
|
84
|
|
||||
Related tax benefit
|
(16
|
)
|
|
(17
|
)
|
|
(34
|
)
|
|
(33
|
)
|
||||
Stock-based compensation expense, net of tax benefit
|
$
|
27
|
|
|
$
|
27
|
|
|
$
|
55
|
|
|
$
|
51
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||
|
June 30, 2014
|
|
June 30, 2014
|
||||
Revenues from discontinued operations
|
$
|
334
|
|
|
$
|
622
|
|
Earnings from discontinued operations
|
$
|
40
|
|
|
$
|
54
|
|
Income tax provision
|
(14
|
)
|
|
(22
|
)
|
||
Net earnings from discontinued operations, net of tax
|
26
|
|
|
32
|
|
||
Less: Net earnings from discontinued operations attributable
to noncontrolling interest, net of tax
|
5
|
|
|
5
|
|
||
Net earnings from discontinued operations attributable to CBS Corp.
|
$
|
21
|
|
|
$
|
27
|
|
|
At
|
|
At
|
||||||||
|
June 30, 2015
|
|
December 31, 2014
|
||||||||
Program rights
|
|
$
|
1,632
|
|
|
|
|
$
|
1,471
|
|
|
Television programming:
|
|
|
|
|
|
|
|
||||
Released (including acquired libraries)
|
|
1,051
|
|
|
|
|
983
|
|
|
||
In process and other
|
|
153
|
|
|
|
|
179
|
|
|
||
Theatrical programming:
|
|
|
|
|
|
|
|
||||
Released
|
|
27
|
|
|
|
|
23
|
|
|
||
In process and other
|
|
46
|
|
|
|
|
36
|
|
|
||
Publishing, primarily finished goods
|
|
52
|
|
|
|
|
47
|
|
|
||
Total programming and other inventory
|
|
2,961
|
|
|
|
|
2,739
|
|
|
||
Less current portion
|
|
1,156
|
|
|
|
|
922
|
|
|
||
Total noncurrent programming and other inventory
|
|
$
|
1,805
|
|
|
|
|
$
|
1,817
|
|
|
|
At
|
|
At
|
||||||||
|
June 30, 2015
|
|
December 31, 2014
|
||||||||
Receivables
|
|
$
|
86
|
|
|
|
|
$
|
107
|
|
|
Other assets (Receivables, noncurrent)
|
|
76
|
|
|
|
|
76
|
|
|
||
Total amounts due from Viacom Inc
.
|
|
$
|
162
|
|
|
|
|
$
|
183
|
|
|
|
At
|
|
At
|
||||||||
|
June 30, 2015
|
|
December 31, 2014
|
||||||||
Commercial paper
|
|
$
|
394
|
|
|
|
|
$
|
616
|
|
|
Senior debt (1.95% - 7.875% due 2016 - 2045)
(a)
|
|
7,615
|
|
|
|
|
6,433
|
|
|
||
Obligations under capital leases
|
|
91
|
|
|
|
|
97
|
|
|
||
Total debt
|
|
8,100
|
|
|
|
|
7,146
|
|
|
||
Less commercial paper
|
|
394
|
|
|
|
|
616
|
|
|
||
Less current portion of long-term debt
|
|
20
|
|
|
|
|
20
|
|
|
||
Total long-term debt, net of current portion
|
|
$
|
7,686
|
|
|
|
|
$
|
6,510
|
|
|
|
Pension Benefits
|
|
Postretirement Benefits
|
||||||||||||
Three Months Ended June 30,
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Components of net periodic cost:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
8
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
53
|
|
|
59
|
|
|
4
|
|
|
6
|
|
||||
Expected return on plan assets
|
(66
|
)
|
|
(66
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of actuarial loss (gain)
(a)
|
20
|
|
|
16
|
|
|
(5
|
)
|
|
(5
|
)
|
||||
Net periodic cost
|
$
|
15
|
|
|
$
|
17
|
|
|
$
|
(1
|
)
|
|
$
|
1
|
|
|
Pension Benefits
|
|
Postretirement Benefits
|
||||||||||||
Six Months Ended June 30,
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Components of net periodic cost:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
16
|
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
105
|
|
|
118
|
|
|
9
|
|
|
12
|
|
||||
Expected return on plan assets
|
(131
|
)
|
|
(132
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of actuarial loss (gain)
(a)
|
40
|
|
|
32
|
|
|
(10
|
)
|
|
(10
|
)
|
||||
Net periodic cost
|
$
|
30
|
|
|
$
|
34
|
|
|
$
|
(1
|
)
|
|
$
|
2
|
|
|
Cumulative
Translation
Adjustments
|
|
Net Actuarial
Gain (Loss)
and Prior
Service Cost
|
|
Change in Fair Value of Cash Flow Hedges
|
|
Accumulated
Other
Comprehensive
Loss
|
||||||||
At December 31, 2014
|
$
|
158
|
|
|
$
|
(892
|
)
|
|
$
|
(1
|
)
|
|
$
|
(735
|
)
|
Other comprehensive income (loss) before reclassifications
|
(2
|
)
|
|
—
|
|
|
(1
|
)
|
|
(3
|
)
|
||||
Reclassifications to net earnings
|
—
|
|
|
18
|
|
(a)
|
2
|
|
(b)
|
20
|
|
||||
Net other comprehensive income (loss)
|
(2
|
)
|
|
18
|
|
|
1
|
|
|
17
|
|
||||
At June 30, 2015
|
$
|
156
|
|
|
$
|
(874
|
)
|
|
$
|
—
|
|
|
$
|
(718
|
)
|
|
Continuing Operations
|
|
Discontinued
Operations
|
|
|
||||||||||||||
|
Cumulative
Translation
Adjustments
|
|
Net Actuarial Gain (Loss) and Prior Service Cost
|
|
Unrealized Gain on Securities
|
|
Other Comprehensive Income (Loss)
|
|
Accumulated
Other
Comprehensive
Loss
|
||||||||||
At December 31, 2013
|
$
|
166
|
|
|
$
|
(729
|
)
|
|
$
|
3
|
|
|
$
|
15
|
|
|
$
|
(545
|
)
|
Other comprehensive income (loss) before reclassifications
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
15
|
|
|
8
|
|
|||||
Reclassifications to net earnings
|
—
|
|
|
14
|
|
(a)
|
—
|
|
|
—
|
|
|
14
|
|
|||||
Net other comprehensive
income (loss)
|
(7
|
)
|
|
14
|
|
|
—
|
|
|
15
|
|
|
22
|
|
|||||
At June 30, 2014
|
$
|
159
|
|
|
$
|
(715
|
)
|
|
$
|
3
|
|
|
$
|
30
|
|
|
$
|
(523
|
)
|
(a)
|
Reflects amortization of net actuarial losses. See Note
7
.
|
(b)
|
Reflects loss recognized on designated foreign exchange contracts. See Note
12
.
|
|
Balance at
|
|
2015
|
|
2015
|
|
Balance at
|
||||||||||||||||
|
December 31, 2014
|
|
Charges
|
|
Settlements
|
|
June 30, 2015
|
||||||||||||||||
Entertainment
|
|
$
|
6
|
|
|
|
|
$
|
12
|
|
|
|
|
$
|
(4
|
)
|
|
|
|
$
|
14
|
|
|
Local Broadcasting
|
|
10
|
|
|
|
|
43
|
|
|
|
|
(11
|
)
|
|
|
|
42
|
|
|
||||
Corporate
|
|
2
|
|
|
|
|
—
|
|
|
|
|
(1
|
)
|
|
|
|
1
|
|
|
||||
Total
|
|
$
|
18
|
|
|
|
|
$
|
55
|
|
|
|
|
$
|
(16
|
)
|
|
|
|
$
|
57
|
|
|
|
|
|
2014
|
|
2014
|
|
Balance at
|
||||||||||||||
|
|
|
Charges
|
|
Settlements
|
|
December 31, 2014
|
||||||||||||||
Entertainment
|
|
|
|
|
|
$
|
8
|
|
|
|
|
$
|
(2
|
)
|
|
|
|
$
|
6
|
|
|
Publishing
|
|
|
|
|
|
1
|
|
|
|
|
(1
|
)
|
|
|
|
—
|
|
|
|||
Local Broadcasting
|
|
|
|
|
|
14
|
|
|
|
|
(4
|
)
|
|
|
|
10
|
|
|
|||
Corporate
|
|
|
|
|
|
3
|
|
|
|
|
(1
|
)
|
|
|
|
2
|
|
|
|||
Total
|
|
|
|
|
|
$
|
26
|
|
|
|
|
$
|
(8
|
)
|
|
|
|
$
|
18
|
|
|
|
|
Three Months Ended
|
|
|
||||||
|
|
June 30,
|
|
|
||||||
|
|
2015
|
|
2014
|
|
Financial Statement Account
|
||||
Non-designated foreign exchange contracts
|
|
$
|
(7
|
)
|
|
$
|
(2
|
)
|
|
Other items, net
|
|
|
|
|
|
|
|
||||
Designated interest rate swaps
|
|
$
|
3
|
|
|
$
|
—
|
|
|
Interest expense
|
|
|
Six Months Ended
|
|
|
||||||
|
|
June 30,
|
|
|
||||||
|
|
2015
|
|
2014
|
|
Financial Statement Account
|
||||
Foreign exchange contracts:
|
|
|
|
|
|
|
||||
Designated hedging instruments:
|
|
|
|
|
|
|
||||
Recognized in OCI
|
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
Change in fair value of cash flow hedges
|
Reclassified from accumulated OCI
|
|
$
|
(2
|
)
|
|
$
|
(1
|
)
|
|
Programming costs
|
|
|
|
|
|
|
|
||||
Non-designated hedging instruments
|
|
$
|
6
|
|
|
$
|
(2
|
)
|
|
Other items, net
|
|
|
|
|
|
|
|
||||
Designated interest rate swaps
|
|
$
|
5
|
|
|
$
|
—
|
|
|
Interest expense
|
At June 30, 2015
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Investments
|
$
|
77
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
77
|
|
Interest rate swaps
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||
Foreign exchange contracts
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
||||
Total Assets
|
$
|
77
|
|
|
$
|
11
|
|
|
$
|
—
|
|
|
$
|
88
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Deferred compensation
|
$
|
—
|
|
|
$
|
314
|
|
|
$
|
—
|
|
|
$
|
314
|
|
Foreign exchange contracts
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||
Total Liabilities
|
$
|
—
|
|
|
$
|
317
|
|
|
$
|
—
|
|
|
$
|
317
|
|
At December 31, 2014
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Investments
|
$
|
80
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
80
|
|
Foreign exchange contracts
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
||||
Total Assets
|
$
|
80
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
86
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Deferred compensation
|
$
|
—
|
|
|
$
|
307
|
|
|
$
|
—
|
|
|
$
|
307
|
|
Foreign exchange contracts
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||
Total Liabilities
|
$
|
—
|
|
|
$
|
309
|
|
|
$
|
—
|
|
|
$
|
309
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Entertainment
|
$
|
1,785
|
|
|
$
|
1,835
|
|
|
$
|
4,046
|
|
|
$
|
4,138
|
|
Cable Networks
|
615
|
|
|
516
|
|
|
1,154
|
|
|
1,053
|
|
||||
Publishing
|
199
|
|
|
211
|
|
|
344
|
|
|
364
|
|
||||
Local Broadcasting
|
654
|
|
|
665
|
|
|
1,250
|
|
|
1,291
|
|
||||
Corporate/Eliminations
|
(34
|
)
|
|
(39
|
)
|
|
(75
|
)
|
|
(88
|
)
|
||||
Total Revenues
|
$
|
3,219
|
|
|
$
|
3,188
|
|
|
$
|
6,719
|
|
|
$
|
6,758
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Intercompany Revenues:
|
|
|
|
|
|
|
|
||||||||
Entertainment
|
$
|
34
|
|
|
$
|
39
|
|
|
$
|
74
|
|
|
$
|
85
|
|
Local Broadcasting
|
3
|
|
|
5
|
|
|
6
|
|
|
8
|
|
||||
Total Intercompany Revenues
|
$
|
37
|
|
|
$
|
44
|
|
|
$
|
80
|
|
|
$
|
93
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Segment Operating Income (Loss):
|
|
|
|
|
|
|
|
||||||||
Entertainment
|
$
|
262
|
|
|
$
|
341
|
|
|
$
|
608
|
|
|
$
|
761
|
|
Cable Networks
|
220
|
|
|
213
|
|
|
471
|
|
|
467
|
|
||||
Publishing
|
25
|
|
|
23
|
|
|
37
|
|
|
34
|
|
||||
Local Broadcasting
|
198
|
|
|
215
|
|
|
359
|
|
|
394
|
|
||||
Corporate
|
(64
|
)
|
|
(62
|
)
|
|
(132
|
)
|
|
(135
|
)
|
||||
Total Segment Operating Income
|
641
|
|
|
730
|
|
|
1,343
|
|
|
1,521
|
|
||||
Restructuring charges
|
(55
|
)
|
|
—
|
|
|
(55
|
)
|
|
—
|
|
||||
Operating income
|
586
|
|
|
730
|
|
|
1,288
|
|
|
1,521
|
|
||||
Interest expense
|
(94
|
)
|
|
(94
|
)
|
|
(187
|
)
|
|
(187
|
)
|
||||
Interest income
|
7
|
|
|
3
|
|
|
12
|
|
|
6
|
|
||||
Other items, net
|
4
|
|
|
6
|
|
|
—
|
|
|
11
|
|
||||
Earnings from continuing operations before income taxes
and equity in loss of investee companies
|
503
|
|
|
645
|
|
|
1,113
|
|
|
1,351
|
|
||||
Provision for income taxes
|
(165
|
)
|
|
(217
|
)
|
|
(368
|
)
|
|
(451
|
)
|
||||
Equity in loss of investee companies, net of tax
|
(6
|
)
|
|
(10
|
)
|
|
(19
|
)
|
|
(20
|
)
|
||||
Net earnings from continuing operations
|
332
|
|
|
418
|
|
|
726
|
|
|
880
|
|
||||
Net earnings from discontinued operations, net of tax
|
—
|
|
|
21
|
|
|
—
|
|
|
27
|
|
||||
Net earnings
|
$
|
332
|
|
|
$
|
439
|
|
|
$
|
726
|
|
|
$
|
907
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Depreciation and Amortization:
|
|
|
|
|
|
|
|
||||||||
Entertainment
|
$
|
32
|
|
|
$
|
35
|
|
|
$
|
64
|
|
|
$
|
72
|
|
Cable Networks
|
6
|
|
|
6
|
|
|
12
|
|
|
11
|
|
||||
Publishing
|
2
|
|
|
1
|
|
|
3
|
|
|
3
|
|
||||
Local Broadcasting
|
19
|
|
|
23
|
|
|
40
|
|
|
44
|
|
||||
Corporate
|
7
|
|
|
6
|
|
|
15
|
|
|
12
|
|
||||
Total Depreciation and Amortization
|
$
|
66
|
|
|
$
|
71
|
|
|
$
|
134
|
|
|
$
|
142
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Stock-based Compensation:
|
|
|
|
|
|
|
|
||||||||
Entertainment
|
$
|
16
|
|
|
$
|
15
|
|
|
$
|
32
|
|
|
$
|
29
|
|
Cable Networks
|
2
|
|
|
3
|
|
|
5
|
|
|
5
|
|
||||
Publishing
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
||||
Local Broadcasting
|
9
|
|
|
8
|
|
|
16
|
|
|
15
|
|
||||
Corporate
|
15
|
|
|
17
|
|
|
34
|
|
|
33
|
|
||||
Total Stock-based Compensation
|
$
|
43
|
|
|
$
|
44
|
|
|
$
|
89
|
|
|
$
|
84
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Capital Expenditures:
|
|
|
|
|
|
|
|
||||||||
Entertainment
|
$
|
13
|
|
|
$
|
20
|
|
|
$
|
21
|
|
|
$
|
37
|
|
Cable Networks
|
2
|
|
|
3
|
|
|
3
|
|
|
5
|
|
||||
Publishing
|
2
|
|
|
1
|
|
|
2
|
|
|
1
|
|
||||
Local Broadcasting
|
11
|
|
|
12
|
|
|
18
|
|
|
20
|
|
||||
Corporate
|
1
|
|
|
5
|
|
|
2
|
|
|
6
|
|
||||
Total Capital Expenditures
|
$
|
29
|
|
|
$
|
41
|
|
|
$
|
46
|
|
|
$
|
69
|
|
|
At
|
|
At
|
||||||||
|
June 30, 2015
|
|
December 31, 2014
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||
Entertainment
|
|
$
|
10,282
|
|
|
|
|
$
|
10,469
|
|
|
Cable Networks
|
|
2,260
|
|
|
|
|
2,113
|
|
|
||
Publishing
|
|
937
|
|
|
|
|
990
|
|
|
||
Local Broadcasting
|
|
9,520
|
|
|
|
|
9,585
|
|
|
||
Corporate
|
|
633
|
|
|
|
|
876
|
|
|
||
Discontinued operations
|
|
30
|
|
|
|
|
39
|
|
|
||
Total Assets
|
|
$
|
23,662
|
|
|
|
|
$
|
24,072
|
|
|
|
Statement of Operations
|
||||||||||||||||||
|
For the Three Months Ended June 30, 2015
|
||||||||||||||||||
|
CBS Corp.
|
|
CBS
Operations
Inc.
|
|
Non-
Guarantor
Affiliates
|
|
Eliminations
|
|
CBS Corp.
Consolidated
|
||||||||||
Revenues
|
$
|
34
|
|
|
$
|
3
|
|
|
$
|
3,182
|
|
|
$
|
—
|
|
|
$
|
3,219
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating
|
14
|
|
|
2
|
|
|
1,891
|
|
|
—
|
|
|
1,907
|
|
|||||
Selling, general and administrative
|
12
|
|
|
55
|
|
|
538
|
|
|
—
|
|
|
605
|
|
|||||
Restructuring charges
|
—
|
|
|
—
|
|
|
55
|
|
|
—
|
|
|
55
|
|
|||||
Depreciation and amortization
|
2
|
|
|
5
|
|
|
59
|
|
|
—
|
|
|
66
|
|
|||||
Total expenses
|
28
|
|
|
62
|
|
|
2,543
|
|
|
—
|
|
|
2,633
|
|
|||||
Operating income (loss)
|
6
|
|
|
(59
|
)
|
|
639
|
|
|
—
|
|
|
586
|
|
|||||
Interest (expense) income, net
|
(118
|
)
|
|
(99
|
)
|
|
130
|
|
|
—
|
|
|
(87
|
)
|
|||||
Other items, net
|
1
|
|
|
(11
|
)
|
|
14
|
|
|
—
|
|
|
4
|
|
|||||
Earnings (loss) before income taxes and equity in earnings (loss) of investee companies
|
(111
|
)
|
|
(169
|
)
|
|
783
|
|
|
—
|
|
|
503
|
|
|||||
Benefit (provision) for income taxes
|
36
|
|
|
55
|
|
|
(256
|
)
|
|
—
|
|
|
(165
|
)
|
|||||
Equity in earnings (loss) of investee companies,
net of tax
|
407
|
|
|
149
|
|
|
(6
|
)
|
|
(556
|
)
|
|
(6
|
)
|
|||||
Net earnings
|
$
|
332
|
|
|
$
|
35
|
|
|
$
|
521
|
|
|
$
|
(556
|
)
|
|
$
|
332
|
|
Total comprehensive income
|
$
|
343
|
|
|
$
|
34
|
|
|
$
|
542
|
|
|
$
|
(576
|
)
|
|
$
|
343
|
|
|
Statement of Operations
|
||||||||||||||||||
|
For the Six Months Ended June 30, 2015
|
||||||||||||||||||
|
CBS Corp.
|
|
CBS
Operations
Inc.
|
|
Non-
Guarantor
Affiliates
|
|
Eliminations
|
|
CBS Corp.
Consolidated
|
||||||||||
Revenues
|
$
|
65
|
|
|
$
|
6
|
|
|
$
|
6,648
|
|
|
$
|
—
|
|
|
$
|
6,719
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating
|
30
|
|
|
3
|
|
|
4,016
|
|
|
—
|
|
|
4,049
|
|
|||||
Selling, general and administrative
|
24
|
|
|
116
|
|
|
1,053
|
|
|
—
|
|
|
1,193
|
|
|||||
Restructuring charges
|
—
|
|
|
—
|
|
|
55
|
|
|
—
|
|
|
55
|
|
|||||
Depreciation and amortization
|
3
|
|
|
10
|
|
|
121
|
|
|
—
|
|
|
134
|
|
|||||
Total expenses
|
57
|
|
|
129
|
|
|
5,245
|
|
|
—
|
|
|
5,431
|
|
|||||
Operating income (loss)
|
8
|
|
|
(123
|
)
|
|
1,403
|
|
|
—
|
|
|
1,288
|
|
|||||
Interest (expense) income, net
|
(233
|
)
|
|
(197
|
)
|
|
255
|
|
|
—
|
|
|
(175
|
)
|
|||||
Earnings (loss) before income taxes and equity in earnings (loss) of investee companies
|
(225
|
)
|
|
(320
|
)
|
|
1,658
|
|
|
—
|
|
|
1,113
|
|
|||||
Benefit (provision) for income taxes
|
73
|
|
|
104
|
|
|
(545
|
)
|
|
—
|
|
|
(368
|
)
|
|||||
Equity in earnings (loss) of investee companies,
net of tax
|
878
|
|
|
464
|
|
|
(19
|
)
|
|
(1,342
|
)
|
|
(19
|
)
|
|||||
Net earnings
|
$
|
726
|
|
|
$
|
248
|
|
|
$
|
1,094
|
|
|
$
|
(1,342
|
)
|
|
$
|
726
|
|
Total comprehensive income
|
$
|
743
|
|
|
$
|
247
|
|
|
$
|
1,115
|
|
|
$
|
(1,362
|
)
|
|
$
|
743
|
|
|
Statement of Operations
|
||||||||||||||||||
|
For the Three Months Ended June 30, 2014
|
||||||||||||||||||
|
CBS Corp.
|
|
CBS
Operations
Inc.
|
|
Non-
Guarantor
Affiliates
|
|
Eliminations
|
|
CBS Corp.
Consolidated
|
||||||||||
Revenues
|
$
|
35
|
|
|
$
|
3
|
|
|
$
|
3,150
|
|
|
$
|
—
|
|
|
$
|
3,188
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating
|
15
|
|
|
2
|
|
|
1,781
|
|
|
—
|
|
|
1,798
|
|
|||||
Selling, general and administrative
|
17
|
|
|
50
|
|
|
522
|
|
|
—
|
|
|
589
|
|
|||||
Depreciation and amortization
|
2
|
|
|
3
|
|
|
66
|
|
|
—
|
|
|
71
|
|
|||||
Total expenses
|
34
|
|
|
55
|
|
|
2,369
|
|
|
—
|
|
|
2,458
|
|
|||||
Operating income (loss)
|
1
|
|
|
(52
|
)
|
|
781
|
|
|
—
|
|
|
730
|
|
|||||
Interest (expense) income, net
|
(115
|
)
|
|
(95
|
)
|
|
119
|
|
|
—
|
|
|
(91
|
)
|
|||||
Other items, net
|
1
|
|
|
(2
|
)
|
|
7
|
|
|
—
|
|
|
6
|
|
|||||
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of investee companies
|
(113
|
)
|
|
(149
|
)
|
|
907
|
|
|
—
|
|
|
645
|
|
|||||
Benefit (provision) for income taxes
|
39
|
|
|
51
|
|
|
(307
|
)
|
|
—
|
|
|
(217
|
)
|
|||||
Equity in earnings (loss) of investee companies,
net of tax
|
513
|
|
|
292
|
|
|
(10
|
)
|
|
(805
|
)
|
|
(10
|
)
|
|||||
Net earnings from continuing operations
|
439
|
|
|
194
|
|
|
590
|
|
|
(805
|
)
|
|
418
|
|
|||||
Net earnings from discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
21
|
|
|||||
Net earnings
|
$
|
439
|
|
|
$
|
194
|
|
|
$
|
611
|
|
|
$
|
(805
|
)
|
|
$
|
439
|
|
Total comprehensive income
|
$
|
459
|
|
|
$
|
191
|
|
|
$
|
609
|
|
|
$
|
(800
|
)
|
|
$
|
459
|
|
|
Statement of Operations
|
||||||||||||||||||
|
For the Six Months Ended June 30, 2014
|
||||||||||||||||||
|
CBS Corp.
|
|
CBS
Operations
Inc.
|
|
Non-
Guarantor
Affiliates
|
|
Eliminations
|
|
CBS Corp.
Consolidated
|
||||||||||
Revenues
|
$
|
68
|
|
|
$
|
6
|
|
|
$
|
6,684
|
|
|
$
|
—
|
|
|
$
|
6,758
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating
|
31
|
|
|
3
|
|
|
3,885
|
|
|
—
|
|
|
3,919
|
|
|||||
Selling, general and administrative
|
32
|
|
|
114
|
|
|
1,030
|
|
|
—
|
|
|
1,176
|
|
|||||
Depreciation and amortization
|
3
|
|
|
7
|
|
|
132
|
|
|
—
|
|
|
142
|
|
|||||
Total expenses
|
66
|
|
|
124
|
|
|
5,047
|
|
|
—
|
|
|
5,237
|
|
|||||
Operating income (loss)
|
2
|
|
|
(118
|
)
|
|
1,637
|
|
|
—
|
|
|
1,521
|
|
|||||
Interest (expense) income, net
|
(229
|
)
|
|
(188
|
)
|
|
236
|
|
|
—
|
|
|
(181
|
)
|
|||||
Other items, net
|
1
|
|
|
(2
|
)
|
|
12
|
|
|
—
|
|
|
11
|
|
|||||
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of investee companies
|
(226
|
)
|
|
(308
|
)
|
|
1,885
|
|
|
—
|
|
|
1,351
|
|
|||||
Benefit (provision) for income taxes
|
77
|
|
|
105
|
|
|
(633
|
)
|
|
—
|
|
|
(451
|
)
|
|||||
Equity in earnings (loss) of investee companies, net of tax
|
1,056
|
|
|
664
|
|
|
(20
|
)
|
|
(1,720
|
)
|
|
(20
|
)
|
|||||
Net earnings from continuing operations
|
907
|
|
|
461
|
|
|
1,232
|
|
|
(1,720
|
)
|
|
880
|
|
|||||
Net earnings (loss) from discontinued operations, net of tax
|
—
|
|
|
(1
|
)
|
|
28
|
|
|
—
|
|
|
27
|
|
|||||
Net earnings
|
$
|
907
|
|
|
$
|
460
|
|
|
$
|
1,260
|
|
|
$
|
(1,720
|
)
|
|
$
|
907
|
|
Total comprehensive income
|
$
|
929
|
|
|
$
|
456
|
|
|
$
|
1,255
|
|
|
$
|
(1,711
|
)
|
|
$
|
929
|
|
|
Balance Sheet
|
||||||||||||||||||
|
At June 30, 2015
|
||||||||||||||||||
|
CBS Corp.
|
|
CBS
Operations
Inc.
|
|
Non-
Guarantor
Affiliates
|
|
Eliminations
|
|
CBS Corp.
Consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
27
|
|
|
$
|
1
|
|
|
$
|
292
|
|
|
$
|
—
|
|
|
$
|
320
|
|
Receivables, net
|
24
|
|
|
2
|
|
|
3,098
|
|
|
—
|
|
|
3,124
|
|
|||||
Programming and other inventory
|
3
|
|
|
2
|
|
|
1,151
|
|
|
—
|
|
|
1,156
|
|
|||||
Prepaid expenses and other current assets
|
185
|
|
|
32
|
|
|
442
|
|
|
(27
|
)
|
|
632
|
|
|||||
Total current assets
|
239
|
|
|
37
|
|
|
4,983
|
|
|
(27
|
)
|
|
5,232
|
|
|||||
Property and equipment
|
51
|
|
|
163
|
|
|
2,976
|
|
|
—
|
|
|
3,190
|
|
|||||
Less accumulated depreciation and amortization
|
25
|
|
|
108
|
|
|
1,681
|
|
|
—
|
|
|
1,814
|
|
|||||
Net property and equipment
|
26
|
|
|
55
|
|
|
1,295
|
|
|
—
|
|
|
1,376
|
|
|||||
Programming and other inventory
|
6
|
|
|
7
|
|
|
1,792
|
|
|
—
|
|
|
1,805
|
|
|||||
Goodwill
|
98
|
|
|
62
|
|
|
6,503
|
|
|
—
|
|
|
6,663
|
|
|||||
Intangible assets
|
—
|
|
|
—
|
|
|
5,997
|
|
|
—
|
|
|
5,997
|
|
|||||
Investments in consolidated subsidiaries
|
42,042
|
|
|
12,149
|
|
|
—
|
|
|
(54,191
|
)
|
|
—
|
|
|||||
Other assets
|
213
|
|
|
12
|
|
|
2,364
|
|
|
—
|
|
|
2,589
|
|
|||||
Intercompany
|
—
|
|
|
2,450
|
|
|
22,896
|
|
|
(25,346
|
)
|
|
—
|
|
|||||
Total Assets
|
$
|
42,624
|
|
|
$
|
14,772
|
|
|
$
|
45,830
|
|
|
$
|
(79,564
|
)
|
|
$
|
23,662
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
2
|
|
|
$
|
19
|
|
|
$
|
177
|
|
|
$
|
—
|
|
|
$
|
198
|
|
Participants’ share and royalties payable
|
—
|
|
|
—
|
|
|
975
|
|
|
—
|
|
|
975
|
|
|||||
Program rights
|
4
|
|
|
2
|
|
|
400
|
|
|
—
|
|
|
406
|
|
|||||
Commercial paper
|
394
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
394
|
|
|||||
Current portion of long-term debt
|
4
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
20
|
|
|||||
Accrued expenses and other current liabilities
|
403
|
|
|
210
|
|
|
888
|
|
|
(27
|
)
|
|
1,474
|
|
|||||
Total current liabilities
|
807
|
|
|
231
|
|
|
2,456
|
|
|
(27
|
)
|
|
3,467
|
|
|||||
Long-term debt
|
7,565
|
|
|
—
|
|
|
121
|
|
|
—
|
|
|
7,686
|
|
|||||
Other liabilities
|
2,943
|
|
|
245
|
|
|
3,358
|
|
|
—
|
|
|
6,546
|
|
|||||
Intercompany
|
25,346
|
|
|
—
|
|
|
—
|
|
|
(25,346
|
)
|
|
—
|
|
|||||
Stockholders’ Equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred stock
|
—
|
|
|
—
|
|
|
126
|
|
|
(126
|
)
|
|
—
|
|
|||||
Common stock
|
1
|
|
|
123
|
|
|
590
|
|
|
(713
|
)
|
|
1
|
|
|||||
Additional paid-in capital
|
44,090
|
|
|
—
|
|
|
60,894
|
|
|
(60,894
|
)
|
|
44,090
|
|
|||||
Retained earnings (deficit)
|
(21,205
|
)
|
|
14,508
|
|
|
(17,017
|
)
|
|
2,509
|
|
|
(21,205
|
)
|
|||||
Accumulated other comprehensive income (loss)
|
(718
|
)
|
|
(4
|
)
|
|
102
|
|
|
(98
|
)
|
|
(718
|
)
|
|||||
|
22,168
|
|
|
14,627
|
|
|
44,695
|
|
|
(59,322
|
)
|
|
22,168
|
|
|||||
Less treasury stock, at cost
|
16,205
|
|
|
331
|
|
|
4,800
|
|
|
(5,131
|
)
|
|
16,205
|
|
|||||
Total Stockholders’ Equity
|
5,963
|
|
|
14,296
|
|
|
39,895
|
|
|
(54,191
|
)
|
|
5,963
|
|
|||||
Total Liabilities and Stockholders’ Equity
|
$
|
42,624
|
|
|
$
|
14,772
|
|
|
$
|
45,830
|
|
|
$
|
(79,564
|
)
|
|
$
|
23,662
|
|
|
Balance Sheet
|
||||||||||||||||||
|
At December 31, 2014
|
||||||||||||||||||
|
CBS Corp.
|
|
CBS
Operations
Inc.
|
|
Non-
Guarantor
Affiliates
|
|
Eliminations
|
|
CBS Corp.
Consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
63
|
|
|
$
|
1
|
|
|
$
|
364
|
|
|
$
|
—
|
|
|
$
|
428
|
|
Receivables, net
|
29
|
|
|
2
|
|
|
3,428
|
|
|
—
|
|
|
3,459
|
|
|||||
Programming and other inventory
|
4
|
|
|
3
|
|
|
915
|
|
|
—
|
|
|
922
|
|
|||||
Prepaid expenses and other current assets
|
306
|
|
|
27
|
|
|
477
|
|
|
(30
|
)
|
|
780
|
|
|||||
Total current assets
|
402
|
|
|
33
|
|
|
5,184
|
|
|
(30
|
)
|
|
5,589
|
|
|||||
Property and equipment
|
41
|
|
|
162
|
|
|
2,961
|
|
|
—
|
|
|
3,164
|
|
|||||
Less accumulated depreciation and amortization
|
15
|
|
|
98
|
|
|
1,618
|
|
|
—
|
|
|
1,731
|
|
|||||
Net property and equipment
|
26
|
|
|
64
|
|
|
1,343
|
|
|
—
|
|
|
1,433
|
|
|||||
Programming and other inventory
|
7
|
|
|
8
|
|
|
1,802
|
|
|
—
|
|
|
1,817
|
|
|||||
Goodwill
|
98
|
|
|
62
|
|
|
6,538
|
|
|
—
|
|
|
6,698
|
|
|||||
Intangible assets
|
—
|
|
|
—
|
|
|
6,008
|
|
|
—
|
|
|
6,008
|
|
|||||
Investments in consolidated subsidiaries
|
41,144
|
|
|
11,685
|
|
|
—
|
|
|
(52,829
|
)
|
|
—
|
|
|||||
Other assets
|
219
|
|
|
17
|
|
|
2,291
|
|
|
—
|
|
|
2,527
|
|
|||||
Intercompany
|
—
|
|
|
2,726
|
|
|
21,772
|
|
|
(24,498
|
)
|
|
—
|
|
|||||
Total Assets
|
$
|
41,896
|
|
|
$
|
14,595
|
|
|
$
|
44,938
|
|
|
$
|
(77,357
|
)
|
|
$
|
24,072
|
|
Liabilities and Stockholders
’
Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
3
|
|
|
$
|
24
|
|
|
$
|
275
|
|
|
$
|
—
|
|
|
$
|
302
|
|
Participants’ share and royalties payable
|
—
|
|
|
—
|
|
|
999
|
|
|
—
|
|
|
999
|
|
|||||
Program rights
|
5
|
|
|
3
|
|
|
396
|
|
|
—
|
|
|
404
|
|
|||||
Commercial paper
|
616
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
616
|
|
|||||
Current portion of long-term debt
|
4
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
20
|
|
|||||
Accrued expenses and other current liabilities
|
388
|
|
|
270
|
|
|
1,064
|
|
|
(30
|
)
|
|
1,692
|
|
|||||
Total current liabilities
|
1,016
|
|
|
297
|
|
|
2,750
|
|
|
(30
|
)
|
|
4,033
|
|
|||||
Long-term debt
|
6,383
|
|
|
—
|
|
|
127
|
|
|
—
|
|
|
6,510
|
|
|||||
Other liabilities
|
3,029
|
|
|
249
|
|
|
3,281
|
|
|
—
|
|
|
6,559
|
|
|||||
Intercompany
|
24,498
|
|
|
—
|
|
|
—
|
|
|
(24,498
|
)
|
|
—
|
|
|||||
Stockholders’ Equity:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Preferred stock
|
—
|
|
|
—
|
|
|
126
|
|
|
(126
|
)
|
|
—
|
|
|||||
Common stock
|
1
|
|
|
123
|
|
|
590
|
|
|
(713
|
)
|
|
1
|
|
|||||
Additional paid-in capital
|
44,041
|
|
|
—
|
|
|
60,894
|
|
|
(60,894
|
)
|
|
44,041
|
|
|||||
Retained earnings (deficit)
|
(21,931
|
)
|
|
14,260
|
|
|
(18,111
|
)
|
|
3,851
|
|
|
(21,931
|
)
|
|||||
Accumulated other comprehensive income (loss)
|
(735
|
)
|
|
(3
|
)
|
|
81
|
|
|
(78
|
)
|
|
(735
|
)
|
|||||
|
21,376
|
|
|
14,380
|
|
|
43,580
|
|
|
(57,960
|
)
|
|
21,376
|
|
|||||
Less treasury stock, at cost
|
14,406
|
|
|
331
|
|
|
4,800
|
|
|
(5,131
|
)
|
|
14,406
|
|
|||||
Total Stockholders’ Equity
|
6,970
|
|
|
14,049
|
|
|
38,780
|
|
|
(52,829
|
)
|
|
6,970
|
|
|||||
Total Liabilities and Stockholders’ Equity
|
$
|
41,896
|
|
|
$
|
14,595
|
|
|
$
|
44,938
|
|
|
$
|
(77,357
|
)
|
|
$
|
24,072
|
|
|
Statement of Cash Flows
|
||||||||||||||||||
|
For the Six Months Ended June 30, 2015
|
||||||||||||||||||
|
CBS Corp.
|
|
CBS
Operations
Inc.
|
|
Non-
Guarantor
Affiliates
|
|
Eliminations
|
|
CBS Corp.
Consolidated
|
||||||||||
Net cash flow (used for) provided by operating activities
|
$
|
(301
|
)
|
|
$
|
(150
|
)
|
|
$
|
1,314
|
|
|
$
|
—
|
|
|
$
|
863
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
—
|
|
|
(2
|
)
|
|
(44
|
)
|
|
—
|
|
|
(46
|
)
|
|||||
Investments in and advances to investee companies
|
—
|
|
|
—
|
|
|
(55
|
)
|
|
—
|
|
|
(55
|
)
|
|||||
Proceeds from dispositions
|
—
|
|
|
—
|
|
|
59
|
|
|
—
|
|
|
59
|
|
|||||
Other investing activities
|
4
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
3
|
|
|||||
Net cash flow provided by (used for) investing activities from continuing operations
|
4
|
|
|
(2
|
)
|
|
(41
|
)
|
|
—
|
|
|
(39
|
)
|
|||||
Net cash flow used for investing activities from discontinued operations
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|||||
Net cash flow provided by (used for) investing activities
|
1
|
|
|
(2
|
)
|
|
(41
|
)
|
|
—
|
|
|
(42
|
)
|
|||||
Financing Activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Repayments of short-term debt borrowings, net
|
(222
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(222
|
)
|
|||||
Proceeds from issuance of notes, net
|
1,178
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,178
|
|
|||||
Payment of capital lease obligations
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
(8
|
)
|
|||||
Dividends
|
(155
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(155
|
)
|
|||||
Purchase of Company common stock
|
(1,832
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,832
|
)
|
|||||
Payment of payroll taxes in lieu of issuing
shares for stock-based compensation
|
(95
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(95
|
)
|
|||||
Proceeds from exercise of stock options
|
123
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
123
|
|
|||||
Excess tax benefit from stock-based compensation
|
82
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
82
|
|
|||||
Increase (decrease) in intercompany payables
|
1,185
|
|
|
152
|
|
|
(1,337
|
)
|
|
—
|
|
|
—
|
|
|||||
Net cash flow provided by (used for) financing activities
|
264
|
|
|
152
|
|
|
(1,345
|
)
|
|
—
|
|
|
(929
|
)
|
|||||
Net decrease in cash and cash equivalents
|
(36
|
)
|
|
—
|
|
|
(72
|
)
|
|
—
|
|
|
(108
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
63
|
|
|
1
|
|
|
364
|
|
|
—
|
|
|
428
|
|
|||||
Cash and cash equivalents at end of period
|
$
|
27
|
|
|
$
|
1
|
|
|
$
|
292
|
|
|
$
|
—
|
|
|
$
|
320
|
|
|
Statement of Cash Flows
|
||||||||||||||||||
|
For the Six Months Ended June 30, 2014
|
||||||||||||||||||
|
CBS Corp.
|
|
CBS
Operations
Inc.
|
|
Non-
Guarantor
Affiliates
|
|
Eliminations
|
|
CBS Corp.
Consolidated
|
||||||||||
Net cash flow (used for) provided by operating activities
|
$
|
(334
|
)
|
|
$
|
(166
|
)
|
|
$
|
1,124
|
|
|
$
|
—
|
|
|
$
|
624
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Capital expenditures
|
—
|
|
|
(6
|
)
|
|
(63
|
)
|
|
—
|
|
|
(69
|
)
|
|||||
Investments in and advances to investee companies
|
—
|
|
|
—
|
|
|
(64
|
)
|
|
—
|
|
|
(64
|
)
|
|||||
Proceeds from sale of investments
|
1
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
3
|
|
|||||
Proceeds from dispositions
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|||||
Other investing activities
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||||
Net cash flow provided by (used for) investing activities from continuing operations
|
1
|
|
|
(5
|
)
|
|
(122
|
)
|
|
—
|
|
|
(126
|
)
|
|||||
Net cash flow used for investing activities from discontinued operations
|
—
|
|
|
—
|
|
|
(23
|
)
|
|
—
|
|
|
(23
|
)
|
|||||
Net cash flow provided by (used for) investing activities
|
1
|
|
|
(5
|
)
|
|
(145
|
)
|
|
—
|
|
|
(149
|
)
|
|||||
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Repayments of short-term debt borrowings, net
|
(94
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(94
|
)
|
|||||
Repayment of notes
|
(99
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(99
|
)
|
|||||
Payment of capital lease obligations
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
(8
|
)
|
|||||
Dividends
|
(145
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(145
|
)
|
|||||
Purchase of Company common stock
|
(2,468
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,468
|
)
|
|||||
Payment of payroll taxes in lieu of issuing shares
for stock-based compensation
|
(145
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(145
|
)
|
|||||
Proceeds from exercise of stock options
|
192
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
192
|
|
|||||
Excess tax benefit from stock-based compensation
|
204
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
204
|
|
|||||
Increase (decrease) in intercompany payables
|
2,852
|
|
|
171
|
|
|
(3,023
|
)
|
|
—
|
|
|
—
|
|
|||||
Net cash flow provided by (used for) financing activities from continuing operations
|
297
|
|
|
171
|
|
|
(3,031
|
)
|
|
—
|
|
|
(2,563
|
)
|
|||||
Net cash flow provided by financing activities from discontinued operations
|
—
|
|
|
—
|
|
|
2,175
|
|
|
—
|
|
|
2,175
|
|
|||||
Net cash flow provided by (used for) financing activities
|
297
|
|
|
171
|
|
|
(856
|
)
|
|
—
|
|
|
(388
|
)
|
|||||
Net (decrease) increase in cash and cash equivalents
|
(36
|
)
|
|
—
|
|
|
123
|
|
|
—
|
|
|
87
|
|
|||||
Cash and cash equivalents at beginning of period
(includes $29 of discontinued operations cash)
|
80
|
|
|
1
|
|
|
316
|
|
|
—
|
|
|
397
|
|
|||||
Cash and cash equivalents at end of period
(includes $223 of discontinued operations cash)
|
$
|
44
|
|
|
$
|
1
|
|
|
$
|
439
|
|
|
$
|
—
|
|
|
$
|
484
|
|
Item 2.
|
Management’s Discussion and Analysis of Results of Operations and Financial Condition.
|
|
(Tabular dollars in millions, except per share amounts)
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Net earnings from continuing operations
|
$
|
332
|
|
|
$
|
418
|
|
|
$
|
726
|
|
|
$
|
880
|
|
Exclude:
|
|
|
|
|
|
|
|
||||||||
Restructuring charges
(net of tax benefit of $22 million)
|
33
|
|
|
—
|
|
|
33
|
|
|
—
|
|
||||
Adjusted net earnings from continuing operations
|
$
|
365
|
|
|
$
|
418
|
|
|
$
|
759
|
|
|
$
|
880
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Diluted EPS from continuing operations
|
$
|
.67
|
|
|
$
|
.72
|
|
|
$
|
1.45
|
|
|
$
|
1.49
|
|
Exclude:
|
|
|
|
|
|
|
|
||||||||
Restructuring charges
|
.07
|
|
|
—
|
|
|
.07
|
|
|
—
|
|
||||
Adjusted diluted EPS from continuing operations
|
$
|
.74
|
|
|
$
|
.72
|
|
|
$
|
1.52
|
|
|
$
|
1.49
|
|
|
Three Months Ended June 30,
|
|||||||||||||||||||
|
|
|
Percentage
of Total
|
|
|
|
Percentage
of Total
|
|
Increase/(Decrease)
|
|||||||||||
Revenues by Type
|
2015
|
|
|
2014
|
|
|
$
|
|
%
|
|||||||||||
Advertising
|
$
|
1,594
|
|
|
50
|
%
|
|
$
|
1,636
|
|
|
51
|
%
|
|
$
|
(42
|
)
|
|
(3
|
)%
|
Content licensing and distribution
|
815
|
|
|
25
|
%
|
|
903
|
|
|
28
|
%
|
|
(88
|
)
|
|
(10
|
)%
|
|||
Affiliate and subscription fees
|
752
|
|
|
23
|
%
|
|
586
|
|
|
19
|
%
|
|
166
|
|
|
28
|
%
|
|||
Other
|
58
|
|
|
2
|
%
|
|
63
|
|
|
2
|
%
|
|
(5
|
)
|
|
(8
|
)%
|
|||
Total Revenues
|
$
|
3,219
|
|
|
100
|
%
|
|
$
|
3,188
|
|
|
100
|
%
|
|
$
|
31
|
|
|
1
|
%
|
|
Six Months Ended June 30,
|
|||||||||||||||||||
|
|
|
Percentage
of Total
|
|
|
|
Percentage
of Total
|
|
Increase/(Decrease)
|
|||||||||||
Revenues by Type
|
2015
|
|
|
2014
|
|
|
$
|
|
%
|
|||||||||||
Advertising
|
$
|
3,378
|
|
|
50
|
%
|
|
$
|
3,509
|
|
|
52
|
%
|
|
$
|
(131
|
)
|
|
(4
|
)%
|
Content licensing and distribution
|
1,843
|
|
|
27
|
%
|
|
1,976
|
|
|
29
|
%
|
|
(133
|
)
|
|
(7
|
)%
|
|||
Affiliate and subscription fees
|
1,380
|
|
|
21
|
%
|
|
1,153
|
|
|
17
|
%
|
|
227
|
|
|
20
|
%
|
|||
Other
|
118
|
|
|
2
|
%
|
|
120
|
|
|
2
|
%
|
|
(2
|
)
|
|
(2
|
)%
|
|||
Total Revenues
|
$
|
6,719
|
|
|
100
|
%
|
|
$
|
6,758
|
|
|
100
|
%
|
|
$
|
(39
|
)
|
|
(1
|
)%
|
|
Three Months Ended June 30,
|
|||||||||||||||||||
|
|
|
Percentage
of Total
|
|
|
|
Percentage
of Total
|
|
Increase/(Decrease)
|
|||||||||||
Operating Expenses by Type
|
2015
|
|
|
2014
|
|
|
$
|
|
%
|
|||||||||||
Programming
|
$
|
683
|
|
|
36
|
%
|
|
$
|
558
|
|
|
31
|
%
|
|
$
|
125
|
|
|
22
|
%
|
Production
|
600
|
|
|
32
|
%
|
|
556
|
|
|
31
|
%
|
|
44
|
|
|
8
|
%
|
|||
Participation, distribution and royalty
|
244
|
|
|
12
|
%
|
|
311
|
|
|
17
|
%
|
|
(67
|
)
|
|
(22
|
)%
|
|||
Other
|
380
|
|
|
20
|
%
|
|
373
|
|
|
21
|
%
|
|
7
|
|
|
2
|
%
|
|||
Total Operating Expenses
|
$
|
1,907
|
|
|
100
|
%
|
|
$
|
1,798
|
|
|
100
|
%
|
|
$
|
109
|
|
|
6
|
%
|
|
Six Months Ended June 30,
|
|||||||||||||||||||
|
|
|
Percentage
of Total
|
|
|
|
Percentage
of Total
|
|
Increase/(Decrease)
|
|||||||||||
Operating Expenses by Type
|
2015
|
|
|
2014
|
|
|
$
|
|
%
|
|||||||||||
Programming
|
$
|
1,515
|
|
|
38
|
%
|
|
$
|
1,437
|
|
|
37
|
%
|
|
$
|
78
|
|
|
5
|
%
|
Production
|
1,257
|
|
|
31
|
%
|
|
1,155
|
|
|
29
|
%
|
|
102
|
|
|
9
|
%
|
|||
Participation, distribution and royalty
|
546
|
|
|
13
|
%
|
|
606
|
|
|
16
|
%
|
|
(60
|
)
|
|
(10
|
)%
|
|||
Other
|
731
|
|
|
18
|
%
|
|
721
|
|
|
18
|
%
|
|
10
|
|
|
1
|
%
|
|||
Total Operating Expenses
|
$
|
4,049
|
|
|
100
|
%
|
|
$
|
3,919
|
|
|
100
|
%
|
|
$
|
130
|
|
|
3
|
%
|
|
Balance at
|
|
2015
|
|
2015
|
|
Balance at
|
||||||||||||||||
|
December 31, 2014
|
|
Charges
|
|
Settlements
|
|
June 30, 2015
|
||||||||||||||||
Entertainment
|
|
$
|
6
|
|
|
|
|
$
|
12
|
|
|
|
|
$
|
(4
|
)
|
|
|
|
$
|
14
|
|
|
Local Broadcasting
|
|
10
|
|
|
|
|
43
|
|
|
|
|
(11
|
)
|
|
|
|
42
|
|
|
||||
Corporate
|
|
2
|
|
|
|
|
—
|
|
|
|
|
(1
|
)
|
|
|
|
1
|
|
|
||||
Total
|
|
$
|
18
|
|
|
|
|
$
|
55
|
|
|
|
|
$
|
(16
|
)
|
|
|
|
$
|
57
|
|
|
|
|
|
2014
|
|
2014
|
|
Balance at
|
||||||||||||||
|
|
|
Charges
|
|
Settlements
|
|
December 31, 2014
|
||||||||||||||
Entertainment
|
|
|
|
|
|
$
|
8
|
|
|
|
|
$
|
(2
|
)
|
|
|
|
$
|
6
|
|
|
Publishing
|
|
|
|
|
|
1
|
|
|
|
|
(1
|
)
|
|
|
|
—
|
|
|
|||
Local Broadcasting
|
|
|
|
|
|
14
|
|
|
|
|
(4
|
)
|
|
|
|
10
|
|
|
|||
Corporate
|
|
|
|
|
|
3
|
|
|
|
|
(1
|
)
|
|
|
|
2
|
|
|
|||
Total
|
|
|
|
|
|
$
|
26
|
|
|
|
|
$
|
(8
|
)
|
|
|
|
$
|
18
|
|
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
|
2015
|
|
2014
|
||||
Net cash flow provided by operating activities
|
$
|
863
|
|
|
$
|
624
|
|
Capital expenditures
|
(46
|
)
|
|
(69
|
)
|
||
Exclude operating cash flow from discontinued operations
|
(18
|
)
|
|
31
|
|
||
Free cash flow
|
$
|
835
|
|
|
$
|
524
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Entertainment
|
$
|
1,785
|
|
|
$
|
1,835
|
|
|
$
|
4,046
|
|
|
$
|
4,138
|
|
Cable Networks
|
615
|
|
|
516
|
|
|
1,154
|
|
|
1,053
|
|
||||
Publishing
|
199
|
|
|
211
|
|
|
344
|
|
|
364
|
|
||||
Local Broadcasting
|
654
|
|
|
665
|
|
|
1,250
|
|
|
1,291
|
|
||||
Corporate/Eliminations
|
(34
|
)
|
|
(39
|
)
|
|
(75
|
)
|
|
(88
|
)
|
||||
Total Revenues
|
$
|
3,219
|
|
|
$
|
3,188
|
|
|
$
|
6,719
|
|
|
$
|
6,758
|
|
Segment Operating Income (Loss):
|
|
|
|
|
|
|
|
||||||||
Entertainment
|
$
|
262
|
|
|
$
|
341
|
|
|
$
|
608
|
|
|
$
|
761
|
|
Cable Networks
|
220
|
|
|
213
|
|
|
471
|
|
|
467
|
|
||||
Publishing
|
25
|
|
|
23
|
|
|
37
|
|
|
34
|
|
||||
Local Broadcasting
|
198
|
|
|
215
|
|
|
359
|
|
|
394
|
|
||||
Corporate
|
(64
|
)
|
|
(62
|
)
|
|
(132
|
)
|
|
(135
|
)
|
||||
Total Segment Operating Income
|
641
|
|
|
730
|
|
|
1,343
|
|
|
1,521
|
|
||||
Restructuring charges
|
(55
|
)
|
|
—
|
|
|
(55
|
)
|
|
—
|
|
||||
Total Operating Income
|
$
|
586
|
|
|
$
|
730
|
|
|
$
|
1,288
|
|
|
$
|
1,521
|
|
Depreciation and Amortization:
|
|
|
|
|
|
|
|
||||||||
Entertainment
|
$
|
32
|
|
|
$
|
35
|
|
|
$
|
64
|
|
|
$
|
72
|
|
Cable Networks
|
6
|
|
|
6
|
|
|
12
|
|
|
11
|
|
||||
Publishing
|
2
|
|
|
1
|
|
|
3
|
|
|
3
|
|
||||
Local Broadcasting
|
19
|
|
|
23
|
|
|
40
|
|
|
44
|
|
||||
Corporate
|
7
|
|
|
6
|
|
|
15
|
|
|
12
|
|
||||
Total Depreciation and Amortization
|
$
|
66
|
|
|
$
|
71
|
|
|
$
|
134
|
|
|
$
|
142
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Revenues
|
$
|
1,785
|
|
|
$
|
1,835
|
|
|
$
|
4,046
|
|
|
$
|
4,138
|
|
Segment Operating Income
|
$
|
262
|
|
|
$
|
341
|
|
|
$
|
608
|
|
|
$
|
761
|
|
Segment Operating Income as a % of revenues
|
15
|
%
|
|
19
|
%
|
|
15
|
%
|
|
18
|
%
|
||||
Restructuring charges
|
$
|
12
|
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
—
|
|
Depreciation and amortization
|
$
|
32
|
|
|
$
|
35
|
|
|
$
|
64
|
|
|
$
|
72
|
|
Capital expenditures
|
$
|
13
|
|
|
$
|
20
|
|
|
$
|
21
|
|
|
$
|
37
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Revenues
|
$
|
615
|
|
|
$
|
516
|
|
|
$
|
1,154
|
|
|
$
|
1,053
|
|
Segment Operating Income
|
$
|
220
|
|
|
$
|
213
|
|
|
$
|
471
|
|
|
$
|
467
|
|
Segment Operating Income as a % of revenues
|
36
|
%
|
|
41
|
%
|
|
41
|
%
|
|
44
|
%
|
||||
Depreciation and amortization
|
$
|
6
|
|
|
$
|
6
|
|
|
$
|
12
|
|
|
$
|
11
|
|
Capital expenditures
|
$
|
2
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
5
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Revenues
|
$
|
199
|
|
|
$
|
211
|
|
|
$
|
344
|
|
|
$
|
364
|
|
Segment Operating Income
|
$
|
25
|
|
|
$
|
23
|
|
|
$
|
37
|
|
|
$
|
34
|
|
Segment Operating Income as a % of revenues
|
13
|
%
|
|
11
|
%
|
|
11
|
%
|
|
9
|
%
|
||||
Depreciation and amortization
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
3
|
|
|
$
|
3
|
|
Capital expenditures
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
1
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Revenues
|
$
|
654
|
|
|
$
|
665
|
|
|
$
|
1,250
|
|
|
$
|
1,291
|
|
Segment Operating Income
|
$
|
198
|
|
|
$
|
215
|
|
|
$
|
359
|
|
|
$
|
394
|
|
Segment Operating Income as a % of revenues
|
30
|
%
|
|
32
|
%
|
|
29
|
%
|
|
31
|
%
|
||||
Restructuring charges
|
$
|
43
|
|
|
$
|
—
|
|
|
$
|
43
|
|
|
$
|
—
|
|
Depreciation and amortization
|
$
|
19
|
|
|
$
|
23
|
|
|
$
|
40
|
|
|
$
|
44
|
|
Capital expenditures
|
$
|
11
|
|
|
$
|
12
|
|
|
$
|
18
|
|
|
$
|
20
|
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
|
2015
|
|
2014
|
||||
Cash provided by (used for) operating activities from:
|
|
|
|
||||
Continuing operations
|
$
|
881
|
|
|
$
|
593
|
|
Discontinued operations
|
(18
|
)
|
|
31
|
|
||
Cash provided by operating activities
|
863
|
|
|
624
|
|
||
Cash used for investing activities from:
|
|
|
|
||||
Continuing operations
|
(39
|
)
|
|
(126
|
)
|
||
Discontinued operations
|
(3
|
)
|
|
(23
|
)
|
||
Cash used for investing activities
|
(42
|
)
|
|
(149
|
)
|
||
Cash (used for) provided by financing activities from:
|
|
|
|
||||
Continuing operations
|
(929
|
)
|
|
(2,563
|
)
|
||
Discontinued operations
|
—
|
|
|
2,175
|
|
||
Cash used for financing activities
|
(929
|
)
|
|
(388
|
)
|
||
Net (decrease) increase in cash and cash equivalents
|
$
|
(108
|
)
|
|
$
|
87
|
|
|
At
|
|
At
|
||||||||
|
June 30, 2015
|
|
December 31, 2014
|
||||||||
Commercial paper
|
|
$
|
394
|
|
|
|
|
$
|
616
|
|
|
Senior debt (1.95% – 7.875% due 2016 – 2045)
(a)
|
|
7,615
|
|
|
|
|
6,433
|
|
|
||
Obligations under capital leases
|
|
91
|
|
|
|
|
97
|
|
|
||
Total debt
|
|
8,100
|
|
|
|
|
7,146
|
|
|
||
Less commercial paper
|
|
394
|
|
|
|
|
616
|
|
|
||
Less current portion of long-term debt
|
|
20
|
|
|
|
|
20
|
|
|
||
Total long-term debt, net of current portion
|
|
$
|
7,686
|
|
|
|
|
$
|
6,510
|
|
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk.
|
Item 4.
|
Controls and Procedures.
|
Item 1A.
|
Risk Factors.
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds.
|
(in millions, except per share amounts)
|
Total
Number of
Shares
Purchased
|
|
Average
Price Per
Share
|
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Programs
|
|
Remaining
Authorization
|
||||||||||
April 1, 2015 - April 30, 2015
|
|
3.6
|
|
|
|
$61.49
|
|
|
3.6
|
|
|
|
|
$
|
3,579
|
|
|
May 1, 2015 - May 31, 2015
|
|
4.4
|
|
|
|
$61.14
|
|
|
4.4
|
|
|
|
|
$
|
3,309
|
|
|
June 1, 2015 - June 30, 2015
|
|
5.2
|
|
|
|
$58.97
|
|
|
5.2
|
|
|
|
|
$
|
3,001
|
|
|
Total
|
|
13.2
|
|
|
|
$60.38
|
|
|
13.2
|
|
|
|
|
$
|
3,001
|
|
|
Item 6.
|
Exhibits.
|
|
CBS CORPORATION
(Registrant)
|
|
|
Date: August 5, 2015
|
/s/ Joseph R. Ianniello
|
|
Joseph R. Ianniello
Chief Operating Officer
|
|
|
Date: August 5, 2015
|
/s/ Lawrence Liding
|
|
Lawrence Liding
Executive Vice President, Controller and
Chief Accounting Officer
|
|
Six Months Ended
|
|
Twelve Months Ended
|
||||||||||||||||||||
|
June 30,
|
|
December 31,
|
||||||||||||||||||||
|
2015
|
|
2014
|
|
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||
Earnings from continuing operations before
income taxes and equity in loss of investee
companies
|
$
|
1,113
|
|
|
$
|
1,351
|
|
|
$
|
2,164
|
|
$
|
2,665
|
|
$
|
2,357
|
|
$
|
1,983
|
|
$
|
1,209
|
|
Add:
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Distributions from investee companies
|
3
|
|
|
8
|
|
|
9
|
|
8
|
|
11
|
|
6
|
|
—
|
|
|||||||
Interest expense, net of capitalized interest
|
187
|
|
|
187
|
|
|
363
|
|
375
|
|
401
|
|
433
|
|
526
|
|
|||||||
1/3 of rental expense
|
36
|
|
|
33
|
|
|
69
|
|
70
|
|
68
|
|
68
|
|
68
|
|
|||||||
Total earnings from continuing operations
|
$
|
1,339
|
|
|
$
|
1,579
|
|
|
$
|
2,605
|
|
$
|
3,118
|
|
$
|
2,837
|
|
$
|
2,490
|
|
$
|
1,803
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed charges:
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest expense, net of capitalized interest
|
$
|
187
|
|
|
$
|
187
|
|
|
$
|
363
|
|
$
|
375
|
|
$
|
401
|
|
$
|
433
|
|
$
|
526
|
|
1/3 of rental expense
|
36
|
|
|
33
|
|
|
69
|
|
70
|
|
68
|
|
68
|
|
68
|
|
|||||||
Total fixed charges
|
$
|
223
|
|
|
$
|
220
|
|
|
$
|
432
|
|
$
|
445
|
|
$
|
469
|
|
$
|
501
|
|
$
|
594
|
|
Ratio of earnings to fixed charges
|
6.0
|
x
|
|
7.2
|
x
|
|
6.0
|
x
|
7.0
|
x
|
6.0
|
x
|
5.0
|
x
|
3.0
|
x
|
1.
|
I have reviewed this quarterly report on Form 10-Q of CBS Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
/s/ Leslie Moonves
|
|
Leslie Moonves
|
|
President and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of CBS Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
/s/ Joseph R. Ianniello
|
|
Joseph R. Ianniello
|
|
Chief Operating Officer
|
/s/ Leslie Moonves
|
|
Leslie Moonves
|
|
August 5, 2015
|
|
/s/ Joseph R. Ianniello
|
|
Joseph R. Ianniello
|
|
August 5, 2015
|
|