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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
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
(State or other jurisdiction of
incorporation or organization)
|
04-2949533
(I.R.S. Employer Identification No.)
|
|
|
51 W. 52
nd
Street, New York, New York
(Address of principal executive offices)
|
10019
(Zip Code)
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Large accelerated filer
x
|
|
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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PART I – FINANCIAL INFORMATION
|
|
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||
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Consolidated Statements of Operations (Unaudited) for the
Three and Nine Months Ended September 30, 2016 and September 30, 2015 |
|
|
|
|
|
Consolidated Statements of Comprehensive Income (Unaudited) for the
Three and Nine Months Ended September 30, 2016 and September 30, 2015 |
|
|
|
|
|
Consolidated Balance Sheets (Unaudited) at September 30, 2016
and December 31, 2015 |
|
|
|
|
|
Consolidated Statements of Cash Flows (Unaudited) for the
Nine Months Ended September 30, 2016 and September 30, 2015 |
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|
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|
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||
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|
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Management’s Discussion and Analysis of Results of Operations and Financial Condition.
|
||
|
|
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Item 1A.
|
Risk Factors.
|
|
|
|
|
|
|
|
Item 1.
|
Financial Statements.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Revenues
|
$
|
3,396
|
|
|
$
|
3,257
|
|
|
$
|
10,532
|
|
|
$
|
9,976
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
||||||
Operating
|
1,897
|
|
|
1,842
|
|
|
6,114
|
|
|
5,891
|
|
||||
Selling, general and administrative
|
640
|
|
|
597
|
|
|
1,887
|
|
|
1,790
|
|
||||
Depreciation and amortization
|
61
|
|
|
65
|
|
|
188
|
|
|
199
|
|
||||
Restructuring charges (Note 10)
|
—
|
|
|
—
|
|
|
—
|
|
|
55
|
|
||||
Other operating items, net
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
(19
|
)
|
||||
Total costs and expenses
|
2,598
|
|
|
2,504
|
|
|
8,180
|
|
|
7,916
|
|
||||
Operating income
|
798
|
|
|
753
|
|
|
2,352
|
|
|
2,060
|
|
||||
Interest expense
|
(104
|
)
|
|
(102
|
)
|
|
(304
|
)
|
|
(289
|
)
|
||||
Interest income
|
7
|
|
|
6
|
|
|
22
|
|
|
18
|
|
||||
Other items, net
|
2
|
|
|
(4
|
)
|
|
(5
|
)
|
|
(23
|
)
|
||||
Earnings from continuing operations before income taxes and
equity in loss of investee companies
|
703
|
|
|
653
|
|
|
2,065
|
|
|
1,766
|
|
||||
Provision for income taxes
|
(176
|
)
|
|
(211
|
)
|
|
(612
|
)
|
|
(579
|
)
|
||||
Equity in loss of investee companies, net of tax
|
(13
|
)
|
|
(16
|
)
|
|
(43
|
)
|
|
(35
|
)
|
||||
Net earnings from continuing operations
|
514
|
|
|
426
|
|
|
1,410
|
|
|
1,152
|
|
||||
Loss from discontinued operations (Note 1)
|
(36
|
)
|
|
—
|
|
|
(36
|
)
|
|
—
|
|
||||
Net earnings
|
$
|
478
|
|
|
$
|
426
|
|
|
$
|
1,374
|
|
|
$
|
1,152
|
|
|
|
|
|
|
|
|
|
||||||||
Basic net earnings (loss) per common share:
|
|
|
|
|
|
|
|
|
|
||||||
Net earnings from continuing operations
|
$
|
1.16
|
|
|
$
|
.89
|
|
|
$
|
3.13
|
|
|
$
|
2.36
|
|
Loss from discontinued operations
|
$
|
(.08
|
)
|
|
$
|
—
|
|
|
$
|
(.08
|
)
|
|
$
|
—
|
|
Net earnings
|
$
|
1.08
|
|
|
$
|
.89
|
|
|
$
|
3.05
|
|
|
$
|
2.36
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted net earnings (loss) per common share:
|
|
|
|
|
|
|
|
|
|
||||||
Net earnings from continuing operations
|
$
|
1.15
|
|
|
$
|
.88
|
|
|
$
|
3.10
|
|
|
$
|
2.33
|
|
Loss from discontinued operations
|
$
|
(.08
|
)
|
|
$
|
—
|
|
|
$
|
(.08
|
)
|
|
$
|
—
|
|
Net earnings
|
$
|
1.07
|
|
|
$
|
.88
|
|
|
$
|
3.02
|
|
|
$
|
2.33
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
442
|
|
|
480
|
|
|
451
|
|
|
489
|
|
||||
Diluted
|
446
|
|
|
484
|
|
|
455
|
|
|
495
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Dividends per common share
|
$
|
.18
|
|
|
$
|
.15
|
|
|
$
|
.48
|
|
|
$
|
.45
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net earnings
|
$
|
478
|
|
|
$
|
426
|
|
|
$
|
1,374
|
|
|
$
|
1,152
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
||||||||
Cumulative translation adjustments
|
1
|
|
|
(5
|
)
|
|
2
|
|
|
(6
|
)
|
||||
Amortization of net actuarial loss and prior service cost
|
10
|
|
|
9
|
|
|
29
|
|
|
27
|
|
||||
Total other comprehensive income, net of tax
|
11
|
|
|
4
|
|
|
31
|
|
|
21
|
|
||||
Total comprehensive income
|
$
|
489
|
|
|
$
|
430
|
|
|
$
|
1,405
|
|
|
$
|
1,173
|
|
|
At
|
|
At
|
||||||||
|
September 30, 2016
|
|
December 31, 2015
|
||||||||
ASSETS
|
|
|
|
|
|
|
|
||||
Current Assets:
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
179
|
|
|
|
|
$
|
323
|
|
|
Receivables, less allowances of $67 (2016) and $63 (2015)
|
|
3,348
|
|
|
|
|
3,628
|
|
|
||
Programming and other inventory (Note 3)
|
|
1,459
|
|
|
|
|
1,271
|
|
|
||
Prepaid income taxes
|
|
39
|
|
|
|
|
101
|
|
|
||
Prepaid expenses
|
|
204
|
|
|
|
|
175
|
|
|
||
Other current assets
|
|
228
|
|
|
|
|
249
|
|
|
||
Total current assets
|
|
5,457
|
|
|
|
|
5,747
|
|
|
||
Property and equipment
|
|
3,263
|
|
|
|
|
3,243
|
|
|
||
Less accumulated depreciation and amortization
|
|
1,918
|
|
|
|
|
1,838
|
|
|
||
Net property and equipment
|
|
1,345
|
|
|
|
|
1,405
|
|
|
||
Programming and other inventory (Note 3)
|
|
2,237
|
|
|
|
|
1,957
|
|
|
||
Goodwill
|
|
6,531
|
|
|
|
|
6,481
|
|
|
||
Intangible assets
|
|
5,499
|
|
|
|
|
5,514
|
|
|
||
Other assets
|
|
2,779
|
|
|
|
|
2,661
|
|
|
||
Total Assets
|
|
$
|
23,848
|
|
|
|
|
$
|
23,765
|
|
|
|
|
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS
’
EQUITY
|
|
|
|
|
|
|
|
|
|
||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
||
Accounts payable
|
|
$
|
153
|
|
|
|
|
$
|
192
|
|
|
Accrued compensation
|
|
282
|
|
|
|
|
315
|
|
|
||
Participants’ share and royalties payable
|
|
979
|
|
|
|
|
1,013
|
|
|
||
Program rights
|
|
373
|
|
|
|
|
374
|
|
|
||
Deferred revenues
|
|
141
|
|
|
|
|
295
|
|
|
||
Commercial paper (Note 5)
|
|
33
|
|
|
|
|
—
|
|
|
||
Current portion of long-term debt (Note 5)
|
|
22
|
|
|
|
|
222
|
|
|
||
Accrued expenses and other current liabilities
|
|
1,115
|
|
|
|
|
1,149
|
|
|
||
Total current liabilities
|
|
3,098
|
|
|
|
|
3,560
|
|
|
||
Long-term debt (Note 5)
|
|
8,902
|
|
|
|
|
8,226
|
|
|
||
Pension and postretirement benefit obligations
|
|
1,526
|
|
|
|
|
1,575
|
|
|
||
Deferred income tax liabilities, net
|
|
1,667
|
|
|
|
|
1,509
|
|
|
||
Other liabilities
|
|
3,240
|
|
|
|
|
3,260
|
|
|
||
Liabilities of discontinued operations
|
|
67
|
|
|
|
|
72
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||
Commitments and contingencies (Note 9)
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||
Stockholders
’
Equity:
|
|
|
|
|
|
|
|
|
|
||
Class A Common Stock, par value $.001 per share; 375 shares authorized;
38 (2016 and 2015) shares issued |
|
—
|
|
|
|
|
—
|
|
|
||
Class B Common Stock, par value $.001 per share; 5,000 shares authorized;
828 (2016) and 826 (2015) shares issued |
|
1
|
|
|
|
|
1
|
|
|
||
Additional paid-in capital
|
|
43,935
|
|
|
|
|
44,055
|
|
|
||
Accumulated deficit
|
|
(19,144
|
)
|
|
|
|
(20,518
|
)
|
|
||
Accumulated other comprehensive loss (Note 7)
|
|
(739
|
)
|
|
|
|
(770
|
)
|
|
||
|
|
24,053
|
|
|
|
|
22,768
|
|
|
||
Less treasury stock, at cost; 429 (2016) and 401 (2015) Class B shares
|
|
18,705
|
|
|
|
|
17,205
|
|
|
||
Total Stockholders
’
Equity
|
|
5,348
|
|
|
|
|
5,563
|
|
|
||
Total Liabilities and Stockholders
’
Equity
|
|
$
|
23,848
|
|
|
|
|
$
|
23,765
|
|
|
|
Nine Months Ended
|
||||||
|
September 30,
|
||||||
|
2016
|
|
2015
|
||||
Operating Activities:
|
|
|
|
||||
Net earnings
|
$
|
1,374
|
|
|
$
|
1,152
|
|
Less: Loss from discontinued operations
|
(36
|
)
|
|
—
|
|
||
Net earnings from continuing operations
|
1,410
|
|
|
1,152
|
|
||
Adjustments to reconcile net earnings from continuing operations to net cash flow provided by operating activities from continuing operations:
|
|
|
|
|
|
||
Depreciation and amortization
|
188
|
|
|
199
|
|
||
Stock-based compensation
|
134
|
|
|
128
|
|
||
Equity in loss of investee companies, net of tax and distributions
|
48
|
|
|
37
|
|
||
Change in assets and liabilities, net of investing and financing activities
|
(472
|
)
|
|
(866
|
)
|
||
Net cash flow provided by operating activities from continuing operations
|
1,308
|
|
|
650
|
|
||
Net cash flow used for operating activities from discontinued operations
|
(2
|
)
|
|
(27
|
)
|
||
Net cash flow provided by operating activities
|
1,306
|
|
|
623
|
|
||
Investing Activities:
|
|
|
|
|
|
||
Acquisitions
|
(51
|
)
|
|
(7
|
)
|
||
Capital expenditures
|
(125
|
)
|
|
(104
|
)
|
||
Investments in and advances to investee companies
|
(44
|
)
|
|
(58
|
)
|
||
Proceeds from dispositions
|
28
|
|
|
75
|
|
||
Other investing activities
|
11
|
|
|
(8
|
)
|
||
Net cash flow used for investing activities from continuing operations
|
(181
|
)
|
|
(102
|
)
|
||
Net cash flow used for investing activities from discontinued operations
|
—
|
|
|
(4
|
)
|
||
Net cash flow used for investing activities
|
(181
|
)
|
|
(106
|
)
|
||
Financing Activities:
|
|
|
|
|
|
||
Proceeds from (repayments of) short-term debt borrowings, net
|
33
|
|
|
(313
|
)
|
||
Proceeds from issuance of senior notes
|
685
|
|
|
1,959
|
|
||
Repayment of senior debentures
|
(199
|
)
|
|
—
|
|
||
Payment of capital lease obligations
|
(13
|
)
|
|
(13
|
)
|
||
Dividends
|
(209
|
)
|
|
(228
|
)
|
||
Purchase of Company common stock
|
(1,534
|
)
|
|
(2,345
|
)
|
||
Payment of payroll taxes in lieu of issuing shares for stock-based compensation
|
(57
|
)
|
|
(96
|
)
|
||
Proceeds from exercise of stock options
|
13
|
|
|
137
|
|
||
Excess tax benefit from stock-based compensation
|
13
|
|
|
87
|
|
||
Other financing activities
|
(1
|
)
|
|
—
|
|
||
Net cash flow used for financing activities
|
(1,269
|
)
|
|
(812
|
)
|
||
Net decrease in cash and cash equivalents
|
(144
|
)
|
|
(295
|
)
|
||
Cash and cash equivalents at beginning of period
|
323
|
|
|
428
|
|
||
Cash and cash equivalents at end of period
|
$
|
179
|
|
|
$
|
133
|
|
Supplemental disclosure of cash flow information
|
|
|
|
|
|
||
Cash paid for interest
|
$
|
358
|
|
|
$
|
303
|
|
Cash paid for income taxes from continuing operations
|
$
|
370
|
|
|
$
|
230
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
September 30,
|
|
September 30,
|
||||||||
(in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Weighted average shares for basic EPS
|
442
|
|
|
480
|
|
|
451
|
|
|
489
|
|
Dilutive effect of shares issuable under stock-based
compensation plans
|
4
|
|
|
4
|
|
|
4
|
|
|
6
|
|
Weighted average shares for diluted EPS
|
446
|
|
|
484
|
|
|
455
|
|
|
495
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
RSUs
|
$
|
39
|
|
|
$
|
32
|
|
|
$
|
112
|
|
|
$
|
105
|
|
Stock options
|
7
|
|
|
7
|
|
|
22
|
|
|
23
|
|
||||
Stock-based compensation expense, before income taxes
|
46
|
|
|
39
|
|
|
134
|
|
|
128
|
|
||||
Related tax benefit
|
(18
|
)
|
|
(15
|
)
|
|
(52
|
)
|
|
(49
|
)
|
||||
Stock-based compensation expense, net of tax benefit
|
$
|
28
|
|
|
$
|
24
|
|
|
$
|
82
|
|
|
$
|
79
|
|
|
At
|
|
At
|
||||||||
|
September 30, 2016
|
|
December 31, 2015
|
||||||||
Acquired program rights
|
|
$
|
1,737
|
|
|
|
|
$
|
1,533
|
|
|
Internally produced programming:
|
|
|
|
|
|
|
|
||||
Released
|
|
1,459
|
|
|
|
|
1,261
|
|
|
||
In process and other
|
|
445
|
|
|
|
|
392
|
|
|
||
Publishing, primarily finished goods
|
|
55
|
|
|
|
|
42
|
|
|
||
Total programming and other inventory
|
|
3,696
|
|
|
|
|
3,228
|
|
|
||
Less current portion
|
|
1,459
|
|
|
|
|
1,271
|
|
|
||
Total noncurrent programming and other inventory
|
|
$
|
2,237
|
|
|
|
|
$
|
1,957
|
|
|
|
At
|
|
At
|
||||||||
|
September 30, 2016
|
|
December 31, 2015
|
||||||||
Receivables
|
|
$
|
87
|
|
|
|
|
$
|
115
|
|
|
Other assets (Receivables, noncurrent)
|
|
47
|
|
|
|
|
38
|
|
|
||
Total amounts due from Viacom Inc
.
|
|
$
|
134
|
|
|
|
|
$
|
153
|
|
|
|
At
|
|
At
|
||||||||
|
September 30, 2016
|
|
December 31, 2015
|
||||||||
Commercial paper
|
|
$
|
33
|
|
|
|
|
$
|
—
|
|
|
Senior debt (1.95% - 7.875% due 2016 - 2045)
(a)
|
|
8,849
|
|
|
|
|
8,365
|
|
|
||
Obligations under capital leases
|
|
75
|
|
|
|
|
83
|
|
|
||
Total debt
|
|
8,957
|
|
|
|
|
8,448
|
|
|
||
Less commercial paper
|
|
33
|
|
|
|
|
—
|
|
|
||
Less current portion of long-term debt
|
|
22
|
|
|
|
|
222
|
|
|
||
Total long-term debt, net of current portion
|
|
$
|
8,902
|
|
|
|
|
$
|
8,226
|
|
|
|
Pension Benefits
|
|
Postretirement Benefits
|
||||||||||||
Three Months Ended September 30,
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Components of net periodic cost:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
7
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
54
|
|
|
52
|
|
|
5
|
|
|
6
|
|
||||
Expected return on plan assets
|
(56
|
)
|
|
(65
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of actuarial loss (gain)
(a)
|
21
|
|
|
20
|
|
|
(5
|
)
|
|
(6
|
)
|
||||
Net periodic cost
|
$
|
26
|
|
|
$
|
14
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Pension Benefits
|
|
Postretirement Benefits
|
||||||||||||
Nine Months Ended September 30,
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Components of net periodic cost:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
22
|
|
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
161
|
|
|
157
|
|
|
15
|
|
|
15
|
|
||||
Expected return on plan assets
|
(170
|
)
|
|
(196
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of actuarial loss (gain)
(a)
|
64
|
|
|
60
|
|
|
(16
|
)
|
|
(16
|
)
|
||||
Net periodic cost
|
$
|
77
|
|
|
$
|
44
|
|
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
Cumulative
Translation
Adjustments
|
|
Net Actuarial
Gain (Loss)
and Prior
Service Cost
|
|
Accumulated Other
Comprehensive Loss
|
||||||||
At December 31, 2015
|
$
|
152
|
|
|
$
|
(922
|
)
|
|
|
$
|
(770
|
)
|
|
Other comprehensive income before reclassifications
|
2
|
|
|
—
|
|
|
|
2
|
|
|
|||
Reclassifications to net earnings
|
—
|
|
|
29
|
|
(a)
|
|
29
|
|
|
|||
Net other comprehensive income
|
2
|
|
|
29
|
|
|
|
31
|
|
|
|||
At September 30, 2016
|
$
|
154
|
|
|
$
|
(893
|
)
|
|
|
$
|
(739
|
)
|
|
|
Cumulative
Translation
Adjustments
|
|
Net Actuarial
Gain (Loss)
and Prior
Service Cost
|
|
Accumulated Other
Comprehensive Loss
|
||||||||
At December 31, 2014
|
$
|
157
|
|
|
$
|
(892
|
)
|
|
|
$
|
(735
|
)
|
|
Other comprehensive loss before reclassifications
|
(8
|
)
|
|
—
|
|
|
|
(8
|
)
|
|
|||
Reclassifications to net earnings
|
2
|
|
|
27
|
|
(a)
|
|
29
|
|
|
|||
Net other comprehensive income (loss)
|
(6
|
)
|
|
27
|
|
|
|
21
|
|
|
|||
At September 30, 2015
|
$
|
151
|
|
|
$
|
(865
|
)
|
|
|
$
|
(714
|
)
|
|
(a)
|
Reflects amortization of net actuarial losses. See Note
6
.
|
|
Balance at
|
|
2016
|
|
Balance at
|
||||||||||||
|
December 31, 2015
|
|
Settlements
|
|
September 30, 2016
|
||||||||||||
Entertainment
|
|
$
|
19
|
|
|
|
|
$
|
(13
|
)
|
|
|
|
$
|
6
|
|
|
Local Media
|
|
11
|
|
|
|
|
(5
|
)
|
|
|
|
6
|
|
|
|||
Radio
|
|
23
|
|
|
|
|
(11
|
)
|
|
|
|
12
|
|
|
|||
Corporate
|
|
1
|
|
|
|
|
(1
|
)
|
|
|
|
—
|
|
|
|||
Total
|
|
$
|
54
|
|
|
|
|
$
|
(30
|
)
|
|
|
|
$
|
24
|
|
|
|
Balance at
|
|
2015
|
|
2015
|
|
Balance at
|
||||||||||||||||
|
December 31, 2014
|
|
Charges
|
|
Settlements
|
|
December 31, 2015
|
||||||||||||||||
Entertainment
|
|
$
|
6
|
|
|
|
|
$
|
26
|
|
|
|
|
$
|
(13
|
)
|
|
|
|
$
|
19
|
|
|
Local Media
|
|
5
|
|
|
|
|
19
|
|
|
|
|
(13
|
)
|
|
|
|
11
|
|
|
||||
Radio
|
|
5
|
|
|
|
|
36
|
|
|
|
|
(18
|
)
|
|
|
|
23
|
|
|
||||
Corporate
|
|
2
|
|
|
|
|
—
|
|
|
|
|
(1
|
)
|
|
|
|
1
|
|
|
||||
Total
|
|
$
|
18
|
|
|
|
|
$
|
81
|
|
|
|
|
$
|
(45
|
)
|
|
|
|
$
|
54
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
||||||||||||
|
September 30,
|
|
September 30,
|
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Financial Statement Account
|
||||||||
Non-designated foreign exchange contracts
|
$
|
4
|
|
|
$
|
10
|
|
|
$
|
13
|
|
|
$
|
13
|
|
Other items, net
|
|
|
|
|
|
|
|
|
|
||||||||
Designated interest rate swaps
(a)
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
7
|
|
Interest expense
|
At September 30, 2016
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Foreign currency hedges
|
$
|
—
|
|
|
$
|
21
|
|
|
$
|
—
|
|
|
$
|
21
|
|
Total Assets
|
$
|
—
|
|
|
$
|
21
|
|
|
$
|
—
|
|
|
$
|
21
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Deferred compensation
|
$
|
—
|
|
|
$
|
329
|
|
|
$
|
—
|
|
|
$
|
329
|
|
Foreign currency hedges
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
||||
Total Liabilities
|
$
|
—
|
|
|
$
|
334
|
|
|
$
|
—
|
|
|
$
|
334
|
|
At December 31, 2015
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Foreign currency hedges
|
$
|
—
|
|
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
13
|
|
Total Assets
|
$
|
—
|
|
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
13
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Deferred compensation
|
$
|
—
|
|
|
$
|
312
|
|
|
$
|
—
|
|
|
$
|
312
|
|
Total Liabilities
|
$
|
—
|
|
|
$
|
312
|
|
|
$
|
—
|
|
|
$
|
312
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Entertainment
|
$
|
1,949
|
|
|
$
|
1,932
|
|
|
$
|
6,483
|
|
|
$
|
5,978
|
|
Cable Networks
|
598
|
|
|
526
|
|
|
1,659
|
|
|
1,680
|
|
||||
Publishing
|
226
|
|
|
203
|
|
|
558
|
|
|
547
|
|
||||
Local Media
|
409
|
|
|
376
|
|
|
1,253
|
|
|
1,138
|
|
||||
Radio
|
319
|
|
|
318
|
|
|
898
|
|
|
907
|
|
||||
Corporate/Eliminations
|
(105
|
)
|
|
(98
|
)
|
|
(319
|
)
|
|
(274
|
)
|
||||
Total Revenues
|
$
|
3,396
|
|
|
$
|
3,257
|
|
|
$
|
10,532
|
|
|
$
|
9,976
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Intercompany Revenues:
|
|
|
|
|
|
|
|
||||||||
Entertainment
|
$
|
102
|
|
|
$
|
96
|
|
|
$
|
321
|
|
|
$
|
270
|
|
Local Media
|
2
|
|
|
3
|
|
|
6
|
|
|
7
|
|
||||
Radio
|
6
|
|
|
2
|
|
|
9
|
|
|
5
|
|
||||
Total Intercompany Revenues
|
$
|
110
|
|
|
$
|
101
|
|
|
$
|
336
|
|
|
$
|
282
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Segment Operating Income (Loss):
|
|
|
|
|
|
|
|
||||||||
Entertainment
|
$
|
348
|
|
|
$
|
339
|
|
|
$
|
1,148
|
|
|
$
|
947
|
|
Cable Networks
|
285
|
|
|
246
|
|
|
740
|
|
|
717
|
|
||||
Publishing
|
44
|
|
|
43
|
|
|
83
|
|
|
80
|
|
||||
Local Media
|
122
|
|
|
101
|
|
|
402
|
|
|
338
|
|
||||
Radio
|
77
|
|
|
73
|
|
|
215
|
|
|
195
|
|
||||
Corporate
|
(78
|
)
|
|
(49
|
)
|
|
(245
|
)
|
|
(181
|
)
|
||||
Total Segment Operating Income
|
798
|
|
|
753
|
|
|
2,343
|
|
|
2,096
|
|
||||
Restructuring charges
|
—
|
|
|
—
|
|
|
—
|
|
|
(55
|
)
|
||||
Other operating items, net
(a)
|
—
|
|
|
—
|
|
|
9
|
|
|
19
|
|
||||
Operating income
|
798
|
|
|
753
|
|
|
2,352
|
|
|
2,060
|
|
||||
Interest expense
|
(104
|
)
|
|
(102
|
)
|
|
(304
|
)
|
|
(289
|
)
|
||||
Interest income
|
7
|
|
|
6
|
|
|
22
|
|
|
18
|
|
||||
Other items, net
|
2
|
|
|
(4
|
)
|
|
(5
|
)
|
|
(23
|
)
|
||||
Earnings from continuing operations before income taxes and
equity in loss of investee companies
|
703
|
|
|
653
|
|
|
2,065
|
|
|
1,766
|
|
||||
Provision for income taxes
|
(176
|
)
|
|
(211
|
)
|
|
(612
|
)
|
|
(579
|
)
|
||||
Equity in loss of investee companies, net of tax
|
(13
|
)
|
|
(16
|
)
|
|
(43
|
)
|
|
(35
|
)
|
||||
Net earnings from continuing operations
|
514
|
|
|
426
|
|
|
1,410
|
|
|
1,152
|
|
||||
Loss from discontinued operations
|
(36
|
)
|
|
—
|
|
|
(36
|
)
|
|
—
|
|
||||
Net earnings
|
$
|
478
|
|
|
$
|
426
|
|
|
$
|
1,374
|
|
|
$
|
1,152
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Depreciation and Amortization:
|
|
|
|
|
|
|
|
||||||||
Entertainment
|
$
|
28
|
|
|
$
|
31
|
|
|
$
|
88
|
|
|
$
|
95
|
|
Cable Networks
|
6
|
|
|
5
|
|
|
17
|
|
|
17
|
|
||||
Publishing
|
1
|
|
|
1
|
|
|
4
|
|
|
4
|
|
||||
Local Media
|
11
|
|
|
12
|
|
|
33
|
|
|
37
|
|
||||
Radio
|
7
|
|
|
8
|
|
|
22
|
|
|
23
|
|
||||
Corporate
|
8
|
|
|
8
|
|
|
24
|
|
|
23
|
|
||||
Total Depreciation and Amortization
|
$
|
61
|
|
|
$
|
65
|
|
|
$
|
188
|
|
|
$
|
199
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Stock-based Compensation:
|
|
|
|
|
|
|
|
||||||||
Entertainment
|
$
|
16
|
|
|
$
|
16
|
|
|
$
|
47
|
|
|
$
|
48
|
|
Cable Networks
|
3
|
|
|
3
|
|
|
9
|
|
|
8
|
|
||||
Publishing
|
1
|
|
|
1
|
|
|
3
|
|
|
3
|
|
||||
Local Media
|
3
|
|
|
3
|
|
|
9
|
|
|
9
|
|
||||
Radio
|
4
|
|
|
2
|
|
|
11
|
|
|
12
|
|
||||
Corporate
|
19
|
|
|
14
|
|
|
55
|
|
|
48
|
|
||||
Total Stock-based Compensation
|
$
|
46
|
|
|
$
|
39
|
|
|
$
|
134
|
|
|
$
|
128
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Capital Expenditures:
|
|
|
|
|
|
|
|
||||||||
Entertainment
|
$
|
23
|
|
|
$
|
33
|
|
|
$
|
60
|
|
|
$
|
54
|
|
Cable Networks
|
4
|
|
|
5
|
|
|
8
|
|
|
8
|
|
||||
Publishing
|
1
|
|
|
2
|
|
|
7
|
|
|
4
|
|
||||
Local Media
|
9
|
|
|
10
|
|
|
20
|
|
|
17
|
|
||||
Radio
|
4
|
|
|
5
|
|
|
14
|
|
|
16
|
|
||||
Corporate
|
5
|
|
|
3
|
|
|
16
|
|
|
5
|
|
||||
Total Capital Expenditures
|
$
|
46
|
|
|
$
|
58
|
|
|
$
|
125
|
|
|
$
|
104
|
|
|
At
|
|
At
|
||||||||
|
September 30, 2016
|
|
December 31, 2015
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||
Entertainment
|
|
$
|
11,220
|
|
|
|
|
$
|
10,910
|
|
|
Cable Networks
|
|
2,526
|
|
|
|
|
2,369
|
|
|
||
Publishing
|
|
835
|
|
|
|
|
880
|
|
|
||
Local Media
|
|
3,827
|
|
|
|
|
3,881
|
|
|
||
Radio
|
|
5,167
|
|
|
|
|
5,224
|
|
|
||
Corporate/Eliminations
|
|
249
|
|
|
|
|
476
|
|
|
||
Discontinued operations
|
|
24
|
|
|
|
|
25
|
|
|
||
Total Assets
|
|
$
|
23,848
|
|
|
|
|
$
|
23,765
|
|
|
|
Statement of Operations
|
||||||||||||||||||
|
For the Three Months Ended September 30, 2016
|
||||||||||||||||||
|
CBS Corp.
|
|
CBS
Operations
Inc.
|
|
Non-
Guarantor
Affiliates
|
|
Eliminations
|
|
CBS Corp.
Consolidated
|
||||||||||
Revenues
|
$
|
42
|
|
|
$
|
3
|
|
|
$
|
3,351
|
|
|
$
|
—
|
|
|
$
|
3,396
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating
|
16
|
|
|
1
|
|
|
1,880
|
|
|
—
|
|
|
1,897
|
|
|||||
Selling, general and administrative
|
20
|
|
|
63
|
|
|
557
|
|
|
—
|
|
|
640
|
|
|||||
Depreciation and amortization
|
2
|
|
|
6
|
|
|
53
|
|
|
—
|
|
|
61
|
|
|||||
Total costs and expenses
|
38
|
|
|
70
|
|
|
2,490
|
|
|
—
|
|
|
2,598
|
|
|||||
Operating income (loss)
|
4
|
|
|
(67
|
)
|
|
861
|
|
|
—
|
|
|
798
|
|
|||||
Interest (expense) income, net
|
(129
|
)
|
|
(109
|
)
|
|
141
|
|
|
—
|
|
|
(97
|
)
|
|||||
Other items, net
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|||||
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of investee companies
|
(125
|
)
|
|
(176
|
)
|
|
1,004
|
|
|
—
|
|
|
703
|
|
|||||
Benefit (provision) for income taxes
|
43
|
|
|
59
|
|
|
(278
|
)
|
|
—
|
|
|
(176
|
)
|
|||||
Equity in earnings (loss) of investee companies, net of tax
|
560
|
|
|
327
|
|
|
(13
|
)
|
|
(887
|
)
|
|
(13
|
)
|
|||||
Net earnings from continuing operations
|
478
|
|
|
210
|
|
|
713
|
|
|
(887
|
)
|
|
514
|
|
|||||
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
(36
|
)
|
|
—
|
|
|
(36
|
)
|
|||||
Net earnings
|
$
|
478
|
|
|
$
|
210
|
|
|
$
|
677
|
|
|
$
|
(887
|
)
|
|
$
|
478
|
|
Total comprehensive income
|
$
|
489
|
|
|
$
|
215
|
|
|
$
|
675
|
|
|
$
|
(890
|
)
|
|
$
|
489
|
|
|
Statement of Operations
|
||||||||||||||||||
|
For the Nine Months Ended September 30, 2016
|
||||||||||||||||||
|
CBS Corp.
|
|
CBS
Operations
Inc.
|
|
Non-
Guarantor
Affiliates
|
|
Eliminations
|
|
CBS Corp.
Consolidated
|
||||||||||
Revenues
|
$
|
125
|
|
|
$
|
9
|
|
|
$
|
10,398
|
|
|
$
|
—
|
|
|
$
|
10,532
|
|
Cost and expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating
|
48
|
|
|
4
|
|
|
6,062
|
|
|
—
|
|
|
6,114
|
|
|||||
Selling, general and administrative
|
62
|
|
|
196
|
|
|
1,629
|
|
|
—
|
|
|
1,887
|
|
|||||
Depreciation and amortization
|
4
|
|
|
17
|
|
|
167
|
|
|
—
|
|
|
188
|
|
|||||
Other operating items, net
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
|||||
Total costs and expenses
|
114
|
|
|
217
|
|
|
7,849
|
|
|
—
|
|
|
8,180
|
|
|||||
Operating income (loss)
|
11
|
|
|
(208
|
)
|
|
2,549
|
|
|
—
|
|
|
2,352
|
|
|||||
Interest (expense) income, net
|
(377
|
)
|
|
(319
|
)
|
|
414
|
|
|
—
|
|
|
(282
|
)
|
|||||
Other items, net
|
(2
|
)
|
|
3
|
|
|
(6
|
)
|
|
—
|
|
|
(5
|
)
|
|||||
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of investee companies
|
(368
|
)
|
|
(524
|
)
|
|
2,957
|
|
|
—
|
|
|
2,065
|
|
|||||
Benefit (provision) for income taxes
|
120
|
|
|
170
|
|
|
(902
|
)
|
|
—
|
|
|
(612
|
)
|
|||||
Equity in earnings (loss) of investee companies, net of tax
|
1,622
|
|
|
876
|
|
|
(43
|
)
|
|
(2,498
|
)
|
|
(43
|
)
|
|||||
Net earnings from continuing operations
|
1,374
|
|
|
522
|
|
|
2,012
|
|
|
(2,498
|
)
|
|
1,410
|
|
|||||
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
(36
|
)
|
|
—
|
|
|
(36
|
)
|
|||||
Net earnings
|
$
|
1,374
|
|
|
$
|
522
|
|
|
$
|
1,976
|
|
|
$
|
(2,498
|
)
|
|
$
|
1,374
|
|
Total comprehensive income
|
$
|
1,405
|
|
|
$
|
540
|
|
|
$
|
1,965
|
|
|
$
|
(2,505
|
)
|
|
$
|
1,405
|
|
|
Statement of Operations
|
||||||||||||||||||
|
For the Three Months Ended September 30, 2015
|
||||||||||||||||||
|
CBS Corp.
|
|
CBS
Operations
Inc.
|
|
Non-
Guarantor
Affiliates
|
|
Eliminations
|
|
CBS Corp.
Consolidated
|
||||||||||
Revenues
|
$
|
36
|
|
|
$
|
2
|
|
|
$
|
3,219
|
|
|
$
|
—
|
|
|
$
|
3,257
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating
|
17
|
|
|
1
|
|
|
1,824
|
|
|
—
|
|
|
1,842
|
|
|||||
Selling, general and administrative
|
3
|
|
|
49
|
|
|
545
|
|
|
—
|
|
|
597
|
|
|||||
Depreciation and amortization
|
1
|
|
|
5
|
|
|
59
|
|
|
—
|
|
|
65
|
|
|||||
Total costs and expenses
|
21
|
|
|
55
|
|
|
2,428
|
|
|
—
|
|
|
2,504
|
|
|||||
Operating income (loss)
|
15
|
|
|
(53
|
)
|
|
791
|
|
|
—
|
|
|
753
|
|
|||||
Interest (expense) income, net
|
(125
|
)
|
|
(103
|
)
|
|
132
|
|
|
—
|
|
|
(96
|
)
|
|||||
Other items, net
|
(1
|
)
|
|
6
|
|
|
(9
|
)
|
|
—
|
|
|
(4
|
)
|
|||||
Earnings (loss) before income taxes and equity in earnings (loss) of investee companies
|
(111
|
)
|
|
(150
|
)
|
|
914
|
|
|
—
|
|
|
653
|
|
|||||
Benefit (provision) for income taxes
|
36
|
|
|
48
|
|
|
(295
|
)
|
|
—
|
|
|
(211
|
)
|
|||||
Equity in earnings (loss) of investee companies, net of tax
|
501
|
|
|
338
|
|
|
(16
|
)
|
|
(839
|
)
|
|
(16
|
)
|
|||||
Net earnings
|
$
|
426
|
|
|
$
|
236
|
|
|
$
|
603
|
|
|
$
|
(839
|
)
|
|
$
|
426
|
|
Total comprehensive income
|
$
|
430
|
|
|
$
|
240
|
|
|
$
|
590
|
|
|
$
|
(830
|
)
|
|
$
|
430
|
|
|
Statement of Operations
|
||||||||||||||||||
|
For the Nine Months Ended September 30, 2015
|
||||||||||||||||||
|
CBS Corp.
|
|
CBS
Operations
Inc.
|
|
Non-
Guarantor
Affiliates
|
|
Eliminations
|
|
CBS Corp.
Consolidated
|
||||||||||
Revenues
|
$
|
101
|
|
|
$
|
8
|
|
|
$
|
9,867
|
|
|
$
|
—
|
|
|
$
|
9,976
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating
|
47
|
|
|
4
|
|
|
5,840
|
|
|
—
|
|
|
5,891
|
|
|||||
Selling, general and administrative
|
27
|
|
|
165
|
|
|
1,598
|
|
|
—
|
|
|
1,790
|
|
|||||
Depreciation and amortization
|
4
|
|
|
15
|
|
|
180
|
|
|
—
|
|
|
199
|
|
|||||
Restructuring charges
|
—
|
|
|
—
|
|
|
55
|
|
|
—
|
|
|
55
|
|
|||||
Other operating items, net
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
—
|
|
|
(19
|
)
|
|||||
Total costs and expenses
|
78
|
|
|
184
|
|
|
7,654
|
|
|
—
|
|
|
7,916
|
|
|||||
Operating income (loss)
|
23
|
|
|
(176
|
)
|
|
2,213
|
|
|
—
|
|
|
2,060
|
|
|||||
Interest (expense) income, net
|
(358
|
)
|
|
(300
|
)
|
|
387
|
|
|
—
|
|
|
(271
|
)
|
|||||
Other items, net
|
(1
|
)
|
|
6
|
|
|
(28
|
)
|
|
—
|
|
|
(23
|
)
|
|||||
Earnings (loss) before income taxes and equity in earnings (loss) of investee companies
|
(336
|
)
|
|
(470
|
)
|
|
2,572
|
|
|
—
|
|
|
1,766
|
|
|||||
Benefit (provision) for income taxes
|
109
|
|
|
152
|
|
|
(840
|
)
|
|
—
|
|
|
(579
|
)
|
|||||
Equity in earnings (loss) of investee companies, net of tax
|
1,379
|
|
|
802
|
|
|
(35
|
)
|
|
(2,181
|
)
|
|
(35
|
)
|
|||||
Net earnings
|
$
|
1,152
|
|
|
$
|
484
|
|
|
$
|
1,697
|
|
|
$
|
(2,181
|
)
|
|
$
|
1,152
|
|
Total comprehensive income
|
$
|
1,173
|
|
|
$
|
487
|
|
|
$
|
1,705
|
|
|
$
|
(2,192
|
)
|
|
$
|
1,173
|
|
|
Balance Sheet
|
||||||||||||||||||
|
At September 30, 2016
|
||||||||||||||||||
|
CBS Corp.
|
|
CBS
Operations
Inc.
|
|
Non-
Guarantor
Affiliates
|
|
Eliminations
|
|
CBS Corp.
Consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
54
|
|
|
$
|
1
|
|
|
$
|
124
|
|
|
$
|
—
|
|
|
$
|
179
|
|
Receivables, net
|
20
|
|
|
2
|
|
|
3,326
|
|
|
—
|
|
|
3,348
|
|
|||||
Programming and other inventory
|
4
|
|
|
3
|
|
|
1,452
|
|
|
—
|
|
|
1,459
|
|
|||||
Prepaid expenses and other current assets
|
93
|
|
|
39
|
|
|
375
|
|
|
(36
|
)
|
|
471
|
|
|||||
Total current assets
|
171
|
|
|
45
|
|
|
5,277
|
|
|
(36
|
)
|
|
5,457
|
|
|||||
Property and equipment
|
47
|
|
|
184
|
|
|
3,032
|
|
|
—
|
|
|
3,263
|
|
|||||
Less accumulated depreciation and amortization
|
23
|
|
|
135
|
|
|
1,760
|
|
|
—
|
|
|
1,918
|
|
|||||
Net property and equipment
|
24
|
|
|
49
|
|
|
1,272
|
|
|
—
|
|
|
1,345
|
|
|||||
Programming and other inventory
|
6
|
|
|
7
|
|
|
2,224
|
|
|
—
|
|
|
2,237
|
|
|||||
Goodwill
|
98
|
|
|
62
|
|
|
6,371
|
|
|
—
|
|
|
6,531
|
|
|||||
Intangible assets
|
—
|
|
|
—
|
|
|
5,499
|
|
|
—
|
|
|
5,499
|
|
|||||
Investments in consolidated subsidiaries
|
44,372
|
|
|
13,652
|
|
|
—
|
|
|
(58,024
|
)
|
|
—
|
|
|||||
Other assets
|
153
|
|
|
11
|
|
|
2,615
|
|
|
—
|
|
|
2,779
|
|
|||||
Intercompany
|
—
|
|
|
1,901
|
|
|
25,528
|
|
|
(27,429
|
)
|
|
—
|
|
|||||
Total Assets
|
$
|
44,824
|
|
|
$
|
15,727
|
|
|
$
|
48,786
|
|
|
$
|
(85,489
|
)
|
|
$
|
23,848
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
150
|
|
|
$
|
—
|
|
|
$
|
153
|
|
Participants’ share and royalties payable
|
—
|
|
|
—
|
|
|
979
|
|
|
—
|
|
|
979
|
|
|||||
Program rights
|
4
|
|
|
4
|
|
|
365
|
|
|
—
|
|
|
373
|
|
|||||
Commercial paper
|
33
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|||||
Current portion of long-term debt
|
6
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
22
|
|
|||||
Accrued expenses and other current liabilities
|
363
|
|
|
228
|
|
|
983
|
|
|
(36
|
)
|
|
1,538
|
|
|||||
Total current liabilities
|
407
|
|
|
234
|
|
|
2,493
|
|
|
(36
|
)
|
|
3,098
|
|
|||||
Long-term debt
|
8,797
|
|
|
—
|
|
|
105
|
|
|
—
|
|
|
8,902
|
|
|||||
Other liabilities
|
2,843
|
|
|
244
|
|
|
3,413
|
|
|
—
|
|
|
6,500
|
|
|||||
Intercompany
|
27,429
|
|
|
—
|
|
|
—
|
|
|
(27,429
|
)
|
|
—
|
|
|||||
Stockholders’ Equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred stock
|
—
|
|
|
—
|
|
|
126
|
|
|
(126
|
)
|
|
—
|
|
|||||
Common stock
|
1
|
|
|
123
|
|
|
590
|
|
|
(713
|
)
|
|
1
|
|
|||||
Additional paid-in capital
|
43,935
|
|
|
—
|
|
|
60,894
|
|
|
(60,894
|
)
|
|
43,935
|
|
|||||
Retained earnings (deficit)
|
(19,144
|
)
|
|
15,435
|
|
|
(14,105
|
)
|
|
(1,330
|
)
|
|
(19,144
|
)
|
|||||
Accumulated other comprehensive income (loss)
|
(739
|
)
|
|
22
|
|
|
70
|
|
|
(92
|
)
|
|
(739
|
)
|
|||||
|
24,053
|
|
|
15,580
|
|
|
47,575
|
|
|
(63,155
|
)
|
|
24,053
|
|
|||||
Less treasury stock, at cost
|
18,705
|
|
|
331
|
|
|
4,800
|
|
|
(5,131
|
)
|
|
18,705
|
|
|||||
Total Stockholders’ Equity
|
5,348
|
|
|
15,249
|
|
|
42,775
|
|
|
(58,024
|
)
|
|
5,348
|
|
|||||
Total Liabilities and Stockholders’ Equity
|
$
|
44,824
|
|
|
$
|
15,727
|
|
|
$
|
48,786
|
|
|
$
|
(85,489
|
)
|
|
$
|
23,848
|
|
|
Balance Sheet
|
||||||||||||||||||
|
At December 31, 2015
|
||||||||||||||||||
|
CBS Corp.
|
|
CBS
Operations
Inc.
|
|
Non-
Guarantor
Affiliates
|
|
Eliminations
|
|
CBS Corp.
Consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
267
|
|
|
$
|
1
|
|
|
$
|
55
|
|
|
$
|
—
|
|
|
$
|
323
|
|
Receivables, net
|
28
|
|
|
2
|
|
|
3,598
|
|
|
—
|
|
|
3,628
|
|
|||||
Programming and other inventory
|
3
|
|
|
3
|
|
|
1,265
|
|
|
—
|
|
|
1,271
|
|
|||||
Prepaid expenses and other current assets
|
192
|
|
|
26
|
|
|
337
|
|
|
(30
|
)
|
|
525
|
|
|||||
Total current assets
|
490
|
|
|
32
|
|
|
5,255
|
|
|
(30
|
)
|
|
5,747
|
|
|||||
Property and equipment
|
46
|
|
|
180
|
|
|
3,017
|
|
|
—
|
|
|
3,243
|
|
|||||
Less accumulated depreciation and amortization
|
20
|
|
|
118
|
|
|
1,700
|
|
|
—
|
|
|
1,838
|
|
|||||
Net property and equipment
|
26
|
|
|
62
|
|
|
1,317
|
|
|
—
|
|
|
1,405
|
|
|||||
Programming and other inventory
|
6
|
|
|
9
|
|
|
1,942
|
|
|
—
|
|
|
1,957
|
|
|||||
Goodwill
|
98
|
|
|
62
|
|
|
6,321
|
|
|
—
|
|
|
6,481
|
|
|||||
Intangible assets
|
—
|
|
|
—
|
|
|
5,514
|
|
|
—
|
|
|
5,514
|
|
|||||
Investments in consolidated subsidiaries
|
42,744
|
|
|
12,775
|
|
|
—
|
|
|
(55,519
|
)
|
|
—
|
|
|||||
Other assets
|
163
|
|
|
11
|
|
|
2,487
|
|
|
—
|
|
|
2,661
|
|
|||||
Intercompany
|
—
|
|
|
2,248
|
|
|
23,988
|
|
|
(26,236
|
)
|
|
—
|
|
|||||
Total Assets
|
$
|
43,527
|
|
|
$
|
15,199
|
|
|
$
|
46,824
|
|
|
$
|
(81,785
|
)
|
|
$
|
23,765
|
|
Liabilities and Stockholders
’
Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
1
|
|
|
$
|
4
|
|
|
$
|
187
|
|
|
$
|
—
|
|
|
$
|
192
|
|
Participants’ share and royalties payable
|
—
|
|
|
—
|
|
|
1,013
|
|
|
—
|
|
|
1,013
|
|
|||||
Program rights
|
4
|
|
|
4
|
|
|
366
|
|
|
—
|
|
|
374
|
|
|||||
Current portion of long-term debt
|
206
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
222
|
|
|||||
Accrued expenses and other current liabilities
|
418
|
|
|
230
|
|
|
1,141
|
|
|
(30
|
)
|
|
1,759
|
|
|||||
Total current liabilities
|
629
|
|
|
238
|
|
|
2,723
|
|
|
(30
|
)
|
|
3,560
|
|
|||||
Long-term debt
|
8,113
|
|
|
—
|
|
|
113
|
|
|
—
|
|
|
8,226
|
|
|||||
Other liabilities
|
2,986
|
|
|
252
|
|
|
3,178
|
|
|
—
|
|
|
6,416
|
|
|||||
Intercompany
|
26,236
|
|
|
—
|
|
|
—
|
|
|
(26,236
|
)
|
|
—
|
|
|||||
Stockholders’ Equity:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Preferred stock
|
—
|
|
|
—
|
|
|
126
|
|
|
(126
|
)
|
|
—
|
|
|||||
Common stock
|
1
|
|
|
123
|
|
|
590
|
|
|
(713
|
)
|
|
1
|
|
|||||
Additional paid-in capital
|
44,055
|
|
|
—
|
|
|
60,894
|
|
|
(60,894
|
)
|
|
44,055
|
|
|||||
Retained earnings (deficit)
|
(20,518
|
)
|
|
14,913
|
|
|
(16,081
|
)
|
|
1,168
|
|
|
(20,518
|
)
|
|||||
Accumulated other comprehensive income (loss)
|
(770
|
)
|
|
4
|
|
|
81
|
|
|
(85
|
)
|
|
(770
|
)
|
|||||
|
22,768
|
|
|
15,040
|
|
|
45,610
|
|
|
(60,650
|
)
|
|
22,768
|
|
|||||
Less treasury stock, at cost
|
17,205
|
|
|
331
|
|
|
4,800
|
|
|
(5,131
|
)
|
|
17,205
|
|
|||||
Total Stockholders’ Equity
|
5,563
|
|
|
14,709
|
|
|
40,810
|
|
|
(55,519
|
)
|
|
5,563
|
|
|||||
Total Liabilities and Stockholders’ Equity
|
$
|
43,527
|
|
|
$
|
15,199
|
|
|
$
|
46,824
|
|
|
$
|
(81,785
|
)
|
|
$
|
23,765
|
|
|
Statement of Cash Flows
|
||||||||||||||||||
|
For the Nine Months Ended September 30, 2016
|
||||||||||||||||||
|
CBS Corp.
|
|
CBS
Operations
Inc.
|
|
Non-
Guarantor
Affiliates
|
|
Eliminations
|
|
CBS Corp.
Consolidated
|
||||||||||
Net cash flow (used for) provided by operating activities
|
$
|
(696
|
)
|
|
$
|
(146
|
)
|
|
$
|
2,148
|
|
|
$
|
—
|
|
|
$
|
1,306
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Acquisitions
|
—
|
|
|
—
|
|
|
(51
|
)
|
|
—
|
|
|
(51
|
)
|
|||||
Capital expenditures
|
—
|
|
|
(16
|
)
|
|
(109
|
)
|
|
—
|
|
|
(125
|
)
|
|||||
Investments in and advances to investee companies
|
—
|
|
|
—
|
|
|
(44
|
)
|
|
—
|
|
|
(44
|
)
|
|||||
Proceeds from dispositions
|
(4
|
)
|
|
—
|
|
|
32
|
|
|
—
|
|
|
28
|
|
|||||
Other investing activities
|
7
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
11
|
|
|||||
Net cash flow provided by (used for) investing activities
|
3
|
|
|
(16
|
)
|
|
(168
|
)
|
|
—
|
|
|
(181
|
)
|
|||||
Financing Activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from short-term debt borrowings, net
|
33
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|||||
Proceeds from issuance of senior notes
|
685
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
685
|
|
|||||
Repayment of senior debentures
|
(199
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(199
|
)
|
|||||
Payment of capital lease obligations
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
(13
|
)
|
|||||
Dividends
|
(209
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(209
|
)
|
|||||
Purchase of Company common stock
|
(1,534
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,534
|
)
|
|||||
Payment of payroll taxes in lieu of issuing
shares for stock-based compensation
|
(57
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(57
|
)
|
|||||
Proceeds from exercise of stock options
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|||||
Excess tax benefit from stock-based compensation
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|||||
Other financing activities
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Increase (decrease) in intercompany payables
|
1,736
|
|
|
162
|
|
|
(1,898
|
)
|
|
—
|
|
|
—
|
|
|||||
Net cash flow provided by (used for) financing activities
|
480
|
|
|
162
|
|
|
(1,911
|
)
|
|
—
|
|
|
(1,269
|
)
|
|||||
Net (decrease) increase in cash and cash equivalents
|
(213
|
)
|
|
—
|
|
|
69
|
|
|
—
|
|
|
(144
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
267
|
|
|
1
|
|
|
55
|
|
|
—
|
|
|
323
|
|
|||||
Cash and cash equivalents at end of period
|
$
|
54
|
|
|
$
|
1
|
|
|
$
|
124
|
|
|
$
|
—
|
|
|
$
|
179
|
|
|
Statement of Cash Flows
|
||||||||||||||||||
|
For the Nine Months Ended September 30, 2015
|
||||||||||||||||||
|
CBS Corp.
|
|
CBS
Operations
Inc.
|
|
Non-
Guarantor
Affiliates
|
|
Eliminations
|
|
CBS Corp.
Consolidated
|
||||||||||
Net cash flow (used for) provided by operating activities
|
$
|
(557
|
)
|
|
$
|
(183
|
)
|
|
$
|
1,363
|
|
|
$
|
—
|
|
|
$
|
623
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Acquisitions
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
|||||
Capital expenditures
|
—
|
|
|
(5
|
)
|
|
(99
|
)
|
|
—
|
|
|
(104
|
)
|
|||||
Investments in and advances to investee companies
|
—
|
|
|
—
|
|
|
(58
|
)
|
|
—
|
|
|
(58
|
)
|
|||||
Proceeds from dispositions
|
—
|
|
|
—
|
|
|
75
|
|
|
—
|
|
|
75
|
|
|||||
Other investing activities
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|||||
Net cash flow used for investing activities from continuing operations
|
(8
|
)
|
|
(5
|
)
|
|
(89
|
)
|
|
—
|
|
|
(102
|
)
|
|||||
Net cash flow used for investing activities from discontinued operations
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|||||
Net cash flow used for investing activities
|
(12
|
)
|
|
(5
|
)
|
|
(89
|
)
|
|
—
|
|
|
(106
|
)
|
|||||
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Repayments of short-term debt borrowings, net
|
(313
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(313
|
)
|
|||||
Proceeds from issuance of senior notes
|
1,959
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,959
|
|
|||||
Payment of capital lease obligations
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
(13
|
)
|
|||||
Dividends
|
(228
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(228
|
)
|
|||||
Purchase of Company common stock
|
(2,345
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,345
|
)
|
|||||
Payment of payroll taxes in lieu of issuing
shares for stock-based compensation
|
(96
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(96
|
)
|
|||||
Proceeds from exercise of stock options
|
137
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
137
|
|
|||||
Excess tax benefit from stock-based compensation
|
87
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
87
|
|
|||||
Increase (decrease) in intercompany payables
|
1,353
|
|
|
188
|
|
|
(1,541
|
)
|
|
—
|
|
|
—
|
|
|||||
Net cash flow provided by (used for) financing activities
|
554
|
|
|
188
|
|
|
(1,554
|
)
|
|
—
|
|
|
(812
|
)
|
|||||
Net decrease in cash and cash equivalents
|
(15
|
)
|
|
—
|
|
|
(280
|
)
|
|
—
|
|
|
(295
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
63
|
|
|
1
|
|
|
364
|
|
|
—
|
|
|
428
|
|
|||||
Cash and cash equivalents at end of period
|
$
|
48
|
|
|
$
|
1
|
|
|
$
|
84
|
|
|
$
|
—
|
|
|
$
|
133
|
|
Item 2.
|
Management’s Discussion and Analysis of Results of Operations and Financial Condition.
|
|
(Tabular dollars in millions, except per share amounts)
|
Consolidated results of operations
|
|
|
|
|
Increase/(Decrease)
|
|
|||||||||
Three Months Ended September 30,
|
2016
|
|
2015
|
|
$
|
|
%
|
|
|||||||
Revenues
|
$
|
3,396
|
|
|
$
|
3,257
|
|
|
$
|
139
|
|
|
4
|
%
|
|
Operating income
|
$
|
798
|
|
|
$
|
753
|
|
|
$
|
45
|
|
|
6
|
%
|
|
Net earnings from continuing operations
|
$
|
514
|
|
|
$
|
426
|
|
|
$
|
88
|
|
|
21
|
%
|
|
Adjusted net earnings from continuing operations
(a)
|
$
|
467
|
|
|
$
|
426
|
|
|
$
|
41
|
|
|
10
|
%
|
|
Diluted EPS from continuing operations
|
$
|
1.15
|
|
|
$
|
.88
|
|
|
$
|
.27
|
|
|
31
|
%
|
|
Adjusted diluted EPS from continuing operations
(a)
|
$
|
1.05
|
|
|
$
|
.88
|
|
|
$
|
.17
|
|
|
19
|
%
|
|
Consolidated results of operations
|
|
|
|
|
Increase/(Decrease)
|
|
|||||||||
Nine Months Ended September 30,
|
2016
|
|
2015
|
|
$
|
|
%
|
|
|||||||
Revenues
|
$
|
10,532
|
|
|
$
|
9,976
|
|
|
$
|
556
|
|
|
6
|
%
|
|
Operating income
|
$
|
2,352
|
|
|
$
|
2,060
|
|
|
$
|
292
|
|
|
14
|
%
|
|
Adjusted operating income
(a)
|
$
|
2,343
|
|
|
$
|
2,096
|
|
|
$
|
247
|
|
|
12
|
%
|
|
Net earnings from continuing operations
|
$
|
1,410
|
|
|
$
|
1,152
|
|
|
$
|
258
|
|
|
22
|
%
|
|
Adjusted net earnings from continuing operations
(a)
|
$
|
1,364
|
|
|
$
|
1,182
|
|
|
$
|
182
|
|
|
15
|
%
|
|
Diluted EPS from continuing operations
|
$
|
3.10
|
|
|
$
|
2.33
|
|
|
$
|
.77
|
|
|
33
|
%
|
|
Adjusted diluted EPS from continuing operations
(a)
|
$
|
3.00
|
|
|
$
|
2.39
|
|
|
$
|
.61
|
|
|
26
|
%
|
|
|
Nine Months Ended September 30,
|
|
||||||
|
2016
|
|
2015
|
|
||||
Operating income
|
$
|
2,352
|
|
|
$
|
2,060
|
|
|
Exclude:
|
|
|
|
|
||||
Restructuring charges
|
—
|
|
|
55
|
|
|
||
Other operating items, net
(a)
|
(9
|
)
|
|
(19
|
)
|
|
||
Adjusted operating income
|
$
|
2,343
|
|
|
$
|
2,096
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||||||
Net earnings from continuing operations
|
$
|
514
|
|
|
$
|
426
|
|
|
$
|
1,410
|
|
|
$
|
1,152
|
|
|
Exclude:
|
|
|
|
|
|
|
|
|
||||||||
Restructuring charges (net of tax of
$22 million in 2015)
|
—
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|
||||
Other operating items, net (net of tax of
$4 million in 2016 and $16 million in 2015)
(a)
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(3
|
)
|
|
||||
Write-down of an equity investment
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
||||
Discrete tax item
(b)
|
(47
|
)
|
|
—
|
|
|
(47
|
)
|
|
—
|
|
|
||||
Adjusted net earnings from continuing operations
|
$
|
467
|
|
|
$
|
426
|
|
|
$
|
1,364
|
|
|
$
|
1,182
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||||||
Diluted EPS from continuing operations
|
$
|
1.15
|
|
|
$
|
.88
|
|
|
$
|
3.10
|
|
|
$
|
2.33
|
|
|
Exclude:
|
|
|
|
|
|
|
|
|
||||||||
Restructuring charges
|
—
|
|
|
—
|
|
|
—
|
|
|
.07
|
|
|
||||
Other operating items, net
(a)
|
—
|
|
|
—
|
|
|
(.01
|
)
|
|
(.01
|
)
|
|
||||
Write-down of an equity investment
|
—
|
|
|
—
|
|
|
.01
|
|
|
—
|
|
|
||||
Discrete tax item
(b)
|
(.11
|
)
|
|
—
|
|
|
(.10
|
)
|
|
—
|
|
|
||||
Adjusted diluted EPS from continuing operations
(c)
|
$
|
1.05
|
|
|
$
|
.88
|
|
|
$
|
3.00
|
|
|
$
|
2.39
|
|
|
|
Three Months Ended September 30,
|
|
|||||||||||||||||||
|
|
|
% of Total
Revenues
|
|
|
|
% of Total
Revenues
|
|
Increase/(Decrease)
|
|
|||||||||||
Revenues by Type
|
2016
|
|
|
2015
|
|
|
$
|
|
%
|
|
|||||||||||
Advertising
|
$
|
1,469
|
|
|
43
|
%
|
|
$
|
1,481
|
|
|
46
|
%
|
|
$
|
(12
|
)
|
|
(1
|
)%
|
|
Content licensing and distribution
|
1,108
|
|
|
33
|
|
|
1,046
|
|
|
32
|
|
|
62
|
|
|
6
|
|
|
|||
Affiliate and subscription fees
|
753
|
|
|
22
|
|
|
664
|
|
|
20
|
|
|
89
|
|
|
13
|
|
|
|||
Other
|
66
|
|
|
2
|
|
|
66
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
|||
Total Revenues
|
$
|
3,396
|
|
|
100
|
%
|
|
$
|
3,257
|
|
|
100
|
%
|
|
$
|
139
|
|
|
4
|
%
|
|
|
Nine Months Ended September 30,
|
|
|||||||||||||||||||
|
|
|
% of Total
Revenues
|
|
|
|
% of Total
Revenues
|
|
Increase/(Decrease)
|
|
|||||||||||
Revenues by Type
|
2016
|
|
|
2015
|
|
|
$
|
|
%
|
|
|||||||||||
Advertising
|
$
|
5,363
|
|
|
51
|
%
|
|
$
|
4,859
|
|
|
49
|
%
|
|
$
|
504
|
|
|
10
|
%
|
|
Content licensing and distribution
|
2,780
|
|
|
26
|
|
|
2,889
|
|
|
29
|
|
|
(109
|
)
|
|
(4
|
)
|
|
|||
Affiliate and subscription fees
|
2,208
|
|
|
21
|
|
|
2,044
|
|
|
20
|
|
|
164
|
|
|
8
|
|
|
|||
Other
|
181
|
|
|
2
|
|
|
184
|
|
|
2
|
|
|
(3
|
)
|
|
(2
|
)
|
|
|||
Total Revenues
|
$
|
10,532
|
|
|
100
|
%
|
|
$
|
9,976
|
|
|
100
|
%
|
|
$
|
556
|
|
|
6
|
%
|
|
|
Three Months Ended September 30,
|
|
|||||||||||||||||||
|
|
|
% of Operating Expenses
|
|
|
|
% of Operating Expenses
|
|
Increase/(Decrease)
|
|
|||||||||||
Operating Expenses by Type
|
2016
|
|
|
2015
|
|
|
$
|
|
%
|
|
|||||||||||
Programming
|
$
|
526
|
|
|
28
|
%
|
|
$
|
518
|
|
|
28
|
%
|
|
$
|
8
|
|
|
2
|
%
|
|
Production
|
706
|
|
|
37
|
|
|
683
|
|
|
37
|
|
|
23
|
|
|
3
|
|
|
|||
Participation, distribution and royalty
|
291
|
|
|
15
|
|
|
271
|
|
|
15
|
|
|
20
|
|
|
7
|
|
|
|||
Other
|
374
|
|
|
20
|
|
|
370
|
|
|
20
|
|
|
4
|
|
|
1
|
|
|
|||
Total Operating Expenses
|
$
|
1,897
|
|
|
100
|
%
|
|
$
|
1,842
|
|
|
100
|
%
|
|
$
|
55
|
|
|
3
|
%
|
|
|
Nine Months Ended September 30,
|
|
|||||||||||||||||||
|
|
|
% of Operating Expenses
|
|
|
|
% of Operating Expenses
|
|
Increase/(Decrease)
|
|
|||||||||||
Operating Expenses by Type
|
2016
|
|
|
2015
|
|
|
$
|
|
%
|
|
|||||||||||
Programming
|
$
|
2,182
|
|
|
36
|
%
|
|
$
|
2,033
|
|
|
34
|
%
|
|
$
|
149
|
|
|
7
|
%
|
|
Production
|
2,053
|
|
|
33
|
|
|
1,940
|
|
|
33
|
|
|
113
|
|
|
6
|
|
|
|||
Participation, distribution and royalty
|
788
|
|
|
13
|
|
|
817
|
|
|
14
|
|
|
(29
|
)
|
|
(4
|
)
|
|
|||
Other
|
1,091
|
|
|
18
|
|
|
1,101
|
|
|
19
|
|
|
(10
|
)
|
|
(1
|
)
|
|
|||
Total Operating Expenses
|
$
|
6,114
|
|
|
100
|
%
|
|
$
|
5,891
|
|
|
100
|
%
|
|
$
|
223
|
|
|
4
|
%
|
|
|
Three Months Ended September 30,
|
||||||||||||||||||||||
|
2016
|
|
% of Revenues
|
|
2015
|
|
% of Revenues
|
|
Increase/(Decrease)
|
|
|||||||||||||
Selling, general and administrative expenses
|
$
|
640
|
|
|
|
19
|
%
|
|
|
$
|
597
|
|
|
|
18
|
%
|
|
|
|
7
|
%
|
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||
|
2016
|
|
% of Revenues
|
|
2015
|
|
% of Revenues
|
|
Increase/(Decrease)
|
|
|||||||||||||
Selling, general and administrative expenses
|
$
|
1,887
|
|
|
|
18
|
%
|
|
|
$
|
1,790
|
|
|
|
18
|
%
|
|
|
|
5
|
%
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
||||||||||||||||||||||
|
2016
|
|
2015
|
|
Increase/(Decrease)
|
|
2016
|
|
2015
|
|
Increase/(Decrease)
|
|
||||||||||||||
Depreciation and amortization
|
$
|
61
|
|
|
$
|
65
|
|
|
|
(6
|
)%
|
|
|
$
|
188
|
|
|
$
|
199
|
|
|
|
(6
|
)%
|
|
|
|
Nine Months Ended September 30,
|
|
|||||||||||
|
2016
|
|
2015
|
|
Increase/(Decrease)
|
|
|||||||
Other operating items, net
|
$
|
(9
|
)
|
|
$
|
(19
|
)
|
|
|
(53
|
)%
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
||||||||||||||||||||||
|
2016
|
|
2015
|
|
Increase/(Decrease)
|
|
2016
|
|
2015
|
|
Increase/(Decrease)
|
|
||||||||||||||
Interest expense
|
$
|
(104
|
)
|
|
$
|
(102
|
)
|
|
|
2
|
%
|
|
|
$
|
(304
|
)
|
|
$
|
(289
|
)
|
|
|
5
|
%
|
|
|
Interest income
|
$
|
7
|
|
|
$
|
6
|
|
|
|
17
|
%
|
|
|
$
|
22
|
|
|
$
|
18
|
|
|
|
22
|
%
|
|
|
|
At September 30,
|
|||||||||||||||||
|
|
|
Weighted Average
|
|
|
|
Weighted Average
|
|
||||||||||
|
2016
|
|
Interest Rate
|
|
2015
|
|
Interest Rate
|
|
||||||||||
Total long-term debt
|
$
|
8,849
|
|
|
|
4.47
|
%
|
|
|
$
|
8,409
|
|
|
|
4.68
|
%
|
|
|
Commercial paper
|
$
|
33
|
|
|
|
0.75
|
%
|
|
|
$
|
303
|
|
|
|
0.46
|
%
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|||||||||||||||||||||
|
2016
|
|
2015
|
|
Increase/(Decrease)
|
|
2016
|
|
2015
|
|
Increase/(Decrease)
|
|
|||||||||||||
Other items, net
|
$
|
2
|
|
|
$
|
(4
|
)
|
|
|
n/m
|
|
|
$
|
(5
|
)
|
|
$
|
(23
|
)
|
|
|
78
|
%
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
||||||||||||||||||||||
|
2016
|
|
2015
|
|
Increase/(Decrease)
|
|
2016
|
|
2015
|
|
Increase/(Decrease)
|
|
||||||||||||||
Tax provision
|
$
|
176
|
|
|
$
|
211
|
|
|
|
(17
|
)%
|
|
|
$
|
612
|
|
|
$
|
579
|
|
|
|
6
|
%
|
|
|
Effective tax rate
|
25.0
|
%
|
|
32.3
|
%
|
|
|
|
|
|
29.6
|
%
|
|
32.8
|
%
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
||||||||||||||||||||||
|
2016
|
|
2015
|
|
Increase/(Decrease)
|
|
2016
|
|
2015
|
|
Increase/(Decrease)
|
|
||||||||||||||
Equity in loss of investee
companies, net of tax
|
$
|
(13
|
)
|
|
$
|
(16
|
)
|
|
|
(19
|
)%
|
|
|
$
|
(43
|
)
|
|
$
|
(35
|
)
|
|
|
23
|
%
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
||||||||||||||||||||||
|
2016
|
|
2015
|
|
Increase/(Decrease)
|
|
2016
|
|
2015
|
|
Increase/(Decrease)
|
|
||||||||||||||
Net earnings from continuing
operations
|
$
|
514
|
|
|
$
|
426
|
|
|
|
21
|
%
|
|
|
$
|
1,410
|
|
|
$
|
1,152
|
|
|
|
22
|
%
|
|
|
Diluted EPS from continuing
operations
|
$
|
1.15
|
|
|
$
|
.88
|
|
|
|
31
|
%
|
|
|
$
|
3.10
|
|
|
$
|
2.33
|
|
|
|
33
|
%
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
||||||||||||||||||||||
|
2016
|
|
2015
|
|
Increase/(Decrease)
|
|
2016
|
|
2015
|
|
Increase/(Decrease)
|
|
||||||||||||||
Net earnings
|
$
|
478
|
|
|
$
|
426
|
|
|
|
12
|
%
|
|
|
$
|
1,374
|
|
|
$
|
1,152
|
|
|
|
19
|
%
|
|
|
Diluted EPS
|
$
|
1.07
|
|
|
$
|
.88
|
|
|
|
22
|
%
|
|
|
$
|
3.02
|
|
|
$
|
2.33
|
|
|
|
30
|
%
|
|
|
|
Three Months Ended September 30,
|
|||||||||||||||||||||
|
|
% of Total
Revenues
|
|
|
% of Total
Revenues
|
Increase/(Decrease)
|
|
|||||||||||||||
|
2016
|
|
2015
|
$
|
|
%
|
|
|||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Entertainment
|
$
|
1,949
|
|
|
57
|
%
|
|
|
$
|
1,932
|
|
|
59
|
%
|
|
$
|
17
|
|
|
1
|
%
|
|
Cable Networks
|
598
|
|
|
18
|
|
|
|
526
|
|
|
16
|
|
|
72
|
|
|
14
|
|
|
|||
Publishing
|
226
|
|
|
7
|
|
|
|
203
|
|
|
6
|
|
|
23
|
|
|
11
|
|
|
|||
Local Media
|
409
|
|
|
12
|
|
|
|
376
|
|
|
12
|
|
|
33
|
|
|
9
|
|
|
|||
Radio
|
319
|
|
|
9
|
|
|
|
318
|
|
|
10
|
|
|
1
|
|
|
—
|
|
|
|||
Corporate/Eliminations
|
(105
|
)
|
|
(3
|
)
|
|
|
(98
|
)
|
|
(3
|
)
|
|
(7
|
)
|
|
(7
|
)
|
|
|||
Total Revenues
|
$
|
3,396
|
|
|
100
|
%
|
|
|
$
|
3,257
|
|
|
100
|
%
|
|
$
|
139
|
|
|
4
|
%
|
|
|
Three Months Ended September 30,
|
|||||||||||||||||||||
|
|
% of Total
Operating
Income
|
|
|
% of Total
Operating
Income
|
|
|
|||||||||||||||
|
|
|
|
Increase/(Decrease)
|
|
|||||||||||||||||
|
2016
|
|
2015
|
$
|
|
%
|
|
|||||||||||||||
Segment Operating Income (Loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Entertainment
|
$
|
348
|
|
|
44
|
%
|
|
|
$
|
339
|
|
|
45
|
%
|
|
$
|
9
|
|
|
3
|
%
|
|
Cable Networks
|
285
|
|
|
36
|
|
|
|
246
|
|
|
33
|
|
|
39
|
|
|
16
|
|
|
|||
Publishing
|
44
|
|
|
5
|
|
|
|
43
|
|
|
6
|
|
|
1
|
|
|
2
|
|
|
|||
Local Media
|
122
|
|
|
15
|
|
|
|
101
|
|
|
13
|
|
|
21
|
|
|
21
|
|
|
|||
Radio
|
77
|
|
|
10
|
|
|
|
73
|
|
|
10
|
|
|
4
|
|
|
5
|
|
|
|||
Corporate
|
(78
|
)
|
|
(10
|
)
|
|
|
(49
|
)
|
|
(7
|
)
|
|
(29
|
)
|
|
(59
|
)
|
|
|||
Total Operating Income
|
$
|
798
|
|
|
100
|
%
|
|
|
$
|
753
|
|
|
100
|
%
|
|
$
|
45
|
|
|
6
|
%
|
|
|
Three Months Ended September 30,
|
||||||||||||||
|
|
|
Increase/(Decrease)
|
|
|||||||||||
|
2016
|
|
2015
|
|
$
|
|
%
|
|
|||||||
Depreciation and Amortization:
|
|
|
|
|
|
|
|
|
|||||||
Entertainment
|
$
|
28
|
|
|
$
|
31
|
|
|
$
|
(3
|
)
|
|
(10
|
)%
|
|
Cable Networks
|
6
|
|
|
5
|
|
|
1
|
|
|
20
|
|
|
|||
Publishing
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
|||
Local Media
|
11
|
|
|
12
|
|
|
(1
|
)
|
|
(8
|
)
|
|
|||
Radio
|
7
|
|
|
8
|
|
|
(1
|
)
|
|
(13
|
)
|
|
|||
Corporate
|
8
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
|||
Total Depreciation and Amortization
|
$
|
61
|
|
|
$
|
65
|
|
|
$
|
(4
|
)
|
|
(6
|
)%
|
|
|
Nine Months Ended September 30,
|
|||||||||||||||||||||
|
|
% of Total
Revenues
|
|
|
% of Total
Revenues
|
Increase/(Decrease)
|
|
|||||||||||||||
|
2016
|
|
2015
|
$
|
|
%
|
|
|||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Entertainment
|
$
|
6,483
|
|
|
62
|
%
|
|
|
$
|
5,978
|
|
|
60
|
%
|
|
$
|
505
|
|
|
8
|
%
|
|
Cable Networks
|
1,659
|
|
|
16
|
|
|
|
1,680
|
|
|
17
|
|
|
(21
|
)
|
|
(1
|
)
|
|
|||
Publishing
|
558
|
|
|
5
|
|
|
|
547
|
|
|
5
|
|
|
11
|
|
|
2
|
|
|
|||
Local Media
|
1,253
|
|
|
12
|
|
|
|
1,138
|
|
|
11
|
|
|
115
|
|
|
10
|
|
|
|||
Radio
|
898
|
|
|
8
|
|
|
|
907
|
|
|
9
|
|
|
(9
|
)
|
|
(1
|
)
|
|
|||
Corporate/Eliminations
|
(319
|
)
|
|
(3
|
)
|
|
|
(274
|
)
|
|
(2
|
)
|
|
(45
|
)
|
|
(16
|
)
|
|
|||
Total Revenues
|
$
|
10,532
|
|
|
100
|
%
|
|
|
$
|
9,976
|
|
|
100
|
%
|
|
$
|
556
|
|
|
6
|
%
|
|
|
Nine Months Ended September 30,
|
|||||||||||||||||||||
|
|
% of Total
Segment
Operating
Income
|
|
|
% of Total
Segment
Operating
Income
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
Increase/(Decrease)
|
|
|||||||||||||||||
|
2016
|
|
2015
|
$
|
|
%
|
|
|||||||||||||||
Segment Operating Income (Loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Entertainment
|
$
|
1,148
|
|
|
49
|
%
|
|
|
$
|
947
|
|
|
45
|
%
|
|
$
|
201
|
|
|
21
|
%
|
|
Cable Networks
|
740
|
|
|
32
|
|
|
|
717
|
|
|
34
|
|
|
23
|
|
|
3
|
|
|
|||
Publishing
|
83
|
|
|
3
|
|
|
|
80
|
|
|
4
|
|
|
3
|
|
|
4
|
|
|
|||
Local Media
|
402
|
|
|
17
|
|
|
|
338
|
|
|
16
|
|
|
64
|
|
|
19
|
|
|
|||
Radio
|
215
|
|
|
9
|
|
|
|
195
|
|
|
9
|
|
|
20
|
|
|
10
|
|
|
|||
Corporate
|
(245
|
)
|
|
(10
|
)
|
|
|
(181
|
)
|
|
(8
|
)
|
|
(64
|
)
|
|
(35
|
)
|
|
|||
Total Segment Operating Income
|
2,343
|
|
|
100
|
%
|
|
|
2,096
|
|
|
100
|
%
|
|
247
|
|
|
12
|
|
|
|||
Restructuring charges
|
—
|
|
|
|
|
|
(55
|
)
|
|
|
|
55
|
|
|
n/m
|
|
|
|||||
Other operating items, net
|
9
|
|
|
|
|
|
19
|
|
|
|
|
(10
|
)
|
|
(53
|
)
|
|
|||||
Total Operating Income
|
$
|
2,352
|
|
|
|
|
|
$
|
2,060
|
|
|
|
|
$
|
292
|
|
|
14
|
%
|
|
|
Nine Months Ended September 30,
|
||||||||||||||
|
|
|
Increase/(Decrease)
|
|
|||||||||||
|
2016
|
|
2015
|
|
$
|
|
%
|
|
|||||||
Depreciation and Amortization:
|
|
|
|
|
|
|
|
|
|||||||
Entertainment
|
$
|
88
|
|
|
$
|
95
|
|
|
$
|
(7
|
)
|
|
(7
|
)%
|
|
Cable Networks
|
17
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
|||
Publishing
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
|||
Local Media
|
33
|
|
|
37
|
|
|
(4
|
)
|
|
(11
|
)
|
|
|||
Radio
|
22
|
|
|
23
|
|
|
(1
|
)
|
|
(4
|
)
|
|
|||
Corporate
|
24
|
|
|
23
|
|
|
1
|
|
|
4
|
|
|
|||
Total Depreciation and Amortization
|
$
|
188
|
|
|
$
|
199
|
|
|
$
|
(11
|
)
|
|
(6
|
)%
|
|
|
Three Months Ended September 30,
|
||||||||||||||
|
|
|
Increase/(Decrease)
|
|
|||||||||||
|
2016
|
|
2015
|
|
$
|
|
%
|
|
|||||||
Revenues
|
$
|
1,949
|
|
|
$
|
1,932
|
|
|
$
|
17
|
|
|
1
|
%
|
|
Segment Operating Income
|
$
|
348
|
|
|
$
|
339
|
|
|
$
|
9
|
|
|
3
|
%
|
|
Segment Operating Income as a % of revenues
|
18
|
%
|
|
18
|
%
|
|
|
|
|
|
|||||
Depreciation and amortization
|
$
|
28
|
|
|
$
|
31
|
|
|
$
|
(3
|
)
|
|
(10
|
)%
|
|
Capital expenditures
|
$
|
23
|
|
|
$
|
33
|
|
|
$
|
(10
|
)
|
|
(30
|
)%
|
|
|
Nine Months Ended September 30,
|
||||||||||||||
|
|
|
Increase/(Decrease)
|
|
|||||||||||
|
2016
|
|
2015
|
|
$
|
|
%
|
|
|||||||
Revenues
|
$
|
6,483
|
|
|
$
|
5,978
|
|
|
$
|
505
|
|
|
8
|
%
|
|
Segment Operating Income
|
$
|
1,148
|
|
|
$
|
947
|
|
|
$
|
201
|
|
|
21
|
%
|
|
Segment Operating Income as a % of revenues
|
18
|
%
|
|
16
|
%
|
|
|
|
|
|
|||||
Restructuring charges
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
(12
|
)
|
|
n/m
|
|
|
Depreciation and amortization
|
$
|
88
|
|
|
$
|
95
|
|
|
$
|
(7
|
)
|
|
(7
|
)%
|
|
Capital expenditures
|
$
|
60
|
|
|
$
|
54
|
|
|
$
|
6
|
|
|
11
|
%
|
|
|
Nine Months Ended September 30,
|
||||||||||||||
|
|
|
Increase/(Decrease)
|
|
|||||||||||
|
2016
|
|
2015
|
|
$
|
|
%
|
|
|||||||
Revenues
|
$
|
1,659
|
|
|
$
|
1,680
|
|
|
$
|
(21
|
)
|
|
(1
|
)%
|
|
Segment Operating Income
|
$
|
740
|
|
|
$
|
717
|
|
|
$
|
23
|
|
|
3
|
%
|
|
Segment Operating Income as a % of revenues
|
45
|
%
|
|
43
|
%
|
|
|
|
|
|
|||||
Depreciation and amortization
|
$
|
17
|
|
|
$
|
17
|
|
|
$
|
—
|
|
|
—
|
%
|
|
Capital expenditures
|
$
|
8
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
—
|
%
|
|
|
Nine Months Ended September 30,
|
||||||||||||||
|
|
|
Increase/(Decrease)
|
|
|||||||||||
|
2016
|
|
2015
|
|
$
|
|
%
|
|
|||||||
Revenues
|
$
|
558
|
|
|
$
|
547
|
|
|
$
|
11
|
|
|
2
|
%
|
|
Segment Operating Income
|
$
|
83
|
|
|
$
|
80
|
|
|
$
|
3
|
|
|
4
|
%
|
|
Segment Operating Income as a % of revenues
|
15
|
%
|
|
15
|
%
|
|
|
|
|
|
|||||
Depreciation and amortization
|
$
|
4
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
—
|
%
|
|
Capital expenditures
|
$
|
7
|
|
|
$
|
4
|
|
|
$
|
3
|
|
|
75
|
%
|
|
|
Nine Months Ended September 30,
|
||||||||||||||
|
|
|
Increase/(Decrease)
|
|
|||||||||||
|
2016
|
|
2015
|
|
$
|
|
%
|
|
|||||||
Revenues
|
$
|
1,253
|
|
|
$
|
1,138
|
|
|
$
|
115
|
|
|
10
|
%
|
|
Segment Operating Income
|
$
|
402
|
|
|
$
|
338
|
|
|
$
|
64
|
|
|
19
|
%
|
|
Segment Operating Income as a % of revenues
|
32
|
%
|
|
30
|
%
|
|
|
|
|
|
|||||
Restructuring charges
|
$
|
—
|
|
|
$
|
19
|
|
|
$
|
(19
|
)
|
|
n/m
|
|
|
Depreciation and amortization
|
$
|
33
|
|
|
$
|
37
|
|
|
$
|
(4
|
)
|
|
(11
|
)%
|
|
Capital expenditures
|
$
|
20
|
|
|
$
|
17
|
|
|
$
|
3
|
|
|
18
|
%
|
|
|
Three Months Ended September 30,
|
||||||||||||||
|
|
|
Increase/(Decrease)
|
|
|||||||||||
|
2016
|
|
2015
|
|
$
|
|
%
|
|
|||||||
Revenues
|
$
|
319
|
|
|
$
|
318
|
|
|
$
|
1
|
|
|
—
|
%
|
|
Segment Operating Income
|
$
|
77
|
|
|
$
|
73
|
|
|
$
|
4
|
|
|
5
|
%
|
|
Segment Operating Income as a % of revenues
|
24
|
%
|
|
23
|
%
|
|
|
|
|
|
|||||
Depreciation and amortization
|
$
|
7
|
|
|
$
|
8
|
|
|
$
|
(1
|
)
|
|
(13
|
)%
|
|
Capital expenditures
|
$
|
4
|
|
|
$
|
5
|
|
|
$
|
(1
|
)
|
|
(20
|
)%
|
|
|
Nine Months Ended September 30,
|
||||||||||||||
|
|
|
Increase/(Decrease)
|
|
|||||||||||
|
2016
|
|
2015
|
|
$
|
|
%
|
|
|||||||
Revenues
|
$
|
898
|
|
|
$
|
907
|
|
|
$
|
(9
|
)
|
|
(1
|
)%
|
|
Segment Operating Income
|
$
|
215
|
|
|
$
|
195
|
|
|
$
|
20
|
|
|
10
|
%
|
|
Segment Operating Income as a % of revenues
|
24
|
%
|
|
21
|
%
|
|
|
|
|
|
|||||
Restructuring charges
|
$
|
—
|
|
|
$
|
24
|
|
|
$
|
(24
|
)
|
|
n/m
|
|
|
Depreciation and amortization
|
$
|
22
|
|
|
$
|
23
|
|
|
$
|
(1
|
)
|
|
(4
|
)%
|
|
Capital expenditures
|
$
|
14
|
|
|
$
|
16
|
|
|
$
|
(2
|
)
|
|
(13
|
)%
|
|
|
Three Months Ended September 30,
|
||||||||||||||
|
|
|
Increase/(Decrease)
|
|
|||||||||||
|
2016
|
|
2015
|
|
$
|
|
%
|
|
|||||||
Segment Operating Loss
|
$
|
(78
|
)
|
|
$
|
(49
|
)
|
|
$
|
(29
|
)
|
|
(59
|
)%
|
|
Depreciation and amortization
|
$
|
8
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
—
|
%
|
|
Capital expenditures
|
$
|
5
|
|
|
$
|
3
|
|
|
$
|
2
|
|
|
67
|
%
|
|
|
Nine Months Ended September 30,
|
||||||||||||||
|
|
|
Increase/(Decrease)
|
|
|||||||||||
|
2016
|
|
2015
|
|
$
|
|
%
|
|
|||||||
Segment Operating Loss
|
$
|
(245
|
)
|
|
$
|
(181
|
)
|
|
$
|
(64
|
)
|
|
(35
|
)%
|
|
Depreciation and amortization
|
$
|
24
|
|
|
$
|
23
|
|
|
$
|
1
|
|
|
4
|
%
|
|
Capital expenditures
(a)
|
$
|
16
|
|
|
$
|
5
|
|
|
$
|
11
|
|
|
n/m
|
|
|
|
At
|
|
At
|
|
Increase/(Decrease)
|
|
|||||||||||||
|
September 30, 2016
|
|
December 31, 2015
|
|
$
|
|
%
|
|
|||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Cash and cash equivalents
|
|
$
|
179
|
|
|
|
|
$
|
323
|
|
|
|
$
|
(144
|
)
|
|
(45
|
)%
|
|
Receivables, net
(a)
|
|
3,348
|
|
|
|
|
3,628
|
|
|
|
(280
|
)
|
|
(8
|
)
|
|
|||
Programming and other inventory
(b)
|
|
1,459
|
|
|
|
|
1,271
|
|
|
|
188
|
|
|
15
|
|
|
|||
Prepaid income taxes
(c)
|
|
39
|
|
|
|
|
101
|
|
|
|
(62
|
)
|
|
(61
|
)
|
|
|||
All other current assets
|
|
432
|
|
|
|
|
424
|
|
|
|
8
|
|
|
2
|
|
|
|||
Total current assets
|
|
$
|
5,457
|
|
|
|
|
$
|
5,747
|
|
|
|
$
|
(290
|
)
|
|
(5
|
)%
|
|
|
At
|
|
At
|
|
Increase/(Decrease)
|
|
|||||||||||||
|
September 30, 2016
|
|
December 31, 2015
|
|
$
|
|
%
|
|
|||||||||||
Other assets
(a)
|
|
$
|
2,779
|
|
|
|
|
$
|
2,661
|
|
|
|
$
|
118
|
|
|
4
|
%
|
|
|
At
|
|
At
|
|
Increase/(Decrease)
|
|
|||||||||||||
|
September 30, 2016
|
|
December 31, 2015
|
|
$
|
|
%
|
|
|||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Accounts payable
(a)
|
|
$
|
153
|
|
|
|
|
$
|
192
|
|
|
|
$
|
(39
|
)
|
|
(20
|
)%
|
|
Accrued compensation
(a)
|
|
282
|
|
|
|
|
315
|
|
|
|
(33
|
)
|
|
(10
|
)
|
|
|||
Program rights
|
|
373
|
|
|
|
|
374
|
|
|
|
(1
|
)
|
|
—
|
|
|
|||
Deferred revenues
(b)
|
|
141
|
|
|
|
|
295
|
|
|
|
(154
|
)
|
|
(52
|
)
|
|
|||
Commercial paper
|
|
33
|
|
|
|
|
—
|
|
|
|
33
|
|
|
n/m
|
|
|
|||
Current portion of long-term debt
(c)
|
|
22
|
|
|
|
|
222
|
|
|
|
(200
|
)
|
|
(90
|
)
|
|
|||
All other current liabilities
|
|
2,094
|
|
|
|
|
2,162
|
|
|
|
(68
|
)
|
|
(3
|
)
|
|
|||
Total current liabilities
|
|
$
|
3,098
|
|
|
|
|
$
|
3,560
|
|
|
|
$
|
(462
|
)
|
|
(13
|
)%
|
|
|
At
|
|
At
|
|
Increase/(Decrease)
|
|
|||||||||||||
|
September 30, 2016
|
|
December 31, 2015
|
|
$
|
|
%
|
|
|||||||||||
Long-term debt
(a)
|
|
$
|
8,902
|
|
|
|
|
$
|
8,226
|
|
|
|
$
|
676
|
|
|
8
|
%
|
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
Increase/(Decrease)
|
||||||||
Net cash flow provided by (used for) operating activities from:
|
|
|
|
|
|
|
|
||||||
Continuing operations
|
$
|
1,308
|
|
|
$
|
650
|
|
|
|
$
|
658
|
|
|
Discontinued operations
|
(2
|
)
|
|
(27
|
)
|
|
|
25
|
|
|
|||
Net cash flow provided by operating activities
|
1,306
|
|
|
623
|
|
|
|
683
|
|
|
|||
Net cash flow used for investing activities from:
|
|
|
|
|
|
|
|
||||||
Continuing operations
|
(181
|
)
|
|
(102
|
)
|
|
|
(79
|
)
|
|
|||
Discontinued operations
|
—
|
|
|
(4
|
)
|
|
|
4
|
|
|
|||
Net cash flow used for investing activities
|
(181
|
)
|
|
(106
|
)
|
|
|
(75
|
)
|
|
|||
Net cash flow used for financing activities
|
(1,269
|
)
|
|
(812
|
)
|
|
|
(457
|
)
|
|
|||
Net decrease in cash and cash equivalents
|
$
|
(144
|
)
|
|
$
|
(295
|
)
|
|
|
$
|
151
|
|
|
|
Nine Months Ended September 30,
|
||||||||||
|
2016
|
|
2015
|
||||||||
Cash taxes included in operating activities from continuing operations
|
|
$
|
383
|
|
|
|
|
$
|
317
|
|
|
Excess tax benefits from the exercise of stock options and
vesting of restricted stock units, included in financing activities
|
|
(13
|
)
|
|
|
|
(87
|
)
|
|
||
Cash paid for income taxes from continuing operations
|
|
$
|
370
|
|
|
|
|
$
|
230
|
|
|
|
Nine Months Ended September 30,
|
||||||||||
|
2016
|
|
2015
|
||||||||
Acquisitions
(a)
|
|
$
|
(51
|
)
|
|
|
|
$
|
(7
|
)
|
|
Capital expenditures
(b)
|
|
(125
|
)
|
|
|
|
(104
|
)
|
|
||
Investments in and advances to investee companies
(c)
|
|
(44
|
)
|
|
|
|
(58
|
)
|
|
||
Proceeds from dispositions
(d)
|
|
28
|
|
|
|
|
75
|
|
|
||
Other investing activities
|
|
11
|
|
|
|
|
(8
|
)
|
|
||
Net cash flow used for investing activities from continuing operations
|
|
(181
|
)
|
|
|
|
(102
|
)
|
|
||
Net cash flow used for investing activities from discontinued operations
|
|
—
|
|
|
|
|
(4
|
)
|
|
||
Net cash flow used for investing activities
|
|
$
|
(181
|
)
|
|
|
|
$
|
(106
|
)
|
|
|
Nine Months Ended September 30,
|
||||||||||
|
2016
|
|
2015
|
||||||||
Repurchase of CBS Corp. Class B Common Stock
|
|
$
|
(1,534
|
)
|
|
|
|
$
|
(2,345
|
)
|
|
Proceeds from (repayments of) short-term debt borrowings, net
|
|
33
|
|
|
|
|
(313
|
)
|
|
||
Proceeds from issuance of senior notes
|
|
685
|
|
|
|
|
1,959
|
|
|
||
Repayment of senior debentures
|
|
(199
|
)
|
|
|
|
—
|
|
|
||
Dividends
|
|
(209
|
)
|
|
|
|
(228
|
)
|
|
||
Proceeds from exercise of stock options
|
|
13
|
|
|
|
|
137
|
|
|
||
All other financing activities, net
|
|
(58
|
)
|
|
|
|
(22
|
)
|
|
||
Net cash flow used for financing activities
|
|
$
|
(1,269
|
)
|
|
|
|
$
|
(812
|
)
|
|
|
Nine Months Ended
|
||||||
|
September 30,
|
||||||
|
2016
|
|
2015
|
||||
Net cash flow provided by operating activities
|
$
|
1,306
|
|
|
$
|
623
|
|
Capital expenditures
|
(125
|
)
|
|
(104
|
)
|
||
Exclude operating cash flow from discontinued operations
|
(2
|
)
|
|
(27
|
)
|
||
Free cash flow
|
$
|
1,183
|
|
|
$
|
546
|
|
|
At
|
|
At
|
||||||||
|
September 30, 2016
|
|
December 31, 2015
|
||||||||
Commercial paper
|
|
$
|
33
|
|
|
|
|
$
|
—
|
|
|
Senior debt (1.95% – 7.875% due 2016 – 2045)
(a)
|
|
8,849
|
|
|
|
|
8,365
|
|
|
||
Obligations under capital leases
|
|
75
|
|
|
|
|
83
|
|
|
||
Total debt
|
|
8,957
|
|
|
|
|
8,448
|
|
|
||
Less commercial paper
|
|
33
|
|
|
|
|
—
|
|
|
||
Less current portion of long-term debt
|
|
22
|
|
|
|
|
222
|
|
|
||
Total long-term debt, net of current portion
|
|
$
|
8,902
|
|
|
|
|
$
|
8,226
|
|
|
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
|
||||||||||||
July 1, 2016 - July 31, 2016
|
|
2.2
|
|
|
|
$
|
55.39
|
|
|
|
2.2
|
|
|
|
|
$
|
5,982
|
|
|
August 1, 2016 - August 31, 2016
|
|
3.5
|
|
|
|
$
|
52.05
|
|
|
|
3.5
|
|
|
|
|
$
|
5,798
|
|
|
September 1, 2016 - September 30, 2016
|
|
3.8
|
|
|
|
$
|
51.91
|
|
|
|
3.8
|
|
|
|
|
$
|
5,603
|
|
|
Total
|
|
9.5
|
|
|
|
$
|
52.77
|
|
|
|
9.5
|
|
|
|
|
$
|
5,603
|
|
|
Item 6.
|
Exhibits.
|
|
CBS CORPORATION
(Registrant)
|
|
|
Date: November 3, 2016
|
/s/ Joseph R. Ianniello
|
|
Joseph R. Ianniello
Chief Operating Officer
|
|
|
Date: November 3, 2016
|
/s/ Lawrence Liding
|
|
Lawrence Liding
Executive Vice President, Controller and
Chief Accounting Officer
|
Dear Tony:
|
as of September 29, 2016
|
|
|
|
Very truly yours,
|
||
|
|
|
|
|
|
|
|
|
CBS CORPORATION
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By:
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/s/ Leslie Moonves
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Name:
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Leslie Moonves
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Title:
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Chairman of the Board, President and
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Chief Executive Officer
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ACCEPTED AND AGREED:
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/s/ Anthony G. Ambrosio
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Anthony G. Ambrosio
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Dated:
5 October 2016
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Nine Months Ended
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Twelve Months Ended
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September 30,
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December 31,
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2016
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2015
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2015
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2014
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2013
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2012
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2011
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Earnings from continuing operations before
income taxes and equity in loss of investee
companies
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$
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2,065
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$
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1,766
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$
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2,023
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$
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2,164
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$
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2,665
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$
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2,357
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$
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1,983
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Add:
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Distributions from investee companies
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5
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2
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3
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9
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8
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11
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6
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Interest expense, net of capitalized interest
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304
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289
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392
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363
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375
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401
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433
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1/3 of rental expense
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51
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53
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70
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69
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70
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68
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68
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Total earnings from continuing operations
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$
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2,425
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$
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2,110
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$
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2,488
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$
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2,605
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$
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3,118
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$
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2,837
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$
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2,490
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Fixed charges:
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Interest expense, net of capitalized interest
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$
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304
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$
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289
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$
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392
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$
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363
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$
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375
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$
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401
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$
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433
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1/3 of rental expense
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51
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53
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70
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69
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70
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68
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68
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Total fixed charges
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$
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355
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$
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342
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$
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462
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$
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432
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$
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445
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$
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469
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$
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501
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Ratio of earnings to fixed charges
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6.8
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x
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6.2
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x
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5.4
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x
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6.0
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x
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7.0
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x
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6.0
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x
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5.0
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x
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1.
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I have reviewed this quarterly report on Form 10-Q of CBS Corporation;
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2.
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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;
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3.
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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;
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4.
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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:
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(a)
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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;
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(b)
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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;
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(c)
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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
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(d)
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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
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5.
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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):
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(a)
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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
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(b)
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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.
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/s/ Leslie Moonves
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Leslie Moonves
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Chairman of the Board, President and Chief Executive Officer
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1.
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I have reviewed this quarterly report on Form 10-Q of CBS Corporation;
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2.
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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;
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3.
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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;
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4.
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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:
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(a)
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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;
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(b)
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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;
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(c)
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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
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(d)
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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
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5.
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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):
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(a)
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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
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(b)
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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.
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/s/ Joseph R. Ianniello
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Joseph R. Ianniello
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Chief Operating Officer
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/s/ Leslie Moonves
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Leslie Moonves
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November 3, 2016
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/s/ Joseph R. Ianniello
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Joseph R. Ianniello
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November 3, 2016
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