The par value of Time Warner common stock was unchanged at $0.01 per share after the reverse stock split. As a result, on the effective date of the reverse stock split, the stated capital on Time Warner’s balance sheet attributable to Time Warner common stock was reduced proportionately based on the reverse stock split ratio of one-for-three and the additional paid-in capital account was credited with the amount by which the stated capital was reduced. The shares of Time Warner common stock held in treasury were reduced proportionately based on the same ratio.

After the reverse stock split, net income or loss per share, and other per share amounts were increased because there are fewer shares of Time Warner common stock outstanding. In subsequent financial statements, net income or loss per share and other per share amounts for periods ending before the reverse stock split were recast to give retroactive effect to the reverse stock split.