Filing points to stock awards, severance benefits
DreamWorks Animation and Time Warner said Friday they would take charges of $20 million and $60 million, respectively, in the fourth quarter to account for stock awards and severance benefits.
In its quarterly statement filed with the Securities and Exchange Commission, DreamWorks said it had given stock to a number of employees in connection with its spinoff from parent DreamWorks Studios. The exact value could not be determined because some of the stock will vest only if certain performance conditions are met, but the company said it estimated the total will be $20 million and plans to set aside that amount in the current quarter.
DreamWorks Animation made its first quarterly financial report last week, announcing $241.3 million in revenue and a profit of $20.3 million for the fiscal third quarter.
Time Warner, in an 8-K filing with the SEC on Friday, said it would take a $60 million charge in the fourth quarter to pay for severance benefits primarily at its AOL unit. AOL had said earlier this month that it planned to reduce its workforce as part of a restructuring plan.