Time Inc. showed a little leg Friday, filing the first of what is expected to be numerous documents with the Securities and Exchange Commission in the leadup to its spinoff from parent Time Warner.
The spinoff, which was announced in March, is expected to happen in the second quarter of 2014.
Time Inc., publisher of People and Fortune, has not kept pace with Time Warner's more profitable TV and film properties. Third-quarter revenue at Time Inc. decreased 2% to $818 million, fueled by a 4% decline in subscription revenues and 2% drop in ad revenue.
Friday's filing with the SEC offers more detail on the company's finances and operations, however, including the salaries of newly installed CEO Joe Ripp and his predecesser Laura Lang.
There remains plenty still to be covered, including the new company's market capitalization and how much debt it will have.
But here are five interesting revelations from today's filing:
1. Joe Ripp's base salary is $1 million and Laura Lang will keep drawing a salary for a while yet.
Mr. Ripp, who joined Time Inc. as CEO in September of this year, is under contract through September 2018, according to the filing, with an annual base salary of $1 million and a discretionary annual cash bonus with a target of $1.5 million. The salary is subject to a discretionary increase.
Laura Lang, his short-lived predecessor as CEO, also earned a base salary of $1 million, though her target bonus was $2 million. Toss in benefits and stock awards and her total compensation last year was $7.6 million.
But it gets better. Ms. Lang, who spent just 15 months at the helm of Time Inc., will continue to collect her salary and bonus through 2015, plus a payment of $2.5 million "to reward her contributions to the spin-off."
2. People magazine generated nearly 20% of the whole company's revenue in 2012.
Magazine ad sales are responsible for roughly half of Time Inc.'s total revenue, according to the filing, mostly from print ads, with "a smaller amount" coming from websites and marketing services.
Circulation generates about one-third of its revenue, with subscriptions accounting for 60% of that and newsstand the remainder. The rest of its revenue, the filing says, is from "other operations related to magazine publishing." The U.S. is where a "significant majority" of its revenues stem.
People magazine, it notes, is the company's biggest magazine, generating almost one-fifth of its overall revenue last year.
3. Leaner times and possible off-shoring loom ahead.
The company says it has reduced costs significantly in recent years, but it will "need to reduce costs further." Doing so, it adds, may negatively affect the quality of its products and brands as well as its ability to attract and retain talent. The filing adds:
Our cost-reduction initiatives may involve moving more of our business operations and corporate functions to outsourced arrangements or off-shore locations.
Last month, Mr. Ripp mentioned the costliness of producing magazines in Manhattan.
Time Inc. has 7,800 employees, approximately 5,000 of which are in the U.S., according to the filing.
4. Time Inc. sort of made money when it bought Travel & Leisure and Food and Wine.
In September, Time Inc. bought American Express Publishing, which includes Food and Wine and Travel + Leisure.
According to the filing, Time Inc. does not expect the purchase price to have a material effect on its finances. In fact, the company realized a pretax gain of roughly $20 million this quarter. It's the result, the filing says, to the settling of its earlier arrangement in which Time Inc. provided management services to American Express Publishing.
The sale also included a multi-year arrangement to publish Departures for American Express. The magazine is delivered to certain American Express cardholders only.
5. Time Inc. will have "substantial" debt.
But the company didn't say in today's filing exactly how much that debt will total, saying only that it had $37 million in long-term debt at the end of September and will have "substantial indebtedness" after the spin-off. More information on that front is expected to come in future filings.