CBS Corporation Reports Record Third Quarter 2012 Results

          CBS Corporation Reports Record Third Quarter 2012 Results

Revenues of $3.4 Billion, Up 2%

OIBDA of $898 Million, Up 7%

Operating Income of $771 Million, Up 10%

Adjusted EPS of $.65, Up 30%

PR Newswire

NEW YORK, Nov. 7, 2012

NEW YORK, Nov. 7, 2012 /PRNewswire/ --CBS Corporation (NYSE: CBS.A and CBS)
today reported very strong results, including third quarter records in
revenues, operating income before depreciation and amortization ("OIBDA"),
operating income, and adjusted earnings per share.

"CBS has continued its remarkable run with yet another record quarter," said
Sumner Redstone, Executive Chairman, CBS Corporation. "Our world-class content
and multiplatform distribution strategy remain at the center of our success. I
am very proud of all that Leslie and his team have accomplished, and I know we
are in position for continued growth for many years to come."

"The transformation of CBS continues as reflected in these record third
quarter results," said Leslie Moonves, President and Chief Executive Officer,
CBS Corporation. "We have taken a number of significant steps during the last
several months to execute our strategy and grow the Company. These include
three major retransmission consent agreements, an important reverse
compensation deal, new international and domestic streaming contracts, and the
sale of our two new hit dramas, Vegas and Elementary, into international
syndication. As we continue to take actions like these, we are increasing our
recurring revenue from nonadvertising sources and setting ourselves up for
even more record results in the future. Going forward, we will continue to
expand the ways we achieve value for our content, and we are confident we will
hit our goal of a record 2012 and an even better 2013."

Third Quarter 2012 Results
The Company set third quarter records in the following key metrics:

  oRevenues of $3.42 billion
  oOIBDA of $898 million
  oOperating income of $771 million
  oNet earnings of $391 million
  oAdjusted diluted earnings per share of $.65

Revenues of $3.42 billion for the third quarter of 2012 increased 2% from
$3.37 billion for the same prior-year period. This growth was led by an 8%
increase in content licensing and distribution revenues, which were driven by
higher domestic and international television license fees. Affiliate and
subscription fee revenues rose 12%, reflecting growth at Cable Networks,
higher retransmission revenues, and fees received from CBS Network affiliated
television stations. Advertising revenues were down 3%, primarily driven by
lower advertising for CBS Radio, the impact of foreign exchange rate changes,
and the impact of pre-emptions for the Republican and Democratic national
conventions on six nights of the CBS Television Network's primetime schedule.

OIBDA of $898 million increased 7% in the third quarter of 2012 from $837
million for the same prior-year period. Operating income of $771 million
increased 10% in the third quarter of 2012 from $703 million in the third
quarter of 2011. The growth in OIBDA and operating income was primarily driven
by higher revenues and increased profits on television licensing revenues.

Net earnings were $391 million for the third quarter of 2012, or $.60 per
diluted share, up from $338 million, or $.50 per diluted share, during last
year's third quarter. The increase in diluted earnings per share reflected the
operating income growth, lower interest expense because of the Company's 2012
debt refinancing, and lower weighted average shares outstanding as a result of
the Company's share repurchase program. Net earnings include a pretax loss on
early extinguishment of debt of $57 million ($35 million, net of tax), or $.05
per share.

Adjusting to exclude the pretax loss on early extinguishment of debt, adjusted
net earnings were $426 million, or $.65 per diluted share.

Reconciliations of non-GAAP measures to reported results are included at the
end of this earnings release.

Free Cash Flow, Balance Sheet and Liquidity
Free cash flow was $163 million for the third quarter of 2012, compared with
$29 million for the third quarter a year ago. Free cash flow for the third
quarter of 2012 included payments of approximately $60 million associated with
the early extinguishment of debt, primarily for make-whole premiums. Free cash
flow for the same prior-year period included pension contributions of $200
million to prefund the Company's qualified plans. For the first nine months of
2012, free cash flow was $1.33 billion compared with $1.53 billion for the
first nine months of 2011, reflecting increased investment in content and
higher income tax payments. The Company generated cash flow from operating
activities of $1.48 billion for the nine months ended September 30, 2012,
versus $1.68 billion for the comparable prior-year period.

During the third quarter of 2012, the Company used the net proceeds from its
second quarter debt issuances to repay its $152 million of 8.625% debentures
at maturity on August 1, 2012, and redeem its $338 million of 5.625% senior
notes due August 2012 and its $400 million of 8.20% senior notes due 2014.
These actions, along with the debt activity during the first quarter of 2012,
will result in annualized interest expense savings of $53 million. 

Also during the quarter, the Company repurchased 8.6 million shares of CBS
Corp. Class B Common Stock for $300 million. Since the inception of its share
repurchase program in January 2011 – and through September 30, 2012 – the
Company has repurchased 69.2 million shares for $1.89 billion, at an average
cost of approximately $27 per share. At the end of the third quarter of 2012,
$2.81 billion of authorization remained on the program.

At September 30, 2012, the Company's debt outstanding was $5.93 billion and
its cash balance was $947 million, which was $287 million higher than December
31, 2011.

Consolidated and Segment Results (dollars in millions)
The tables below present the Company's revenues by segment and type as well as
its OIBDA before impairment charges and operating income (loss) by segment for
the three and nine months ended September 30, 2012, and 2011. Reconciliations
of all non-GAAP measures to reported results are included at the end of this
earnings release.

                                     Three Months Ended Nine Months Ended
                                     September 30,      September 30,
 Revenues by Segment                   2012     2011     2012      2011
  Entertainment                      $ 1,680   $ 1,632  $ 5,705   $ 5,462
  Cable Networks                       436      420      1,334     1,226
  Publishing                           210      220      575       558
     Content Group                     2,326    2,272    7,614     7,246
  Local Broadcasting                   661      656      1,987     1,968
  Outdoor                              486      477      1,383     1,380
     Local Group                       1,147    1,133    3,370     3,348
  Eliminations                         (55)      (40)     (166)     (133)
     Total Revenues                  $ 3,418   $ 3,365  $ 10,818  $ 10,461
                                     Three Months Ended Nine Months Ended
                                     September 30,      September 30,
 Revenues by Type                      2012     2011     2012      2011
  Advertising                        $ 1,931   $ 1,992  $ 6,471   $ 6,499
  Content licensing and distribution   931      863      2,764     2,483
  Affiliate and subscription fees      496      442      1,416     1,297
  Other                                60       68       167       182
     Total Revenues                  $ 3,418   $ 3,365  $ 10,818  $ 10,461
                                     Three Months Ended Nine Months Ended
                                     September 30,      September 30,
 OIBDA before Impairment Charges       2012     2011     2012      2011
  Entertainment                      $ 384     $ 405    $ 1,221   $ 1,113
  Cable Networks                       227      203      626       532
  Publishing                           39       38       58        64
     Content Group                     650      646      1,905     1,709
  Local Broadcasting                   213      184      632       583
  Outdoor                              99       80       245       215
     Local Group                       312      264      877       798
  Corporate                            (53)      (55)     (163)     (164)
  Residual costs                       (12)      (19)     (36)      (56)
  Eliminations                         1        1        —         (1)
     OIBDA before Impairment Charges   898      837      2,583     2,286
  Impairment charges                   —        —        (11)      —
     Total OIBDA                     $ 898     $ 837    $ 2,572   $ 2,286
                                     Three Months Ended Nine Months Ended
                                     September 30,      September 30,
 Operating Income (Loss)               2012     2011     2012      2011
  Entertainment                      $ 346     $ 366    $ 1,101   $ 996
  Cable Networks                       221      197      609       515
  Publishing                           38       36       53        58
     Content Group                     605      599      1,763     1,569
  Local Broadcasting                   190      161      553       508
  Outdoor                              45       21       82        35
     Local Group                       235      182      635       543
  Corporate                            (58)      (60)     (180)     (181)
  Residual costs                       (12)      (19)     (36)      (56)
  Eliminations                         1        1        —         (1)
     Total Operating Income          $ 771     $ 703    $ 2,182   $ 1,874

Entertainment (CBS Television Network, CBS Television Studios, CBS Global
Distribution Group, CBS Films, and CBS Interactive)
Entertainment revenues of $1.68 billion for the third quarter of 2012 grew 3%
from $1.63 billion in the same prior-year period, driven by increased domestic
and international television license fees and higher retransmission revenues.
Advertising revenues were down from last year's third quarter, primarily
resulting from the broadcast of summer programming against the highly rated
2012 Summer Olympics and the impact of pre-emptions for the Republican and
Democratic national conventions on six nights of the CBS Television Network's
primetime schedule.

Entertainment OIBDA for the third quarter of 2012 decreased 5% to $384 million
from $405 million driven by costs associated with the timing of theatrical
releases and the mix of revenues.

Cable Networks (Showtime Networks, CBS Sports Network, and Smithsonian
Networks)
Cable Networks revenues for the third quarter of 2012 increased 4% to $436
million from $420 million for the same prior-year period driven by higher
affiliate fee revenues, which reflect increases in rates and subscriptions at
Showtime Networks (which includes Showtime, The Movie Channel, and Flix), CBS
Sports Network, and Smithsonian Networks. Licensing revenues were down from
the third quarter of 2011 reflecting the timing of digital streaming revenues.
For the first nine months of 2012, streaming revenues increased significantly
from the same prior-year period.

Cable Networks OIBDA for the third quarter of 2012 grew 12% to $227 million
from $203 million for the same prior-year period. This increase reflects the
growth in affiliate revenues.

Publishing (Simon & Schuster)
Publishing revenues for the third quarter of 2012 decreased 5% to $210 million
from $220 million for the same prior-year period as strong growth in digital
book sales was more than offset by lower print book sales. Digital sales
increased 20% from the same prior-year period and represented approximately
21% of total Publishing revenues for the third quarter of 2012. Best-selling
titles in the third quarter included Total Recall by Arnold Schwarzenegger and
Black List by Brad Thor.

Publishing OIBDA for the third quarter of 2012 increased $1 million to $39
million from the same prior-year period principally driven by growth in more
profitable digital book sales.

Local Broadcasting (CBS Television Stations and CBS Radio)
Local Broadcasting revenues for the third quarter of 2012 increased 1% to $661
million from $656 million for the same prior-year period. CBS Television
Stations revenues rose 7% driven by political advertising and retransmission
revenues. CBS Radio revenues were down 5%.

Local Broadcasting OIBDA for the third quarter of 2012 increased 16% to $213
million from $184 million, driven by a decline in programming and production
expenses as well as lower music royalty costs from the initial impact of a new
long-term agreement.

Outdoor (CBS Outdoor)
Outdoor revenues for the third quarter of 2012 increased 2% to $486 million
from $477 million for the same prior-year period, while revenues on a constant
dollar basis increased 5% from the third quarter of 2011. Revenues for the
Americas (which includes North America and South America) increased 1% in
constant dollars for the third quarter of 2012, principally driven by 5%
growth in the U.S. billboards and displays businesses. The nonrenewal of the
Toronto transit contract negatively affected the Americas revenue comparison.
Revenues for Europe increased 14% in constant dollars, which was primarily a
result of higher advertising sales associated with the 2012 Summer Olympics in
London.

Outdoor OIBDA for the third quarter of 2012 increased 24% to $99 million from
$80 million for the same prior-year period, driven by the revenue growth in
constant dollars.

Corporate
Corporate expenses before depreciation for the third quarter of 2012 decreased
$2 million to $53 million from the same prior-year period.

Residual Costs
Residual costs include pension and postretirement benefits costs for plans
retained by the Company for previously divested businesses. Residual costs for
the third quarter of 2012 decreased $7 million to $12 million from the same
quarter last year, primarily because of the benefit from the prefunding of
pension plans during 2011.

About CBS Corporation
CBS Corporation (NYSE: CBS.A and CBS) is a mass media company that creates and
distributes industry-leading content across a variety of platforms to
audiences around the world. The Company has businesses with origins that date
back to the dawn of the broadcasting age as well as new ventures that operate
on the leading edge of media. CBS owns the most-watched television network in
the U.S. and one of the world's largest libraries of entertainment content,
making its brand – "the Eye" – one of the most recognized in business. The
Company's operations span virtually every field of media and entertainment,
including cable, publishing, radio, local TV, film, outdoor advertising, and
interactive and socially responsible media. CBS's businesses include CBS
Television Network, The CW (a joint venture between CBS Corporation and Warner
Bros. Entertainment), Showtime Networks, CBS Sports Network, Smithsonian
Networks, Simon & Schuster, CBS Television Stations, CBS Radio, CBS Outdoor,
CBS Television Studios, CBS Global Distribution Group, CBS Interactive, CBS
Consumer Products, CBS Home Entertainment, CBS Films and CBS EcoMedia. For
more information, go to www.cbscorporation.com.

Cautionary Statement Concerning Forward-looking Statements
This news release contains both historical and forward-looking statements. All
statements other than statements of historical fact are, or may be deemed to
be, forward-looking statements within the meaning of section 27A of the
Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934.
These forward-looking statements are not based on historical facts, but rather
reflect the Company's current expectations concerning future results and
events. Similarly, statements that describe our objectives, plans or goals are
or may be forward-looking statements. These forward-looking statements involve
known and unknown risks, uncertainties and other factors that are difficult to
predict and which may cause the actual results, performance or achievements of
the Company to be different from any future results, performance or
achievements expressed or implied by these statements. These risks,
uncertainties and other factors include, among others: advertising market
conditions generally; changes in the public acceptance of the Company's
programming; changes in technology and its effect on competition in the
Company's markets; changes in the Federal Communications laws and regulations;
the impact of piracy on the Company's products; the impact of the
consolidation in the market for the Company's programming; other domestic and
global economic, business, competitive and/or other regulatory factors
affecting the Company's businesses generally; the impact of union activity,
including possible strikes or work stoppages or the Company's inability to
negotiate favorable terms for contract renewals; and other factors described
in the Company's news releases and filings with the Securities and Exchange
Commission including but not limited to the Company's most recent Form 10-K,
Form 10-Qs and Form 8-Ks. The forward-looking statements included in this
document are made only as of the date of this document, and under section 27A
of the Securities Act and section 21E of the Exchange Act, we do not have any
obligation to publicly update any forward-looking statements to reflect
subsequent events or circumstances.

CBS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in millions, except per share amounts)
                                     Three Months Ended  Nine Months Ended
                                     September 30,       September 30,
                                       2012      2011      2012       2011
Revenues                             $ 3,418   $ 3,365   $ 10,818   $ 10,461
Operating income                       771       703       2,182      1,874
  Interest expense                     (95)      (110)     (309)      (330)
  Interest income                      2         2         5          5
  Net loss on early extinguishment     (57)      —         (32)       —
  of debt
  Other items, net                     3         (21)      12         (7)
Earnings before income taxes           624       574       1,858      1,542
  Provision for income taxes           (219)     (217)     (647)      (569)
  Equity in loss of investee           (14)      (19)      (30)       (38)
  companies, net of tax
Net earnings                         $ 391     $ 338     $ 1,181    $ 935
Basic net earnings per common share  $ .61     $ .51     $ 1.83     $ 1.40
Diluted net earnings per common      $ .60     $ .50     $ 1.78     $ 1.36
share
Weighted average number of common
shares outstanding:
  Basic                                640       659       645        667
  Diluted                              656       675       662        685
Dividends per common share           $ .12     $ .10     $ .32      $ .25



CBS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited; in millions)
                                        At                  At
                                        September 30, 2012  December 31, 2011
Assets
Cash and cash equivalents               $    947            $   660
Receivables, net                             3,202              3,254
Programming and other inventory              685                735
Prepaid expenses and other current           954                894
assets
       Total current assets                  5,788              5,543
Property and equipment                       5,424              5,334
  Less accumulated depreciation and          3,052              2,824
  amortization
       Net property and equipment            2,372              2,510
Programming and other inventory              1,467              1,496
Goodwill                                     8,606              8,620
Intangible assets                            6,483              6,526
Other assets                                 1,676              1,502
Total Assets                            $    26,392         $   26,197
Liabilities and Stockholders' Equity
Accounts payable                        $    345            $   410
Participants' share and royalties            847                938
payable
Program rights                               506                577
Current portion of long-term debt            20                 24
Accrued expenses and other current           1,945              1,984
liabilities
       Total current liabilities             3,663              3,933
Long-term debt                               5,907              5,958
Other liabilities                            6,533              6,398
Total Stockholders' Equity                   10,289             9,908
Total Liabilities and Stockholders'     $    26,392         $   26,197
Equity



CBS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in millions)
                                                         Nine Months Ended
                                                         September 30,
                                                           2012        2011
Operating Activities:
Net earnings                                             $ 1,181     $ 935
Adjustments to reconcile net earnings to net cash flow
 provided by operating activities:
 Depreciation and amortization                             390         412
 Stock-based compensation                                  119         110
 Impairment charges                                        11          —
 Redemption of debt                                        (28)        —
 Equity in loss of investee companies, net of tax and      33          40
 distributions
 Change in assets and liabilities, net of effects of       (226)       183
 acquisitions
Net cash flow provided by operating activities             1,480       1,680
Investing Activities:
 Acquisitions, net of cash acquired                        (70)        (73)
 Capital expenditures                                      (152)       (152)
 Investments in and advances to investee companies         (54)        (45)
 Proceeds from sale of investments                         11          8
 Proceeds from dispositions                                46          13
Net cash flow used for investing activities                (219)       (249)
Financing Activities:
 Proceeds from issuance of notes                           1,567       4
 Repayment of notes                                        (1,583)     (2)
 Payment of capital lease obligations                      (15)        (14)
 Payment of contingent consideration                       (33)        —
 Dividends                                                 (199)       (140)
 Purchase of Company common stock                          (839)       (850)
 Payment of payroll taxes in lieu of issuing shares for    (105)       (81)
 stock-based compensation
 Proceeds from exercise of stock options                   140         58
 Excess tax benefit from stock-based compensation          93          66
 Other financing activities                                —           (5)
Net cash flow used for financing activities                (974)       (964)
Net increase in cash and cash equivalents                  287         467
Cash and cash equivalents at beginning of period           660         480
Cash and cash equivalents at end of period               $ 947       $ 947



CBS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
(Unaudited; in millions)

Operating Income (Loss) Before Depreciation and Amortization ("OIBDA") and
OIBDA Before Impairment Charges

The following tables set forth the Company's OIBDA for the three and nine
months ended September 30, 2012 and 2011. The Company defines OIBDA as net
earnings (loss) adjusted to exclude the following line items presented in its
Consolidated Statements of Operations: Equity in earnings (loss) of investee
companies, net of tax; Provision for income taxes; Other items, net; Net loss
on early extinguishment of debt; Interest income; Interest expense; and
Depreciation and amortization. The following tables also set forth the
Company's OIBDA before impairment charges for the nine months ended September
30, 2012. The Company defines "OIBDA before impairment charges" as OIBDA
excluding impairment charges.

The Company uses OIBDA and OIBDA before impairment charges, as well as OIBDA
margin and OIBDA before impairment charges margin, to, among other things,
evaluate the Company's operating performance, to value prospective
acquisitions and as one of several components of incentive compensation
targets for certain management personnel. These measures are among the primary
measures used by management for planning and forecasting of future periods,
and they are important indicators of the Company's operational strength and
business performance because they provide a link between profitability and
operating cash flow. The Company believes these measures are relevant and
useful for investors because they allow investors to view performance in a
manner similar to the method used by the Company's management, help improve
investors' understanding of the Company's operating performance, and make it
easier for investors to compare the Company's results with other companies
that have different financing and capital structures or tax rates. In
addition, these are among the primary measures used externally by the
Company's investors, analysts and industry peers for purposes of valuation and
for the comparison of the Company's operating performance to other companies
in its industry.

Because OIBDA and OIBDA before impairment charges are not measures of
performance calculated in accordance with accounting principles generally
accepted in the United States ("GAAP"), they should not be considered in
isolation of, or as a substitute for, net earnings (loss) as an indicator of
operating performance. OIBDA, as the Company calculates it, may not be
comparable to similarly titled measures employed by other companies. In
addition, this measure does not necessarily represent funds available for
discretionary use and is not necessarily a measure of the Company's ability to
fund its cash needs. As OIBDA and OIBDA before impairment charges exclude
certain financial information that is included in net earnings (loss), the
most directly comparable GAAP financial measure, users of this financial
information should consider the types of events and transactions which are
excluded. The Company provides the following reconciliations of OIBDA and
OIBDA before impairment charges to net earnings (loss), and OIBDA or OIBDA
before impairment charges for each segment to such segment's operating income
(loss), the most directly comparable amounts reported under GAAP.



CBS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION (continued)
(Unaudited; in millions)
Three Months Ended September 30, 2012
                                       Depreciation          Operating
                             OIBDA     and Amortization      Income (Loss)
Entertainment            $   384       $       (38)          $     346
Cable Networks               227              (6)                 221
Publishing                   39               (1)                 38
         Content Group       650              (45)                605
Local Broadcasting           213              (23)                190
Outdoor                      99               (54)                45
         Local Group         312              (77)                235
Corporate                    (53)              (5)                 (58)
Residual Costs               (12)              —                   (12)
Eliminations                 1                —                   1
     Total               $   898       $       (127)         $     771
     Margin ^(a)             26%                                   23%
Three Months Ended September 30, 2011
                                       Depreciation          Operating
                             OIBDA     and Amortization      Income (Loss)
Entertainment            $   405       $       (39)          $     366
Cable Networks               203              (6)                 197
Publishing                   38               (2)                 36
         Content Group       646              (47)                599
Local Broadcasting           184              (23)                161
Outdoor                      80               (59)                21
         Local Group         264              (82)                182
Corporate                    (55)              (5)                 (60)
Residual Costs               (19)              —                   (19)
Eliminations                 1                —                   1
     Total               $   837       $       (134)         $     703
     Margin ^(a)             25%                                   21%



                                            Three Months Ended September 30,
                                                  2012              2011
Total OIBDA                                 $     898           $   837
    Depreciation and amortization                 (127)             (134)
Operating income                                  771               703
    Interest expense                              (95)              (110)
    Interest income                               2                 2
    Loss on early extinguishment of debt          (57)              —
    Other items, net                              3                 (21)
Earnings before income taxes                      624               574
    Provision for income taxes                    (219)             (217)
    Equity in loss of investee companies,         (14)              (19)
    net of tax
Net earnings                                $     391           $   338
(a) Margin is defined as OIBDA or operating income, as applicable,
divided by revenues.







CBS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION (continued)
(Unaudited; in millions)
Nine Months Ended September 30, 2012
                       OIBDA before
                       Impairment  Depreciation     Impairment Operating
                       Charges      and Amortization Charges    Income (Loss)
Entertainment        $ 1,221        $     (120)      $  —       $    1,101
Cable Networks         626               (17)          —            609
Publishing             58                (5)           —            53
       Content Group   1,905             (142)         —            1,763
Local Broadcasting     632               (68)          (11)         553
Outdoor                245               (163)         —            82
       Local Group     877               (231)         (11)         635
Corporate              (163)              (17)          —            (180)
Residual Costs         (36)               —             —            (36)
Eliminations           —                 —             —            —
    Total            $ 2,583        $     (390)      $  (11)    $    2,182
    Margin ^(a)        24%                                           20%
Nine Months Ended September 30, 2011
                                    Depreciation     Impairment Operating
                       OIBDA        and Amortization Charges    Income (Loss)
Entertainment        $ 1,113        $     (117)      $  —       $    996
Cable Networks         532               (17)          —            515
Publishing             64                (6)           —            58
       Content Group   1,709             (140)         —            1,569
Local Broadcasting     583               (75)          —            508
Outdoor                215               (180)         —            35
       Local Group     798               (255)         —            543
Corporate              (164)              (17)          —            (181)
Residual Costs         (56)               —             —            (56)
Eliminations           (1)                —             —            (1)
    Total            $ 2,286        $     (412)      $  —       $    1,874
    Margin ^(a)        22%                                           18%



                                        Nine Months Ended September 30,
                                               2012               2011
OIBDA before impairment charges         $      2,583         $    2,286
          Impairment charges                   (11)               —
Total OIBDA                                    2,572              2,286
          Depreciation and amortization        (390)              (412)
Operating income                               2,182              1,874
          Interest expense                     (309)              (330)
          Interest income                      5                  5
          Net loss on early                    (32)               —
          extinguishment of debt
          Other items, net                     12                 (7)
Earnings before income taxes                   1,858              1,542
          Provision for income taxes           (647)              (569)
          Equity in loss of investee           (30)               (38)
          companies, net of tax
Net earnings                            $      1,181         $    935
(a) Margin is defined as OIBDA, OIBDA before impairment charges or operating
income, as applicable, divided by revenues.

CBS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION (continued)
(Unaudited; in millions)

Free Cash Flow

The Company defines free cash flow as its net cash flow provided by (used for)
operating activities less capital expenditures. The Company's calculation of
free cash flow includes capital expenditures because investment in capital
expenditures is a use of cash that is directly related to the Company's
operations. The Company's net cash flow provided by (used for) operating
activities is the most directly comparable GAAP financial measure.

Management believes free cash flow provides investors with an important
perspective on the cash available to the Company to service debt, make
strategic acquisitions and investments, maintain its capital assets, satisfy
its tax obligations, and fund ongoing operations and working capital needs. As
a result, free cash flow is a significant measure of the Company's ability to
generate long-term value.It is useful for investors to know whether this
ability is being enhanced or degraded as a result of the Company's operating
performance. The Company believes the presentation of free cash flow is
relevant and useful for investors because it allows investors to evaluate the
cash generated from the Company's underlying operations in a manner similar to
the method used by management. Free cash flow is one of several components of
incentive compensation targets for certain management personnel. In addition,
free cash flow is a primary measure used externally by the Company's
investors, analysts and industry peers for purposes of valuation and
comparison of the Company's operating performance to other companies in its
industry.

As free cash flow is not a measure calculated in accordance with GAAP, free
cash flow should not be considered in isolation of, or as a substitute for,
either net cash flow provided by (used for) operating activities as a measure
of liquidity or net earnings (loss) as a measure of operating performance.
Free cash flow, as the Company calculates it, may not be comparable to
similarly titled measures employed by other companies. In addition, free cash
flow as a measure of liquidity has certain limitations, does notnecessarily
represent funds available for discretionary use, and is not necessarily a
measure of the Company's ability to fund its cash needs. When comparing free
cash flow to net cash flow provided by (used for) operating activities, the
most directly comparable GAAP financial measure, users of this financial
information should consider the types of events and transactions that are not
reflected in free cash flow.

The following table presents a reconciliation of the Company's net cash flow
provided by operating activities to free cash flow:
                           Three Months Ended            Nine Months Ended
                           September 30,                 September 30,
                              2012            2011          2012        2011
Net cash flow provided by  $  222          $  86         $  1,480     $ 1,680
operating activities
Capital expenditures          (59)            (57)          (152)       (152)
Free cash flow             $  163          $  29         $  1,328     $ 1,528
The following table presents a summary of the Company's cash flows:
                           Three Months Ended            Nine Months Ended
                           September 30,                 September 30,
                              2012            2011          2012        2011
Net cash flow provided by  $  222          $  86         $  1,480     $ 1,680
operating activities
Net cash flow used for     $  (25)         $  (78)       $  (219)     $ (249)
investing activities
Net cash flow used for     $  (1,138)      $  (407)      $  (974)     $ (964)
financing activities

CBS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION (continued)
(Unaudited; in millions)
2012 Adjusted Results
The following tables reconcile adjusted financial results to the reported
results included in this earnings release. The Company believes that adjusting
its financial results for the impact of these items is relevant and useful for
investors because it allows investors to view performance in a manner similar
to the method used by the Company's management, provides a clearer perspective
on the current underlying performance of the Company, and adjusting each
period's results on the same basis makes it easier to compare the Company's
year-over-year results.



                          Three Months Ended September 30, 2012
                          2012        Impairment    Extinguishment  2012
                          Reported     Charges       of Debt         Adjusted
  Revenues                $  3,418     $    —        $    —          $ 3,418
  OIBDA                      898           —             —           898
  OIBDA margin ^(a)          26%                                       26%
  Operating income           771           —             —           771
  Interest expense           (95)           —             —           (95)
  Interest income            2             —             —           2
  Loss on early              (57)           —             57          —
  extinguishment of debt
  Other items, net           3             —             —           3
  Earnings before income     624           —             57          681
  taxes
  Provision for income       (219)          —             (22)         (241)
  taxes
  Effective income tax       35%                                       35%
  rate
  Equity in loss of
  investee companies, net    (14)           —             —           (14)
  of tax
  Net earnings            $  391       $    —        $    35         $ 426
  Diluted EPS             $  .60       $    —        $    .05        $ .65
  Diluted weighted
  average number of
         common shares       656                                      656
         outstanding
                          Nine Months Ended September 30, 2012
                          2012        Impairment    Extinguishment  2012
                          Reported     Charges ^(b)  of Debt         Adjusted
  Revenues                $  10,818    $    —        $    —          $ 10,818
  OIBDA                      2,572         11            —           2,583
  OIBDA margin ^(a)          24%                                       24%
  Operating income           2,182         11            —           2,193
  Interest expense           (309)          —             —           (309)
  Interest income            5             —             —           5
  Net loss on early          (32)           —             32          —
  extinguishment of debt
  Other items, net           12            —             —           12
  Earnings before income     1,858         11            32          1,901
  taxes
  Provision for income       (647)          3             (13)         (657)
  taxes
  Effective income tax       35%                                       35%
  rate
  Equity in loss of
  investee companies, net    (30)           —             —           (30)
  of tax
  Net earnings            $  1,181     $    14       $    19         $ 1,214
  Diluted EPS             $  1.78      $    .02      $    .03        $ 1.83
  Diluted weighted
  average number of
         common shares       662                                      662
         outstanding


(a) OIBDA margin is defined as OIBDA or adjusted OIBDA divided by revenues.

(b) Reflects a pretax noncash impairment charge to reduce goodwill at Local
Broadcasting in connection with radio station divestitures.







SOURCE CBS Corporation

Website: http://www.cbscorporation.com
Contact: Press: Gil Schwartz, Executive Vice President, Corporate
Communications, +1-212-975-2121, gdschwartz@cbs.com, Dana McClintock, Senior
Vice President, Corporate Communications, +1-212-975-1077,
dlmcclintock@cbs.com; Investors: Adam Townsend, Executive Vice President,
Investor Relations, +1-212-975-5292, adam.townsend@cbs.com, Jessica Kourakos,
Vice President, Investor Relations, +1-212-975-6106, jessica.kourakos@cbs.com
 
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