CBS Corporation Reports Record Results For The 2012 Fourth Quarter And Full Year

 CBS Corporation Reports Record Results For The 2012 Fourth Quarter And Full
                                     Year

Fourth Quarter Revenue of $3.7 Billion, Up 2%

Fourth Quarter Adjusted OIBDA of $866 Million, Up 6%

Fourth Quarter Operating Income of $726 Million, Up 12%

Fourth Quarter Adjusted Diluted EPS of $.64, Up 14%; Diluted EPS of $.62, Up
19%

PR Newswire

NEW YORK, Feb. 14, 2013

NEW YORK, Feb. 14, 2013 /PRNewswire/ -- CBS Corporation (NYSE: CBS.A and CBS)
today reported results for the fourth quarter and full year ended December 31,
2012.

"CBS has turned in another quarter of exceptional performance, capping off
another terrific year," said Sumner Redstone, Executive Chairman, CBS
Corporation. "Our results today speak to the strength of our
strategy—producing and distributing great content and monetizing it over and
over again. I am confident that Leslie and his team will continue to
capitalize on all of the opportunities we have before us this year and
beyond."

"CBS had a record year in 2012, as well as a record fourth quarter, and the
momentum is building for an even better 2013," said Leslie Moonves, President
and Chief Executive Officer, CBS Corporation. "Advertising revenue is growing,
and our revenue from non-advertising sources continues to grow even faster.
This includes new recently signed streaming, retransmission consent, and
reverse compensation deals as well as ongoing strength in domestic and
international syndication sales. Meanwhile, the confidence and visibility we
have in our operations, along with the strategic actions we're pursuing at CBS
Outdoor, have allowed us to announce today that we are accelerating the pace
of our share repurchase program by another billion dollars. Going forward,
returning value to our shareholders will continue to be a top priority for us.
We feel very good about our future, and we are very encouraged by the strength
of our core businesses and the increasing premium we are able to command for
our content."

Fourth Quarter 2012 Results

The Company set fourth quarter records in the following key metrics:

  oAdjusted operating income before depreciation and amortization ("OIBDA")
    of $866 million
  oOperating income of $726 million
  oAdjusted diluted earnings per share from continuing operations of $.64
  oDiluted earnings per share from continuing operations of $.62

Revenues of $3.70 billion for the fourth quarter of 2012 increased 2% from
$3.61 billion in the same prior-year period. This growth was led by a 3%
increase in advertising revenues, which reflects higher political and network
advertising. Affiliate and subscription fee revenues rose 9%, driven by growth
at Cable Networks, as well as higher retransmission revenues and fees from CBS
Network affiliated television stations. Content licensing and distribution
revenues were down 7%, primarily from the timing of streaming revenues.

Adjusted OIBDA of $866 million increased 6% in the fourth quarter of 2012 from
$814 million for the same prior-year period. Operating income of $726 million
increased 12% in the fourth quarter of 2012 from $647 million in the fourth
quarter of 2011. The growth in adjusted OIBDA and operating income was
primarily driven by the higher revenues.

Adjusted net earnings from continuing operations were $414 million for the
fourth quarter of 2012, or $.64 per diluted share, up from $377 million, or
$.56 per diluted share, for the same prior-year period. Reported net earnings
from continuing operations were $403 million for the fourth quarter of 2012,
or $.62 per diluted share, up from $351 million, or $.52 per diluted share,
for last year's fourth quarter. The increase in diluted earnings per share
reflected the operating income growth, lower interest expense as a result of
the Company's 2012 debt refinancing, and lower weighted average shares
outstanding as a result of the Company's ongoing share repurchase program.

Adjusted OIBDA and adjusted net earnings from continuing operations in the
fourth quarter of 2012 exclude $19 million of restructuring charges, primarily
for the reorganization of certain business operations and early contract
termination costs. The Company will begin to see recurring cost savings
related to these actions in 2013. In the fourth quarter of 2011, restructuring
charges were $43 million.

In addition, during the first quarter of 2013, the Company announced a pair of
strategic initiatives at its outdoor advertising business. In the fourth
quarter of 2012, the Company began the process of converting its outdoor
business in the Americas into a real estate investment trust ("REIT"), and
initiated a plan to divest its outdoor advertising business in Europe and
Asia. As a result, the Company's outdoor advertising business in Europe and
Asia has been classified as held-for-sale, and its results have been presented
as a discontinued operation for all periods presented.

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

Full Year 2012 Results

In 2012, the Company set new records in the following key metrics:

  oRevenues of $14.09 billion
  oAdjusted OIBDA of $3.49 billion
  oOperating income of $2.98 billion
  oAdjusted diluted earnings per share from continuing operations of $2.55
  oDiluted earnings per share from continuing operations of $2.48

Full year 2012 revenues of $14.09 billion rose 3% from $13.64 billion in 2011
with increases in each of the Company's major revenue streams. The growth was
led by higher content licensing and distribution revenues, which were up 7%,
driven by licensing agreements for digital streaming and higher domestic and
international syndication sales. Affiliate and subscription fee revenues
increased 9%, reflecting growth at Cable Networks as well as higher
retransmission revenues and fees from CBS Network affiliated television
stations. Advertising revenues grew 1%, mainly driven by higher political
advertising associated with the U.S. Presidential election.

Adjusted OIBDA of $3.49 billion in 2012 increased 10% from $3.16 billion in
2011. Operating income of $2.98 billion increased 14% from $2.62 billion in
2011, and the operating income margin rose two percentage points, to 21%. The
adjusted OIBDA and operating income growth and margin expansion were primarily
driven by increases in high-margin revenue streams and larger profits on
television licensing revenues.

Adjusted net earnings from continuing operations in 2012 were $1.68 billion,
or $2.55 per diluted share, up from $1.42 billion, or $2.08 per diluted share,
for 2011. Reported net earnings from continuing operations for 2012 were $1.63
billion, or $2.48 per diluted share, up from $1.39 billion, or $2.04 per
diluted share, for 2011. 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.

Adjusted OIBDA and adjusted net earnings from continuing operations for 2012
exclude a noncash impairment charge of $11 million relating to radio station
divestitures, restructuring charges of $19 million, and a pretax net loss on
early extinguishment of debt of $32 million. For 2011, adjusted OIBDA and
adjusted net earnings from continuing operations exclude restructuring charges
of $43 million.

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 $199 million for the fourth quarter of 2012, compared with
an outflow of $42 million for the fourth quarter a year ago. Each of these
periods included $200 million of discretionary pension contributions. For the
2012 full year, free cash flow was $1.57 billion compared with $1.59 billion
in 2011. The Company generated cash flow from operating activities from
continuing operations of $1.82 billion for 2012 versus $1.83 billion for 2011,
reflecting increased investment in content and higher income tax payments,
offset by lower discretionary pension contributions in 2012.

In the fourth quarter of 2012, the Company repurchased 8.5 million shares of
CBS Corp. Class B Common Stock for $299 million. For the 2012 full year, the
Company repurchased 35.5 million shares for $1.17 billion, at an average cost
of $33 per share. Since the inception of the share repurchase program in
January 2011 through December 31, 2012, the Company has repurchased 77.7
million shares of its Class B Common Stock for $2.19 billion, at an average
cost of $28 per share, leaving $2.51 billion of authorization remaining at
December 31, 2012.

In addition, the Company separately announced today a plan to accelerate its
share repurchase program by $1 billion in 2013.

At December 31, 2012, the Company's debt outstanding was $5.92 billion, and
its cash balance was $708 million, which was $48 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 segment operating income (loss) before depreciation and amortization,
restructuring charges and impairment charges ("Segment OIBDA") and operating
income (loss) by segment for the three and twelve months ended December 31,
2012, and 2011. Reconciliations of all non-GAAP measures to reported results
are included at the end of this earnings release.

                                     Three Months Ended Twelve Months Ended
                                     December 31,       December 31,
 Revenues by Segment                   2012     2011     2012      2011
  Entertainment                      $ 1,989   $ 1,995  $ 7,694   $ 7,457
  Cable Networks                       438      395      1,772     1,621
  Publishing                           215      229      790       787
                Content Group          2,642    2,619    10,256    9,865
  Local Broadcasting                   787      721      2,774     2,689
  Outdoor Americas                     340      342      1,296     1,286
                Local Group            1,127    1,063    4,070     3,975
  Eliminations                         (71)      (70)     (237)     (203)
        Total Revenues               $ 3,698   $ 3,612  $ 14,089  $ 13,637
                                     Three Months Ended Twelve Months Ended
                                     December 31,       December 31,
 Revenues by Type                      2012     2011     2012      2011
  Advertising                        $ 2,415   $ 2,336  $ 8,459   $ 8,399
  Content licensing and distribution   704      753      3,468     3,236
  Affiliate and subscription fees      505      465      1,921     1,762
  Other                                74       58       241       240
        Total Revenues               $ 3,698   $ 3,612  $ 14,089  $ 13,637
                                     Three Months Ended Twelve Months Ended
                                     December 31,       December 31,
 Segment OIBDA                         2012     2011     2012      2011
  Entertainment                      $ 328     $ 318    $ 1,549   $ 1,431
  Cable Networks                       185      175      811       707
  Publishing                           31       28       89        92
                Content Group          544      521      2,449     2,230
  Local Broadcasting                   325      266      957       849
  Outdoor Americas                     94       108      378       380
                Local Group            419      374      1,335     1,229
  Corporate                            (97)      (81)     (296)     (302)
        Adjusted OIBDA                 866      814      3,488     3,157
  Restructuring charges                (19)      (43)     (19)      (43)
  Impairment charges                   —        —        (11)      —
        Total OIBDA                  $ 847     $ 771    $ 3,458   $ 3,114
                                     Three Months Ended Twelve Months Ended
                                     December 31,       December 31,
 Operating Income (Loss)               2012     2011     2012      2011
  Entertainment                      $ 280     $ 235    $ 1,381   $ 1,231
  Cable Networks                       176      169      785       684
  Publishing                           27       25       80        83
                Content Group          483      429      2,246     1,998
  Local Broadcasting                   295      242      848       750
  Outdoor Americas                     52       64       209       197
                Local Group            347      306      1,057     947
  Corporate                            (104)     (88)     (320)     (326)
        Total Operating Income       $ 726     $ 647    $ 2,983   $ 2,619

Entertainment (CBS Television Network, CBS Television Studios, CBS Global
Distribution Group, CBS Films, and CBS Interactive)

Entertainment revenues of $1.99 billion for the fourth quarter of 2012 were
even with the same prior-year period. Higher advertising revenues and growth
in network affiliation fees were offset by lower television license fee
revenues as the fourth quarter of 2011 benefited from the initial streaming
sale of The CW content. Network advertising revenues increased despite the
impact of pre-emptions for the presidential debates and election night
coverage.

Entertainment OIBDA for the fourth quarter of 2012 increased 3% to $328
million from $318 million in the same prior-year period, principally
reflecting a more profitable mix of revenues. Operating income includes
restructuring charges of $7 million in 2012 and $40 million in 2011.

Cable Networks (Showtime Networks, CBS Sports Network, and Smithsonian
Networks)

Cable Networks revenues for the fourth quarter of 2012 increased 11% to $438
million from $395 million for the same prior-year period. The growth was
driven by higher affiliate 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, as well as
an increase in revenues from the licensing of Showtime original series.

Cable Networks OIBDA for the fourth quarter of 2012 increased 6% to $185
million from $175 million in the same prior-year period primarily reflecting
revenue growth, which was partially offset by higher costs from the timing of
theatrical and original programming.

Publishing (Simon & Schuster)

Publishing revenues for the fourth quarter of 2012 decreased 6% to $215
million from $229 million for the same prior-year period as strong growth in
digital book sales was more than offset by lower print book sales. Digital
book sales increased 24% from the same prior-year period and represented 24%
of total Publishing revenues for the fourth quarter of 2012. Best-selling
titles in the fourth quarter included The Last Man by Vince Flynn and Proof of
Heaven by Eben Alexander.

Publishing OIBDA for the fourth quarter of 2012 increased $3 million to $31
million from the same prior-year period, principally driven by lower expenses
resulting from the growth in more profitable digital book sales as a
percentage of total revenues. Operating income includes restructuring charges
of $3 million for the fourth quarter of 2012 and $2 million for the same
prior-year period.

Local Broadcasting (CBS Television Stations and CBS Radio)

Local Broadcasting revenues for the fourth quarter of 2012 increased 9% to
$787 million from $721 million for the same prior-year period, reflecting
higher political advertising and retransmission revenues. CBS Television
Stations revenues increased 17%, while CBS Radio revenues were up 1%.

Local Broadcasting OIBDA for the fourth quarter of 2012 increased 22% to $325
million from $266 million for the same prior-year period, primarily driven by
the revenue growth. Operating income for the fourth quarter of 2012 includes
restructuring charges of $8 million.

Outdoor Americas (CBS Outdoor)

Outdoor Americas revenues for the fourth quarter of 2012 decreased slightly to
$340 million from $342 million for the same prior-year period, reflecting
lower revenues in Canada as a result of the nonrenewal of the Toronto transit
contract. Revenues in the United States increased 3%, driven by growth in the
U.S. billboards and displays businesses.

Outdoor Americas OIBDA for the fourth quarter of 2012 decreased 13% to $94
million from $108 million for the same prior-year period, with the entire
decrease attributable to the negative outcome of a dispute over a billboard
tax that has been imposed on the outdoor advertising industry in Toronto,
including a one-time retroactive payment. Operating income for the fourth
quarter of 2011 includes restructuring charges of $1 million.

Corporate

Corporate expenses before depreciation for the fourth quarter of 2012
increased $16 million to $97 million from the same prior-year period,
reflecting higher stock-based compensation costs associated with the increase
in the Company's stock price, which was partially offset by lower pension and
postretirement benefit costs. These lower costs primarily reflect the benefit
from pre-funding pension plans in 2011 and lower pension-related interest cost
associated with retirees.

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; the inability to
obtain the requisite regulatory approvals and changes in legislation, tax
rules or market conditions, which could adversely impact timing and the
ability to consummate or achieve the benefits of transactions involving the
Company's Outdoor business; the inability to divest the Company's Outdoor
operations in Europe and Asia on terms that the Company finds acceptable;
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  Twelve Months Ended
                                     December 31,        December 31,
                                       2012      2011      2012       2011
Revenues                             $ 3,698   $ 3,612   $ 14,089   $ 13,637
Operating income                       726       647       2,983      2,619
 Interest expense                      (94)      (106)     (402)      (435)
 Interest income                       2         2         6          6
 Net loss on early extinguishment of   —         —         (32)       —
 debt
 Other items, net                      1         (7)       6          (11)
Earnings from continuing operations    635       536       2,561      2,179
before income taxes
 Provision for income taxes            (227)     (186)     (892)      (751)
 Equity in earnings (loss) of          (5)       1         (35)       (37)
 investee companies, net of tax
Net earnings from continuing           403       351       1,634      1,391
operations
Net earnings (loss) from               (10)      19        (60)       (86)
discontinued operations
Net earnings                         $ 393     $ 370     $ 1,574    $ 1,305
Basic net earnings (loss) per common
share:
 Net earnings from continuing        $ .64     $ .54     $ 2.55     $ 2.09
 operations
 Net earnings (loss) from            $ (.02)   $ .03     $ (.09)    $ (.13)
 discontinued operations
 Net earnings                        $ .62     $ .57     $ 2.45     $ 1.97
Diluted net earnings (loss) per
common share:
 Net earnings from continuing        $ .62     $ .52     $ 2.48     $ 2.04
 operations
 Net earnings (loss) from            $ (.02)   $ .03     $ (.09)    $ (.13)
 discontinued operations
 Net earnings                        $ .60     $ .55     $ 2.39     $ 1.92
Weighted average number of common
shares outstanding:
 Basic                                 634       653       642        664
 Diluted                               650       669       659        681
Dividends per common share           $ .12     $ .10     $ .44      $ .35



CBS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited; in millions)
                                         At                 At
                                         December 31, 2012  December 31, 2011
Assets
Cash and cash equivalents                $    708           $   660
Receivables, net                              3,137             3,086
Programming and other inventory               859               735
Prepaid expenses and other current            1,016             1,068
assets
       Total current assets                   5,720             5,549
Property and equipment                        4,988             4,880
  Less accumulated depreciation and           2,717             2,508
  amortization
       Net property and equipment             2,271             2,372
Programming and other inventory               1,582             1,496
Goodwill                                      8,567             8,571
Intangible assets                             6,515             6,521
Other assets                                  1,811             1,711
Total Assets                             $    26,466        $   26,220
Liabilities and Stockholders' Equity
Accounts payable                         $    386           $   324
Participants' share and royalties             953               938
payable
Program rights                                455               577
Current portion of long-term debt             18                24
Accrued expenses and other current            2,129             2,074
liabilities
       Total current liabilities              3,941             3,937
Long-term debt                                5,904             5,958
Other liabilities                             6,408             6,417
Total Stockholders' Equity                    10,213            9,908
Total Liabilities and Stockholders'      $    26,466        $   26,220
Equity



CBS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in millions)
                                                       Twelve Months Ended
                                                       December 31,
                                                         2012        2011
Operating Activities:
Net earnings                                           $ 1,574     $ 1,305
Less: Net loss from discontinued operations              (60)        (86)
Net earnings from continuing operations                  1,634       1,391
Adjustments to reconcile net earnings from continuing
operations
 to net cash flow provided by operating activities:
 Depreciation and amortization                           475         495
 Impairment charges                                      11          —
 Stock-based compensation                                153         139
 Redemption of debt                                      (28)        —
 Equity in loss of investee companies, net of tax and    52          50
 distributions
 Change in assets and liabilities, net of investing      (478)       (243)
 and financing activities
Net cash flow provided by operating activities from      1,819       1,832
continuing operations
Net cash flow used for operating activities from         (4)         (83)
discontinued operations
Net cash flow provided by operating activities           1,815       1,749
Investing Activities:
 Acquisitions, net of cash acquired                      (146)       (75)
 Capital expenditures                                    (254)       (245)
 Investments in and advances to investee companies       (91)        (79)
 Proceeds from sale of investments                       13          12
 Proceeds from dispositions                              49          18
Net cash flow used for investing activities from         (429)       (369)
continuing operations
Net cash flow used for investing activities from         (22)        (20)
discontinued operations
Net cash flow used for investing activities              (451)       (389)
Financing Activities:
 Proceeds from issuance of notes                         1,566       —
 Repayment of notes and debentures                       (1,583)     —
 Payment of capital lease obligations                    (19)        (19)
 Payment of contingent consideration                     (33)        —
 Dividends                                               (276)       (206)
 Purchase of Company common stock                        (1,137)     (1,012)
 Payment of payroll taxes in lieu of issuing shares      (105)       (82)
 for stock-based compensation
 Proceeds from exercise of stock options                 168         72
 Excess tax benefit from stock-based compensation        103         72
 Other financing activities                              —           (5)
Net cash flow used for financing activities              (1,316)     (1,180)
Net increase in cash and cash equivalents                48          180
Cash and cash equivalents at beginning of year           660         480
Cash and cash equivalents at end of year               $ 708       $ 660



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

SegmentOperating Income (Loss) Before Depreciation and Amortization ("OIBDA")
and Adjusted OIBDA

The Company presents Segment OIBDA as the primarily measure of profit and loss
for its operating segments in accordance with FASB guidance for segment
reporting.

The following tables set forth the Company's OIBDA and Adjusted OIBDA, for the
three and twelve months ended December 31, 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: Net earnings (loss)
from discontinued 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 Company defines "Adjusted OIBDA" as OIBDA excluding
impairment and restructuring charges. For each individual operating segment,
Adjusted OIBDA is also known as "Segment OIBDA".

The Company uses Adjusted OIBDA (or Segment OIBDA for each segment), as well
as Adjusted OIBDA 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 Adjusted OIBDA is not a measure of performance calculated in
accordance with accounting principles generally accepted in the United States
("GAAP"), it should not be considered in isolation of, or as a substitute for,
net earnings (loss) as an indicator of operating performance. Adjusted 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
Adjusted OIBDA excludes 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 Adjusted OIBDA to operating income and net earnings (loss),
the most directly comparable amounts reported under GAAP. In addition, the
following tables also provide reconciliations of Segment OIBDA for each
segment to such segment's operating income (loss).

CBS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION (continued)
(Unaudited; in millions)
Three Months Ended December 31, 2012
                     Adjusted  Depreciation      Restructuring  Operating
                     OIBDA     and Amortization  Charges        Income (Loss)
Entertainment        $  328    $     (41)        $   (7)        $    280
Cable Networks          185         (9)             —               176
Publishing              31          (1)             (3)             27
       Content Group    544         (51)            (10)            483
Local Broadcasting      325         (22)            (8)             295
Outdoor Americas        94          (42)            —               52
       Local Group      419         (64)            (8)             347
Corporate               (97)         (6)             (1)             (104)
    Total            $  866    $     (121)       $   (19)       $    726
    Margin ^(a)         23%                                          20%
Three Months Ended December 31, 2011
                     Adjusted  Depreciation      Restructuring  Operating
                     OIBDA     and Amortization  Charges        Income (Loss)
Entertainment        $  318    $     (43)        $   (40)       $    235
Cable Networks          175         (6)             —               169
Publishing              28          (1)             (2)             25
       Content Group    521         (50)            (42)            429
Local Broadcasting      266         (24)            —               242
Outdoor Americas        108         (43)            (1)             64
       Local Group      374         (67)            (1)             306
Corporate               (81)         (7)             —               (88)
    Total            $  814    $     (124)       $   (43)       $    647
    Margin ^(a)         23%                                          18%



                                               Three Months Ended December 31,
                                                    2012            2011
Adjusted OIBDA                                 $    866         $   814
     Restructuring charges                          (19)            (43)
Total OIBDA                                         847             771
     Depreciation and amortization                  (121)           (124)
Operating income                                    726             647
     Interest expense                               (94)            (106)
     Interest income                                2               2
     Other items, net                               1               (7)
Earnings from continuing operations before          635             536
income taxes
     Provision for income taxes                     (227)           (186)
     Equity in earnings (loss) of investee          (5)             1
     companies, net of tax
Net earnings from continuing operations             403             351
Net earnings (loss) from discontinued               (10)            19
operations
Net earnings                                   $    393         $   370
(a) Margin is defined as Adjusted OIBDA or operating income, as applicable,
divided by revenues.





CBS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION (continued)
(Unaudited; in millions)
Twelve Months Ended December 31, 2012
                 Adjusted   Depreciation  Impairment  Restructuring  Operating
                 OIBDA      and           Charges     Charges        Income
                            Amortization                             (Loss)
Entertainment    $ 1,549    $   (161)     $  —        $   (7)        $  1,381
Cable Networks     811         (26)         —            —             785
Publishing         89          (6)          —            (3)           80
       Content     2,449       (193)        —            (10)          2,246
       Group
Local              957         (90)         (11)         (8)           848
Broadcasting
Outdoor Americas   378         (169)        —            —             209
       Local       1,335       (259)        (11)         (8)           1,057
       Group
Corporate          (296)        (23)         —            (1)           (320)
    Total        $ 3,488    $   (475)     $  (11)     $   (19)       $  2,983
    Margin ^(a)    25%                                                  21%
Twelve Months Ended December 31, 2011
                 Adjusted   Depreciation  Impairment  Restructuring  Operating
                 OIBDA      and           Charges     Charges        Income
                            Amortization                             (Loss)
Entertainment    $ 1,431    $   (160)     $  —        $   (40)       $  1,231
Cable Networks     707         (23)         —            —             684
Publishing         92          (7)          —            (2)           83
       Content     2,230       (190)        —            (42)          1,998
       Group
Local              849         (99)         —            —             750
Broadcasting
Outdoor Americas   380         (182)        —            (1)           197
       Local       1,229       (281)        —            (1)           947
       Group
Corporate          (302)        (24)         —            —             (326)
    Total        $ 3,157    $   (495)     $  —        $   (43)       $  2,619
    Margin ^(a)    23%                                                  19%



                                             Twelve Months Ended December 31,
                                                   2012             2011
Adjusted OIBDA                               $     3,488        $   3,157
          Impairment charges                       (11)             —
          Restructuring charges                    (19)             (43)
Total OIBDA                                        3,458            3,114
          Depreciation and amortization            (475)            (495)
Operating income                                   2,983            2,619
          Interest expense                         (402)            (435)
          Interest income                          6                6
          Net loss on early extinguishment         (32)             —
          of debt
          Other items, net                         6                (11)
Earnings from continuing operations before         2,561            2,179
income taxes
          Provision for income taxes               (892)            (751)
          Equity in loss of investee               (35)             (37)
          companies, net of tax
Net earnings from continuing operations            1,634            1,391
Net loss from discontinued operations              (60)             (86)
Net earnings                                 $     1,574        $   1,305
(a) Margin is defined as Adjusted OIBDA, 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 before operating cash flow from discontinued operations
and 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  Twelve Months Ended
                                    December 31,        December 31,
                                      2012      2011      2012        2011
Net cash flow provided by operating $ 335     $ 69      $ 1,815     $ 1,749
activities
Capital expenditures                  (115)     (105)     (254)       (245)
Exclude operating cash flow from      21        6         (4)         (83)
discontinued operations
Free cash flow                      $ 199     $ (42)    $ 1,565     $ 1,587
The following table presents a summary of the Company's cash flows:
                                    Three Months Ended  Twelve Months Ended
                                    December 31,        December 31,
                                      2012      2011      2012        2011
Net cash flow provided by operating $ 335     $ 69      $ 1,815     $ 1,749
activities
Net cash flow used for investing    $ (232)   $ (140)   $ (451)     $ (389)
activities
Net cash flow used for financing    $ (342)   $ (216)   $ (1,316)   $ (1,180)
activities

CBS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION (continued)
(Unaudited; in millions, except per share amounts)

2012 and 2011 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 December 31, 2012
                               2012           Restructuring      2012
                               Reported        Charges ^(a)       Adjusted
   Revenues                    $    3,698      $    —             $   3,698
   OIBDA                            847            19               866
   OIBDA margin ^(b)                23%                               23%
   Operating income                 726            19               745
   Interest expense                 (94)            —                (94)
   Interest income                  2              —                2
   Other items, net                 1              —                1
   Earnings from continuing
   operations before income         635            19               654
   taxes
   Provision for income taxes       (227)           (8)               (235)
   Effective income tax rate        36%                               36%
   Equity in loss of investee       (5)             —                (5)
   companies, net of tax
   Net earnings from           $    403        $    11            $   414
   continuing operations
   Diluted EPS from continuing $    .62        $    .02           $   .64
   operations
   Diluted weighted average
   number of
               common shares        650                              650
               outstanding
                               Three Months Ended December 31, 2011
                               2011           Restructuring      2011
                               Reported        Charges ^(c)       Adjusted
   Revenues                    $    3,612      $    —             $   3,612
   OIBDA                            771            43               814
   OIBDA margin ^(b)                21%                               23%
   Operating income                 647            43               690
   Interest expense                 (106)           —                (106)
   Interest income                  2              —                2
   Other items, net                 (7)             —                (7)
   Earnings from continuing
   operations before income         536            43               579
   taxes
   Provision for income taxes       (186)           (17)              (203)
   Effective income tax rate        35%                               35%
   Equity in earnings of
   investee companies, net of       1              —                1
   tax
   Net earnings from           $    351        $    26            $   377
   continuing operations
   Diluted EPS from continuing $    .52        $    .04           $   .56
   operations
   Diluted weighted average
   number of
               common shares        669                              669
               outstanding
(a) Restructuring charges at Entertainment, Publishing, Local Broadcasting and
Corporate primarily for the reorganization of certain business operations and
early contract termination costs.

(b) OIBDA margin is defined as OIBDA or Adjusted OIBDA divided by revenues.

(c) Restructuring charges at Entertainment, Publishing and Outdoor Americas
primarily associated with the relocation and closure of certain business
activities and other exit costs.



CBS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
(continued)
(Unaudited; in millions, except per share amounts)
                Twelve Months Ended December 31, 2012
                2012     Impairment  Restructuring  Extinguishment  2012
                Reported  Charges     Charges ^(b)   of Debt         Adjusted
                          ^(a)
 Revenues       $ 14,089  $   —       $   —          $    —          $ 14,089
 OIBDA            3,458      11          19             —           3,488
 OIBDA margin     25%                                                  25%
 ^(c)
 Operating        2,983      11          19             —           3,013
 income
 Interest         (402)       —           —              —           (402)
 expense
 Interest         6          —           —              —           6
 income
 Loss on early
 extinguishment   (32)        —           —              32          —
 of debt
 Other items,     6          —           —              —           6
 net
 Earnings from
 continuing
 operations       2,561      11          19             32          2,623
 before income
 taxes
 Provision for    (892)       3           (8)             (13)         (910)
 income taxes
 Effective
 income tax       35%                                                  35%
 rate
 Equity in loss
 of investee      (35)        —           —              —           (35)
 companies, net
 of tax
 Net earnings
 from           $ 1,634   $   14      $   11         $    19         $ 1,678
 continuing
 operations
 Diluted EPS
 from           $ 2.48    $   .02     $   .02        $    .03        $ 2.55
 continuing
 operations
 Diluted
 weighted
 average number
 of
   common
   shares         659                                                 659
   outstanding
                Twelve Months Ended December 31, 2011
                2011     Impairment  Restructuring  Extinguishment  2011
                Reported  Charges     Charges ^(d)   of Debt         Adjusted
 Revenues       $ 13,637  $   —       $   —          $    —          $ 13,637
 OIBDA            3,114      —           43             —           3,157
 OIBDA margin     23%                                                  23%
 ^(c)
 Operating        2,619      —           43             —           2,662
 income
 Interest         (435)       —           —              —           (435)
 expense
 Interest         6          —           —              —           6
 income
 Other items,     (11)        —           —              —           (11)
 net
 Earnings from
 continuing
 operations       2,179      —           43             —           2,222
 before income
 taxes
 Provision for    (751)       —           (17)            —           (768)
 income taxes
 Effective
 income tax       34%                                                  35%
 rate
 Equity in loss
 of investee      (37)        —           —              —           (37)
 companies, net
 of tax
 Net earnings
 from           $ 1,391   $   —       $   26         $    —          $ 1,417
 continuing
 operations
 Diluted EPS
 from           $ 2.04    $   —       $   .04        $    —          $ 2.08
 continuing
 operations
 Diluted
 weighted
 average number
 of
   common
   shares         681                                                 681
   outstanding


(a) Reflects a noncash impairment charge to reduce goodwill at Local
Broadcasting in connection with radio station divestitures.
(b) Restructuring charges at Entertainment, Publishing, Local Broadcasting and
Corporate primarily for the reorganization of certain business operations and
early contract termination costs.
(c) OIBDA margin is defined as OIBDA or Adjusted OIBDA divided by revenues.
(d) Restructuring charges at Entertainment, Publishing and Outdoor Americas
primarily associated with the relocation and closure of certain business
activities and other exit costs.





SOURCE CBS Corporation

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