CBS Corporation Reports 2013 Fourth Quarter And Full Year Results

      CBS Corporation Reports 2013 Fourth Quarter And Full Year Results

Fourth Quarter Revenue of $3.9 Billion, Up 6%

Fourth Quarter Adjusted OIBDA of $927 Million, Up 7%; Reported OIBDA Also Up
7%

Fourth Quarter Operating Income of $793 Million, Up 9%

Fourth Quarter Adjusted Diluted EPS of $.78, Up 22%; Reported Diluted EPS, Up
23%

PR Newswire

NEW YORK, Feb. 12, 2014

NEW YORK, Feb. 12, 2014 /PRNewswire/ --CBS Corporation (NYSE: CBS.A and CBS)
today reported the Company's highest-ever fourth quarter and full year results
in revenues, operating income before depreciation and amortization ("OIBDA"),
operating income, and diluted earnings per share.

"CBS continues to turn in stellar performances year in and year out, and none
better than 2013," said Sumner Redstone, Executive Chairman, CBS Corporation.
"The Company's strategy of monetizing its content across all platforms is
driving our results today, and it will continue to enhance our ability to
achieve even greater success in the future. I'm confident that Les and his
team will lead CBS to new heights in 2014 and beyond."

"Our record fourth-quarter and full-year results demonstrate CBS's stature as
one of the world's foremost creators of premium content," said Leslie Moonves,
President and Chief Executive Officer, CBS Corporation. "In addition to the
solid performance of our base business, our fast-growing, non-advertising
revenue streams are playing a bigger and bigger role in our results, and they
will continue to do so in the years to come. These include the sale of three
hit shows—Hawaii Five-0, Blue Bloods and Elementary—into domestic syndication,
along with new deals in digital streaming, international syndication,
retransmission consent, and reverse compensation. Plus, we plan to launch the
IPO of our Outdoor business this quarter, which will unlock its value and
significantly enhance our ability to return capital to shareholders. In fact,
that's why today we're announcing an accelerated share repurchase of $1.5
billion in addition to stepping up the pace of our open market share
repurchases during the first quarter. Our Outdoor transactions will also
result in a CBS that is much closer to a pure content Company, with about half
of our revenue coming from steady and recurring sources. Looking ahead, we are
extremely excited about all the opportunities that we have in a marketplace
that's exploding with new ways to engage with the best content."

Fourth Quarter 2013 Results

The Company reported record fourth quarter results in the following key
metrics:

  oRevenues of $3.91 billion
  oAdjusted OIBDA of $927 million
  oOperating income of $793 million
  oAdjusted diluted earnings per share from continuing operations of $.78

Revenues of $3.91 billion for the fourth quarter of 2013 grew 6% from $3.70
billion in the same prior-year period. This growth was led by a 28% increase
in content licensing and distribution revenues, which was driven by higher
domestic and international licensing of television programming. Affiliate and
subscription fee revenues grew 7%, principally reflecting higher cable
affiliate fees, retransmission revenues, and fees from CBS Television
Network-affiliated television stations. Advertising revenues remained
relatively even with the prior-year period, as a 4% increase at the CBS
Television Network was offset by lower political advertising revenues at Local
Broadcasting.

Adjusted OIBDA of $927 million for the fourth quarter of 2013 grew 7% from
$866 million for the same prior-year period, and operating income of $793
million rose 9% from $726 million. The adjusted OIBDA and operating income
growth was driven by higher revenues, which were partially offset by increased
investment in television content and higher stock-based compensation, mainly
attributable to the appreciation of the Company's stock price.

Adjusted net earnings from continuing operations were $477 million for the
fourth quarter of 2013, or $.78 per diluted share, up from $414 million, or
$.64 per diluted share, for the same prior-year period. Reported net earnings
from continuing operations were $465 million for the fourth quarter of 2013,
or $.76 per diluted share, up from $403 million, or $.62 per diluted share,
for last year's fourth quarter. These increases reflect the operating income
growth and lower weighted average shares outstanding, which are a result of
the Company's ongoing share repurchase program.

Adjusted OIBDA and adjusted net earnings from continuing operations exclude
restructuring charges of $20 million ($12 million, net of tax) for the fourth
quarter of 2013 and $19 million ($11 million, net of tax) for the fourth
quarter of 2012, primarily for the reorganization and closure of certain
business operations, as well as early contract termination costs.

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

Full Year 2013 Results

For 2013, the Company reported all-time highs in the following key metrics:

  oRevenues of $15.28 billion
  oAdjusted OIBDA of $3.74 billion
  oOperating income of $3.26 billion
  oAdjusted diluted earnings per share from continuing operations of $3.02

Full year 2013 revenues of $15.28 billion grew 8% from $14.09 billion in 2012,
reflecting increases across all of the Company's main revenue streams. Content
licensing and distribution revenues increased 15%, led by growth from domestic
and international licensing of programming for syndication and digital
streaming. Advertising revenues rose 4%, principally driven by growth at the
CBS Television Network, including the benefit from the broadcast of Super Bowl
XLVII, as well as higher revenues from CBS Interactive. These increases were
partially offset by lower political advertising revenues at Local
Broadcasting, a result of the U.S. Presidential election in 2012. Affiliate
and subscription fee revenues grew 16%, primarily driven by growth in fees
from CBS Television Network-affiliated stations, retransmission consent, and
cable affiliates, as well as the benefit of two pay-per-view boxing events.

Adjusted OIBDA of $3.74 billion in 2013 rose 7% from $3.49 billion in 2012,
and operating income of $3.26 billion increased 9% from $2.98 billion in 2012.
The adjusted OIBDA and operating income growth were primarily driven by the
revenue increase, which was partially offset by higher sports programming
costs, increased investment in content, and higher stock-based compensation
primarily attributable to appreciation in the Company's stock price.

Adjusted net earnings from continuing operations in 2013 were $1.89 billion,
or $3.02 per diluted share, up from $1.68 billion, or $2.55 per diluted share,
for 2012. Reported net earnings from continuing operations in 2013 were $1.87
billion, or $3.00 per diluted share, up from $1.63 billion, or $2.48 per
diluted share, for 2012. The increases were driven by growth in revenues and
operating income, as well as lower weighted average shares outstanding from
the Company's ongoing share repurchases.

Adjusted OIBDA and adjusted net earnings from continuing operations in 2013
exclude restructuring charges of $20 million. For 2012, adjusted OIBDA and
adjusted net earnings from continuing operations exclude a noncash impairment
charge of $11 million related to radio stations divestitures, restructuring
charges of $19 million, and a pretax net loss on early extinguishment of debt
of $32 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
For the fourth quarter of 2013, free cash flow was $382 million compared with
$199 million for the same prior-year period. Last year's fourth quarter
included $200 million of discretionary pension contributions. For the 2013
full year, free cash flow grew from $1.57 billion in the prior year to a
record $1.77 billion, including a discretionary pension contribution of $150
million to prefund the Company's qualified plans. The Company generated
operating cash flow from continuing operations of $2.04 billion in 2013 versus
$1.82 billion for 2012.

During the fourth quarter of 2013, the Company repurchased 6.1 million shares
of CBS Corp. Class B Common Stock for $364 million. For the full year, the
Company repurchased 45.8 million shares of CBS Corp. Class B Common Stock for
$2.20 billion, at an average price of approximately $48 per share. Since the
share repurchase program was initiated in January 2011 through the end of
2013, the Company has repurchased 123.5 million shares of its Class B Common
Stock for $4.39 billion, at an average cost of approximately $36 per share,
leaving $5.43 billion of authorization remaining at December 31, 2013.

Outdoor Initiatives
In January 2014, in connection with the Company's strategic initiatives for
its Outdoor Americas segment, Outdoor Americas borrowed $1.60 billion through
an $800 million senior secured term loan credit facility and the issuance of
$800 million of senior notes. Also in January 2014, Outdoor Americas entered
into a $425 million revolving credit facility. As of February 12, 2014, there
were no outstanding borrowings under the revolving credit facility. The debt
proceeds will primarily be used by the Company to repurchase shares of CBS
Corp. Class B Common Stock through a $1.5 billion accelerated share repurchase
transaction, with $50 million retained by Outdoor Americas for its corporate
purposes and ongoing cash needs. The Company currently expects to launch the
initial public offering of CBS Outdoor Americas Inc. during the first quarter
of 2014.

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,
2013, and 2012. 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                    2013     2012      2013      2012
  Entertainment                      $  2,214  $ 1,989  $  8,645   $ 7,694
  Cable Networks                        477      438       2,069     1,772
  Publishing                            225      215       809       790
                Content Group           2,916    2,642     11,523    10,256
  Local Broadcasting                    719      787       2,696     2,774
  Outdoor Americas                      347      340       1,304     1,296
                Local Group             1,066    1,127     4,000     4,070
  Eliminations                          (71)     (71)      (239)     (237)
        Total Revenues               $  3,911  $ 3,698  $  15,284  $ 14,089
                                     Three Months Ended Twelve Months Ended
                                     December 31,      December 31,
 Revenues by Type                       2013     2012      2013      2012
  Advertising                        $  2,402  $ 2,415  $  8,803   $ 8,459
  Content licensing and distribution    898      704       3,997     3,468
  Affiliate and subscription fees       542      505       2,221     1,921
  Other                                 69       74        263       241
        Total Revenues               $  3,911  $ 3,698  $  15,284  $ 14,089
                                     Three Months Ended Twelve Months Ended
                                     December 31,      December 31,
 Segment OIBDA                          2013     2012      2013      2012
  Entertainment                      $  418    $ 328    $  1,758   $ 1,549
  Cable Networks                        199      185       898       811
  Publishing                            37       31        113       89
                Content Group           654      544       2,769     2,449
  Local Broadcasting                    263      325       898       957
  Outdoor Americas                      120      94        411       378
                Local Group             383      419       1,309     1,335
  Corporate                             (110)    (97)      (342)     (296)
        Adjusted OIBDA                  927      866       3,736     3,488
  Restructuring charges                 (20)     (19)      (20)      (19)
  Impairment charges                    —        —         —         (11)
        Total OIBDA                  $  907    $ 847    $  3,716   $ 3,458
                                     Three Months Ended Twelve Months Ended
                                     December 31,      December 31,
 Operating Income (Loss)                2013     2012      2013      2012
  Entertainment                      $  368    $ 280    $  1,593   $ 1,381
  Cable Networks                        193      176       877       785
  Publishing                            35       27        106       80
                Content Group           596      483       2,576     2,246
  Local Broadcasting                    236      295       807       848
  Outdoor Americas                      78       52        243       209
                Local Group             314      347       1,050     1,057
  Corporate                             (117)    (104)     (367)     (320)
        Total Operating Income       $  793    $ 726    $  3,259   $ 2,983

Entertainment (CBS Television Network, CBS Television Studios, CBS Global
Distribution Group, CBS Films, and CBS Interactive)
Entertainment revenues of $2.21 billion for the fourth quarter of 2013 grew
11% from $1.99 billion for the same prior-year period. This increase was
principally driven by higher domestic and international licensing of
television programming for digital streaming and syndication, higher
advertising revenues, and growth in network affiliation fees. Advertising
revenues at the CBS Television Network grew 4%.

Entertainment OIBDA for the fourth quarter of 2013 of $418 million rose 27%
from $328 million for the same prior-year period. This increase was driven by
revenue growth, which was partially offset by higher investment in television
content. Operating income includes restructuring charges of $12 million and $7
million for the fourth quarter of 2013 and 2012, respectively.

Cable Networks (Showtime Networks, CBS Sports Network, and Smithsonian
Networks)
Cable Networks revenues for the fourth quarter of 2013 increased 9% to $477
million from $438 million for the same prior-year period. This growth was
driven by the licensing of Showtime original series as well as higher
affiliate revenues, reflecting increases in rates and subscriptions at
Showtime Networks (which includes Showtime, The Movie Channel, and Flix), CBS
Sports Network, and Smithsonian Networks.

Cable Networks OIBDA for the fourth quarter of 2013 grew 8% to $199 million
from $185 million for the same prior-year period. The increase was primarily a
result of revenue growth, which was partially offset by higher costs
associated with the timing of original and theatrical programming.

Publishing (Simon & Schuster)
Publishing revenues for the fourth quarter of 2013 increased 5% to $225
million from $215 million for the same prior-year period, reflecting growth in
print book sales. Best-selling titles in the fourth quarter of 2013 included
Rush Revere and the Brave Pilgrims by Rush Limbaugh and The Bully Pulpit by
Doris Kearns Goodwin.

Publishing OIBDA for the fourth quarter of 2013 increased 19% to $37 million
from $31 million for the same prior-year period. This growth was driven by
higher revenues. Operating income includes restructuring charges of $1 million
and $3 million for the fourth quarter of 2013 and 2012, respectively.

Local Broadcasting (CBS Television Stations and CBS Radio)
Local Broadcasting revenues for the fourth quarter of 2013 decreased 9% to
$719 million from $787 million for the same prior-year period. The decrease
was the result of lower political advertising revenues compared with 2012,
which benefited from the U.S. presidential election, and was partially offset
by growth in retransmission consent fees. Revenues for CBS Television Stations
and CBS Radio decreased 12% and 4%, respectively. Non-political revenues for
CBS Television Stations increased 9%, while non-political revenues for CBS
Radio were comparable with the fourth quarter of 2012.

Local Broadcasting OIBDA for the fourth quarter of 2013 decreased 19% to $263
million from $325 million for the same prior-year period, primarily driven by
lower political advertising revenues. Operating income includes restructuring
charges of $5 million and $8 million for the fourth quarter of 2013 and 2012,
respectively.

Outdoor Americas (CBS Outdoor)
Outdoor Americas revenues for the fourth quarter of 2013 grew 2% to $347
million from $340 million for the same prior-year period. In constant dollars,
revenues rose 3%, led by 5% growth in the U.S.

Outdoor Americas OIBDA for the fourth quarter of 2013 grew 28% to $120 million
from $94 million for the same prior-year period. This increase was primarily
driven by three items: revenue growth; a gain from the disposition of certain
transit shelter operations in 2013; and a billboard tax that included a
one-time retroactive payment in 2012.

Corporate
Corporate expenses before depreciation for the fourth quarter of 2013
increased $13 million to $110 million from $97 million for the same prior-year
period, reflecting higher stock-based compensation, which was mainly
associated with the increase in the Company's stock price.

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, TVGN (a joint
venture between CBS Corporation and Lionsgate), Smithsonian Networks, Simon &
Schuster, CBS Television Stations, CBS Radio, CBS Outdoor, CBS Television
Studios, CBS Global Distribution Group (CBS Studios International and CBS
Television Distribution), 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 impact of
negotiations or the loss of affiliation agreements or retransmission
agreements; 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 Americas business; 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,
                                        2013      2012      2013       2012
Revenues                              $ 3,911   $ 3,698   $ 15,284   $ 14,089
Operating income                        793       726       3,259      2,983
     Interest expense                   (95)      (94)      (376)      (402)
     Interest income                    2         2         8          6
     Net loss on early extinguishment   —         —         —          (32)
     of debt
     Other items, net                   8         1         6          6
Earnings from continuing operations     708       635       2,897      2,561
before income taxes
     Provision for income taxes         (234)     (227)     (978)      (892)
     Equity in loss of investee         (9)       (5)       (46)       (35)
     companies, net of tax
Net earnings from continuing            465       403       1,873      1,634
operations
Net earnings (loss) from discontinued   5         (10)      6          (60)
operations, net of tax
Net earnings                          $ 470     $ 393     $ 1,879    $ 1,574
Basic net earnings (loss) per common
share:
     Net earnings from continuing     $ .78     $ .64     $ 3.08     $ 2.55
     operations
     Net earnings (loss) from         $ .01     $ (.02)   $ .01      $ (.09)
     discontinued operations
     Net earnings                     $ .78     $ .62     $ 3.09     $ 2.45
Diluted net earnings (loss) per
common share:
     Net earnings from continuing     $ .76     $ .62     $ 3.00     $ 2.48
     operations
     Net earnings (loss) from         $ .01     $ (.02)   $ .01      $ (.09)
     discontinued operations
     Net earnings                     $ .76     $ .60     $ 3.01     $ 2.39
Weighted average number of common
shares outstanding:
     Basic                              599       634       608        642
     Diluted                            615       650       624        659
Dividends per common share            $ .12     $ .12     $ .48      $ .44





CBS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited; in millions)
                                          At                 At
                                          December 31, 2013  December 31, 2012
Assets
Cash and cash equivalents                 $    397           $   708
Receivables, net                               3,415             3,137
Programming and other inventory                772               859
Prepaid expenses and other current assets      786               1,016
         Total current assets                  5,370             5,720
Property and equipment                         5,023             4,988
  Less accumulated depreciation and            2,787             2,717
  amortization
         Net property and equipment            2,236             2,271
Programming and other inventory                1,697             1,582
Goodwill                                       8,562             8,567
Intangible assets                              6,430             6,515
Other assets                                   2,092             1,811
Total Assets                              $    26,387        $   26,466
Liabilities and Stockholders' Equity
Accounts payable                          $    371           $   386
Participants' share and royalties payable      1,008             953
Program rights                                 398               455
Commercial paper                               475               —
Current portion of long-term debt              21                18
Accrued expenses and other current             1,934             2,129
liabilities
         Total current liabilities             4,207             3,941
Long-term debt                                 5,940             5,904
Other liabilities                              6,274             6,408
Total Stockholders' Equity                     9,966             10,213
Total Liabilities and Stockholders'       $    26,387        $   26,466
Equity





CBS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in millions)
                                                        Twelve Months Ended
                                                        December 31,
                                                          2013        2012
Operating Activities:
Net earnings                                            $ 1,879     $ 1,574
Less: Net earnings (loss) from discontinued operations    6           (60)
Net earnings from continuing operations                   1,873       1,634
Adjustments to reconcile net earnings from continuing
operations
 to net cash flow provided by operating activities:
 Depreciation and amortization                            457         475
 Impairment charges                                       —           11
 Stock-based compensation                                 229         153
 Redemption of debt                                       —           (28)
 Equity in loss of investee companies, net of tax and     59          52
 distributions
 Change in assets and liabilities, net of investing and   (574)       (478)
 financing activities
Net cash flow provided by operating activities from       2,044       1,819
continuing operations
Net cash flow used for operating activities from          (171)       (4)
discontinued operations
Net cash flow provided by operating activities            1,873       1,815
Investing Activities:
 Acquisitions, net of cash acquired                       (32)        (146)
 Capital expenditures                                     (270)       (254)
 Investments in and advances to investee companies        (176)       (91)
 Proceeds from sale of investments                        30          13
 Proceeds from dispositions                               193         49
Net cash flow used for investing activities from          (255)       (429)
continuing operations
Net cash flow used for investing activities from          (17)        (22)
discontinued operations
Net cash flow used for investing activities               (272)       (451)
Financing Activities:
 Proceeds from short-term debt borrowings, net            475         —
 Proceeds from issuance of notes                          —           1,566
 Repayment of notes and debentures                        —           (1,583)
 Payment of capital lease obligations                     (17)        (19)
 Payment of contingent consideration                      (30)        (33)
 Dividends                                                (300)       (276)
 Purchase of Company common stock                         (2,185)     (1,137)
 Payment of payroll taxes in lieu of issuing shares for   (145)       (105)
 stock-based compensation
 Proceeds from exercise of stock options                  146         168
 Excess tax benefit from stock-based compensation         148         103
 Other financing activities                               (4)         —
Net cash flow used for financing activities               (1,912)     (1,316)
Net (decrease) increase in cash and cash equivalents      (311)       48
Cash and cash equivalents at beginning of year            708         660
Cash and cash equivalents at end of year                $ 397       $ 708





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

Segment Operating Income (Loss) Before Depreciation and Amortization ("OIBDA")
and Adjusted OIBDA

The Company presents Segment OIBDA as the primary 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, 2013 and 2012. 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, net of tax; 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 restructuring and impairment 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).
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, 2013
                     Adjusted      Depreciation    Restructuring     Operating
                     OIBDA         and             Charges           Income
                                   Amortization                      (Loss)
Entertainment        $  418        $    (38)       $    (12)         $  368
Cable Networks          199             (5)             (1)             193
Publishing              37              (1)             (1)             35
         Content        654             (44)            (14)            596
         Group
Local Broadcasting      263             (22)            (5)             236
Outdoor Americas        120             (42)            —               78
         Local Group    383             (64)            (5)             314
Corporate               (110)           (6)             (1)             (117)
     Total           $  927        $    (114)      $    (20)         $  793
     Margin ^(a)        24%                                             20%
Three Months Ended December 31, 2012
                     Adjusted      Depreciation    Restructuring     Operating
                     OIBDA         and             Charges           Income
                                   Amortization                      (Loss)
Entertainment        $  328        $    (41)       $    (7)          $  280
Cable Networks          185             (9)             —               176
Publishing              31              (1)             (3)             27
         Content        544             (51)            (10)            483
         Group
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,
                                                        2013            2012
Adjusted OIBDA                                     $    927          $  866
         Restructuring charges                          (20)            (19)
Total OIBDA                                             907             847
         Depreciation and amortization                  (114)           (121)
Operating income                                        793             726
         Interest expense                               (95)            (94)
         Interest income                                2               2
         Other items, net                               8               1
Earnings from continuing operations before income       708             635
taxes
         Provision for income taxes                     (234)           (227)
         Equity in loss of investee companies,          (9)             (5)
         net of tax
Net earnings from continuing operations                 465             403
Net earnings (loss) from discontinued                   5               (10)
operations, net of tax
Net earnings                                       $    470          $  393

(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, 2013
                 Adjusted   Depreciation  Restructuring  Operating
                 OIBDA      and           Charges        Income
                            Amortization                 (Loss)
Entertainment    $  1,758   $   (153)     $   (12)       $   1,593
Cable Networks      898         (20)          (1)            877
Publishing          113         (6)           (1)            106
      Content       2,769       (179)         (14)           2,576
      Group
Local               898         (86)          (5)            807
Broadcasting
Outdoor Americas    411         (168)         —              243
      Local         1,309       (254)         (5)            1,050
      Group
Corporate           (342)       (24)          (1)            (367)
   Total         $  3,736   $   (457)     $   (20)       $   3,259
   Margin ^(a)      24%                                      21%
Twelve Months Ended December 31, 2012
                 Adjusted   Depreciation  Restructuring  Impairment  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)          (8)            (11)       848
Broadcasting
Outdoor Americas    378         (169)         —              —          209
      Local         1,335       (259)         (8)            (11)       1,057
      Group
Corporate           (296)       (23)          (1)            —          (320)
   Total         $  3,488   $   (475)     $   (19)       $   (11)    $  2,983
   Margin ^(a)      25%                                                 21%
                                                         Twelve Months Ended
                                                         December 31,
                                                             2013       2012
Adjusted OIBDA                                           $   3,736   $  3,488
      Restructuring charges                                  (20)       (19)
      Impairment charges                                     —          (11)
Total OIBDA                                                  3,716      3,458
      Depreciation and amortization                          (457)      (475)
Operating income                                             3,259      2,983
      Interest expense                                       (376)      (402)
      Interest income                                        8          6
      Net loss on early extinguishment                       —          (32)
      of debt
      Other items, net                                       6          6
Earnings from continuing operations                          2,897      2,561
before income taxes
      Provision for income taxes                             (978)      (892)
      Equity in loss of investee                             (46)       (35)
      companies, net of tax
Net earnings from continuing operations                      1,873      1,634
Net earnings (loss) from discontinued                        6          (60)
operations, net of tax
Net earnings                                             $   1,879   $  1,574

(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,
                                      2013      2012      2013        2012
Net cash flow provided by operating $ 553     $ 335     $ 1,873     $ 1,815
activities
Capital expenditures                  (130)     (115)     (270)       (254)
Exclude operating cash flow from      41        21        (171)       (4)
discontinued operations
Free cash flow                      $ 382     $ 199     $ 1,774     $ 1,565
The following table presents a summary of the Company's cash flows:
                                    Three Months Ended  Twelve Months Ended
                                    December 31,        December 31,
                                      2013      2012      2013        2012
Net cash flow provided by operating $ 553     $ 335     $ 1,873     $ 1,815
activities
Net cash flow used for investing    $ (156)   $ (232)   $ (272)     $ (451)
activities
Net cash flow used for financing    $ (226)   $ (342)   $ (1,912)   $ (1,316)
activities





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

2013 and 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 December 31, 2013
                                        2013        Restructuring  2013
                                        Reported   Charges ^(a)  Adjusted
 Revenues                               $  3,911    $    —          $  3,911
 OIBDA                                     907           20            927
 OIBDA margin ^(b)                         23%                         24%
 Operating income                          793           20            813
 Interest expense                          (95)          —             (95)
 Interest income                           2             —             2
 Other items, net                          8             —             8
 Earnings from continuing operations       708           20            728
 before income taxes
 Provision for income taxes                (234)         (8)           (242)
 Effective income tax rate                 33%                         33%
 Equity in loss of investee companies,     (9)           —             (9)
 net of tax
 Net earnings from continuing           $  465      $    12         $  477
 operations
 Diluted EPS from continuing operations $  .76      $    .02        $  .78
 Diluted weighted average number of
                    common shares          615                         615
                    outstanding
                                        Three Months Ended December 31, 2012
                                        2012        Restructuring  2012
                                        Reported   Charges ^(c)  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       635           19            654
 before income taxes
 Provision for income taxes                (227)         (8)           (235)
 Effective income tax rate                 36%                         36%
 Equity in loss of investee companies,     (5)           —             (5)
 net of tax
 Net earnings from continuing           $  403      $    11         $  414
 operations
 Diluted EPS from continuing operations $  .62      $    .02        $  .64
 Diluted weighted average number of
                    common shares          650                         650
                    outstanding

      Restructuring charges at Entertainment, Cable Networks, Publishing,
(a)  Local Broadcasting and Corporate primarily for the reorganization and
      closure of certain business operations.
(b) OIBDA margin is defined as OIBDA or Adjusted OIBDA divided by revenues.
      Restructuring charges at Entertainment, Publishing, Local Broadcasting
(c) and Corporate primarily for the reorganization of certain business
      operations and early contract termination 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, 2013
                2013      Restructuring  Impairment  Extinguishment  2013
                Reported Charges ^(a)  Charges     of Debt         Adjusted
 Revenues       $ 15,284  $    —          $   —        $    —           $ 15,284
 OIBDA            3,716        20             —             —             3,736
 OIBDA margin     24%                                                     24%
 ^(b)
 Operating        3,259        20             —             —             3,279
 income
 Interest         (376)        —              —             —             (376)
 expense
 Interest         8            —              —             —             8
 income
 Other items,     6            —              —             —             6
 net
 Earnings from
 continuing
 operations       2,897        20             —             —             2,917
 before income
 taxes
 Provision for    (978)        (8)            —             —             (986)
 income taxes
 Effective
 income tax       34%                                                     34%
 rate
 Equity in loss
 of investee      (46)         —              —             —             (46)
 companies, net
 of tax
 Net earnings
 from           $ 1,873   $    12         $   —        $    —           $ 1,885
 continuing
 operations
 Diluted EPS
 from           $ 3.00    $    .02        $   —        $    —           $ 3.02
 continuing
 operations
 Diluted
 weighted
 average number
 of
    common
    shares        624                                                     624
    outstanding
                Twelve Months Ended December 31, 2012
                2012      Restructuring  Impairment  Extinguishment  2012
                Reported Charges ^(c)  Charges      of Debt         Adjusted
                                          ^(d)
 Revenues       $ 14,089  $    —          $   —        $    —           $ 14,089
 OIBDA            3,458        19             11            —             3,488
 OIBDA margin     25%                                                     25%
 ^(b)
 Operating        2,983        19             11            —             3,013
 income
 Interest         (402)        —              —             —             (402)
 expense
 Interest         6            —              —             —             6
 income
 Net loss on
 early            (32)         —              —             32            —
 extinguishment
 of debt
 Other items,     6            —              —             —             6
 net
 Earnings from
 continuing
 operations       2,561        19             11            32            2,623
 before income
 taxes
 Provision for    (892)        (8)            3             (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   $    11         $   14       $    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

       Restructuring charges at Entertainment, Cable Networks, Publishing,
(a) Local Broadcasting and Corporate primarily for the reorganization and
       closure of certain business operations.
(b)  OIBDA margin is defined as OIBDA or Adjusted OIBDA divided by revenues.
       Restructuring charges at Entertainment, Publishing, Local Broadcasting
(c)  and Corporate primarily for the reorganization of certain business
       operations and early contract termination costs.
(d) Reflects a 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, Senior Executive Vice President and Chief
Communications Officer, (212) 975-2121, gdschwartz@cbs.com, or Dana
McClintock, Executive Vice President of Communications, (212) 975-1077,
dlmcclintock@cbs.com; or Investors: Adam Townsend, Executive Vice President,
Investor Relations, (212) 975-5292, adam.townsend@cbs.com, or Jessica
Kourakos, Vice President, Investor Relations, (212) 975-6106,
jessica.kourakos@cbs.com
 
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