Time Magazine 2009 Annual Report Download - page 38

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Recent Accounting Guidance
See Note 1 to the accompanying consolidated financial statements for a discussion of accounting guidance
adopted in 2009 and recent accounting guidance not yet adopted.
Significant Transactions and Other Items Affecting Comparability
As more fully described herein and in the related notes to the accompanying consolidated financial statements,
the comparability of Time Warner’s results from continuing operations has been affected by significant transactions
and certain other items in each period as follows (millions):
2009 2008 2007
Years Ended December 31,
(recast) (recast)
Amounts related to securities litigation and government investigations,
net .................................................. $ (30) $ (21) $ (171)
Asset impairments ......................................... (85) (7,213) (34)
Gain (loss) on sale of assets.................................. (33) (3) 6
Impact on Operating Income ................................. (148) (7,237) (199)
Investment gains (losses), net................................. (21) (60) 75
Amounts related to the separation of TWC....................... 14 (11) —
Costs related to the separation of AOL.......................... (15) — —
Share of equity investment gain on disposal of assets ............... — 30 —
Pretax impact ............................................ (170) (7,278) (124)
Income tax impact of above items . . ........................... 37 488 17
Tax items related to TWC ................................... 24 (9) 6
After-tax impact .......................................... (109) (6,799) (101)
Noncontrolling interest impact ................................ 5 — —
Impact of items on income from continuing operations attributable to
Time Warner Inc. shareholders . . . ........................... $ (104) $ (6,799) $ (101)
In addition to the items affecting comparability above, the Company incurred restructuring costs of
$212 million, $327 million and $114 million for the years ended December 31, 2009, 2008 and 2007,
respectively. For further discussions of restructuring costs, refer to the “Consolidated Results” and “Business
Segment Results” discussions.
Amounts Related to Securities Litigation
The Company recognized legal reserves as well as legal and other professional fees related to the defense of
various securities litigation totaling $30 million, $21 million and $180 million for the years ended December 31,
2009, 2008 and 2007 respectively. In addition, the Company recognized insurance recoveries of $9 million in 2007.
Asset Impairments
During the year ended December 31, 2009, the Company recorded noncash impairments of $52 million at the
Networks segment related to Turner’s interest in a general entertainment network in India and $33 million at the
Publishing segment related to certain fixed assets in connection with the Publishing segment’s restructuring
activities.
During the year ended December 31, 2008, the Company recorded noncash impairments related to goodwill
and identifiable intangible assets of $7.139 billion at the Publishing segment. The Company also recorded noncash
26
TIME WARNER INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION – (Continued)